Application for Grants from the Ministry of Foreign Affairs 501 -Application for Project/Programme Support

Updated April2017

Norwegian Ministry of Foreign Affairs Application for grants from the Ministry of Foreign Affairs 501 -Application for project/programme support

Ministry of Foreign Affairs The application and attachments should be sent to [email protected] Postbox 811 4 Dep with a copy to the unit responsible for the grant scheme. For more N-0032 Oslo information see www.regjeringen.no.

Read this first • The budget and results framework shou ld be attached to the application. • In principle, all the information asked for in the application form shou ld be filled in. If any questions are not relevant, this should be explained. • Instructions and questions that may be relevant are provided in the comments. These may be useful when filling in the sections concerned.

Key information Name of applicant (and abbreviation) I United Nations Development Programme (UNDP) in Tajikistan I Name of projecVprogramme and a brief description [ Communities Programme of UNDP Tajikistan (CP).

Building on its reconstruction and rehabilitation efforts in rural areas since 1996, UNDP launched the CP programme in 2004 to support poverty reduction efforts of the Government of Tajikistan through improving local governance and promoting sustainable local development through a bottom-up and integrated approach. CP's operations on the ground are implemented through five Area Offices located in three regions: Sughd, Khatlon and Rasht Valley.

In 2017-2019 the CP portfolio reached US$9.3 million (for 2017-2019). For details please refer to Attachment 3. I Grant scheme I non-core contribution of Type C support where Norway contributes to UNDP as single donor

Unit responsible for the grant scheme (in the Ministry or at a mission abroad) . Norwegian Ministry of Foreign Affairs, Section for Russia, Eurasia and regional co-operation

Total amount apllied for in NOK Ar 1 i NOK 5,916,038.77 Ar2 NOK 2,666,669.421 Ar3 I I I NOK 8,582, 708.19 I II I I I I

PART 1: GENERAL INFORMATION ABOUT THE APPLICANT AND PARTNERS 1. Contact information, applicant 1.1 Postal address 39 Ayni street, Dushanbe, Republic of Tajikistan

1.2 Telephone no. 1.3 Email address +992 44 600 55 regist!Y.tj@und(2.org I 96

1.4 Website

1 As per UN Exchange rate as of I November 2017, I USD=8.174NOK 1 Updated April2017

1 www.ti.undp.org I

1.5 Contact person, name and title I Mr. Jan Harfst, Country Director, UNDP Tajikistan I

1.6 Contact person, email address 1.7 Contact person, telephone no. [ [email protected] ] ' +992 44 600 55 96 I 97 I

2. About the applicant 2.1 Type of organisation (enter a cross in one box per line) ; Programme of the United Nations I

[101 Governmental/public IDI Non-governmental, specify: 1 1 ~ Multilateral

[IDI Norwegian, erg. no.: I I ID] Non-Norwegian, erg. no. if relevant: I J

2.2 Brief description of applicant I History: UNDP is working in the Republic of Tajikistan since 1994. With the adoption of the Living Standard Improvement Strategy (2013-2015) in 2012, the Government has started its transition to sustainable development. In 2016, the Government of Tajikistan adopted its National Development Strategy 2016- 2030 and the Mid-Term Development Programme (2016-2020), which are well aligned with the Agenda 2030 for Sustainable Development. UNDP Tajikistan is well positioned to support Tajikistan's efforts in promoting sustainable development, including in governance, rule of law and access to justice areas. UNDP is a proactive member of Tajikistan's Donor Coordination Council established to hold high level policy dialogue of development community and the Government. As such, UNDP Chairs DCC's Governance Cluster, and also leads DCC's Working Group on Rule of Law and Access to Justice and co-chairs the Working Group on Public Administration and Public Finance Management Reform. Since 2012, UNDP Tajikistan is actively engaged in the country's ongoing judicial and legal reforms through strategic partnerships with the judicial sector institutions, including the Ministry of Justice and the Office of Ombudsperson. With the funding from the Governments of Switzerland and Finland, UNDP has supported the creation of the Policy Dialogue Platforms on Rule of Law and Access to Justice at the national and sub-national levels for evidence based policy level discussions and planning through meaningful participation of Civil Society Organisations (CSO). As part of its work on rule of law and access to justice, UNDP supports the Government in implementing the recommendations of the Universal Periodic Review (Cycle 1 - 2012; Cycle 2- 2016), particularly focusing on judicial reform, legal aid, prevention of domestic violence, and promoting the rights of persons with disabilities. As such, UNDP currently supports the country's transition from CSO to state run legal aid system. During the last 3 years, UNDP has supported legal aid provision to 30,000 people, including 65% women and 8.4% of persons with disabilities. To complement this work, UNDP also conducted a comprehensive analysis of legal, economic and functional implications of Tajikistan's joining the UN CRPD which resulted in Government's acceptance of UPR recommendation to join the UN CRPD. UNDP also supported development and piloting of Implementation Mechanisms for the Law on prevention of violence in the family.

Budget: In 2016, UNDP Tajikistan mobilised over USD24,5 min from different donors, including the Government of Switzerland (22% vs total mobilized resources), Japan (47%), UNDP-Russia Trust Fund for Development (6%), GEF (22%) and US DOS (2%). The funds were allocated for sustainable development, disaster risk management, climate change as well as rule of law and access to justice areas.

2 Updated April 2017

The total annual budget of UNDP Tajikistan in 2016 amounted to $31 ,5mln out of which $27mln was successfully delivered (86%).

Employees: UNDP Tajikistan has 215 employees, including 38 core and 177 project staff. The project staff is based in Dushanbe (129) and also in 5 Area Offices (48) located in Sughd (Khujand and Ayni), Khatlon (Kulyab and Shaartuz) and in Rasht valley (Gharm). I

2.3 Brief description of applicant's routines for procurement, anti-corruption work and internal control UNDP has set of guidelines and mandatory procedures combating fraud and corruption, that regulates procurement procedures, project/programme managment, audit and internal control etc. Please refer to the following link for UNDP's provisions on the subject matter: https://popp.undp.org/SitePages/POPPRoot.aspx I

2.4 Information about the auditor !All UNDP programmes and projects are subject to audit in accordance with the corporate rules and regulations. Every year UNDP engages different external companies to conduct an audit of its projects implemented by national entities and NGOs. The projects, directly implemented by UNDP, are generally covered, on a sample basis, by the periodic internal audits conducted by the UNDP Office of Audit and Investigations (OAI). Since 2011 , UNDP Tajikistan arranged and facilitated audit of 38 nationally implemented projects with the total audited amount of more than $29mln and audit of 4 directly implemented projects for around $12mln.

Since 2015 no high-risk observations were raised by the auditors selected following the results of open tender process. The audits were conducted by the local companies, namely: RSM Tajikistan and Crowe Horwath Tajikistan. In 2016 UNDP Tajikistan has undergone through the internal OAI audit with an overall satisfactory rating. UNDP audit reports of directly implemented projects are publicly disclosed on the UNDP website (http://audit-public-disclosure.undp.org/)

For more information please see: http://www.undp.org/contentlundp/en/home/operations/accountability/audit.html

2.5 Has the applicant previously received support from the Ministry, a mission abroad, Norad or FK Norway? IDjv es 1q No 2.6 If yes, give details I A Grant from the MFA of Norway for «Conflict prevention and mitigation in the Ferghana Valley", a 24 month project, was implemented in the Sughd region of Tajikistan to support the initiative of the Government of Tajikistan to undertake conflict prevention and mitigation in the Ferghana Valley by resettling the population from the overpopulated Chorkuh and Surkh jamoats to Shurab town of Isfara district, and provide access to basic living facilities and income generating opportunities. Funding was provided by the Government of Norway and UNDP. According to the cost sharing agreement the amount provided by the Government of Norway was 2,928,000 NOK. UNDP contributed$ 100,000. The CSA was signed on 27.11 .2009 by MFA of Norway and UNDP in Tajikistan. In 2013 UNDP Tajikistan received contribution from the Government of Norway through UNDP's Bureau of Crisis Prevention and Recovery to support Mine Action Programme. The amount of contribution totalled $107,000 which was used to co-fund the following activities:

a) Review National Standards and development of a new Land Release National Standard in line with the international mine action standards;

3 Updated Apri12017

b) Development of a dedicated training package and mentoring on information management to ensure efficiency of land release; c) Exchange visits with Azerbaijan and the neighbouring counterparts from Afghanistan with the aim to share experiences and enable senior government officials to learn about transitioning the mine action programme to full national ownership. d) Support Tajik participation in two Persian Outreach workshops, the first in Iran (during the second half of2013), and then in Afghanistan (in early 2014). NB: The Tajikistan Mine Action Programme helped organize the first Persian Outreach Programme with Iran and Afghan participation in Feb 2013.

3. Bank details 3. 1 Name and address of the bank • DNB Bank ASA

Stranden 21 , Aker Brygge, 0021 Oslo, Norway

3.2 Name of the account holder UNDP Contributions (NOK) Account

3.3 Account number/IBAN number 3.4 Swift code 3.5 Currency of the account 70010243287 DNBANOKK NOK

4, Partl'ler(s) 4 .1 Name(s) of partner{s) (and abbreviation(s)) N/a - subject to approval of the funding application, UNDP will implement the activities in cooperation with the Ministry of Economic Development and Trade of the Republic of Tajikistan, State Committee on Investment and State Property Management of the Republic Tajikistan, other governmental partners, Microcredit organization, local governments in selected areas and CSOs

4.2 Postal address 4.3 Country

4.4 Telephone no. 4.5 Email address 4.6Website

4.7 Type of organisation (enter a cross in one box per line)

d. GovernmentaVpublic D Non-governmental, specify: D Multilateral

0 No!Wegian, erg. no.: D Non-Norwegian

4.8 Brief description of applicant's experience with this partner n/a

duration (mm.yyyy-mm.yyyy) 01. 2018- 12. 2019 5.3 Sector/field 4 Updated April2017

I DAC5CODE -151 ; CRS CODE 15110 (Public sector policy and administrative management}, 15112 (Decentralisation and support to subnational government}, DAC5CODE -240; CRS CODE 24040 {Informal/semi-formal financial intermediaries. Micro credit, savings and credit co-operatives etc.), DAC5CODE -250; CRS CODE 25010 (Business support services and institutions), 32130 (Small and medium-sized enterprises (SME) development) ' 5.4 Is the application for additional support for a projectfprogramme that is already receiving or has already received support? 181 No p Yes, agreement no.: '

5.5 If yes, give a brief description of the results achieved so far and status for the project that has previously received support I

6. Applicant's and partner's/partners' competence and capacity to carry out the project/programme 6.1 The applicant's and partner's/partners' experience with the thematic and geographical area of the project/programme and other relevant experience I UNDP has extensive experience of cooperation with the Ministry of Economic Development and Trade, State Committee on Investment and State Property Management and local governments and community-based organizations in the proposed geographic areas. Thematically, UNDP is engaged in the ongoing SDG localization process and economic reforms of the Government of Tajikistan and is the main partner of the Government in supporting the localization of SDGs. Geographically, UNDP, through its Area Offices and projects, has covered all districts of the country. The proposed target areas are also covered by UNDP through the economic development activities and policy dialogue at sub national level. UNDP will be fully responsible for project implementation and management. Depending on the purpose, as well as partner's capacities and technical skills, UNDP will provide to the partner hard and soft assistance, financial support and/or technical guidance for implementation of the relevant activities. The implementing partners will have responsibilities which will be duly stipulated in the ToRs and Grant agreements. ' 6.2 Distribution of roles between the applicant and the partner(s) I UNDP will be the implementing agency for the project activities. UNDP will closely cooperate with the Ministry of Economic Development and Trade of the Republic of Tajikistan and local authorities and CBOs to support national ownership of results, capacity build ina and knowledoe transfer 7. Description of the project/programme and anticipated results 7.1 The project/programme's overall objective and target group (up to 500 characters in English, for statistical purposes) I Project title: Innovative solutions for nationalizing and localizing SDGs and economic empowerment of women, youth and PWD

The project goal: Development stakeholders at national and local levels, including governmental institutions, community-based organizations and private sector, are able to effectively plan, monitor and implement sustainable and inclusive development strategies in the context of Agenda 2030 to promote sustainable and inclusive local development and to ensure economic engagement of the most vulnerable population.

The project reinforces and complements the past and ongoing projects of the UNDP CP program in the spheres of strategic development planning and monitoring, mainstreaming of SDGs and human development, localizing good governance reforms, and improving economic opportunities for the most vu lnerable population.

The project targets the needs of young people (18-35 years of age) and women living in rural areas as well as people with disabilities, who are facing difficulties with employment and self-employment and cannot utilize their opprotunities for better !livelihoods due to limited knowledge, skills and weak support provided by public service institutions. 7.2 Description of the project/programme

1 Relevance to Norwegian priorities: Norway's foreign and development policy is designed to promote economic development, democratisation, implementation of human rights, good governance and measures that can lift people out of poverty for good. The proposed project is in line with the goals of the Norway's policy for development cooperation in Eurasia, includino Central Asia, as approved by the 5 Updated April2017

Starting (Norwegian Parliament), outlines with the following priorities: (i) contribute to security and stability in the region; (ii) promote democratic development of the society and respect for human rights; (iii) strengthen rule of law and good governance; and (iv) contribute to sustainable development.

The present project is in line with priority goals, within approved thematic areas relevant for Central Asia as follows: Public sector policy and administrative management; Strengthen economic growth and contribute to increased trade; Decentralisation and support to subnational government.

Development priorities of Tajikistan: In 2016, the Government of Tajikistan adopted the National Development Strategy for the period from 2016 to 2030 (NDS-2030) and the Mid-term Development Programme for the period 2016-2020 (MtDP- 2020). The NDS-2030 is emphasizing the Government of Tajikistan's commitments to pursue Agenda 2030, and is anchored on four strategic goals: ~ ensuring energy security; ~ development of the country's communication potential and turn it into a transit country; ~ ensuring food security and access to good quality nutrition; and ~ expanding productive employment. In support of these, the following NDS-2030 priority areas were identified: i) improving efficiency of human, natural and physical capital; ii) enhancing diversification and competitiveness of national economy; iii) strengthening national institutions; iv) increasing and strengthening the middle class; and v) equitable regional development. The NDS-2030 provides direct linkages to the global Agenda 2030 and the Sustainable Development Goals, with clear articulation of links specified in various sections of both the NDS-2030 and the MtDP-2020. Strategic priorities of UNDP: The proposed vision of the project is in line with UN and UNDP strategic priorities outlined in the UNDAF and Country Program Document for period of 2016-2020 in terms of (a) 2 improvement of governance; and (b) sustainable and equitable economic growth .

Development challenges and proposed activities:

According to the rapid integrated assessment of key strategies done by UN in 2016, the level of SDG alignment with national priorities covers 78% of 119 SDG targets. Nationalization of the Agenda 2030 involves aligning sectoral and local development plans and priorities with the SDG targets and defining actions to meet the SDGs. The country faces the challenge of coordinating the implementation and monitoring both, its National Development Strategy and the SDG agenda, as existing monitoring frameworks are outdated, ineffective and unconnected, whereas the existing institutional framework for coordination of NDS/SDGs implementation needs to be adjusted and strengthened3. The SDG nationalization and NOS implementation process requires broad participation of all stakeholders. Transparent and responsible management and increased accountability of the authorities is required to address issues/achieve SDGs/N DS targets. At present participation rate of different stakeholders is unequal, with limited voice of civil society, private sector, and community groups in SDGs/NDS planning, implementation and monitoring. With support of UN the Government of RT presented its voluntary national review on SDG progress at the ECOSOC HLPF in July 2017 and it is currently in the process of elaborating of its first National Report on SDGs. This Report is planned to be presented in mid-2018 including to the National Development Council that currently represents the highest NDS/SDG coordination body. Tajikistan achieved impressive success with reducing poverty level from 81% in 1999 to approximately 31% in 2016. However, both, moneta and multidimensional ove remains wides read in rural

2 United Nations Development Assistance Framework 2016-2020, www.untLorg and UNDP Country Program Document 2016-2020, www.tLundp.org 3 MAPS Report, December 2016 6 Updated April 2017 areas, especially in Khatlon region, Rasht Valley and Garno Badakshan Autonomous Oblast (GBAO), 4 while inequality is growing . Women and girls from rural areas and the youth population continue to be disadvantaged by insufficient domestic job opportunities and limited access to public services. Limited access to electricity, sanitation, safe drinking water further exacerbate the vulnerability to multidimensional poverty in rural areas. Weak governance, transparency and limited citizens participation reduce accountability and pressure on institutions to deliver quality services to all citizens. Local governments have limited knowledge to apply innovative solutions, including PPPs and other partnership models for sustainable management of local resources and provision of basic services. The current structure of growth and exports in Tajikistan has contributed to poverty reduction over the last decade, but falls short of being fully economically, socially or environmentally sustainable. The export baskets are dominated by unprocessed minerals with weak links to decent job creation Qobless growth). This has led to a dependence on labour migration and remittances, with (for example) circa one million migrants from Tajikistan working abroad. Remittances constituted up to 40% of GDP in Tajikistan 5 in different years , which leaved the economy and households vulnerable to external economic shocks. This situation is aggravated by demographic pressures; 36% of the Tajik population is aged 15-28 years, and 40,000 young people are joining the labour force each year. However, the labour participation rates among young people is very low, especially for young women. There is a growing share of ''NEETs" (young people not in education or training). In 2013, 41% of 15-24 years were in the NEET category in Tajikistan, with a greater prevalence among young women (54% of women compared to 27% of males).6 Exclusion of women is particularly vivid, only 27% of women is taking part in labor force and since 20037 disparity between men and women in labor is on the increase. Promotion of trade and entrepreneurship, with more active engagement of the most vulnerable groups of population, provides opportunities to alleviate poverty, maintain development gains, reduce livelihoods risks in rural areas and create new jobs for growing laborforce. One of the key challenges for Tajikistan is to ensure that the potential of trade is harnessed in ways which contribute to more inclusive and sustainable development pathways, especially for rural areas. Proposed actions: UNDP through its flagship Communities Program and other projects has defined a set of strategies to promote equitable and sustainable economic growth by promoting decent and productive employment, improving access to specialised knowledge and innovation and creating a more favourable business environment especially for entrepreneurs and farmers, as outlined in the Outcome 2 of the Country Program Documents. The proposed project is aimed to reinforce and complement the CP program as it ./ will build on the results, lessons and best practices of the past and ongoing UNDP projects; ./ will timely and directly support government's efforts and enhance their capacities and knowledge to mainstream sustainable and innovative solutions for localizing SDGs; ./ builds on the substantial work that was done so far in relation to developing the M&E framework for NOS/SDGs; ./ will promote greater engagement of non-governmental constituencies in the process of SDG localization; ./ will be testing innovative approaches for local development, youth and women economic empowerment and public-private collaboration. The Project comprises the following Components/Outputs: 1. Support to SDG nationalization and localization in Tajikistan 2. Support to trade promotion and development of women and youth-led innovative solutions for small and medium business develo ment

4 http:/ jwww.dataforall.org/dashboard/ophi/index.php

5 World Bank (2016), Migration and Remittances Factbook 2016 (2014 data). 6 World Bank (2016), Tajikistan Jobs Diagnostics 7 1bid 8 UNDP CPD 2016-2020 7 Updated April 2017

3. Promotion of public-private partnership for local development, including PPP models for management of natural resources 4. Engagement of youth, people with disabilities and women into the entrepreneurship

Output 1: 'Support to SDG nationalization and localization in Tajikistan' has a particular focus on continued SDG nationalization and localization in close partnership with the Government of Tajikistan, civil society and population groups and other development partners.

For more than a decade UNDP Tajikistan played a critical role to strengthen the capacities of the Government of Tajikistan for strategic development planning, mainstreaming of MDGs and SDGs and human development into national and local strategies, aid coordination and localizing good governance reforms, national data collection with reasonable level of technical assistance provided for alignment of global, national and local development strategies. There is a need for logical continuity of UNDP's methodological, organizational, and institutional support and knowledge building for key Government actors to ensure further improvement of institutional policies, strengthened coordination and monitoring of SOG localization process and elaborate comprehensive understanding of financial tools and resources required to achieve ambitious development agenda by 2030.

The proposed output includes the following activities: • To enhance capacity of Ministry of Finance and Ministry of Economic Development and Trade to development finance assessment and review the financial landscape for sustainable development goals. • Policy support for nationalizing of SDGs in national and sub-national country development policies and plans • Strengthening M&E system and coordination mechanisms for SDGs/NOS implementation management • SOG analytics, policy research and communication: supporting the Government of Tajikistan to conduct policy research, analytical studies and alternative reports on SDGs/NDS progress to complement the evidence base for SDG and NDS mainstreaming, acceleration, evaluation and reporting. The proposed activities will generate analysis and research that will allow better understanding of the financial landscape, facilitate informed discussions and reaching consensus among various constituencies about integrated approach to coordination, implementation and monitoring of NOS and SDGs, and guide efforts on strenghening the capacities of key governmental stakeholders in planning, reporting and coordination of NDS/SDG Agenda. SOGs and its underlying principle of «Leave no one behind» will be gradually adapted to sub-national and sectoral development strategies and programmes and nationalized/localized through introduction and harmonization of relevant targets and indicators that are measurable, adequate, cost-efficient, and directly reflect medium-term results. The project will support ongoing activities of UNDP on reporting on SDG impementation and M&E, linking of planning and budgeting processes, prioritisation of development interventions, identification of accelerators, etc. Involvement of the civil society, private sector and other constituencies in NOS monitoring and use of independent or/and alternative data on SOGs/NDS progress including establishing an open platform will be taken into consideration. The project will provide support the Government of Tajikistan to conduct policy research, analytical studies and alternative reports on SDGs/NDS progress to complement the evidence base for SDG nationalization, localization, acceleration, evaluation and reporting, as well as develop the effective resource mobilization mechanisms for SDGs/NDS implementation. Output 2 'Support to trade promotion and development of women and youth-led innovative solutions for small and medium business development' is aimed at development of more conducive business environment and new jobs, especially for women and youth in rural areas.

8 Updated April 2017

This output intends to complement and leverage the activities implemented within the UNDP Aid for Trade project (AFT). In 2016-2017 the AFT project did a micronarrative research of barriers to female entrepreneurship and held a series of national consultations to define the key challenges in sustainable and inclusive production and trade. The key barriers that SMEs face include lack of affordable financial services, limited access to private investments, lack of business management skills, unequal access to information and markets for men and women-led SMEs, limited domestic market and insufficient capacities of SMEs to export their products. The project's findings shaped the necessity of better targeting of SMEs, in particular women and youth-led entreprises, to promote inclusive and environmentally sustainable solutions for trade and business development and also for better integation of gender considerations in the next phase of AFT project. The output 3 of this proposal is aimed to leverage the AfT project results through the following set of activities:

• Improving access of microenterprises, especially female-lead companies, to affordable financial resources by increasing the portfolio of the Business Challenge Funds (innovative micro-finance solution established by UNDP and Government) in Khatlon and DRS regions of Tajikistan; • Supporting the micro- and small agro-producers/processors in improving business skills and linkages with the markets; • Organizing innovation lab for green niche products of Tajikistan to elaborate packaged solution for development of green products value chains and to provide consultative service for producers of sustainable local products.

UNDP will focus on employment and income generation using sustainable production methods. Jobs and income generated should benefit rural populations that have limited access to income or employment opportunities. The project will therefore work with: ../ Small companies, producers, processors, cooperatives and associations . ../ Agri-SMEs dealing with production and exporting their goods to foreign markets; ../ Special focus will be given to women entrepreneurs and youth.

Output 3 'Promotion of public~private partnership for local development, including PPP models for management of natural resources' builds on the earlier UNDP efforts within the framework of the Livelihood Improvement of Rural Population in Nine Districts of Tajikistan (LIRP) project to support capacities of the Government to cooperate with and involve private sector into the public service delivery process through PPP models. UNDP closely worked with PPP Centre by conducting trainings, development instructions, guides, trainings, learning relevant experience of EU countries. It also supported the Government with elaboration of Public-Private Partnership Development Programme for 2018-2020. Under the third output of the project, this activity will include: • Strengthening institutional capacities of Public-Private Partnership Centre under the State Investment Committee through conducting mentorship and trainings; • Capacity building of main stakeholders on PPP using the mechanisms of South-South and triangular cooperation (including possibly learning from experience of Norway and CIS countries). Explore opportunities of building knowledge network among PPP institutions in both countries • Conducting workshops and round tables to promote PPP mechanism and discuss actual problems at the national and regional level; • Document best practices and cases on PPP and disseminate them among interested parties.

Output 4 'Engagement of youth, people with disabilities and women into the entrepreneurship' has a specific focus on promoting of economic empowerment of young people, women and girls in rural areas and people with disabilities. The output will reinforce UNDP projects and is shaped by the lessons and achievements of earlier interventions under the LIRP, LITACA and Cross-border cooperation projects. UNDP considers young people as agents of development change and critical stakeholders in its programs. Particularly, UNDP jointly with other partners, supports learning from relevant experiences of other countries throu h sscrrrC9 schemes and use of different innovative latforms for outh

9 South-South and triangular cooperation 9 Updated April 2017

entrepreneurship such as "Start-Up Choihona". This platform creates an enabling environment for young entrepreneur-minded people, and helps to promote the start-up ideas and mentality in Tajikistan. The promising start-up companies participating in the platform come from various industries, such as textile, handicrafts, ceramics, recycled plastic, ICT and energy etc. In addition, this platform also promotes social entrepreneurship, the start-ups ventures aimed at benefitting the society at large. Thus, UNDP Tajikistan is actively working on improving ecosystem for youth engagement in SDG implementation in the country.

In July 2017, UNDP launched project «Promotion of social and economic opportunities for women and youth in Zerafshan Valley of Tajikistan». Implementation of activities presented below will help to reinforce above mentioned project's results by promoting entrepreneurship skills among youth, people with disabilities and women: • Conducting start-up trainings, open lectures, hackathons, master classes offamous entrepreneurs in the regions of Tajikistan aimed to promote doing business opportunities and knowledge; • Promotion of small grants for implementation of innovative and social projects that benefit youth and the most vulnerable population; • Facilitate learning from the experience of other countries related to business incubation and start ups promotion • Organization of national level events to advocate and debate on youth entrepreneurship; • Conducting information campaigns for promoting entrepreneurship among youth and women including those dedicated to breaking stereotypes on typical roles and professions; • Supporting Start Up "Choihona" and alike initiative (incubator for youth-led start-ups) and youth engagement in social entrepreneurship

7.3 Comments on the attached results framework · For implementation of its Country Program 2016-2020 UNDP has established internal monitoring and evaluation mechanism, as per its rules and regulations, which serve as a basis for monitoring of projects' results against set goals and targets. Each outcome and output of the Project has baseline data and targets identified based on UNDP past experience in the field. Indicators are both quantitative and qualitative and developed based on the proposed project interventions.

The project contributes to the indicators and targets of the UNDP Country Program Document at impact, outcome and output level, in particular:

CPO Outcome 2. People in Tajikistan benefit from equitable and sustainable econom;c growth through decent and productive employment, stable energy supply, improved access to specialised knowledge and innovation and more favourable business environment especially for entrepreneurs and farmers

and relevant outputs under this CPO Outcome, including:

CPO Output 2.1: National and sub-national systems and institutions enabled to achieve structural transformation of productive capacities that are sustainable and employment - and livelihoods intensive

Indicators: number of new full-time jobs and number of people with improved livelihoods, by sex, age and disability status

CPO Output 2.4: National data collection, measurement and analytical systems ;n place to plan, adopt and implement equitable, sustainable and resilient national development strategies and monitor progress on post-2015 sustainable development goals

Indicators: Effective mechanisms in place to collect and disseminate quality and disaggregated data and gender statistics

The proposed project is supposed to contribute to targets planned for the above-mentioned CPO outcome and out uts. 10 Updated April2017

The project's theory of change is based on strategic vision of the UNDP Country programme and supported by the independent evaluations of Communities program and its projects10 conducted between 2014 and 2017:

Jt_the development stakeholders at all levels, including governmental institutions, community-based organizations, and private sector, have better knowledge and skills to effectively plan, monitor and implement sustainable and inclusive development strategies in the context of Agenda 2030, then they will be able to more effectively address existing development challenges, reinforce conducive business environment and contribute to sustainable and inclusive economic growth.

Jt representatives of the economically vulnerable and socially excluded population groups, particularly women, youth and people with disabilities, have better knowledge and skills for entrepreneurship and self employment, then they will have wider opportunities for active participation at the local development market and thus support the livelihoods of their families.

The projects contribution to CPO outcome, outputs and the above ToC will be measured by the following set of output-level indicators:

1. Support to SDG nationalization and localization in Tajikistan Indicators: Availability of comprehensive assessment of the development financing landscape in Tajikistan to support SDG mainstreaming policies Number of sub-national country development policies and plans aligned with SDGs Number of analytical tools developed and applied for SDGs/NDS implementation and M&E 2. Support to trade promotion and development of women and youth~led innovative solutions for small and medium business development Indicators: Number of microfinance products developed to support sustainable and green business ideas Number of loans provided; #of women and youth received affordable loans Number of SMEs receiving business consultancies (incl. # of women and youth lead SMEs) Number of capacity building events on international practices and certification

3. Promotion of public-private partnership for local development, including PPP models for management of natural resources Indicators: Number of people reached by mentorship and trainings Number of capacity building events, including study tours on PPP implementation Number of new projects approved by PPP Centre Number of awareness raising campaigns conducted among representatives of private sector, civil society and other interesting stakeholders at local/eve/ Number of documented best practices and cases on PPP disseminated among interested parties

4. Engagement of youth, people with disabilities and women into the entrepreneurship Indicators:

10 UNDP Outcome Evaluation: Poverty Reduction and MDG Attainment, July 2014; Mid-term and final evaluation of UNDP project "Livelihood Improvement of Population living on Tajik~Afghan Cross Border areas (UTACA)", November 2017; Final Evaluation of Livelihood Improvement of Population living in Rural areas of Tajikistan (LIRP)", November 2017.

11 Updated April 2017

Number of innovative projects elaborated during the Hackathons which received support of investors Number of people attending open lectures, master classes by sex. age and disability status Number of youth and women that presented business ideas in the Start Up "Choihona" events Number of new jobs created as a result of conducted activities Number of cases of improved cooperation among business incubators and startups of Tajikistan with foreign business incubators

Re$ponslbility [Risk that could ,. Direct and •UNDP and affect goat extensive MEDT . achievement: engagement of key Weak knowledge agency on SDG and technical implementation - capacity of sectoral Ministry of Economic ministries and local Development and governments and Trade in the project local may limit the implementation scope and •· The project will effectiveness of enhance capacity of SDG localization} the local governments with software as well as skills to ensure continuity of initiated efforts ,. Continued engagement with GoT across multiple platforms, including Forums, Regional and National Policy

[Cross-cutting Low ·. Medium 31 issues: Negative envisages active December impact on human engagement of both 2019 rights] government and non-government constituencies, including representatives of marginalized and excluded groups in design and implementation of planned actions •• The Project will be using human rights based approach and promote it throughout the project implementation • The project will build on existing development strategies. National 12 Updated April 2017

Development Strategy, etc. [Cross~cutting Low Low Low ·• The Project has a ["UNDP/GoT 31 issues: Negative special focus on December impact on women's addressing gender 2019 rights and gender disparities in terms equality] of labor force participation and envisaged targeted interventions benefiting women and young girls • The project will be using existing dialogue platforms with the Government. including Taskforce on Women Eritrepreneruship under the State Investment Committee to promote gender and WEE issues at the high level ·• The Project will conduct awareness raising campaigns to advocate women and youth economic empowerment and entrepreneurship Low Low Low :. All projects of UNOP • 30June UNDP undergo 2018 environmental screening. If required, the project will apply environment friendly measures [Cross-cutting . The project has a issues: special focus to Negative impact on introduce innovative climate/environment] solutions for mote sustainable production and trade, including development of 'green' niche .products. Low ' Medium • Medium •· While working with UNDP . 31 stakeholders, UNDP December wi!! apply its internal 2019 rules and regulations on anti-corruption {Cross-cutting ·• The present project issues: is focused on Negative impact on disclosure of anti~orruptionJ information which can add to transparency hence prevent/deter corruption

13 Updated April 2017

" Transparency and accountability principles will be promoted among stakeholders during project activities as inalienable part of SDG localization

8.2. Describe the sustainability, local ownership and·ex it strategy of the project/programme :The project's approach towards sustainability is focused on ensuring national ownership, involving stakeholders at all levels through enhanced dialogues. The sustainability of the project will depend on stability both in the sense of security and political, as well as continued commitment of all stakeholders. The project's objectives are based on national priorities and a series of national legislative and strategic documents. Such approach ensures inherent ownership over the project's interventions and targets the core needs of the authorities. UNDP will capture lessons and best practices of this project and ensure due dissemination among the relevant partners and stakeholders to ensure effective transfer of knowledge and experience. UNDP will maintain a policy dialogue with the Government and development partners, including IF!s to advocate and promote innovative development solutions with proven feasibility for replication and scaling up in the country and for potential exchange through SSC/TrC mechanism. • ::~r :~,~J, ~I#t~~~~,l#i1$ : ~.~~~ : .:· .. >. .• • :·· i: .::'::<:,. \;:o•.. ; •..•..••.. • .. >.<·.. ·••·· ·· ··· ·· .. ··.·.· ...... >;.·....•. ·.·.. •.·•·.·•·.·••··..... •.•.· ·.•· ....• •.··•.····.· 9.1. Comments to the attached budget • Project Budget: Total budget for the Project is USO 1,050,000. The ratio of administrative and management costs (including 8% of standard General Management Service cost of UNDP) versus direct programme activities is 18% to 82%. This ratio is much lower than for other UNDP Projects, as the project complements ongoing portfolio of UNDP Communities programme will use and cost-share the existing technical and human resources already engaged/used in existing Projects. For details please refer to attached Budget table (Attachment 2).

Other projects within the UNDP Communities program portfolio for 2017-2019: "Promotion of social and economic opportunities for women and youth in Zerafshan Valley of Tajikistan". The project funded by Russian Federation Trust Fund for Development and UNDP with total budget of $1 ,699,680. Promotion of the Agenda 2030 and operationalization of the SDGs at the national and sub-national levels in Tajikistan. The total amount of the Project is $147,521 with contribution of UNDP CO cost-sharing $64,822 and IRH Catalytic Scaling up Facility (funded by Turkey) $82,700. Duration of the Project is October 2016 - 31 December 2017. Wider Europe: Aid for Trade for Central Asia (Phase Ill), Tajikistan: The Project is financed by the Government of Finland at the amount of US$273,000 million, with the duration of Jan- June 2017. Wider Europe: Aid for Trade In Central Asia (Phase IV), Tajikistan: The Project is financed by the Government of Finland at the amount of € 902,070 for the period 2018-2019; Livelihood Improvement of Rural Population in Nine Districts of Tajikistan. The Project is financed by the Government of Russian Federation at the amount of US$ 2,163,402.4 for 2017. LITACA Phase II. The Project is financed by the Government of Japan through JICA at the amount US$ 2.6 million for the period 2018-2019. Health Sector Strengthening. The Project is financed by the Gavi alliance at the amount US$ 1.4 million with the duration of 2017 - 2019. :. ·••·•·•···.·.. ·.·· ••··.··· ·· , 101 ~~~.1 Anydditii?i,>~itJ additional.· rnf~ffJ\~~ information of relevance for the application

14 Updated April2017

Number _1 Results framework (mandatory) p Number _2_ Budget (mandatory)

~ NumberU Implementation/activity plan

0 Number 1_ 1Theory of change

'q Number L--1 Documentation of bank details

~oj Number 13_ List and brief descripiton of projects implemented under CP in 2017- 2019______~

[ol NumberL ______J

DATE AND SIGNATURE I confirm that I am authorised to enter into legally binding agreements on behalf of the applicant, and-1- oonfirm that to the best of my judgement the information in this application is correct. / ...... ~

UNDP, Dushanbe, Tajikistan.1l .V~vQw~\..e., zc If Place and date Name, title and signature