FIRST QUARTER REPORT FY 2007 OCTOBER TO DECEMBER 2006 Contract No. 514-C-00-06-00301-00 JANUARY 31, 2007 This publication was produced for review by the United States Agency for International Development. It was prepared by ARD, Inc. Report Prepared for the United States Agency for International Development MÁS INVERSIÓN PARA EL DESARROLLO ALTERNATIVO SOSTENIBLE First Quarter Report FY’ 07 JANUARY 2007 MIDAS FIRST QUARTER REPORT FY’ 07 Table of Contents Table of Contents ................................................................................................... 1 Acronyms ............................................................................................................... 4 Executive Summary................................................................................................ 6 1. Significant Technical and Program Accomplishments .................................................. 7 1.1. SME Component .................................................................................................. 11 1.1.1. Overview ...................................................................................................... 11 1.1.2. Administration and Support Activities......................................................... 11 1.1.3. Technical Implementation ............................................................................ 16 1.1.3.1. Proposal Development and Project Implementation ............................ 16 1.1.3.2. Other Key Accomplishment during the Quarter................................... 25 1.2. Commercial Forestry Component ........................................................................ 28 1.2.1. Overview ...................................................................................................... 28 1.2.2. CFC Administration and Support Activities ................................................ 31 1.2.3. Technical Implementation ............................................................................ 31 1.2.3.1. Proposal Development and Project Implementation ............................ 32 1.2.3.2. Other Key Accomplishment during the Quarter................................... 33 1.3. Agribusiness Component...................................................................................... 34 1.3.1. Overview ...................................................................................................... 34 1.3.2. Administration and Support Activities......................................................... 35 1.3.3. Technical Implementation ............................................................................ 36 1.3.3.1. Proposal Development.......................................................................... 38 1.3.3.2. Project Implementation ........................................................................ 39 1.3.3.3. Project Implementation ........................................................................ 41 1.3.3.4. Other Key Accomplishment during the Quarter................................... 42 1.4. Policy Component................................................................................................ 42 1.4.1. Overview ...................................................................................................... 42 1.4.2. Administration and Support Activities......................................................... 44 1.4.3. Technical Implementation ............................................................................ 44 1.5. Technical Services................................................................................................ 55 1.5.1. Overview ...................................................................................................... 55 1.6. Contracts and Grants ............................................................................................ 56 1.6.1. Overview ...................................................................................................... 56 1.6.2. Other Key Accomplishment during the Quarter........................................... 61 1.7. Financial and Economic Analysis ........................................................................ 61 1.7.1. Overview ...................................................................................................... 61 1.7.2. Administration and Support Activities......................................................... 61 1.8. Program Planning................................................................................................. 62 1.8.1. M&E............................................................................................................. 62 1.8.1.1. Overview .............................................................................................. 62 1.8.1.2. Administration and Support Activities................................................. 63 MIDAS FIRST QUARTER REPORT FY’ 07 1 1.8.2. Environmental .............................................................................................. 63 1.8.3. Internal Information Management................................................................ 65 1.8.3.1. Overview .............................................................................................. 65 1.8.3.2. Administration and Support Activities................................................. 65 2. Strategic/Tactical Issues for Consideration .................................................................. 65 2.1. SME Component .................................................................................................. 65 2.1.1. Overview ...................................................................................................... 65 2.2. Commercial Forestry Component ........................................................................ 66 2.2.1. Overview ...................................................................................................... 66 2.2.2. Key Constraints and Actions to Take........................................................... 66 2.2.2.1. Proposal Development.......................................................................... 67 2.3. Agribusiness Component...................................................................................... 67 2.3.1. Key Constraints............................................................................................ 67 2.3.1.1. Proposal Development.......................................................................... 69 2.3.1.2. Implementation..................................................................................... 69 2.3.2. Actions being taken to Overcome Constraints ............................................. 70 2.4. Policy Component................................................................................................ 71 2.5. Technical Services................................................................................................ 72 2.6. Contracts and Grants ............................................................................................ 73 2.7. Financial and Economic Analysis ........................................................................ 73 2.7.1. Key Constraints............................................................................................ 73 2.7.2. Actions Taken to Overcome Constraints...................................................... 74 2.8. Program Planning................................................................................................. 74 2.8.1. M&E............................................................................................................. 74 2.8.2. Environment ................................................................................................. 74 2.8.3. Internal Information Management................................................................ 74 3. Next Quarter Objectives ............................................................................................... 74 3.1. SME Component .................................................................................................. 81 3.2. Commercial Forestry Component ........................................................................ 83 3.3. Agribusiness Component...................................................................................... 84 3.4. Policy Component................................................................................................ 86 3.5. Technical Services................................................................................................ 95 3.6. Contracts and Grants ............................................................................................ 96 3.7. Financial and Economic Analysis ........................................................................ 97 3.8. Program Planning................................................................................................. 97 3.8.1. M&E............................................................................................................. 97 3.8.2. Environment ................................................................................................. 97 3.8.3. Internal Information Management................................................................ 98 4. Indicators ...................................................................................................................... 98 4.1. Realized Impact on Key Indicators ...................................................................... 98 4.2. Anticipated