Investment in Forests and Sustainable Land Use Phase II (IFSLU2) Programme - Component 1 and 2

Foreign, Commonwealth and Development Office (FCDO) is planning to publish a tender opportunity for the delivery of contract for Component 1 and 2 of Investments in Forests and Sustainable Land Use - Phase 2 (IFSLU2) Programme at the end of July 2024.

Investments in Forests and Sustainable Land Use - Phase 2 (IFSLU2) is an umbrella International Climate Finance (ICF) programme of the FCDO. IFSLU2 is managed by the FCDO's Energy, Climate and Environment Directorate (ECED). Under the IFSLU2 umbrella programme there are five Components. The opportunity for Component 3 of IFSLU2 - Congo Basin is currently advertised in Find a Tender Services (FTS): https://www.find-tender.service.gov.uk/Notice/022329-2024 and Contracts Finder: https://www.contractsfinder.service.gov.uk/Notice/4ddfedd8-e37f-4def-913a-740fe2848a9d.

A separate procurement for Component 1: Business incubation, pipeline development and business enabling conditions and Component 2: Enhanced support for smallholder farmers of IFSLU2 Programme will be advertised through the Opportunity Notice and Contract Notice, which will be published in the Contract Finder and FTS respectively. The notices will alert the market to this opportunity and provide the instruction on how to access the tender documents.

FCDO will be looking for a supplier to undertake the management and implementation of the Component 1 and 2 of Investments in Forests and Sustainable Land Use - Phase 2 (IFSLU2) Programme. The expected start date of the contract is December 2024, the maximum Contract value is up to £134 million, with an option to increase its total value and duration based on continued need. The Contract value is exclusive of UK VAT but inclusive of all applicable local taxes.

The Contract length and value increase options are as follows:

• up to 60 months and value of up to £134 million - minus the amount already spent at Contract award point on the three FCDO grants under the Component 2, the management of which will be transferred to this Contract.
• Extension Option: up to an additional 60 months and a value of up to a maximum of £239 million.
• Scale up Option (value extension only): up to £100 million over the life of the Contract (including the Extension Period).

Please note that the tender documents will be published in the FCDO's eTendering Portal https://fcdo.bravosolution.co.uk. You are encouraged to register in advance in case of any technical issues with the Portal. If you have any technical issues, please call eTendering helpdesk: +44 203 868 2859 or use the "Call me Back!" functionality (recommended, especially if contacting from outside of UK).

Additional information: The intended behavioural Intermediate Outcomes from the Contract's interventions are:

• Supply-side: Producers including businesses, social enterprises, community organisations, smallholders, and landholders adopt sustainable practices as part of profitable, inclusive and replicable business models and bankable investment opportunities;
• Demand-side: Governments, companies and value chain actors adopt mandatory or voluntary sustainable and equitable sourcing practices that incentivise sustainable practices; and aggregate and empower smallholders; and
• Enabling Conditions: Governments, companies and other actors foster positive enabling environments, reforms, standards, accessible market infrastructure and governance arrangements conducive for crowding-in investment, addressing smallholder development needs.

Over the longer-term and through interactions with other IFLSU2 Components, the Intermediate Outcomes will lead to the following systemic Outcomes:

• forest landscapes transformed into forest positive and climate-resilient systems that meet local development needs;
• increased private investment in sustainable forestry and land use;
• increased support and share of sustainable investment reaching smallholders;
• increased global market for deforestation-free agricultural commodities; and
• complementary policy actions implemented by consumer and producer countries.

These systemic Outcomes will lead to the following Impacts:

• forests and ecosystems protected and restored in forest landscapes and across relevant industries and value chains;
• finance mobilised in support of the Sustainable Development Goals (SDGs) and forest country Nationally-Determined Contribution (NDC) and National Adaptation Plan (NAP) implementation;
• jobs created, incomes increased, capacity strengthened and enhanced ability to adapt to the impacts of climate change (both rapid shocks and slow onset stressors) in rural economies of supported countries; and
• transformational change, aligning the land use sector with the SDGs and the Paris Agreement Targets.