How to set up a new Fund

 

SFIDA is following the below instruction to set up a (non-governmental) fund supporting the agriculture development, which includes several chapters.

Chapter One – Principles

Article 1): Referring to Article 12, the Law on the Establishment of the Ministry of Agriculture Jahad and paragraph 2 of Resolution No. 33515 / T 25321 dated 16 March 2004 of the Ministers Cabinet, the instructions on how to establish Funds to support the development of the agricultural sector are approved as follows.

Article 2): The following abbreviations are used:

A: SFIDA – Supporting Fund of Investment Development in Agriculture Parent Company

B: Fund – Agricultural Development Support Funds (Non-Governmental)

C- Deputy – Concerned deputies of the Ministry of Agriculture Jahad of the provinces

D: Provincial Organization – Provincial Agricultural Jahad Organizations under Ministry of Agriculture Jahad

E: Applicants – Agricultural producers who are applying for establishing Fund

F: SFIDA share – the amount which SFIDA shares in non-governmental FundsG: Commission – A Commission to perusal and evaluate proposals for establishing a Fund

Chapter Two – Review Authority

Article 3): A commission composed of the following members shall be set up to review and evaluate the proposals for establishing Funds.

A: CEO of SFIDA

B: A member from the board of SFIDA selected by the same board

C: Either concerned deputy or head of the provincial organization, according to the case

Article 4): The most important duties of the Commission are as follows:

       A: Review of feasibility studies submitted by applicants and reject or accept them

      B: Prioritize the accepted proposals and requesting the applicants to prepare technical-financial-economic justification plan.

      C: Review, evaluation and approval of justification plans

      D: Decide the share of SFIDA in new Fund

      E: Assigning the representative of the SFIDA in the founding board and the board of directors of the Funds

Note 1) Norms and criteria for accepting the plan, framework, outlines and titles of the topics that should be considered in the feasibility study as well as in the preparation of the justification plan and presented in the justification report, have to be provided to the provincial organizations and concerned deputies by specific forms. 

Chapter Three – Admission System

Article 5): when the required Fund details identified and determined, each of the applicants prepares a feasibility study plan and submits it to either the provincial organization or relevant deputy to send to SFIDA.

Article 6):Received report on the feasibility studies for the establishing the Funds will be presented in the meetings of the commission in the presence of the applicants and the reasons of the applicants will be heard in the order of the time of arrival.

Article 7): Subsequently, the Commission decides on determining the priority and initial acceptance or non-acceptance, and the opinion of the Commission is communicated to the applicants in writing by SFIDA. Note 1): If the Commission has conditionally accepted the proposed plan, the point of view of the Commission will be notified to the applicants in detail in order to be included in the new justification plan.

Article 8): Applicants prepare the justification plan in accordance with the specific rules and forms and send the study report along with its documents to SFIDA through the relevant deputy or the provincial organization.

      Note 1): If SFIDA does not consider the received report satisfactory, and then it will inform the applicant about its views and suggestions for modifying and completion of the report through either the deputy or the provincial organization.

Article 9): Afterward reviewing the modified justification report, the Commission shall send the final opinion on accepting or rejecting the application along with the reasons in detail and in writing to the Board of Directors.

Article 10): The Managing Director, SFIDA shall place the explanatory report and the written comment of the Commission on the agenda of the Board of Directors, and the Board of Directors shall decide on establishment of the proposed fund.

Chapter 4 – Execution and Establishment

Article 11): After receiving the license to establish the fund from SFIDA, the founding board will proceed with the legal steps of establishing the fund in accordance with the commercial law and other relevant laws and regulations.

Article 12): The founding board acts to invite the participation of other producers. For proper initiation, the founding board will use the coordination, cooperation and assistance of the deputies and the provincial organization.