USAID FROM THE AMERICAN PEOPlE

October 10, 2014

Mr. Yuri Afanasiev Resident Representative United Nations Development Programme Zmaja od Bosne b.b. 71000 Sarajevo and

Subject: Grant No.: AlD-168-IO-15-OOOOI Via Dinarica: A Platform for Sustainable Tourism Development and Local Economic Growth

Dear Mr. Afanasiev:

Under the authority contained in the Foreign Assistance Act of 1961 , as amended, the U.S. Agency for International Development (USAID) hereby grants to the United Nations Development Programme (UNDP), (here inafter referred to as the "Grantee"), the sum of$984,258 to provide support to undertake the activity "Via Dinarica: A Platfo rm for Sustainable Tourism Development and Local Economic Growth" as described in Attachment 2, entitled "Activity Description".

This Grant is effective and obligation is made as of the date of this letter and will apply to expenditures made by th e Grantee in furtherance of program Obj ectives during the period beginning October 10, 2014 and ending September 30, 201 7. USAID will not be li able for reimbursing the Grantee for any costs in excess of the obligated amount.

Thi s award is made to the Grantee on conditi on that the funds are administered in accordance with the terms and conditions as set forth in Attachment I (the Schedule), Attachment 2 (the Activity Description), and Attachment 3 (the Standard Provisions); all of which have been agreed to by your organization.

Please sign the original and all enclosed copies of this letter to acknowledge your receipt of the grant, and return the original and all but one copy to th e undersigned.

David J. Barth Agreement Officer

Attachm ents: I. Schedule 2. Activity Description 3. Standard Provisions ACKNOWLEDGED by:

IAUulasiev velopment Programme

TITLE: ~Ol:f'l'f W~V/i

2 Grant No.: AID-J68-IO-J5-0000J Via Dinarica: A Platform for Sustainable Tourism Development FISCAL DATA

A.GENERAL

I. Total Estimated USAID Amount: US$ 984,258 2. Total Obligated USAlD Amount: US$ 984,258 3. Cost-Sharing Amount (Non-Federal): N/A 4. Activity Title: "Via Dinarica: A Platform for Sustainable Tourism Development and Local Economic Growth" 5. USAlD Technical Office: USAlDlBosnia-Herzegovina 6. Tax lD Number: N/A 7. DUNS No.: 64-552-1498 8. LOC Number: HHS-17A8P B.SPECIFIC

TREASURY SYMBOL: 72451037 APPROPRIATION TITLE: Economic Support Fund ALLOWANCE AMOUNT: US DOLS $984,258 BBFY: 20 14 EBFY: 2015 FUND CODE: ES OPERATING UNIT: BOSNIA PROGRAM AREA: AI9 DISTRIBUTION CODE: 168-M PROGRAM ELEMENT: A077 PHOENIX DISTRIBUTION NO: N/A

C. PAYMENT OFFICE

USAlD/MIFMlCMP, Letter of Credit (LOC) Unit 1300 Pennsylvania Avenue, NW RRB Room 7.07-110 Washington, D.C. 20523-7700

D. ADMINISTRATIVE OFFICE

U.S. Agency for International Development Office of Acquisition and Assistance (OAA) Roberta C. Frasurea I 71000 Sarajevo

E. TECHNICAL OFFICE

USAlDlBosnia-Herzegovinai Program and Project Office

3 Grant No.: AID·J68·]O·J5·0000J Via Dinaric a: A Platform for Sustainable Tourism Development

TABLE OF CONTENTS Attachment 1 - SCHEDULE ...... 4 A. PURPOSE OF GRANT ...... •...... •...... •...... •..•...... •. 5 B. PERIOD OF GRANT ...... 5 C. AMOUNT OF GRANT AND PAyMENT...... 5 D. GRANT BUDGET ...... 5 E. REPORTING AND EVALUATION ...... 5 F. SPECIAL PROVISIONS ...... 5 1. PROGRAM PROCUREMENT OF GOODS AND SERVICES ...... 5 2. AGREEMENT OFFICER'S REPRESENTATIVE (AOR) ...... ••...... •...... •...... •.. 6 3. ENVIRONMENTAL COMPLIANCE .....•••••...... •....•...... •••••• 6 4. BRANDING STRATEGY AND MARKING PLAN ...... 6 Attachment 2 - PROJECT PROPOSAL. .•...... ••.•...•..•...... •...... •...... •...... •...•...... 9 PART I: SITUATION ANALySiS ...... 9 1.1. Country context ...... 9

1.2. Tourism development ...... 9 1.3. The Via Dinarica concept ...... 9

1.4. Main challenges with regard to tourism development along the Via Dinarica trails ...... 11 1.5. Transferable best practices and lessons learned from global experiences ...... 13

1.6. Previous project phase ...... 14 1.7. Other relevant interventions in the sector ...... 15 PART II: STRATEGY ...... 15 2.1. Strategic orientation ...... 15 2.2. Project overview ...... 17

2.3. Project activities and results ...... 19 2.4. Project approach ...... 29

2.5. Synergy with other on-going relevant interventions ...... 31 2.6. Risk analysis and mitigation proposals ...... 31 PART III: MANAGEMENT ARRANGEMENTS ...... 32 PART IV: BUDGET ...... 34 PART V: MONITORING AND EVALUATION ...... 34 A.2 SECTION II: PROJECT RESULTS AND RESOURCES FRAMEWORK...... 35 A.3 SECTION III: ANNUAL WORKPLAN ...... 40 Attachment 3· STANDARD PROVISIONS ...... 44

Attachment I - SCHEDULE

4 Grant No.: AID-168-IO-15-00001 Via Dinarica: A Platform for Sustainable Tourism Development A. PURPOSE OF GRANT

The purpose of this grant is to provide support to the United Nations Development Programme (UNDP, the "Grantee") for the Via Dinarica: A Platform for Sustainable Tourism Development and Local Economic Growth as more specifically described in Attachment 2 (the Activity Description) of this grant.

B. PERIOD OF GRANT

The effective date of this grant is October 15, 2014. The expiration date of this grant is August 31, 2017.

C. AMOUNT OF GRANT AND PAYMENT

1. USAID hereby obligates the amount of US$984,258 for purposes of this grant.

2. Payment shall be made to the Grantee in accordance with procedures set forth in Attachment 3, Standard Provision entitled "Payment (Letter of Credit) CApriI2011)".

D. GRANT BUDGET

The following is the Grant Budget. Revisions to the USAID Contribution portion of this Budget may be made only in accordance with the Standard Provision of this grant entitled "Award Budget Limitations and Revisions (April 2011 )". Administrative, monitoring and oversight expenses for the activity will be borne by the Grantee. Eight percent of USAlD contribution will be used toward indirect costs (general management and support).

USAlD Contribution Implementation of activities $984,258 UNDP Contribution Administration, Monitoring, and Oversight $502,748 TOTAL: $1,487,005

E. REPORTING AND EVALUATION

Financial Reporting and Program Reporting shall be in accordance with this provision and the Standard Provision of this grant, titled "Audit and Records (UN, September 2011)" as found in Attachment 3, Standard Provisions.

The Grantee must submit quarterly progress reports to the Activity Manager which outlines the progress made on activities, results, and future activities. This report will include progress-to-date on performance indicators.

The Grantee must prepare and submit a copy of the final report required by this grant to the Agreement Officer's Representative and to the Development Experience Clearinghouse (DEC). Instructions for submissions to the DEC can be found at dec.usaid.gov.

The title page of all reports forwarded to USAID must include a descriptive title, the author's name, grant number, the project number and title, the grantee's name, the name of the USAID office, and the publication or issuance date of the report.

F. SPECIAL PROVISIONS

1. PROGRAM PROClJREMENT OF GOODS AND SERVICES

5 Grant No.: AID-J68-IO-JS-OOOO J Via Dinarica: A Platform for Sustainable Tourism Development The Grantee is authorized to procure goods and services for purposes of the activity described in Attachment 2 under Geographic Code 935 using funds from this grant, except for restricted conunodities under ADS 312. A waiver must be obtained from USAlD in accordance with ADS 312 prior to the purchase of restricted conmlodities. ADS 312 can be accessed at http://transition.lIsaid. gov Ipo Ii ev Iads/3 0013 12. pdf

Geographic Code 935 allows USAlD-provided funds to be used to purchase goods and services from any country in the world, except for Prohibited Source Countries. The current List of Prohibited Source Countries can be found here: http://www.usaid.gov/sites/default/files/documentsI1864/31 Omac.pdf, and should be reviewed prior to the purchase of any goods or services under this Grant.

2. AGREEMENT OFFICER'S REPRESENTATIVE (AOR)

The USAlD Agreement Officer's Representative (AOR) for this program will be designated in a separate Memorandum. Notices and reports provided for this grant should be sent to the attention of the Agreement Officer and the AOR at the foHowing address:

USAID/Bosnia and Herzegovina Ulica Roberta C. Frasurea I 71000 Sarajevo Bosnia-Herzegovina

Alternatively, they can be provided via email to the addresses indicated in the AOR designation memorandum.

3. ENVIRONMENTAL COMPLIANCE

USAID has provided the Grantee with an initial environmental evaluation, setting forth some of the environmental impacts and concerns identified by USAID regarding the activities to be undertaken under this Grant. USAID shall rely on the Grantee's implementation of its own internal environmental policies and regulations to ensure that all issues identified in USAlD's initial environmental evaluation are addressed as well as any other issues that are discovered or that arise during implementation of the activities under this Grant.

4. BRANDING STRATEGY AND MARKING PLAN

UNDP will take all practicable means to ensure that all equipment, supplies, and other assistance items provided under this grant will be branded in accordance with official USAlD branding guidelines for Assistance Awards, including tagged "From the American People." USAID will be consulted as to the branding and marking of all assistance items provided. USAID's branding guidelines can be found at: http://www.usaid.gov/branding.

[END OF ATTACHMENT 1- SCHEDULE]

6 Grant No.: AID-168-IO-IS-OOOOJ Via Dinarica: A Platform for Sustainable Tourism Development

Attachment 2 - Activity Description United Nations Development Programme (UNDP) Country: Bosnia and Herzegovina (BiH)

Via Dinarica: a Platform for Sustainable Tourism Development and Local Project Title: Economic Growth Responsible Party: UNDP in BIH BiH Ministry of Foreign Trade and Economic Relations, entity ministries, Key project partners: local governments, civil society organisations, tourism-related private sector

Summary narrative: The heart of this program is the Via Dinarica Trail which stretches over 650 km along the southern mountain range of the Dinarica Alps in Southeast Europe through , BiH, , , , , and . Geographically, BiH lies in the center of the Via Dinarica mega trail and offers extraordinary beauty and value both in terms of natural and cultural heritage, as well as substantial potential for tourism development and community livelihoods. An added urgency is the devastating floods and landslides of May 2014 that heavily affected peoples' homes, public services, agriculture, and economic activity in over 20 local governments along the trail.

The project is designed with the overall objective to contribute to the reduction of economic, social, and regional disparities in BIH through the affirmation of the Via Dinarica as a regional tourism destination and increase BiH's competitiveness in nature-based tourism. The project will expand on the achievements of the Walking the Via Dinorica pilot initiative under this project titled "Via Dinarica - a Platform for Sustainable Tourism Development and Local Economic Growth". The project aim is to further forge the process of establishing the Via Dinarica corridor as a community-owned and operated tourism product that provides sustainable livelihoods for a broad range of stakeholders. This will be achieved by realizing four specific objectives, as follows: 1. To assess and chart all Via Dinarica Trails in BiH; 2. To improve tourism infrastructure and strengthen capacities of tourism service providers along the Via Dinarica White and Green Trails; 3. To promote, market, and strengthen the identity of the Via Dinarica in BiH within the country and internationally; 4. To facilitate establishment of partnership networks and cooperation among relevant stakeholders along the Via Dinarica Trails in BiH, and with higher government authorities. To respond to the needs of flood victims and to capitalize on the positive results of the initial Via Dinarica pilot project, UNDP, in close collaboration with USAID/BiH, will focus the first year of this follow-on activity on assisting affected communities along one of the main Via Dinarica in-country trails (the Green Line) in order to turn the consequences of the natural disaster into a narrative of hope and contribute to sustainable livelihoods and economic recovery through integrated tourism development. SpeCifically, by working with communities and a wide variety of relevant stakeholders, this activity will support sustainable rehabilitation and valorisation of public and private tourism assets along the Via Dinarica trail, with the overall aim to increase its competitiveness and add value to an integrated tourism offer. In parallel, it will strengthen the value of the Via Dinarica touristic trail destinations and visitor site propositions through improved quality of tourism facilities, infrastructure, and tourism services. These efforts are underpinned by fostering skills and capacities of local social, economic and public stakeholders to develop sustainable and integrated tourism products and business practices, thus directly helping local employability and income generation. The project will reinforce the linkages within the tourism sector with auxiliary sectors such as culture, agriculture and handicraft in a way that help create additional livelihood opportunities for the people in target areas, with a focus on vulnerable populations. The intervention will also facilitate local and regional development partnerships and networks among public, private, and civil society organizations. Attention will be placed on continuous promotion, branding, and marketing of the Via Dinarica destination regionally and internationally, thus expanding interest, attracting tourists and visitors and contributing to sustaining the results of the project.

7 Grant No.: AID-J 68-10- 15-0000 I Via Dinarica: A Platfonn for Sustainable Tourism Development

LIST OF ABBREVIATIONS

.__ .. __ .__ ._ ..... - BHMAC Bosnia and Herzegovina Mine Action Centre

BiH Bosnia and Herzegovina

B&Bs Bed and breakfasts

DCE Dual-capacity equipment

EU European Union

FARMA Fostering Agriculture Markets Activity

FBiH Federation of Bosnia and Herzegovina _.. FIRMA Fostering Interventions for Rapid Market Advancement -- GPS Global Positioning System

km kilometers

MOFTER Ministry of Foreign Trade and Economic Relations : Mt. Mount I

NGQ- .~~~"--' Non-governmental organization _... .-- NP National Park ...... _ _._ _ _. .. --.~,---... PD Planinarska Drustva / Mountain Association

.... --~ .. RS

-- , .. -- SIDA Swedish International Development Agency

SMART Specific, Measured, Achievable, Relevant, and Time-Bound

TBD To be decided ----_.- UNESCO United Nations Education, Scientific, and Cultural Organization ... UNDP United Nations Development Programme

-.. _._._- USA United States of America

USAID United Stated Agency for International Development

._----._ ... - ... -~-.---.-. --_ .. _- USD United States Dollar

VD I Via Dinarica .... --. - --._-

8 Grant No.: AlD-168-10-IS-OOOOI Via Dinarica: A Platform for Sustainable l 'ourism Development

I A_1 SECTION I: PROJECT PROPOSAL

PART I: SITUATION ANALYSIS 1_1. Country context Bosnia and Herzegovina (BiH) is suffering its most severe economic and social crisis since the end of the 1992-95 war. Prolonged political deadlock coupled with complex constitutional arrangements have resulted in a series of enduring socioeconomic issues, from poor legislation and corruption, to low investment, a negative growth in GDP and painfully high levels of unemployment. All this is reflected in a worsening social situation, including growing poverty and inequalities between regions and social groups.

The unemployment rate, according to the International Labour Organization (ILO), stood at 27.5% for 2013, while official government figures placed it at 44.5%. Rates for vulnerable groups, such as young people, are even higher (63.1%). Every sixth household in the country is poor. With a human development index value of 0.735, BiH ranks 81 out of 187 countries. Regrettably, there is limited progress in finding compromise on necessary reforms, in cl uding those required for the integration of BiH into the European Union (EU).

Encouraging progress however, is being made at the local level. In the country's institutional context, local development provides a more responsive framework for quick-wins in the short and medium term. In other words, despite many challenges facing local governments in BiH, the relative directness and simplicity of the situation within a municipality means that some challenges can be addressed more efficiently and effectively at the local level.

1.2. Tourism development The tourism sector in BiH has been one of the few bright spots on the country's economic radar. It has recorded positive trends in all major growth indicators over the past ten years, with still considerable room for further utilisation of its unquestionable potential. With its natural wealth, rich cultural heritage and history, favorable geographic location, internationally known events, unique gastronomic offers, and its status as a still unknown tourism destination for major markets, BiH has all pre-determinants for an extremely successful tourism industry story. According to official statistics, in 2013 over 30,000 people were employed directly in the tourism sector and it provided at least 5% of the overall GDP of the country. The World Tourism Organization defines BiH as one of only three tourism destinations in the world with overall tourism market growth potential in excess of 10% annually through 2020'. The Travel & Tourism Competitiveness Index 2013 ranks BiH 90 out of 140 countries.'

However encouraging, the tourism industry's performance remains far below potential, due to a variety of challenges such as the lack of a strong development policy for the tourism sector, underdevelopment and inadequate management of many tourism sites, lack of international standards and certifications in the tourism sector, insufficiently developed tourism infrastructure and accommodation facilities, weak institutional and business connections within the sector and with other auxiliary sectors, and a still-difficult global image of BiH that has not been addressed by an effective country branding and marketing campaign.

1.3. The Via Dinarica concept The Via Dinarica is a mega trail with three main trails (White, Green, and Blue) that stretches across the western from Slovenia to Albania. The Via Dinarica is a platform that serves to promote and develop local communities and small businesses active on a local, national, and international level in the field of hospitality, service and tourism, as well as agriculture and cultural heritage. Its purpose is to connect the countries and communities of the by creating a unique and diversified tourist offer. The Via Dinarica promotes tourism for the purpose of the sustainable economic development of the region, while preserving the environment and respecting the sociocultural diversity and authenticity of local communities.

1 Travel and Tourism Economic Impact 2012, Bosnia and Herzegovina, World Travel and Tourism Council.

1 TraveJ& Tourism Competitiveness Report 2013, http://reports.weforum,org/travel-and-tourism-competitiveness-rep0r1-2013/#=. 9 Grant No. : AID- 168-IO-I S-OOOO I Via Dinarica: A Platform for Sustainabl e Tourism Developm ent

LEGENI[)-- --, N N N

The goal of Via Dinarica is to make connections between cities and rural communities in the region, raise awareness on good business pra ctices and environmental protection, create a tourist offer which is based on its unique natural beauties, traditional products and cultural heritage, as well as to link stakeholders in the region for the purpose of jump starting sustainable economic development.

The White Trail is the main trail along the entire length of the Via Dinarica that follows the natural flow of the highest peaks of the Dinaric Alps. The White Trail includes all of the highest peaks in each respective country. Although there are a plethora of activities along this head trail, such as mountain biking and rafting, its main function is as a hiking trail.

The Blue Trail veers towards the coastline and the crystal clear waters of the . The mountains may be smaller in this part but no less attractive and challenging. It includes some of the best coastal and hinterland hiking in Europe and is always accompanied by the fresh smell of medicinal herbs and the breeze of the Mediterranean. Sea kayaking and other water sports are an integral part of the Blue Trail.

The Green Trail is exactly that: a green carpet of conifer forests that meander through some of the lower mountains of the Dinaric Alps. The Green Trail is made for two-wheeled trail bla ze rs with hundreds of kilometers of well-maintained bike trails that encompass Serbia, BiH, and Croatia with the largest portion of the trail located in BiH. Hiking and walking, coupled with the rich wildlife of this eastern front, make it a great option for soft adventure and provide the potential to open up this lesser known corner of BiH to a wider tourism market.

The Via Dinarica holds the potential to become a world-class hiking and outdoor adventure trail, providing opportunities for integrated tourism development and livelihoods. The rich diversity of cultural, historical, and natural assets along the White and Green Trails is a pre-requisite for the development of integrated tourism, which can translate into sustainable livelihoods for the surrounding communities. The highlights of the cultural, natural and historical features of the White and Green Trail of the Via Dinarica in BiH, which serve as "gravitating points" for tourism development, are:

10 Grant No.: AID-168-IO- I 5-0000 I Via Dinarica: A Pla!fonn for Sustainable Tourism D('.vc]opment Highlights of Via Dinarica White Trail (in BiH): 1. Trnovacko Lake - National Park (NP); 2. Mountain Maglio Peak - 2,386 m - BiH's highest peak; 3. Perueica Primeval Forest - one of Europe's last remaining old growth forests; 4. Battle of Sutjeska monument - Tjentiste World War II Battle Monument; 5. Zelengora Lakes (4) - Sutjeska NP Lake system; 6. Mala Caba - Treskavica - 2,086 m - highest peak of Treskavica; 7. Umoljani Mosque - Oldest highland mosque in BiH; 8. Watermills - functional watermills in Umoljani Village; 9. Studeni Potok -serpentine stream through Studeni Fields; 10. - most unexplored canyon in Southeast Europe; 11. - traditional medieval village; 12. River Canyon - White water rafting canyon and fly fishing haven; 13. Zelena Glava - mountain Prenfs highest peak; 14. Tisovica Valley - Prenj - picturesque hiking valley in the high alpine meadows of Prenj; 15. Cetina and Izgorjela gruda - Prenj -vistas and rock faces for climbing on Prenj; 16. Diva Grabovica - (vrsnica Mountain - protected valley on (vrsnica Mountain; 17. Veliki Kuk - Tise scenic viewpoint - Largest rockface on Balkan peninsula; 18. Hajducka vrata - natural limestone formation of stone window; 19. Vilinac Ridge - attractive hiking ridge on evrsnica's highlands; 20. - isolated Nature Park with skiing, lakes, biking trails, and medieval necropolis; 21. Masna Luka Monastery - Franciscan Monastery in covered forest, open to public; 22. Krug wild horses - - country's largest population of wild horses; 23. Livna old city and fortress - cultural heritage Site along trail; 24. Troglav Mountain - mountain border between Croatia and BiH, as well as highest peak of Mountain; 25. Livanjsko Polje - RAMSAR site -large migratory bird populations.

Green Trail Highlights (in BiH): 1. Bridge on the - Visegrad; 2. Borike Horse Farm - Rogatica; 3. Mountain - Novak's Cave; 4. Waterfall- Sarajevo; 5. Bijambare Caves - llijas; 6. Zvijezda and Perun Mountains - Vares (landslide affected area); 7. Medieval Fortress - Va res (landslide affected area); 8. Franciscan Monastery - Kraljeva Sutjeska; 9. Tajan Nature Park - /ZavidoviCi (flood affected area); 10. Zeljezno Polje (flood affected area); 11. Vlasic': Mountain Slopes; 12. medieval city; 13. Canyon - Rafting; 14. Sipovo - fly fishing and medieval fortress of Sokol; 15. Zelenkovac eeo center; 16. Kljuc - fly fishing; 17. Grmeca Mountain; 18. National Park; 19. Strbacki Buk waterfalls; 20. Kozara NP (artery).

1.4. Main challenges with regard to tourism development along the Via Dinarica trails A thorough needs assessment of the Via Dinarica White Trail has been conducted during the pilot project phase in 2013. It offers future pathways toward the development of the Via D',narica corridor and provides concrete recommendations for short-term actions. The assessment serves as the project benchmark

11 Grant No.: AIll-168-JO-15-0000 J Via Dinarica: A Piatt(wll for Sll~tainablc Tourism Development platforrn but also identifies rnany of the rnain challenges and needs related to the further developrnent of the Via Dinarica Trail in BiH and transforms thern into actions under this project.

A rnajority of territories along the Via Dinarica Trails are relatively underdeveloped rnountainous areas, with Iirnited livelihood opportunities and sorne lirnited tourisrn infrastructure in place. Although rnost of the paths on the Via Dinarica White Trail are rnarked and rnaintained, signage frorn inhabited places and roads are required and new trails need to be established, so as to fully exploit its tourisrn potential. A thorough assessrnent, inventory rnapping and identification of the Green and Blue Trails is necessary before undertaking further actions on tourisrn developrnent along these lines. These steps need to take into consideration the devastating effect of the May 2014 floods, particularly within sorne localities along the Green Trail, and address irnportant security and safety aspects, such as landslides, landrnines, etc. Moreover, cornrnunities along the Via Dinarica trails will have to be inforrned about how to participate in the decision rnaking processes as well as to which developrnental and econornic benefits the Via Dinarica can bring to their region.

In general, the tourisrn accornrnodation facilities and infrastructure along the Via Dinarica is insufficiently developed and varies in terms of coverage, quality, and accessibility. These challenges apply to both mountain huts/lodges and privately-owned bed and breakfasts (B&Bs)/guesthouses along the Via Dinarica. Subsequently, underdeveloped accomrnodation facilities minirnize tourism-related private sector activity and inhibit the expansion of tourism offers, and the possibilities for extended stays, which create rnore overnights and generate rnore incorne across a wide basis.

Another irnportant segrnent of the tourisrn chain is related to local tourism service providers. Such organizations are unevenly "distributed" along the Via Dinarica Trails in BiH and the portfolio of services on offer and tourisrn packages rernain lirnited. While there are nurnerous local outdoor clubs and hiking organizations, many of their capacities are generally lirnited. There are very few cornpanies/organisations providing "advanced" or specialized niche services, such as canyoning, caving, or winter activities. This gap needs to be filled in order to expand and rnodernize the tourisrn offer throughout the Via Dinarica.

Different procedures relevant to the countries and their regulations that are required for crossing mouintain borders arnongst the Dinaric Arc countries represent an additional challenge for Via Dlnarica. CrOSSing rnountain borders between Albania, Kosovo, Montenegro, and BiH, outside of official border crossing checkpoints is possible with prior approval frorn relevant authorities. Procedure normally requires that relevant applications are subrnitted two weeks in advance for special approval to be issued to hikers or tourists. Crossing borders between BiH, Croatia, and Slovenia outside of official border check points is not allowed due to EU border crossing regulations. Upon Croatia's entrance into the Schengen agreernent, border crossing between Croatia and Slovenia, outside of official border check points, will be allowed.

CrOSSing borders between BiH and Croatia is allowed only at the official border crOSSing points: for the White Trail, Karnensko and Strurnica border crossings should be used, while for the Green Trail it should be Izati':' However, hiking along/within the border area on Dinara is cornman and no problerns have ever been reported. The Dinara section can be undertaken frorn both Croatian and BiH side.

The visa regirne depends on the nationality of hikers/tourists. Once it is obtained, the border crossing procedures are the same for all. Inforrnation on procedures are provided on relevant web pages, usually of country tourisrn offices. The perrnission will be requested by the project to publish the procedures at the Via Dlnarica web-site and to provide links to relevant sites.

Another challenge is the environrnental rnanagement of the Via Dinarica area. By developing the VD as as a sustainable tourisrn product, we increase the irnportance of the environment to the livelihoods of the local cornrnunities, therefore generating awareness and stewardship among local people.

One of the greatest challenges, however, is to generate and increase the interest and confidence of local stakeholders. There is a need to partner local "charnpions" from the public, private and non-governmental sectors in eco-tourism developrnent thus encourage cornmunity-based sustainable development practices.

12 Grant No.: AID-J68-IO-J5-0000J Via Dinarica: A Plalform for Sustainable Tourism Development The Via Dinarica in BiH needs to offer quality content and services, which would in turn increase the number of tourists and theretore stimulate economic growth. Moreover, cooperation and networking among all relevant stakeholders along Via Dinarica needs to be encouraged and gradually steered towards sustainable tourism development partnerships comprising public, private and civic sectors. In parallel, significant and continued efforts are necessary to expand visibility and promote the potentials of the Via Dinarica both within BiH, as well as internationally.

The floods that affected BiH in May 2014 had a devastating effect and caused massive flooding in northern, eastern and central parts of the country. From the beginning of the disasterous floods, UNDP has been proactively mobilizing institutional, as well as individual resources to help in coping with the emerging situation in the field of mine action. Within five days after the floods, UNDP developed a mine map overlaying the flooded areas, including the landslides. This was a joint product of UNDP's mine action scouts and local and regional Bosnia and Herzegovina Mine Action Center (BHMAC) offices. As a support to BHMAC, UNDP has undertaken Mine Risk Education projects through which an urgent education of local communities related to the changed situation in the field of mine action (destroyed markings, movement of mines and landslides that occurred in the mine suspected areas) will be undertaken. In addition, UNDP has engaged two companies to assist with the mine and UXO clearance in the aftermath of the disaster.

Green Trail: Some parts of the Green Trail Area have been affected by the floods. It is possible that some landslides occurred in the minefields in that area. When the potential risk areas are identified, a mine risk assessment will be requested and, if the risk is confirmed, GPS coordinates will be provided to the relevant UNDP Human Security and Justice Sector so that they can, in close cooperation with BHMAC, expropriate the information from the mine maps on the parts of the Trail that are endangered. This information will then be posted onto the Via Dinarica website. As a rule of thumb, no new trails will be established or marked until an official mine risk assessment report is obtained from BHMAC.

White Trail: The issue of landmines on the White trail has been addressed in the above mentioned Via Dinarica Assessment Report developed under the Walking the Via Dinarica Project (2013-2014) as follows: "Some marked mountain trails on Treskavica, Prenj and Sator Mountains are close to mine-risk areas. Despite that fact, those mountains are among the most popular for locals and international hikers. It is obvious that the mountains are visited by tourists and therefore represent the tourism potential of BiH, so clearance/risk-release priority for those areas should be changed. Although the trails are safe and no accidents/incidents have been recorded so far, this requires special attention and an action plan should be developed to decrease the risk for hikers. In addition, the Via Dinarica website should be updated and provide travelers with detailed information on the level of mine risk in each of the sections along the trail."

In regards to the above said, the recommendations are: In cooperation with BHMAC install information boards about landmine risk areas at Ruiste, the village of Bijela, municipality (at the trail head, next to the sawmill) and in erni Lug, Bosansko Grahovo municipality; Request a mine-risk survey of the mountain trails on Treskavica, Prenj and Sator, as well as for suspected areas of mountains in the Northeastern belt (Green line) and adequate permanent marking of actual suspected areas from relevant authorities; and Update and add to the Via Dinarica website detailed descriptions of mine risk levels for each section of the trail.

In general, the land mine problem on the proposed White trail is limited and quite well known, while suspected areas are not in the proximity of the trail. Exception is the section of Treskavica where adequate detours will be provided.

1.5. Transferable best practices and lessons learned from global experiences Considering other trail models, such as the Via Alpina and the Appalachian Trail in the United States of America (USA) the Via Dinarica obviously has considerable comparative advantages to succeed as a mega-trial. It has a vast range of unique characteristics that span over seven countries and include Europe's deepest river canyon (), the world's most bio-diverse cave (Vjetrenica in BiH), one of Europe's last primeval forests

13 Gran! \lo.: A 1[)~ 16g~!()~ 15~OOOO I Via Dinarica: A Plalf(mn for Sustainable Tourism Development (Perucica in BiH), all highlighted by the last swath of true European wilderness. Hikers and other adventure travelers are always in search of new destinations. They seek new places and prefer less tourist-infested areas. The Via Dinarica is a natural extension of the Via Alpina to the south and it opens a completely new world of mountain nature features and more variety in culture and historical heritage for the European market.

On the other hand, BiH and other countries of the Via Dinarica have a long tradition of hiking. In a Facebook poll targeted to the regional hiking and outdoor enthusiast community in 2014, 82% of those polled confirmed their awareness of the existence of Via Dinarica, while in a series of interviews during the Via Dinarica pilot activity, interviewees considered Via Dinarica an interesting and attractive opportunity that they would be willing to invest time and resources into.

The Via Dinarica concept at this stage has more similarities with the Appalachian Trail with regards to infrastructure and does not require huge investments to make the Trail functional and viable. Most of the paths on the White trail of Via Dinarica already exist or once existed, and there are reasonably good shelters and accommodation facilities along the trail, with some needing upgrades or improvements. We estimate on average that on each second day of hiking anywhere along the trail, it is possible - with minimal investment - to secure warm showers and good food, which is not the standard on the Appalachian Trail and which was strongly expressed as desirable by hikers in the 2007 evaluation of the Via Alpina project'.

Via Dinarica is also easily accessible through several international airports (Sarajevo, , Tival, Zagreb, Split, and Podgorica) and there is a good road network leading to entry-points along the trail. Also, combining hiking with other outdoor and cultural activities seem to be more convenient and easier to undertake in comparison with both Via Alpina and the Appalachian Trail. This synergy of the cultural and natural heritage and the close vicinity of these attractions from each other make Via Dinarica a unique and attractive trail for a wide range of potential visitors.

1.6. Previous project phase This project builds on previous efforts implemented by USAID and UNDP, as well as other actors in BiH. Specifically, it expands the achievements of the Walking the Via Dinarica pilot activity supported by USAID, the Government of Japan and the UNDP during the period August 2013 - April 2014. Its main objective was to map, brand and promote the Via Dinarica Trail stretching across the Western Balkans, from Albania to Slovenia. The project set the foundation for further development of the Via Dinarica concept in BiH into an integrated and attractive tourism product, offering livelihood opportunities to relevant communities.

The most notable results include: • More than 500 kilometres of trails walked in 62 days; • Over 70 different communities located along the trail visited; • More than 200 unstructured and semi-structured interviews conducted with local businesses, NGOs, clubs, organizations, individual households, and local and foreign tourists to obtain inputs on local and individual needs for improving the tourist experience along the trails; • More than 50 accommodation facilities (mountain shelters, B&Bs, youth hostels) visited and assessed; • Trails through 18 protected areas (12 of which national parks) mapped; • Safety and security needs of mountain rescue activities determined based on feedback from 12 rnountain rescue teams; • Local economic development potentials and needs identified through structured discussion with more than 12 outdoor tour operators; • Information on certification/needs of guides obtained through interviews with members of 8 mountain guide stations/clubs; • An assessment report was drafted to inform future activities; • A website (www.viadinarica.com). a Facebook page' and brochures were created to promote the Via Dinarica;

,'\ International Summary Evaluation Report on the Viil Alpina, Summer 2007, Evaluation Campaign, WW.iL'{@.2.'ll.tli.£lB.&l1~. 4 Via Dinarica Facebook page: lltll?~jI't.{ti~}[email protected]'{.iAmm~tlr&",\;;QL~.(lll.(Jj!!gNatiJBillylJLfiL:1~. 14 Grant No.: ;\11)-168-10-15-00001 Via Dinuriea: A Platform for Sustainable Tourism Dcvclormcn1 • Bloggers and journalists from around the region were engaged in the walk to promote tourism along the Via Dinarica.

1.7. Other relevant interventions in the sector There are many previous relevant tourism development projects, whose good practices and lessons learnt will be utilised and expanded by this intervention. The most relevant among these is the Walking the Via Dinarica project, supported jointly by the USAID, the Government of Japan, and the UNDP. Another important intervention is the EU-funded cross-border-cooperation initiative - Sustainable Tourism Development and Natural Environment Protection in Northern Montenegro and Southern BiH implemented during the period 2010 . 2013. The EU also supported 6 projects that formed designated eco-zones and heritage trails in protected areas that coincide with the territories of the Via Dinarica trail.

In addition, relevant initiatives are the USAID/SIDA's Fostering Interventions for Rapid Market Advancement (FIRMA) and Fostering Agriculture Markets Activity (FARMA) projects, which, among other areas, focused on tourism and agriculture development. This project also considers the successful approaches and results achieved under the Community Reconciliation through Poverty Ileduction project funded by the Human Security Trust Fund and implemented by UNESCO and UNDP from 2007 to 2009. The project focused on community reconciliation in South-eastern Herzegovina through a multidimensional approach to poverty reduction and worked with relevant government counterparts to support mine clearance, waste management, income generation in highly potential tourism industry, as well as restoration of cultural heritage sites. Moreover, the World Wide Fund's Dinaric Arc project supported partnering among protected areas and strengthened the management capacity of national parks.

There are also several local initiatives, which closely relate to the project such as the Photo & Film Festival in Kresevo organized by the Bltovnja mountain association, where Via Dinarica is an official competition category; the Map of Prenj Mountain with latest updates to be published by the Borasnica mountain association and the "Planet" non-governmental organisation; the hiking trail Or. Java Elcic, which includes trail marking with Via Dinarica signage and a trail guidebook implemented by the Treskavica mountain association in Trnovo RS.

PART II: STRATEGY

2.1. Strategic orient;;tion

2.1.1. Project rationale The pilot Via Dinarica project achieved sound results in each partiCipating country and exceeded all expectations in terms of promotion and creating an identity for the Via Dinarica in BiH. For this reason, it is vital to maintain the momentum and enthusiasm gained in the pilot phase, so that the Via Dinarica concept becomes a platform for sustainable development of the region. The pilot project has also shown that more comprehensive interventions and support are required in order to upgrade the existing resources and expand outdoor tourism activities and livelihoods. This is especially relevant for the portion of the Via Dinarica in BiH, as the relevant territories lack suffiCiently developed tourism services, accommodation facilities, and conditions for outdoor activities along the trails. Particularly important are rural areas and flood-affected localities, which will be the focus of this project. Consequently, building on the accumulated experiences and momentum reached within the pilot project phase, the follow-up project envisages expanding its scope to a multi-action intervention encompassing not only mapping of all trails within Via Dinarica, but also improvement of tourist facilities and services along the trails. This will be accomplished partly by bringing in support from a broad set of public, private, and civic stakeholders, thus paving the way for a sustainable tourism product offering livelihood opportunities.

The activities of both USAID and UNDP in BiH have been and are designed to improve livelihoods and promote reconciliation in post-conflict areas by tackling unemployment, poverty, and social exclusion. It is widely agreed that without addressing economic stagnation at a local level, the lack of a future vision for income generation and job creation, political, and economic stability will be difficult to achieve. UNDP and USAID's interventions in this region have been designed specifically to take this fact into consideration.

15 Granl No.: A/D-168-IO-15-00001 Via Dinarica: A PI:Jtform for Sustainable fourism Development Therefore, this project will seek to further develop the Via Dinarica concept as a mechanism connecting cultura!, historical, and natural resources ,,-·vith opportunities for secure livelihoods and community-owned integrated local development practices, supported by relevant institutions at local and higher government levels. The project will also focus on the transformation of the Via Dinarica Green Trail into a sustainable tourism destination, by addressing in an integrated manner the negative consequences of the recent floods, creating a tourist offer which relies on its unique natural and cultural heritage, and unlocking economic growth possibilities for local communities and small businesses along the Trail.

2.1.2. Relevance to the country needs and coherence with policv frameworks The Via Dinarica project comes to contribute to the implementation of the Strategy for Tourism Development of the Federation of Bosnia and Herzegovina 2008 - 2018', and the Tourism Development 6 Strategy of the Republic of Srpska 2010 - 2020 . Moreover, it is consistent with the draft Country Strategy Paper 2014 - 2017, which sets out the priorities for financial assistance by the EU to support the country on its path to accession, among which is local development, local economic growth, and competitiveness.

2.1.3. Torget groups The direct beneficiaries of the project include: • Approximately 30 small businesses/entrepreneurs along the Via Dinarica Trails (producers of local traditional products, small··scale agricultural producers, different categories of accommodation providers, tour operators, nature-based services providers, etc.). The project will ensure that at least 40% of supported small bUSinesses/new employment will be women-led. • Approximately 50 civil society organisations along the Via Dinarica Trails (business associations, rescue services, sport "recreation" and outdoor activities' clubs; mountaineers aSSOciations, mountain biking associations, environment protection organisations, local development agencies, youth organizations, women's associations, and eco-tourism organizations). Special focus will be placed on engaging women's and youth organisations in project delivery.

The indirect beneficiaries of the project include: • Over 30 local governments and their communities (with a population outreach to approximately 750,000 people); • 12 national parks, 10 nature parks/monuments, protected landscapes; and • More than 500 businesses operating in a broader area along the Trails and main urban areas.

2.1.4. Geographical coverage Target territories in BiH are local governments and their communities situated in the areas of the White, Green and Blue Trails. The final selection of local governments to be involved in the project will depend on the establishment of the trail paths. However, it is possible to specify the majority of municipalities/cities, based on the general territorial path of the Via Dinarica Trails in BiH:

"'-'_"-_"'_--""_-----_.-. - '--,----"---'" '.~,.--, Foca, Kalinovik, Gacko, Trnovo (FBiHJ, Trnovo (RS), Sarajevo, Konjic, Jablanica, , Posusje, , Prozor-, Livno. White Trail area: vart..·.ants and art.eries: Sarajevo, HadZiCi, Kresevo, Gornji Vakuf, Bugojno Istocni ~ , Kupres, and ~Iue r;:an-area~' .. 'Caplji~;:-NeUm;Ra~r;O:-Trebj;;je, Ljubuski, and G;ude .... --~------..... -. ---B;;;;jaL~ka, Ba no vic i, Bi hac, Ce;;tarsaraje~o~-Ha;;PiTesak-:-iiijas, Is toEni-StarT--' ,I _Green... Trail area: Grad, Jajce, Kakanj, Kladanj, Kljue, Kotor Varos, na Uni, Maglaj, Olovo, i Pale, Prijedor, Hogatica, Hudo, Sanski Most, Sokolac, Srebrenica, Stari Grad a L_. ____ .__ • __ ~ .. ____.. _,'_,_. b ra jev.

5 Ref ere nee; bJ1P. ;/{"!!.Y/YMJJ r a Ic xt.(i m.,iQ!J, () mJ\i_Q_rj5.ttil.!ilgU (J%20r:.?'~~QJ.9 %2 Otu r iz ma %2 OF BI H%2 0;> 008-}.O 12.0Zgll.9.Q~ Lp9J.

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2.2.1.§ool. QjlJpUtS and duraUon The project is designed with the overall objective to contribute to the reduction of economic, social ,and regional disparities in 6iH through affirmation of the Via Dinarica as a regional tourism destination and increased competitiveness of nature-based tourism. The project will expand on the achievements of the Walking the Via Dinorico pilot initiative under this project titled "Via Dinarica - a Platform for Sustainable Tourism Development and Local Economic Growth".

The project aim is to further forge the process of establishing the Via Dinarica corridor as a community­ owned and operated tourism product that provides sustainable livelihoods for a broad range of stakeholders. This will be achieved by realizing four specific objectives, as follows: 1. To assess and chart all Via Dinarica Trails in BiH; 2. To improve tourism infrastructure and strengthen capacities of tourism service providers along the Via Dinarica White and Green Trails; 3, To promote, market, and strengthen the identity of the Via Dinarka in BiH within the country and internationally; 4. To facilitate establishment of partnership networks and cooperation among relevant stakeholders along the Via Dinarica Trails in BiH, and with higher government authorities.

The duration of the project will be three years (July 2014 - July 2017) and it will be implemented using a "1+1+1 principle", whereby the activities implemented in the three-year period will be functionally interlinked and form a logical sequence towards achievement of a comprehensive goal.

2.2.2. Proiect comQQnenle The principal project components, corresponding to the specific objectives, are as follows:

Component 1. Assess and chart all Via Dinarica Trails in BiH In order to develop Via Dinarica as a tourism product, further systematic research of its potential and tourism resource inventory will be conducted, particularly related to the Green and Blue Trails. Such research will be undertaken by direct assessment in the field through walking, GPS marking, visiting main attractions along the trails and coordinating with service providers in each respective area, as well as through desk assessment of all available information. Ultimately, this component will ensure that all Via Dinarica Trails in BiH are mapped and marked, including approximately 300 km of newly-marked trails on the Green and Blue Trails. Efforts will result in a comprehensive resource inventory of the Via Dinarica in BiH and over 500 kilometres of marked trails with GPS coordinates.

Component 2. Tourism infrastructure improvement and support to tourism service providers The Via Dinarica trail is a long distance hiking trail across the Dinaric Alps that follows natural geographic features such as mountain ridges, mountain plateaus, or river valleys in the shortest and most logical way with the aim of providing an axle that connects the most attractive and significant sights of the Dinarica Alps. It is established by connecting existing hiking trails, local paths and forest and/or local roads where necessary. Besides the main trail, there are also many variants (trails which detour from the main trail in order to satisfy preferences of tourists) and arteries (trails connecting points of interest), which all together form the Via Dinarica trail network.

Excluding variants and arteries, the Via Dinarica White Trail in BiH is more than 380 km in length. The White Trail has 8 sections and at least 25 subsections, in other words - there are at least eight points where the trail crosses communities, and where B&B and other services need to be offered, and 25 points where other lodging (mountain huts or shelters) are used for overnight stays.

Green Trail infrastructure improvements and support to tourism service providers will be provided in both years 1 and 2. In year 1 there will be a rapid recovery intervention intended to assist tourism service providers that lost or had damaged their dual capacity equipment (DeE) during the floods and subsequent landslides. These support interventions, as well as the Green Trail assessment and mapping will focus,

17 Grant No.: AID· 168-10-15-0000 1 Via Dinarica: A Platform f()r Sustainable Tourism Devc]()pmenl among other localities, on some of the flood-affected areas along the Green Trail, such as Banja luka, Kljuc, Maglaj, Olovo, Prijedor, Sanski Most, Va res, Vlasenica, ZavidoviCi, , and Zepce. It is envisaged that approximately 40% of the project time for year 1 will be allocated to the Green Trail and specifically -- to the flood-affected territories within the Trail.

In year 2 we will follow the same model as the White Trail, with year 1 assessments being the basis for interventions on the Green Trail as well as training seminars that will help identify champions and open competitive calls for service providers to access grant funds for expanding and improving their tourism offers.

In order to increase the attractiveness and contribute to quality tourism services along the Via Dinarica, this component will provide support to improvement of tourism infrastructure (hiking and biking trails, outdoor camping facilities, etc.), accommodation facilities (mountain huts, B&Bs) and assist tourism service providers to diversify the tourism packages on offer and strengthen their organizational and management capacities. These actions will be focused particularly on the White and Green Trails. The main target groups under this component are mountain associations, small businesses (owners of B&lls/guesthouses), tourism organizations, and tour operators along the Via Dinarica White and Green Trails. Activities under this component are designed to ultimately contribute to an increase of the number of beds within tourist accommodation facilities along the Via Dinarica Trails with at least 60, while in parallel stimulate an increase of the number of tourist overnight stays in these facilities with at least 10% annually. Moreover, it is expected that the project component will contribute to an average of 1% annual growth of employed in tourism industry within target areas, where at least 40% of those are women.

Component 3. Promotion, marketing} and visibility The promotion and visibility of the Via Dinarica Trail is vital to its success and sustainability. The project will deploy a wide range of promotion and visibility tools, so as to expand the attractiveness and popularity of the Via Dinarica destination within the country, as well as across borders. The promotion strategy will utilize media, publications, web-sites, internationally recognised travel guide editions, blogs and social media as its main tools.

The key over-arching target groups under this component are: i) international eeo-tour operators, looking for new and exciting products to promote and sell to their client base; ii) international independent travellers; iii) local/regional hikers; and iv) local urban dwellers. Each of the promotional activities will be geared towards these specific target groups and will address their interests and needs accordingly. As a result of the actions under this component, continual, high profile media coverage at international and regional levels will be ensured to promote the concept of the Via Dinarica Trail and all its unique characteristics and tourism possibilities.

Component 4. Partnerships, networks and outreach This project component will reinforce the overall project strategy by facilitating a wide range of partnerships and networking among local communities, local governments) civil society organisations, private sector representatives, higher government !evels' institutions, and media.

The project will facilitate the establishment and effective functioning of trail-based networks bringing together all relevant stakeholders in a partnership mechanism enabling exchange of ideas, experiences, practices and joint action. Therefore, all actions under this component will be characterized by a participatory and community-driven approach, thus ensuring ownership and sustainability of results. Such networking events will also foster community-based tourism development and raise interest among a wider group of stakeholders to engage in tourism-related activities within relevant communities. Moreover, the project will encourage engagement of relevant policy-makers in the networking and discussion activities, thus increaSingly raising the interest to and support from higher government levels' institutions for the broader success and sustainability of the Via Dinarica concept. local governments will also be important partners and the project will seek to motivate their support and contribution to the Via Dinarica concept, as well as foster inter-municipal partnerships for sustainable tourism development and livelihoods.

18 Grant No:. ;\ JJ)- I 68-10- 10-0000 I Via Dinarica: A Platform for Sustainable Tourism Development Within this component, the project will also initiate the establishment nf the Via Dinarica Coordination Group, which wil! comprise of representatives from civil society organisations, local governmenls, and private sector representatives selected on a participatory manner by the Via Dinarica Networks. The Coordination Group will serve as the Via Dinarica focal paint for BiH and will actively engage in networking with other partners in neighbouring countries and continuously work on after-project support to the further development of the Via Dinarica product.

2.3. Project activities and results

Component 1: Assess and chart all Via Dinarica Trails in BiH

Activity 1.1 Assessing the Green Trail, completing the White Trail assessment, and defining the Via Dinarica as a wholesale tourism product The Green Trail follows the lower mountains of the Dinaric Alps and includes hundreds of kilometers of hiking, walking and well maintained bike trails. Green areas of conifer forests coupled with the rich wildlife of the eastern front represent a great option for soft adventure and even outdoor family tourism. Walking, biking and rafting the length of the Green Trail will help define more clearly path(s), so that future tourists can chose from the many diversified tourist offers of the Via Dinarica and enjoy the beauty of the region. Whilst the phYSical act of walking the trail will elevate the Green Trail from "concept to reality", the mapping, resource inventory and rapid assessment will be of vital importance for further developing the Dinaric Arc area into an international tourism destination with the standards to meet those aspirations.

The entire length of the Green Trail, which is more than 500 km long, will be marked by GPS coordinates, including main paths and main arteries. An inventory of all resources, ranging from accommodation, villages, scenic view points, restaurants, service providers, etc, will be recorded in a MS Excel database, as well as an assessment of trail conciitions and accommodation along tilose trails, safety conditions and any relevant aspects. The needs along the trail will be identified and relevant recommendation for improvement of services will be developed. All sections of the Green Trail in BiH will be marked with standard mountain trail markings, Via Dinarica signage at crossroads and key trail heads, and Via Dinarica info boards throughout the country.

There are several gaps of unmarked trails and territories on the western slopes of Vran and in the further western directions towards the border with Croatia. These areas will be assessed as to accessibility and trail conditions and will be a priority (see 2.1.1) in the trail marking of the White Trail.

The Via Dinarica as a mega trail still needs to be defined as a tourism product in terms of the main activities possible in each respective section, the groups and markets that will be targeted for these various activities, and the approach to developing these areas taking into account resources, know-how and local capacities. The end aim of making the Via Dinarica an operational trail by the end of year 3 is a realistic goal if these key issues are defined and addressed.

Activity 1.1. deliverables and results: • At least 50% (250 km) of the entire Green Trail in BiH is assessed and marked (by GPS and with signage), and at least 100 accommodation facilities, services and points of interest are recorded within a database by the end of project year 1; • By the end of the project year 3 the entire length of the Green Trails in BiH is walked and assessed, while data on tourist assets, accommodation and points of interest is collected and recorded; • Approximately 100 kilometers of new trails will be marked by the end of year 1 on the Whilte Trail; • By the end of the project year 1, resources, walking trails, outdoor activity offers and other services combined in tour packages along the Via Dinarica White Trail. • By the end of the project 3, resources, walking trails, outdoor activity offers and other services combined in tour packages along the Via Dinarica Green Trail.

19 (iran! No.: AID-168-IO-15-00001 Via Dinarica: A Platform for Swaainab!e Tourism Developillent Activity 1.2 Assess and define the Blue Trail By the project year 3, the White and Green Trails, which are both longest within BiH's part of the Via Dinarica mega trail, will be well-defined and operational. The Blue Trail, which consists largely of coastal areas in Montenegro and Croatia, also weaves through the hinterland and small coastal territory of the country. In year 3 the project will assess the Blue Trail access points in the key inland areas around Dubrovnik, namely in , Ravno, and Neum, as well as the West Herzegovina region, including Capljina, Ljubuski and Grude. It is estimated that the Blue Trail will have at least 100 km of hiking and biking trails.

The Blue Trail in BiH will be assessed through hiking and mountain biking activities that will be recorded by GPS coordinates, including main paths and arteries that link back into the main trail in Montenegro and Croatia. A comprehensive resource inventory will also be conducted, including accommodation, villages, scenic view points, feature attractions, restaurants, service providers, etc, that will be recorded in a database, as well as an assessment of trail conditions and accommodation along the Trail, safety conditions and any relevant aspects, The assessment will result in a set of relevant recommendation for improvement of services and linkages to the larger Blue Trail potential in cross-border countries.

Activity 1.2. deliverables and results: • The entire (100 km) of the Blue Trail in BiH is assesses and marked (by GPS and with signage), and at least 50 accommodation facilities, services and points of interest are recorded within a database by the end of project year 3.

Component 2: Tourism infrastructure improvement and support to tourism service providers

Activity 2.1 Tourism infrastructure impravement Within this activity, the needs of both the White and Green Trails will be in focus with regard to improvement of mountain accommodation facilities, marking and placing touristic signage, and improving the B&B offer and overall accommodation capacity along key localities within the Via Dinarica. Improvement of tourist infrastructure and accommodation will enable mountain associations, nature parks! eeo-tour operators and other service providers to fully utilize the potential of the Via Dinarica Trail, while at the same time create better livelihood opportunities for communities. Investments in tourism infrastructure and accommodation within this activity will be closely synergised with other on-going interventions supporting recovery of public and business infrastructure and facilities in flood-affected areas (particularly for the Green Trail), and with other tourism-related programmes in BiH.

The main purpose of this activity is to secure minimal support to hikers and tourists along the White and Green Trails by providing: • Clear marking and signage on the main trails; • Decent standard shelter after one day of hiking; • Possibility to have better standard accommodation (with warm shower) and re-supply on at least every third day of hiking; and • Information regarding trails, accommodation and services along the Via Dinarica.

Therefore, this activity will offer support in three main segments: ensure the basic trail marking and signage along the White and Green Trails; improve mountain huts at critical connecting paints along the White and Green Trails, and establish/improve of B&Bs along both Trails. Providing minimal functionality requirements along both Trails will enable their follow-up marketing, promotion, and inclusion in the regional and international tourism offer. Grant-schemes envisaged under this activity will be managed and delivered as per the general operational framework of the UNDP. In these occasions, co-finanCing will be requested from grant-scheme beneficiaries. As comprehensive visibility and promotion represent strong aspect of the project, the UNDP Communications Unit will manage and coordinate all related aspects of the project implementation.

20 Granl No.: AJJ)~168-10-1~H)OOO! Via Dinarica: A Platform fur Suslainablt' Tourism Development Sub-activity 2.1.1. Trail marking The accessibility, visibility and maintenance of the White and Green Trails will be supported by trail marking, improvement of access roads, marking of landslide and land· mine areas, information boards and signs highlighting nature/cultural/historicaljarchaeological sites, restaurants, tourist accommodations and tourist destinations. These efforts will be realised in partnership with local governments, considering that marking along the trail cuts througll municipal property land.

Most of the trails along the White Trail are already used by hikers and other tourists, and in majority of cases - marked and maintained mainly by local mountaineering clubs or associations. However, only trails on attractive and popular mountains are well maintained, while lower parts and connections between the mountains and local villages are less maintained, or not marked at all, probably because they are too obvious (well known) or less attractive to local hikers. Marking those connections is important to provide all, and particularly foreign hikers and tourists, with possibility to explore the Via Dinarica trail, as well as other points of interest within local communities on their own. Also, it has been recommended by local stakeholders and the pilot project team leader to establish three or four new stretches along the White Trail, in orderto connect neighboring trail sections and utilize the full potential of the Via Dinarica.

It is estimated that it will be required to mark approximately 100 kilometers along the White Trail, which includes: • Breaking in new trails in the sections of Prenj-Cvrsnica-Vran (up to 30 km); • Marking first sections and the trails in the communities of Kalinovik, Trnovo, Konjic, Prozor-Rama and Suica (up to 30 km); • Marking trailheads, important trail crossings, and paints of interest with Via Dinarica signage; • Improving and renewing old markings destroyed by logging or forest fires and/or marking the main arteries to the cities of Mostar and/or Sarajevo, and to smaller destinations, such as Foea, Konjic, Siroki Ilrijeg, and Livno.

Green Trail marking will include earmarking certain areas for hiking and others for mountain biking. Due to the nature of the terrain there will be many areas where both activities can share similar infrastructure (trails and roads). For this reason trail marking, particularly at key intersections are vital for ease of passage and the safety of tourists. At least 40 info boards will be posted on the Green Trail in year two as well as systemic trail marking that will include up to 400 km on the Green Trail.

All marking will be conducted in cooperation with the local mountaineering association responsible for the trails in the particular area, in accordance with the standards of the national association, and as per the international guidelines and best practices. The procedures for specific Via Dinarica trail signage are provided in the Annex 2 of this project document. The inception and preparation period for this activity will take up to one month.

Sub-activity 2.1.1. deliverables and results: • By the end of the project year 1, the remaining unmarked part of the White Trail (100 km) marked and signage-placed as per the standard Via Dinarica signage. • By the end of the project year 3, the entire length of the Green Trail (400 km) marked and signage­ placed as per the standard Via Dinarica signage.

Sub-activity 2.1.2. Mountain hut improvements MaLinta in accommodation is key to the sustainability of the Via Dinarica concept. This sub"uctivity will contribute to ensuring minimal support to hikers along the White and Green Trails by providing a decent standard shelter after one day of hiking and possibility to have better standard accommodation (with warm shower) and re-supply on at least every third day of hiking. In addition, the focus is on improving infrastructure on the most attractive section of both the White and Green Trails - Prenj and (vrsnica mountains. Green Trail mountain huts will be identified and selected based on the assessment phase in year 1.

21 Grant No.: '\lD-168·IO-IS-OOOO I Via Dinarica; A Platform for Sustainable TOllrlsrfl Ikvcloprnenl Small-scale reparations of mountain huts to be supported under the project include (but are not limited to): kitchen refurbishment, alternative energy sources (i.e. solar panels); improving toilet facilities, roof repairs, energy efficient windows, floor repairs, bedding, etc. The assistance will be provided in a form of a small grant (up to USD 8,500) to the relevant selected mountain clubs along the Via Dinarica Trails. 10% co­ funding will be ensured by each grant beneficiary.

(urrently the White Trail in BiH (without variants) has eight sections and at least 25 subsections, in other words - there are at least five points where trail crosses communities where B&Bs and other services should be offered and 25 paints where other lodging, mountain huts or shelters are used for overnight stay. The localities, where the project will support improvement of mountain huts along the White Trail are the Prenj­ (vrsnica-Vran sections, as this part of the trail was singled out by the "Outside" committee when selecting the Via Dinarica as "The Best New Trail for 2014". According to the White Trail Assessment conducted during the pilot phase, both and 8jelasnica have sufficient accommodation capacities for hikers (including family restaurants and 8&8s on the Southern slopes along the Via Dinarica Trail). With regard to the Treskavica segment, marking of suspected landmine areas will be a priority, while accommodation should be sought in local communities around the mountain.

Below is a list of mountain huts/shelters along the White Trail of the Via Dinarica in BiH, which may be supported via the project: 1. Jezerce Mountain Hut, Prenj (rebuilt by activists of Natura 2000); 2. Lucine hunter's hut (shelter), Prenj (destroyed); 3. Glogovo hunter's hut, Prenj; 4. Zlijeb hut, (vrsnica; 5, Tise hut, Cvrsnica; 6. Piasa mountain hut, (vrsnica; 7. ViHnac mountain hut, Cvrsnica; 8. Masna Luka, mountain lodge, Blidinje; 9. Plocno, shelter, (vrsnica; 10. 81idinje Nature Park - lBD.

The Green Trail mountain huts will be determined through the assessment and evaluation phase in year 1. Mountain huts and shelters in BiH are traditionally maintained by local mountaineering and hunters clubs. This practice is common for many European countries and the USA, and should be continued here as well. However, management plans and funding strategies of the local mountaineering clubs need to be improved, and that is part of the training package designed for those organizations within sub-activity 2.4.1. Support to improvement of mountain huts will be provided as follows: during the first project year, assistance for improvement of these assets will be focused on the White Trail only, while during the second and third project years support will be focused on the Green Trail. This action will ultimately ensure mountain accommodation of relatively good standards with adequate bed capacities within the most popular, attractive and challenging sections of both the White and Green Via Dinarica Trail'.

Sub-activity 2.1.2. deliverables and results: • 8y the end of the project year 1, at least 5 mountain huts improved or rebuild on the Via Dinarica White Trail and offer at least 40 beds as accommodation capacity in total. • By the end of year 3, at least 15 mountain huts improved or rebuild on the Via Dinarica Green Trail and offer at least 40 beds as accommodation capacity in total.

Sub-activity 2.13. Bed & Breakfast (smaii grant scheme) Assistance to improvement of at least 20 B&Bs!guesthouse facilities (privately owned) will be provided, as means for income generation within target areas, and as assets for the development of the tourist destinations along Via Dinarica White and Green Trails.

7 The exceptions on the White Trail will be Treskavica area, Western side of Wan, Ljubusa Mountain and foothills of Prenj and Lvrsnica. 22 Gralll No.: AID-168-10-1S-0000 I Via Dinarica: A Plalionn for Su:'.tainable Tourism Development The assistance will be provided under a grant-scheme, where eligible beneficiaries will be owners of B&Bs along the priority locations identified as critical connecting points within both the White and Green Trails. The scheme will provide 5 B&B grants in the first project year in key rural locations along the White Trail; 10 grants in year 2 on the Green Trail, and another 5 in the project year 3 in areas that the project team identifies as gaps in the trail accommodation system. Each grant will be approximately USD 4,000.

The B&Bs/guesthouses will be supported to operate in accordance witll national quality standards and legal framework, while assistance will help improve accommodation facilities, kitchen and food premises, sanitation facilities, and will help their owners to better manage and promote the accommodation facility, and integrate it within the local/regional tourist offer. Particular attention in this regard will be given to women-led and youth as owners of guesthouses. At least 75% of the B&B grants will be awarded to these vulnerable populations. Grant beneficiaries will be expected to co-fund (cost-share) the provided financial support by at least 10%.

The grant scheme will be awarded according to UNDP grant and procurement procedures and will be facilitated by the implementing agents of the project. Each improved B&B accommodation will be integrated into the overall promotion and marketing strategy, mainly through the www.viadinarica.com website, tour operators, and social media.

Sub-activity 2.1.3. deliverables and results: • By the end of the project year 1, at least 5 B&Bs established/improved on crucial locations along the Via Dinarica White Trail (out of which at least 3 are women-led businesses) and offer at least 15 beds as accommodation capacity in total. • By the end of the project year 3, at least 15 B&Bs established on the Via Dinarica Green Trail (out of which at least 10 are women-led businesses) and offer at least 45 beds as accommodation capacity in total. • By the end of the project year 3, the improved B&Bs are included in the regional tourism offer of tour operators.

Activity 2.2 Support to recovery and improvement oj tourism-related services in flood affected areas The devastating floods of May 2014 were an unforeseen factor in the development of the second phase of the Via Dinarica Trail in BiH. Although the White Trail went largely untouched by the floods and landslides, the Green Trail was heavily affected by these traumatic events. It is estimated that 250,000 people had their homes damaged or destroyed in over 20 local governments and that the nature catastrophe affected more than one million people, which is over a quarter of the total population of BiH. What the Via Dinarica project aims to achieve in affected communities along the proposed Green Trail is to contribute to turning this natural disaster into a narrative of hope and recovery.

Many tourism service providers along the Green Trail were first responders to the life-saving stage of the disaster. Some of them lost vital dual capacity equipment in the rescue efforts that will hinder their ability to provide tourism services and, as a secondary function, provide rescue services in the event of disaster or accident. Therefore, in order to restore basic capacity of tourism service providers along the Green Trail, the project will offer small-scale financial support (up to USD $7,000/beneficia.y) for purchase of equipment and goods necessary for provision of tourism services in a safe and reliable manner. This support will be provided to select 4 - 5 target beneficiaries along the Green Trail immediately after the project kick off. The main selection criteria will include: i) tourism service providers established and functioning along the Green Trail of the Via Dinarica, which equipment and assets were damaged by the recent floods in May 2014; and in parallel ii) those tourism service providers with tourism services portfolio of importance to the broader Via Dinarica Green Trail route tourist offer.

The restoration of basic water supply and sanitation services in flood affected area was relatively quick. However, northern parts of the country are still facing problems with potable water due to tile fact that piping system and wells have been heavily flooded and contaminated. Private wells are a major problem, wh',ch still need to be cleaned and re-tested or in some areas equipped with filters, either for bacteriological or for chemical and bacteriological contamination removal. One of the effective solutions to be provided to the

23 Grant No.: AID-168-10-15-0000 I Via Dinarica: A Platform for Sustainable Tourism Developmenl people living in these areas is portable filtration systems that are easy to use both for household purposes and for livestock. One filter purifies contaminated water from bacteriological contamination thus providing 100 people with clean water for up to 5 years. In addition to the support to flood affected areas in BiH, this activity will support the discussions of trans-boundary water management as it pertains to disaster prevention. This will include engaging stakeholders in the sustainable development of the River Basin to promote economic opportunities, enhance wetlands conservation, and ensure that policies are established to mitigate flood disaster.

Activity 2.2. deliverables and results: • Within the first 6 months of the project implementation, at least 4 tourism service providers from 4 flood-affected areas along the Green Trail assisted to recover their basic equipment and assets for service delivery and resume regular activities; and • At least 450 filters distributed to people living in flood affected areas. • Engage stakeholders in discussions to promote sustainable development of the Sava River Basin.

Activity 2.3 Support' to improvement of tourism offer and services (small grants) This activity will place efforts to strengthen capacity of tourist service providers (primarily civil society organisations and tourist small businesses in the area of mountain tourism, eco-tourism, adventure tourism, cultural organisations, etc.) along the White and Green Trails, so as to strengthen and diversify the tourist offer and increase attractiveness of localities based on indigenous tourism activities.

The project will support the design and affirmation of new tourism products (such as adventure/cultural/hiking tours; fly-fishing, caving and rafting tours; equipment upgrades for tourist service delivery and outdoor tourism; transport services; specific touristic eqUipment shops; etc.) offered by these target groups along the White and Green Trails based on the unique resources and potential of the relevant localities. The activity intends to target at least 5 service providers per year in all three years of the project.

The small-scale grant-scheme will be organised on a competitive basis each project year, where at least 5 best proposals by tourism service providers will be supported per annual cycle of the Call for Proposals. Each Call for Proposals will have clearly defined selection criteria, eligible applicants and territories (municipalities), specific requirements for types of tourism services to be supported, evaluation methodology and transparency rules. The newly-developed/improved tourism services as result from the grant scheme support will be further promoted as integral part of the Via Dinarica touristic offer and linked with other tourism accommodation facilities, and cultural assets along the trails. Particular attention will be given to supporting young people's initiatives and innovative tourism products and services of youth organisations.

Activity 2.3. results: • By the project year 3, at least 15 tourism packages (outdoor/adventure packages, regional tours, information services) developed and offer safe and diversified tourism services along the White and Green Trails of Via Dinarica, with at least 50% of the recipients being youth.

Activity 2.4 Capacity development of relevant stakeholders along the Via Dinarica Trails This activity will address some main capacity gaps of relevant tourism-related stakeholders along the Via Dinarica Trail in BiH. Actions under this activity will directly and immediately reinforce all investment activities (support to mountain and B&Bs accommodation facilities, and creation of new tourism packages from activities 2.1, 2.2. and 2.3.) through capacity development of beneficiaries under the above-listed areas. Thus, the overall SllStainability of the assistance will be strengthened. Capacity development will be offered via training programmes, interactive workshops, technical support and advice to the following main target groups: mountain associations/clubs; B&Bs owners, eco-tour operators and service providers operating along the White and Green Trails.

Sub-activity 2.4.1 Capacity development of mountain associations While newly-established organizations and small businesses normally adapt well to current business practices and manage to advance in accordance to international norms and trends, mountaineering

24 Grant No.: AlD-16R-IO- I 5-0000 I Via Dinarica: A Plat1;mn for Sustainable '!'ourism Dcvdopmcn! associations in general are struggling to manage their existing resources. This is mainly due to inheritance of practices where the state was responsible for financing infrastructure maintenance and development while, at the same time, the associations did not have any responsibilities towards the state, such as paying the rent for club's premises. However, mountaineering associations, regardless of their institutional membership or registration level, still have a clear mandate and responsibility for providing accommodation in mountainous areas, tra1l infrastructure maintenance and development, training on all levels and managing or coordinating mountain rescue teams.

Therefore, building management and organizational capacities within mountaineering associations who will be recipients of assistance for infrastructure improvements of mountain huts, is an essential step towards the development of hiking tourism in BiH and its longer-term sustainability. The project will deliver systematic training assistance to representatives of mountaineering aSSOciations/clubs along the Via Dinarica Trails. The capacity development support to be offered to the target group will include the following themes: 1. Management and administration of non-profit organizations in BiH; 2. Marketing, P&R and fund raising activities of mountain associations; 3. Project proposal writing; 4. International cooperation and good practices; 5. Developing business models for the organization (restructuring membership and licensing schemes; developing training/tour packages; managing mountain huts; expanding range of products and services required to generate income for the organizations).

Considering the findings and recommendations of the assessment conducted during the Via Dinarica pilot initiative, mountaineering associations in BiH with adequate management and good business strategy need to become an important factor in the tourism industry of the country, employing directly or seasonally a number of staff and providing services to business and local communities. The training will be delivered via 2 training programmes to at least 20 participants each project year. The delivery of the training programme will be done by relevant and quality BiH organisation/company/experts selected on a competitive basis.

Activity 2.4.1. deliverables and results: • By the end of the project year 1, organizational and project management capacity of at least 20 representatives of mountain associations and dubs, rescue teams and guide associations located along the White Trail strengthened; • By the end of the project year 3, organisational and project management capacity of at least 20 associations, clubs, rescue teams and guide associations located along the Via Dinarica Green Trail strengthened.

Sub-activity 2.4.2 Capacity development of B&Bs owners/associations The B&B owners benefiting from financial support under the project will be also able to improve their performance and profitability through the capacity development assistance. A comprehensive and practical 4-day training programme will be developed and delivered each year to at least 18 small business owners (B&Bs, guesthouses). It will cover a range of topics, including management, marketing, customers' services, basic BiH and EU standards for rural accommodation facilities, environmental stewardship - renewable energies, recycling, composting, etc., best business practices on linking with tour operators and other service providers. The aim of the training is to enable predominantly rural populations along the Via Dinarica White and Green Trails to provide quality accommodation services that take into account the social, economic and environmental impact of their activities. The design and delivery of the training prograrnme will be provided by relevant and quality BiH organisation/company selected on a competitive basis.

Activity 2.4.2. results: • By the end of the project, business management and customers' service capacity of at least 50 B&B owners/associations located along the Via Dinarica White and Green Trails strengthened.

25 nran( No.: AID- 16S-IO-IS··OOOO I Via Dinaricn: A Platform for Sustainable Tourism DCVl'lopmenl Sub-activity 2.4.3. Coaching and capacity development for eeo-tour operators and tourism service providers There are many established tour operators providing a wide range of services along the Via Dinarica Trails. Some of the private companies or organizations operate as in~country tour operators for larger international partners (such as the "Exodus", the "Mountain Travel Sobek", etc.)' while others provide secondary services to local tour operators. The main target groups for this action will be representatives of eco-tour operators and tourism service providers along both Trails of Via Dinarica.

Capacity development of those stakeholders envisages an international expert from the "Explorandes" (http:/LI'iWW,"!5,QJGr!l!ldes.comL)' voted the world's best eco-tour operator by the international eco-tourism association based out of the USA. This Peru-based operation, run by entrepreneur Franco Negri, has seen its business increase threefold over the past decade. This is largely due to the diversification of the "Explorande'''s offer (now used by others throughout the Peruvian Andes), and learning how to adapt to a complex and challenging business environment. Very often consultants and/or trainers are brought to BiH to pass on know-how but often without grasping the complexities of doing business in a country struggling with poor infrastructure, corruption, bureaucratic obstructions, lack of legal framework, and not a clear image or brand as a destination.

Having in mind similarities of the country context in which the "Explorandes" are operating, as well as their unique success and trend··setting experiences in green tour operation and service delivery, a representative will be invited for a lO-day visit in BiH. During the visit, the "Explorandes" representative will travel with a selection of local tour operators active on the Via Dinarica Trails to assess their current offer and activities and work individually with each organization to provide personal advice and training on activities that could be added to expand business and generate more income. Moreover, the "Explorandes'''s representative will bring an extensive network of international partners (over 20 from 12 different countries) and share knowledge on how to identify, approach and communicate with international partners that could be interested in adding the Via Dinarica Trails in BiH to their program. In addition, the "Explorandes'''s representative will help local operators learn more about affordable and effective marketing tools available through social media, but also in international membership, forming clusters to share resources, and tapping into the very active world of outdoor adventure tourism through non-conventional means. Capacity development and interaction with target participants will be done in an interactive and practical manner, via one-off coaching, practical joint workshops enabling exchange of best practices and lessons learnt to at least 20 speCialised tour operator companies/organizations in the fields of hiking, rafting, mountain biking working along the Via Dinarica. This action is planned during the project year 1.

Sub-activity 2.4.3. deliverables: • By the end of the project year 1, best practices and know-how from a world leading eco-tour operator will be shared with at least 20 eeo-tour operators and tourism service providers located along the Via Dinarica White and Green Trails and their management and service delivery capacity - strengthened.

Component 3: Promotion, marketing, and visibility

Activity 3.1 Publications and promotion materials A set of specifically targeted publications will be created that will focus on both the general and niche aspects of the Via Dinarica Trails and the service providers along it. The publications that will be produced to promote the Via Dinarica will utilize the previously established visual identity for the Trail, and will build on the professional and top quality promotional material created to date. The publications will be made in English and local languages (Bosnian/Croatian/Serbian) and are planned for preparation and distribution throughout the project life. The main publications envisaged are the following: • Promotional catalogue rlVia Dinarica in BiH"; a promotional materia! to be used for promotion of Trails by tour operators, travel fairs, hotels and other promotional hubs (1000 copies in English language and 1,000 in local languages published each project year). • Promotional Catalogue "Via Dinarica": This publication will be used to promote the vision, resources, and products of the entire Via Dinarica Trail stretching across 7 countries. The target group for this publication will be tourism associations, private businesses, tour operators at tourism 26 Grunt No.: A.lD~ 168~1()~ 15"0000 i Via Dinaric-a: A Plat!~)J"fn for Sustainable Tourism Developmenl fairs, and for international partners. 1000 copies in English language and 1,000 in local languages will be printed and disseminated each project year. • The "Bradt Travel Guide to Via Dinarica" (4,000 copies to be purchased and distributed to European and North~America mountain associations, tour operators, niche tourism fairs, and to local service providers. This publication will be produced by an international travel guide company based in london, United Kingdom. The "Bradt's" distribution channels reach five continents and will target audiences in Nortl1 America, South America, Europe, Australia and Asia. The travel guide, complete with text, photos, maps, listings for over 500 private sector businesses and 100 organizations providing tourism services. • Niche publications: the publications (brochures) will focus on presenting and promoting some of the niche products identified and developed along the Via Dinarica Trails, such as fly fishing, hiking; caving, biking and rafting (including map sets and GPS points). The brochures will be printed in both English and local languages.

Activity 3.1. results: • By the end of the project year 3, at least 5,000 thematic brochures promoting at least 5 specific tourism niche products along the White and Green Trails are printed and widely disseminated in BiH and abroad.

Activity 3.2 Social Media, Website, and Blogging promotions This activity is intended to help clarify means of creating and distributing the message of the Via Dinarica (and in particular this project) to the various target markets throughout the entire duration of the project. Its aim is to provide clear direction on social media management and the need for continual and creative dissemination of information as the project progresses.

There are several goals and objectives for doing so: i) to stir interest in the region about the concept and the potential of the Via Dinarica; ii) to encourage friends, diaspora and stakeholders to share this information through their own respective networks; iii) to court local and foreign markets of the great outdoor adventure offers of the wider region which, in turn, aims to stimulate business and economic growth; iv) to adequately address the many target groups via social media tools, such as blogs on Via Dinarica website including photo galleries, blogs on AI Jazeera Balkans website and blogs on international blogger sites (niche - adventure, fly fishing, caving, hiking, mountain biking).

At least six journalists/bloggers/travel writers will join each mapping expedition in several increments throughout the journey. Each journalist shall blog about the specific part of the trip, while the materials prepared by each of them will be used for the development of the comprehensive Via Dinarica weblog that will be maintained by the implementation team. Both international and regional journalists/bloggers will participate in comprehensive tours on specific parts of tl,e Via Dinarica.

The idea is twofold: a) the bloggers will be shown and experience a unique perspective of the Dinaric region's cultural and natural heritage along the Via Dinarica corridor, including natural attractions, adventure tourism offer, accommodations facilities, travel services, gastronomical offer, etc. b) the materials developed by them containing their experience will be shared with publishers in their respective countries/regions.

Selection of journalists/bloggers will be based on: 1. Their access to multiple markets (youth, mainstream, backpacker, culture, music, women, etc). 2. Possibility to write for multiple sites (all selected journalists should regularly write for 3+ sites/publications) . 3. Their communication skills and tourism knowledge (being that the journalists are being filmed as well their ability to have quality and comfortable conversation on camera will be also taken into consideration). 4. Their availability (possibility for the short notice mobilization). 5. High rate of their collective audience/readership should be over 1,500,000.

27 Cimllt No.: AID-168-IO·15-00001 Via Dinarica: A Platform for Sustainable Tourism Development Activity 3.2. results: • At least 20 blogs per year will be posted on Via Dinarica official website and spread through social media channels with the aim of reaching up to 2,500 readers per post. • To have a following/membership on social media pages (facebook) with over 10,000 followers. • To have a yearly outreach of 30,000 visits on webblogs posted on official VD page.

Activity 3.3 Familiarization (FAM) and Press trips Promotion of the Via Dinarica will be reinforced by the organisation of FAM (familiarization trips for tour operators) and Press Trips. The idea is to clearly identify specific and/or niche market opportunities based on trends, statistics, and volume of specific markets. The first two years will focus on European markets with significant eco-tourism market share and reasonable access to BiH.

New trends in the European tourism movement see less and less people participating in long haul trips but rather enjoying more frequent and nearer destinations. Many travellers are looking to travel by either car or budget airlines. In relation to that, the project will first bring targeted tour operators from their respective countries and fields, and do a follow-up Press Trip that will provide marketing and promotion support for the tour operators that are considering adding Bili to their program, as well as will attract independent travellers from these respective regions. Approximately 2 FAM and Press trips will be organised each year throughout the project implementation, targeting specific country markets as follows: • Year 1: Germany - Germany represents the largest eeo-tourism market, one of Europe's largest youth and mountaineer sectors. The eountry has very active travellers who often prefer to travel by car. This gives BiH a comparative advantage due to the close proximity to Germany and its vast marketing opportunities that have yet to be tapped. o Year 2: Scandinavia - According to official BiH Tourism Statistics, the number of tourists from these countries continues to rise at an average annual rate of 5%. The number of direct flights from Stockholm, Copenhagen and Goteberg is growing and so are the marketing opportunities, coupled with the buying power of the Scandinavian market. o Year 3: USA - Although the USA market has been less accessible for BiH, the potential for adventure travellers to embark on "The Best New Trail" that covers a multitude of countries in a relatively little known region of Europe for many USA citizens is quite feasible. Most Americans prefer to cover several countries when doing long haul travel and try to fit in as many stops in as many countries as they can. The segmented sections of the Via Dinarica provide an ideal opportunity for organized and independent travellers to get a taste of both the natural and cultural heritage of 2 - 7 countries.

Activity 3.3. deliverables and results: • By the end of the project year 3, at least 3 FAM trips will be organized for at least 15 international tour operators that will result in 5 of them adding VD BiH to their official program. • By the end of year 3, at least 3 Press Trips will be organized for at least 15 international media outlets from European countries and the USA.

Component 4: Partnerships, network and outreach

Activity 4.1 Community-based tourism partnerships, Via Dinarico Networks and Via Dinorica Coordination Group This activity entails bringing together various stakeholders on specific segments of the Via Dinarica Trails in an informal manner to exchange ideas, know-how and resources in order to maximize the benefits of the Via Dinarica product. In order to promote transparency, ensure community-based participation, and encourage business~to-busjness exchanges, the project will organize facilitate a wide variety of partnerships, networks and joint initiatives among various stakeholders along the Via Dinarica Trails.

The project will facilitate the establishment of 2 trail-based networks - the "White Trail" Network and the "Green Trail" Network, which bring together all relevant stakeholders in a partnership mechanism, enabling exchange of ideas, experiences. practices and joint action. Network meetings will be organised at least once a year, while the Via Dinarica website will be utilised for sharing of information, exchange of practices, 28 Grant No.: I\ID- I (g-IO- I 5-(1(100 I Via i)inurica: A Platform for Sustainable Tourism Development partnership-building, etc. Each network will comprise at least 50 representatives of local governments, tour operators, civil society organisations and other interested stakeholders along the Via Dinarica Trails.

In addition, the project will also facilitate community-based meetings along the Via Dinarica Trails, where local stakeholders will be encouraged to discuss and agree on joint actions, and form partnerships related to tourism development within the locality. Such gatherings will seek engagement of local governments, tourism organisations, tour operators and small businesses within localities along the Via Dinarica Trails. At least 8 community-based meetings will be organised throughout the project implementation, aiming at fostering partnerships, jOint decision-making and "clustering" around the potentials created by tourism development. Within this component, the project will also initiate the establishment of the Via Dinarica Coordination Group, which will comprise representatives from civil society organisations, local governments, and private sector representatives elected on a participatory manner by the Via Dinarica Networks. The Coordination Group will serve as the Via Dinarica focal pOint for BiH and will actively engage in networking with other partners in neighbouring countries and continuously work on after-project support to the further development of the Via Dinarica product. It is envisaged that the Via Dinarica Coordination Group will be established in the last year of project implementation.

Activity 4.1. deliverables and results: • By the end of the project year 1, the White Trail Network is established as a participatory network bringing together at least 50 public, private and civic stakeholders, and it continues to function throughout the project life. • By the end of the project year 2, the Green Trail Network is established as a participatory network bringing together at least 50 public, private and civic stakeholders, and it continues to function throughout the project life. • By the end of the project year 3, at least 8 discussion events are organised along the Via Dinarica Trails and enable formation of community-based partnerships for connecting public, private and civic resources for sustainable tourism development.

Activity 4.2 Via Dinarica conference Being that the Via Dinarica is a mega trail that covers 7 countries and several thousand kilometres of trails, it is important that cross-border cooperation and communication become an integral part of its development and promotion. The added value of bringing private sector, non-governmental organisations, and public sector stakeholders to discuss cooperation, deVelopment, business to business, and sharing knowledge and resources is vital to the sustainability and, in the end, for the attractiveness of the Via Dinarica concept as a tourism product.

A Via Dinarica conference, with stakeholders from each of the countries involved in the first pilot project Walking the Via Dinarica will be invited to a 2-day conference in BiH to share ideas, knowledge and business contacts, and to sign a memorandum of understanding between the countries to continue to work towards common goals established in the conference meetings. This activity will take place in the beginning of year 2.

Activity 4.2. deliverables and results: • By the end of the project year 2, an international Via Dinarica promotional conference organized for 50 representatives of all 7 countries participating in the mega trail, where joint vision and joint action plan for steps ahead are agreed upon, and broader cross-country promotion of the Via Dinarica tourism destination is ensured,

2.4. Project approach

2.4.1. Methodological approoch The project implementation strategy is characterized by several methodological approaches. While tailored support will be provided to each of the Via Dinarica Trails, there will be an overarching coherent approach to developing the Via Dinarica in Bili as an integrated concept and tourism product. Trail-based type of 29 Grallt No.: AJD-168-IO-15-00001 Via Dinarit.'a: A Pl;l\f'orln for Sustainable Tourism Dcvc!opmcnl support and scope of work will be "cascaded" from the White Trail to the Green and Blue Trails in a whole­ sale manner, while adapted to the specific context, resources and circumstances of each territory. The project recognizes that the Via Dinarica BiH is an integral segment of the mega Via Dinarica Trail and therefore sees this particular intervention as a building block for follow-up broad-scale initiatives, where consistency and cooperation with other participating countries and their networks is essential.

Another methodological project feature is the combining of all investment support with tailored training and technical assistance to target beneficiaries, thus contributing not only to improved human and organizational capacity along the Via Dinarica Trails, but also to the overall sustainability of infrastructure investments, Moreover, the project insists to connect tourism resources and services with livelihood opportunities within target communities. Horizontal and vertical (cross-governmental) partnerships among various public, private and civic stakeholders are also an underlying methodological project feature. The overall internal logic and interlinkage between project components is displayed within Annex 3.

The walking and biking travels, along the specific trails in the Via Dinarica countries will be undertaken by the specialized walking and biking teams, with the most of the time spent in and focus placed on Bosnia and Herzegovina. During their journeys the core teams might be joined by representatives of local authorities, NGOs or private sector representatives that are active in promoting and implementation of outdoor and eeo-tourism activities and are the best reference to identjfy and present the most valuable resources in their respective areas. Also, cooperation and/or partnership will be established with some organizations that have respectable position and vast experience in some outdoor activities, as wei! as wide network of partners and unique membership in their organizations.

The project recognises that long-term, sustainable development will only be possible when women and men enjoy equal opportunity to rise to their potential. The notion of gender equality has been considered in the process of project design, as well as mainstreamed within its activities. The project monitoring framework is gender-sensitive and envisages sex-disaggregated data collection for all relevant indicators. The project will encourage equal participation of women in capacity development, tourism services, partnerships and network initiatives, thus empowering leadership of local initiatives by women.

2.4.2. Visibility Visibility, media-presence and public information sharing of project activities and achievements will be ensured on a regular basis. This will not only inform and educate the broader audience on various aspects related to local development, but will also positively build the project's identity country-wide and beyond.

Within component 3, series of promotional materials and publications (catalogues, travel guides, photo exhibitions, videos, etc.) wi/I reinforce the branding strategy for the Via Dinarica trail. Social media tools, as well as blogs and web-s ite will be further supported to expand visibility and promote the tourist destination. In addition, several FAM and Press Trips for various target groups will be organized within the Via Dinarica trail, so as to facilitate direct experiencing of the different forms of recreation and newly-developed integrated tourism services and destinations along the Via Dinarica Trail, linked to local natural heritage, indigenous products, innovative services, etc. Visibility activities will aim to access to multlple markets (youth, mainstream, backpacker, culture, music, women, etc). In this way, the activity gains attention and promotion at international, regional and local level.

All project products, events, promotion materials and publications will duly respect visibility requirements and standards olthe USAID and the UNDP.

2.4.3. Ownership and sustainability The project is responsive to the cultural and socia-economic context of the country, while considering the particularities of target localities and communities and applying a human-centred approach to development, which is most likely to ensure sustainability of outcomes. The local ownership of the Via Dinarica Trail and of the communities interested in its further maintenance and development is vital to its sustainability. By providing the product, tools, marketing and know-how to bring Via Dinarica destination to

30 Grant No.: AID-168-IO-I'\-(JOOOI Via Dinarica: A P!atfnnn for Sustainahle Tourism Development functional level, local stakeholders will have every reason to maintain and nurture the Trail and the resources the tourism offers are based on.

Services and jobs supported under this joint programme at this stage of development should not be understood as if tourism is to become the main source of income for the population within target localities. At this stage, development of integrated tourism alongside the Via Dinarica will provide an additional source of income for the local population and contribute to the strengthening of commodity-money relations in the region.

The activities related to the improvement of socia-economic conditions of communities through their inclusion in income generating activities are designed in a way to ensure the delivery of self-sustainable results: the combination of capacity-building and direct financial assistance is expected to allow for the sustainable growth of local business activities. Sustainability with this regard will be measured with % of tourism-related employed (against total employment) in target areas and the % of increase in the household income of direct project beneficiaries.

The programme does not include any activity having a potential negative impact on environmental sustainability. On the contrary, the support offered to the safeguarding of cultural and natural heritage will also contribute to the reduction of environmental risks associated to their deterioration and longer-term environmental sustainability.

2.5. Synergy with other on-going relevant interventions UNDP intends to work in close coordination with a number of relevant ongoing or planned interventions to ensure complementarities and synergetic effects. Specifically, the project will coordinate its efforts with the Integrated Local Development Project (lLOP, 2008 - 2016), a joint initiative of the Swiss Agency for Development and Cooperation and UNDP, aiming to advance and systematise local development planning in BiH, to harmonise the country's strategic planning system, and to enhance the capacity of local governments to manage development processes.

Another relevant ongoing intervention is the Vrbas River Bosin Environment and Tourism Development Project (2012 - 2014), funded by the Government of Japan and Coca-Cola Company and implemented by the UNDP. It focuses on improving environmental protection, awareness and knowledge, increasing utilization of touristic and development potentials of the vrbas river basin, as well as on strengthening local governance, relevant policy frameworks and capacities.

Synergies will be explored also with the USAID!Sida Growtll Oriented Local Development (GOLD, 2013 - 2018) project, which aims to assist local communities to achieve their economic growth and development goals. The project promotes integrated and inclusive local economic development planning and implementation, helps unlock the economic potential of municipal assets and promote new investments, engages stakeholders to improve public service delivery and business enabling environments reforms, as well as promotes new direct investments and supporting competitive supply chains that will create new jobs.

This project will also be closely synergised with the flood-recovery programme to be implemented by the UNOP during the period July 2014 - July 2015, particularly with regard to investments and suppol1 to local governments and communities along the Via Dinarica Green Trail.

2.6. Risk analysis and mitigation proposals The main external risks for the implementation of the project are related to political deadlocks, which slow down development processes and affect the pace of socio-economic development in BiH. Social unrest and growing citizen dissatisfaction with governments and the socio-economic situation are other potential risks. In addressing these, UNDP will closely monitor the political situation and apply an early-warning approach to short-term planning and delivery.

31 (iran! No.: AID-168-IO-I)-OOOOI Via Dinarica: A Platform ftw Sustainable Tourism Developmellt In terms of cultural sensitivity, it will be necessary to antiCipate and identify some of the risks associated with the different stages of the project implementation. Further, it would also be helpful to anticipate how different sectors of the communities and society may react to the intervention and innovative business practices and solutions to integrated culture and tourism development. In particular, it would be imperative to be aware of the possibility of a conservative backlash from within the community to engage pro-actively in tourismHre!ated income~generatjng activities.

While political changes, natural, and man-made disasters can impact upon project outputs, it is assumed that UNDP will place focus on early identification of potential risks and the design of adequate mitigation measures,

PART III: MANt\G~I\!1.ENT ARRANGEMENTS The project will be implemented by UNDP in BiH in cooperation with the BiH Ministry of Foreign Trade and Economic Relations, relevant entity ministries, local governments, and relevant civil society organisations, UNDP will assume full responsibility and accountability for the overall project management, including monitoring and evaluation of project interventions, achieving of project outputs and specified results, and the efficient and effective use of resources.

Project organizational structure

Project Board

User Executive Supplier

BiH MOnER UNDP USAID Representatives of entity UNDP ministries

" .. to', ~.J;- Advisory Board Project Members of the Assurance J Project ----, , Via Dinarica ociate : ______~ Manag ment .. Project Ass I r .' ... ' __ '.' .. .:t. Project Assistant Communications Micro-capital grant - Officer agreement p artner (MeGA) -_.__ .

Project Board The Project Board is the group responsible for making, by consensus, man

32 ()n-ml No.: ;\!D~16X~!O~15~OOOOJ Via Din,nica: A Platform for Sustainable Tourism Development

Once the partnership between USAID and UNDP on this project is formalised, UNDP will endorse consultations with relevant national counterparts, so as to inform them about this initiative, and seek their support and engagement in the project implementation.

The preliminary Project Board structure is as follows: Chair of the Project Board: UNDP Deputy Resident Representative or UNDP senior programme officer; USAID Agreement Officers Representative (AOR); Designated representatives of the BiH Ministry of Foreign Trade and External Relations, the Ministry of Environment and Tourism of the Federation of Bosnia and Herzegovina; the Ministry of Trade and Tourism of Republika Srpska; participating local governments.

Project Assurance The project assurance role supports the Project Board by carrying out objective and independent project oversight and monitoring functions. This role ensures appropriate project management milestones are managed and completed. Project Assurance has to be independent of the Project Manager. The role of Project Assurance will be performed by the UNDP Rural and Regional Development Sector Leader.

Project Advisory Board The Project Advisory Board is a consultative body that comprises representatives of the Via Dinarica networks and practitioners and its purpose will be to support, consult, and advise the project in the course of its implementation, helping to better strategise project-related interventions and serving as a broader strategic planning discussion platform. The Project Advisory Board will enable main project partners and if needed - other specific stakeholders, to join, discuss and offer recommendations to the project in particular themes. This mechanism will also ensure more informal cooperation and interaction between all Via Dinarica stakeholders, as well as will assist the ownership-building endeavours of the project. The Project Advisory Board might be invited to the regular sessions of the Project Board, if some particular relevant topics are to be discussed.

Project Management and Project Team The Project Manager will run the project on a day-la-day basis on behalf of the UNDP BiH. The Project Manager will have the responsibility to ensure that the project produces the required results that are capable of achieving the benefits defined in this document.

The project will also have a core team of 1 Project Associate (providing full-time financial, procurement, recruitment and analytical support), 1 Project Assistant (offering administrative, logistical and translation support) and 1 Communication Officer (media, visibility, communication strategy).

In order to reinforce project results, UNDP will utilise the unique expertise and relevant knowledge of the Terra Dinarica organisation, whose aim is to promote and protect the natural and cultural heritage of the entire region of the Dinaric Alps. Terra Dinarico is the only organisation in BiH focusing its work explicitly on the sustainable development of the Via Dinarica concept within the country and internationally. The interaction between the UNDP and Terra Dinarica will be regulated by a standard UNDP Micro-Capital Grant Agreement.

In addition, considering ti,e extensive work at the local level and cooperation with local governments country-wide, the project will draw on the network of UNDP Regional Offices in Banja Luka, Biha':, Brcko, , Drvar, Mostar, Sarajevo, and Srebrenica.

Other expertise and resources It is foreseen that the project will deploy both national and/or international expertise in various fields as the need arises. In addition, external goods and service providers will be engaged following a competitive process to deliver technical assistance, training, construction works or other types of specific goods and/or services (such as legal analysis, public/municipal finance planning and management, etc.).

33 Grant No.: AJI)-168·IO-))-OOOO] Via DiJl<:lrica: A Platform j{Jr Sustainable Tourism Dcvc!opml',nt UNDP equipment and vehides will be used by the project team and therefore no purchase is required. This does not relate to the project beneficiaries that will be provided with certain equipment as required.

PART IV: BUDGET

The total budget for this activity is $1,487,005. Of this total amount UNDP will provide $502,748 in funding. UNDP is requesting $984,258 from USAID for implementation of this activity. Please see Annex 5 for the full budget.

!'l'.RT V: MONITORING AND EVALUATI,ON

Project Monitoring The main tools for organising the project monitoring system encompass a series of main documents, providing baseline and target quantitative and qualitative indicators, more particularly: The Results and Hesources Framework (as described within Section II of this project document); - The Annual Work Plan (as described within Section/II of this project document).

The project has identified Specific, Measurable, Achievable, Relevant and Time-bound ("SMART") indicators, and will collect timely and reliable data to assess delivery progress and impact. Among the main challenges for the project's monitoring will be the lack of reliable statistical data, for example, related to number of over-night stays in B&B/guesthouses within target areas, % of employed in the tourism sector in target areas, etc. These baselines would need to be established during the inception period, utilising data from the planned Via Dinarica Trails' assessments.

Monitoring will be carried out through the project implementing structures, in partnership with relevant governments, civil society and development partners_ The project will reinforce concrete mechanisms enabling regular data collection against the set monitoring indicators throughout the entire implementation process. Particular efforts will be made to dis aggregate data by sex and other target groups in order to more precisely measure contributions to the project outcome and outputs.

In addition, the project will draft quarterly and annual progress reports. which outiine the short-term achievements based on the set targets. Furthermore, Annual Project Reviews will be held late each year and will be initiated by the Project Board and possibly, with participation of the Project Advisory Board.

Project evaluation One final project evaluation will be organized for this project. It will be a broad impact assessment at the final quarter of the project, which will provide a clear indication of its achievements in terms of outcome and impact, effectiveness and efficiency. This evaluation will also contain strategic recommendations on action that is required post project to ensure long-term sustainability and follow-up on key elements of the project.

Reporting The project will adopt the following reporting modalities: Annual Narrative Heport prepared by the project and submitted to the Project Board; Annual Financial Report prepared by the project and submitted to the USAID; Final Project Narrative Report prepared by the project and submitted to the Project Board; Final Project Financial Report prepared by the project and submitted to the USAID.

34 [A-z SECTION II: PROJECT RESULTS AND RESOllRCES fRAMEWORK

-,,-.. ----.~- Intended Outcome I By 2017 the economic, socia! and regional disparities in BiH are reduced through affirmation of the Via Oinarica as a r"egiona! tourism destination and increased ! competitiveness of nature-based tourism. Outcome indicators: i -% of employed in tourism in target areas (as % of the total employed); - % annual growth of employed in tourism industry, where at least 40% of those are women (tourisr-l faC\i1ties, services) within target munlclpa\lt-I€s; , - Number of direct jobs resulting from assistance (dis aggregated by gender); I -Number of private enterprises improving management practices as a result of assistance. I. -Nu~~er ~!_!ouris~,yisitjn.~ the Yia Din~rica annu~~~L ___ ~ _____" .'~ ___ '_____ ."."." ____ "_.~ ____ ,, __ .____ '''"_.~~ ______I UNDAF/CPD outcome 4. By 2019, economic, sodal and territorial disparities are decreased through coordinated aoproach by national and subnational actors. ( CPO Output: Improved implementation of development strategies and service delivery at subnatlonal ievels; indicator 2e. LCPD Output: Improved private sector competitiveness; indicator ,,3',,______i ( "INTE-NDED-iiUTPUTS " OllTPUTTARGETS FOR {YEARS) l INDICATIVE ACTIVITIES ----"-rRESPONSIBLE llNPUTS - ----~1 1_____ 1 I ~U "~+Target;{y~ar"l) -"".-----"-.------·----·------,---~,,·j-·Acti~jtyLl .. ASse~s'~g th~Gre~~- : PARTIES I Output 1: ' I Assessed and charted all 3 Via 1 - At least 50% (250 km) of the entire Green Trail in BiH I Trail, completing the White Trail ! USD , Dinarica trails in BiH. i is assessed and marked (by GPS and with signage), and i assessment and defining the Via MeGA 61,861 i at least 100 accommodation facilities, services and : Dinarica as a wholesa{e tourism partner Baseline: points of interest are recorded within a database; ; product , 400 km of the White Trail in BiH I- Approximately 100 kilometers of new trails marked ! ! are assessed and 100 km along i on the White Trail; : Activity 1.2 Assess and define the , the White Trail are marked in ! ~ Resources, walking tra1l$, outdoor activity offers and ! Blue Trail 2013_ 1 other services combined in tour packages along the Via 500 km of the Green Trail in BiH Dinarica White Trail. are not assessed and marked, ~ The unmarked part of the White Trail (lOO km) 100 km of the Blue Trail in 8iH marked and signage-placed, \ are not assessed and marked. i ' I Indicators: I 1- km of assessed and marked Via I I Dinarica Trails (White, Green I j..!.nd ~~l!"e) by the _~_~~_ of ~,~~ __l __ ~_. __. ___ .__ ... ~ __ .. _._~ ______.... __ __ .. _l~._, ______.. ___.. ______."._" __.. _. ____ L ---"---.------I r Output 2 i Iarget~~ i Activity 2,1 Tourism infrastructure UNDP I Output 2: Ilmoroved tourism infrastructure i-At least 5 mountain huts improved or rebuiid on the ! improvement I USD ! and strengthened capacities of 'I Via Dinarica White Trail and offer at least 40 beds as \ Sub-activity 2.1.1. Trail marking MCGA 1 645,670 i service providers along the Via i accommodation capacity in total. I Sub-activity 2, .1.2. Mountain hut ! partner

i Dinarica White and Green Trails 1 - At least 5 B&Bs established/improved on crucial l improvements " .__ ". __ L ______.~ , ---_._.. -_.------" --,.. ".-.. '".. ----.------".-'"~------"- 35

~ Grant No.: AID-IG3-IO-15-00001 .. _...... _... __ .... __ ._._._ .. _"" ...... __. __ ... __ .. __ .__ .. ~ ___ .Yi~... Pi.~~~~~a: A Platfonn ~~~.! .rj~nl..!?,?y'~ ].?e~"'2~.::~ locations along the Via Dinarica White Trail (out of Sub-activity 2.1.3. Bed & Baseline: which at least 3 are women-led businesses) and offer Breakfast (smoli grant scheme) Insufficient, damaged or at least 15 beds as accommodation capacity in total. inadequate infrastructure; - Organizationa! and project management capacity of Activity 2.2 Support to recovery limited capacities of service at least 20 representatives of mountain associations and improvement of tourism- providers; and dubs, rescue teams and guide associations located reiated services in flood affected Indicators : along the White Trail strengthened; areas -length of marked/established! • Best practices and know-how from a world leading Activity 2.3 Support to repaired; eco~tour operator will be shared with at least 20 eca improvement of tourism offer and - Number of accommodation tour operators and tourism service providers located services (sma!! grants) facilities fe-built, improved, along the Via Dinarica White and Green Trails and their Activity 2.4 Capacity development established; management and service delivery capacity - of relevant stakeholders along the - Number of beds available after st,engthened. Via Dinarica Trails intervention; - At least 2000 thematic brochures promoting at least 5 Sub-activity 2.4.1 Copacity - Number of firms receiving specific tourism niche products along the White and development oj mountain capacity building assistance; Green Trails are printed and widely disseminated in associations - Num ber of micro-smail BiH and abroad. Sub-activity 2.42 Copacity businesses, tour operators who - At least 2 FAM/Press trips organized for at least 5 development of B&Bs have adopted new operational, international tour operators, to result in 5 of them owners/associations management, and/or financial adding VO BiH to their official program. Sub-activity 2.43. Coaching and practices as a result of Via - The White Trail Network is established as a capacity devefopmentfor eco-tour Dinarica capacity bul!ding participatory network bringing together at least SO operators and tourism service efforts; public, private and dvicstakeholders, and it continues providers - Number of citizens in flood to function throughout the project life affected areas benefiting from restored/improved access to Targets (year 2) potable water; · At least 5 mountain huts improved or rebuild on the . Number of tourist Via Dinarica White Trail and offer at least 40 beds as organisations in affected areas accommodation capacity in total. which regain tourism activity as · At least 5 B&Bs established/improved on crudal a result of new equipment; iocations along the Via Dinarica White Trail (out of - Number of direct and indirect which at least 3 are women-led businesses) and offer jobs created. at least 15 beds as accommodation capacity in total. - Number of tourist overnight - At least 5 tourism packages (outdoor/adventure stays in various types of packages, regional tours, information services) accommodation alongside the developed and offer safe and diversified tourism Green Trail of Via Dinarica. services along the White and Green Trails of Via Dinaric3, with at least 50% of the recipients being ! youth; 1 ~ Organizational and project management capacity of

~_._ .. __ ._ .... __ .__ ._.... ___ ._. ____ .______.. _. i at .~~~st 2.2 repr<:~~.~.~.~!..i.~._~~ mountain associa~i.ons _ ...... ____ . , ...... _ ...... __.. ~.L-~_ ___ ._..1 36

~ Grant No_: AID-16S-JO-J5-0000 J Via Dinarica: A Platform for Su~tai!lablc Tourism Development····_··-1 clubs, rescue teams and guide associations located -_ ...... ·--r------... _...... - along the Green Trail strengthened; i - At least 2 FAM trips will be organized for at least 10 international tour operators that witl result in 5 of them adding VD BiH to their official program; - The Green Trail Network is established as a participa~ory network bringing together at ieast SO public, private and dvfcstakeholders, and it continues to function throughout the project life. - An international Via Dinarica promotional conference organized for 50 representatives of all 7 countries participating in the mega trail, where jOint vision and joint action plan for steps ahead are agreed upon, and broader cross~country promotion of the Via Dinarica i tourism destination is ensured. [ 1 Targets ~"?'J I -The entire length of the Green Trail in BiH is walked i and assessed, while data on tourist assets, I accommodation and points of interest is collected and I recorded; ! -Resources, walking trails, outdoor activity offers and lather services combined in tour packages along the Via I Dinarica Green Trail. I -The entire (100 km) of the Blue TraP in B1H is assesses

II and marked (by GPS and with signage), and at least 50 I accommodation facilities, services and points of ! interest are recorded within a database. ! -The entire length of the Green Trail (400 km) marked I and signage-placed as per the standard Via Dinarica ! signage. i-At least 15 mountain huts improved or rebuild on the \ Via Dinarica Green Trail and offer at ieast 40 beds as accommodation cdpacity in total. - At least 10 8&8s estabiished/improved on crucial . rocations along the Via Dinarica White Trail (out of 1 which at least 3 are women¥!ed businesses) and offer i at least 30 beds as accommodation capacity in total. I - At least lS tourism packages (outdoor/adventure I packages, regional tours, informatlon services) L ___ __ l.~.~~e!ope? and ?ffer safe and d~y._~~!tie?" __ ~_~ur!.sm .. _. ____f "_,__ ,____ ,._ ...... ______._ .. -L_ .. _____ . ____.. __L ______37

~ Grant :1\0.: /\fD-168-TO-I=,-OOOOI Via Dinarica: /\ Platfomi for Sustainable Tourism f')f'vr-lnnm(>nt "'""' ... -"'~,---,----~--~." ... -~ ''',---'" ... ---- services along the White and Green Trails of Via Dinarica, with at least 50% of the recipients being youth; ~ Organizational and project management capacity of I at least 20 representatives of mountain associations I and dubs, rescue teams and guide associations located along the Green Trail strengthened; I - Business management and customers' service I I capadty of at least 50 B&B owners/associations located along the Via Dinarica White and Green Trails strengthened;

Q.ytput..1 - At least 3000 thematic brochures promoting at least 5 Activity 3.1 Publications and UNDP Output 3: Via Dinarica identity promoted, specific tourism niche products along the White and promotion materials USD place-marketed and Green Trai!s afe printed and widely disseminated in Activity 3.2 Social Media, Website MeGA 261,450 strengthened within the country BiH and abroad. & Blogging promotions partner and fntematio{lal!y. - At least 2 FAM trips wlU be organized for at least 5 Activity 3.3 Familiarization (FAM) international tour operators that will result in 5 of and Press trips .!?2.seline: them adding VD BiH to their official program . Lack of information particularly on BiH segments of VD; Bad image of the country associated with war, landmines and crime; Poor mart.::eting of outdoor tounsm products.

In.dicato;-s: - Number of promotion.al events for trails (differentiated by target markets - international vs. regional, vs. local). - Levels of awareness from domestic and international tourists about the trail. - Number of articles/bloggs published - Number of web site, soc. media chanels visits, - Types of tourists using the traP {domestic tourists vs. internationai of 38 t' Grant No,: A1O-168-JO-15-0000J Dinarica A Platf0ml 1C)f Sustainable Tourism Development i---:-'----'~- ----"----T-' ---~------,------,------,--- "-,-'------,------r------~----' 1 trad days). I I i '; i· I i

'-OU!PU! 4 ----1: Atle;,s! 8 discu~sion events are organized--.:J;;;g th-;;---t Activity 4_1 Co-;mu-;;it;;:bas-~d- UNDP-----I, ou,p;t4:-_J, I Established partnership i Via Dinarlca Trails and enable formation of community- I tourism partnerships, Via Dinarica I USD 1 \ networks a~d cooperation I based partnerships for connecting public, private and ! Networks and Via D'lnarlca MeGA I 53,133 i i among relevant stakeholders civic resources for sustainable tou rism development. I Coordination Group partner ! along the Via Dinarica Trails in l Activity 4.2 Via Dinarica BiH. I conference

Baseline: lack of cooperation among key stakeholders, businesses and relevant lnstitutions.

Indicators: - Number of associations, accommodations (hotels/B&Bs), attr3ct~ons, and tour operators engaged In program activities (ail participant data will be dis aggregated by sex); - Number of MOUs signed between Community Based Tourism Groups {agreements between associations, municipalities, and tour L~p..~~torsJ:_ ." __. __ ._L_.. __ ._.. ~~~_, __~._.

39

~ A.3 SECTION III: ANNUAL WORKPLAN

1-...... ----.-. ---"-'-'-"'-"-"'--' ACTIVITY TIMELINE FOR THE YEAR 1 i-I .,....--.---. I months

1, . ..j.._--' I. Project . -.-.- - - .... - I~'M'; \. I I I';;,-r-rT-I--' 1 '1 \ 1.- .... Com pan Project Activity Results I 1 i 2 3 i 4 I 5 . 6 I 7 ". 8 ! 9 I I ent ! I ii, 'I I I i 0 I 1 : 2 j ! i i !!! i .. ,II .. I I I ' i ' I I' , l'- ...... -----.. ..--- ., -TraiT;~~lk~d~;d morked---t-j-.. ·.. r-l·--' --I·--r"·.I .•.••. ,.r·-.. I-· ••••· ••.··[·-··t .. --1

Comp­ ! 1.1 Assessing and denning Via Dinarica i by GPS i i i ! ! i : I II» ! ·L ! onentl I as a tourism product I ' I .---+ . , ' ,----.. I ! Tour packages of VfO I Ii': I ' . ' 'I' 'I Dinarica white trat! 11 ! Ii; I l I ; i, i L \ \ Infra5tructur~ on the VD -I------L- - __ l ____ l __( ··i-'--··~--~·-·--I---~t·-"'-"·

r I )white trail improved !, i ; _ [ ! i ; i 2.1 Tau ris m infrastructu re im prove me nt L ___ .. __ .__ . ___... _____-1. .---L--·---t~----· :--- ······;--·····-i----+------T---.. -j-----·,,·--i "'------", -----~------.. -.,.-: I i Infrastructure on the I I : - I' - . ,

I I most attractive segment l' " I \ upgraded 1 I 1 _L ______... ___ .L._+____L l__ ~ ___ ..L ______J..._ .... ,.. _-O I .. i VD white trail marked I .. I ii,' Comp­ j 2,1.1. Trail markIngs i 'I' I ' I and signage placed. ,I: I ' .. onent 2 L_. _____.. __.. ~ .. __ ._ .. __ .I___ . I---..l---I-.-.- _'_ ~ ~ __ L __ ... ~ .. ____i --l i 1 10 mountain huts ..

12.1.2. Mountain huts improvements I improved or rebuild on ! ! ' the VD white trail I I ~ ... ~ ..... - .. ----... - ..... - .... .l.. __ --- - .. ------~ -- ,- -l- -~ .... +--f-.-:.;--.i. I 158&85 establtshed on I : I i I , 2.1.3 Bed & Breakfast small grant I I " . i I I the cmcw locatIOns of ' i I' , . scheme , I· i ' the VD white troil I I . ! 1 I,! I _L .__ . ___.. ___,,_. ___ ,,_ .~' __ . __. __ .. __...... _ .. __ ._ .. _ .. ____ : _____ .i~_'. ___~ -_.-'----,- ---!-- --_1.-. 40

~ Grant "0.: AID·168·10·15·00001 Via Dinarica: A Platfonn for Sustainable Tourism ACTIVITY TIMEUNE FOR THE YEAR 1

_.-". ------". -----"" 4 tourism service ..... j • •••••••• providers assisted to . > i 2.2. Support to recovery in flood recover and 450 water -' , . ". ••••••••••••• affected areas jilters provided to ...... • . . '. .'.... beneficiaries ." ...... 2.3 Small grants for tourism service 5 grants awarded to i ! .'. \ providers tourism service providers , Ii .. • .•.-----~--. i, , ... 11 associations located • • 2.4 Training and Capacity Building along the white trail received training . - .•...... • -.•.•. _.-... --, ! 2.4.2 Training for B&B 10 people trained owners/associations :

···____ ~.~u_ .-----... ------; . . 10 specialty tour • 2.43 Coaching for eco tour operators operator companies and service providers ••·.i trained , .-.-..• ,.,.,------.... i .... -- . . Promotional catalog 8iH . ! Via Dinarica . , , '-, .' l Promotional Catalog Via · . l 3.1 Publications and promotion Dinarica materials . Camp· . : Hiking -standard . • .' .' onent3 . . brochure . •• ..' . Map Sets and GPS data .- l . l .

".---"~' 3.2 Soo'lal Media, Web & Blogging Social media and web • ... promotions visibility (100 000 +) i - .. " ...... _, ...... 41

~ Grant No.: AlD-J68-IO-IS-OOOOI Via Dinarica: /'\ Platfcnn for Sustainable Tourism ACTIVITY TIMELINE FOR THE YEAR 1

-----1--"~.'-' . Bloggs on 18 international sites/pubt;cations

10 tour operators and 3.3 FAM and Press trip!s) press attends the trip

4.1 Formation of Community Based coordination group(s) Tourism and other coordination groups formed Comp­ onent 4 cooperation established/ 4.3 Networking with local governments enhanced along the and institutions white tra;!

activities on white line

activities on green line

activities on VD in general

42

-#: Ciratlt No.: AID-168-IO-15-0000 1 Via. Dinarica: A Platform for Stl5tainablc Tourism Development lEND OF ATTACHMENT 2 - ACTIVITY DESCRIPTION]

43

v Grant No.: A1D~168-10-15-00001 Via Dinarica: A Platform for Sustainable Tourism Development

Attachment 3 - STANDARD PROVISIONS STANDARD PROVISIONS FOR GRANTS TO PUBLIC INTERNATIONAL ORGANIZA nONS

1. Allowable Costs (April2011) a. The recipient must usc funds provided under the award for costs incurred in carrying out the purposes of the award which are reasonable, allocable, and allowable, (1) "Reasonable" means the costs do not exceed those that would ordinarily be incurred by a prudent pcrson in the conduct of normal business, (2) "Allocable" means the costs are necessary to the award. (3) "Allowable" means the costs are reasonable and allocable, and conform to any limitations set forth in the award. h. The recipient is encouraged to obtain the Agreement Ot1!cer's writtcn dctermination 111 advance whenever the recipient is uncertain as to whether a cost will be allowable. [END OF PROVISION]

2. Amcndmcnt (Arril2011) The parties may amend the award by mutual agreement, by formal modifications to the basic award document, or by mcans of an exchange of letters between the Agreement Officer and the recipient. lEND OF PROVISION]

3. Non-liability (April 2011) USAlD docs nol assume liability for any third party claims for damages arising out of the award. [END OF PROVISION]

4. Notices (April 2011) Any notice given by USAlD or the recipient will be sufticient only if in writing and delivered in person, mailed, or transmitted electronically bye-mail or fax. Notices to USAI]) should be sent to the Agreement Oftieer at the address specified in the award and to any designee specified in the award. Notices to the recipient should be sent to the recipient's address shown in the award or to such other address designated in the award. Notices will be ef'1ective when delivered in accordance with this provision, or on the effective date of the notice, whichever is la(er. [END OF PROVISION]

5. Payment (Letter of Credit) (April2011) a. Payment under (he award is completed through a Letter of Credit (LOC), in accordance with the (cnns and conditions of the LOC and any instructions issued by the USAID Bureau for Management, Office of the Chief Financial Officer, Cash Management and Payment Division (M/CFO/CMP).

44 Grant No.: AID-J6S-10-JS-OOOO J Via Dinarica: A Platform for Sustainable Tourism Development h. As long as the tOe is in clkct. the terms and conditions of the LOe and any instructions issued by M/CFO/eMP const itute the payment conditions of the award over any other payment clause oflhc award. c. The recipient should have written procedures that minimize the time elapsing between the transfer of funds and dishursement by the recipien!. The recipient must exercise prudent llHlnagement of Federal funds by drawing only those funds that are required for current usc. The timing and the amount of the drawdown must be as close as is administratively possible to the actual disbursements by the recipient for direct program or activity costs and the proportionate share of any allowable indirect costs. d. Revocation of the LOC. in accordance with its tenns and conditions, is at the discretion of MiCFO/eMf>, afler consultation with the Agreement Omcer. Notillcation ofrcvoeation must be in writing and must specify the reasons for stich action. lfthe LOe is revoked, payments may be made on a cost-reimbursement basis. For reimbursement, the recipient Illust submit to the USAID Controller an original and three copies ofS.F-1034, Pub/ic Voucher for Purchases and Services Other Thall Personal (htfp://contacts.gsa .gov/web jimns. flsj10/5 767 5C8 Ii II 6CE 880 II 852 56A3 1"00412 5BD/$jiI e/8F% 201034.pdj), and 81"-1035, Continuation of SF-l 034 (flltp:/!contacts.gsa.gov/webjiJrms.nsj!O/213A354B84AEOSB085256A81004632CS/$jilelSF%2 (J1035.pdj), normally once a month, but in any event no less than quarterly. Each voucher must be identified by the award number and must state the total costs for which reimbursement is being requested. [END OF PROVISION]

6. Audit and Records VN (September 2011) u. The recipic1l1 agrees to hlrnish the U.S. Government (USG) with a final report on activities carried out under the award, including accounting for award funds in sufficient detail to enable USAID to liquidate the award. The report must be submitted to the address specilled in the award. b. Jt is understood thaL llnancial records, including documentation to supp0l1 entries on accounting records and 10 substantiate charges against the award, will be maintained in accordance with the recipient's usual accounting procedures, which must f()lIow generally accepted accounting practices. The recipient must maintain such financial records for at least three years aner the recipient'S final disbursement of funds under the award. e. The recipient confirms that the award account will be audited applying established procedures under appropriate provisions of the tlnancial regulations and rules of UN))P. The recipient agrees to make available these audit reports to the USC; in accordance with the UNDP Oversight Policy and relevanl decisions of the UN))P Executive Board. The recipient also agrees to provide additional clarillcations as may be reasonably requested by the USO with respect to questions arising from the audit report. In the event that USAID becomes aware of {,tctors that would indicate a need f()r closer scrutiny of USAlD-funded activities, these factors will be promptly brought to the attention of UNDP Omee of Audit and Investigations to determine the need for a special purpose audit. [END OF PROVISION]

45 Grant No.: AlD-168-IO-IS-OOOOI Via Dinarica: A Platform for Sustainable Tourism Development

7. Refunds (April 2011) a. If the recipient earns interest on Federal advances before expending the funds for program purposes, the recipient must remit the interest annually to USAlD. Interest amounts up to $250 per year may be retained by the recipient for administrative expenses. b. Funds obligated by USAlD, but not disbursed to the recipient bet()re the award expires or is terminated will revert to USAID, except for funds committed by the recipient to a legally binding transaction applicable to the award. Any funds advanccd to, but not disbursed by, the recipient before the award's expiration or termination must be refunded to USAID, except for lunds committed by the recipient to a legally binding transaction applicable to the award. c. 1I~ at any time during the life of the award, or as a result of an audit, the Agreement Officer determines that USAID funds provided under the award have been expended for purposes not in accordance with the terms of the award, then the recipient must refund the amount to USAID. [END OF PROVISION) 8_ Award Budget Limitatiolls and Revisions (April 2011) a_ The approved award budget is the financial expression of the recipicnt's program as approved during the award process. US/dO is not obligated to reimburse the recipient for any costs incurred in exccss of the total amount obligated under the award. b. 'fhe recipient must immediately request approval from the Agreement Officer when there is reason to believe that, within the next 30 calendar days, a revision of the approved award budget will be necessary for any of the following reasons: (1) To change the scope or the objectives of the program Or to add any ncw activity. (2) To revise the funding allocated among program objectives by more than ten percent (J 0%) of the lotal budget amount unless the award states otherwise. (3) Additional funding is needed. (4) The recipient expects the amount of USAJD authorized funds 10 exceed its needs by mOre than $20,000 or ten percent (10%) of the USAlD award, whichever is greater. c. The recipient will not bc obligated to continue performance under the award (including actions under the "Termination Procedures" provision) or otherwise to incur costs in excess of the amount obligated under the award, unless and until the Agreement Officer notifies the recipient in writing that the obligated amount has been increased and specifies the new award total amoun!. [END OF PROVISION] 9. Termination Procedures (April 2011) The award may be terminated by either party, in whole or in part, at any time with 30 days written notice of termination. After receiving a termination notice from the Agreement Officer, the recipient must takc immediate action to cease all expenditures financed by the award and to cancel all non-liquidated obligations if possible. The recipient may not enter into any additional obligations under lhe award after receiving the notice of tcrmination, other than those reasonably necessary to affect the close out of the award. Except as provided below, no tlllther reimbursement will be made after the effective datc of termination. As soon as possible, but in any event no later than 120 days allcr the efIective date of term ination, the recipient must repay to USA If) al I unexpended USA[f) funds that arc not otherwise obligated by a legally binding transaction applicable to the award. If the tltl1ds paid by lJSAID to the recipient bef()re the effective date of termination are not sufficient to cover the recipient's obligations under a legally binding transaction, then the recipient may submit a written claim Ic)[ such amount to USAlD

46 Grant No.: AID-16R-1O-15-0000 I Via Dinarica: A Platform for Sustainable Tourism Development within 120 days aftcr the eifective date of termination. The Agreement Omeer will determine the alllount(s) to be paid by USAID to the recipient under the claim in accordance with the "Allowable Costs" provision oflhe award. [END OF PROVISION] 10. Financial Management, Procurement, and Evaluation (April 2011) To the extent not inconsistent with other provisions of the award, USAI D and the recipient understand that funds made available to the recipient must be administered in accordance with the recipient's own financial rules and regulations, and that the recipient will follow its own procurement and evaluation policies and procedures. [END or PROVISION] 11. Dispute Resolution (April 2011) USAID and the recipient will use their best ei10rts to amicably settle any dispute, controversy. or claim that results from, or relates to, the award. [END OF PROVISION]

12. Title to and Disposition of Property (UN, August 2011) OwnerShip of equipmcnt, supplies, and other property purchased with funds under the award will vest in the recipient during the life of the award. Disposition of property financed under the award will be made in accordance with UNDP's standard procedures for property disposition. [END OF PROVISION] 13. USAID Disability Poliey and UN Convention on the Rights of Persons with Disabilities Assistance (April 2011) a, The principles of the present UN Convention on the Rights of Persons with Disabilities include promoting: (1) respect for inherent dignity, individual autonomy including the ti'eedom to make one's own choices, and independence of persons; (2) nondiscrimination; (3) iull and effective participation and inclusion in society; (4) respect ior difference and acceptance of persons with disabilities as part of human diversity and humanity; (5) equality of opportunity; (6) accessibility; (7) equality between men and women; and (8) respect for the evolving capacities of children with disabilities. The full text of the Convention can be iound at the following Web site: http://www . u n.o rg/d isah ilitiesl doeu III ell tsl COllven (iollleOllvoptp rot-e. pdf. b. USAlD requires that the recipient not discriminate against persons with disabilities in the implementation of USAlD-funded programs and make every effort to respect the principles of the Convention on the Rights of Persons with Disabilities in performing the program under the award. One of the objectives of the USAID's Disability Policy is to engage other U.S. Government agencies) host country counterpatis) governments~ implementing organizations, and other donors in fostering a climate of nondiscrimination against people with disabilities. To that end, and to the extent it can accomplish this goal within the scope of the program objectives, the recipient should demonstrate a comprehensive and consistent approach for including men, women. and children with disabilities. [END OF PROVISION]

47 Gran! No,: AID~ 168-JO-JS-OOOO J Via Dillarica: A PI3trorm f'or Sustainable Tourism DcyclopmCI11

14. Terrorist Financing Clause (UN, April 2(11) Consistent with numerous United Nations Security Council resolutions, including S/RES!l269 (1999) (http://www.ulldemocrllcy.com/S-RES-1269(l999).pdf). S/RESi1368 (2001) (ll ttp://mvw.undemocracy.com/S-RES-1368(2001).pdf). and SiRES/1373 (2001) (http://www.undcmocraey.colU/S-RES-1373(2001).pdf). both USAID and the recipient arc firmly committed to the international fjght againsl terrorism) and in parlicular; against the financing of terrorism. It is the pol icy of USA ID to seek to ensure that none of its funds are used, direcllyor indirectly, to provide support to individuals or cntities associated with terrorism. In accordance with this policy, the recipient unde,takes to use reasonable efforts to ensure that none of the USAlD funds provided under the award are used to provide support to individuals or entities associated with terrorism. [END OF PROVISION]

15. Publications and Media Releases (Apr'il2011) a. If the Grantee intends to identify USAlD's contribution to any publication, video, or other information/media product resulting from the award, the product must state that the views expressed by the author(s) do not necessarily retleet those ofTSAlD. Acknowledgements must identify the sponsoring USAID Bureau/Independent Office or Mission and the U.S. Agency lor International Development substantially as f(,lIo\Vs. "This [publication, video, or other information/media product (specify)] was made possible through support provided by the U.S. Agency for Imemation,,1 Development Mission to Bosnia­ Herzegovina, under the terms of Award No. AID-168-10-JS-O()()O I. The opinions expressed in this [publication. video. or other inforrnation/media product] arc those of the author(s) and do not necessarily reflect the views of the U.S. Agency for Intel1lational Development:' b. The Grantee must provide USAlf) with one copy of all published works developed under the award and with lists of other written works produced under the award. e. Except as otherwise provided in the terms and conditions of the aw"rd, the author or the Grantee is frce to copyright any books, publications, or other copyrightable materials developed in the course of or under the award, but USAID reserves a royalty-tree, nonexclusive, and irrevocable right to repl"Oduce, publish, or otherwise usc, and to authorize others to use. the work for U.S. Government purposes. lEND OF PROVISION]

16. Reporting of Foreign Taxes (UN, April 2011) The Grantee is not subject to taxation of activities implemented under the award based on its privileges and immunities as a public intemational organization (riO). However, should it be obligated to pay value-added taxes or customs duties related to the award, the Grantee must notify the USAID Agreement Officer's Representative (AOR). [END OF PROVISION]

[END OF ATTACHMENT 3- STANDARD PROVISIONS FOR GRANTS TO PUBLIC INTERNATIONAL ORGANIZATIONS]

lEND OF GRANT NO.:AID-168-IO-IS-OOOOII

48