Terra Bella Colombia Fund Technical Assistance Facility

Purpose of Facility

The Terra Bella Colombia Technical Assistance Facility was created to support projects seeking investments from the Terra Bella Colombia Fund. The Fund is a private equity vehicle that makes investments in expanding smallholder agriculture value chains that are linked to reducing deforestation and degradation.

Projects seeking investments from the Fund must meet the Fund’s investment readiness requirements. The Terra Bella Colombia Technical Assistance Facility provides grants to projects which require assistance in order to satisfy the Fund’s investment criteria.

The technical assistance facility is managed by Terra Global, the leader in forest and agriculture greenhouse gas emissions analytics, advice and finance. Terra Global has a multi-disciplinary team of professionals with extensive experience in agriculture and non-timber forest products and is a private sector leader in the implementation of market-based solutions which deliver value to smallholders and communities.

The technical assistance facility is funded by USAID/Colombia and provides grants between USD $50,000 to USD $250,000 per project over 6-24 months to build investment readiness to access investments from the Terra Bella Colombia Fund. 

Eligibility

Projects that seek to apply for technical assistance are required to demonstrate the following:

  • The smallholder/community groups managing the projects seek to apply to receive a future investment from the Terra Bella Colombia Fund and understand that this type of investment is reimbursable (must be paid back) with a return for the Fund
  • Income is generated from multiple revenue streams (including emission reductions), high-value crops, non-timber forest products, sustainable timber, and emission reductions
  • That incremental revenue can be generated through investments in improved production for the following crops/activities that are in and around forest areas:

High Priority

Will be Considered

Coffee in Shade

Natural Rubber in Forest Systems

Cacao in Shade

Zero Deforestation/SPS Milk and Beef

Acai

Ecotourism

Other High Value Crops/NTFP for Local or Export Sale

Sustainable Timber in Natural Forests

Tree Nuts

 

Emission Reductions/Removals

 

 

  • That they are seeking to receive an investment from the Terra Bella Colombia Fund after completion of the technical assistance of $1-4 million per project and that the project will break-even in 3-5 years and generate returns of 15-30% per annum.
  • They can demonstrate ability to be investment ready within 24 months, complying with investment readiness requirements. 
  • While other geographies in Colombia can be considered, the following are priorities Pacifico (Chocó, Valle del Cauca), Andeano (Antioquia, Santander, Huila), Orinoquía (Meta, Vichada) and Amazon (Caquetá, Guaviare, Guainía)
  • Projects must be well beyond the design and early implementation phases, and grants will seek to leverage USAID’s and other donors or government’s prior investments in Colombia where possible.

Ineligible Projects

The technical assistance facility cannot support the following types of projects:

  • Plantations or other monoculture systems
  • Lands where tenure is not (or cannot be) formally recognized
  • Commercial type agribusinesses (not managed by smallholder/community groups)
  • Projects that are too small justify at least $1 million investment

 

 

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