USAID ECONOMIC RESILIENCE ACTIVITY: YEAR THREE IMPLEMENTATION AND COORDINATION PLAN This publication was produced by the USAID Economic Resilience Activity under Contract No. 72012118C00004 at the request of the United States Agency for International Development. This document is made possible by the support of the American people through the United States Agency for International Development. Its contents are the sole responsibility of the author or authors and do not necessarily reflect the views of USAID or the U.S. Government. USAID ECONOMIC RESILIENCE ACTIVITY YEAR THREE IMPLEMENTATION AND COORDINATION PLAN Program Title: USAID Economic Resilience Activity Sponsoring USAID Office: USAID Ukraine Contract Number: 72012118C0000472012118C00004 Contractor: DAI Global, LLC Submission Date: August 31, 2020 Author: DAI Global, LLC 2 | YEAR THREE IMPLEMENTATION AND COORDINATION PLAN USAID.GOV TABLE OF CONTENTS ACRONYMS AND ABBREVIATIONS 5 EXECUTIVE SUMMARY 9 INTRODUCTION 11 BRIEF SUMMARY OF OBJECTIVES 11 ACTIVITY LOCATION AND CONTEXT 12 COLLABORATION, LEARNING, AND ADAPTATION (CLA) 13 WORKPLAN ACTIVITIES AND DELIVERABLES 14 1.0. INCLUSION 14 1.1. INCREASING CAPABILITIES 14 1.2. INCREASING OPPORTUNITIES 20 2.0. MSME GROWTH 30 2.1. MARKET EXPANSION 30 2.1.1. BIOFUELS GROWTH SECTOR 30 2.1.2. HONEY GROWTH SECTOR 33 2.1.3. INNOVATIONS FOR MANUFACTURING (IM) GROWTH SECTOR 36 2.1.4. IT GROWTH SECTOR 39 2.1.5. SEA OF AZOV TOURISM GROWTH SECTOR 41 2.1.6. VEGETABLES GROWTH SECTOR 45 2.1.7. GROWTH – CROSSCUTTING 51 2.2. INVESTMENT ACCELERATION FOR MSMES 52 3.0. TRANSFORMATION 55 3.1. INTRAREGIONAL INTERVENTIONS 57 3.2. REGION 1 – LUHANSK OBLAST 65 3.3. REGION 2 – NORTHERN DONETSK OBLAST 68 3.4. REGION 3 – CENTRAL DONETSK OBLAST 70 3.5. REGION 4 – MARIUPOL 72 3.6. REGION 5 – AZOV SEA COAST 75 CROSSCUTTING ISSUES 77 4.1. COMMUNICATIONS 77 4.2. ENVIRONMENTAL COMPLIANCE 78 4.3. ADAPTIVE MANAGEMENT LEARNING 81 PERFORMANCE INDICATORS AND TARGETS 84 MANAGEMENT 86 RISKS AND ASSUMPTIONS AFFECTING IMPLEMENTATION 91 COORDINATION PLAN 93 ANNEX A – WORKPLAN SUMMARY OF INTERVENTIONS 98 3 | YEAR THREE IMPLEMENTATION AND COORDINATION PLAN USAID.GOV INDEX OF TABLES Table 1: "MODEL CITIES" STUDY RESULTS 56 Table 2: SCHEDULE OF PAUSE AND REFLECT SESSIONS 82 Table 3: ERA PERFORMANCE INDICATORS 84 Table 4: ERA BUDGET FY 2021 91 Table 5: ERA COORDINATION PLAN 94 INDEX OF FIGURES Figure 1: ERA SITES WITHIN 20 KM OF THE CONTACT LINE 2020 13 Figure 2: INDICATIVE PIPELINE FOR 4 INVESTMENT TRANSACTIONS 54 Figure 3: MAP OF ERA SUBREGIONS 56 Figure 4: GoU FIVE-STAGE PLAN FOR REMOVING QUARANTINE RESTRICTIONS 88 Figure 5: TECHNICAL TEAM ORGANIGRAM 89 Figure 6: OPERATIONS TEAM ORGANIGRAM 91 4 | YEAR THREE IMPLEMENTATION AND COORDINATION PLAN USAID.GOV ACRONYMS AND ABBREVIATIONS AGRO Agriculture Growing Rural Opportunities AMELP Activity, monitoring, evaluation, and learning plan ARDS Agriculture and Rural Development Support APS Annual program statement ATO Anti-Terrorism Operation BEO Bureau Environmental Officer B2B Business to business CAP Credit for Agricultural Producers CEP Competitive Economy Program CIS Commonwealth of Independent States CLA Collaboration, Learning, and Adaptation COP - Chief of Party COR Contracting Officer’s Representative CSO Civil society organization CSR Corporate social responsibility Dahl Volodymyr Dahl East Ukrainian National University DCOP Deputy Chief of Party DCCI Donetsk Chamber of Commerce and Industry DFID Department for International Development (UK) DG East Democratic Governance East DNTU Donetsk National Technical University DO Donetsk Oblast DO/LO Donetsk and Luhansk Oblasts DOSA Donetsk Oblast State Administration DRC Danish Refugee Council 5 | YEAR THREE IMPLEMENTATION AND COORDINATION PLAN USAID.GOV EBRD European Bank for Reconstruction and Development EDCARP Entrepreneurship Development for Conflict-Affected Rural Population - We Prosper (Canada) EIB European Investment Bank EMMP Environmental mitigation and monitoring plan ERA Economic Resilience Activity ERC Environmental review checklist ESP Energy Security Program FAO Food and Agriculture Organization FHI 360 Family Health International 360 (NGO) G.A.P. Good Agricultural Practices GBV Gender-based violence GCA Government-controlled area GoU Government of Ukraine HACCP Hazard Analysis and Critical Control Point ICA Independent Consultant Agreement IDP Internally displaced person IEE Initial environmental evaluation IFC International Finance Corporation IFI International financial institution IM Innovations for Manufacturing IOM International Organization for Migration IT Information technology JFO Joint Forces Operation KfW Kreditanstalt für Wiederaufbau LGBTI Lesbian, gay, bisexual, transgender, and intersex LNAU Luhansk National Agrarian University 6 | YEAR THREE IMPLEMENTATION AND COORDINATION PLAN USAID.GOV LO Luhansk Oblast LOSA Luhansk Oblast State Administration M&E Monitoring and evaluation MEL Monitoring, evaluation, and learning MEO Mission Environmental Officer MERP Municipal Energy Reform Project MoES Ministry of Education and Science MoU Memorandum of understanding MSME Micro, small, and medium enterprise MSRA Market systems resilience assessment NGCA Nongovernment-controlled area NGO Nongovernmental organization NIP Neighborhood Investment Platform OTI Office of Transition Initiatives PLEDDG Partnership for Local Economic Development and Democratic Governance PSTU Pryazovskyi State Technical University PULSE Policy for Ukraine Local Self-Governance PYD Positive Youth Development RFA Request for application RFP Request for proposal RTC Regional training center R&D Research and development SFSCPS State Food Safety and Consumer Protection Service SME Small and medium enterprises SoW Scope of work STTA Short-term technical assistance TA Technical assistance 7 | YEAR THREE IMPLEMENTATION AND COORDINATION PLAN USAID.GOV TVET Technical vocational education and training UCBI II Ukraine Confidence Building Initiative II UCMC Ukraine Crisis Media Center UNDP United Nations Development Programme UNFPA United Nations Population Fund UNHCR United Nations High Commissioner for Refugees USAID United States Agency for International Development UUCU Ukrainian United Credit Union VET Vocational education and training WFD Workforce development Y1 Year 1 Y2 Year 2 Y3 Year 3 ZO Zaporizhzhia Oblast ZOSA Zaporizhzhia Oblast State Administration 8 | YEAR THREE IMPLEMENTATION AND COORDINATION PLAN USAID.GOV EXECUTIVE SUMMARY The residents of eastern Ukraine have suffered greatly since armed conflict started and eastern oblasts were severed in 2014. The United States Agency for International Development (USAID) funded the Economic Resilience Activity (ERA) to help stabilize and rebuild the eastern Ukrainian economy. The COVID-19 virus was declared a pandemic in March 2020 as it spread quickly throughout the world and upended economies globally, including in eastern Ukraine. In August 2020, USAID funded a 12-month extension of ERA to continue assistance stabilizing the economy of eastern Ukraine, mitigate the economic impact resulting from the COVID-19 pandemic, and support economic recovery through August 2024. The ERA team enters Year 3 (Y3) by refocusing its efforts, scaling up its most successful interventions, and beginning new interventions to support the people and micro, small, and medium enterprises (MSMEs) of eastern Ukraine adjust to the constraints of COVID-19 restrictions on assembly and movement. The Inclusion, Growth, Transformation, and Communications teams will meet the challenges of Y3 with a tightly integrated plan that will support eastern Ukrainian transformation in an economic environment that has become even more difficult in the last six months of program Year 2 (Y2). ERA’s work in its Inclusion component aims to bring more people into the economic life of eastern Ukraine by providing them with the capabilities to realize their potential in the economic sphere, with a special focus on including members of vulnerable and hard-to-reach populations. In Y3, the Inclusion team will strengthen the small business ecosystem for vulnerable populations by: • Increasing the capacity of nongovernmental organizations (NGOs) to serve marginalized populations with an emphasis on improving their project and management capabilities as well as their training abilities • Providing training in professional and business skills through NGOs • Promoting social entrepreneurship and corporate social responsibility through training and consultations • Supporting the expansion of MSMEs owned by or employing vulnerable populations through training on the business-to-business (B2B) sector As part of the Inclusion component, ERA’s Workforce Development (WFD) team aims to include more residents of eastern Ukraine into the workforce by providing them with better opportunities for education and careers that will allow them to lead productive and satisfying lives in the region. ERA’s WFD interventions are designed to: • Align skills with the demands of the labor market by strengthening linkages between educational institutions and business, updating curricula, and developing opportunities for dual education and practical training • Attract and retain workers and future graduates to the region by upgrading university career services, training employers on strategies for employee retention, supporting businesses and universities to engage more effectively with young people, and raising young people’s awareness of educational and professional opportunities in the region • Invigorate the development