Decentralization Offering Better Results and Efficiency (DOBRE)

Annual Progress Performance Report

Decentralization Offering Better Results and Efficiency (DOBRE) FY 2018 PROGRESS REPORT

01 October 2017 – 30 September 2018

Award No: AID-121-A-16-00007

Prepared for USAID/Ukraine C/O American Embassy 4 Igor Sikorsky St., Kyiv, Ukraine 04112

Prepared by: Barry Reed, Chief of Party Global Communities 8601 Georgia Avenue Suite 300 Silver Spring, MD 20910, USA

Table of Contents

ACRONYMS AND ABBREVIATIONS 2

CONTEXT UPDATE 4 EXECUTIVE SUMMARY 5

KEY NARRATIVE ACHIEVEMENT 11 PROGRESS AGAINST TARGETS 46

PERFORMANCE MONITORING 70

LESSONS LEARNED 72 ENVIRONMENTAL MONITORING 72

PROGRESS ON LINKS TO OTHER ACTIVITIES 72 PROGRESS ON LINKS TO HOST GOVERNMENT 74

PROGRESS ON INCLUSIVE DEVELOPMENT 74 FINANCIAL INFORMATION (Required for Contracts Only) 75

SUB-AWARD DETAILS 75

ACTIVITY ADMINISTRATION 76

ATTACHMENTS 78

1 I. ACRONYMS AND ABBREVIATIONS AOR Agreement Officer’s Representative API Access to public information ARC© Appreciative Review of Capacity [Global Communities] AUC Association of Ukrainian Cities CBO Community-based organization CC Consolidated community CEP Community Engagement Program CEPPS Consortium for Elections and Political Processes COP Chief of Party CSO Civil society organization DESPRO Decentralization Support in Ukraine Project DIALOGUE Development Initiative for Advocating Local Governance in Ukraine DOBRE Decentralization Offering Better Results and Efficiency ER Expected Result EU European Union FRDL Foundation in Support of Local Democracy GIS Geographic information system GOU Government of Ukraine GRB Gender Responsive Budgeting [Project] ICT Information and communications technology IDP Internally-displaced person IFES International Foundation for Election Systems ISES Institute for Social and Economic Studies LED Local economic development LEV Local Economic Governance [Project] LG Local government LGBTI Lesbian, gay, bisexual, transgender and intersex

2 LGSO Local government support organization LOP Life of the program M&E Monitoring and evaluation MOU Memorandum of understanding MRD Ministry of Regional Development MSAP/UEK Malopolska School of Public Administration at the Krakow University of Economics NDI National Democratic Institute NGO Non-governmental organization OSR Own-source revenue OTI Office of Transition Initiatives [USAID] PACE Participatory Action for Community Enhancement [GC methodology] PAGE Participatory Approach to Governance Excellence PB Participatory budgeting PMCI Participatory Municipal Capacity Index RCSO Regional civil society organization SDIP Service Delivery Improvement Planning SWM Solid waste management TA Technical assistance ToT Training of trainers UCMC Ukraine Crisis Media Center U-LEAD Ukraine Local Empowerment, Accountability and Development Programme USAID United States Agency for International Development USG United States Government VASSR All-Ukrainian Association of Villages and Rural Settlements WLA Women’s Leadership Academy YLC Youth Local Council

3 II. CONTEXT UPDATE Decentralization reform represents an opportunity to improve how Ukrainian local governments deliver services and respond to citizen priorities and concerns. Kyiv has long dominated the Ukrainian political landscape, with local power distributed among small villages that were largely unable to advocate for their own interests at the regional and national levels. Currently, the decentralization reform continues as the only major reform effort in Ukraine maintaining momentum. In a recent monitoring of the process of decentralization, MRD reported 831 amalgamated communities, established by mid-September 2018. Actually, 126 of those still await for the resolution of Central Election Committee on their first elections. The CEC recently became an issue as they blocked the electoral process in CCs. To unblock this process, the CEC must cancel their previous decision concerning the necessity of an explanation from the Committee of the Verkhovna Rada of Ukraine on questions of legal policy provision and justice concerning the conduct of all-Ukrainian and local referendums in Ukraine. Alternatively, the Verkhovna Rada might consider changing the CEC and forcing a resolution. Hopefully, they will resolve this issue in early October 2018 and proceed with local elections before the end of 2018. MRD considers this the last year of voluntary amalgamation and made a big push to add CCs. The GoU approved prospective plans envision that 1,206 CCs covering 76% of the territory of Ukraine. Currently, CCs cover 35.8% of the UA territory with seven million residents living there, comprising 19.8% of total population of Ukraine. The major political parties in the Verkhovna Rada appear uninterested in making any significant legislative changes to the decentralization framework prior to the 2019 elections. No party appears interested in giving the current President any momentum on this issue. This means certain key issues will languish. For example, while discussion about the nature and role of Rayons increased in 2018, the VR made no movement to taking action about them. Earlier in 2018, MRD and others openly talked about moving from the voluntary to mandatory phase but this subsided toward the end of FY 2018. Many DOBRE CCs attempted to expand based on the law passed by the VR in 2017. However, Oblasts (and in some cases Rayons) refused to allow additional villages and settlements to join these existing CCs. DOBRE raised the issue in some Oblasts and with MRD but nothing improved. CCs like Mirivska, Sofiivska and Kamyanomostivska have waited a year and a half with no resolution. MRD and the GoU openly endorse larger CCs but unless they solve this issue, they will slow the decentralization process. The MRD issued statistics with a figure of 2565 Starostas across the country with 777 elected, or 30.3%. Own Source Revenues continued showing growth with projected UAH 231 bln until the end of 2018, increasing total share to 7.1% in their budgets. For the period of January – August 2018 communities already generated UAH 148.7 bln of own revenues.

4 In 2018 as compared to 2014 state support of community development and their infrastructure buildup has increased by 39 times. In addition, subvention for construction, reconstruction, repair and maintenance of local public roads amounting to UAH 11,5 bln is envisaged for 2018. Sectoral reforms continue to lag. The Rada approved the health reform (no longer decentralization) and this rolled out in January 2018. They created 87 hospital districts, with three oblasts still having no districts at all. On Education, most CCs continue to leave open very small schools. 4114 classes with less than 10 students still exist, 1632 out of those are located in the CCs. 677 hub schools have been created, with 279 are located in consolidated communities. The Government continues to hope basic economics will force CCs to consolidate schools. They simply cannot afford keeping such small schools open but CCs still resist. Although late in the year, DOBRE noticed some Mayors now openly talking about the high cost of keeping such small schools open.

III. EXECUTIVE SUMMARY Over FY 2018 DOBRE moved forward significantly with the work plan and saw partner communities, make demonstrable progress toward achieving stated objectives. The A section below outlines key performance achievements over the last year.

A. Key Narrative Achievements DOBRE hosted a major two-day Strategic Development and Investment Forum in late October 2017. The first day explored strategic planning and implementation of strategies. It included substantive discussions about relevant issues for about 250 participants from DOBRE CCs of both cohorts and other key stakeholders. The Forum’s second day, the “DOBRE Investment Hub”, looked at CCs and investments and investors. It included substantive discussions among CCs and investors on all aspects of the investing process, including critical analysis of potential investments, how to communicate investment potentials and a look at specific sectors. This included about 250 participants and the opening featured Deputy Prime Minister Zubko and the USAID Mission Director. DOBRE created a separate web page for the event, gathering all the materials of the Hub, available via the following link. Over the period of January 28th - March 11 2018 a new social, informational and entertainment TV series "Hromada for a Million" broadcast nationwide on 1+1 TV Channel. The show gathered 15.6 million viewers, including nearly 9.6 million unique viewers (according to statistics provided by 1+1 TV Channel). Currently, you can find all episodes of the TV show on YouTube. You can access the shows and viewing statistics in Ukraine and English here. DOBRE program empowers youth in good governance and integrity through model community simulation. DOBRE convened 60 youth activists from partner communities for the five-day youth leadership school DOBRE-LID (Leadership, Ideas, Democracy) in partnership with USAID’s ENGAGE and SACCI Programs, and the Ministry of Youth and Sports. During the

5 training sessions youth leaders gained hands-on experience in good governance and integrity approach towards it, did first steps in governance-related career paths through DOBRE-designed simulation of the model CC council work. Youth learned why and how they can engage in implementing or improving governance practices in their communities, generate and design ideas leading to projects for community development, providing them with a chance to become genuine local leaders who are ready to take on managerial positions in their communities. Participants developed a Program for Solid Waste Management, an action plan to improve service sanitary standards for the local market, regulations on the conflict of interests, and an anti- corruption program for CC, as well as a youth entrepreneurship program. At the end of day five, youth leaders pitched their ideas to a jury for the DOBRE Program to support. The jury selected the following projects: CC Deputy Incubator Program in Halytsynivska CC, School Scientific Lab in Kamyanomostivska CC, Community Art Space in Bilshivtsivska CC, Center of Social Innovations in Starobohorodchanska CC, Recreation Park for Local Festivals in Skala-Podilska CC, and Youth Makerspace in Pokrovska. A youth media team covered the event and worked alongside the participants. They issued a press release and video about the school. For Cohort 1 communities, DOBRE has assisted in preparation of 25 Service Delivery Improvement Plans that were approved by local Councils. DOBRE has launched the implementation of the projects that came out of the SDIPS that include 11 projects focused on procuring trucks and vehicles used for municipal service provision, six projects focused on providing supplies for schools and public lighting setup, Eight projects focused on renovation and construction – from water supply chains development to renovation of houses of culture. Pechenizhyn CC project on SWM is fully completed. DOBRE held the Tourism Hub “Tourism Development for New Communities” in Kherson oblast. The Tourism Hub gathered approximately 300 delegates - representatives of 75 consolidated communities, tourism businesses, investment funds, international technical assistance projects, central, regional and local government representatives from all over Ukraine, and discussed tourism development opportunities as one of the strategic priorities for consolidated communities. DOBRE and partner UCMC also prepared, designed, printed and disseminated the brochure “Ukraine`s New Communities Tourism Guide”, which shares tourism objects in DOBRE-partnering CCs and their potential in a new and inspiring way. DOBRE program presented key findings of its Financial Management Assessment in partner communities, providing an overview of findings of the financial audit completed in 50 participating communities. More than 50 participants from international technical assistance projects, expert groups, regional and national media outlets attended. During the event, the participants discussed the problems that communities face in their financial management, cases of the most financially efficient communities, major issues and recommendations on strengthening financial discipline provided to communities, and presented next steps DOBRE will take to improve financial

6 management in communities and engage citizen in public spending oversight. USAID Mission Director along with MRD's Head of Local Governance Department attended the event and expressed the importance of the findings and possibility to scale the methodology out to Ukraine's communities. The event was live on YouTube, with press release published on UCMC website and photos available on Flickr. FMA key findings can be accessed here. DOBRE announced the selection process for the next 25 communities to join as program partners. On June 13 2018, the First Deputy Minister of MRD, DOBRE representatives and 2 heads of DOBRE partner communities informed about the eligibility and requirements for amalgamated communities to become a third cohort partner community. This time DOBRE accepted applications from communities exceeding 5000 population and introduced a two-stage selection approach where communities completed a practical task in addition to submitting an application form. The Deputy Minister stressed that current 50 DOBRE communities already serve as reform's implementation success examples and encouraged eligible communities to apply. Current DOBRE mayors from Novoukrainska and Tsarychanska promoted the program and shared their achievements. DOBRE live-streamed the event, released the contest announcement and initiated information sessions in target oblasts. By the end of September DOBRE long-listed 32 communities and did experiential visits to examine communities. Potential new CCs organized general meetings of residents to complete their final task in the selection process. Vysokopilska and Velykokopanivksa in Kherson Oblast ensured good community participation and chose reconstruction of public transport stops and installation of sun battery trees as their respective projects. In Ternopil oblast, Zborivska set a turnout record of 228 people at the meeting and chose to set up school classrooms with interactive whiteboards. Another two communities in Ternopil, Zolotnykivska and Khorostkivska, also organized their meetings well and decided to set up an IT-based system for community emergency services in Zolotnykivska, and a video- surveillance for administrative center of Khorostkivska. Khrestivska CC (Kherson Oblast) and Devladivska CC (Dnipropetrovsk Oblast) failed to show a high level of motivation and inclusive and transparent decision-making. Another nine CCs organized their meetings very well and managed to select their first projects. Security (setting up of video surveillance to protect CC assets), solid waste management (starting waste segregation), and public spaces are top three types of projects selected by communities. Finally, at the end of the month the selection committee discussed the results of the practical assignment completed by pre-selected 32 communities and recommended 25 communities for joining DOBRE program. They also identified an additional three communities to potentially replace underperforming CCs from cohorts 1 and 2. Based on the scores, DOBRE will officially announce winning CCs in early October 2018. Oblast and type breakdown of selected CCs is the following:

7 Village Settlement Town Oblast CC CC CC Total

Dnipropetrovsk final selection 1 1 0 2 Dnipropetrovsk replacement CC 1 0 0 1 Ivano-Frankivsk final selection 2 1 0 3 Ivano-Frankivsk replacement CC 0 0 1 1 Kirovograd final selection 1 3 1 5 Mykolayiv final selection 1 1 1 3

Ternopil final selection 1 1 4 6 Kharkiv final selection 0 2 0 2 Kherson final selection 4 0 0 4 Kherson replacement CC 1 0 0 1 12 9 7 28

DOBRE Program partner SocialBoost has developed web sites for 7 pilot CCs that are based on the DOSVIT platform. Sofiyvska CC https://sofotg.gov.ua/ has launched its web-site publicly. Social Boost will offer other CCs to join the initiative after all pilots will be public. They are continuing developng apps for the CCs use. DOBRE sponsored a Local Economic Development Study Tour to the USA to learn more about LED from small US communities. From September 12-25, 18 participants representing eight DOBRE partner communities of six oblasts and a Local Government Association, with US local support from ICMA, visited US East Coast and Midwest small communities to share successes of Ukraine decentralization and amalgamation reform and learn from their peers in US rural communities on best practice economic development tools and policies. In Washington, D.C., the participants spoke to and learned from Ukraine development assistance stakeholders during a National Endowment for Democracy roundtable, and meetings with staff teams of Senator Ron Johnson (Wisconsin), Senator Bob Menendez,(New Jersey) and Rep. Marcy Kaptur (Ohio). They also visited the Ukraine Ambassador and Economic Development team of the Ukrainian Embassy. While visiting Dubuque, IA, Galena, IL, Sykesville, MD, Havre de Grace, MD, and Bel Air, MD the participants met City Managers, Heads of LED Departments, LED NGOs and private entities and academia and learned how municipal government, business, education and citizen action groups cooperate to achieve local economic development in rural communities. The participants also became members of ICMA and attended the Annual ICMA Conference in

8 Baltimore, MD. Here they learned how to keep civil society engaged in local governance and how to recognize the importance and alternative ways of supporting local businesses and aspiring entrepreneurs in their community. Upon return, each of participating communities delivered a follow up presentation to community members, discuss their lessons learned, and revisited and improved existing community LED Action Plans. The participants will be able to design and lead the implementation of innovative projects that can stimulate their economy and improve the quality of life in their communities. DOBRE prepared and disseminated communities' success stories and tourism guide, developed jointly with UCMC and DOBRE. DOBRE highlighted the tour development via daily FB posts, 8 videos, and 3 live streams and is working to publish a story in a national media coming weeks. The Baltimore Sun published a story about the visit to Sykesville, MD. LED Workshop and Pre-departure in Kyiv Visiting D.C. - link 1, link 2, link 3; Interview for VoA; Visiting US rural communities - link 1, link 2, link 3; Live streams from ICMA Conference - link 1, link 2, link 3;

B. Quantitative Highlights Briefly summarize any progress made toward the achievement of your M&E Plan targets, which should also be provided in greater detail in Section IV. The DOBRE M&E system quantifies the progress of the program along 39 indicators. All DOBRE CCs improved their capacity in effectively managing resources and services that respond to community priorities, as measured by the Participatory Municipal Capacity Index (PMCI). DOBRE CCs received a mean score of 35.68 on the PMCI this year, an increase on average of 14 points on the PMCI scale (out of a maximum of 100 scores). In promoting institutionalized civic society in Cohort #1 and #2 CCs, 69% (against 40% planned) of CBOs that received support from DOBRE in developing their institutional capacities during the year have demonstrated improved organizational capacity to sustainably engage in CC processes. DOBRE measures this improvement using the Appreciative Review of Capacity (ARC) tool for CSOs. This year yielded significant increase in data related to training in citizen engagement best practices: DOBRE trained around 1900 persons compared to 1200 persons planned. Topics covered by the more than 300 training events ranged from engaging youth in local governance to innovative ways of budgeting, (e.g. gender responsive budgeting, participatory budgeting, etc.). This represents a significant program output, especially as gender equality or gender balance remain under-appreciated (due to lack of understanding of the topic), particularly in rural areas.

Almost 300 local officials (compared to 300 planned) received training in core financial management functions. DOBRE offered 148 activities in 2018 comprised of gender-responsive

9 budgeting, basic provisions of legislation in the field of public procurement, budget transparency and a strategic approach to the budget planning process. DOBRE also generated impressive numbers of CC representatives involved in strategic planning – 4288 persons. This included strategy development in Cohort #2 CCs, as well as mentoring of Cohort #1 CCs in implementation their strategies developed the previous year. In its activities aimed for participatory development, approval and implementation of Strategic Plans in CCs, DOBRE through its partner FRDL insured inclusion of women and vulnerable populations in local governance. As a result, all Strategic Plans developed under the support of the Program contain various actions and strategies to include women, youth and vulnerable groups in the process of community’s planning and development. Certain areas of DOBRE activity still need more careful and realistic planning, mainly by taking into account any potential for changes in the program’s context, so that target numbers correlate closely with actual figures at the end of the reporting period. If judged from M&E data, these areas include project applications submission to Regional Development Fund (RDF); and, development and implementation of participatory SDIP projects and LED projects. On the RDF DOBRE found each Oblast uses a different distribution mechanism, usually non-transparent. On SDIP and LED projects, it simply takes longer to train the CCs to develop these projects than anticipated. However, by forcing the CCs themselves to manage these projects, it gives them a valuable skill for future sustainability. (Many other donors simply prepare requests for the CCs and implement, and many of our CCs expected this as well.)

C. Activity Administration DOBRE previously established regional offices in Ternopil, Dnipro, and Mykolaiv to manage program activities. In the past year it also opened a sub-office in Ivano-Frankivsk to better serve those partner CCs. DOBRE will likely open an office in Kropyvnytskyi as well with the upcoming announcement of Cohort 3 winners to provide better support and guidance to partner CCs in Kirovograd Oblast. Over the reporting period, DOBRE saw some changes in staffing in both Kyiv and regional offices and worked continuously to fill in the positions. With the Cohort 3 announcement, DOBRE issued a call for new program officers in Dnipro, Mykolayiv and Ivano-Frankivsk offices, collected CVs, and started screening and the selection process to fill these slots in the next quarter.

D. Subsequent Reporting Period October 22-26 Dnipropetrovsk Oblast, DOBRE Tourism development consultants visiting Pokrovska and Zelenodolska CCs of Dnipro for tourism resource assessment, identifying and planning DOBRE support. October 26-27 Dnipro, Dnipropetrovsk Decentralization Forum

10 November 5-6 Kyiv, Cohort #3 Introduction and second annual conference Strategic Development and Investment November 27-28 Kyiv, Budget Transparency Gala December 3-7 Szczecin Poland. Study tour for Skala-Podilska (consolation prize from “Hromada na Million”) on LED tools they plan to implement with DOBRE support (Farmers Market-Public space, improved infrastructure in downtown for business).

DOBRE identified an appropriate way to keep all the implementing partners updated on upcoming events. We established a DOBRE Google Event Calendar, helping establish better communication and coordination between the DOBRE implementing partners and donor.

IV. KEY NARRATIVE ACHIEVEMENT Program Progress by Objective Program Start-Up SU 1 Office, Equipment, Furniture, etc. Completed. SU 2 Hiring Staff Outlined in part C of the Executive Summary. SU 3 Selection and Establishment of Regional Offices Completed. All DOBRE Program offices, including three regional ones in Dnipro, Ternopil and Mykolayiv, are fully functional, furnished and equipped with necessary technology. DOBRE opened a small office in Ivano-Frankivsk and will consider opening one in Kropyvnytskyi to better serve program needs. SU 4 Map Oblast Ecosystem Originally, VASSR committed to mapping the ecosystem in each partner Oblast. Unfortunately, due to their internal difficulties, they did not undertake this activity. DOBRE used this activity as a test of the capacity for the newly formed Association of Village Councils and Amalgamated Communities (established by former VASSR staff who worked on DOBRE). They completed drafts of these reports during the quarter and DOBRE finalized and translated them into English. Activity completed. SU 5 DOBRE Launch Ceremony Completed.

11 Community Selection CS 1 Develop CC Selection Criteria & Competition Parameters Completed. CS 2 CC Selection Competition – Cohort #1 Completed. CS 3 Cohort #1 CC MOUs DOBRE signed bilateral Protocols of Cooperation with all 25 partner CC’s of Cohort #1. CS 4 Cohort #1 CC Basic Information Sheets DOBRE partner FRDL completed the Community Diagnostic Reports and we gathered remaining information from the diagnostics. Activity completed. CS 5 CC Selection Competition – Cohort #2 Activity completed. CS 6 Cohort #2 CC MOUs After the official announcement of Cohort #2 winners early in the Q3, DOBRE prepared and started signing the CC MOUs. So far, all Cohort #2 CCs signed the bilateral protocols. Activity completed. CS 7 Cohort #2 CC Basic Information Sheets DOBRE revised the application form and selection criteria for partner communities selection based on lessons learned from the first round, feedback from key stakeholders and from first round applicants for more efficient data gathering. In addition to that, DOBRE gathered data from the community diagnostics completed by FRDL for the Cohort #2. Two replacement communities also got through the diagnostics as of the reporting period and DOBRE got needed information. Cohort #3 - DOBRE revised CC selection criteria & competition parameters, announced a call for eligible communities to join as program partners. DOBRE received 62 applications: Dnipropetrovsk oblast sent 15 applications, Ivano-Frankivsk – 11, Ternopil – 9, Mykolayiv – 8, Kherson – 7, Kirovograd and Kharkiv – 6 each. The selection panel longlisted 32 communities that qualified for the next selection stage based on their application scores. In addition to the application score, when making decision the panel considered geographical distribution, prospects of amalgamation in the region, and feedback from DOBRE regional staff and panel members on experience of working with the applicants. Among the 32 selected CCs, 5 are from Dnipropetrovsk oblast, 5 – from Ivano-Frankivsk, 5 – from Kirovograd, 3 – from Mykolayiv, 6 – from Ternopil, 2 – from Kharkiv, and 6 – from Kherson. Upon official announcement of winning communities on early October DOBRE will begin MOUs signing process, following start of all the components in new Cohort.

12 Local government support organization (LGSO) and RCSO Selection LRO 1 Develop LGSO & RCSO Selection Criteria and Competition Parameters Completed. LRO 2 LGSO and RCSO Selection RCSO and LGSO selection completed. The new ones that joined during the reporting period received instructions and started doing fieldwork in communities. Activity completed. Over the reporting period, DOBRE had to reassign a new LGSO in Kharkiv as the Institute of Sustainable Development-Kharkiv failed to meet DOBRE contracting and performance requirements. Objective 1: Local Governments Effectively Manage Resources and Service That Respond to Community Priorities Expected Result 1.1 Increased local government capacity to promote sub-national and sub-regional economic and social development 1.1.1 Partner CC Assessments and Community Diagnostic Completed for both Cohort #1 & #2. DOBRE partner FRDL finished diagnostics and provided all the reports in both English and Ukrainian. Activity completed. 1.1.2 Comprehensive Participatory Strategic Planning Completed for the Cohort 1 CCs. This includes Pechenizhyn who already had a good strategy. However, after the Strategy Conference and seeing the quality of the DOBRE/FRDL assisted strategies, they asked for an update to theirs. For Cohort #2, FRDL continued the participatory strategic planning stage. By the end of the Year, FRDL completed all strategic plan development efforts. This included even Mirivska CC, Dnipropetrovsk Oblast. Mirivska joined DOBRE later as an alternative to replace a community that dropped out from Cohort 2. They started their work with DOBRE in December 2017, but was, at the same time, undergoing the process of expanding and bringing in new settlements. Therefore, the CC head asked to postpone strategic planning until they could finalize expansion. They wanted to ensure that all villages would have a chance to participate. Eventually, despite local CC determination for further amalgamation, the Oblast suspended the process with no specific deadline given. Therefore, FRDL decided to continue the strategy process, applying an extended approach that, despite the amalgamation suspension, would still include the additional units into the strategy process (including social survey and public consultations). They completed the entire process, including strategic plan preparation and adoption, in August 2018. Moreover, experts monitored the strategic plan adoption process in the remaining two CCs that previously completed the process but had not adopted their plans by June 2018. Eventually, local councils adopted the remaining two strategic plans in Sofiivska and Buzka (respectively in July and

13 August 2018). As a result, by the end of August 2018 local councils adopted all 23 strategies developed within Cohort #2 (including Pechenizhyn CC of Cohort 1). 1.1.3 Provide mentorship to Strategic Plan Implementation Over the reporting period DOBRE partner FRDL provided mentorship follow-up to CCs in implementing their strategic plans. To date, they finished facilitating meetings with the strategic Planning Teams in each CC where DOBRE supported developing strategic plans. The sessions reviewed the progress and challenges in strategy implementation. During the meetings, FRDL mentors discussed results achieved so far and tried to identify implementation challenges. 1.1.4 Establish Local Economic Development Steering Committees DOBRE and partner LGSOs continued to provide technical assistance and expertise to existing pool of communities. Early in August, all 50 CCs established LED Steering Committees. This group in each CC unites representatives of local government, business, and civil society, to drive LED initiatives, establish LED governance policies and attract resources for implementation of LED Action Plans. LGSOs continued visits to CCs. In Tsarychanska CC, they attended a meeting of the local LED Steering Committee. The participants of the meeting updated the LED Action Plan and planned on how CC will attract additional resources beyond DOBRE support. The LED Steering Committee also prepared for the public presentation and discussion of the LED Program and Action Plan. The CC finalized the Community Economic Profile. The CC outlined priority LED projects as a) Establishing a Co-working space and developing a Business Support Center, and, b) Establishing Eco-Tourism Information and Resource Center. They also visited Pokrovska and Mirivska to finalize LED project planning and work out DOBRE remarks and recommendations to their Economic Profiles drafts. In Apostolivska, the LGSO assisted the CC in developing further the project on creating a Farmer’s Market. In Sofiivska, they helped in planning the implementation of the project on developing improved infrastructure for business. The LGSO attracted a rural tourism expert in Zelenodolska, as they plan to develop rural tourism. The consultant provided technical advice and consultations. Hrechanopodivska CC initially was interested in the creation of a mini-bakery and a mill. However, after consultation with LED Steering Committee, they changed the project to improvement of territories for business development. In Kirovograd oblast, the LGSO worked with Bobrynetska CC to complete their Action Plan. DOBRE also visited Novooleksandrivska CC to facilitate their selection of priority LED projects for DOBRE support. The CC decided to build on the Festival they conduct on a regular basis and develop a Tourism Development Program that will include a Tourism Information Center, development of bike routes and signage and improved areas for local businesses. DOBRE visited Biloberizka CC and attended an LED Steering Committee meeting. The Deputy Head of CC and the Committee Head chaired the meeting. Eight community leaders and prospective members of the soon-to-be-established Herbs and Berry Agri-Coop participated. The Committee agreed on a) Herbs and a Berry Agri-Coop, b) Tourism infrastructure development, and c) CC Tourism and LED Map as the priority LED projects for the CC. The DOBRE team advised on coop business planning and application to the DOBRE process. The СС started, with support from the LGSO, selecting and recruiting a coop business- planning consultant that would move them closer to DOBRE funding. Once they complete the business planning process, the CC will apply to DOBRE for LED funding (coop processing,

14 analysis, and packing equipment, etc.). In addition, DOBRE will provide advice and support on registering the Coop. LGSOs also visited Askania Nova, Prysivaska, Chaplynka and Kochubeyivska CCs (Kherson) and Domanivska, Kamyanomostivska and Oleksandrivska CCs (Mykolayiv). CCs completed identifying their priority LED projects and will complete their LED Action Plans and LED Presentation in the upcoming practical workshop ‘Strategy to Action’ in Mykolaiv (Sep 17- 18) and Kherson (Sep 20-21). Following LED Workshops “How CCs Can Attract and Work with Investors?” for five Eastern and Southern Oblasts, seven CCs submitted their draft investment proposal (greenfield) to a DOBRE consultant for review and refining. CCs from Kherson and Mykolayiv submitted proposals by the end of the month. In Kharkiv and Dnipropetrovsk Oblasts, LGSOs worked on the final remarks of the economic profiles for six assigned ССs. The LGSO set up dates with LED groups for consultancy visits to Starosaltivska CC (September 6) and Zelenodolska CC (September 7) and official meetings of their LED Steering Committees. LGSO and CCs moved to preparing the LED program and Action Plans and will finalize soon. By the end of the reporting period, DOBRE convened over 30 local leaders representing five DOBRE CCs from Ivano-Frankivsk Oblast to learn how to further implement their LED programs. Three DOBRE LGSOs conducted seminars and practical workshops and assisted the CC LED teams in completing their programs and action plans. NDI held Gender Mainstreaming Training in LED projects and committed to review LED Action Plans. CCs presented their plans to launch LED projects in their community and identified types of support needed. Overall, these CCs expect DOBRE’s technical and financial support for about eight LED Projects. Among priority LED projects are improving infrastructure for Business/Market places/Farmers Markets (Pechenizhyn, Mateyivetska, and Nyzhnoverbizka), Tourism Development Program (Biloberizka CC), and Agri-coops (Biloberizka, Starobohorodchanska, Pechenizhyn, and Verkhnyanska). DOBRE completed TORs and contract arrangements for two city design consultants and started technical assistance (Infrastructure improvement for business /Public Markets areas) in Mostivska, Bashtanka, Pechenizhyn and Zolotopotitska CCs. We also contracted two Rural Tourism Development consultants to support DOBRE CCs in tourism development, including workshops at DOBRE oblast level events and on-site consulting visits for tourism infrastructure assessment and tourism routes markets. DOBRE will support tourism development projects in about 10 DOBRE CCs. About 80 LED team members and community leaders of 16 DOBRE communities gathered in Mykolaiv (Sep 17-18), Kherson (Sep 20-21) and Kharkiv (Sep 20-21) to learn and plan how to further advance implementation of their LED Programs. DOBRE and its partner LGSOs conducted seminars and practical workshops and helped the CC local LED teams complete their LED Programs and Action Plans. NDI held Gender Mainstreaming Trainings in LED projects and is planning to review community LED Action Plans. SocialBoost presented how community economic profiles may be visualized on their CC web sites. DOBRE also informed them how DOBRE public space design consultants will help CCs create/beautify public and business areas. CCs presented their plans to launch LED projects in their community and identified types of support needed. Among priority LED projects are Improving Infrastructure for Business and Public in downtowns and waterfront areas, Farmers Markets/Market places, Tourism Development Programs (e.g., Bike/Hike Trails, Community Tourism Maps, Tourism Resource Centers, Camp sites, nature observation sites, etc.), and Agri farming/processing co-ops.

15 Following a series of three regional LED Investment Workshops “How CCs can attract and work with investors?” that covered all DOBRE oblasts, a selection committee (comprised of UkraineInvest, the DOBRE Investment consultant, and DOBRE) identified the seven highest scoring CCs to advance to the next level of DOBRE assistance. The CC teams will get further technical assistance to complete CC Investment proposals, organize other CC information and promote CC vacant Greenfields and Brownfields. As a culmination point, the CC leaders will speak at the Investment Hub in Kyiv sharing their “How CCs can attract and work with investors” process experiences with the other 75 DOBRE CCs and communicating directly with potential investors (both foreign and Ukrainian) to promote their investment ideas and proposals. The advanced round CCs are the following: - Novooleksandrivska, Vasylkivska, Sofiivska, and Pokrovska (Dnipro); - Bashtanka and Prybuzhanivska (Mykolaiv); - Biloberizka (Ivano-Frankivsk). DOBRE also organized a US LED Study tour, convening some of the LED Steering Committee members and responsible LED community representatives from Buzka (Mykolaiv Oblast), Ivanivska and Baykovetska (Ternopil Oblast), Pokrovska and Sofiivska (Dnipropetrovsk Oblast), Pechenizhyn (Ivano-Frankivsk), Askania Nova (Kherson), and Novoukrainska (Kirovograd). The group also included a representative of the Association of Village Councils and Amalgamated Communities. 1.1.5 Prepare Community Economic Profiles LGSOs assisted all 50 partner CCs to create their “community economic profile” so they have readily available, needed business and investment information. This activity cross-corresponds to the one indicated above in 1.1.4. In addition, all LGSOs reviewed and provided their feedback to Social Boost on a newly developed template of a Community Economic Profile. The Excel spreadsheet document envisages putting community economic data into about 20 user-friendly spreadsheets. The community website link then would easily provide public access to the Profile for viewers (citizens, investors, etc.). 1.1.6 Create LED Operational Plans DOBRE held a series of “Know Your Community”, ‘Strategy to Action’ and “How CCs Can Attract and Work with Investors?” Workshops for LED teams from DOBRE CCs with a focus on completing their community economic profiles and selecting the best LED policies and tools for stimulating their local economies. DOBRE partner SocialBoost presented their on-line tool the CCs can use to share community profile information important to investors and local business, learn viable approaches to stimulating their local economy. DOBRE LGSOs conducted a training, assisted LED teams to collect and organize information on community economic resources and identify LED policies and tools appropriate for their community, and showed innovative approaches to stimulating their local economy. DOBRE LGSOs also conducted practical workshops and guided CCs in organizing LED teams and identifying high potential projects as outlined in 1.1.4. DOBRE and LGSOs highlighted the importance of preparing

16 Community Economic Profiles and having an effective LED communication process in place. By the end of the year, nine CCs completed their LED Plan and another 37 had a final draft (for finalization early in the next quarter). DOBRE, through LGSOs and technical experts, will continue delivering on-site assistance to support community efforts to implement LED initiatives. 1.1.7 Harmonizing CC and Regional Development Plans FRDL works with CCs to do this as part of the strategy development process. 1.1.8 Local Economic Development Support With completion of Strategic Plans and LED Action Plans DOBRE started working with CCs on identifying high priority LED projects. The following shows the breakdown of communities and selected projects for LED support: Community Selected project a) Establishing a Co-working space and developing a Business Support Tsarychanska Center, and, b) Establishing Eco-Tourism Information and Resource Center Apostolivska Farmer’s Market Sofiivska Development of an improved infrastructure for businesses

Zelenodolska Rural tourism, Business Support Center/Youth Entrepreneurship Program Hrechanopodivska Improvement of territories for business development

Novooleksandrivska Tourism Information Center, development of bike routes and signage, and improved areas for local businesses

Biloberizka a) Herbs and a Berry Agri-Coop, b) Tourism infrastructure development, and c) CC Tourism and LED Map Malovyskivska Bee Keeping Coops, creation of the tourism cluster Bobrynetska Bee Keeping Coops

Nyzhnoverbizka Agri Coop Starobohorodchanska Organic Agri-Coop and a Processing Agri-Coop Prepare a community land inventory, establish a Local Economic Development Agency, start a Business Improvement District, and Bilshivtsivska develop a Tourism Development Program with Recreational sites support and Tourism promo materials projects Agri-Coop, Business Improvement District and Tourism Development Mateyivetska Program

17 Farmers Market /Placemaking Project and establishing Tourism Pechenizhyn Development Program/Info Center Mykulynetska Fruit Cooperatives Ivanivska Baykovetska Local Economic Development Agency (a) Tourism Development Program/Info Center/Museum-Workshop, Zolotopotitska (b) Farmers Market Improvements/Placemaking a) Agri-Coop (berry) b) Youth Entrepreneurship/Professional Velykohaivska Training Center Skala-Podilska Steering Farmers Market/Place Making a) Farmers Market/Placemaking and b) Tourism Development Terebovlyanska Program Farmers Market/Placemaking and exploring public-private Merefyanska partnerships and inter-municipal cooperation Business Support Center and b) Establishing the center of tourism Starosaltivska development 1) Establishing farm service cooperative for the processing of Halytsynivska pharmaceutical and essential oils "Lavandafest"; 2) Creating agro service cooperative for the processing of vegetables and fruits Development of the area with improved infrastructure for local Bashtanka businesses and entrepreneurs; Creation of the beekeepers cooperative Mostivska Farmers Market based on Placemaking Concept Slobozhanska Agri-Logistic Center and a Local Economic Development Agency Pokrovska Agri-Coop (Beekeeping) Vasylkivska Establishing a Business Improvements District a) Establishing Youth Entrepreneurship Program and b) Business Verbkivska Support Center Novoukrainska Area with improved infrastructure for businesses 1) improvement of business infrastructure next to a park and river Buzka area; 2) Establishment of agricultural servicing cooperative for the processing of vegetables and fruits; 3) Establishment of a beekeeping cooperative; 4) Establishment of cooperative for the production of locally sourced natural vegetable candies

1.1.9 Spatial Planning Pilot DOBRE helped develop spatial plans for a community from each category of CC (Town, Settlement and Village type) based on new requirements approved by MRD. DOBRE selected three pilots (Apostolivska, Prysivaska and Zavodska) and worked with UkrCivilBud to begin the Spatial Planning activity based on approved official documents provided by the CCs. DOBRE and UkrCivilBud attended the first working meeting on Spatial Planning in Apostolivska CC. We presented topography basics of the Community and discussed the current situation and future planning perspectives in CC. Participants included the Deputy Head, Chief architect, Chief land manager, other CC staff, Starostas from all former village councils (5), land managers from all former village councils, three members of council and two businesspersons. All of them

18 confirmed or detailed current territory of CC and described their vision and future projects that will be implemented in CC. Based on feedback of CC management, this was a very productive meeting, because when they implemented city-building documentation for their city and village, they lacked so many interested CC representatives. DOBRE also met with the Ternopil Oblast architect and discussed more effective ways to work with the Architect council on the spatial-planning scheme of Zavodska. We also received the general plan of Ternopil Oblast with prospective changes/increases of CCs. Then, DOBRE and partner CIVILBUD attended public hearings in Zavodska CC to present the spatial planning scheme to citizens and get their feedback, where 27 people participated (only 20 registered). Protocol was followed according to current legislation. Hearings were very emotional and propositionswere made, but the most important part of discussion was raised about local graveyard and water supply station. Based on discussion we will change our proposed scheme in according to peoples experience and need. After agreement of changes to the map resulting from the public hearings, the final plan will go to the local council for final approval. By the end of reporting period, UKRCIVILBUD also finished the spatial planning scheme of Prysyvaska CC with all graphics and text materials. DOBRE will review it and forward to the community next week. Once received by the CC, the 30-day period for discussion and propositions from interested parties will start. After the 30 days, the CC will hold a formal public hearing for final comments. DOBRE also met with the Kharkiv Project Institute, discussed the possibility, and assessed their capacity, to create spatial planning schemes for local Kharkiv CCs. Based on the conversations, it appears the Institute is capable and ready for cooperation under supervision of DOBRE. Previously, they only did local city building documentation, but not for the whole community. 1.1.10 Partner CC Capacity Building DOBRE continued a robust capacity building effort in the CCs. DOBRE sponsored a roundtable for oblast council members of Ternopil and Ivano-Frankivsk oblasts on inter-municipal cooperation as a tool for regional policy, held within the National study tour program on inter- municipal cooperation. The representatives of MRD, Ternopil oblast and Ivano-Frankivsk Oblast council representatives, Ternopil and Ivano-Frankivsk Oblast administrations representatives, and CCs discussed the state and oblast policy, oblast experience and support mechanisms for inter- municipal cooperation on state and oblast level for the communities. Ivano-Frankivsk Oblast Council members initiated the roundtable because of previous discussion with DOBRE. As a follow-up, DOBRE met with Maria Savka, first deputy head of the Ivano-Frankivsk oblast council, and Lilia Popova, head of the Department for Local Government and Territorial Organization of the Interaction with Local Authorities of the MRD. We discussed cooperation among DOBRE, Ivano-Frankivsk oblast council and MRD on creating mechanisms of inter-municipal cooperation at the oblast level and technical assistance to the Oblast Council for developing an inter-municipal cooperation program. The creation of the program will provide significant incentives for CCs to unite and better use their resources and implement significant development and infrastructure projects. Ternopil Oblast council members and the Ternopil Oblast administration also would

19 like additional follow-up and DOBRE will organize a roundtable in Ternopil in September on inter-municipal cooperation. DOBRE also continued council member training for the council members of Shumska, Skalatska, Velykohaivska Vyshnevetska, Mirivska, Starosaltivska, Zelenodolska, Verbkivska, Vasylkivska, Sofiivska, Hrechanopodivska, Halytsynivska, Domanivska, Kamyanomostivska, Mostivska, Buzka, Chaplynka and Prysivaska Terebovlyanska, Bilshivtsivska, Nyzhnoverbizka, Zolotopotitska, and Mateyivetska CCs. The trainings explored the status, rights and responsibilities of the local council members and soft skills development. This includes communication skills that will help them in their daily work. DOBRE held a training for Starostas of Cohort #1. The training focused on the status, rights and responsibilities of the Starostas and their soft skills development. DOBRE also launched a series of Oblast level trainings on child rights protection in Ternopil, Ivano-Frankivsk, Mykolaiv and Kherson CCs. This resulted from identifying improving social services to better protect children’s rights as a critical need. DOBRE published a handbook on child rights protection in CCs and distributed it during events and posted it on the Decentralization web-site. The following study tours occurred: - Study Tour on Sports: DOBRE organized a study tour for five CCs of Dnipropetrovsk, Kherson and Mykolayiv Oblasts to Sumy oblast, where participants learned about the best practices in organizing summer camps and children and youth summer activities. - Study Tour on Dairy Cooperatives - DOBRE organized a study tour for representatives of Shumska, Skala-Podilska, and Zolotopotitska CCs to Lviv Oblast. Participants learned about the best models for organizing dairy cooperatives and establishing an Agro-tourism cluster in Western Ukraine. The hosting communities presented mechanisms for developing effective cooperatives and considered the possible challenges in the process. - Study tour on Education: Representatives of nine CCs from Ternopil and Ivano-Frankivsk Oblasts visited Dunaevska and Polonska CC in Khmelnitsky Oblast. The participating CCs expressed interest in reform and optimization of the education services in their CCs. They learned about the experience of Dynaevetska and Polonska CC in optimizing education institutions and participated in the role-playing game "Optimization of school network" which challenges participants in making decisions in the game, similar to the ones that they will encounter during optimization in real life. - Study Tour on Inter-Municipal Cooperation in Solid Waste Management: DOBRE organized a study tour on inter-municipal cooperation for representatives of Pechenizhyn and Nyzhnoverbizka. Participants learned about different forms of cooperation in services (especially in Solid Waste Management). Omelnitska CC from Poltava oblast hosted the study tour and presented their experience. 1.1.11 Women’s Leadership Academy (WLA) In late 2017 and early 2018, NDI selected and trained 15 experienced women’s political engagement activists and past WLA participants to lead academy cycles throughout the country. Those 15 activists participated in a series of intensive training-of-trainers (ToT) workshops over

20 several months. During the reporting period, six of these NDI-trained activists began conducting the fourth and fifth series of WLA cycles around the country. Each cycle lasts two and a half months and is comprised of two training sessions, a mentorship program, a potential micro- project sponsorship, a follow-up skills training or networking event, and an invitation to an annual conference for WLA alumnae. Each WLA cycle is designed to accommodate approximately 30 participants from three CCs (or about 10 participants per CC), with CCs selected and matched based on demonstrated interest and geographic proximity. The first WLA of the fourth cycle launched in Kryvyi Rig from September 5 to 7, with 32 participants from Apostolivska, Zelenodolska, and Sofiivska consolidated communities in Dnipropetrovsk Oblast. The three-day training session focused on building professional networks, community mobilization and countering overt gender biases. Participants also discussed the opportunities and challenges for women under decentralization reform and how women can respond to these challenges to participate in local decision-making processes. During a group exercise, participants identified the needs of vulnerable groups of women in their own communities and determined how local councils can address those needs by providing gender-sensitive services. Participants noted that this exercise was helpful in identifying issues that can be addressed by mini-grants that they can apply for upon graduating from the WLA. Shortly after the completion of the first WLA of the fourth cycle, the first WLA of the fifth cycle launched from September 19 to 21 in Mykolayiv, focusing on 28 representatives from Bashtanka, Oleksandrivska, and Prybuzhanivska CCs. During these trainings, participants practiced their leadership skills, learned about opportunities and obstacles to enhancing women’s leadership, and discussed how gender-sensitive approaches can contribute to the efficiency of decentralization reform at both the micro and macro levels of government. In addition to continuing the regional WLAs, NDI and its partners continued to host town halls, community meetings, and Q&A panels in a number of targeted communities to facilitate interest and identify potential Academy participants for upcoming cycles. On September 17 and 18, NDI and UWF visited Chaplynka, Askania-Nova, and Prysyvaska consolidated communities in Kherson Oblast to conduct question and answer (Q&A) sessions for potential WLA participants. Interest in the WLA was high in these CCs, with about 70 women representing a variety of government and civil society groups attending. The mayors of Chaplynka and Prysyvaska CCs encouraged local women to apply to the Academy and even offered to co-fund and assist the implementation of micro-projects that would benefit their communities.

21 On August 14 and 15, NDI and UWF conducted monitoring visits to three micro-project grantees from the first WLA cycle. In Pokrovska CC, WLA alumna Olga Bulakh developed a project entitled, “Creation of a Safe Space for Women,” which proposed the creation of a room where local women can meet and discuss community initiatives, receive counselling and support, and undergo training. The room opened in early August, and shortly after, a group of women activists reached out to organizers to use the space for a training on stress management. Furthermore, those who were actively involved in the project design and implementation are inspired to do more work in their community, and have subsequently decided to form a women’s council to have a voice in the local decision-making process. In Tsarychanska CC, WLA alumna Yevhenia Velehura created a waiting room in Tsarychanska hospital for parents to sit with young children, change diapers, and wait in comfort. According to Natalia Denysko, the chief manager of the hospital, parents used to wait in corridors with their children. “I am extremely happy that we have a family room like this in our clinic,” she said. “We want our clinic to be a friendly place to its visitors, especially the youngest ones.” The third micro-project in Mogylevska CC created a sensory room in a local school that will also be used as a training room on weekends. They completed this to coincide with the beginning of the school year. The project budget covers the costs of construction, trainings on preventing bullying in schools, and career guidance orientations. Over the reporting period, NDI and UWF accepted four of six micro-project proposals submitted by alumnae of the second and third cycles of the WLAs conducted in Ternopil and Kirovograd. NDI was initially prepared to support all six projects, but two of the six applicants withdrew their proposals because they did not have teams to support them in implementing their projects. In response to these challenges, NDI and UWF are adjusting the WLA curriculum to include follow-up trainings for alumnae on team building and volunteer recruitment. Ultimately, NDI awarded four $1,400 grants to high-achieving WLA participants to engage with gender issues within their own communities. These grants will support the implementations of various projects, including the creation of a center geared towards promoting gender equality, a women’s resource center that will advocate for women’s empowerment in the community, a school for local women councilors, and support for wives and children of anti-terrorist operation veterans. These micro- projects will address specific needs of women and mothers, raise awareness of issues contributing to gender inequality, and contribute to community mobilization of women while providing WLA alumnae with real life advocacy, organizational, and community leadership experience. On August 1, NDI and UWF launched the mentorship support program (MSP) for alumnae of the first, second, and third WLA cycles. The MSP matches each alumna with a woman leader based on the alumna’s background and interests. As a part of the program, NDI and UWF provide mentors with detailed instructions outlining the goals and expectations of the MSP, including tasks and regular check-ins with mentees. This quarter, four mentors began collaborating with WLA alumnae to discuss fundraising and project implementation, developing informational and educational activities, and working with social media. In August, NDI and UWF also finalized the content of a manual for WLA trainers. The manual is a detailed description of the WLA curriculum and includes descriptions of and instructions for

22 exercises, questions to ask participants for each module and expected results of each exercise. The manual will be released in early November. Looking ahead, NDI and UWF will host a national conference for WLA alumnae in January 2019. The conference will bring together participants from previous academies to share experiences, success stories, and good practices. 1.1.12 Gender Focused Caucuses (GFCs) Over the reporting period, NDI continued to support the formation of gender-focused caucuses in the local councils of target oblasts and provide technical support to the existing GFCs. Most recently, NDI supported the formation of GFCs in Vasylkivska and Tsarychanska CCs through extensive face-to-face and online consultations. NDI is currently supporting the newly created GFCs in initial strategic planning processes. On July 18, NDI supported a roundtable discussion in Donetsk Oblast organized by the Kramatorsk city council GFC entitled, “Ensuring Reproductive Rights for Women and Men.” Although Kramatorsk is not a DOBRE target municipality, local councilors seeking support for a prenatal medical center reached out to NDI for assistance in forming a GFC. The roundtable gathered 33 participants, including local councilors, experts, public officials, and civic activists, to discuss the need to open a prenatal medical center as a part of a local clinic. Participants noted that pregnant women often seek medical care in other oblasts and cities due to a lack of resources in their own communities, highlighting the need to open an accessible medical center that can provide a complete spectrum of women’s health services. As a result of the discussion, the Kramatorsk city council and representatives from Donetsk Oblast reached an agreement to open a prenatal medical center by the end of the year. On August 29, NDI conducted a strategic planning meeting with consultants to discuss how NDI can facilitate the integration of individual GFCs into a larger Ukrainian GFC network. To this end, NDI is developing a platform for communication between caucuses representing different levels of government, as well as with the Equal Opportunities Caucus in the Verkhovna Rada. As a part of this strategy, NDI is working to increase GFCs’ communication and citizen outreach capacities. Also, the second regional women’s congress was organized in Lviv by the Equal Opportunities Caucus with NDI support. The Ukrainian women’s congresses, held annually at the national level and regionally throughout the year, are designed to become ongoing platforms for development of the women’s movement in Ukraine. They contribute to the exchange of experience and best practices between legislators and citizens. The congresses also help legislators develop a common gender agenda, stay informed about regional developments and trends, accommodate the interests of citizens and local communities in drafting legislation and proactively respond to their needs. The regional congress in Lviv provided a forum in which women’s rights activists, local elected officials and political leaders shared their ideas, lessons learned and suggestions on how to contribute to the implementation of the ten steps to achieve gender equality in Ukraine outlined in the resolution of the first national Ukrainian Women’s Congress. A similar regional congress was previously held in Odesa on May 18 and the discussions at the Lviv and Odesa regional congresses will inform the strategy of the national congress in December.

23 The Lviv congress brought together over 100 participants including government officials, MPs, local authorities, representatives of consolidated communities, civil society organizations, international organizations, and media from Lviv, Ternopil, Ivano-Frankivsk, Vinnitsa, Volyn, Zhytomyr, Khmelnitsky, and other oblasts. The agenda of the congress included a series of panels, public lectures, and “living library” discussions focused on increasing women’s political participation, enhancing women’s economic empowerment, and combating gender-based discrimination and prejudice. During the first session, panel speakers discussed how gender equality influences social development. Panelists included representatives of the parliament and the Ministry of Regional Development, the head of the Lviv oblast administration, civic activists, and history and law experts. The second session involved a series of public lectures on gender gaps in social and economic spheres and gender responsive budgeting. Among the lecturers was Maja Bosnic, a gender responsive budgeting expert and Team Leader of the Gender Responsive Budgeting in Ukraine Project. Lecturers spoke about existing imbalances in the socio-economic sphere in Ukraine, and the effectiveness of GRB as a tool to both increase budget efficiency and achieve gender equality, as well as new opportunities for Ukrainian women in business. The final session of the congress was formatted as a “living library” discussion, which offered participants a unique format for group conversations with like-minded officials and activists from around the country. 1.1.13 Strengthening Public Administration Professional Development MSAP/UEK continued its Project activities originated in the previous periods focus on phase 2 (i.e. Institutionalization) of the “DOBRE University Consortium for Public Administration Education Enhancement” and Standardization of public administration education on undergraduate, graduate and professional development level. MSAP/UEK continued working directly with Ukrainian higher education institutions and training centers that joined the DOBRE Consortium for Public Administration Education Enhancement. MSAP/UEK focused on working out new standards for Public Administration education. Additionally, dissemination of the first results already continued and four dissemination seminars were organized in Kherson, Mykolayiv, Ternopil and Ivano-Frankivsk. During the reporting period, UEK delivered a new component concept to DOBRE for approval. It focuses on building real capacity for direct support for reformed local governments in Ukraine from the educational institutions in the form of certificate programs offered by members of the Consortium and taught by trainers educated within our program. The following activities were undertaken: • Communication with higher education institutions and training centers from all regions about dissemination seminars of the Consortium for Public Administration Education Enhancement; • Preparation of the concept (logistics, organization, contents) of the dissemination • workshops in Kherson, Mykolayiv, Ternopil and Ivano-Frankivsk; • Presentation of the Concept for trainings for developing a system of certificate post- • diploma programs for reformed Ukrainian self-governments at a National conference in Odessa;

24 • Workshops in Kherson, Mykolayiv, Ternopil and Ivano-Frankivsk. 1.1.14 Developing a Cadre of Experts to provide ongoing training to local governments U-LEAD launched a major new initiative on training (Thematic Support Packages) for all local government officials. Previously, DOBRE and U-LEAD had consulted on a coordinated approach but the U-LEAD effort went in a different direction. Therefore, rather than compete directly with U-LEAD, DOBRE decided to deviate from the approach of 1.1.14 and move toward the Certificate program approach mentioned above in 1.1.13. This would serve a medium-term training need and better prepare Hromada officials for practical work at the community level. Because many rural communities cannot recruit employees with specific needed degrees, this approach will allow them to better train and prepare their staff. Expected Result 1.2 Targeted local government services improved 1.2.1 Service Delivery Improvement Plans (SDIP) For Cohort 1 communities, DOBRE has 25 prepared SDIPs, approved by local Councils. The next stage is the actual implementation phase. DOBRE has 25 SDIP projects in process: 11 communal trucks and vehicles, 6 equipment supply projects (for schools, public lighting setup), Eight projects focused on renovation and construction – from water supply chains development to renovation of houses of culture. Pechenizhyn CC project on SWM is fully completed. Cohort #2 CCs finalized selections of their priority services. They chose Solid Waste management – 7, Water – 5, Streets & Sidewalks – 7, Public lighting – 2, Education – 2, Sports – 1, and Primary Health – 1. The following gives the specific selections:

CC name Oblast Priority service Zelenodolska Dnipro Water Supply Sofiivska Dnipro Streets & Sidewalks Vasylkivska Dnipro Streets & Sidewalks Hrechanopodivska Dnipro Water Supply Myrivska Dnipro Streets & Sidewalks Verbkivska Dnipro Primary health Novoukrainska Kirovograd Solid Waste Management Malovyskivska Kirovograd Water Supply Domanivska Mykolaiv Public lighting Kamyanomostivska Mykolaiv Public lighting Mostivska Mykolaiv Education Halytsynivska Mykolaiv Sport Buzka Mykolaiv Streets & Sidewalks Chaplynka Kherson Water Supply

25 Prysivaska Kherson Water Supply Starosaltivska Kharkiv Streets & Sidewalks Bilshivtsivska IF Streets & Sidewalks Nyzhnoverbizka IF Solid Waste Management Mateyivetska IF Streets & Sidewalks Shumska Ternopil Solid Waste Management Skalatska Ternopil Solid Waste Management Terebovlyanska Ternopil Solid Waste Management Vyshnevetska Ternopil Education Zolotopotitska Ternopil Solid Waste Management Velykohaivska Ternopil Solid Waste Management

All Cohort #2 CCs started the SDIP development process and should complete them by the end of 2018. They will then move into the implementation phase. DOBRE made field visits to monitor progress of the SDIP development process in Cohort 2 CCs. Malovyskivska selected the service of Water to build their SDIP for planning and improvement. The team visited a water pump station, reservoir, the settlement of Paliivka and met the Starosta and citizens. The head of municipal communal entity briefed DOBRE about the organization’s functions and problems they face. Their SDIP WG held its 4th session and presented results of previous sessions. The team answered questions related to DOBRE co-funding projects and made recommendations to improve the service to be considered in SDIP. The WG will complete prioritization of projects and start to fill out the Application Form. DOBRE visited Novoukrainska and they will prepare an SDIP on Solid Waste Management. The team visited the CC’s landfill, garbage accumulation points inside the CC center, settlements of Marianopol and Kamiana Mist and met with the Starosta. The CC announced a call for proposals to release grants from the CC’s budget for solid waste management. Schools and Starostas applied and the CC awarded them improvement projects, including the construction of metallic garbage bins and platforms for dumping and sorting garbage. The team attended an SDIP WG session and met with PC Volunteers, Youth Council members, and held a discussion on their involvement in the implementation of citizen outreach and engagement set in SDIP. Some recommendations were given to be considered by the Communal department and enclosed in SDIP.

26 DOBRE met with the SDIP WG on Solid Waste Management (SWM) in Terebovlyanska CC. They outsourced the service to a private entity, which dominates the rayon in providing garbage collection and disposal. However, 15 out of 26 settlements do not get service at all and the CC would like to eliminate such disparity in the level of service across settlements. First, they want to extend service to cover all settlements. Second, they want to improve the level of services in those communities getting service. The WG has not yet decided on their co-funding project. However, they intend to establish good practice of garbage sorting and provide service in all settlements. DOBRE then visited Zolotopotitska CC and met with their SDIP WG on SWM. Members presented results of previous sessions, and discussed prospective plans for SWM improvement. Since the start of the SDIP process, the community established a new Communal Entity, procured 27 solid waste containers (1.1 M3) and a tractor - multipurpose machinery with trailer to use for collection of garbage. The DOBRE SDIP program inspired the community to initiate acquisition of part of a fleet necessary for garbage collection and disposal, while the community never provided this service in the territory of the CC before. The WG is finalizing the SDIP and shortly will submit the application form for co-funding of a rear-loading Garbage truck. The WG is in the stage of user charge calculation and scheme of installation of platforms for garbage sorting over territory of all 11 CC settlements. DOBRE then visited Shumska CC and held a meeting with 22 members of their WG. The WG has 32 members and 70-80% of members regularly participate in sessions. There was a SDIP draft presentation and they discussed comments and questions raised by DOBRE. DOBRE also answered several questions from the WG. DOBRE was pleased to learn that WG members convinced the Mayor and Council Members to proceed with procurement of a garbage truck as their co-funding project. It will make over 40% of community match. The procurement documents are in the final stage and in couple of weeks, Shumsk will receive the truck. The truck is of the same characteristic as other procurement of Garbage Trucks processed by DOBRE. DOBRE will provide them with garbage bins for individual use and those allotted for sorting. The CC will also provide construction of platforms for sorting garbage in addition to the truck. Find info about meeting in Shumska CC at this link. In Vyshnevetska, the WG presented the final draft of their SDIP on Education after comments provided by DOBRE. We discussed both strategic goals and short-term projects, including those of co-funding. The WG will request equipment for establishing a functioning student canteen in all 11 CC educational institutions. The WG will process the application form and submit to DOBRE for approval. DOBRE visited Verbkivska CC - the only community that chose Healthcare for their SDIP. DOBRE visited four First Aid Dispensaries and two ambulatories in Verbkivska, Kocherezhki, and Vyazivok. For those citizens living in distant villages the access of medical services is a problem, since settlements are scattered over the territory of CC and roads to the villages are in very bad condition, the WG then presented the SDIP draft. The discussion of short, mid and long-term

27 SDIP projects brought many two-way questions. After answering questions the team recommended weighing the proposed solutions of problems and then start filling out of application form. According to the recently adopted regulation, state funds released to a community depend on the number of patients served, so the CC is interested to serve more population, including those of adjacent CCs. DOBRE then visited Vasylkivska CC and met their WG working on improvement of Streets & Sidewalks. They will soon finish their SDIP. The WG presented main features of the CC's plan. Vasylkivska is the former Rayon center and more communities are going to amalgamate with it. Because of this merging, the number of settlements will increase from 21 up to 56. Thus, amalgamated communities will cover 80% of rayon territory. DOBRE also visited two entities under the jurisdiction of Rayon: Communal Entity and Road (RaiAvtoDor) construction organization. Both entities along with equipment and premises will be conveyed to the CC. However, the fleet became obsolete and almost all equipment is impossible to use. The CC leases two new backhoes they own to the Rayon entity. The WG proposed to co-fund an acquisition of a special truck for maintaining roads as one of the short-term projects. Finally, DOBRE visited Skalatska CC and met with their SDIP WG on SWM. The SDIP is in the final draft and we discussed comments and suggestions provided by DOBRE on the draft. Currently, the community provides service in only 4 out of 16 settlements, with no contracts or payments. However, the community owns a legal landfill. The plan is to establish a good system of SWM and recycling. The WG also discussed and revised outcome indicators. The CC referred to their top priority as a specialized rear-loading garbage truck. The community match will include construction of platforms for sorting and procurement of containers for separation into glass, plastic and paper. DOBRE engaged a consultant on Citizen Outreach /Sorting/Recycling and they started visiting and meeting with SDIP WGs to assist with citizen communication campaign, development promo materials, waste reduction popularization tools, etc. DOBRE started surveying citizens on service quality feedback. Five partner communities (Baykovetska, Skala-Podilska, Pechenizhyn, Biloberizka and Bobrynetska) will pilot the survey tool. Pilot CCs used volunteers and interviewed more than 600 citizens from different settlements. The survey uses tablets provided by DOBRE and an e-solution for field surveys (DOBRE.Pytannya) developed by DOBRE partner SocialBoost. They provided training to pilot communities. By the end of the month, Pechenizhyn and Biloberizka CC already finished surveying, and another three CCs (Baykovetska, Skala-Podilska and Bobrynetska) continue the process. Total number of the survey participants is at least 789 (1253 filled questionnaires). SocialBoost is using the pilot to make improvements in the app. 1.2.2 CC Program Fund DOBRE started the Quick Wins mechanism for partner CCs. DOBRE worked with the CCs to select a small project to fund, a very tangible result based on the diagnostic reports, community visioning meetings results and visits to partner CCs. Amount of the funding per community may

28 vary from USD 5 000 to USD 10 000. DOBRE enacted the same program for Cohort #2 CCs after FRDL completed the Community Diagnostics for them. Partner CCs made the following selections:

• Apostolivska: Playgrounds (completed) • Askania Nova: Public Market Upgrade (completed) • Bashtanka: Nothing (Waiting for Strategic Plan/SDIP) • Baykovetska: Observatory Equipment (Completed) • Biloberizka: Nothing (Waiting for Strategic Plan/SDIP) • Bobrynetska: Playgrounds/Sports Equipment (completed) • Husyatyn: Race Track (suspended) • Ivanivska: Playgrounds (completed) • Kochubeyivska: Playgrounds (completed) • Merefyanska: Ventilation System in School (completed) • Mogylevska: Nothing. (Waiting for Strategic Plan/SDIP) • Muzykivska: Farmer’s Market Upgrade (Not started yet) • Mykulynetska: Park Improvements w/ WiFi (In progress) • Novooleksandrivska: Fire Department Improvements (in progress) • Oleksandrivska: Playgrounds (completed) • Pechenizhyn: Nothing. (Waiting for Strategic Plan/SDIP) • Pokrovska: Public Lighting (completed) • Prebuzhany: Playgrounds (completed) • Rohanska: Nothing. (Waiting for Strategic Plan/SDIP) • Skala-Podilska: Playgrounds (completed) • Slobozhanska: Fire Department Improvements (completed) • Starobohorodchanska: Playgrounds (completed) • Tsarychanska: Computers for Schools/Libraries (completed)

29 • Verkhnyanska: Park (In progress) • Zavodska: Sportsground/Playground (Ugryn) – completed Cohort #2 CCs made the following selections to date:

• Sofiivska: Playgrounds • Vasylkivska: Playgrounds • Zelenodolska: Undecided • Hrechanopodivska: IT Labs • Mirivska: Playgrounds • Verbkivska: Hub School Equipment • Bilshivtsivska: Undecided • Nyzhnoverbizka: Playgrounds • Mateyivetska: Biology Class Improvements • Novoukrainska: Playgrounds • Malovyskivska: LED Information Display • Domanivska: Stadium Renovation • Kamyanomostivska: Dental Office Upgrade • Mostivska: Park Improvements • Halytsynivska: Adult Education Center • Buzka: Undecided • Shumska: Physics Class • Skalatska: Playgrounds • Terebovlyanska: IT Labs • Vyshnevetska: Playgrounds • Zolotopotitska: Musical Instrument and House of Culture Upgrade • Velykohaivska: Community Branding (in progress) • Starosaltivska: Bus shelters installation/upgrade • Chaplynka: Stadium Renovation • Prysivaska: Playgrounds During the reporting period DOBRE continued working with each CC to design their project, sign an agreement based on the project design and then move toward procurement and environmental compliance approval (before completing procurement). DOBRE completed all Cohort #1 projects except the Muzykyvka Public Wi-Fi (due to local vendor and CC issues). DOBRE completed 12 of the Cohort #2 projects by the end of September with most of the remaining schedule for completion by the end of November 2018. (A couple of more complicated construction projects may need to wait until spring.)

30 Expected Result 1.3 Local governments’ budgets and financial management systems implemented transparently 1.3.1 Financial Management Assessment USAID DOBRE Program held a press briefing to showcase the financial management assessment results, providing an overview of findings of the financial audit completed in 50 participating communities. More than 50 participants from international technical assistance projects, expert groups, and regional and national media outlets attended. During the event, participants discussed the problems that communities face in their financial management, cases of the most financially efficient communities, major issues and recommendations on strengthening financial discipline provided to communities, and presented next steps DOBRE will take to improve financial management in communities and engage citizen in public spending oversight. The USAID Mission Director along with MRD's Head of Local Governance Department attended the event and expressed the importance of the findings and possibility to scale the methodology out to Ukraine's communities. The event was live on YouTube, with a press release published on UCMC website and photos available on Flickr. FMA key findings can be accessed here. Thereafter, DOBRE met with U-LEAD about them conducting the Financial Management Assessment in non-DOBRE CCs. They would like to start in 100 CCs. They want to use the same basic methodology so DOBRE, U-LEAD and DOBRE consultants for the Cohort #3 FMA will meet to synchronize the methodology and approach before either effort begins. DOBRE will train the U-LEAD consultants if needed. If U-LEAD decides to use DOBRE consultants, they agreed to schedule in concert with DOBRE so it does not disrupt the FMA in Cohort #3. This will clearly scale up a DOBRE approach and extend a DOBRE best practice beyond our CCs and Oblasts. Another outgrowth of the FMA is CCs requesting regular consultations and guidance in implementing their Financial Management Improvement Plans. DOBRE started training DOBRE CCs on the 2019 budget process. The training provides practical advice and assistance in improving the skills and competencies of the CC representatives (mainly representatives of financial and accounting departments) in drawing up the budget for 2019. DOBRE gave an overview of methodological aspects of budget drafting and budget planning for 2019. This includes performance program budgeting method in budget planning and execution in CCs, how to increase capacity to prepare the necessary documentation within the budget process, how to find issues of attraction of financial resources and their effective use for the needs of local development, how to work with state funds (e.g. State Regional Development Fund, subvention on socio-economic development), etc. This helped all participants get a more comprehensive understanding of how to draft the local budget for 2019 in new conditions. In Kherson, CCs asked about opportunities to increase budget revenues of the CC, methodology of the budget program passport development, procedure for filling the budget program passport, report on implementation of the budget program passport, monitoring its effectiveness, ways of

31 making changes to the budget in the process of its implementation, participatory budgeting, etc. There was a good interaction between the training participants and resulted in Chaplynka and Muzykivska CCs sharing their best practices on budget documentation. In Dnipro, the most discussed questions during the training included methodological aspects of budget drafting and budget planning for 2019, new budget classifications in the performance program budgeting method in budget planning and execution in CCs, how to plan the intergovernmental transfers if the State budget will be not adopted in time, and, reporting on implementation of the budget program passports and monitoring their effectiveness. The participants fulfilled the practical task and presented proposals on increasing the revenues of local budgets from income tax, land tax and excise taking into account legislative restrictions of work with fiscal service bodies. In the second part of the training, participants discussed the main problems of planning the use of intergovernmental transfers and presented the budgets of the projects for State Regional Development Fund and subvention on socio-economic development. DOBRE partner Odesa CVU prepared analytical reports and recommendations based on the budget transparency assessment results after verifying all 50 assessments. They organized the first community-based meetings with the representatives of local government and finance department to discuss the assessment results and recommendations on increasing budget transparency process in Starobohorodchanska, Verkhnyanska Bilshivtsivska, Nyzhnoverbizka, Mateyivetska, Pechenizhyn, Biloberizka, Mykulynetska, Baykovetska, Ivanivska, Shumska, Vyshnevetska, Skalatska, Slobozhanska, Starosaltivska, and Merefyanska CCs. Odesa CVU experts together with RCSO representatives also started planning the information campaigns that will take place in all 50 CCs during October-November 2018. Based on earlier lessons learned, the “Partnership for Transparent Local Budgets” trainers along with DOBRE experts designed a financial integrity program for Cohort 1 and 2 communities that stared during the last quarter. The program includes two-day trainings for local government financial specialist, activists, including youth council members, on transparency of budget processes, public oversight of budget expenditures and participation in local budget management. During the reporting period, the Partnership trainers delivered training in all DOBRE communities, covering roughly 800 people. As a follow-up to the training, each community created a WG that designed a “Budget for citizens” – a document explaining critical budget information in a citizen-friendly format and plain language, as well as guides how people can participate in public finance management processes. By the end of the year, DOBRE printed Zavodska’s “Budget for Citizens”. There are five more are in the printing process, 17 are revising based on DOBRE feedback, and 15 are still in the design phase. Four communities are still finalizing text for their documents. The WGs, with RCSOs and Partnership assistance, will also take the lead in designing local information campaigns to engage more citizens in budgetary processes. Information campaigns will be rolled out in October 2018. The WGs will also apply the methodology of the budget transparency assessment (introduced during the training) to evaluate transparency, openness and inclusiveness of the budget planning,

32 adoption, expenditure and reporting in their CCs. Based on the results of the assessment, DOBRE will determine the most and least transparent communities in November 2018 during the “Transparent Budgets Gala Event”. DOBRE also took part in the presentation of results and plans of iMoRe (index for monitoring of reforms) managed by VoxUkraine. We discussed the main weaknesses, namely, the speed of reforms and possible legislative changes in the economic sphere. We also agreed that VoxUkraine would publish the results of the budget transparency assessment in DOBRE Hromadas on its resources. DOBRE also met with DESPRO on possible connection of DOBRE CCs to the GIS system on asset management DESPRO is developing for CCs. As agreed, DESPRO will work on possible solutions to expand the system for 10 DOBRE CCs by the end of 2018. 1.3.2 Financial Management Action Plans See 1.3.1. 1.3.3 Budget and Strategic Plan Tracking Each approved strategic plan includes a tracker for measuring the funding that is appropriated in the budget for the strategic goals priorities. Starting with the end of the 2018 budget year, CCs will update the tracker. This should happen beginning the last calendar quarter of 2018. 1.3.4 Gender Responsive Budgeting Following the first phase, NDI works with community leaders to establish a dedicated legislative and consultative body known as a gender budget group (GBG). The GBGs are composed of budget officers, local councilors, and other representatives of community leadership who have an expressed commitment to GRB and can apply concepts from trainings to guide other local officials and leaders through the development and implementation of gender budget initiatives. Whereas the first phase of the GRB training program focuses on the fundamental concepts of equitable gender budgeting, the more in-depth second phase is designed for GBGs to develop a greater understanding of the specific methodology behind GRB and to provide concrete opportunities for the growth and application of GRB-related skills and gender analyses. During this quarter, NDI completed three trainings in the fourth series of second phase trainings for communities from the first cohort, and 12 trainings in the second series of second phase trainings for communities of the second cohort for a total of 15 trainings. These training sessions covered gender mainstreaming in the formulation and implementation of local budget programs in the context of decentralization reform. In particular, participants discussed goal-oriented management, tools for measuring the effectiveness of local budget programs, financial literacy, and gender-sensitive indicators.

33 As a result of these trainings, GBGs committed to analyze existing and future social and economic development programs in their own communities to identify and address resource allocation inequalities that fall along gendered lines. For example, after an in-depth training held in Mateyivetska CC, Ivano-Frankivsk Oblast in September, the community's GBG assessed its after- school activities for children. Inspired by a previous GBG training, managers of the community library already conducted an assessment to identify and address children’s needs. Since the completion of the assessment, the library has seen an increased number of youth visitors. After a consultation held in August and an in-depth training held in September in Bilshivtsivska CC, Ivano-Frankivsk Oblast, the community’s GBG incorporated a step-by-step plan on gender mainstreaming into its CC program documents. In particular, the group is focusing on its education and social security programs, and both the CC mayor and deputy mayor expressed their support of the GBG’s work. In addition, other GBGs have committed to analyzing their tourism, culture, education, social security, youth, and economic development programs to include gender-sensitive practices. NDI also began developing a gender-sensitive community management manual for community leaders interested in integrating gender-sensitive practices into their activities. The manual will focus primarily on gender responsive budgeting and include best practices and lessons learned based on NDI’s previous experiences working with GBGs in Ukraine. Objective 2: Improved Citizen Engagement and Oversight in Local Governance Expected Result 2.1 Citizens more active in local governance processes 2.1.1 Assessment of Partner CC Engagement Practices Activity completed. 2.1.2 Inventory of Public Meeting Spaces Inventory completed. DOBRE procurement of the identified improvements continued during the quarter and will continue into the next quarter(s). 2.1.3 CBO Inventory As reported earlier, DOBRE’s partner RCSOs adapted Global Community’s “Appreciative Review of Capacity” (ARC) methodology to the Ukrainian context, based on their experience of working with local activists and CSOs. As a result, a customized ARC Lite assessment tool measures 28 competencies of a CSO in organizational management, human capital, external relations, and project & services delivery. In September 2018, DOBRE’s partner RCSOs assessed 104 local CSOs or informal initiative groups using Appreciative Review of Capacity (ARC) methodology. Of those 104, 38 organizations/ groups went through ARC assessment for the second time. Among them, 76% demonstrated improved organizational capacity as shown by increase of their total ARC score – from 44.5 in average in 2017 to 56.6 in average in 2018. These

34 scores still do not reach even 50% of the maximum ARC score of 135, confirming that local organizations are still on the very basic level of capacity and need assistance and guidance from more mature regional organizations. The remaining nine organizations/groups showed lower scores or stayed on the same level as last year. Staff turnover and lack of opportunities to find resources for their initiatives affects their ability to learn by doing and acquire new competencies. A majority of the local CSOs/groups that raised their organizational capacity demonstrated a modest degree of improvement since past assessment (plus 8.6 points in average in their total ARC score), while Tsentr Vdalyh Initsiatyv Trykrativtsiv "Tsvit" in Oleksandrivska CC raised its score by 31 points having grown from the initiative group assessed last year. ARC total index scale has 27 as its minimum score and 135 as maximum score. The remainder new local civic organizations or initiative groups completed their baseline assessments this year (41 from the Dnipro oblast, 6 – from Mykolaiv, 6 – from Ivano-Frankivsk, 3 – from Kharkiv, 4 – from Kherson, 3 – from Kirovograd). In all oblast except Dnipropetrovsk, these new organizations started some activity and became visible as a result of community mobilization efforts taken by RCSOs. In Dnipropetrovsk, the RCSO conducted the assessment only for the first time. In the course of assessment, local CSOs and initiative groups developed their vision of an ideal organization, determined capacities that need improvement, and identified priority areas for the upcoming year. RCSOs will assist local CSOs to develop their organizational potential according to the data generated by ARC assessment. 2.1.4 Citizen Participation Workshops DOBRE RCSOs continued civic engagement activities in all oblasts with both the Cohort #1 and #2 communities. DOBRE will share the most prominent and recent parts of the RCSOs oblast activities below: Dnipro – The RCSO organized seminars on citizen-government cooperation mechanisms in the following CCs: Mogylevska CC convened 16 activists who decided to work on establishing a public council and initiating “Public Consultations”. Vasylkivska CC convened 16 activists of working group that decided to work on participatory budget and youth council establishment In Pokrovska, 14 representatives met to discuss regulations on e-petitions and public consultations. In Mirivska, 17 participants decided to establish public council and a public consultations mechanism. In Verbkivska, 17 activists of a working group convened and decided to work on participatory budget and public council establishment. In Pokrovska, they held two seminars and discussed regulations on public consultations and planned the first steps for establishing a youth council. Ternopil – In Shumska CC, the RCSO provided a consultation on the implementation of the local initiative project “The establishment of a public space “Beehive”. RCSO experts also facilitated a working meeting on information campaign about participatory budget in three settlements of Ivanivska CC. The participants decided to provide training on project design for

35 local people to be able to submit quality projects. Local initiatives projects have started their activity in Skala-Podilska, Husyatyn, Ivanivska and Terebovlyanska CCs. The RCSO consulted local CSOs on local initiatives implementation process. Four activists of local CSO “Prosvita” from Zolotopotitska CC discussed challenges that community met during the project implementation process and together found solutions and ways how to speed up the process. RCSO experts provided consultation on local initiative implementation process and reporting procedures for local CSO “SAM” from Terebovlyanska CC. In Husyatyn, activists of local CSO “Nadzbruchanskyi Krai” discussed implementation of their initiative “Public Internet- radio”. Consulted activists of LCSO “Skalata” on results of implemented project “Skalatski harvesting” and reporting procedures. In Baykovetska CC representatives of LCSO “Faina Hromada” received information on the financial report preparation for the local initiative. They also discussed key issues to be include in their community presentation during the CC festival on September 30. The RCSO visited to Velykohaivska CC to discuss implementation of the events for forming positive perceptions of the community and overview information campaigns on the use of civic participation mechanisms. The RCSO organized meetings in CCs to assist in preparation for the Community Fest in Ternopil. In Mykulynetska, Five community representatives discussed the requirements for the community presentation during the forum and agreed on a community cohesion event that is scheduled for the late autumn. In Zavodska, eight representatives of the organizing committee for the Communities Festival discussed the current situation on their preparation. The committee checked out the Fest venue and identified the security measures for the event. The RCSO met Vyshnevetska activists to discuss preparation for the Community Fest in Ternopil and promoting the use of the civic participation mechanisms in community. Representatives of LCSO “Tsvit” and local government representatives determined the participants list and the next preparation steps for the Fest. In addition, participants discussed participatory budget implementation and next steps for the local initiatives project “Cherry Alley”. Ivano-Frankivsk - The RCSO provided consultations to the local CSOs and civic initiatives on the local initiatives project implementation to achieve more qualitative results. The RCSO together with Youth council leaders from Pechenizhyn and Verkhnyanska presented best practices from youth activity in these communities within the DOBRE program during the “Activism and collaboration for the community development” Forum in Zaporizhia. Young activists spoke on the “Youth - for the community, community - for youth” topic. In addition, the RCSO moderated the workshop on “E-governance - how to increase information transparency and openness of local governments?” sharing DOBRE experience with non-DOBRE regions. The RCSO also assisted local CSO “Molodiatynski opryshky” organize an opening event for the Mobile Cinema project "The Only One Sky" in Pechenizhyn CC. DOBRE funded the idea within the local initiative projects contest and they will implement it during the next two months. Find more information here.

36 Kharkiv – The RCSO assisted local activists from Starosaltivska to organize their local initiatives project “Saltiv Fest”. The Fest program included setting up an ecological scene, cultural activities and informal communication between people and local authorities. Pictures from the event were published on Starosaltivska’s CC Facebook page. The RCSO also visited a participatory budget committee meeting in Merefyanska CC. The committee reviewed submitted applications and approved 32 project proposals out of 37 for the next selection stage. They also helped organize "Motion Fest" - festival of extraordinary sports in Merefyanska CC. The festival promoted a healthy lifestyle among the community residents. More than 60 youngsters participated in the Fest. More pictures were posted on Merefyanska CC’s Facebook page. The initiative group of Fest organizers continued working with youth by convening activists and deciding on a youth project. RCSO experts also facilitated a meeting of young activist from Merefyanska CC and the coalition of regional initiatives “TOLOKA”. The participants decided to conduct a dancing festival on October 14. Kherson – The RCSO provided consultations on preparation of information materials and articles. Local CSO “Muzychany” team learned how to formulate the main idea of an article and to structure news. Chaplynka CC activists of local CSO “Liha Sotsialnykh Pratsivnykiv” discussed information channels they currently use, prepared an information plan for the project activities and identified potential success stories to be disseminated in their community. Askania Nova: four representatives of local initiative learned how to formulate the main idea of an article and to structure news. Kochubeyivska: Activists of LCSO “Moia Hromada – Mii Dobrobut” discussed information channels they already use, prepared an information plan for the project activities and identified potential success stories to be disseminated in community. The RCSO experts stayed and visited “Moia Hromada – Mii Dobrobut” to analyze the implementation of their organizational development plan. The experience with the media plan for the current project stimulates CSO to establish a communication strategy for organization in general. Also, RCSO experts completed ARC assessment for 2 local CSOs in Pershokostiantynivka village of Chaplynka: “Shkilnyi Dim” and “Krasa Tavrii”. Four local initiatives projects have started their activity in Chaplynka, Kochubeyivska, Muzykivska and Askania-Nova CCs. The RCSO also assisted local CSO “Chaplynska Liha Sotsialnykh Pratsivnykiv Ukrainy” on their ARC organizational capacity assessment. Five CSO activists participated in the assessment process. They also visited Muzykivska CC to observe the establishment of their Youth council and the election process for youth council member positions. As a result, nine youth activists were elected and Veronika

37 Hushchina became the Youth council head. CSO “Muzychany” started an information campaign within the local initiatives project “Let’s take care of the environment together!” Under the project, activists will transfer ten 120L-tanks for segregated waste collection to Muzykivska and Shidnenska schools of the community. You can watch a short promo video here. Kirovograd – The RCSO organized Touristic Bar Camp in Malovyskivska CC. The main topics of event: media, tourism, community development, which in combination increase the tourist attractiveness of the territory. The Bar Camp format ensured informal communication with experts in the field of practical tourism. Participants also had an opportunity to learn interesting approaches to new media and ethno-expeditions, to deepen their knowledge about modern approaches to the development of domestic tourism. More information and pictures here. They also organized a gamification workshop in Novooleksandrivska CC. Participants learned how to set up the community development strategies with the help of gamification technologies. During the event, activists played the World of Communities Game. Mykolayiv – The RCSO organized a workshop for 17 activists of Domanivska CC on “How to organize the shooting process: from the distribution of functions to the broadcasting” by Andriy Kulykov. The participants learned about the shooting of plots, plots assembling, preparation of studio texts and delivering materials on air. You can watch one of the videos produced by the participants here. The RCSO also conducted training on “Leadership and facilitation in the community. Design thinking” for 23 representatives of CCs. The participants learned about professional leadership skills, self-assessment of leadership potential, negotiating as an important leader tool, and as well, activists designed action plans for the further activation and unification of the CCs people. You can find more information here. They also visited Oleksandrivska CC to discuss participatory budget implementation process with the CC head. They also provided a consultation on local initiatives project implementation to the activists of local CSO “Tsvit”. 2.1.5 Technical Assistance to Participation Methods RCSOs provided technical assistance to communities in determining, drafting regulatory documents, and adopting community participation mechanisms. In total, 77 participation methods were implemented by CCs with the following breakdown:

Engagement mechanism Number Community Youth Councils 30 Prysyvaska, Askania Nova, Starosaltivska, Rohanska, Merefyanska, Halytsynivska, Mostivska, Kamyanomostivska, Domanivska, Prybuzhanivska, Oleksandrivska, Bashtanka, Mateyivetska, Nyzhnoverbizka, Bilshivtsivska, Biloberizka, Starobohorodchanska, Pechenizhyn, Verkhnyanska, Slobozhanska, Pokrovska, Sofiivska, Kochubeyivska, Chaplynka, Baykovetska,

38 Terebovlyanska, Slobozhanska, Velykohaivska, Buzka, Hrechanopodivska

Participatory Budget 27 Kochubeyivska, Muzykivska, Starosaltivska, Rohanska, Merefyanska, Ivanivska, Mykulynetska, Zavodska, Mostivska, Domanivska, Oleksandrivska, Bashtanka, Biloberizka, Starobohorodchanska, Pechenizhyn, Verkhnyanska, Apostolivska, Tsarychanska, Zelenodolska, Sofiivska, Vasylkivska, Bobrynetska, Prybuzhanivska, Shumska, Skalatska, Vyshnevetska, Velykohaivska E-petitions 10 Merefyanska, Velykohaivska, Zolotopotitska, Terebovlyanska, Shumska, Ivanivska, Baykovetska, Mykulynetska, Skala-Podilska, Bobrynetska Budget Reports Data Open to 8 Rohanska, Merefyanska, Terebovlyanska, Public (online) Baykovetska, Skala-Podilska, Mykulynetska, Skalatska, Vyshnevetska General Meeting of Residents 2 Novoukrainska, Malovyskivska Public Hearings 2 Bobrynetska, Novoukrainska Community Input to Draft Budget 2 Terebovlyanska, Rohanska Local Initiative 1 Rohanska Public Council 4 Malovyskivska, Novoukrainska, Husyatyn, Zolotopotitska

77

In March 2018, DOBRE provided technical assistance to RCSOs in designing a mechanism of community mobilization projects contest for local CSOs and initiative groups. Based on the lessons learned in working with local organizations, the contest provides local organizations with an opportunity to mobilize citizens to implement local initiatives that meet community needs in the following areas: community integration and cohesion building; launch of new services and practices (recycling, social workshops, garage sales, local festivals etc.); establishment of public spaces; environment protection and ecological thinking; tourism; new media; conceptualizing and prototyping of unique products; information and awareness campaigns, including those on community identity; cultural and creative projects; learning from role models and successful

39 people. DOBRE helped RCSOs determine the rules, selection procedures, and draft application package. In addition, RCSOs received training on sub-granting and administering of contest in line with USAID regulations and best practices. The contest was announced in April 2018, with projects up to USD 5, 000 implemented until December 2018. All seven RCSOs tasked with sub-granting successfully launched calls for applications, completed project evaluation and selection, and assisted local groups to design and implement their projects. DOBRE set up an ARC score based policy of the applicant’s capacity assessment and put in place procedures of supporting non-registered CSOs through a direct procurement mechanism. These efforts yielded 43 projects: one in Ternopil oblast, two in Kirovograd, three in Kharkiv, four in Kherson, six in Ivano-Frankivsk, eight in Mykolayiv, and nine in Dnipro. By the end of September, six projects are completed, and others are scheduled to be completed by the end of the year. The project themes cover solid waste management, sports services, new community media, community identity building and cohesion, and public spaces. They support the work of other DOBRE components by engaging citizens in relevant thematic activities. 2.1.6 Youth Engagement Forums DOBRE convened 60 youth activists from partner communities for the five-day youth leadership school DOBRE-LID (Leadership, Ideas, Democracy) in partnership with USAID ENGAGE, SACCI Programs, and Ministry of Youth and Sports. During the training sessions youth leaders gained hands-on experience in good governance and an integrity approach towards it, did first steps in governance-related career paths through DOBRE-designed simulation of the model CC council work. Youth learned why and how they can engage in implementing or improving governance practices in their communities, generate and design ideas leading to projects for community development, providing them with a chance to become genuine local leaders who are ready to take on managerial positions in their communities. Participants developed a Program for Solid Waste Management, an action plan to improve service sanitary standards for the local market, regulations on the conflict of interests, an anti-corruption program for CC, an a youth entrepreneurship program. At the end of day five, youth leaders pitched their ideas to a jury for the DOBRE Program to support. The jury selected the following projects: Local Deputy Incubator Program in Halytsynivska CC, School Scientific Lab in Kamyanomostivska CC, Community Art Space in Bilshivtsivska CC, Center of Social Innovations in Starobohorodchanska CC, Recreation Park for Local Festivals in Skala-Podilska CC, and Youth Makerspace in Pokrovska. A youth media team, covering the event and working alongside the participants, issued a press release and a video about the school. 2.1.7 Youth Engagement Mechanisms Support

40 DOBRE RCSOs continued youth engagement activities in all oblasts with both the Cohort #1 and #2 communities. DOBRE also convened 43 participants from DOBRE communities to present lessons learned from introducing youth engagement mechanisms. Since many communities, including non-DOBRE ones, continue trying to learn from DOBRE-initiated YLCs, the program brought DOBRE Kherson RCSO representative along with heads of Starobohorodchanska YLC and the Youth Worker program coordinator to speak about challenges and wins of youth local councils. Speakers put forward three cases and offered solutions that participants voted on. Discussion set high standards for YLCs operation starting from surveying youth needs to advocating youth policies funding and implementation, that both DOBRE and non- DOBRE communities are willing to follow. The event brought together over 1,500 young people, with almost 40% of them being from amalgamated communities across Ukraine. DOBRE participated in the Youth Capital selection panel and co-organized the event along with the Lviv City Council and Ministry of Youth and Sports. DOBRE also convened representatives of the Ministry of Youth & Sports, local government associations, U-LEAD, UNDP, Oblast youth departments, youth activists and DOBRE and non-DOBRE CCs that are champions in youth policy implementation, to develop a step-by-step instruction on how to organize youth services provision in CCs based on DOBRE experience of working with youth and local governments. Participants built on PMCI’s criteria of reaching milestones in youth policy implementation, national youth policy goals, and lessons learned by all stakeholders. As a result, participants drafted a roadmap of youth services provision consisting of eight steps local governments should complete to have relevant services in place. These include: adoption of youth development strategy, introducing youth worker position (or department), creation of youth advisory body (youth local council), developing youth target program with operational plan and budget, launch of youth-relevant services, implementation of youth workforce development policy, introduction of financial support mechanisms for youth, and launching a two-tier monitoring and evaluation of youth policy implementation. Each step includes specific processes CCs need to complete and documents they need to adopt. The roadmap will be packaged as info-graphic and used by all above mentioned stakeholders in their work with communities. U-LEAD will use the roadmap at their core trainings on community cohesion planned to be delivered to all amalgamated communities. The Ministry of Youth & Sports will disseminate it as recommendations to follow by youth departments. Local Government Associations will share it with all their members. DOBRE plans to have a finalized roadmap by mid-October.

41 DOBRE plans to implement a Local Officials Incubator “U-GO” (U-Government Officials Program) – a program for young people from consolidated communities who have leadership potential and/or some experience in bringing positive transformations to their communities by initiating or completing community development projects or advocating for changes. In August, DOBRE opened a call for applications from organizations with expertise and experience in skill- building and mentorship programs in the areas of good governance, policymaking, civic leadership, work with constituencies, advocacy, and campaigning on the local level. DOBRE chose the CSO “Center for Community Growth” to implement the U-Government Officials (U-GO) Program. DOBRE will launch the U-GO Program in December 2018. DOBRE also organized a coordination meeting for the training team selected for the “Youth Worker in Amalgamated Communities” Program. The participants reviewed the goals of the program, implementation process, reporting requirements, and agreed on the schedule for the first round of training in November (see Master calendar). In addition, the trainers suggested amendments for the Basic Youth Worker training in CC to better reflect training needs, community context, and youth policy vision. 2.1.8 CBOs develop advocacy campaigns Nothing to report for the quarter. 2.1.9 Community Level Grant Program See 1.2.2 above. Expected Result 2.2 Citizen anti-corruption oversight implemented at the local government level 2.2.1 Monitoring and Anti-Corruption Training for CSOs and YLCs Please see more about the Transparent Budget initiative in 1.1.3 above. DOBRE and partner Odesa CVU completed needs assessment for corruption prevention tools and ended up with the eight most popular tools that DOBRE CCs will implement: - 23 Anti-corruption program - 13 Preventing and resolving conflicts of interest - 6 Supervisory boards for communal enterprises - 6 Public consultations - Decreasing threshold for procurement using Prozorro system - Anticorruption expertise - Competitive selection for local government positions - 1 Anti-corruption Public Council

42 2.2.2 CBOs and YLCs Use New Monitoring Tools Find a more detailed description of this indicator in 1.1.3 above and 2.2.4 below. 2.2.3 Civic Training on Gender Responsive Budgeting DOBRE detailed the activity in 1.3.4. In addition, NDI cooperated with different Western technical assistance providers in Ukraine can leverage the relative strengths and talents of each group and create a more unified front in the push for reform. In the spirit of cross program coordination, on September 6 and 7, NDI participated in a training on gender responsive planning organized by the Ukraine – Local Empowerment, Accountability and Development Program (ULEAD). Along with representatives from ULEAD, other partners included UN Women and the Gender Responsive Budgeting (GRB) Project. At the training, NDI and its partners shared best practices for gender mainstreaming in the context of decentralization reform to encourage cross-project cooperation and exchange experience. Participants included ULEAD municipal financial consultants for budget officers in consolidated communities and oblast and rayon administrators. The goal of the training was to enhance participants’ knowledge of gender responsive budgeting (GRB) and to teach them how to apply GRB principles into budget formulation and implementation in order to best address the needs of all citizens. During the training, NDI conducted a session on the benefits of gender responsive budgeting and presented successful gender budget initiatives from DOBRE consolidated communities. As a result of the training, participants learned that gender responsive budgeting can be successfully implemented at the CC level. In conjunction with the Vice Prime Minister’s Office and UN Women, on September 17 and 18, NDI launched the first of a series of regional meetings connecting representatives from state ministries, executive office, state administrations, local governments, and international and nongovernmental organizations in Dnipro. The meeting, chaired by the Vice Prime Minister of Ukraine, Ivanna Klympush-Tsyntsadze, focused on gender equality policy. As a part of the meeting, NDI held a meeting to discuss gender responsive budgeting as an instrument of gender policy. ” According to the Vice Prime Minister’s Office, 140 people participated in the meeting, and of this total, participants in past NDI programs included representatives from 13 CCs and several local NGOs, including Yevhenia Velegura, Council Secretary of DOBRE partner Tsarychanska CC and an alumna of the Women’s Leadership Academy. During a joint session with the Vice Prime Minister and other government officials, Velegura presented the steps Tsarychanska CC took in forming a gender-focused caucus (GFC) dedicated to promoting equal political representation and encouraging girls’ enrollment in STEM programs. She also shared the success of her WLA microproject that created a waiting room in Tsarychanksa hospital. 2.2.4 Creation of CCs Online Platform DOBRE Program partner SocialBoost announced creation of a new e-platform for communities’ usage, Dosvit. The new platform will allow operation of community websites while local managers and residents can get easier access to development investment tools and civic participation mechanisms. After agreeing on the training program and schedule, SocialBoost first presented

43 the DOSVIT platform in Starosaltivska with the participation of regional journalists. UCMC promoted the event via Facebook, released the article and announced the next presentations. They then held the presentation in Bashtanka CC, you can find photos here. They then held the training in Muzykivska CC. Three product environment and domains are deployed muzykivska.dosvit.org.ua, stsaltiv.dosvit.org.ua, bashtanskaotg.dosvit.org.ua. They also finished all application alpha versions (both front end and back end) for DOSVIT. SocialBoost also presented the DOSVIT platform during an LED event in Dnipro. SocialBoost updated and sent to CCs the DOSVIT moderator’s instructions “How to Set Up the CC Website”. SocialBoost also sent out the latest issue of the DOSVIT-digest (materials about DOSVIT's development progress for pilot CCs) to system moderators. SocialBoost also crated and sent to CCs recommendations for their new websites based on an internal audit. They also installed the Enterprise Registry app for pilot CCs and created and sent the instruction “How to use Enterprise registry app”. They developed the promo website for Dosvit platform http://dosvit.org.ua, continued testing, modifying and upgrading the DOSVIT platform and developing apps and tools. By the end of the year, SocialBoost finalized the first DOSVIT site with the domain in zone gov.ua. Sofiivska CC published its official website using the platform. They also met with the representatives of the MinRegion to discuss details of the Knowledge Management Platform that SocialBoost plans to add to the DOSVIT based on a MinRegion request. DOBRE partner SocialBoost also launched the “Hromadsky Project” IT system in Mykulynetska. They also collected feedback about the Open Budget application’s Alpha version from Sofiivska and Shumska. They waited on feedback from the other CCs to start the app's demonstration. Before the end of the year, Kamyanomostivska, Apostolivska and Nyzhnoverbizka CCs published Open Budget Apps on their respective official websites. Expected Result 2.3 Greater citizen awareness of local government reforms 2.3.1 Participate in Donor Communications Group DOBRE, through its implementing partner UCMC, actively participates in the Communication Coordination Working Group, organized by DESPRO on a weekly basis. This results in a joint effort to build and unify any Communication Strategy on decentralization. It allows for coordinated messaging and branding. The meetings also provide the possibility for coordination with the other decentralization implementers like U-LEAD. 2.3.2 Implement Comprehensive Communications Strategy DOBRE partner UCMC finalized development of the DOBRE Decentralization Communications Strategy earlier in the year. Since then, they continued implementing it. In addition to activities below, DOBRE partner UCMC conducted a press briefing under the "Communities Spokesperson" activity with the head of Merefyanska CC Veniamin Sitov. UCMC promoted the briefing by announcing at FB page and website, and releasing a video - UKR and ENG. We also live-streamed the briefing at DOBRE FB page, published the press release, promoted it through the Decentralization.gov website, and posted on the Facebook page. Also, for a broader audience

44 reach, UCMC agreed with TV Channel RADA on the broadcast of the Community Spokespersons briefings. UCMC also conducted a "Communities Spokesperson" press briefing with the head of Sofiivska CC Petro Sehediy. UCMC videotaped the event - UKR and ENG, live- streamed. They also released an article at UCMC website and promoted it through the Decentralization.gov website, as well as via the FB page. DOBRE partner UCMC continued working closely with regional media to highlight the decentralization reform accomplishments out in the regions and show by example how local self- governance reform changes lives of regular citizens on a daily basis. In addition to activities reported earlier, most recent developments include: UCMC and DOBRE hosted a Media tour for 16 journalists from Mykolayiv, Kherson, Kirovograd, Dnipropetrovsk, Kharkiv, Ivano- Frankivsk and Ternopil Oblasts to Starosaltivska and Merefyanska CCs. The journalists observed how these Kharkiv CCs developed and changed under decentralization. In Starosaltivska, the CCs plans to open in October a modern Center for providing administrative, social and legal services. Also, for the first time, the CC, because of increased budget, bought communal equipment and introduced separation of solid waste. Merefyanska shared the experience of creating housing cooperatives and corporations (experience that is important to distribute), as well as told about mechanisms for increasing revenues to the budget, and establishing cooperation between the government and local entrepreneurs. UCMC also conducted a press tour for regional journalists to Bashtanka CC to highlight the Chupakabra rock festival supported by DOBRE. Promoted via website and Facebook. DOBRE and partner UCMC will continue doing the press tours in the coming quarters. These and other activities will continue in the coming quarter, as well as special videos and programming about the decentralization reform. 2.3.3 TV Show on National TV Channel Activity completed during the previous quarter. This was by far one of the biggest projects for implementation from the Communications Strategy. The TV show that managed to bring information about the decentralization to the greater public in a fun yet educational way. DOBRE received Hromada for a Million TV series with English subtitles and uploaded to YouTube. In the previous quarter DOBRE and partner UCMC started negotiations with 1+1 TV Channel on the possibilities of continuation and scaling Hromada for a Million TV show and will do a continuation in 2019. 2.3.4 Training on Decentralization Communications for Partner CCs Activity completed for all seven DOBRE target oblasts. The team of trainers are now on to distance mentoring and support through emails and Facebook group. DOBRE and partner UCMC are thinking to do another wave of trainings in the coming quarters, targeting communities willing to create and/or develop local media or communications channels of different types. This quarter trainings on communication strategies development started, Merefyanska and Starosaltivska CCs

45 in Kharkiv region already received their trainings. Training for 20 selected communities will continue in the coming quarter. 2.3.5 TEDx-Type Events Nothing to report. NDI will conduct two TEDx-type events/media marathons in the third year of the program. These will center on a key theme or idea and bring together experts to present their perspectives on the topic to both a live audience and a wider, national media market. Current plans call for an event in Kherson in late October 2018, and an event in Ivano-Frankivsk in March 2019.

V. PROGRESS AGAINST TARGETS Describe key achievements during the reporting period. Use the attached sample performance data table (Table 1) to convey progress toward the achievement of targets for performance indicators included in your MEL Plan. Duplicate Table 1 for each indicator, as needed. During this year, DOBRE conducted a DQA for indicators stemming from the DOBRE household survey, as well as a mix of outcomes and outputs indicators that count people and based on data from activity sign-in sheets. Taking into account the results of this work, DOBRE amended PIRS for the part of its indicators and submitted for USAID approval in the revised Monitoring and Evaluation Plan. Moreover, because of the DQA activity, DOBRE improved its monitoring system to better control for double counting of event participants, checking for doubles not only in the partner data, but also in between activities of different partners reported under the same indicator. As a result, DOBRE introduced extra procedures of double counting control for all following reports and for the past reported data as well. As a product of this exercise, this report presents revised numbers for FY2017 for indicators 1.5, 1.18, 2.2, 2.6, 2.7, 2.8, 2.9, 2.13, 2.14 (in Part V. Progress Against Targets). DOBRE also fine-tuned its monitoring approach to include DOBRE training on gender-responsive budgeting, previously fully reported under the indicator 2.7, to the indicator 1.18 that counts officials trained in core financial functions, leaving only non- officials to be reported under 2.7. We based the revised FY 2017 numbers for these indicators presented below on this amended approach. Out of 39 DOBRE indicators, seven measure citizen attitudes and perception of changes in different areas of community life, to which DOBRE contributes through its key components activities. The data come from household surveys – DOBRE plans three surveys during the program’s life. Hence, the data for these seven indicators are not available for the reported period, which is the program’s second year. The mid-term survey will yield these numbers for the next Annual Report.

46 The company hired by DOBRE completed the household survey for Cohort #2 and the comparison group. Based on the data available for both Cohorts #1 and #2, DOBRE held an internal target setting exercise for the indicators that use the household survey data as its source. The exercise involved key DOBRE technical staff and target setting based on their expertise and knowledge of partner communities, DOBRE Program plans, as well as other influencing external factors to predict better future changes against the indicators. In setting the targets we assumed that critical assumptions, recognized as likely to affect the achievement of results in DOBRE Monitoring and Evaluation Plan, will be favorable for the Program. However, the Program already observes some issues affecting our assumptions. This includes the GoU not passing the final legislation and constitutional changes that institutionalize decentralization, and an uneven level of commitment to work with USAID in some DOBRE CCs. Moreover, we set targets based on the next local elections, as well as anticipated voluntary/forced extensions of CCs will not influence significantly the program activities and people’s perceptions of the Program’s results. DOBRE conducted the second PMCI assessment in all 50 Cohort #1 and #2 CCs this year. DOBRE trained CCs to utilize it as a self-assessment tool so they can continue tracking progress after the program ends. In addition to tracking progress of each partner CC, DOBRE will use the PMCI to make Incentive Grant awards in Years #4 and/or Year #5.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1.1. Number of Consolidated Communities that improve their capacity to effectively manage 0 N/A N/A 50 50 resources and services that respond to community priorities (annual)

DOBRE conducted the Participatory Municipal Capacity Index (PMCI) assessment together with CC officials this year and measured an increase of PMCI scores compared to the previous year. All 50 Cohort #1 and #2 CCs demonstrated improvement of their capacities as measured by their overall PMCI score. CCs received a mean score of 35.68 on the PMCI (maximum possible score - 100), an average total increase of 13.7 compared with the baseline score. This year the PMCI scores ranged from 62 to 22. The median was 36. The smallest increase was three, and the largest was 34. DOBRE found no significant difference between Cohorts - score for Cohort #1 – 36.16 (this year’s increase – 13.52) and for Cohort #2 it was 35.2 (increase – 13.88). The eastern/southern

47 CCs continued scoring higher (Cohort #1 – 38,2, Cohort #2 – 35.63) than the western CCs (Cohort #1 – 33.1, Cohort #2 – 34.44). The Index comprises four competencies, where 25 is the maximum score for each. This year CCs averaged 12.18 on Leadership & Management, 9.14 on Financial Management and Budgeting, 8.4 on Service Delivery, and 5.68 on Community Participation. DOBRE CCs demonstrated growth in all four competencies. In Leadership & Management average increase was 4.28 scores; Financial Management and Budgeting – 4.08; Service Delivery – 3.08, and in Community Participation – 2.26. DOBRE introduced many improvements that affected the scores for each indicator. However, Community Participation still shows the greatest comparative need. DOBRE will continue to increase the scores in all competencies based on a roadmap developed in conjunction with the CC. Each year DOBRE will revise the PMCI scores based on the latest assessment to chart progress. DOBRE annually sets a target for each CC to increase its PMCI score.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1.2. Number of successful project applications approved by the 17 10 0 38 3 Regional Development Fund (annual)

DOBRE established a baseline of 17 successful applications (from six CCs) in 2016 to the Regional Development Fund from Cohort’s #1 and #2. Successful applicants included Kochubeyivska, Starobohorodchanska, Bobrynetska, Malovyskivska, Velykohaivska, and Verbkivska. This indicator counts only RDF project applications delineated and articulated in strategic plans of CCs, submitted to State Regional Development Fund with status “approved by Act of Cabinet of Ministers”. In Year 2 the RDF only approved three applications from two DOBRE CCs – Terebovlyanska of Ternopil oblast (2 applications) and Nyzhnoverbizka of Ivano-Frankivsk oblast (1 application). Although DOBRE better prepares CCs for RDF project applications as an indirect result of participation in DOBRE trainings and directly through mentoring during the application process, the awards process in each Oblast remains opaque and highly political, with many external factors beyond DOBRE control influencing it. Therefore, many DOBRE CCs simply choose not to apply to the RDF. They think they cannot win awards. (Thus, we consider this indicator not an appropriate measure of E.R. 1.1 and propose to eliminate it in the updated version of the MEP submitted to the mission.) DOBRE is working with each Oblast (Administration and Council) to encourage greater co-funding of initiatives supported by DOBRE and its partner CCs.

48 Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1.3. Percentage of Strategic Plans that contain activities and strategies to include women and vulnerable 12% 66% 100% 100% 100% populations in local governance (annual)

In Year II, the program fully developed Strategic Plans for 22 communities of Cohort #2 and 3 Cohort #1 CCs, all of which contain various actions and strategies to include women, youth and vulnerable groups in the process of community planning, access to information, and service delivery. Among such strategic actions, many CCs developed a list of facilities suitable for organizing family, recreational and entertainment activities, with active participation of all residents of Hromada. Strategic plans of most CCs contain creating conditions for easy and safe access to public facilities for young parents with carriages, and people with disabilities to facilitate their participation in the life of Hromada and in local governance. Vasylkivska CC plans to adapt education and training buildings to the needs of people with disabilities in three settlements of the CC. In Nyzhnoverbizka and Mateyivetska CCs, they plan to construct sports fields with synthetic surfaces and multi-functional sports fields for various age groups due to Strategic plan. Nyzhnoverbizka CC will modernize libraries with better access for people with disabilities. Halytsynivska CC plans to open a cinema for young people. Verbkivska, Shumska, and Velykohaivska’s strategic documents plan to develop e-services in the community to provide easier access for people with disabilities. Mateyivetska CC developed a plan to include introduction of gender awareness classes in educational institutions. Planning their development in economic, health and culture sectors, CCs included in their strategic plan a wide range of measures to represent interests of all population groups. These include measures for combatting unemployment in most CCs. They contain promotion of entrepreneurship for different groups of people, organization of workshops for women, youth, disabled people in startup development, business consultations, facilitation of self-organization for people with disabilities and those who help them within the Hromada, bringing together various social groups. The Sofiivska Strategic plan includes a vaccination program for all groups of CC residents, opening a fitness center, and launching a club for young parents. Halytsynivska, Sofiivska and Vasylkivska CCs all included plans to open creativity centers for children and youth. Velykohaivska plans to establish a modern reading and entertainment center for youth, while Nyzhnoverbizka will provide school laboratories with equipment.

49 Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1.4. Number of Strategic Plans developed using 5 25 21 50 25 inclusive/participatory strategic planning methods (annual)

DOBRE completed strategic plans for 25 CCs – 22 Cohort #2 CCs and three more for Cohort #1 CCs (Pechenizhyn, Baykovetska, and Mykulynetska). By the end of the reporting period, all 25 communities officially adopted their strategic plans. They include six CCs from Dnipropetrovsk oblast (Zelenodolska, Sofiivska, Vasylkivska, Hrechanopodivska, Mirivska, Verbkivska), four CCs from Ivano-Frankivsk oblast (Bilshivtsivska, Nyzhnoverbizka, Mateyivetska, Pechenizhyn), five CCs from Mykolaivska oblast (Domanivska, Kamyanomostivska, Mostivska, Halytsynivska, Buzka), seven CCs from Ternopil oblast (Shumska, Skalatska, Vyshnevetska, Zolotopotitska, Velykohaivska, Mykulynetska, Baykovetska), two CCs from Kherson oblast (Chaplynka and Prysyvaska CCs), and Starosaltivska CC from Kharkiv oblast. Three Cohort #2 CCs – Malovyskivska, Novoukrainska and Terebovlyanska – already had acceptable strategic plans (developed by other donors), and thus did not need DOBRE assistance. DOBRE is below the target for this indicator as the target for the indicator was set for Cohort 2 and 3 Program activities. USAID postponed Cohort #3 until FY 2019.

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018)

1.5. Number of persons trained in inclusive/participatory strategic 46 500 2411 250 70 4288 planning

DOBRE partner FRDL continued supporting DOBRE CCs in practicing participatory strategic planning during this reporting period. Over 150 activities took place in all DOBRE communities with 4,288 people involved in participatory strategic planning this year. This includes strategic planning meetings, public consultations and mentorship meetings aimed at providing support in the course of local strategy implementation.

50 Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1.6. Number of LED projects 1 5 0 60 0 implemented

Not applicable at the time of reporting. LED projects start after CCs finish their strategic planning process. The development process started for Cohort #1 and #2 CCs that completed their strategic plans. Most CCs finished their action plan, selected their LED projects by the end of the year, and will now move into the implementation phase. Again, this process took longer than anticipated as partner CCs understood little about LED. Moreover, DOBRE places the emphasis on each CC to learn the process and develop their own plan rather than developing the plan for them.

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018)

1.7. / DR.4-1. Number of USG-supported activities 0 4 4 38 3 30 designed to promote or strengthen the civic participation of women

During this year DOBRE partner NDI organized and supported 30 activities to promote and strengthen civic participation of women. These include the First Ukrainian Women’s Congress and Regional Women’s Congresses in Odesa and Lviv; three rounds of the Women’s Leadership Academy (WLA); networking events and round tables for representatives of established gender- focused caucuses and officials interested in forming GFCs in their communities; and Media Marathons "Equality in Politics" in Dnipro and Zhytomyr. They already planned three more events for the next quarter – the Second National Women Congress in December, a Media Marathon in Kherson in October, and a GFC networking event in November 2018. In August, NDI conducted a strategic planning meeting with consultants to discuss NDI’s future role to facilitate integration of individual GFCs into a larger Ukrainian GFC network. On July 18, NDI supported a roundtable discussion in Donetsk Oblast organized by the Kramatorsk city council GFC entitled, “Ensuring Reproductive Rights for Women and Men.” Although Kramatorsk is not a DOBRE target municipality, local councilors seeking support for a prenatal medical center reached out to NDI for assistance in forming a GFC. As a result of the discussion,

51 the Kramatorsk city council and representatives from Donetsk oblast reached an agreement to open a prenatal medical center by the end of the year. This shows the DOBRE program scaling up to other local governments its best practices.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 PERFORMANCE INDICATOR Year 1 Year 2 Figure (2016- (2017- (2017) (2017- 2017) 2018) 2018) 1.8. Percentage of citizens reporting satisfaction with service delivery provided by targeted Consolidated 21% N/A 21% TBC Communities (annual)

For Year 2 DOBRE does not report on the indicators measuring change of citizen perceptions – (indicators 1.8,1.9, 1.14, 1.15, 2.1, 2.3, 2.18) as DOBRE plans to collect data for these indicators three times during life of the Program – baseline, midterm and end line. FY 2019 quarterly reports will reflect changes to baseline data taking into account the results of the midterm citizen household survey planned for November 2018-February 2019. DOBRE reflected the corresponding changes of reporting frequency in the updated version of the MEP submitted to the mission. In the revised MEP, we also propose modification of calculation method for this indicator to better reflect planned DOBRE contribution into CCs’ service quality improvement.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1.9. Percentage of citizens who are aware of how to access information 32% N/A 32% TBC about government services (annual)

For Year 2 DOBRE does not report on the indicators measuring change of citizen perceptions – (indicators 1.8,1.9, 1.14, 1.15, 2.1, 2.3, 2.18) as DOBRE plans to collect data for these indicators three times during life of the Program – baseline, midterm and end line. FY 2019 quarterly reports will reflect changes to baseline data taking into account the results of the midterm citizen household survey planned for November 2018-February 2019. DOBRE reflected the corresponding changes of reporting frequency in the updated version of the MEP submitted to the mission. In the revised MEP, we also propose modification of calculation method for this indicator to better reflect planned DOBRE contribution into CCs’ service quality improvement.

52 Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1. 10. Percentage of public services that meet or exceed quality 0% 0 0% 50% 0% standards as defined in CC SDIPs (annual)

DOBRE will be able to capture changes in priority services quality improvements in a year after the start of implementation of the Service Delivery Improvement Plans (SDIPs) developed in each CC. For Cohort #1 communities, DOBRE has developed 25 SDIPs, approved by local Councils, while Cohort 2 CCs are in the process of SDIP development. Each SDIP developed has a set of indicators to measure progress in improvement of the selected priority service quality. DOBRE submitted to the donor the revised MEP proposing to measure progress in public services quality improvement against one of these chosen indicators, mainly using service coverage (or another indicator for those services where coverage will not work).

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018)

1.11. Number of inclusive/ participatory SDIP projects 0 2 0 40 0 1 implemented

Over this reporting period, DOBRE implemented the solid waste management SDIP project in Pechenizhyn CC. The CC’s local government fully and effectively undertook organization of solid waste management collection and sorting by the population. For this DOBRE provided new garbage bins for their solid waste service and the CC provided a new truck and prepared locations for the new bins. Again, this process took longer than anticipated. DOBRE places the emphasis on each CC to learn the process and develop their own plan rather than developing the plan for them. This took considerably more effort than anticipated but almost all Cohort #1 CCs started the implementation process before the end of the year. An IEE change also slowed down the process in several Ccs who selected water as their primary service. While most Cohort #2 move toward implementation early in FY 2019.

53 Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1.12. Total value of service delivery improvement co-funding and/or in- kind contributions from 36,000 11,862 720,000 128,241 0 Consolidated Community or citizen USD USD USD USD sources (USD) (annual)

During the past year, DOBRE realized 18 SDIP, “Quick Wins” and Youth projects targeting service delivery improvement in 14 CCs with in-kind contributions from the communities/citizens that equals 128,241 USD in total. These projects include 13 “Quick Wins” (modernization of stadiums in Mostivska CC, playground installation in Biloberizka CC, Oleksandrivska CC, Kochubeyivska, Apostolivska, Starobohorodchanska, and Zavodska CC, installing a skateboard park in Pokrovska CC, development of mobile open-air cinema in Bashtanka, formation and improvement of security centers in Slobozhanska and Novooleksandrivska CCs), three Youth Projects (establishing co-working center in Domanivska CC, school radio station in Slobozhanska CC and installation of recuperation system in Merefyanska CC), and two Service delivery improvement projects (survey of citizens with tablets in Biloberizka CC and solid waste collection and sorting centers in Pechenizhyn CC). All the projects are long-term lasting until 2021. To date, DOBRE accounted for an equivalent of $48,848 as the in-kind contribution from Dnipropetrovsk Oblast CCs, $48,236 from Ivano-Frankivsk Oblast, $17,137 from Mykolaivska Oblast, $8,779 from Kherson Oblast, $3,797 from Kharkiv Oblast, and $1,444 from Ternopil Oblast. DOBRE is still working with partner CCs to account for their cost share. This process also takes longer than anticipated.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1.13. Percentage of Consolidated Community annual budgets that devote resources to priority services identified through 0 0% 2% 100% 24% inclusive/participatory strategic planning (annual)

54 In Year Two 12 DOBRE Cohort #1 CCs devoted resources to priority services identified through inclusive/participatory strategic planning (western and southern oblasts’ CCs being more active in this process). Among those which devoted resources, all Cohort 1 CCs of Ivano- Frankivsk oblast (Biloberizka, Verkhnyanska, Pechenizhyn, and Starobohorodchanska), 2/3 of Cohort #1 CCs in Ternopil (Husyatyn, Zavodska, Mykulynetska, and Skala-Podilska) and Mykolaiv oblast (Bashtanka, Oleksandrivska), and 2 CCs of Dnipro oblast (Slobozhanska, Tsarychanska).

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018) 1.14. Percentage of citizens who state confidence in Consolidated Communities’ stewardship of 36% N/A 36% TBC public assets (annual)

For Year 2 DOBRE does not report on the indicators measuring change of citizen perceptions – (indicators 1.8,1.9, 1.14, 1.15, 2.1, 2.3, 2.18) as DOBRE plans to collect data for these indicators three times during life of the Program – baseline, midterm and end line. FY 2019 quarterly reports will reflect changes to baseline data taking into account the results of the midterm citizen household survey planned for November 2018-February 2019. DOBRE reflected the corresponding changes of reporting frequency in the updated version of the MEP submitted to the mission. In the revised MEP, we also propose modification of calculation method for this indicator to better reflect planned DOBRE contribution into CCs’ service quality improvement.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018) 1.15. Percentage of citizens who state that the Consolidated Community annual budget 2% N/A 2% TBC process is transparent/inclusive (annual)

For Year 2 DOBRE does not report on the indicators measuring change of citizen perceptions – (indicators 1.8,1.9, 1.14, 1.15, 2.1, 2.3, 2.18) as DOBRE plans to collect data for these indicators three times during life of the Program – baseline, midterm and end line. FY 2019 quarterly reports will reflect changes to baseline data taking into account the results of the midterm citizen household survey planned for November 2018-February 2019. DOBRE reflected the

55 corresponding changes of reporting frequency in the updated version of the MEP submitted to the mission. In the revised MEP, we also propose modification of calculation method for this indicator to better reflect planned DOBRE contribution into CCs’ service quality improvement.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1.16. Number of targeted Consolidated Communities that make budget data 0 0 0 10 2 publically available (annual)

Sub-category 2.1 “Budget Development and Execution” of the PMCI tool measures public availability of CC’s budgets, as well as other criteria, and in correspondence with last year practice, we used score 4 in this PMCI sub-category as the criteria to meet the qualifications for this indicator. In fact, Score 4 of PMCI controls for several other aspects of the budget process that are more than just making the budget data publicly available: “CC Budget is developed inclusively, with some period or process for public comment on the content – such as public meetings, or collected feedback and published responses. The budget is formatted and in clear terms citizens can easily understand. Budget is generally in line with current strategic plan. CC monitors expenditure and revenues, then issues quarterly and annual budget execution reports. CC publishes budget execution reports publicly.” In this year two DOBRE CCs – Slobozhanska and Novoukrainska scored 4 out of 5 (maximum) and met the qualifications for this indicator. At the same time, data from DOBRE CCs financial management assessment conducted this year in both Cohorts shows that 40 ССs made their budgets with all attachments, as required by law, publicly available on their web sites. DOBRE proposes to change the data source for this indicator in the revised MEP submitted for approval.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1.17 Percentage of Consolidated Community annual budgets that 30% for devote resources to gender- 0 0 0 the 1st 0 sensitive issues and/or priorities cohort (annual)

56 GRB groups created in Cohort #1 and #2 CCs began to work on local special purpose programs to be included in their FY 2019 CC budgets. Nothing to report. Year 3 will see results of this work.

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 1.18. Number of Consolidated Community officials trained in 49 100 426 300 218 1261 core financial functions

The core financial functions addressed by 148 activities in 2018 comprised DOBRE and partner training on gender-responsive budgeting, basic provisions of legislation in the field of public procurement, budget transparency and strategic approaches to budget planning processes. This year, DOBRE fine-tuned its monitoring system to include NDI training on gender-responsive budgeting (previously fully reported under the indicator 2.7) to this indicator that counts officials trained in core financial functions, leaving only non-officials to be reported under 2.7. DOBRE based the revised number for FY 2017 presented in the table above on this amended approach. The Financial Management Assessment yielded additional training needs of the CCs and this resulted in the higher than anticipated number of training events in this sector last year.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018) 1.19. Number of transparent/ inclusive local budgets 0 0 0 10 2 developed (annual)

DOBRE established the baseline of “0” based on the PMCI for this indicator. According to the PMCI methodology, CCs must receive at least 4 out of 5 for the indicator 2.1 “Budget Development and Execution” to consider a local budget inclusive and transparent. A score of “4” means that: “CC Budget is developed inclusively, with some period or process for public comment on the content – such as public meetings, or collected feedback and published responses. The budget is formatted and in clear terms citizens can easily understand. Budget is generally in line with current strategic plan. CC monitors expenditure and revenues, then issues quarterly and annual budget execution reports. CC publishes budget execution reports publicly.” Two CCs developed their budgets transparently and inclusively this year: Slobozhanska and

57 Novoukrainska. The average score for Cohort #1 CCs is 2.36 and for Cohort #2 CCs is 2.32. Average score for this indicator in DOBRE CCs is 2.32, with 14 CC having reached level 3 in this PMCI sub-category, and no CC being on 0 level. 2.32 average score means CCs are still in need of DOBRE assistance in financial management and public communication on the budget. DOBRE will continue to increase the scores for this indicator based on a roadmap developed in conjunction with the CC.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

1. 20. Percentage increase in OSR Data Not raised by Consolidated Communities 46.4 % N/A 46.4 % 5% Yet (annual) Available

The Verkhovna Rada changed the law on OSR in 2016 to eliminate local excise taxes. This means that DOBRE cannot compare future years against 2016. DOBRE decided to use 2017 as the baseline and moving forward will use that number as the comparative. In this report, DOBRE presents the updated baseline number calculated taking into account all 12 months of 2017 (at the time of the previous report only data for the 6 months of 2017 - January-June - was available and reported for baseline percentage of OSR). We calculated the total baseline number for this indicator as the factual average percentage of OSR raised by 50 DOBRE Consolidated Communities in 2017. Adding the second half of 2017 year to the analyses, results in 2.7% raise of the baseline number for the indicator (from 43.7% for the first 6 months of 2017 to 46.4% for the whole year), which shows some positive dynamics in change of CCs OSR. For the next annual reporting on this indicator, DOBRE will use full 2018-year data (available mid-year 2019) on OSR to track this indicator. Data available for this indicator does not allow disaggregating by type of OSR (taxes, charges, fees). Therefore, DOBRE proposed to remove this disaggregation from the PRIS in the revised MEP submitted to the mission.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

2.1. Percentage of citizens reporting satisfaction with local 19% N/A 19% TBC government activities for citizen engagement (annual)

58 For Year 2 DOBRE does not report on the indicators measuring change of citizen perceptions – (indicators 1.8,1.9, 1.14, 1.15, 2.1, 2.3, 2.18) as DOBRE plans to collect data for these indicators three times during life of the Program – baseline, midterm and end line. FY 2019 quarterly reports will reflect changes to baseline data taking into account the results of the midterm citizen household survey planned for November 2018-February 2019. DOBRE reflected the corresponding changes of reporting frequency in the updated version of the MEP submitted to the mission. In the revised MEP, we also propose modification of calculation method for this indicator to better reflect planned DOBRE contribution into CCs’ service quality improvement.

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.2. Number of citizens participating in local 0 500 822 1500 1258 2795 government activities for citizen engagement

This indicator measures the attendance of citizens at such activities as public hearings, town hall meetings, open local council meeting and other participatory mechanisms that bring together CCs’ officials, CSO/CBO members and non-affiliated individuals. For this stage of the Program’s implementation, when many such activities occur under its support or directly due to the Program’s initiative, the mechanisms like multi-purpose community gatherings or cultural integrational events would prevail. Changing people’s perception of themselves as members of these new enlarged communities one local government priority supported by DOBRE. Moreover, partner RCSOs place a significant emphasis on building a dialogue between local societies and their authorities in their work with the DOBRE CCs, which the numbers under this indicator also reflects.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018) 2.3. Percentage of citizens who believe that YLCs are an effective tool to engage local 22% N/A 22% TBD government on behalf of youth (annual)

59 For Year 2 DOBRE does not report on the indicators measuring change of citizen perceptions – (indicators 1.8,1.9, 1.14, 1.15, 2.1, 2.3, 2.18) as DOBRE plans to collect data for these indicators three times during life of the Program – baseline, midterm and end line. FY 2019 quarterly reports will reflect changes to baseline data taking into account the results of the midterm citizen household survey planned for November 2018-February 2019. DOBRE reflected the corresponding changes of reporting frequency in the updated version of the MEP submitted to the mission. In the revised MEP, we also propose modification of calculation method for this indicator to better reflect planned DOBRE contribution into CCs’ service quality improvement.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

2.4. Percentage of partner CSOs/CBOs that demonstrate improved organizational capacity to 0 0 0 40% 76% sustainably engage in Consolidated Community processes (annual)

DOBRE uses Global Communities’ Appreciative Review of Capacity (ARC) methodology to measure the progress of CSOs or informal initiative groups in CCs. Of the 104 DOBRE supports, 38 organizations/groups went through the ARC assessment for the second time in 2018, which is 70% of those assessed in 2017. 16 CSOs assessed in 2017 that did not pass the second assessment this year showed no interest in making efforts to improve their capacities with DOBRE. Among CSOs assessed for the second time this year, 76% demonstrated improved organizational capacity as shown by the increase of their total ARC score – from 44.5 in average in 2017 to 56.6 in average in 2018. These scores still do not reach even halfway point to the maximum ARC score of 135. This confirms that local organizations remain at a very basic level of capacity and need assistance and guidance from more mature regional organizations. A majority of the local CSOs/groups that raised their organizational capacity demonstrated a modest degree of improvement since past assessment (plus 23% in average in their total ARC score). While Tsentr Vdalyh Initsiatyv Trykrativtsiv "Tsvit" in Oleksandrivska CC and tsentr Vyshnivetskih initsiativ i transformatsii of Vyshnivetska CC doubled their scores (moving from minimum ARC scores of 27 and 29 to 58 and 62 correspondingly this year). The table below shows the percentage of organizations in Oblasts that improved their total ARC score.

60 Amount of Amount of Percentage of organizations in oblast Oblasts organizations that run organizations that that show ARC the 2nd time improved improvement Ivano-Frankivsk 11 6 54.5% Kharkiv 1 0 0% Kherson 2 2 100% Mykolayiv 14 12 86% Ternopil 9 9 100%

The remaining 24% of organizations/groups showed lower scores or stayed on the same level as last year. People turnover and lack of opportunities to find resources for their initiatives affects their ability to learn by doing and acquire new competences. The other 65 of the 104 assessed this year are new local civic organizations or initiative groups that completed their baseline assessments (41 from the Dnipro oblast, 6 – from Mykolaiv, 6 – from Ivano-Frankivsk, 3 – from Kharkiv, 4 – from Kherson, 3 – from Kirovograd, and 3 – from Ternopil). In all Oblasts except Dnipropetrovsk, these new organizations started some activity and became visible as a result of community mobilization efforts taken by RCSOs.

Actual Actual Target Actual Target for for Year for Year for Year PERFORMANCE Baseline for Year quarter 1 2 2 INDICATOR Figure 1 IV Year 2 (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.5. Number of e-governance tools adopted by Consolidated 0 2 3 4 5 6 Communities and/or partner CSOs/CBOs

During past year DOBRE partner SocialBoost finalized the first DOSVIT website, with the domain in the zone gov.ua, for Sofiivska CC (https://sofotg.gov.ua) implementing five e-government tools as separate applications of the DOSVIT IT-platform. They are: 1) website constructor, 2) public official’s registry, 3) application for publishing CC documents, 4) application for accommodation of information about all CC projects, including investment projects, and 5) enterprise registry with information about all enterprises located and operating on the CC territory. Each e-tool can function independently, as well as a part of a holistic IT-platform.

In quarter III of the Year 2 DOBRE partner SocialBoost also installed the system "Hromadsky project" in 18 CCs: Biloberizka, Terebovlyanska, Starobohorodchanska, Muzykivska,

61 Bobrynetska, Domanivska, Prybuzhanivska, Mykulynetska, Merefyanska, Starosaltivska, Rohanska, Slobozhanska, Mogylevska, Pokrovska, Sofiivska, Novooleksandrivska, Tsarychanska, and Vasylkivska. Of these, the following 13 started using the system in FY 2018:

Slobozhanska CC https://slobozhanske.pb.org.ua

Pokrovska CC https://pokrovske.pb.org.ua Biloberizka https://biloberizka.pb.org.ua Bobrynetska https://bobrynets.pb.org.ua Merefyanska https://merefa.pb.org.ua Muzykivska https://muzykivka.pb.org.ua Mykulynetska https://mykulynecka.pb.org.ua Rohanska https://rogan.pb.org.ua Sofiivska https://sofiivka.pb.org.ua Starobohorodchanska https://staribogorodchany.pb.org.ua Starosaltivska https://staryisaltiv.pb.org.ua Terebovlyanska https://terebovlya.pb.org.ua Tsarychanska https://tsarichanka.pb.org.ua

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.6. Number of local government activities for citizen 0 100 50 225 15 57 engagement

The numbers calculated under the indicator 2.2 (see above) relate to the number of activities for this indicator. This indicator measures number of such activities as public hearings, town hall meetings, open local council meeting and other participatory mechanisms that bring together CCs’ officials, CSOs and citizens. For this stage of the Program’s implementation, when many such activities occur under its support or directly due to the Program’s initiative, the mechanisms like multi-purpose community gatherings or cultural integrational events prevailed.

62 Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.7. Number of persons trained in citizen engagement best 0 600 2531 1200 520 1957 practices

For the various citizen engagement mechanisms in local self-governance and local development, it is important that not only authorities get to learn how to cooperate with their societies but preparing citizens for efficient dialogue as well. The numbers under this indicator are significant and quite understandable. Altogether, almost 300 activities and events took place during the year that yield data for this indicator that exceeds the target set. The major part of these activities were NDI training on gender-oriented budgeting (for this indicator DOBRE only counted non- officials who participated in the NDI training). Gender-oriented budgeting training is really a significant output of the Program as the issues of gender equality or gender balance are not clear enough and under-appreciated (due to little if any knowledge on the topic) yet, especially in rural areas. The other main topic of the training this year was participatory budgeting delivered by RCSOs. In the past quarter there were 520 people trained in citizen engagement best practices. The table below shows distribution of participants by oblasts.

Number of Oblasts participants Dnipropetrovsk 161 Ivano-Frankivsk 33 Kharkiv 57 Kherson 14 Kirovograd 36 Mykolaivska 151 Ternopil 16 Other 14

63 Actual Actual Target Actual Target for for Year for Year for Year PERFORMANCE Baseline for Year quarter 1 2 2 INDICATOR Figure 1 IV Year 2 (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.8. Number of citizens from RCSOs/CBOs trained in analysis and oversight of 0 60 80 200 7 105 Consolidated Community processes

DOBRE conducted 26 trainings during this year addressing accountability of CCs, financial accountability of the CCs, and how citizens can influence the activity of authorities. DOBRE is below the target for this indicator as we overestimated the target itself, as many CSOs in the communities exit only on paper. DOBRE works only with those of them that really function in the CCs, thus the actual number of CSOs and their members are much lower than anticipated. DOBRE abstains from creating artificial CSOs just for the purposes of the Program.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

2.9. Number of youth participating in YLC trainings and activities 0 1000 1165 2500 1598 (annual)

Since DOBRE determined that not every partner CC wants or needs YLC, we expanded the definition of this indicator to include any formal youth activities and trainings. Thus, the youth audience of DOBRE activities was quite large – 1,598 participants, which is yet less than planned. The central youth events of the year were Youth DOBRE DIY Forums organized in Ivano- Frankivsk, Mykolayiv, Ternopil and Dnipropetrovsk Oblasts, and DOBRE LID School. The other activities were undertaken by seven Program RCSOs in DOBRE communities, which mostly aimed at teaching young citizens in many topics of civic society self-organization and in local self- governance.

64 Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018)

2.10. Number of Youth Local Councils (YLC) formed 5 35 15 40* 15 (annual)

DOBRE expanded this to represent any formal body even if the CC does not call it specifically an YLC. During the second year, DOBRE helped to create Youth councils in 15 CCs. The following additional CCs have now functioning YLCs: Slobozhanska, Velykohaivska, Baykovetska, Shumska, Buzka, Prysyvaska, Chaplynka, Kochubeyivska, Askania-Nova, Starosaltivska, Merefyanska, Bilshivtsivska, Sofiivska, Hrechanopodivska, and Pokrovska. Currently there are 30 CCs with YLC created. We changed the *target to reflect a cumulative total of 75 CCs. This originally intended to include Cohort #3 but USAID delayed it until FY 2019.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018) 2.11 / DR.4.2-2 Number of civil society organizations (CSOs) receiving USG assistance 0 25 5 150 23 engaged in advocacy interventions (annual)

Performance indicator 2.11 disaggregated by type of group:

Total for Year 2

group working on LGBTI issues (DR.4.2-2a) 0

women’s rights groups (DR.4.2-2b) 3 indigenous people’s groups (DR.4.2-2c) 0 disability rights organizations (DR.4.2-2d) 3 groups working on religious freedom (DR.4.2- 0 2e) youth groups 15 IDP groups 4 elderly people groups 1

65 During past year DOBRE with its partner organizations conducted trainings for representatives of 23 partner CSOs that through their mission work with marginalized/vulnerable groups in their CCs. Among them, most represented organizations work with youth groups (15 organizations from Bobrynetska, Malovyskivska, Starosaltivska, Merefyanska, Pechenizhyn, Bashtanka, Prebuzhany, Apostolivska, Vasylkivska, Mogylevska, Slobozhanska CCs) and IDPs (four organizations that work in Chaplynka, Slobozhanska, Merefyanska and Bashtanka CCs). Three organizations work with the rights of women in Chaplynka, Apostolivska CCs and the rights of persons with disabilities in Chaplynka and Tsarychanska CCs. The low number results from two issues. First, as mentioned previously, the lack of capable CSOs at the local level. Second, partner NDI originally intended more programming in this area but USAID suggestions to slow/reduce spending starting in Program Year #1 and lasting through most of Year #2 meant we sacrificed those activities to concentrate in other areas. As a result, in the revised MEP submitted to the mission, DOBRE suggests getting rid of this indicator as DOBRE and our partners are not doing such advocacy activities with CSOs for these reasons.

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.12 / DR.2.4-7. Number of USG- supported anti-corruption 0 10 33 150 19 133 measures implemented

During quarter IV DOBRE sub-awardees Institute of Political Education (IPE) and Committee of Voters of Ukraine (Odesa CVU) implemented 19 trainings on anti-corruption or having an anti- corruption component. After completion of the anti-corruption trainings in partner Cohort 2 CCs, the participants started implementing tasks to introduce anti-corruption tools in their communities, which they will finalize by December 2018 and report on in the next quarter.

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.13 / DR.2.4-3 Number of people affiliated with NGOs 0 50 36 200 13 85 receiving USG-supported anti-corruption training

66 During this year, 85 NGOs members participated in the anti-corruption trainings carried out by Committee of Voters of Ukraine for CCs of the Cohort 2. DOBRE is below the target for this indicator as the target itself overestimated, as many CSOs in the communities exit only on paper. DOBRE works only with those that really function in the CCs. Thus, the actual number of CSOs and their members are much lower. DOBRE abstains from creating artificial CSOs just for the purposes of the Program. During this quarter, 13 NGO members (12 from Mykolayiv Oblast and one from Dnipropetrovsk) participated in the anti-corruption trainings of CVU. None of them represents CSOs that support vulnerable categories of population in the reporting period.

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.14 / DR.4.2-1 Number of government officials receiving 0 100 342 300 294 723 USG-supported anti-corruption training

In 2018, the Program made a significant step forward in supporting creation of the environment free of corruption in the DOBRE communities. Following its approach in this area, the Program partners (Committee of Voters of Ukraine and Institute of Political Education) carried out 56 trainings that addressed local officials. More than 700 participants attended these trainings from all DOBRE CCs. The topics ranged from “Knowing your rights and obligations”, through training skills in conflict resolution and in budget-related relations, to early identification of potential for corruption and practical training in applying anti-corruption measures provided by the law. Worth noting that a significant emphasis of the trainings was on the cooperation with public and on best practices in the area of local self-governance. The effect of combining training in anti- corruption with skills development in budgeting hit two goals: 1) participants (mainly newly elected officials that have little practice in budget development and implementation, although they are those who decide on budget-relate issues) improved their understanding of corruption and its implications on local societies (and how to apply the law to prevent corruption), and 2) they got better knowledge of the local budgeting process. The “Actual” far exceeded the target for this indicator. This happened for two reasons. First, a general lack of professional training for CC employees encourages the Hromada leadership to seek every opportunity for raising their local governance capacities and actively participate in DOBRE training activities of different Program components. Second, with limited CSO/CBO existence in CCs, DOBRE concentrated more on the supply side of anti-corruption.

67 Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.15. Number of local government advocacy, 0 5 0 10 0 1 accountability, and anti- corruption grants awarded

DOBRE awarded a short-term sub-grant to Committee of Voters of Ukraine (CVU). They designed and implemented an anti-corruption program for residents of Cohort #2 CCs on preventing corruption, implementing anti-corruption mechanisms, and launching efficient public oversight systems. DOBRE intends to make these grant awards after the related training concluded and all relevant instruments installed and start functioning in the CCs. Again, the limited number of CSOs/CBOs in Hromada will keep this number low.

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.16 Number of anti-corruption e-tools created through DOBRE 0 4 4 6 1 1 programming

During past quarter DOBRE partner SocialBoost through its IT-platform DOSVIT developed the e-tool ‘Open budget’ for CC budget visualization. Already, five pilot CCs started using the app this quarter: Sofiivska, Chaplynka, Pokrovska, Pechenizhyn, and Nyzhnoverbizka. Each posted the application banners on the official CCs website. The ‘Open budget’ application gives opportunity to visualize CC's budget data in simple form to make it clear and accessible to every citizen. The tool can function independently, as well as a part of a holistic IT-platform.

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.17. Number of persons reached through anti- 0 0 0 100 0 135 corruption e-tool activities

68 DOBRE implemented the anti-corruption e-tool “Open Budget” during this reporting period as part of the DOSVIT IT Tools Platform. DOBRE (partner SocialBoost) held seven workshops on usage of DOSVIT Platform and “Open Budget” that convened 135 participants. SocialBoost supplemented “Open Budget” implementation in CCs with individual consultations with people assigned in each CC. Due to the PIRS definition, DOBRE did not report on persons reached through anti-corruption e-tool activities this year and submitted a revised PIRS for this indicator in the updated MEP. It will broaden the indicator’s definition and measurement approach, to include coverage of both e-governance and anti- corruption DOBRE e-tools measured as users for whom at least one session on corresponding web sites is registered in the reporting period. Therefore, under the proposed change of the indicator, in the 3rd quarter the e-governance “Hromadsky Project” system reached 1375 people. While in the last quarter Hromadsky Project” reached 5197 more people. DOBRE would also revise targets based on the new PIRS.

Actual for Target for Actual for Target for Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 Figure (2016- (2017- (2017- (2017) 2017) 2018) 2018) 2.18. Percentage of citizens who

support decentralization 58% N/A 58% TBC reforms (annual)

For Year 2 DOBRE does not report on the indicators measuring change of citizen perceptions – (indicators 1.8,1.9, 1.14, 1.15, 2.1, 2.3, 2.18) as DOBRE plans to collect data for these indicators three times during life of the Program – baseline, midterm and end line. FY 2019 quarterly reports will reflect changes to baseline data taking into account the results of the midterm citizen household survey planned for November 2018-February 2019. DOBRE reflected the corresponding changes of reporting frequency in the updated version of the MEP submitted to the mission. In the revised MEP, we also propose modification of calculation method for this indicator to better reflect planned DOBRE contribution into CCs’ service quality improvement.

Actual for Actual for Target for Actual for Target for quarter Baseline Year 1 Year 2 Year 2 PERFORMANCE INDICATOR Year 1 IV Year 2 Figure (2016- (2017- (2017- (2017) (2017- 2017) 2018) 2018) 2018) 2.19. Number of public information campaigns promoting women's participation and leadership in local 0 0 0 7 1 5 governance (annual)

69 DOBRE and USAID (through NDI’s ongoing CEPPS program) jointly held two Media Marathons "Equality in Politics" in Dnipro and Zhytomyr on March and June. These events gathered local councilors, CC representatives, GFC members, media representatives, political party administrators, government officials, and civic activists. The First Ukrainian Women’s Congress in Kyiv and two Regional Women’s Congresses in Odesa and Lviv also involved media representatives and thus promoted and raised visibility of women leaders and male champions of gender equality on national and regional levels. NDI has already planned another Media Marathon for the next quarter to be held in Kherson in October.

VI. PERFORMANCE MONITORING, EVALUATION AND LEARNING DOBRE hosted a study tour on energy saving innovative technologies and efficient ways of lightning for the Zavodska and Skala-Podilska communities. Participants visited Ternopil, Ivano- Frankivsk and Chernivtsi oblasts where they observed in practice the positive experience of the communities implementing innovative ideas in alternative source of energy and different approaches in street lightning. In addition, they met with local authorities from Starobohorodchanska CC followed by tours around these communities and experience exchange. Study Tour on Sports Development and Inter-Municipal Cooperation: Representatives of Baykovetska & Velykohaivska CCs visited Lviv for a domestic study tour. Participants studied the best practices in diversification and increasing the number of services in the field of sports. They learned how to create and equip recreation grounds for various ages and interest groups and provide residents places for communication in appropriate and efficient ways. DOBRE conducted an LED Poland Study Tour: Local government and business leaders of nine DOBRE CCs participated in DOBRE’s “LED Action Tour to Poland”. Accompanied by DOBRE consultants assigned to their community, they learned practical skills from the Polish experience they can adapt and apply in local economic development programs and projects in their communities. During the study tour, participants created “action plans” tailored to stimulate economic development and increase the quality of life in their community. LED leaders represented DOBRE partner CC’s: Askania Nova, Kochubeyivska and Muzykivska of Kherson Oblast, Starobohorodchanska, Pechenizhyn, and Biloberizka of Ivano-Frankivsk Oblast, Slobozhanska and Tsarychanska of Dnipropetrovsk Oblast, and Baykovetska of Ternopil Oblast. Consultants of Odessa National Economic University (ONEU), Dnipro Regional Institute of National Academy of Public Administration (DP NAPA), Kolomyya Economic Development Agency (AEDK), Western Ukrainian Resource Center-Lviv (WURC), Podillia Development Agency-Vinnytsia (PARD), Business Center NGO of Chernivtsi and the Institute of Sustainable Development NGO of Kharkiv supported the community leaders in creating the action plans.

70 DOBRE organized a study tour for 20 representatives of non-amalgamated communities from Kirovograd oblast to DOBRE communities in Dnipro to Tsarychanska and Pokrovska. The heads of non-amalgamated communities addressed DOBRE program staff with the request of sharing experience from the amalgamated communities participating in DOBRE. They were specifically interested in the experience of the settlement type of communities and wanted to go to other oblast outside of Kirovograd. Given that there is a reform priority to amalgamate maximum number of communities, discussed with MinRegion, DOBRE is taking part in the joint donor effort to support such activities. U-LEAD Central Reform Office developed a plan for promotion of amalgamation where DOBRE is seen as the key player that can share positive results of the communities where we work. In the framework of this plan, DOBRE is joining U-LEAD initiative with regional forums of non-amalgamated communities; hosts peer-to-peer study tours in its communities, and also assist DOBRE communities in joining new areas to already existing CCs. NDI coordinated with UN Women to host a study visit for representatives from Luhansk and Donetsk Oblasts to visit six DOBRE communities in Ternopil and Dnipropetrovsk Oblasts. In a testament to the nationally recognized achievements of DOBRE communities in GRB implementation, NDI partner UN Women requested that NDI facilitate the exchange. Leaders from GBGs in Baykovetska, Vyshnevetska, Novooleksandrivska, Mogylevska, Slobozhanska, and Tsarychanska CCs presented gender budget projects and shared experiences and challenges they have faced while integrating GRB tools into local government budget design. For example, in Voloske village (Novooleksandrivska CC) members of the community’s GBG introduced the study group participants to a GBG initiative to expand the hours of a local nursery school to give working parents, and particularly working mothers, more professional flexibility. The GBG members walked the study participants through the process they took, from program design and financial reallocating, to program implementation, administration, and long-term evaluation. DOBRE sponsored a domestic study tour on sport for Novoukrainska CC to Lviv. Another study tour on Local Government Security Services involved seven CCs of Kherson and Mykolayiv Oblasts visiting Ternopil Oblast to learn about their experience in creating security systems in communities. DOBRE held the Leadership Academy training course for the 5th group of the DOBRE partner CCs. This was a study tour to visit local governments around Gdansk Poland. UCMC published an article on regional Internet and print media about the DOBRE Leadership Academy Program participants (Group 4, 2nd session) in Szczecin, Poland. DOBRE Program in close cooperation with program partner UCMC organized a visit to Adjamka of Kirovograd rayon (Kirovograd Oblast), a community in the process of amalgamation, to forge amalgamation processes. DOBRE brought community heads and deputy heads of partner Sofiivska, Hrechanopodivska and Pokrovska communities from Dnipropetrovsk oblast to talk to more than 100 local residents. DOBRE partner officials talked about the importance of

71 amalgamation and its benefits that are given along the state and international programs support. DOBRE highlighted the visit in a Facebook post and released a long read about perspectives of Adjamka, an un-amalgamated village in Kirovograd oblast, about becoming a consolidated community. The biggest study tour was done recently – LED study tour to the US, explained earlier.

VII. LESSONS LEARNED Over the reporting period, DOBRE received a letter from Kutsurub requesting to withdraw from DOBRE. They indicated they lacked capacity to receive capacity building assistance from an international donor program. DOBRE reviewed Cohort #2 applications from Mykolayiv and Kherson and conducted follow up interviews to select a new CC. DOBRE regional officers from Dnipro then evaluated and made assessment visits to potential DOBRE partner communities. DOBRE notified both USAID and MRD about the issue and selected Buzka from Mykolayiv oblast as a replacement partner CC. Same thing happened as Bohdanivska CC withdrew and DOBRE replaced them with Mirivska. DOBRE had to replace the LGSO in Kharkiv as the Institute of Sustainable Development-Kharkiv failed to meet DOBRE contracting and performance requirements. DOBRE opened a small office in Ivano-Frankivsk due to the distance between those CC’s and our regional office in Ternopil. It required lengthy travel for the program officers and opening an office allows us to better serve the CCs in Ivano-Frankivsk. Currently, DOBRE is thinking about opening office in Kropyvnytskyi due to the large number of potential CCs from Kirovograd Oblast DOBRE may select in Cohort 3.

VIII. ENVIRONMENTAL MONITORING DOBRE was procured under the DG DOAG IEE, which received a Categorical Exclusion in 2014. Initial Environmental Examination has been prepared as a Supplemental IEE to the DG DOAG IEE, DCN: 2014-UKR-010. In accordance with IEE following recommended Environmental determination were obtained:

• Categorical Exclusions under §216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.); • Negative Determination with Conditions under §216.3(a)(2)(iii) In the course of the fiscal year, 2018 (10/01/2017- 09/30/2018) following activities were submitted and approved by the USAID BEU with ERC/EMMP: Cohort 1 Quick Win Incentive grants – 2 ERC/EMMP;

72 Cohort 1 Youth Projects Incentive grants – 9 ERC/EMMP; Cohort 2 Quick Win Incentive grants – 11 ERC/EMMP; Cohort 2 Youth Projects Incentive grants – 12 ERC/EMMP; Service Development Improvement Plan Projects – 6 ERC/EMMP; In total 40 ERC/EMMP were finalized during the report period. The focus of the provided ERC/EMMP was on the:

• Playground equipment (sport, children, skate park) for the Quick Win and Youth • Area improvements (parks, squares, market areas) for the Quick Win and Youth • Vehicles procurement for the SDIP – garbage truck, backhoe, etc. Each ERC/EMMP has its own list of Mitigation Measures and Monitoring plan. For the Mitigation Measures focus was on:

• Request for the certificates and warranties on materials and equipment • Solid Wastes Management like separation and proper disposal of the recycling materials • Use of excavated soil and foundation preparation For the monitoring, main indicators are:

• Site inspection • Photo reports DOBRE implements all projects jointly with the Consolidated Communities (CC). DOBRE funds procurement of equipment and structures, while CC provide area preparation and equipment installation. DOBRE made a request and obtained approval of the Modification in IEE amendment due to the DOBRE project seek to add flexibility under Component 1.2.2 “Improved, more inclusive local services and provide more transparently” to allow for CCs consideration of new water supply and new waste water systems. These projects are planning to implement in the fiscal year 2019.

IX. PROGRESS ON LINKS TO OTHER ACTIVITIES DOBRE constantly seeks to collaborate with other USAID-funded programs and continues cooperation with other donor organizations by actively participating in donor and host country coordination meetings, facilitating some of the working groups. In addition, DOBRE partnered with USAID’s ENGAGE and SACCI Projects, and the Ministry of Youth and Sports for a DOBRE- LID youth school that resulted in six youth projects DOBRE supports. In the next quarter,

73 DOBRE will also partner with international donors and programs on Budget Transparency 2018 Gala event, scheduled for November 2018. In the coming quarters, DOBRE will continue coordinating closely with other partners.

X. PROGRESS ON LINKS TO HOST GOVERNMENT DOBRE and partners actively participates in coordination meetings hosted by MRD. DOBRE attends the meeting of the Donor Board on Decentralization Reform in Ukraine. The meetings discuss key priorities for the government and how donors can better coordinate. DOBRE assists in the following:

• Speeding up the voluntary amalgamation process – DOBRE created info graphics and success stories of CCs to further help promote decentralization in non-amalgamated Rayons. This will also help in moving from quantity of CCs to quality as measured by the number and size of the CC, and possibilities of the amalgamation of the oblast significant cities with the neighbouring settlements. DOBRE also sponsored visits between its CCs and un-amalgamated villages and settlements

• Capacity building for the management of the CCs should specifically focus on project management, priority setting for development, financial management, legal support, administrative service provision.

• Gender and gender-based budgeting as a separate priority, where MRD is leading with a Code of Equal Opportunities. NDI discussed training on gender equality and gender budgeting with MRD for their staff. In addition, DOBRE partner SocialBoost met MRD Deputy Minster Partskhaladze and discussed in detail his proposals and methodical materials for integration in DOSVIT. They met with MRD’s Director of Urban Development about integrating their GIS system with the DOSVIT platform. They also presented the Knowledge Management application to the Minister of Regional Development. He approved the concept and assigned a liaison. DOBRE serves as a co-organizer and co-sponsor of the big national forums on decentralization.

XI. PROGRESS ON INCLUSIVE DEVELOPMENT As part of the DOBRE program, partner NDI has designed a program that uses targeted interventions to increase the engagement of women in local decision-making processes. This approach supports DOBRE’s broader goal of establishing more inclusive, accountable, and equitable government representation at the local level. Over the course of the DOBRE program, NDI is undertaking the following activities to support women during the decentralization process: skills-training for women leaders, education of local leaders on gender responsive budgeting

74 processes, activities to increase public understanding of the benefits of women’s political participation, and development of cross-party and cross-sector networks of women leaders. NDI and its partner Ukrainian Women’s Fund (UWF) already launched the fourth and fifth Women’s Leadership Academy (WLA) cycles, conducted the fourth round of gender responsive budgeting (GRB) trainings in the first cohort of consolidated communities (CCs) and the second round of GRB trainings in the second cohort of CCs, and co-organized and hosted the second regional women’s congress in Lviv. As a result of NDI’s programming, two WLA alumnae have successfully implemented micro-projects in their communities, gender budget groups (GBGs) committed to examining and integrating gender-sensitive practices into their programs, and Kramatorsk gender- focused caucus (GFC) held a roundtable discussion leading to an agreement to open a prenatal care center in the community.

XII. FINANCIAL INFORMATION (Required for Contracts; Optional for Other Award Types) Monitoring financial conditions is one of the most important, yet often neglected areas of reporting. In this section, please discuss issues such as unexpected expenditures, material changes in costs due to considerations outside the control of the activity, cost savings realized, and cost savings plans. Please also provide a generalized summary of all accounting activity. Note: the financial data provided in this section is an estimate of the financial condition, and does not constitute the contractually required financial reporting as defined in the Award Notice.

Cash Flow Report and Financial Projections (Pipeline Burn-Rate) In this section, please detail your financial projections. At a minimum, categories should include: 1. Obligations (the funds authorized to date for expenditure for the activity; this is NOT the Total Estimated Cost, but amount already obligated up to the time of the writing of this report).

2. Actual expenditures through the current reporting period. 3. Pipeline projection (expenditures expected, by quarter, for the coming three quarters, based on planned activity hiring, procurements, expansions, etc.).

XIII. SUB-AWARD DETAILS For each sub-award (to include subgrants and subcontracts) made in the past reporting period, please include a table like the one that may be found in Table 2 of the attached Excel spreadsheet.

75 XIV. ACTIVITY ADMINISTRATION A. Constraints and Critical Issues The efficient operation of the activity is an important consideration in the evaluation of how the implementing partner is performing. This section of the report provides an opportunity to officially notify USAID of challenges that occurred in the previous reporting period and/or are anticipated in the future. B. Personnel Over the reporting period, DOBRE saw some substantial changes in staffing, adding personnel to address the rising number of communities and their needs, starting new projects. Currently, DOBRE has four regional offices in Ivano-Frankivsk, Ternopil, Mykolayiv and Dnipro with support from central one in Kyiv. The following table outlines current positions of the DOBRE program across all offices over the reporting period:

Location Name Job title Dnipro Chmutov Pavlo Procurement / Grants Officer Kolpovska Antonina Program Officer Kondratynskyi Oleksandr Program officer Khorokhorina Iryna Administrative and Finance Manager Nahornyi Andriy Regional manager Ponomaryova Kateryna Monitoring, Evaluation and Learning Officer Radul Olena Program Officer Zubkova Viktoriia Program Officer Kyiv Barry Reed Chief of Party Local Government Budget & Financial Bochi Angela Management Specialist Burdavitsyn Maksym Local Government Service Delivery Specialist Chumak Vitalii Communications Manager Kelichavyi Bogdan Local Economic Development Officer Korsun Maxim Procurement Manager Kravchuk Iryna Monitoring, Evaluation & Learning Specialist Lisohor Illia Program Assistant Matviienko Vitaliy Procurement/Grants Officer Mayis Vanoyan Local Government Service Delivery Expert Melnyk Oleksii Construction Manager Muratov Oleksandr Local Government Service Delivery Specialist

76 Orlova Anna Accountant Petrenko Olga HR/Operations Manager Petrenko Tetyana Monitoring, Evaluation & Learning Assistant Prudka Svitlana Senior Accountant Semenyuk Iryna Receptionist/Administrative Assistant Shutov Yevgen IT Manager Shylova Anastasiia Procurement Assistant Svavolya Roman Director of Finance & Administration Tovstukha Anna Civic Engagement Specialist Tkachuk Yulia Civic Engagement Expert Yemelyanenko Olena Grants Manager Yesmukhanova Yulia Deputy Chief of Party Yurkiv Vitaliy Local Economic Development Specialist Zakharchenko Natalya Capacity Development Specialist Mykolaiv Aleksiienko Natalia Program Officer Safronova Natalia Program Officer Zahorulko Anna Program Officer Ivano- Frankivsk Dudyak Maryna Program Officer Kava Liubomyr Program Officer Ternopil Koval Dmytro Regional Manager Kozyrev Mykhailo Program Officer Martyshko Andriy Program Officer Muzychuk Oksana Monitoring, Evaluation & Learning Officer Oliynyk Mikhail Program Officer Protsyk Oleg Program Officer Zakharkiv Natalia Administrative and Finance Manager C. Contract, Award or Cooperative Agreement Modifications and Amendments Note any modifications and amendments that took place during this reporting period.

D. Status of Deliverables/Milestones By the end of the reporting period the selection committee, comprised of DOBRE experts, USAID, MRD, and U-LEAD discussed the results of practical assignment completed by pre- selected 32 communities and recommended 25 communities for joining DOBRE program. DOBRE also identified an additional three communities to potentially replace underperforming CCs from cohorts 1 and 2. Some other milestones already outlined in the Executive Summary’s A section.

77 E. Coordination and Partnerships DOBRE constantly seeks to coordinate with other USAID activities, other donors, private sector partners, and the host government. All those already reflected in section IX and X above.

F. Geographic Information DOBRE completed submission of geographic data via the Web App on October 18, 2018.

XV. ATTACHMENTS A. List of Deliverables List the “products” that were produced during the reporting period, such as Surveys, Training Designs, Trip Reports, Third Country Visit Reports, etc., and attach them. Hromada for a Million TV Show: UA and EN; Ukraine`s New Communities Tourism Guide; Children Protection Rights in CCs; DOBRE Communities Success stories: UA and En; Financial Management Assessment of 50 DOBRE partner communities; PSA on Decentralization Reform; Communications guidebook for communities; Reconstruction and development of park areas in communities; Decentralization, theory and practice. Course on Prometheus, MOOC platform; DOBRE US Study Trip Report: LED study tour to the US is outlined in the executive summary.

B. Public Outreach Documents Guidance and templates for branding and public outreach formats can be found at USAID’s Branding Resources webpage. DOBRE created numerous public outreach documents and info graphics and placed those in a shared folder.

C. Performance Data Table

D. Subawards Table (if applicable)

E. Future Activities Table DOBRE identified an appropriate way to keep all the implementing partners updated on upcoming events. We established a DOBRE Google Event Calendar, helping establish better communication and coordination between the DOBRE implementing partners and donor.

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