ZRDA ACTIVITY IN

FY 2020 QUARTERLY REPORT II

April 30, 2020

This publication was produced for review by the United States Agency for International Development. It was prepared by Chemonics International Inc.

ZRDA ACTIVITY IN GEORGIA

FY 2020 QUARTERLY REPORT 1I (17)

Cooperative Agreement No. AID-114-A-16-00004 Cover photo: AgroStop – project promoting Agro-Tourism & Zrda-supported agro touristic facilities, in the regions. (photo credit: the Georgian Farmers Association)

DISCLAIMER

The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States government.

ACRONYMS

AIC NGO Abkhazintercont ADC Development Consortium AMP Activity Management Plan APMA Agricultural Program Management Agency APA Agency for Protected Areas APS Annual Program Statement BSO Business Support Organization CDF Chachkari Development Fund CHCA Charity Humanitarian Centre “Abkhazeti” DCFTA Deep & Comprehensive Free Trade Agreement (EU) DMO Destination Management Organization EOI Expression of Interest F2F USAID Farmer-to-Farmer Activity FSC Farm Service Center FY Fiscal Year G4G USAID Governing for Growth Activity GAP Good Agricultural Practices GARA Government of the Autonomous Republic of GEL Georgian Lari GFA Georgian Farmers’ Association GFDC Georgian Farmers Distribution Company GITA Georgia’s Innovation & Technology Agency GLA Georgian Logistics Association GNTA Georgia National Tourism Agency GoG Government of Georgia GRDF Georgian Rural Development Fund HACCP Hazard Analysis Critical Control Point ICC Information and Consultation Center IDP Internally Displaced Person IFAD International Fund for Agriculture LEPL Legal Entity of Public Law

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LOP Life of Project KMS Key Management Solutions Ltd. MDF Municipal Development Fund MoA Ministry of Agriculture MOU Memorandum of Understanding MRDI Ministry of Regional Development & Infrastructure MSME Micro, Small and Medium Size Enterprise NGO Non-Governmental Organization PHHM Post-Harvest Handling and Management RDA Regional Development Association RDFG Association Rural Development for Future Georgia RFA Request for Applications RFP Request for Proposals SOW Scope of Work TIC Tourism Information Center ToT Training of Trainers TPLA Protected Landscape Administration UNDP United Nations Development Programme USAID United States Agency for International Development USD United States Dollar USG United States Government ZSF Zrda Sub-Award Facility Zrda USAID Zrda Activity in Georgia ZRI Zrda Resiliency Index

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CONTENTS

Acronyms ...... i Executive Summary ...... 1 Activity implementation Progress ...... 4 Zrda Sub-Purpose 1: Improve MSME Development & Growth ...... 4 Zrda Sub-Purpose 2: Increase Productivity of Rural Households ...... 11 Zrda Sub-Purpose 3: Facilitate Market Linkages between Producers & Buyers ...... 15 Zrda Sub-Purpose 4: Promote Local Economic Development by Establishing Networks . 24 Cross-Cutting Management Objectives ...... 30 Euro-Atlantic Integration ...... 30 Integrating Gender and Youth: ...... 30 Partnership & Coordination Updates ...... 32 Telling Our Story/Communications: ...... 37 Monitoring and Evaluation: ...... 45 Annex A. Zrda Indicator Tracking Matrix ...... 46 Annex B. Success Stories (Attached) ...... 54 Annex C. Zrda Activity Map ...... 55

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EXECUTIVE SUMMARY

This quarterly report summarizes accomplishments of the Zrda Activity in Georgia (hereinafter “Zrda”) covering the second Quarter of the Fiscal Year (FY) 2020 (January 1, 2020 – March 31, 2020). Zrda began implementation upon execution of the Cooperative Agreement on March 15, 2016.

USAID ZRDA HIGHLIGHTS FOR JAN 1, 2020 – MAR 31, 2020 By Q2 FY 2020, new sales generated by Zrda MSMEs reached $31.7 million, 88% of the LOP target. A 7% increase is experienced as compared to the previous quarter results ($29.5 million). Cumulative total sales SALES increased by 5% from Q1 to Q2 FY2020, reaching $46.8 million. New sales were initially projected to reach $35 million by Q3 FY 2020 that would come very close to the LOP target, but given COVID-19, it’s difficult to make any projections. 1,215 new jobs have been created as of Q2 FY 2020. The JOBS results have increased by 1.5% from the previous quarter, and now have reached 50% of the total LOP target. During Q2 FY 2020, Zrda trained 461 new individuals across TRAINING all sectors. The overall number of individuals who received project supported training up to date is 4,859 individuals. By Q2 FY 2020, the total value of funding leveraged is $4.6 million from project partners and beneficiaries, which has LEVERAGE already exceeded Zrda’s LOP target (3.6 mln.) and hence is 127%. 44% of Zrda beneficiaries are women. GENDER & YOUTH 29% of Zrda beneficiaries are youth. Total beneficiaries by Q2 FY2020: 128,236

Zrda Sub-Award Facility (ZSF): During Q2 FY 2020, Zrda Technical Team members utilized sub- award mechanisms to facilitate interventions in support of Zrda objectives across priority sectors and regions. Zrda sub-awards are used to finance activities through local actors – private sector, NGOs, associations and other business support organizations (BSOs), and government agencies (where relevant and appropriate). Zrda’s approach to sub-award utilization emphasizes flexibility and provides transparent, streamlined processes that can be easily understood by implementing partners and Zrda staff. During Q2 FY 2020, Zrda developed and released 1 new solicitation for sub-awards that allow provision of services including: implementation of the Startup Ecosystem Capacity Building Activity in Zrda target municipalities. In total, Zrda made 56 awards in the amount of GEL 830, 354.95 to support the establishment of greenhouses; arrangement of cold storage and drying facilities; museums to develop better services; development of digital transformation capacity building training programs; handicraft support program for Samegrelo region; and arrangement of blueberry demo greenhouses.

Household Survey & Zrda Resiliency Index (ZRI): During the previous reporting period (Q1 FY 2020), Zrda sub-awardee ACT completed the fourth round of the Zrda Resilience Index (ZRI) survey, which was carried out among 300 households across 81 Zrda-target communities. Two ZRI-related indicators were assessed based on the research: 1. Percentage change in “Zrda” Resiliency Index measuring capacity of beneficiary communities to cope with shocks to livelihoods and 2. Number of

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stakeholders implementing risk-reducing practices/actions to improve resilience to livelihood shocks as a result of USG assistance. The research outcomes indicated that the community and household resilience indexes increased by 39% and 76% respectively as compared to the baseline year of 2016. Furthermore, 46% of the beneficiaries that attended Zrda-supported training programs noted that these trainings had effectively assisted them to improve financial conditions of their respective households by either finding a paid job and/or receiving increased income afterwards. The fifth round of the ZRI survey, together with the household capacity evaluation survey, will be conducted in the final year of the project and will assess Zrda’s overall progress against 4 project indicators from the program’s start to its ending date.

Progress Against Purpose-Level Indicators Zrda results against Purpose-Level indicators are summarized in Table 1 below. Please refer to Annex A: Zrda Indicator Tracking Matrix for complete results as applicable from Zrda inception through the Q2 FY 2020.

Table: Zrda Purpose-Level Indicators ZRDA ACTIVITY IN GEORGIA PURPOSE LEVEL INDICATORS

CUM. LOP FY 2020 CUM. INDICATOR % OF TARGET RESULTS RESULTS LOP Value of sales generated by MSMEs over 1 $36,000,000 $6,660,435 $31,724,097 88% life of project (P/F) Number of MSMEs generating new sales 2 800 75 910 114% over life of project (P) 3 Number of new jobs created (P) 2,400 135 1,215 51% Number of households increasing 4 13,200 N/A 7,527 57% income by at least 25 percent (P) Percentage change in Zrda Resiliency Index measuring capacity of 5 10% N/A 39% N/A beneficiary communities to cope with shocks to livelihoods (P) Number of stakeholders implementing risk-reducing practices/actions to 6 900 N/A 1,244 138% improve resilience to livelihood shocks as a result of USG assistance (P/S) Total value of funding leveraged from GoG and other sources for 7 $3,600,000 $1,734,818 $4,586,684 127% infrastructure and non-infrastructure projects (P/F) Number of beneficiaries using improved 8 9,600 8,905 10,570 110% infrastructure services (P)

Analysis: During Q2 FY 2020, the value of new sales has increased by 7% as compared to the results achieved in Q1 FY 2020, bringing the cumulative new sales number to $31.7 million for the LOP-to- date. Compared to Q2 FY 2019, the value of new sales has increased by 93%. Total sales from all beneficiaries have reached $46.8 million for the current reporting period. For the past quarters, Zrda has been successfully utilizing the new sales forecasting tool. However, due to economic challenges caused by COVID-19, it is extremely difficult to make projections as many businesses currently have limited or suspended business operations. If the usual business environment had remained unaltered, we would expect the value of new sales to reach $35 million by the end of next quarter, or approximately 97% of the LOP target.

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Currently, the number of new jobs remains to be the most challenging purpose-level indicator to track. In the reporting period, 19 full-time equivalent new jobs have been created. Overall, the number of new jobs has reached 1,215, which is 51% of the LOP target. An insignificant change in the number of new jobs for this reporting period can be attributed to the seasonal alterations, and specifically to relatively inactive touristic and agricultural/harvest periods.

New Jobs Dynamics

2,500 1931 2,000 1683

1,500 1,215 1111 1,080 1,000 662 689 375 500

0 FY 2017 FY 2018 FY 2019 FY 2020 (2Q)

Full-time equivelent Jobs Total Jobs Linear (Full-time equivelent Jobs)

Leverage to date generated by the project has reached $4.6 million, which is 127% of Zrda’s overall target. Out of this, 54% is generated from the private and 46% from the public sector.

As for the purpose-level indicator #8 (access to infrastructure), there has been a significant rise in Q2 FY 2020 results, now reaching 10,570 beneficiaries, which exceeds the LOP target of 9,600 by 10%. Zrda is progressing in the infrastructure component through its partnership with British Petroleum (BP) in Kvemo and Samtskhe- regions, working with Regional Development Association (RDA), BP’s implementing partner organization. Throughout the past two quarters, a significant increase in the indicator number has been achieved through the above-mentioned partnership projects.

Overall, purpose-level indicators results achieved to date are quite positive, with the exception of the new jobs’ indicator. All other indicators have either approached or exceeded their respective LOP targets. It should also be noted that the results achieved during the current reporting period are lower compared to the results of previous quarters, which can be attributed to the low touristic and harvesting season over the winter. Additionally, the reduced growth rate reported during Q2 FY 2020

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as compared to the growth rate captured during the respective quarter of previous years, can also be attributed to the harmful effects of COVID-19 which has caused the majority of Zrda-supported businesses (restaurants/cafes, museums, and other service providers) to close or limit business operations starting in March 2020. However, specific challenges imposed due to the coronavirus will become more visible in the upcoming few quarters, with the tourism sector and Zrda-supported hotels/guesthouses being significantly affected. ACTIVITY IMPLEMENTATION PROGRESS

The following sections provide updates on all activities under implementation across all Zrda Sub- Purposes as well as the activities completed during Q2 FY 2020. The report summarizes activities in detail, describes impact and results of each activity, and indicates the next steps to be implemented during the remainder of FY 2020.

Zrda continues to work in 81 target communities, and strives to create 2,400 jobs, increase sales for 800 MSMEs by $36 million, increase incomes of 13,200 households by at least 25 percent, generate measurable improvements in community resilience, and leverage $3.6 million from municipalities, donors, and private sector partners. Additionally, Zrda continued implementation of the partnerships with key private sector partners, notably BP. Due to extenuating circumstances, the Anaklia Community and Economic Development program (ACED), implemented under the partnership between Zrda and the Anaklia Development Consortium (ADC) has been cancelled (see details on page 36).

ZRDA SUB-PURPOSE 1: IMPROVE MSME DEVELOPMENT & GROWTH Zrda Sub-Purpose I focuses on strengthening MSME capacity to grow and contribute to local economic development and integrating into national and international market systems. Sub-Purpose Level 1 indicators and progress made as of Q2, FY 2020 are provided in Table 2 below1.

Table 2: Sub-Purpose Level I Indicators SUB-PURPOSE LEVEL 1 INDICATORS

FY 2020 CUM. (% OF FY 2020 ACTUAL LOP INDICATOR LOP TARGET (% TARGET TARGET) OF TARGET) 1.1.1 Number of business plans supported 30 47 (157%) 350 361 (103%) as a result of USG assistance (C) 1.2.1 Number of MSMEs accessing evidence-based market research through 2000 5,517 (276%) 12,500 17,343 (139%) associations/BSOs (C) 1.3.1 Number of assisted MSMEs that have incorporated updated standards to 60 1 (2%) 420 340 (81%) product development as a result of USG assistance (C) 1.4.1 Number of public-private dialogues 60 12 (20%) 300 114 (38%) facilitated (C) 1.5.1 Number of MSMEs operating more profitably (at or above cost) because of 150 217 (145%) 780 808 (104%) USG assistance (S)

1 Sub-purpose indicators are tracked at the MSME level (both farm and non-farm MSMEs) rather than by specific activities. Indicators that cannot be tracked at the individual MSME level are tracked via the dedicated household and ZRI survey instruments.

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1003A: Food Safety Training Program for Zrda Micro & Small Businesses (Hospitality & Agriculture) • Under the Activity “Food Safety Training Program for Zrda Micro and Small Businesses (Hospitality & Agriculture”),” Zrda prepared training materials on food safety, HACCP principles, and sanitary-hygienic standards for tour guides, field kitchens and kitchen units for tourism facilities. • Zrda Food Safety Expert conducted an assessment of Zrda-supported drying Results/Updates: facilities. The Expert also provided recommendations to the grantees under Zrda and Partnership Fund joint program that are in the process of establishing food processing facilities in . • During the reporting period, the Food Safety Expert continued to monitor Zrda & Anaklia Development Consortium grant program beneficiaries, specifically on food safety compliance in Zrda-funded cafes and guesthouses. Challenges: • Activity is on track/no material challenges. • In the next reporting period, the food safety trainings for new grantees are Next Steps: planned to be held in all Zrda targeted regions. • The training materials will be updated with new information on COVID-19 safety measures.

1003B: Development of Local Geo GAP System with GFA

• In this reporting period, the farmers Giorgi Tediashvili (Fruit Orchard) and Kakha Tutberidze (Greenhouse) participated in the Georgian Good Agricultural Practices (GeoGap) certification program. The Georgian Farmers’ Certification company provided consultations to the Geo Gap certified Greenhouse (photo by the GFA) farmers that later were audited and certified with the GeoGAP certificate. • The Georgian Farmers Association (GFA) Results/Updates: continued to conduct public outreach of GeoGap in , Samegrelo, and , to promote the certification program among farmers. • GFA, through the Orange Knowledge Project funded by NUFFIC, is building the capacity of the GFA team in value chain management, quality control and food safety, facilitating GeoGAP standards and capacity building for primary production of fruits and vegetables by group farmers.

Challenges: • Activity is on track/no material challenges. • The GFA GeoGAP team will continue implementing the GeoGAP Pilot projects. They will procure GeoGAP mobile laboratory van that will be able to help Next Steps: producers implement GeoGAP required laboratory services (soil and water testing, packaging, fruits/vegetables, etc.).

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1004A: Greenhouse & Agro-Insurance Promotion (under 1004: Facilitate Access to Finance) • During this reporting period, Zrda conducted several meetings with Food and Agriculture Organization (FAO) to coordinate and plan future activities in the agro-insurance sector. Zrda shared the experience and relevant information with the FAO-invited consultant who later conducted analysis of the implementation Results/Updates: and performance of the Agro-insurance Project in Georgia. The consultant provided a list of recommendations to the Georgian Ministry of Environmental Protection and Agriculture that need to be implemented in order to support the agro-insurance sector in Georgia.

Challenges: • Activity is on track/no material challenges. • Due to COVID-19, the activities related to the agro-insurance promotion may not Next Steps: be a priority for the government at this time as they manage the ongoing health crisis.

1004C: Value Chain Financing Pilot Scheme • The goal of this activity is to develop a replicable value chain financing model to support the strengthening and sustainable development of fruit and vegetable value chain actors and farmers by facilitating access to financial services for the latter. Zrda signed a Memorandum of Understanding (MOU) with Crystal Microfinance Organization and facilitated a partnership between Crystal and AgroCom, a Farm Results/Updates: Service Center operating in Shida Kartli region, to implement the scheme. • Crystak issued four loans during the reporting period totaling GEL 8,525.00. The small number of loans this quarter is due to not having an agricultural season during the winter months. We expect loan numbers to increase in the following quarter. • Overall, Crystal has disbursed 156 loans under the activity totaling GEL 724,603. Challenges: • Activity is on track/no challenges observed. However, the negative impact of COVID-19 on agricultural production scale will likely be observed this season. • Continue activity in Shida Kartli. Next Steps: • Monitor activity.

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1006: CHCA No-Interest Micro-Loan Facility for Western Georgia

• Charity Humanitarian Centre “Abkhazeti” (CHCA) started cycle 10 of the No- Interest Loan Program in Samegrelo and Shida Kartli. 225 potential applicants participated in the information sessions held in those two regions. • CHCA in total received 91 loan applications that were submitted to Crystal for initial review: 72 applications from Shida Kartli and 18 applications from Samegrelo. Of which, 78 applications are in the agricultural sector; 10 in service sector and 2 in production sector. • In total, CHCA issued 136 loans totaling GEL 676,352 to date under this activity.

Results/Updates:

The beneficiaries of Free-Interest Loan Program in Samegrelo and Shida Kartli (Photo by Chemonics International Inc)

• CHCA will continue making efforts to reduce the total amount of debts generated in 2018. During the reporting period, the debt amount reduced by GEL 3,455. The total debt amount at the end of the previous reporting period remains at GEL Challenges: 40,362. • Due to COVID-19, Zrda suspended the implementation of the business training and the following stages for the 10th cycle until further notice. • Complete 10th cycle of the activity Next Steps: • Close the activity

1006A: Investing in ABL • Zrda and the JSC Partnership Fund signed an MOU aimed at facilitating investments in target villages located along the Administrative Boundary Line (ABL) with the occupied territories of and Abkhazia. Zrda initiated its joint grant program to select and support innovative start-up businesses along the ABL in partnership with Start-up Georgia LLC, a company funded and owned by the Partnership Fund. • Zrda and Start-up Georgia conducted three joint committee meetings as well as several information sessions in Gori, Perevi, and . Start-up Georgia approved seven projects (four in Shida Kartli and three in Results/Updates: • Samegrelo) and submitted them to Zrda for further consideration for Zrda co- funding. Those projects include: production of fertilizers for drip irrigation systems; used motor oil processing and recycling production; production of kombucha; production of churchkhela bars; development of deep-freezing facility; development of goat farm and goat milk processing; and a mobile milk processing plant. • The total amount of these projects is GEL 5,196,945. • The total amount requested from Zrda is GEL 1,460,000, which is 28.1% of the total amount.

Challenges: • Activity is on track/no challenges observed except of a potential risk of slowing down implementation due to COVID-19.

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1006A: Investing in ABL • Work on the projects in pipeline. • Organize Zrda sub-award committee meetings. Next Steps: • Participate in Start-up Georgia award committee meetings. • Implement and monitor the activity.

1008A: Underserved Minority and Geography Small Grants Activity - Completed. • Zrda continued monitoring the Small Grants Program beneficiaries in Dusheti, Marneuli and Bolnisi municipalities awarded to support improved agriculture, tourism, and service development for minority households and geographically remote areas, with the following distribution: Dusheti 8; Bolnisi – 4, and Marneuli - Results/Updates: 1 and operating in beekeeping, berry production, greenhouse vegetable production, open field vegetable production, fruit growing, car repair and other services. • By the end of the reporting period, all awarded beneficiaries managed to generate income totaling GEL 46,500. Challenges: • No challenges observed.

Next Steps: • Zrda will monitor the performance of all 13 grantees and provide support in linking products/services to new markets.

1009 (A&B): ICT, Innovation and Entrepreneurship Activity with GITA

• Zrda and Georgian Innovations and Technology Agency (GITA), through the service provider company Griffin, continued the development of simple, e-commerce functional websites to 200 MSMEs, who have participated in GITA's E- Results/Updates: Literacy Improvement Program. • It is expected that as a result of this program, the GITA-supported MSMEs from Zrda target Website interface (photo by Griffin) municipalities will increase sales and improve market linkages. At this stage, Griffin fully completed the web-site development for 37 MSMEs with another 35 web-sites still in the development phase. Challenges: • No major challenges observed. • Continue cooperation with the GITA to help up to 200 MSMEs to successfully Next Steps: carry out marketing activities for their goods and/or services through easy-to-use image and e-commerce websites.

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1010: SME Technical Assistance Facility for Certifications & Business Services - Completed. • The activity aimed at addressing the needs and demand of Zrda target MSMEs/lead firms in terms of technical assistance (TA) to support access to finance, implementation of modern standards and technologies, exports and other activities leading to sales, increased profitability, and new jobs. Zrda solicited sub-award applications from target MSMEs/lead firms that met the following criteria: operating in Zrda target communities, having market linkages Results/Updates: with MSMEs, and/or creating job opportunities for individuals from Zrda target communities, within the Zrda target value chains. Through these sub-awards, Zrda subsidized 50% of the consulting service fee, up to a predetermined maximum amount. • As reported in Q1, 2 implemented projects considered ISO and HACCP precertification consulting with projected revenue increase of GEL126,700.00 in total. Challenges: • Activity is on track/no challenges observed

Next Steps: • Activity completed.

1010B: Facilitate usage of modern hospitality and retail software by Zrda target MSMEs

• This activity aimed at supporting target MSMEs in hospitality, service and agricultural sectors to install and use business operation specific modern software. These software help businesses better control their daily operations, better serve customers, and as a result, attract more customers to increase revenues. This also enables businesses to optimize costs, increase profitability, and increase capacity to Results/Updates: reinvest more in business expansion and streamlining of operations. The activity provided 50% service fee co-financed by Zrda and was implemented at the Zrda target municipality and community level. • The solicitation issued under the activity identified 2 MSMEs to support, which increased their revenue by about GEL 700,000. • Sub-award agreement signed by Zrda with AREALY LLC that considers allocation of sub-award funds for AREALY LLC to co-finance AREALY’s product/service fee Challenges: and serve up to 20 MSMEs (hotels, guesthouses, hostels) is delayed due to the COVID-19 crisis. Next Steps: • Activity on hold due to COVID-19 pandemic.

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1011: Restaurant Service Improvement Activity

• Zrda contracted with Gastronaut in order to provide catering industry representatives with professional consultations to improve their businesses. Zrda conducted site visits to 57 eligible applicants. • Zrda Technical Evaluation Committee selected 21 applicants to receive consultation packages from Gastronaut. These consultations will be designed to fit each applicants specific needs to Diagnose Visita (Photo by address a variety of capacity gaps. The individual Results/Updates: Chemonics International Inc.) consultations include an initial needs assessment to identify main areas for improvement and link applicants with recommendations and the creation of a roadmap on how to improve their catering businesses in the following areas: concept & menu creation (with calculations); HR structure and service; and gastro marketing and communications; • Zrda held diagnostic visits in , Samegrelo, Samtskhe-Javakheti, Shida Kartli and regions to identify their needs and develop their business-targeted consultation packages. Challenges: • The activity is being implemented with no challenges. • Zrda and Gastronaut will conduct online meetings to elaborate the strategy to Next Steps: implement the activity’s next steps. The strategy has to be adapted and shifted to remote work due to COVID-19.

1012A: Publishing Guesthouse Guidebook – Completed.

• This activity focused on developing a printed guidebook to support guesthouses operating in Zrda target areas to help them develop/modify infrastructure and hosting skills to attract more visitors, thus, allowing beneficiaries to grow and strengthen their businesses. The guidebook is focused on the maintenance and promotion of the national/regional style and heritage as a crucial factor to strengthen guesthouses in this Results/Updates: niche market. • Zrda signed the sub-award agreement with the Georgian Wine Association (GWA). • The GWA finalized the guidebook and printed 1,000 copies, which were distributed among Zrda beneficiaries • The Guidebook presentations took place in Tbilisi, and later on in Akhmeta, Akhaltsikhe and Regional Information Sessions (Photo Zugdidi. by: Chemonics International Inc.)

• The book preparation took more time than planned, which caused a delay in Challenges: project completion. Next Steps: • Activity completed.

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ZRDA SUB-PURPOSE 2: INCREASE PRODUCTIVITY OF RURAL HOUSEHOLDS Activities under Sub-Purpose 2 focus on supporting rural households to increase their productivity and incomes from both on- and off-farm livelihoods opportunities. Sub-Purpose Level 2 indicators and progress made as of Q2, FY 2020 are provided in table 3 below.

Table 3: Sub-Purpose Level 2 Indicators

SUB-PURPOSE LEVEL 2 INDICATORS

FY 2020 ACTUAL CUM. (% FY 2020 LOP INDICATOR (% OF LOP TARGET TARGET OF TARGET) TARGET) 2.1.1 Number of households accessing market data through 79,852 10,000 29,750 (298%) 64,570 USG-support communication channels (C) (124%) 2.2.1 Number of households and others who have applied new technologies or management practices as a result of 1,000 687 (69%) 7,000 6,377 (91%) USG assistance (C/F) 2.3.1 Number of individuals who received USG supported 600 297 (50%) 3,600 2,139 (59%) short-term agricultural sector productivity training (C) 2.4.1 Number of hectares under improved technologies or management practices as a result of USG 900 89 (10%) 6,000 2,281 (38%) project (F)

2001: Berry Nursery Establishment Activity

• In this reporting period, Zrda supported six berry nurseries which have sold 75,293 plants. The Nursery AgroAgora supplied its stock with 102,000 plants imported from Poland, which under the Plant the Future program, they sold around 52,000 plants, generating GEL 579,660 in income. • The Zrda Grants Evaluation Committee selected three berry farmers (two from Samegrelo-Zemo Results/Updates: Svaneti and one from Samtskhe-Javakheti) to establish ggreenhouses with the total area of 2000 sq.m and introduce modern technologies in blueberry production. This activity will have a demonstration effect for blueberry farmers who want to prolong their blueberry production cycle Blueberry plants in Agora Nursery in Village Rike, to increase yields and gain a higher market price. (Photo by Zrda has already identified the vendors to install Chemonics International Inc.) greenhouses and deliver all requested materials within 90 days. • Due to the COVID-19, Zrda cancelled the study tour on new agriculture Challenges: technologies in blueberry propagation and modern techniques in greenhouses/open field production. • Blueberry production demonstration greenhouses will be arranged and trainings concerning blueberry production under protected environment will be conducted online. Next Steps: • Print a comprehensive manual for blueberry production and distribute the printed copies to Farm Service Centers (FSCs), Information and Consulting Centers (ICCs), and farmers.

ZRDA FY 2020 QUARTERLY REPORT II | 11 2002: Train Farmers on Market-Driven Production Practices (Public Sector)

Strengthening & Capacity Building of State Extension ICCs: • During the reporting period, Zrda continued collaborating with the state-owned Information and Consulting Centers (ICCs), currently operating under the Agriculture and Rural Development Agency (ARDA). Zrda identified 21 farmers Results/Updates: through a competitive process to support with arranging fruit or vegetable demonstration plots in Zrda target communities of Kvemo Kartli, Samtskhe- Javakheti, () and Samegrelo-Zemo Svaneti. In collaboration with Zrda, the ICC specialists will provide extension services to the farmers. • Due to COVID-19, Zrda postponed the process of hiring interns for the ICCs Challenges: and training them in modern technologies related to fruit and vegetable production. Next Steps: • 21 demonstration plots will be established in Zrda target agricultural sectors in Kvemo Kartli and Samtskhe-Javakheti.

2002A: Private Sector Extension System Development

Private Sector Extension Support through Development of Commercial Extension Packages with FSCs: • Zrda arranged fruit and vegetable demonstration plots through the partner Farm Service Centers (FSCs) and continued to promote consultation service packages for farmers. Additionally, Zrda via the FSCs, established 41 demonstration plots on 38.7 hectares. In this reporting period, the FSCs provided 376 fee-based consultation packages to the farmers for producing various yields. • During the reporting period, four FSCs Results/Updates: completed application process with farmers operating in Zrda target communities to establish demonstration plots. At this stage, 24 farmers from 16 Zrda target communities in Shida Kartli have been selected. It is planned to identify an additional 14 farmers from Kvemo Kartli and Samtskhe-Javakheti regions. F2F extension specialist at FSC Agrocom (Photo by Chemonics • Zrda invited the USAID F2F expert John International Inc.) Fouts to provide trainings and consultations to Zrda-supported FSCs Agrojavakheti and Agrocom in Samtskhe-javakheti.

Challenges: • Activity is on track/no challenges.

• Establish village-based demonstration plots. Next Steps: • Continue promotion of crop-based consultation packages and demonstration plots in Zrda target communities.

ZRDA FY 2020 QUARTERLY REPORT II | 12 2003A: Credo Agro-Information Portal (Under 2003: Promote Market Information Systems and Electronic Match-Making Services) • During the reporting period, Credo and NGO Elva continued to administer the electronic matchmaking platform, Kalo.ge. • Since the launch of Kalo.ge the platform reached up to 73,798 users and subscribers countrywide, with 3,826 registered active users quarterly. Of Results/Updates: those, Kalo.ge received 56,400 paying subscribers and managed to facilitate Kalo.ge Portal with in-field consultations sales of GEL 181,216 among 35 (Photo Credit: Credo) farmers using the online storefront who purchased agriculture products including seeds, pesticides, fertilizers, saplings, equipment, etc. Kalo.ge offers an increased number of products up to 1,113 varieties in partnership with 12 leading input suppliers. • Through the Farm Help module, Kalo consultants responded to over 4,400 individual questions via social media, e-mail, and the call center. • Piloting of various types of in-field consultancy services still remains a challenge. • Not all new subscribers make full use of member benefits yet. Challenges: • Growth of retail activities (Kalo Shop) is lower than expected. From internal research, the need for more active (in-field) engagement of farmers will be crucial to increase trust and visibility. • Developing online consumer loans in partnership with Credo is delayed. • Monitor the portal on a quarterly basis and promote it among Zrda farmers. • Engage new subscribers through better information provision (informational leaflets, etc.), follow-up calls, and SMS/push notifications. • Research the commercial viability of crop marketing services, including: Next Steps: - Identification of the most promising value chains - Support to pilot group of 50-100 farmers - Buyer engagement • Implement online consumer loans. • Implement Agro Consultancy across Georgia and find local staff to provide different services in demand.

2003B: GFA Agro-Information and Electronic Match-Making Platform (Under 2003: Promote Market Information Systems and Electronic Match-Making Services) • During Q2, 414 new users were registered through Android and Apple iOS to Agronavti – a mobile matchmaking platform developed by Zrda and Georgian Farmers Association (GFA). Results/Updates: • To publicize the platform and provide information about Agronavti to farmers, GFA actively continues to use various tools Agronavti platform Agro Game such as: agro digest, agro prices (temporarily (Photo by GFA) unavailable), agro library, land auction, world expo calendar, agro legislation, and others reaching a total of 25 posts.

ZRDA FY 2020 QUARTERLY REPORT II | 13 • During the reporting period, Agronavti promoted an event for Agriculture & Innovations organized in Tbilisi through which they presented key information and leaflets to 100 guests. • For the first quarter via the Agronavti platform, the GFA Distribution Company managed to purchase and distribute up to GEL 1,000,000 of products, including GEL 133,174 worth of vegetables, berries, dairy products, and honey from 24 farmers from Zrda target municipalities. • GFA completed developing its AgroGame for both iOS and Android Systems which are now available in respective application stores. • For the construction of cold storage, GFA still expects to obtain the construction permit by tentatively the end of May. • Due to COVID-19, all restaurants and hotels owned by the Group are Challenges: closed, which has had significant implications for distribution operations and procurement of products from farmers. As such, the distribution company is conducting internal storage operations only to account for the remaining balance of goods. • GFA will regularly monitor portal figures and publicize Agronavti among Zrda regions and farmers to link local farmers to markets and increase sales. Next Steps: • GFA will continue to cooperate with the Roads Department regarding permits. • Develop the desktop version for Agroanvti platform and translate the content into English.

2004C: Tour Guides Training and Certification

• Zrda, in cooperation with the Center for Training and Consultancy (CTC), held a presentation to demonstrate the “Regional Tour Guides Short-term Training Program” results. The event aimed to promote course visibility among relevant stakeholders to ensure its sustainability and institutionalization. • Since 2019, CTC in cooperation with Zrda, has Certificate Handover Ceremony closely worked with different stakeholders (Photo by Chemonics Results/Updates: (Zugdidi State Teaching University, Kachreti VET International Inc.) “Aisi”, Gori VET “Gantiadi”, and Akhaltsikhe VET “Opizari”) to develop and deliver certification training courses to regional tour guides. • The certificate award event for the first round of trainings provided an opportunity to create networking and market linkage opportunities among course graduates and tour operators. Furthermore, this will be an opportunity for the VET colleges to present their course results and demonstrate areas for continued collaboration and next steps with the Ministry of Education (MoE) and Georgian National Tourism Association (GNTA). Challenges: • Zrda suspended the activity due to COVID-19. • Conduct the second cycle of tour guides training in partnership with four VET colleges. Next Steps: • Build capacity of the trainers/teachers and engage both international and national experts. • Explore opportunities for online solutions to activity implementation.

ZRDA FY 2020 QUARTERLY REPORT II | 14 2005: Greenhouse Technology Promotion & Training

• During the reporting period, Zrda continued the Greenhouse Subsidy Program, which subsidizes the establishment and renovation of existing greenhouses through a fixed rebate subsidy scheme. • Zrda has supported 44 farmers with the total area of 38,231 sq.m. of which 26 farmers have completed the establishment of their greenhouses with a total area of 24,931 sq.m Results/Updates: enabling them to start off-season production of Newly established greenhouse vegetables and herbs. (Photo by Chemonics 14 Zrda beneficiaries and the IDP Livelihood International Inc.) • Agency joint program started off-season vegetable and herb production in the newly established greenhouses. Zrda local expert provided trainings for the beneficiaries in vegetable production. • Zrda-supported greenhouse beneficiaries under all programs produced cucumbers, herbs, lettuce, tomatoes, vegetable, and strawberries, generating an income of GEL 2,167,542. Challenges: • Due to the harsh weather conditions, the installation of one greenhouse in was not completed. The installation will be finished in April, 2020. • Continue promotion of off-season vegetable production through the joint program with the IDP Livelihood Agency. Next Steps: • Conduct intensive production online trainings for farmers with the involvement of international and local experts • Continue the Greenhouse Subsidy Program, which subsidizes the establishment and renovation of existing greenhouses through a fixed rebate subsidy scheme.

ZRDA SUB-PURPOSE 3: FACILITATE MARKET LINKAGES BETWEEN PRODUCERS & BUYERS Activities under Sub-Purpose 3 promote new and improved linkages between producers and buyers, ranging from local smallholders to large international companies. In terms of market linkages, a dedicated AMP will not be developed for these activities but rather, linkages will be opportunistically facilitated within other approved activities or directly with partner firms through relationship development activities. Sub-Purpose Level 3 indicators and progress made as of Q1I, FY 2020 are provided in Table 4 below.

Table 4: Zrda Sub-Purpose-Level 3 Indicators SUB-PURPOSE LEVEL 3 INDICATORS

FY 2020 CUM. % OF FY 2020 ACTUAL (% LOP INDICATOR LOP TARGET OF TARGET TARGET TARGET) 3.1.1 Number of new market referrals established through USG assistance (C) 1,200 2 (0%) 7,500 6,330 (84%)

3.2.1 Number of market linkages established through 780 2 (0%) 2,920 2,279 (78%) USG assistance (C)

ZRDA FY 2020 QUARTERLY REPORT II | 15 Activity 3001D: Tourism Trade Fair Support for Regional Promotion Activities • Zrda worked with the Georgian National Tourism Administration (GNTA) and Georgian tour operators to participate in Adventure and Responsible Tourism at ITB Berlin Travel and Trade Show. The Fair, which is one of the biggest shows in tourism industry worldwide was scheduled for March 4-8, 2020. Zrda in partnership with the GNTA completed the ITB Design of a Georgian Booth for ITB Berlin. requirements, but due to COVID-19 Results/Updates: (Photo by: Chemonics International Inc.) developments, the event was canceled 4 days prior to its start date. The GNTA covered space rental costs, while Zrda developed the design and arranged a stand for 8 Georgian exhibitor companies. • Zrda is in the process of negotiating with the ITB administration regarding cost reimbursement, but due to COVID-19, no official decisions have been declared by the Government of Germany. • Prior to the event being cancelled, Zrda mediated a series of discussions with seven tour operators engaged in adventure tourism activities that expressed willingness to attend and planned to share the trade show participation costs. Challenges: • COVID-19 outbreak caused the cancellation of the event. • Zrda will maintain communication with ITB management to get fair-related news and updates. • Adventure Travel Trade Association (ATTA) is scheduling to hold its worldwide “Adventure Next” event in the South in Spring/Summer 2021. To this Next Steps: end, ATTA approached Zrda and GNTA to cooperate and coordinate a trip that gathers up to 200 actors from the tourism sector, including travel agents, suppliers, bloggers, etc. in order to explore the adventure potential of Georgia and promote the country as the desirable destination. GNTA welcomed the offer, but due to the ongoing COVID-19 situation, the discussions on cooperation have been temporarily suspended.

3002A: Digital Transformation Capacity Building trainings for MSMEs.

• To follow up on the digital transformation capacity building activity, Zrda engaged a service provider, Creative Development Center (CDC), to conduct face-to-face trainings for 34 new Zrda beneficiaries. The beneficiaries are representatives of handmade craft masters, cafes/restaurants and small and medium guesthouse businesses from Zrda target communities: Kvemo Alvani, Akhmeta and Tusheti. The training groups formed according to business activities of the beneficiaries and introduced relevant digital tools according to their activity profile. For example, Results/Updates: training for handmade craft specialists’ group focused on using social media tools and Google as business instruments as well as getting connected with local business partners/representatives from the leading local online market (mymarket.ge). • Zrda-hired photographer visited 24 beneficiaries and provided a photo package to better market and promote their businesses online. • CDC conducted remote training sessions with 10 Zrda beneficiaries. • Due to COVID-19, face-to-face trainings with the beneficiaries are not possible. The CDC conducted its first remote trainings/online meeting with Challenges: mentors/coaches introducing tips and tricks of online conferencing. • The CDC conducted remote training sessions with 10 beneficiaries.

ZRDA FY 2020 QUARTERLY REPORT II | 16 3002A: Digital Transformation Capacity Building trainings for MSMEs.

• Zrda will target approximately 150 MSMEs in total. • Trainings and workshops will be held in Gori, Ninotsminda, Akhaltsikhe, Next Steps: Akhmeta, Zugdidi, Tsalenjikha. • Zrda will organize advanced and basic level workshops for former beneficiaries and new touristic MSMEs.

3002B: Tour Operator and Media Info Tours for Product Development Activity - Completed / Pending COVID-19 Situation. • Zrda may consider holding another cycle of info tours across its target regions in order to familiarize Georgian tour operators with new products and services Results/Updates: available in the regions. The activity aimed at providing improved access to the market and upscale public outreach while helping tour operators diversify their offers. Challenges: • No challenges were detected.

Next Steps: • Post COVID-19, Zrda may elect to continue this activity or not.

3002D: Adventure Tourism Product Development in Zrda Target Regions • International Federation of Equestrian Tourism (FITE) approached Zrda asking to facilitate the membership of Georgian Equestrian Federation or relevant association in the world federation for further partnership activities. The benefits of the FITE membership include, but are not limited to, two-year full diploma course accredited in all FITE member countries for Georgian Photo of Rafting and Safety Kayaking equestrian guides. It also offers a strong guide. (Photo by Chemonics International network for members to engage with key Inc.) industry actors and receive updates on modern trends in the market. Results/Updates: • Zrda proposed all horse guides from target regions and other related associations to discuss the offer. Since Georgia has no federation of equestrian guides, participants agreed to collaborate and establish an association of equestrian guides and invite guides from regions beyond the program coverage area. • Once Georgia becomes a member of the FITE, Zrda will engage the FITE technical delegate and continue a series of trainings for horse-riding guides from the Tusheti region. The above mentioned will be conducted after the situation caused by COVID-19 stabilizes. • As an effort to promote safety and introduce modern standards among adventure tourism actors, Zrda is also scheduled to conduct the next round of trainings for rafting and safety kayaking instructors. The project has held negotiations with International Rafting Federation (IRF) to engage experts of the federation. However, the activity is temporarily suspended because of COVID-19. Challenges: • Temporarily suspended due to COVID-19 outbreak.

Next Steps: • Zrda will facilitate trainings for rafting and kayaking guides.

ZRDA FY 2020 QUARTERLY REPORT II | 17 Activity 3002E: Agro/Eco/Adventure Tourism Product/Service Destination Grant Activity

• Zrda identified and provided financial support to a total of 34 beneficiaries across target regions in the culinary field (food and beverage master classes) and outdoor activities to encourage them to create or expand new tourism products Results/Updates: and services and increase revenues. The grants pool was valued at 360,000 GEL with a maximum of 26,000 GEL per award. The upcoming year seems to be unpredictable since most bookings are canceled and efforts to host visitors will be convened after the pandemic.

Challenges: • COVID-19 will negatively impact a significant number of tourists visiting the sites, which will cause a substantial decrease in sales.

Next Steps: • Zrda will monitor the grant projects and will support broader public outreach to raise awareness and foster the increase of sales.

3002H: Kolkhuri Tabla Cookbook Development – Completed.

• Zrda transferred the cookbook “Kolkhuri Tabla” to the Samegrelo-Zemo Svaneti DMO’s ownership in order to assist the organization in its distribution and sales channel management. The DMO negotiated with various bookstores as well as hotels and tourism related actors and as a result, it is Results/Updates: now available for purchase. The “Kolkhuri Tabla” is the second book in a series of books that will help to revive the centuries-old traditions of from three regions. The book includes 50 unique and historic Megrelian, Abkhazian, and Svanetian The “Kolkhuri Tabla” recipe book recipes to promote each region’s cuisine. (Photo by Chemonics International Inc.) Challenges: • No major challenges.

Next Steps: • Activity completed.

3002J: Supporting Sustainable Development of Tourism in Tusheti

• Zrda finalized the procurement of solar panels for the cold storage facility and delivered it to Tusheti. Additionally, Zrda identified a company to provide the design, delivery and installation of the solar panels as well as all the necessary equipment to ensure continuous power supply. The company will assume responsibility to train Results/Updates: local staff on how to operate the facility. • Zrda held a working meeting gathering the Stakeholder Meeting in Akhmeta representatives of Akhmeta Municipality, the (Photo by Chemonics Agency of Protected Areas, Tusheti Protected Internnational Inc) Landscape Administration (TPLA), Tusheti Community Councils and local tourism stakeholders to discuss the establishment of designated camping areas in Tusheti. As such, four potential locations were selected in order to make final decision jointly with the community and

ZRDA FY 2020 QUARTERLY REPORT II | 18 3002J: Supporting Sustainable Development of Tourism in Tusheti

community council representatives. Upon their final decision, Zrda will support the establishment and equipping of the first camping area in the national park. This project will help to prevent overnights at undesignated campsites as well as the potential hazards like fire and land pollution. At the same time, it will facilitate the distribution of tourist flows to villages in need of tourists and create comfortable and safe overnight services. • Zrda will support the Tusheti Protected Landscape Administration (TPLA) to develop a multifunctional website, which will serve to raise awareness of the TPLA’s mission, values, and available services. • Zrda-selected service provider Griffin started to work on creating an online platform for the TPLA to position Tusheti as one of the most desirable destinations rich in exceptional landscape, ancient cultural monuments, cuisine and attractions. • Once the draft of the website content and a visual interface is completed, it will be presented to the TPLA for approval. After launching the website, the Griffin will provide training to the TPLA staff in order to keep the website maintained and updated. Zrda supported TPLA employees to participate in Web-site Interface (Photo by individual capacity-building online trainings in: Chemonics International Inc.) Project Management, Leadership, and Tourism c Management. The goal of the partnership is to support institutional empowerment of the administration, and increase the community’s involvement and oversight of project effectiveness in Tusheti. • Zrda conducted an application process for “Babaneuri Group” representatives in order to select participants for the Community Tourism Study Tour in Romania, and 12 applications were received. Zrda also conducted a community meeting with “Babaneuri group” and different stakeholders involved in tourists transportation focused on developing an entrance monitoring system. With the input and approval from all relevant community stakeholders, Zrda and TPLA plan to implement an entrance monitoring mechanism. Challenges: • Some parts of the activity that require in-person meetings are suspended due to circumstances related to COVID-19. • Work with relevant stakeholders and support capacity-building trainings, workshops and other activities in accordance with the recommendations. • Work with the TPLA and local stakeholders in designing the management plan of the cold-storage facility. • Support capacity building of TPLA staff members with individual courses. • Carry out procurement procedures for the solar panels and ensure its delivery to Next Steps: Tusheti at the beginning of the next tourism season. • Explore potential technology solutions to manage the Tusheti Entrance Fee. • Work with the Agency of Protected Area (APA) to elaborate design of the Tusheti Visitor Centre. • To contribute to eco-friendly tourism, work with the local community to identify a camping area in Tusheti. • Complete fully functional website and finalize content management system.

ZRDA FY 2020 QUARTERLY REPORT II | 19 3002K: Agro-Tourism Development (Agro Stop)

• Due to high demand from international tourists, Zrda started to support agro-tourism development. Agro- tourism is a new sub-sector opportunity for development in Georgia, which is not well understood by either tourism industry actors or policy makers. This activity provides Zrda with an opportunity to pilot a new type of agro-tourism product as well as marketing support to attract visitors to the various experiences. • Specifically, Zrda supported the Georgian Farmers’ Association (GFA) to implement the agro-tourism concept “Agro Stop”. The goal of this initiative is to promote rural tourism and agrotourism sites in two selected regions of Georgia: Samegrelo-Zemo Svaneti Agro-Stop in Samegrelo and Samtskhe-Javakheti. Zrda supported the (photo by GFA) production of three-minute promotional videos targeting tourists interested in low-budget Results/Updates: travel via “auto-stop/hitch-hiking” with a focus on a specific agro-touristic sites, where tourists can experience agricultural activities and a meal with a local family. The promotional videos were promoted on Instagram, YouTube, and TripAdvisor in Georgian and English languages. • GFA, in partnership with Zrda, selected approximately 10 agro-touristic sites in the Zrda target regions to participate in the “Agro Stop” project. Since most potential agro- touristic sites are not yet properly AgroStop in Akhmeta (Photo by GFA) developed, Zrda plans also to issue small grants to such facilities to build their capacity so they are able to offer better services and meet minimum quality requirements. • GFA worked closely with the DMOs in Samegrelo-Zemo Svaneti and Samtskhe- Javakheti to also develop agro-tourism routes including sites to be developed. The routes will be marketed via the DMO websites and will be included on information and familiarization tours for tour operators and media. Challenges: • Due to the COVID-19 crisis, the video-shooting process is suspended. • Create 21 more videos by the end of the year. Next Steps: • After the crisis ends, continue visits to the regions and shoot the video footage material. • Continue promotional activities on social and other media sources.

3004: Handicrafts and Artisan Sales and Marketing Support Activity

• During Q2, the 3rd step of the activity “Enhance Artisans/Crafts Makers’ Business Skills” in Shida Kartli and Kvemo Kartli started. During the reporting Results/Updates: period, Zrda conducted 13 individual consultations and produced prototypes specifically in Kvemo Kartli. Also, Zrda conducted a training in business skills development and the Product Development Workshop.

ZRDA FY 2020 QUARTERLY REPORT II | 20 3004: Handicrafts and Artisan Sales and Marketing Support Activity

• The “Women’s day” fair was held on March 3-8 at Merani Shopping Mall in Tbilisi. 15 artisans from all Zrda target regions participated in the Fair and generated sales of GEL 1,300. • Zrda implemented the pilot project, "Artisan as a Destination," in Akhmeta and Samtskhe-Javakheti where the four grantees in Akhmeta and one in Samtskhe-Javakheti arranged workshops and prepared marketing and promotional materials. Christmas Fair (photos by Through the program, the artisans will be able to Chemonics International Inc.) update their workshops, design master classes and create tour packages for visiting tourists. Challenges: • Activity is on track/no material challenges. • Due to COVID-19, completion of the activity may be delayed. Next Steps: • The third Akhaltsikhe Traditional Handicraft Festival is in the preparation stage, however, the date of the festival may change according to the COVID-19 developments in the country.

Activity 3005: Tourism Promotional Materials Support Zrda Target Regions

• Complementing the Destination Management Organizations (DMO) establishment activity and in line with Zrda’s objective to promote Samtskhe-Javakheti and Samegrelo-Zemo Svaneti destinations at national and foreign tourist markets, Zrda continued to support the development of regional promotional packages for both regions. •The template included an online regional catalogue, social media profiles, a promotional video and photo galleries for each region, and e-templates for print Results/Updates: media (brochures, catalogues, posters, banners, leaflets, business cards). Zrda transferred all materials and online properties to regional DMO ownership in Samtskhe-Javakheti and Samegrelo-Zemo Svaneti. •Zrda’s Communications team actively worked with the Samegrelo-Zemo Svaneti DMO to utilize the marketing tools that Zrda provided, help them build their marketing capacity and promote the region at the national and international level. Zrda Communications team will provide similar support to the Samtskhe- Javakheti DMO staff once fully hired. Challenges: • Activity is on track, no material challenges.

• In Q3 of FY2020, Zrda will supervise the progress of the DMO activities in both Next Steps: regions and provide an option to prepare a similar package of materials for a third area (e.g. Pankisi Valley in Akhmeta Municipality and Mountainous Tusheti).

ZRDA FY 2020 QUARTERLY REPORT II | 21 3006: Community-based Post-Harvest Handling, Packaging, Storage, and Marketing Activity • During the reporting period, Zrda started a Cold Storage Establishment Program and managed to support 29 farmers to arrange cold storage facilities. Thirteen farmers with a cold storage capacity of 1540 cubic meters in total have been already finalized, 10 of which already started storing fruits. To date, 320 tons of fruit have been stored and sold later on at local markets generating income of GEL 289,000. • 16 cold storages are now under construction with a total volume of 2,930 cubic meters. After completion of cold storages, 29 farmers will be able to store up to 1,500 tons of fruits and vegetables. • Zrda selected 12 beneficiaries that will Results/Updates: arrange drying facilities with loading capacities ranging from 250kg to 500kg. The farmers in Cold storage in Atskuri, compli nce with relevant food safety standards a (Photo will arrange a production area and provide by Chemonics International Inc.) drying equipment with relevant training and consultation for dehydration processes. • Zrda-supported beneficiary from Zugdidi started a vegetable drying facility with newly established infrared drying equipment donated by the project and supplied by Heatlife Ltd. Now, the entrepreneur will be able to produce around 85 kg of dried fruits and vegetables daily and sell to the local Cold storage in Samegrelo (Photo supermarket chains and markets. This value- by Chemonics International Inc.) added activity will allow beneficiaries to diversify their production and sell the produce at a higher price off season and generate more income. Another six drying facilities supported by Zrda will be finalized in the upcoming two months. Challenges: • Due to COVID-19, Zrda suspended the international expert’s visit and trainings for drying facility beneficiaries. • Finalize the arrangement of drying facilities and provide technical support to the selected beneficiaries. Next Steps: • Support two small packing houses. • Implement online training/consultations with beneficiaries.

ZRDA FY 2020 QUARTERLY REPORT II | 22 3007: Support Modernization of Major Heritage Monument Complexes

• Zrda finalized the procurement to equip Vardzia, Uplistsikhe and Borjomi Museums with bar code readers and required software for ticket management systems. • Zrda and the Agency for Cultural Heritage Results/Updates: Protection conducted a meeting and discussed areas for future cooperation. Three main activities have been identified: engaging experts in Vardzia-Khertvisi-Oloda Project, organizing an event for IDP youth in Uplistsikhe Meeting at the Agency (Photo by Chemonics International Inc.) and installing touristic information signboards in

eight villages of Tusheti.

Challenges: • Activities are suspended due to COVID-19. • Work with the Agency of Heritage Protection and the Tusheti Municipality to Next Steps: install information signboards in eight villages of Tusheti. • Explore online platforms as a solution to facilitate expert engagement.

3008: Grants Program to Support Museums in Zrda Target Municipalities

• Zrda initiated a new activity aimed at building the capacity of museums located in target regions to provide expanded services to visitors, to enhance the aesthetics of the museum, and improve the overall visitor experience. Recommendations will be made for improvements in display and interpretation services, inclusion of special zones, Results/Updates: and activities targeting children and family. Odzisi Museum (Photo by • 23 applications were submitted in response to the Chemonics International Inc.) RFA announced in support of the museums. Zrda’s Grant Evaluation Committee selected 17 applicants/museums that will go through a training session. During the training session, the selected applicant museum representatives will be able to develop concept papers and identify needs for capacity building in their related museum upon which the Zrda Grant Evaluation Committee will select the finalists to receive grants. Challenges: • Zrda suspended the activity due to the COVID-19.

Next Steps: • Zrda will evaluate the situation on a weekly basis and explore solutions to implement the activity.

ZRDA FY 2020 QUARTERLY REPORT II | 23 ZRDA SUB-PURPOSE 4: PROMOTE LOCAL ECONOMIC DEVELOPMENT BY ESTABLISHING NETWORKS Activities under Sub-Purpose 4 promote improvements of existing networks and the establishment of new networks in the public and private sectors. Sub-purpose level 4 indicators and progress made as of Q2, FY 2020 are provided in Table 5 below.

Table 5: Zrda Sub-Purpose-Level 4 Indicators SUB-PURPOSE LEVEL 4 INDICATORS

FY 2020 CUM. % FY 2020 LOP INDICATOR ACTUAL (% OF LOP TARGET TARGET OF TARGET) TARGET

4.1.1 Number of local/regional markets or market infrastructure (e.g. storage/cold storage, packing/sorting 10 9 (90%) 60 58 (97%) facilities) facilitated with USG assistance (S) 4.2.1 Percentage change in perception of inclusiveness in decision-making processes N/A N/A 60% 73%

4001: Promote Public Economic/Market & Disaster Mitigation Infrastructure Advocacy Planning with Communities · Zrda continued its partnership with target municipalities to support community economic infrastructure and disaster mitigation activities by developing infrastructure design packages for selected municipal priority projects. · During the reporting period, Zrda contracted Village Zemo Alvani Road Before & After (Photo by with LTD Acharkampsheni Chemonics International Inc) to develop and provide a full package of design documents that were assessed by a Zrda engineer and approved by the partner mayor’s office for: 1. The rehabilitation of potable water supply system in village Rukhi of Zugdidi municipality and in village Akhalubani of Results/Updates: ; and 2. The rehabilitation of internal roads in . · During the reporting period the Akhmeta municipality developed and delivered design documents, allocated relevant funds in the local budget, and finalized the rehabilitation of two sections of a rural road in village Zemo Alvani of Akhmeta municipality. · Zrda, in partnership with the managed under the Agency of Protected Areas, issued a task order to the contracted design company for developing a full package of the design for installation of a wooden boat dock and a wooden guesthouse building on the banks of the Churia river. · Zrda continues collaborating with the OSCE to facilitate transmission of funds (EUR 93,458 in total) from OSCE to the local budget in order to implement the rehabilitation of village Tsitsagiantkatri potable water supply project. During the reporting period, the OSCE Vienna Office Conflict Prevention Center representative visited Georgia and organized meetings with Gori municipal officials with the support of Zrda. The parties discussed the procedures for future coordination and the format needed for transferring funds

ZRDA FY 2020 QUARTERLY REPORT II | 24 4001: Promote Public Economic/Market & Disaster Mitigation Infrastructure Advocacy Planning with Communities as a grant to the Gori municipal budget. Zrda provided technical support to the OSCE and Gori municipality in developing a request for the state government approval this quarter. The Gori municipal council submitted the request to the state government and after its approval, the municipality will receive funds from OSCE. The MOU between Zrda, OSCE, and Gori municipality will be finalized and signed in the Q3.

Kolkheti Cottage Architectural Drawings (developed by LTD Acharkapmsheni)

· Zrda in close cooperation with the Ministry of Regional Development and Infrastructure (MRDI) developed and handed over five design document packages for the MRDI selected priority infrastructure to Kakhuri, Zugdidi and Tsalenjikha municipalities. Local municipalities, after receiving approval from a regional expertise company on design documents. will submit a funding request to the MRDI. The MRDI, based on the signed MOU with Zrda, will allocate respective funds for the rehabilitation purpose. The total implementation funds for the selected five projects (water supply, drainage, riverbank reinforcement) is GEL 1.6 million. · State regulations require a selected regional supervision company to review and Challenges: approve all design documents over GEL 50,000. This delayed some of the implementation process for certain infrastructure projects. • LTD Acharkapmsheni will complete full design packages on water supply projects for village Gogasheni in , in addition to a rural road for Varkhani village in municipality and central park in Tsalka. · Zrda will cooperate with partner Next Steps: municipalities to sign the MOUs with Tsalka Central Park (render by LTD Akhalkalaki, Tsalka, and Dusheti for Acharkapmsheni) further issuing task orders to the design company. · Continue cooperation with the OSCE and finalize formal documentation on rehabilitation of Tsitsagiantkari water supply project between Gori municipality and the OSCE. · Continue cooperation with the OSCE/MDF/IFAD/MRDI to seek funding for the developed project designs.

ZRDA FY 2020 QUARTERLY REPORT II | 25 4004A: Beekeeping Cooperative Development (under 4004: Cooperative Development) • Zrda supported 29 beekeeping farmers and seven beekeeping cooperatives with new beehives and modern honey production equipment. Results/Updates: • To date, Zrda has supported 49 beekeeping beneficiaries, helping them produce 56.3 tons of honey, and generate income amounting to GEL 470,000. Challenges: • Due to the COVID-19, trainings for beekeeping farmers were cancelled.

Next Steps: • Support beekeeping beneficiaries by providing trainings and consultations online.

4005: Samtskhe-Javakheti Regional Tourism Development Activity

• Zrda conducted an introductory meeting with the newly appointed senior management staff of the Samtskhe-Javakheti Destination Management Organization (DMO) and delivered marketing materials, including the DMO visual identity package and brand kit, website, videos, and photo gallery developed by Zrda for the Samtskhe-Javakheti DMO. Zrda transferred the ownership of all materials coupled with step-by-step guidance on how to operate and implement the DMO promotional campaigns. At the same time, Zrda made a presentation on digital marketing tools and mechanisms for wide use by the DMO. In addition, Zrda transferred the “Meskhuri Tabla” culinary cookbook to the Samtskhe-Javakheti DMO that will serve as an initial revenue stream to support its operations. Representatives from the Governor’s Office were also present at the meeting and pledged to further support the DMO activities in the region. • Zrda, together with the Samtskhe-Javakheti DMO and its partner Georgian Heritage Crafts Association, conducted a meeting with the Governor of Samtskhe-Javakheti region to provide an overview of jointly implemented projects and discuss future prospects for cooperation with a focus on the Annual Festival of Traditional Crafts Workshops implemented by the Association. The Results/Updates: Festival has become the highlight of the 2018 and 2019 regional events’ calendar but this year it is planned to change the venue and move to the Vardzia Cave Meeting with Samtskhe-Javakheti DMO Monastery. The 2019 festival supported (Photo by Chemonics International Inc) by Zrda brought together 156 craft makers of 75 crafts workshops from all over the country and abroad to show the diversity of crafts fields and to promote master craftsman and their skills. • Zrda contracted a local expert to develop a one-year tourism development action plan for Samtskhe-Javakheti similar to the one Zrda helped to develop for Samegrelo-Zemo Svaneti last year. The expert is contracted for six months with a final aim to develop practical action plan of the regional development over 12-month period. • Zrda supported all employees of Samtskhe-Javakheti DMO to participate in a one month online tailored training on project management. The course Meeting at Samtskhe-Javakheti Governors will be delivered via online platform office (photo by Chemonics International Inc) and provided by the Management

ZRDA FY 2020 QUARTERLY REPORT II | 26 4005: Samtskhe-Javakheti Regional Tourism Development Activity

Academy. The goal of the partnership is to support institutional empowerment of the administration, increase community’s involvement and effectiveness of the projects to be implemented in Samtskhe-Javakheti. • The Samtskhe-Javakheti DMO working group, together with Zrda, continued to produce monthly regional tourism newsletters and monthly calendars of events.

Challenges: • Activity on track/establishment of Kvemo Kartli DMO suspended due to COVID- 19. • Based on the capacity needs assessment, Zrda will provide appropriate technical assistance for both the Samtskhe-Javakheti DMO staff, in areas such as presentation skills, fundraising, proposal writing, trade fair participation, etc. Next Steps: • Continue to support the DMO in organizing Annual Festival of Traditional Crafts Workshops (date will be postponed due to COVID-19). • Together with the DMO team, continue production of the monthly regional tourism newsletters and monthly calendars of events.

4007: Capacity Development of Regional Tourism Information Centers • Zrda finalized the procurement process to equip Marneuli Tourism Information Centre. • Zrda and the GNTA teams elaborated the Results/Updates: concept to organize a training session for TIC staff capacity building.

Marneuli TIC (Photo by Chemonics International Inc.)

Challenges: • The activity has been suspended due to COVID-19.

Next Steps: • Zrda will work with the GNTA to find an online platform as a solution for training implementation.

4009: Samegrelo Regional DMO Support Activity

• Zrda engaged a short-term local expert to finalize the development of the Samegrelo-Zemo Svaneti Tourism Strategy and the Action Plan. As a follow up, the Samegrelo-Zemo Svaneti DMO, together with the local expert presented its Tourism Development Strategy to a wide audience of local tourism Results/Updates: stakeholders and GNTA. Samegrelo- Zemo Svaneti Governor, and other local authorities as well as non-governmental The Action Plan Presentation in Zugdidi organizations and private sector (Photo by Chemonics International Inc) representatives, were part of the vibrant discussion on the priorities and challenges of tourism development in the region. While presenting a five-year action plan, the DMO Head highlighted three tourism development priorities for the region, including revitalizing ancient Kolkheti culture; promoting nature and adventure of the region; and developing of gastro-tourism in the region.

ZRDA FY 2020 QUARTERLY REPORT II | 27 • The regional tourism development strategy, developed by a local expert in close coordination with the Samegrelo-Zemo Svaneti DMO team and GNTA, is a roadmap to promote sustainable tourism development in the region and increase tourism revenue for the local beneficiaries and residents. The DMO will focus on the development of the new innovative tourism products as well as promotion of the existing tourist landmarks in the region. • Zrda supported employees of the Samegrelo-Zemo Svaneti DMO to participate in a one month online tailored training in Project Management. The given course will be delivered via online platform and provided by Management Academy. The goal of the partnership is to support institutional empowerment of the administration, increase community’s involvement and effectiveness of the projects to be implemented in Samegrelo-Zemo Svaneti. • The Samegrelo-Zemo Svaneti DMO working group, together with Zrda, continued to produce monthly regional tourism newsletters and monthly calendars of events.

Challenges: • Activity on track/no major challenges.

• Based on the capacity needs, provide appropriate technical assistance for the Samegrelo-Zemo Svaneti DMO staff, in areas such as presentation skills, fundraising, proposal writing, trade fair participation, etc. Next Steps: • Continue to support the DMO in organizing the annual “Khachapuri Festival”. • Together with the DMO team, continue production of the monthly regional tourism newsletters and monthly calendars of events.

4011: Establishment and Capacity Building of Municipal Disaster Risk Reduction (DRR) Working Groups • During the reporting period, the emergency plan design process was finalized in Ninotsminda, Akhalkalaki and Borjomi Municipalities. The Association Rural Development For Georgia (RDFG) Disaster Risk Reduction (DRR) Center has already received official approvals for DRR Plans from partner municipalities. As a next step, the municipality will present the plan to the council for approval. , DRR Group • The final drafts of Emergency Plans were Meeting (photo credit to RDFG)

submitted to Dusheti, Kaspi and Adgieni Results/Updates: municipalities. The developed plans are attached with the GIS maps of relevant public infrastructure systems (electricity, water, gas, railway). • During the reporting period, the DRR Team commenced the emergency plans design process in Tsalka and Akhmeta Municipalities in close collaboration with Emergency Management Service (EMS) local units. • RDFG is permanently updating and coordinating its activities with EMS Unit’s management. RDFG presented the DRR Center’s activities to the EMS and discussed the issue of local municipalities’ obligation to be delegated the authority by the central government to approve emergency management plans by local municipal councils. RDFG was informed that this issue will be solved by a single governmental decree permanently authorizing all municipalities to adopt the DRR plans by local municipal councils. • The primary challenge remains difficulties in working with a variety of municipal Challenges: stakeholders as well as unstructured information at the local level in newly entered municipalities.

ZRDA FY 2020 QUARTERLY REPORT II | 28 4011: Establishment and Capacity Building of Municipal Disaster Risk Reduction (DRR) Working Groups • The RDFG DRR Center is assisting the EMS in resolving legal deficiencies caused by recent legislative changes related to decision making authority (the municipal council still needs authorization from central government on certain decisions), which has led to delays in approving respective plans at the municipal level. • COVID-19 is the new challenge. Many national risk assessment exercises did not consider such threats with high scores, including Georgia, as they were based on the historical timeline analyses focusing on the interrelation of hazardous events and likelihood of recurrence/level of impact. Now, RDFG has considered adding a separate attachment to the developed plans describing the respective scenario and follow up actions at all phases of emergency management circle. • The meeting planned with Tsalka and Akhmeta local officials are postponed. • Donor Coordination Conference and Simulation Exercise (SIMEX) in Gori Municipality is on hold. • RDFG will continue working with municipal government representatives to finalize emergency management plans in Akhmeta and Tsalka using the remote model. • The RDFG DRR Center was approached by EMS with a request for assistance to Next Steps: mobilize resources in procuring field hospital tents and personal protection equipment in response to COVID-19. RDFG coordinated with Zrda to complete these urgent procurements. • The Donor Coordination Conference will be further discussed with EMS.

4012: CSR Shared Value Challenge Fund – Suspended. • Zrda released an RFA to select the partner NGO to implement the CSR shared Results/Updates: Value Challenge Fund Activity. The applications were received and reviewed by the Zrda Evaluation Committee. Challenges: • The activity has been suspended due to the circumstances related to COVID-19. Next Steps: • It is likely that this activity will be cancelled and the budget assigned for this activity will be realocated to other priority activities.

4013: Support Start-Up and Entrepreneurship Ecosystems in Zrda Target Regions • The aim of the project is to support startups to increase their awareness about their role in the local startup ecosystem and equip them with the necessary competencies to become active participants and engaged in the network of startups in their regions. The activity is aimed at creating a space where Georgian startup players connect with each other and establish strong networks. • Through this activity, Zrda will deliver hands-on trainings to representatives of NGOs in its target municipalities and hold “startup weeks” in each of them. The aim of the trainings is to support the start-up participants to realize their role in Results/Updates: the development of a start-up ecosystem and network of participants, and give them knowledge about diverse case-related topics to help them develop start- ups in their own municipalities afterwards. Furthermore, the activity will provide advisory services and recommendations for organizing trainings and activities aimed at enhancing, development, and building the capacity of the local start-up ecosystem in rural Georgia. • Start-Up Grind Tbilisi submitted an application for the project aiming to develop start-up ecosystems in Zrda target regions; Building upon Start-Up Grind’s well- established expertise in developing and fostering entrepreneurship networks.

ZRDA FY 2020 QUARTERLY REPORT II | 29 4013: Support Start-Up and Entrepreneurship Ecosystems in Zrda Target Regions Zrda will help Start-Up Grind to identify network partners in Zrda target regions, specifically in Zugdidi, Marneuli, Gori and Akhaltsikhe to expand the Tbilisi network to include those regions. Challenges: • The activity started with no material challenges. • Zrda technical evaluation committee will evaluate submitted applications; Next Steps: • Zrda and Startup Grind will plan and organize a series of “Start- up/Entrepreneurship Weeks” in Zrda target regions and design a grant program for regional start-up stakeholders.

CROSS-CUTTING MANAGEMENT OBJECTIVES Crosscutting activities focus on effective communications, donor collaboration, and capitalizing on the entrepreneurial, educational, and creative potential of youth and both sexes in differentiated ways. Zrda, through baseline, midterm, and final assessments, will disaggregate data by sex to help inform activity design, implementation, and monitoring.

EURO-ATLANTIC INTEGRATION Zrda continues to promote Euro-Atlantic integration across all sub-purposes. The main area of focus was DCFTA and applicable international certifications and standards that are required of producers and processors that seek to target export to the European Union. For example, Zrda has approved the development of an information campaign as part of its activity promoting increased adoption of standards and certifications (Activity 1003, Food Safety & Certification Promotion). As a steppingstone towards European standards, Zrda implementing partner GFA and the MoA continue working to popularize the GeoGAP system that will provide a platform to promote food safety and quality standards at an intermediate level for the domestic market and will begin the process of upgrading standards that aspire to meet EU compliance requirements.

INTEGRATING GENDER AND YOUTH:

Gender and youth integration have been a cross-cutting focus across all Zrda activities, and additional stand-alone activities will be designed as opportunities arise in the future.

9904C: Strengthening Georgia’s Rural Youth through Entrepreneurship

· Under this activity, Zrda provides support to rural youth by deploying entrepreneurship related services and by utilizing the entrepreneurship training toolkit developed substantially based on the UNIDO’s Start & Grow entrepreneurship training toolkit. • During Q2, Zrda partner organization RDFG continued youth activities and began information campaigns in nine Zrda target municipalities - Zugdidi, Kaspi, Gori, Results/Updates: Borjomi, Adigeni, Aspindza, Ninotsminda, Marneuli, and Bolnisi - to register for the final Phase III of the Regional Youth Entrepreneurship Project. However, due to COVID-19, the timeline for local trainings registration, actual local trainings, and bootcamp are on hold. • Under this activity, Zrda also provides support to rural youth by organizing professional orientation and career guidance trainings for school students 14-18 years of age (9-12 graders) and assisting/equipping them with the skills to choose a career.

ZRDA FY 2020 QUARTERLY REPORT II | 30 9904C: Strengthening Georgia’s Rural Youth through Entrepreneurship

• During the previous quarter, RDFG selected and trained over 20 professionals to provide professional orientation and career guidance trainings at selected public schools in nine target municipalities - Zugdidi, Kaspi, Gori, Borjomi, Adigeni, Aspindza, Ninotsminda, Marneuli, and Bolnisi. Out of all trained professionals, 14 completed the certification process. • In Q2, certified trainers started offering professional orientation and career guidance trainings/services (including group and individual consultations) in all municipalities except for Ninotsminda (due to weather conditions). The trainings were initially scheduled for completion by the end of April 2020. • By the end of Q2, trainings were completed in Marneuli, Zugdidi, and Adigeni municipalities (with the exception of public school in ) with trainings still to be offered/finished in the remaining target municipalities. Overall, about 300 school students took trainings until the COVID- 19 State of Emergency was announced and six out of nine target municipalities trainings were partially completed (with the exception of Ninotsminda) when public schools closed. • RDFG, together with its certified trainers, expedited the option of offering the trainings online. The trainings will be first piloted and then offered to those students, who can participate in video calls (either through Zoom, Messenger, or Skype) organized by the RDFG certified trainers. • As a result of COVID-19, the State of Emergency has been announced, closing all schools in the country and restricting groups of more than three unrelated people attending meetings, and trainings. Interaction is a critical part of this activity and as such, the project has been suspended temporarily until the activity is able to resume. Challenges: • Another important challenge observed is a low rate of registration for local trainings, which can be partially attributed to the State of Emergency. • Major obstacles to successful trainings include: limited access of rural youth to computers and/or internet at homes/outside schools; quality of internet service; extended timing of trainings (difficulty of offering trainings online vs. in interactive group settings); quality of modified materials (from interactive to lecturing). • Although the information campaign for Phase III started, it will last until the State of Emergency is annulled. • Local trainings have been tentatively re-scheduled for the end of April and the Next Steps: bootcamp until end of May 2020. • The RDFG certified trainers will continue offering/finalizing trainings in Q3 either online, where possible (as discussed above), or directly at selected schools as soon as such schools reopen after the State of Emergency.

9907C: Youth Volunteer Internships for IDP Support Outreach Activity (under 9907: Internships)

• In Q1, under the joint project of Zrda and the Livelihood Support Agency (LSA) under the Ministry of Internally Displaced Persons, Labor, Health and Social Assistance (MoH), over 15,000 IDPs (4,667 IDP families) living in 45 settlements from two of the Zrda target regions (Samegrelo-Zemo Svaneti and Shida Kartli) Results/Updates: benefited from information campaigns related to social services offered to them by the Georgian Government. • In Q2, another round of the trainings of volunteers and information campaigns for IDPs was conducted.

ZRDA FY 2020 QUARTERLY REPORT II | 31 9907C: Youth Volunteer Internships for IDP Support Outreach Activity (under 9907: Internships) • During the most recent round of trainings/information campaigns, RDFG received Challenges: limited support from the LSA which has had an impact in terms of desired results of information campaigns.

Next Steps: • No future trainings/information campaigns are foreseen this year.

PARTNERSHIP & COORDINATION UPDATES

Zrda has prioritized donor and GoG coordination throughout all proposed activities. Zrda sees collaboration as key to reducing duplication of efforts between partners as well as generating leverage that will increase and expand Zrda’s intended development impact as much as possible. Zrda leverages partnerships with stakeholders across government, civil society, and other donor projects to achieve transformative and sustainable impact in target communities. Zrda has designed its strategic approach to seek partnership and leverage both financial and non-financial resources as the best option to achieve intended project outcomes, with Zrda financial investments used to incentivize and multiply the efforts of Zrda partners for greater impact. During Q2 FY2020, Zrda continued to establish significant partnerships with private sector entities as well as with international organizations to promote economic development of the regions of Georgia. Ongoing partnerships are not highlighted below, rather new and exciting partnership opportunities are summarized.

Partnership with Gazelle Fund LP Zrda established a partnership with Gazelle Fund LP (Gazelle Finance), an investment manager that provides growth-oriented risk capital through mezzanine financing and equity investments to promising, high-growth MSMEs in the Eurasia region. Gazelle Finance is interested in improving their outreach and market intelligence and exploring partnership opportunities to support the identification and attraction of reliable MSMEs as potential clients. The goal of the partnership is to support target value chain strengthening and sustainable MSMEs growth in target regions and communities by facilitating access to Gazelle’s financing schemes.

The investment agreement signed between Gazelle Finance and internet provider company ORDUNET in Samegrelo provides equity investment of $500,000 to extend network and coverage area. It is expected that after the project implementation, current annual turnover of the company, which amounts to about GEL 1 Million, will increase three times. The funds were was transferred to ORDUNET and network extension work started during the reporting period.

Partnership with Anaklia Development Consortium (ADC) Due to certain developments with the Anaklia Development Consortium (ADC), at the beginning of the Q2, the ADC management confirmed that they no longer could meet commitments made in the partnership agreement with Zrda and would not finance any further activities. Based on this fact, Zrda and the ADC agreed to a mutual termination of the Partnership Agreement as the correct course of action given the situation. As part of the termination agreement, the ADC granted Zrda a “right of use” for all equipment purchased by them for implementation of the training center activity. Zrda committed to complete the training center activity with an additional six months of training activities, to allow students served during the initial period to continue their trainings while also providing opportunities for new students to join.

Zrda additionally decided to proceed with the Kolkheti National Park recreational services improvement project, since the activity still falls within Zrda’s scope. Zrda will support the Samegrelo Zemo-Svaneti DMO to organize a Khachapuri Festival in Rukhi, since this activity contributes to new touristic product development.

ZRDA FY 2020 QUARTERLY REPORT II | 32 9990/001: Anaklia Education Hub

• In Q2, Zrda together with the Kobuleti Community College “New Wave,” started a new training program in Zugdidi Municipality. The training program included the following courses: Housekeeping (4 months); Front Office (4 months); Restaurant Management (4 months); Chef Assistant (4 months); Bartender (2.5 months). The goal of the Program was to train new workforce and build capacity of hospitality industry in the region. Results/Updates: • In order to promote the training program, and attract more participants, Zrda held one-week informational meetings with residents of Zugdidi Municipality in January 2020. The New Training Programs Open Door government and local municipality Day (Photo by College New Wave) representatives attended these meetings, as well as Kobuleti College team members. Zrda also mobilized local valunteers to distribute information around the municipality. Overall, 58 applicants signed up to participate in the trainings. • The trainings started in February 2002 in Zugdidi and Anaklia hotels as well as in a Zugdidi based bar “Mego-bar”.

Challenges: • Due to the COVID-19 restrictions, the training program has been suspended.

Next Steps: • Trainings will continue once the restrictions are lifted.

9990/002:Kolkheti National Park Development

• Zrda, based on the Memorandum of Understanding (MOU) with the Agency of Protected Area (APA) and Zugdidi Local Municipality, began the ropes park procurement process in the Kolkheti National Park. During this reporting period, the Zrda team met with the company that won the tender to design and provide Fishermen house Design in Kolkheti equipment and materials for the ropes park National Park (Photo provided by and discussed the implementation process of Chemonics International Inc ) the activity and next steps. The company Results/Updates: procured materials for construction and will transfer the materials to APA, which will contract for the construction of the ropes park. • Both APA and Zrda approved the design of the fishermen house developed by the contractor company. • The next step is to prepare an environmental assessment of the ropes park and the fishermen house, before the construction work can start. Zrda identified a company to conduct a thorough assessment of the potential environmental impact of the construction work on flora and fauna of Kolkheti National Park. • To further boost the touristic attraction of Kolkheti National Park, Zrda developed the MOU, and in partnership with Ilia State University and LTD Anima Chatbotics, agreed to develop an interactive book about Kolkheti National Park.

ZRDA FY 2020 QUARTERLY REPORT II | 33 9990/002:Kolkheti National Park Development

The book will transport readers through time to learn the history and rich traditional folklore of Kolkheti by describing different historical facts, myths and legends, and a variety of scientific fields, such as botany, zoology, archaeology, etc. The book will be animated with augmented reality technology, enabling the reader to see 3D images of illustrations using mobile device cameras. • The book will be available in both Georgian and English languages. The development of such a book will raise awareness of the region and promote Kolkheti National Park as a new and undiscovered touristic destination for a variety of tourists.

Challenges: • Due to the outbreak of the COVID-19, the activities planned for spring 2020 are postponed. • Complete the procurement of all equipment for construction of the ropes park and store them in the warehouse. • Finalize the development of a detailed budget for construction of fishermen house according to the approved design. Next Steps: • Conduct the detailed environmental assessment of potential effects of construction works of fishermen house in Kolkheti National Park. • Sign the MOU between Zrda, Ilia State University and LTD Anima Chatbotics to develop an interactive book about Kolkheti National Park. • Sign a sub-award with Anima Chatbotics to develop content for the Book.

9990/003: Business Support Grants for Anaklia

• In this reporting period, two outstanding projects were completed under the MSME Grants Program. The projects included: arranging greenhouses and processing facilities (bay leaves, etc.), opening a training center, arranging a sewing workshop, opening a confectionary Results/Updates: bakery and cafes. The Zrda team Sewing Workshop (Photo by conducted Chemonics International Inc.) multiple site visits to monitor and evaluate the Grantee’s Greenhouse (Photo by constructed greenhouses. Zrda also Chemonics International Inc.) assessed the food safety and environmental compliance.

Challenges: • COVID-19 may cause a delay to fully complete the MSME Grant Program.

Next Steps: • Zrda will continue monitoring the Grant Program beneficiaries and measure the impact.

ZRDA FY 2020 QUARTERLY REPORT II | 34 9990/009: Khachapuri Festival

• Within the Memorandum of Understanding (MOU) signed between the Gastronomic Association of Georgia, Zrda and the Samegrelo-Zemo Svaneti Destination Management Orgaizaiton (DMO), the parties agreed to organize the Results/Updates: second annual Khachapuri Festival in Rukhi village on September 26, 2020. • Based on the abovementioned MOU, the association developed a concept note and a budget for the Khachapuri Festival ’20 and presented it to Zrda and the DMO. Both parties reviewed and approved the draft concept.. • Due to COVID-19, all business activities in the target regions and potential Challenges: sponsors have either stopped or postponed their activities or focused on COVID-19 crisis management. • After the development and approval of the new branding for the Khachapuri Next Steps: Festival, the Association and Samegrelo-Zemo Svaneti DMO will elaborate sponsorship offers and approach potential sponsors for the festival.

9990/010: “Young ambassadors to community” Volunteering Program- completed. • In February, the ACED program volunteers performed their final door-to-door campaign within the project, disseminating information materials for the upcoming training courses in Zugdidi and Anaklia. • In March, after the completion of the Volunteer Program, Zrda officially donated bicycles to 15 volunteers of the “Young ambassadors to community” program. Zrda granted an additional bicycle to the Samegrelo-Zemo Svaneti DMO.

Results/Updates:

ACED Volunteer with the Zrda donated bicycle (Photo by Chemonics International Inc.)

Challenges: • No major challanges observed.

Next Steps: • Activity cpmpleted.

Partnership with BP Zrda continues its partnership with British Petrolium to implement a joint community development project in 41 villages of Shida Kartli and Samtskhe-Javakheti.

ZRDA FY 2020 QUARTERLY REPORT II | 35 Partnership with BP: Small Business Development Program (SBDP) in Shida Kartli implemented by Elkana • During Q2, Biological Farming Association Elkana, BP’s contracted partner in implementing the Small Business Development Program (SBDP) to support 22 villages in Shida-Kartli, continued monitoring all 49 small business grantees funded through the first and second cycle. In total, they generated GEL 44,446 in income and served 1,200 customers with Training, Village Gomi, Khashuri Results/Updates: agricultural products and service. municipality (Photo by Elkana) • Elkana continues implementing the third cycle of the small grants program, through which it received 101 applications. Based on the eligibility criteria, Elkana selected 84 applicants for further monitoring and assessment. After conducting site visits, only 62 applicants were invited for Business Plan writing training of which 53 submitted full Business Plans. The evaluation committee meeting was held and based on the pre-defined criteria, the committee selected 45 applicants to receive grants. Interviews with selected applicants will occur next quarter. • Since cooperation, BP/Elkana leverage for this period amounted to GEL 12,715. Challenges: • Due to COVID-19, Elkana postponed the planned interviews with the 45 selected applicants and will develop a new approach to conduct interviews remotely. • For the next reporting period Elkana will conduct interviews with selected applicants and work remotely with them to collect documentation needed for the subaward signing while Zrda will support procurement and delivery of the Next Steps: requested equipment/materials. • Elkana will regularly monitor first and second phase beneficiaries and report monitoring data to Zrda for all 49 of them.

Partnership with BP: Community Development Initiative (CDI) In Kvemo- Kartli and Samtskhe-Javakheti (RDA) • During the Q2 period, Zrda continued its partnership with BP and the local implementing Partner RDA for implementing their community development Initiative (CDI) in Zrda and BP joint villages in Samtskhe-Javakheti and Kvemo- Kartli regions. • By the end of the reporting period, RDA monitored business operations of all 47 beneficiaries selected through the first cycle of competitive process of Small Business Development components. Due to the winter season since a majority of awarded Results/Updates: grantees are in the agricultural sector, overall sales for the quarter were relatively low, in total generating GEL 60,635.

• For the second round of the Small Business Development Component, RDA received 95 Village Avranlo, Tsalka applications for Zrda and BP joint villages and based on (photo credit to RDA) the pre-defined criteria, the selection committee scored and selected 66 applicants to invite to the Business Plan writing trainings. • For the Community Development Component, the RDA, for the second cycle of community Infrastructure Rehabilitation component, received 11 applications from local CBOs. Based on field visits and pre-defined eligibility criteria and

ZRDA FY 2020 QUARTERLY REPORT II | 36 Partnership with BP: Community Development Initiative (CDI) In Kvemo- Kartli and Samtskhe-Javakheti (RDA) coordination with target municipalities, RDA selected eight infrastructure projects to fund: one in Adigeni municipality, three in Akhaltsikhe municipality and four in . RDA continues to regularly monitor and evaluate operations of the eight completed infrastructure projects to ensure sustainability of projects. • RDA, through its agricultural knowledge center component, continues capacity building of agro centers and facilitates agro consultations to provide consultation on seasonal requirements. Agro consultants visited 10 farmers in target villages to monitor fruit and vegetable storage norms, as well as introduce new varieties of high-volume vegetables and crop seeds. • During the reporting period, Zrda leveraged GEL 47,607 from BP on implementing joint activities in 19 villages in Kvemo-Kartli and Samtskhe- Javakheti region.

Challenges: • Due to COVID-19, RDA postponed planned trainings for selected 66 applicants and will work to adjust to conduct trainings remotely. • For the Small Business Development Component, RDA will conduct Business Plan writing trainings remotely and review applications for further discussion and selection of final applicants for funding. Next Steps: • For the community development component, RDA will remotely coordinate with target municipalities to receive letter on contribution, as well define list of construction materials to provided by for local CBOs.

TELLING OUR STORY/COMMUNICATIONS:

Throughout the fourth year of its implementation, Zrda’s communications objectives continue to focus on raising awareness and understanding of the project impact to ensure favorable public and stakeholder perceptions of Zrda’s accomplishments and agenda. In Q2 FY 2020, Zrda designed its communications tools to maximize development impact, project outcomes, and the visibility of the project and project partners. Social Media Platform: The USAID Zrda Activity in Georgia Facebook page has actively promoted the project by publicizing its current initiatives, announcements, and accomplishments to wide audiences of beneficiaries, stakeholders, partners, and the public. The communication team’s overall objective was to deliver information that helps to make social media responses and engagement better. Zrda regularly reviews and analyzes Facebook analytics that provide a snapshot of its page’s performance, particularly focusing on different core areas including page likes, post reach, engagement, and others. Increase of Total Zrda Page Likes in January 2020 – March 2020: The Zrda Facebook page continues to increase its audience from about 9,274 in January 2020 up to 9,845 at the end of March 2020. The graphic below shows audience increase by month, total participants at the start of the period, and monthly totals and period-ending totals.

ZRDA FY 2020 QUARTERLY REPORT II | 37 Average Post Reach/Engagement in October 2019 - December 2020: The Reach Graph shows the number of people Zrda’s post reached and the positive engagement that helps the page reach more people. People continue to gravitate toward visual content because videos, pictures, and graphics are often easier to absorb and share. Based on the below analytics, we can say that with more Facebook users than ever using mobile devices to scan their news feeds, visual posts continue to be increasingly important to sharing Zrda’s stories and impact:

Facebook post for Q2 2020

Average Post Reach/Engagement in January 2020 – March 2020: The Reach Graph shows the number of people Zrda’s post reached and the positive engagement that helps the page reach more people. People continue to gravitate toward visual content because videos, pictures, and graphics are often easier to absorb and share. Based on the below analytics, we can say that with more Facebook users than ever using mobile devices to scan their news feeds, visual posts continue to be increasingly important to sharing Zrda’s stories and impact:

ZRDA FY 2020 QUARTERLY REPORT II | 38 Facebook post: Zrda-supported Women Beneficiaries - Eto Zakarashvili from Shida Kartli

ZRDA FY 2020 QUARTERLY REPORT II | 39 Facebook post: Zrda supported Women Beneficiareis – Maka Korkelia from Samegrelo

Facebook post: Father Jacob, USAID/Zrda-supported Equestrian Club “Khareba” owner from Samegrelo

ZRDA FY 2020 QUARTERLY REPORT II | 40 Facebook post: Gradutation and certificate handover of Regional Tour Guides Short-term Training Program

Website: The communications team continued to regularly update the Zrda website that serves as a repository of project information and public documents; structured project achievements and evaluation; and communicates transparency by supplying reliable and accurate information about challenges, successes, lessons learned, calls for grant applications, and other information. Having conducted a “content refresh” of the website that included adding, updating, and even removing pages that offered no value, the comm team reshaped content based on the website analytics and a clear understanding of what works to make informed decisions about where time and effort is best spent.

USAID Zrda website: www.zrda.ge

Telling our Story: The communications team continues to seek opportunities to share the personal stories of project results with key stakeholders, including USAID/Georgia, GoG, private sector companies, associations and cooperatives, educational institutions, other local entities, and the media.

ZRDA FY 2020 QUARTERLY REPORT II | 41 When appropriate, the project develops success stories with a focus on the positive impact of Zrda activities, like a Zrda-supported new tourism product or an ABL farmer using new agricultural techniques or producing new crops. The project’s social media channels shares these stories with the partners and media to generate positive press on the project and its key partners.

Video: Zrda, through its core partner Georgian Farmers’ Association is implementing a video-telling story activity that highlights its beneficiaries operating in the agro-tourism sector across Samegrelo, Samtskhe-Javakheti, Pankisi, Tusheti, Shida Kartli, and Kvemo Kartli. To date, the GFA team completed nine videos which are very popular among Georgian audiences. Facebook: აგრო სტოპი AGRO STOP

Events: During the reporting period, Zrda hosted high-profile events with USAID and GoG participation being of highest priority and interest to Zrda’s audiences:

✓ Joint USAID and BP visit to the jointly implemented sites (Jan’20) ✓ Opening of the Kindergarten rehabilitated jointly by Zrda, OSCE and Gori Municipality (Jan’20) ✓ New service industry development trainings in Samegrelo (Jan’20) ✓ Certificate handover within Regional Tour Guides Short-term Training Program (Feb’20) ✓ Khachapuri Conference (Feb’20) ✓ Meeting with the Winners of the Regional Youth Entrepreneurship Program (March’20)

Zrda publicised all events through online media including Facebook and Zrda partner ministry/agency/regional government websites and national television and local broadcasters - Public Channel, Imedi, Palitra TV; DIA and in Shida Kartli, TV and Radio Atinati in Samegrelo- Zemo Svaneti; and online media channels.

ZRDA FY 2020 QUARTERLY REPORT II | 42 The Messenger: USAID Mission Director and BP Georgia Country Director Visit Jointly Implemented Projects in the ABL villages of Shida Kartli

ZRDA FY 2020 QUARTERLY REPORT II | 43 Opening of the Kindergarten Jointly Rehabilitated by Zrda, OSCE and Gori Municipality in the ABL Kveshi Village

Winners of the Regional Youth Entrepreneurship Program implemented by Rural Development for Future Georgia

Activities/Events planned for Q3 of FY2020:

Considering COVID-19 developments, most of these events have been suspended.

ZRDA FY 2020 QUARTERLY REPORT II | 44 ENVIRONMENTAL COMPLIANCE ACTIVITIES: Zrda’s Environmental Specialist (ES) performed environmental assessments of all service providers and sub-awardees with new activities or sub-awards initiated during Q1I, FY 2020 including:

• Activity 4001 “Promote Public Economic/Market & Disaster Mitigation Infrastructure Advocacy Planning with Communities”: several infrastructural projects were studied and evaluated against environmental compliance. Prepared ERCs were submitted to MEO/USAID office/BEO for approval. Most of them were approved and remaining ones are under development. 1. Rehabilitation of Ninotsminda and Adigeni/ village Varkhani/ roadways - approved. 2. Designs preparation for Odzisi Kindergarten and Odzisi roadway/Dusheti Municipality/ Both approved. 3. Preparation of design for Rehabilitation of Central park and the April 9th Memorial park in Tsalka, submitted to MEO/USAID office/BEO for approval. 4. The Environmental Specialist together with Zrda engineer visited the Kolkheti National Park to perform environmental and technical assessment of planned activities, particularly, installation of rope park, boat dock and wooden guesthouse. During the first stage the project design was prepared by the design company and the biodiversity impact assessment is underway. After approval of the biodiversity impact assessment, the project development will start. • The designs of infrastructure projects were already finalised and submitted to Zrda for further review. The Environmnetal Specialist reviewed the projects for environmental compliance and submitted the appropriate comments to the design company to update the project designs. (1. Rehabilitation of roadways in Ninotsminda and Adigeni Municipalities; 2. Rehabilitation of water supply system in Rukhi village, Zugdidi Municipality; 3. Rehabilitation of water supply system in Akhalubani village, Khashuri Municipality; • Activity 2005 “Greenhouse Technology Promotion & Trainings” (updated): evaluated 15 applicants (Zrda Target regions) against the environmental compliance, and gave appropriate recommendations to the applicants; • Activity 2002 “Train Farmers on Market-Driven Production Practices”: 20 applicants planning to arrange fruit and vegetable demonstration plots, were evaluated against environmental compliance, and the appropriate recommendations were delivered to the applicants. • Anaklia Grants Program applicants were monitored on implementation of environmental and food safety requirements to complete the appropriate milestones. • For Zrda Agriculture sector, beneficiaries using plant protection means in their activities, based on PERSUAP 2017- Pesticide Evaluation Report and Safe Use Action Plan/ DCN: 2017-GEO- 022/, requisite packages were prepared including both hard and electronic versions /important brochures and leaflets on safe use of Pesticides and Personal protection equipments’ (PPE- Coveralls, gloves, safety glasses and a half-face respirator/air-purifying respirator). The existing packages will be delivered to applicants. • Currently the new/updated PERSUAP 2019 is at the final stage of approval. Based on the updated PERSUAP the training sessions for Zrda beneficiaries’ will be performed in late summer.

MONITORING AND EVALUATION: See Annex A for the Zrda indicator tracking matrix that provides results against Purpose and Sub- Purpose level indicators.

ZRDA FY 2020 QUARTERLY REPORT II | 45 ANNEX A. ZRDA INDICATOR TRACKING MATRIX FY 2021 INDICATOR FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LOP NO. NAME TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL

PURPOSE-LEVEL INDICATORS & ILLUSTRATIVE TARGETS Value of sales generated by $0 $0 $6,000,000 $1.667.484 $10,000,000 $9,321,473 $10,000,000 $14,074,705 $6.000,000 $6,660,435 $4,000,000 $36,000,000 $31,724,097 1 MSMEs over life of $0 project (P/F2) Number of MSMEs generating new 0 0 170 189 300 323 220 323 90 75 20 0 800 910 2 sales over life of project (P)

Number of new 3 0 0 400 375 600 314 700 391 500 135 200 0 2,400 1,215 jobs created (P)

Number of households 4 increasing income 13,200 7,527 by at least 25 percent (P) Percentage change in Zrda Resiliency Index measuring capacity of +10% 39% 5 beneficiary communities to cope with shocks to livelihoods (P) Number of stakeholders implementing risk- reducing practices/actions to 6 improve resilience 900 1,244 to livelihood shocks as a result of USG assistance (P/S)

2 FtF Indicator: “Value of incremental sales (collected at farm-level) attributed to FTF implementation (4.5.2-23)” is included herein but also called out separately as a FTF indicator in the table.

ZRDA FY 2020 QUARTERLY REPORT II | 46 FY 2021 INDICATOR FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LOP NO. NAME TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL

Total value of funding leveraged from GOG and 7 other sources for $27.556 $27.556 $800,000 $977.441 $1.400,000 $ 1.216.938 $900,000 $629,931 $350,000 $1,734,818 122.444 $3,600,000 $4,586,684 infrastructure and non-infrastructure projects (P/F3) Number of beneficiaries using 8 improved 0 0 1,800 77 2,500 528 2,500 1060 2,200 8,905 600 9,600 10,570 infrastructure services (P)

SUB-PURPOSE 1 LEVEL INDICATORS & TARGETS/ACTUALS

Number of business plans supported as 1.1.1 a result of USG 0 0 50 62 130 131 130 121 30 47 10 0 350 361 assistance (C) Number of MSME-s accessing evidence based market 1.2.1 research through 0 0 600 1.245 1,000 3.525 1700 7,056 800 5,517 400 0 12,500 17,343 associations/BSOs (C) Number of assisted MSMEs that have incorporated updated standards 1.3.1 0 0 40 56 80 24 130 259 15 1 5 0 420 340 to product development as a result of USG assistance (C) Number of public- 1.4.1 private dialogues 4 4 27 29 90 48 90 21 60 12 29 0 300 114 facilitated (C)

3 FtF Indicator: “Value of new private sector investment in the agriculture sector or food chain leveraged by FTF implementation (4.5.2-38)” is included herein but also called out separately as a FTF indicator in the table.

ZRDA FY 2020 QUARTERLY REPORT II | 47 FY 2021 INDICATOR FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LOP NO. NAME TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL

Number of MSMEs operating more profitably (at or 1.5.1 0 0 50 103 100 246 200 242 100 217 50 0 780 808 above cost) because of USG assistance (S)

SUB-PURPOSE 2 LEVEL INDICATORS & TARGETS/ACTUALS

Number of households accessing market 2.1.1 data through USG- 0 0 1,570 12.074 30,000 6.134 20,000 31,894 10,000 29,750 3,000 0 64,570 79,852 supported communication channels (C) Number of households and others who have applied new technologie 2.2.1 s or 0 0 950 590 1,100 3.644 1300 1,456 900 687 750 0 7,000 6,377 managemen t practices as a result of USG assistance (C/F) Number of individuals who received USG 2.3.1 supported short- 138 138 650 526 1,000 630 800 548 600 297 412 0 3,600 2,139 term agricultural sector productivity training (C) Number of hectares under 2.4.1 improved 0 0 1,002 347.4 2,000 1.275 1,700 569 900 89 398 0 6,000 2,281 technologies or management

ZRDA FY 2020 QUARTERLY REPORT II | 48 FY 2021 INDICATOR FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LOP NO. NAME TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL

practices as a result of USG project (F)

SUB-PURPOSE 3 LEVEL INDICATORS & TARGETS/ACTUALS

Number of new market referrals 3.1.1 4 4 153 4.136 500 1.465 3,350 723 2,000 2 93 0 7,500 6,330 established through USG assistance (C) Number of market linkages facilitated 3.2.1 trough USG 0 0 138 1.174 300 705 1,680 398 780 2 22 0 2,920 2,279 Assistance (C)

SUB-PURPOSE 4 LEVEL INDICATORS & TARGETS/ACTUALS

Number of local/regional markets or market infrastructure (e.g. storage/cold 4.1.1 storage, packing/ 0 0 5 4 20 19 17 26 10 9 8 0 60 58 processing/sorting facilities) facilitated with USG assistance (S) Percentage change in perception of inclusivenes 4.2.1 s in 60% 73% decision- making processes (S)

FTF INDICATORS & TARGETS/ACTUALS

Number of rural 4.5.2-13 households 258 258 6,000 14.235 30,000 25.763 22,000 41,145 11,000 37,883 3,200 0 80,500 119,284 benefiting directly

ZRDA FY 2020 QUARTERLY REPORT II | 49 FY 2021 INDICATOR FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LOP NO. NAME TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL

from USG interventions (F)

Number of food security private enterprises (for profit), producer organizations, water users associations, 4.5.2-11 women’s groups, 0 0 40 90 100 65 100 169 30 56 10 0 280 380 trade and business associations, and community based organizations (CBOs), receiving USG-assistance (F)

Value of incremental sales (collected at farm- 4.5.2-23 level) attributed to $0 $0 $3,000,000 $258.167 $4,700,000 $3.667.078 $5,000,000 $3,539,627 $3,000,000 3,851,591 $2.300,000 $0 $18,000,000 $11,326,463 FTF implementation (F) Value of 4.5.2-29 agricultural and $0 $0 $110,000 $193.804 $130,000 $349,033 $ 250,000 $367,114 $ 200,000 $188,688 $90,000 $0 $ 1,000,000 $1,098,639 rural loans (F) Number of MSMEs, including farmers, 4.5.2-30 receiving 0 0 110 72 150 147 170 59 115 44 55 0 600 322 USG assistance to access loans Value of new private sector 4.5.2-38 investment $0 $0 $175,000 $225.961 $250,000 $192.764 $250,000 $529,609 $140,000 $244,636 $25,000 $0 $1,100,000 $1,193,070 in the agriculture

ZRDA FY 2020 QUARTERLY REPORT II | 50 FY 2021 INDICATOR FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LOP NO. NAME TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL

sector or food chain leveraged by FTF implementa tion (F) Number of private enterprises, producer organizations, water users associations, women’s groups, trade and business 4.5.2-42 0 0 35 49 80 60 85 39 20 5 0 225 160 associations, and 12 community based organizations (CBOs) that applied new technologies or management practices. (F) Number of People gaining employment as a result of 4.6.3-2 participation in 0 0 80 257 300 141 250 3 50 20 0 700 418 USG-funded 17 workforce development programs Number of persons completing USG- 504 4.6.3-4 funded workforce 0 0 140 1066 850 388 900 466 495 15 0 3,200 2,424 development programs

CROSSCUTTING INDICATORS & TARGETS/ACTUALS

Percentage of GNDR2 female participants 35% 44% in USG-assisted

ZRDA FY 2020 QUARTERLY REPORT II | 51 FY 2021 INDICATOR FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LOP NO. NAME TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL TARGET ACTUAL

programs designed to increase access to productive economic resources (assets, credit, income or employment)

ZRDA FY 2020 QUARTERLY REPORT II | 52

ANNEX B. SUCCESS STORIES (ATTACHED)

ZRDA FY 2020 QUARTERLY REPORT II | 54

ANNEX C. ZRDA ACTIVITY MAP

Note: Zrda Monitoring and Evaluations System offers Zrda activities map with detailed information on Zrda beneficiaries: https://georgiazrda.devresults.com/en/dash/map

ZRDA FY 2020 QUARTERLY REPORT II | 55

U.S. Agency for International Development 1300 Pennsylvania Avenue, NW Washington, D.C. 20523 Tel.: (202) 712-0000 Fax: (202) 216-3524 www.usaid.gov

ZRDA FY 2020 QUARTERLY REPORT II | 56