Frequently Asked Questions

This Grant Beneficiary Handbook has been designed to inform prospective Aqaba Community and Economic Development Program grant applicants on all aspects of applying for, managing and reporting on grants that may be awarded under the USAID-funded Aqaba Community and Economic Development Program. All aspects of the grants program are described herein, including the eligibility criteria for organizations, the process and format for applying for a grant, the criteria for evaluating grants for award, the responsibilities of grant beneficiaries, and the processes and other requirements for managing and reporting on grants. If you have any questions related to the Aqaba Community and Economic Development Program Grants program or this Grant Beneficiary Handbook, please contact:

Grants Manager

Aqaba Community and Economic Development Program

Email: grants@aced-jordan.com

Tel: 962-3-201-7761

Fax: 962-3-201-7760

You may also contact the Aqaba Community and Economic Development Program component leader involved with your organization.

Because USAID is the source of funds under the Aqaba Community and Economic Development Program grants program, there are strict requirements attached to the solicitation and management of these funds. Every effort will be made by the Aqaba Community and Economic Development Program to ensure that prospective grant applicants and beneficiaries fully understand the requirements included in this Handbook. Prior to the submission of applications, a Grant Solicitation Workshop may be held to discuss the grants program and to answer questions about grant applications and grants management. In addition, following the award of any large grants, a Beneficiary Orientation Workshop will be organized to provide new Beneficiaries with training of the management of USAID-funded grants. Also, the Aqaba Community and Economic Development Program accountant will support the grantee’s accountant as needed to ensure all documentation is clear and provided. In addition, the staff of Aqaba Community and Economic Development Program is available during regular business hours, and at other times by appointment, to answer any questions of an administrative or programmatic nature that may come up. Aqaba Community and Economic Development Program is committed to work with each Beneficiary to ensure the success of the Program.

This manual is intended to provide guidelines on financial and administrative control required for the grants awarded under this agreement, and will serve as an Attachment to the Grant Agreement signed between the Aqaba Community and Economic Development Program and the beneficiary. Budget and costs accounting are essential tools for monitoring the grants fund activities. Each beneficiary must comply with the provisions included in this Handbook and presented during the below mentioned workshops. During course of the grant, Aqaba Community and Economic Development Program may verify an individual beneficiary’s compliance through written questionnaires, site visits, independent audits, or by other means. Beneficiaries who do not comply with provisions may have their grants terminated and be required to return any grant funds found to be disallowable.

This Handbook is intended for use by any prospective beneficiary of a grant awarded by the Aqaba Community an Economic Development Program.

The Aqaba Community and Economic Development Program is a five-year economic opportunities program funded by the United States Agency for International Development (USAID). The Aqaba Community and Economic Development Program does this through three initiatives. The below information is illustrative of the areas of work.

Component 1: Strengthened Government Institutions

The objective of the Strengthened Government Institutions Component is to ensure that ASEZA and ADC become sustainable efficient institutions capable of carrying out their respective roles as regulator and developer of the Zone. This will be accomplished through legislative and regulatory reform if required; through internal institutional capacity strengthening of both organizations; and by building linkages with other public and private institutions, including civil society, to ensure that development in ASEZ is broad-based and sustainable over the long-term.

Component 2: Strengthened Private Sector

The objectives of the Strengthened Private Sector Component are two fold: 1) to ensure that Aqabites are in a position to join the modern workforce; and 2) to improve the ability of the private sector in Aqaba to be competitive. This component will work directly with the private sector to enhance the ability of MSMEs (both male and female) to provide services and products for the tourism industry, support manufacturing and the logistical (ports, trucking, warehousing, etc.) services sectors. It will also work jointly with the private sector and the government through the Vocational Training Centers to prepare better trained labor to fill the long-term jobs that will be created in Aqaba over the next five to ten years.

Component 3: Enhanced Community Development

The objectives of the Enhanced Community Development Component are: 1) to establish mechanisms for the local community to participate in development decision-making for the ASEZ; 2) to enhance the capacity of local non-governmental organizations (NGOs) to provide relevant services to members; and 3) through a range of activities to encourage both male and female local citizens to participate in the modern economy and have access to social services and infrastructure.

The (ACED) Program is currently accepting concept papers for activities to be funded under its grants program for potential activities between October 11, 2007, and October 31, 2012. The grants should support activities and programs that complement existing ACED activities and help achieve the program’s intermediate results. Specifically, the grants will provide assistance to programs yielding results. Please note that ACED’s performance management plan is being developed, and thus these results will change though now used as illustrative. 

USAID/Jordan, as part of its Strategic Objective toward “Improved Economic Opportunities for Jordanians” (SO3), has been active in several different aspects of Aqaba as part of its plan.

USAID/Jordan’s Office of Economic Opportunities carries out monitoring and evaluation of its current portfolio through a series of 12 indicators. Of those 12, there are several that the ACED would fold into as a matter of course, namely:

• Gender and Youth as cross cutting themes

• Technical assistance;

• Training;

• Strategic planning;

• Sector analyses, feasibility studies and policy briefs;

• Human Resources improvements;

• Business Practice reforms;

• Supply chain analysis;

• Program support grants;

• Public awareness and advocacy services;

• Public/Private Forums;

• Commodities and equipment procurement;

• Program results monitoring, reporting and coordination.

The grants component of Aqaba Community and Economic Development Program will be a key element in the ultimate achievement of these USAID intermediate results. However, the Aqaba Community and Economic Development Program (ACED) itself has its own objectives and intermediate results. All grants must directly lead to meeting ACED’s objectives and results (please see "What are the goals of the program" below).

Program Development Grants have the following specifications:

• Maximum grant period: two years.
• Maximum grant amount: not to exceed the JD equivalent of US$200,000
• Allowable purpose: beneficiary activities which are consistent with both beneficiary and Aqaba Community and Economic Development Program objectives, particularly with respect to organizational and program development, policy analysis and advocacy, and membership services development for sustainability. Beneficiary activities must be an integral part of a Beneficiary’s long range Strategic Plan.
• Other specifications: the proposed program must become sustainable over the life of the funding registered in the Application. A Program Development Grant award will not necessarily preclude the beneficiary from also receiving other grant types.
• Allowable costs: these include, but are not limited to:
  
  • Seminars, workshops, conferences and other events put on by the Beneficiary;
  • Technical assistance services;
  • Training courses, including trainers, course materials, site costs, etc.;
  • Publications such as layout, printing, distribution, etc.;
  • Commodities such as computer equipment, software, audiovisual equipment, etc.;
  • Indirect costs of the beneficiary; and
  • international travel and related expenses
• Costs that are not allowable: the following costs are not allowable, reimbursable costs under Program Development Grants:
  
  • Any Beneficiary expenses that are not directly linked to, or integral to achievement of, the Beneficiaries proposed long-range Strategic Plan (overall long-range plan for beneficiary’s organization).
• Approval Required: Approval by USAID CTO and RCO
• Application type: Full application as described in Annex A-3
• Payment type: Fixed payments based on deliverables or funds advance/ Liquidation funds advanced and subsequently liquidated against allowable expenses supported by bona fide receipts from beneficiary

Grants	Type	USAID Approvals	Maximum Duration	Maximum Amount	Documentation Required	Payment Type
	Mini	CTO Approval	90 Days	Up to $25,000	Final Report	Expense Report/ Reimbursement
	Small	CTO (and RCO if equipment or International Travel)	Up to 1 Year	up to $100,000	Final Report	Expense Report/ Reimbursement
	Fixed Obligation	CTO Approval	Up to 1 Year	up to $200,000	Deliverables	Fixed Payments based on Deliverables
	Program Development	CTO and RCO Approval	Up to 2 Years	up to $200,000	Quarterly and Final Report	Fixed Payments based on Deliverables or Advance/ Liquidation

A Mini-Grant is a special category of small grant which has the following specifications:

• Maximum grant period: 90 days
• Maximum grant amount: not to exceed the JD equivalent of US$25,000
• Allowable purpose: Beneficiary activities which are consistent with both beneficiary and Aqaba Community and Economic Development Program objectives but which are not necessarily part of a Strategic Plan (overall long-range plan for beneficiary’s organization). These activities will tend to be one-off, stand alone activities
• Other specifications: The award of Mini-Grants will not necessarily preclude the Beneficiary from also receiving other grant types
• Allowable costs: Allowable costs include, but are not limited to:
  
  • Seminars, workshops, conferences and other events;
  • Technical assistance services;
  • Training courses, including the cost of trainers, course materials, site costs, etc.;
  • Publications and publication related costs such as layout, printing, distribution, etc.
• Costs that are not allowable: these costs include the following:
  
  • international travel,
  • commodities having a life of greater than one year and a cost of greater than $5,000
  • indirect beneficiary costs
  • Special costs such as international travel and commodities with a life of more than one year and value greater than $5000 are allowable with the agreement officer’s approval
• Approval required: approval by USAID CTO 
• Application type: short form application described in Annex A-2
• Payment type: reimbursement of allowable expenses supported by bona fide receipts from beneficiary

Fixed Obligation Grants, also known as FOG Grants, have the following specifications:

• Maximum grant period: 360 days
• Maximum grant amount: not to exceed the JD equivalent of US$200,000
• Allowable purpose: beneficiary activities which are consistent with both beneficiary and Aqaba Community and Economic Development Program objectives.
• Other specifications: a Fixed Obligation Grant schedule of disbursements must be associated with one or more very specific program benchmarks where there is a certainty about the cost of achieving the each benchmarks cost and where accomplishment each benchmarks by the Beneficiary is readily discernible in fact and in time. The schedule of disbursements reflects both the timing and the amount of beneficiary payments for the accomplishment of each benchmark, and it is therefore essential that the Grants Evaluation Committee be satisfied that there is sufficient cost history to negotiate the schedule of disbursements.
• Allowable costs: subject to the generally unallowable costs specified in subsection J.2.. below, there is no requirement for monitoring of types on magnitudes of the costs of the actual costs of achieving the benchmarks.
• Approval Required: approval by USAID Cognizant Technical Officer (CTO) which is dependent upon:
  • The ability to easily identify and quantify programmatic accomplishments or results in establishing grant benchmarks;
  • Limited risk that there will be changes to the program; and
  • Adequate cost (historical or unit pricing) available to determine and negotiate the schedule of disbursements.
• Application type: full application as described in Annex A-2  Payment type: payment made to beneficiary after presentation of accomplishment of milestones.

A Small Grant has the following specifications:

• Maximum grant period: 360 days
• Maximum grant amount: not to exceed the JD equivalent of US$100,000. Note that Mini-Grants, a sub-category of Small Grant discussed below, are limited to the Dinar equivalent of US$25,000.
• Allowable purpose: beneficiary activities which are consistent with both Beneficiary and Aqaba Community and Economic Development Program objectives but which are not necessarily part of a Strategic Plan (overall long-range plan for beneficiary’s organization). These activities will tend to be one-off, stand alone activities.
• Other specifications: The award of a Small Grants will not necessarily preclude the beneficiary from also receiving other grant types.
• Allowable costs: these include, but are not limited to:
  • Seminars, workshops, conferences and other events;
  • Technical assistance services;
  • Training courses, including the cost trainers, course materials, site costs, etc.;
  • Publications and publication related costs such as layout, printing, distribution, etc.
• Costs that are not allowable: indirect beneficiary costs - (Special costs such as international travel and commodities with a life of more than one year and value greater than $5000 are allowable with the agreement officer’s approval.)
• Approval required: approval by USAID CTO
• Application type: short form application described in Annex A-2
• Payment type: reimbursement of allowable expenses supported by bona fide receipts from beneficiary

There are four basic types of grants available from the Aqaba Community and Economic Development Program. All require approval from the Aqaba Community and Economic Development Program and USAID’s CTO. They differ from each other by purpose, size, duration, payment method, and other aspects. The four types of grants that may be awarded under the Aqaba Community and Economic Development Program include:

• Mini-Grants
• Small Grants
• Fixed Obligation Grants
• Program Development Grants

A grants program will allow the contractor to provide funds to various organizations for internal strengthening/institution building as well as to support activities of potentially viable organizations. Each of the components will have a public outreach element whereby the local community will be provided information on how the various programs affect and improve their lives. A strong monitoring and evaluation and impact assessment unit will be created under the project that will establish baselines, targets and measure results for the Aqaba Community and Economic Development Program, while also strengthening the capacity of ASEZA and ADC to measure results.

The Grants Program is one of the mechanisms that will be used to achieve ACED’s objectives. These funds are to be used for grants to entities that provide support to non-governmental organizations, business associations, professional organizations, and universities, training institutions, and consulting firms that implement programs contributing to ACED’s goals and results. The Grants Program is to become an important resource for stimulating innovation, sector growth and strengthening institutions.

A grant is a funding mechanism whereby funds are provided to eligible organizations to carry out activities that are consistent with the objectives of the Aqaba Community and Economic Development Program and of its components. Grant funds do not have to be paid back to the Aqaba Community and Economic Development Program if the funds are properly used to implement the program for which the funds were provided in a manner fully consistent with this Handbook.

All applications for grants under the Aqaba Community and Economic Development Program must be submitted in a specific format. Any application submitted in any other format is not eligible for evaluation under the grants program and will be returned to the submitting organization. The acceptable format includes, but is not limited to, a cover letter and other supporting documentation (board resolution, articles of incorporation, etc) as may be necessary to clearly demonstrate that it meets the following conditions precedent to Application Evaluation:

• That the beneficiary organization is an eligible organization legally constituted under Jordanian law with a legal status as described in paragraph E.1. above or is in the process of obtaining such legal status through formal registration;
• that the beneficiary organization has the managerial commitment, as evidenced by written board of directors resolutions, strategic plans (overall long-range plan for beneficiary’s organization) or other documentation, indicating that it is, or will be, implementing the objectives referred to in paragraph D.2. above;
• that the beneficiary organization has received a copy of this Grant Beneficiary Handbook and that the Applicant’s management has read and understood its contents;
• that the beneficiary organization has not received any funding from Aqaba Community and Economic Development Program for the preparation of its Application;
• that the beneficiary organization has no advances from USAID or a USAID contractor which have been outstanding and un liquidated for longer than 90 days, and that the beneficiary organization has no grant completion report required under a grant from USAID or a USAID contractor which is more than 30 days past due.
• that at the time of application there exists no condition within the Beneficiary organization or with respect to the beneficiary organization’s management which renders the organization ineligible for a grant directly or indirectly funded by USAID.
• that the proposed life-of-program funding in the application does not exceed the JD equivalent as specified by each grant type.
• that the proposed period of funding requested in the application does not exceed the maximum life of the grant type applied for, not longer that an end date of October 2012.

Individuals, political organizations, foreign owned and government institutions and religious groups are not eligible for grants under The Aqaba Community and Economic Development Program. (However, US NGO’s may apply for grant funds in accordance with the US government regulations not to exceed $25,000). Also ineligible are private firms and non-governmental organizations whose objectives are not consistent with the broad objectives of Aqaba Community and Economic Development Program and/or with the specific objectives of the Aqaba Community and Economic Development Program component that would be recommending the grant for approval.

To be eligible for funding under a Grant Agreement, the Beneficiary organization must have one of the following two legal statuses:

• Private or public shareholding company, whether for-profit or not-for-profit, that have company objectives consistent with the broad objectives of Aqaba Community and Economic Development Program and the specific objectives of the Aqaba Community and Economic Development Program component recommending the grant for approval, or
• Non-Government Organizations (NGOs), professional organizations, research institutions, and other institutions that have organizational objectives that are consistent with the broad objectives of Aqaba Community and Economic Development Program and the specific objectives of the Aqaba Community and Economic Development Program component recommending the grant for approval.

Your organization may apply for a grant by submitting a concept paper in the format required in this Handbook, or by submitting a grant directly. All grants must be submitted in electronic form to grants@aced-jordan.com Applicants are encouraged not to submit grant applications before first submitting a concept paper.

1. Concept Papers Eligible Applicants should first submit a two-page concept paper in 11 point font to the grants@aced-jordan.com containing the following information:
   • The purpose and objectives of the organization and the proposed program;
   • A general description of who will benefit from the proposed program and the proposed impact on them;
   • A description of who will manage the implementation and on what timeframe the program will be implemented as an integral part of the applicant's Implementation Plan;
   • A gender statement including how males and females will participate in and benefit from the proposed program;
   • An estimate of the total amount of program funding which would be required to implement the program; and
   • Elements of applicant’s contribution, in cash and in kind as well as any other sponsors involved.
2. Grant Applications Following ACED’s receipt of Concept Papers, a response will be sent within 14 days. If the response requests a full grant application, you may submit one then.

The precise format for submission of a grant application depends on the type of grant. Only applications conforming to one of the following formats will be acceptable for evaluation by the Aqaba Community and Economic Development Program. All grant applications must be in electronic copy.

• Format for applications for Small, Mini-grants, and Fixed Obligation Grants.
  
  • Cover letter. A cover letter and attached documentation evidencing compliance with the preconditions specified in paragraph E.3 above is required to conform to the Application format for Small and Mini-Grants.
  • Full application. The required contents for a full application to conform to the Application format for Small, Mini- Grants, and fixed obligation grants are specified in Annex A-2.
• Format for applications for Program Development Grants.
  
  • Cover letter. A cover letter and attached documentation evidencing compliance with the preconditions specified in paragraph E.3. above is required to conform to the Application format for Program Development Grants.
  • Full application. The required contents for a full application to conform to the Application format for Program Development Grants are specified in Annex A-3.

The Aqaba Community and Economic Development Program will write your organization a letter indicating if your concept is acceptable or not within two weeks. If the concept is acceptable, the same letter will request that you submit a full application in the format described in this Handbook. If the concept is not acceptable, the same letter will indicate why the concept is not acceptable.

For all grants, a prospective Beneficiary must submit a concept paper describing the program concept that it is considering seeking grant funding for. Requests to submit applications following review of concept papers is not necessarily an indication of likelihood of grant award.

If you submit an application that is in the proper format as indicated above, the Aqaba Community and Economic Development Program Component Leader responsible for your organization will be in touch with you to discuss the Application and to ask clarifying questions, if any. Once the Component Leader is fully satisfied that he/she has all the information required to evaluate your organization’s Application, he/she will, along with one other member of the component, score your organization’s Application as follows:

• For Program Development Grants and Fixed Obligation Grants, see Annex A-4a. However, in summary, an application scoring 75 points or better on the criteria listed, it will be recommended to a Grants Evaluation Committee (GEC) for approval. Applications scoring 74 points or less will not be recommended for approval.
• For Small and Mini-Grants, see Annex A-4b. However, in summary, an application scoring “yes” on all six of the criteria listed, will be recommended to a Grants Evaluation Committee (GEC) for approval. Applications NOT scoring “yes” on all six of the criteria listed will not be recommended for approval.

During the technical evaluation process, there may be one or more rounds of questions by the evaluation team. Additionally, recommendation for approval to the GEC may be to approve only part of an application.

If the GEC approves your Application, the GEC approval will be recommended for further consent or approval by USAID/Jordan, and if such consent and approval is provided, your organization will be advised of a grant award.

The Aqaba Community and Economic Development Program will notify your organization by letter on whether the Application has been approved or not. If your Application is approved, the letter advising you of the grant award will be accompanied by a draft Grant Agreement. If your Application is not approved, the letter advising you of this will indicate the reason(s) why. Resubmission of the Application is permitted if your organization is an eligible organization and if the purpose for which the grant was submitted is consistent with the objectives of the Aqaba Community and Economic Development Program and with the objectives of the component responsible for your organization.

Many of the specific responsibilities of your organization depend on the type of grant and the undertakings you make in your Business Plan, if you are required to submit one. Other specific responsibilities are specified in USAID regulations that are part of the various Grant Agreements for FOG Grants (Annex A-5a), Small and Mini-Grants (Annex A-5b) and Program Development Grants (Annex A5-c).

A grant agreement is the primary written document that specifies the terms and conditions that your organization would have to comply with in order to receive grant funding from the Aqaba Community and Economic Development Program. Sample Grant Agreements for FOG Grants (Annex A-5a), Small and Mini-Grants (Annex A-5b) and Program Development Grants (Annex A-5-c) are attached hereto.

No. Program Development Grants are the primary mechanism for funding organizational business plans, and they require that the beneficiary organization fund portion of the overall program budget. The size of that portion will vary depending on the organization and the specific program. Generally however, most organizations must fund at least 10% of the program. More information about cost sharing is provided as appendices to the various Grant Agreements for FOG Grants (Annex A-5a), Small and Mini-Grants (Annex A-5b) and Program Development Grants (Annex A5-c).

The frequency and content of reporting requirements are dependent on the type of grant your organization is awarded. For all grants, a Grant Completion Report is required which details the final summary, comments, and achieved results of that activity. However, interim reports may be required for all grants as indicated in the grant agreement. Format for these reports are provided as appendices to the various Grant Agreements for FOG Grants (Annex A-5a), Small and Mini-Grants (Annex A-5b) and Program Development Grants (Annex A5-c).

The following costs are not allowable, reimbursable costs under any of the grant types mentioned above:

• Creation of endowments (Note: financing of loan portfolios is not an endowment);
• Any commodity which does not comply with, or which is not procured in a manner that compiles with, the USG/USAID commodity procurement procedures specified herein in annexes thereto; 
• Any previous obligations by USAID to the beneficiary;
• The bad debts of the beneficiary;
• Fines imposed on the beneficiary;
• Penalties imposed on the beneficiary;
• Any expenses related to ceremonies, parties, and celebrations;
• The purchase of any goods restricted and prohibited under USAID regulations such as alcoholic beverages;
• The purchase of surveillance equipment, military equipment or arms whether new or surplus, police or law enforcement equipment, abortion equipment and services, weather modification equipment, luxury goods and gambling equipment;
• The purchase of goods which have their origin in Cuba, Syria, North Korea, Myanmar, Iran and other countries or suppliers as may be identified by USAID’s consolidated list of debarred, suspended or ineligible sub-contractors especially those engaged in support of terrorist activities (these must be reported); and
• Any expenses related to purchases or activities, which are illegal under Jordanian or U.S. law.

Allowable costs vary from grant agreement to grant agreement. They depend on the undertakings you make in your Business Plan, if you are required to submit one, on the specifics of your grant agreement and on AID regulations. However, the following costs are generally allowable in the following grant types:

• Small Grants & Mini-Grants: Allowable costs include, but are not limited to, the cost of seminars, workshops, conferences and other events, technical assistance services, training courses, including trainers, course materials, site costs, etc. Such costs generally do not include international airfares or indirect costs.
• Program Development Grants: Allowable costs include, but are not limited to, the cost of personnel, technical assistance, travel and transportation, equipment, training, office supplies, rent and utilities, telephone, fax, internet connection, postage, educational materials, bank charges, legal and audit fees, insurance, and maintenance related to premises and equipment.
• FOG Grants: No specific costs are assigned to FOG grants. FOG grants are awarded to achieve specific benchmarks.