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Usaid|Pakistan: Firms Project PROGRAM HIGHLIGHTS USAID|PAKISTAN: FIRMS PROJECT ANNUAL PROGRESS REPORT – 1 JULY 30, 2010 JULY 30, 2010 This publication was produced for review by the United States Agency for International Development. It was prepared by the USAID/Pakistan FIRMS Project. 1 USAID|PAKISTAN:FIRMS PROJECT ANNUAL PROGRESS REPORT – 1 (MAY 2009 – JUNE 2010) Contract No. EEM-I-00-07-00008-00 FIRMS Project JULY 30, 2010 USAID/Pakistan: FIRMS Project House 44 C-1 Gulberg III, Lahore Phone +92 (0) 303 591 3521 Fax 92 (42) 3636-9357 Email: [email protected] DISCLAIMER The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. CONTENTS ACRONYMS....................................................................................................................................................................... ii PROJECT OVERVIEW ................................................................................................................................................... 3 PROJECT HIGHLIGHTS ............................................................................................................................................... 7 KEY PERSONNEL ........................................................................................................................................................ 21 PROJECT STAFFING ................................................................................................................................................... 22 GEOGRAPHIC COVERAGE ..................................................................................................................................... 23 PROGRESS AND ACCOMPLISHMENTS .............................................................................................................. 24 ANNUAL PROJECT INDICATORS UPDATE ...................................................................................................... 37 KEY EVENTS AND MEETINGS ............................................................................................................................. 87 SUCCESS STORIES ..................................................................................................................................................... 124 PROBLEMS AND OBSTACLES .............................................................................................................................. 116 SECURITY RISKS ........................................................................................................................................................ 117 ANNEX – A: COMMUNICATION PRODUCTS DEVELOPED ................................................................... 118 ANNEX – B: LIST OF SUCCESS STORIES .......................................................................................................... 121 ANNEX – C: LIST OF COMPLETED DELIVERABLES ................................................................................. 122 ANNEX – D: WORK PLAN CHANGES ............................................................................................................... 124 ANNEX – E: PROJECT EMPLOYEE LIST .......................................................................................................... 124 ANNEX – F: PROJECT INVENTORY .................................................................................................................. 124 ANNEX – G: NATIONAL CONTEXT INDICATORS ..................................................................................... 124 USAID/Pakistan: FIRMS Project I Annual Progress Report - 1 i ACRONYMS ADB Asian Development Bank ADR Alternate Dispute Resolution ADS Automated Directives System AOTR Agreement Officer's Technical Representative AR Annual Report BDS Business Development Services BEE Business Enabling Environment COP Chief of Party CIPE Center for International Private Enterprise CRISP Community Rehabilitation and Infrastructure Project CSF Competitiveness Support Fund DQA Data Quality Assessment DSM Demand Side Management EEC Energy Efficiency and Capacity EG Economic Growth EP Energy Policy ESCOs Energy Service Companies F FIRMS FDI Foreign Direct Investment FSN Foreign Service National FY Fiscal Year GDP Gross Domestic Product GIS Geographical Information System GOP Government of Pakistan IDP Internally Displaced Person IMF International Monetary Fund IP Implementing Partner IR Intermediate Result IT Information Technology J Jobs LB Livelihoods Baluchistan M&E Monitoring and Evaluation MFI Micro-Finance Institution MSE Micro and Small Enterprises MSI Management Systems International N/A Non-Applicable NGO Non-Governmental Organization P Performance PC Program Component PSD Private Sector Development RFP Request for Proposal ROZ Reconstruction Opportunity Zone SO Strategic Objective SOW Scope of Work T Trade TBD To Be Determined US United States USAID United States Agency for International Development USG United States Government WB World Bank ii PROJECT HIGHLIGHTS PROJECT OVERVIEW PROJECT BACKGROUND The $89.7 million FIRMS Project commenced in May 2009 as a key implementer of USAID/Pakistan’s Economic Growth strategy. Chemonics International is the project’s prime contractor. Pakistani subcontractors include Cogilent Solutions, Fincon, Innovative Development Strategies, and Semiotics. The U.S. subcontractors are Development Infostructure, Dexis, The Kaizen Company, Making Cents International, and O’Brien & Associates International. The project is based in Lahore with satellite offices in Karachi and Islamabad. Future offices planned in Peshawar, Quetta, and possibly other locales. The objective of the FIRMS Project is to improve government service delivery and develop dynamic, internationally competitive firms to accelerate sales, investment, and job growth to undercut the basis of extremism. Implementation will focus on economic sectors with potential for near-term economic impact in districts that are at risk to extremism in the NWFP (with focus on Swat and Malakand), Southern Punjab, and Northern Sindh. The project’s implementation strategy is organized around the following core themes: Rapid response to opportunities that promote, expand, and accelerate near-term domestic and export market-driven sales growth leading to immediate job creation in vulnerable areas. Implementation in partnership with local public and private institutions, including private firms, with particular emphasis on showcasing improved delivery of government services Gender integration into all aspects of implementation The FIRMS Project implements through three complementary technical components: Private Sector Development: This component focuses on enhancing the competitiveness of targeted economic sectors by identifying and removing constraints to investment, sales, and job growth. Interventions include technical assistance; training; commodities; and grants aimed at improving sectors’ market linkages, technologies, workforce skills, access to financing, achievement of international standards and certifications, and other key elements of enhanced competitiveness in international and domestic markets. Business Enabling Environment: This component focuses on improving the business enabling environment generally and for targeted sectors, improving government service delivery through improved planning and budgeting; international best practice policy reform; and streamlined regulations and procedures at the national, provincial, and district levels. Project interventions will reduce the cost of doing business, increase ease of access to government services, and develop government capacity to provide citizen-centric services. Business Development Services: This component develops quality business support services for firms in targeted sectors by establishing a franchised system of local service providers to deliver interventions to public and private clients in both of the two technical components above. Each component will act as a catalyst in support of local public and private counterparts to accelerate market driven change in vulnerable areas. A modification was received on July 14 2010, which has adjusted this description of the project overview slightly and will reflect in future reports. 3 PROJECT HIGHLIGHTS PROJECT TASK CHANGES SUMMARY N/A: Subject to Work Plan Approval/Modification PROJECT FINANCIAL SUMMARY Contract No.: EME-I-00-07-00008-00 Date of Issuance of Task Order: 07 May 2009 Total Potential Task Order Amount: US$ 89,753,164.00 Amount Obligated Under Task Order: US$ 18,000,000.00 Total Project Funds Expended To Date: US$ 14,989,108.12 Project Funds Expended During Quarter Four: US$ 5,797,157.23 Project Funds Allocated for the Next Quarter: US$ 3,500,000.00 Project Funds Allocated for Next Year: US$ 15,500,000.00 PROJECT FUNDS EXPENDED DURING REPORTING YEAR (MAY 7, 2009 – JUNE 30, 2010) ON LOCAL INSTITUTIONS AND STAFF Funds Expended (in US$) % of Overall Total Local Description Local Local Local Local Staff Local ODC* Service Total Service Providers Staff ODC Providers During the reporting year, project funds expended in 3,294,289.68 868,746.74 4,477,515.49 22% 6% 30% 58% Pakistan on local institutions and local staff PROJECT FUNDS EXPENDED DURING QUARTER IV ON LOCAL INSTITUTIONS AND STAFF Funds Expended (in US$) % of Overall Total Local Description Local Local Local Local Staff Local ODC* Service Total Service Providers Staff ODC Providers During the reporting quarter, project funds expended
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