ZATP II conducted the Due Diligence exercise for the first cohort of business plans for 91 Producer Organizations recommended by the Independent Evaluation Panels (IEPs) for possible financing.
The Due Diligence was recommended by the IEPs to assess the reality on the ground for the 91 shortlisted Producer Organizations for Matching Grants particularly on the 40% matching contributions (Cash and Assets pledged in kind).
The Due Diligence was conducted by the Project Implementation Unit (PIU) staff from 7th to 11th September, 2026 in Eastern, Southern, Copperbelt, Western, Central, Lusaka and Copperbelt Provinces of Zambia.
The Producer Organizations shortlisted were assessed on Good Governance Systems, Financial Management and Procurement Systems, and their readiness for financing in terms of their matching contribution(Cash and Assets in kind).
Assessments on Good Governance involved verification of existence of management systems (Board and Management) for the Producer Organizations. The existence of Minutes for Annual General Meetings and Board Meetings were some of the indicators used to assess Good Governance.
Financial Management and Procurement Systems verification involved inspection of books of accounts (financial records, bank balances, invoices, etc) and Procurement Systems (Purchase Requisitions, Invoices, Receipt Books, Delivery/Goods Received Notes(GRN)).
Verification on the 40% Matching Grant contributions focused on cash available in the bank accounts (20%) and the assets pledged as contribution in kind (20%).
Verification of assets pledged in kind and evaluation of their true value was done by the Asset Evaluators. The PIU Staff were accompanied by Qualified Asset Evaluators from the District Councils in the provinces.
The Assets pledged in-kind for Matching Grant contributions such as Land, Buildings, Sheds, Equipment, etc were assessed in terms of value by the Asset Evaluators.
Apart from Good Governance, Financial Management and Procurement Systems, Asset Evaluation, the Due Diligence also assessed the potential environmental and social risks envisaged from sub-projects by beneficiaries to be financed by the Project.
Business Proposals by Producer Organizations with plans involving construction of infrastructure were requested to produce Building Plan Designs and Bills of Quantities done by a qualified Architects.
