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ANNUAL PROGRESS REPORT (Fiscal Year 2017/18)

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ANNUAL PROGRESS REPORT (Fiscal Year 2017/18) LoanLoan No.: No.: 796−NP 796−NP GrantGrant No.: No.: DSF−8050−NP DSF−8050−NP Government of Nepal Ministry of Agriculture and Livestock Development High Value Agriculture Project in Hill and Mountain Areas (HVAP) ANNUAL PROGRESS REPORT (Fiscal Year 2017/18) Implementing Partners Connecting People’s Capacities Project Management Unit (PMU) Birendranagar, Surkhet, Nepal Phone No.: 977-83-520038, Fax No.: 977-83-525403 Email: [email protected] Website: www.hvap.gov.np September 2018 September, £017 Government of Nepal Ministry of Agriculture and Livestock Development ANNUAL PROGRESS REPORT 2017/18 (16 July 2017 to 17 July 2018) HIGH VALUE AGRICULTURE PROJECT IN HILL AND MOUNTAIN AREAS (HVAP) Project Management Unit Birendranagar, Surkhet, Nepal Phone No.:977-83-520038, Fax No.:977-83-525403 Email: [email protected] www.hvap.gov.np September, 2018 (Annual Progress Report 2017/18) September 2018 Project at a Glance Country Nepal Title of the Report Annual Progress Report 2017/18 High Value Agriculture Project In Hill and Mountain Areas Project Title (HVAP) Project Number Loan No.: 796-NP; Grant No.: DSF-8050-NP Donor Agency International Fund for Agricultural Development (IFAD) Ministry of Agriculture and LIvestock Development, Executing Agency Government of Nepal Partners SNV-Nepal and Agro Enterprise Centre Location of the Project 6 Districts from Province 6 and 1 District from Privince 7 Fiscal Year/Reporting Year 2017/18 Reporting Period 16July 2017 to 17July 2018 Year of Implementation 8th Year Total Project Budget (US$) 18.87 Million Date of Loan Effectiveness 5 July 2010 Date of Project Start 6 Feb 2011 Project Duration 7.5 Years Date of Project Completion 30 September 2018 Date of Financing Closing 31 March 2019 Budget of FY 2016/17 Year NRs. 351.8 Million Financial Achievement of the Reporting NRs. 243.7 Million (70% of the Target) FY 2016/17 Year Cumulative Financial Achievement till NRs. 1572 Million (88 % of the Total Fund allocatedof Reporting Period NRs. 1787 Million) 15,965 Households/26 Agribusinesses/108 LRPs Households covered till reporting year (118% of total target :13555) No. of Women Beneficiaries till 51001 (101% of total target:50,400) reporting year No. of Dalits and Janajatis Beneficiaries 32,065 (153% oftotal target: 21,000) till reporting year Average additional net income per HH NRs.46,055 (Target: NRs. 30,000/HH/ year at the end of in reporting year the project) High Value Agriculture Project in Hill and Mountain Areas (HVAP) Page i September 2018 (Annual Progress Report 2017/18) Financial Achievement (NRs.million) During the Fiscal Year 2017/18 by Components Financial Achievement (%) during the Fiscal Year 2017/18 by Component (Planned Vs Achieved) Figure 1: Financial Achievement of the Fiscal Year 2017/18 Page ii High Value Agriculture Project in Hill and Mountain Areas (HVAP) (Annual Progress Report 2017/18) September 2018 Figure 2: Total Project Budget and Expenditure till FY 2017/18 in USD by Financier ‘ Figure 3: Total Project Cost and Expenditure till FY 2017/18 in Nepali Rupee by Financier High Value Agriculture Project in Hill and Mountain Areas (HVAP) Page iii (Annual Progress Report 2017/18) September 2018 Acknowledgement It is our pleasure to present the annual progress report of FY 2017/18 of the HVAP including outcomes and achievements realized till the end of this fiscal year. The project has passed more than 97 per cent time of the total project period (7.5 years), covering more than targeted households (118 % of 13,500 HHs) with expenditure of NRs. 1748 million (93%) out of total project budget of NRs. 1888 million (including all financiers). Satisfactory achievements could be made in this year with nearly 70 per cent of expenditure. In this context, I would like to thank the honourable Secretary of Ministry of Agriculture and Livestock Development (MoALD) and Chairperson of the Project Steering Committee (PSC) and all the members of the PSC for providing directions, guidance and critical suggestions for the successful implementation of the project. Similarly, my sincere thanks go to the Regional Director of Agriculture, Mid Western Development Region and Chairperson of the Project Consultative and Coordination Group (PCCG) and all the members of the PCCG, for their valuable suggestions and guidance for effective implementation of the project at the field level. I also would like to thank the President of Federation of Nepalese Chambers of Commerce and Industries (FNCCI) and Chairperson of the HVAP Agribusiness Working Group for policy advocacy and guidance for the promotion of agribusinesses in the project area. Likewise, I would like to thank the project implementing partners – Netherlands Development Organization (SNV) and Agro Enterprise Center (AEC) and their officials for providing valuable advisory services and technical supports in the concerned fields during the course of project implementation. I am also thankful to all the project stakeholders at various levels who provided supports during the reporting year. I would like to thank the International Fund for Agricultural Development (IFAD), particularly its Country Program Manager, Country Program Coordinator, Supervision mission and implementation support mission teams for their guidance, supports and cooperation. Finally, I would like to thank all the HVAP staff for their collective and positive efforts made to get the achievements during last year. My special thanks go to Mr. Krishna Thapa, M&E Expert and entire Planning and M&E team of the HVAP for preparing this report. Rajendra Prasad Bhari Project Manager September 2018, Surkhet, Nepal High Value Agriculture Project in Hill and Mountain Areas (HVAP) Page v (Annual Progress Report 2017/18) September 2018 Contents EXECUTIVE SUMMARY xii PROJECT OVERVIEW 1 I. Goal of the Project 1 II. Objectives of the Project 1 III. Target Group 1 IV. Project Approaches 1 V. Implementation Modality 2 A. PURPOSE OF THE REPORT 3 B. PROJECT RESULTS 4 I. Major Impacts of the Project 4 II. Major Outcomes and Outputs of the Project 5 1. INCLUSIVE VALUE CHAIN DEVELOPMENT 10 PART ONE: VALUE CHAIN DEVELOPMENT AND BUSINESS LINKAGES 15 PART TWO: SUPPORT TO VALUE CHAIN DEVELOPMENT 19 SUB-COMPONENT 1.1: FUND AND FACILITIES 19 FUND AND FACILITIES 1.1.1: VALUE CHAIN FUND (VCF) 20 FUND AND FACILITIES 1.1.2: SECTOR DEVELOPMENT FUND (SDF) 25 FUND AND FACILITIES 1.1.3: INCLUSION FUND 26 SUB-COMPONENT 1.2: GROUP FORMATION AND STRENGTHENING 30 SUB-COMPONENT 1.3: GENDER AND SOCIAL INCLUSION 33 2. SERVICE MARKET STRENGTHENING 36 SUB-COMPONENT 2.1: MOBILIZATION AND CAPACITY BUILDING OF SERVICE PROVIDERS 36 SUB-COMPONENT 2.2: PARTNERSHIP AND FINANCIAL SERVICES 40 3. PROJECT MANAGEMENT (Including M&E and KM) 42 Financial Achievement 48 C. LESSON LEARNT 51 D. CONCLUDING REMARKS 51 E. ANNEX 52 High Value Agriculture Project in Hill and Mountain Areas (HVAP) Page vii September 2018 (Annual Progress Report 2017/18) LIST OF TABLES: Table 1: Impact indicators and values 4 Table 2: No. of beneficiary households by Value chain till FY 2017/18 6 Table 3: No. of individual beneficiaries 7 Table 4: Average baseline and after intervention net income in 7value chains 7 Table 5: No. of households with increased additional net income of NRs 30,000 by value chain and caste/ethnicity 8 Table 6: Women in Leadership Positions in POs in FY 2017/18 9 Table 7: The Number of Beneficiary Households improved Well Being 9 Table 8: The Ranking of producers’ organization 10 Table 9: Volume (MT) Baseline Vs after Intervention 11 Table 10: Sales Value Baseline Vs after Intervention (Amount in NRs.million) 11 Table 11: The productivity and value chains 13 Table 12: Volume of Production (MT) by Value Chains 13 Table 13: The net labor return by value chains 14 Table 14: Post harvest loss percentage by value chain reporting year 14 Table 15: Number of Groups/Cooperatives having market arrangements with agribusinesses in FY 2017/18 15 Table 16: Score obtained in institutional capacity self-assessment of DCCIs 19 Table 17: Self-evaluation of 7 CCIs and their level 19 Table 18: Sub-projects and Investment by value chains during the Fiscal Year 2017/18 20 Table 19: Sub-projects and Investment (NRs million) by value chains till the Fiscal Year 2017/18 20 Table 20: No. of implemented business plans and cost by Value chain under different funds during reporting year 21 Table 21: No. of implemented business plans and cost by Value chain under VCF W1 till reporting year 22 Table 22: No. of implemented business plans and investments by Value chain under VCF W2 during the reporting year 22 Table 23: No. of implemented business plans and investments by Value chain under VCF W2 till the reporting year 23 Table 24: Value of supply by value chains in the reporting year 23 Table 25: List of infrastructures developed till FY 2017/18 24 Table 26: Grants committed and disbursed amounts by value chains (Amount in NRs million) till the reporting period 25 Table 27: No. of sub-projects and grants under PIF by value chains during FY 2017/18 26 Table 28: Cumulative No. of sub-projects and grants under PPF/PIF by value chains till FY 2017/18 26 Page viii High Value Agriculture Project in Hill and Mountain Areas (HVAP) (Annual Progress Report 2017/18) September 2018 Table 29: No. of participants in technical trainings by gender and caste/ethnicity till the reporting period 29 Table 30: No. of project supported groups/cooperatives and members 30 Table 31: Percentage of Producers’ Organizations and their ranking level (as of July 2018) 31 Table 32: No. of participants in different trainings by caste/ethnicity till the reporting period 32 Table 33: Poverty ranking of beneficiary households by value chain and poverty category till the reporting period 33 Table 34: No.
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