CC+ Cluster and Value Chain Call

The cluster/value chain projects will be evaluated according to the following criteria:

1. Revenue generation (sales & exports) and/or job creation (~25%) – the extent to which the cluster/value chain project will generate increased sales outside the country, within the country indirectly throughout the value chain, or through a clear reduction of imports over time; and the extent to which the cluster project will create new jobs, including new green jobs/ jobs requiring new green skills.
2. Mainstreaming climate for competitiveness (~15%) – the extent to which the cluster/value chain project aligns climate action with economic objectives, such as boosting productivity, accessing new markets, or enhancing supply chain efficiency. Priority will be given to clusters and value chains that demonstrate a clear commitment to reducing emissions, improving climate resilience, and creating innovative green goods or services. This includes the adoption of climate-smart solutions, such as decarbonization strategies, resource efficiency measures, circular economy principles, adoption of nature-based solutions, biodiversity preservation, etc.
3. Gender, Diversity and Inclusion (~15%) – the extent to which the cluster/value chain considers activities that benefit diverse and vulnerable groups, including those severely impacted by climate change, and/or the extent to which the cluster project will create new jobs for women and other vulnerable or marginalised groups.
4. Project feasibility (~25%) – the extent to which (i) there is clear evidence of growing global demand for the goods/services offered by the firms in the cluster/value chain; (ii) the firms involved have a track record of success to obtain a share of the global market demand profitably; (iii) the cluster/value chain has sufficient resources (human, financial, technological) to absorb technical assistance and sustain the required changes; (iv) important risks have been properly assessed, and measures are in place to mitigate them; (v) there is clear commitment from the private firms involved and support from relevant institutions.
5. Sustainability and Scalability (~20%) – the likelihood of sustaining and scaling the results achieved once the CC+ project ends. Consider aspects such as financial sustainability, capacity-building, partnerships, scaling successful interventions to new markets, and leveraging existing or new resources.

What Are The Awards?

1. Technical Assistance
   • Shortlisted cluster/value chain projects will receive assistance from a professional consultant/firm to further develop the submitted project proposal into a Cluster Development Plan (CDP), where the proposed cluster initiative is validated, and the project is elaborated in further detail as required for CC+/IDB’s project approval process.
2.  Grant Awards
   • Non-reimbursable technical assistance of up to US$300,000 (up to 80% of the total proposed project budget) will be provided for up to 6 projects subject to the below Award Conditions. The cluster manager is also responsible to collect and report data for the donors. The selected cluster/value chain will be expected to commit the remaining 20% of the total proposed project budget, half in cash and half in kind. Note, at least 20% of CC+’s funding will also cover the hiring of a cluster manager with the specific function of coordinating the implementation of activities planned as a result of a cluster initiative.

Award Conditions

Funds will be awarded to shortlisted cluster/value chain projects, subject to the following conditions:

• CDP is recommended for funding by an independent Investment Panel (IP).
• Lead entity meets all CC+/IDB integrity and due diligence requirements.
• Legal agreement to use CC+/IDB funding and counterpart resources towards the implementation of the selected model/project has been signed by both parties. Note that the IP and CC+ may stipulate additional requirements, prior to disbursement of funds.

1. What types of projects is CC+ looking to fund? 

Compete Caribbean + (CC+) is looking for potential or existing clusters and value chains with high potential for growth and/or that employ large numbers of people, that are seeking to increase their competitiveness while embedding green innovation, climate resilience, and environmental sustainability into their goods, services, and operations, through collaboration and collective action.

2. Who can participate in this Call for Proposals?

Clusters must include at least 3 private sector firms formally registered in one of the 13 eligible Caribbean countries. Other eligible cluster/value chain members are business support organisations (BSOs), industry associations, trade and investment authorities, regional association organisations, small business development centers, NGOs, and universities and academic institutions. Note all participating cluster/value chain members must be formally registered/incorporated entities.

3. What are the 13 eligible Caribbean countries?

Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Suriname, St. Lucia, St. Kitts and Nevis, and St. Vincent and the Grenadines, and Trinidad & Tobago

4. Can non-Caribbean entities submit a proposal and/or participate in a cluster/value chain?

Non-Caribbean firms and entities can participate in the cluster/value chain project provided that a minimum of 3 Caribbean private sector firms are included in the cluster/value chain.

5. Can women-led clusters or value chains apply?

Yes, CC+ strongly encourages proposals from clusters and value chains led by women-owned firms or clusters and value chains benefiting diverse and vulnerable groups.

6. What is the deadline for submitting proposals?

The deadline for submitting proposals is Friday, February 14th, 2025. Note, late applications will not be considered.

7. Do proposals have to include climate and resilience elements?

The aim of this call for proposals is to amplify the private sector’s role in fostering environmental sustainability, allowing for the adoption of innovations that reduce carbon emissions, improve energy efficiency, and enhance resilience to climate impacts while spreading costs across multiple firms.  As such, CC+ will evaluate the extent to which the cluster/value chain project aligns climate action with economic objectives. Priority will be given to clusters and value chains that demonstrate a clear commitment to reducing emissions, improving climate resilience, and creating innovative green goods or services.

8. What are the funding amounts and conditions?  

Shortlisted clusters may receive non-reimbursable grants of up to US$300,000, covering 80% of the project budget. Clusters must contribute the remaining 20% (half in cash and half in kind) and cover administrative costs. Note, at least 20% of CC+’s funding will cover the hiring of a mandatory cluster manager.

9. What evaluation criteria will be used to assess proposals?

Proposals will be evaluated based on:  

• Revenue generation and job creation (25%)  
• Mainstreaming climate for competitiveness (15%)  
• Gender, diversity, and inclusion (15%) 
• Project feasibility (25%)  
• Sustainability and scalability (20%) 

10. How can clusters submit their proposals?

The process includes two steps:  

• Step 1: Complete the Application Form and mandatory annexes: Proposed Activities & Budget (Annex I) Cluster Member Information and Baseline Data (Annex II), Commitment Letter (Annex III), and Proof of Legal Status (Annex IV).  
• Step 2: Upload all documents online via the submission portal by the specified deadline (Friday, February 14th, 2025).

11. What kind of support will shortlisted clusters receive?  

Shortlisted projects will receive technical assistance to refine their proposals into a Cluster Development Plan (CDP) (usually 3 months). Once completed, each shortlisted cluster will be invited to a pitch session to present their CDP to an independent Investment Panel. The Investment Panel will then evaluate each CDP and recommend which should be funded.

12. What is the execution timeframe of a cluster/value chain project?

Selected clusters will sign a legal agreement with the IDB and proceed to project implementation, which is expected to begin in Q3 2025 (approximate and subject to revision). Execution will last up to 30 months, with ongoing reporting and oversight to ensure compliance and impact. 

13. What does a CC+ technical assistance grant cover?

CC+s funding covers payment for services, such as training, market research, process reengineering and research and development.

14. What kinds of activities/expenditures cannot be financed by CC+/IDB?

CC+s funding cannot be used to purchase goods or equipment.

15. Who will manage the grant resources?

As all cluster/value chain projects will be bank-executed, grant resources will be managed by CC+/IDB and will not be directly transferred to cluster members. Instead, funds will be managed by the IDB for the contracting of consulting services by individuals and firms based on the needs of the project and against an agreed-upon procurement plan, ensuring transparency, efficiency, and compliance with established guidelines.

16. What are valid contributions of counterpart resources?

Valid contributions of counterpart resources represent operating expenses from any of the cluster members that directly contribute to the goals of the project. These should demonstrate additionality, meaning they support activities that are either new, would not have been undertaken, or would not have been completed as quickly without CC+ support. Examples include staff time, equipment, facilities, or other operational costs directly tied to the implementation of the project.

17. Do the counterpart resources need to be handed over to CC+/IDB?

No, the counterpart resources do not need to be handed over to CC+/IDB. These resources can be contributed by more than one cluster member and will only need to be tracked to ensure accountability and alignment with the project’s goals.

18. What is a Cluster Development Plan?

Given the importance of consensus building among private sector firms in designing a successful cluster initiative, CC+ supports the drafting of Cluster Development Plans for shortlisted clusters which include: (a) strategy and rationale to improve competitiveness and accelerate growth of the cluster/value chain; (b) detailed workplan; (c) budget with funding sources; (d) monitoring and evaluation framework, including collection of baseline data; (e) partnership agreement among the cluster members which can allow the project to move smoothly into implementation. This CDP is co-designed over a short period of +3 months with the stakeholders involved to obtain buy-in and commitment.

19. Will cluster members be responsible for development of the Cluster Development Plan?

CC+ will hire individual consultants/consulting firms with expertise in cluster development methodologies and sector-specific knowledge to work closely with shortlisted clusters to develop the CDP. This includes reaching consensus on a common vision, objectives, priorities, as well as detailed activities, roles and responsibilities, budget, funding sources, timeline and monitoring and evaluation system.

20. What does project execution mean?

Project execution refers to the implementation of the Cluster Development Plan (CDP) over a 30-month period. This includes carrying out the activities and strategies outlined in the CDP, and spearheaded by a Cluster Manager, to achieve the project’s objectives, foster collaboration among cluster members, and deliver measurable results.

21. What is the role of the cluster manager?

The role of the cluster manager will be coordinating the implementation of activities planned as a result of a cluster initiative. The cluster manager is also responsible to collect and report data for the donors. Experience has shown that this role is critical because effective management ensures that the cluster operates cohesively, achieves its objectives, and maintains strong communication with stakeholders. A dedicated cluster manager also fosters collaboration among members, drives innovation, and helps sustain the cluster’s long-term impact.

22. Who pays for the cluster manager and is this role mandatory?

All cluster/value chain projects will have a mandatory cluster manager that will be hired and paid for as part of CC+’s contribution to these projects.

1. Download, complete, and upload these required documents via the application form:
   • Annex I and II: Proposed Cluster Activities & Budget (Annex I) and Cluster Member Information & Baseline Data (Annex II)
   • Annex III: Letter of Commitment
   • Annex IV: Evidence of legal status of the lead entity
   • Optional: Short video (max. 5 mins) or presentation showcasing your cluster

CLUSTER: A geographic concentration of interconnected companies, suppliers, service providers and associated institutions (e.g. universities, standards agencies, trade associations) in an industry or field that compete but also cooperate to increase sales and global market share. For the purpose of this call, the clusters under consideration must comprise of at least 3 private sector firms collaborating to increase competitiveness and mainstream climate action on the regional or international market, with some support from other business, educational, research or government agencies.

CLUSTER INITIATIVE: an organized effort to increase the growth and competitiveness of a cluster, involving cluster firms, government, educational/training institutions and/or the research community.

CLUSTER MANAGER: a professional that is hired with the specific function of coordinating the implementation of activities planned as a result of a cluster initiative. If a cluster initiative is funded by CC+, the cluster manager is also responsible to collect and report data for the donors.

CLUSTER DEVELOPMENT PLAN (CDP): a comprehensive document prepared over a +3-month period in consultation with diverse stakeholders involving primary data collection and secondary research to analyze the global value chain and strategic options/trade-offs involved. A data-driven approach is used to mobilize private firms and supporting organisations to develop a common vision for growth and reach consensus on specific goals and priorities to implement in a cluster initiative.

CLIMATE MITIGATION: actions aimed at reducing or preventing the emission of greenhouse gases (GHGs) to limit the magnitude of future climate change. This includes transitioning to renewable energy, improving energy efficiency, and enhancing carbon sinks like forests.

CLIMATE ADAPTATION: efforts to adjust systems, practices, and infrastructure to minimize harm or capitalize on opportunities caused by the impacts of climate change. Examples include building flood defenses, developing drought-resistant crops, and enhancing community resilience.

CIRCULAR ECONOMY: an economic model focused on designing out waste and pollution, keeping products and materials in use, and regenerating natural systems. It contrasts with the traditional linear “take-make-dispose” economy, promoting resource reuse and sustainability.

DECARBONIZATION: the process of reducing carbon dioxide emissions through changes in energy production, industrial processes, and consumption patterns, often by transitioning to low-carbon energy sources such as solar, wind, and hydropower.

RESOURCE EFFICIENCY: The practice of using natural resources like water, energy, and raw materials in the most sustainable and efficient way, to minimize environmental impact while maximizing economic and social benefits.

NATURE-BASED SOLUTIONS: strategies that leverage natural processes and ecosystems to address societal challenges like climate change, disaster risk, and water management. Examples include restoring wetlands to reduce flooding or planting urban forests for cooling and air quality improvement.

BIODIVERSITY PRESERVATION: the protection, conservation, and sustainable management of biological diversity, including ecosystems, species, and genetic resources, to ensure their continued availability and the ecosystem services they provide.

GREEN GOODS AND SERVICES: Products and activities that are designed to minimize environmental impacts, conserve natural resources, and promote sustainability. These typically fall into the following categories: energy and resource efficiency, renewable energy, waste reduction and management, sustainable agriculture and food, water management, ecosystem and biodiversity services, sustainable construction and green infrastructure.

Past CCPF-Supported Clusters and Value Chains

• Jamaica Conch Cluster
  • Queen Conch fishery, one of the country’s most important fisheries for employment and socio-economic value, became the first conch fishery in the world to achieve Marine Stewardship Council (MSC) certification, a rigorous and globally recognized standard for sustainable fishing, using fishing methods that reduced unintended catch and maintained biodiversity.
• Guyana Sport Fishing
  • Produced a robust regulatory framework for sustainable management of the Arapaima and Catch and Release activity and trained fishing guides on sustainable catch and release practices. This improved competitiveness and created catch and release of Arapaima fish as a viable ecotourism product.
• Bahamas Sea Coral
  • Created “reef restoration tourism” as a niche tourism experience focus on ecosystem conservation and restoration. Expanded existing coral reef nurseries and created new ones. This increased business revenues while increasing scale of reef restoration.