---
title: "Investment in Forests and Sustainable Land Use Phase II (IFSLU2) Programme - Component 1 and 2"
ocid: "ocds-h6vhtk-047ea4"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-047ea4"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-047ea4.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-047ea4.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "FOREIGN COMMONWEALTH AND DEVELOPMENT OFFICE (FCDO)"
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 (FCDO)  
Current stage: Award  
OCID: ocds-h6vhtk-047ea4

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## Summary

The Foreign, Commonwealth and Development Office (FCDO) has awarded a contract for the Investment in Forests and Sustainable Land Use Phase II (IFSLU2) Programme - Component 1 and 2 to Palladium International Ltd. Categorised under foreign economic-aid-related services, this contract is part of an international climate finance programme managed by the FCDO's Energy, Climate and Environment Directorate (ECED). The contract, which commenced on 1st February 2025, has a value of up to £129,744,000 and can potentially be extended up to £469 million with a duration until 2035. FCDO requires Palladium to set up offices in prioritised regions including East Africa, West Africa, Central Africa, Southeast Asia, and Latin America to manage the programme.

This contract offers significant opportunities for businesses involved in sustainable practices, particularly those in forestry and land use sectors, social enterprises, and smallholder support. Companies specialising in sustainable and equitable resource management, market infrastructure, and investment facilitation are well-suited for this tender. The contract's focus on creating business incubation, enhancing support for smallholder farmers, and sustainable investment environments makes it an ideal growth platform for service providers in environmental sustainability, agricultural development, and socio-economic reform sectors. Furthermore, it encourages collaboration with governments, companies, and community organisations towards achieving the Sustainable Development Goals and climate resilience objectives.

## 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 C1 and C2) 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. 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.

### Lot Information

Lot 1

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. 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. Please note that the list of the countries selected in the place of performance section is not prescriptive. The final list of countries will be agreed by FCDO and the Supplier during Contract Inception 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 will be required to establish programme offices in each of these regions to deliver the programme.

Options: 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. * Extension Option: up to an additional 60 months and a value of up to a maximum of PS239 million. * Scale up Option (value extension only): up to PS100 million over the life of the Contract (including the Extension Period).

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/007348-2025 |
| Notice type | Planning Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Open |
| Procurement method details | Open procedure |
| Tender suitability | Not specified |
| Awardee scale | Large |
| All stages | Planning, Tender, Award |

## Dates

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

## Values

| Field | Value |
| --- | --- |
| Tender value | £134,000,000 |
| Lots value | £134,000,000 |
| Awards value | Not specified |
| Contracts value | £129,744,000 |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Cancelled |
| Awards status | Active |
| Contracts status | Active |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | FOREIGN COMMONWEALTH AND DEVELOPMENT OFFICE (FCDO) |
| Additional buyers | 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 | TLC North East (England), TLD North West (England), TLF East Midlands (England), TLG West Midlands (England), TLH East (England), TLJ South East (England), TLK South West (England), TLM Scotland |

## 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 23:21 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/007348-2025
- 30 Jul 2024 at 22:54 - Tender - Tender Notice - https://www.find-tender.service.gov.uk/Notice/023857-2024
- 18 Jul 2024 at 17:03 - Planning - Planning Notice - https://www.find-tender.service.gov.uk/Notice/022375-2024

## Notice URLs

- https://fcdo.bravosolution.co.uk
- https://fcdo.bravosolution.co.uk/

## Provenance

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