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Final Evaluation Report Nepal

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Final Evaluation Report Nepal Date: 29 April 2018 FINAL EVALUATION REPORT Pashmina Enhancement and Trade Support (PETS) Project (IB41 - NEP/4B/04A, Tier 2 Enhanced Integrated Framework) NEPAL Report of the Evaluator Ganesh P. Rauniyar Independent Evaluator INDEPENDENT EVALUATION UNIT INTERNATIONAL TRADE CENTRE A SUBSIDIARY ORGAN OF THE UNITED NATIONS AND THE WORLD TRADE ORGANIZATION GENEVA, SWITZERLAND Final Evaluation of the Pashmina Enhancement and Trade Support (PETS) Project in Nepal CONTENTS ACRONYMS ........................................................................................................................................... 2 EXECUTIVE SUMMARY ......................................................................................................................... 3 INTRODUCTION ................................................................................................................................... 14 A. Background and Context ........................................................................................................... 14 B. Purpose and Objective of Evaluation ........................................................................................ 15 C. The scope of the Evaluation ...................................................................................................... 15 D. Methodology Used for the Evaluation ....................................................................................... 16 E. Project Theory of change .......................................................................................................... 17 EVALUATION FINDINGS ..................................................................................................................... 20 A. Relevance ................................................................................................................................. 20 B. Effectiveness ............................................................................................................................. 23 C. Efficiency ................................................................................................................................... 42 D. Impact ........................................................................................................................................ 51 E. Sustainability ............................................................................................................................. 53 LESSONS LEARNED AND GOOD PRACTICES ................................................................................. 57 A. Lessons Learned ....................................................................................................................... 57 B. Good Practices .......................................................................................................................... 59 C. Constraints in Project Implementation and Delivery ................................................................. 59 RECOMMENDATIONS ......................................................................................................................... 61 CONCLUSIONS .................................................................................................................................... 63 Appendix 1: Terms of Reference .......................................................................................................... 64 Appendix 1: Ex-post theory of change, evaluation questions, and evaluation matrix ............................ 99 Appendix 2: A Survey of Pashmina Product Manufacturers and Exporters in Nepal .......................... 105 Appendix 3: Key Informant Interview Guiding Questions .................................................................... 114 Appendix 4: Field Mission Schedule and Interviews Completed (26 January – 14 February 2018) ........ 121 Appendix 5: List of Persons Met/Interviewed for the Evaluation ......................................................... 124 Appendix 6: List of Documents Reviewed for the Final Evaluation of PETS Project ........................... 125 Appendix 7: List of Trade Fair Participants .......................................................................................... 127 1 Final Evaluation of the Pashmina Enhancement and Trade Support (PETS) Project in Nepal ACRONYMS ADB Asian Development Bank CP Chyangra Pashmina DF Donor Facilitator EC Enterprise Competitiveness Section EIF Enhanced Integrated Framework ES Executive Secretariat FP Focal Point GI Geographical Indication GIZ Gesellschaft für Internationale Zusammenarbeit GON Government of Nepal IEU Independent Evaluation Unit ITC International Trade Centre MIE Main Implementing Entity MOAD Ministry of Agricultural Development MOALMC Ministry of Agriculture, Land Management and Cooperatives MOC Ministry of Commerce MOCS Ministry of Commerce and Supplies MOICS Ministry of Industry, Commerce and Supplies MOI Ministry of Industry MOLD Ministry of Livestock Development MOU Memorandum of Understanding NCFT Namuna College of Fashion Technology NBSM Nepal Bureau of Standards and Metrology NIA National Implementation Arrangements NIU National Implementation Unit NPIA Nepal Pashmina Industries Association NSC National Steering Committee OAP Office for Asia and the Pacific OECD-DAC Organisation for Economic Co-operation and Development – Development Assistance Committee PETS Pashmina Enhancement and Trade Support PSC Project Steering Committee SC Sector Competitiveness Section SDG Sustainable Development Goals SME Small and Medium-sized Enterprise SWAp Sector-Wide Approach TC Technical Committee TEPC Trade and Export Promotion Centre TFM EIF Trust Fund Manager TOR Terms of Reference TRTA Trade-Related Technical Assistance TS TSI Strengthening Section UNOPS United Nations Office for Project Services UNDP United Nations Development Programme WTO World Trade Organization 2 Final Evaluation of the Pashmina Enhancement and Trade Support (PETS) Project in Nepal EXECUTIVE SUMMARY CONCISE SUMMARY Description of the object of evaluation 1. International Trade Centre (ITC) implemented the Pashmina Enhancement and Trade Support (PETS) project in Nepal under the funding from the Enhanced Integrated Framework (EIF) Trust Fund. The project was implemented from 20 November 2013 to 18 October 2017 with a budget of USD 1,861,603 from EIF and USD 200,000 equivalent contribution in kind from the Government of Nepal (GON) and the two project partners – Nepal Pashmina Industries Association (NPIA) and Namuna College of Fashion Technology (NCFT). 2. A project steering committee chaired by the Secretary, Ministry of Commerce (MOC) provided overall guidance to three focal points at MOC, ITC, and NPIA. A midterm evaluation of the project took place in 2015. This report is the final evaluation of the project, as set out in the project document. ITC, as the main implementing entity (MIE), was tasked with managing these evaluations. 3. The overall development objective of the project was to contribute to economic and social development through export growth and market diversification of CP products, manufactured by pashmina exporters in Nepal. The project was designed to achieve three outcomes: (i) NPIA provides sustainable services to its members and CP stakeholders; (ii) manufacturers increase exports in the target markets due to increased international competitiveness; and (iii) new buyers in priority markets recognize CP label as a niche luxury product. Evaluation purpose, objectives, and scope 4. The evaluation had two purposes – accountability and organizational learning. It had five specific objectives: (i) Assess the performance and results (including potential impact) of the project, in particular, to support intervention partners and beneficiaries in achieving project outcomes; (ii) Assess the progress of the implementation of the midterm evaluation recommendations that were accepted, or partially-accepted by project stakeholders; (iii) Identify lessons learned that can contribute to building better projects and programmes in the future to be used by the Ministry of Commerce (MOC), GON, the EIF Secretariat at the World Trade Organization (WTO), and ITC; (iv) Generate findings, recommendations, and lessons useful to the MOC, GON, the EIF Secretariat at the WTO, and ITC, for ongoing and future projects and programmes that are designed and funded by, or in partnership with, third-party funders; and (v) Provide recommendations for any future project in Nepal, including possible areas of interventions, building on the achievements realized and the stakeholder consultations carried out. Evaluation methodology 5. The evaluation adopted a mixed method approach comprising both qualitative and quantitative analysis. It was carried out in four stages. The first stage comprised of an inception report, which involved a document review, development of a detailed methodology, the design of field data collection tools, and a tentative mission plan. The second stage involved the field mission to Nepal for additional data collection using primary and secondary tools for obtaining data and information from NPIA, other relevant organizations, and key informant interviews with stakeholders and pashmina enterprises. In all, 38 enterprises participated in a survey and provided their candid perspectives on the state of their businesses and the sector as a whole including key actors. The evaluation triangulated data and information obtained using multiple sources where feasible. The evaluation applied the UNEG Norms
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