Sustainable Livelihood for Socially Vulnerable Refugees, Internally Displaced and Local Families

Project Proposal for United Nations Trust Fund for Human Security

Proposed by UNHCR, UNDP, UNIDO, UNFPA, UNICEF

9 October 2008; Re-submitted 31/12/08 Yerevan, Armenia

Table of Content Abbreviations...... ii Section 1: Basic Data/Summary ...... 1 Executive Summary...... 1 Section II: Introduction and Rationale for Funding from the UNTFHS ...... 2 Introduction...... 2 Rationale for Funding from the UNTFHS...... 3 Section III: Context ...... 4 a) Past and Current Activities ...... 4 b) National and Local Government Commitments ...... 6 c) Project Identification and Formulation...... 7 d) Beneficiaries...... 8 Section IV. Project Details (Goals, Objectives, Outputs, Activities, Indicators, Baseline data, Risks)...... 9 a) Definitions of the Key Terms Used in the Project Proposal ...... 9 b) Project Approach ...... 16 Section V: Sustainability ...... 16 Section VI: Implementation and Partnership Strategy ...... 17 Section VII: Public Affairs and Communications...... 18 Section VIII: Monitoring and Evaluation Plan...... 19 a) Mid-project Evaluation ...... 19 b) Final Evaluation...... 19 Section IX: Administration and Financial Management...... 19 a) Management Structure and Financing Arrangements ...... 19 b) Financial Reporting...... 20 c) Substantive Reporting ...... 20 d) Work Plan...... 21 Section X: Budget...... 21 Annex 1: Project Logical Framework ...... 22 Annex 2: Work Plan...... 30 Annex 3: Budget ...... 34 Table 1: Detailed Budget by Objective, Output & Activity for Each Year of the Project .....34 Table 2: Summary Budget by Objective for Each Year of the Project...... 41 Table 3: Budget Summary, by Reporting Object Class...... 41 Table 4: Summary Budget by Implementing Organization for Each Year of the Project* ..42 Annex 4: Terms of References (Draft)…………………………………………………………...43

i Abbreviations

ADHS Armenia Demographic and Health Survey AIDS Acquired Immune Deficiency Syndrome CBA Central Bank of Armenia CBO Community Based Organization CDM Clean Development Mechanism CDP Community Development Project CRS Catholic Relief Service CTG Cardiotocograph EBRD European Bank of Reconstruction and Development FTE Full Time Equivalent GDP Gross Domestic Product GoA Government of Armenia GTZ German society for technical cooperation (Deutsche Gesellschaft für Technische Zusammenarbeit GmbH) HCF Health Care Facility HIV Human Immunodeficiency Virus HLS Health Life Style HPC Housing Purchase Certificate HUO Head of UNIDO Operations INC Intensive Neonatal Care JMF Jinishian Memorial Fund KfW Kreditanstalt Für Wiederaufbau (German Development Bank) MCH Maternal and Child Health MDG Millennium Development Goal MFI Micro Finance Institutions MoE Ministry of Education MoH Ministry of Health MPS Making Pregnancy Safer NGO Non-Governmental Organization NRC Norwegian Refugee Council PTC Programme Development and Technical Cooperation Division PHC Primary Health Care PRSP Poverty Reduction Strategy Paper PSD Private Sector Development SME Small and Medium Entrepreneurship SME DNC Small and Medium Entrepreneurship Development National Centre SRH Sexual and Reproductive Health STI Sexually Transmitted Infection TGT Travelling Gynaecologists Team ToT Training of Trainers UCO Universal Credit Organization UNDAF UN Development Assistant Framework UNTFHS United Nations Trust Fund for Human Security

ii

Section 1: Basic Data/Summary

Date of submission October 1, 2008; Re-submitted on 31/12/2008 Benefiting country and location Armenia, Kotayk region (Kasakh community), Gegharkunik region (Pambak and Geghamasar communities) Title of the project Sustainable Livelihood for Socially Vulnerable Refugees, Internally Displaced and Local Families Duration of project Two years: from 1 January 2009 to 31 December 2010 UN organization responsible for UNHCR coordination of the project Ms. Bushra Halepota, UNHCR Representative Phone: (37410) 56-47-71 Fax: (37410) 56-78-17 e-mail: [email protected] UN Executing partners UNHCR; UNDP; UNIDO; UNFPA; UNICEF Non-UN executing partners Private and Civil Society Partners ; Local Government Total Project cost including PSC (in US$) 2,417,130

Executive Summary The proposed project on Sustainable Livelihood for Socially Vulnerable Refugees, Internally Displaced and Local Families aims at ensuring sustainable livelihood for poor/vulnerable households (including women and youth) in Kasakh (Kotayk region), Geghamasar and Pambak (Gegarkunik region) communities and their clusters. The implementation of the project will have achieved two main objectives as follow: 1) increased access to suitable housing in Kasakh community for the socially vulnerable and disadvantaged families through remodelling of a former factory building into social housing units; 2) improved living standards in Kasakh, Geghamasar and Pambak communities for socially vulnerable families through the generation of sustainable income opportunities.

To reach these objectives, the project will implement the following main activities: ∼ Build social housing for socially poor and disadvantaged population. ∼ Implement community/cluster sub-projects for upgrading of existing infrastructure in the communities. ∼ Increase capacity of local governments and communities for strategic planning, budgeting, implementation, monitoring and reporting. ∼ Provide sets of trainings on entrepreneurship and business skills development. ∼ Identify successful businesses in relevant sub-sectors in other administrative regions and organize short- term internship for the project beneficiaries. ∼ Establish Small and Medium Entrepreneurship (SME)-supporting Fund and provide start up loans. ∼ Support community-owned programmes through re-investing part of revenue from SME-supporting Fund for the implementation of such programmes in cooperation with local authorities. ∼ Establish two pilot biogas demonstration units in Pambak and Geghamasar communities using local resources, for providing reliable and affordable energy services and linking with productive uses for income generation activities and strengthen local capacity in operational and maintenance aspects of biogas systems. ∼ Improve health care facility (HCF) infrastructure, provide medical equipment and increase capacity and skills of primary and secondary healthcare providers in Maternal and Child Health (MCH), Intensive Neonatal Care (INC), Making Pregnancy Safer, Sexual and Reproductive Health (SRH), HIV/AIDS, Sexually Transmitted Infections (STI). ∼ Establishment of parental education centres in primary health care (PHC) facilities. ∼ Improve the school infrastructure through provision of furniture, computers, and audiovisual equipment and support school administration in rolling-out Healthy Life Style (HLS) classes.

The main beneficiaries of the project are the general population, and particularly poor and vulnerable populations (including women and youth) of the Kasakh, Geghamasar and Pambak and neighbouring communities in two regions of Armenia.

1 The overall purpose of the project is to assist vulnerable families in reducing poverty through providing social housing, increasing their self-sustainability through income generation activities and access to diversified energy services, enhancing living conditions, health care services as well as improving educational opportunities, capacity building of direct beneficiaries and self-government bodies through provision of required training. The implementation of this project will secure vulnerable people’s lives, livelihoods and dignity in the real life. In consultation with the participating agencies, parallel fund management option has been chosen as the most effective and efficient scheme to manage the project funds and achieve the common desired results. Under this option each agency manages its own funds and this joint programme document contains the common work plan and consolidated budget reflecting the inputs from each involved party.

Section II: Introduction and Rationale for Funding from the UNTFHS Introduction At the beginning of the 90s Armenia regained its independence from the Soviet Union, simultaneously undertaking massive political and economic reforms to transform into a democratic system and market economy. However, unfortunate developments of early 90s, including the military conflict over the Nagorno- Karabagh, economic blockade by Azerbaijan and Turkey, internal political turbulences and aftermath of the devastating earthquake of 1988, have aggravated transitional decline, halving the Gross Domestic Product (GDP) in a few years. In 1994, the country resumed its economic growth with average annual 9% rate. The fast economic growth of last five years has accelerated and averaged in 13.1% annually. The last fourteen years of uninterrupted recovery and extensive reforms, accompanied by decline in population have resulted now in the GDP per capita exceeding the pre-transition level. Thus, in 2005 per capita GDP in dollar denomination was $1.523, in 2006 $1982.8, and in 2007 2,844 against $786 in 2002. These important achievements of the recent decade, however, have brought less social prosperity than could have been hoped. While the social deterioration of the early 90s was caused by rapid economic contraction, the doubling of GDP since the end of the crisis did not bring significant improvement in the lives of most of Armenians and poverty defined by the official poverty line is still above 26.5%. Income inequality that dramatically worsened in the early stages of transition did not sufficiently improve after the end of the crisis. This is the main factor impeding social prosperity. In spite of impressive economic growth, the country faces a danger of further social deterioration, which endangers country’s relatively high human development records – high literacy rates and long life expectancy. The environmental situation and gender imbalances in Armenia remain other major challenges to face as well. Because of social uncertainties, tension and lack of protection and tolerance, the socially vulnerable groups, including newly emerged groups such as refugees and internally displaced people have been at the core of problems. They have suffered from social exclusion and poverty in a broader sense, which includes opportunity deprivation as well. In addition, the recent UN-led vulnerability assessment survey revealed the emergence of the so-called “new“ socially vulnerable groups, such as teachers, rural residents, young families and youth in general, people employed by the public organisations, and beggar and street children. In addition to overarching social indicators, health and nutrition indicators of children and women in Armenia are also not very encouraging. The Armenia Demographic and Health Survey (ADHS) 2005 estimated child mortality at 30 per 1,000 live births for 2001 – 2005, down from the 36 per 1,000 estimated for 1996 - 2000. Child mortality rates are more than two-fold higher among the poorest quintile when compared to the wealthiest quintile. It clear that with the current trends it is unlikely the country will reach its Millennium Development Goal (MDG) - 4 targets of 10 per 1,000, unless greater attention is provided to early neonatal period and to increasing health expenditures. Full timely vaccination coverage among children aged 12-23 months declined from 76% in 2000 to 60% in 2005. The nutritional status of children is deteriorating. According to ADHS of 2000 and 2005, while stunting levels have stagnated (at 13% for children age under five years), there has been an increase in wasting (from 2.3% to 5%) and underweight (from 2.8% to 4%). The prevalence of anaemia among children under five years has risen sharply from 24% in 2000 to 37% in 2005. The percentage of children aged less than four months who are exclusively breastfed has declined from 45% to 37%. According to official statistics, 7.9% of children were born underweight (<2,500 grams) in 2006. The adult (15-49 years) HIV prevalence is 0.12%, and is concentrated among high-risk groups. The number of new annual cases is increasing; 77 new cases of HIV infection have been registered in 2007 (as of 31st 2 October) that has gone up from a total of 66 cases in 2006.Recent UNICEF-supported studies highlighted that adolescents are poorly informed about HIV/AIDS, while especially vulnerable young persons engage in risky health behaviours. According to the School Based Health Survey, children aged 12-17 lack essential knowledge on most health issues, including HIV/AIDS, SRH, while teaching of such issues in the schools is not satisfactory. While schoolchildren considered themselves healthy, at the same time they mentioned a number of different complaints; in most cases, they addressed the problems to nobody. These results can be complemented by the results of UNFPA study, which reviled that young people have limited access to facilities providing counselling services on HIV/STIs and family planning, and health care providers have not been trained to recognize or respond to their needs. Recognizing the implications of mass impoverishment and social injustice for political stability, the Government of Armenia (GoA) and civil society adopted a Poverty Reduction Strategy Paper (PRSP) in 2003, aimed at generating high rates of economic growth and redistributing this growth to social programmes for the poor and socially disadvantaged. In line with the MDGs, the GoA intends to set the foundation for eradicating mass poverty and improving the living standards of its citizen by 2015, by implementing PRSP. Twice higher than expected economic growth rates in 2003-2006, as well as the substantial growth of the states expenditure capacities lead to a situation that in medium and long-term perspective PRSP-1 targets will be substantially surpassed. Such a trend steeply reduces the degree of realism of PRSP-1 and the opportunity of using it as the major strategic program conditioning the long-term development of the country. These and a range of other factors come to witness the need to develop PRSP-2, which is approved recently by the Government with changed title Sustainable Development Strategy Action Plan to support the implementation of strategy which is currently underway. In response to an appeal from the Government and the civil society to support the national goals embodied in the PRSP, the UN has developed an assistance framework for the five-year-period from 2005 to 2009 -- UN Development Assistance Framework (UNDAF). UNDAF builds on the positive achievements of the Government and the civil society and is concordant with the targets and strategies outlined in the PRSP. Following the Millennium Summit in 2000, and building on the process of PRSP, the Armenian MDG initiative of 2005 was a signal of readiness of international community and the GoA to comprehensively address long- term development challenges. Development of the MDG regional frameworks are planned for 2008 (the pilot project in Syunik region has been completed) to serve as a basis for preparation of the regional MDG reports regional development plan. This joint UN initiative aims at localizing the MDGs by the regions of Armenia in line with the regional development plans where applicable. It also helps the Government better target the problems of the socially vulnerable groups of the Armenian population. Considering the interlink between the vulnerability and poverty issues, vulnerability reduction is viewed by both the Government and the UN as a precondition for implementation of effective social and poverty reduction policies. UN Country Team, setting the UNDAF for 2005-2009 (adopted by the GoA in 2005) with its overarching goal of reducing economic, social and political inequity, has prioritized its work towards assisting the poor and vulnerable groups of the population of Armenia. Rationale for Funding from the UNTFHS The rational for applying for funding from the United Nations Trust Fund for Human Security (UNTFHS) is that the UNTFHS aims at ensuring protection of the vital core of all human lives realizing minimum living standards, including assisting community-level efforts to establish mechanisms to protect those exposed to extreme poverty, sudden economic downturns after the collapse of the Soviet Union and Nagorno-Karabagh conflict. The proposed project includes activities to assist vulnerable families in reducing poverty through providing social housing, increasing their self-sustainability through income generation activities, capacity building of direct beneficiaries and self-government bodies through provision of required training. The implementation of this project will secure vulnerable people’s lives, livelihoods and dignity. This project envisages addressing the human security concerns of refugees and people in displacement with a focus on protection through a durable solution (local integration). It has a two-tired approach with empowering refugees and providing support to them through enhancement of community infrastructure and services. Thus,

3 the project targets people and situation that the UNHSTF prioritizes. Enhancing living conditions, healthcare services, as well as improving educational opportunities are other important UNHSTF’s objectives. As addressing all these issues requires multi-sectoral approach, different UN agencies including UNHCR, UNDP, UNIDO, UNICEF and UNFPA have been involved directly in developing the project and they will be involved in implementation of the proposed project.

Section III: Context a) Past and Current Activities In Armenia, different UN Agencies have vast experience in implementing activities and projects aimed at enhancing human security. The basic approach employed in the previous projects was in line with the “Protection and Empowerment” framework, providing specific benefits to vulnerable people and communities threatened in their survival, livelihood, educational opportunities and dignity. The fundamental lesson drawn from the previous experience is that developmental assistance places priority on multi-sectoral and inter-agency collaboration and partnership with non-governmental organizations (NGOs) and other local entities to ensure protection and empowerment of vulnerable groups. Presented below is the experience of different UN agencies in implementation of this type of activities. UNHCR - Since UNHCR established a presence in Armenia, it has provided support to the Government of Armenia to address the housing needs of the refugees from Azerbaijan. Beginning in 1994, UNHCR has implemented various shelter activities to provide adequate permanent housing to the refugees who fled from Azerbaijan between 1988 and 1992. Upon their initial arrival during this period, the refugees were settled in former resort houses, hotels, schools, kindergartens and dormitories (referred to as communal centres) in urban areas or in houses, formerly occupied by departing ethnic Azeries living in rural areas. Over the past fifteen years UNHCR has taken different approaches to the provision of permanent shelter to the refugees from Azerbaijan. UNHCR’s shelter activities currently target the most needy refugees living in communal centres in support of the GoA's strategy to promote and facilitate the local integration of refugees from Azerbaijan in Armenia. As of today, UNHCR has constructed, remodelled or fully repaired more than 4,000 permanent housing units in 58 different sites. There are few dozens more in the pipeline. Several of these shelter projects have been co-funded with other international organisations, including German Development Bank (Kreditanstalt Für Wiederaufbau - KfW), Norwegian refugee Council (NRC) and the Jinishian Memorial Fund (JMF). Although many refugees living in communal centres have been assisted by UNHCR's shelter activities as well as by others, according to Government sources there are some 2,500 refugee families who are living in sub-standard temporary shelters and in need of adequate permanent housing. Since 2002, UNHCR has taken a rights-based approach towards shelter provision and integration of refugees from Azerbaijan by mainstreaming refugee needs and concerns into the existing and future national human rights protection and poverty eradication mechanisms in Armenia. In particular, UNHCR has assisted in the development of the required legislative and administrative framework for the protection of refugee housing rights. In this manner, UNHCR’s shelter activities are considered both protection and assistance activities. The strategy for refugees to have adequate permanent shelters and exercise their housing rights consists of five types of action divided in two components: “hardware” and “software”. The “hardware” component includes the provision of housing through the physical construction or repair of housing units for the most vulnerable refugees or through providing Housing Purchase Certificates (HPC). The “software” component includes the privatisation of communal centres for refugees based on the 2000 Law on Legal and Socio-Economic Guarantees for Persons Forcibly Displaced from Azerbaijan from 1988-1992, the transfer of ownership of refugee housing constructed with funding from international organisations and the state budget, and the legal protection against the violation of housing rights of refugees, especially those under threat of eviction. The improved skills for income generation activities and increased opportunities for start-up businesses will make the refugees and naturalized former refugees self-sufficient and a part and partial of the Armenian society. The UN agencies have considerable experience with this kind of projects and most of them have met their objective. For instance, 80% of all participants in all vocational training courses organized by UNHCR found work within a few weeks after the completion of the training and the remainder at least within 6 months. UNDP - During the last 5-6 years the main trust of UNDP programme is at local/community level. Programme included rehabilitation of economic and social infrastructure, creation of income generation opportunities and access to finance for the poorest. Currently UNDP is implementing projects throughout the country in almost all regions with some concentrated efforts in cluster of communities in Shirak, Armavir, Tavush and Syunik regions. The Programme generates community-based prioritization of community and district development 4 needs, and creates partnership-based implementation structures to convert plans into investment realities. Objectives in this area include the establishment of professional, well-trained civil servants, competent public administration that is transparent and accountable, active and bold civil society, and quality public services at the community level. Although many of these interventions have been successful, a number of difficulties have arisen related to: a) lack of a comprehensive strategy on community and rural development; b) failure to adopt a fully participatory approach during project cycling; c) failure to ensure integrated and mutually reinforcing projects and activities; d) inadequate linkages between and within communities and local self-government. UNDP’s development experience suggests that chances for viable and sustainable community development in Armenia could be significantly higher if integrated and community based development approaches are applied to development initiatives. This assumes that development initiatives should address not only issues such as rehabilitation of physical infrastructure and income generation, but also such essential aspects of community development as improving governance and recovering communities’ social fabric. In addition, the aspect of economic viability of development interventions is another crucial element of a successful project. The proposed project aims to consider the above-mentioned concerns and fully integrate the recommendations and lessons learned from previous experience, capitalize on UNDP’s experience with communities and complement the ongoing activities implemented by UNDP and other development actors. In this regard, an assessment has been conducted on key donors funded activities in the area, followed by discussions with key donors, in order to elaborate joint strategies to address the needs and develop the capacities of the targeted communities. None of this project’s components overlaps with or is in conflict with other donors’ activities. Rather, they complement the ongoing activities or fill gaps in the provision of support to the targeted communities. UNIDO – Since the establishment of UNIDO Desk in Armenia, the Agency aimed to support efforts of the Government to increase employment and business opportunities in Armenia by helping to rehabilitate industrial and productive capacity and create enabling environment that promotes investments and market access and overcomes poverty, for meeting goals of MDGs and PRSP. It also helps the private sector and communities to generate jobs and reduce poverty through strengthening Small and Medium Entrepreneurships (SMEs) in the regions, enlarging opportunities for innovative and energy-efficient technology transfer, promoting clean production and increasing public awareness on use of renewable energy. In December 2007 UNIDO conducted Country Needs Assessment with emphasis on Gegharkunik region aiming to analyse the industrial development needs and areas requiring UNIDO’s technical cooperation. SME and private sector development (PSD) and renewable energy are mentioned as priority areas for UNIDO interventions both at national and regional levels. UNIDO will not only support start-up businesses, but will also explore possibilities of introducing new, innovative business models, such as development of industrial clusters and credit guarantee schemes to ease collateral requirements for loans, etc. SME and PSD are in the centre of assistance rendered by many donor Agencies to Gegharkunik region: European Bank for Reconstruction and Development (EBRD) financed Business Advisory Services aimed at the identification of needs of selected industrial enterprises in technical cooperation services. A number of SME-supporting projects have been implemented by German Society for Technical Cooperation (GTZ), providing consultancy services to Small and Medium Entrepreneurship Development National Centre of Armenia (SME DNC) regarding the establishment of a loan guarantee foundation. International donor organisations have established several credit lines, being serviced by Armenian banks and micro-finance institutions (MFI). However, none of them rendered assistance to the projects in selected communities of Geghamasar, Pambak and Kasakh. In addition to supporting start-up businesses, UNIDO will focus its work on development of renewable energy sources for rural energy and productive use and establishment of pilot systems for meeting local energy needs and catalysing income generation activities. UNFPA - Starting from 2003, UNFPA/Armenia office helped the GoA to establish 6 Travelling Gynaecologist Teams (TGT) consisting of a gynaecologist and an echoscopist. Each of these teams serves the population of 25 to 40 villages examining and screening pregnant women and providing counselling to the population on reproductive health issues. The teams are equipped with mobile ultra sound machine, portable doppler and cardiotocograph machine (CTG). This initiative is aimed at decreasing maternal morbidity and mortality, and 5 contribute to early detection of illnesses during pregnancy. In addition, each year 120-150 physicians (gynaecologists, family doctors, etc.) are trained on modern methods of contraception. These trainings of health specialists in the selected population areas will help strengthen their professional capacity contributing to availability of quality services. Starting from 2000, UNFPA has started its Y-Peer youth initiative in different countries, aimed at establishment of a network of peer educators, who will become the advocates of youth’s SRH issues in their respective countries. The initiative is also aimed to involve and sensitize parents. Since then, the network of 500 active peer educators was created and 30 youth friendly services were established. The project will help to enlarge the network of peer educators, as well as open new youth-friendly centres equipped with trained, professional service-providers, and will increase access of young people to treatment and counselling on the issues of Sexual and Reproductive Health (SRH). All these activities are in accordance with MDG’s and will contribute to their achievement. These activities are also in line with the Armenian National Strategy on Reproductive Health and National Youth Strategy. UNICEF - Over the last 15 years UNICEF and the Ministry of Health (MoH) are effectively collaborating in MCH area. Although this collaboration resulted in a number of achievements – reduction of infant mortality, certification of the country as polio free, elimination of iodine deficiency disorders through universal salt iodisation - the 2005 Armenian Demographic and Health Survey (ADHS) and official statistical data identified several gaps in mother and child health that need to be addressed urgently including: a) stagnation of infant mortality rate over the last 5 years; b) deterioration of mother and child nutrition indicators; c) essential decrease in timely vaccination rates; d) low accessibility (both financial and geographical) of quality MCH services. It is essential to note that all these negative tendencies are more evident in rural areas as well as among the most vulnerable/poor population groups. In fact, population of Kotayk and Gegharkunik regions have the highest vulnerability index 1. To overcome the challenges and ensure improvement of MCH the MoH and UNICEF have developed comprehensive strategies aimed at strengthening of PHC system and ensuring accessibility of quality neonatal and antenatal services for the whole population. The proposed project aims to establish a community based effective healthcare services that meet basic health needs of population of Kasakh, Geghamasar and Pambak communities (the neighbouring communities will also benefit). None of the project’s activities overlaps with other partners’ activities. This project will be complemented by other partners in the provision of a comprehensive social package to the vulnerable population of the targeted communities. b) National and Local Government Commitments Recognizing the implications of mass impoverishment and social injustice for political stability, the GoA and civil society adopted a PRSP in 2003, aimed at generating high rates of economic growth and redistributing this growth to social programmes for the poor and socially disadvantaged. By implementing the PRSP, the Government intends to set the foundation for eradicating mass poverty and improving living standards by 2015 in accordance with the MDGs. Building on the process of PRSP, the Armenian MDG initiative was a signal of readiness of international community and the GoA to address long-term development challenges comprehensively. The MDG targets have been nationalized in 2005 and are in line with the PRSP. The proposed project activities are designed in line with the MDGs, targeting, in particular, poverty reduction, education, health and environmental challenges of the country at the community level. Relationships of different sub-projects of this project to the national and local commitments are presented by the participating UN Agencies as below: UNHCR - The overall purpose of the sub-project is to assist some 50 vulnerable families (both refugees and locals) with the provision of sustainable social housing, linking the same with other activities, such as income generation, enhancing living conditions and healthcare services, improving educational opportunities, building capacity of direct beneficiaries and self-government bodies (through provision of required training planned to be implemented by other sister UN agencies under this project), etc.

1 Vulnerable Population in the Marzes of Armenia. Armenia Social Trends Newsletter. UNDP, October 2005. 6 UNDP - These sub-projects are of a local nature that target individual farmers and rural households. The sustainability of these sub-projects is related to project design/implementation concepts and mechanisms, which are addressed in Section V. UNIDO - SME sphere is considered as one of priority directions for development of Armenian economy. SME development policy is aimed at full value utilization of the potential of SME sphere in the context of economic, social and political development of the Republic of Armenia. Currently, in Armenia the financial support to SMEs in rural communities is provided in the framework of loan guarantee provision program implemented by the “SME DNC of Armenia” Fund. The program allows the solvent entrepreneurs to get loans in terms of insufficient pledge amount and low liquidity, which is particularly specific for the SMEs operating in distant and close to the border regions of Armenia. Armenian energy strategy documents stated Renewable Energy development, including biomass energy, as high priority of energy sector development. In May 2007, new tariff for biomass based electricity production is set as 35 AMD per one kWh of electricity, without Value Added Tax, encouraging private sector for renewable energy production. Utilization of biomass in Armenia benefits from favourable public opinion and strong support from local authorities and private farm owners. The presence of skilled local personnel in biomass matters (resource assessment, technical, financial etc) essentially eased the implementation of such projects in the Republic. Finally, development of Biomass Energy in Armenia can be strongly supported within the framework of the Clean Development Mechanism (CDM) of the Kyoto Protocol under the United Nations Framework Convention on Climate Change. UNFPA and UNICEF – The sub-projects to be implemented within the framework of this project by UNFPA and UNICEF in Kasakh, Geghamasar and Pambak rural communities are in consistency with PRSP and MDGs, particularly MDG 4 – reduction of child mortality, and MDG 5 – improvement of maternal health. Both agencies will closely collaborate with the MoH and regional health authorities in all steps of sub-projects implementation. All the approaches proposed by UNFPA and UNICEF are approved by the MoH as national strategies and target mother and child health. c) Project Identification and Formulation This section presents steps undertaken by the involved UN Agencies in project development including consultations with the implementing partners and beneficiaries. UNHCR – Thorough discussions were carried-out with local authority in Kasakh with respect to the need and implementation of social housing for vulnerable refugees and locals. The basic principles have been agreed upon in terms of: • provision of the site and unfinished building for social housing by the local authority; • concept in general and design of the social housing in details, once the project is approved; • construction of the social housing building strictly following the established UNHCR procedures through an implementing partner; • selection of the beneficiaries; • management of the social housing by the local authority; • obligations of both local authority and UNHCR with respect to implementation of this project.

UNDP - Building on the community based rural development good practice already established by UNDP, initial community development plans are created in each of Kasakh, Geghamasar and Pambak communities. The planning process was based on participatory approach facilitated by UNDP, to build the capacities of planning and prioritizing within the communities. Participation planning method implemented in Kasakh, Geghamasar and Pambak communities was used as a mechanism for civic activeness and inclusive decision-making. This approach generates ownership among community members and provides an opportunity for developing more targeted and accountable local governance practices. The process involved certain key components, customised to the specifics of Kasakh, Geghamasar and Pambak communities: • Meetings for all residents (aim, process, timing, participation, initial priorities, etc.); • Selection of Working Group members (including Council, NGOs, residents, private sector, etc.); • Focus Group Discussions (focusing on gender, youth, income generation, irrigation, and other issues); • Preparation of vision and main goals; 7 • Preparation of socio-economic situation analysis (SWOT, etc.); • Preparation of measures, responsibilities, costs, deadlines, etc; • Preparation of implementation mechanism, monitoring and evaluation plan; • Approval of the Strategic Community Development Plan by the Community Council.

UNIDO - Project sites were identified by UNHCR in cooperation and consultation with the UN Agencies participating in the project. UNIDO organised field visits to the three proposed target sites for identification and preliminary technical assessment of the communities’ capacity, potential for entrepreneurship activities, and current needs in diversified energy sources. Two national consultants were hired for the development of the full-scale proposal. The consultants conducted meetings and interviews with community leaders and members. Programme Development and Technical Cooperation Division (PTC) technical staff has provided its feedback and comments on the draft proposal. In August 2008 the draft project document cleared for further development and submission to the UNHSTF, on the understanding that the final document should be submitted to the UNIDO Programme Approval Commitee for endorsement. UNFPA and UNICEF – Both sub-projects’ planning process was based on participatory approach and included discussions with national and regional health authorities, direct beneficiaries and community leaders. UNICEF and UNFPA staff visited HCFs in each of Kasakh, Geghamasar and Pambak communities as well as in regional centres. UNICEF and UNFPA have positive experience in project implementation in Kotayk and Gegharkunik regions, and there is a strong commitment from national and regional health authorities to support the project. Within the Project, UNICEF’s and UNFPA’s activities are strongly complimented and support each other. Together, they will ensure provision of quality health services to the target population. Involvement of local partners, such as community authorities, regional health departments, national partners as well as multi-agency cooperation will insure effective implementation of proposed project activities in targeting various needs of the three target communities and will provide means to ensuring its sustainability. d) Beneficiaries Beneficiaries of this project include population of the selected communities in Gegharkunik and Kotayk regions of Armenia. As a whole, total population of the three communities (some 8,800 people of which about 51.2% are women and 48.8% men) will benefit from the proposed project. Specific project beneficiary groups targeted by sub-projects and implementing agencies are as below: UNHCR – The sub-project will assist vulnerable families (both refugees and locals) with the provision of social housing. Approximately 50 socially vulnerable and disadvantaged families in desperate need for shelter and other related assistance will benefit from the sub-project directly. Selection of beneficiaries will be carried-out in accordance with the beneficiary selection criteria that will be established with thorough coordination and consultation with State Migration Agency (SMA) and local authorities as relevant. UNDP - The sub-project will support the empowerment of poor/vulnerable rural households (women headed households and households with three and more children), as well as will focus on activating youth by promoting their participation in economic and civic life. Specifically, efforts will be made to ensure that: • The municipalities of Kasakh, Geghamasar and Pambak communities will benefit from the project in terms of community and economic development, as well as strengthening local capacities and governance. • 700 poor/vulnerable households will be assisted in the target communities through provision of seeds, livestock and small-scale processing activities, designed to raise nutrition levels, increase incomes and empower such households through registered women’s associations. • 700 poor/vulnerable households will benefit from the creation of cooperatives and support to be provided for the establishment of modern cooperatives designed to pool effort and resources, leading to higher levels of productivity and income.

Beneficiaries will be selected though a vulnerability and capacity assessment to be done by UNDP’s Community Development Project (CDP) and SME Development Project.

8 UNIDO – The sub-project will support the empowerment of poor/vulnerable rural households, with special focus on women and youth by promoting their participation in economic and community life. Specifically, efforts will be made to ensure that: • 200 start-up entrepreneurs (targeting youth, women-headed families) will be trained in target and neighbouring communities on entrepreneurship and business management and will benefit from increased access to lending sources through establishment of SME-supporting revolving Fund. The implementing partner will be selected by UNIDO through competitive selection process. • The municipalities of Kasakh, Geghamasar and Pambak communities will benefit from the project by re-investing agreed part of the revolving fund in the community works and participation in the Revolving fund management, also participating in management of the SME-supported Revolving Fund as Fund Board members. • Preliminary survey and site visits made in July-September 2008 allows to assume that 50% of income will be generated by local agroproducts processing/production sector, 30% - by service sector, including hospitality services and 20% by packaging&transportation, and trade sector. • Biogas unit support households will benefit from the access to alternative energy sources.

UNFPA and UNICEF - Overall, the beneficiaries of proposed sub-projects will be the whole population of Kasakh, Pambak and Geghamasar communities, as well as the neighbouring settlements, who will benefit from client friendly health services provided by the trained healthcare providers working in the well-equipped and renovated HCFs. In total at least 8,800 individuals will directly and indirectly benefit from the implementation of the project activities. In addition, all women from the target communities will have access to services provided by the TGTs. Both sub-projects will focus on increasing the accessibility of healthcare services, especially for vulnerable population and will support engagement of community members in addressing their health needs. Youth and women will particularly benefit from the project implementation, hence UNFPA-supported strategies are especially designed for them. They will be provided with all basic health services (including immunization, management of common childhood illnesses, monitoring of child growth and development, antenatal, intranatal and neonatal care) delivered by trained healthcare providers in adequately equipped health facilities. Through establishment of parental educational/support centres in each of the communities, UNFPA in cooperation with UNICEF will ensure that pregnant women, parents and caretakers receive appropriate information on all aspects of child health and nutrition and share their experience.

Section IV. Project Details (Goals, Objectives, Outputs, Activities, Indicators, Baseline data, Risks) a) Definitions of the Key Terms Used in the Project Proposal i) Goals and Objectives Project Goal: The project goal is to ensure sustainable livelihood for general population and particularly poor/vulnerable households (including women and youth) in Kasakh (Kotayk region), Geghamasar and Pambak (Gegarkunik region) communities tackling the MDGs on poverty. Project objective 1: Increased access to suitable housing in Kasakh community for the socially vulnerable and disadvantaged families through remodelling of a former factory building into social housing units. Project objective 2: Improved living standards in Kasakh, Geghamasar and Pambak communities for socially vulnerable families through generating of sustainable income opportunities. ii) Outputs and Activities Output 1.1: By the end of the project social housing units for some 50 socially vulnerable and disadvantaged families is completed and sheltered. Responsible agency: UNHCR Activities 1.1 1.1.1 Prepare and sign an agreement with local government on allocation of identified incomplete building. 1.1.2 Prepare technical assessment and drawings design. 1.1.3 Identify and select a specialized construction company. 1.1.4 Complete the construction/renovation of the building through involvement of public works. 1.1.5 Implement community project for upgrading of existing infrastructure (sewerage, water, gas and electricity, communication lines, health post).

9

Output 2.1: By end of the first year of the project, the capacity of local governments in three communities for strategic plan design and implementation is increased. Responsible Agency: UNDP Activities 2.1 2.1.1 Prepare and sign a Cooperation Agreement with local government, community leadership, UN Agencies and civil society in each community. 2.1.2 Prepare Participatory Strategic Community Development Plan in line with the long-term socio- economic development plan of community in each community or cluster of communities. 2.1.3 Introduce Performance Budgeting methodology in strategic planning process in target communities.

Output 2.2: By end of the project, 700 vulnerable households will have improved skills for income generation activities and increased opportunities for start-up businesses. Responsible Agency: UNDP Activities 2.2 2.2.1 Identify and select the target families, identify their skills and needs. 2.2.2 In parallel conduct market research and feasibility study of the geographic area and relevant surveys aimed to identify income-generation activities. 2 2.2.3 Forming of relevant groups as per the identified income-generation activity. 2.2.4 Identify and provide vocational trainings on farming production cycle procedure to the beneficiaries. 2.2.5 In parallel procure needed agricultural equipment and production means.

Output 2.3: By the end of the project, beneficiaries (700 vulnerable households) are fully integrated into the community-based organisations. Responsible Agency: UNDP Activities 2.3 2.3.1 Support setting up a board with the involvement of most active members in each target community. 2.3.2 Encourage involvement of the beneficiaries into the community-based organizations, in particular, women’s organizations and networks, Farmers’ Associations, etc.

Output 2.4: By end of the project, 200 start-up entrepreneurs have improved competencies and business management and marketing skills. Responsible Agency: UNIDO Activities 2.4 2.4.1 Assess local business development resources to identify potential in production/processing, services and trade sectors. 2.4.2 Conduct a survey to assess local market needs in products, services and trade. 2.4.3 Identify potential market niches for local businesses, develop feasible start-up business concepts for each sector/sub-sector with development potential. 2.4.4 Interview and select 200 potential participants, and form target groups for capacity building by sectors in each community, assess participants’ training needs and adapt training programme for each target group. 2.4.5 Provide 5-day (25 hours) 12 trainings on entrepreneurship and business skills development, including business and financial planning, marketing, production management and quality control, etc. Assist participants in developing business plans through individual consulting sessions and provide counselling support to the beneficiaries. 2.4.6 Identify successful businesses in relevant sub-sectors in other administrative regions and organize short-term internship for the project beneficiaries.

Output 2.5: By the end of the first year of the project implementation, SME-supporting Fund is established/expanded and opportunities for lending are increased for start-up businesses in the target communities. Responsible Agency: UNIDO

2 The income-generation activities will be concentrated around wheat production, potato production and cattle breeding activities. These activities are considered the natural comparative advantages of the targeted communities. 10 Activities 2.5 2.5.1 Develop/review the terms of Reference for SME-supporting Fund management. 2.5.2 Organize a tender among MFIs, business support organizations and/Universal Credit Organizations (UCO); sub-contract the implementing partner for SME-supporting Fund management. 2.5.3 Provide start up loans to 100 businesses in two years. 2.5.4 In cooperation with local authorities develop guidelines and procedures for re-investing part of the revenue received from SME-supporting Fund into implementation of community-owned programmes. 2.5.5 Support community-owned programmes through re-investing part of revenue from SME-supporting Fund for the implementation of such programmes in cooperation with local authorities.

Output 2.6: By the end of the project, population of Pambak and Geghamasar communities, have increased access to diversified energy services. Responsible Agency: UNIDO Activities 2.6 2.6.1 Carry out needs assessment in two selected communities to determine potential of locally available resources, extent and kind of energy services needed, relevant renewable technologies, (e.g. bio- energy, solar etc.) and scope of assistance and utilizing renewable energy resources accessible for productive uses. 2.6.2 Develop main and alternative options of renewable energy (RE) production, taking into account possible involvement of community members, i.e. establishment of community support groups, to promote biogas production through the joint collection of manure, biomass and organic waste. 2.6.3 Develop and discuss options of utilisation of produced energy and by-products (fertiliser) for heat or electricity. 2.6.4 Establish 2 pilot RE demonstration units in Pambak and Geghamasar communities using local resources, for providing reliable and affordable energy services and linking with productive uses for income generation activities. 2.6.5 Organise training and capacity building of local communities on operational and maintenance of RE systems. 2.6.6 Organise technical monitoring of RE units, by recording technological data and conducting chemical analysis of by-products.

Output 2.7: By the end of the project 95% of population in selected administrative regions benefit from client friendly health services provided by trained healthcare providers in equipped and renovated HCFs. Responsible agencies: UNICEF, UNFPA Activities: 2.7 (UNFPA) 2.7.1 Improving health facility infrastructure, provision of medical equipment. 2.7.2 Setting up TGTs in two regions. 2.7.3 Training of various target groups and health care providers (family doctors; paediatricians; ob/gyns; nurses and school nurses; laboratory assistants; health professionals and duty-bearers; TGT team members; Youth Centres staff; community leaders, teachers, men and women of reproductive age) 2.7.4 Establishment Youth Centre in Kasakh community 3.

Activities 2.7 (UNICEF) 2.7.5 Strengthen the capacity of 80% of PHC workers (family doctors, paediatricians and nurses) through organization of trainings on different MCH topics. 2.7.6 Provision all target PHC facilities with basic medical supplies and equipment. 2.7.7 Establishment of parental education centres in PHC facilities of all the communities; printing and distribution of parental education materials. 2.7.8 Training of healthcare providers on youth friendly approaches, SRH, prevention of HIV/AIDS/STIs. 2.7.9 Training of neonatologists, ob/gyns and nurses on Intensive Neonatal Care, Making Pregnancy Safer and Baby Friendly Hospital Initiative, and provision of neonatal departments of selected regions with basic supplies and medicines (including oxygen concentrator).

3 In 2007 UNFPA has already established a Youth Centre in Vardenis, regional centre for Gegharkunik, where communities of Geghamasar and Pambak are located. UNFPA will set up a new Youth Centre in Kasagh community, however staff of both Youth Centres (Kasagh and Vardenis) will be trained. 11 Output 2.8. By the end of the project healthy life style lessons are in use in three schools with improved infrastructure and 30 peer educators have knowledge and skills to provide counselling on healthy life style including HIV/AIDS to their peers in selected communities. Activities 2.8 (UNICEF) 2.8.1 In each selected community one school will be identified to improve the school infrastructure through provision of furniture, computers, and audiovisual equipment. 2.8.2 Administrations of three schools will be supported to rollout HLS for the 8-9 grade students. 2.8.3 In each selected school, 30 peer educators will be identified and taught the Training of Trainers (ToT) course on HIV/AIDS Peer Education and Child Rights. iii) Performance Indicators, Baseline Data and Risks Indicators for output 1.1 • Some 50 socially vulnerable and disadvantaged families will have been sheltered in social housing units.

Indicators for Activities 1.1 1.1.1 Agreement with local government on allocation of identified incomplete building is signed. 1.1.2 Technical assessment and drawings design is conducted. 1.1.3 Specialized construction company is selected. 1.1.4 Construction/renovation of the building through involvement of public works is completed. 1.1.5 Six Community projects for upgrading of existing infrastructure are implemented.

Baseline data for output 1.1 There are many desperate families among refugees and local population needing social housing assistance. Kasakh is one of the villages where UNHCR constructed cottages for refugees back in 1995/96 to accommodate the refugees originating from Azerbaijan. UNHCR continue to have a very positive cooperation with the local authority. The current factory building, proposed for remodelling to shelter the families in need of social housing, is the asset of the community and the Mayor had reiterated his readiness to allocate it for the intended purpose. Risks for output 1.1: Delay in approval of the project may delay its start-up while the price of construction materials may go high skyrocketing. Such a situation may compel to revise the proposed construction for completion within the reach of available resources only.

Indicators for output 2.1 • Planning and implementation capacity of at least 3 municipalities is increased. Indicators for Activities 2.1 2.1.1. 3 Multiparty Cooperation Agreements signed with local government, community leadership, UN Agencies and civil society. 2.1.2. 3 Participatory Strategic Community Development Plans elaborated. 2.1.3. Performance Budgeting governance methodology introduced in the 3 target communities. Baseline data for output 2.1 • Three-year community development plans have been elaborated by community’s Municipalities since 1996, however without any community participation involved. • No Performance Budgeting governance methodology was ever introduced in the targeted communities.

Risks for output 2.1: The result of this output is highly related to the level of cooperation between the project from one side and the local self-government bodies, communities’ inhabitants and regional authorities from the other side. Uncooperative or passive attitude from communities or local/regional authorities might have negative impact on quality and accuracy of planning and budgeting. In order to create incentives for cooperation, UNDP will conduct awareness and community mobilization campaigns in the target communities that will allow explaining the tangible results and the benefits of the project. Meanwhile, as the sub-project will be considered as part of UNDP Annual Work Plan with the Armenian government, cooperation agreements will be concluded with local/regional authorities in order to secure their support.

12 Indicators for output 2.2 • Skills for income generation activities and opportunities for start-up are increased.

Indicators for Activities 2.2 2.2.1 700 poor/vulnerable households selected and their skills and needs identified. 2.2.2 3 feasibility studies conducted to identify income-generation activities in target areas. 2.2.3 9 relevant groups formed as per the identified income-generation activity. 4 2.2.4 9 vocational trainings provided on farming production cycle procedure to the beneficiaries. 2.2.5 Agricultural equipment and production means procured.

Baseline data for output 2.2 • According to the initial community development plans elaborated by UNDP CDP there is a serious lack of opportunities to create agricultural income-generation schemes in the targeted communities because of the lack of advanced farming skills and high quality agricultural inputs.

Risks for output 2.2 The potential risks for the implementation of this output are unfavourable weather condition and contagious animal/plant disease. Roughly estimated, unfavourable weather condition and animal/plant disease could result in 20-30% of production losses. In this case, beneficiaries will not be able to receive profit from their agricultural activities, although they will be able to supply their households with food and secure necessary agricultural inputs (seeds and animals) for reproduction purposes.

In order to mitigate the above-mentioned risk and to make agricultural activities less prone to unfavourable weather condition and animal/plant disease, UNDP, in cooperation with FAO will ensure supplying of quality agricultural inputs to the beneficiaries; will conduct proper training on the advanced planting and animal breeding techniques; and will organize regular veterinary and plant disease control services.

Indicators for output 2.3 • 700 vulnerable households are integrated in the Community-Based Organisations.

Indicators for Activities 2.3 2.3.1 3 officially registered CBOs established. 2.3.2 3 community mobilization campaigns organized to encourage beneficiaries’ involvement in CBOs.

Baseline data for output 2.3 • No CBO was ever established in the targeted communities.

Risks for output 2.3 The inhabitants of the 3 communities have been economically isolated from each other for more than two decades. Members of the targeted communities find it difficult to consider that there might be a possibility of forming a collective action and benefit from cooperation.

In order to penetrate this psychological barrier of cooperation the project will focus on exchanging of information on the advantages of creating of CBOs and will clearly identify the common economic interest of the organizations.

Indicators for output 2.4 • 200 start-up businesses trained. • 100 business plans developed.

Indicators for Activities 2.4 2.4.1 Assessment of local business development resources is conducted and potential in production/ processing services and trade sector is identified. 2.4.2 350 households surveyed and their needs in local products and services identified. 2.4.3 Market research conducted and potential market niches for local products and services identified for each target community. 2.4.4 200 interviews with potential participants conducted and at least 3 target groups formed by sectors in each community.

4 The income-generation activities are concentrated around three activities (wheat production, potato production and cattle breeding activities), i.e. three groups will be formed per community. 13 2.4.5 12 trainings (5-day course) provided on entrepreneurship, business management and marketing. 2.4.6 Internships organized and networks established between communities.

Baseline data for output 2.4 • According to the initial community development plans elaborated by UNDP CDP the non-agricultural production is underdeveloped in the communities. There is a potential for tourism development in Pambak and Geghamasar communities, however they have limited human and financial resources. • Number of people with higher and/or vocational education is very low in the target communities. • No training on entrepreneurship and business skills development was ever conducted in the targeted communities.

Risks for output 2.4 The potential risk is low capacity of local human resources for business development.

Indicators for output 2.5 • SME-supporting Fund established and opportunities for lending increased for start-up businesses in the target communities.

Indicators for Activities 2.5 2.5.1 Terms of Reference for SME-supporting Fund management developed. 2.5.2 Tender among MFI and UCOs conducted. 2.5.3 100 businesses received start-up loans (average $5,000) in two years, from which 40 start-ups during the first year, and 60 start-ups during the second year of operation. 2.5.4 Guidelines and procedures for reinvesting part of SME-supporting Fund revenue into community- owned programmes are developed and adopted. 2.5.5 Up to 30% of revolving funds reinvested for implementation of community-owned projects.

Baseline data for output 2.5 • In 2005-2006 “Aregak” UCO provided micro-credits to Geghamasar community members.

Risks for output 2.5 The result of this output is highly related to the willingness and ability of target population to start own business. Unfavourable business environment and the lack of entrepreneurial experience may negatively affect the possibility of reaching target outputs.

In order to create incentives for start-up businesses the awareness campaigns will be conducted in the targeted communities to explain the findings and opportunities identified by market research, as well as to introduce the SME and community support policies to be implemented through the SME-supporting Fund.

Indicators for output 2.6 • By the end of the project two biogas units established in selected communities and options of utilization of produced energy for heating or electricity production and by-products (fertilizers) distribution are identified.

Indicators for Activities 2.6 2.6.1 Locally available resources and relevant renewable technologies (e.g. bioenergy, solar etc.) resources accessible for productive uses, identified. 2.6.2 Main and alternative options of RE production, including manure, biomass and organic waste collection schemes, identified. 2.6.3 Options of utilisation of produced energy and by-products identified and approved by community members. 2.6.4 Pilot demonstration units based on renewable energy systems become operational in Pambak and Geghamasar communities for providing reliable and affordable energy services using local resources, and linking with productive uses for income generation activities. 2.6.5 Reduction in use of firewood and manure by the households in the selected communities. 2.6.6 Weekly technical monitoring of RE units organised, recording technological data and conducting chemical analysis of by-products.

Baseline data for output 2.6

14 • There is no natural gas supply system in Geghamasar and Pambak villages. Community members use firewood or manure for heating.

Risks for output 2.6 The potential risk for this output is unwillingness of target population to provide manure and agricultural waste for e.g. biogas production, or lack of organisational arrangements to collect organic waste.

Technological risks: interruption in RE production at its optimum levels due to different technical reasons.

Indicators for output 2.7 (UNFPA – UNICEF) • Number and percentage of trained health care providers. • Number and percentage of PHC facilities provided with essential medical equipment, drugs and supplies. • Number and percentage of HCFs where follow-up visits are conducted. • Number and percentage of neonatal care departments provided with basic supplies and equipment, including oxygen concentrators. • Percentage of randomly selected and interviewed community members who use and are satisfied with the quality and friendliness of health services. • Number and percentage of primary HCFs with established/functioning parental education centres.

Indicators for Activities 2.7 (UNFPA) 2.7.1 3 health facilities in selected regions are renovated and provided with medical equipment. 2.7.2 2 TGTs operate on equipped vehicles for field medical visits and check-ups. 2.7.3 22 healthcare providers, 10 (healthcare administrators, 24 TGT team members, 4 Youth Centres staff, and 120 community members are trained and demonstrate increased knowledge on training subjects (pre/post-training assessments). 2.7.4 Youth Centre is established, furnished and functioning.

Indicators for Activities 2.7 (UNICEF) 2.7.5 60 family doctors, paediatricians and nurses trained in child health. 2.7.6 5 PHC equipped with basic medical supplies and equipment. 2.7.7 5 parental education centres established in the supported PHC facilities and 5,000 copies of parental education materials printed and distributed 2.7.8 60 healthcare providers trained in provision of client friendly services. 2.7.9 50 healthcare providers trained in Intensive Neonatal Care, Making Pregnancy Safer and Baby Friendly Hospital Initiative. Neonatal departments of 4 facilities provided with basic supplies and medicines (including oxygen concentrator) essential for saving newborn’s life.

Risks for output 2.7 Low commitment of local/regional authorities or communities might negatively affect the quality of project implementation.

Baseline data for output 2.7 • No reported trainings of HCPs on selected MCH topics for recent 5 years. • Unavailability of basic supplies and equipment in neonatology departments of involved HCFs.

Indicators for output 2.8 ( UNICEF) • Number of schools with improved infrastructure. • Number and percentage of trained school teachers and administrators. • Number and percentage of trained peer educators.

Indicators for Activities 2.8 2.8.1 Three schools in selected communities have improved infrastructure and environment that encourages a healthy lifestyle. 2.8.2 At least 50% teachers of mainstream schools and school administration demonstrate improved capacity on methodology of introduction of the HLS course (three schools in 2 regions). 2.8.3 90 peer educators are ready to deliver peer education sessions on HIV/AIDS and child rights in three schools.

Baseline data for output 2.8

15 • School infrastructure is deteriorated due to the hardships of the transition period and the high level of community impoverishment which has negative impact on the learning environment. • In 2005, 64 lessons on Healthy Life Style were developed by two local consultants and pre-tested in 30 secondary schools. • In 2006 UNICEF supported the Ministry of Education (MoE) to organize a Round Table for Country Coordination Commission on HIV/AIDS, Tuberculoses and Malaria issues. Members and other interested stakeholders discussed the issue of integration of HIV/AIDS and HLS into the State Education Curriculum. In 2008 UNFPA and UNICEF plan to support the MoE to develop a concept Paper for integration of the HIV/AIDS and HLS into the State Education Curriculum for 8-10 grades. • In 2008 MoE established a working group for integration and introduction of the HLS course into the school curriculum. b) Project Approach See the Logical Framework of the Project in Annex 1 .

Section V: Sustainability The project implementing partners will make every effort to insure project sustainability followed completion of its main activities in the field. While discussing with local authority, a clear understanding has been developed that the responsibility to run and manage the social housing facility should be shouldered by them once the completed object is handed over to them. During the implementation of the sub-project, UNHCR will further discuss the issue of self- sustainability with the local authorities and put the mechanism in place. One of the main findings from the earlier initiatives of UNDP was the importance of local ownership in the sustainability of the subsequent intervention. Therefore, the overall project and its sub-projects emphasize participatory approach in planning, prioritizing and monitoring of activities, thus creating ownership into the project through increasing civic participation in local development. Moreover, the previous experience in the similar type of projects shows that project beneficiaries having monetary profit with necessary inputs will be capable not only to ensure the reproduction of their inputs, but also will extend their production and economic activities. Sustainability will be built into the project through encompassing institutional support and capacity building into farming and agro-processing activities with the help of establishing Community Based Organization (CBO) and implementation of training programs. Moreover, the previous successful experience of UNDP in similar type of projects shows that project beneficiaries, mobilized within CBO and provided with necessary agricultural inputs such as seeds and animals that can produce monetary profit will be capable not only to ensure the reproduction of their inputs during the course of the project, but also extend their production and economic activities afterwards. To add, part of the agricultural input the project will procure (wheat and potato seeds) will be distributed through a revolving fund mechanism to be implemented within the framework of the created CBO. The mechanism assumes: Seeds are purchased and provided to beneficiaries bound by a contract, which anticipates that project beneficiaries will collect the cost of the distributed wheat and potato seeds, will transfer the collected amount to CBO after yield collection. The latter, in turn will purchase and distribute new portion of seeds. This revolving mechanism will be sustained as far as potato and wheat seeds are need in the target community. As to the other part of the agricultural input (cows and artificial insemination), it should be noted that cattle breeding is itself already a sustainable source of income generation for the household. These already existing sources will additionally boosted by introducing of artificial insemination scheme. This scheme will be implemented by the established CBO that will be provided with the necessary equipments and means. The artificial insemination of cows will significantly increase the number of cattle and their productivity. Finally, it is worth noting that the high level of consumption of wheat, potato, milk and meat in Armenia will ensure the realization of the mentioned products and boost their reproduction. Local ownership and participation of communities in the sub-projects, starting from needs assessments and preparatory work and beyond the completion of the sub-projects are main prerequisites of the success of UNIDO interventions. It will be achieved by conducting Training of Trainers for more active training graduates to ensure the ongoing availability of capacity building for start-up businesses in the target communities, promoting linkages and networking with other communities within the administrative regions.

16 Community support groups will be established for renewable energy systems not only for the organisation of collection of manure, biomass and organic waste, but also will be trained on operational and maintenance of the systems for the promotion of such practices in neighbour communities. All UNICEF and UNFPA supported projects on SRH/MCH are approved by the MoH as national strategies. Appropriate changes are made in the job descriptions of healthcare providers to adjust them with projects’ requirements. The sub-projects emphasize participatory approach in planning, implementation and monitoring phases, and there is a strong commitment of regional health authorities to support implementation. In addition to this, strengthening capacities of health workforce and provision of healthcare facilities with basic medical supplies and equipment will have a long-term impact. By strengthening community based health services and establishing parental educational centres in each of the community UNICEF will ensure accessibility of basic healthcare services and sustainability of providing parents and caretakers with standardized messages on all aspects of child health and nutrition. Community health centres will be invigorated by trained service providers and equipment; the network between the established youth friendly services and the communities will be enforced providing continuity of care and improved health infrastructure. At the end of the project, beneficiaries will have increased capacity to continue the activities on their own. Additionally, sustainability will be built into the project through encompassing institutional support and capacity building to farming and agro-processing activities through creating of CBOs and implementing of training programs.

Section VI: Implementation and Partnership Strategy The project will be implemented by UNHCR, UNDP, UNIDO, UNFPA and UNICEF, coordinated by UNHCR. Each of the UN Agencies involved in the project implementation will be responsible for defined set of activities, detailed in the project proposal, logical framework and budget. The UN Implementing Agencies will work with national and local counterparts for operation of project activities. Implementation of the project output 1.1 will be the responsibility of UNHCR that will be carried-out close consultations and coordination with relevant local authorities, implementing partner, and the UN sister agencies as, when and where applicable. Needful implementation arrangement of the project activities foreseen under this section will be managed in full compliance with existing financial rules and regulations of UNHCR and in line with UNTFHS requirements as well. UNHCR will be responsible for overall project coordination. The project outputs 2.1, 2.2 and 2.3 will be directly implemented by UNDP/Armenia. The Ministry of Territorial Administration of the Republic of Armenia will be the main government counterpart. The Deputy Minister of Territorial Administration, acting as the national counterpart, shall represent the interests of the GoA and be consulted on all substantive issues related to the execution of sub-project activities. The UNDP/Armenia will take full responsibility for the administration of the financial and human resources, and subcontracting will take place in accordance with UNDP rules and procedures. The UNDP Country Offices will hold the overall responsibility for the production of outputs/implementation of activities envisaged. The direct implementation of all project activities shall be managed by the CDP. To ensure UNDP's accountability for programming activities and use of resources, PRINCE2 programming and management methodology will be applied, while implementing project activities. UNDP-managed funds will be also the subject to annual audit by a certified auditor hired by UNDP/Armenia through competitive and transparent process. The project outputs 2.4, 2.5 and 2.6 will be implemented by UNIDO Programme Development and Technical Cooperation Division branches in cooperation with the Europe and NIS Programme and the UNIDO Desk in Armenia. The Ministries of Economy, Territorial Administration and Energy are the main government counterparts and local authorities are the cooperating partners. Implementation of outputs 2.4, 2.5 and 2.6 will be done by specialised institutions identified through competitive selection process and sub-contracted by UNIDO. SME-supporting Revolving Fund: it is recommended to use the successfully practiced loan guarantee scheme, implemented by SME DNC during last 2 years. The program allows entrepreneurs to qualify for loans by guaranteeing up to 70% of the principal of the loan and the interest rates for up to 3 years. The maximum amount guaranteed cannot exceed 10 million drams. The annual interest rates for the loans provided by the 17 SME DNC of Armenia partner banks through Loan Guarantees Provision program are 15-16% which is lower than those practiced in the market (20-22%). The loan guarantees are provided for the loans to be received only from the SME DNC of Armenia partner banks, i.e. ACBA bank, Anelik bank, Ardshininvestbank, Inekobank, and Unibank.

SME DNC provides 100% loan guarantee for start-up entrepreneurs: the maximum loan amount is 1,000,000 AMD with interest rate of 12% per annum and up to 3 years of repayment period. SME DNC “Start-up entrepreneurs support programme” covers Gegharkunik administrative region, however, due to the scarcity of resources the target communities have not been involved so far.

Considering the success of SME DNC program in rural communities it is recommended that SME-supporting Revolving Fund will also function as a loan guarantee fund, administered by a microfinance institution or bank (Implementing Partner) to be identified through competitive selection process.

The implementing partner will commit itself to use the funds provided by the SME-supporting Revolving Fund for loans extended to start-up businesses in the target communities at interest rates not exceeding or even lower than SME DNC program. Other terms such as loan amount, repayment period and guarantee release schedules will be negotiated with the selected implementing partner.

Upon the repayment of the loans, the guarantee funds will flow back to the revolving fund, part of which will be used for the financing of community-owned projects. The exact amount of community activities funding will be defined based on the needs assessments and development plans of the beneficiary communities.

After completion of the project the Implementing Partner will continue to manage the SME-supporting Revolving Fund. It is envisaged that the remaining part of the Revolving Fund will be targeted to meet the newly emerging SME support needs in the beneficiary communities, and/or to integrate neighboring village communities as beneficiaries of the Fund.

The project outputs 2.7 (activities 2.7.5 – 2.7.9) and 2.8 will be directly executed by UNICEF Country Office in Armenia. The MoH and Health Departments of Gegharkunik and Kotayk regions will be the main government counterparts, and they will be actively involved in all steps of project implementation and monitoring. UNICEF will actively collaborate with UNFPA, implementing objective 2.7 (activities 2.7.1 – 2.7.4), hence activities of both the agencies are complimenting each other and supporting the achievements of the same output.

Section VII: Public Affairs and Communications The project implementing partners will produce regular reports and success stories on project accomplishments and conduct regular meetings with local and national counterparts and stakeholders throughout two years of project implementation. UNHCR will make sure that regular project review meetings are carried-out with relevant local and central authorities and they are invited to join the monitoring visit as and when appropriate. Joint monitoring visits with participating UN agencies will be encouraged and coordination meetings with respect to overall project implementation will also be organized. Project visibility will be given through quarterly publication of UNHCR news letter targeted for refugees/asylum seekers, relevant government institutions, implementing partners, universities and local authorities. Further, joint press releases will be organized when applicable to highlight the importance of the project and provide enough visibility to UNTFHS funding. Regular reports will be produced during the course of sub-project implementation. These will form the basis for UNDP mobilisation, communication and engagement in upstream policy debates designed to influence national policy-making. Such activities will include the following: • Communication such as preparation of project website (including scope for donor commitments), monthly newsletter of project progress, etc. • Codification of knowledge: good practice reports on project implementation, as well as press releases and annual conference on project activities and good practice • Policy link: stakeholder workshops on specific issues arising from project, contribution to topics of governmental interest, such as land consolidation, preparation of legislation on cooperatives, preparation of tax amendments, such as for deprived regions and cooperatives, implementation of inter

18 community cooperation, agro-tourism, organic food, income generation for vulnerable rural households. UNIDO – Regular monitoring visits will be organised by UNIDO Desk to project sites and meetings will be organised with community leaders and project beneficiaries. Technical reports received from sub-contracted implementing partners, will be consolidated and sent to UNIDO HQs PTC branch backstopping officers. Human stories on successful businesses and good practices on the use of renewable energy will be posted on the project website. UNIDO will contribute in the preparation of joint press releases.

UNICEF, UNFPA and the MoH will organize periodic meetings with the community leaders and key stakeholders. Regular reports will be presented to them on sub-project implementation, and all successes and constrains will be shared to find common solutions.

Section VIII: Monitoring and Evaluation Plan Monitoring will be carried out on a regular basis, through a Monitoring and Evaluation Group that is comprised of representative from all participating UN Agencies. A project work plan will be developed with the timeframe and the progress will be assessed through a set of developed indicators (Section IV). In addition to that, each implementing agencies will be responsible for producing quarterly progress reports on their sub-project and submit the same to coordinating agency (UNHCR) for timely compilation and submitting the overall project reports to UNTFHS as applicable. a) Mid-project Evaluation An independent mid-term review will be carried out to assess project implementation and to make any adjustments, if needed. The mid-term evaluation protocol will be developed by an independent consultant(s)/organization with involvement of all UN project implementing agencies. The mid-term review will be carried out within 18 months of the start of the project (between 13 th -16 th month of the proposed project implementation). Review of the project documents (reporting on project indicators), in-depth and key informant interviews, focus group discussions with main stake-holders, members of the beneficiary groups and selected communities will be conducted. Findings of the mid-term evaluation will be communicated to the implementing partners and UNTFHS. b) Final Evaluation Participatory final evaluation will be carried out, involving all key project stakeholders and beneficiaries. The final evaluation will be conducted by an independent consultant(s)/organization. Project implementing agencies will be involved in the process of developing evaluation framework. The following final evaluation techniques are preliminary proposed: • Review of the project documents and reports on key project indicators, • In-depth interviews with community leaders, health facility administrators, school principles, etc, • Focus group discussions with beneficiary groups, • Community infrastructure assessment, • Population survey. Terminal Project Report: It will be prepared at the end of the project implementation. The report will include an assessment and analysis of project performance over the reporting period, including outputs produced, constraints, lessons learnt and recommendations for avoiding key problems in future projects. Each of the participating agencies will provide its portion of inputs to coordinating agency (UNHCR) for consolidating and finalizing the report for submission to UNTFHS with support from Project Coordination staff.

Section IX: Administration and Financial Management a) Management Structure and Financing Arrangements The project will be implemented by five UN Agencies, coordinated by UNHCR, The staff involved in the sub- projects will be hired or designated by each implementing partner, responsible for the specific sib-project and/or activity. UNHCR - will play the role of coordination for this project. There will be three staff members on the board to ensure timely coordination with all participating agencies with respect to the activities falling within the

19 preview of each agency’s responsibility and submission of reports to UNHCR for consolidation and further submission to UNTFHS Secretariat as per contract terms and conditions. Monitoring of the project activities jointly with other participating agencies, day-to-day secretarial, administrative and financial activities related to overall coordination of the project will also be performed by following staff under the direct supervision and guidance of UNHCR Representative in Armenia: • Project Coordinator (Full Time Equivalent (FTE) with extensive experience of community based projects; resource management; coordination with relevant Government departments, donors, and overall project management experience. • Project Assistant (FTE) to assist the Project Coordinator in daily administrative, financial and secretarial activities. • Clerk/Driver (FTE) to provide logistic, clerical and transportation support.

As foreseen under this project, UNHCR Program Team with the support from project staff will directly be responsible for the management of sub-project activities that fall within its immediate responsibilities. UNDP – The sub-project implemented by UNDP will be based in Yerevan. Two program staff members, supervised/guided/directed by CDP Project Coordinator will be responsible for implementing the project: • Economist/Social Development Specialist (FTE) with extensive expertise in non-farming activities/ diversification, feasibility studies, business plans, SME development, micro-finance. • Agricultural Development Specialist (FTE) with experience of farmers’ associations, agricultural cooperatives, agro-processing, agronomy and farming.

UNIDO - The UNIDO sub-project will be implemented by the Industrial Policy and Private Sector Development Branch and Energy and Climate Change Branch of the Programme Development and Technical Cooperation Division in cooperation with the Europe and NIS Programme and the UNIDO Desk in Armenia. Head of UNIDO Operations will be performing the coordinating and monitoring functions in the field. The following staff will be hired for implementation of UNIDO sub-project: • Project Associate (24 months) will be hired to support HUOs in coordination, monitoring and reporting. • Driver/logistic clerk (24 months) who is currently hired by UNIDO Desk from administrative funds, will provide transportation services also to the UNIDO project, combining logistic duties both for the Desk and for the project.

UNICEF - The project will be managed by UNICEF Health and Nutrition Team, with the overall supervision of UNICEF Deputy Representative. Following staff members will be responsible for implementing the project: • Health and Nutrition Officer (FTE) with extensive experience in Mother and Child Health issue and programme management, who has multi-year close contacts with MoH and regional health authorities. • Health and Nutrition Programme Assistant (FTE) with experience in programme implementation and monitoring, who will assist Health and Nutrition Officer in implementation of daily activities.

UNFPA – The part of UNFPA will be implemented through its existing “Improvement of Reproductive Health services in Armenia” with the overall supervision of UNFPA Assistant Representative. • Sub-Project Coordinator (FTE) with extensive experience of RH improvement issues, who has close contacts with regional health authorities and extensive project management experience. • Sub-Project Assistant (FTE) to assist the Project Coordinator in daily administrative activities. • Clerk/Driver (FTE) to support the team with clerical work and transportation.

b) Financial Reporting UNHCR Representative in Armenia with support from coordination staff will be responsible for reporting to UN Controller on behalf of all Implementing Agencies. Each of the implementing agencies will provide timely inputs on their sub-project activities to coordinating agency (UNHCR). The financial inputs received from individual agencies will be consolidated in a summarised reporting format as per the requirements and submitted to UNTFHS as envisaged. c) Substantive Reporting UNHCR will be responsible for consolidation and presentation of the substantive reports to UNTFHS. The report will include inputs from all implementing agencies and will comply with requirements of UNTFHS.

20 d) Work Plan The summary workplan of the project is available in Annex 2. Detailed work-plan will be prepared and sent to UNTFHS within 3 months of the project start-up.

Section X: Budget See Annex 3 for Proposed Project Budget.

21 Annex 1: Project Logical Framework

Objective/ Project Strategy Objectively Verifiable indicators Means of verification Important assumptions and Output/Activity (OVI) (MOV) risks Increased access to suitable housing in Kasakh community (Kotayk region) for the socially poor and disadvantaged through remodelling of a Objective 1 former factory building into houses. Output 1.1 By end of the project social housing units for some 50 Social housing units for socially Project reports socially vulnerable and disadvantaged families will have vulnerable and disadvantaged been completed and sheltered.. families are completed. Activity 1.1.1 Prepare and sign an agreement with local government on Agreement with local government Project reports allocation of identified incomplete building. on allocation of identified incomplete building is signed. Activity 1.1.2 Prepare technical assessment and drawings design. Technical assessment and drawings Project reports design is conducted. Activity 1.1.3 Identify and select a specialized construction company. Specialized construction company Project reports is selected. Activity 1.1.4 Complete the construction/renovation of the building Construction/renovation of the Project reports through involvement of public works. building through involvement of public works is completed. Activity 1.1.5 Implement community project for upgrading of existing Six Community projects for Project reports infrastructure (sewerage, water, gas and electricity, upgrading of existing infrastructure communication lines, health post). are implemented. Objective 2 Improved living and health standards in Kasakh community (Kotayk region) and Pambak and Geghamasar communities (Gegarkunik region) for socially vulnerable families through sustainable opportunities. Output 2.1 By end of the first year of the project, the capacity of Planning and implementation Qualitative study Uncooperative or passive local government’s in three communities for strategic capacity of the 3 Municipalities among municipally attitude from communities or planning and implementation is increased. is increased. workers. local/regional authorities Activity 2.1.1 Prepare and sign a Cooperation Agreement with local 3 Multiparty Cooperation Agre- - Meetings minutes. might have negative impact government, community leadership, UN Agencies and ements signed with local govern- - Field reports. on the quality and accuracy civil society in each community. ment, community leadership, - List of participants. of planning and budgeting. UN Agencies and civil society. - Published/approved Activity 2.1.2 Prepare Participatory Strategic Community Development 3 Participatory Strategic plans. In order to create incentives Plans for each community/cluster communities. Community Development Plans - Agreements. for cooperation with UNDP, elaborated. - Survey reports awareness and communities’

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Objective/ Project Strategy Objectively Verifiable indicators Means of verification Important assumptions and Output/Activity (OVI) (MOV) risks Activity 2.1.3 Introduce Performance Budgeting governance Performance Budgeting mobilization campaigns will methodology in strategic planning process for target governance methodology be conducted in target communities. introduced in the 3 target communities that will allow communities. explaining the tangible results and the benefits of the project. Output 2.2 By end of the project, 700 vulnerable households will Skills for income generation Qualitative and quant- The potential risks for the have improved skills for income generation activities activities and opportunities for itative studies among implementation of this output and increased opportunities for start-up businesses. business start-up are increased. the 700 households. are unfavourable weather Activity 2.2.1 Identify and select the target families, identify their skills 700 poor/vulnerable households Baseline/final qualita- condition and contagious and needs. selected and their skills and tive and quantitative animal/plant disease.

needs identified. surveys/studies. In order to mitigate the risk Activity 2.2.2 In parallel conduct market research and feasibility study 3 feasibility studies are Procurement of unfavourable weather of the geographic area and relevant surveys aimed to conducted to identify income- documents. condition and contagious identify income-generation activities. generation activities in the animal/plant disease, UNDP, targeted areas. in cooperation with FAO will Activity 2.2.3 Forming of relevant groups as per the identified income- 9 relevant groups formed as per Agreements. ensure supplying of quality generation activity. the identified income-generation agricultural inputs to the activity. beneficiaries; will conduct Activity 2.2.4 Identify and provide vocational trainings on farming 9 vocational trainings provided Meetings minutes. proper training on the production cycle procedure to the beneficiaries. on farming production cycle advanced planting and procedure to the beneficiaries. animal breeding techniques, Activity 2.2.5 In parallel procure needed agricultural equipment and Agricultural equipment and Field reports. and; will organize regular production means. production means are procured. veterinary and plant disease control services. Output 2.3 By the end of the project, beneficiaries 700 vulnerable 700 vulnerable households are Study reports. The inhabitants of the 3 households are fully integrated into the community integrated in the CBOs. communities have been based organisations. economically isolated from Activity 2.3.1 Support setting up a board with the involvement of most 3 officially registered CBOs Study reports. each other for more than two active members in each target community. established. decades.

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Objective/ Project Strategy Objectively Verifiable indicators Means of verification Important assumptions and Output/Activity (OVI) (MOV) risks Activity 2.3.2 Encourage involvement of the beneficiaries into the 3 community mobilization CBO registration Members of target commu- community-based organizations, in particular, women’s campaigns organized to documents. nities find it difficult to con- organizations and networks, Farmers’ Associations, etc. encourage beneficiaries’ CBO activity reports. sider that there might be a involvement into the Field reports. possibility of forming a community-based organizations. collective action and benefit from cooperation. In order to penetrate this psychological barrier of cooperation the project will focus on exchan- ging of information on the comparative advantages of creating of CBOs and will clearly identify the common economic interest of these organizations. Output 2.4 By the end of the project implementation, 200 start-up - 200 start-up businesses trained. Training records. The potential risks are entrepreneurs have improved competencies and business - 100 business plans developed. Business plans. insufficiency and management and marketing skills. inadequateness of local Activity 2.4.1 Assess local business development resources to identify Assessment of local business Assessment reports. human resources for business potential in production/processing, services and trade development resources is development. sectors. conducted and potential in production services and trade sector is identified. Activity 2.4.2 Conduct a survey to assess local market needs in 350 households surveyed and Survey reports. products, services and trade. their needs in local products and services identified. Activity 2.4.3 Identify potential market niches for local businesses, Market research conducted and Study reports. develop feasible start-up business concepts for each potential market niches for local sector/subsector with development potential. products and services identified for each target community. Activity 2.4.4 Interview and select 200 potential participants, and form 200 interviews with potential Training reports. target groups for capacity building by sectors in each participants conducted and at community, assess participants’ training needs and adapt least 3 target groups formed by training programme for each target group. sectors in each community.

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Objective/ Project Strategy Objectively Verifiable indicators Means of verification Important assumptions and Output/Activity (OVI) (MOV) risks Activity 2.4.5 Provide 5-day (25 hours) trainings on entrepreneurship 12 trainings provided on Training reports; and business skills development, including business and entrepreneurship, business Business plans. financial planning, marketing, production management management and marketing, 200 and quality control, etc. Assist participants in start-up entrepreneurs are developing business plans through individual consulting trained; 100 business plans sessions and provide counselling support to the developed. beneficiaries during first 6 months of launching businesses. Activity 2.4.6 Identify successful businesses in relevant sub-sectors in Internships organised and Trip reports. other administrative regions and organize short-term networks established between internship for the project beneficiaries. clusters. Output 2.5 By the end of the first year of the project implementation, SME-supporting Fund - The result of this output is SME-supporting Fund is established and opportunities established and opportunities highly related to the for lending are increased for start-up businesses in the for lending increased for start- willingness and ability of target communities. up businesses in the target target population to start communities. own business. Unfavourable Activity 2.5.1 Develop Terms of Reference for SME-supporting Fund Terms of Reference for SME- Project documents. business environment and management. supporting Fund management the lack of entrepreneurial developed. experience may negatively Activity 2.5.2 Organize and conduct a tender among MFIs, business Tender among MFIs and UCOs Project documents. affect the possibility of support organizations and/or UCOs. conducted. reaching target outputs. Activity 2.5.3 Select and contract the MFI/business support 100 businesses received start-up Loan agreements. - In order to create incentives organization/UCO for SME-supporting Fund loans (average $5,000) in two for start-up businesses the management, and start lending activities; provide start- years, from which 40 start-ups awareness campaigns will up loans for 100 businesses in two years. during the first year, and 60 be conducted in the targeted start-ups during the second year communities to explain the of operation. findings and opportunities Activity 2.5.4 In cooperation with local authorities develop guidelines Guidelines and procedures for Project documents. identified by market and procedures for re-investing part of the revenue reinvesting part of SME- research, as well as to received from SME-supporting Fund into supporting Fund revenue into introduce the SME and implementation of community-owned programmes. community-owned programmes community support policies are developed and adopted. to be implemented through Activity 2.5.5 Support community-owned programmes through re- Up to 30% of revolving funds Community owned the SME-supporting Fund. investing part of revenue from SME-supporting Fund for reinvested for implementation of programmes. the implementation of such programmes in cooperation community-owned projects. with local authorities.

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Objective/ Project Strategy Objectively Verifiable indicators Means of verification Important assumptions and Output/Activity (OVI) (MOV) risks Output 2.6 By the end of the project, population of Pambak and By the end of the project two Project documents. - The potential risk for this Geghamasar communities, have increased access to biogas units established in output is unwillingness of diversified energy services. selected communities and target population to provide options of utilization of manure and agricultural produced energy for heating or waste for biogas production, electivity production and by- or lack of organisational products are identified. arrangements to collect Activity 2.6.1 Carry out needs assessment in two selected communities Locally available resources and Project documents. organic waste. to determine potential of locally available resources, relevant renewable technologies, - Technological risks: extent and kind of energy services needed, relevant (e.g. bioenergy, solar etc.) interruption of combustion renewable technologies, (e.g. bioenergy, solar etc.) and resources accessible for of biomass due to different scope of assistance and utilizing renewable energy productive uses, identified. technical reasons. resources accessible for productive uses. Activity 2.6.2 Develop main and alternative options of renewable Main and alternative options of Project documents. energy (RE) production, taking into account possible biogas production, including involvement of community members, i.e. establishment manure, biomass and organic of community support groups, to promote biogas waste collection schemes, production through the joint collection of manure, identified. biomass and organic waste. Activity 2.6.3 Develop and discuss options of utilisation of produced Options of utilisation of pro- Project documents. energy and by-products (fertiliser) for heat or electricity. duced energy and by-products identified and approved by community members. Activity 2.6.4 Establish pilot demonstration units based on RE systems 2 Pilot demonstration units Project documents in Pambak and Geghamasar communities for providing based on renewable energy reliable and affordable energy services using local systems in Pambak and Ge- resources, and linking with productive uses for income ghamasar communities for generation activities. providing reliable and affordable energy services using local resources, and linking with productive uses for income generation activities. Activity 2.6.5 Organise training and capacity building of local Reduction in use of firewood Survey documents. communities on operational and maintenance aspects of and manure by households in the biogas systems. area.

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Objective/ Project Strategy Objectively Verifiable indicators Means of verification Important assumptions and Output/Activity (OVI) (MOV) risks Activity 2.6.6 Organise technical monitoring of RE units, by recording Weekly technical monitoring of Project documents. technological data and conducting chemical analysis of biogas units organised, by-products. recording technological data and conducting chemical analysis of by-products. Output 2.7 By the end of the project 95% of population in selected - # and % of trained healthcare - UNICEF reports, Low commitment of administrative regions benefit from client friendly health providers; - Procurement local/regional authorities or services provided by trained health care providers in - # and % of HCFs provided with documents, communities will negatively equipped and renovated HCFs. essential medical equipment, - Field reports, affect the quality of project drugs, supplies; - Follow-up visit reports, implementation. - # and % of HCFs where follow- - UNFPA reports, up visits are conducted; - Community survey - # and % of neonatal care de- findings. partments provided with basic supplies and equipment, inc- luding oxygen concentrators - % community members who use and are satisfied with the quality of health services - # and % of primary HCFs with established/functioning parental education centres. Activity 2.7.1 Improving health facility infrastructure, provision of 3 PHC facilities in selected - UNFPA filed medical equipment. regions are renovated and monitoring visit provided with medical reports, equipment. - UNFPA donor reports Activity 2.7.2 Setting up Travelling Gynaecological Teams (TGT) in 2 TGTs operate on equipped - Training sign-up two regions. vehicles for field medical visits sheets, certificates, and check-ups. materials, etc.

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Objective/ Project Strategy Objectively Verifiable indicators Means of verification Important assumptions and Output/Activity (OVI) (MOV) risks Activity 2.7.3 - Training of various target groups and health care 22 health care providers, 10 - Training pre/post eva- providers (family doctors, paediatricians, ob/gyn, nurses health administrators, 24 TGT luation questionnaires and school nurses, laboratory assistant, health team members, 4 Youth canters and reports, professionals and duty-bearers, TGT team members, staff, and 120 community - UNICEF reports, Youth Centres staff, community leaders, teachers, men members are trained and - Procurement and women of reproductive age). demonstrate increased documents, knowledge on training subjects. - Field reports, - Follow-up visit reports, - Procurement and hand- over documents. Activity 2.7.4 Establishment Youth Centre in Kasakh community. Youth Centre is establish, furnished and functioning. Activity 2.7.5 Strengthen capacity of 80% of PHC workers (family 60 family doctors, paediatric- doctors, paediatricians and nurses) through organization cians and nurses trained in child of trainings on different MCH topics. health. Activity 2.7.6 Provision target PHC facilities with basic medical 5 PHC equipped with basic supplies and equipment. medical supplies and equipment. Activity 2.7.7 Establishment of parental education centres in PHC 5 parental education centres facilities of all the communities. established in the supported PHC facilities. Printing and distribution of parental education materials. 5,000 copies of parental education materials printed and distributed. Activity 2.7.8 Training of HCPs on youth friendly approaches, 60 healthcare providers trained prevention of HIV/AIDS/STIs, SRH. in provision of client friendly services Activity 2.7.9 Training of neonatologists, ob/gyns and nurses on 50 HCP trained in Intensive Intensive Neonatal Care, Making Pregnancy Safer and Neonatal Care, Making Baby Friendly Hospital Initiative. Pregnancy Safer and Baby Friendly Hospital Initiative. Provide neonatal departments of selected regions with Neonatal departments of 4 basic supplies and medicines (including oxygen facilities provided with basic concentrator). supplies and medicines.

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Objective/ Project Strategy Objectively Verifiable indicators Means of verification Important assumptions and Output/Activity (OVI) (MOV) risks Output 2.8. By the end of the project healthy life style lessons are in - # of schools with improved Low commitment of school use in three schools with improved infrastructure and 30 infrastructure, staff will negatively affect peer educators have knowledge and skills to provide - # and % of trained school the quality of project counselling on HLS, including HIV/AIDS to their peers teachers and administrators, implementation. in selected communities. - # and % of trained peer educators. Activities 2.8.1 In each selected community, one school will be 3 schools in selected - UNICEF reports identified to improve the school infrastructure through communities have improved - Procurement provision of furniture, computers, and audiovisual infrastructure and environment documents equipment. that encourages a HLS. - Field reports Activities 2.8.2 Administrations of three schools will be supported to At least 50% teachers of - Follow-up visit reports roll-out HLS for the 8-9 grade students. mainstream schools and school administration demonstrate improved capacity on methodology of introduction of the HLS course (in 2 regions, three schools). Activities 2.8.3 In each selected school 30 Peer educators will be 90 Peer educators are ready to identified and taught the ToT course on HIV Peer deliver peer education sessions Education and Child Rights. on HIV/AIDS and child rights in three schools.

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Annex 2: Work Plan

Objective/ Time Frame Responsible Planned Planned Activities Output/Activity Year 1 Year 2 Party Budget Objective 1: Increased access to suitable housing in Kasakh community (Kotayk region) for the socially poor and X UNHCR 577,000 disadvantaged through remodelling of a former factory building into houses. Output 1.1: Social Activity 1.1.1 Prepare and sign an agreement with local government on allocation of X UNHCR 5,000 housing for the socially identified incomplete building. poor and disadvantaged is Activity 1.1.2 Prepare technical assessment and drawings design. X UNHCR 1,000 built up. Activity 1.1.3 Identify and select a specialized construction company. X UNHCR Activity 1.1.4 Complete the construction/renovation of the building through involvement of X UNHCR 545,000 public works. Activity 1.1.5 Implement community project for upgrading of existing infrastructure X UNHCR 26,000 (sewerage, water, gas and electricity, communication lines, health post). Sub-project management X X UNHCR 136,000 Objective 2: Improved living and health standards in Kasakh community (Kotayk region) and Pambak and X X UNDP 1,468,000 Geghamasar communities (Gegarkunik region) for socially vulnerable families through sustainable UNIDO opportunities. UNICEF UNFPA Output 2.1: The capacity Activity 2.1.1 Prepare and sign a Cooperation Agreement with local government, commu- X UNDP 500 of local governments in nity leadership, UN Agencies and civil society in each administrative region. three communities for Activity 2.1.2 Prepare participatory strategic community development plans for each X UNDP 1,500 strategic plan design and community/cluster communities. implementation is Activity 2.1.3 Introduce Performance Budgeting governance methodology in target X UNDP 1,000 increased. communities. Output 2.2: Activity 2.2.1 Identify and select the target group of families, identify skills and needs. X UNDP 1,000 700 vulnerable Activity 2.2.2 Conduct market research and feasibility study of the geographic area and X UNDP 1,500 households have improved relevant surveys aimed to identify farming and non-farming income- skills for income generation activities. generation activities and Activity 2.2.3 Forming relevant groups per the identified income-generation activity. X UNDP 2,000 increased opportunities Activity 2.2.4 Identify and provide vocational trainings on farming and/or non-farming X UNDP 5,000 for stat-up businesses. production cycle procedure to the beneficiaries. Activity 2.2.5 Procurement of needed agricultural equipment and production means. X X UNDP 494,000 Output 2.3; 700 vulnerab- Activity 2.3.1 Support setting up a board with the involvement of most active members. X UNDP 1,000 le households are fully in- Activity 2.3.2 Encourage involvement of beneficiaries in the CBOs. X UNDP 2,000 tegrated into the commu- nity-based organizations. Output 2.4; 200 start-up Activity 2.4.1 Assess local business development resources to identify potential in X UNIDO 5,580 entrepreneurs have production/processing, services and trade sectors.

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Objective/ Time Frame Responsible Planned Planned Activities Output/Activity Year 1 Year 2 Party Budget improved competencies Activity 2.4.2 Conduct a survey to identify market needs in products, services and trade. X UNIDO and business management Activity 2.4.3 Identify potential market niches for local businesses, develop start-up X UNIDO and marketing skills. business concepts for each sector/subsector with development potential. Activity 2.4.4 Interview and select 200 potential participants, and form target groups for X UNIDO 1,200 capacity building by sectors in each community, assess participants training needs and adapt training programme for each target group. Activity 2.4.5 Provide 5-day (25 hours) trainings on entrepreneurship and business skills X X UNIDO 42,000 development, including business and financial planning, marketing, producti- on management and quality control, etc. Assist participants in developing bu- siness plans through individual consulting sessions and provide counselling support to the beneficiaries during first 6 months of launching businesses. Activity 2.4.6 Identify successful businesses in relevant sub-sectors in other regions and X UNIDO 14,400 organize short-term internship for the project beneficiaries. Output 2.5: By the end of Activity 2.5.1 Develop Terms of Reference for SME-supporting Fund management. X UNIDO 160 the first year of the project Activity 2.5.2 Organize and conduct a tender among MFI and/or UCOs. X UNIDO 240 implementation, SME- Activity 2.5.3 Select and contract MFI for SME-supporting Fund management, and start X X UNIDO 500,000 supporting Fund is lending activities. established and Activity 2.5.4 Develop guidelines and procedures for re-investing part of the revenue X UNIDO 420 opportunities for lending received from SME-supporting Fund into implementation of community- are increased for start-up owned programmes. businesses in the target Activity 2.5.5 Support community-owned programmes through re-investing part of revenue X X UNIDO communities. from SME-supporting Fund for the implementation of such programmes in cooperation with local authorities. Output 2.6; Population of Activity 2.6.1 Carry out needs assessment in two selected communities to determine poten- X UNIDO 4,300 Pambak and Geghamasar tial of locally available resources, extent and kind of energy services needed, communities have relevant renewable technologies, (e.g. bioenergy, solar etc.) and scope of increased access to assistance and utilizing renewable energy resources accessible for productive diversified energy uses. services. Activity 2.6.2 Develop main and alternative options of biogas production, taking into X UNIDO 1,550 account possible involvement of community members, i.e. establishment of community support groups, to promote biogas production through the joint collection of manure, biomass and organic waste. Activity 2.6.3 Develop and discuss options of utilisation of produced energy and by- X UNIDO 375 products (fertiliser) for heat or electricity.

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Objective/ Time Frame Responsible Planned Planned Activities Output/Activity Year 1 Year 2 Party Budget Activity 2.6.4 Establish pilot demonstration units based on renewable energy systems in X X UNIDO 165,000 Pambak and Geghamasar communities for providing reliable and affordable energy services using local resources, and linking with productive uses for income generation activities. - Design; X 25,000 - Construction. X 140,000 Activity 2.6.5 Organize training and capacity building of local communities on operation X UNIDO 3,175 and maintenance of biogas systems. Activity 2.6.6 Organize technical monitoring of biogas units, by recording technological X UNIDO 34,100 data and conducting chemical analysis of by-products. Sub-project management X X UNIDO 50,000 Output 2.7: By the end of Activity 2.7.1 Improving health facility infrastructure. X UNFPA 17,900 the project 95% of Activity 2.7.2 Setting up TGTs in two regions. X UNFPA 53,000 population in selected Activity 2.7.3 Training of various target groups and health care provides. X UNFPA 20,300 administrative regions Activity 2.7.4 Establishing Youth Centre in Kasakh community. X UNFPA 2,800 benefit from client friendly Activity 2.7.5 Strengthen the capacities of PHC workers through organization of trainings X X UNICEF 21,600 health services provided on different MCH topics. by trained health care Activity 2.7.6 Provision of target PHC facilities with basic medical supplies and equipment. X UNICEF 4,000 providers in equipped and Activity 2.7.7 Establishment of parental education centres in PHC facilities of all the X X UNICEF 12,000 renovated HCFs. communities. Activity 2.7.8 Training of HCPs in youth-friendly approaches and SRH, prevention of X X UNICEF 11,400 HIV/AIDS/STIs. Activity 2.7.9 Training of neonatologists, ob/gyns and nurses on Intensive Neonatal Care, X X UNICEF 25,000 Making Pregnancy Safer and Baby Friendly Hospital Initiative, and provision of neonatal departments of selected regions with basic supplies and medicines. Sub-project management X X UNICEF 28,000 Output 2.8: By the end of Activity 2.8.1 Procurement and provision of furniture and supplies for the schools in 8,000 UNICEF 8,000 the project healthy life selected communities. style lessons are in use in Activity 2.8.2 Training courses for school teachers and administrators on introduction of 2,000 2,000 UNICEF 4,000 three schools with HLS course using youth friendly methodology.

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Objective/ Time Frame Responsible Planned Planned Activities Output/Activity Year 1 Year 2 Party Budget improved infrastructure Activity 2.8.3 Training of peer educators on methodology of peer education sessions on 3,000 3,000 UNICEF 6,000 and 30 peer educators HIV/AIDS and child rights in three schools. have knowledge and skills to provide counselling on healthy life style including HIV/AIDS to their peers in selected communities.

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Annex 3: Budget

Table 1: Detailed Budget by Objective, Output & Activity for Each Year of the Project

Objective/ Implemen Output/ Detailed Description Year 1 Year 2 Total ting orga- Activity nization Objective 1 Increased access to suitable housing in Kasakh community (Kotayk region) for the socially poor and 713,000 - 713,000 UNHCR disadvantaged through remodelling of a former factory building into houses. Output 1.1 Social housing for the socially poor and disadvantaged is built up. 577,000 - 577,000 UNHCR Activity 1.1.1 Prepare and sign an agreement with local government on allocation of identified incomplete building. 5,000 - 5,000 UNHCR [Contractual services] Activity 1.1.2 Prepare technical assessment and drawings design. [Contractual services] 1,000 - 1,000 UNHCR Activity 1.1.3 Identify and select a specialized construction company. [Contractual services] - - - UNHCR Activity 1.1.4 Complete the construction/renovation of the building through involvement of public works; conduct 545,000 - 545,000 UNHCR assessment for selection of beneficiaries. [Contractual services] -Dismantling works 18,500 -Construction of external and internal walls 19,000 - Reinforcement of the existing structure 21,300 -Construction of the roof 55,000 - Installation of doors and windows 95,000 -Construction of floors 63,400 - Finishing works 126,000 - Installation of water system 32,500 - Installation of Sewage system 31,500 - Installation of internal electricity 31,000 - Installation of internal gas system 14,000 - Entrances 16,800 - Improvement of the surrounding of the building 21,000 Activity 1.1.5 Implement community project for upgrading of existing infrastructure (sewerage, water, gas and 26,000 - 26,000 UNHCR electricity, communication lines, health post). [Contractual services] Activity 1.1.6 UNHCR sub-project management – overall project coordination 78,000 58,000 136,000 UNHCR -Project Coordinator, assistant, and driver with car will be recruited. 5 [Staff and other personnel expenses] 36,000 36,000 72,000 -Project Mid-term and Final Evaluation [Contractual services] 14,000 16,000 30,000 -Vehicle procurement [Acquisitions] 22,000 - 22,000 -Vehicle repair/maintenance ($500 x 24 months) [Operating expenses] 6,000 6,000 12,000

5 The Project Coordinator will be charged with coordination, monitoring, and regular reporting to the Monitoring and Evaluation Group. Project Coordinator will also be responsible for quarterly and terminal donor reporting.

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Objective/ Implemen Output/ Detailed Description Year 1 Year 2 Total ting orga- Activity nization Objective 2 Improved living and health standards in Kasakh community (Kotayk region) and Pambak and 854,915 663,085 1,518,000 UNDP Geghamasar communities (Gegarkunik region) for socially vulnerable families through sustainable UNIDO opportunities. UNICEF UNFPA

Output 2.1 The capacity of local governments in three communities for strategic plan design and implementation is 3,000 - 3,000 UNDP increased. Activity 2.1.1 Prepare and sign a Cooperation Agreement with local government, community leadership, UN Agencies 500 - 500 UNDP and civil society in each administrative region (1 expert x 10 days x $50/day).[Contractual services] Activity 2.1.2 Prepare participatory strategic community development plans for each community/cluster communities (2 1,500 - 1,500 UNDP experts x 15 days x $50/day). [Contractual services] Activity 2.1.3 Introduce Performance Budgeting governance methodology in target communities (2 experts x 10 days x 1,000 - 1,000 UNDP $50/day). [Contractual services] Output 2.2 700 vulnerable households have improved skills for income generation activities and increased 379,500 124,000 503,500 UNDP opportunities for stat-up businesses. Activity 2.2.1 Identify and select the target group of families, identify skills and needs (2 experts x 10 days x $50/day). 1,000 - 1,000 UNDP [Contractual services] Activity 2.2.2 Conduct market research and feasibility study of the geographic area and relevant surveys aimed to 1,500 - 1,500 UNDP identify farming and non-farming income-generation activities (3 experts x 10 days x $50/day). [Contractual services] Activity 2.2.3 Forming relevant groups per the identified income-generation activity (2 experts x 20 days x $50/day). 2,000 - 2,000 UNDP [Contractual services] Activity 2.2.4 Identify and provide vocational trainings on farming and/or non-farming production cycle procedure to the 5,000 - 5,000 UNDP beneficiaries (2 experts x 50 days x $50/day). [Contractual services] Activity 2.2.5 Procurement of needed agricultural equipment and production means. [Contractual services] 370,000 124,000 494,000 UNDP - Procurement of wheat seeds (80 tones x $960/ton); - 76,800 76,800 - Procurement of potato seeds (150 tones x $1,200/ton); 180,000 - 180,000 - Procurement of cows (160 heads x $1000/head); 160,000 - 160,000 - Artificial insemination of cows (466 heads x $10/head); - 4,660 4,660 - Procurement of diesel fuel (30 tones x $1,200/ton); 16,000 20,000 36,000 - Procurement of fertilizers (90 tons x $406/ton). 14,000 22,540 36,540 Output 2.3 700 vulnerable households are fully integrated into the community-based organizations. 3,000 - 3,000 UNDP Activity 2.3.1 Support setting up a board with the involvement of active members (2 experts x 10 days x $50/day). 1,000 - 1,000 UNDP [Contractual services] Activity 2.3.2 Encourage involvement of beneficiaries in the CBOs (2 experts x 20 days x $50/day). [Contractual 2,000 - 2,000 UNDP services]

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Objective/ Implemen Output/ Detailed Description Year 1 Year 2 Total ting orga- Activity nization Output 2.4 200 start-up entrepreneurs have improved competencies and business management and marketing skills. 42,290 20,890 63,180 UNIDO Activity 2.4.1 Assess local business development resources to identify potential in production/processing, services and 5,580 - 5,580 UNIDO trade sectors. Activity 2.4.2 Conduct a survey to identify local market needs in products, services and trade. Activity 2.4.3 Identify potential market niches for local businesses, develop feasible start-up business concepts for each sector/subsector with development potential. [Contractual services] - International Expert’s fee ($400/day x 4 days) 1,600 - 1,600 - Mission Cost (6 w/d DSA x $207, transport- $600/ticket; TE, visa- $150) 2,000 - 2,000 - Local Expert ($80/day x 4 days x 3 communities) 960 - 960 - Travel ($60/round trip x 6 round trips) 360 - 360 - Per-diem ($55/day x 4 days x 3 communities) 660 - 660 Activity 2.4.4 Interview and select 200 participants, form target groups for capacity building in each community, assess 1,200 - 1,200 UNIDO participants training needs and customize training programme for each target group. [Contractual services] - Training participants selection and adaptation of training materials ($80/day x 5 days x 3 communities) 1,200 - 1,200 Activity 2.4.5 Provide 5-day (25 hours) trainings on entrepreneurship and business skills development, including busi- 21,110 20,890 42,000 UNIDO ness and financial planning, marketing, production management and quality control, etc. Assist participants in developing business plans through individual consulting sessions and provide counselling support to the beneficiaries during first 6 months of launching businesses. International Expert’s fee (6 w/d consultancy fee x 400/day [Contractual services] 2,400 - 2,700 Mission Cost (9 w/d DSA x $207, transport- $600/ticket; TE, visa -$150, misc.-$100 2,700 - 2,400 - Local trainers' fee ($70/day x 5 days x 4 trainings x 3 communities); [Contractual services] 2,100 2,100 4,200 - Local trainers' travel expenses ($60/round trip x 4 round trips x 3 communities); [Contractual services] 360 360 720 - Per diem and lodging ($55/day x 20 days, $135/day x 40 days); [Contractual services] 3,250 3,250 6,500 - Training materials ($5/participant x 200 participants); [Contractual services] 500 500 1,000 - Consulting support ($80/day x 3 days/business plan x 100 business plans); [Contractual services] 9,600 14,400 24,000 - Printing/copying materials [Operating expenses] 200 280 480 Activity 2.4.6 Identify successful businesses in relevant sub-sectors in other administrative regions and organize short- 14,400 - 14,400 UNIDO term internship for the project beneficiaries. [Contractual services] - Consultant’s fee for business identification and internship coordination ($80/day x 10 days x 3 2,400 - 2,400 communities); - Participants internship expenses - travel, per diem, lodging ($60/day x 40 participants x 5 days) 12,000 - 12,000 Output 2.5 By the end of the first year of the project implementation, SME-supporting Fund is established and 200,400 300,420 500,820 UNIDO opportunities for lending are increased for start-up businesses in the target communities. Activity 2.5.1 Develop Terms of Reference for SME-supporting Fund management. [Contractual services] 160 - 160 UNIDO - Experts ($80/day x 2 days).

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Objective/ Implemen Output/ Detailed Description Year 1 Year 2 Total ting orga- Activity nization Activity 2.5.2 Organize and conduct a tender among MFI and/or UCOs. [Contractual services]0 240 - 240 UNIDO - Experts ($80/day x 3 days). Activity 2.5.3 Select and contract MFI for SME-supporting Fund management, and start lending activities. [Contractual 200,000 300,000 500,000 UNIDO services] - Establish revolving fund ($5,000/start-up loan x 40 loans for the first and 60 loans for the second year). Activity 2.5.4 Develop guidelines and procedures for re-investing part of the revenue received from SME-supporting - 420 420 UNIDO Fund into implementation of community-owned programmes. - Experts ($80/day x 4 days); [Contractual services] - 320 320 - Printing/copying materials [Operating expenses] - 100 100 Activity 2.5.5 Support community-owned programmes through re-investing part of revenue from SME-supporting Fund - - - UNIDO for the implementation of such programmes in cooperation with local authorities. Output 2.6 Population of Pambak and Geghamasar communities have increased access to diversified energy 31,225 177,275 208,500 UNIDO resources. Activity 2.6.1 Carry out needs assessment in two selected communities to determine potential of locally available 4,300 - 4,300 UNIDO resources, extent and kind of energy services needed, relevant renewable technologies, (e.g. bioenergy, solar etc.) and scope of assistance and utilizing renewable energy resources accessible for productive uses - International Expert’s fee ($400/day x 4 days); 1,600 - 1,600 - Mission Cost -7 w/d DSA x $207, transport- $600/ticket; TE, visa- $150 2,200 - 2,200 - Local Expert’s fee ($70/day x 4 days); 280 - 280 - Per-diem for local expert ($55/day x 4 days) 220 - 220 Activity 2.6.2 Develop main and alternative options of biogas production, taking into account possible involvement of 1,550 - 1,550 UNIDO community members, i.e. establishment of support groups, to promote biogas production through the joint collection of manure, biomass and organic waste (15 days (10 + 5) x $80/day) each year. [Contractual services] - International Expert’s fee ($400/day x 2 days); [Contractual services] 800 - 800 - Mission Cost ( 7 w/d DSA x $207, transport- $600/ticket; TE, visa- $150 – budgeted in 2.6.1 - - - - Local Expert’s fee ($70/day x 6 days); 420 - 420 - Per-diem for local expert ($55/day x 6 days) 330 - 330 Activity 2.6.3 Develop and discuss options of utilisation of produced energy and by-products (fertiliser) for heat or 375 - 375 UNIDO electricity. [Contractual services] - Local Expert’s fee ($70/day x 3 days); 210 - 210 - Per-diem for local expert ($55/day x 3 days) 165 - 165 Activity 2.6.4 Establish 2 pilot biogas demonstration units based on renewable energy systems in Pambak and 25,000 140,000 165,000 UNIDO Geghamasar communities for providing reliable and affordable energy services using local resources, and linking with productive uses for income generation activities. [Contractual services] - Design (Geghamasar Biogas Unit - $15,000, Pambak Biogas Unit - $10,000); 25,000 - 25,000

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Objective/ Implemen Output/ Detailed Description Year 1 Year 2 Total ting orga- Activity nization - Construction (Geghamasar Biogas Unit -$80,000, Pambak Biogas Unit - $60,000). - 140,000 140,000 Activity 2.6.5 Organize training and build capacity of local communities on operation/maintenance of biogas systems. - 3,175 3,175 UNIDO [Contractual services] - International Expert’s fee ($400/day x 3 days); - 1,200 1,200 - Mission Cost ($700/ticket; per-diem $210/day x 4 days; visa; terminal); - 1,600 1,600 - Local Expert’s fee ($70/day x 3 days); - 210 210 - Per-diem for local expert ($55/day x 3 days) - 165 165 Activity 2.6.6 Organize technical monitoring of biogas units, by recording technological data and conducting chemical - 34,100 34,100 UNIDO analysis of by-products: - Technical staff: 2 people x 240 days x $30/day; [Contractual services] - 14,400 14,400 - Rent (truck): $200/month x 12 months; [Operating expenses] - 2,400 2,400 - Fuel: 10 litre x 250 days x $1.4/litre; [Operating expenses] - 3,500 3,500 - Monitoring: (2 specialists x 120 days x $50/day); [Contractual services] - 12,000 12,000 - Chemicals for technical monitoring, car and office rent. [Acquisitions] - 1,800 1,800 UNIDO sub-project management 36,000 14,000 50,000 UNIDO - Project Associate [Staff and personnel expenses] 12,000 12,000 24,000 - 4-wheel vehicle [Acquisition] 22,000 - 22,000 - Fuel for monitoring visits/local travel ($100/month x 23 months) [Operating expenses] 1,200 1,100 2,300 - Office maintenance/communication [Operating expenses] 800 900 1,700 Output 2.7 By the end of the project 95% of population in selected administrative regions benefit from client friendly 132,500 35,500 168,000 UNICEF health services provided by trained health care providers in equipped and renovated HCFs. UNFPA Activity 2.7.1 Improving health facility infrastructure. 17,900 - 17,900 UNFPA - Renovation of three healthcare facilities in selected communities ($4,500 x 3 communities); [Contractual 13,500 - 13,500 services] - Provision of medical equipment to health facilities (one gynaecological chair, lamp, and set of 4,400 - 4,400 gynaecological instruments for Kasakh health facility ($1,400), other medical equipment for all three healthcare facilities ($3,000); [Acquisitions] Activity 2.7.2 Setting up TGTs in two regions (vehicle and medical equipment) 6. [Acquisitions] 53,000 - 53,000 UNFPA Activity 2.7.3 Training of various target groups and health care provides. [Contractual services] 20,300 - 20,300 UNFPA - 2 Certificate courses 4 days each for 22 providers (operating expenses of $25/day x 22 participants x 2 4,650 - 4,650 training courses x 4 days each) including meals, teaching materials and use of venue and training of 10 health administrators ($25/day x 10 participants x 1 day); - 6 sessions of 1-day training of 20 community leaders, teachers, men and women of reproductive age in 9,000 - 9,000 each community ($25/day x 360 participants), including meals, teaching materials and use of venue;

6 Medical equipment for a TGT include: portable ultrasound scanner, foetal monitor, and emergency stretcher.

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Objective/ Implemen Output/ Detailed Description Year 1 Year 2 Total ting orga- Activity nization - 2 sessions of 3-day training of 24 participants of TGT teams ($25/day x 24 participants x 3 days x 2 3,600 - 3,600 sessions) including meals, teaching materials and use of venue; - 2-days training of 4 Youth Centres staff on youth counselling and referral system ($25/day x 2 days x 4 200 - 200 Youth Centre staff), including meals, teaching materials and use of venue; - Trainer’s fee ($75/day x 24 days); 1,800 - 1,800 - Transportation costs for organizing the trainings. 1,050 - 1,050 Activity 2.7.4 Establishing Youth Centre in Kasakh community. [Contractual services] 2,800 - 2,800 UNFPA Activity 2.7.5 Strengthen the capacities of 80% of PHC workers (family doctors, paediatricians and nurses) through 7,200 14,400 21,600 UNICEF organization of trainings on different MCH topics. [Contractual services] Training courses for family doctors, paediatricians and nursed on standardized PHC package, including timely immunization, management of common childhood illnesses, child growth and development, breastfeeding and young child nutrition, injury prevention and on organization of parental education classes. Each trainee will participate in 4 training courses (in total 20 days); 3 groups of 20 participants will be composed; 2 trainers per group per training course; - Meals and travel allowance for participants (60 participants x 20 days x $12/day); 4,800 9,600 14,400 - Trainers’ fee, meals and travel allowance (2 trainers x 3 groups x 20 days x $50/day); 2,000 4,000 6,000 - Training materials (60 participants x $20). 400 800 1,200 Activity 2.7.6 Provision of target PHC facilities with basic medical supplies and equipment. [Contractual services] 4,000 - 4,000 UNICEF - Procurement and provision of PHC facilities of 3 communities and 2 regional centres with basic medical 4,000 - 4,000 supplies and equipment (5 medical kits x $800); Activity 2.7.7 Establishment of parental education centres in PHC facilities of all the communities. [Contractual services] 7,000 5,000 12,000 UNICEF - Printing and provision of healthcare facilities with parental educational materials on different MCH topics 5,000 5,000 10,000 (5,000 units x $2). - Procurement and provision of PHC facilities of 3 communities and 2 regional centres with TV/ DVD set 2,000 - 2,000 for organization and functioning of parental education centres (5 TV/DVD sets x $400). Activity 2.7.8 Training of health care providers on youth-friendly approaches and SRH, prevention of HIV/AIDS/STIs. 3,800 7,600 11,400 UNICEF [Contractual services] Training courses for family doctors, paediatricians and nursed on youth friendly approaches and SRH, prevention of HIV/AIDS/STIs. Each of the trainees will participate at 2 training courses (10 days); 3 groups of 20 participants will be composed; 2 trainers per group per training course. - Meals and travel allowance for participants (60 participants x 10 days x $12/day); 2,400 4,800 7,200 - Trainers’ fee, meals and travel allowance (2 trainers x 3 groups x 10 days x $50/day); 1,000 2,000 3,000 - Training materials (60 participants x $20). 400 800 1,200 Activity 2.7.9 Training of neonatologists, ob/gyns and nurses on Intensive Neonatal Care, Making Pregnancy Safer and 16,500 8,500 25,000 UNICEF Baby Friendly Hospital Initiative, and provision of neonatal departments of selected regions with basic supplies and medicines (including oxygen concentrator). [Contractual services]

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Objective/ Implemen Output/ Detailed Description Year 1 Year 2 Total ting orga- Activity nization Each trainee will participate at 3 training courses (in total 15 days); 2 groups of 25 participants will be composed; 2 trainers per group per training course - Meals and travel allowance for participants (50 participants x 20 days x $12/day); 6,000 6,000 12,000 - Trainers’ fee, meals and travel allowance (2 trainers x 2 groups x 20 days x $50/day); 2,000 2,000 4,000 - Training materials (50 participants x $20); 500 500 1,000 - Procurement and provision of oxygen concentrators (4 units x $2,000). 8,000 - 8,000 UNICEF sub-project management 14,000 14,000 28,000 UNICEF - Periodic follow-up, monitoring and supportive supervision visits to project sites. [Operating expenses] 4,000 4,000 8,000 - Technical guidance and support.[Staff and other personnel expenses] 10,000 10,000 20,000 Output 2.8 By the end of the project healthy life style lessons are in use in three schools with improved infrastructure 13,000 5,000 18,000 UNICEF and 30 peer educators have knowledge and skills to provide counselling on HLS including HIV/AIDS to their peers in selected communities. Activity 2.8.1 Procurement and provision of furniture and supplies for the schools in selected communities. [Contractual 8,000 - 8,000 UNICEF services] Activity 2.8.2 Training courses for school teachers and administrators on introduction of HLS course using youth friendly 2,000 2,000 4,000 UNICEF methodology. [Contractual services] Activity 2.8.3 Training of peer educators on methodology of peer education sessions on HIV/AIDS and child rights in 3,000 3,000 6,000 UNICEF three schools. [Contractual services] Project Support Costs 105,694 52436 158,130 Indirect support costs at 7%, UNHCR [Project Support Cost] 45,850 4,060 49,910 UNHCR Indirect support costs at 7%, UNDP [Project Support Cost] 26,985 8,680 35,665 UNDP Indirect support costs at 7%, UNIDO [Project Support Cost] 21,694 35,881 57,575 UNIDO Indirect support costs at 7%, UNFPA [Project Support Cost] 6,580 - 6,580 UNFPA Indirect support costs at 7%, UNICEF [Project Support Cost] 4,585 3,815 8,400 UNICEF TOTAL 1,615,609 801,521 2,417,130

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Table 2: Summary Budget by Objective for Each Year of the Project

Objective Year 1 Year 2 Total Objective 1: 577,000 577,000 Increased access to suitable housing in Kasakh community (Kotayk region) for the socially poor and disadvantaged through remodelling of a former factory building into houses. Objective 2: 854,915 691,085 1,546,000 Improved living and health standards in Kasakh community (Kotayk region) and Pambak and Geghamasar communities (Gegarkunik region) for socially vulnerable families through sustainable opportunities. Sub-programme Management by Implementing Agencies and Overall 78,000 58,000 136,000 Project Coordination Sub-Total 1,509,915 749,085 2,259,000 Administration by Implementing Agencies/PSC (7% of the amount assigned 105,694 52,436 158,130 for execution) Total 1,615,6049 801,521 2,417,130

Table 3: Budget Summary, by Reporting Object Class

Object Class Year 1 Year 2 Total Staff and other personnel expenses - UNHCR 36,000 36,000 72,000 - UNIDO 12,000 12,000 24,000 - UNICEF 10,000 10,000 20,000 Sub-total: 58,000 58,000 116,000 Travel on official business Sub-total: - - - Contractual Services - UNHCR 591,000 16,000 607,000 - UNDP 385,500 124,000 509,500 - UNIDO 273,715 490,505 764,220 - UNFPA 36,600 - 36,600 - UNICEF 51,500 40,500 92,000 Sub-total: 1,338,315 671,005 2,009,320 Operating Expenses - UNHCR 6,000 6,000 12,000 - UNIDO 2,200 8,280 10,480 - UNICEF 4,000 4,000 8,000 Sub-total: 12,200 18,280 30,480 Acquisitions - UNHCR 22,000 - 22,000 - UNIDO 22,000 1,800 23,800 - UNFPA 57,400 0 57,400 Sub-total: 101,400 1,800 103,200 Fellowships, grants and others Sub-total: - - - Total estimated project cost: 1,509,915 749,085 2,259,000 Estimated PSC 105,694 52,436 158,130 Total estimated project funds 1,615,609 801,521 2,417,130

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Table 4: Summary Budget by Implementing Organization for Each Year of the Project

Implementing Organization Year 1 Year 2 Total UNHCR Project Cost 655,000.00 58,000.00 713,000.00 PSC 45,850.00 4,060.00 49,910.00 UNDP Project Cost 385,500.00 124,000.00 509,500.00 PSC 26,985.00 8,680.00 35,665.00 UNIDO Project Cost 309,914.29 512,585.71 822,500.00 PSC 21,694.00 35,881.00 57,575.00 UNFPA Project Cost 94,000.00 - 94,000.00 PSC 6,580.00 - 6,580.00 UNICEF Project Cost 65,500.00 54,500.00 120,000.00 PSC 4,585.00 3,815.00 8,400.00 Total Project costs 1,509,914.29 749,08.715 2,259,000.00 Total PSC amount 105,694 52,436 158,130 Total budget including administration fee 1,615,608.29 801,521.71 2,417,130.00

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Annex 4: Terms of References (Draft)

Project Coordinator

1. General Post Title: Project Coordinator Duration: 2 years Project: Sustainable Livelihood for Socially Vulnerable Refugees, Internally Displaced and Local Families, Joint UN Project Location: Yerevan with frequent travel to the project implementation regions

2. Objectives

The objective of the post is to support and coordinate implementation of project activities, to coordinate with other agencies for the overall implementation of the project and to consolidate the reports from each agency and to report to HSFT management according to the guidelines.

3. Scope of Work/Duties and Responsibilities

Under the supervision of the UNHCR Representative and the Programme Unit the incumbent will be responsible for: • Collecting the substantive progress and financial reports from each agency • Consolidating and aggregating the reports into one as prescribed in the required guidelines • Preparation of the consolidated annual and final progress and financial reports • Preparation of substantive progress and financial reports on implementation of UNHCR’s project • Preparation/review of periodic and annual work plans and facilitation of smooth implementation of planned activities • Leading of regular coordination meetings with participating UN agencies and national counterparts if appropriate • Conduct joint monitoring activities of the project implementation with participating agencies • Acting as a liaison between the UN agencies and UNTFHS as well as other relevant stakeholders on project management and coordination issues and provide the required feedback • Other duties as required

4. Qualifications

• Advanced degree in commerce, business, social sciences, resource management, community development or related field • At least three years of experience on project management and coordination with international organizations • Strong strategic thinking and planning • Project management skills are mandatory, including the capability of developing operational strategies and meaningful indicators of progress • Good command of Armenian and English • Excellent Computer skills • Strong Team building skills and leadership • Strong writing and communication skills for coordination with other agencies , authorities etc

Project Assistant

2. General Post Title: Project Assistant Duration: 2 years

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Project: Sustainable Livelihood for Socially Vulnerable Refugees, Internally Displaced and Local Families, Joint UN Project Location: Yerevan with frequent travel to the regions

2. Objectives

The objective of the post is to support the implementation of the project activities, to prepare relevant documentation and follow up on implementation of the programme related requirements.

3. Scope of Work/Duties and Responsibilities

Under the supervision of the Project Coordinator and Programme Unit the incumbent will be responsible for: • Providing administrative support to the project Coordinator for planning, monitoring and coordination of the project activities • Facilitate visits and missions to project sites as required • Preparation of background information for discussions and contribution to the preparation of reports, project documents and correspondence • Facilitate regular coordination meetings with participating agencies and national counterparts as required. • Support the Project Coordinator with the implementation of UNHCR’s project • Draft communication (un agencies, HSTF) • Maintaining project and sub-project records and files • Working with UNHCR’s implementing partner, as appropriate, and maintaining good relations in support of successful programme implementation • Supporting the selection of beneficiaries and distribution of data for the production of statistics • Monitoring of the UNHCR’s project implementation • Performing other tasks as required

4. Qualifications

• Advanced degree in commerce, business, social sciences, resource management, community development or related field • At least three years of experience with international, governmental and non-governmental organizations • Good planning and drafting skills • Good organizational and communication skills • Good knowledge of Armenian and English • Good Computer skills • Must be a team player

Project Driver/Clerk

3. General Post Title: Project Driver/Clerk Duration: 2 years Project: Sustainable Livelihood for Socially Vulnerable Refugees, Internally Displaced and Local Families, Joint UN Project Location: Yerevan with frequent travel to the project implementation regions

2. Objectives

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The objective of the post is to drive the official vehicles, to perform clerical, maintenance and other services that may deem necessary for the support of the project implementation activities.

3. Scope of Work/Duties and Responsibilities

Under the direct supervision of the UNHCR Administrative Officer/Assistant and the Programme Unit the incumbent will be responsible for: • Driving official vehicle for various missions, courier services and for other official assignments • UNHCR courier/ pouch services and other errands that maybe required within the framework of the project • Following strict instructions and security guidance provided by the supervisor • Ensuring that the official vehicle is maintained up to the established security standards • Keeping the Office administration abreast on the condition of the vehicle • Recording/registering all travel and driving assignments as per established record (log) book • Remaining up-to-date with all the road network in the area, their physical status at any given time • Assisting in very basic clerical work • Other duties as required

4. Qualifications

• Completion of the Secondary education • Valid national driving license with a minimum of 4 years accident free experience in motor car and 4 wheels drive vehicles for an International organisation • Sound knowledge in motor car maintenance and routine mechanical repairs • Practical knowledge of UNHCR, its functions and responsibilities • Basic skills in office equipment and commonly used machines • Highly responsible person with positive attitudes and a team player • Strong interpersonal skills to work with staff members of various cultural and educational backgrounds • Excellent knowledge of Armenian • Average knowledge of English

Agricultural Development Specialist

1. General Post Title: Agricultural Development Specialist Duration: 2 years Project: UNDP Community Development Project Location: Yerevan with frequent travel to the regions

2. Objectives

The objective of the post is to provide agricultural expertise to support implementation of project activities, as well as to design and support the implementation of agricultural projects in the targeted communities.

3. Scope of Work/Duties and Responsibilities Under the supervision of the Project Coordinator the incumbent will be responsible for: • Identification of agricultural projects and provision of support to their implementation; • Identification of agricultural extension needs in the communities; • Preparation of training programmes and their implementation; • Organization of trainings for trainers; • Provision of internal discussions, arrangements of meetings with national concerned authorities and other logistical support;

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• Ensuring smooth operation of the component activities; • Perform other duties as required.

4. Qualifications

• Advanced University degree in Agriculture • Minimum 3 years of experience in agricultural development sphere • Excellent knowledge of rural development issues in Armenia • Working experience with international organizations is an asset • Good knowledge of Armenian and English • Computer skills • Must be a team player • Willingness to travel frequently to the regions where the Project operates

Economist/Social Development Specialist

1. General Post Title: Economist/Social Development Specialist Duration: 2 years Project: UNDP Community Development Project Location: Yerevan with frequent travel to the regions

2. Objectives

The objective of the post is to provide economical and sociological expertise to support implementation of project activities, as well as to facilitate development of community-level and sub-regional strategic development plans.

3. Scope of Work/Duties and Responsibilities

Under the supervision of the Project Coordinator the incumbent will be responsible for: • Analysis of economic development potential and possibilities of the communities and the district where the Project operates providing economic inputs during the elaboration of community and district development plans; • Facilitating elaboration of community development plans for the communities included in the Project through active engagement of the community residents, authorities, specialized working groups, and any interested groups in the discussion process; • Drafting the individual strategic plans for community development and finalizing them with community authorities and the Project; • Conducting feasibility studies for revealing economic development options for the communities/district involved in the Project; • Elaboration of various income generation mechanisms and schemes for the communities involved in the Project (revolving funds, group savings, etc.) and facilitation of their further application; • Identification of non-farming activities (agro-products processing, production units, etc.) aimed at the economic revitalization and development of the communities; • Identification of poor households and vulnerable groups to be assisted through income generation activities and public works projects; • Facilitating creation, registration and operation of various local organizations – Farmers’ Associations, Cooperatives, Women’s Organizations, etc.; • Capacity building of the communities through organizations of various trainings and workshops on community governance, budgeting, planning, and other issues of interest for the communities; • Other duties as required.

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4. Qualifications

• Master’s degree in economics, sociology, rural development • Minimum 3 years of experience in socio-economic development sphere • Excellent knowledge of rural development issues in Armenia • Excellent knowledge of functioning of local self government in the country • Good knowledge of procedures for creation and registration of local organizations • Working experience in community strategic planning • Good knowledge of Armenian and English • Computer skills • Must be a team player • Willingness to travel frequently to the regions where the Project operates

Project Assistant (UNIDO)

1. General Post title: Project Assistant Duration: 1 year (with possible extension) Starting date: xxxx Location: Yerevan, Armenia

2. Duties and Responsibilities:

Under the direct supervision of the Head of UNIDO Operations in Armenia and overall coordination of the UNHCR-based Project Coordinator, the Project Assistant will be responsible for providing support to the project implementation in general administration, financial resource management, procurement and human resources administration. Particularly: - Liaise with UNIDO HQs staff backstopping SME and rural energy components of the project; - Provides support to the Head of UNIDO Operations in Armenia (HUO) and the UNHCR-based Project Coordinator, in coordination and arrangement of Project activities and their timely implementation; - Assists the UNIDO HQs staff, and HUO in Armenia in liaising with key stakeholders from the Government counterpart, Donor Community, Civil Society and NGOs as required. - Makes arrangements for missions, experts, drafts agendas, and prepares briefing kits and background materials. - Provides logistic support in M&E activities of the UNIDO components by organizing meetings with implementing partners, national counterparts, field visits. - Takes notes/minutes at meetings and ensures follow up. - Drafts correspondence relating to assigned project areas; clarifies, follows up, responds to requests for information. - Assists the HUO in preparing progress reports at quarterly basis, as well as other reports requested by the donor. Carries out routine processing of the Project UNIDO components’ official correspondence.

3. Required qualifications:

Education: University degree in social sciences, economics.

Experience: 3 years of relevant administrative experience is required, preferably with International organizations/Embassies. Computer skills: Experience in the usage of computers and office software packages (MS Word, Excel, etc) and knowledge of spreadsheet and database packages, experience in handling of web based management systems. Languages: Fluency in English, Armenian, Russian.

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