year 1 work plan

December 21, 2016 This publication was produced for review by the United States Agency for International Development. It was prepared by Chemonics International.

High Value Agriculture Activity (HVAA)

YEAR 1 WORK PLAN NOVEMBER 21, 2016 – SEPTEMBER 30, 2017

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.

USAID HIGH VALUE AGRICULTURE ACTIVITY (HVAA)

YEAR 1 WORK PLAN NOVEMBER 21, 2016 – SEPTEMBER 30, 2017 Prime Contractor: Chemonics International, Inc. http://www.chemonics.com/ Partners: AGROinform SSG Advisors Field Glass Communications Contract No.AID-117-C-17-00001

http://www.chemonics.com/

HVAA YEAR 1 WORK PLAN

CONTENTS

ACRONYMS .................................................................................................... 5

BACKGROUND ............................................................................................... 7

PROJECT OVERVIEW .................................................................................... 9

Project Objectives .................................................................................................. 9

Project Guiding Principles ................................................................................... 10

Project Organization ............................................................................................ 11

Work Planning Process ....................................................................................... 13

DETAILED WORK PLAN BY OBJECTIVE ................................................... 14

Objective 1: Expand and strengthen linkages to domestic, regional and international markets for targeted value chains ................................................ 14

Objective 2: Improve productivity, post-harvest handling and private sector capacity to comply with EU and international standards in targeted value chains .................................................................................................................... 16

Sub-objective 2.1: Improve adoption of innovative technologies and agricultural practices in targeted value chains ....................................................................... 17

Sub-objective 2.2: Improve private sector compliance with international/EU food/quality standards ......................................................................................... 18

Objective 3: Strengthen capacities of member-based groups (producer groups, Water User Associations (WUAs), and industry associations) to serve their members in targeted value chains .................................................. 19

Objective 4: Improve the enabling environment leading to increased investments and an improved workforce in key value chains ......................... 24

Sub-objective 4.1: Increase private sector linkages with the education/research sector, leading to a competitive workforce in targeted value chains ................... 25

Sub-objective 4.2: Increase investments and establish PPPs to address value chain gaps........................................................................................................... 27

Sub-objective 4.3: Improve the policy and enabling environment for selected value chains ........................................................................................................ 28

CROSS-CUTTING ACTIVITIES TO SUPPORT IMPLEMENTATION ........... 30

Inclusive development ......................................................................................... 30

Environmental Compliance ................................................................................. 32

Agricultural Innovation and Technology Transfer Fund (AITTF) ..................... 32

Communications .................................................................................................. 33

VALUE CHAIN SELECTION METHODOLOGY ............................................ 36

MONITORING AND EVALUATION (M&E) ................................................... 38

Approach to Monitoring and Evaluation ............................................................ 38

Plan for Data Collection, Analysis, Review, and Reporting ............................. 38

Data Quality Assurance & Standards ................................................................. 39

Inclusive Development Considerations ............................................................. 40

Financial and Administrative Systems ............................................................... 41

HVAA YEAR 1 WORK PLAN – 5

ACRONYMS ACED Agricultural Competitiveness and Enterprise Development (previous USAID HVA activity) ACSA National Agency for Rural Development AITTF Agricultural Innovation and Technology Transfer Fund ANSA National Food Safety Agency APESM Table Grape Producers Export Association BACIFERA Berries of Moldova (association) BDS Business Development Services BSP Business Service Provider CEDA NGO Centre for Entrepreneurial Education CIS Commonwealth of Independent States OR Centralized Irrigation

System CISTA (Czech) Central Institute for Supervising and Testing in Agriculture COP Chief of Party COR Contracting Officer's Representative DCFTA Deep and Comprehensive Free Trade Agreement (with the EU) DCN Document Control Number DO Development Objective EBRD European Bank for Reconstruction and Development EIB European Investment Bank EU European Union GAP Good Agricultural Practice GHP Good Hygienic Practice GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GlobalGAP Global Good Agricultural Practice (voluntary standard managed by FoodPlus) GMP Good Manufacturing Practices GUC Grants Under Contract HACCP Hazard Analysis and Critical Control Points HVA High Value Agriculture HVAA High Value Agriculture Activity ICT Information Communication Technology IEE Initial Environmental Examination IFAD International Fund for Agricultural Development IFS International Featured Standard IPARD Pre-accession Support for Rural Development IPM Integrated Pest Management IQF Individual Quick Freezing ISO International Organization for Standardization KKA KulturKontakt Austria LED Foundation Liechtenstein Development Service LGBTI lesbian, gay, bisexual, trans, and/or intersex LOP Life of Project M&E Monitoring and Evaluation MAC-P Moldova Agriculture Competitiveness Project (World Bank) MAFI Ministry of Agriculture and Food Industry MAP Medicinal and Aromatic Plants MCC Millennium Challenge Corporation MIEPO Moldovan Investment and Export Promotion Organization MOE Ministry of Economy MOU Memorandum of Understanding NGO Non-governmental Organization PDO Protected Designation of Origin PERSUAP Pesticide Evaluation Report and Safer Use Action Plan PGI Protected Geographical Indication PHH post-harvest handling PIRS Performance Indicator Reference Sheet PMP Performance Monitoring Plan PMU Project Management Unit

HVAA YEAR 1 WORK PLAN– 6

PPP Public Private Partnership PRA Pest Risk Analysis RFP Request for Proposal RPA Rapid Partnership Appraisal SDA Sustainable Development Account SME Small and Medium Enterprise SOQ Seal of Quality STEP SSG's Sustainable, Transparent, Effective Partnership STTA Short-Term Technical Assistance TCN Third Country National TOT Training of Trainers TSG Traditional Specialty Guaranteed USAID United States Agency for International Development USD United States Dollar USG United States Government VET Vocational Education Training WAN Women in Agriculture Development WFD Work Force Development WUA Water Users Association


BACKGROUND Agriculture is a driving force in Moldova’s economy, contributing to 45 percent of exports and more than 27 percent of the labor force; but recent events — including the $1 billion bank heist in 2015, the devaluation of the leu, and Russia’s ban on Moldovan fruit imports — have had ripple effects throughout the economy. Five government turnovers in the last four years, corruption, vested bureaucratic interests, and ongoing geopolitical tensions related to Transnistria, all contribute to a shaky investment climate and inhibit Moldova’s economic development. Challenges to market access, productivity, member-based group capacity, and the enabling environment impede the growth of the High Value Agriculture (HVA) sector. Market access. Russia’s ban on imports of Moldovan apples, cherries, and other fruit dealt a blow to producers accustomed to Russian buyers’ willingness to purchase low-grade products, familiar logistics, and convenient payment terms. The shifting trade dynamics compel Moldova’s more entrepreneurial producers to diversify and alter production, post-harvest, and marketing practices in line with the European Union (EU) buyers’ more stringent quality, quantity, traceability, and price requirements. Complicating matters, however, is market saturation in the EU for some HVA products such as apples from Poland, which successfully pivoted its exports to the EU after suffering its own Russian embargo. Domestically, producers and processors face stiff competition from Turkey’s longer growing season for tomatoes and cucumbers and the EU’s more efficiently produced imports, like berries from Greece and Italy. Productivity. Moldova’s HVA production is largely driven by traditional markets and practices rather than by capitalizing on strategic advantages such as its fertile soil, low labor costs, as well as the recent investments in irrigation systems. The dominance of small farms (averaging 2.5 hectares), insufficient knowledge of modern farm and business management practices, and lack of financing for new technologies — especially in-demand plant varieties and modern post-harvest and cold chain infrastructure — impede the competitiveness of the HVA sector. These challenges make it particularly critical to leverage donor investments in Moldova’s irrigation systems; scale up adoption of newly introduced technologies such as Kym Green Bush canopies for cherry production; increase cultivation of modern varieties in products like plums and cherries; and promote use of intensive cultivation methods for berries and vegetables. Member-based group capacity. Moldova is home to several agricultural industry associations, including the Union of Agricultural Producers Associations, Moldova Fruct, and product-specific associations such as the berry association BACIFERA. These organizations have the potential to drive sector upgrades and policy changes but require further skills in market research, public outreach, and fundraising to stay viable. With only 45 formal producer organizations, substantial opportunities exist to strengthen cooperation among farmers to achieve market integration and economies of scale. Formed with intensive donor support, water user associations (WUAs) require significant further assistance in technical aspects of irrigation and organizational and financial management. Once WUAs and other groups are able to demonstrate the potential of infrastructure investments and cooperation to drive agricultural incomes, they will become truly sustainable. Enabling environment. Moldova’s enabling environment for HVA suffers from burdensome administrative processes, insufficient transparency, and low market


orientation. To transform HVA, Moldova needs to develop and implement policies that create incentives for the emergence of producer organizations, establish mechanisms and systems to guarantee food safety and phytosanitary health of commodities, and encourage investments. Yet it also needs to streamline procedures and permissive acts related to the HVA sector, such as export/import certificates and conformity certificates, which provide opportunities for corruption and disincentives for compliance due to their complexity. Other factors that weaken the enabling environment include limited availability and weak capacity of extension services, testing facilities, and agricultural technical schools or research institutions, many of which are severely underfunded. Developing a workforce whose skills match the needs of the private sector and improving HVA competitiveness would go a long way toward curbing the strong tide of out-migration that is decimating Moldova’s rural areas.


PROJECT OVERVIEW Chemonics International and our partners AGROinform, Field Glass Communications, and SSG (see Table 1), are pleased to present USAID with the first year and life-of-project work plan for the High Value Agriculture Activity (HVAA) in Moldova. A five year, $21 million agricultural and agribusiness development program, HVAA will aim to further stimulate the transformation of the Moldovan high-value agricultural (HVA) sector into an engine of economic growth for the country leading to improved competitiveness and higher living standards for rural Moldovans in the long term. USAID’s $5.7 million Agriculture Innovation and Technology Transfer Fund (AITTF) will use grants to catalyze private and public investments across all project objectives. The HVAA project is initially working in four value chains previously assisted by USAID activities, including apples, table grapes, stone fruits, and extended season vegetables produced in greenhouses. In addition, the project is assessing additional value chains including berries (namely raspberries and strawberries); nuts (namely almonds and hazelnuts); medicinal and aromatic plants (MAP) and essential oils; honey; the organic HVA value chain; tree fruit, grape, and berry nursery stock, and potentially open field vegetables (such as fresh greens, and cucumbers and tomatoes for processing). Table 1. Consortium partners Name Role AGROinform Key local partner with a head office in Chisinau and 15 regional

offices will help deliver targeted training, outreach, production and post-harvest support as well as group capacity development.

SSG Advisors Short-term technical support to conduct a rapid partnership appraisal to identify strategic agriculture and Public Private Partnership (PPP) opportunities in water service delivery, technology and equipment, finance, and ICT; train project staff on PPP lifecycle from conceptualization through partnership formation, due diligence, developing memoranda of understanding, development, and execution.

Field Glass Communications

Recurring short-term technical support to develop project communications strategy; advise on branding, marketing, and firm selection in target markets; support communications around seal of quality promotion; and assist advocacy efforts.

Project Objectives The objectives of the High Value Agriculture Activity (HVAA) are to:

1. Expand trade and strengthen linkages to domestic, regional and international markets for targeted value chains;

2. Improve productivity, post-harvest handling and private sector capacity to comply with European and international standards in targeted value chains;

3. Increase capacities of member-based groups (producer groups, Water User Associations (WUAs) and industry associations) to serve their members in targeted value chains;

4. Improve the enabling environment leading to increased investments and an improved workforce in key value chains.


Project Guiding Principles Our strategy to enhance the competitiveness of firms within the selected value chains centers on adhering to the “quadruple bottom line” (Figure 1) – the prongs of sustainability that guide out strategy.

Figure 1. Quadruple-bottom line approach

Economic sustainability. By linking buyers to producers/producer organizations/ associations to meet their requirements, we will bolster HVA actors’ capacity to address inefficiencies, improve product quality, and execute sales transactions. Assisted producers and firms will gain practical experience engaging buyers in target markets, which will expand the flow of information across target value chains of buyer purchase criteria and price points and help ensure that our approach is competitiveness-driven. By using a market-led value chain approach to forging deals and addressing the bottlenecks that inhibit them, we will enhance HVA producers’ and firms’ flexibility to respond to new opportunities and changing conditions and ensure interventions are private sector-driven and -owned. Institutional sustainability. Relying on market facilitation rather than direct provision, we will work through existing Moldovan commercial, nongovernmental, and public institutions to implement our activities to avoid crowding out local actors. For example, we will work through local business service providers (BSPs) to provide technical assistance in food safety and certifications, business plan development, branding and marketing, and market information. Where local services are weak, we will facilitate their emergence. We will use AITTF grant investments and PPPs to facilitate lasting vertical and horizontal linkages among local actors, which will avail


new resources and technologies, allowing us to facilitate/support key infrastructure investments. Social sustainability. All activities will integrate local context and priorities, including mainstreaming considerations related to gender, youth, persons with disabilities, LGBTI persons, and vulnerable communities. To inform our approach, we will update ACED’s gender assessment to consider and develop strategies to overcome a broader range of social constraints to participation. We will scale up successful initiatives, such as the Women’s Agriculture Networks currently supported by AGROinform, to strengthen networking and mentoring among female producers and business owners. We will also leverage initiatives by other donors to help create youth employment opportunities by ensuring that workforce programs provide training in the latest technologies and marketable skills demanded by industry. Environmental sustainability. Our approach prioritizes green opportunities, including climate-smart agricultural practices, energy efficient greenhouses, energy and water efficient irrigation systems, good agricultural practices to improve environmental management, minimize potential environmental degradation and adverse effects on population health. Our approach for integrating these guiding principles will rely on proven USAID and world practices in value chain and market systems approaches, which are integrated and adapted to the Moldovan context. Our approach recognizes the limitations of strategies that seek to address value chain constraints in isolation without considering the larger system – in particular the input and finance provision, the role of education, research and extension, the general business environment, and the interplay between market system actors. Our assistance strategy targets not only the value chain actors directly engaged in business transactions, but also participants from supporting organizations, such as producer groups, industry associations, government institutions, and business service providers (BSPs). Our goal is to develop sustainable agricultural value chains, which is based on integrating the multidimensional concepts of sustainability and value added along the four dimensions: economic, social, environmental, and institutional. Project Organization HVAA has an office in Chisinau, which is expected to be staffed by nineteen (19) full-time staff (Figure 2.). As of December 21, 2016, HVAA has successfully on-boarded staff for all of the full-time positions with the exceptions of Environmental Specialist, Grants Specialist, Grants Assistant, and Accountant. A candidate has been identified for the Accountant position, who is expected to join the team in January of 2017. The remaining positions are expected to be staffed during the first quarter of 2017.


Figure 2. HVAA organizational chart With AGROinform’s fifteen (15) regional offices, HVAA is well positioned to provide strong geographic outreach (see Figure 3).

Figure 3. AGROinform's regional offices in Moldova. The head office is located in Chisinau.


Work Planning Process The process for developing this work plan was designed to meet an ambitious 30-day deadline while actively involving the USAID COR, stakeholders and local staff to the maximum extent possible. As per the prime contract, the HVAA year one work plan would provide detail through the end of the next U.S. fiscal year; therefore, this plan covers the period from contract execution (November 21, 2016) through September 30, 2017. It is primarily a plan for year one, but summary information for subsequent years has been listed to indicate how activities will lead to results. The COP and startup team from Chemonics home office arrived in Moldova on Tuesday, December 6. Available staff (as discussed above) were on-boarded on Monday, December 12. A workshop was conducted on Tuesday, December 13 to begin teambuilding and identify information that needed to be updated/validated in order to inform the work plan. Wednesday and Thursday were spent developing draft Gantt charts for the project’s four main objectives, with staff working across teams. A second workshop was held on Friday to present the draft documents. The project’s COR attended both workshops and provided valuable context and information. This initial work plan is considered a “living document,” and, if necessary and based on discussions with the COR, will be verified and revised as actual work commences. For example, at least two additional value chains will be added during the first quarter, which is likely to trigger some adjustments. This work plan presents a detailed work plan by objective.


DETAILED WORK PLAN BY OBJECTIVE Objective 1: Expand and strengthen linkages to domestic, regional and international markets for targeted value chains With trade restrictions imposed by Russia and declining purchasing power of CIS countries, Moldovan farmers need to diversify into new markets. HVAA will assist Moldova’s HVA actors to capture new market opportunities in the EU created by the signing of the DCFTA, build on the groundwork laid by the previous USAID HVA Activity (ACED) in Asian and Northern African markets, and improve their ability to compete with imports. New, more profitable market segments will be explored in the traditional market of the Russian Federation, such as regional retailers. To generate trade linkages, HVAA will use multiple tools, such as inward buyer missions, trade missions, international fairs, and engagement of industry insiders in the target markets as sales agents. We will also build capacity of local BDS providers in international food safety and quality standards, who will in turn provide advisory support to producers to meet those standards. Grants and PPPs will strengthen vertical and horizontal integration so that lead firms, producer groups, input suppliers, traders, BSPs, associations, and extension services have access to needed skills, technologies, and market data. Activity 1.1: Conduct value chain selection assessment to identify new crops to be supported by HVAA Starting immediately in January, we will conduct value chain selection assessments, including value chain/sector analysis, to inform selection of additional priority value chains to be supported under HVAA. The project will continue working in existing value chains (apples, table grapes, stone fruits, and vegetables under greenhouses). The methodology for selecting and prioritizing additional value chains reflects our quadruple bottom line discipline for enhancing the competitiveness of HVA value chains. The value chain selection methodology will be pre-approved by USAID. The value chain analyses will include rapid sector analysis to inform value chain selection. Following the selection of the priority new value chains, we will conduct more detailed value chain and end market analyses. The identified key market requirements, the constraints in meeting them by the value chain actors, and upgrade interventions required will be discussed at value chain workshops. Active participation of relevant industry associations will be sought during all stages of value chain analysis including the stage for identifying areas for priority interventions. Activity 1.2: Update value chain marketing plans for existing value chains (apples, table grapes, greenhouse vegetables) Through trade missions in Sweden and Egypt, we will update end-market information for the Baltic/Nordic and North Africa regions to inform HVAA interventions in the existing value chains. The collected information from trade fairs will serve as a foundation for identifying priority marketing interventions with industry stakeholders during value chain development workshops, which are planned around September 2017.


Activity 1.3: Design and implement sector-level branding campaigns in target markets HVAA, working closely with the Moldovan Investment and Export Promotion Organization (MIEPO), the Ministry of Agriculture and Food Industry (MAFI), and industry associations, with assistance from HVAA subcontractor Field Glass Communications, will oversee design and implementation of a holistic HVA marketing strategy to increase awareness of international buyers about Moldovan value chains. This will support Moldova’s ongoing program for international market promotion and develop complementary subsector sub-brands. HVAA will also support associations and firms to develop materials aligned with the sector brand that encourage international buyers to access products, such as country stands for trade fairs, market guides, marketing materials in multiple languages, and up-to-date websites reflecting the brand. Activity 1.4: Facilitate export market contracts in target export markets To introduce the Moldovan exporters to international buyers, HVAA will support, in coordination with MIEPO and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), country stands under the “Moldova – taste makes the difference” umbrella brand at InterFood Ural, SIAL Shanghai, WorldFood Moscow, and IndAgra Bucharest trade fairs. Both fresh and processed products will be promoted, based on the opportunities offered by each specific market. HVAA will pilot the use of sales agents in target markets working under performance-based contracts as an innovative model to create leads for Moldovan firms. The sales agents will be identified during the trade missions and the trade fairs. As Moldovan fresh produce exports to several countries from Asia and North Africa is blocked on phytosanitary grounds, HVAA will support the National Food Safety Agency (ANSA) in developing Pest Risk Analyses for major exported crops. The identification of target markets will be carried out jointly with the industry associations. Activity 1.5: Improve market linkages, knowledge and use of market information To ensure we remain market/demand driven, HVAA will regularly organize events where potential buyers of HVAA products, such as supermarkets and processors, can meet with producers, including WUA members, to discuss requirements for quality and packaging as well as contractual terms and conditions. We will also utilize ICT solutions for information exchange. Currently, Moldova Fruct Association uses emails and regular meetings with its members to disseminate information regarding in-demand fruit varieties and packaging required for particular buyers. HVAA will formalize information channels with ICT solutions and extend to other associations active in targeted value chains for better linkages between buyers and producers. HVAA will also support the organization of the Fruit Business Conference held annually by Moldova Fruct Association by covering the cost of international experts, and will promote this event as a model to be followed by other industry associations as an effective way of communicating market information and establishing market linkages. Activity 1.6: Develop a Seal of Quality (SOQ) program HVAA will support the establishment of a Seal of Quality (SOQ) program within Moldova Fruct, with the aim to improve the quality of products exported from Moldova, to provide greater assurance to consumers about the quality of Moldovan


products, and to build on the already successful 'Moldova Taste Makes the Difference' brand. We will arrange a study tour to an association that already has a successful SOQ program in place, such as Kiwifruit in Italy, arranged to build awareness of best practices in SOQ development. HVAA will then guide apple exporters in setting clear quality standards for each product to be certified, as well as in verification procedures including physical inspection of packinghouses and chemical and microbiological testing of fruits. We will train select Moldova Fruct staff to become internal inspectors for internal quality assurance. HVAA will use grants to support the members of the SOQ program to promote their brand in local and export markets. We expect the Seal to drive association membership, which will be a prerequisite for applying for it. Activity 1.7: Substitute imports with Moldovan products HVAA will build on earlier efforts to expand the range and volume of locally sourced agricultural products in local supermarkets. The main issues that local supermarkets experience with local products is the variable quality of products (especially grading) and packaging. Through AITTF, we will support producer groups to improve packaging of their products to meet supermarket requirements. To establish long-term contractual relations between supermarkets and producers, HVAA will liaise with all local retailers to organize meetings with selected producers and producer groups to discuss quality and packaging needs and contractual terms and conditions; special attention will be paid to producers from the WUAs created through the MCC Compact. The meetings will stress the benefits of contract sales based on relationships of trust, including price stability and premiums. Variable produce quality and poor packaging, the major constraints in expanding retail sales, will be addressed through HVAA training activities, while grants to producer groups and industry associations will enable them to organize reliable supply to supermarkets with quality produce and to hold campaigns to promote healthy food and drive produce sales. HVAA will work with supermarkets to promote domestic products, focusing on value, freshness, safety, and convenience to distinguish them from produce sold at open air markets. The Trade and Marketing Specialist will provide technical support to supermarkets to upgrade their produce displays in order to drive sales. Objective 2: Improve productivity, post-harvest handling and private sector capacity to comply with EU and international standards in targeted value chains Moldova's rich, fertile soils and the temperate climate give it an equal bio-climatic agricultural potential to Germany. This potential has not been achieved thus far due to the use of traditional production methods (without irrigation), lack of agricultural machinery, and lack of adequate post-harvest care. By addressing these constraints, Moldovan producers could substantially increase exports and reduce imports. HVAA technical assistance under Objective 2 will improve productivity, PHH, and local capacity to comply with international standards in response to market opportunities identified under Objective 1. HVAA will accelerate the modernization of the Moldovan HVA sector, taking advantage of the significant investments in irrigation and post-harvest infrastructure and emerging business linkages while introducing commercial, environmentally sustainable farming systems that increase yields and decrease production costs. Working with and through WUAs, agro-input suppliers, BDS providers, and agriculture technical institutes, HVAA will enable farmers to access and profitably apply inputs and modern production and post-harvest handling (PHH) practices in accordance with EU and international standards.


We will utilize AGROinform and other BDS providers (rather than conducting direct training in the field), to ensure the sustainable delivery of information to producers. However, initially, HVAA will provide intensive Training of Trainers (ToTs) and closely guide AGROinform and other BDS to ensure strong quality of services, confidence in service providers, and to safeguard the project’s reputation. Sub-objective 2.1: Improve adoption of innovative technologies and agricultural practices in targeted value chains Activity 2.1.1: Increase adoption of new production and PHH technologies and management practices Through AGROinform, study tours, and targeted activities funded though AITTF, HVAA will assist producers to introduce and scale up new production technologies and management practices, including those previously introduced by ACED. The training materials developed by the previous USAID HVA activity will be updated with new technologies and practices to address end-market needs with climate-smart solutions such as water- and energy-efficient irrigation systems, efficient use of organic and inorganic fertilizers, IPM, and sustainable land management practices. HVAA will develop crop calendars, training plans, and training materials for new priority crops. AGROinform will lead the season-long training program that will cover the initial value chains as well as new priority value chains. Crop-specific training and demonstrations will coincide with crop calendars. Study tours to the Netherlands and Italy are planned for Moldovan fruit and grape nurseries to observe best production and management technologies and practices, as well as the sub-sector organization, including the production and distribution of virus-free plants. A study tour to Spain is scheduled for producers and potential investors in apricot operations, a fruit with increased demand on both EU and Russian markets, primarily due to the recent release of multiple new appealing apricot varieties. With support from international short-term technical assistance (STTA), an Apricot Technological Guide will be developed that will cover all major areas: varieties, soil and climate requirements, canopy management, crop nutrition, IPM, harvest and post-harvest handling. HVAA will liaise with private sector partners, including international technology providers, to co-finance activities such as demonstrations, field days, seminars, and short-term consultancies to scale up adoption of proven technologies by Moldovan producers. A major role in building these alliances for the emerging crops will be played by the crop forums, one-day events that will include presentations on wide varieties of subjects: market and variety trends, production and post-harvest solutions, as well as lessons learned by successful pilot operations in Moldova and the region. In Year 1, HVAA will hold such forums for sour cherries, sweet cherries, and apricots, and international experts will be contracted as key speakers through STTA. Before the forum, the STTAs will be engaged in visits to the leading Moldovan producers to observe the current practices and recommend and explain new technologies and practices. Grants with catalytic and demonstration effect will be provided by HVAA to offset the costs of pilot implementation of the technologies and practices to address major constraints in meeting end-market requirements. Activity 2.1.2: Promote and introduce new post-harvest handling (PHH) technologies and management practices HVAA will work with associations, producer groups, and firms to address value chain-specific needs in aggregation, PHH, packaging, cold chain management, and


transport. AITTF and access-to-finance activities will help offset the costs of needed upgrades. Investments in climate-smart drying and storage facilities, buy-off stations with pre-cooling equipment, and small-scale cooling chambers powered by renewable technologies will help producer groups comply with Hazard Analysis and Critical Control Points (HACCP) and other requirements while enabling them to exploit extended season sales opportunities. Other tasks include facilitating access to improved packaging and optimizing use of cold storage facilities. For example, modified cold storage facilities for apples could store berries as well. Activity 2.1.3: Increase adoption of new crop varieties in targeted value chains Varieties commonly grown in Moldova are old, low-yielding, and generally unsuitable for export to EU or other markets. HVAA will partner with local industry associations to collect information about potential new varieties that industry members want to test, and will assist the associations to submit a variety dossier to the State Commission for Variety Testing. Industry associations, nurseries and research institutes will be able to apply for AITTF grants to run trials of new varieties using the Commission’s approved methodology, as well as to establish sites to demonstrate the new varieties in combination with improved production technologies such as high tunnels and trellising systems. We will establish an MoU with the Commission to ensure mutual understanding and approval of the methodology. If a variety is proved suitable for Moldova and is high yielding, the association will request its inclusion in the National Variety Catalogue. To enable the sustainability of the proposed approach, HVAA will work with the industry associations to develop a fee-based funding mechanism for this new service for their members. Activity 2.1.4: Establish capacity to produce, test, and certify domestic, virus-free planting stock material for selected value chains HVAA will engage experts from resource partner Central Institute for Supervising and Testing in Agriculture (CISTA, Czech Republic) to assess and recommend strategies for production, testing, and certification of domestic, virus-free planting stock. The assessment will be followed by the development of a feasibility study for the establishment of a tissue culture laboratory at the Horticulture Research Institute or through a PPP with a private investor. This laboratory will produce the initial plants with certified virus-free status, and will supply them to local nurseries to establish joint mother stock plantations. HVAA will use the AITTF to establish the tissue culture laboratory and to help nurseries meet EU standards by supplying high-quality disease- and virus-free seedlings, including ensuring that procedures are in place for commercial propagation of protected varieties to comply with breeders’ rights and relevant international conventions. Sub-objective 2.2: Improve private sector compliance with international/EU food/quality standards Activity 2.2.1: Build the capacity of BSPs, associations, ANSA inspectors, and extension agents to deliver technical assistance in line with EU standards and market requirements Rather than providing technical assistance directly to firms and producer groups, HVAA will build in-country capacity to provide effective food safety and quality consulting services. Currently, few firms can provide training and consulting services on GlobalGAP (Good Agricultural Practice), which is essential to sell fresh fruits and vegetables to EU markets. The HVAA PHH and Food Safety Specialist will organize


a 4-day Training-of-Trainers seminar for BSPs, extension advisors, and industry associations that are interested in expanding their consulting services. Growers that are interested in launching implementation in 2017 will be invited to establish links with qualified BSPs. Following the seminar, HVAA will support the attendance of qualified BSP staff at the GlobalGAP Farm Assurer Workshop (Cologne, Germany) to become certified GlobalGAP advisors (subject to passing the mandatory examination). A similar process will be carried out for BSPs interested in including International Featured Standard (IFS) Food implementation advisory in their service portfolio (note: IFS is a standard that builds on HACCP/ISO 22000 requirements and is increasingly required to do business in the EU food sector). HVAA will expand support to HVA regarding the improvement of the official food control system, with focus on quality control and phytosanitary controls. Following the expected approval by the Government of the regulations for official control of the quality of fresh fruits and vegetables along the supply chain, HVAA will develop guidelines for ANSA inspectors regarding relevant quality standards, sampling and quality control procedures, and will support ANSA in organization of the training for ANSA inspectors. HVAA will also support ANSA in updating the phytosanitary control sheets developed by the previous USAID HVA activity, to reflect the new pests and additional requirements stemming from Pest Risk Analyses (PRA) carried out to enter Asian and North Africa markets. Activity 2.2.2: Increase private sector capacity for product certification and standardization in line with EU standards and market requirements Complementing the activities of the European Bank for Reconstruction and Development (EBRD) Business Advisory Services Program, HVAA will provide BSPs, industry associations, producer groups, and extension agents with appropriate training and information and help them raise awareness of in-demand certifications through strategic communications outreach to primary producers. Using AITTF or SAF, we will provide technical assistance through BSPs to assist producer groups and firms to meet requirements and equip industry associations to provide referrals to BSPs for help meeting voluntary standards. Over the life of project, the HVAA, with local BSP partners, will offer training and seminars to support implementation of applicable HACCP, GAP, Good Hygienic Practice (GHP), Good Manufacturing Practices, traceability, and compliance with environmental standards. Grant funds will be used to catalyze investments in production and processing upgrades in line with buyer preferences and international quality and food safety standards, with focus on producer groups and growers from WUAs established by MCC COMPACT. Objective 3: Strengthen capacities of member-based groups (producer groups, Water User Associations (WUAs), and industry associations) to serve their members in targeted value chains Member-based groups (producer groups, Water Users Associations (WUAs), and industry associations) have important roles in agricultural value chains to increase coordination among members and between other stakeholders; improve the management of shared resources (such as irrigation); and provide relevant services including access to technical information and training, access to inputs, marketing support, and policy advocacy. Importantly, member-based groups are uniquely positioned to enhance the bargaining power of farmers to secure better contracts and prices. In Moldova, these groups have varied levels of sophistication and different issues that constrain their effectiveness to serve their members. Our approach to


strengthen them will be tailored to build on their strengths while addressing those constraints. Activities under this objective have been planned to foster strong, networked, democratic associations that deliver value to members; support access to better paying markets, market information, technologies, and training on meeting quality requirements; realize cost savings through aggregated demand for inputs; provide financial and other services necessary to invest in upgrades; and advocate effectively for evidence-based policy reforms. With improvements in the quality, range and relevance of services provided, we expect to see increased participation and membership in member-based groups. Our approach begins with organizational capacity assessments and business planning with a goal of near-term financial and operational sustainability and long-term growth. Because access to affordable irrigation is a necessary condition for HVA sector competitiveness, we will prioritize assistance to the 11 WUAs created through the MCC Compact. We have planned activities that will help WUAs become successful and sustainable, as will be evidenced in their ability to maintain and expand irrigation and other technical services to their members Activity 3.1: Increase organizational and management capacity of industry associations Strong, networked, and transparent associations are essential to commercializing Moldova’s HVA sector. Our approach will start with organizational capacity assessments starting with eleven Water User Associations (WUAs) and key industry associations. We will implement a systematic approach to analyze organizational performance of member-based groups and identify fundamental causes of performance gaps and areas for potential improvement. With this information, we will work with each organization to develop tailored plans to improve overall performance in key areas pertinent to achieving project objectives related to sales, marketing, policy advocacy, design and delivery of services. Where common weaknesses emerge, we will engage local BSPs to deliver training. At the same time, will also arrange targeted consultancies to address individual needs. As private sector interest and champions emerge, we will also facilitate establishment of new associations, such as for vegetable producers. Activity 3.2: Create partnerships between local industry associations and EU counterpart associations, leading to improved management practices We will help connect Moldovan associations with exemplary associations in the EU, which can model best member-based organizational practices to Moldovan associations. During June 2017, we plan to organize a study tour to the Czech Republic at the Czech Union of Fruit Growers to learn from their experiences in association management, fundraising, member services, and advocacy. Given that the Czech Union of Fruit Growers is composed of several special interest organizational units, including the Czech Nursery Association, we expect the visit to lay the groundwork for establishment of a Moldova association of producers of fruit seedlings and/or Moldova association of vegetable seedlings. Currently, only an association of nut, grapevine, and berry seedling producers exists in Moldova. This is important, as Moldova Fruct lacks the capacity to address issues affecting nurseries, such as introduction of new varieties. Best practices in association management will be communicated to key industry associations and members using various communication tools to help forge improvements in member-based group services.


Activity 3.3: Develop strategic business plans for sustainable growth and sustainable financing mechanisms As market opportunities are identified and association leaders are exposed to EU association management best practices, ideas/needs for technical assistance, revenue generation and alternative funding streams will surface. We will subcontract local management consulting firms such as Business Intelligence Services, CBS-AXA, Proconsulting SRL, and/or Efficient Consulting SRL to provide strategic business planning support to associations. Strategic business plans will focus on future programmatic activities as well as financial growth and sustainability, including development of fee-based member services; membership fees, drives, and targets; marketing; sponsorships; and other untapped revenue sources. We will provide advice and assist the associations in accessing external finance (such as donor grants or commercial loans) for activities that can clearly demonstrate a return on investment Activity 3.4: Help industry associations deliver a broader range of higher quality services Armed with market demand intelligence and strategic business plans for financial sustainability, we will assist industry associations to deliver value to members through new services. HVAA will support industry associations to develop effective export promotion services — including through industry insider sales agents — to raise funds for associations and lead to market diversification, increased exports, and higher returns to members. Moldova Fruct is interested in jointly developing an export agency to inform producers of export market opportunities and requirements, provide assistance to meet them, and facilitate exports through aggregation, packaging, and logistical services for members that are expected to lower the costs of packaging, transportation, and aggregation. With AITTF and technical assistance, we also plan support to the Table Grape Growers and Exporters Association of Moldova (APESM) to establish a vineyard maintenance service for table grape producers in the form of mobile groups of highly qualified field workers for execution of manual operations in vineyards. With our support, APESM will be able to create 3 pilot mobile groups based in each Moldovan table grape vineyard region (South, South-East and Central). Creation of such mobile groups will permit to: (1) conduct qualitative manual technological operations such as winter pruning, green operations in the summer period (up to 5), harvesting and final packing of the grapes in the boxes; (2) solve problems related to staff fluctuation; (3) allow small and medium farmers to receive additional work force in-time to conduct manual operations. The aforementioned improvements to production will cut the overall maintenance costs through economies of scale, increase the quantity and quality of the produced grapes, and to conduct high-qualitative final packing operations in boxes before transportation to the buyer. Such embedded services, including access to working capital through partnerships with banks, will result in increased product quality and market penetration and provide additional funding sources that will help make associations self-sustainable. Activity 3.5: Increase the organizational and management capacity of producer groups Constraints to market access include small production volume and lack of cooperation, which limit the formation of homogenous commercial lots needed for consistent supplies of desired volumes. If properly managed, producer groups can


increase sales, prices, and incomes for farmers via better negotiating positions. Under HVAA oversight, and building on its long experience working with producer groups in Moldova, AGROinform will lead planned activities to strengthen producer groups’ organizational and management capacity, leveraging current MAC-P activities with Promo Terra and MEGA. The number of producer groups will be expanded and strengthened, with emphasis on approximately 40 newly created groups. With a market orientation, AGROinform will lead information sessions on the benefits of group membership (such as economies of scale, cheaper inputs, and market access) and train interested farmers on group management and structure, democratic decision-making processes, and financial management. AGROinform will also deliver training focused on building business relationships; identifying and approaching potential buyers; engaging in timely correspondence and contract negotiation; and meeting contract terms such as timeliness, quality, and quantity. We know that not all producer groups are equally knowledgeable and that training alone will not strengthen them. We will reinforce business training with technical assistance and mentorship to address real-life scenarios and help groups achieve their goals. We also plan to organize a study tour to Poland or Hungary to showcase a successful model of producer groups that drive farmers’ profitability and sales. Our goal will be to strengthen existing cooperatives to ensure we have exemplary cooperatives that can be models to other informal or formal producer groups in Moldova. Trust in the cooperative model will be built through a supportive and facilitative approach, which will include training and on-going assistance. Activity 3.6: Help producer groups access new technologies, services, and markets Based on identified market demand and in addition to organizational, managerial, and technical support, HVAA will support member-based groups to access finance (for example, MAC-P, IFAD, and Moldova Orchards, 2KR) and provide AITTF grants to facilitate introduction of new climate-smart technologies, improve PHH facilities, expand irrigation systems, increase value-adding activities, improve packaging, and put food safety systems in place through implementation of GlobalGAP and HACCP. AITTF grants will also be used to provide initial financial support to improve producer group services, including aggregation, storage, transport, and marketing, which will make it easier for producers to access markets that require consistent volumes of higher-quality produce. During January to March 2017, HVAA will perform a feasibility study on potential contract farming projects for WUA members and/or other member groups and value chain drivers (such as fruit and vegetable processors) in open-field vegetable production for processing into juices or canned products. The goal is to increase utilization of valuable irrigation resources by identifying potential contract opportunities between WUA members (farmers and/or group of farmers) and fruit and vegetable processor (canneries, Individual Quick Freezing IQF producers and driers). Currently, Moldovan processors have a high demand for produce such as berries (strawberries, black currants, raspberries), sweet peppers, eggplant, vegetable marrow (zucchini), carrots, broccoli, cauliflower, asparagus and other crops, which are very suitable for growing in WUA regions under irrigation. For example, one production unit of Orhei-Vit cannery lacks at least 2,000 tons of tomatoes for processing each year. As vegetables for processing are harvested mechanically with special harvesters, there is less need for seasonal labor, which is in short supply, for harvesting. Our aim is to initiate at least two pilot contracting farming projects in Year


1. Should these be successful, we will support larger projects to increase the production of crops in WUA regions targeting processors. We will support such activities through the AITTF fund to help co-finance necessary harvesters, harvesting platforms, special cultivators, trailers, and other equipment to strengthen this value chain. Activity 3.7: Increase WUA's organizational and management capacity As broad access to affordable irrigation services underlies the country’s agricultural competitiveness, HVAA will prioritize assistance to the 11 MCC Compact WUAs in Year 1. To assess WUA capacity, we will collaborate with the Sustainable Development Account (SDA) to tailor our WUA Capacity Assessment Tool, which has been used successfully in Tajikistan, to the Moldovan context. It will enable HVAA to assess WUAs’ status and progress in governance, financial management, water scheduling and delivery, conflict resolution, organizational learning, sustainability, and gender sensitivity. This analysis will build on earlier assessments conducted through MCC Compact and provide a baseline for HVAA’s subsequent annual assessments to track WUA capacity improvements. This assessment will also guide us in the development of capacity building activities for WUAs, taking into account identified gaps and needs as well as the costs and benefits of our potential interventions in achieving project results. We will make sure we avoid overlap with other donor activities and will also seek to cooperate and leverage resources with SDA, the anticipated World Bank climate change project or other donor activities aimed at WUAs. In close collaboration with the SDA, we will initiate several activities to strengthen organizational and management capacities of WUAs to ensure they can provide relevant market-driven technical services to their members and generate adequate revenue to cover maintenance costs and facilitate utilization of irrigation systems for HVA. Our aim is to provide the needed support to increase utilization of irrigation systems for HVA. Below is an indicative list of possible activities which will be confirmed and prioritized in the coming months following OCA Assessment and consultation with relevant stakeholders. To strengthen organizational and management capacity, we will consider providing technical assistance to the WUA Administrative Council to improve their management capacities and conduct internal audits of WUAs to in order to build confidence of farmers in WUA management. Currently the WUA Auditing Commissions are weak in supervising the WUA financial activity and the members are not convinced that their money is correctly used in the WUA. We will also consider providing support to setup budgets and maintenance funds as currently the majority of WUAs lack systems to collect funds to maintain and rehabilitate irrigation systems. We will also consider assisting WUAs to develop effective models of pricing membership fee, water fees, drainage fees, crop budgets and develop different forms of service contracts, land consolidation and land rent. We also plan to provide continuous support for the WUA executive staff to provide members and non-members with information on lease or sale of land. This will include, as needed, training for the executive staff of the WUAs to be able to refer members to the appropriate resources for consultation on ownership of land, documentation of land ownership rights and leasing. HVAA will also consider providing training and assistance with annual review and updating of WUA strategic plans. This includes training in both WUA management, membership expansion, non-member relations, as well as the more technical decisions regarding spending and investment.


As our goal is to increase the utilization of irrigation systems for HVA, we will conduct training on HVA to WUA members based on their specific needs for market demand-driven technical assistance. AGROinform will provide most of this training. To ensure long term sustainability, we will also support the establishment of agriculture technology departments or assign production consultants with WUAs. We will also build capacity of WUAs to advocate for policy reform that is more conducive for the development and sustainability of WUAs. HVAA will play a facilitative role to support evidence-based decision making as opposed to being the driver of any policy reforms. Such initiatives would best be led through a Federation of WUAs hence HVA will work with SDA and WUAs to explore the possibility of establishing such an organization. Activity 3.8: Strengthen technical management of irrigation systems Rehabilitation of irrigation systems began late in the COMPACT project, leaving insufficient time for adequate support in systems maintenance and upkeep or to demonstrate the yield and income potential arising from irrigated agriculture. In close collaboration with the SDA, HVAA will take the lead in organizing training for the 10 WUAs with rehabilitated irrigation, which will cover the most efficient means of using existing irrigation systems (for small and large parcels, including mobile components of the system), use of water meters, and designing irrigation schemes. We also plan to support the Cahul WUA once the SDA rehabilitates its drainage systems. We will competitively select local service providers such as KB-Walkoma or Agrodor for Special Activity Fund (SAF) subcontracts to provide comprehensive technical support to WUAs based on their specific needs for market demand-driven technical assistance, irrigation system design, installation, and maintenance. To ensure long term environmental sustainability of irrigation systems, we will also support the adaption of Environmental and Social Management Plans in WUAs. Objective 4: Improve the enabling environment leading to increased investments and an improved workforce in key value chains In Moldova, there is a strong disconnect between education, research, and extension. Education and research do not respond to the needs of the private sector. Extension advisors thus largely rely on technologies that have been developed outside of Moldova and attempt to apply them in the Moldovan context. Under this objective, HVAA will forge stronger connections between research, education, and extension, while focusing on the needs of the private sector. We plan to facilitate the growth of a sustainable model for workforce development, test market demand-driven agricultural innovations, and transfer this new information to agricultural stakeholders (member-based organizations and producers). We will introduce and scale-up these innovations through the AITTF and PPPs. To improve the business enabling environment and respond to market opportunities, we will build the analytical and advocacy capacity of associations so they can take the lead in advocating for policy reform based on regulatory impact and cost-benefit analysis.


Sub-objective 4.1: Increase private sector linkages with the education/research sector, leading to a competitive workforce in targeted value chains Activity 4.1.1: Conduct workforce skills needs assessment in targeted value chains The HVAA Workforce Development Specialist will launch a workforce skills gap analysis focusing on skills required by the private sector and specific industry groups, such as the Moldova Fruct Association, Table Grape Association, Berry of Moldova Association, etc. We have planned to discuss the scope of the analysis with other key donors (including the World Bank, EU, and GIZ) to ensure that it builds on and complements their workforce development efforts. The focus will be on identifying skills that lead to economically sustainable training programs and high levels of certification and placement, with industry sponsorship and leadership of subsequent programs wherever possible. After we complete the draft gap analysis, it will be vetted with private sector representatives and appropriate ministries such as Ministry of Agriculture and Food Industry, Ministry of Education, before it is finalized. To ensure the gap analysis is not a one-time exercise, we plan to competitively select a local BSP, such as Magenta Consulting, AXA Management Consultant, Centre for Entrepreneurial Education (CEDA) NGO which performed a well-received skills gap analysis in the tourism and wine industry (Magenta Consulting LLC), agriculture and food industry (AXA Management LLC) sectors, so the analysis can be repeated biannually. The findings will be disseminated by organizing at least three public dissemination events through the country. Activity 4.1.2: Develop and implement new courses and other skills development programs to meet value chain workforce skills needs After the skills gap analysis, we will devise a workforce development plan with affordable, realistic, and actionable activities that forge stronger links among research, education institutions, and agribusinesses. For example, we will cooperate closely with the GIZ Structural Reform in Vocational Education and Training (VET) Project to implement a PPP in vocational education and training in which 75 percent of vocational training for apprentices would be conducted by a private firm and the remaining portion at a vocational school. To ensure that apprentices receive high-quality training, Mr. Stiopca will collaborate with GIZ to elaborate an efficient internship scheme, identify agri-companies interested in hosting interns, and train in-company mentors and VET school instructors in adult learning principles. For example, we plan to support a dual VET system at fruit and vegetable processor Alfa-Nistru in Soroca, Greenhouse Company in Falesti district, and the Agriculture School in Taul, where apprentices will be involved in the implementation of a food safety management system and greenhouse vegetable production. We will ensure that young apprentices gain the skills required by the private sector and increase the likelihood of securing long-term employment upon graduation. With support of Ag. University professors and extension consultants, didactical/training resources will be elaborated in order to cover identified knowledge and skills gaps resulting from the Gap Analysis. To attract youth to HVA, we will use AITTF funds to support initiatives such as ACSA’s development of farm schools based on a Polish model in which young farmers attend a hands-on agriculture school for one year to learn about fruit production, processing, and ecological farming, and strategically communicate these opportunities to youth and their families who influence decisions about their future. In this context, a study tour in Poland or Denmark will be organized with the main goal


to study workforce development programs. The in-company training program will be implemented at interested HVA companies’ sites or industrial association members (enterprises), and will provide training such as pruning of intensive orchards, pruning of table grape vineyards, or accounting and bookkeeping in HVA companies. We will encourage and support youth HVA enterprises to participate at national level exhibitions, organizing students’ scientific forums, career development events, agriculture competition events, agriculture innovation festivals, other communication platforms. Activity 4.1.3: Establish new educational, research, or agribusiness partnerships, leading to a more competitive workforce in targeted value chains We will review the status of the 45 demonstration sites supported by ACED and work to transform many into innovation hubs where stakeholders — research institutions, universities (such as the Agriculture University and Technical University), agricultural schools, technology and input suppliers (such as Irrigata Crops LLC, Agrimatco LLC, Eurplant LLC, Netafim LLC etc), agricultural producer groups and industry associations, and extension officers (including from AGROinform and ACSA) — would contribute skills, donate technology, and otherwise cost-share their operations. For example, we envision continuing to utilize the ACED-supported demonstration sites. One such site demonstrated the use of cover film (mulch) with irrigation in tomato production in Dubasari and Falesti. We propose that Technical University graduate students gain practical experience by collecting data on the impact of this technology on weed suppression, water conservation, and yields and prepare posters to communicate the results to farmers at field days. A PPP is a collaboration with the government of Lichtenstein-funded EdAgri Project, which supports Centers of Excellence such as the fledgling one at the Agriculture School in Taul establishing new demonstration sites at this specific school and other ones that will be identified. HVAA will help rally multi-stakeholder support and channel resources to the research and demonstration facility to showcase new technologies and improve the quality of training on topics such as greenhouse vegetable production, agricultural hybrids, and grafting of tomatoes partnering with input suppliers that want to partner in promoting new technologies and practices. Also, HVAA will encourage and support the initiation of farm research projects with participation of agricultural university and colleges students to help attract and retain workforce in the HVA research sector. Activity 4.1.4: Enhance the HVA Extension capacity of Ag. Colleges and trade schools as “innovation hubs” for local communities HVAA will forge synergies with other donors in the workforce development sector (Foundation Liechtenstein Development Service - LED, KulturKontakt Austria, GIZ), input suppliers (such as Agrodorsucess LLC, Agrimatco LLC, Europlants LLC), and research organizations, to establish new demonstration activities with a goal to demonstrate and disseminate new HVA technologies and practices in the region. Such sites will serve two objectives:

1. to demonstrate new practices to farmers during on-site training, and; 2. to serve as research and didactical tools for college students.

HVAA will build capacity of Agricultural colleges and trade schools to enable them to provide services related to HVA in the communities they are located in. Examples of such services include the provision of meteorological data to inform pest management decision making, preparation of technical bulletins, and facilitation of training activities.


Several studies have been performed,1 with support of other donors such as Foundation Liechtenstein Development Service (LED) and KulturKontakt Austria (KKA), to explore the possibility for initiating income generation activities at Agricultural VET and Colleges. HVAA will partner with other interested stakeholders to further explore this possibility, updating the compatibility with the actual normative frame, and initiating income generation activities at these educational institutions. Sub-objective 4.2: Increase investments and establish PPPs to address value chain gaps Activity 4.2.1: Facilitate private sector investments and PPPs to address value chain gaps including post-harvest infrastructure HVAA will start by organizing roundtables and workshops to improve horizontal cooperation in targeted value chains and identify a pipeline of viable value chain-focused investment opportunities that could be financed through donor infrastructure investment funds, credit lines, or potentially form partnerships with other domestic or international companies. A range of possible investment opportunities will be identified that can be financed though working capital, long-term debt, equity investments and source of capital active in Moldova (local and regional commercial and investment banks; regional and international equity funds; and donor lines of credit such as those offered by the European Investment Bank, IFAD, EBRD, and MAC-P. HVAA will inform eligible producer groups of available investment fund opportunities and assist them in the funding application process. HVAA will then organize a training of trainers for local BSPs on available financial products and loan accessing procedures. Through AGROinform and other BSPs, we will conduct training activities in business planning and farm accounting to make producers more financially literate and their business plans more bankable. Special focus will be given on building capacity of women’s agricultural networks in business planning and project development, to improve access to finance of rural women. Activity 4.2.2: Facilitate PPPs to address value chain gaps including post-harvest infrastructure We will start with a two-day workshop with core staff from HVAA focusing on the SSG's Sustainable, Transparent, Effective Partnership (STEP) methodology and partnership development, to ensure a common understanding of PPPs and how they are formed. We will review the pipeline of viable value chain-focused investment opportunities developed under activity B4.2.1: that could be viable PPPs. A range of possible PPP opportunities will be identified, including cold-storage infrastructure, production and virus-free planting materials, workforce development, research, and agribusiness partnerships. Using SSG’s STEP methodology, HVAA will develop a list of five to ten high-impact, high-probability investment opportunities. SSG will lead the effort to perform a Rapid Partnership Appraisal (RPA) to identify strategic partnerships. The final RPA report will contain 5-10 general partnership opportunities and 3-5 specific high-value partnership concepts that HVAA will focus on in the coming period. SSG 1 Foundation Liechtenstein Development Service (LED), KulturKontakt Austria (KKA). Studiu Analitic: Generarea si utilizarea resurselor extrabugetare de către instituţiile de învăţământ secundar profesional din Republica Moldova. Chisinau 2013


will then lead project staff and prospective PPP partners through one Partnership Development Process, which includes organizing and facilitating a partnership forum, conducting due diligence analysis for each partner in the partnership, producing a 3-5 page partnership concept paper, and drafting a Memorandum of Understanding for PPP partners. Activity 4.2.3: Build capacity of government institutions in PPPs Although the legal framework for PPPs is generally supportive, key government institutions, such as the Ministry of Economy, Ministry of Agriculture and Food Industry, the Agency for Public Property, and the National Council for PPP would benefit from further capacity building to strengthen the implementation framework rooted in the 2008 Law on Public Private Partnership. As PPPs are related to public interest and aim to achieve private and public benefits, it is extremely important, at the incipient stage, to establish good communication and cooperative relationships with the public authorities that involved in PPPs. The key public authority at the central level is Agency for Public Property, which coordinates the initiation of PPPs and approves feasibility studies for PPPs at the local level. Another relevant functional structure is the National Council for PPPs, which is created by the Government of Moldova to define the priorities and implementation strategies for PPPs in the Republic of Moldova. For local PPPs, the competent authorities are local councils of the villages, where PPPs are initiated. Resource partner Planet Partnerships will work to bolster the National Council’s capacity to manage contracts, leases, build-operate-transfer projects, and concessions, building on the work of the EU’s Twinning project in the non-agriculture sphere. In addition, Planet Partnerships will build capacity of national and local governments to identify, select, procure, and award PPPs based on international best practices. If required, HVAA will support the public partner, group of experts, other persons involved in PPPs establishment to conduct a feasibility study to demonstrate the opportunity for a PPP. It will refer to technical and economic justification of the PPP project, its main characteristics, identification and risk assessment (political, legal, financial and economic, environment), and other indicators.

Sub-objective 4.3: Improve the policy and enabling environment for selected value chains Activity 4.3.1: Build the lobbying/advocacy capacity of associations or member-based organizations in targeted sectors HVAA will build the capacity of associations, including WUAs, to identify key policy and regulatory issues, conduct regulatory impact and cost/benefit analyses, and to effectively advocate their policy positions. Through roundtables, workshops and other open dialogue platforms we will forge stronger linkages between various member-based groups, build trust and confidence required to form effective working relationships, with the aim to help stakeholders craft a common policy platform. For this purpose, HVAA will leverage AGROinform’s annual farmers’ cooperation conferences, which will contribute to stakeholders’ efforts to craft a common policy platform. In Year 2, HVAA will also organize a study tour to successful Polish agricultural associations learn about their advocacy methods and how they achieved strong linkages and effective public-private dialogues. We will also facilitate public-private dialogue in workshop formats where participants can openly and informally discuss challenges and reform needs to address existing policy constraints and improve the overall business environment in targeted value chains.


Activity 4.3.2: Eliminate, streamline, or simplify agricultural regulations and administrative procedures resulting in an improved enabling environment in targeted value chains. While we are building advocacy capacities of associations, we will be concurrently conducting an assessment (mapping) of regulatory framework and administrative procedures related to targeted values chains with the aim to identify procedures that are unnecessarily complex and administratively burdensome that could be simplified and streamlined. The mapping will be based on a desk review/screening of legal and administrative procedures and interviews of main stakeholders involved in issuing process. The mapping will cover all legal and administrative procedures and permissive documents required from private business operators which will cover stages such as business registration, local production, import of agricultural inputs, storage and sale on the domestic/external market. We will identify the time, cost and accompanying documents required for each permissive act. As an output of this activity, we will develop a report on the current status, which will be presented and discussed with main stakeholders, including relevant ministries and public authorities (such as the Ministry of Agriculture and Food Industry, Food Safety Agency, State Commission for Variety Testing, etc), and targeted sector associations in order to develop an action plan to eliminate, simplify, and streamline regulations and procedures. Together with the key stakeholders, we will identify solutions that will streamline and rationalize the process of issuing permissive acts, which may include informational and automatic platforms, one stop shop mechanisms, digital platforms, etc. We will provide training to the relevant agencies to ensure new regulations and simplified procedures are implemented in practice. Activity 4.3.3: Draft agricultural policy analysis papers and policy reforms Agricultural producers are encountering a number of regulatory constraints which affect their operations. It will therefore be necessary to work with the private and public sector stakeholders in order to identify and assess the legal constraints and regulatory barriers to agricultural businesses and more broadly to the development of the high value agriculture in Moldova, which shall be benchmarked with international best practices. This assessment will help set the priorities and needs for the removal of regulatory barriers and legal harmonization with the EU and international requirements. HVAA will focus on addressing policy issues in areas that will have the biggest impact on developing a sustainable Moldovan high value agriculture sector and achieving project results - namely sales and access to new markets. As food safety policy is one of the priority issues in the DCFTA agenda, HVAA intends to collaborate with existing donor projects (including Giz and the EU) to assist Moldovan authorities to comply with EU requirements so as to ensure exports of products from targeted HVAA value chains. This may involve HVAA support to strengthen food safety control procedures, food testing laboratories, legal/regulatory development support, including transposing EU regulations or directives which are emphasized in yearly harmonization plans. Various outreach and training events will also be organized in order to disseminate new regulations or procedures in force to help producers/their associations to better understand and, eventually meet new standards and norms. HVAA will also consider providing additional support in the area of PGI/PDO/TSG, organic agriculture development, legal framework related to WUAs, and E-Agriculture if these are identified as critical to achieving project objectives.


CROSS-CUTTING ACTIVITIES TO SUPPORT IMPLEMENTATION Inclusive development HVAA recognizes and affirms USAID's commitment to inclusive development and will provide all commercial agricultural producers and other members of the value chain with equal opportunities to participate in all HVAA activities and to benefit from project-funded assistance. In recognition of a possible imbalance in opportunity accessibility, HVAA will make special efforts to ensure that women and youth benefit from project-funded assistance, including targeted outreach and project opportunity publicity. Gender The future competitiveness of Moldovan agriculture and agribusiness depends upon the broad participation of both men and women and a broad spectrum of farmers and laborers in the agricultural sector. Men and women are present throughout the high value agriculture value chain in Moldova; however, their tasks and presence at different levels of the chain varies. Women are highly concentrated in production, as employees in processing plants, and as sellers in local markets. Men are owners and managers of processing plants and cold storage units, transporters and intermediaries. Women play an important role in management and decisions related to small agricultural enterprises. As a percentage, women’s presence as owners and managers of agricultural enterprises is still quite small. Gender differences in employment opportunities and tasks were linked to differences in access to productive resources, beliefs and perceptions about appropriate roles for men and women and institutional practices (e.g. how agriculture extension services are provided). A major issue in rural development policy is the equality of women when it comes to access to and use of land, social services and agricultural consultancy, access to credits and markets. Of equal importance is the empowerment of women through suitable training measures and information with a view to increasing their opportunities for direct participation in social, political and economic decision-making processes. The integration and promotion of gender equity therefore becomes critical to the overall success and impact of the HVAA project. In order to identify priority issues to be addressed to increase opportunities for women, HVAA will carry out a Gender Assessment during the first half of 2017. Our overall gender strategy is expected to focus on (1) enabling equitable participation of women and men in all implemented projects; (2) addressing gender-based constraints in agriculture; (3) contributing to decreasing poverty among women; and (4) increasing women’s participation in civic activities and decision-making. Illustrative gender mainstreaming activities are listed in the insert below.


Illustrative gender mainstreaming activities

• Support the Women's Agriculture Network (WAN) established by AGROinform. • Include both men and women in the design and delivery of activities; • Incorporate women’s needs and interests into the design and implementation of

trainings and services; • Accommodate trainings and services to times and venues that facilitate women’s

participation; • Communicate training and services through multiple channels; • Recognize the presence and achievement of women business leaders; • Encourage opportunities for women to connect with other women entrepreneurs

to create stronger horizontal and vertical linkages among businesswomen and help increase networking opportunities;

• Conduct and support women’s leadership training; • Train AGROinform network and others partners on gender equitable

approaches; • Further encourage and develop women’s networks at village level and integrate

with men’s networks (e.g. Moldova Fruct, etc.); • Design awareness activities to promote women’s leadership in agribusiness.

Youth After the skills gap analysis, we will devise a workforce development plan with affordable, realistic, and actionable activities that forge stronger links among research, education institutions, and agribusinesses. For example, we plan to cooperate closely with the GIZ Structural Reform in Vocation Education and Training (VET) Project to implement a PPP in vocational education and training in which 75 percent of vocational training for apprentices will be conducted by a private firm and the remaining portion at a vocational school. To ensure that apprentices receive high-quality training, HVAA will collaborate with GIZ to elaborate an efficient internship scheme, identify interested internship hosting agribusiness companies and train in-company mentors and VET school instructors in adult learning principles. For example, we plan to support a dual VET system at fruit and vegetable processor Alfa-Nistru in Soroca, Greenhouse Company in Falesti district and the Agriculture School in Taul, where apprentices will be involved in the implementation of a food safety management system and greenhouse vegetable production. We will ensure that young apprentices gain the skills required by the private sector and increase the likelihood of securing long-term employment upon graduation. With support of agricultural university professors and extension consultants, didactical/training resources will be elaborated in order to cover identified knowledge and skills gaps identified in the Gap Analysis. To attract youth to HVA, we will use AITTF funds to support initiatives such as ACSA’s development of farm schools based on a Polish model in which young farmers attend a hands-on agriculture school for one year to learn about fruit production, processing, and ecological farming and strategically communicate these opportunities to youth and their families who influence decisions about their future. In this context, a study tour in Poland or Denmark will be organized with the main goal to study workforce development programs. The on-company trainings program will be implemented at interested HVA companies’ sites or industrial association members (enterprises) such pruning of intensive orchards, pruning of table grape vineyards, or accounting and bookkeeping in HVA companies. We will encourage and support youth HVA enterprises to participate at national level exhibitions,


organizing students’ scientific forums, career development events, agriculture competition events, agriculture innovation festivals, other communication platforms. Environmental Compliance HVAA will put in place procedures to ensure environmental compliance to USAID Environmental Regulations (22 CFR 216). An overarching IEE (DCN: 2015-MOL-001) was prepared to cover the Moldova Economic Growth Project (MEGP) a Development-Objective (DO) level project linked to the Moldova Country Development Cooperation Strategy (CDCS). However, an IEE has not been prepared specifically for HVAA. Therefore, a project level IEE will be completed. HVAA will engage an environmental expert (TCN) to prepare an IEE for HVAA, which will include an assessment of potential adverse impacts on the environment and recommend actions to mitigate any identified adverse impacts. The final draft IEE report is expected to be finalized by the end of February 2017. A Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP) was prepared for the ACED project in Moldova to ensure that the implementation of the project was carried out in compliance with 22 CFR 216 with the respect to the use of pesticides. The PERSUAP was approved on February 2012 (DCN: 2012-MOL-001) and was subsequently amended three times (DCN: 2012-MOL-003, DCN: 2013-MOL-004, DCN: 2014-MOL-004). Rather than amending the current PERSUAP, this project will prepare an HVAA-specific PERSUAP that will better serve the needs of the activity. An HVAA TCN environmental expert will work closely with HVAA local staff and a locally engaged environmental specialist (who worked as an environmental specialist on ACED) to gather and review all pertinent information, including earlier PERSUAPs in Moldova, with the aim to draft a PERSUAP report for HVAA, following the pesticide procedures described in 22 CFR 216.3, where all 12 factors must be addressed according to 216.3 (b)(1)(i)(a through l), and covering existing and potential value chains/crops. The final draft of this report is expected in March, 2017. HVAA will install systems to ensure the project will comply with the HVAA-specific IEE and PERSUAP. Agricultural Innovation and Technology Transfer Fund (AITTF) Given the project’s overall goal to rapidly advance the transformation of the Moldovan HVA agricultural sector into an engine of economic growth, leading to improved competitiveness and higher living standards, USAID’s knowledge transfer investments must enhance local capacity, entrepreneurship, market linkages, competitiveness, innovation and growth. Moldovan agricultural value chains must leap to a higher technologically advanced stage and implement innovative products to address the productivity and competitiveness gaps and generate higher added value, to grow and compete with agribusinesses and products imported from the EU, within 5-7 years. To ensure the transfer of such innovations and technologies, the project will utilize the AITTF as grants under contract (GUC) that will serve as a catalyst for private and public interventions. Grants will also be used with the aim to achieve competitiveness gains that ensure export viability, especially in the framework of the DCFTA trade liberalization. The GUC component is a cross-cutting activity that will support the implementation of all four HVAA objectives with resources of $5.7 million. The majority of grant funds


will be allocated to activities that will have a catalytic/demonstration effect for the entire value chain/sub-sector or cluster of agribusinesses, or be used as leveraging for GDA/PPP projects attracting private investment including for PPP projects targeting workforce development activities. Grants will be used to facilitate access to private capital investments rather than to displace or compete with private sector financing. Grants will not be used for any infrastructure or construction activities. In the immediate period, the Grants/PPP team will work to develop the grants manual and procedures. During the first year of the project the Grants/PPP and technical teams expect to support activities and pilot projects such as:

• Supporting industry associations to develop networks of sales agents in target export markets working under performance-based contracts to incentivize them to achieve sales milestones;

• Facilitating commercial partnerships among producer groups and industry firms that distribute inputs and other agro-technologies;

• Fostering partnerships with international input suppliers to facilitate technology transfer;

• Developing AITTF Grants that will provide initial financial support to improve producer group services, including aggregation, storage, transport, and marketing, which will make it easier for producers to access markets that require consistent volumes of higher-quality produce;

• Working with organizations such as Planet Partnerships to conduct feasibility studies for private investment transactions and developing strategies to utilize PPP.

The Grants/PPP team will conduct trainings on the use of the AITTF to help potential beneficiaries into the entire agricultural value chain (producers, producer groups, cooperatives and associations) as well as non-agribusiness SMEs that support selected value chains. Our training will strongly emphasize that AITTF grants will primarily support activities that are market-driven, viable, scalable, and capable of advancing change across an entire value chain or sector as opposed to providing financial gain to just one beneficiary. Concurrently, we will inform and encourage local financial institutions to increase lending to the agricultural sector including AITTF grant recipients, which are expected to contribute significant cost contributions to AITTF funded activities.

Communications

Communication and outreach activities will continue throughout the entire 5-year term of the project, being an important tool to promote and share the project results. The communication efforts will be proactive and will focus on several major directions:

• Highlighting the USAID assistance offered to improve the lives of the Moldovan people by developing high value agriculture;

• Share the success models and stories developed by the project to be replicated all across Moldova;

• Ensure transparency of the implementation process and use of US taxpayers’ money.

The main vehicle for efficient communication activities is a clearly defined communication plan with specific objectives, targeted messages, and clear


communication channels. The project will develop a comprehensive communication plan, which will describe the approaches, the tools and the main and secondary target groups. The tools that will be used to communicate the project key messages will be tailored to the needs of each target group. The messages should be designed with specific objectives in mind and should be directed to the target audience.

The plan will include activities to adhere to USAID branding and marking requirements, ensuring that the Moldovan people are aware of the assistance from the American people provided to improve their lives. The HVAA Branding and Marking plan was submitted on December 20, 2016.

The project’s communication activities will aim to gain the confidence of partners and the trust of beneficiaries; to increase the partners’ support in the promotion of high value agriculture principles; and to encourage stakeholders to switch to high value agriculture.

A proactive communication approach will help the project team to motivate farmers outside the project intervention areas to adopt modern technologies to develop their agri-business and increase profits. US subcontractor Field Glass Communications will assist the project team to develop strategies and concepts to promote Moldovan products on international markets. The proposed communication mechanisms include, but are not limited to:

Success stories – The information about the key high value agriculture concepts and about the successful interventions will target the broader farming community. This is one of the most efficient communication tools which can inspire and motivate farmers to adopt new high value agriculture technologies and approaches. Outreach materials with success stories, and the progress made by different value chains will be developed. These materials will be distributed through the local and national mass-media, print publications and public events.

Internet resources (social media channels and relevant websites) – In Moldova, the Internet is considered one of the most important sources of information. We will use the exiting platforms to inform the public about the project activities, success stories, the technical assistance provided and the granting process. We will also use the social networks and other relevant web platforms designed by partners to promote the USAID donor assistance and project activities.

Public outreach events – An important tool to raise issues for public discussions and keep the issues related to the transition to high value agriculture in Moldova on the public agenda. The public outreach events will help the project to keep the attention of stakeholders, beneficiaries, and the public at large on the project activities and results in order to ensure transparency of the implementation process. An official launching conference of the Project will be organized as per USAID guidance, which is expected to be at the end of January or February 2017, with the main stakeholders and media invited to attend the event.

Media coverage – Mass-media has an increasingly important role to inform stakeholders and share farmers’ experience. Media should become one of the main partners of the project in outreach campaigns, sharing the best practices and ensuring transparency of the implementation process. In consultation with the USAID Public Affairs Officer, HVAA intends to organize annual events for journalists to highlight key success stories but also to highlight planned activities and what HVAA is trying to achieve. An initial workshop for journalists will be held in the beginning


period of the project to present the project team, the objectives and approaches applied to support transition to HVA. This will help HVAA develop an informal network of journalists from regional and national media that will be able to highlight project challenges and results. We will offer to facilitate visits to beneficiaries such as successful farmers, producer groups, and WUAs - which can be an example to others.

Press releases and media materials will be produced about the project activities and results to keep stakeholders and beneficiaries informed, ensure transparency and build confidence.

As TV is an important source of information for most people from Moldova, the project will establish a partnership with the first TV channel dedicated to agriculture - AGRO TV http://www.agrotvmoldova.md/. The TV will contribute to the promotion of USAID assistance, sharing best practices and teaching farmers motivated to performing technologies.

Expert and outreach materials – We will develop expert and outreach materials in order to increase the knowledge and experience related to value chains, modern technologies, marketing, creation, and management of farmer groups. These materials will be disseminated during training activities, public events, on farmers’ request. For training and outreach purposes the project will also update specialized materials and instructions developed by the previous USAID HVA project.

http://www.agrotvmoldova.md/


VALUE CHAIN SELECTION METHODOLOGY The HVAA prime contract states, “The contractor must develop and deliver interventions that expand trade and strengthen export linkages to domestic, regional and international markets with a primary focus on value chains assisted by past USAID activities. These value chains include apples, table grapes (especially seedless), stone fruit, and to a lesser extent extended season vegetables in greenhouses. In addition to these value chains the Contractor must conduct value chain and sector analyses to identify a minimum of two additional value chains to work with. These sector analyses must be performed in cooperation with and under the direction of USAID staff and must be analytical, robust, strategic and grounded in the agricultural and economic sciences.” As such, HVAA intends to carry out the value chain assessments leading to identification of at least two initial additional value chains for project focus. The methodology is designed to prioritize (or eliminate) the selection of additional value chains to capitalize on opportunities for farmers, based on:

• their agronomic competitiveness to produce high value agriculture (HVA) products in the value chain under consideration, and

• products in the value chain under consideration have strong potential to meet the demand (quantity) and requirements (quality) in known markets (i.e. when interested and committed buyers have been identified). Note: in some cases, the initial volume may not be large, but is of interest to a solid buyer who has the potential to increase volume and/or add products for one of the project’s priority groups (a women’s group or struggling WUA, for example).

During project start-up, three issues which should influence the selection of additional value chains have been reinforced. These issues will inform this methodology throughout the start-up phase and as work proceeds during the life of the project: 1. The first of the Government of Moldova’s key priorities for the country’s HVA

sector, as laid out in the National Strategy is, “Increase access to irrigation and improve on-farm water management practices.” The US government, through the MCC Compact, has made significant investments to increase farmers’ access to irrigation. To date, this extremely valuable resource – a key input for successful HVA production - is being drastically underutilized. To maximize the utilization of irrigation resources in WUA regions, HVAA will vigilantly seek market opportunities in value chains that encourage and justify farmers’ transition to HVA activities. Through the WUAs, our team will provide technical assistance to their farmer members to meet the requirements of identified markets (buyers). Sustainability of the WUAs will vastly increase when their members are receiving relevant, practical technical assistance and services which increase their livelihoods and profitability.

2. More value chains (when fully justified based on market opportunities) will increase the desired results for the project, including:

• Increased exports of assisted enterprises/producer groups (more products to export)

• Increased sales of assisted enterprises/producer groups (more potential for sales)

• New high-export and revenue generating value chains assessed, identified and assisted


• New international export market contacts established (buyer interest in one value chain can lead to even more opportunities being identified)

• Export market linkages established for at least 3 new markets • Industry Quality Seal programs developed and successfully piloted (this

will be simpler with a smaller volume value chain) • Increased awareness/knowledge among international buyers about

Moldovan value chains (again, buyer interest in one value chain can generate even more opportunities)

3. Remaining flexible to add value chains increases potential opportunities for women, youth, persons with disabilities, LGBTI persons, and other vulnerable communities.

Initial Value Chains to be Assessed The first value chains to be assessed include the nut value chain (Hazelnuts and other nuts where there is no conflict with the Mission-approved Bumpers Amendment Analysis); the honey value chain; the berry value chain (strawberries, raspberries, blackberries and blueberries); the medicinal and aromatic plants (MAP) and essential oils value chain; and open field vegetables (fresh greens and cucumbers & tomatoes particularly for processing). Notes: The HVAA prime contract suggested the organic and nursery stock value chains. Organic production methods apply across value chains and the nursery and root stock value chain supports other existing or potential value chains. For these reasons, they will not be considered separately. Value Chain Selection Criteria

Our value chain selection methodology combines best practices from USAID and others (i.e. GTZ) to provide rapid and meaningful analysis of value chains, taking into account economic, social, environmental, and institutional sustainability factors. We have trialed this value chain methodology internally, based on available data and discussion in the field, to ensure it is practical and will produce meaningful, reliable results.

The methodology enforces “quadruple bottom line” discipline to systematically address the four prongs of sustainability — economic, social, environmental, and institutional —that will support long-term competitiveness and equitable economic growth. Each criterion examines data for 12 sub-criteria: six under economic criteria, three under social criteria, two under environmental criteria, and two under institutional criteria.


MONITORING AND EVALUATION (M&E) The HVAA Monitoring and Evaluation Plan (M&E Plan) will integrate the project’s technical approach, proposed activities, organization, and Monitoring and Evaluation (M&E) system under a unified strategy, demonstrating rigor, feasibility, and consistency. The proposed M&E Plan, including the final indicators and targets accompanied by the complete indicator reference sheets will be submitted to USAID for approval within 45 calendar days after contract award, on January 5, 2017. Approach to Monitoring and Evaluation The project will take an integrated approach to M&E based on: Rigor. The M&E Plan will propose indicators and disaggregation to present the clarity and rigor of the HVAA M&E system. All indicators will include quantitative measures and results that will be collected through surveys, beneficiary reports, project and local partner records ― all directly attributable to the project. Annual quality assessments of data will ensure precision and accuracy. Data disaggregation will allow us to track progress across multiple components and interventions while using a small number of indicators. For example, sales of assisted enterprises will be disaggregated to track target sector and value chain, gender of enterprise owners to monitor progress toward inclusiveness and progress in export and sales expansion. The M&E system will be placed on the ChemResults platform. The Senior M&E Specialist Zoltan Milic, will provide short-term technical guidance to the team to implement a robust M&E and data collection work flow at project start-up and incorporate it into the ChemResults M&E platform, ensuring that all captured data are internally consistent, comprehensively capture all program impact, and avoid double counting. Feasibility. Our provisional targets will be ambitious yet realistic. Targets will be based on analyses of progress and outcomes to-date, in-country discussions with potential beneficiary groups and implementing partners, calculated scalability of results, and our experience on similar USAID projects in Moldova and other developing countries. These targets will provide a foundation for decision-making and show whether we are on track to meet or exceed project goals and deliver a high return on USAID’s investment. Participatory approach that builds local capacity. A participatory approach to M&E will help ensure agreement on how we measure program results and support the increased capacity of stakeholders, for whom this type of analysis may be necessary but new. Project stakeholders, including sector associations, government institutions, and academia, will increasingly need to develop suitable M&E skills to effectively evaluate their own performance and build M&E capacity to potentially become direct awardees of U.S. government assistance or other donor funding. We will start with M&E basics, such as indicator development, collecting and verifying data, and establishing data quality controls, moving on to developing and measuring impact indicators, and the use of diverse collection methodologies, such as focus groups and surveys. Plan for Data Collection, Analysis, Review, and Reporting An integrated, team approach to collecting and analyzing data will help the COP manage the team’s activity planning and provide accurate reporting to the client and


beneficiaries. Measuring the success or failure of reaching targeted groups and creating change will help us focus our resources to optimize performance and secure the greatest return on investment for USAID. Our management approach demands the capacity to shift resources and engage USAID and beneficiaries frequently. Effective measurement of data will allow us to have meaningful internal and external engagement. Analysis and communication are important elements of performance management. HVAA will not only collect performance and impact data, it will also add value to the raw data by performing appropriate analysis and providing context for data interpretation, thereby transforming data into information. An effective M&E system will assist project staff in effectively conveying performance indicators to USAID. Data Quality Assurance & Standards HVAA will ensure overall rigorous data quality through the assessment of: • Validity. The data clearly represent the intended result. Each indicator will measure some part of our progress toward achieving the expected project impact. Indicators are designed around the results framework to show the link between what we are measuring and results. More specifically, the M&E Plan indicator sheets describe the causality between what we are measuring and the results we are expected to achieve. We will review the PMEP throughout the life-of- project to make sure the link between the indicator and result has been achieved. • Reliability. The HVAA approach to M&E focuses on collecting information that can be corroborated and verified through the relevant documentation obtained from counterparts. The entire project team will be involved, as the quality of data requires input and work of not only the HVAA management team, but also the technical leads and specialists. This approach is reliable and cost-efficient since the technical leads and specialists liaise regularly with project counterparts and perform field visits to their locations. The data collected by the technical team will reflect stable and consistent data-collection processes and analysis performed in advance of an activity start-up, with set requirements for baseline and regular documentation for project audits. • Timeliness. The data will be timely enough to influence management decision-making. Most data quarterly and analyze it as part of the quarterly report, however, data on assisted enterprises — such as sales, productivity, finance, and investment — will be analyzed annually. We will review trends or areas of interest with USAID as part of our standing meeting agenda and in advance of annual work planning. • Precision. The data, gathered from beneficiaries will be sufficiently precise to reflect project performance and enable management review and decision-making. The data collected are within the manageable interest of the project. • Integrity. The data-collection system is set up with mechanisms to reduce the possibility of intentional manipulation. This includes internal controls with secondary reviews completed by Mrs. Steen and Mrs. Ionita. The COR will have access to backup files and information as needed.


Inclusive Development Considerations Our M&E system will play an important role in identifying whether our activities have differing effects on different groups, such as women, youth, disadvantaged populations, or ethnic minorities. The impact on different groups can then be analyzed through this lens so differing impacts can be understood to inform program design or implementation.


Financial and Administrative Systems HVAA has strong financial and administrative systems to ensure regulatory compliance, cost control, and timeliness and quality of deliverables and development impact. Chemonics maintains robust systems to ensure compliance with USG and USAID rules and regulations, adherence to corporate policies and procedures, and diligent observance of U.S. and Moldovan accounting and personnel laws and regulations. Whenever possible, these are documented in user manuals or other guidance documents. For example, HVAA has a comprehensive Field Office Policy Manual, adapted from Chemonics’ corporate policy manual, but which incorporates necessary elements from Moldovan law. The project team is assisted in compliance matters by the Washington D.C.-based project management unit (PMU) and other home office specialists. For instance, in February-March, a home office project accounting specialist will visit Moldova to ensure that the project’s accounting systems are compliant and functioning properly. Locally, HVAA relies upon P.A.A. Tax, Legal, Accounting to ensure compliance with Moldovan accounting and human resource legislation. HVAA will also competitively select a law firm for advice on more complex local legal issues. It is a core objective of Chemonics’ project management to effectively leverage, manage, and harmonize this network of resources. The systems and processes to support project compliance are well-established in the home and field offices and fine-tuned from our experience on other projects in Moldova. HVAA has an established system of inventory management and control. As soon as HVAA began acquiring pieces of equipment and property, the PMU and the field office work together maintaining inventory of those items. The project maintains an inventory tracker to monitor equipment purchased and used by the project, separating non-expendable property, expendable property, and grantee-related property. All purchased items are tagged with an inventory label which identifies an inventory control number, and a USAID sticker, in accordance with HVAA’s Branding and Marking Plan. The project will perform annual inventory checks to verify that the inventory tracker has all the relevant information regarding the equipment including description, serial numbers, value, condition, and location, and will submit annual reports on non-expendable property to USAID. Chemonics also has a comprehensive Closeout Manual as well as a home office closeout team that guide projects and D.C.-based PMUs in developing demobilization plans, closing out subcontractors, termination of personnel, disposing of property, closing bank accounts, de-registering filed offices, if required, archiving project documentation, and closing out the contract.

year 1 work plan

Documents