Responsible Business Fund (RBF)

Myanmar
5 th Call for Proposals
 RBF Introduction
01 • Background
• What is RBF?

5th Call for Proposals

02 • RBF’s Areas of Support
• Grant % and Amount

Details
• Who can apply?
03 • How to apply?
• Timeline
• RBF’s Expectations

Discussion
04 • Q&A
• Feasiability Technology
 What is RBF?

• RBF is a part of Development Assistance from Denmark to Myanmar

• Denmark has been a pioneer in helping several countries in Asia and Africa to
leverage local private sector abilities to deliver ‘economic’ and ‘environmental’
development results in a sustainable manner

• RBF is a ‘Challenge Fund’ to promote responsible business practices of Small and

Medium Sized enterprises in Myanmar.

• RBF was established in August 2017 and has disbursed MMK 14.6 Billion
 What is RBF?

• Provided Grants to 453 SMEs in Myanmar for demonstration projects in 7 areas:

1. Energy Efficiency
2. Water use Efficiency
3. Waste treatment and Recycling
4. Occupational Safety & Health
5. Food Safety
6. Managerial & Supervisory Skills
7. Practical & Technical Skills
 Objective of RBF

To “increase the competitiveness and responsible behavior of

Myanmar enterprises” by providing partial grants to SMEs for the
implementation of projects with a potential to demonstrate
‘Responsible Technologies/Business Practices’
Benefits of Investing in a Responsible Business
Technology/ Business Practices

Lower Negative Lower Negative

Impact on Impact on
Environment Community

Improved
Employee Safety Reduction in Costs
and Satisfaction Increase in Profits
Geographic/Gender Distribution - RBF supported Demonstrations
Pilot 1st 2nd 3rd 4th Managed Owned by
States & Regions Total
Call Call Call Call Call by women Women

Ayeyarwady 1 2 2 11 3 19 4 3
Bago 1 3 7 5 4 20 5 0
Chin 1 3 1 2 7 3 4
Kachin 1 19 20 13 9
Kayah 2 1 3 0 0
Kayin 1 1 1 1
Magway 1 4 6 5 16 5 3
Mandalay 2 3 51 7 14 77 25 19
Mon 3 2 1 2 8 5 4
Naypyidaw 1 2 2 2 7 2 1
Rakhine 2 14 16 8 8
Sagaing 1 9 46 10 66 13 11
Shan 20 31 10 4 65 25 16
Tanintharyi 3 1 2 6 3 1
Yangon 8 36 43 31 4 122 67 43
Total 12 74 158 124 85 453 179 123
 RBF Introduction
01 • Background
• What is RBF?

5th Call for Proposals

02 • RBF’s Areas of Support
• Grant % and Amount

Details
• Who can apply?
03 • How to apply?
• Timeline
• RBF’s Expectations

Discussion
04 • Q&A
• Feasiability Technology
 5th Call for Proposals

Total Grant Amount Total No. of SMEs 5th Call Opens

MMK 5.0 Billion Up to 150 SMEs From 1st Jan 2021
RBF – Areas of Support
 Resource Efficiency
(Areas 1, 2, 3)
Grant support (Up to 30% of the Project cost)
Max. of MMK 80 million for each SME

Area 1 Area 2 Area 3

Energy Efficiency Water Efficiency Waste to Value
Area 1
Energy
Efficiency
Example Technologies
• Energy efficient cold
storage
• Energy Efficient Motors,
etc.
• Energy Efficient
Compressor

The proposed technology

must have at least 30% of
energy saving.
Area 2
Water
Efficiency
Example Technologies
• Dissolved Air Flotation
(DAF), etc.
• Small Center pivot
Irrigation Systems.

The proposed technology

must have at least 50% of
water saving.
Area 3
Waste to
Value
Example Technologies
• Animal Feed from Fish
Processing Waste
• Production of Chitin and
Chitosan from Shrimp
Shells and Crab Shells
• Recycling Equipment, etc.

The propose project must provide

the strong evidences of potential
markets, sales.
Some projects should expect the
costs for infrastructure, land area
and license which will not be
covered by RBF.
 Export Preparedness
(Areas 4,5)
Grant support (Up to 30% of the Project cost)
Max. of MMK 80 million for each SME

Area 4
Occupational Area 5
Safety & Health Food Safety
(OSH)
Area 4
Occupational
Safety & Health
(OSH)
Example Technologies
• Conveyor Systems
• Modernization and
Mechanization of Old Mills
with OSH Risks
• Farm Mechanization
Equipment
• Combine Harvesters
• Ventilation
• OSH Training
• Fire Safety, etc.

SME’s products should have a

potential for Export
Area 5
Food
Safety
Example Technologies
• Cold Storage
• Cold Transport System
• Solar Drying for Fruits,
Seafood
• Hygiene Awareness and
Creation Training
• Improvement of Handling and
Storage, etc.

SME’s products should have a

potential for Export
 Waste Water Treatment (Area 6)

Grant support (Up to 50% of the Project cost)

Max. of MMK 80 million for each SME

Area 6
Waste Water
Treatment
Area 6
Waste Water
Treatment
Example Technologies
Waste Water Treatment
Plant
Centralized Waste Water
Treatment Plant

50% Grants for projects that

only have environmental
benefits without a possibility
for commercial payback
 SMEs in the Commercially Weaker States
Grant support (Up to 50% of the Project cost)
Max. of MMK 80 million for each SME

• SMEs in the Commercially Weaker States

1. Chin State
2. Kachin State
3. Kayin State
4. Kayah State
5. Rakhine State
 RBF Introduction
01 • Background
• What is RBF?

5th Call for Proposals

02 • RBF’s Areas of Support
• Grant % and Amount

Details
• Who can apply?
03 • How to apply?
• Timeline
• RBF’s Expectations

Discussion
04 • Q&A
• Feasiability Technology
Who can apply to RBF?
Registered in Myanmar and is an SME with
600 or less permanent staff or
Has less than 1 billion Kyat in paid-up capital.

Operational for a minimum of two years

Externally audited accounts for the most recent year.

Not operating in excluded sectors (hard liquor, gambling,

tobacco, weapons, internationally recognized exclusion list)

Not received RBF grant support through the earlier ‘calls for
proposals’.
Who can apply to RBF? (Continued)
Potential to demonstrate the ‘business case’ for a responsible
investment/practice in one of six eligible areas.

Well prepared for the proposed project in terms of:

technology identification; supplier shortlisting and raising
finances to complete project before April 2022.

Proposed Project - ‘Responsible Technology/Business

Practice’ has not already been implemented by other
businesses in your locality/district. If RBF has already
approved grant support for a similar project in your
locality/district/township, RBF Board will not approve grant
support for your project.
 What can RBF support?

• Equipment/Machinery/Auxiliary Systems and incidental investment costs that are

directly related to the investment/intervention in 6 RBF focus areas; (In cases, wherein
the equipment/machinery also offers a production capacity expansion benefit to the
SME, then an imputed value for this should be deducted on which RBF support will not
be available)

• Technical Assistance provided by national and international experts or organizations

• Out-of-pocket expenses such as travel etc., that are directly related to the
investment/intervention in 6 RBF focus areas
 What RBF cannot support?

• Any regular operational cost of SME

• All employee costs of SME, including the ones managing the RBF supported
project

• Investment that can be used for purposes other than the RBF supported project
(e.g. vehicles, land, etc...)

• Civil construction costs except in case of Waste Water Treatment Projects

How can we APPLY in RBF?
TWO STAGES to get your grant

Concept Notes Full Proposal

Stage Stage
 Stage (1) Concept Notes Stage

Meeting with RBF Receive concept

Write and Submit
Team to Develop Screening by RBF idea approval
the Concept Note
your Concept Idea letter from RBF
 Stage (2) Full Proposal Stage

Grant Agreement,
Prepare for Full Proposal Evaluation and Approval
Implementation &
with your Service Provider by Board of RBF
Reporting
 Evaluation Criteria
Method of Rating
No. Criteria Weightage
Higher preference for:

Demonstration potential within Myanmar/ Projects that have a national level

1 45%
Region/ State/ District/ Township demonstration value

Commercial viability measured in terms of pay- Projects that face larger risks and
2 30%
back period longer pay-back periods
Equipment Suppliers that
have a proven track-record of delivering on
3 Equipment Supplier’s track-record 15%
the proposed technology/initiative
Providing more than one quotation
Projects with higher potential to create
Nonfinancial / quantifiable benefits to
4 benefits that extend beyond the costs/profits 10%
Employees, Local Community and Environment
of the SME
Total 100%
Tentative Timeline for 5th Call for Proposals
Date Activity
4th Jan to 26th Jan 2021 Opening of RBF Call for Proposals
27th Jan 2021 Last day for submission of Concept Notes
28th Jan to 15th Feb 2021 Screening by RBF Secretariat issues for Concept Notes
16th February 2021 Announcement of Shortlisted SMEs - Concept Note Stage
16th March 2021 Deadline for the submission of Full Proposals by Shortlisted SMEs
9th April 2021 RBF Secretariat submits Appraisal Notes to Board of RBF
Assessment by Board of RBF and approval of Grant Support to selected
10th April to 23rd April 2021
SMEs
Grant Approvals (e-mails) sent to selected SMEs along with draft Grant
30th April 2021
Agreements
3rd May to 15th June 2021 Grant Agreements signed between RBF selected SMEs
31st May 2022 Last date for disbursement by RBF to Grantees or Suppliers
RBF Expectations From Grantees!
 RBF’s Expectations from Grantees
1. To start implementation of the project within one month from the date of grant
agreement signed off.
2. Grantees are expected to procure equipment, trainings, technical assistance and
request reimbursement by April 2022.
3. To provide Data to RBF on timely manner and project completion report.
4. Actively share information about the value of Responsible Technologies/Business
Practices with other SMEs and local Communities and (allowing demonstration visits
by relevant stake holders)
5. To share learning experiences to other businesses during and after project is
completed.
6. Comply with responsible business code of conduct principles
7. Allow ‘final inspection’ on completion of project to verify and document the ‘lessons
learnt’.
 Financial Expectations from Grantees

• Ability to raise the required equity and loan for the proposed project

• Advance payment to equipment supplier & service provider

• Capacity to pay for the civil structures and other associated costs of the proposed
project

• RBF pays the grant directly to the service provider/equipment supplier after the
successful implementation of the project
Pay Attention to the Following:
1. Needs Assessment and Choice of Responsible Technology
◦ Understand your needs and ask if it is the most appropriate technology for your business?
◦ Calculate the payback period and evaluate if that is reasonable based on your financial situation?
◦ Potential Markets? Buyers? Selling Price?

2. Proper Discussion with the Equipment/Technology Supplier (at least two)

◦ Capacity, Dimension, Power Consumption
◦ Cost (Machinery Cost, Transportation Cost, Installation Cost, After Sales Services, etc.)
◦ Raw materials and other inputs
◦ Operational Cost (such as chemical cost, maintenance cost, labor cost, electricity cost, etc.)
◦ Timeline (equipment order duration, delivery duration, installation duration, etc.)

3. Other Infrastructure Costs not covered by RBF

◦ Factory Construction Cost
◦ Storage Area
◦ Land Area
 Work with SME to develop project idea to apply for Grant support in Six
thematic areas of RBF
Role Conduct needs assessment to document the current condition and the
of Service desired results that can be produced by investing in one or more of the 6 RBF
focus areas.
Providers To carry out financial feasibility of the project idea which includes

in investment/ expenses estimation, revenues calculation, pay-back period

estimation etc.

supporting To identify quality equipment/technology suppliers /other service providers

necessary, for implementing the project, and communicate with RBF and SME.
SMEs
To develop quality application together with SMEs which includes detail
implementation plan of the project idea within timeframe, desired outcomes
etc.
To assist the SME with the baseline data required for establishing the
Monitoring and Evaluation requirements of the project which is a
prerequisite for signing the grant agreement.
If the project wins, the Service Provider needs to ensure that all the
implementation works, expenses and outcomes are in line with application
form.
NEXT STEP!

As the Embassy of Denmark is currently working on the

approvals for funding RBF’s 5th ‘Call for Proposals’, the official
announcement will be made by RBF in December 2020 via RBF-
Myanmar Facebook Page. Please look out for the news at:

https://www.facebook.com/FCGRBF/
 For more information - Please contact
Our Office at :
Responsible Business Fund (RBF) Myanmar
Building (B),10th floor, Room (07), Shwe Hinthar Condo, Shwe Hinthar Road,
Hlaing Township, Yangon

Contact : 09 424323868
E-mail : info@rbfmyanmar.com
E-mail : http://www.rbfmyanmar.com/

Amarnath Reddy, Chief Advisor - E-mail: reddy@rbfmyanmar.com Phone: 09 978970640

Eimon Aung, Grant Manager - Email: eimon@rbfmyanmar.com Phone: 09 979327744

Aung Phyo Chit, Grant Officer - Email: aung@rbfmyanmar.com Phone: 09 402642579

Aye Nyein Thu, Grant Officer - Email: aynyein@rbfmyanmar.com Phone: 09 9796798019

Thae Thet, Grant Officer - Email: thaethet@rbfmyanmar.com Phone: 09 972723010