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Cover of HVAP Annual Report 17.FH10 Loan No.: 796-NP Grant No.: DSF-8050-NP Government of Nepal Ministry of Agricultural Development High Value Agriculture Project in Government of Nepal Hill and Mountain Areas (HVAP) ANNUAL PROGRESS REPORT (Fiscal Year 2016/17) (16 July 2016 to 15 July 2017) Implementing Partners Project Management Unit (PMU) Birendranagar, Surkhet, Nepal Phone: 00977 83 520038, Fax: 00977 83 525403 Email: [email protected] Website: www.hvap.gov.np September, 2017 (Annual Progress Report 2016/17) September 2017 Annual Progress Report 2016/17 (16 July 2016 to 15 July 2017) September 2017 High Value Agriculture Project in Hill and Mountain Areas (HVAP) Page a September 2017 (Annual Progress Report 2016/17) Page b High Value Agriculture Project in Hill and Mountain Areas (HVAP) (Annual Progress Report 2016/17) September 2017 Project at a Glance Country Nepal Title of the Report Annual Progress Report 2016/17 Project Title High Value Agriculture Project In Hill and Mountain Areas (HVAP) Project Number Loan No.: 796-NP; Grant No.: DSF-8050-NP Donor Agency International Fund for Agricultural Development (IFAD) Executing Agency Ministry of Agricultural Development, Government of Nepal Partners SNV-Nepal and Agro Enterprise Centre Location of the Project 6 Districts from Province 6 and 1 District from Province 7 Fiscal Year/Reporting Year 2016/17 Reporting Period 16 July 2016 to 15 July 2017 Year of Implementation 7th Year Total Project Budget (US$) 18.87 Million Date of Loan Effectiveness 5 July 2010 Date of Project Start 6 Feb 2011 Project Duration 7.5 Years Date of Project Completion 30 September 2018 Date of Financing Closing 31 March 2018 Budget of FY 2015/16 Year NRs. 413 Million Financial Achievement of the Reporting FY NRs. 336.7 Million (82% of the Target) 2015/16 Year Cumulative Financial Achievement till NRs. 1328 Million (99.25% of the Total Fund Reporting Period allocated of NRs. 1338 Million @ USD=NRs. 78) Households covered till reporting year 15,317 Households/24 Agribusinesses/52 LRPs (113% of total target :13555) No. of Women Beneficiaries till reporting 49,923 (99% of total target:50,400) year No. of Dalits and Janajatis Beneficiaries till 31,496 (150% oftotal target: 21,000) reporting year Average additional net income per HH in NRs. 27,733 (Target: NRs. 30,000/HH/ year at the reporting year end of the project) High Value Agriculture Project in Hill and Mountain Areas (HVAP) Page i September 2017 (Annual Progress Report 2016/17) Figure 1: Financial Achievement of the Fiscal Year 2016/17 Figure 2: Total Project’s Budget and Expenditure till 15 July, 2017 Page ii High Value Agriculture Project in Hill and Mountain Areas (HVAP) (Annual Progress Report 2016/17) September 2017 Acknowledgement It is our pleasure to present the annual progress report of FY 2016/17 of HVAP including outcomes and achievements realized till the end of this fiscal year. The project has passed more than 85 percent time of the total project period (7.5 years), covering more than targeted households (113% of 13,500 HHs) with 99.25 per cent of expenditure out of total project budget of NRs. 1338 million (reflected at the rate of 1 USD=NRs. 78). Satisfactory achievements could be made in this year with nearly 82 per cent of expenditure. In this context, I would like to thank the honourable Secretary of Ministry of Agricultural Development (MoAD) and Chairperson of the Project Steering Committee (PSC) and all the members of the PSC for providing directions, guidance and critical suggestions for the successful implementation of the project. Similarly, my sincere thanks go to the Regional Director of Agriculture, Mid Western Development Region and Chairperson of the Project Consultative and Coordination Group (PCCG) and all the members of the PCCG, for their valuable suggestions and guidance for effective implementation of the project at the field level. I also would like to thank the President of Federation of Nepalese Chamber of Commerce and Industries (FNCCI) and Chairperson of the HVAP Agribusiness Working Group for policy advocacy and guidance for the promotion of agribusinesses in the project area. Likewise, I would like to thank the project implementing partners – Netherlands Development Organization (SNV) and Agro Enterprise Center (AEC) and their officials for providing valuable advisory services and technical supports in the concerned fields during the course of project implementation. I am also thankful to all the project stakeholders at various levels who provided supports during the reporting year. I would like to thank the International Fund for Agricultural Development (IFAD), particularly its Country Program Manager, Country Program Coordinator, Supervision mission and Implementation support mission teams for their guidance, supports and cooperation. Finally, I would like to thank all the HVAP staff for their collective and positive efforts made to get the achievements during last year. My special thanks go to Mr. Krishna Thapa, M&E Expert and entire Planning and M&E team of the HVAP for preparing this report. Rajendra Prasad Bhari Project Manager September 2017, Surkhet, Nepal High Value Agriculture Project in Hill and Mountain Areas (HVAP) Page iii September 2017 (Annual Progress Report 2016/17) Page iv High Value Agriculture Project in Hill and Mountain Areas (HVAP) (Annual Progress Report 2016/17) September 2017 Contents EXECUTIVE SUMMARY ..................................................................................................................... xii PROJECT OVERVIEW ..........................................................................................................................1 I. Goal of the Project ...................................................................................................................1 II. Objectives of the Project ..........................................................................................................1 III. Target Group ............................................................................................................................1 IV. Project Approaches ..................................................................................................................1 V. Implementation Modality ........................................................................................................2 A. PURPOSE OF THE REPORT .............................................................................................3 B. PROJECT RESULTS ..........................................................................................................4 I. Major Impacts of the Project ...............................................................................4 II. Major Outcomes and Outputs of the Project ......................................................8 1. INCLUSIVE VALUE CHAIN DEVELOPMENT...............................................13 PART ONE: VALUE CHAIN DEVELOPMENT AND BUSINESS LINKAGES ......17 PART TWO: SUPPORT TO VALUE CHAIN DEVELOPMENT ........................25 SUB-COMPONENT 1.1: FUND AND FACILITIES .........................................25 FUND AND FACILITIES 1.1.1: VALUE CHAIN FUND (VCF): .........................28 FUND AND FACILITIES 1.1.2: SECTOR DEVELOPMENT FUND (SDF) ..........33 FUND AND FACILITIES 1.1.3: INCLUSION FUND .......................................34 SUB-COMPONENT 1.2: GROUP FORMATION AND STRENGTHENING .....41 SUB-COMPONENT 1.3: GENDER AND SOCIAL INCLUSION .......................44 2. SERVICE MARKET STRENGTHENING: ......................................................47 SUB-COMPONENT 2.1: MOBILIZATION AND CAPACITY BUILDING OF SERVICE PROVIDERS ...........................................................................47 SUB-COMPONENT 2.2: PARTNERSHIP AND FINANCIAL SERVICES ..........54 3. PROJECT MANAGEMENT .................................................................... 57 (Including Monitoring & Evaluation and Knowledge Management): .................... Financial Achievement ............................................................................63 C. IMPLEMENTAION ISSUES AND CHALLENGES ..............................................................66 D. MAJOR ACTIVITIES OF NEXT YEAR ..............................................................................67 E. CONCLUDING REMARKS ..............................................................................................67 High Value Agriculture Project in Hill and Mountain Areas (HVAP) Page v September 2017 (Annual Progress Report 2016/17) LIST OF TABLES: Table 1: Household Assets Index by Value Chains ..........................................................................4 Table 2: The number of malnourished children (percent) in baseline and after intervention ........6 Table 3: No. of beneficiary household faced first and second hungry season by value chains ......7 Table 4: No. of beneficiary households by Value chain till FY 2016/17 ..........................................8 Table 5: No. of individual beneficiaries ..........................................................................................9 Table 6: Average baseline and after intervention net income in 7 value chains ..........................10 Table 7: Target and Achievement in Average Net Income Increment by Value Chains ................10 Table 8: Year wise target Vs achievement of average additional net income ..............................11 Table 9: No. of households with increased additional net income of NRs 30,000 by value chain and caste/ethnicity .................................................................................12
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