Territorial Employment Pact 2017 to promote participation in the labour market and and social inclusion of of vulnerable individuals in BALDUSHK Administrative Unit - Tirana Municipality

United Nations Development Programme

Promoting Inclusive Labour Market Solutions in the Western Balkans Project

DRAFT REPORT !1 Abbreviations

ADAD Association for Development of Mountainous Areas in Albania ALMMs Active Labour Market Measures BADS Business Advisory and Development Services CfAs Calls for Applications CfEoI Calls for Expression of Interest DAs Development Agencies DoA Directorate of Agriculture EO Employment Office EP Evaluation Panel GADC Gender Alliance for Development Centre GDP Gross Domestic Product ICLA Institute for Change and Leadership Albania IE International Expert MoU Memorandum of Understanding TA Territorial Audit TEP Territorial Employment Pact ToRs Terms of Reference UNDP United Nations Development Programme VTC Vocational Training Centre

DRAFT REPORT !2 Acknowledgements

This document is the result of the concerted work of many people in the Municipality of Tirana, Baldushk Administrative Unit both representatives of local institutions, civil society organisations and citizens living in the Municipality. All of them have participated in the preparation of this Territorial Employment Pact (TEP) and have provided valuable information on challenges, shared concerns, and prospects for interventions to generate and formalise employment in the community as a means to improve the living conditions in the territory.

Fation Dragoshi, international consultant on local employment promotion and economic development and Manuela Mece, national consultant, prepared the Territorial Audit of Baldushk Administrative Unit and facilitated the consultations among the local actors. The results of this participatory approach are coherently put together and structured in this TEP document.

Special thanks go to the technical working group, which, under the leadership of the Chairman of Baldushk Administrative Unit has engaged with great resolve and commitment in this initiative.

Many people shall be acknowledged for having contributed, in various capacities, to the articulation of this TEP, starting from the Administrator of Baldushk Mr. Ilir Bermeta, representatives of ADAD, ICLA and GADC.

Of course, none of this would have been possible without the facilitation and support of the UNDP Programme and the Project staff.

The implementation of Tirana Municipality - Baldushk Administrative Unit TEP is financed by the Austrian Development Agency in the framework of “Promoting Inclusive Labour Market Solutions in the Western Balkans” Project.

DRAFT REPORT !3 Abbreviations 2 Acknowledgements 3 Introduction 5 Intervention 1: Preparation of the Farmers Register for the territory of Baldushk 11 Intervention 2: Generation and formalisation of employment though upgrading of rural micro-enterprises (Milk Production) 13 Intervention 3: Generation and formalisation of employment though upgrading of rural micro-enterprises (Vegetable Production) 19 Intervention 4: Promotion of employment opportunities for youth and women in the rural tourism and hospitality 24

DRAFT REPORT !4 Introduction

The Territorial Employment Pact (TEP) in the Administrative Unit of Baldushk is an institutional innovation based on “negotiated planning”, where different actors at the local level assume complementary and inter-connected roles and responsibilities in view of employment objectives. The 2017 TEP for the Administrative Unit of Baldushk involves over ten local and national partners. The 2017 TEP is a first generation TEP for this territory. It builds on the outcomes and lessons learnt from the implementation of other TEPs in other municipalities and regions (qarks) of Albania supported by UNDP.

The implementation of the 2017 TEP (4 Interventions) costs $….. Municipality of Tirana UNDP co-finance the implementation of the interventions. The TEP is designed in the framework of the project “Promoting Inclusive Labour Market Solutions in the Western Balkans”. It will impact over 30 individuals generating over 40 new jobs for those most vulnerable individuals in the community.

* * *

Issues of employment in general and rural employment in particular are vital to the economic wellbeing of any economy, especially for a developing economy such as that of Albania. Not only it contribute to the overall growth but it provides income generated from engagement in legal and productive activities therefore contributes to social advancement of the society.

In this respect, employment should be at the forefront of economic policy since it is directly linked to sustainable development. In the case of Albania, where much progress has been made in terms of economic growth and poverty reduction, the issue of rural employment (although the term is somehow confused while considering the farm and self-employment) still remains unaddressed properly in the policies and measures of Central and local governments.

In fact, rural areas still remain as the poorest areas of the country and in addition agriculture sector demonstrates the lowest productivity although it employs 463,827.4 (IV Trimester of 2016). This figure is a very large portion – 39.7% of the labour force in Albania.

The matter of fact remains that much less is known in terms of economic activity, employment, and rural non-farm activity in the rural areas of Albania. Therefore, it is imperative to consider the issues of employment in the rural areas, as well as identify potential rural non-farm activities that might contribute to increases in employment as well as overall development of these areas in the country. In this respect, cross- cutting themes such as youth employment, SME, green jobs, gender sensitivity, and the like should also be considered in the larger scheme of rural labour market and rural development.

DRAFT REPORT !5 Consideration of youth employment ensures inclusion of a vital part of the labour force who will become the most productive force of tomorrow. Inclusion of youth into the labour force and the labour market increases the utilisation of the available labour force as well as increase economic productivity. In the context of Albania, youth makes up 25% of the population, and Albania is recognised as having a young population. In addition, almost half of youth reside in rural areas thus their livelihoods and prospective in the labour force is linked to these areas.

SME-s and the potential of green jobs should also be given some consideration whenever possible. In regards to the existence and development of SME-s in rural areas special consideration should be given to the employment that they may foster as well as to economic sustainability. Further development of SME-s may also be linked to increased entrepreneurial efforts in the rural areas as well as skill development for the rural labour force. The possibility of green jobs may be viewed under EU-s initiatives to foster these types of jobs especially in the rural areas.

Lastly, all considerations should be done under a gender lens. The issue is twofold: first, if gender is not taken under consideration, there is the risk of exclusion of half of the population and of the labour force. This in return would impact productivity and economic growth. Second, if considerations are gender insensitive, they risk leaving in place the existing gender bias and impeding development once again.

The Administrative Unit of Baldushk faces challenges that are typical of the world of work in rural areas, such as: high incidence of family and informal work; women and youth disproportionally affected by vulnerabilities; poor occupational health and safety conditions in certain industries; limited infrastructure and access to public services; lack of training and productivity improvement opportunities.

More concretely:

• Little or no specialisation of production. The villages Shëmri; Façesh; Kërçukje; Baldushk; Pinet - Sauqet; Verri - Kasalle; Pëllumbas; Shesh; PezëHelmëz; Dobresh; Shpatë - Vrap; Grecë; Gjyslikane; Mustafakoç of Baldushk Administrative unit have around 31,000 fruit and olive trees but only 7,000 are in tree blocks that will allow mechanisation and higher productivity. Olive trees are traditional in Baldushk area and the number is increasing demonstrating the interest of the farmers for this product. There are 66,000 olive trees out of which 43,000 are in olive groves thus creating the ground for some specialisation and opportunities for investments. • Livestock is mostly a subsistence sector as the number of cows or ruminants is too small to create a market offer, whereas the poultry (turkey) is a local trademark that has already created a niche in Tirana. There are around 5,000

DRAFT REPORT !6 turkeys bred annually in Baldushk serving mainly to the Tirana market on end year festivities. • For some villages like Shpat, Gjyslikane, Mustafakoç and Vrap the poor road infrastructure is an impediment of investing in agriculture as the market is insecure for the farmers of these villages. • The proximity with Tirana offers job alternatives for men and youngsters therefore the development of a structured agriculture sector in Baldushk came latter compared to other villages nearby. Women are the main contributors of agriculture works beyond family and child care therefore the area demonstrates high incidence of family and informal work. • The surface of greenhouses is around 5 ha with biggest farmers group in Verri – 15 farmers. The trend is positive although farmers require a more structured market in order to specialise their production. The efforts of young farmers who are investing in greenhouses, fruit blocks and olive groves are rarely matched with any training and productivity improvement opportunities for agriculture and livestock as evidenced by 0 applications for IPARD II or SARED funds.

In light of these specific challenges, the United Nations Development Programme (UNDP) has facilitated the preparation of a Territorial Employment Pact (TEP) for the Baldushk Administrative Unit/Tirana Municipality by supporting the leading role of the local authorities (through the Technical Working Group) and mobilising the support of relevant partners. The TEP strengthens the local co-ordination of ongoing activities, programmes, and interventions that have a human and economic development orientation. It applies an “employment lens” to the initiatives that are currently being carried out in the community in order to bring into focus employment generation and transition to formalisation. The TEP is a partnership of local actors based on the conciliation of interests expressed by the multiple forces of the Municipal local authorities, business associations, civil society organisations, professional bodies, financial institutions, etc.

The TEP establishes 6 inter-connected service lines:

1. Business Advisory and Development Services (BADS) 2. Access to Training Opportunities (A2TO) 3. Access to Crediting Opportunities (A2CO) 4. Subsidised Employment (SE) 5. Organisation/Association Building (AB) 6. Regulatory Environment, including rights

In view of integrating European employment guidelines into Albania’s active employment policies, the preparation of the TEP followed the steps and methodology used for other pacts for employment and development realised in several European regions in the 1990s and early 2000s and recently in Municipalities throughout the Western Balkans countries of Kosovo. In particular:

DRAFT REPORT !7 1. Identification of a relevant territory (Baldushk Administrative Unit / Tirana Municipality);

2. Dialogue and collaboration among the representatives of the local institutions to seek the commitment of those who have the resources and responsibility for the future development of the municipality and its communities;

3. Completion of a participatory strategic audit of the area (for instance through value chain and sectoral analysis) for the determination of challenges, common concerns, and prospects of the different actors who are active in the field of employment;

4. Identification of a planning group/development agency responsible for the strategy (the Technical Working Group supported by a team of specialists from UNDP). The group is also responsible for continuous monitoring and for evaluation;

5. Selection of a set of strategic interventions that are attainable within the relevant time-scale and with measurable impacts in terms of employment generation/formalisation. These are formally laid down in an agreement described as a “territorial employment pact”;

6. Mobilisation of the appropriate capacities and organisations for delivery, according to transparency and efficiency criteria. In this context, national and local authorities, as well as other public entities, undertake those commitments toward simplification and acceleration of procedures; banks and other credit institutions, within the limits of their statutes, assume the commitment to support financial assistance; private sector, trade unions and other civil society organisations carry out their roles as stipulated in the TEP.

One of the comparative advantages of the TEP vis-à-vis formalisation and generation of employment is that it promotes a close partnership between local actors and the local branches of line Ministries, including the Employment Service. The TEP strengthens social cohesion and uses a local partnership to extend de-fact the provision of services to those who are unemployed or in vulnerable working conditions. The TEP recognises that local governments and labour market institutions need to have the capacity to design, monitor, and evaluate youth employment interventions targeted to the local circumstances. TEPs are are a continuous effort in Albania to realise local-level concertation around employment issues. Driven by the Technical Working Group, the Pact defines the roles and responsibilities of over ten actors involved in efforts to generate and formalise employment in the Municipality. The TEP is a replicable model. With the support of the Municipality, Baldushk Administrative Unit can already begin promoting subsequent TEPs, with specific actions and targets, and build relevant partnerships for implementation.

DRAFT REPORT !8 The project strategy will be centred on the community mobilisation model through Local Action Groups. This will be achieved through the Leader + approach which can be defined as:

• a flexible local mechanism

• to carry out a process of facilitation of linkages between villagers/small holder farmers/women/ vulnerable households/local representatives

• and external / market-based / other actors that have an enabling role to play in delivering investments for leveraging Local Economic Development

• using as a tool the LAG structure

• to ensure the participation of villagers/ small holder farmers / women / vulnerable households in Local Economic Development.

Implementing Participatory Local Economic Development (with the initiation of good practices in land use planning) through LAGs will have two main advantages: • it will increase local ownership by enabling community organisations themselves to facilitate access to grants and subsidies. Targeting beneficiaries alone is not sufficient to stimulate and transfer knowledge and experience to farmers, especially the poorest and most vulnerable producers. Building the capacity of local leaders like heads of associations to identify practical issues within the village, lead on implementation of localised solutions, and follow up on progress will ensure that initiative stays with the community;

• it will leverage beneficiaries’ mobilisation for a greater impact. Working through LAGs will allow to apply farmer-led and demonstrative approaches which are more effective with the target beneficiaries. Budget monitoring and participation is a good example.

LAGs will play a major role in enabling farmers to access services: • by promoting innovative and learning mechanisms for provision and use of agricultural technical and financial services: Learning through LAGs will take place at two levels: o Vertical: between producers and market actors and other stakeholders; in particular learning from each other’s needs and opportunities for cooperation; o Horizontal: between beneficiary groups, with the view to raise ‘role models’ using success stories from the mid-level group shared with subsistence-level producers.

DRAFT REPORT !9 • by fostering an organisational culture and adapting a systematic approach: operational LAGs supported by their members can address various issues on agricultural productivity increase and issues within the value chain including issues relating to input supply, marketing and buyers, value chain actors, etc.

Within this framework, in addition to dedicated measures (including capacity building and awareness raising) and monitoring of gender indicators, attention can be paid throughout the project to using simple solutions enabling women to effectively participate in activities, for instance:

• At grass root level, to select and train women for delivery of agriculture services to other women in order to increase women’s participation in such activities.

• To ensure gender sensitive selection criteria for participation in grant schemes, SME development programs, to ensure it will not automatically exclude women, especially those who are most poor and vulnerable.

• To organise trainings on innovative entrepreneurship, confidence and citizens’ rights for beneficiary women and men in addition to specific agriculture- focused trainings to ensure effectiveness and sustainability of efforts.

• To factor the issue of possible lack of civil documentation in the work with women’s producer groups, to facilitate women’s access to civil registration documents via new or existing channels, and promote discrimination-free inheritance legislation for improved women’s access to land through awareness raising.

DRAFT REPORT !10 Intervention 1: Preparation Of The Farmers Register For The Territory Of Baldushk

Background Information Baldushk administrative unit counts 4,576 residents although the civil register includes 9,181 inhabitants, therefore demonstrating the migration trend of population movement towards the capital and in the neighbouring countries. Agriculture Statistics of 2015 collected from the Ministry of Agriculture and processed from INSTAT do not accurately describe the actual status of land, its usage and productivity. Data offered from the Administrator of Baldushk show a variety usage of agriculture land, continues change in the structure of agriculture production which does create the prerequisite for product and skills specialisation. Additional to that, land usage and property deeds do not always match therefore renting or buying agriculture land for increasing the surface cultivated with one crop (to ensure productivity and input efficiency) is not feasible. In these circumstances the need for developing the Farmers Registers is eminent as it will ensure the identification of a relevant territory assets (Administrative Unit of Baldushk, Municipality of Tirana); will ease the dialogue and collaboration among the representatives of the local institutions (including the regional directorates of the Ministry of Labour and Social Welfare and the Ministry of Agriculture, Rural Development and Water Administration) to seek the commitment of those who have the resources and responsibility for the future development of the municipality and its communities. Once the farmers’ register has identified all local assets, local actors will aim for the identification and selection of a set of strategic interventions that are attainable within the relevant time-scale and with measurable impacts in terms of employment generation/formalisation.

Summary of the Intervention This intervention will provide a local inventory in the form of a Farmers’ Register for the territory covered from the Administrative Unit of Baldushk in the Municipality of Tirana. Farmers Register will be implemented as a survey project consisting of Agriculture land, cultivated land irrigated land, field crops, permanent crops, fruit trees, productivity, harvested production, number of livestock, types and breeds. These data are usually collected from the extension service for the Ministry of Agriculture, which uses them in drafting strategies and measures supporting the sector allover Albania. In the case of Baldushk this Inventory will be used by the Municipality of Tirana for preceding the territorial audit of employment. All actors are aware that informal employment among youngsters prevail in rural areas as well as

DRAFT REPORT !11 unemployment figures lose their accuracy if the unit they represent becomes smaller like the case of Baldushk. Therefore, it is imperative to have a clear view of the territory before suggesting any intervention and funding in the area of Baldushk.

Sequence of Action The survey questionnaire will be drafted by a team of experts comprising statisticians, agriculture experts and representatives from the Municipality of Tirana. In order to ensure the accuracy of the survey 1,356 field interviews are planned to be completed in the ground. 21 field surveyors, 4 supervisors will work for a month in the field to collect the necessary data. The collected data will be cleaned, processed and analysed, concluding in a final Registry that will be published by the Municipality of Tirana.

Primary data will be compared with secondary data from the Ministry of Agriculture, National Business Registry Centre and INSTAT for the demographic data (from national census 2011).

Farmers’ Register will be published and used from the Municipality for planning and development of various projects in rural infrastructure, agriculture and any type of businesses.

Cost breakdown

Service Lines

Database development Lump Sum US$ 10 000

TOTAL US$ 10 000

DRAFT REPORT !12 Intervention 2: Generation And Formalisation Of Employment Though Upgrading Of Rural Micro-Enterprises (Milk Production)

Background Information Baldushk area with its 14 villages offers excellent conditions for breeding ruminants, cattle, poultry and bees although the potentials are unexploited. There are 4 ruminant herds with over 50 sheep in the territory. There is a tendency to grow as the large share of pastures in the territory represent an major potential. Baldushk is famous for breeding turkeys and this can be the trademark of the local produce. Baldushk village counts 5,000 heading and Mustafakoc 3,000 heading of turkeys. The pasture is scattered in hills therefore offering wild pasture for ruminants whereas in all villages there are 900 ha cultivated with forage (650ha with alfalafa, 30 with maize and 220 other plants for livestock). Livestock seems to be an interesting investment for the farmers of Baldushk, considering the surface cultivated with livestock food.

Cattle is for subsistence and very few farmers (around 6) have more than one milking cow but the trend is rising. Investing in buying cattle is quite an expenditure let alone the maintenance that is far above the expenditure for cattle or poultry.

Kasallë – Shëngjergj is well known for beehives and honey production. There are around 2,000 beehives kept by families in this area as the flora offers great pasture for bees.

Summary of the Intervention The intervention will provide support to livestock farmers in Baldushk Administrative Unit, part of Tirana Municipality currently engaged in milking-cow breeding, ruminants and turkeys breeding. The focus is to increase productivity and strengthen the linkages with the market, looking primarily at milk processing companies operating in the vicinities of the territory. About 100 families will benefit from access to business advisory services, training, crediting opportunities (in the form of a small grant), and association building.

DRAFT REPORT !13 Summary Table Up to 50 farming households receive support to improve Proposed Interventions the livestock, improve the quality of their product (milk & meat) and get stronger linkages with the market. Intervention Area All territories in the administrative unit Total cost $ 26,200 Farming households currently engaged with milking-cow Potential Beneficiaries breeding, producing milk for the market Women headed households, households with over 5 Priority Target Groups family members Time-frame September 2017 - December 2018 Service Lines BADS; A2TO; A2CO; AB Baseline Currently no valid data - No. of rural micro-enterprises established / upgraded - No. of people self-employed in agriculture Indicators of Success - No. of farmer’s groups established/supported - Increase in % of farming micro-enterprises with 5 milking cows at the end of the intervention - 10 micro-enterprises established/upgraded - 20 people self-employed in agriculture Targets - 100% increase in the number of farming micro- enterprises with 5 milking cows - benefiting from state subsidies Stakeholders involved in Extension Services, MoT, BAU, implementation

Sequence of Action The implementation of TEP Intervention no 1 envisages 4 steps, described in details below, which shall be implemented in the following sequence:

Step 1: Call for Applications

The Baldushk Administrative Unit launches a Call for Applications and promotes it amongst rural families in the designated villages for this intervention. The Administrative Unit produces and distributes extensively leaflets with information about the intervention, the support envisaged, eligibility criteria and the application process. The CfAs remains open for 20 calendar days.

The CfAs is promoted through Tirana Municipality website, UNDP website, one- pager info-sheet available at the Administrative Unit building and by distributing the

DRAFT REPORT !14 one-pager and application package to potential applicants/interested parties in the eligible area.

Criteria To be eligible, applicants shall meet the following criteria:

- Be residents of Baldushk Administrative Unit (verifiable by family certificate); - Be households with at least 2 working age members – on of them female (verifiable by family certificate); - Own at least 0.5 ha of arable land (verifiable by property document) (property may be in the name of the applicant or a close relative: parents or grandparents), OR attestation by the owner proving that they have leased the arable land for a minimum period of 3 years to the applicant; - Currently breeding 3 or a maximum of 4 milking cows (as per matriculation documentation, for at least the last 6 months); - Own stockyards in decent conditions with capacities for minimum 5 cows.

All these are qualifying criteria. If only one of them is not met, the applicant shall no further be considered for evaluation. It is in the authority of the Agriculture specialist to verify the claims of a given applicants. In case the applicant does not meet the qualifying criteria s/he is automatically excluded from the evaluation process.

Priority

Priority is given to female-headed households applying for support (5 extra points on top of the score received from the technical proposal and the vulnerability profiling).

Step 2: Application Process Support for completion of applications Within 5 working days after launching the call, BAU staff (specialist of agriculture) visit all the villages envisaged in the call to distribute info and application forms and inform potential applicants about the benefits of the action (using the leaflets proceed beforehand). The Agriculture specialist organises one Info Day in the premises of BAU for potential applicants to inform and/or assist them to fill in the forms.

Applicants, applying on behalf of the farming household, deliver the application form and related documents (substantiating declarations made in the respective forms) to the Administrative Unit Information Office. The Agriculture Specialist provides applicants with a document proving they delivered the application in due time.

BAU representative and UNDP have one week to verify the information provided by the applicants and complete a checklist for the Evaluation Panel to inform them whether the information provided be the applicants is correct.

Evaluation of applications

DRAFT REPORT !15 An Evaluation Panel (EP) is established/approved by UNDP with 3 members representing: - Specialist of Agriculture - BAU (1) - Municipality of Tirana (1) - UNDP (1) Members of the EP make sure to declare ex-ante (see Confidentiality and Conflict of Interest Form) whether they have any family or other relationship with potential beneficiaries. This will not disqualify the member of the EP, unless in the case of family members, provided they have notified in advance. This is mandatory for all Evaluation Panels established in the framework of the Pact implementation. The EP meets not later than 8 calendar days after the deadline of the Call. Evaluation is done based on the Profiling Table (Annex …) and Intervention 1 – Evaluation Form (Annex …). The ten applicants/households with the highest score benefit from the action. Should any eligible beneficiary not be able or refuse to participate in the action, the next applicant/household with the highest score is selected.

On the day of the evaluation by the EP, the technical working group publishes the results of the evaluation. Applicants are given 3 working days to present their claims to the Baldushk Administrative Unit. If claims are registered, the EP shall meet immediately to verify the claims and come out with a final decision (no appeal possibilities shall be envisaged after this step). In case of EP members not residing in the Municipality, they can join the EP meeting via conference call.

Step 3: Provision of assistance / Service Lines All selected beneficiaries sign grant contracts with UNDP from which they benefit: - Association Building (AB); - Business Advisory and Development Services (BADS); - Access to Training Opportunities (A2TO); - Access to Crediting Opportunities (A2CO);

3.1 Association Building and support UNDP contracts one consultant to design a form of non-formal organisation for cow breeders in Baldushk Administrative Unit mainly focusing on cooperation for training/ capacity building, buying inputs/services and increasing the negotiating power with potential buyers. The consultant designs a two-years work plan for the group clearly envisaging themes and relevant activities guided by the principle of economic clusters. At least 3 membership meetings take place (BAU premises), facilitated by the consultant. Initiatives to facilitate purchase of inputs and sales of products are envisaged in the activities of the association. All action beneficiaries and other cow- breeders in the territory are eligible to become members of the association/group. (total of 10 working days)

DRAFT REPORT !16 3.2 Business Advisory and Development Services and Training Incentives The consultant establishes contacts between milk-processing centres in the vicinities of Baldushk and the farmers benefiting from the intervention. The objective is to establish a long-term agreement between the farmers benefiting from the intervention and other milking cow-breeders in the territory and milk processing centres by establishing a milk-collection route. The companies will have a greater interest if a considerable number of farmers make deals with them to sell milk on a daily basis based on pre-defined quality standards and agreed prices.

The consultant designs and delivers, to action beneficiaries – association members, one 2-days training on “cow-breeding micro and small enterprise management”. Training is designed for micro-entrepreneurs breeding up to 5 milking cows. The training package includes farming (micro enterprise) management notebook to help farmers to keep track of their farm financial activity.

One or two of the milk processing centres cooperating with the farmers deliver a practical training on the milk hygiene and quality standards that shall be met by farmers to qualify for the milking centres to collect milk for processing. All interested farmers breeding milking cows residing in the Administrative Unit can participate in this training activity.

The company supplying the cow-milking machines delivers 2 one-day trainings to beneficiaries on how to use the machinery, including hygiene aspects.

All above-mentioned activities are facilitated by the consultant (12 working days) in cooperation with the agriculture specialist at BAU.

3.3 Access to Crediting Opportunities Upon signature of the TEP by the relevant stakeholders, UNDP starts the procedure to procure goods and services to be provided to the beneficiaries. Beneficiaries will be provided with: - 1 milking cow - holstein Breed (imported by specialised companies, 2-3 months from calving) - 1 cow-milking machine

Step 4: Monitoring and Evaluation The Agriculture Specialist reports periodically (every three months) to the Technical Working Group. The impact of the action can be measured vis-à-vis the performance of other households working in agriculture in the selected territory.

Cost breakdown

DRAFT REPORT !17 Service Lines n/a Calls for Proposals promotion US$ 200 (forms, leaflets, distribution)

Association Building Consultancy - 10 working days * $150 US$ 1 800 (incl. costs for 3 meetings*$100)

Business Advisory Services & Consultancy - 12 working days * $150 US$ 2 200 Access to Training (incl. organisation of two-days Opportunities workshop * $400) Access to Crediting Milking cows (10*$1,900) US$ 19 000 Opportunities Milking machines (10*$300) US$ 3 000

TOTAL US$ 26 200

DRAFT REPORT !18 Intervention 3: Generation And Formalisation Of Employment Though Upgrading Of Rural Micro-Enterprises (Vegetable Production)

Background Information Baldushk area with its 14 villages offers excellent conditions for cultivating a vast variety of fruits and vegetables. Baldushk villages have a long tradition in cultivating vegetables although mostly for family consumption and what was left for market not vice versa. The variety of vegetables demonstrate the very favourable climate and soil conditions of the area but also lack of specialisation in order to match the market demand.

The surface of greenhouses is increasing and the actual 5 ha are an important source of local vegetables and engagement of 37 farmers and their families in 5 villages of Baldushk. Whereas in the fields potatoes (20 Ha), onions (15 Ha) and legumes (20 Ha) are dispersed almost in every village therefore hardly create a real offer for the market in terms of negotiating a better price for sellers.

No farmer in Baldushk area has benefited from the subsidy schemes offered from Ministry of Agriculture or any other donor. This is due to land disperse, proximity with the Tirana labour market for youngsters that prefer a secured wage working in services or other industries in Tirana instead of risking in investing in Agriculture with unsecured market (citing the local farmers).

Summary of the Intervention The intervention provides support to farming households in Baldushk Administrative Unit to upgrade and specialise their farming activity in vegetable production by focus on the expansion of greenhouses and other forms of extension of seasonality of products. The focus is to i) increase productivity, ii) extend seasonality, and iii) strengthen linkages with the market looking primarily at Tirana Municipality consumers market. A total of 10 families benefit from access to business advisory services, training, crediting opportunities (in the form of a small grant), and association building.

Summary Table Up to 10 farming households receive support to expand their Proposed Interventions activity, improve productivity and get stronger linkages with the market. Intervention Area Baldushk Administrative Unit Total cost $ 28,200

DRAFT REPORT !19 To benefit from the interventions, individuals/micro- enterprises must meet these qualifying criteria. Farming households… - residents in the selected villages Potential Beneficiaries - with 2 or more family members of working age (+16), one of which a woman - In ownership of 0,5 or more of arable land, of which 100m2 to 400m2 is an operational greenhouse - Currently cultivating vegetables destined for the market Priority Target Groups women, youth Time-frame September 2017 - December 2018 Service Lines BADS; A2TO; A2CO Baseline n/a - No. of rural micro-enterprises established / upgraded Indicators of Success - No. of people self-employed/formalised in agriculture - 10 rural micro-enterprises upgraded Targets - 20 people formalised Stakeholders involved in MoT, BAU, MWG, UNDP implementation

Sequence of Action The implementation of TEP Intervention no. 2 envisages 4 steps, described in details below, which shall be implemented in the following sequence:

Step 1: Call for Applications

The Baldushk Administrative Unit launches a Call for Applications and promotes it amongst rural families in the designated villages for this intervention. The Administrative Unit produces and distributes extensively leaflets with information about the intervention, the support envisaged, eligibility criteria and the application process. The CfAs remains open for 20 calendar days.

The CfAs is promoted through Tirana Municipality website, UNDP website, one- pager info-sheet available at the Administrative Unit building and by distributing the one-pager and application package to potential applicants/interested parties in the eligible area.

Criteria To be eligible, applicants shall meet the following criteria:

- Be residents of Baldushk Administrative Unit (verifiable by family certificate); - Be households with at least 2 working age members (+16) – one of them female (verifiable by family certificate);

DRAFT REPORT !20 - Own at least 0.5 ha of arable land in BAU administrative territory (verifiable by property document) of which 100m2 to a maximum of 400m2 is an operational greenhouse (property may be in the name of the applicant or a close relative: parents or grandparents), OR attestation by the owner proving that they have leased the arable land for a minimum period of 3 years to the applicant; - Currently cultivating vegetables for the market

All these are qualifying criteria. If only one of them is not met, the applicant shall no further be considered for evaluation. It is in the authority of the Agriculture specialist to verify the claims of a given applicants. In case the applicant does not meet the qualifying criteria s/he is automatically excluded from the evaluation process.

Step 2: Application Process Support for completion of applications Within 5 working days after launching the call, BAU staff (specialist of agriculture) visit all the villages envisaged in the call to distribute info and application forms and inform potential applicants about the benefits of the action (using the leaflets proceed beforehand). The Agriculture specialist organises one Info Day in the premises of BAU for potential applicants to inform and/or assist them to fill in the forms.

Applicants, applying on behalf of the farming household, deliver the application form and related documents (substantiating declarations made in the respective forms) to the Administrative Unit Information Office. The Agriculture Specialist provides applicants with a document proving they delivered the application in due time.

BAU representative and UNDP have one week to verify the information provided by the applicants and complete a checklist (template in Annex …) for the Evaluation Panel to inform them whether the information provided be the applicants is correct.

Evaluation of applications An Evaluation Panel (EP) is established/approved by UNDP with 3 members representing: - Specialist of Agriculture - BAU (1) - Municipality of Tirana (1) - UNDP (1) Members of the EP make sure to declare ex-ante (see Confidentiality and Conflict of Interest Form) whether they have any family or other relationship with potential beneficiaries. This will not disqualify the member of the EP, unless in the case of family members, provided they have notified in advance. This is mandatory for all Evaluation Panels established in the framework of the Pact implementation. The EP meets not later than 8 calendar days after the deadline of the Call. Evaluation is done based on the Profiling Table and Intervention 2 – Evaluation Form. The ten applicants/households with the highest score benefit from the action. Should any eligible beneficiary not be able or refuse to participate in the action, the next applicant/household with the highest score is selected.

DRAFT REPORT !21 On the day of the evaluation by the EP, the technical working group publishes the results of the evaluation. Applicants are given 3 working days to present their claims to the Baldushk Administrative Unit. If claims are registered, the EP shall meet immediately to verify the claims and come out with a final decision (no appeal possibilities shall be envisaged after this step). In case of EP members not residing in the Municipality, they can join the EP meeting via conference call.

Step 3: Provision of assistance / Service Lines All selected beneficiaries sign grant contracts with UNDP from which they benefit: - Business Advisory and Development Services (BADS); - Access to Training Opportunities (A2TO); - Access to Crediting Opportunities (A2CO);

3.1 Business Advisory and Development Services and Access to Training Opportunities

UNDP contracts a consultancy to design Business Development Plans for the farming households benefiting from the intervention. - design the expansion plan - market linkages - field visits with markets

3.2 Access to Crediting Opportunities Upon selection of beneficiaries UNDP signs a grant agreement with each representative of the households benefiting from the intervention. The grant contract envisages that each household will benefit Business Advisory and Development Services, Access to Training Opportunities. In addition beneficiaries are provided with Access to Crediting Opportunities in the form of a grant of a total value of $2,500 to be invested only for expanding the greenhouse and instal drip irrigation system. Support is provided to beneficiaries upon the condition that they participate in the events envisaged in this intervention (i.e. training).

UNDP contracts a specialised agency to construct the greenhouses for 10 households.

DRAFT REPORT !22 Step 4: Monitoring and Evaluation

DoT and the Project Team report periodically (every 3 months) to the LAG.

Service Lines 10 micro-enterprises/20 jobs created/formalised

Calls for Proposals promotion US$ 200 n/a (forms, leaflets, distribution)

BADS & A2TO Consultancy (lump sum US$ 3 000

Access to Crediting Grants @ $2,500 US$ 25 000 Opportunities

TOTAL € 28 200

DRAFT REPORT !23 Intervention 4: Promotion Of Employment Opportunities For Youth And Women In The Rural Tourism And Hospitality

Background Information Rural tourism focuses on actively participating in a rural lifestyle. It can be a variant of ecotourism. Many rural villages can facilitate tourism because many villagers are hospitable and eager to welcome and host visitors. Agriculture is becoming highly mechanised and therefore, requires less manual labor. This trend is causing economic pressure on some villages, which in turn causes young people to move to urban areas. There is however, a segment of the urban population, increasing considerably, that is interested in visiting the rural areas and understanding the lifestyle.

Rural tourism allows the creation of a replacement source of income in the non- agricultural sector for rural dwellers. Rural tourism is particularly relevant in developing countries where farmland has become fragmented due to population growth. The wealth that rural tourism can provide to poor households creates great prospects for development. Rural tourism exists in developed nations in the form of providing accommodation, food and get-to-know the nature in a scenic location, ideal for rest and relaxation. There are many scenic towns that have become quaint spots for vacationers. Summary of the Intervention The Intervention supports 3 rural households in the BAU to start and/or upgrade an economic activity in rural tourism by turning their dwellings into a guesthouse. Beneficiaries receive a grant to improve conditions of one or two guests room (with dedicated sanitary infrastructure). In addition, family members receive training on hospitality and tourism services. All the guesthouses are promoted through different channels, including participation in fairs.

Sequence of Action The implementation of TEP Intervention no. 3 envisages 4 steps, described in details below, which shall be implemented in the following sequence:

Step 1: Call for Applications

UNDP and Tirana Municipality, launch a Call for Applications and promote it amongst rural families in the designated village(s) for this intervention. BAU produces and distributes extensively (in the designated area) leaflets with information about the intervention, the support envisaged, eligibility criteria and the application process. The CfAs remains open for 20 calendar days.

DRAFT REPORT !24 The CfAs is promoted through Tirana Municipality website, UNDP website, one- pager info at the Administrative Unit premises and by distributing the one-pager and application package to potential applicants/interested parties in the eligible area.

Criteria To be eligible, applicants shall meet the following criteria:

- Be residents of the selected villages (verifiable by family certificate); - Be households with at least 3 working age members (+16 years) (verifiable by family certificate); - Live and own the house where tourists will be hosted (verifiable by property document, may be in the name of the applicant, her/his parents or grandparents); - The house does not currently serve as guesthouse to avoid supporting people who are currently engaged in such business); - The house has at least one extra bedroom (guest room) and a minimum of two bathrooms (shower facilities in the room dedicated to guests is mandatory)

All these are qualifying criteria. If only one of them is not met, the applicant shall no further be considered for evaluation. It is in the authority of the UNDP representative to verify the claims of a given applicant. In case the applicant does not meet the qualifying criteria s/he is automatically excluded from the evaluation process.

Step 2: Application Process Support for completion of applications Within 5 days after launching the respective call(s), BAU and UNDP representative visit the selected villages in Baldushk to distribute info and application packages and inform potential applicants about the benefits of the action.

The second week after launching the call, UNDP and BAU/Tirana Municipality organise 1 INFO Day (at the premises of the BAU) for potential applicants to inform them about the support and the conditions and assist them to fill in the forms.

Applicants, applying on behalf of the rural household, deliver the completed application form and related documents (substantiating declarations made in the respective forms) to the UNDP representative at the premises of BAU. The UNDP representative provides applicants with a document proving they delivered the application in due time. UNDP representative and BAU/Tirana Municipality staff have one week to verify the information provided by the applicants and prepare a brief report for the Evaluation Panel with comments whether the information provided by each applicant is correct.

DRAFT REPORT !25

Evaluation of applications UNDP establishes an Evaluation Panel (EP) with 5 members representing: - BAU (1) - Tirana Municipality (1) - UNDP (1)

Members of the EP make sure to declare ex-ante (see Confidentiality and Conflict of Interest Form) whether they have any family or other relationship with potential beneficiaries. This will not disqualify the member of the EP, unless in the case of family members, provided they have notified in advance. This is mandatory for all Evaluation Panels established in the framework of the Pact implementation. The EP meets not later than 8 calendar days after the deadline of the Call. Evaluation is done based on the Profiling Table and Action 2 – Evaluation Form. The six applicants/households with the highest score benefit from the action. Should any eligible beneficiary not be able or refuse to participate in the action, the next applicant/household with the highest score is selected.

On the day of the evaluation by the EP, UNDP and Tirana Municipality publish the results of the evaluation. Applicants are given 3 working days to present their claims to the BAU. If claims are registered, the EP shall meet immediately to verify the claims and come out with a final decision (no appeal possibilities shall be envisaged after this step).

Step 3: Provision of assistance / Service Lines

All selected beneficiaries sign grant contracts with UNDP from which they benefit: - Business Advisory and Development Services (BADS) - Access to Training Opportunities (A2TO); - Access to Crediting Opportunities (A2CO);

3.1 Business Advisory and Development Services and Training

3.1.1 UNDP contracts a consultancy to: - provide specialised advice (1 working day per household for field visit and provision of recommendations, including specifications that serve for the procurement process UNDP shall undertake) to each household for upgrading the conditions for the guests room(s) (i.e. comfortable bed), the bathroom (hygiene standards, shower, etc.) dedicated to guests as well as suggesting other items that

DRAFT REPORT !26 are mandatory for a facility hosting tourists (i.e. exit signs in case of fire, fire extinguishers, internet/wifi routers, etc.); - design (2 wd) and deliver a 2-days training course (1 facilitators * 3 wd) tailored for guesthouse’s owners in Baldushk (main topic: a 2 overnights/3 days package for urban/foreign tourists). Preferably two members per household/guesthouse participate in the training; - facilitate the participation of the guesthouse owners in 1 tourism fair (during 2017), national event (2 wd); - facilitate tour operator’s visits (overnight, minimum 2 for each guesthouse) in the guest-houses supported by the intervention (3 wd in total). Owners of the guesthouses cover food/accommodation costs. - design (2 wd) and produce leaflets for each guesthouse (based on a standard template) (max. $200/guesthouse including design and print) - introduce the guesthouses in most important online platforms promoting tourism attractions (including Airbnb and booking.com)

If necessary, BAU makes available the premises for organising the training. The consultancy is responsible for producing training materials, organising - and paying for lunch (10$/participant) and other tasks related to the organisation of the training.

UNDP contracts the consultancy for a total number of 15 working days.

3.1.2: One members for each of the families benefiting from the intervention enrolling in a relevant training course occupational profiles relevant to tourism services) offered by one of the two VTCs in Tirana benefit a travel grant to and from the VTC as a lump sum of 100 $.

3.2 Access to Crediting Opportunities

Upon selection of beneficiaries UNDP signs a grant agreement with each representative of the household. The grant contract envisages that each household will benefit from the service line Access to Crediting Opportunities in the form of a grant with a value of $3,300 each (including leaflets and the travel grant for attending training offered by the VTC). Support is provided to beneficiaries upon the condition that they participate in the events envisaged in this intervention (i.e. training) and cover themselves the costs of participating in tourism fair and other such activities.

Upon finalisation by the consultancy of the detailed list of items necessary for each household/guesthouse, UNDP starts the procurement procedure for goods to be provided to the beneficiaries. In an official ceremony, UNDP representatives and Tirana Municipality distribute the goods to the beneficiaries. The goods remain

DRAFT REPORT !27 property of the Municipality for one year (in order to avoid the possibility of beneficiaries selling anything). This is secured through signing of handover forms between the Municipality and the beneficiaries.

Step 4: Monitoring and Evaluation

UNDP representative and BAU representative report periodically to the Technical Working Group.

Cost breakdown

Service Lines 3 beneficiaries/6 jobs

Calls for Applications US$ 200 n/a (forms, leaflets, distribution)

Consultancy - 15wd * $150 US$ 2 250

lump sum - organisation of 2-days US$ 200 BADS training

Travel grants - attend training (3hh * US$ 300 $100)

A2CO Grant - 6hh * $3000 US$ 9 000

TOTAL US$ 11 950

DRAFT REPORT !28