The fund helps develop commercially successful ventures that otherwise would not get the chance to go to market. By providing up to half of the project's funds, it shares the project's costs and some of the risk.
Grants ranging from $A100, 000 to $A1.5 million are available through an open competition process. Several bidding rounds occur in each country. Assessment panels, which are primarily made up of private sector representatives, select the winning proposals.
To be awarded a grant, businesses complete a two stage application process. Stage one is the submission of a brief Concept Note which is reviewed by an assessment panel. Business projects that best satisfy the assessment criteria will be invited to submit a full application and the top applications are awarded a grant after further assessment by a panel.
Concept Note submissions close on 30 June, 2008.
ECF is an Australian Government, AusAID funded initiative. It operates in Fiji, Papua New Guinea, southern Philippines, Vanuatu, Solomon Islands, Cambodia, Lao PDR, East Timor and selected provinces of Indonesia. Businesses from these and other countries can apply, providing they are legally able to operate in one or more of these countries.
To find out more about ECF and how to apply for a grant, visit www.enterprisechallengefund.org.
Businesses take up the challenge to reduce poverty in the Asia Pacific region
The first round of the application process for grants under the Enterprise Challenge Fund for the Pacific and South East Asia (ECF) has resulted in 37 business projects proceeding to the second stage.
The 37 applications cover a range of industry sectors in PNG, Fiji, Indonesia and southern Philippines. Interest in the agribusiness sector has dominated the first round followed by tourism and the business services sectors.
"ECF aims to encourage commercially sustainable business projects that will have practical flow on benefits to local communities," said John Hardin, the Fund Director.
"It is clear from the first round of bids that there are a large number of businesses keen to take up the challenges involved in projects that provide tangible benefits to the poor."
Successful bidders for grants are required to contribute a minimum of 50% of the project's costs and to demonstrate that commercial finance is not available to implement the project.
"In our region, innovative business projects are frequently constrained by lack of access to finance, difficulties in the supply chain and other external factors" Mr. Hardin said.
“Part of the value of the ECF program is being able to identify and help remove the obstacles that prevent local businesses growing," he said.
"The ECF shares the risk with appropriate and profitable business ventures to improve their growth opportunities and ultimately have a profound and longer term positive impact on the poor.
"There were numerous projects in this first bidding round with the potential to achieve these objectives and the Assessment panels will carefully scrutinise all applications before making an offer of a grant," Mr. Hardin said.
"The whole process is transparent and fair, but companies need to understand that there is strong competition for the available funds. They need to convince the experienced panel members that their proposed business project will be commercially successful and that there will be measurable benefits to the business and local communities affected by poverty."
The Assessment panels will meet in July this year to decide on the first grant offers from the initial bidding cycle. In the meantime the ECF is being expanded to include five additional countries - Cambodia, Lao PDR, Solomon Islands, East Timor and Vanuatu.
The second round for submission of Concept Notes commences on 1 April and companies from all nine countries will need to submit their Concept Note bids before 30 June.
Businesses that have been invited to submit an Application Form must submit them by 15 April, 2008.
For further information on ECF please visit www.enterprisechallengefund.org.
