LOCAL SOCIO-ECONOMIC RECOVERY PROJECT

PROGRESS REPORT

1 July 2020 – 31 December 2020

UNDP UKRAINE

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TABLE OF CONTENTS

LIST OF ABBREVIATION ...... 3 EXECUTIVE SUMMARY ...... 4 1. BACKGROUND ...... 6 1.1. IMPLEMENTATION CONTEXT ...... 8 1.2. PROJECT OBJECTIVE AND KEY DELIVERABLES ...... 10 1.3. PROJECT IMPLEMENTATION ARRANGEMENTS ...... 11 2. RESULTS ACHIEVED BY THE PROJECT ...... 12 2.1. OUTPUT 1: SOCIO-ECONOMIC IMPACT ASSESSMENT IN KHERSON OBLAST CONDUCED .. 12 OUTPUT 2: RECOVERY PLANNING INTEGRATED INTO REGIONAL DEVELOPMENT STRATEGY OF KHERSON OBLAST ...... 14 OUTPUT 3: SOCIO-ECONOMIC RECOVERY INITIATIVES IDENTIFIED AND IMPLEMENTED ...... 15 2.2. ESTABLISHING PARTNERSHIPS AND STAKEHOLDERS’ ENGAGEMENT ...... 23 2.3. CHALLENGES AND RISKS ...... 23 2.4. COMMUNICATION STRATEGY AND COMMUNICATION IMPLEMENTATION PLAN ...... 24 3. PLANS FOR THE NEXT PERIOD ...... 27 ANNEXES ...... 29

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LIST OF ABBREVIATION

ATC Amalgamated Territorial Community

CBA Project Community-Based Approach to Local Development project

COVID-19 SARS-COV-2 (Severe acute respiratory syndrome coronavirus 2)

CDA Community Development Associate

EU European Union

FAO Food and Agriculture Organization (FAO)

GOU Government of Ukraine

LSER The Local Socio-Economic Recovery Project

M&E Monitoring & Evaluation

MOP Medical and Obstetric Point

MOU Memorandum of Understanding

OSA Oblast State Administration

RDP Regional Development Programme

SDGs Sustainable Development Goals

SEIA Socio-Economic Impact Assessment

UN United Nations

UNDP United Nations Development Programme

WG Working Group

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EXECUTIVE SUMMARY

The Local Socio-Economic Recovery (LSER) Project (hereinafter – “the Project”) that started in July 2020, aims to support Kherson regional and local authorities in assessing and addressing the socio-economic impact of COVID-19 pandemic.

The Project achieved significant progress in building and strengthening the capacities of Kherson Oblast State Administration to counteract the negative consequences of COVID-19 pandemic. Specifically, over July – December 2020, the Project established a strong implementation structure, engaged key stakeholders, and reached out to the potential beneficiaries, while also providing tailored and much-needed support to local communities, and establishing partnerships at the local level.

The key achievements of the Project are the following: • Under the LSER project, UNDP and Kherson Oblast State Administration implemented joint local initiatives to counteract the negative consequences of COVID-19 pandemic under the following areas: Ø Tourism infrastructure development; Ø Social entrepreneurship for women and youth; Ø Improved access to quality health care and rapid diagnosis; Ø improved access to online education; and Ø Improved access to quality administrative service for vulnerable groups and residents of remote settlements. • Overall, 42,911 women and 40,017 men benefited from improved livelihoods in targeted local communities. • The Project strengthened operational and management capacities of Kherson Oblast State Administration through extensive individual and group consultations, knowledge-sharing and lessons learned activities. • 12 local initiatives grouped in 5 clusters received direct financial Project’s support. • Residents of small cities and urban settlements, including those with low income and those living in remote settlements, received access to professional administrative services free of charge. • The Project directly contributed to the decentralization reform efforts by facilitating the provision of quality services and support from local authorities to residents. • The Project actively supported over 100 Kherson Oblast State Administration staffers by providing them with timely and reliable information, sharing the best practices and recommendations on mitigating negative COVID-19 pandemic impact. • Public servants representing the regional/local authorities received advisory and expert support on crisis response and recovery measures planning and implementation from the LSER Project. • With LSER Project interventions, over USD 30K of the local government co-funding was attracted to socio-economic initiatives developed with Project’s support. • Stage 2 of the Project covers the period of January-March 2021 and is supported by the UK’s Foreign, Commonwealth and Development Office with a possibility of extension until March 31, 2022. • LSER Project contributed to increased level of trust between targeted communities and local authorities in Kherson region. Specifically, the population reported that local authorities became more open and willing to resolve community needs, and most

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vulnerable groups, including rural women and youth, reported feeling more empowered and confident to make changes in their communities.

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1. BACKGROUND

With COVID-19 outbreak, regional and local authorities in Ukraine face significant challenges in assessing the socio-economic impact of COVID-19 and developing crisis response and recovery measures to support the regions to overcome the effects of the coronavirus spread in 2020-2021. Hence, in June 2020 UNDP Ukraine has completed its a country-wide COVID- 19 socio-economic impact assessment (SEIA) in close cooperation with other UN agencies. The assessment findings have evolved into further development of programmatic interventions to support the Government’s response to the crisis and sustainable post-crisis recovery. The extended partnership between UNDP and Kherson oblast has resulted in very tangible support to the region, selected as a pilot region for a new initiative, aimed at counteracting the negative consequences of the COVID-19 epidemic – the Local Socio- Economic Recovery (LSER) Project. Twelve local initiatives supported jointly with Kherson Oblast Administration were successfully implemented over October-December 2020, covering the following areas: tourism infrastructure development; social entrepreneurship for women and youth; improved access to quality health care and rapid diagnosis; improved access to online education; and improved access to quality administrative service for vulnerable groups and residents of remote settlements. The current Project is funded by UNDP Ukraine to mitigate the negative impact of COVID- 19 pandemic in Kherson region. In this context, UNDP Ukraine, together with the Kherson Oblast State Administration, provides support to targeted amalgamated territorial communities (ATCs) in solving the pressing needs of local community residents. The COVID-19 pandemic severely affected the regional and local authorities, while putting additional strains on the local budgets. Overall, over twenty ATCs of Kherson oblast benefited from the LSER Project. Specifically, 82,928 people, including youth, women and rural population have received assistance from LSER- implemented socio-economic recovery measures and local initiatives, thus improving their lives in the areas of access to education and healthcare, administrative service provision, social protection and economic opportunities. 6

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In line with its specific objectives, the Project’s interventions covered a period of 6 months (July - December 2020) to support regional and local authorities in assessing and addressing the socio-economic impact of COVID-19 pandemic, strengthen the operational and management capacities of the Kherson State Oblast Administration, and provide financial support to targeted ATCs. The Project has made significant progress towards achieving objectives and hitting targets, as described in detail in the next sections of the current report.

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1.1. Implementation context

Ukraine’s vision of its strategic development may be defined by three conceptual frameworks – European integration, NATO Accession (Euro-Atlantic integration) and the Sustainable Agenda 2030. An adequate alignment of these frameworks as well as assessing their overlapping elements can address one of the key challenges of Ukraine’s long-term development planning.

Supporting institutional and policy reforms that foster inclusive, gender-responsive and sustainable human development in line with the national strategy and reform agenda is identified as Pathway II “Inclusive and Gender-responsive Sustainable Development” by the UNDP Country Programme document for Ukraine (2018-2022) that identifies “Growth is inclusive and sustainable, incorporating productive capacities that create employment and livelihoods for the poor and excluded ” as one of the key objectives in enhancing inclusive and sustainable development in Ukraine.

To ensure sustainable development of the state, undertaking structural reforms and raising living standards, Ukraine needs to become a state with strong economies and advanced innovations. To do this, it is necessary to restore macroeconomic stability, to ensure sustainable economic growth in an environmentally sustainable way, to create favorable conditions for economic activity and a transparent tax system as defined by Ukraine’s 2020 Strategy for Sustainable Development and the national 2017 Baseline National Report on SDGs.

The new political leadership elected in 2019 is generally continuing and deepening the reforms expected by Ukraine’s population and international partners. The Governmental Programme adopted in October 2019 outlines the human centric policy priorities, namely to provide a decent living quality for every Ukrainian, accelerate economic growth and attract foreign investments, including by the liberalization of the land market, fighting corruption and smuggling as well as curbing monopolies, and shift to digital communications within government.

The President of Ukraine has adopted the Decree on SDGs, which instructs the Cabinet of Ministers of Ukraine: (1) to conduct the analysis of forecast and programme documents taking into account the SDGs of Ukraine for the period of till 2030; (2) to implement an effective system for monitoring the SDGs implementation for the period of till 2030; (3) to recommend to the academic institutions to take into account the SDGs when defining the scientific researches; thus, making the Sustainable Development Goals the highest priority of government policy.

UNDP and the Government of Ukraine have successful partnership in implementing the reforms in many different areas for the achievement of SDGs, which also tackles the European and Euro-Atlantic integration, including the joint efforts in participatory, inclusive and democratic governance; social wellbeing and healthcare; integrity, transparency and fight against corruption; sustainable environment and energy efficiency; recovery and peacebuilding; and others.

Under its SDG Area-Based Programme, UNDP helps to advance regional and local sustainable development. Across all 24 oblasts, SDG Oblast Coordinators act as development integrators for SDG-related activities of UNDP, UN agencies and other partners. This joint approach provides an excellent example of UN reform in action and strongly anchors UNDP as an integrator. The ongoing public administration and territorial reform, with the specific emphasis on decentralization process, has led to the increased budgetary resources of local communities for heathcare, education, energy and efficiency, infrastructure and socio- economic development.

Ukraine like many other countries faces now the COVID-19 pandemic, and this outbreak coincided with the government change in the country, exacerbated by the insufficient progress

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of reforms, weakened health system, ageing population, macroeconomic decline and the protracted armed conflict in the eastern Ukraine.

According to the World Health Organization, Ukraine is among the most worrisome countries affected by the COVID-19 where the situation is deteriorating rapidly. The Government of Ukraine has taken several steps to prevent and mitigate the spread of the COVID-19, notably: 1) developed a National Preparedness and Response Plan (NPRP), 2) introduced temporary restrictive measures nationwide (initially until 24 April with further extension till 11 May), and 3) established the crisis centres under different government authorities: the Office of the President, the Ministry of Economy, the Ministry of Foreign Affairs, as well as the coordination unit under the Ministry of Health and the Ukraine Public Health Centre to provide an operational response through the healthcare system at all levels. On 25 March, the Government introduced the emergency situation in all oblasts of Ukraine to ensure better coordination of all institutions and technical guidance to the healthcare system on preparedness and response.

The COVID-19 pandemic drastically affected first of all the local authorities, in particular putting additional strains on the local budgets and the underinvestment in the health system. In addition, administrative services are suspended or partially provided due to the lack of local resources, both institutional and personnel to operate under the critical circumstances.

Kherson regional state administration jointly with Kherson Oblast Reform Office in December 2019 developed an anti-crisis program to support the Kherson region's economy to overcome the effects of the COVID-19 spread in 2020-2021. Possible areas of the programme activities have been identified as follows: supporting entrepreneurship; industrial development; increasing exports of domestic goods and services; and working with international financial institutions to support the economic development of the region to overcome the effects of the COVID-19 crisis have been previously discussed.

The territory of Kherson region has a strategic position. It is located in the Southern part of Ukraine, in the basin of the lower reaches of the Dnipro River, and washed by the Black and Azov Seas. With its favorable climatic conditions and investment potential, Kherson region can increase agricultural production, thereby meeting the growing need for agricultural products. The part of Kherson region, adjacent to the Black Sea, located on the Black Sea lowland, has a flat terrain favorable for the construction of wind power stations based on wind power plants of any size and large solar power plants. Kherson region is a unique territory for tourism and recreation, which has enough advantages for the formation and development of a powerful resort and tourist complex. The diversity of natural resources of Kherson region creates the necessary conditions for the development of economic activity and ensuring the quality of life of the population of the region.

UNDP Ukraine has had a long-running, successful partnership with Kherson Oblast State Administration, first established in 2008, with the purpose for fostering local sustainable development and SDGs acceleration at the sub-national level. Since then, a number of projects have been successfully implemented in close cooperation both with the regional authorities and local communities, including, among others: “Community-Based Approach to Local Development” 2008-2017; “Young Football Volunteers” 2012-2014; “Transparency and Integrity in the Public Sector: Support for the Ombudsperson’s Office” 2016-2019; and ongoing “HOUSES” (2019-2021) project. On 11 February 2020, UNDP signed a Memorandum of Understanding with both Kherson Oblast State Administration and Kherson Oblast Council on joint and coordinated work aimed at promoting the sustainable development of the region. The MoU covers the period until 22 March 2022. UNDP has a permanent presence in Kherson Oblast. UNDP’s regional office (Oblast Resource Center for Sustainable Development), which is facilitated by Oblast SDGs Coordinator Ms. Esma Umerova, was established with the support of Kherson Oblast State

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Administration. This permanent presence allows UNDP to effectively provide support to local development stakeholders and coordinate activities on ongoing projects. The COVID-19 pandemic outbreak in early 2020 coincided with a change of government in the country, while conditions were already challenging due to a macroeconomic decline and the protracted armed conflict in the Eastern Ukraine. The first COVID-19 case in Ukraine was detected in March 2020 in Chernivtsi Oblast. After that, the situation rapidly escalated, and soon cases of COVID-19 were being recorded all regions of Ukraine. In response to the pandemic, the Government of Ukraine introduced a nationwide lockdown from the period of 12 March 2020 until 21 May 2020, and afterwards the GOU introduced an adaptive quarantine in the country. A range of restrictive measures have since been continuously applied depending on the level of risk assigned to an area. The local authorities in charge of each area remained responsible for implementing the adaptive quarantine measures. “Red”, “orange”, “yellow”, and “green” zones were assigned by the State and Regional commission on Technogenic and Ecological Safety and Emergencies at the regional level according to data provided by the Ministry of Health. In May, following several days of increases in the number of COVID-19 cases registered – Ukraine entered the “red zone” due to the number of coronavirus infections, and the adaptive quarantine was continuously extended over time. As of the end of December 2020, the situation in Ukraine has escalated even more, and the numbers of newly registered cases and fatalities has started growing sharply. The COVID-19 pandemic has seriously affected Project’s beneficiaries and stakeholders in Kherson oblast. The crisis and the imposed quarantine and lockdown caused a reduction in household income, and a decline in economic activities and revenues of the local budgets. According to the findings of the COVID-19 Socio-Economic Impact Assessment conducted by UNDP in partnership with the Food and Agriculture Organization (FAO) and UN Women in May-June 2020, among the top concerns of household are paying back loans, paying utility bills, and increasing food prices. The pandemic has significantly reduced the average monthly income of more than half of the country’s households.

1.2. Project objective and key deliverables

The Project promotes sustainable socio-economic development at the local level by improving capacity of regional and local authorities to plan and implement crisis response and post-crisis recovery measures and secure progress towards SDGs. The Project’s expected results are: 1. Socio-economic impact assessment of COVID-19 at oblast level conducted; 2. Effective crisis response and post-crisis recovery measures developed; and 3. Capacities of regional and local authorities to implement response and recovery measured strengthened.

The key intended outcome of the Project is improved capacity of Kherson Oblast State Administration to plan and implement COVID-19 crisis and post-crisis response. The key deliverables of the Project are: 1: Social and Economic Impact Assessment

• Develop recommendations on COVID-19 socio-economic impact assessment in target oblasts taking into account their economic profile, regional specificities and geographical location, with specific focus on vulnerable population and employment; • Organize and conduct a workshop on COVID-19 socio-economic impact assessment at oblast level for representatives of responsible departments of Oblast State Administration and other institutions involved in the data collection, analysis and other processes related with performing the assessment. Provide guidance on methodology and organization of the assessment; and

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• Support the responsible departments of OSA in performing the Socio-economic impact assessment of COVID-19 at oblast level in line with provided recommendations. Develop recommendations on development of response and recovery measures.

2: Crisis response and recovery planning

• Develop crisis response measures and post-crisis recovery strategy in participatory manner, engaging the leadership of the targeted oblast, regional/local stakeholders and development partners. In particular, organize a public discussion involving local activists, researchers, NGOs, national and local think tanks and a participatory process of defining next steps. Summarize the discussion with clear follow up actions (integration of the supported measures in the regional strategy implementation plan, development of targeted regional programmes, revision of the regional budget, etc.); and • Update the Regional development strategy implementation plan taking into account the proposed COVID-19 response and recovery measures, as well as the need to secure progress towards SDGs and alignment with EU integration process through better coordination and streamlining of the international technical assistance projects supporting this area in order to ensure that support is concerted and focused.

3: New initiatives identified and implemented

• In consultations with the most vulnerable and affected groups identify, design and implement new development initiatives targeted at the recommendations of the conducted SEIA for the specific groups and with focus on the regional specificity. Plan and support concrete small-scale projects, for which at least 30% of co-funding should be allocated from the regional and local sources, in particular, at least 20% will come from government cost-sharing; and • Support the regional institutions in performing effective oversight and monitoring of implemented projects.

1.3. Project implementation arrangements

The Project is implemented by UNDP in Ukraine as part of the Regional Development Programme (RDP) within the broader Inclusive Development, Recovery and Peace Building (IDRPB) portfolio. The Project implementation team is led by a Team Leader supported by five staff members in the central office in Kyiv, and 1 regional coordinators (Community Development Associate) based in Kherson oblast of Ukraine. The regional coordinator is supported by a driver and provided with a car, covered by the Project. CDA takes responsibility in implementation of the Project’s activities in the regions with support of the management, administration and communication staff based in Kyiv. The local office is provided by the regional authorities under Memorandums of Understanding (MOUs) signed with UNDP for the period from 2017 until 2022. The local office is located on the premises of oblast state administration, backed up with UNDP project office based in Kyiv. The Project has established and maintained over time good and constructive partnership relations with regional and local authorities, including the regional administrations and councils, city councils, and ATCs, etc. No attempts by any regional authority to influence the Project implementation and/or obtain extra benefits for hosting the Project’s offices have been observed so far.

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2. RESULTS ACHIEVED BY THE PROJECT

During the reporting period, the Project has achieved significant progress in building and strengthening the capacities of Kherson Oblast State Administration to counteract the negative consequences of COVID-19 pandemic. Specifically, the Project established a strong implementation structure, engaged key stakeholders, and reached out to the potential beneficiaries, while also providing tailored and much-needed support to local communities, and establishing partnerships at the local level.

2.1. Output 1: Socio-economic impact assessment in Kherson oblast conduced

To fulfil this output, the Project has engaged with the key target groups - representatives of regional and local authorities, and local communities (ATCs) of Kherson oblast. The COVID-19 pandemic outbreak in Ukraine coincided with the insufficient progress of reforms, weakened health system, ageing population, macroeconomic decline and the protracted armed conflict in the eastern Ukraine. The pandemic drastically affected first of all the local authorities, in particular putting additional strains on the local budgets and the underinvestment in the health system. In addition, administrative services were suspended or partially provided due to the lack of local resources, both institutional and personnel to operate under the critical circumstances. Under the current project, UNDP guided the regional authorities at oblast level to support socio-economic recovery and ensure sustainable development of the regions within the framework of SDGs and the EU and Euro-Atlantic integration through more effective policy design and implementation and development coordination at the regional level. The COVID- 19 Socio-Economic Impact Assessment (SEIA) (Annex1) conducted by regional authorities with support of the LSER project in September 2020 shaped the landscape of current and future measures in the region to alleviate negative consequences of COVID-19 pandemic.

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LSER Project implementation team was established under the leadership of RDP Programme Manager. The Project recruited a Regional Advisor on socio-economic recovery and development with relevant experience and track record. The Regional Advisor was directly responsible for supporting the regional authorities at oblast level to ensure sustainable development of the regions within the framework of SDGs and the EU and Euro-Atlantic integration through policy design and coordination at the regional level. The Regional Advisor also supported LSER Project implementation in close cooperation with UNDP Oblast SDGs Coordinator in Kherson oblast.

The SEIA at oblast level was launched under the leadership of the Regional Advisor on Socio- Economic Recovery.

A kick-off meeting with the Head of Kherson Oblast State Administration was conducted by the LSER Project team in July 2020.

Under the leadership of the Head of Administration, a Working Group was established at oblast level to support SEIA and response and recovery planning in inclusive and participatory manner.

The Working Group was chaired by the First Deputy Head of the Oblast State Administration Mr. Andriy Bogdanovych and co-chaired by the UNDP Regional Advisor on Socio-Economic Recovery. The Working Group included representatives of relevant departments of OSA, other oblast-level institutions, local authorities and NGOs. The first meeting of the WG was conducted on July 28, 2020.

In September 2020, SEIA draft report was presented at the Working Group meeting, and later on, was finalized and translated into English.

The SEIA was based on the following data sources:

• Household and SME Survey (conducted by UNDP in May-June 2020); and • Online survey of the Amalgamated Territorial Communities of Kherson region (conducted in July-August 2020).

Among the SEIA key highlights were:

• The survey showed that in 4% of households one family member lost his job and, while the average monthly income of households is between 2000 to 10000 UAH, 88% of respondents said their income decreased due to the pandemic; • The big challenge is that 39% of the companies surveyed had to partially reduce their work due to the pandemic, while 21% completely stopped working during quarantine; • It is worth noting that though the majority of respondents indicated the pandemic affected men and women equally, 7.7% indicated that women were more affected.

SEIA conclusions were as follows: • The COVID-19 pandemic and related quarantine restrictions had a major impact on the daily lives of households and small and medium-sized businesses in Ukraine; • People were losing their jobs, their incomes were falling, and the state was not able to fully compensate families the loses; • While Kherson Oblast remained one of the safest in Ukraine in terms of the spread of coronavirus disease, people living in remote and rural areas did not have adequate access to quality healthcare and education. • Local government is well aware of the range of local problems and is ready to actively participate in their solutions; • It was evident that there is no single recipe for all communities and that local initiatives aimed at minimizing the effects of a pandemic should be implemented on a selective basis.

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Output 2: Recovery planning integrated into regional development strategy of Kherson oblast

A Working Group for COVID-19 response and recovery planning at oblast level was established under the leadership of the Governor (chaired by Deputy Head of Administration Mr. Bohdanovych and co-chaired by LSER Regional Advisor Mr. Savchenko. (see Annex 2 – Order 556). The full name of the WG was “On assessing the impact of the COVID-19 pandemic on the socio-economic development of the Kherson region and developing proposals for overcoming its negative consequences”.

The first draft COVID-19 Response and Recovery Plan for Kherson oblast developed in consultations with local authorities (see Annex 3) and discussed with the members of WG. Their feedback and additional proposals were collected and integrated in the plan by October 30, 2020.

In November 2020, the Working Group has approved the Response and Recovery Plan for Kherson oblast to overcome the negative impact of the COVID-19 pandemic on the socio- economic development of the Kherson region. This strategic document was specifically developed by the LSER Project in partnership with Kherson Oblast State Administration, and outlined key activities and measures to counteract COVID-19 negative impact, thus serving as a key source for the 2021-2023 Action Plan implementation of the Kherson Oblast Development Strategy for 2021-2027, as well as regional programs in relevant areas of Kherson socio-economic development. Thanks to the LSER Project, departments of the Kherson regional state administration in accordance with their competence are now equipped to update response and Recovery Plan for 2021-2023 implementation of the Kherson Oblast Development Strategy for 2021-2027, including identifying and planning of co-financing under draft budget of the Kherson region for 2021. At the same time, local authorities and local governments of Kherson region were provided with the information and data while developing local 2021 budgets. The COVID-19 Response and Recovery Plan for Kherson oblast was approved by the Oblast Administration on November 17, 2020 (see Annex 4 – Order 890) for further integration into the Oblast socio-economic development programme for 2021 and other relevant regional programmes and plans. This document is also a great resource mobilization tool. LSER Project organized an inclusive discussion on follow-up actions and recommendations for amendments to the Regional development strategy (2021-2027) and its mid-term implementation plan taking into account the proposed COVID-19 response and recovery measures, as well as the need to secure progress towards SDGs and alignment with EU integration.

Workshop on COVID-19 socio-economic impact assessment for representatives of responsible departments of OSA and other institutions involved in the data collection, analysis and other processes related with performing the assessment was provided, along with the guidance on methodology and organization of the assessment.

Summing up, LSER Project, in close cooperation with responsible departments of OSA, identified crisis response measures and formulated and presented post-crisis recovery strategy to the Head of Kherson OSA, regional stakeholders and development partners. In addition, clear follow up actions (integration of the supported measures in the regional strategy implementation plan, development of targeted regional programmes) were prepared and submitted to the Head of Kherson OSA.

Due to LSER Project guidance, the departments of the Kherson regional state administration were advised to develop measures included in the COVID-19 Response and Recovery Plan and take them into account when preparing the updated Action Plan for 2021-2023

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implementation of the Kherson Oblast Development Strategy for 2021-2027, as well as developing regional programs in relevant areas of socio-economic development in accordance with their competence. In addition, responsible departments of the Kherson regional state administration were recommended to provide their co-financing at preparation of the draft budget of the Kherson region for 2021, while the same recommendation was provided to local authorities and local governments of Kherson region.

The COVID-19 Response and Recovery Plan was developed based on: 1. UNDP Impact Assessment of COVID-19 on Socio-Economic Development of Kherson Oblast in September 2020; and 2. Data obtained from the survey of communities of Kherson region and structural units of the Kherson regional state administration conducted during August-September 2020.

Implementation of the Plan is envisaged during 2021-2023 with the funding including the State Fund for Regional Development, regional and local budgets and extra-budgetary funds including funds for international technical assistance, charitable contributions, etc.

The provisions of the Development Strategy of the Kherson region for the period 2021-2027 and the directions of the COVID-19 Response and Recovery Plan for its implementation in 2021-2023 are taken into account in the process of COVID-19 Response and Recovery Plan development.

Specifically, the COVID-19 Response and Recovery Plan contains: • Projects submitted under the local initiatives call for proposals to overcome the consequences of COVID-19 in Kherson region, that was conducted jointly with UNDP and Kherson regional state administration during July - September 2020; and • Proposals from Working Group members on preparation and implementation of an Action Plan to overcome the consequences of the COVID-19 in Kherson region.

COVID-19 Response and Recovery Plan includes 33 projects in 5 areas totaling UAH 125 mil, and specifically: 1) Protection: social protection and main services (12 projects); 2) Healthcare: protection of medical services and systems during crisis (8 projects); 3) Equal access to education (5 projects); 4) Economic recovery: protection of employment, SMEs (7 projects); and 5) Social cohesion and community resilience (1 project). With LSER Project support, policy advice and recommendations to the Head of OSA on development and implementation measures in response to COVID-further post-crisis recovery with specific focus on protection of vulnerable groups were conducted.

Output 3: Socio-economic recovery initiatives identified and implemented

On July 22, 2020, UNDP, together with the Kherson Regional State Administration, has announced a call for local initiatives (small scale projects) aimed to address the challenges related with COVID-19 among local communities in the Kherson region. By August 22, 2020, 61 applications were received and technically evaluated totaling more than UAH 44 million.

12 applications were selected for further financial support from UNDP Ukraine. These 12 applications totaling more than UAH 2 million were combined into 5 thematic clusters. The

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amount of co-financing from the partners of 5 cluster initiatives was 32% of the total project cost.

The main selection criteria of the call for local initiatives were: 1. Focus on overcoming the negative consequences of the COVID-19 pandemic; 2. Project co-financing not less than 30% of the total project budget; and 3. Ability to implement initiative in a relatively short period (2-3 months).

The final project proposals selection was made in consultations with project partners by the end of August 2020, and implementation started in September 2020.

All project proposals envisaged at least 30% of co-funding, in particular, at least 20% came from government cost-sharing (either from local or oblast budgets). The implementation period for all local initiatives was limited to 3 months, so they could be financed and completed by December 31, 2020.

LSER Project supported and monitor the pilots under the following clusters:

Ø Tourism infrastructure development; Ø Social entrepreneurship for women and youth; Ø Improved access to quality health care and rapid diagnosis; Ø improved access to online education; and Ø Improved access to quality administrative service for vulnerable groups and residents of remote settlements.

Annexes 5 - Improved Access to Online Education Cluster

Annex 6 - Social entrepreneurship for women and youth

Annex 7 - Tourism infrastructure development

Annex 8 - Improved access to quality health care and rapid diagnosis

Annex 9 - Improved access to quality administrative service for vulnerable groups and residents of remote settlements

v Access to online education

The main goal of the cluster initiative in the field of online education is to provide equal opportunities for children from vulnerable families for quality online education.

The implementing partners of this initiative are Prisivash, Askania and Vinogradov amalgamated territorial communities (ATCs). Under the initiative, 36 tablets were purchased with UNDP funds (12 for each of the three communities).

From their part, the partners contributed to providing access to the Internet in their localities, purchased the necessary equipment to organize the online learning process. Specifically, Askania ATC purchased additional 9 tablets, Prisivashskaya ATC - purchased and installed routers in school to improve quality and expand Internet coverage, and Vinogradov community purchased accessories for tablets, 4 mobile phones for teachers of 4 schools in the community, as well as 4 sets of all necessary accessories for conducting lessons online.

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All gadgets were distributed to children from vulnerable families to ensure equal opportunities to gain access to quality online education. As of now, 100 children who were unable to study online have enjoy this opportunity along with all other children.

The total budget of the cluster initiative is UAH 406,842.

The problems caused by the COVID-19 pandemic required immediate comprehensive and effective actions

For some families with children in remote rural communities, continuing the quarantine learning process has become almost impossible. And although most teachers are able to teach lessons remotely - some from home, some from their workplace at school - children, especially from low-income large families, due to lack of sufficient means of communication, such as tablets, laptops or ordinary computers, do not have the opportunity to "attend" classes online. In some places, access to the Internet is limited, which greatly complicates any work.

As a result, children from vulnerable families living in remote corners of the Kherson region now have better access to online education. At the same time, their parents have increased their digital literacy.

But having a tablet or laptop and having access to the Internet does not mean digital literacy. Therefore, trainings on the use of modern gadgets and software for distance learning were organized for both children and parents. A seminar was also held for teachers and local government officials, which strengthened the capacity to provide quality online educational services. As a result, their awareness of online education methods and tools has increased by more than 50%.

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v Support to social entrepreneurship

The main goal of the initiative for the development of social entrepreneurship is to unite partner efforts to counter COVID-19 in the Nizhnesirogoz community. Implementing partners of this initiative are the NGO "Center for Family Welfare", Nizhnesirogoz territorial community, Nizhnesirogoz employment center, and private entrepreneurs.

The activities of this initiative include diversification and further development of the existing garment social enterprise in the Nizhnesirogoz community to re-train and involve women and youth economically affected by the coronavirus pandemic into the production of personal protective equipment.

6 sewing machines, an overlock machine and a camera were purchased with UNDP funds. The partners contributed in the form of consumables (fabric for sewing masks, elastic, threads, scissors, needles, stationery), as well as the sewing training for unemployed women. Currently there are 10 people involved in entrepreneurship. During quarantine, women had the opportunity to work from home.

The total initiative budget is UAH 115,350.

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Crisis as an impetus for finding new ways and opportunities for socio-economic recovery of the local economy after COVID-19

Social entrepreneurship is gaining new relevance in the context of overcoming the effects of the COVID-19 pandemic and socio-economic recovery of the regions. An example of this is a sewing workshop in the village of Nyzhni Sirogozy in the Kherson region, which provided work for local women.

The level of poverty in rural areas has always been almost twice as high as in large cities. This problem was especially acute during the pandemic, and hundreds of thousands of people lost their jobs due to the economic downturn, closure of small and medium-sized businesses, and restrictions on the movement. The crisis has hit hard on the most vulnerable rural communities. Many families found themselves on the brink, unable to earn a decent living.

Last year, in order to overcome the negative impact of the pandemic, the NGO Family Welfare Center proposed to direct the activities of its small social enterprise in the village of Nyzhni Sirogozy in the Kherson region to sew re-usable masks. This initiative aimed to combat unemployment, while also provide personal protective equipment for the socially vulnerable population.

The sewing machines, overlock, fabrics were purchased with UNDP funds and the agreement with the district employment center to teach sewing to women from rural areas was signed. It took about a month to conduct regular and online training and learn to cut and work with sewing equipment. By the way, there were more people willing to sew than expected.

Nowadays, seamstresses spend three to five minutes sewing one mask. More than 2,000 masks were already produced and were provided to residents of remote settlements, as well as schools. The masks are also sold at a textile shop, and the cost of masks varies from UAH 12 to UAH 25 depending on the fabric, design, etc. There are customers who order exclusive masks with embroidered names and logos, as well as wholesale customers, including the Nizhny Sirogoz District State Administration and several village councils. The sewing workshop also receives orders for work clothes, national costumes for creative teams,

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tailoring and clothing repair services. Moreover, the seamstresses plan to create their own brand soon. All funds earned by the company are distributed as follows: 20% - is accumulated in the public organization and used for contributions to grant programs, another 20% - is used for development, renewal, training and more. 10% is the reserve fund of the enterprise. The remaining 50% is spent on administration and salaries.

v Support to development of tourism The main goal of the tourism cluster is to create conditions for the socio-economic development of the community through the development of the tourism sector. Implementing partners of this initiative are Future of Grigorievka NGO and Prisivash ATC. UNDP Ukraine funds were used for purchasing a stage for holding mass events (festivals and other mass events), as well as 2 bicycle parking lots with 10 bicycles. From its part, the community developed a tourist route for 8 locations, marked the route (produced billboards, plates with QR-codes), which significantly improved the tourist route orientation. Also, the community will soon purchase 4 gazebos and a catamaran to be used by community residents and guests (this will help create 3 additional jobs). The community also developed, ordered and purchased souvenirs. The implementation of this initiative will significantly increase tourist attractiveness of the southern region of the region, as well as promote domestic tourism especially important during the quarantine period. The total budget of the initiative is UAH 881,600.

UNDP Ukraine, in partnership with the Kherson Oblast State Administration, the Hryhorivka Village Council of the Prisivash Territorial Community and the Future of Hryhorivka NGO, has implemented a joint initiative to develop tourism infrastructure around Lemuriysk Lake.

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The tourist season will start in Kherson region in a few months. A few kilometers from the village of Grigorivka in one of the bays of the Gulf of Sivash is Lake Lemuria, known for its pink water. This unusual color comes from unicellular algae that produces beta-carotene under the action of the sun.

Thus, nature itself suggests the direction of development - tourist infrastructure and creation of new opportunities for small and medium-sized businesses, especially important at a time when the pandemic is putting intense pressure on the local economy and people’s reduced incomes. The local authorities in partnership with the Future of Hryhorivka NGO offered this initiative that was fully supported by UNDP Ukraine within the LSER Project. Unfortunately, the pandemic has caused and still puts an additional burden on the healthcare system. It left many people jobless, affected the education process, and restricted movement. Its consequences are felt in every sphere, in every region. Consequently, the tourism sector of Kherson region also suffered losses. Due to the spread of coronavirus and the introduction of quarantine restrictions, the number of tourists visiting Lemuria Lake and Ivanovo Spit decreased by 40% in 2020.

On the territory of the Prysyvash community there were no markings of tourist routes and many tourists had difficulties - in which direction to go and what to see. There was also no arranged place for festivals and other interesting events. In general, a lack of public space for small business development and tourism industry made local community look for a solution.

The first thing community decided to do was mark the tourist routes and combine them into the "Salt Road", which runs through eight locations, and, in particular, the Roman Catholic Church of St. Gregory, the Museum of Local Lore in Hryhorivka, a self-flowing spring near Novovolodymyrivka, Ivanivska spit bay Sivash, etc. Special tourist signs have been installed along the routes. They also bought a bicycle parking lot with 10 bicycles and 4 gazebos, where you can relax, admire the scenery and watch migratory birds at the ponds near Stroganovka. This place is a real finding for ornithologists and just photo enthusiasts.

In addition, this summer on Lake Lemuria you can ride a catamaran. Or visit the festival - a mobile stage for cultural events has also been purchased. The project lasted three months, and which 65% of its budget was provided by UNDP Ukraine, while 35% - by Hryhorivka Village Council.

Thanks to the LSER Project, at least two major festivals will be held here annually, helping to promote the community and the region. According to our forecasts, the tourist flow will increase by 20% annually, and by 2025 at least 100 thousand tourists will visit the community. As a result, the income of local entrepreneurs and revenues to the local budget will increase, making the pave to "green" tourism and stimulate investment in the tourism sector in the Prysyvash territorial community.

v Access to healthcare services The main goal of the cluster initiative in the field of medicine is to ensure a new quality of healthcare for residents of Novoalexandrovsk and Zelenopod territorial communities of Kherson region.

This initiative promotes equal opportunities for medical services for all categories of citizens, including the elderly, people with limited mobility and residents of remote settlements.

Implementing partners are Novoalexandrovskaya and Zelenopodskaya territorial communities of the region.

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As part of the initiative, 5 mobile diagnostic complexes for 5 medical and obstetric points (MOPs) were purchased with UNDP funds, and medical staff was trained in telemedicine skills. This complex allowed to carry out primary diagnostics of the patient, to transfer survey data via the Internet to the narrow expert allowing to receive primary consultation of the doctor on the spot, without overcoming big distances to the oblast center. The mobile complex can be used as in main healthcare community point, as well as in rural MOP, and most importantly, at home.

From their part, the partner communities provided connection of rural MOPs to the Internet, purchased the necessary equipment for the laboratory (aqua distillator, urine analyzer, microscope, glucometer, centrifuge), equipment for the treatment room (tripods for infusions, equipment for the physiotherapy room (irradiated bactericidal lamps , inhaler), necessary medical equipment for doctors (ophthalmoscope, pulse oximeters, tonometer, peak flow meter), furniture for MOP and outpatient clinic (couches, chairs, tables), computer equipment (laptop, computer) depending on the needs of each community.

The total budget of the cluster initiative is UAH 446,985.

v Provision of administrative services The main goal of the cluster initiative in the field of administrative services is to ensure equal opportunities, improve quality and accessibility of administrative services to business entities and residents of 3 communities of the Kherson region.

The implementing partners of this initiative are the Department of Information Technologies of the Kherson Regional State Administration, and Veliko Alexandrovskaya, Vernyorogachitskaya and Skadovskaya territorial communities.

Within the framework of this initiative, 3 sets of equipment for the mobile automated workplace of the Administrative Service Provision Center (ASPC) administrator, the case of the ASPC “Mobile Office” workstation were purchased with UNDP funds, and staff training was conducted.

From their part, the partners purchased an automatic aerosol spray system, computer equipment (laptops, uninterruptible power supplies, MFPs), a set of furniture (cabinets), air conditioning, contactless thermometer - depending on the needs of each community.

This mobile case can be used both in both ASPC itself and in remote villages of communities, for example, in the premises of the village council. Certain administrative services can be also obtained right from home - this is especially practical and usrful for people with limited mobility, as well as during quarantine restrictions.

The total budget of the cluster initiative is UAH 343,830.

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In the framework of LSER Project, an assessment of capacity development needs and digital performance of relevant departments of OSA, involved in COVID-19 response and recovery measures was development and implemented. Recommendations on strengthening the functions and the service delivery of public administration through enhanced digitalization were grouped and presented in Ukrainian version of the report.

The Project was successfully identified new opportunities for UNDP Ukraine to extend its presence in the region and support its recovery and sustainable development, and namely, a joint Strengthening the Community Resilience in Kherson oblast Project financed by the British government.

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2.2. Establishing partnerships and stakeholders’ engagement

At the initial stage of Project implementation, key partnerships were established at the national and sub-national levels. During the reporting period, the Project continued cooperation efforts between all partners and beneficiaries, including the Kherson State Oblast Administration, the Office of Reform of Kherson Oblast, and ATCs.

During the COVID-19 quarantine, dialogue between the Project and stakeholders and beneficiaries was intensified via online meetings conducted in addition to the regular provision of updates on Project implementation for the Kherson ODA management.

A joint working group (WG) was established in July 2020, consisting of the Project and its partners – Kherson OSA, ATCs and CSOs – with the purpose of coordinating all joint activities related to project activities and interventions. The WG actively works on the development and coordination of topics and schedules of counteractive COVID-19 measures, aiming at addressing all essential and critical issues in an inclusive and participatory manner.

Finally, the WG Meeting, held on a monthly basis online since October 2, 2020, continues to serve as a coordination mechanism between all partners of the LSER Project.

At the regional level, UNDP works on the basis of its pre-established partnerships with all oblast state administrations and councils, under the recently signed Memorandum of Understanding for Sustainable Development, relevant to the proposed interventions and expected results of the Project. UNDP Project Team along with Community Development Associate in Kherson region ensure that regional (oblast) authorities are properly informed about the Project and advocate for its support, as stipulated by the MOUs, and regularly update authorities on key project results and events.

2.3. Challenges and risks

Since the beginning of Project in July 2020, new challenges arose with the COVID-19 pandemic, both for the Project and its final beneficiaries and stakeholders.

The risk of coronavirus infection for project staff both in the central and local offices was immediately mitigated by changing working arrangements and switching to telecommuting mode. All relevant information and training were provided to staff, including the webinars facilitated by highly qualified WHO specialists on infection risk mitigation and stress management facilitated by UNDSS Stress Counsellor, in order to ensure the good physical and mental health of the staff.

There was a risk of a significant slowdown of the Project’s activities in the region due to restrictive measures. Additional mitigation measures were developed to minimize the impact of the restrictive measures and allow the implementation of the planned activities in an alternative setup, ensuring the attainment of the set targets. The Project reorganized its activities due to widespread restrictions on mass gathering and travel to an online format using digital tools. The Project also intensified remote individual consultations (using various telecommunication means), online meetings and webinars.

Another identified risk is related with the fact that under existing trends the incomes and savings of Ukrainians will further decrease, thus communities will not prioritize their earlier

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commitments during joint initiative implementation. To address the risk, the Project initiated a dialogue with local authorities in target communities aimed at identifying solutions.

Among the main challenges is the fact that most of the regional/municipal programmes do not have resources to support targeted community’s needs, while their continuation will depend on the policy of newly elected representatives of local governments.

2.4. Communication strategy and communication implementation plan

The Project’s Communication Strategy sets the following objectives:

• To inform target audience vis-a-vie existing possibilities of COVID-19 response on the regional level; • To showcase best practices of the local response to the challenges caused by pandemic; • To disseminate information on the local sustainable socio-economic development and practical results attained; and • To strengthen visibility of the coherent recovery work and mutual efforts of UNDP Ukraine and government authorities. The overall goal of reaching not less than 20,000 people and increasing their awareness of socio-economic recovery initiatives was a cornerstone of the Communication Implementation Plan (Annex 10). The use of properly selected communication tools expanded the coverage to over 35,000 people.

Target audience • Local authorities. Representatives of local government, oblast state administration ensuring socio-economic development through implementation of initiatives aimed at mitigating and overcoming the effects of the COVID-19 pandemic at the local and regional levels. • Community. Representatives of non-government organizations and associations, local communities, community leaders and activists interested in socio-economic problem- solving of the region caused by the COVID-19 pandemic. • Media. Representatives of the media active in informing about the COVID-19 pandemic and the efforts of international organizations such as UNDP in Ukraine, local and regional authorities to overcome its consequences. • Other potentially interested parties. Potential donors - EU representations, representatives of the business community, private entrepreneurs, business associations, etc.

Key Performance Indicators • Social media reach: not less than 20,000 people. • Press coverage: not less than 15,000 people. • Videos: Number of views. Number of likes and tone of comments under YouTube and Facebook videos.

Key messages • UNDP supports country’s response to COVID-19 pandemic with straightforward actions in regions.

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• Local authorities and civil initiatives should develop the capacity to tackle the outcomes of the pandemic at the local level.

General messages: ▪ UNDP supports Ukraine in recovering from the COVID-19 pandemic through economic and social projects in the regions. ▪ Transformational change is impossible without partnership between government, the civil society, business, and all stakeholders - it is the key to solving economic, social or environmental problems (SDG 17).

Messages for the local authorities:

▪ Regional and local authorities in Ukraine face significant challenges in assessing the socio- economic impact of COVID-19 and developing post-crisis response and recovery measures. ▪ Local governments with UNDP Ukraine support should develop the capacity to address the effects of the pandemic through local action.

▪ The Local Socio-Economic Recovery Project in Kherson Oblast is a clear example of political will and effective response to the needs of the region during the crisis.

Messages for the civil society: ▪ Overcoming the socio-economic consequences of COVID-19 and entering the path of sustainable development is the only possible way to ensure a new quality of life. ▪ Communities and civil society leaders should realize they are the engine of transformation and adopt the experience of Kherson region, where a number of initiatives have already been successfully implemented in the framework of the Local Socio-Economic Recovery Project.

▪ The community should never be confined to its own framework.

Messages for the media: ▪ A number of important initiatives have been implemented within the framework of the Local Socio-Economic Recovery Project in Kherson oblast effecting people's lives.

Messages for other potentially interested parties: ▪ UNDP in Ukraine helps overcome the negative effects of the COVID-19 pandemic by supporting the socio-economic development of the regions. ▪ The private sector should not stay away, but unite with like-minded people from the civil society and government around common goals and values, etc. ▪ The international community is welcome to join and provide targeted support towards socio-economic recovery of the country.

Hashtags (ENG/UKR) and key stakeholders to be tagged on social media (e.g. donors, CSOs, other key partners) • Херсонська обласна державна адміністрація, @khoda.gov.ua • Урядовий офіс координації європейської та євроатлантичної інтеграції, @goeei.ua • #LSER, #BuildForwardBetter

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Expected products • Photo and video tours with text annotation in social media; • Cases/success stories covering implemented initiatives; • Articles in the form of columns, blogs posted at priority media resources; • Interviews and/or live TV and radio broadcasts on local community development with regional initiatives beneficiaries; • Press-releases on the implementation with the direct speech of representatives of UNDP Ukraine and the Kherson Regional State Administration; • Events (e.g. workshops, training, press conferences).

Communication principles All information and communication activities are based and implemented in compliance with the following principles:

Intelligibility. Communication should be clear to the target groups - with clearly articulated messages in relevant language and, in particular, without excessive use of terminology; structured in terms of content; containing practical examples and recommendations, as well as setting for further action.

Recognizability. The information materials disseminated throughout the project contain UNDP Ukraine logo as a leading UN agency that supports sustainable development at the national, regional and local levels.

Systematic. All actions are aimed at gradual, consistent and uniform information coverage of each of the target groups, and in general - at understanding of the need for interaction (partnership) with each other.

Flexibility. During the implementation of the communication strategy, it is possible to make changes to the plan of the information campaign taking into account the results of the actions already performed, including feedback from target groups, media partners, etc.

Communication channels The communication strategy envisages establishing partnerships with national and regional media partners.

The following channels are used for external communication purposes:

Internal: official website and official pages (hereinafter - resources) of the UN Development Program in Ukraine in social networks (Facebook, Youtube, Twitter).

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3. PLANS FOR THE NEXT PERIOD

UNDP Ukraine and the British Government launched a joint Strengthening the Community Resilience in Kherson oblast Project to increase the resilience of local communities in Kherson Oblast as of January 1, 2021.

The Project will strengthen community resilience of Kherson oblast in counteracting the negative impact of COVID-19, as well as enhancing trust between the citizens and governmental institutions through improved access to quality public services for most vulnerable groups, particularly the elderly, children, disabled and women. Local authorities demonstrated a proactive approach to mitigate the negative consequences of COVID- 19 crisis. Representatives of village councils, regional and oblast authorities analyzed challenges faced by local population and institutions, and in partnership with LSER Project, proposed efficient solutions and implemented best practices, suggested by LSER Project and partners. Specifically, UNDP has partnered successfully with the Kherson Oblast State Administration and local authorities in Kherson oblast by deploying the high-level expertise. That helped to apply a region-specific approach to the response and recovery plan focusing on the most vulnerable population needs and safeguarding SDGs.

Kherson regional authorities have now skills in strategic and participatory planning, economic development, and resource mobilization as the result of UNDP’s support. LSER Project methodology has proven to be an effective tool for community mobilization and local development. Overall, 24,225 women and 18,275 men benefited from improved livelihoods in targeted local communities. Moreover, UNDP- supported LSER Project has inspired other communities, not directly involved in LSER activities, to mobilize resources for further development activities and develop their own social projects.

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ANNEXES

Annex 1 – The COVID-19 Socio-Economic Impact Assessment

Annex 2 – Kherson OSA Order 556

Annex 3 – Response and Recovery Plan for Kherson oblast

Annex 4 – Kherson OSA Order 890

Annex 5 – Improved Access to Online Education Cluster One Pager

Annex 6 – Social entrepreneurship for women and youth One Pager

Annex 7 – Tourism infrastructure Development One Pager

Annex 8 – Improved access to quality health care and rapid diagnosis One Pager

Annex 9 – Improved access to quality administrative service for vulnerable groups and

residents of remote settlements One Pager

Annex 10 – Communication and Implementation Plan

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