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ZRDA ACTIVITY IN GEORGIA 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 Anaklia 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 Abkhazia 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 ZRDA FY 2020 QUARTERLY REPORT II i 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 Tusheti 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 ZRDA FY 2020 QUARTERLY REPORT II ii 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 ZRDA FY 2020 QUARTERLY REPORT II iii 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 ZRDA FY 2020 QUARTERLY REPORT II | 1 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
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