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USAID Democratic Governance East Activity Quarterly Progress Performance Report USAID Democratic Governance East Activity Quarterly Progress Performance Report USAID Democratic Governance East Activity FY 2019 Q3 PROGRESS REPORT (April 1 – June 30, 2019) Contract No: 72012118C00006 Prepared for USAID/Ukraine c/o U.S. Embassy 4 Igor Sikorsky St. Kyiv, Ukraine 04112 Prepared by Chemonics International Inc. 1717 H Street NW, Washington, DC 20006, USA DISCLAIMER This publication was produced by Chemonics International for the USAID Democratic Governance East Activity for review by the United States Agency for International Development. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. Table of Contents ACRONYMS AND ABBREVIATIONS 2 I. CONTEXT UPDATE 4 II. INTRODUCTION 6 III. PROGRESS AGAINST TARGETS 29 IV. PERFORMANCE MONITORING, EVALUATION, AND LEARNING 34 V. ENVIRONMENTAL MONITORING 35 VI. PROGRESS ON LINKS TO OTHER ACTIVITIES 35 VII. PROGRESS ON LINKS TO HOST GOVERNMENT 36 VIII. PROGRESS ON INCLUSIVE DEVELOPMENT 36 IX. FINANCIAL INFORMATION 37 X. SUB-AWARD DETAILS 38 XI. ACTIVITY ADMINISTRATION 38 XII. Personnel 38 XIII. Contract, Award, or Cooperative Agreement Modifications and Amendments 39 ANNEXES 1 ACRONYMS AND ABBREVIATIONS ACMH Association of Multi-apartment House Owners ACTED Agency for Technical Cooperation and Development (NGO) APS Annual Program Statement ASC Administrative Services Center BUR Building Ukraine Together initiative CTC Consolidated Territorial Communities COR Contracting Officer’s Representative CS Civil Society CSC Community Score Card CSO Civil Society Organization DDGS Direct Distribution of Goods and Services DG East USAID Democratic Governance East Activity DOBRE Decentralization Offering Better Results and Efficiency DSP Department of Labor and Social Protection ERA Ukraine Economic Resilience Activity FC2U From a Country to Ukraine (festival) GESI Gender Equality and Social Inclusion Strategy GoU Government of Ukraine HICD Human and Institutional Capacity Development IDLO International Development Law Organization IDP Internally Displaced Person ISPI International Society for Performance Improvement KPVV Exit-entry checkpoint to non-government controlled areas LEF Lviv Educational Foundation LGE Local Government Entity MEL Monitoring, Evaluation, and Learning MIS Medical Information System MOU Memorandum of Understanding MoES Ministry of Education and Science MTOT Ministry for Temporarily Occupied Territories N/A Not Available NGCA Non-Government Controlled Area OPI Organizational Performance Improvement PC Public Council (activity) PHC Primary Health Care PIN People in Need (NGO) PIRS Performance Indicator Reference Sheet REACH REACH Initiative, implemented by ACTED and IMPACT Initiatives RFA Request for Applications RFP Request for Proposals R2P Right to Protection (NGO) SACCI USAID’s Support to Anti-Corruption Champion Institutions Program in Ukraine 2 SCORE Social Cohesion and Reconciliation Index SeeD Centre for Sustainable Peace and Democratic Development SME Small and Medium Enterprises SO Sub-objective SOW Scope of Work STTA Short-term Technical Assistance ToR Terms of Reference UCBI Ukraine Confidence Building Initiative UNDP United Nations Development Programme USAID United States Agency for International Development USG United States Government VNG International Cooperation Agency of the Association of Netherlands Municipalities VR Verkhovna Rada (Parliament of Ukraine) 3 I. CONTEXT UPDATE The conflict in Eastern Ukraine has been ongoing for five years. While Ukraine and its international allies have emphasized the importance of enhancing the negotiation process and the peaceful resolution of the war in Eastern Ukraine, violations of the Minsk Agreement occur on a near daily basis. Elections in Ukraine were one of the most discussed topics over the reporting period. The run-off Presidential election was held on April 21, with a resulting in Volodymyr Zelenskyi’s landslide victory over incumbent Petro Poroshenko, 73.2 percent to 24.4 percent. The International Centre for Defense and Security states that Zelenskyi's win was aided by two immensely popular TV programs: Zelenskyi playing the role of President of Ukraine in the TV show “Servant of the People”, and his even longer presence on the screen in his “95 Kvartal” comedy show.1 Other factors that added to Zelenskyi’s win were the popular demand for new faces in politics and general mistrust in politicians. He regularly made populist promises during his campaign, which proved effective. Exit polls indicated Poroshenko’s ratings were lower before the second round, with alleged corruption scandals in the defense and security sphere made public days before the second-round vote, which added to the drop in support for Ukraine’s fifth president. Verkhovna Rada (VR), the Ukrainian Parliament, set the inauguration for May 20 after intense tension between the VR and President-elect, as the winning side pushed to set the inaugural date earlier. Even before inauguration experts said Zelenskyi wants to dissolve the Parliament and setting the inaugural date later might not allow him to do so under current legislation. In his inaugural speech on May 20, the new president dissolved the VR and called for snap parliamentary elections. He signed a respective decree on May 21, which was published and went into effect two days later. Election campaigns among politicians and their parties started immediately after, on May 24. The presidential decree was later brought to the Constitutional Court to determine whether it was a constitutional decision. On June 20, the Court found that the decision to dismiss the VR was in line with current legislation, affirming July 21 as the date for the early parliamentary election. By the end of the reporting period, the Central Electoral Commission (CEC) had registered 22 political parties.2 Out of these, five parties are likely to cross the 5 percent margin to get into Parliament: Zelenskyi’s Servant of the People party, with more than 40 percent of the votes; Opposition Platform; Poroshenko’s European Solidarity; Holos, newly established by Okean Elzy singer Sviatoslav Vakarchuk; Yuliya Tymoshenko’s Batkivschyna; and Strength and Honor, party of former advisor to the President of Ukraine Ihor Smeshko. Johannes Hahn, European Commissioner for European Neighborhood Policy, after meeting with Zelenskyi in Kyiv, stated via Twitter that the EU will fully support the President-elect.3 Poroshenko, when leaving the post, stated he hoped for the country to remain on its firm 1 https://icds.ee/ukrainian-presidential-elections-2019-and-their-consequences-a-pessimists-view/ 2 https://www.cvk.gov.ua/pls/vnd2019/wp400pt001f01=919.html 3 https://twitter.com/JHahnEU/status/1125703707025395712 4 pro-Western, reforms-oriented path with the new leadership in place. Poroshenko himself will likely take the opposition role and run with his European Solidarity party in the upcoming VR elections. On April 25, the VR passed a law on the Ukrainian language, securing and detailing its status as the official state language. Until 2012, an outdated Soviet law regulated the use of languages in different spheres of life. Seven years ago, the VR passed the so-called “Kivalov- Kolesnichenko” law, drafted by two current Opposition Block leaders and members of Viktor Yanukovych’s former Party of Regions. That law provided for further Russification of the nation, experts said, and spurred protests. In February 2018, the Constitutional Court declared the law unconstitutional. Since then, Ukraine has not had any official regulation on the use of languages. The current version of the law provides for the use of Ukrainian language by all state officials, medical and communal facilities, in education and science spheres, media, etc. Despite popular myth, the use of Russian and other foreign languages is not banned from regular use whatsoever, but rather it is regulated. Immediately after the second round of the presidential election, the Russian Presidential Administration announced its intent to simplify issuing Russian passports for residents of the Non-Government Controlled Area (NGCA). A few months later, the Kremlin opened passport-issuance centers in Rostov oblast, neighboring and serving the NGCA of Ukraine. Ukraine continues advancing with reforms, even if slow at times and facing resistance at different levels. Decentralization remains one of the top priorities for the Government of Ukraine (GoU), and it is perceived by Government officials as reaching a point of no return. To date, the Ministry of Regional Development reports 924 Consolidated Territorial Communities (CTCs) have been established, and 44 are awaiting CEC decisions. 33 cities of oblast significance formed CTCs with 74 existing territorial communities. Citizens see medical, education, and pension reforms as the most needed, and want to build upon the successful local self-governance efforts already underway. However, judicial and anti-corruption reform efforts are the highest in citizen demand, with low, if any, level of successful implementation. According to Ilko Kucheriv Democratic Initiatives Foundation, “the hierarchy of the most important reforms for Ukrainians has been stable for four years in a row, with 63% of Ukrainians ranking anti-corruption reform as the most important. Next come the reform of the health care sector (57%), pension reform and social protection reform (52%), reform of the law enforcement agencies (37%),
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