Attachment J.

1
STATEMENT OF OBJECTIVES (SOO)
USAID UDHYAM NEPAL ACTIVITY
[Selected Contractor’s Performance Work Statement will replace Statement of Objectives at the time of award execution, and
will include relevant paragraphs of Section C below ]

1. PURPOSE

The purpose of this activity is to enable the Nepali private sector to become competitive globally by strengthening
key agriculture and non-agriculture sectors with high potential for growth and employment creation while recovering
from the impact of COVID-19. This SOO allows Offerors to propose and price a set of interventions that achieve
the outlined objectives and contribute to measurable improvements in the functioning of market systems, business
operations, and/or production capabilities; promote investment and increased use of improved technologies and
innovations as well as financial and non-financial services to spur productivity; strengthen marketing capacities; and
streamline select import and export procedures. While the interventions supported must be focused and well-tailored
to firms in the targeted sectors, some interventions will yield broad-based and positive system-wide impacts for Nepali
firms as a whole. The Contractor must flexibly adapt interventions and seize opportunistic actions at a firm level that
increase jobs and exports, increase competitiveness in the targeted agriculture and non-agriculture sectors, and can
offset losses related to COVID-19, other threats posed by pandemics or disease outbreaks, natural disasters, or
political and economic instability.

2. SCOPE

This Statement of Objectives (SOO) describes the objectives of USAID/Nepal for an activity that will enhance
capacities and competitiveness of Nepali enterprises including small, and medium-sized enterprises (SMEs) associated
with targeted value chains (e.g., agro-processing, digital services, or tourism). At the same time, it will promote the
integration of women, youth, and marginalized groups into markets to participate in economic opportunities that are
created as the economy grows, which include addressing the barriers they face as articulated in Section 5. As
recognized in the Agency’s new Economic Growth Policy, that poor management of the environment and natural
resources hinders sustainable economic growth, the activity will include a significant focus on assessing and addressing
climate-related threats to sustainable growth within relevant sectors. This SOO does not state how the work is to be
accomplished but provides potential Offerors with the flexibility to develop market-based solutions and the
opportunity to propose innovative approaches to meet the stated objectives and results.

Based on this SOO, Offerors will submit a Performance Work Statement (PWS) which describes a market-driven
approach that tailors strategic interventions to the needs of the Nepali private sector to achieve the objectives of the
activity and the intended economic impact of proposed interventions. The PWS must enable USAID to assess the
performance of the work against specific, clear, and measurable performance standards in terms of quality, quantity,
and timeliness, and provide a sufficient basis for assessing contractor performance against the performance standards.

3. BACKGROUND

Nepal is a country that faces many challenges to growing its economy. The options for a landlocked, geographically
challenged economy are considerably more limited than those of a country that has easy access to global markets.
Social rigidities, a fragile environmental ecosystem, and high vulnerability to disasters induced by demographic shifts
and climatic effects all contribute to the re-occurrence of economic shocks that impact competitiveness and cause
poverty backsliding. In a span of five years, Nepal’s economy suffered through two major crises - two devastating
earthquakes in 2015 and the current COVID-19 pandemic. The COVID-19 outbreak brought the economy to a
standstill during the lockdown and severely disrupted supply chains, setting the country back one year without any
growth in GDP, at the minimum, while the upper range of the impact remains uncertain as the outbreak continues
to evolve.

During the last decade, Nepal’s economy grew at an average rate of only 4.2%, which is lower than the average growth
rate of its neighbors by two percentage points (Figure 2.1). However, in Nepal these challenges are exacerbated by a
poor investment climate, risky and costly business environment, and limited market opportunities that constrain
private investment, both foreign and domestic, and impede the country’s sustained growth. Costs of production are
high in Nepal, even though labor is cheap, and transport costs are prohibitive even in the southern Terai, where
geographical barriers are not as daunting. The country’s manufacturing sector contributes only 5% and agriculture
25% to Nepal’s GDP.

Figure 2.1 Nepal Economic Performance FY 2008-2018

Source:Nepal Rastra Bank

While migration has been a key factor in reducing poverty in Nepal, with remittances equivalent to 25% of GDP ($7.8
billion in FY18/19), it has eroded the domestic economy’s competitiveness, largely in the agriculture sector as most
of the migrants come from rural areas dependent on agriculture and heightened macroeconomic vulnerabilities.

According to the 2020 World Bank’s Ease of Doing Business Survey, Nepali enterprises do not fare well in terms of
starting and operating a business. Out of 190 countries in the survey, Nepali enterprises rank 94th overall but faced
difficulties in starting a business (135th), enforcing contracts (151st), getting electricity (135th), and paying taxes
(175th.) Such challenges in doing business have placed enterprises at a disadvantageous starting position relative to
competitors in other countries. Entrenched patronage systems, procurement practices and systems of commerce
beneficial only to a small group of elites remain pervasive. Both agricultural and non-agricultural enterprises in Nepal
are constrained by numerous barriers, including:

● lack of access to low-cost and high-quality inputs,

● inefficient inbound and outbound logistics,

● poor access and adoption of improved technologies at SMEs level,

 ● an inadequately skilled workforce,

● poor governance pertaining to operating a business,

● lack of access to finance,

● lack of access to markets and market intelligence,

● poor enabling environment for imports and exports,

● poor adherence to sanitary and phytosanitary standards, and

● lack of business services to SMEs.

The COVID-19 pandemic is expected to have a severe short-term impact on Nepal’s economy. The Nepal Rastra
Bank (NRB) reported that the Nepali economy grew by 2.3% in 2020, down from 6.3% forecasted in September
2019. According to the World Bank’s best-case scenario, Nepal’s economy may not return to pre-COVID growth
rates until early 2023. The GON incurred a fiscal deficit in 2020 that is equivalent to 7% of GDP, an increase from
5% the previous year. The GON’s COVID-19 relief efforts partly explain the 2.7% increase in expenditure, and the
lower growth of the economy reduced revenue collection and grants by 13.1%, which combined to widen the fiscal
deficit.

Widespread supply chain disruptions caused interruptions in market supply of goods and services and pushed inflation
to increase to 6.2% in 2020, from 4.6% the previous year. Most economic sectors and support services will be affected.
Nearly one million Nepali migrants have returned to Nepal, without domestic employment prospects, reducing the
purchasing power and incomes of the 56% of Nepali households who depend on remittances. While some Nepali
migrants remain abroad, they also face economic hardships specific to their host countries. Their limited ability to
provide remittances is expected to have an outsized impact on Nepal’s domestic consumption, savings, investment,
and liquidity. The NRB reported that workers’ remittances declined by only 3.3% in 2020. Merchandise exports
declined by 7.3% due to weak external demand and disrupted domestic production, while exports in services declined
by 18%. Domestic supply chains will also likely see a hit as demand for imports falls. The impact of the COVID-19
pandemic will exacerbate the longstanding constraints that Nepali enterprises have faced for decades, will further
erode their competitiveness, and will exacerbate unemployment.

4. STRATEGIC APPROACH

To best support the goals of the U.S. Mission to Nepal’s Integrated Country Strategy and USAID/Nepal CDCS for
the years 2021 to 2025, the overall goal of this activity is: “Nepali private sector’s competitiveness in targeted domestic
and global value chains increased.”

The COVID-19 pandemic will delay Nepal’s ability to address longstanding constraints to investment and growth.
Thus, the USAID Udhyam Nepal activity will adopt a phased approach that will first focus on recovery-related
interventions by addressing the more immediate and existential challenges faced by enterprises, such as surviving the
liquidity crunch. Economic relief efforts will need to be sustained as a lifeline until the outbreak can be effectively
managed, enabling businesses to fully resume operations. As the COVID crisis eases, the activity will then transition
more fully to its overall objective of fostering increased competitiveness within a context of equitable growth. It will
sequence efforts to restore the viability and profitability of enterprises that survive the crisis by rebuilding or re-
focusing disrupted supply chains and adapting operations to the realities and opportunities present within a new
business environment. Throughout implementation, the activity will look for opportunities to partner with public and
private institutions to engage in policy reforms that reduce the constraints to investment and productivity and enhance
the competitiveness of targeted enterprises in the world market.

The Activity will adopt a co-design approach, engaging closely with the successful Offeror to explore and identify
innovative and effective approaches and interventions that catalyze new partnerships and unlock new investment and
trade opportunities in the targeted sectors. A Grants Under Contract (GUC) component may be proposed to fund
such innovative partnerships with Nepali and/or international private sector entities to advance the USAID Udhyam
Nepal goal.

Theory of Change

The proposed theory of change for the Activity is: If, Nepali firms are enabled to kick-start productivity and off-set
losses; if the costs of production and trade for Nepali firms in sectors (agriculture and non-agriculture) with high
growth and employment potential can be reduced; and if business innovation and productivity is increased through
targeted streamlining of business processes; and if Nepali firms gain improved access to supportive market-based
services, then, the private sector’s competitive participation in targeted domestic and global value chains will increase.

5. PERFORMANCE OBJECTIVES

Consistent with the USAID model of economic growth emerging through the new Economic Growth Policy, the
proposed goal places enterprises squarely at the center of the proposed design. Successful achievement of the Activity
goal will be demonstrated most fundamentally through clear, commonly accepted measures of enterprise
competitiveness at the firm and sector levels. In line with the overall Results Framework for the USG’s Udhyam
Nepal Initiative, the key outcome indicator at the goal level is EG 5.1, “USD sales of firms receiving USG funded
assistance.” Offerors should prepare a Performance Work Statement (PWS) that demonstrates the most efficient
combination of interventions that mutually reinforce each of the following objectives:

Objective One: Access to market-based financial and non-financial services improved

Objective Two: Productivity in sectors with high growth and employment potential increased

Objective Three: Improved investment climate and business enabling environment, especially for targeted
sectors

OPTIONAL CLIN: Objective Four: Private sector led economic recovery supported

Objective One: Access to market-based financial and non-financial services improved

Poor access to financial and non-financial services is a major constraint to enterprise creation, growth, and
competitiveness. To address this, the Activity will support market-based solutions that expand enterprises’ access to
targeted financial services and new investments (foreign and domestic), and to non-financial services such as business
development services, which may include product development, production practices, supply chain management,
market intelligence, marketing, business-to-business linkages, and firm level governance. Offerors must demonstrate
in their PWS how they will improve access to quality, market-based services that will enhance enterprise
competitiveness.

The Contractor should consider the following minimum indicators and propose additional indicators, if needed based
on their proposed approach:
 o Illustrative Indicator: EG 2-12 Number of private sector enterprises with increased access to finance due to USG assistance
o Illustrative Indicator: EG.5.2-1 Number of firms receiving USG-funded technical assistance for improving business
performance
o Illustrative Indicator: Value (in USD) of new investments mobilized as a result of USG assistance
o Illustrative Indicator: GNDR-2 Percentage of female participants in USG-assisted programs designed to increase access to
productive economic resources (assets, credit, income or employment)
Objective Two: Productivity in sectors with high growth and employment potential increased

To be competitive in the interconnected global economy, Nepali firms and their employees require enhanced access
to affordable productivity-enhancing technologies, support to guide their product development and diversification,
and the necessary human capital skills to capitalize on market opportunities. Offerors must provide demonstrably
viable and carefully targeted approaches to increasing productivity within targeted sectors. An important element of
achieving this objective in a sustainable manner is assessing and addressing climate-related threats to growth and other
environmental stresses, including through connecting relevant firms and other institutions to regional or global
sources of adaptation and green growth financing.

The Contractor should consider the following minimum indicators and propose additional indicators, if needed based
on their proposed approach:

o Illustrative Indicator: EG 5-12 Number of small, and medium-sized enterprises supported by USG assistance

o Illustrative Indicator: EG.5-1 USD sales of firms receiving USG-funded assistance

o Illustrative Indicator: EG 5.2-2 Number of private sector firms that have improved management practices or technologies as
a result of USG assistance

o Illustrative Indicator: EG 2.2-1 Number of firms receiving USG-funded technical assistance to export

o Illustrative Indicator: EG 2.2-2 Number of firms receiving USG assistance that have obtained certification with (an)
international quality control institution(s) in meeting minimum product standards
Objective Three: Improved investment climate and business enabling environment for targeted sectors

At every stage in its life cycle, from starting a business, to operating one, and until the point of liquidation, Nepali
enterprises are burdened by cumbersome business and property registration requirements. They also struggle to
understand the requirements around sanitary and phytosanitary standards. Offerors must propose highly targeted
approaches to improving the investment climate, including through strengthened private sector advocacy and
enhanced private/public dialogue. Effective climate risk analysis and management and fostering linkages to sources
of climate financing may present promising avenues for improving the overall investment climate and unlocking new
sources of investment.

The Contractor should consider the following minimum indicators and propose additional indicators, if needed based
on their proposed approach:

o Illustrative Indicator: Number of barriers to trade and investment reduced as a result of USG assistance
 o Illustrative Indicator: EG 5.1-19 Value (in USD) of investment associated with USG assistance to improve the business
enabling environment

o Illustrative Indicator: EG2.1-2 Average time (in hours) to trade goods along trade corridor receiving USG assistance

o Illustrative Indicator: EG 5.1-20 Percentage of beneficiary firms that formalize, in association with USG assistance to
improve the business enabling environment
Optional Contract Line Item (CLIN): Objective Four:

The USAID Udhyam Nepal Activity contains an up to $4 million optional CLIN for additional programmatic
interventions as part of this planned contract. The optional CLIN is an opportunity to scale-up programmatic
interventions and support private sector led economic recovery. Nepal remains among the most vulnerable countries
in the world to natural disasters and climate change. It is still completing reconstruction following the devastating
2015 earthquakes and is in the midst of the ongoing COVID-19 crisis. This CLIN serves to protect and advance
Nepal’s economic development and Udhyam Nepal gains when future unanticipated events affect the country or
specific geographies. This may include, for example, providing support to private enterprises in areas affected by
natural disasters, climate change, disease outbreaks and pandemics (including new issues that arise related to the
COVID-19 pandemic), political instability, and economic disruptions, in order to kick-start and sustain local economic
recovery. This may also include mobilizing the private sector and forging new partnerships and financing to bolster
economic recovery efforts.

The Contractor should consider the following minimum indicators and propose additional indicators, if needed based
on their proposed approach:

o Illustrative Indicator: EG.2-12 Number of private sector enterprises with increased access to finance due to USG assistance
[In the context of a specific disaster, disruption, or other stress]

o Illustrative Indicator: EG.3.2-26: Value of annual sales of producers and firms receiving USG assistance [In the context of
a specific disaster, disruption, or other stress]

o Illustrative Indicator: Number of enterprises with increased resilience (i.e., ability to adapt to a changing environment and
decrease their vulnerability to future anticipated and unanticipated events) as a result of USG assistance

6. RESULTS AND INDICATORS

The Contractor must measure and track indicators for each objective. The Contractor must track and report on
standard indicators in the Standard Foreign Assistance economic growth indicator reference sheets and the Feed the
Future Indicator Handbook. In addition, the Contractor is required to include at least one standardized "F" indicator
from the Bureau for Foreign Assistance F. The Contractor may develop custom indicators and review indicators
included in reports of previous USAID agricultural activities found on the Development Experience Clearinghouse.
The Contractor must ground truth and update the final baseline indicators and targets in consultation with USAID
and must indicate proposed baselines and targets, where available or appropriate. In addition, the Contractor is
required to include standardized indicators from Feed the Future, the U.S. Government’s global hunger and food
security initiative (GFSS).
7. GRANTS TO U.S. AND NON-U.S. NGOS

The Contractor is authorized to use a Grants Under Contract (GUCs) component to issue grants to governmental
and non-governmental partners (including non-profit and for-profit entities) to support approaches under relevant
objectives of the activity. Specifically, GUCs may be used to help develop the capacity of GON institutions, academic
institutions, private sector organizations, civil society organization, and other private enterprise organizations and
associations dedicated to trade and investment and crucial in achieving USAID Udhyam Nepal goals and objectives.
8. OPERATING PARAMETERS

Gender and Social Inclusion

Participation of women, youth, and marginalized communities is critical for broad-based and sustainable economic
growth. The Activity will adopt an inclusive strategy that will address barriers faced by women, youth, and
disadvantaged communities in trade, business, access to resources (finance, technology, business services, markets),
and market intelligence and information, which impede their ability to be competitive and expand their businesses.
The Activity will strive to foster inclusive and gender-sensitive and gender-responsive policies and interventions.
Targeted approaches will be used to reach businesses owned, managed and controlled by women, youth, and
members of marginalized groups. It will also strengthen the channels by which the benefits of growth are
transmitted to women and members of disadvantaged groups, while improving the productivity and
competitiveness in products and services. In this pursuit, the Activity will give due consideration to both the gender-
specific or gender-intensified constraints that women and other members of disadvantaged groups experience in
relation to trading opportunities. In-depth analysis will be carried out upon selection of sectors to identify specific
constraints as well as to design the policy reforms and the interventions that address them. A detailed GESI Analysis
and Action Plan will be developed after award to inform implementation of the Activity.

Complementary USG and Donor Activities

USAID/Nepal’s two Feed the Future (FTF) flagships activities, Knowledge-Based Integrated Sustainable Agriculture
in Nepal (KISAN) II and Nepal Seed and Fertilizer (NSAF), take a market systems approach, which facilitates private
sector-led development of the targeted value chain commodities and an improved enabling environment. NSAF
focuses on strengthening the competitiveness of the seed and fertilizer value chains through improved technologies,
market systems, and policy. These FTF activities and this Activity are mutually reinforcing in building the
competitiveness of agricultural products. Their close coordination will help to amplify the results achieved by each
activity and ensure a greater impact as a whole. This Activity should also seek to collaborate as appropriate with
USAID’s other FTF activities operating in Nepal, including any new FTF and related activities awarded over the
period of performance. The Activity should also seek to collaborate with centrally funded FTF activities, including
the Innovation Labs and Business Drivers for Food Safety, where relevant.

The goal of USAID/Nepal’s Urja Nepal Activity is to create a financially viable electricity sector that provides
affordable, reliable and secure power and enables the entry of private investment into the Nepali market. Urja Nepal
has four interrelated objectives: 1) Utility performance and relevant sector policies improved; 2): Advanced energy
systems deployed; 3): Increased private sector engagement; and 4) Cross border electricity trade between Nepal and
its neighbors advanced. Urja Nepal’s substantial private sector engagement elements are highly relevant to the
proposed Activity, making strong coordination essential. The fact that energy is potentially a very important export
for Nepal, and electric vehicles an important means of reducing Nepal’s trade imbalance given the significance of
petroleum to its overall import basket, underscore the importance of strong collaboration.
U.S. Government inter-agency coordination and collaboration is critical for effective implementation of this Activity.
The Activity will contribute to the U.S. Embassy to Nepal’s Integrated Country Strategy (ICS) goal of promoting
economic growth and prosperity.
The U.S. Support for Economic Growth in Asia (US-SEGA) project aims to improve the policy environment for
sustainable economic growth and prosperity, regional economic cooperation, and the sound management of
institutions and good governance throughout the Asia-Pacific Economic Cooperation (APEC) and Indo-Pacific
regions, while also expanding markets for U.S. goods and services. As US-SEGA works with USAID economic
growth programs in the Indo-Pacific, this Activity will collaborate with US-SEGA to achieve results on the common
areas of interest, such as in trade facilitation and the enabling environment.

DFID, EU and the World Bank are in the process of launching highly complementary activities: Nepal in Business,
Trade and Investment Programme; and Nepal Sustainable Tourism Value Creation Project. We anticipate that these
activities will add significant value to this Activity and will amplify its results.

The prospective contractor should seek opportunities to effectively engage with other complementary USAID
activities, including those funded by the Mission, regionally, and Washington, and should engage with other
development donors including, but not limited to, the World Bank, EU, and DFID.

Sustainability

Sustainability and scalability are central to the objectives and design of the activity. The Offeror must identify the
elements of sustainability and scalability considered essential to achieve the activity purpose and describe how
sustainability objectives will be integrated and how benefits and results will continue and be scaled up beyond
USAID funding. The Offeror must identify key sustainability issues and considerations around a host of issues, as
necessary, including economic, financial, social soundness, institutional capacity, political economy,
technical/sectoral, and environmental (including climate change vulnerability). The Offeror’s Performance Work
Statement must propose interventions on these issues that will be considered to more sustainable outcomes for the
activity as a whole and for specific agency engagements.

Environmental Guidelines and Climate Risk Management

The Offeror will perform the work in accordance with the approved programmatic Initial Environmental
Examination (IEE) and its subsequent amendment(s), USAID’s environmental regulations at 22 CFR 216, and in
accordance with application of local environmental laws and regulations. USAID Udhyam Nepal activities will
largely entail technical assistance and capacity building initiatives and is not expected to be directly carrying out
construction activities. As such, the initial environmental assessment may recommend a Categorical Exclusion
threshold decision. Activities under the Categorical Exclusion do not require an Environmental Assessment because
the actions do not impact the natural or physical environment. However, some activities may be recommended for
Negative Determination with Conditions to capture the nature of some tasks that may have a potential harmful
environmental impact. All activities recommended for a Negative Determination with Conditions are subjected to
further environmental review for approval by the project’s COR and the MEO using the Environmental Screening
Report (ESR) prior to implementation.

ADS 201 puts in place the new Climate Risk Management guidance for USAID activities. This requires the Offeror
to develop climate risk management measures to ensure that the USAID Udhyam Nepal Activity is more climate
resilient and avoids maladaptation.

Adaptive Management
It is critical that the Contractor use adaptable systems and work plans in case of unanticipated changes, and an
approach that allows for flexibility as new priorities arise during the course of this contract.

The Contractor must include co-creation in developing approaches to address the objectives of this contact. The
COVID-19 pandemic led to the establishment of COVID 19 prevention and safety protocols. These include social
distancing and lockdowns that have led to a non-traditional operating environment. The Contractor response must
reflect operating in this new environment and include measures to address and mitigate expected challenges.

[END OF ATTACHMENT: J.1]

Attachment J.2 Approved by OMB
DISCLOSURE OF LOBBYING ACTIVITIES 0348-0046
Complete this form to disclose lobbying activities pursuant to 31 U.S.C. 1352
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b. grant b. initial award b. material change
c. cooperative agreement c. post-award For Material Change Only:
d. loan year _________ quarter _________
e. loan guarantee date of last report ______________
f. loan insurance
4. Name and Address of Reporting Entity: 5. If Reporting Entity in No. 4 is a Subawardee, Enter Name
Prime Subawardee and Address of Prime:
Tier ______, if known :

Congressional District, if known : 4c Congressional District, if known :

6. Federal Department/Agency: 7. Federal Program Name/Description:

CFDA Number, if applicable : _____________

8. Federal Action Number, if known : 9. Award Amount, if known :

$
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11. Information requested through this form is authorized by title 31 U.S.C. section
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Attachment J.3

PART I: Contractor Information (to be completed by Prime)

1. Name of Prime Offeror (& Sub-Offeror, if applicable):

2. Name of Contracting Entity/Government Agency:

3. Contract Number (and if applicable Task Order Number):

4. Contract Type:

5. Total Estimated Contract Value (TEC):

6. Total Obligated Value:

7. Extraordinary Problems (if extraordinary problems were encountered on this contract, explain corrective action
taken, per FAR 15.305(a)(2)):
8. Contacts (please include Name, Telephone Number and E-mail address):

8a. Contracting Officer:

8b. Technical Officer/Contracting Officer’s Representative (COR):

9. Title of Award:

10. Scope of Work or Complexity/Diversity of Tasks:

11. Primary Location(s) of Work:

12. Is this Award listed in the Contractor Performance Assessment Reporting System (CPARS) - (please circle
your response): YES NO UNKNOWN
PART II: Performance Assessment (to be completed by Agency, if record is not found in CPARS)

1. Quality: Assess technical activity critical to successful contract/order performance. Identify any additional
evaluation aspects that are unique to the contract/order or that cannot be captured in another sub-element. Circle
Rating:

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Comment:

2. Schedule: Assess the timeliness of the contractor against the completion of the contract, task orders, milestones,
delivery schedules, and administrative requirements (e.g., efforts that contribute to or affect the schedule variance).
Circle Rating:
Exceptional Very Good Satisfactory Marginal Unsatisfactory

Comment:

3. Cost Control: Assess the contractor’s effectiveness in forecasting, managing, and controlling contract/order
cost. Circle Rating:

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Comment:

4. Management: Assess the integration and coordination of all activity needed to execute the contract/order,
specifically the timeliness, completeness and quality of problem identification, corrective action plans, proposal
submittals, the contractor’s history of reasonable and cooperative behavior (to include timely identification of
issues in controversy), customer satisfaction, timely award and management of subcontracts. Circle Rating:

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Comment:

5. Small Business Subcontracting: For Prime Offerors who are not small business concerns, assess whether the
Contractor provided maximum practicable opportunity for Small Business, Small Disadvantaged Businesses,
Women Owned Small Businesses, HUBZone, Veteran Owned, Service-Disabled Veteran Owned Small Business,
and ANCs and Indian Tribes to participate in contract or order performance consistent with efficient performance
of the contract or order. Assess compliance with all terms and conditions in the contract or order relating to Small
Business participation. Circle Rating:

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Comment:

5. Regulatory Compliance: Assess compliance with all terms and conditions in the contract/order relating to
applicable regulations and codes, using the Evaluation Ratings Definitions in FAR Part 42.1503(h)(4) Table 42-1.
Circle Rating:

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Comment:

6. Other: Specify additional evaluation areas that are unique to the contract/order, or that cannot be captured
elsewhere in the evaluation.
Comment:
7. Recommendation: Given what I know today about the contractor’s ability to perform in accordance with this
contract or order’s most significant requirements, I WOULD or WOULD NOT (please circle your response)
recommend them for similar requirements in the future.

[END OF ATTACHMENT: J.3]

 Attachment J.4

Local Compensation Plan Range,

Effective September 27, 2020

Annual Basic Salary Rate

FSN Level Illustrative Categories Low (NPR) High (NPR)

(1-3) Entry Level Clerical and Manual/Trade Positions 430,392 829,527

(4-6) Upper-Level Clerical, Supervisory Manual/Trade Positions 654,914 1,272,781

(7-9) Technical and Administrative Management 1,171,757 2,885,088

(10) Junior Level Professionals/Specialists 2,501,595 3,752,395

(11) Mid-Level Professionals/Specialists 3,075,803 4,613,707

(12) Upper-Level Professionals/Specialists 4,041,038 6,061,566

Total Compensation: Annual Basic Salary Rate plus Allowances and Benefits 1
FSN Level Illustrative Categories Low (NPR) High (NPR)

(1-3) Entry Level Clerical and Manual/Trade Positions 706,472 1,252,668

(4-6) Upper-Level Clerical, Supervisory Manual/Trade Positions 1,013,719 1,859,239

(7-9) Technical and Administrative Management 1,720,993 4,065,601

(10) Junior Level Professionals/Specialists 3,540,810 5,252,467

(11) Mid-Level Professionals/Specialists 4,326,585 6,431,129

(12) Upper-Level Professionals/Specialists 5,647,461 8,412,452

[END OF ATTACHMENT: J.4]

1The total compensation package includes the following monetized and non-monetized benefits: Miscellaneous Benefit Allowance, Child
Allowance, Dasain Bonus, Welfare Bonus, Retirement Contribution, Medical Insurance and Life and Accidental Insurance
Attachment J.5

INITIAL ENVIRONMENTAL EXAMINATION (IEE)

PROGRAM/ACTIVITY DATA:
Project/Activity Name: Udhyam Nepal
Geographic Location(s) (Country/Region): Nepal
Amendment (Yes/No), if Yes indicate # (1, 2...): No
Implementation Start/End Date (FY or Start Date: August 2021
M/D/Y):
End Date: August 2026
If Amended, specify New End Date:
Solicitation/Contract/Award Number(s): Solicitation No: TBD
Award No: TBD
Implementing Partner(s): TBD
Bureau Tracking ID: TBD
Tracking ID of Related RCE/IEE (if any): Asia COVID 19 Programmatic Initial Environmental
Examination (PIEE) Asia 20 – 042
Tracking ID of Other, Related Analyses:

ORGANIZATIONAL/ADMINISTRATIVE DATA
Implementing Operating Unit(s): USAID/Nepal
(e.g. Mission or Bureau or Office)
Other Affected Operating Unit(s):
Lead BEO Bureau: Asia Bureau
Funding Account(s) (if available):
Original Funding Amount: $19 Million
If Amended, specify funding amount:
If Amended, specify new funding total:
Prepared by: Lynn Schneider
Date Prepared: 03/03/2021

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: Environmental Examination [ X ] Deferral [ X ]
 Environmental Deferred as per 22 CFR 216.3 (a)
Determination (7)
Expiration Date of Deferral Date of award
Additional
Analysis/Reporting Required
Climate Risk Identified (#)
Climate Risk Addressed (#)

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

Activity Overview

The purpose of the Udhyam Nepal Activity is to enable the Nepali private sector to become competitive globally
by strengthening key agriculture and non-agriculture sectors with high potential for growth and employment
creation while recovering from the impact of COVID-19.

The Activity will be carried out in Kathmandu and various other areas of Nepal. The geographical areas will be
determined once the selection of agricultural and non-agricultural commodities (viable sub-sectors) is done.

Environmental Determination

As per 22 CFR 216.3(a)(7), the Udhyam Nepal Environmental Determination is deferred until a time when the
Mission has further information on the scope, scale, and target of the activities. In order to rectify the deferral:

● The activity analysis for environmental determination must be conducted based on the proposal submitted
by the apparently successful offeror. The Mission Activity Manager and MEO shall coordinate with the
REO and ASIA BEO on this process.
● The IEE must be approved before the obligation and award are made.

CLIMATE RISK MANAGEMENT

USAID supports strengthening development outcomes by integrating climate change into Agency programming,
learning, policy dialogues and operations. The Automated Directives System (ADS) 201 requires climate risk
assessment and management for all new projects and activities across sectors to ensure the effectiveness and
sustainability of project and activity objectives in the face of extreme weather and climate events.

CLIMATE RISKS AND VULNERABILITIES

Significant warming has occurred in Nepal, with an average annual increase of approximately 0.06 degree
Celsius 2. The mean of temperature changes is expected to be an increase of approximately 1.4 degrees Celsius
by the 2030s, with extremely hot days to increase by 55 percent by mid-century, going up to 70 percent by the

2
Shrestha, A.B. and Aryal, R., 2011. Climate change in Nepal and its impact on Himalayan glaciers. Regional Environmental Change, 11(1), pp.65-
77.
end of the century 3. Current and future predicted changes in the pattern of monsoon rains will further exacerbate
these challenges and disasters in Nepal 4. Coupled with the increasing variability in rainfall, with a potential 50
percent increase in extreme rainfall events, flash flooding also becomes an increasing concern 5. Moreover, there
is a high amount of variability in rainfall over even relatively short distances 6 and monitoring is hampered by
scarce historical climate data and limited numbers of monitoring stations. The effects of these rainfall patterns
and temperature changes vary with the large degree of elevation differential in Nepal 7. Evidence suggests that the
complex topography associated with nearly all of Nepal’s area would have increasing effects from climate change
versus areas with less relief and complex geometries16.
Multiple sectors face challenges from the effects of climate change in Nepal, with some of those sectors directly
affecting the security, health, livelihoods, and economic resilience of communities. Frequent erosion, landslides,
and flash flooding from stronger rainfall events continue to damage infrastructure in Nepal, and increasing
intensity and variability of these events are expected to cause greater loss and damage of infrastructure 8. Sudden
flooding events can also come from melting glaciers and resultant Glacial Lake Outburst Floods (GLOF), as
glaciers continue to retreat in the Himalayas 9. Biodiversity and ecosystems also face considerable risk from
climate change, with drought affecting wetlands in the Terai and changes to the small and specific environments
of the high alpine 10. Agriculture faces numerous threats from changing climate, from loss of effective soil and
area for farming to the loss of particular species of plants and livestock from certain areas due to changes in
temperature or rainfall patterns 11. Effects on livestock can come from changes in the prevalence of certain
diseases, and the increase in vector borne diseases from changing temperatures 12, which can also affect human
health. Climate threats include direct impacts on human health from heat waves and increasing temperature, and
threat of injury or death from flash floods and collapsing infrastructure 13. The loss of glaciers and changing

3
Poudel, A., Cuo, L., Ding, J. and Gyawali, A.R., 2020. Spatio‐temporal variability of the annual and monthly extreme temperature indices in Nepal.
International Journal of Climatology.
4
Karki, R., Schickhoff, U., Scholten, T. and Böhner, J., 2017. Rising precipitation extremes across Nepal. Climate, 5(1), p.4.
5
Bhandari, J., 2018. WRF high resolution simulation of an extreme rainfall event over Nepal: a case study of August 11-12, 2017 event. AGUFM,
2018, pp.A21K-2865.
6
Dhaubanjar, S., Prasad Pandey, V. and Bharati, L., 2020. Climate futures for Western Nepal based on regional climate models in the CORDEX‐SA.
International Journal of Climatology, 40(4), pp.2201-2225.
7
Xu, J., Grumbine, R.E., Shrestha, A., Eriksson, M., Yang, X., Wang, Y.U.N. and Wilkes, A., 2009. The melting Himalayas: cascading effects of
climate change on water, biodiversity, and livelihoods. Conservation Biology, 23(3), pp.520-530.
8
Das, P.J. and Bhuyan, H.K., 2013. Policy and institutions in adaptation to climate change: case study on flood mitigation infrastructure in India and
Nepal. ICIMOD Working Paper, (2013/4).
9
Bajracharya, S.R., Mool, P.K. and Shrestha, B.R., 2007. Impact of climate change on Himalayan glaciers and glacial lakes: case studies on GLOF
and associated hazards in Nepal and Bhutan. International Centre for Integrated Mountain Development (ICIMOD).
10
Bhattacharjee, A., Anadón, J.D., Lohman, D.J., Doleck, T., Lakhankar, T., Shrestha, B.B., Thapa, P., Devkota, D., Tiwari, S., Jha, A. and
Siwakoti, M., 2017. The impact of climate change on biodiversity in Nepal: Current knowledge, lacunae, and opportunities. Climate, 5(4), p.80.
11
Chalise, S., Naranpanawa, A., Bandara, J.S. and Sarker, T., 2017. A general equilibrium assessment of climate change–induced loss of agricultural
productivity in Nepal. Economic Modelling, 62, pp.43-50.
12
Panthi, J., Aryal, S., Dahal, P., Bhandari, P., Krakauer, N.Y. and Pandey, V.P., 2016. Livelihood vulnerability approach to assessing climate
change impacts on mixed agro-livestock smallholders around the Gandaki River Basin in Nepal. Regional Environmental Change, 16(4), pp.1121-
1132.
13
Dhimal, M., Dhimal, M.L., Pote-Shrestha, R.R., Groneberg, D.A. and Kuch, U., 2017. Health-sector responses to address the impacts of climate
change in Nepal. WHO South-East Asia Journal of Public Health, 6(2), p.9.
rainfall patterns will also directly affect water resources availability in Nepal, with effects directly on hydrology,
hydropower, drinking water, irrigation, and sanitation 14.
CLIMATE RISK SCREENING
Based on the 2017 Nepal Climate Risk Profile and the climate risk screening process detailed in the Mission’s
approved CDCS, the climate risk of the range of potential interventions to be implemented under the Udhyam
Nepal Activity are all determined to be either moderate or low.
In order to identify more specific climate risks and determine how best to address and manage them, the Activity
shall conduct climate risk screening for each targeted sector as an award condition. The Contractor, sub-
contractors, and grantees shall integrate and implement the identified climate risk management options specific
to each sector as part of USAID environmental compliance requirements.
TERMS AND CONDITIONS OF THIS DEFERRAL

1. USAID/Nepal will ensure the required IEE is completed in the timeframe designated herein.
2. If the required environmental review cannot be completed in the designated time frame, an amendment
will be prepared and approved with justification and with a revised time frame.
3. USAID/Nepal will ensure that appropriate language to carry out the requirements of this deferral is
incorporated into relevant award documents, including requirements relating to development of the IEE.
Relevant award language shall ensure that implementation plans will be modified in accordance with the
environmental review.
4. USAID/Nepal will (i) ensure an irreversible commitment of resources will be avoided until the
environmental review is completed, and (ii) ensure appropriate environmental reviews are completed for
incremental funding actions as subprojects/sub activities or aspects of projects/activities are identified.
5. The CRM will be completed and incorporated into the IEE.
6. USAID/Nepal will clear this deferral with the ASIA BEO as part of the IEE as required by this document.
Deferrals may be cleared for aspects of projects/activities, such as clearing one task order under an IDIQ,
while the deferral remains in place for further task orders.

BEO SPECIFIED CONDITIONS OF APPROVAL

[For BEO’s input, if any]

IMPLEMENTATION

In accordance with 22 CFR 216 and Agency policy, the conditions and requirements of this document become
mandatory upon approval.

USAID APPROVAL OF DEFERRAL OF IEE

ACTIVITY NAME: Udhyam Nepal

14
Agrawala, S., Raksakulthai, V., van Aalst, M., Larsen, P., Smith, J. and Reynolds, J., 2003. Development and climate change in Nepal: Focus on
water resources and hydropower (pp. 14-28). Paris: Oecd.
Bureau Tracking ID: ASIA 21-049

APPROVED DISAPPROVED

Adriana Hayes for SK 3/5/2021

Sepideh Keyvanshad Date Sepideh Keyvanshad

Mission Director Mission Director

CONCURRENCE:

APPROVED DISAPPROVED

Cleared 3/5/2021
William Gibson Date William Gibson
Bureau Environmental Officer Bureau Environmental Officer

CLEARANCES
 David Chalmers
Acting Director, Social, Environmental, Cleared Date: 3/5/2021
and Economic Development Office Signed

Shanker Khagi, Cleared Date: 3/4/2021

MEO
Signed

Andrei Barannik, Cleared thru email

Regional Environmental Date: 3/5/2021
Advisor/SCA, Afghanistan and Signed
Pakistan

Mark Driver, RLO Cleared with one Date: 03/05/2021

comment
Signed

Cleared
Adriana Hayes, DMD Date: 3/5/2021
Signed

INITIAL ENVIRONMENTAL EXAMINATION

1.0 ACTIVITY DESCRIPTION
1.1 PURPOSE OF THE IEE
The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22 CFR 216),
is to provide a preliminary review of the reasonably foreseeable effects on the environment of the USAID
intervention described herein and recommend determinations and, as appropriate, conditions, for these activities.
Upon approval, these determinations become affirmed, and specified conditions become mandatory obligations
of implementation. This IEE also documents the results of the Climate Risk Management process in accordance
with USAID policy (specifically, ADS 201mal).
This IEE is a critical element of USAID’s mandatory environmental review and compliance process meant to
achieve environmentally sound design and implementation. Potential environmental impacts should be addressed
through formal environmental mitigation and monitoring plans (EMMPs) and/or Environmental Assessments
(EAs), if needed.
1.2 ACTIVITY OVERVIEW
The purpose of the Udhyam Nepal activity is to enable the Nepali private sector to become competitive globally
by strengthening key agriculture and non-agriculture sectors with high potential for growth and employment
creation while recovering from the impact of COVID-19.
1.3 ACTIVITY DESCRIPTION
Brief Description: The overall goal of Udhyam Activity is: “Nepali private sector’s competitiveness in targeted
domestic and global value chains increased.”

The Activity will include a set of interventions that contribute to measurable improvements in the functioning of
market systems, business operations, and/or production capabilities; promote investment and increased use of
improved technologies and innovations as well as financial and non-financial services to spur productivity;
strengthen marketing capacities; and streamline select import and export procedures. Most of the interventions
will be focused and well-tailored to firms in the targeted sectors, and some will yield broad-based and positive
system-wide impacts for Nepali firms as a whole. The Contractor will flexibly adapt interventions and seize
opportunistic actions at a firm level that increase jobs and exports, increase competitiveness in the targeted
agriculture and non-agriculture sectors, and help to offset losses related to COVID-19, other threats posed by
pandemics or disease outbreaks, natural disasters, or political and economic instability.

Udhyam Nepal has three main objectives and one optional quantity objective which USAID may exercise if funds
are available, if it deems the conditions are necessary, and if the Contractor’s performance is adequate:
1. Access to market-based financial and non-financial services improved
2. Productivity in sectors with high growth and employment potential increased
3. Improved investment climate and business enabling environment, especially for targeted sectors
4. (Increased Quantity Option): Private sector led economic recovery supported

The Activity will adopt a co-design approach, where USAID and the Contractor will engage closely to explore
and identify innovative and effective approaches and interventions that catalyze new partnerships and unlock new
investment and trade opportunities in the targeted sectors. A Grants Under Contract (GUC) component may be
proposed to fund such innovative partnerships with Nepali and/or international private sector entities to advance
the trade and competitiveness goal.

Type of action: Contract

Budget Estimate: $19,000,000
Implementing Partner (IP): TBD
Table 1: ILLUSTRATIVE SUB-ACTIVITIES

Sub Activity 1.1 Increase access to finance and investment for private enterprises in high
potential sectors.

Sub Activity 1.2 Increase access to market-based business development services for private
enterprises in high potential sectors.

Sub Activity 1.3 Provide targeted productivity-enhancing technical assistance and capacity
building to enterprises in sectors with high growth and employment potential, including by
 increasing their access to affordable technologies, product development and diversification, and
strengthened human capital.

Sub Activity 1.4 Provide technical assistance and capacity building to private enterprises in high
potential sectors to export.

Sub Activity 1.5 Provide technical assistance and capacity building to private enterprises in high
potential sectors to obtain certification with international quality control institutions in meeting
minimum product standards.

Sub Activity 1.7 Strengthen the capacity of the private sector to effectively engage in public-
policy dialogues and policy advocacy.

Sub Activity 1.8 Provide technical assistance and capacity building to reduce the barriers to trade
and investment and improve the business enabling environment.

Sub Activity 1.9 Unlock new sources of financing and investment for the private sector,
including green growth financing, climate financing, and foreign and domestic investment.

Increased Quantity Option Sub Activities

Sub Activity 1.10 Provide technical assistance and capacity building support to private
enterprises in areas affected by natural disasters, climate change, disease outbreaks and
pandemics (including new issues that arise related to the COVID-19 pandemic), political
instability, and economic disruptions, in order to kick-start and sustain local economic recovery.

Sub Activity 1.11 Mobilize the private sector and forge new partnerships and financing to bolster
economic recovery efforts.

2.0 BASELINE ENVIRONMENTAL INFORMATION

2.1 LOCATIONS
Udhyam Nepal will be implemented by the USAID/Nepal Social, Environmental and Economic Development
(SEED) Office. The Activity will take place in Kathmandu, with sub-activities likely in a variety of other locations
throughout the country, in a variety of environmental conditions, depending on the agricultural and non-
agricultural sectors targeted by the Offeror.
2.2 ENVIRONMENTAL CONTEXT
There are three ecological regions in Nepal. These are: the Terai, low lying plains bordering the northern belt of
India; the mid-hill areas running north-south at altitudes ranging between 2,000 to 4,500 meters; and the
mountainous areas that include the Himalayan mountain ranges in the north. This activity will be implemented
in Kathmandu and selected provinces.
Nepal has a large diversity of topography, ecosystems and habitats. The country’s abundant and diverse natural
resource base plays an important role in supporting livelihoods of a majority of its citizens and, if managed well,
has the potential to continue to do so for many years. Nepal’s vast natural capital —the stock of natural ecosystems
that yields a flow of valuable ecosystem goods and services to the present and future generations—are critical to
ensuring food security, power development, and a robust tourism sector. Deteriorating natural resources,
including biodiversity, water, and forests, poses a significant threat to the long-term health of Nepal’s economy
and may reverse many development achievements. Over 40 percent of Nepal’s economy is tied to agricultural
production, supporting the livelihoods of two thirds of the country’s population. Tourism in Nepal is the second-
largest foreign income earner after remittances. Visitors to national parks and wildlife reserves comprise 38
percent of tourist visits.
Despite some notable successes in protecting Nepal’s natural resources, significant threats remain. Invasive
species, such as the terrestrial “mile-a-minute” vine and water hyacinth, are quickly taking over forest and
freshwater areas. Poorly planned and constructed secondary roads are contributing factors to landslides, and
larger infrastructure is reducing habitat connectivity. Unregulated agriculture is expanding into forest and wetland
areas in the Terai, while migration is leaving terraces in the hills barren, un-maintained, and prone to collapse.
Specific threats to freshwater ecosystems, and the water resources vulnerable people need to survive, including
poorly sited, constructed, and managed dams, large-scale water diversion plans, urban domestic waste, aggregate
mining from riverbeds, and agricultural pollution. The wide range of habitats and species found in Nepal means
that areas of important biodiversity remain unprotected or under-protected.
Nepal is vulnerable to various natural disasters, including floods, droughts, and seismic hazards. The 2015 Gorkha
earthquake and its aftershocks caused over $7 billion in loss and damages and resulted in nearly 9,000 lives lost,
mostly in the hilly and mountain regions.
2.3 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER INTERNATIONAL
STANDARDS (E.G. WHO), ENVIRONMENTAL AND SOCIAL LAWS, POLICIES, AND REGULATIONS
The Government of Nepal (GON) has a policy of enforcing all environmental legislation, but the previous
centralized GON never had sufficient work force for consistent enforcement. Nepal has now transitioned to a
federal state, with enforcement of such codes and legislation being mandated to the municipal governments. While
they have the potential for high interest and ownership of such tasks, they are still lacking in capacity. The
legislation includes the Environmental Impact Assessment Guidelines 1993 15; Environmental Protection Act
2019; Environmental Protection Regulation 2019. The Guidelines, Act, Rules, and other regulations provide the
basic legal framework for all environmental assessments in Nepal with the aim:
▪ To protect the fundamental right of a citizen to live in a clean and healthy environment
▪ To make polluter pay compensation to the affected people from environmental pollution
▪ To balance development efforts and environmental conservation
▪ To mitigate the adverse environmental impacts on the natural environment and biodiversity
▪ To address the challenges from climate change

The Guidelines, Act, and Regulations require that either an IEE or EIA is required for any development project.
3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK
Table 2 POTENTIAL IMPACTS - SUB-ACTIVITIES

15
http://moste.gov.np/legal_documents/Regulation
ACTIVITY POTENTIAL ENVIRONMENTAL AND
SOCIAL IMPACTS

Sub Activity 1.1 Increase access to finance and Financing of investments in the various
investment for private enterprises in high targeted sectors, which have yet to be
potential sectors. determined, could have a wide range of
potential environmental and social impacts,
Sub Activity 1.2 Increase access to market- depending on the sector, scale, and location of
based business development services for investments; USAID’s manageable interest in
private enterprises in high potential sectors. the downstream outcomes and impacts of the
activity is therefore also unknown. Indirectly,
negative impacts associated with loan making,
business development, and financing, without
Sub Activity 1.3 Provide targeted productivity- environmental due diligence requirements
enhancing technical assistance and capacity integrated into that process, can contribute to
building to enterprises in sectors with high industry and sector growth that is
growth and employment potential, including unsustainable and reliant on extraction or
by increasing their access to affordable depletion of natural resources for financial
technologies, product development and benefit. An adequate analysis of potential
diversification, and strengthened human environmental impacts to meet the
capital. requirements of 22 CFR 216 procedures cannot
be made at this stage as target stakeholders,
Sub Activity 1.4 Provide technical assistance their investment interest, and design
and capacity building to private enterprises in safeguards are still unknown
high potential sectors to export.

Sub Activity 1.5 Provide technical assistance

and capacity building to private enterprises in
high potential sectors to obtain certification
with international quality control institutions in
meeting minimum product standards.

Sub Activity 1.7 Strengthen the capacity of the

private sector to effectively engage in public-
policy dialogues and policy advocacy.

Sub Activity 1.8 Provide technical assistance

and capacity building to reduce the barriers to
trade and investment and improve the business
enabling environment.

Sub Activity 1.9 Unlock new sources of

financing and investment for the private sector,
 including green growth financing, climate
financing, and foreign and domestic
investment.

Increased Quantity Option Sub Activities

Sub Activity 1.10 Provide technical assistance

and capacity building support to private
enterprises in areas affected by natural
disasters, climate change, disease outbreaks
and pandemics (including new issues that arise
related to the COVID-19 pandemic), political
instability, and economic disruptions, in order
to kick-start and sustain local economic
recovery.

Sub Activity 1.11 Mobilize the private sector

and forge new partnerships and financing to
bolster economic recovery efforts.

4.0 ENVIRONMENTAL DETERMINATIONS

41. RECOMMENDED ENVIRONMENTAL DETERMINATIONS
The deferral of the threshold determination for the Udhyam Nepal activity must be rectified prior to the
irrecoverable disbursement of funds (see BEO Specific Conditions and Section 5.2.5 for resolution of the deferral
and limitations to programming of funds).
4.2 CLIMATE RISK MANAGEMENT
USAID supports strengthening development outcomes by integrating climate change into Agency programming,
learning, policy dialogues and operations. The Automated Directives System (ADS) 201 requires climate risk
assessment and management for all new projects and activities across sectors to ensure the effectiveness and
sustainability of project and activity objectives in the face of extreme weather and climate events.
4.3 CLIMATE RISKS AND VULNERABILITIES
Significant warming has occurred in Nepal, with an average annual increase of approximately 0.06 degree
Celsius 16. The mean of temperature changes is expected to be an increase of approximately 1.4 degrees Celsius
by the 2030s, with extremely hot days to increase by 55 percent by mid-century, going up to 70 percent by the
end of the century 17. Current and future predicted changes in the pattern of monsoon rains will further exacerbate

16
Shrestha, A.B. and Aryal, R., 2011. Climate change in Nepal and its impact on Himalayan glaciers. Regional Environmental Change, 11(1), pp.65-
77.
17
Poudel, A., Cuo, L., Ding, J. and Gyawali, A.R., 2020. Spatio‐temporal variability of the annual and monthly extreme temperature indices in
Nepal. International Journal of Climatology.
these challenges and disasters in Nepal 18. Coupled with the increasing variability in rainfall, with a potential 50
percent increase in extreme rainfall events, flash flooding also becomes an increasing concern 19. Moreover, there
is a high amount of variability in rainfall over even relatively short distances 20 and monitoring is hampered by
scarce historical climate data and limited numbers of monitoring stations. The effects of these rainfall patterns
and temperature changes vary with the large degree of elevation differential in Nepal 21. Evidence suggests that
the complex topography associated with nearly all of Nepal’s area would have increasing effects from climate
change versus areas with less relief and complex geometries16.
Multiple sectors face challenges from the effects of climate change in Nepal, with some of those sectors directly
affecting the security, health, livelihoods, and economic resilience of communities. Frequent erosion, landslides,
and flash flooding from stronger rainfall events continue to damage infrastructure in Nepal, and increasing
intensity and variability of these events are expected to cause greater loss and damage of infrastructure 22. Sudden
flooding events can also come from melting glaciers and resultant Glacial Lake Outburst Floods (GLOF), as
glaciers continue to retreat in the Himalayas 23. Biodiversity and ecosystems also face considerable risk from
climate change, with drought affecting wetlands in the Terai and changes to the small and specific environments
of the high alpine 24. Agriculture faces numerous threats from changing climate, from loss of effective soil and
area for farming to the loss of particular species of plants and livestock from certain areas due to changes in
temperature or rainfall patterns 25. Effects on livestock can come from changes in the prevalence of certain
diseases, and the increase in vector borne diseases from changing temperatures 26, which can also affect human
health. Climate threats include direct impacts on human health from heat waves and increasing temperature, and
threat of injury or death from flash floods and collapsing infrastructure 27. The loss of glaciers and changing
rainfall patterns will also directly affect water resources availability in Nepal, with effects directly on hydrology,
hydropower, drinking water, irrigation, and sanitation 28.

18
Karki, R., Schickhoff, U., Scholten, T. and Böhner, J., 2017. Rising precipitation extremes across Nepal. Climate, 5(1), p.4.
19
Bhandari, J., 2018. WRF high resolution simulation of an extreme rainfall event over Nepal: a case study of August 11-12, 2017 event. AGUFM,
2018, pp.A21K-2865.
20
Dhaubanjar, S., Prasad Pandey, V. and Bharati, L., 2020. Climate futures for Western Nepal based on regional climate models in the CORDEX‐
SA. International Journal of Climatology, 40(4), pp.2201-2225.
21
Xu, J., Grumbine, R.E., Shrestha, A., Eriksson, M., Yang, X., Wang, Y.U.N. and Wilkes, A., 2009. The melting Himalayas: cascading effects of
climate change on water, biodiversity, and livelihoods. Conservation Biology, 23(3), pp.520-530.
22
Das, P.J. and Bhuyan, H.K., 2013. Policy and institutions in adaptation to climate change: case study on flood mitigation infrastructure in India
and Nepal. ICIMOD Working Paper, (2013/4).
23
Bajracharya, S.R., Mool, P.K. and Shrestha, B.R., 2007. Impact of climate change on Himalayan glaciers and glacial lakes: case studies on GLOF
and associated hazards in Nepal and Bhutan. International Centre for Integrated Mountain Development (ICIMOD).
24
Bhattacharjee, A., Anadón, J.D., Lohman, D.J., Doleck, T., Lakhankar, T., Shrestha, B.B., Thapa, P., Devkota, D., Tiwari, S., Jha, A. and
Siwakoti, M., 2017. The impact of climate change on biodiversity in Nepal: Current knowledge, lacunae, and opportunities. Climate, 5(4), p.80.
25
Chalise, S., Naranpanawa, A., Bandara, J.S. and Sarker, T., 2017. A general equilibrium assessment of climate change–induced loss of agricultural
productivity in Nepal. Economic Modelling, 62, pp.43-50.
26
Panthi, J., Aryal, S., Dahal, P., Bhandari, P., Krakauer, N.Y. and Pandey, V.P., 2016. Livelihood vulnerability approach to assessing climate
change impacts on mixed agro-livestock smallholders around the Gandaki River Basin in Nepal. Regional Environmental Change, 16(4), pp.1121-
1132.
27
Dhimal, M., Dhimal, M.L., Pote-Shrestha, R.R., Groneberg, D.A. and Kuch, U., 2017. Health-sector responses to address the impacts of climate
change in Nepal. WHO South-East Asia Journal of Public Health, 6(2), p.9.
28
Agrawala, S., Raksakulthai, V., van Aalst, M., Larsen, P., Smith, J. and Reynolds, J., 2003. Development and climate change in Nepal: Focus on
water resources and hydropower (pp. 14-28). Paris: Oecd.
4.4 CLIMATE RISK SCREENING
Based on the 2017 Nepal Climate Risk Profile and subsequent analysis conducted by USAID/Nepal, the climate
risk of the range of potential interventions to be implemented under the Udhyam Nepal Activity are all determined
to be either moderate or low.
In order to identify more specific climate risks and determine how best to address and manage them, the Activity
shall conduct climate risk screening for each targeted sector as an award condition. The Contractor, sub-
contractors, and grantees shall integrate and implement the identified climate risk management options specific
to each sector as part of USAID environmental compliance requirements.
5.0 REVISIONS
The IEE shall be amended by USAID when USAID Nepal Mission agrees with the proposed Performance Works
Statement of the apparently successful bidder. As with all USAID funded projects and pursuant to 22 CFR 216.3
(a) (9), if new information becomes available which indicates that any of the proposed actions to be funded under
this activity might be "major" and their effects "significant", the threshold decisions for those actions will be
reviewed and revised by the MEO and an environmental assessment prepared, as appropriate. It is the
responsibility of the COR to timely inform the MEO and BEO of any changes in the scope and nature of the
approved activities that may require the revision of the approved Threshold Decision.

[END OF ATTACHMENT: J.5]

Attachment J.6
OMB Control No: 0412-0520; Expiration Date: 3/31/2021

CONTRACTOR EMPLOYEE BIOGRAPHICAL DATA SHEET

The Privacy Act Statement is found at the end of this form.
1. Name (Last, First, Middle) 2. Contractor’s Name

3. Employee’s Address (include ZIP code) 4. Contract Number 5. Position Under Contract

6. Proposed Salary 7. Duration of Assignment

8. Telephone Number (include 9. Place of Birth 10. Citizenship (If non-U.S. citizen, give visa status)
area code)
11. Names, Ages, and Relationship of Dependents to Accompany Individual to Country of Assignment

13. LANGUAGE PROFICIENCY (see Instruction on

12. EDUCATION (include all college or university degrees)
Page 2)
NAME AND LOCATION OF Proficiency Proficiency
MAJOR DEGREE DATE LANGUAGE
INSTITUTION Speaking Reading

14. EMPLOYMENT HISTORY (List last three (3) positions held by the individual)
EMPLOYER’S NAME AND ADDRESS Dates of Employment (M/D/Y)
POSITION TITLE POINT OF CONTACT &TELEPHONE
# From To

15. SPECIFIC CONSULTANT SERVICES (give last three (3) years). Continue on a separate sheet of paper, if required, to provide this
information.

EMPLOYER’S NAME AND ADDRESS Dates of Employment (M/D/Y)

SERVICES PERFORMED POINT OF CONTACT &TELEPHONE
# From To

16. RATIONALE FOR PROPOSED SALARY (Provide the basis for the salary proposed in Block 6 with supporting rationale for the market value of the position. Continue on a
separate sheet of paper, if required) Salary definition – basic periodic payment for services rendered. Exclude bonuses, profit-sharing arrangements, commissions, consultant fees, extra or
overtime work payments, overseas differential or quarters, cost of living or dependent education allowances.

17. CERTIFICATION: To the best of my knowledge, the above facts as stated are true and correct.
Signature of Employee Date

18. CONTRACTOR'S CERTIFICATION (To be signed by responsible representative of Contractor)

Contractor certifies in submitting this form that it has taken reasonable steps (in accordance with sound business practices) to verify the information in this form. Contractor understands that
USAID may rely on the accuracy of such information in negotiating and reimbursing personnel under this contract. Certifications that are false, fictitious, or fraudulent, or that are based on
inadequately verified information, may result in appropriate remedial action by USAID, taking into consideration all the pertinent facts and circumstances, ranging from refund claims to criminal
prosecution.
Signature of Contractor’s Representative Date
 INSTRUCTION

Indicate your language proficiency in block 13 using the following numeric Interagency Language Roundtable levels (Foreign Service
Institute Levels). Also, the following provides brief descriptions of proficiency levels 2, 3, 4, and 5. “S” indicates speaking ability and “R”
indicates reading ability. For more in-depth description of the levels refer to ADS 438

2. Limited working proficiency

S Able to satisfy routine special demands and limited work requirements.

R Sufficient comprehension to read simple, authentic written material in a form equivalent to usual printing or typescript on familiar
subjects within familiar contexts.

3. General professional proficiency

S Able to speak the language with sufficient structural accuracy and vocabulary to participate effectively in most formal and informal
conversations on practical, social, and professional topics.

R Able to read within a normal range of speed and with almost complete comprehension of a variety of authentic prose material on
unfamiliar subjects.

4. Advanced professional proficiency

S Able to use the language fluently and accurately on all levels normally pertinent to professional needs.

R Able to read fluently and accurately all styles and forms of the language pertinent to professional needs.

5. Functionally native proficiency

S Speaking proficiency is functionally equivalent to that of a highly articulate well-educated native speaker and reflects the cultural
standards of a country where the language is natively spoken.

R Reading proficiency is functionally equivalent to that of the well-educated native reader.

PAPERWORK REDUCTION ACT INFORMATION

The information requested by this form is necessary for prudent management and administration of public funds under USAID contracts. The
information helps USAID estimate logistic support and allowances, the educational information provides an indication of qualifications, and the
proposed salary, along with the basis and rationale for the market value is used to monitor cost and help determine reasonableness of
proposed salary.
PAPERWORK REDUCTION ACT NOTICE

Public reporting burden for this collection of information is estimated to average thirty minutes per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to:

United States Agency for International Development

Bureau for Management
Office of Acquisition and Assistance
Policy Division (M/OAA/P)
Washington, DC 20523-7100;

and

Office of Management and Budget

Paperwork Reduction Project (0412-0520)
Washington, DC 20503
PRIVACY ACT STATEMENT
Authority: Foreign Assistance Act, Pub. L. 87-165, as amended; and 48 CFR Ch. 7 - AIDAR,

Purpose: To collect, use, maintain, and disclose information to determine the qualifications of an individual for a specific contract position and
to determine the reasonableness of proposed salary or consultant rate for the services proposed under the contract.

Routine Uses: The personal information is used by USAID to maintain administrative records and to perform other administrative functions
inherent in the administration of the contract. This information will be used by USAID Contracting Officers and will not be disclosed outside
USAID.

Disclosure: Contractor employees/consultants under USAID cost-reimbursement contracts must submit personal, employment history, and
educational data, and the contractor must provide the basis and rationale for the proposed salary as specified in the form. Providing personal
information is voluntary. However, failure to provide any of the requested information may delay or prevent approval of the individual proposed
under the specific contract.

[END OF ATTACHMENT: J.6]