FINAL REPORT Northern Livelihood Development Project (N-LDP)

1st July 2012 – 30th June 2014

30th September 2014

Contents

List of Acronyms ...... 3 Executive Summary ...... 4 Background and Introduction ...... 7 Programme Design and Planning ...... 8 Progress against Outcomes...... 10 Complementarity between projects and collaborative project implementation...... 21 Good Practices and Lessons Learned ...... 23 Issues and Challenges ...... 26 Application of Cross-cutting Themes ...... 27 Sustainability ...... 30 Conclusion ...... 31

Annexures

Annex I: Activity Summary

Annex II: Logframe

Annex III: Case Story –‘Success in the hands of women’

Annex IV: Case Story-‘Taste of sweet success’

Annex V: PLIBCO Infograph

List of Acronyms

AmbFCS Ambal Fishermen’s Co-operative Society Ltd AskFCS Ashok Ezhuchchi Kudirruppu Fisheries Cooperative Society BDS Business Development Service Provider BOD Board of Directors CADRIN Capacity Development for Recovery in the North CEFE NET Competency-based Economies through Formation of Enterprise Net Sri Lanka CIDA Canadian International Development Agency CLIBCO Livestock Breeders’ Co-operative Society, Chavakachcheri DS Divisional Secretariat DSD Divisional Secretariat Division FAO Food and Agriculture Organisation FCS Fisheries Cooperative Society FCSU Fisheries Cooperative Society Union GLED Governance for Local Economic Development IFC International Finance Corporation IFCS Iranaimadu Fresh Water Fisheries Cooperative Society IFTCCS Integrated Farmer’s Thrift and Credit Cooperative Society ILO International Labour Organization ISB Industrial Services Bureau ITI Information Technology Institute KayPDCS Kayts Palm Development Co-operative Society Ltd KFCS Kumulamunai St. Anthony’s Fisheries Co-operative Society KMPCS Karachchi South Multi-Purpose Cooperative Society KPDCS Kilinochchi Palm Development Cooperative Society (KPDCS) LIBCO Livestock Breeders Cooperative Society LKR Sri Lankan Rupee MCGA Micro Capital Grant Agreement MFCSU Maritimepattu Fishermen Cooperative Societies Union Ltd MPCS Multi-Purpose Cooperative Society NCE No Cost Extension NLDP Northern Livelihoods Development Project PO Producer Organisation PFCSU Poonakary Fisheries Co-operative Society Union PLIBCO Poonakary Livestock Breeder’s Cooperative Society PMPCS Panankamampatu Multi-Purpose Co-operative Society Ltd PPDCS Pandatheruppu Palm Development Cooperative Society RALP Rebuilding Agricultural Livelihood Project SLSI Sri Lanka Standards Institute TMPCS Thenmarachchy East MPCS Ltd, Kodikamam TRP Transition Recovery Programme UNDP United Nations Development Programme WHH Women Headed Household

Executive Summary The Northern Livelihood Development Project (NLDP) commenced on 1st July, 2012 with the initial project duration of 12 months. The overall strategy of NLDP focused on enhancing the self- sufficiency of communities in the Districts of Jaffna, Kilinochchi and Mullaitivu, thus contributing towards the post-war rebuilding of the local economy. It sought to do so by providing a platform for communities to rebuild traditional livelihoods as well as build new ones and through this move towards a more market driven local economy. In total the Project reached approximately 2,058 direct beneficiaries and 19,810 indirect beneficiaries.

The Project also received additional funding support from the Government of New Zealand. This funding was originally received for flood response. However, considering the lapse in time since the funding was for flood relief was sought, and its’ actual receipt, the Government of New Zealand approved re-programming of the grant under NLDP, ensuring critical complementary support to the on-going Project.

In May 2013, UNDP made a formal request to the Government of Norway for a no cost extension (NCE.) as additional time was required to implement specific activities and overcome administrative delays in securing approvals and processing procurements, as well as delays encountered in securing the release of land held by the Sri Lanka Army in Panankamam, Jaffna. This request was approved and a NCE was awarded up to December 31st 2013. A second NCE was then requested and approved in December 2013, up to 30th June 2014.

UNDP carried out extensive stakeholder consultations at the district and national levels in order to assess current livelihood capacities, infrastructure, practices and opportunities. In addition to the communities themselves, key stakeholders included the Divisional Secretariats, Department of Agriculture, Department of Fisheries, Department of Animal Production and Health, Chambers of Commerce, POs at district level, agricultural companies, product exporters and financial institutions. The consultation process identified five sectors for intervention namely, paddy, fisheries, dairy, horticulture and palmyrah (food and handicrafts.)

Criteria were then developed to prioritize livelihood sectors with a focus on: growing market demand (at local, regional, and national levels); promoting economic leadership of women and youth; cross-ethnic representation; vulnerability to disasters; and inclusion of a large majority of low-income households. Criteria were also developed for the appraisal and selection of Producer Organizations (POs) based on their organizational governance and management practices; capacity of grassroots members; legal structure; and production, marketing and business management capacities. Through these discussions five sub-project proposals were developed targeting 15 POs that were selected using the criteria detailed in the body of the report.

The Project adopted a holistic approach and provided local POs with both hardware support such as infrastructure and equipment for production and processing, as well as organizational capacity development support to strengthen their skills, knowledge and governance structures. As a result of these interventions, the selected POs have seen a host of changes, including the introduction of 19 new products into the market and enhanced production and sales of existing products. This has in turn positively impacted the members of these organizations and the local communities as a whole. In tot

Two months following the completion of the Project, UNDP staff conducted an internal evaluation of results achieved. In regard to Outcome 1: “Increased production, processing and value-addition capacities, and access to markets and services in target communities” the evaluation noted that there has been a significant percentage increase in production levels of existing products and a high

4 production level for new products. All POs also noted that they managed to sell close to 100% of all their products. This meant that increased production had translated into increased income as well.

PO members have also begun to see tangible benefits trickle down either through direct targeted Project interventions, such as the parboiled rice processing sub-project and dry fish making for women, or as a result of enhancements made to the services offered by the POs where for example, the POs are able to purchase directly from the producer members at a higher price than that offered by third parties.

As part of the Project evaluation, UNDP met with 136 beneficiaries (80 Men; 50 women) including 33 youth and 30 women heads of households (WHH) who had either directly benefited from the Project interventions. Findings pointed to enhanced income levels that had in turn led to an improvement in the socio-economic wellbeing of these individuals and their families. Of the 136 individuals interviewed, 26 had no previous income. This group now earns an average of Rs. 9,127 (income ranging between Rs. 1,000-75,000.) Those who did have a previous income (n=110) saw their income increase by an average of 57% (income ranging between Rs. 1,160-166,667). Findings also point to a significant impact on women, particularly WHH and youth, who were actively targeted by the Project and who consequently either have incomes for the very first time or have seen a dramatic increase in previous income levels. The evaluation also pointed out that 75 individuals or 55% of all respondents have begun to save, while 32 individuals or 24% of respondents have bought property or assets such as motorcycles and jewellery. All respondents also noted that they now have more money to educate their children and their overall confidence and self-esteem has improved. This was particularly the case for women, who said they now felt more independent. Furthermore, youth in particular also noted that their image within their communities had improved as they were now seen as worthy entrepreneurs or contributors to their families and villages.

In addition to the self-employment opportunities created, the Project also created 59 new jobs for individuals within all the POs. These jobs ranged from managerial posts to those involved in product packaging and sales. Priority was given to vulnerable individuals such as WHH and youth including ex-militants.

All 15 POs formulated their business plans for three years. The process of developing the plans entailed awareness raising and strengthening linkages with women and youth and complying with labour laws. Business plans have also focused on methods to capture market opportunities and strengthen the capacity of POs to meet the demand for their products. When PO committees were interviewed for purposes of the evaluation, a majority noted that they were ‘fully satisfied’ with the technical services provided. Similarly a majority were ‘fully satisfied’ with the organizational changes brought about by the Project. Reasons provided for the positive feedback included the more effective human resource and financial management systems that were introduced as part of the Project and were now in place and the overall functioning of the organization like a business entity, which had in turn resulted in the use of technology and new processes to maximize profits.

In addition to this, the Project also indirectly addressed certain social issues that had led to the alienation of certain communities. For instance, engagement in the profession of toddy tapping carries with it a considerable stigma. With the move towards promoting the collection of sweet sap for jaggery as an alternative to toddy collection, members of the toddy tapping community say that there has been a change in perceptions within and towards their communities. They are no longer seen as suppliers of intoxication and have also moved away from consuming the excess toddy tapped. This has resulted in a gradual recognition and acceptance of the profession from the wider society. The Project, as a result was also able to include young members in these initiatives,

5 whereas previously young people were wary of being associated with any palmyrah related livelihood.

In order to create cross sectoral and cross community ties, the Project also took steps to network POs with organizations supported through previous UNDP projects. For example, the Project facilitated linkages with between Kayts Palmyrah Development Co-operative Society (KayPDCS) and the Jaffna Palmyrah Handicrafts Guarantee Ltd. (created under CIDA-RALP) to supply the Guarantee Limited with products. Similarly, as mentioned above the Project also conducted several exposure visits for POs members both within and outside their home districts to share experiences and learn from other organizations that had become successful models within their respective sectors.

While the Project did encounter a number of challenges, both practical as well as conceptual, these were mitigated in close consultation with government officials as well as other local stakeholders including the community. Further, NLDP being one of the first projects that marked the progression of UNDP’s programming approach away from the traditional ‘direct provision’ towards ‘facilitated delivery’ support to target groups, the Project also provided a host of valuable lessons that continue to be applied within and inform the Governance for Local Economic Development Programme (GLED) which serves as UNDP’s flagship programme under the 2013-2017programme cycle.

Background and Introduction The Northern Livelihood Development Project (NLDP) marked the beginning of a valuable and ongoing partnership between the Government of Norway1 through the Royal Norwegian Embassy and UNDP in Sri Lanka, that aims to improve the economic opportunities of conflict-affected communities in the districts of Jaffna, Kilinochchi and Mullaitivu, contributing towards the post-war rebuilding of the local economy of the north of Sri Lanka and stabilization of its communities and governance structures. The overall strategy of NLDP focused on enhancing the self-sufficiency of local communities. It sought to do so by providing a platform for communities to rebuild traditional livelihoods as well as build new ones and through this move towards a more market driven local economy.

The almost three-decade long war in Sri Lanka resulted in much destruction and disruption in the lives of those living in the Northern Province. The loss of social and economic capital also meant that the region was lagging far behind the rest of the country in terms of socio-economic development. With the end of the war and the opening up of access roads and markets, the region struggled to find its footing, particularly in the face of having to, on the one hand rebuild communities and livelihoods, while also having to compete with outside markets in order to sustain the local economy that had for many years remained insulated.

Thus, for its interventions, NLDP prioritized livelihood sectors that offered high potential for employment generation and poverty reduction, with a particular focus on women and youth. As such, the Project adopted a market driven orientation and a value-chain focus in order to deliver its livelihood and enterprise support. Support provided was based on in-depth market and contextual assessments conducted as part of the project design process. Emphasis was also placed on selecting endeavors that promoted inter- and intra- community relations. Overall, the project also marked a point of progression in UNDP’s programming approach; moving away from the traditional ‘direct provision’ towards ‘facilitated delivery’ support to target groups.

NLDP was in 2012 and 2013 implemented under UNDP’s Transition Recovery Programme (TRP), which served as UNDP’s flagship delivery mechanism during the 2008-2012 programme cycle to support socio-economic recovery and social transformation in the conflict-affected districts of the North and East of Sri Lanka. Being part of this larger multi-donor supported Programme allowed for greater sharing of benefits across other similar themed projects and enhanced synergy within the Programme. Notable amongst the other TRP projects that had a direct impact on NLDP was the Rebuilding Agricultural Livelihood Project (RALP) supported by the Government of Canada. Furthermore, the approach that RALP and NLDP fostered, in turn culminated in the design of the Governance for Local Economic Development (GLED) Programme, which is UNDP’s new flagship programme to support local economic development, under its 2013-2017programme cycle.

NLDP commenced on 1st July 2012 with the initial project duration of 12 months. In May 2013, UNDP made a formal request to the Government of Norway for a no cost extension (NCE.) as additional time was required to implement specific activities and overcome administrative delays in securing approvals and processing procurements, as well as delays encountered in securing the release of land held by the Sri Lanka Army in Panankamam, Jaffna. This request was approved and a NCE was granted up to December 31st 2013. A second NCE was also requested and approved in December 2013, up to 30th June 2014.

1 The Project subsequently also received funding from the Government of New Zealand through which a host of complementary activities were carried out to augment both NDLP and the Rebuilding Agricultural Livelihood Project funded by the Government of Canada that were ongoing at the time. Further details on this are available on pg.22.

On 30th November 2013, UNDP submitted a detailed progress report describing all activities carried out until the said date. While supplementing the aforementioned report in terms of activities carried out since then, particularly during the period of the NCE, the primary focus of this Final Report is to provide an overall analysis of the outcomes and impacts of the project in its entirety.

Programme Design and Planning Despite the fact that the war had ended three years before the start of this Project, the target geographical locations still faced numerous challenges in terms of recovery. Projects that were started during the immediate post-war phase, therefore needed to be mindful of the need to both address recovery gaps as well as work towards more forward-looking development goals. As such the RALP project, under the overall umbrella of TRP had begun the task of addressing the dual needs that prevailed, in collaboration also with the Food and Agriculture Organization (FAO.) Market analyses carried out under this project proved invaluable in the design and planning of NLDP as well and augmented the NLDP design and implementation process right from the onset. Thus, UNDP’s approach was to promote enterprise development within local markets with a more commercial outlook, through the introduction of technology for production and business-oriented organizational practices and marketing. Market analysis reports re-iterated the economic influence of large companies in local economic development processes, while also pointing out to the fact that resettling communities themselves were predominantly returning to subsistence-based livelihoods. As such, it was becoming harder for them to resume economic activity and capture the fruits of post- war development. Within this context, UNDP recognized the importance of Producer Organizations (POs) in carrying out a wide range of functions; from production and collective marketing, to service delivery and advocating for improved policies on behalf of its members. Thus, the Project’s trajectory was to support these organizations to become engines of economic growth within their communities.

i. These sectors being the primary and secondary sources of income for a majority of those living below the poverty line in the targeted areas. ii. Improved production, processing and value-addition within these sectors would cater to a growing market demand, thereby generating livelihood opportunities for vulnerable communities, particularly women and youth, and increase the availability and affordability of food locally. iii. There were opportunities to promote representation and interaction between and within communities and POs with multiple identities by promoting livelihood opportunities within these sectors. iv. There were opportunities to replicate and scale-up impact by engaging in these sectors.

An initial planning workshop was held with UNDP project staff from Colombo and the target districts. The workshop enabled participants to develop a shared understanding of the concept of NLDP and agree on an implementation plan.

Criteria were developed to prioritize livelihood sectors with a focus on: growing market demand (at local, regional, and national levels); promoting economic leadership of women and youth; cross- ethnic representation; vulnerability to disasters; and inclusion of a large majority of low-income households. Criteria were also developed for the appraisal and selection of POs based on their organizational governance and management practices; capacity of grassroots members; legal structure; and production, marketing and business management capacities. Furthermore, with a view to increasing the impact of interventions through synergies with ongoing UNDP interventions, the following 3 focus areas were selected as entry points for identification of interventions:

 Focus Area 1: POs currently supported under the existing interventions of UNDP in selected sectors such as paddy, fishery, dairy and palmyrah are further supported to scale-up their operations for greater impact with a focus on women, youth and socially and economically excluded communities.  Focus Area 2: New POs/enterprises engaged in the above target sectors are identified and supported with a view to strengthening these PO’s through increased production, processing, value-addition and marketing.  Focus Area 3: Enterprise development and employability promoted in non-traditional sectors, where households have not been deriving their primary and secondary sources of income and where there is potential for them to develop high-value livelihoods in the future, thereby moving from primary production sectors to secondary and tertiary sectors.

This was followed by a joint mission by UNDP and FAO, together with the respective Government officials attached to the Divisional Secretariat (DS) office and departments of agriculture, livestock and fisheries, in the districts, in August 2012 to meet with POs that UNDP could potentially engage with within the focus areas referred to above and in keeping with the selection criteria. The mission led to the identification of potential interventions to be implemented under the Project’s logical framework.

Following the joint mission, UNDP Field Offices in Jaffna and Killinochchi/Mullaitivu carried out further discussions with the identified POs as well as relevant stakeholders including the Office of the Assistant Commissioner of Co-operative Development, government technical departments (such as Agriculture; Agriculture Extension; Fisheries and Aquatic Resources and the Palmyra Development Board) and other development agencies [FAO and International Labour Organization (ILO)]. Through these discussions the following 5 sub-project proposals2 were developed:

Table 1: List of Sub Project Proposals developed under NLDP

No. Sub-Project Proposal Title Location of Impact- Focus Estimated District/Divisional Area Budget Secretariat Division (LKR) (DSD) 1 Strengthening the collection, processing and Jaffna district marketing capacities of agriculture producer (Thenamarachchi 1 7,406,000 organizations in the dairy and palmyrah DSD and Valikamam sectors in Jaffna. South West DSD) 2 Improved processing, marketing and business Jaffna district management capacities of producer (Chavakachcheri 2 organizations engaged in the paddy, DSD, Kayts DSD and 33,760,000 palmyrah and fisheries sectors in Jaffna Karainagar DSD) district.

2 The 5 sub project proposals were implemented through the 15 identified POs.

3 Strengthening the technical and managerial Kilinochchi district capacities of producer organizations and (Karachchi DSD and 1 11,350,000 promoting economic leadership of women Poonakary DSD) and youth in the paddy and fisheries sectors. 4 Strengthening the technical and managerial Kilinochchi district capacities of producer organizations in the (Kandavalai DSD and 2 24,214,836 palmyrah and dairy sectors. Poonakary DSD) 5 Facilitating the business development of Mullaitivu district fishery and paddy-based producer (Maritimepattu DSD, 1 52,708,690 organizations and their member-suppliers Puthukkudiyiruppu through provision of inputs; technical and DSD, Oddusuddan business management capacity development; DSD, Manthai East and market linkage support. DSD and Thunukkai DSD)

These sub-project proposals were approved by the District Review Board of each district which is chaired by the Government Agent/District Secretary and includes relevant DSs and government department representatives. Throughout the Project they functioned as a dialogue and partnership mechanism, providing inputs into planning, implementation and monitoring of interventions as well as to address issues and challenges.

Progress against Outcomes

Outcome 1: Increased production, processing and value-addition capacities, and access to markets and services in target communities.

Fifteen POs were identified from within the paddy, fisheries, dairy and palmyrah sectors. Micro Capital Grant Agreements (MCGAs) were entered into with each of the POs to provide either one or more types of support. The table below lists the selected POs. Table 2: Producer Organizations supported by NLDP

Name of the Producer Organization Sector Location

1. Livestock Breeders’ Co-operative Society, Chavakachcheri Dairy Jaffna (CLIBCO) 2. Pandaththeruppu Palmyrah Development Cooperative Society Palmyrah Jaffna Limited (PPDCS) 3. Thenmarachchy East MPCS Ltd, Kodikamam (TMPCS) Paddy Jaffna

4. Kayts Palm Development Co-operative Society Ltd (KayPDCS) Palmyrah Jaffna

5. Ambal Fishermen’s Co-operative Society Ltd (AmbFCS) Fisheries Jaffna

6. Integrated Farmer’s Thrift and Credit Cooperative Society Seed Paddy Mullaitivu (IFTCCS) 7. Maritimepattu Multi-Purpose Co-operative Society Ltd (MMPCS) Paddy Mullaitivu 8. Maritimepattu Fishermen Cooperative Societies Union Ltd Fisheries Mullaitivu

(MFCSU) 9. Panankamampatu Multi-Purpose Co-operative Society Ltd Paddy Mullaitivu (PMPCS) 10. Poonakary Fisheries Co-operative Society Union (PFCSU) Fisheries Kilinochchi - Ashok Ezhuchchi Kudirruppu Fisheries Cooperative Society (AskFCS) - Kumulamunai St. Anthony’s Fisheries Co-operative Society (KFCS) 11. Karachchi South Multi-Purpose Cooperative Society (KMPCS) Paddy Kilinochchi

12. Iranaimadu Fresh Water Fisheries Cooperative Society (IFCS) Fisheries Kilinochchi

13. Kilinochchi Palm Development Cooperative Society (KPDCS) Palmyrah Kilinochchi

14. Poonakary Livestock Breeder’s Cooperative Society ( PLIBCO) Dairy Kilinochchi

The following is a summary of key improvements that were then introduced through the Project interventions to the POs within the four sectors of dairy, paddy, fishing and palmyrah.3 The interventions were a mixture of hardware support including infrastructure and equipment, as well as trainings, mentoring and exposure fairs and visits. All POs also received business development support and organizational capacity development and mentoring, which will be discussed in greater detail under Outcome 3 below. Thus, support was designed to be holistic and contribute towards the overall growth of these organizations as business entities as well as contribute towards the development of their members and the communities they are a part of.

Dairy sector: A milk collection network was established for the PLIBCO and linked with Nestle Lanka Pvt Ltd. The Project also introduced methods to improve milk production and begin value-addition processes. Learning visits and in-house trainings were conducted, where dairy producers learned how to enhance production and make value added-products such as curd, yoghurt, milk toffee and faluda4. They also learnt how to improve hygiene and extend the shelf life of their products. PLIBCO was also supported to set up a milk collection centre in Mulankavil, with the space to fix a cold storage unit and another milk collection centre was set up in Karachchi. The Project also provided the PO with two, three-wheelers for milk transportation.

Under RALP, the CLIBCO received support to set up a milk processing centre. Under NLDP, the PO has been able to increase and systematize milk collection and enhance value-added milk product processing with the help of new equipment. Equipment included two deep freezers for production of popsicles, a ghee separator, a milk boiling unit and 160 milk collection cans for promoting cleaner milk collection amongst farmers. Additionally, sixteen dairy farmers attached to the CLIBCO, received cows and milk storage equipment from FAO, which enabled them to supply milk to the Co- operative.

Paddy sector: The Project provided support to the IFTCCS for improving production and processing capacity for quality seeds as complementary support to RALP activities conducted earlier, which included the provision of storage space and equipment. Seed processing equipment was provided under NLDP

3 A detailed list of all activities carried out, together with the numbers of beneficiaries is provided in Annex 1. 4 A milk-based drink.

11 and a total of 1195 farmers including 10 women were trained either on seed paddy production or groundnut seed production or both. Fifteen members including four women were trained on operation and maintenance of machinery. All these trainings were coupled with a learning visit to the CIC Model Farm in Dambulla.

The PMPCS received a rice mill and rice milling equipment, while the KMPCS rice processing area was renovated and new machinery for processing provided along with training for its members.

Fisheries Sector: Fifty boats were provided to 50 members of the AskFCS and KFCS through the PFCSU. This has created a permanent livelihood for 100 fishermen. An ice factory was constructed for the AmbFCS, together with an ice making plant. Ice production has since commenced. The Project also provided the society with a cooler truck and value addition training on fish-based products for women members. Additionally, the women were also provided with a drying pan with solar power to ensure hygienic and quick drying of the fish. Image 1: Boats provided under NLDP to local fishermen in Poonakary, Kilinochchi District. Palmyrah sector: Interventions were primarily designed to promote production of jaggery and through this reduce the amount of toddy produced. Production of jaggery has numerous benefits both economical as well as social. Toddy collected by the toddy tapping community is seldom sold in its entirety. Much of it is thrown away and the rest consumed by the tappers leading to a host of social issues within their community. The intervention promoted the collection of sweet sap, a variant of the toddy which can be converted into jaggery. The Project also enhanced the POs’ capacity to purchase the sweet sap, making it lucrative for both the POs as well as producers. In addition the production of ‘pinnatu’ a kind of dried sweet derived from the palmyrah fruit was also enhanced. To this effect, the Project supported three POs namely, the PPDCS, KayPDCS and KPDCS. Support provided to these three Palmyrah Development Co-operations, was in the form of infrastructure including the construction of a 500 square foot building for the collection of sweet toddy and raw materials for the PPDCS and equipment for sweet sap, jaggery and pinnatu production. There have also been ongoing negotiations with Cargills Ceylon PLC, the largest supermarket chain in the country, to purchase sweet sap from the KPDCS as well as provide additional tools and equipment for the value addition process. UNDP facilitated links with Cargills and also provided the PO with the capacity to undertake further negotiations in the future. At the time of reporting, the PO was confident that a tangible agreement would be reached in the near future.

******* As a result of the interventions described above, the POs have seen a host of changes, including the introduction of 19 new products into the market and enhanced production and sales of existing products. This has in turn positively impacted the members of these organizations and the local communities as a whole. Two months following the completion of the Project, UNDP staff conducted an internal evaluation of results achieved following the Project’s interventions. Findings of this

5 This number includes members who participated at both trainings and so, participants have been double counted.

12 evaluation will be elaborated upon throughout the body of this report. It must be noted however, right at the onset that impacts described herein are also attributable to the support provided under RALP, particularly in the case of the following POs:

 Chavakachcheri Livestock Breeders Cooperative Society  Integrated Farmer’s Thrift and Credit Cooperative Society (IFTCCS)  Karachchi South Multi-Purpose Cooperative Society  Maritimepattu Multi-Purpose Co-operative Society (MPCS) Ltd  Pandaththeruppu Palmyra Development Cooperative Society Limited

******* In regard to Outcome 1, the evaluation noted that there has been a significant percentage increase in production levels of existing products and a high production level for new products. Table 3 below lists changes in productivity as well as production of new products, all of which are directly attributable to interventions under NLDP and RALP.

Table 3: PO Productivity Levels

Production Production Producer % Difference Product Before the After the Organisation in Production Project Project Milk Collection (Litres) 7,400 25.000 238% Curd (Litres) 45 231 413% PLIBCO Yogurt (Cups) 0 250 New Product Lolly Juice (Packs) 475 17,500 3584% Ghee (Bottles) 12.5 42 236% Fresh Milk (Litres) 44,638 43,623 -2% Yogurt (Cups) 555 560 1% CLIBCO Milk Toffee (Units) 2,576 12,835 398% Milk Lolly (Packs) 36,458 85,170 134% Seed Paddy (Kg) 0 5,341 New Product IFTCCS Ground Nuts (Kg) 0 8,521 New Product KMPCS Rice Processing (Kg) 0 600 New Product MMPCS Rice Processing (Kg) 0 600 New Product PMPCS Rice Processing (Kg) 0 600 New Product Red Rice Flour (Kg) 0 754 New Product TMPCS Roasted rice Flour (Kg) 0 155 New Product Nutritional Flour (kg) 0 140 New Product Dry Fish (Kg) 0 564.50 New Product AmbFCS Ice Cubes (Kg) 0 9447 New Product Fish Catch (Kg) 31,250 37,500 20% AskFCS6 Motor Repairs (#Engines) 12 30 150%

6 Please note the KFCS was not surveyed, for purposes of the internal evaluation, but results for AskFCS are indicative of KFCS as well because they both function under the umbrella of PFCSU.

IFCS Dry Fish (KG) 25 720 2780% Dry Fish (Kg) 0 14,000 New Product MFCSU Ice (MT) 100 300 200% Jaggery (Kg) 0 851 New Product KayPDCS Handicraft Items 0 144 New Product KPDCS Jaggery (Kg) 90 6,789 7443% Jaggery (Kg) 475 1,196 152% Pinatu (Kg) 0 17 New Product Pani Pinatu (Kg) 0 14 New Product PPDCS Odiyal Flour (Kg) 0 47.75 New Product Pulukodiyal Flour (Kg) 0 302 New Product Boiled Kelangu (Units) 0 377 New Product

Image 3: CLIBCO ghee Image 2: PPDCS jaggery

Image 5: IFTCCS seed paddy Image 4: Amabal FCS dried fish All POs also noted that they managed to sell close to 100% of all their products. This meant that increased production had translated into increased income as well. Table 4 below, shows the levels of income reported by each of the POs before and after interventions. Please note that these income levels, as represented in Table 4 are only from products/practices that were directly impacted by UNDP Project interventions i.e. the POs may have other forms of income including from shops, petrol sheds etc. Figure 1 below also illustrates the same data presented in graphical form. Part of the larger figure has been magnified for easy reference of data demonstrating changes in income levels for POs whose income levels are less than Rs. 2,000,000.

Table 4: Income levels of POs before, during and after project interventions

Producer Before the 6 months after Sector Project End (LKR) Organization Project (LKR) (LKR) PLIBCO 97,938 238,798 369,250 Dairy CLIBCO7 4,416,410 3,689,565 4,342,120 IFTCCS 0 225,000 300,000 KMPCS 0 31,500 51,000 Agriculture MMPCS 0 36,000 39,000 PMPCS 0 26,000 32,000 TMPCS 0 69,507 109,265 AmbFCS8 2,845,673 2,643,427 2,723,542 AskFCS 5,000 150,000 216,000 Fisheries IFCS 0 6,000,000 7,200,000 MFCSU 0 11,250,000 11,250,000 KayPCS 0 372,000.00 421,000.00 Palmyrah KPDCS 54,000 315,000 2,835,000 PPDCS 432,410 572,400 1,125,450

1,200,000 PLIBCO

IFTCCS 1,000,000 KMPCS 800,000 Trend in the Income levels of MMPCS Producer Organisations 600,000 PMPCS

400,000 TMPCS 12,000,000 AskFCS 200,000 KayPCS 10,000,000 - PPDCS

Before 6 months After Project 8,000,000 Project after PLIBCO CLIBCO 6,000,000 IFTCCS KMPCS

MMPCS PMPCS 4,000,000 IncomeMonth) (LKR/ TMPCS AmbFCS 2,000,000 AskFCS IFCS MFCSU KayPCS - Before Project 6 months after After Project KPDCS PPDCS

Figure 1

7 CLIBCO saw a decrease in income levels following the initiation of the Project due to certain difficulties faced in transitioning into a business entity. There was also a change in management during the initial phase of Project implementation. The PO however, has since recovered and income levels are currently on the rise. 8 Fish catch in the seas off the Jaffna peninsula has seen a steep drop lately. This has resulted in lower levels of income for the AmbFCS.

In addition to the changes visible within the POs, PO members have also begun to see tangible benefits trickle down either through targeted Project interventions, such as the parboiled rice processing sub-project and dry fish making for women, or as a result of enhancements made to the services offered by the POs where for example, the POs are able to purchase directly from the producer members at a higher price than that offered by third parties.

As part of the project evaluation, UNDP met with 136 beneficiaries (80 Men; 50 women) including 33 youth and 30 women heads of households (WHH) who had either directly or indirectly benefited from Project interventions. Findings pointed to enhanced income levels that had in turn led to an improvement in the socio-economic wellbeing of these individuals and their families.

Table 5 and Figure 2 below illustrate the level of increase in income that the sampled beneficiaries reported. Of the 136 individuals interviewed, 26 had no previous income. This group now earned an average of Rs. 9,127 (income ranging between Rs. 1,000-75,000.) Those who did have a previous income (n=110) saw their income increase by an average of 57% (income ranging between Rs. 1,160-166,667).

Table 5: Increase in income of beneficiaries

No Previous Income With Previous Income Income Income After Income Before Income After % Before (LKR) (LKR) (LKR) Increase Total 0 9,127 Total 19,578 30,821 57% n=26 (1,000-75,000) n=110 (900-27,000) (1,160-166,667) Male 0 13,333 Male 25,115 39,315 57% n=3 (3,000-75,000) n=78 (10,000-15,000) (1,160-166,667) Female 0 8,578 Female 6,080 10,117 66% n=23 (1,000-25,000) n=32 (900-27,000) (3,000-40,000) Youth 0 6,487 Youth 11,722 27,583 135% n=15 (1,000-30,000) n=18 (900-15,000) (5,000-66,000) WHH 0 9,444 WHH 6,944 17,467 152% n=9 (1,500-30,000) n=11 (1,000-20,000) (3,000-60,000)

Figure 2

Findings also point to a significant impact on women, particularly Increase in income of beneficiaries who had WHH and youth, who were no income prior to project intervention actively targeted by the Project

20,000 and who consequently either 18,000 have incomes for the very first 16,000 time or have seen a dramatic 14,000 Total increase in previous income 12,000 levels. Positive impacts of this on Male 10,000 the lives of these vulnerable Female 8,000 groups, will be discussed further 6,000 Youth under the gender section. Figure 4,000 3 and 4 provide a disaggregation WHH 2,000 of the same data by livelihood

Increase income in (LKR/Month) 0 sector. Fisheries Palmyra Agriculture Dairy

The evaluation also pointed out Figure 3 that 75 individuals or 55% of all respondents have begun to save, while 32 individuals or 24% of respondents have bought % Increase in income of property or assets such as beneficiaries motorcycles and jewellery. All respondents also noted that they 350% now have more money to 300% educate their children and their overall confidence and self- 250% Total esteem improved. This was 200% Male particularly the case for women, who said they now felt more 150% Female independent. Furthermore, Youth youth in particular also noted 100% %increase income in WHH that their image within their 50% communities improved as they were now seen as worthy 0% entrepreneurs or contributors to Fisheries Palmyra Agriculture Dairy their families and villages. Figure 4

Outcome 2: Increased employability and skills development with a focus on youth and women

Dairy sector: The PLIBCO created new jobs within the organization as well as self-employment avenues within the local community particularly as a result of the extension of its milk collection network and promotion of value addition products. Additionally, UNDP has engaged in discussions with relevant stakeholders and networks at national and field levels, such as ILO, World Vision International, International Finance Cooperation (IFC), USAID and the Development Partners Private Sector Working Group, to build an understanding of the assessments and projects that are being planned or

17 implemented and develop synergies to promote employability and enterprise development in target areas.

Paddy sector: Interventions were identified to strengthen the production and marketing of high-value by-products such as hand-processed rice, rice flakes, and rice flour, with the potential to generate self- employment opportunities. The TMPCS members were trained on paddy production; two trainings on advanced value addition were completed and a separate women’s group was mobilized through the Project to pursue this production process. The production area for the women’s group was refurbished and production has begun. A consultation process was also undertaken to formalize an agreement between the Co-operative and the women/youth suppliers.

Fifty five women from the KMPCS, PMPCS and MMPC were trained in rice processing through in- house training and an exposure visit. They were supported to develop their business plan and provided with inputs to start up the business. The parboiled rice produced a high demand from consumers due to its unique flavour, and it is currently being marketed through local Multi-Purpose Co-operative Societies (MPCS) through their Mini Coop Cities9.

Fisheries sector: A youth in Mullaitivu was supported to establish an enterprise for the provision of out-boat-motor engine repair and maintenance services which would significantly reduce the costs of boat maintenance for local fishermen in target areas. An agreement was entered into with the youth which included a commitment on his part to train and employ two more youth in his service centre for a period of 12 months. This commitment has been fulfilled by the youth.

Additionally, new and improved production techniques and technology have been introduced to move women producer groups from subsistence-based livelihoods to market-based livelihoods and to formalize their engagement with POs as contract suppliers of dried and processed fish. The expansion of value-addition activities will also generate new employment opportunities within the POs in the areas of production management, collection, quality assurance and marketing. Trainings were conducted on fish handling and fish marketing techniques and production of dry fish and fish- based products (such as fish papadam and prawn pakoda) for the AmFCS. The AmbFCS has started to market its produce using a business logo and labels which were developed with the support of the Business Development Service (BDS) provider. Members of the AmbFCS have also begun to receive a fair price for their catch due to the cooler truck transport facility supported by this Project and are able to transport fish direct to the market, thereby reducing the dependence on the middle man.10 A three-year business plan was developed for the Fisheries Cooperative Society (FCS), with the assistance of CEFE Net Sri Lanka coupled with business counselling and management training.

Seventy five women attached to the FCSs in Killinochchi and Mullaitivu were trained on dry fish value addition and were provided with driers to start up their own businesses. The training improved the quality (for example the colour, smell and shelf life) of the dry fish as well as the efficiency in production (the drying time was reduced from 2 ½ days to 1 ½ days). The quality and cleanliness of production has also contributed towards increased demand for this product.

Palmyrah sector: A sweet toddy processing centre was constructed for the KayPDCS to promote sweet toddy collection and value added product production such as jaggery and treacle. A market survey on the palmyrah sector was completed which centred on the current situation of the palmyrah sector and

9 Mini Co-op Cities are small shops run by the MPCSs. 10 The purchase of a cooler truck for the Ambal FCS was co- funded by UNDP and the FCS.

18 the potential opportunities that were available. This was shared with the relevant stakeholders. Mentoring and counselling support services were also initiated for the three POs, i.e. PPDCS, KayPDCS and KPDCS. Awareness raising trainings on sweet toddy collection standards and value- addition machinery was also carried out. Forty three women from the KayPDCS were trained on the basics of weaving palmyrah handicrafts for six months and were provided with necessary equipment to continue with the income generating activity. Twenty seven of these women received further training from the National Design Council on advanced designing.

***** Overall, in addition to the self-employment opportunities created, the Project also created 59 new jobs for individuals across the 15 target POs. These jobs ranged from managerial posts to those involved in product packaging and sales. Priority was given to vulnerable individuals such as WHH and youth, including ex-combatants. Figure 5, below shows the number of jobs created and disaggregates them according to sector, gender and youth.

New Employment Opportunities Created with POs

50 Total 40 Male 30 Female 20 Youth

10 # of # new employmentopportunites 0 Overall Fisheries Agriculture Palmyra Dairy Sector Figure 5

Outcome 3: Business management principles, practices and processes promote inter- and intra- community relations

The sub-project proposals identified interventions to support Managers and leaders of the selected POs with awareness raising and sensitization opportunities on the importance of strengthening linkages with women and youth for value-addition and management roles, as well as complying with applicable labour laws and regulations. Based on the market and PO assessments, the POs were

provided with a 5-day training to formulate a three-year business plan to capture market opportunities and strengthen their capacity to meet the demand. The POs also received management capacity training. Following the development of the business plans and trainings, all POs received extensive on-the-job support and mentoring from the BDS providers.

When PO committee members (n= 53, male 49, female 4) staff members (n= 15, male 3, female 12) and ordinary members (n=33, male 26, female 7) Image 6: TMPCS Stall at the Jaffna International Trade were interviewed for purposes of the Fair evaluation, a majority (88 %) noted that they were ‘fully satisfied’ with the technical services provided. Similarly a majority (71%) were ‘fully satisfied’ with the organizational changes brought about by the Project. Reasons provided for the positive feedback included the more effective human resource and financial management systems that were introduced as part of the Project and were now in place and the overall functioning of the organization like a business entity, which had in turn resulted in the use of technology and new processes to maximize profits. A few respondents also noted that they were satisfied with the move to incorporate more women and youth into the organization. Overall, everyone felt the trainings had been valuable for the leadership and membership of the organizations, and helped them move towards greater efficiency. The rest of the respondents, who said they were ‘somewhat satisfied’, noted the same points, but said there was room for improvement and that it was too early to say if the changes will be sustained.

This Outcome also specifies the Project’s aim at promoting greater intra- and inter-community cohesion. In this regard, the Project aggressively pushed for greater women and youth participation within the POs, specifically targeting them for many of the interventions and also engaging them in management processes. The interaction among members, especially female members, Board of Directors and the staff, has increased due to Project interventions. This proved especially useful to women who are able to meet other women and share their views and experiences. In addition, women were able to create a niche for themselves in organizations that primarily consist of male members, by showing that they can be productive members within these structures. Findings of the evaluation vis-à-vis gender are described in greater detail under the section on gender below.

20 has been a change in perception within and towards their communities. They are no longer seen as suppliers of intoxication and have also moved away from consuming the excess toddy that is tapped. This has resulted in a gradual recognition and acceptance of the profession from the wider society. The Project, as a result was also able to include young members in these initiatives, whereas previously young people were wary of being associated with any palmyrah related livelihood. In order to create cross sectoral and cross community ties, the Project also took steps to network POs with organizations supported through previous UNDP projects. For example, the Project facilitated linkages with between KayPDCS and the Jaffna Palmyrah Handicrafts Guarantee Ltd. (established under RALP) to supply the Guarantee Limited with products. Similarly, as mentioned above the Project also conducted several exposure visits for POs members both within and outside their home districts to share experiences and learn from other organizations that had become successful models within their respective sectors.

Complementarity between projects and collaborative project implementation 1. Capacity Development for Recovery in the North ( CADRIN) The CADRIN Project (which ended in June 2013 and was also supported by the Government of Norway) worked with decentralized governance institutions to strengthen their capacity to provide efficient service delivery and implement the Citizen’s Charter. CADRIN also worked with Community Based Organizations to enhance their capacity to access and liaise with service providers and become integral stakeholders in the post-war development process. As such, three of the POs targeted under NLDP had been provided with organizational capacity development support through CADRIN. The three POs were:

 IFTCCS and their member organizations, including Kallapadu Farmer Organization, Kumulamunai Farmer Organization, Mulliyavalai East Farmer Organization, Thanneeruttu East Farmer Organization, Vattapalai Farmer Organization and Unnapilavu Farmer Organization.  KMPCS  Fishery Cooperative Society Union Mullaitivu and their member organizations, including Alampil Fishery Cooperative Society, Vannankulam Fishery Cooperative Society, Silavathai Fishery Cooperative Society, Semmalai Fishery Cooperative Society and Kovil Kudiyiruppu Fishery Cooperative Society.

Support provided included strengthening the management and leadership capacities of the BOD and selected members in the areas of financial management, proposal formulation, conflict resolution, savings and revolving loan fund management, entrepreneurship and marketing. Furthermore, CADRIN also established and facilitated dialogue and networking forums for communities and other stakeholders including government officials, to discuss development issues. Additionally, the Vattapalai Farmer Organization, a member of the IFTCCS, was provided with a grant for income generation activities for its farmer-members.

2. RALP As discussed throughout the body of this report, RALP was a crucial counterpart to NLDP. Indeed the two projects cannot be discussed to the exclusion of each other. Much of the ground work that went into the design and start-up of NLDP, including market assessments, were carried out under RALP. Similarly the impact of RALP owes a great deal to NLDP due to the added support provided under the Project to five POs, namely:

 Chavakachcheri Livestock Breeders Cooperative Society  Integrated Farmer’s Thrift and Credit Cooperative Society (IFTCCS)  Karachchi South Multi-Purpose Cooperative Society

 Maritimepattu Multi-Purpose Co-operative Society (MMPCS) Ltd  Pandaththeruppu Palmyrah Development Cooperative Society Limited

Thus, while RALP put in the ground work, NLDP was able to augment support provided thereby maximizing impact and sustainability. The collaboration between the two projects therefore provides a useful model for developing strong synergies across multi-donor funded projects as well as to advocate for a progression beyond piecemeal support towards a more comprehensive programmatic approach.

3. New Zealand Funding for NLDP In 2012, the Government of New Zealand informed UNDP that NZ$750,000 was made available for the 2011 livelihood recovery initiative as flood response for affected districts in Sri Lanka. Considering the lapse in time since when funding was flood relief was sought and these funds were allocated, UNDP Sri Lanka requested approval from the Government of New Zealand to re- programme the grant under NLDP, ensuring and providing critical complementarity support to the on-going Project.

The following are some of the activities under NLDP that were supported through the funding provided by the Government of New Zealand, which contributed significantly to the overall achievement of results under NLDP. Table 6: Support funded by the Government of New Zealand

Producer Type of Support Organization CLIBCO: - Provision of milk boiling unit - Provision of two medium sized deep freezers - Provision of 160, five-litre milk cans - Provision of a cream separator PPDCS - Provision of a cooler truck for plant sap and sweet toddy collection and transportation. TMPCS - Provision of value-addition machinery and equipment for par boiled rice making. - Technical training for women and youth engaged in value- addition product processing. KayPDCS - Facilitation of purchase arrangements between the Co-operative and women/youth suppliers. - Technical trainings on improved practices for production and quality management. - Awareness raising and sensitization for members and Board of Directors (BOD) on the importance of engaging women and youth in value-addition and business management, as well as complying with applicable labour laws and regulations. AmbFCS - Provision of ice-making facilities: ice cube-making plant, accessories and installation structures. - Provision of marketing facilities: Diesel 2.0 Ton Payload Cab Chassis with locally fabricated full aluminum cold storage truck for marketing. - Facilitation of arrangements between the Co-operative and women dry fish producers. - Technical trainings to improve the quality of production and processing.

- Awareness raising and sensitization for members and BOD on the importance of engaging women and youth in value-addition and business management, as well as complying with applicable labour laws and regulations. IFTCCS - Support for seed production on 100 acres of paddy land. MMPCS - 50 women involved in parboiled rice production were provided with training and inputs such as boilers, pans and special cooking hearths. MFSCU - 50 women were provided with training and driers for dry fish making. KPDCS - Provision of processing equipment and tools for jaggery production. PLIBCO - Provision of an allowance for three community animators to mobilize communities for the purpose of periodic community consultations as well as activity implementation. PFCSU - Provision of 50 boats for the benefit of 150 fishermen. KMPCS - 25 women involved in parboiled rice production were provided with training and inputs such as boilers, pans and special cooking hearths. IFCS - Provision of training and inputs for 25 women on dry fish making.

Good Practices and Lessons Learned 1. Understanding the local context a. Implementation strategy When designing and implementing interventions for different industry sectors across districts, it is important to remember that thorough understanding of the context is vital: from the pace of recovery taking place in each of these districts to varying needs of the local population, the key to achieving sustainable results is in consistently adjusting the Project to reflect context-specific knowledge which is gained over the course of Project implementation. For example, throughout the duration of NLDP, the market situation continued to change, calling for UNDP to adjust its approach to ensure the Project remained relevant. For instance, although the same sectors (paddy, fishery, dairy and fruit) were targeted in all of the districts in the Northern Province, in Mullaitivu the interventions focused more on infrastructure, as the local population had just returned to the region, they were still very much in the recovery phase and thus in need of critical infrastructure development support.

The identification of local institutions and/or PO structures that would work best depending on the task at hand was also important. In the case of NLDP, working with POs and strengthening their capacities was essential to deliver the interventions within an early development context. Working with Co-operatives as POs, UNDP introduced a business outlook into the co-operative bodies that were previously primarily welfare driven. This was an attempt to expand the outreach and benefits of the co-operatives while infusing them with the tools, skills and approaches to survive in a market- driven economic environment.

b. Use of primary/secondary sources of information to inform project design UNDP’s key priority under NLDP was to improve the livelihoods of communities within the target districts, and provide them with the required tools to sustain individual and group livelihoods and businesses, going beyond the timeframe of the Project. In this regard, market assessments and professional business consultations were helpful in identifying key entry points in areas of human resources development, infrastructure investment and technology inputs. In addition to the surveys

23 and consultations, UNDP continued to engage in dialogue with beneficiaries, BODs of the POs and other stakeholders to adjust the activities to each localized context in order to maximize results and maintain relevance.

2. Partnerships and networks Taking on board lessons learnt from UNDP’s past experience, certain elements that required particular attention when designing detailed Project activities were identified. For instance, in regards to high transaction costs that often hinder development of local markets, opportunities to partner with national agencies and private sector entities (e.g., BDS providers) were actively explored. Furthermore, organizing forums with different stakeholders—POs, decision-makers, service providers, potential buyers and others—made full use of UNDP’s convening and brokering power, and enabling key players to meet and discuss their problems and plans together.

a. National level partnerships The Project coordinated with national agencies such as Sri Lanka Standards Institute (SLSI), Industrial Technology Institute (ITI) and the Industrial Services Bureau (ISB) from its inception. The expertise of these institutions was drawn on to introduce new production technologies and marketing strategies to local POs. Furthermore, continuous support was provided throughout the adoption and application of these new processes. The result of this has been a marked improvement in the quality of the final products, which are on their way to meeting national standards. Best practices in product labelling inclusive of manufacturing and expiry dates, have also raised the products’ marketability outside the Northern districts.

It must also be noted that each of the national partners provided complementary support to POs; for example, ITI provided support to improve product quality while ISB supported the process flow of production. Thus, UNDP played a coordinating role in ensuring partners worked together towards a final product. In order to do this UNDP facilitated this inter-partner coordination early on, so as to avoid any anticipated delays. As a result of this pre-planning, partners were able to enhance the production cycle as a whole.

b. Private sector partnerships Partnerships with private sector entities were developed, including an informal agreement between PPDCS and Cargills Ceylon Limited, for the supply of palmyrah sap for treacle production and with Nestle for the purchase of surplus milk.

Nonetheless, these partnerships require continued monitoring even after the completion of the Project, to ensure they achieve their true potential and all parties involved benefit. For example, where tri-party arrangements have been made between the PO, a private sector organization, and the District Secretariat, the District Secretariat will take on the responsibility to monitor during and after the phase out of the Project. In its current and future projects, including NLDP III, UNDP will also be looking into the possibility of targeting smaller private ventures in the region to ensure sustainable development of the region’s local economy as a whole.

c. Inter-agency collaborative partnerships Collaboration between UNDP and FAO, originally established under RALP proved to be greatly beneficial for many of the POs across the sectors. FAO’s mandate and expertise in the area of primary producer capacity enhancement complemented UNDP’s focus on POs. This is illustrated in the case of the dairy sector sub-project in Jaffna. While FAO supported 16 vulnerable dairy farmers with milking cows and milk collection containers and also provided the CLIBCO with a milk collection vehicle and fat content testing equipment, UNDP worked with the same LIBCO to create value- addition products such as yogurt, curd and ghee. In the fisheries sector, FAO collaborated with UNDP

24 to identify suitable beneficiaries for dry fish making and contributed towards the training of the selected women. The success of these efforts points to the need for collaboration to be an imperative part of project design and as such, it would be prudent to utilize future opportunities to a greater degree to strengthen such efforts, particularly because the two agencies essentially carry out two components of the same initiative.

UNDP also collaborated with USAID. Technical expertise was sought from USAID for the parboiled rice interventions to introduce and provide up-to-date processing techniques to local producers.

These forms of collaboration are vital for the sustainability, impact and efficiency of development projects and as such will be pursued to a greater extent under the GLED Programme. .

d. Value chain partnerships UNDP has learnt that brokering linkages between different market actors including POs, service providers, decision-makers and potential buyers is important in order to achieve a wider impact. A power analysis, followed by relevant market analyses, provides a better understanding of the different interests of stakeholders, thereby building trust and strengthening relationships between market actors towards the establishment of sustainable value chain systems.

3. Integrating social cohesion aspects into livelihood development initiatives One of the key achievements of the Project has been its ability to reach out to particularly marginalized groups. The approaches adopted by the Project have always placed emphasis upon social inclusion, and exposure visits have ensured that diverse groups met and developed relationships across communities and geographical locations. The interventions of the Project have particularly led to an indirect yet positive social impact on the toddy tapping community. Traditionally a Image 8: Fish- based value addition training at Ambal highly discriminated group, based on their FCS caste and occupation, toddy tappers are often viewed as social outcasts. However, the growth of the palmyrah syrup and jaggery industry, has led to a gradual change in this community. The collection of sap is not viewed as negatively as the collection of toddy, thus those who collect sap are generally respected more within their communities. The increase in profitability of sap collection has also meant that a number of tappers now prefer to tap only sap and in doing so have gained a certain sense of legitimacy and social standing that they did not possess earlier.

4. Project phase-out and post project monitoring In the case of livelihood and economic development, the need for a post-project monitoring mechanism is high, in order to ensure sustainability of the actions undertaken. The NLDP experience demonstrates that some of the longer-term outcomes of activities may not begin to materialize during the Project’s lifetime as significant time is required to reach full impact. The transfer of technical and business skills to beneficiaries requires time along with continuous dialogue and follow up, even after the Project. This has been ensured through continued initiatives under the GLED Programme through its other projects.

Issues and Challenges 1. Co-operative regulatory frameworks reforms: UNDP’s experience has shown that POs play an important role in local economic development. While there have been notable successes, certain limitations continue to exist when working with these organizations, especially with Co-operatives, who are governed by a rigid regulatory framework. Most of the POs targeted under this Project are registered, regulated and supervised by the Department of Co-operative Development. Furthermore, all BODs of co-operatives have government appointed members. This increases the chances of interventions being made as a result of political influence. Co-operatives are also governed by the Co-operative Act. Thus, permission of the Assistant Commissioner of Co-operative Development at District level is required prior to most decisions being made. On the one hand this has resulted in greater accountability; however, requiring permission externally on certain policies, particularly with regard to fundraising, investment, recruitment of staff, salary levels of these staff, and use of assets, can stifle the independence of the POs and cause long delays in operations. This Project initiated the first steps towards reviewing the regulatory framework with a view to present recommendations for longer- term reform. Nonetheless, this is an area that needs more in-depth study to build a body of knowledge and understanding of alternative business models in order to advocate for change and promote enterprise development at a local level. UNDP on its part has been engaging both at the local and national levels on this issue, in order to advocate for a model that while preserving the social welfare model of the Co-operatives will also enable them to become sustainable business entities, thereby maximizing benefits for their members.

2. Increased competition in local markets: Through the provision of essential infrastructure and support for quality enhancement, the project paved the way for local POs and businesses to grow. However, local businesses still face challenges from outside investors which have been attracted to the Northern districts, particularly larger companies. For example, Cargill’s Ceylon Limited has opened an Ultra Heat Treated (UHT) milk storage plant in Meesalai in the Jaffna district. This pitted the supermarket giant and local CLIBCO against each other in a purchasing tussle for locally produced fresh milk. Naturally, the price for fresh milk increased while the price for the final product dropped. Thus to compete with the supermarket conglomerate, the LIBCO is now focusing on strengthening its links with the local community. As a district-based, local business, the LIBCO has been more than a profit-seeking entity from the start and served to provide social welfare services to its members, including medicines for livestock, and savings and loan schemes. Faced with direct competition against a big external player, the LIBCO is trying to win the confidence of local producers by promoting these aspects and expanding its services for its membership.

3. Capacity development of POs and government institutions: One of the main challenges to achieving sustainability is the lack of capacity and exposure of the Boards of the POs. While steps need to be taken to provide ongoing skills development and mentoring support, there is also a need to infuse young blood into the BOD. This may involve advocating for greater incentives to be provided for youth who come forward to take on more active roles within the POs. While developing the capacity of BODs is essential for the Project to succeed, this holds true for government officials as well. During the review conducted, the Co-operative Development Officers in Jaffna mentioned that they were not provided with the required technical knowledge to be able to report better on Projects - both to UNDP as well as to the relevant government departments that maintain records - particularly in instances where new technology had been introduced. They pointed out that it would be better to be involved in the PO capacity development process as well, as a means of also improving their knowledge and also being able to hold the organization accountable and point out to any errors or irregularities.

4. Climatic changes The Northern Province has faced a number of environmental challenges which have had a direct impact on the Project. Firstly, the region continues to face a prolonged period of drought which has affected the harvesting of crops as well as the inland fisheries industry. The fish catch in the seas off the coast of the Northern Province, was also said to be extremely poor over the last two years. With changes in climatic patterns becoming more evident, and demands on the natural world continuing to increase, future development initiatives will need to factor in these issues into Project design and development. As a result, there is also an urgent need to push for greater policy discourse on environmental sustainability.

5. Practical and logistical challenges NLDP ran into a number of practical challenges which resulted in some delay in the completion of activities. In June 2013, the UNDP global procurement procedures underwent review which had a bearing on the procurement process followed for the construction of three infrastructure facilities for the KayPDCS and TMPCS, in Jaffna and the PMPCS in Mullaitivu. Following the finalization of the new procurement procedures, contracting suitable technical contractors for the PMPCS proved to be a challenge, given its remote location and the poor responses received during the first round of call for bids. This process was repeated and competent technical contractors were secured only in October 2013. In addition, a period of seven months was spent on securing the necessary approvals from the Sri Lanka Army to hand over the Panankamam site in Jaffna to the respective PO, as the location was being used as a military camp. Furthermore, the location of the TMPCS in Kodikamam, Jaffna, required a change owing to environmental concerns. UNDP was able to resolve all issues which caused the delays and activities were completed during the second NCE period.

Application of Cross-cutting Themes During the design stage of NDLP, environment and gender were the key cross-cutting themes the Project decided to consider. In addition social cohesion was also an aspect that was promoted through its interventions. This section will detail how the Project sought to incorporate these cross- cutting themes and what the impact of this has been.

1. Environment: The Project was guided by environment-friendly and disaster-risk-reduction considerations, particularly because the districts targeted for support were already facing considerable environmental pressures due to post-war demands for land and natural resources. The region is also prone to both drought as well as flooding, both of which cause extensive damage to crops and those dependent on natural resources for their livelihoods.

An environment assessment team consisting of environmental specialists including those with expertise in the areas of disaster management and natural resource management, energy engineers, and agricultural engineers visited the selected POs to make recommendations on improving general environment-related practices. Their observations and analyses framed the Project’s activity plan; in particular the training plan. The specialists pointed out that, POs lacked even a basic knowledge of the environmental implications of their work, including safety and health regulations, effective waste and resource management practices, and pollution reduction skills and techniques. Thus, training programmes paid special attention to educating beneficiaries on environmentally sustainable processing activities in the fisheries and agricultural sectors. Training also extended to cover environmentally sustainable production processes. The Project selected eight themes on which training was provided, i.e. cleaner production, waste management, disaster management, emergency plans for cyclone and fire, basic firefighting training, occupational safety, resources management and good manufacturing practices. These initial measures helped raise awareness

amongst the POs, incorporate minimal waste into post-harvest techniques, and establish basic emergency plans in the event of a hazard.

There have been some clear signs of improvement and initiative is being taken following these trainings. For instance the PPDCS jaggery plant has convinced producers to minimize the use of calcium carbonate in palmyrah sap processing and has replaced phosphate with food grade phosphoric acid in the process of jaggery production.

Despite these developments and the enhancement of knowledge and awareness amongst PO members, in order for there to be a real change in production and processing practices, there needs to be a stronger regulatory framework. In this regard, UNDP has begun to advocate on these issues with local and national level government bodies to bring about policy changes.

2. Gender: As a result of years of war and displacement, women in the North were faced with a number of new challenges that retarded their capacity to recover. A large number of women had lost their husbands or other male members and were forced to become the sole breadwinners of their families despite having no prior experience, skills or training and also less access to credit. Given these pre-existing vulnerabilities and new security challenges faced in transition periods, there was a need to focus on women’s livelihoods and social wellbeing. It was also imperative to include them in local decision making Image 9: Milk- based value addition training at processes, a practice that is challenged by PLIBCO social and cultural inhibitions that are widely prevalent in the region. As such, encouraging women’s participation in local economies is one of UNDP’s key aims.

A gender-sensitive market assessment was the first step taken in this direction in order to identify the barriers that prevented women from Number of Beneficiaries entering the labour market. The study also looked at the opportunities that Reporting Contribution to HH were available. UNDP also gathered Income for the First Time gender disaggregated data at all points in order to assess women’s position relative 3 to men within the livelihood sectors/activities. Women were targeted Males specifically for the product value-addition Female trainings such as parboiled rice making, dry fish making and handicrafts. These trainings were held at flexible times, in 20 consideration of the roles and responsibilities of women in their homes. Participation was high, proving that women were indeed keen and committed Figure 6: to expanding their livelihoods, despite

28 additional responsibilities such as child care and household chores.

As noted above, under Outcome 1 findings of the internal evaluation point to a number of positive impacts, particularly vis-à-vis income and economic stability that the Project has had on women. 42% of the women who were interviewed were earning an income for the first time and those who had earned an income previously saw an average percentage increase of 66%, while for WHHs the average percentage increase was 152%. Furthermore, of the 23 individuals surveyed who noted contributing to household income for the first time following the Project’s interventions, 20 were women. Women noted that being able to earn an income and/or contribute to family income has made them feel more confident and worthy of themselves. They noted that it had empowered them to be able to make economic decisions within their families as well as their communities.

Table 7: Changes in PO membership

In a bid to encourage women’s participation in Average % Range in % decision-making forums such as PO-BODs, increase in increase of counselling and mentoring support was membership membership provided to the predominant male leadership of within POs within POs the POs, on the value of female representation Overall 11% 2% - 63% and participation. The internal evaluation also Male 12% 0% - 77% found that all POs11 had dramatically increased Female 9% 0% - 625% their female membership following Project interventions. The Kayts PDCS opened up its membership to women for the first time while other POs such as Ashok Ezhuchchi Kudigiruppu FCS and Iranamadu FCS have seen a very large increase in the number of female members. Table 7 above shows the percentage increase in the numbers. All the POs, except KPDCS, also have at least one female committee member at present and the overall number of female committee members went up from 15 to 20.

As mentioned above under Outcome 2 a number of the new recruits for jobs within POs were women. This is testament to the fact the POs have recognized the role of women and begun to include them in livelihood development initiatives. All PO committee members, staff and ordinary members who were interviewed for purposes of the internal evaluation, fully agreed that women and youth needed to be promoted in business. Everyone also stated that following UNDP supported Project interventions the PO had taken active steps to involve women and youth in business processes. Image 10: IFTCCS training on machine operation

11 The TMPCS’s overall membership (male and female) appeared to have gone down after the Project intervention. This however, is not a reflection on the Project. When the intervention started, the PO did not have a recent, up-to-date list of its members. They thus provided UNDP with a list from several years prior to the Project’s start date. A significant number of members on this list were no longer part of the Society. Many had died, or were displaced and others had simply dropped out. Thus a comparison between those figures and current figures is misleading. For this reason, the TMPCS was considered as an outlier and not included in the analysis of data.

Respondents nonetheless were less articulate on why they thought it was important to include women and youth in business and decision making process, providing a wide variety of responses ranging from the need to provide them with a source of livelihood to the fact that they made better financial managers. The terms equality or empowerment were not articulated pointing to the need for further work in this area. There were some responses, which did however note that women earning an income would make them less dependent on others and in turn help to reduce violence against women.

Further work is also needed in promoting women (and youth) to hold leadership positions within POs. Currently most POs have only one woman in their committees and that often appears to be because it is required by the bylaws that govern co-operatives. There are no attempts to promote equal representation, and often women who are in the committee are also forced to take a backseat in decision making processes. As such, UNDP through its future programming will strive to engage on this issue further, through the provision of capacity development support for both men and women and the creation of spaces for women to engage with development processes more freely. It must be noted however, that this is a long and difficult journey that will need to gradually address socio- cultural and political restrictions on women’s participation.

Sustainability As described under the Good Practices and Lessons Learned Section, UNDP strengthened partnerships and linkages across stakeholder groups striving to ensure that each Project action would enable beneficiaries to drive results forward with little or no external assistance following UNDP’s exit. As such, interventions comprised of both hardware elements, including infrastructure development and provision of inputs, as well as software components, such as training, capacity development support and awareness-raising.

The co-operative network was chosen as the primary point of entry, as opposed to individual producers, in order to ensure greater outreach and multiplier effects of interventions. Right at the onset, however, gaps within the Co-operative system were clearly identified. Most notably, Co- operatives lacked capacity and an overall business-oriented approach and outlook. Thus, as a first step, the selected organizations were supported with infrastructure and inputs to improve production and purchasing capacities. They were then provided with the operational knowledge and administrational capacity required to develop products that could be built on and sustained over time. Thus, a number of POs were introduced to new value-addition products, while those already engaging in manufacture of products were introduced to new technologies and approaches which made their production processes more efficient. The Project supported the POs to develop business plans which would guide their decision making and prevent them from making ad-hoc or arbitrary decisions. These plans outlined the steps needed for the POs to manufacture and market a quality product within a competitive market environment.

State and private partnerships created and sustained throughout the Project cycle, brought about meaningful benefits to the POs in terms of access to technical knowledge and new market linkages. Relationships with the respective government line departments, such as the Department of Agriculture and the Palmyrah Development Board, enabled the POs to gain advisory support on a regular basis as well as added services such as interest-free loans. The link to the Department of Co- operatives further ensured upward accountability, particularly in terms of financial accountability; while trainings and awareness raising for the BOD, staff and members emphasized on the need to actively engage with members and ensure downward accountability in order to retain the confidence of the membership and the community as a whole.

Private partnerships were also pursued and fostered in order to access high value markets; examples include Cargills and Nestle. Attention being given to quality of products was emphasized throughout the Project and POs are now striving to obtain quality certification, including certification from the nationally renowned and recognised SLSI. In future, this will raise the profile of the POs and improve their competitive advantage and bargaining power not only within local markets, but also national and possibly international markets as well. Building on results and Project complementarity, (achieved in particular through the NLDP series of Projects funded by the Government of Norway) has also helped to fill gaps and ensure continued follow up and monitoring.

The internal evaluation conducted two months after Project completion noted that all the respondents showed a great level of ownership and placed the onus of success of future endeavours entirely on their own hard work and continued commitment. This is in sharp contrast to previous Projects, where beneficiaries demonstrated a high level of dependency on agency hand outs and continued external support.

Conclusion NLDP’s provision of livelihood infrastructure, creation of market networks and strengthening of PO organizational capacity has successfully achieved a degree of stability within the local communities that it worked within. The Co-operative business model also proved successful as evidenced by the steep and continued increase in productivity and income levels during and after the completion of project interventions. This strategy has also succeeded in ensuring trickle down of benefits to a wider group of beneficiaries thus enhancing self-sufficiency and stability within these conflict- affected. Overall, the Project reached approximately 2,058 direct beneficiaries and 19,810 indirect beneficiaries.

Attention was paid to gender and environment issues during the design and implementation of the Project. Thus the Project was able to make significant inroads into previously neglected issues that have a direct impact on vulnerability. Furthermore, the Project also promoted good governance practices within the organizations and linked these organizations to government departments, local service providers and private sector partners. Collaborative efforts with FAO proved fruitful, complementing both agencies specific mandates, whilst addressing requirements within livelihood recovery and development frameworks.

During the project cycle, NLDP strove to remain dynamic within a constantly changing external environment, through the continuous refining of its implementation processes. Lessons learned have been incorporated in to all subsequent as well as overlapping projects, including NLDP II and III thus further enhancing sustainability. These have also been consolidated into the overall mandate of the GLED Programme which is UNDP’s current flagship programme for local economic development.