---
title: "Investment in Forests and Sustainable Land Use Phase II (IFSLU2) Programme - Component 1 and 2"
ocid: "ocds-b5fd17-7ea49afc-929c-46c8-977d-8a1208a487f6"
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source: "Contracts Finder"
current_stage: "Award"
buyer: "FOREIGN COMMONWEALTH AND DEVELOPMENT OFFICE"
published: "2025-02-26"
---

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

Buyer: FOREIGN COMMONWEALTH AND DEVELOPMENT OFFICE  
Current stage: Award  
OCID: ocds-b5fd17-7ea49afc-929c-46c8-977d-8a1208a487f6

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## Summary

The Foreign, Commonwealth and Development Office (FCDO) has awarded a contract to Palladium International Ltd for the implementation of Component 1 and 2 of the Investments in Forests and Sustainable Land Use Phase II (IFSLU2) Programme. The total contract value is up to £129,744,000, exclusive of UK VAT, with a potential increase up to £469 million if extended. The contract period begins on 1st February 2025 and ends on 31st January 2030, with an option to extend up to another 60 months. This programme focuses on the provision of technical assistance for business incubation, pipeline development, and enhanced support for smallholder farmers to adopt sustainable practices.

This tender offers significant opportunities for businesses involved in sustainable agriculture, forestry, and land use. Companies capable of providing technical assistance, grant management, and support for smallholder farmers will find this a proactive channel for business growth. The programme, which includes establishing regional offices in East Africa, West Africa, Central Africa, Southeast Asia, and Latin America, is particularly suited for SMEs and other organisations focused on environmental and developmental outcomes. This initiative will foster sustainable investment, create jobs, strengthen capacities, and help businesses align with global sustainable development and climate targets, representing a valuable prospect for business expansion in these regions.

## Notice

The United Kingdom's Foreign, Commonwealth and Development Office ("FCDO") has awarded the Contract for delivery of Component 1 and 2 of Investments in Forests and Sustainable Land Use - Phase 2 (IFSLU2) Programme to Palladium International Ltd. Investments in Forests and Sustainable Land Use - Phase 2 (IFSLU2) is an umbrella International Climate Finance (ICF) programme consisting of 5 components. IFSLU2 is managed by the FCDO's Energy, Climate and Environment Directorate (ECED). This Contract is for the IFSLU2 Programme's Component 1: Business Incubation, Pipeline Development and Business Enabling Conditions and Component 2: Enhanced Support for Smallholder Farmers. The Supplier must undertake the management and implementation of the Component 1 and 2 of Investments in Forests and Sustainable Land Use - Phase 2 (IFSLU2) Programme. Component 1 covers the provision of Technical Assistance Facility (TAF) and Component 2 requires the Supplier to: (i) monitor, report and manage grant agreements (agreed by FCDO); (ii) source and agree additional grants to build a portfolio of grant-funded projects providing support to smallholders at scale; and (iii) support FCDO to identify and design potential future activities to scale smallholder support. The start date of the Contract is 1st February 2025, the Contract value is up to PS129,744,000, 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 end of the Contract is 31st January 2030. The Contract has an Extension Option for up to a further 60 months and an increase in additional value of up to a maximum of PS239 million. There is a Scale up Option (value extension only) up to an additional PS100 million over the life of the Contract (including the Extension Period). Therefore, the Contract value may be increased to an overall total of PS469 million and the Contract may run until 2035, if extended. Additional information: The Supplier must undertake the management and implementation of the Component 1 and 2 of Investments in Forests and Sustainable Land Use - Phase 2 (IFSLU2) Programme. The intended behavioural Intermediate Outcomes from the FSLU2 C1 and C2 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 IFSLU2 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. The final list of countries, where the Contract will be implemented (place of performance) will be agreed by FCDO and the Supplier during Contract Inception Phase based on the Supplier's analysis of opportunities to deliver impact (across countries, regions and value chains) and ODA/development impact considerations. However, the following regions must be prioritised: East Africa, West Africa, Central Africa, Southeast Asia and Latin America. The Supplier must establish programme offices in each of these regions to deliver the programme.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/b25c52ed-b0d3-48b5-baea-08a4f9b4bbf2 |
| Notice type | Award Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Not Specified |
| Procurement method details | Other - Light Touch Regime (LTR) |
| Tender suitability | SME |
| Awardee scale | Large |
| All stages | Planning, Tender, Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 26 Feb 2025 |
| Submission deadline | 4 Oct 2024 |
| Future notice date | 18 Jul 2024 |
| Award date | 29 Jan 2025 |
| Contract period | 1 Feb 2025 - 31 Jan 2030 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £129,744,000 |
| Lots value | Not specified |
| Awards value | £129,744,000 |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | FOREIGN COMMONWEALTH AND DEVELOPMENT OFFICE |
| Locality | LONDON |
| Post town | South West London |
| Postcode | SW1A 2AH |
| Country | England |
| ITL 1 | TLI London |
| ITL 2 | TLI3 Inner London - West |
| ITL 3 | TLI35 Westminster and City of London |
| Local authority | Westminster |
| Electoral ward | St James's |
| Westminster constituency | Cities of London and Westminster |
| Delivery location | TLI London |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | PALLADIUM INTERNATIONAL |

## CPV Codes

### Divisions

- 75 - Administration, defence and social security services

### Codes

- 75200000 - Provision of services to the community
- 75211200 - Foreign economic-aid-related services

## Release History

- 26 Feb 2025 at 23:55 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/b25c52ed-b0d3-48b5-baea-08a4f9b4bbf2
- 30 Jul 2024 at 23:09 - Tender - Tender Notice - https://www.contractsfinder.service.gov.uk/Notice/20e76f3b-0f04-401e-8b1d-018c9b4f73fe
- 18 Jul 2024 at 16:37 - Planning - Planned Procurement Notice - https://www.contractsfinder.service.gov.uk/Notice/179f010c-b4d6-4dcf-86ad-3993c7081f32
- 18 Jul 2024 at 16:35 - Planning - Planned Procurement Notice - https://www.contractsfinder.service.gov.uk/Notice/179f010c-b4d6-4dcf-86ad-3993c7081f32
- 23 Jan 2024 at 12:51 - Planning - Market Engagement Notice - https://www.contractsfinder.service.gov.uk/Notice/6be5c5f3-d851-47f6-bead-42db2876f278

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/b25c52ed-b0d3-48b5-baea-08a4f9b4bbf2
  26th February 2025 - Awarded contract notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/20e76f3b-0f04-401e-8b1d-018c9b4f73fe
  30th July 2024 - Opportunity notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/179f010c-b4d6-4dcf-86ad-3993c7081f32
  18th July 2024 - Future opportunity notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/6be5c5f3-d851-47f6-bead-42db2876f278
  23rd January 2024 - Early engagement notice on Contracts Finder
- https://forms.office.com/e/2dc23HdUDy
  Early Market Engagement Event
- https://fcdo.bravosolution.co.uk
  FCDO's eTendering Portal
- https://www.contractsfinder.service.gov.uk/Notice/4ddfedd8-e37f-4def-913a-740fe2848a9d
  Link to another Opportunity under IFSLU 2 Programme Component 3 - Congo Basin
- https://www.contractsfinder.service.gov.uk/Notice/Attachment/9608d0c5-22a3-4616-9b0c-0d002f9a82de
  Copy of the Contract - redacted

## Notice URLs

- http://www.gov.uk/fcdo/

## Provenance

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