USAID ECONOMIC RESILIENCE ACTIVITY: ANNUAL REPORT October 01, 2019 – September 30, 2020
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USAID ECONOMIC RESILIENCE ACTIVITY: ANNUAL REPORT October 01, 2019 – September 30, 2020 This publication was produced by the USAID Economic Resilience Activity under Contract No. 72012118C00004 at the request of the United States Agency for International Development. This document is made possible by the support of the American people through the United States Agency for International Development. Its contents are the sole responsibility of the author or authors and do not necessarily reflect the views of USAID or the U.S. Government. Program Title: USAID Economic Resilience Activity Sponsoring USAID Office: USAID Ukraine Contract Number: 72012118C00004 Contractor: DAI Global, LLC Submission Date: October 30, 2020 Author: DAI Global, LLC CONTENTS CONTENTS 2 ACRONYMS AND ABBREVIATIONS 3 I. EXECUTIVE SUMMARY 6 II. INTRODUCTION 8 BRIEF SUMMARY OF ACTIVITY 8 III. CONTEXT UPDATE 9 KEY NARRATIVE ACHIEVEMENTS 9 BIG INFRASTRUCTURE 11 INCLUSION 13 INCREASING CAPABILITIES 13 INCREASING OPPORTUNITIES 18 GROWTH 23 MARKET EXPANSION 24 INVESTMENT ACCELERATION FOR MSMES 31 TRANSFORMATION 33 DRIVING VISION 34 COMMUNICATION 39 SUPPORTING INFRASTRUCTURE INVESTMENT 41 IV. COORDINATION 43 V. PROGRESS AGAINST TARGETS 46 VI. PERFORMANCE MONITORING, EVALUATION AND LEARNING 50 VII. LESSONS LEARNED 54 VIII. FINANCIAL INFORMATION 57 IX. MANAGEMENT 58 X. SUB-AWARD DETAILS 60 ACRONYMS AND ABBREVIATIONS A2F Access to Finance AGRO Agriculture Growing Rural Opportunities Program AMELP Activity Monitoring, Evaluation, and Learning Plan BSP Business Service Provider BSPU Berdiansk State Pedagogical University CAP Credit for Agricultural Producers program CC Consolidated Community CdA Chargé d’Affaires CEP Competitive Economy Program COP Chief of Party CSR Corporate Social Responsibility DAI DAI Global LLC DFID Department for International Development DG East Democratic Governance East DonNTU Donetsk National Technical University DOSA Donetsk Oblast State Administration DRC Danish Refugee Council ECOS Environmental Compliance Support EBRD European Bank for Reconstruction and Development EIB European Investment Bank EPS Energy Security Program ERA Economic Resilience Activity ERC Environmental Review Checklist EU European Union FAO UN Food and Agriculture Organization FHI 360 Family Health International 360 (NGO) FMCG Fast Moving Consumer Goods GAP Good Agricultural Practices GBV Gender-based Violence GCA Government Controlled Areas GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GoU Government of Ukraine HACCP Hazard Analysis and Critical Control Points HoReCa Hospitality, Restaurant, Catering I4M Innovations for Manufacturing ICA Individual Contract Agreement ICRC International Committee of the Red Cross IDP Internally Displaced Persons 3 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV IFI International Financial Institution IOM International Organization for Migration I4M Innovations for Manufacturing ISS Institute for Strategic Studies under the President of Ukraine IT Information Technology KOSA Kherson Oblast State Administration LGBTQI Lesbian, Gay, Bisexual, Transgender, Queer and Intersex LNAU Luhansk National Agrarian University LoA Life of Activity LOSA Luhansk Oblast State Administration LRLC Luhansk Regional Laboratory Center MEL Monitoring, Evaluation, and Learning MinTOT Ministry for Reintegration of Temporary Occupied Territories MIF Mariupol Investment Forum MoES Ministry of Education and Science MSME Micro, Small, Medium Enterprises MSRA Market Systems Resilience Assessment MVP Minimum Viable Product NGO Non-Governmental Organization NSDC National Security and Defense Council OTI Office of Transition Initiatives PE Private entrepreneur PLEDDG Partnership for Economic Local Development and Democratic Governance PPP Public Private Partnership PSTU Pryazovskyi State Technical University R&D Research and Development RFA Request for Applications RFP Request for Proposal P&R Pause and Reflect SAF Small Architectural Form STEM Science, Technology, Engineering, Mathematics TA Technical Assistance ToR Terms of Reference ToT Training of Trainers TSATU Dmytro Motornyi Tavria State Technical University UCAB Ukrainian Club of Agribusiness UCBI II Ukraine Confidence Building Initiative ULA Ukrainian Leadership Academy UNDP United Nations Development Program USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 4 UNFPA United Nations Population Fund UNICEF United Nations Children’s Fund USAID United States Agency for International Development UUCU Ukrainian United Credit Union UWF Ukrainian Women’s Fund VC Value Chain VR Virtual Reality VEI Vocational Education Institution VET Vocational Education Training WHO World Health Organization WBSC Women’s Business Support Centers WNISEF Western NIS Enterprise Fund WfD Workforce Development ZOSA Zaporizhzhia Oblast State Administration 5 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV I. EXECUTIVE SUMMARY The year can be reviewed in two halves, before and after COVID-19. Although not a symmetrical division, the ERA program felt the effects and changes brought on by the global pandemic in March 2020, almost mid-way through implementation of an ambitious and innovative workplan. It was innovation, ambition and creative teamwork that enabled ERA to adapt and make plans to achieve and exceed many goals and objectives in Year 2. October 2019 began with strong positive economic indicators in Ukraine’s economy including employment and sales throughout ERA’s area of operation in the eastern Oblasts of Luhansk, Donetsk and Zaporizhzhia. The outlook was positive, as the international community was able to see firsthand the enthusiasm and opportunities available in the east at the Mariupol Investment Forum supported by ERA and attended by President Zelenskyi and acting U.S. Ambassador Taylor. While the Russia-backed conflict in eastern Ukraine was still a primary concern during the reporting period, the early steps of the Zelensky government to reduce tension through prisoner swaps and discussions of potential economic cooperation allowed citizens to focus on new opportunities and economic development. In response, ERA supported development of economic opportunities throughout the year with targeted programming in each of its newly arranged and integrated technical components: Inclusion, Growth and Transformation. ERA also maintained its commitment to close coordination with USAID partners such as DG East, the Energy Security Program (EPS), the Competitive Economy Program (CEP), the Credit for Agricultural Producers (CAP) program, international organizations including the World Bank and European Investment Bank, and local, Oblast and national government partners. ERA introduced a new organizational structure by adding a Deputy Chief of Party Operations, based in Kyiv, to streamline grants and procurements systems, a Senior Engineer in Kramatorsk to solidify the logical sequence and quality of the infrastructure project verification process, and a new Deputy Chief of Party Technical based in Kramatorsk to complement and support partner relationships and the in-depth technical and contextual knowledge of the Economic Strategy Lead based in Sievierodonetsk. Despite the onset of the COVID-19 global pandemic and the accompanying remote work and travel restrictions, ERA adapted its programming and operations through direct communication and coordination with partners and beneficiaries to continue progress on workplan goals and targets while maintaining compliance with Government of Ukraine, USAID and DAI health and safety policies and procedures. ERA expanded its partnerships and area of implementation in February to include Henichesk, Kherson Oblast, through signing a Memorandum of Cooperation. The ERA Inclusion, Growth and Transformation teams worked together throughout the year to adapt programming and project interventions to an online or distance format and reschedule or redesign activities with partners, beneficiaries, and grantees. The Inclusion team worked closely with partner organizations, universities, NGOs, ministries, local government employment agencies and grantees to continue to deliver online training and technical assistance to vulnerable groups including women entrepreneurs, students and youth including IT startups throughout the east. The Growth team supported local produce firms to attend international trade fairs in Berlin and Dubai resulting in new forward contracts, and increased access to finance for SMEs and targeted online strategic consulting for 16 innovative manufacturing USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 6 enterprises. The Transformation team partnered with Luhansk Oblast and Donetsk Oblast, eleven municipalities and consolidated communities (Starobilsk, Novopskov, Bilovodsk, Pokrovsk, Dobropillia, Kramatorsk, Bakhmut, Mariupol, Berdiansk, Melitopol, and Henichesk) and the seven cities of the Coal City Sustainable Development Platform in Donetsk Oblast to develop and promote highly participatory economic development strategic plans and visions for the future, including identification of high-priority infrastructure projects. Working together, the ERA teams combined to award more than $4.2 million in grants, train more than 2,400 people, help SMEs secure more than $6 million in new investment and assist at least 500 people to find new or better employment. 7 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV II. INTRODUCTION DAI is pleased to submit this Annual Report for the USAID Economic Resilience Activity