HONDURAS LOCAL GOVERNANCE ACTIVITY

QUARTERLY PERFORMANCE AND FINANCIAL REPORT

January 1 – March 31, 2020

Activity Title: Honduras Local Governance Activity

Sponsoring USAID Office: Democracy and Governance Office

IDIQ Number: AID -OAA -1-14 -00061

Task Order Number: AID -522 -TO -17 -00001

Contractor: DAI Global LLC.

Date of Submission: April 30, 2020

This report is made possible by the generous support of the American People through the United States Agency for International Development (USAID). The contents are the responsibility of DAI and do not necessarily reflect the views of USAID or the United States Government. ii | FY 2020 // QPFR I

TABLE OF CONTENTS

Executive summary 1 Result 1 - Civil Society Influence, Through Evidence Increased 2 Sub-Result 1.1 Citizen participation in service delivery decision-making strengthened 3 Sub Result 1.2 Evidence-based citizen oversight of service delivery increased 4 Result 2 Local Service Provider Performance Improved 6 Sub Result 2.1 Accountability of Service Providers Increased 6 Sub Result 2.2: Service Provider’s Capacity to Manage Service Delivery Improved 8 Sub Result 2.3 Local Government administrative management capacity increased 11 Local Government Management to Reduce Migration and Promote Local Economic Development: 15 Coordination with USAID IMs, IPs and Other Donors 18 Crosscutting Themes 19 Collaborating, Learning and Adapting (CLA) Agenda 21 Financial Report 25 Annex 1: Technical Assistance Summary by Sector (FY 2020 Q2) 27 Annex 2: Progress by Sub-Activity, divided by Sector 28 Annex 3: Status of Municipal Transparency Plans 29 Annex 4: Status of CAM Law Implementation 29 Annex 6: Lower Level Indicators 29 Annex 7: Coordination with other IMs (Lower Level Indicator 10) 29 Annex 8: Counterpart Contribution and Leverage Report 29

iii | FY 2020 // QPFR I ACRONYMS

ACS Alliance for the Dry Corridor ACJ* Alliance for Christian Youth ACL Advancing with Books (USAID Quality Reading Materials Activity) AMHON* Association of Honduran Municipalities APF* Parents and Family Association CAM* law Municipal Administration Career law CEN Nutritional Training Centers CENISS National Center for Social Sector Information CEB* Basic Education Center CCT* Citizen Transparency Commissions CIT* Indigenous Transparency Committee CLA Collaborating, Learning and Adapting CM Municipal Commissioner CNA National Commission on Anti -Corruption COMAS* Municipal Commissions of Water and Sanitation CONEANFO* National Commission for Non -Formal Education in Honduras CSO Civil Society Organization DDE* Departmental Education Directorate DLAL* From Readers to Leaders (USAID Honduras Reading Activity) DME* Municipal Education Directorate DME* Municipal Education Directorate DO2 Development Objective 2 DR Director of School Networks FHIS* Honduran Fund for Social Investment FUNIDE Initibucan Foundation for Development* FY Fiscal Year GEMA* Governance in Ecosystems, Livelihoods, and Water Activity HLG Honduras Local Governance Activity HR Human Resources IAIP* Institute of Access to Public Information ICT Information and Communications Technology IM Implementing Mechanism

iv | FY 2020 // QPFR I IP Implementing Partner ISO International Organization for Standardization IT Information Technology LED Local Economic Development LEPP Local Education Performance Plan LGBTI Lesbian, Gay, Bisexual, Transgender and Intersex MESCLA Monitoring and Evaluation Support for Collaborative Learning and Adapting M&E Monitoring and Evaluation MOU Memorandum of Understanding NGO Non -Governmental Organization ODK Open Data Kit OMM* Women’s Municipal Office POA* Annual Operating Plan Q1 First Quarter Q2 Second Quarter Q3 Third Quarter Q4 Fourth Quarter Red ITC Community Technical Institute Network RENTCAM* National Registry of Municipal Administration Career Technicians RFA Request for Applications SAFT* Integrated System for Municipal Financial Tributary Management SAMI* Integrated Municipal Administration System SEDUC* Secretariat of Education SETCAM* Technical Secretariat for the Municipal Administration Career SIARED* School Networks Administrative System SIARH* Integrated System of Administration of Human Resources SGJD* Secretariat of Governance, Justice and Decentralization SMI Service Management Index TSC* National Audit Institution UDEL* Unit of Local Economic Development UMA* Municipal Environmental Unit USAID U.S. Agency for International Development USG United States Government WMB Water Management Board

*Acronyms with an asterisk are in Spanish. The meaning of most Spanish acronyms has been translated for the clarity of this report.

v | FY 2020 // QPFR I

Executive summary During the second quarter of Fiscal Year (FY) 2020, the Activity continued support to citizens, local governments, and service providers across 41municipalities of western Honduras to increase transparency and implement effective administrative management practices. Until mid-March, the Activity provided direct technical assistance to 41 local governments, civil society organizations (CSOs), and school networks to increase self-reliance and decrease citizen’s intention to migrate by promoting local economic development and community rootedness (LED).

Under Result 1, as a result of citizen influence, local governments and service providers not only made commitments to improve service delivery but also acted on those commitments. This citizen influence proved critical leading up to the COVID-19 pandemic. For example, in response to citizen oversight recommendations key service improvements in water and nutrition service delivery were made. Specifically, water management boards (WMBs) strengthened water resource oversight and school networks improved distribution of school snacks ( merienda escolar). Also this quarter, 32 public policies, all Municipal Transparency Plans, were approved. These plans allowed local governments and citizens to take advantage of January Accountability Events to review FY 2019 budget expenditures and the upcoming FY 2020 budget. Each of the 41 local governments held an Accountability Event this quarter in compliance with the Law of Municipalities and approved Transparency Plans. As required by the Plans, local governments used Accountability Events as a public space for Citizen Transparency Commissions (CCTs) and Municipal Commissioners to present on the status of citizen oversight and access to public information, as well as upcoming social audit and oversight efforts to continue to improve service delivery.

In response to COVID-19, several local governments began distributing food and supplies using municipal or departmental resources prior to the Government of Honduras’ (GOH) announcement of Operation Solidaria at the end of March (see more information below). Citizen’s in those municipalities put their oversight skills to work by accompanying the local government as they distributed the resources. The CCT and Youth Social Auditing Committee (CJAS) in Marcala, for example, accompanied representatives of the local government, mancomunidad MAMCEPAZ , and representatives from departmental government on March 25 to deliver 400 bags of food to the households most in need. These food supplies were purchased with funds from the departmental government.

Under Result 2, the Activity continued to work closely with national, departmental, municipal, and school network education officials to improve administrative management practices based on data generated from supervision and Local Education Performance Plan (LEPP) monitoring digital tools, while also supporting the development of targeted projects to reduce migration and generate community rootedness. As a result of these efforts, local governments like San Agustín, La Paz invested in renovating the Simon Bolivar school center so at least 60 children could receive classes in an adequate space. Additionally, the local government in San Marcos, Ocotepeque committed to funding bilingual English training as part of a targeted project to better prepare youth for jobs that require English. Local governments continued to implement the Municipal Administrative Career (CAM) Law with support from the Technical Secretariat for the Municipal Administrative Career Law (SETCAM). As a result of these efforts, 51 municipal employee performance evaluations were conducted for the first time (bringing the total to 238 evaluations to date), and with oversight from citizen monitoring committees (CLS). These actions ensure that civil servants comply with position requirements and the CAM Law, thus improving the quality of municipal management.

To reduce irregular migration and promote local economic development, the Activity continued to strengthen 14 LED units and support the implementation of approved LED Agendas in municipalities that are amongst the highest recipients of returned migrants according to CENISS. Close to 100 youth benefitted from entrepreneurship initiatives in four municipalities (Copán Ruinas, San Marcos, Macuelizo, and Gracias) and planning for new entrepreneurship funds began in four more municipalities. Jovenes Constructores , a program that aims to position 196 youth (including 15 from Quimistan, funded entirely by the municipality) to either obtain employment, start entrepreneurship activities, or return to school as an alternative to migrating, was launched in San Marcos, Ocotepeque and Macuelizo, Santa Barbara.

This quarter brought important advances toward self-reliance with two mancomunidades: MAVAQUI and Higuito. MAVAQUI concluded a grant that provided technical assistance and training to Azacualpa and Macuelizo, and leveraged support to four municipalities outside the Activity’s area of implementation. As a product of MAVAQUI’s support, Macuelizo and Azacualpa, as well as two additional municipalities, increased urban and rural own-source revenue collection between 2019 and 2020. Mancomunidad Higuito became the first mancomunidad in Honduras to be approved to receive ISO9001:2015 quality management certification. This certification will bolster the

1 | FY 2020 // QPFR I organization’s capacity to support municipalities in western Honduras to be more self-reliant and serve as a model for other mancomunidades across Honduras.1

The following report presents key advances from January 1 to March 31, 2020. For detailed reports on technical assistance provided and advances by sub-activities, refer to Annex 1 - technical assistance summary by sector, and Annex 2 - progress by sub-activity.

*Status of COVID-19 response at the close of the quarter :

On March 16 th , Honduras entered a period of nation-wide quarantine in response to the COVID-19 pandemic. Immediately, the Activity team adapted to remote work and continued critical technical assistance virtually to local stakeholders while also developing a tailored response to the pandemic. As mentioned above, several local governments began distributing resources using municipal, departmental, or NGO funds shortly after March 16 th . On March 29 th , the GOH announced the decentralization of the Operation Honduras Solidaria, a program for first- hand humanitarian and food supply assistance. Under this program, local governments would receive a direct funds transfer from the central government to procure and distribute food and supplies to benefit up to 710,744 families.

The 41 municipalities in the Activity’s area of implementation will receive up to 1.9 million dollars to support 94,752 families by providing them with food supplies (Bolsa Solidaria) and the school snack ( merienda escolar ). This decentralized responsibility presents several challenges for local governments related to procurement, access to supply chains, and delivery, all while maintaining transparency, accountability, and public access to information. Civil Society Organizations were tasked with conducting social audits of the process in order to ensure transparency.

To support local governments, service providers, and citizens in their response to COVID-19, the Activity developed and submitted a comprehensive plan for redirection of specific programmatic activities, such as a supplies delivery to local governments, health centers, and hospitals; remote support to local governments as they implement the Operation Honduras Solidaria; and coordination with other donors and the Association of Municipalities of Honduras to disseminate key communications materials as needed.2 This plan was approved by USAID on March 30 th .

The Activity also began to work with the education sector immediately to identify ways to support central, departmental, and local school officials to adapt to remote education. With remote education, several challenges arise including the lack of access to internet or televised education resources. The Activity is working with the Secretariat of Education to adapt management practices to this new context. Additionally, the Activity is adapting its support related to local economic development so that local economies are better prepared for re-activation once the quarantine period is over. With Jovenes Constructores, activities and assignments were provided virtually, and students began taking online courses through the Carlos Slim Institute.

Fundamental to the Activity’s response is constant coordination with USAID and other Implementing Mechanisms (IMs) and international donors. The Activity continues to seek synergy and complementarity with other actors to ensure an effective response to the pandemic.

HONDURAS LOCAL GOVERNANCE ACTIVITY: QUARTERLY PERFORMANCE AND FINANCIAL REPORT

Result 1 - Civil Society Influence, Through Evidence Increased During the quarter, the Activity supported citizens to follow-up on local government and service provider commitments –made through public policies or in response to citizen oversight recommendations– to improve service delivery. Citizens also engaged in on-going oversight of Municipal Transparency Plans and Municipal Administrative Career (CAM) Law implementation. From January through early March, citizen influence

1 While a physical copy of the certification was mailed in March, due to COVID-19 disruptions, the digital certificate will be sent in April. 2 The Honduras Solidaria operation seeks to provide food rations (Bolsa Solidaria) and hygiene kits to at least eight hundred thousand (800,000) Honduran families affected by the global crisis. The Government of Honduras will provide direct funds transfers to local governments to procure supplies from local producers and suppliers. 2 | FY 2020 // QPFR I resulted in tangible improvements to education, water and sanitation, and nutrition public services (discussed below).

On March 16, when Honduras initiated nation-wide quarantine in response to the COVID-19 pandemic, many citizens across western Honduras assumed a new role in overseeing local government distribution of vital food and sanitation resources. 3 Of the Activity’s 41 municipalities, 27 CCTs immediately began participating in efforts to ensure transparency during the crisis, building on evidence-based oversight skills acquired with Activity support from FY 2017-FY 2019. The following section details results stemming from strengthened citizen participation in service delivery decision-making and improved evidence-based oversight of service providers and local governments, not only to achieve service improvements, but also to guarantee transparent access to critical resources during the COVID-19 national emergency.

Sub-Result 1.1 Citizen participation in service delivery decision-making strengthened Service improvements, as a product of citizen influence, increase community preparedness and self-reliance in the weeks leading up to the COVID-19 pandemic. For any recommendation or public policy to be implemented, it requires sustained citizen participation and continuous monitoring and follow-up. Additionally, service providers and local governments must be both committed to responding to citizen demand, and capable of implementing improvements. During the quarter, the Activity supported citizens, local governments, and service providers to implement 27 recommendations stemming from citizen oversight and approve 32 public policies. Examples range from a parent’s association (APF) supporting the identification of 55 at-risk students to receive local government scholarships to attend school (citizen recommendation Santa Ana, La Paz) to the implementation of a Municipal Transparency Plan in Chinacla, La Paz. With each recommendation and policy implemented, communities become more self-reliant and resilient as they work together to improve public services. Exhibit 01 shows the number of recommendations implemented by sector. All public policies implemented this quarter were Municipal Transparency Plans and apply to several sectors (advances detailed below).

Number of recommendations implemented by sector Q2 FY 2020

4

3

17 3

Water and Sanitation Local Economic Development Education More than one service

Exhibit 01 : Number of recommendations implemented by sector during the quarter. Highlight from this quarter: In several municipalities, recommendations and policies implemented during the quarter were especially critical leading up to the COVID-19 emergency. Management of water resources and ensuring food security for children and families immediately became top priorities as COVID-19 spread in Honduras. Of the recommendations and policies implemented during the quarter, several contribute to

3 It is important to clarify that the decentralized procurement and distribution of Bolsa Solidaria was launched on March 29 th , however prior to this date several local governments procured food resources using other, non-central funds. 3 | FY 2020 // QPFR I improved water and nutrition resource management and better position local governments to respond to the emerging crisis. Water and Sanitation: 1. As a product of citizen influence in Camasca, Intibucá, a new board of directors was elected to the Association of Water Management Boards (AJAAM) during a WMB community assembly, replacing what was previously a defunct board. This action installed a critical management structure, necessary to coordinate decision-making across WMBs in the municipality, and will permit improved capacity to manage water resources in the municipality during the COVID-19 crisis. 2. In Trinidad, Copán, the WMB received multi-stakeholder assistance from NGO Helvetas and mancomunidad Higuito to support quarterly water production monitoring (a recommendation stemming from an August 2018 social audit). The study, conducted in February, allows the WMB to ensure adequate access to water in the community, which is particularly important to prevent COVID-19 spread through improved sanitation.

Food Security in School Networks: 1. In La Labor, Ocotepeque, and San Agustín and San Juan de Opoa, Copán CCTs and APFs promoted the improved distribution school lunches ( merienda escolar) based on findings from oversight efforts. For example, San Juan de Opoa improved storage, refrigeration, and distribution of lunch supplies. La Labor increased participation of APF members in distribution oversight. These efforts set these actors up to manage food distribution during the COVID-19 crisis transparently and effectively.

Sub Result 1.2 Evidence-based citizen oversight of service delivery increased CAM Law monitoring committees continue to observe municipal personnel selection and evaluation to ensure transparency and equity in municipal HR Management. Municipal Human Resource (HR) management often lacks transparency and can result in weaker local government capacity. Through the CAM Law, not only are local governments implementing improved controls and HR processes, but they are opening the door for the first time to citizen oversight. The Activity has worked closely with SETCAM to establish local CAM Law citizen monitoring committees (comité local de segumiento – CLS ) in all 41 local governments in the area of implementation. The CLS are comprised predominately of local CCTs and representatives from local CSOs and are responsible by law for overseeing municipal HR staff as they complete personnel selection and evaluation. CAM Law monitoring committees are a form of continuous citizen oversight that will permit the sustainability of improved HR management. Each CLS is approved by the mayor and protected by the CAM Law, thereby giving citizens the legal protection needed to participate and provide feedback on HR management on an ongoing basis, beyond the life of the Activity. This quarter, the impact of continuous citizen oversight of municipal human resource management was evident in Corquín (Copán), where the president of the CCT was involved in determining training needs of municipal staff, validating the identification of staff weaknesses in coordination with the Deputy Mayor and head of the Municipal Personnel Unit (UMAP). In San Pedro Tutule (La Paz), the CLS identified that a municipal employee was fired without justification. This employee had previously received a strong performance evaluation with CLS participation. Upon learning that the employee was fired without proper justification by the mayor, the CLS was able influence the mayor to re-hire the employee by referencing the proper procedures outlined in the CAM Law. This action ensures that the local government retains talented and qualified employees. CSOs in Marcala and San Juan de Opoa oversee local government food delivery in response to COVID-19 . In the face of COVID-19, the Activity’s work during prior years to strengthen citizen capacity to oversee service delivery based on evidence is ever-more important. According to Transparency International, humanitarian assistance places citizens and communities at a greater risk of being victims of corruption. 4 On March 16, when Honduras began nation-wide quarantine, several local governments used municipal or departmental funds or partnered with NGOs and international donors to distribute food to vulnerable families. On March 29, the Government of Honduras announced the decentralization of the distribution of Honduras Solidaria (Honduras Exhibit 02: CCT overseeing delivery of Solidarity) through direct funds transfers of approximately 355 million food to a family in Marcala, La Paz

4 Corruption in humanitarian aid: a double disaster. Retrieved from https://www.transparency.org/news/pressrelease/20060806_corruption_in_humanitarian_aid_a_double_disaster 4 | FY 2020 // QPFR I

Lempiras to provide food to up to 710,744 families. Citizen oversight of this assistance is critical to ensure transparency and that resources reach citizens in need.

In Marcala (La Paz), the Youth Social Auditing Committee (CJAS) that was formed under an Activity grant with the Alliance for Christian Youth (ACJ), has been working with the CCT since mid-March to oversee food delivery throughout the municipality that was procured with departmental government funds (See Exhibit 02 ). During the first delivery, on March 25, the CJAS and CCT joined representatives from the Honduran Congress and mancomunidad MAMCEPAZ in overseeing the delivery of 400 bags of food. The representatives were impressed with the level of capacity and training that the citizens demonstrated. Following the delivery, the CCT and CJAS formed several groups to review delivery acts and verify that information was correct.5 Yesamary Rodriguez, coordinator of the CCT, states “we were prepared to ensure that the support was provided exactly as it should have been, that it arrived in the households most in need and not based on political affinity or religion. Additionally, the local government believes in us as an organization to guarantee and protect the wellbeing of citizens .” She also expressed gratitude for the skills acquired with the Activity, sharing “HLG trained us to do this work and today we have the necessary knowledge that we didn’t have before. People see our CCT vests and know that we have credibility and aren’t political. In this emergency, citizens feel safe that the support will arrive in its entirety. Without HLG’s training, this work would be much more difficult.” This initial experience overseeing food delivery prepared the CSOs for upcoming oversight of the Bolsa Solidaria in early April.

In San Juan de Opoa (Copán), the mayor asked for the CCT’s support in forming a Solidarity Commission including municipal and citizen leaders. This committee began collecting funds and requesting credit from food distributors in order to distribute food resources to at-risk households. During the last weeks of March, the CCT and local government were able to distribute resources to households. While the Activity was unable to obtain a count of households supported by the end of March, by mid-April 1,400 households had received food purchased with the funds raised by the Solidarity Commission. More detail will be provided next quarter.

Annual January Municipal Accountability Events demonstrate achievements made as a result of evidence-based citizen oversight. Each January, Local Governments are required by the Law of Municipalities to hold annual accountability events where they present on expenditures and investments from the previous year and share the upcoming fiscal year budget. This January, citizens and local governments used these public decision-making spaces to present on advances made in the implementation of Municipal Transparency Plans and outlined their investments in transparency for the coming year. Notably, this January, 19 of 21 local governments who had previously approved FY 2019 transparency plans allowed citizen representatives from CCTs and Municipal Commissioners to present on efforts undertaken during the previous year. Examples include: CCT, neighborhood association, and Municipal Commissioner of Cabañas (La Paz) verifying on a consistent basis that the local government was uploading information to the Institute for Access to Public Information (IAIP) Transparency Portal and conducting two social audits on water management boards. In Santa Ana (La Paz), the CCT worked to ensure citizen participation in the review of the FY 2020 municipal budget and conducted a social audit on the health system to review budget execution. In addition to presenting on advances of FY 2019 plans, 38 local governments and citizen representatives presented FY 2020 Municipal Transparency Plans during the accountability events. Under Intibucá’s 2020 plan, CSOs will review water management board accountability reports, participate in oversight of CAM Law implementation, conduct social audits of four water management boards, and oversee various infrastructure projects. In Chinacla (La Paz), citizens will continue to participate in oversight of CAM Law implementation and conduct two audits of recruitment, selection, and evaluation of municipal personnel. These public commitments to transparency, as well as the strengthened relationship between citizens and local governments, will allow municipalities to continue to foment a culture of transparency and access to information that is particularly important when responding to the COVID-19 pandemic. Activities to be initiated or intensified next quarter.  Much of the Activity’s work plan depends on the resolution of the COVID-19 pandemic. If quarantine continues for the majority of the third quarter, the Activity will shift its focus to support citizens to oversee delivery of assistance to at-risk communities by providing remote technical assistance and tools to citizens to aid their oversight efforts.  If field work can resume, the Activity will continue to support citizens to follow up on commitments made in public policies and citizen recommendations.

5 The Activity could not obtain the total number of Acts reviewed at the end of March, but by mid-april, 3,313 Acts had been reviewed by CSOs 5 | FY 2020 // QPFR I

 Additionally, the Activity will continue to promote youth involvement in local economic development initiatives through participation of Youth Networks in LED roundtables.

Result 2 Local Service Provider Performance Improved Both in response to citizen demand and resulting from tailored technical assistance from the Activity, this quarter education service providers and local governments continued to successfully and sustainably improve performance by institutionalizing accountability mechanisms and improving their management and administrative capacity. Specifically, local governments and citizens launched a new year of transparency through annual accountability events and education officials committed to act to reduce irregular migration by implementing targeted projects. Local Economic Development (LED) Units advanced in developing and implementing initiatives to promote local economic opportunities for youth at-risk of migrating in 14 prioritized municipalities. The following section details advances under Result 2: Local Service Provider Performance Improved. Sub Result 2.1 Accountability of Service Providers Increased LOCAL GOVERNMENTS Local governments demonstrate a sustained commitment to transparency and accountability through January accountability events. January accountability events served as public spaces for local governments to reiterate their commitment to transparency to citizens while also sharing FY 2020 municipal budgets for citizen input. The Activity monitored information shared during the events closely and documented the ways that local governments are promoting a continued culture of transparency. 1. All 41 local governments have Municipal Transparency Plans in place, with 24 local governments approving their second consecutive annual plan (see Annex 03 for more detail). As discussed under Sub-Result 1.2, local governments provided citizens with an opportunity to present on advances in the implementation of plans during the accountability events. Activities shared include oversight of social infrastructure projects, school meals, HR performance evaluation processes and water boards. Beyond discussing activities from the previous year, the 41 local governments shared a combined investment of approximately $76,000 to implement transparency plans during the upcoming year. Ten municipalities that formulated their Municipal Transparency Plan for the second consecutive year have increased their budget for 2020 in order to support citizens to conduct more oversight. Intibucá, for example, increased its budget allocation for transparency by 86% (from $ 1,834 to $ 3,404). The local government made this decision as it believes the support of the CCT and Municipal Commissioner in overseeing municipal investment projects, service delivery, and citizen access to public information is vital to promote a culture of transparency. Funds will be used to follow up on recommendations stemming from a FY 2019 social audit of the Women and Youth Municipal Office. In response to this audit, the local government also committed more funds to youth programming. 2. In addition to sharing progress in the implementation of Transparency Plans, local governments shared FY 2020 investments in service improvements with citizens during the events. In four municipalities in Copán, for example, local governments shared a combined 74 percent increase in investments in education (discussed further under Sub-Result 2.2 Education). By sharing details on the FY 2020 budget, local governments are providing citizens with information that they can use to determine whether education, water and sanitation, and nutrition services are being delivered satisfactorily and if there is a need to influence future government decision-making. The January accountability events demonstrated the cycle of transparency that has grown stronger with the implementation of Municipal Transparency Plans. As citizens gain greater access to public information and are given the opportunity to oversee and influence service delivery and municipal management, local government respond and renew their commitment to citizens going forward (see Exhibit 03 ).

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Exhibit 03: Continuous cycle of transparency sparked by Municipal Transparency Plans

Activities to be initiated or intensified next quarter.  In response to COVID-19, identify needs for remote assistance to ensure transparency of Bolsa Solidaria funds management.  Continue to follow-up on the implementation of municipal transparency plans, coordinating with the IAIP as needed.

EDUCATION Secretariat of Education (SEDUC) assumes commitments and leads planning for the second national Supervision survey. In March, the 2020 supervision planning workshop was held in Gracias, Lempira under the leadership of SEDUC. The workshop was attended by the 18 Department Directorates of Education (DDE) supervision coordinators and leveraged approximately $3,000 in multi-stakeholder resources and technical assistance from the Supervision Roundtable (GIZ $1,400, CRS $940, and USAID/DLAL $468 – See Annex 08 for more information on leverage). During the workshop, SEDUC discussed the second supervision survey scheduled for June 2020 and led the review of improvement plans based on the results of the 2019 survey. For the 2020 survey, supervision coordinators and education officials will survey a total of 10,577 schools nationwide, representing 40% of total school centers (representing 40% of the total nation-wide). The total number of schools to be monitored in western Honduras are; Copán (550), Intibucá (439), La Paz (400), Lempira (598), Ocotepeque (305) Santa Bárbara (636); making a total of 2,928 schools. Not only in western Honduras, but across the country, supervision officials will use the app developed by the Activity to assess teacher performance, compliance with education regulation, and human resources practices, among other areas of education management. The data generated from this second survey will then be compared to 2019 data to determine whether schools have made improvements to management practices based on 2019 results. During the workshop, the Activity coordinated with GIZ to present data on the weakest school networks according to the 2019 supervision survey and presented a standardized format for supervision coordinators to assist school networks to respond to weaknesses. At the national level, there are 36 municipalities with school networks with low results, 6 of which are in the western Honduras (Lempira and Santa Bárbara departments, specifically). Weaknesses include administrative processes in school centers and basic operations of the Education Development Council and School for Parents. Improvement plans must be developed in 13 schools in the municipalities of: Piraera (6), La Iguala (2), Lepaera (1), Santa Rita SB (2), Ceguaca (1), and Macuelizo (1). HLG and GIZ planned to provide joint technical assistance in April to these 13 schools and will reevaluate this plan based on COVID-19 developments next quarter. Highlight from this quarter : The Activity provided technical assistance to the 6 DDE supervision coordinators throughout the quarter to support analysis and dissemination of 2019 supervision monitoring data. The 6 DDE have implemented actions to improve education management. For example, the DDE of Ocotepeque, through the supervision coordinator and network coordinator, trained 58 school network directors on the supervision model and implement improvements such as monthly administrative meetings between teachers and network directors, and participation of parents’ associations in school network activities.

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Results of LEPP monitoring enables evidence-based decision making, strengthening transparency and improving education services in school networks. In July 2019, school networks across western Honduras applied the Local Education Performance Plan (LEPP) monitoring tool to collect data on performance against the five modules of the LEPP.6 Based on monitoring results, school network coordinators are leading the elaboration and implementation of improvement plans, utilizing the online dashboard developed by the Activity. HLG provided technical assistance to seven municipal directorates, and three school networks for the analysis and dissemination of LEPP monitoring data. Three DDEs (Ocotepeque, Copán and Lempira) developed improvement plans during the quarter and will begin implementation in April. Under the leadership of the network coordinators and DME, improvement plans have been implemented in 12 school networks in the municipalities of: San Marcos Ocotepeque, Concepción, San Agustín, Jesús de Otoro, Marcala, Santa Ana, Santa Elena, Santa María, El Níspero and Nuevo Celilac. Notably, the school network Gigantes del Saber in the municipality of Santa Maria, La Paz worked with the local government to improve school infrastructure, which was a weakness identified in the LEPP monitoring. The local government committed approximately $25,760 to remodel the Simón Bolívar school center and add another building. In February 2020, construction of the school center was finalized after two walls were reconstructed, a new door and flooring were installed, and a new electrical system was put in place. The refurbished school center can now fit 60 students comfortably. Next quarter, implementation of LEPP monitoring plans will continue in more school networks. SEDUC expressed interest in expanding the LEPP monitoring tool to all 18 departments of Honduras, as was done with the supervision model. For this to happen, USINIEH will take the lead on the adaptation of the existing tool and updating school network and center locations in SEDUC servers. The Activity will provide coaching and guidance as needed, but SEDUC is ultimately responsible for this process. Activities to be initiated or intensified next quarter.  Monitor the implementation of LEPP and Supervision improvement plans to ensure service improvements.  Pending COVID-19 pandemic duration, support SEDUC to develop a strategy to monitor remote classes using existing technology and apps. Also pending availability of funds and USAID approval, provide school networks with cleaning supplies to ensure safe return to school.

Sub Result 2.2: Service Provider’s Capacity to Manage Service Delivery Improved EDUCATION Implementation of targeted projects to reduce migration in school networks boosted by municipal investment and coordination with USAID De Lectores a Lideres. The Activity has prioritized the 14 municipalities that are among the highest recipients of returned migrants to promote the use of targeted projects ( proyectos específicos in Spanish) as a tool to address migration at the local level, thus allowing school networks and citizens to develop and implement solutions irrespective of national-level support. This quarter, the Activity began working closely with newly appointed migration points of contact within each DDE ( enlaces de migración) to coordinate with municipal education officials in the implementation of the targeted projects approved during the first quarter (29 projects approved in as many school networks). In total, 26 school networks conducted activities that aimed to promote community rootedness and raise awareness on the risks of migration. 7

Lepaera stands out for implementing targeted projects in all 15 networks in the municipality. In Lepaera, USAID DLAL provided support by delivering of reading and writing materials and posters related to migration. The CEGUACA Network in Lepaera used the School for Parents space to raise awareness through talks related to the risk of irregular migration. During the event, parents of children and teachers participated; logistics and food was donated by the school network. In this same meeting, the school network updated data on migration in the geographical area, consolidating the answers to the following questions: How many children and adolescents from the geographical area of the network migrated irregularly during 2019? What was the main reason that led them to migrate? How many families have a close relative living in another country? Who of the family members (Father-Mother-Son) made the decision to emigrate to another country? What can we do as a school network to reduce the intention to migrate irregularly?

In San Marcos (Ocotepeque), Lepaera (Lempira), and Cabañas (Copán), through the combined influence of school network, municipal, and departmental education officials, local governments have also committed to supporting the implementation of the projects. For example, as a product of influence in the five networks of San Marcos, Ocotepeque, the municipal council approved approximately $8,000 in investment to the network Brisas de Gualjoco

6 Five modules of LEPP include: Financial Administration, Community Relations, Integration (convivencia), Organization, and Curricular 7 Corquín (4), Cabañas (4), Lepaera (15), San Marcos de Ocotepeque (3) 8 | FY 2020 // QPFR I for the targeted project on migration to develop an English program as a second language; the program aims to train 27 teachers from 14 schools benefiting 506 students with the purpose of strengthening English competency to improve the youth employment outcomes.

The Activity also continued coordination with SEDUC’s National Program on Attention to Returned Migrant Children to develop a standard guide on how to develop targeted projects as an annex to SEDUC’s returned migrant protocol. In February, the Activity hosted a workshop with SEDUC and USAID DLAL to review the guide. A validation workshop was planned in Marcala, Jesus de Otoro, and Intibucá in March, but was cancelled due to the COVID-19 emergency. This event will be rescheduled remotely so that the guide can be launched by the time school returns to session.

Four municipalities in western Honduras report a 74% increase municipal investment in education, demonstrating self-reliance through their commitment to improve local service delivery. In 2019, the U.S Agency for International Development (USAID) through Honduras Local Governance Activity supported the approval and implementation of Public Policies on Education in four municipalities of Copan. As part of integrated technical assistance, the Activity supported the development of the public policy, strengthening capacities of the local government and municipal education officials to monitor the policy’s implementation, and promoting citizen oversight of the execution of commitments made.

In 2019, these four municipalities took steps to implement aspects of the public policies by leveraging resources with public and private partners to provide sufficient, healthy school meals, increase teacher coverage, and ensure access to high school education for youth who had previously dropped-out, among others.

Efforts to improve education service delivery did not stop there. Based on the priorities established in the public policies, these four municipalities have increased their budget for education by 74%. The decision to increase investment in education was agreed upon by local education authorities and civil society members and announced during annual accountability events held in January (see Exhibit 04 ).

Exhibit 04: Increase in budget allocations for education in four municipalities in Copán Municipalities with Public Policies on Education Municipality Budget Expended 2019 Budget 2020 Difference Cabañas $ 30,659.13 $ 32,259.13 $ 1,600.00 Concepción $ 87,904.74 $ 127,063.90 $ 39,159.16 Copán Ruinas $ 28,000.00 $ 61,608.39 $ 33,608.39 San Agustín $ 72,000.00 $ 160,000.00 $ 88,000.00 $ 218,563.87 $ 380,931.43 $ 162,367.56 Examples of prioritized investments for each municipality include:  Copán Ruinas will donate school kits for students in situations of extreme vulnerability and will finance teachers in rural areas.  Concepción will strengthen staff capacity in schools, improve the provision of teaching materials, and will promote activities from the Municipal Education Committee to encourage citizen participation in education decision-making.  Cabañas will invest in infrastructure and the payroll of teachers to improve coverage.  San Agustín will be providing scholarships to students in extreme poverty. These initiatives to improve education service delivery will contribute to a more prosperous municipality and increase community rootedness by providing greater education opportunities locally.

Highlight from this quarter: With investments prioritized to improve education service delivery, two municipalities, Cabañas and San Agustín, stand out this quarter for improvements that impact food security, education quality, and can contribute to improved employment outcomes for youth at-risk. The Public Policies for Education were designed to maximize coordination among international donors and local NGOs working in the municipalities in order to leverage resources. They also provide local governments and school networks with a tool to orient investment to achieve priorities set in consultation with citizens. As a result, not only is access and quality of education improving, but efforts are being made to address factors that lead to irregular migration such as school desertion. See Exhibit 05 and Annex 08 for more information on leverage. 9 | FY 2020 // QPFR I

Exhibit 05 : Results of Public Policies on Education by Municipal Education Directors and shared with citizens during open council meetings. Components Municipality Food security Inclusion and Participation Educational quality and coverage  700 children and teenager s from the  Rotary Club in partnership  100 students enrolled in the Honduran Institute of Education by networks Mejorando Honduras and with Children International Radio (IHER); Mejorando Honduras educational network and Unidad Educativa have benefited sponsors 15 students to Unidad Educativa network. from the snack donated by the complete vocational  15 transportation scholarships for students from the Christian Institution Convoy Of technical courses. communities of El Playón, El Llano and Río Negro to attend Hope. lessons at the Instituto de Cabañas. Cabañas  9 communities have implemented  Built preschool classroom in the Francisco Morazán family orchards (Hacienda San Juan, kindergarten in the community of Naranjales and improved San José, El Llano, Miramar, two classrooms at the Josefa Lastiri de Morazán school. Mariposal, Aldea Nueva 2, La Cumbre San Juan and Pueblo Viejo).

 930 students from the networks el  100% of the schools in the  LG supported 30 students with a public transport scholarship Quetzal and Los Pinares benefited municipality have held the with a total of L.40,000.00. with food through support from first School for Parents  Municipal Council has delivered 930 school kits to children of EUROSAN. where they have addressed the El Quetzal and Los Pinares networks, valued at L. 158,504.09.  EUROSAN also supports 6 schools issues of interest related to Uniforms 930 students valued at L. 421,880.38. Payment to 13 with school orchards, the beneficiary access with the campaign Te teachers of the municipality during the months of February and schools are: José Trinidad Fiallos Queremos Estudiando and March the amount of L. 150,000.00, the payment of the from the Descombros community, attention to irregular Watchman during the months of February and March the Dionisio de Herrera School from the migration of children and amount of L. 9,000.00 the payment of the DME assistant, valued San Agustín Descansadero community, Francisco their families in the area. at L. 12,000 and payment of a babysitter valued at L. 6,000.00. In Morazán School from the Granadillal  Student government February, construction began on 5 classrooms: 2 classrooms in community, José Trinidad Reyes elections held the Francisco Morazán school in the community of Granadillal, 1 School from the Moscarronal classroom in the Dionisio de Herrera school in the community community and Juna Lindo School of Descansadero, 1 classroom in the José Trinidad Reyes school from the Cerro Negro community. in the community of Moscarronal and 1 classroom in the Melvin  EUROSAN handed out a kit of Roberto Paredes Institute. utensils to the 6 Snack Committees of the El Quetzal and Los Pinares Networks.

10 | FY 2020 // QPFR I

Department, Municipal, and Network Education Directors take advantage of quarantine to take online IOM course to improve understanding of irregular migration. As part of the Activity’s support to education officials during the COVID-19 quarantine period, HLG developed and disseminated a guide for education officials to access free, online courses on migration produced by the International Organization for Migration (IOM). Previously, regional and local education officials were unaware of these training resources. Courses available include: Tendencies and Governance of Migration, Protection and Assistance to Migrants, Labor Migration and Development, Crisis Migration and Emergencies, Human Trafficking, Migration and Health, and Gender and Migration among other topics. The Activity launched the guide on March 31 and will track participation over the next quarter. Servers and technical assistance provided to DDEs and USINIEH position SEDUC to adapt to the COVID-19 Emergency. In mid-March when in-person classes were cancelled due to COVID-19, USINIEH assumed responsibility for managing virtual classes and is working with SEDUC to develop a plan for monitoring remote learning. At the close of the quarter, USINIEH was in the process of developing an ODK survey for teachers on their remote teaching capacity. The Activity providing periodic assistance, but USINIEH is almost entirely self-reliant. SEDUC’s adaptive capacity in the face of the COVID-19 nation-wide shut down is significantly enhanced by having an IT Unit and tools that is capable of developing digital solutions during the crisis. The Activity has been coordinating closely with SEDUC since the outset of the crisis as SEDUC develops a strategy to reactivate the education system remotely. HLG has participated in several virtual meetings with the Educational Supervision Unit and coordination of educational networks. More information on this new area of coordination will be provided in the next quarter Activities to be initiated or intensified next quarter.  Develop targeted projects in school networks in three municipalities in Southwest Region  Promote the incorporation of the education sector into the LED roundtables  Continue to monitor municipal investment in local public education policies.  Support SEDUC to respond to the COVID-19 emergency. It is important to note that several activities may need to be adapted, paused, or redirected as a result of the challenges presented by COVID. The Activity is working closely with SEDUC to stay informed and contribute to their strategy.

MANCOMUNIDADES Mancomunidad Higuito receives ISO 9001:2015 certification, becoming the first mancomunidad in Honduras to receive the international certification for quality management. Following the Phase 2 audit in February, Mancomunidad Higuito was approved for ISO9001:2015 quality management certification by the international certification firm SGS International. This certification follows over one year of technical assistance to the mancomunidad to strengthen and reorganize the mancomunidad ’s internal management structure and processes. The mancomunidad provides technical services to 13 municipalities in the Copán Department and is a leader in terms of transparency, financial management, administration, and technical support per the Activity’s Service Management Index. Through this technical assistance process, not only has the mancomunidad improved its ability to provide efficient and effective services to member municipalities, but it has increased the confidence that those municipalities have in the organization. This certification will bolster the organization’s capacity to support municipalities in western Honduras to be more self-reliant and serves as a model for other mancomunidades across Honduras. Although a physical copy of the certification was mailed to the Activity’s Tegucigalpa offices at the end of March, due to COVID-19 disruptions, a digital copy of the certificate will be delivered to Higuito in April. Since the approval was only received at the close of the quarter, a full success story will be prepared during the third quarter.

Sub Result 2.3 Local Government administrative management capacity increased SETCAM’s work to strengthen Honduras’ civil service makes an impact beyond western Honduras. During the quarter, SETCAM made several advances that go beyond western Honduras, demonstrating the impact that SETCAM can achieve to strengthen the Honduran public service.

1. SETCAM Board of Directors approves first municipal salary scale. Since 2018, the Activity has worked with SETCAM to develop a proposal for a municipal salary scale as a means to reduce disparities in municipal compensation. To prepare the proposal, 163 municipalities were sampled and data from an average of 4,259 positions were reviewed. During the quarter, SETCAM´s Board of Directors reviewed and approved the salary scale. The approval of the scale is an important step for promoting equity in municipalities, however the challenge will be securing political will to implement the policy going forward. SETCAM made a commitment to continue the socialization process with local authorities and to develop at least two pilot experiences implementing the scale. 11 | FY 2020 // QPFR I

2. Coordination with other national Honduran institutions. SETCAM, within the framework of the grant with the Activity, has continued their inter-institutional coordination with Secretariat for Governance, Justice, and Decentralization (SGJD) to complete the first cycle of the diploma in public procurement and contracting and has enrolled approximately 105 municipal civil servants 28 municipalities. In addition to SGJD, SETCAM worked with the Honduran Institute of Radio Education (IHER) to begin designing a basic accounting course that could be delivered via radio. With the National Autonomous University of Honduras (UNAH), SETCAM is coordinating to develop a Degree in Local Development. With the Public Ministry, SETCAM is discussing the development of three workshops for anti-corruption prosecutors who follow up on municipal cases. 3. CAM Law implemented in 17 municipalities outside the Activity’s area of implementation. Using funds from AMHON and the Spanish Cooperation (AECID), SETCAM expanded implementation of the CAM Law to 17 municipalities in the Cortes, Choluteca, Olancho, Comayagua, Intibucá, Lempira, and Ocotepeque departments, thus leveraging the tools developed with Activity support.

Despite these examples of SETCAMs impact beyond western Honduras, SETCAM remains in a precarious funding situation once the grant with the Activity ends. Although AMHON engaged in advocacy efforts with Congress at the close of 2019, no additional resources were secured as of this quarter. SETCAM has signed a grant with AECID to continue strengthening the virtual platform and implementing the CAM Law, which will allow the staff that were covered under the HLG grant to continue working, and operational costs will be covered by AMHON, but SETCAM has not yet secured additional funds to expand CAM Law implementation beyond what was achieved with the Activity. The Activity is reviewing the grant with AMHON and is preparing a modification and extension to the grant next quarter. This modification will take into account the extenuating circumstances presented by COVID-19. Local governments commit to transparent and compliant HR management through the continued implementation of the CAM Law . In addition to the abovementioned actions, SETCAM and the Activity continued to support local governments to implement the CAM Law. Exhibit 06 details the assistance provided and the subsequent result. Full report on CAM Law actions is provided in Annex 4 .

Exhibit 06: CAM Law assistance and results during the first quarter SETCAM/Activity Assistance Area Result Employees protected by law from unjust dismissal and 5 more municipal staff registered in RENTCAM (279 confirmed compliance with CAM requirements cumulative) Current municipal employees qualified for jobs they 105 municipal employee CVs reviewed for compliance hold, important step for RENTCAM registration with CAM Law (201 cumulative) Staff receive performance feedback with citizen oversight to ensure they comply with their job 51 performance evaluations conducted with citizen description and have the opportunity to improve. oversight (238 cumulative) Evidence for employees who believe they were unjustly dismissed.

9 municipalities review performance objectives with all Staff are given the opportunity to improve their capacity staff (27 cumulative) as municipal civil servants. Provides local governments and citizens with ways to analyze staff performance.

Highlight from this quarter: Chinacla, La Paz For the first time, the Deputy Mayor and CLS carried out an external recruitment and selection process according to the CAM Law manuals. After objectively reviewing the resumes of three candidates for the Youth Office Coordinator, they recommended to the mayor to hire the most qualified official. Despite preferring a different candidate who did not meet the qualifications, the mayor accepted the committee’s recommendation. Complying with the CAM law requires substantial political will to go against engrained practices of favoritism and a historic lack of objectivity in municipal HR management. .

12 | FY 2020 // QPFR I

AMHON initiates technical assistance on tax management, contributing to the self-reliance of four municipalities. AMHON, under a grant with the Activity, initiated technical assistance in tax management in the municipalities of Santa María, Santa Ana (La Paz), Trinidad and San Agustín (Copán), where municipal technicians were trained on legal regulations associated with tax management. With the training, two municipalities made progress in reviewing and updating the taxpayer bases, sending collection notices, and updating business registries (See Exhibit 07 ). As these municipalities improve their tax collection capacities, they will be able to collect more revenue that can subsequently be invested in service improvements. In Santa María (La Paz), AMHON’s technical assistance brought to light significant weaknesses and mismanagement of internal controls. This allowed municipal authorities to take corrective measures according to the CAM Law. Despite these advances, AMHON remains substantially delayed in the implementation of tax management technical assistance due to issues identifying consultants to support field work. The Activity has requested that AMHON review their work plan and present a proposal to the Activity for review. The Activity will determine next steps with AMHON during the next quarter.

Exhibit 07: Technical assistance in tax management

Advance of Sending Reviewing tax registratio collection Registered and Total Properties SAFT balances and n of notices to eliminated properties refined in Registered updating properties taxpayers with natural identified SAFT Businesses businesses in in the debt of more taxpayers the SAFT SAFT than 2 years San Agustin 3500 2015 1137 246 91 5 1396 Trinidad 800 * 936 720 180 92 22 1449 * Trinidad does not have a cadaster, so they are considered urban properties

MAVAQUI supports six municipalities to improve cadaster management, leading to an increase in own-source revenue in four municipalities between 2019 and 2020. Through a grant with MAVAQUÍ, the Activity has supported two municipalities (plus four more outside of the area of implementation, thus expanding the Activity’s impact and leveraging MAVAQUI’s geographic presence) to improve cadaster capacities. By the close of the grant, the following achievements were documented:  Five municipalities approved cadaster values for 2020-2024 with citizen participation (531 participants) based on accurate land surveys. One municipality (Nueva Frontera), decided not to update their catalog despite MAVAQUI influence. With revised values, these municipalities will continue to increase own-source revenue collection over the next five years.  Four municipalities increase own-source revenue when comparing 2019 to 2020 data by a combined $54,511. Macuelizo and Azacualpa stand out for their improvements: Macuelizo increased from $ 3,085 to $ 6,358 (106%) for real estate tax in the urban area and 52% in the rural area. Azacualpa increased IBI income by 45% for the urban area and 47% in the rural area (see Exhibit 08 ).8  Quimistan implemented cadaster maintenance for the first time, establishing a benchmark from which they can compare future own-source revenue collection.

8 Quimistan does not yet project increases in own source revenue since support from MAVAQUÍ was concentrated on urban cadaster and updating their cadaster catalog. 13 | FY 2020 // QPFR I

Exhibit 08: Cadaster Maintenance in municipalities under MAVAQUÍ Grant

Income from Real Estate Tax Collection Municipality Year Urban Rural Increase Increase % % L $ L $

2019 76,838 3,086 49,899 2,004 106% 52% Macuelizo 2020 158,337 6,359 75,887 3,048 2019 216,786 8,706 80,843 3,247 45% 47% Azacualpa 2020 315,101 12,655 118,711 4,768 2019 39,608 1,591 42,428 1,704 10% 35% Protección 2020 43,514 1,748 57,294 2,301 2019 24,071 967 36,210 1,454 9% 8% Naranjito 2020 26,239 1,054 39,025 1,567 As these municipalities increase their own source revenue, they are reducing their dependency on central government transfers and increasing their self-reliance. Additionally, MAVAQUÍ is continuing to position itself as a vital source of technical assistance to these local governments, thus reducing the need for assistance from USAID IMs like HLG in the future.

The Honduras Local Governance Activity supports national and local officials to react to the COVID-19 pandemic. In response to the COVID-19 emergency, the Activity reached out to mayors and local government officials to offer support in developing contingency plans and discussing ways local governments could continue to support citizens despite strict curfews. On March 29, the President of Honduras announced that funds would be transferred to municipalities in order to purchase and distribute food and supplies to poor households. The Activity immediately began discussions with counterparts on how to support this process. At the close of the quarter, the Activity had received USAID approval to redirect funds in support of the COVID-19 response and was beginning to develop a package of cleaning supplies to all 41 municipalities, CCTs, mancomunidades, and decentralized health providers to support this response. The Activity also will deliver first line diagnostic tools such as thermometers, oximeters, and vital signs monitors to decentralized health providers and hospitals. This is an emerging area of implementation. More detail will be provided in the next quarterly report.

Activities to be initiated or intensified next quarter.  Finalize CAM Law digital toolbox with inputs from SETCAM  SETCAM to develop a virtual course for Human Resource Unit Managers  Support local governments to respond to COVID-19  Modify the grant with AMHON to extend the period of performance and limit activities to those feasible during COVID-19 response

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Local Government Management to Reduce Migration and Promote Local Economic Development : During the quarter, the Activity continued to expand efforts to strengthen local government capacity to reduce irregular migration and promote local economic development (LED) from four to14 municipalities. The municipalities selected are among the highest recipients of returned migrants in western Honduras according to CENISS, but also the highest capacity to implement impactful and sustainable initiatives according to the Service Management Index. During the quarter, five local governments approved LED agendas and six made advances in the implementation of activities that not only increase economic activity in the municipality, but also benefit vulnerable populations at-risk of migrating. This section describes both migration and LED advances in the fourteen municipalities. Exhibit 09 below summarizes advances, as well as multi-stakeholder participation, in the implementation of LED Agendas in the 14 municipalities this quarter.

Reviving LED Units in municipalities with substantial economic potential – Marcala and Jesus de Otoro: Marcala and Jesus de Otoro are two municipalities that are leaders in agricultural production in western Honduras. Marcala is known internationally for coffee production, and Jesus de Otoro provides rice and other agricultural products to supermarkets throughout Honduras. Despite being municipalities with high levels of economic activity, both lacked strong LED units to implement an LED Agenda and coordinate actions among the public and private sector actors working in the municipality. Without a weak LED unit, efforts to increase local economic opportunity for vulnerable populations were disjointed and did not leverage support from the array of organizations working in the region. This quarter, the Activity supported each municipality to strengthen internal and external coordination of the LED unit so that they could develop and later implement initiatives to increase local economic development and reduce irregular migration. In Marcala, with Activity support meetings were held between the LED unit, Municipal Women’s Office, Youth Office and Environment office, as well as with private sector actors such as COMSA, a large coffee producer. Through these LED roundtable meetings, the LED Unit was able to influence the Mayor to commit approximately $3,200 to establish a youth entrepreneurship fund for youth at risk of migrating. The fund will be planned and launched during the remainder of FY 2020. In Jesus de Otoro, the LED Unit was similarly inactive despite having an approved LED agenda. The Activity worked with the LED Unit to review the existing agenda and identify areas where activities could be clarified. During this review process, the Activity supported the introduction of a section on migration with activities such as entrepreneurship funds, programs for returned migrant families, and programs for youth employment. The draft revised Agenda is under review by the local government.

Close to 100 youth in four municipalities benefitting from ongoing entrepreneurship initiatives, with four more funds under development. In continuation of activities launched under the case study, this quarter San Marcos, Ocotepeque and Macuelizo, Santa Barbara supported a combined 38 at-risk youth to pursue income generating activities. In San Marcos and surrounding municipalities San Francisco del Valle and Mercedes, 21 youth were provided with seed capital to begin entrepreneurship activities through a fund established in coordination with the three local governments, as well as EUROSAN, Mancomunidad MANVASEN, and CESAL. In total, the actors leveraged $22,400 in funding to support the selected youth to implement projects . Projects are oriented around three key groups: agriculture (beekeeping, chicken or pig farms, etc. 9 projects), food (pupusa shops, cafés, bakeries, 3 projects), and services (laundry, barbershop, paper stores, etc., 9 projects). Also this quarter, the local government of Macuelizo carried out a workshop on packaging sausages and banana, cassava and malanga chips. The training was directed to young people between 16 to 29 years old, with a focus on returned migrants and other vulnerable youth. 17 young people participated in the two-day workshop that strengthened their productive and business skills and was led by the Escuela Agrícola Pompilio Ortega from Macuelizo, as part of the community outreach activities. The local government’s Local Economic Development Unit and Municipal Women’s Office led coordination efforts surrounding the training, thereby demonstrating its commitment to increase economic opportunities locally for at- risk youth. The local government will also evaluate the possibility of financing possible related entrepreneurships.

In Copan Ruinas, the Activity followed up on 46 youth who won seed funding and supplies during the entrepreneurship fund launched last quarter. By the end of January, 19 youth had received seed funding and 13 (69%) were already demonstrating profits. For example, Karen Meléndez, 23 years old and a mother of 3 children, received $370 to launch her business idea of selling clothes and jewelry. She reported $200 in profit that she will invest in expanding her business. Pedro Hernandez, a young man from the Chorti ethnic group, received $500 in funding for his Geotourism project in "La Pintada" and was able to buy six bicycles and clothing to promote rural tourism. He already reports a profit of $160. This quarter, EUROSAN provided an additional $8,000 in funding to activities including an auto mechanic shop and a print-making business. As youth gain

15 | FY 2020 // QPFR I greater access to economic opportunity, their intentions to migrate decrease and subsequently their businesses boost the local economy of Copán Ruinas.

Building off the successful entrepreneurship activities from the four municipalities prioritized in the case study, the Activity worked with four additional municipalities to plan similar funds. In Cabañas and Corquín (Copán), Marcala (La Paz), and Intibucá (Intibucá), initial meetings were held with the LED Units to brainstorm along the Local Systems 5Rs framework (Roles, Relationships, Rules, Responsibilities, and Results. In Corquín, for example, coordination was established with the NGOs CESAL, ODECO, and World Vision to bolster the municipality’s contribution. By the close of the quarter, planned contributions totaled $33,000 (committed, not expended). These funds could be impacted by the COVID-19 emergency. Planning will continue next quarter in the four municipalities with the goal of ensuring that funds both increase economic opportunities for youth at-risk of migrating while also responding to challenges related to COVID-19.

16 | FY 2020 // QPFR I Munic ipality LED Numb Agenda er of Drafted at-risk LED LED under (LED Activities from the quarter youths Multi-stakeholder participation in LED Agenda implement roundtable to Roundtables Approved ation and benefit commission formed) Copán  Entrepreneurship Fund ongoing 46 EUROSAN, CASM, World Vision, Local Ruinas, X X X Government Copán San Marcos,  Entrepreneurship Fund ongoing 21 EUROSAN, CESAL, World Vision, Ocotepeque  Coffee Afternoons MANVASEN, USAID TMS, IHCAFE, Case de la X X X  Implementation of simplified operation/business permit Cultura, Cooperativa Rio Grande Limitada processes Gracias,  Planning of employment fairs, preparation of training for 15 SENAEH, CONEANFO, Mancomunidad Lempira X X X social communicators COLOSUCA, Coffee Sector, Tourism Sector, Banco de Occidente, World Vision, CESAL Macuelizo,  Training on packaged food preparation 17 Escuela Agricola Pompilio Ortega, Santa X X X SERCHUMBAGUA Barbara Cabañas,  Preparation for entrepreneurship fair TBD CASM, Mancomunidad MANCORSARIC. X X X Copan.  Approval of LED Agenda this quarter Intibucá,  ~13 UMAR, Save The Children, CRS, SENAEH, X X X Preparation for entrepreneurship fair Intibucá CDE and FUNIDE. Corquín,  Promotion of municipal coffee production TBD CAFESCOR. Café ARUCO. Marelias Bakery, X X X Copán  Preparation for entrepreneurship fair PROEXO. Vinos Jaba, Café Mi Tazita Marcala, La  Preparation for entrepreneurship fair TBD Origin Denomination, IHCAFE, COMSA, Paz X X X Chamber of Commerce, Canatur, Universidad Politécnica de Ingeniería, UMAR. La Labor,  LED Agenda approved during the quarter TBD UNEDESOLA, COPRAL, COCAFELOL, Hotel X X X Ocotepeque Sector. San Marcos  LED Agenda approved during the quarter TBD CASFUL, Coffee Sector, Health sector, Santa X X X neighborhood associations, Water Barbara Management boards Azacualpa  LED Agenda approved during the quarter TBD CDE, Chamber of Commerce, Mancomunidad Santa X X X MAVAQUI, CASM Barbara. Lepaera,  LED Agenda approved during the quarter TBD Youth Network, AGADEL, Tourism Sector, Lempira. X X X PROMUSAN, OCDIH, HEIFER, Mancomunidad PUCA Cucuyagua,  Mancomunidad Higuito leading the updating of the LED TBD X Copán agenda, Activity will follow up next quarter Jesus de  Reactivated UDEL, established tourism roundtable, and TBD ASOPRA, Tourism and Coffee Sector Otoro, X X began updating existing LED Agenda Intibuca Exhibit 09 : Multi -stakeholder participation, in the implementation of LED Agendas in the 14 municipalities this quarter.

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Highlight from this quarter: Municipal Women’s Offices from 14 municipalities identify ways to improve attention to returned migrants through improved economic development. On March 4 th and 5 th , the Activity held a workshop with representatives from 14 municipalities from Municipal Women’s Offices (OMM) from Lempira, Santa Barbara, Copán, and Ocotepeque to discuss ways to improve investment of the five percent central government transfer for OMMs to address migration and local economic development.9  Before the training:  Operational plans (POAs) were prepared, but they were not clear management tools and often POAs were reused each year.  Despite having 5% of the municipal transfer available for OMM activities, they often did not receive the totality of the budget, limiting programming capabilities.  70% or more of the budget allocation to women was invested in improving living conditions, for example, improvement and construction of houses for low-income families, with little attention to economic opportunities, ultimately limiting sustainable improvement and self-reliance of vulnerable women.  POAs were prepared by the OMM but were only reviewed by the mayor and not submitted for approval or validation by the municipal council or citizen municipal women’s network.  During the training:  OMM participants were tasked with reviewing their existing POA and identifying opportunities to increase planning related to women, youth and girls with the intention of migrating, returned migrants through a focus on local economic development and entrepreneurship activities.  Participants also increased their understanding of the 5% budget allocation and how it could be used according to central government regulation.  After the training:  In only a few weeks, six OMMs developed revised POAs with an increased focus on vulnerable populations and migration with all six investing 30% of their total budgets (a combined $50,000) to economic development activities. San Agustín, for example, allocated approximately $6,756 specifically to women or children with intention to migrate or returned migrants. In addition to these activities, approximately $9,630 is committed to income generating activities for at-risk women and youth.  The OMMs defined project ideas to serve women, youth and girls, with the intention of migrating and / or returnees, that were also tied to approved Public Policy for Social Inclusion and, in the case of Macuelizo, to the LED Agenda.

It is important to note that these activities are important commitments. The Activity will monitor the OMM’s and support citizens to monitor the implementation of the planned activities. The Activity will continue to support these OMMs to use the five percent budget allocation toward activities that address local economic development and reduce vulnerable population’s intention to migrate next quarter.

Coordination with USAID IMs, IPs and Other Donors During the quarter, coordination activities with other USAID IMs, Implementing Partners (IPs), and donors focused predominately on aligning FY 2020 strategies and sharing information necessary to carry out joint activities in the coming months. As USAID IMs adjust to restricted funding, and several IMs like GEMA and Alliance for the Dry Corridor (ACS) come to a close, the Activity intensified coordination efforts with organizations like World Vision, Catholic Relief Service, Plan International, GIZ, and EUROSAN. Below, a summary of coordination efforts is provided. For more information refer to Annex 7 .

Additional Coordination with USAID IMs:  Transforming Market Systems (TMS): This quarter, TMS finalized the process simplification assistance to San Marcos, Ocotepeque and shared results with the Activity. As a result of the simplification, three different business categories were assigned along with standard processing times. The revised processes also only require citizens to visit the municipal office once to obtain business or construction permits, as opposed to several times. Also, standard forms were developed for frequent processes like cancelling or closing businesses, changing property owners, and changing business addresses. These improvements will strengthen the municipality’s capacity to implement the LED Agenda by facilitating the creation or expansion

9 Las Flores, Gracias, Lepaera (Lempira); San Agustín, San Juan de Opoa, Corquín, Dolores, Cabañas, Concepción, Copan Ruinas (Copán); Azacualpa, Macuelizo, San Marcos (Santa Barbara), and San Marcos (Ocotepeque) 18 | FY 2020 // QPFR I

of existing businesses and building trust and confidence between public and private sectors by establishing clear expectations.  De Lectores a Lideres (DLAL): During the quarter, the Activity continued to coordinate with DLAL through the Supervision Roundtable (along with GIZ and CRS). In March, the roundtable hosted a workshop for all 18 department supervision coordinators to plan the 2020 Supervision Survey (discussed under Result 1). Also this quarter, the Activity incorporated DLAL into the review process of a guide for developing targeting projects on migration with SEDUC.

Next quarter, coordination with other USAID IMs, Honduran institutions, and international donors will be critical to ensure an effective and comprehensive response to COVID-19. For example, the Government of Honduras has named Alliance for the Dry Corridor (ACS) as a key partner in reactivating the productive sector of the economy. Similarly, USAID DLAL is an important partner in coordination with SEDUC on the return to classes. The Activity will also coordinate with other donors, such as Catholic Relief Services, World Vision, EUROSAN, and GIZ, to align strategies, avoid duplication of efforts, and maximize support to local governments and at-risk communities.

Other coordination actions that occurred during the quarter:  Continued coordination with GIZ and CRS through the SEDUC supervision roundtable to ensure the successful implementation of the new Supervision Model nation-wide (discussed under Sub-Result 2.1).  Coordination with World Vision, CESAL, EUROSAN to implement entrepreneurship fund in San Marcos, Ocotepeque (see LED/Migration section). The Activity leveraged support from the three organizations to support the entrepreneurship fund in San Marcos. CESAL provided training to the 56-youth selected during the quarter on skills necessary to put together project proposals. World Vision and EUROSAN, as well as the local governments of San Marcos, Mercedes, and San Francisco del Valle, provided seed funding to the projects that are selected during an entrepreneurship fair at the end of February.

Crosscutting Themes INFORMATION COMMUNICATION TECHNOLOGY USINIEH and SEDUC assume full responsibility for server systems and technology. In February, the final server was handed over to USINIEH to complete the package of six servers provided to DDEs to support LEPP and Supervision monitoring tools and increase the capacity for data-based decision-making for education service improvement. Accompanying the server, the Activity provided in-depth technical assistance and coaching to USINIEH and DDEs on server management and ODK apps, among other functionalities of the server system. In Santa Bárbara, Ocotepeque, and Copán, DDEs went beyond the initial purpose of the server system to establish a “one-stop shop” for administrative and teaching procedures , such as managing exonerations, teacher transfers, and other processes. The systems for these processes are all located on the new server, thus allowing for expedited management processes.

GENDER AND INCLUSION The “Jóvenes Constructores: ¡Aquí me quedo!” program is formulated for vulnerable youth to build resilience and self- reliance and reduce irregular migration. This initiative is implemented by the Network of Community Technical Institutes (Red ITC) with support from Catholic Relief Services (CRS) and the Activity. Jóvenes Constructores is a certified methodology that works to strengthen hard and soft skills of vulnerable youth to increase employment opportunities, entrepreneurial capacities, or encourage participants to return to school. Local governments are central to the success of the program as they identify opportunities for youth, strengthen the municipal structures that permit greater economic development, and convene public and private sector actors to invest in the municipality’s youth.

This section details the efforts made with the program in this quarter: 1. Youth selection and preliminary training . In January, the pre-enrollment process was completed with a total of 146 youths. Preliminary training was completed with the first cohort during the week-long Youth Build Challenge ( Reto Joven Constructor), which was designed as a screening process so that youth could demonstrate interest and commitment to the program. After Reto Joven Constructor , 138 participants were officially enrolled in the Jóvenes Constructores cohort. Of the selected participants,114 youths belong to the municipalities within the area of implementation of the Activity (Macuelizo, Azacualpa, San Marcos, La Labor, San Francisco del Valle y San Marcos Ocotepeque), and 24 youths come from additional municipalities (Quimistan and Sensenti) with support from their local governments to participate (See Exhibit 10).

19 | FY 2020 // QPFR I Exhibit 10: Enrollment in J óvenes Constructores by Municipality Youths Enrolled

Department Municipality Quantity 34 Macuelizo 17 Azacualpa Santa Bárbara 10 San Marcos 15 Quimistan 76 TOTAL 7 San Marcos 19 La Labor Ocotepeque 27 San Francisco del Valle 9 Sensenti 62 TOTAL

The enrolled youth passed on to Jóvenes Constructores training process immediately after the Reto Joven Constructor . The training is providing the youth skills and knowledge required for optimal performance in any of the three outcomes (employment, self-employment, or school reintegration). According to the youth, the methodology and contents are attractive and generate a sense of rootedness in their communities, in addition to stimulating their self-esteem and desire to improve.

Beyond this enthusiasm from the youth participants, local governments have shown substantial commitment to support the program. This quarter, local governments have assumed the cost of transportation and/or food for the youth. For example, the municipality of Quimistán, after learning about the program, carried out publicity with its youth; and as a result, 15 youths are currently part of the first cohort. Exhibit 11 provides more detail on municipal support. Exhibit 11: Funds implemented by Local Governments

Amount executed Total planned at the end of Location Municipality contribution March Macuelizo L. 100,000.00 L. 63,000.00 Santa Azacualpa L. 159,810.00 L. 86,079.25 Bárbara San Marcos L. 159,260.00 L. 101,904.00 Quimistán L. 208,390.00 L. 120,620.00 Total L. 627,460.00 L. 371,603.25 San Marcos L. 0.00 L. 0.00 La Labor L. 58,500.00 L. 40,500.00 Ocotepeque San Francisco L. 126,750.00 L. 61,350.00 Sensenti L. 40,000.00 L. 0.00 Total L. 225,250.00 L. 101,850.00

In March, the second cohort of 58 youth started under the methodology of Grupos de Auto Ahorro y Préstamo (GAAP) , (31 youth from Macuelizo and 27 youth from San Marcos Ocotepeque). The GAAP methodology is for youth graduating with a high school degree in agricultural administration and seek seed funding for local businesses as a way to reduce irregular migration. By the end of this quarter, 10 weeks had been carried out in Macuelizo (270 hours Jovenes Constructores, 6 hours GAAP) and San Marcos Ocotepeque (238 hours Jovenes Constructores, 10 hours GAAP).

Despite the COVID-19 emergency, training has continued through Whatsapp and phone calls, and technical training is being provided through the Carlos Slim online platform. After quarantine, there will be two weeks of leveling for those youths who have not been able to access an electronic means of communication. During 20 | FY 2020 // QPFR I

the next quarter, the training process of Jóvenes Constructores y GAAP will be completed, both of which will conclude with the graduation of the youth cohort.

a. Private sector remains interested in supporting youth participants following several engagement efforts. For youth to successfully identify employment or entrepreneurship opportunities locally, relationships must be built with the private sector from day 1. This quarter, the Activity continued to visit local businesses to increase visibility of Jovenes Constructores in the prioritized municipalities. As a result, in Macuelizo, the company SER-CHUMBAGUA with whom the Activity has carried out negotiations since the end of the previous quarter, committed to provide 26 scholarships valued at approximately L. 6,000.00 each to youth who intend to return to the educational system. A due diligence request for this coordination was submitted to USAID in February and is pending approval. In San Marcos Ocotepeque, the Activity initiated negotiations with the Cooperativa Río Grande Limitada to enable youth to open bank accounts for their self-savings and loan groups (due diligence request will be submitted once negotiations are further along). The Activity has also contacted several local producers who expressed interest in allowing participants to complete internships with them to develop skills in honey and vegetable production. Business breakfasts to identify further coordination possibilities with the private sector were scheduled for the end of March; however, due to the state of emergency caused by the COVID-19 pandemic, they were postponed to April. Activities to be initiated or intensified next quarter.  Completion of training processes for participants  Graduation of the two cohorts of youths (GAAP and Jovenes Constructores) in both locations.  Follow-up visits to companies to identify labor insertion opportunities.  Adaptation to COVID-19 challenges such as remote education and access to internet for on-line training.  Review of CRS and Red ITC grants to determine whether a no-cost-extension is needed to support activities post-quarantine period.

Collaborating, Learning and Adapting (CLA) Agenda AGENDA ACCOMPLISHMENTS Exhibit 12 presents a collection of the most relevant challenges found this quarter, along with the respective actions that were taken or have been proposed to adapt.

Exhibit 12: Challenges and adaptation

No. Challenge Found Adaptation

An agreement was established with the departmental director of Coordination difficulties with new education in La Paz to coordinate directly with each DDE technician, departmental director of education in La 1 a planning and induction meeting was held for recently assigned staff Paz and change of technical staff in the in the areas of educational networks and supervision, resulting in a DDE rapid adaptation to HLG coordination and support State of emergency in the country due to COVID 19 pandemic, the most complex An action plan was developed to identify the tasks to be performed tasks to accomplish were: documenting by remote working, which included a thoughtful analysis of feasible 2 and collecting evidence of compliance with activities. Actions to support the priority of public health care social audit recommendations, community through the donation of hygiene materials to municipalities. assemblies for decision making, and technical assistance t o CSOs. Maintain the motivation, interest and avoid A virtual accompaniment format was developed, with trainers who the desertion of members of Jóvenes 3 communicate permanently, managing productive virtual Constructores, in the context of social environments in order not to lose the planned training processes. distancing (quarantine)

Without water and sanitation specialists on HLG’s team, the Activity Continuing water and sanitation activities contacted Mancomunidad Higuito and HELVETAS (which 4 within the framework of social audit implements a water governance program) to help the CCT of recommendations Trinidad to implement recommendations from a social audit

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MONITORING AND EVALUATION: PROGRESS MEASURED BY INDICATORS During the second quarter of FY 2020, the Activity continued actions to advance Result 1 indicators such as 1.2 - Public policies, 1.3- percentage of recommendations and 1.1.2- Number of CSOs receiving USG assistance engaged in advocacy interventions (93%, 32% and 67%, respectively). The technical assistance consisted of working with the CSOs to monitor the implementation of public policies and citizen oversight recommendations from previous years. On the other hand, the technical assistance that the activity provided in the previous quarter helped CSOs present municipal transparency plans for their respective approval, which also contributed to the participation rate indicator –1.1.1, achieving a performance of 77%.

Under Result 2, the Activity provided technical assistance to the education sector on targeted projects to reduce migration on the schools. Additionally, three water management boards received technical assistance as part of the follow-up to recommendations. The indicator that measures this work (Indicator 2.2.1) and their performance is of 65%.

With the Local Governments the Activity continued to assist in human resources management by supporting registration in the RENTCAM system. The indicators under sub result 2.3 displayed excellent performance: the indicator 2.3.2, 91% and indicator 2.3.3 reached the goal during previous quarterly.

The indicators CC2 and CC3 report a performance of 39% and 56% respectively. The training workshops with youth groups to promote entrepreneurship and other technical assistance that HLG provided during the period paid for both indicators. Low Level indicators are detailed in Annex 06.

The following table shows progress by indicator for the Quarterly:

FY2020 # Indicator Current Baseline Cumulative Target** Performance Y4Q2 Percentage of citizens satisfied with the local PG1 81% n/a n/a n/a n/a services*. Education n/a n/a n/a n/a Percentage of citizens that Health n/a n/a n/a n/a PG2 improve their perception n/a of service quality*. Nutrition n/a n/a n/a n/a Water n/a n/a n/a n/a Civil society influence index for local service 1.1 34.8 10 n/a n/a n/a n/a improvement*. Number of public polices introduced, adopted, 1.2 repealed, changed, or implemented consistent with 0 33 11 38 41 93% citizen input.

Percentage of recommendations being implemented 32% 1.3 that have been subject to external oversight 0 7% 9.5% 30% mechanisms. Citizen’s participation rate for decision making 1.1.1 10% 1.67% 1.92% 12 2.5% 13 77% related to the provision of services. Number of CSOs receiving USG assistance engaged 1.1.2 0 48 67 100 67% in advocacy interventions.

10 Estimated value according to the MELP modification approved by USAID in January 2019. 11 Include the Municipal Transparency Plans. * Target for the year 4 was not included in the proposed modification of the MELP. 12 The accumulated participation is 4,227 people. 13 Target is 5,492 people. 22 | FY 2020 // QPFR I

Number of documents with recommendations to 1.2.1 improve service delivery presented by CSOs that 0 n/a n/a n/a n/a comply with a quality checklist. (Cumulative)* Number of mechanisms for external oversight of 1.2.2 public resources use supported by USG assistance. 0 n/a n/a n/a n/a (F) cumulative*. LG 40.5% n/a n/a n/a n/a School Networks 33.8% n/a n/a n/a n/a DDE 46.1% n/a n/a n/a n/a Service Providers’ 2.1 Management Capacity DME 39.8% n/a n/a n/a n/a Index. Health Service Providers * 44.7% n/a n/a n/a n/a Mancomunidades * 56.5% n/a n/a n/a n/a WMB * 37.2% n/a n/a n/a n/a

Percentage of service providers that increase the 2.1.1 n/a n/a use of good accountability practices. n/a n/a n/a Number of service providers receiving assistance to 2.2.1 0 20 14 83 128 65% improve their performance. Number of small infrastructure projects supported 2.2.2 0 n/a n/a n/a n/a by HLG to improve local services*. 2.3.1 Percentage change in municipal service investment. -7% n/a n/a n/a n/a Percentage of municipal career servant positions 2.3.2 that are included in the national system of 0 0.9% 15 50.2% 55% 91% registration of municipal employees (CAM). Number of sub -national government entities 2.3.3 0 41 41 41 100% receiving assistance to improve their performance. Number of persons trained with USG assistance to advance outcomes consistent with gender equality CC1 or female empowerment through their roles in n/a n/a n/a n/a n/a public or private sector institutions or organizations*. Number of returned migrants receiving USG CC2 0 19 33 85 39% assistance Number of beneficiaries who express intention to CC3 0 66 112 200 56% migrate in the next 3 years

14 Include 14 RE, 2 DME, 1 DDE and 3 JAA. 15 The total number of employees registered in RENTCAM to date is 279 of 556 required at the end of FY 2020 to 41 municipalities. 23 | FY 2020 // QPFR I

Contract Deliverables and Fee Report. The following table shows the status of deliverables as of Quarter 2, showing those that have been submitted thus far pertaining to FY 2020.

Approved/Agreed Uploaded to Document Submitted Upon DEC/DDL One every two weeks from Not applicable (NA) NA Bi-weekly Updates to TOCOR October 12, 2018- January 30, 20 20 Annual Work Plan (Y4) August 30 , 201 9 October 21, 2019 NA Umbrella EMMPs for Nutrition NA NA Environmental Mitigation and and Education Activities Monitoring Plan approved Version 1 submitted: January Version 1 approved: NA 20, 2017 September 29, 2017 Version 2 submitted*: Version 2 approved: September 28, 2018 January 15, 2019 Version 3 submitted**: Version 3 approved: Monitoring, Evaluation, and November 29, 2019 February 25, 2020 Learning Plan Revision *based on implementation during FY2017/2018, the Activity submitted a modified MELP **revised MELP submitted based on contract mod. QPFR 1 - January 30, 20 20 March 3 , 20 20 Pending Quarterly Performance and QPFR 2 - April 30, 2020 Pending Financial Reports (3) QPFR 3 - July 30, 2020 N/A

Annual Performance Report Submitted - October 30 February 26, 2020 Pending Annual Report on Non - Submitted - October 30 February 26, 2020 N/A Expendable Property

24 | FY 2020 // QPFR I

25 | FY 2020 // QPFR 1

26 | FY 2020 // QPFR 1

Annex 1: Technical Assistance Summary by Sector (FY 2020 Q2)

Please click on each icon to see each sector’s file: Technical Assistance Summary by Sector (FY 2020 Q2) Civil Society Education

A.T.OSC Y4Q2 A.T.Educación Y4Q2 17.04.2020.xlsx 17.04.2020.xlsx

Local Governments *includes LED/Migration Water and Sanitation

A.T.JAA Y4Q2 A.T.GL.Y4Q2 17.04.2020.xlsx 17.04.2020.xlsx

27 | FY 2020 // QPFR 1

Annex 2: Progress by Sub-Activity, divided by Sector

Please click on each icon to see files by sector Progress by Sub-Activity divided by Sector

Civil Society LED Education

Sub-Activities_Civil Sub-Activities_LED Sub-Actividades_Edu Society Q2FY2020.docx Q2FY2020.docx cation Q2FY2020.docx

Local Governments

Sub-Activities_Local Governments Q2FY2020.docx

Crosscutting Initiatives

Sub-Activities_Crossc utting Q2FY2020.docx

28 | FY 2020 // QPFR 1

Annex 3: Status of Municipal Transparency Plans

Estatus PTM Q2 FY20.xlsx

Annex 4: Status of CAM Law Implementation

Estatus Ley CAM Q2 FY20.xlsx

Annex 6: Lower Level Indicators

Low_Level_Ind 03.30.2020.xlsx

Annex 7: Coordination with other IMs (Lower Level Indicator 10)

Coordination with other IMs, IPs - QR2 FY 2020.docx

Annex 8: Counterpart Contribution and Leverage Report

Informe Aporte local I_Trim_2020ver (3).docx

29 | FY 2020 // QPFR 1