USAID COMPETE PROJECT MONTHLY PROGRESS REPORT May, 2018 USAID COMPETE PROJECT MONTHLY REPORT MAY 2018 Page | 1 USAID COMPETE PROJECT MONTHLY REPORT May, 2018 DAI Contract Number: AID-294-C-12-00001 The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. It was prepared by DAI. Cover photo: Farmers in Deir Abu Da’if started using a locally made cucumber sorting machine. USAID COMPETE PROJECT MONTHLY REPORT MAY 2018 Page | 2 TABLE OF CONTENTS INTRODUCTION ............................................................................................................. 4 WEST BANK KEY HIGHLIGHTS ................................................................................... 7 AGRIBUSINESS ................................................................................................................... 7 Baby Cucumber: ................................................................................................................................................. 7 Grapes Program ................................................................................................................................................. 8 TECHNOLOGY ............................................................................................................... 11 STONE & MARBLE ............................................................................................................ 12 TOURISM ............................................................................................................................ 13 GAZA KEY HIGHLIGHTS ............................................................................................. 14 AGRIBUSINESS ................................................................................................................. 14 FISHING .............................................................................................................................. 15 ICT ....................................................................................................................................... 15 TEXTILE & GARMENT ..................................................................................................... 17 ANNEX A: UPCOMING EVENTS June 2018 .......................................................................................... 19 USAID COMPETE PROJECT MONTHLY REPORT MAY 2018 Page | 3 INTRODUCTION DAI is pleased to present its May 2018 monthly report. USAID through its Compete Project is focused on building the production capacity of firms to grow locally and expand regionally and internationally. Our focus is on addressing key market failures that will open the horizon for new value chains. The report presents the key accomplishments and details in May 2018 of each technical sector first in the West Bank and followed by accomplishments in Gaza. Support to the Agribusiness, Technology, Fishing, Garment and ICT sectors under Firm Level Assistance Program (FLAP) continued its progress during May 2018 where several firms showed progress in their work. To t a l FLAP applications to date reached 5060; 1699 approved applications. USAID through its Compete Project expanded its support for baby cucumber value chain to work with farmers in Tamoun and the Deir Abu Da’if to create new clusters. USAID through its Compete Project signed an in-kind grant agreement with Al Torab Agricultural Company and delivered a baby cucumber sorting machine which was designed by Palestine Polytechnic University and assembled by a local company. In Addition, the Project supported Deir Abu Da’if farmers through establishing a packing house for sorting baby cucumber including a baby cucumber sorting machine. The sorting machine and the cooling room were delivered in May 2018. To introduce a new vegetables production pattern, USAID through its Compete Project has announced a baby cucumber netting house program in the Northern West Bank targeting baby cucumber farmers. 116 applications were received, 37 were approved covering 240 dunums, and delivery will be completed by first week of June. This has enhanced baby cucumber quality and decreased investment cost by 75% in comparison to greenhouse production. USAID through its Compete Project announced in November 2017 a seedless grapes program for supporting Y shape hanging system in the Northern West Bank. The ongoing program approved 113 farmers covering 431.5 dunums of seedless grapes. Y shape hanging system was delivered and additional 13 applications were approved through FLAP covering 34.5 dunums, and delivery was completed by May 2018. The Project announced in January 2018 another seedless grape program in the north to support farmers with insect netting. Compete received 259 applications and approved 149 covering 572.5 dunums. All insect nettings were delivered. USAID through its Compete Project signed a grant with Ketaf Company for Investment and Agricultural Marketing to support them with a shock freeze room and signed another grant with Al Buqeea Company for Investment and Irrigated Crops to support them with two cooling rooms with a storage capacity of 1,000 MT of fresh vegetables; delivery is expected in July 2018. USAID through its Compete Project signed a new LOA with Al Jerashi Company to develop a business plan to study the feasibility of diversifying their production to include Polyethylene plastic films for various packaging application for food and non-food products in local and Israel markets in addition to Arab countries. USAID through its Compete Project assisted Deir Sharaf Agricultural Cooperative by implementing a pilot project for treated wastewater to assist eight farmers. Currently, the project is in progress with 50% of completion and is expected to be completed in June 2018. Gaza shading net program aims at introducing new vegetables production pattern by covering the plastic roof or insect net roof in greenhouses with 35% shading net. 73 applications out of 334 were approved with total area 240.5 dunums, and 73 of them signed the LOA. USAID COMPETE PROJECT MONTHLY REPORT MAY 2018 Page | 4 USAID through its Compete Project has signed an LOA with Jihad Zoqmat Company to deliver a cooling room to store sweet potato in Gaza, and signed an in-kind grant agreement with Palestine Palm Commercial Company to develop the production line of paste dates. In the fishing sector, USAID through its Compete project signed an LOA to assist Al-Bahar Fishery to improve the capacity of its fish hatchery and increase the quantity of production to reach 530,000 fingerlings. Al Bahar has sold 4.6MT of sea bream for markets in Gaza and West Bank, while Fish Fresh total sales reached 9MT for local market and West Bank markets as well. In Technology, Palestine Polytechnic University (PPU) has concluded the design process for four machines. The Vegetable Sorting Machine for baby cucumber was manufactured by Al-Taqaddum Scales Co. in Hebron and was delivered to Al Torab Company in Jenin by end of April. A second Vegetable Sorting Machine for baby cucumber was delivered to Deir Abu Da’if Cooperative in Jenin on 1st of May 2018. In Stone and Marble, one company in Bethlehem is still showing results of USAID interventions. Funoon Company was supported with a sales representative and in participating in trade shows in Qatar and Saudi Arabia during April and May. Only one site renovation project is still in progress in the tourism sector: Rehabilitation of Haram Al Rameh archeological site in Hebron, with 80% of completion. The project is expected to be completed in June 2018. Gaza ICT continued to show progress during April 2018. By end of May, USAID through its Compete Project signed one LOA with Asayel Group and continued to deliver assistance to Gaza ICT approved clients. The Project continued to work with companies to receive assistance approved earlier. USAID is assisting 1to3 Company to conduct a market study in Oman and UAE, a marketing campaign in the gulf countries as well as enhancing its productivity through a provision of MacBook Pro and iPad. USAID signed three apprenticeship contracts with DIETII, a company specialized in nutrition and fitness to develop software and with a nutrition expert. USAID through its Compete Project designed a collective training that targets 26 trainees nominated by 6 companies that participated in the niche market assessment program. USAID through its Compete Project plans to enhance the ecosystems for business startups and small businesses through building the capacities for incubators/accelerators and business providers. During May, USAID continued to support PICTI’s PitHub and will equip this co-working space with new technology equipment to be available for the co-working space tenants. In Textile and Garment, USAID through its Compete Project continued providing new technology and equipment on a case-by-case basis. USAID support includes machinery to Kirdash Company with button machine and vacuum finishing table machine delivered in May 2018. Rajab Al Ashi Company received support for adding new machines to the production including two overlock machines, fabric cutting machine, regel machine and fabric press Machine. A new company was approved to receive support to enhance the production capacity. 33 apprentices completed the training period supported by USAID as part of the Workforce Development Program and 31 apprentices were hired. USAID COMPETE PROJECT MONTHLY REPORT MAY 2018 Page | 5 Figure 1: Cutting