Project Document - UNDP in Tajikistan

United Nations Development Programme
Project Document
Country: Tajikistan
UNDAF Outcome(s): Good governance and economic and social growth are jointly enhanced to reduce
poverty, unlock human potential, protect rights and improve core public functions.
Expected CP Outcome(s):
1. National and local levels of government and local self-governing bodies have the capacity to implement
democratic governance practices, and effectively and strategically plan, finance and implement development
initiatives in an inclusive and participatory manner.
2. Poverty reduction and economic development programmes are enhanced, with particular focus on the
rural poor, women and marginalized people.
Expected Output(s):
1. Improved governance capacities at all levels for transparent and accountable local development planning,
budgeting and management (with special focus on rural economic development).
2. Improved supportive environment and organizational infrastructure for the development of agriculture,
private sector and employment.
3. Improved access to micro-credit and finance for local micro, small and medium enterprises (MSME) and
rural residents, including poor and women.
Implementing Partner/Executing Entity: UNDP
Responsible Parties/Implementing Agencies: UNDP/ GTZ
Narrative
The general goal of the Rural Growth Programme (RGP) is to enhance more inclusive economic development in
rural areas of Tajikistan in support of NDS and PRS. The purpose of the RGP is to improve the local environment
for economic growth, income generation and employment creation in Sughd region, northern Tajikistan. The
Programme aims to foster an environment for rural economic development through the following components:
‣ Improving capacities of local governance actors (government, private sector and civil society) for local
development planning with an emphasis on rural economic growth, including the implementation and
monitoring of local development plans in line with NDS and PRS;
‣ Facilitating access for producers/farmers and MSMEs to appropriate, professional, and sustainable business
and technical advisory/extension services;
‣ Supporting organized member focused business associations and their apex institutions in developing
adequate and responsive services and advocacy support for its members;
‣ Strengthening selected district vocational training institutions to meet regional and international market
demands for better qualified labor and safe migration;
‣ Facilitating access for producers/farmers, poor, women, and MSMEs to a variety of financial products and
services available from Micro Finance Institutions.
Programme Period: 2010-2012
CPAP Programme Component:
Poverty Reduction and Achievement of MDGs
Project Title: Rural Growth Program
Atlas Award ID:
______________
Start date: 01 January 2010
End Date
______________
PAC Meeting Date
______________
Total resources required USD 18,607,504
Total allocated resources: USD 3,000,000
Regular USD 3,000,000
Other:
o Donor _________
o Donor _________
o Donor _________
o Government _________
Unfunded budget: USD 15,607,504
In-kind Contributions
_________
Agreed by (Government):

____________________
Agreed by (Implementing Partner/Executing Entity):
Agreed by (UNDP):
I. SITUATION ANALYSIS
Since the collapse of the Soviet Union in 1991, Tajikistan has been undergoing a transformation
process on the pathway to development. Its transition from central rule to market economy and
increasing political stability is further convoluted due to the need to overcome the post-conflict
legacy of the civil war of 1992-1997, which resulted in the displacement of over million people,
took the lives of over 50,000 people; stagnating the reduction of poverty and significantly delaying
the development process.
Tajikistan is a landlocked country with rather difficult geographical conditions whereby 93% of the
land is mountainous terrain. It is highly prone to seasonal and natural disasters. Poverty in
Tajikistan is wide spread and it scores as the lowest in Human Development Index (HDI) amongst
the countries of the former Soviet Union.
Economic transition in Tajikistan is lagging behind other countries in the Central Asian region. From
2000, introduction of strict fiscal discipline lead to steady economic growth 1 and improvement in
macroeconomic parameters. The recent growth in remittances (exceeding 30% of GDP) however, was
insufficient to guarantee adequate levels of gross national savings, which were mainly spent for
consumption. Domestic investment rates remain low, and foreign direct investments goes primarily to
large scale politically motivated projects. The informal economy is estimated at 61% of GDP.
Production in Tajikistan is mainly of a non-manufacturing nature: primary agricultural goods (cotton,
tobacco and leather), services, and industries (aluminium). Tajikistan exports have not adapted well to
the increasing demand in the market for high quality food and manufacturing products. Due to its
narrow economic base, the state is vulnerable to macro-economic shocks.
Development of the private sector in Tajikistan is constrained by an unfavorable business climate which
is characterized by weaknesses in the protection of investments, constraints linked to business
establishment, restrictions to trading across borders, dealing with inflexible tax authorities, limitations to
accessing credit, wide spread corruption practices, and a lack of supportive infrastructure at the local
level.
Although more than two third of the Tajik population live in rural areas, only a small proportion of GDP
comes from the agriculture sector. Employment and income opportunities in rural areas are extremely
limited. According to the International Organization for Migration (IOM), some 600,000 migrant workers
from Tajikistan work in the Russian Federation 2 . Kazakhstan is another country of labour migration for
Tajik workers. As a result of massive labour migration, which is predominantly the male population, a
large number of women headed households are left behind. Hence, women play a key role in the
economic development .in Tajikistan. Stability of migrant labour markets is subject to changes of
migration related policies of destination countries and the impact of the global economic crisis.
Incomplete agrarian reform constrains growth of the agricultural sector. Despite privatization of the
agricultural sector, farmers do not have access to secure land use rights and local government
authorities continue to influence crop production. Cotton farmers owe approximately USD 600 million in
debt to futures companies, which is a major constraint for the sector and requires urgent resolution.
This is compounded by the fact that agricultural markets are underdeveloped and there is a significant
capital investment deficit.
Tajikistan's economy is highly dependent on cotton production. Cotton is grown on 50% of the country's
irrigated farmland, represents 60% of the value of the total agricultural output, 75% of agricultural trade,
18% of total export receipts, 35% of tax revenues, and supports 75% of farm households.
In recent years, the Republic Government of Tajikistan has worked with the international community to
ease the burden of farmer debts in the cotton sector. In March 2007, the Government passed
Resolution #111. This document is a commitment to a broad and challenging reform agenda. To its
credit, the Government has already started moving on reforms of the Land Code and cotton grading
1 7.0% per year within 2007-2008
2 Unofficial estimates are higher, at 1,5 million people
2

and marketing systems, and is starting movement on freedom of farmers to choose what and when to
grow crops and sell their products. 3
The agricultural sector has yet to benefit from the reforms; current changes in pricing and trade
policies, production subsidies, financial markets and land policy have not adequately contributed to
major improvements to producer incentives, nor have these changes influenced the behaviour of
markets for land, capital and agricultural products. Analysis indicates that, in Tajikistan, there remains
limited institutional change and poor local level community awareness on the implications of reforms.
Reform changes which are occurring in private and public institutions do not keep pace with changes in
policies, which is also a result of lack of understanding of public and private responsibilities and their
place in the market economy. Most public institutions involved in the implementation of new policy
reforms, tend to function with a centralised planning, whereby production targets and coercion are the
basic principles for public policy planning and implementation.
The Political Context. Tajikistan’s government administration and decision making bodies remain
heavily centralized. There is a need for the redistribution of responsibilities and strengthening local
governance (decentralization or de-concentration). Until recently, local governance at the hukumat
(district) and jamoat (sub-district) levels is represented by state administration with the heads of the
local executive (appointed from the upper government level), performing the role of chairpersons for
the local councils. The only real form of self-governance is at the level of villages (mahalla and/or
kishlak committees) but these self-government units lack resources and decision making powers, and
in many localities are often confused with the traditional authority of elders.
Active political participation of women has considerably decreased since independence in 1991. In the
2005 Parliamentary elections, only 11 women were elected to the Majlisi Namoyandagon (national
Parliament), representing 18% of the total and 12% in the Majlisi Milli (oblast assemblies). The
percentage of women in local government is even lower: 4%, 7%, and 11% at the oblast, district and
municipal levels, respectively 4 . Enhancing women’s role in the economic sphere remains a challenging
task. The government requires substantial support at all levels, in putting into practice the Law in
Tajikistan on Gender Equality of Women and Men and Equal Opportunities for both (2005).
With the adoption of the new Law on Local Self-Governments in August 2009, the democratic nature
and accountability of jamoats is supposed to be enhanced in 2010 through the direct election of jamoat
council members for the fixed term of five years. Following the elections, it is anticipated that in 2011
jamoat executive of councils will have its own budget.
The current budget allocation for local communities is set on vertical decision-making lines, whereby
the centralized government, determine budget funding allocations for the district level. This vertical
structure conflicts with the notion of strengthening the responsibilities of local authorities for local
development and the provision of basic and essential services to their respective population. Hence, as
the decision making for local communities remains at the central level, priority setting does not
adequately meet local needs. Access to health and education facilities, drinking water and sanitation,
irrigation and transport infrastructure remains very poor in rural areas.
The process of localizing MDGs and improving the capacity of local governance structures to provide
services to local communities is complicated by the fact that the system of public administration and the
division of powers between various government levels tends to overlap in some areas and there
remains a lack of clear legislation. Current public administration reform has not yet dealt with local
governance issues adequately. Despite existing regulatory adjustment initiatives (which is supported by
the international community), the concept for local governance reform has not yet been elaborated or
actualized in Tajikistan to date.
Development in Tajikistan is still heavily dependant on international and humanitarian assistance.
Following the signing of the Millennium Declaration, in 2007 the government adopted an MDG-based
National Development Strategy (NDS) for 2007-2015 5 and the Poverty Reduction Strategy (PRS) for
2007-2009 6 . In the support of the NDS, UNDP together with other agencies in Tajikistan, such as the
ADB, WB, DFID and the Swiss government, developed a Joint Country Partnership Strategy for 2010-
2012 7 which concentrates on developing regional cooperation for economic growth. As the PRS will
3 Asian Development Bank, Cotton Sector Restructuring Project - Tajikistan, 2008
4 Asian Development Bank, Country Gender Assessment, 2006
5 http://www.untj.org/library/
6 http://www.untj.org/library/
7 http://www.untj.org/library/
3

conclude at the end of 2009, the Government has initiated the process of revising the existing PRS and
extending its duration from 2010-2012. The revised PRS will maintain continuity with its original 2007-
2009 priorities, as well as the goals of the NDS and MDGs.
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II.
STRATEGY
II.1 General Approach and Rationale
The Rural Growth Programme (RGP) builds on the experience and lessons learned from the UNDP
Communities Programme (CP) and its Zerafshan Valley Initiative (ZVI), funded by DFID. The ZVI
intervention aimed to improve of the governance system in rural areas and increase access to finance,
infrastructure and employment for poor communities.
The RGP will rely on experiences of the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ)
in the areas of private sector and microfinance development in Tajikistan and the Central Asian region.
It is envisaged that RGP will be a synergetic intervention to the Sustainable Economic Programme
(SEP) currently implemented by GTZ. The SEP consists of two modules - Support of Microfinance
Services in Rural Areas and SME Support – that from two independent projects in March 2009 were
integrated into one coherent programme. 8
A focus on strengthening governance systems and enhancing economic development through applying
an Area-Based Development (ABD) approach and incorporating integrated planning remains highly
relevant for the context of the current challenges faced by Tajikistan. These challenges include the
country’s commitments to MDGs and the role assigned to local governments and local level
development in pursuing the targets of the PRS and NDS.
ABD and integrated planning were identified in both the recent CP outcomes evaluation and the
external evaluation of ZVI as fitting approaches in strengthening governance systems and enhancing
economic development. With the new Law on Local Self-governments now enacted, higher
expectations are placed on local governments to deliver development outcomes.
The general goal of the RGP contributes to the attainment of MDG 1, which is outlined as follows:
“Enhance more inclusive economic development in rural areas of Tajikistan in support of NDS and
PRS” 9 .
RGP attempts, on the one hand, to consolidate previous achievements of the UNDP CP, whilst on the
other hand, aims to enhance the impact of economic development in the country. Partnership with GTZ
is expected to add value and facilitate the achievement of this goal.
The purpose of the RGP is to improve the local environment for economic growth, income generation
and employment creation in Sughd region, northern Tajikistan.
The RGP in Sughd region is conceptualised as a Programme that fosters an environment for rural
economic development and relies on the following main components:
‣ Improving capacities of local governance actors (particularly at rayon and jamoat levels) for
local development planning with an emphasis on rural economic growth, including the
implementation and monitoring of local development plans in line with NDS and PRS;
‣ Facilitating access for producers/farmers and MSMEs to appropriate, professional, and
sustainable business and technical advisory/extension services;
‣ Supporting organized member focused business associations and their apex institutions in
developing adequate and responsive services and advocacy support for its members;
‣ Strengthening local vocational training institutions to meet local, regional and international
market demands for better qualified labor and safe migration;
‣ Facilitating access for producers/farmers, poor, women, and MSMEs to a variety of financial
products and services available from Micro Finance Institutions (MFI).
Along with gender, the issues of environment (including climate change, sustainable land management
and energy), disaster risk management, and conflict prevention will be among the cross cutting themes
of the RGP intervention.
The aspects of good governance and rural economic development in RGP are strongly
interlinked. The Program aims at redefining relations between the government, civil society and
8
The actual programme phase started in January 2009 for the Microfinance Module and in March 2009 for the SME
Module and will end in January 2011. A third programme phase is planned for 2012-2014.
9 The Program will contribute to the following UNDP Country Program outcomes: a) Strengthening local governance
system in Tajikistan for inclusive and participatory development planning and management in rural areas; and b)
Enhancing rural livelihoods and reducing rural poverty through improved economic opportunities.
5

private sector, by empowering the latter in particular in playing a significant role in local rural economic
development. RGP will bring demand-supply logic into government and private sector relations through
strengthening the voice of private sector actors and building capacities of local governments to secure
basic infrastructure and ensure the provision of transactional services for rural economic development.
A sound local governance system can contribute to enhancing economic development opportunities
locally through creating more favourable conditions for private sector development and entrepreneurial
initiatives, and through the improvement of economic infrastructure and related services.
Improved economic development outcomes at the local level can lead to the improvement of life
conditions and coping abilities of communities, and hence consequently have the impact of decreasing
the social burden on government. It can also result in the growth of local government revenues which
can further be reinvested into development and improved service provision for local communities.
RGP promotes a value chain approach which is aligned with principles of good governance. Value
chain governance refers to the relationship amongst buyers, sellers, service providers and regulatory
institutions that operate within or influence the range of activities within the full production and/or
service cycle. Governance in this context is understood as the power and ability of different actors to
exert control along the value chain, whereby local governments have an important role to play in
creating a supportive environment, and favourable business and investment climate within their
constituencies.
Putting into practice the recent Law on Local Self-Governments at the local level will assign a stronger
role to the lowest self-government units in local development planning and implementation. More of an
active role by the lower level self-government units is particularly needed by the government of
Tajikistan in the context of its orientation towards improving livelihoods and economic development to
rural communities. The operationalisation of the principle - that decisions are to be made at the lowest
possible tier of government, will enable an increase of authorities and downwards accountability of
local governments and can potentially yield better development outcomes, especially in rural areas
where development is most needed.
Experience gained by previous UNDP local level development interventions revealed a need to bridge
from a project to a programme based approach with stronger strategic orientations and
methodological base in strengthening local governance and rural economic development, as well as
enhancing linkages between local level experiences and national level decision making/ reform
processes. Concentrating on improving systems, capacities and practices at the local level is
imperative if localizing the MDGs and pro-poor development are to be achieved. It is the national level
government, however, that will be accountable for making adequate policy decisions, re-distribution of
responsibilities, resource allocations and fiscal arrangements required to achieve the development
targets of MDGs, PRS and NDS.
The RGP will make use of UNDP’s and GTZ’s comparative advantages and will secure a solid link
between their field experiences and the policy making process. Being one of the key multilateral
development organizations, UNDP will play a role of a close partner of the national government of
Tajikistan in strengthening the governance system and its capacities to support local economic
development. The RGP will also rely on the experience and position of GTZ in promoting private sector
and microfinance development through ensuring micro-meso-macro level linkages throughout the
intervention.
To ensure lasting results, one of the key elements of the RGP strategy is to develop capacities of
national and local stakeholders to strengthen the local governance system and involve private sector
and civil society to work toward sustaining rural economic growth. One of the underlying principles of
RGP is to play a facilitating role and work with existing structures on all sides – government, private
actors and civil society/communities organisations.
The RGP will concentrate on the rural areas of Tajikistan, which is significantly more deprived from
access to development opportunities, resources and basic services than urban areas. The Sughd
region, where RGP will be implemented, includes the Zerafshan and Fergana valleys. These areas are
some of the most densely populated regions in Tajikistan and accounts for almost 30% of total
country’s population. Notably, Sughd region was ranked as the poorest in terms of household leaving
standards, 10 although in the Soviet period, it used to be one of the leading regions in terms of revenue
collection and agriculture/trade outputs.
10 Household Living Standard Survey 2007
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The Sughd region faces an array of development issues that need to be addressed, such as
underdeveloped and remote mountainous community areas, gender inequality, potential for crossborder
conflicts and high labour migration. It has a wide diversity of districts have typical conditions
found in other areas of the country; thus, models piloted in Sughd for the RGP would have
considerable replication potential. The region experiences significant environmental problems linked to
unsustainable natural resources use (poor land management, lack of functional and efficient irrigation
and drinking water supply systems) and the environmental situation is further exacerbated by
increases and the intensification of climate change.
In terms of coverage, RGP intends to work in all 14 rural districts of Sughd region simultaneously, and
a certain number of sub-districts will be selected within each district. Selection criteria and a more
detailed strategy of intervention at the sub-district level will be elaborated during the inception phase in
consultation with the government of Sughd region (see detailed description of the inception phase in
section II).
II.2 RGP Strategy, Partnership and Synergies with other Actors
Good governance for development planning, implementation and monitoring
The governance pillar component of the Program will be implemented under the leadership of UNDP.
Integrated development planning, management and budgeting (with a special focus on the
development of the rural economy) will serve as an umbrella for promoting good governance in the
RGP at different levels (community-jamoat-district-oblast). By strengthening governance capacities in
these domains, the RGP will pay equal attention to both the supply and demand side of good
governance. The demand side of good governance and management implies the ability of private
sector and civil society actors to self-organize, to intervene with local government and to ensure
transparency and accountability of local government’s policies, decision making and action, in
particular in the rural economic development domain. The supply side refers to the capacity of local
governments to respond to private sector and citizens’ demands and to provide channels for their
participation (institutional and political spaces within which citizens can engage and exercise influence).
It also means that local governments have the ability to ensure basic infrastructure and to provide
transactional services for private sector development. Transactional services traditionally include more
effective local policy making, planning and monitoring in the economic domain, more efficient delivery
of frontline administration services to economic actors, and better administration of revenues effecting
economic activities.
RGP assistance in the area of governance will concentrate on the following:
Strengthening the capacity of governments in development budgeting, planning and
monitoring. For local governments to plan and monitor rural economic development plans
effectively, synchronisation of approaches and efforts from different government levels (central,
regional, district and sub-district) will have to be ensured. RGP will build on a unified integrated
planning methodology linked to bottom-up development planning. This methodology has already
been elaborated by the Ministry of Economic Development and Trade (MEDT) with the support of
UNDP and was piloted in 11 districts of Tajikistan (including seven districts within Sughd region).
UNDP continues to provide support to MEDT, the State Statistics Committee (SSC) and the
Ministry of Finance (MoF) on linking the methodology to PRS indicators 11 and the budgetary
process. The integrated planning approach will be introduced to planning, monitoring/information
management and budgeting in all districts of the Sughd region.
Although the district level remains the main entry point for UNDP’s local governance capacity
building interventions, there is an identified need to engage the sub-district government into this
process. Through the enactment of the new Law on Local Self-Governments, sub-district
governments are the lowest self-governing units in Tajikistan and, through increased
decentralisation and de-concentration, can in the long term, assume greater responsibilities for the
development of their respective territories. These responsibilities can include but are not limited to
increased capacity to make local level priorities, decision-making and financial management. The
RGP team will closely identify opportunities to engage at this level as the law is gradually
implemented over the duration of the Programme. More precisely the RGP role at this level will
be defined during the inception phase.
11 The new PRS for 2010-12 is currently being developed by the Government with the support of UNDP.
7

RGP will advance the methodology with regards to the planning and monitoring of the rural
economic development. It will also make sure that such cross-cutting themes as gender,
environment and climate change, as well as conflict prevention are an intrinsic part of the
methodology.
RGP will build on the previous experience of UNDP in supporting the development of District
Development Plans (DDP) in 2009 within six districts. The DDPs contain sections on agriculture
and private sector development but lack elaboration of governmental role in creating an enabling
environment beyond the provision of basic infrastructure. They lack a comprehensive assessment
of the possible economic impacts which infrastructure projects can have. The capacity of local
governments to consider labour migration as an important aspect in the local development planning
process can be improved through encouraging households to invest remittances into
economic/productive activities.
RGP will support the development of training packages to be delivered in cooperation with relevant
national level institutions to district and sub-district authorities and local governments. The training
packages will include a comprehensive elaboration and implementation of the economic/agriculture
development parts of their plans, including synchronisation of these plans with the updated Sughd
Regional Development Plan 2006-15, and sector-based strategies relating to economic
development.
With support of GTZ, a development strategy for the fruit and vegetable (F&V) sector will be
implemented under the RGP. The F&V sector was selected because of its high but extremely
under-utilised potential in Sughd, and because of its possible impact on poverty reduction through
job creation and income generation for smallholders. Along with regaining the domestic market,
production suitable for export to countries such as Russia, is imperative to achieve. From its own
resources, GTZ intends to support the Government of Tajikistan in designing and elaborating an
export development strategy in the framework of the Programme of Rehabilitation and Further
Development of Gardening and Wine-growing in Tajikistan for the Period 2005-2010, which was
officially adopted by the government in December 2004. 12 . Work carried out under RGP and
providing support at the national government level will be well supplemented by the elaboration of
the regional F&V strategy for Sughd region. The practice oriented development strategy on F&V,
the regional oblast government and business community will be able gain valuable experience and
master a transferable approach that can be applied to other sectors of the market economy.
General monitoring of the economic development situation in the region will be facilitated by GTZ
through their support to the State Committee for Investment and State Property. In this activity,
GTZ will support the elaboration of a system which assesses the business and investment climate
in the rural areas in Sughd region. GTZ will ensure that the RGP experience in private sector and
employment development in Sughd oblast are linked to the ongoing regional GTZ project, National
Level Assistance to the Improvement of Business Environment. Linkages will be established with
the International Finance Corporation Business Enabling Environment (BEE) regional initiative
and the World Bank Doing Business indicators.
At the sub-regional level, RGP intends to focus in on specific aspects of economic development
planning. The ability to deliver will depend less on subventions of resources from the central
government and more on the ability of local governments to consider how they can support an
enabling environment for the private sector within their own resources through using their existing
mandated powers, such as enacting the legal reforms and decrees designed to create a more
supportive environment for business. District and sub-district governments (particularly under the
new Law) have powers to use land, property and other mechanisms to encourage and support
business development. These reforms are not yet happening on the ground due to a lack of
political will and a deficit of know-how and skills to enact such reforms. RGP will assist local
governments in modelling elements of good pro-business governance. This is especially important
in the situation where the government faces difficult trade-offs by attempting to increase low levels
of tax revenues and fees without discouraging private investment, distorting incentives or
prejudicing poverty reduction. 13
12 The complex task will comprise national trade issues such as negotiations with neighbouring countries on reducing
administrative, customs and tax barriers, support of the Government in target markets, rationalisation of transport and
tariffs, as well as a sector specific general change from a control culture to a supportive business environment (200 days
reform to improve business and investment climate)
13
Three key taxes are currently applied to primary agricultural production: an export tax on cotton, a unified agricultural
tax (UAT) levied on the basis of land characteristics; and irrigation water use fees. To agro-processing and agri-business
8

Competency and capacity assessments will be conducted during the inception phase of RGP, and
following these assessments, special emphasis will be made on capacity building of district
departments and sub-district specialists with functions related to economic development (including
agriculture) in such areas as planning, data management and monitoring. Under RGP, UNDP will
continue strengthening abilities of local statistical departments in collecting and using data
(especially in the areas related to livelihoods and rural economic development). This data will
inform decision making, raise awareness regarding the situation among private sector and public
sector actors, and improve communication and downwards accountability. Improvement to district
level data collection will also facilitate a more informed and constructive participation of private
sector actors and civil society in the development planning and monitoring process. It has been
identified that the technical base of some local governments at both district and sub-district levels
need to be strengthened.
Capacity building efforts should not only focus on supporting relevant units of sub-national
government and line ministries agents in operational management, but also assist them in
developing a strategic vision for how their role can be strengthened in the future. This has to be
done in line with the national level vision of local governance reform and de-concentration of tasks
within sectoral ministries (refer to section on support to the public sector reform below).
Public sector reforms. RGP will be implemented within a dynamic public service reform
environment. With support from the WB, the Government of Tajikistan will be undertaking functional
reviews of six key ministries, including the Ministry of Agriculture which is of particular relevance to
RGP. These functional reviews are planned to be completed by 2011 and are a necessary step for
formulating local governance reform and further, to ensure more effective distribution of functions
and resources between different levels of government, particularly in the agricultural sector. The
new Law on Local Governments will provide the opportunity for local government at jamoat level to
take greater responsibility over planning and management of resources available, and through
elected chairs, greater accountability should be present within local government structures.
The outcomes of the functional reviews, public service reforms and the extent of the
implementation and roll out of the new Law cannot be accurately defined at this time. It is therefore
currently not clear how RGP can best engage in these areas. It is clear however, that due to
capacity constraints, blurred and un-coordinated relationships (both horizontal and vertical) and
responsibilities across the public services implementation will be complex. RGP will need to
coordinate closely with national government and with the WB and other donor partners (like
USAID) who are supporting governance reform to ensure that RGP activities are effectively
coordinated and integrated within the broader public service reform agenda.
The RGP will develop work streams that complement the public service and local government
initiatives. Initially, this will be through supporting other stakeholders in conducting the functional
review of the Ministry of Agriculture which will provide a deeper analysis of functions at local
government levels as well as and cross-government relationships. Options include horizontal
reviews across departments at regional, district and sub-district levels, e.g.; Ministry of Water
Resources and Land Reclamation (MWRLR), State Land Committee (SLC) and other related
agencies and sectoral departments at regional and local levels. This is linked to the Government
Working Group N6 on Agricultural Reform. Similarly, the RGP experience and new practices piloted
in Sughd region can inform the local governance reform and redistribution of competencies and
public resources (especially in sectors supporting the development of the rural economy).
The range of activities that can be undertaken in this area is enormous, however RGP is not a
programme designed to implement decentralisation or the new Law on Local Self-Governments per
se. Hence, local governance reform would be too large an undertaking and would divert the
programme away from its focus on economic growth for rural communities. RGP will limit
engagement to those areas that are directly relevant to the rural growth agenda. The aim will be to
help focus and direct the financial and human resources of relevant ministries and local
governments toward activities consistent with strengthening the role of government in a market
economy. RGP will work on this agenda in tandem with public service reform initiatives by other
partners, concentrating on activities where it has clear capacity and comparative advantage to
complement the wider public service reform agenda. The inception period of the programme will
define the parameters of this work.
the same taxes applied as for other businesses. A coherent basis for the taxation of collective activity (cooperatives,
producer associations, water user associations, etc.) has yet to be defined (Tajikistan Agriculture Sector: Policy Note N
5”, WB, 2009).
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Private sector and civil society participation. For private sector and civil society to engage more
actively in the governance process and decision making on rural economic development, clear
channels for civil participation in private sector development need to be established.
The RGP will support local governments to generate new spaces for private sector and public
involvement. It will aim to assist the development of a stable and constructive interface between the
government, private sector and civil society actors, specifically around economic development
planning, monitoring and budgeting.
Special focus will be on enhancing the capacity of a particular segment of civil society – i.e. the
business community to articulate its demands and concerns to different levels of government and
to seek help in ensuring a supportive business environment. Working with local governments to
“put economic development on the map” is the desirable outcome. The range of organisations
which need to be brought into this work will include business associations and apex institutions,
chambers of commerce; farmers associations; retail traders; transporters of goods; and consumers.
The intention is to forge productive links between the private sector and the government sector so
that government can respond better to the needs of the private sector. RGP will help government to
think more about the constraints which their actions place on business – including slow registration;
payment of bribes; complex inspections; how they might positively encourage economic
development; and how they can work in cooperation with the private sector to enable the business
environment.
An important part of the strengthened relationship between the sectors will be a commitment to
greater transparency in respect of the budget and expenditure outcomes; greater oversight by
business of government actions where these impact on the private sector; and the development of
different mechanisms through which businesses can bring their concerns quickly to the attention of
government at different levels
The likelihood of local governments, private sector and civil society drawing on established
participatory mechanisms (like public hearings or public advisory committees) beyond the project in
their normal governance process will be increased significantly if these mechanisms are
institutionalised. Also, organised private sector and major civil society actors interested to
participate in local economic development planning, budgeting and monitoring (especially
organisations working with women) will require training and other support to enhance their abilities
to engage.
In accordance with the Law on Citizens Self-Activities (2008), an instrumental role in enhancing
community organization around different issues of local interest can be played by kishlak
committees. These committees can be transformed from a loose traditional structure of community
self-organisation to a more meaningful form of local self-governance at the village level. Working at
the village level in selected areas through mobilising kishlak committees and building their
capacities to engage effectively in local economic development planning and the budgeting process
at the jamoat and district levels along with other organisations will be intrinsic to the planning
methodology applied by the RGP. The Program will draw on the methodology used by Aga Khan
Foundation (AKF) and other non-governmental organisations (NGO) for mobilisation of
communities in Tajikistan in support of local economic development. Through a tender process, this
block of activities will be subcontracted to appropriate international or local NGOs that have solid
experience and demonstrated capacity for working at the community level.
In this context there will be a need to review the mandate of Jamoat Resource Centres (JRCs) that
were previously established by UNDP CP at sub-district level to act as the main pillars of
participatory decision making and the vehicle for project implementation. RGP will focus on building
capacities of formal government institutions to undertake a number of the roles that JRCs have
assumed and will look to strengthen the capacity within civil society structures, business
associations and private sector actors to demand support and services from local government.
JRCs links to sub-district authorities, micro-loan funds (MLFs) and communities will need to
change. RGP will develop a strategy for helping JRCs identify a credible new role and will help to
facilitate the transition of JRCs and gradual de-linkage from Micro Loan Foundations. Preliminary
analysis reveals different visions for JRCs future transformation. The main options include: a true
village representation forum at the sub-district level; a local development project planning and
implementing agency, or a centre for advocating civil society interests. Following selection of
targeted Jamoats and the assessment of local institutional context during the inception phase,
those JRCs that have sustainability perspectives and/ or a role to play in enhancing rural economic
development will need to be identified and further supported.
10

Supporting infrastructure and government transactional services. Local development
planning, budgeting and implementation of the economic and basic rural infrastructure sections
of the District Development Plans (DDPs) will serve a vehicle for modelling transparent and
accountable good governance, including sound development management practices. RGP will
seek to promote DDPs that provide support for private sector growth, but clearly DDPs will
have to reflect the governments’ development priorities (at national and local level) and the
realistic demands of communities. To ensure that local governments will provide incentives to
support the private sector and to develop practical DDPs, RGP will operate a performance
based grant scheme, or Trust Fund, which will provide discretionary finance to local
governments to implement DDPs. The Program could also support district authorities in
mobilising additional resources to augment the Trust Fund (e.g. NGO capacity and funds as
well as other interested international donors), to implement agreed DDP priorities. UNDP will
ensure that all procedures of participatory and transparent decision making and management
of the Fund are in place.
Through the Trust Funds, projects that have an effect on local economic/ agriculture development
will be supported. As mentioned above, the Trust Funds will be performance based and will
underpin economic development/ business environment performance of targeted districts against
benchmarks set up jointly with local stakeholders in the framework of implementation of the
economic part of their development plans. RGP will seek to develop a possible incentive
mechanism to reward performance around government’s economic development enabling actions.
A system of performance criteria will be designed which will reward local governments for their
plans for economic development; for their delivery on these plans and for the judgment of business
civil society on their performance. These incentives will make resources available to local
governments which they will be able to prioritize in pursuit of their wider social objectives within
their DDPs. These resources can be further augmented by local governments partnering with other
external partners, such as NGOs, to support DDP activities.
During the inception phase criteria for the Trust Fund mechanism will be developed and agreed
with partners. This will include simple guidance for the assessment of the environmental impact of
any infrastructure projects, and where necessary, plans for subsequent environmental
management.
As this work develops it will be important to consider how the powers of the sub-district may
change as the new Law on Local Self-Governments is rolled out. In 2011 sub-districts (jamoats) are
supposed to have their own budgets which may impact on their abilities to engage more directly in
economic development through their own resources.
Along with the support to infrastructure on economic/ agricultural development, strong emphasis
will be made on the issues of environment (with particular focus on climate change and sustainable
land management aspects in agriculture), disaster risk management, energy (both production and
efficiency) and conflict prevention. Besides gender these will be important cross cutting themes of
the RGP intervention.
District governments will be assisted in developing transparent criteria for funding projects from the
Trust Fund. These preferential criteria will also encourage community ownership, self-reliance and
sustainability of projects funded. Projects aiming at involvement of private sector into service
provisions (like private-public partnership) can also be encouraged as beneficiary for redefining
public and private sectors’ roles.
Through management of the Fund, the sub-district government will learn and build capacity in
participatory decision making over resources and accountable, finance management. Availability of
government generated revenues is still limited in the case of many district authorities. With the
improvement of their revenue raising capacities and gradual delegation of authority of funds to this
level however, district authorities should be better prepared to manage resources in an appropriate,
transparent and accountable manner.
Previous UNDP and the International Organisation for Migrations (IOM) experience has shown that
in Tajikistan, being a country where accountability of the government to the population is not
reinforced through taxation system, community contributions (including remittances of labour
migrants) can be an attractive additional source of co-funding for priority infrastructure projects at
the community level. With the support of IOM, UNDP will explore further the use of remittances for
the co-funding of small infrastructure projects in support of local economic development. This
carries with substantial risks – families should not be pressurised (through community pressure or
11

through RGP) to provide resources for development schemes or social infrastructure that should
normally be the responsibility of Government. RGP will be alert to the risks of families releasing
savings for such projects, ensuring that any such contributions are provided on a purely voluntary
basis. RGP will also ensure that family savings are not used in a way that would erode
government’s accountability for the provision of basic services, or would undermine public
expenditure decisions and responsibilities.
Following a more detailed assessment of district and sub-district government’s competencies in
supporting local economic development during the inception phase (see detailed description of the
phase below), other possibilities for improving government performance in providing transactional
services to private sector development will be identified and capacity building strategies will be
elaborated. These may include simplification of business registration and other business-related
administrative services. Demonstrated experience in successfully establishing “one-stop-shops” for
registration of businesses, have previously been piloted by the IFC, WB and GTZ. The “one-stopshop”
model is seemingly a good practice emerging in Tajikistan that can be further replicated in
Sughd region under the RGP.
In order to provide transactional services effectively, the government will require greater technical
knowledge of private sector development; an understanding of the rewards to local government
from a vibrant and growing private sector, and an understanding of the powers which local
governments already have to facilitate economic development without necessarily requiring
additional financial resources.
Business and agricultural advisory/extension services
This component of the Program will be implemented under the coordination of GTZ. RGP will build on
previous GTZ and UNDP experiences in supporting private sector and non-cotton agricultural activities,
which will aim to secure added value for the farmers within the target area. Interventions under this
component will aim to foster capacity development and empowerment of local structures and rural
economic agents - a precondition for improving a supportive environment for sustainable rural
economic growth. If needed, the implementing agencies will also ensure that that the Programme is
systematically supported by specialist expertise in rural economic development by a reputable
development consulting, training and research organisation providing continuous advice, training and
backstopping throughout the lifespan of the Programme.
RGP clients/beneficiaries will range from smallholder farmers to processors, micro to medium
sized business. Thus, the range of advisory services will vary according to their needs along the
value chain. Through developing RGP intervention packages, special attention will be given to the
“making markets work for the poor” approach (M4P), along with activities that aim to secure value
added chains in agricultural production. Emphasis will be also made on economic empowerment of
women, which is especially important for the areas affected by labour migration where women are the
main economic force.
The main domains suggested for RGP support that will be further explored and elaborated in detail
during the inception phase include:
MSME promotion along the value chain, particularly in the F&V sector. In order to improve the
situation of smallholder farmers the entire value chain has to be considered. Without strong traders
and capable processing plants, which are internationally competitive, farmers will soon realise the
limits of the market. Only an internationally competitive F&V production will allow Tajik producers to
compete at the domestic market with the foreign companies active in Tajikistan that meet
international quality standards. RGP will introduce the value chain approach by supporting
exemplary MSMEs in the framework of the Sughd regional F&V sector development strategy.
Based on the identification of the constraints for the F&V sector along the value chain jointly with
the main stakeholders during the inception phase further support can be provided along the
following lines:
- Supporting farms to consistently supply the processing plants (small farmers and
women headed farms will be a special target),
- Improving the marketing information system and the use of the system by farms,
processors and traders for improving their business,
- Raising management effectiveness of SME in the F&V sector to international standards
through training and advisory services on managerial skills, financial monitoring as well
12

as technical, marketing, and production issues. This will imply a need to enhance the
demand and the supply of paid advisory services for SME in this sector.
- Supporting SME in the F&V processing sector to access needed credit facilities (see
also below) for financing needed investments for modernising and supplementing the
equipment (also in the area of packaging), in some cases also to meet the cash
requirements for finance running costs such as purchases of raw materials. Special
support in accessing credits will be required by small farmers and women.
- Improving the quality control system, in order to increase international competitiveness
and to establish a Tajik trade mark that stands for quality. The quality control system
should comprise of quality control mechanisms within processing companies, the
quality control function of associations for member companies, and finally the control
function of governmental institutions.
It is expected that through improved profitability of processing companies the investments in the
sector can increase.
Good advisory services for MSMEs in the area of financial monitoring and analysis, particularly in
technical areas are rare to non-existent. 14
In support of the development of the F&V sector the project intends to link to high-level consultants
in this area working at the Central Asia regional level. Relations can be established with
consultants/ consulting companies in neighbouring countries, like the Agro-Business
Competitiveness Centre in Bishkek supported by the WB. By training of such specialists the
Program would provide advisory services in a combination of an international expert twinned with a
national/ regional one. From being provided free of charge (which is initially important for market
development reasons), these services will have to be gradually paid for by beneficiary companies.
In addition to filling obvious gaps in the advisory service landscape, RGP can also upgrade other
existing business management services in the areas of business planning, marketing, etc.
Particularly the project can continue the activities of ITC in the areas of quality control and
introduction of international standards (HCCAP, ISO and Global Gap). It has to be found out if
existing business associations (BA) play a role in placing demand for respective consulting services
and in providing information to their member MSME about good quality services. The associations
will have to lobby for good (non corrupt) governmental quality control services as this is finally in
the interest of all companies. The associations’ capacities in these will be strengthened.
Training and advisory services for businesswomen. During the inception phase the partners
will clearly define how to mainstream gender issue in the above mentioned advisory activities and
what additional package is needed to specifically target women-entrepreneurs, not necessarily
linked to F&V sector. The support package may use nucleus/group approach and include the
following activity lines:
- Assessing the market for micro businesses led by women,
- Selecting and training potential trainers/ advisors. Supporting them in initiating,
identifying and assisting women groups (general and professional), identifying
businesses adequate for the group members, general training in business planning and
management, carrying out with them a local market research, jointly purchasing inputs
to save costs; assisting them to access credits, associate and network.
This activity block will be implemented jointly with the National Association of Businesswomen of
Tajikistan (NABW) and/or other interested service providers.
Developing agricultural extension services. In supporting agricultural extension services for the
F&V sector, the GTZ’s previous experience of the Training and Extension Centre piloted in Osh,
Kyrgyzstan, is to be considered. Beyond the F&V sector, agricultural extension services are
required to support small farmers to introduce best crop and animal husbandry practices, farm
management, and agricultural, natural resource and water management practices to prevent land
degradation, soil salinity and loss of soil fertility. Assisting farmers in using environmentally sound
practices and changing traditional practices to adjust to climate change is another area where
assistance is required. Special efforts are to be made to reach female headed farms, female
farmers and poor farmers.
14
Currently available services on accounting, marketing and business plan writing are rather theoretical and not based
on sound sectoral knowledge
13

Lessons learned on the sustainability of agricultural extension services can be drawn from ‘Agro
Shops’ projects previously implemented by Mission East and Oxfam. The potential for the Business
Advisory and Information Centres (BAICs) previously supported by UNDP in Sughd region to
evolve into extension service providers will also be considered. 15 Successful BAICs will need
capacity building support in the development of service packages, outreach to poor and
geographically disadvantaged communities. The Program will have to address the problem of
reluctance of extension service users to pay for advice and consultations building on existing good
practices in this domain.
In Sughd there are a number of agricultural advisory organisations, like ZarZamin that are active in
supporting farmers producing vegetables for processing companies in the framework of the Swiss/
Dutch sponsored project Local Market Development (LMD). There is also the USAID-funded
Agrofin+ project supporting agro-production in Sughd region. RGP will analyse capacities of
existing local organisations in order to further invest in their organisational development. RGP will
abstain from creating new structures.
Experience shows that trying to cross-subsidize advisory services through businesses that provide
agricultural inputs for example, has a distorting effect on the nature of the advice given. The advice
provided is not independent of the products being sold. RGP will play a key role in encouraging all
programmes working in this field to buy into a common strategy that supports a model of cost
recovery.
A professional agricultural advisory service also cannot survive professionally long time in isolation.
For a good advisory service it is essential to transfer information about the farmers’ needs to
knowledgeable specialists, who in turn should be able to adapt worldwide knowledge (research
results) to local conditions and to transfer the know-how down to farmers. This is especially vital in
the context of emerging climate change adaptation needs. To meet this vertical integration
principle, an agricultural advisory system needs to be established at least at regional, if not at the
national, level. RGP will work closely with the TACIS project, Support to establishment of
Agricultural Advisory Services (SENAS), which is networking agricultural advisory services
countrywide. In the framework of SENAS the association of advisory services, AgroDonish, was
established. RGP will need to support linkages to be made with government institutions (e.g. on
agriculture research) and with the business associations and their apex institutions to ensure the
best possible advice is being provided.
Prior to conducting functional analysis that would provide clear recommendations with regards to
the future role of different public institutions in supporting agricultural extension services in
Tajikistan, it is difficult to elaborate an adequate approach to supporting governmental institutions in
this area. The project will closely monitor the progress of institutional reform in the agricultural
sector and will adjust its strategies according to opportunities that may arise.
Support to the improvement of selected rural infrastructure through the district Trust Funds, such as
irrigation systems managed by the water Users Associations (WUA), roads, bridges, markets, etc.,
will be instrumental for enhancing agricultural activities and income of the rural population. As
mentioned earlier, UNDP will ensure that projects with a potential impact on economic activities are
identified in the course of the development planning process, are adequately elaborated and
submitted for funding from the district Trust Funds. Environmental protection, preventing water or
wind impacts on erosion and loss of soil fertility, natural resource management (reforestation,
commercial plantations, introduction of bio-drainage systems, hill slopes gardening, improvement of
summer pastures and introduction of new sustainable energy technologies, etc.), efficient energy
use important initiatives for sustainable agriculture which will be considered within the frame of the
RGP. Additional criteria for funding infrastructure projects can include the facilitation of cross border
small trade – which has great potential in Fergana and Zerafshan valleys.
Organisational development of the private sector
This component of the project will be led by GTZ and will ensure that MSMEs increasingly receive
professional services and have their concerns advocated by organized member focused business
associations and their apex institutions. This output focuses on strengthening the organizational
capabilities of BAs) not just in their advocacy role but also in their ability to deliver services that are
15
In particular the model of the BAIC in Ayni, which managed to combine legal, agricultural and business advice with
services in business planning, training (bookkeeping, computer skills, etc.) and business incubator activities (leasing of
bee colonies, sales of products, medicinal plants, etc.
14

esponsive to the needs of their members. To achieve this, the following strategic directions are
proposed:
Development of Business Associations and their apex institutions. The Union of Business
Associations of Sughd Oblast (UBASO) is presently mainly bundling advocacy activities of their
members towards the regional Government. Most of the UBASO members are also members of
the Coordination Council of Business Associations (CCBA) at national level. The main task of
CCBA is also advocacy.
GTZ is separately proposing to help CCBA at national level to transform into a Centre for
Association and SME Excellence (CASE), which will reinforce its advocacy mandate by providing
additional services to its member associations. Greater service provision will attract more SME
membership which in turn will result in greater government recognition of their legitimate
representation of the private sector. In this context RGP will support UBASO to become the
regional representative of CASE in Sughd Oblast. With support of the RGP UBASO will develop
similar services as CASE at national level to strengthen the services of business associations in
Sughd Oblast and to become a stronger voice at regional level for advocacy activities.
This organisational and functional upgrading of UBASO is also needed to develop its capacities as
a counterpart for governmental institutions, such as the regional State Committee for Investment
and State Property. UBASO and its members in Sughd will be supported in:
- Training and educating association managers on leadership, certifying managers and
associations to work according to international standards.
- Organising information exchange among members, including organisation of trade fairs,
shows and exhibitions.
- Establishing of a database about members, MSME development, on high level specialists
and advisors, and on statistics and disseminate the information among members,
government and other stakeholders.
- Providing pooled advisory services for members (e.g. legal advice)
Advocacy alone will not maintain the interests of the membership. Once services are provided
members are more likely to be willing to pay fees. Presently UBASOs advocacy services are free.
Strong and professional business associations are important for government too in order to
communicate with the private sector constructively.
In addition to the support of the apex structures, RGP will provide organisational development
assistance to their members – BAs – in such areas as maintaining their membership base, service
provision, advocacy, and membership in UBASO.
• Strengthening Associations of Dekhan Farmers (ADF). Previous UNDP experience has shown
that small farmers’ income can be increased through further diversification of agricultural practices
and improved access to support infrastructure. 16 In recent years, farmers, including women and
poor, have increasingly gained access to individual plots. Dekhan farms in cotton producing regions
started seeking diversification of their production. However, farmers lack knowledge on new crop
applications, animal husbandry practices and farm management. Hence, there is a major problem
with accessibility to input supplies, availability of functional farm machinery and access to
affordable agricultural finance credit.
Smallholder farmers and micro enterprises need a specialized organization, which is able to form
groups for cost efficiency reasons but also for networking farmers / micro enterprises for further
self-help activities such as joint purchase of inputs or marketing. These are usually services which
membership based organizations such as business associations cannot provide.
Thus, supply of agricultural inputs, especially spare parts and services for agricultural machinery,
can be improved through establishing agro tool banks, owned and managed by ADFs (this was
piloted by UNDP CP in the former cotton producing areas of East and West Khatlon and Sughd). 17
Management of farmer field schools is another potential area of capacity building of ADFs. 18
16 Farmers that own between 2 and 10 ha of land
17 Inputs are supplied to farmers on a credit basis and fees for hiring services are based on commercial tariffs. In the
frame of the RGP, the model will be further replicated with special attention paid to financial and credit management.
18
Such schools bring together concepts and methods from agronomics and experiential farmers’ education and
community development, whereby learning takes place through observing and analyzing practical experiments
conducted in demonstration plots. Based on identified needs and issues, farmers identify experiments to carry out on the
demonstration plots and meet regularly during the cropping season to observe and learn (self-directed research, training
and promotion of best practices).
15

Through demo-projects, agricultural innovations (such as greenhouses for example) can be piloted
by ADFs and recommended for replication in other areas. Under the RGP, support to ADFs will be
coordinated with the CIDA-funded CECI project that also aims at strengthening ADFs in some
areas within Sughd region.
Organisational strengthening of ADFs will be organised in partnership with the National Association
of Dekhan Farmers (NADF). This can imply capacity building in technical base, training, networking
and scaling up to district and oblast levels, as well as support to establishing new ADFs of smallscale
farmers in districts where associations have not yet been established.
Awareness raising amongst farmers will be another important area of ADF activities which requires
assistance. This can help to tackle the problem of legal illiteracy within rural areas in Sughd region.
It is noted that deficiency in the awareness of rights and obligations is a key underlying cause of
rights abuse, corruption and poor revenue collection at the local level for farmers. This activity will
be mainstreamed into the activities of both ADFs and functioning BAICs and will be conducted in
cooperation with the district level Land and Taxation Department.
Vocational training and labour market
The private sector in Tajikistan has identified unskilled labour as a constraint. Furthermore, labour
migration (largely unskilled) is an important livelihood strategy for many young men in particular.
RGP will work with the District Employment Centres (DECs) to provide a greater range of skills
demanded by the private sector through adult vocational training. This component will be led by GTZ
and will foresee the following activity blocks:
Support to local vocational training schemes. DECs are the responsibility of the Ministry of
Labour and Social Protection (MLSP) but are however, organised as a semi-governmental
structure with a national centre and de-concentrated district facilities. They provide short term
vocational training for adults. Initial vocational training on the other hand is part of the
educational system and therefore falls under the responsibility of the Ministry of Education
(MoE) and includes up to 40% of the national curriculum for schools. RGP will focus on shorter
duration adult vocational training with the DECs.
RGP will provide continuity to GTZ’s experience of working with DECs in Sughd and other
provinces, and with IOM to reform the curricula and develop professional standards for a
number of professions. Profiles will be developed for key professions (e.g. what does a
mechanic need to know after training) with definitions of major training modules needed to
reach this standard and decisions on who will provide accreditation. This process is taking
place with support from the MLSP and representatives of employers and companies in
coordination with the Ministry of Education (MoE). This process is important in order to achieve
accreditation of educational standards.
Methodologically, GTZ supports a model of curriculum development that brings the DECs
together with businesses not only in the development of curricula but also in practical teaching
and placement opportunities in selected companies. Partnership with private sector in
curriculum development for vocational training to ensure market demand orientation of the
courses will be also important to ensure direct linkages between vocational training and the
labour market.
Presently GTZ is supporting the training of teachers on the improved curricula and supports
DECs with some equipment. DECs are encouraged to hire out some equipment in order to
subsidise running costs, pay for routine maintenance and increase teacher salaries in order to
attract more qualified personnel.
Although RGP will focus on improving adult vocational training in DECs, the curricula
developed can also be used to support the initial vocational training that takes place in
vocational schools under the MoE. It is also expected that as a result of working closely with
MoLSP and MoE on professional standards, cooperation between the two ministries will
improve in both adult vocational training and initial vocational training.
UNDP will provide further support to the MoLSP in establishing a Modular Training Centre in
Khujand, alongside the already established centres in Kulyab, Gharm and Dushanbe. Such
training will assist the vocational training centres in Sughd oblast in developing the market and
demand oriented curricula for professional and vocational training.
16

The special focus of DECs will be to strengthen qualifications for labour migrants, and to
increase outreach services to provide support to women and young people from vulnerable
families.
• Labour migration rights and policies. As employment generated through labour migration
significantly contributes to income sources for the rural population in Sughd region, the work of
IOM, in cooperation with local level organisations in promoting sound and responsible migration
practices and awareness of migrants about their rights will bring necessary synergies to
UNDP’s work on enhancing skills and qualifications among labour migrants.
Furthermore, through partnership with IOM, RGP will use evidence from Sughd to influence
national level policies and regulations in support of safe and sound labour migration, as well as
measures (taxes, customs, and duty exemptions) to stimulate the investment of labour
migrant remittances into the national economy. Solid links will be established to the ongoing
DFID Regional Migration Programme for Central Asia which has a broader policy influencing
remit.
Access to Micro-credit and Rural Finance
As an important condition for the development of entrepreneurship and livelihoods, the RGP will
provide support to increasing the development of micro-credit services. This component of the Program
will be led by GTZ. It foresees the following activity areas:
• Linking MSMEs in F&V sector to financial services. To satisfy the credit market with
adequate credit products, credit providers will be systematically screened for their capacities to
serve the various elements of the V&F value chain. The activities for this sector will be
exemplary for other sectors. Furthermore, RGP will support negotiations between MSME
representatives (associations) and respective credit institutions in order for them to define credit
products tailored for particular target groups and to provide access for the association members
to loans in general and loans under preferential conditions in particular. By entering into such
agreements, the associations or other service providers can help the credit institution to
develop the credit market and/or reduce credit repayment risks. This can be especially
beneficial for enhancing credits for agricultural activities. A farmer, whose production plan is
developed with the assistance of a recognised advisory service, can receive higher scoring
when processing the credit application. In this area the close links between the
MSME/agriculture support and the microfinance components can be established.
• Micro-financial Institutions (MFIs) Development. RGP will also support further development
of Micro-Lending Funds (MLF) and Micro-Lending Organisations (MLO) in Sughd region,
including two MLFs previously established under the UNDP CP. The two MLFs are still on the
way to reaching their self-sufficiency. This can be achieved through reduction of costs and/or
revenues increase, and redefining current relations with JRCs that funded them.
In general, MLFs/MLOs need to diversify their support packages to ensure that broader
community needs for micro-credit services are met, and subsequently contribute to enhancing
a larger variety of local economic activities. Under the RGP, MLFs/MLOs must adjust their
policies, develop robust business plans, and improve their management information systems.
Hence, appropriate support measures will be defined through conducting a detailed
assessment of MLFs/MLOs. Following this assessment, a support package (which will include
training, advice, regulatory and technical base, expending service package, expending loan
portfolio) to MFIs will be provided jointly with the Association for Microfinance Organisations in
Tajikistan (AMFOT). One of the challenges for MLFs is to keep track of their social mission and
to ensure accessibility of microfinance services to more vulnerable groups, including women.
Introduction of deposit services and mobilisation of savings in rural areas of Sughd region,
particularly for rural poor and women will be another focus of RGP support.
It will be critical to establish a credit impact M&E system to evaluate the access of target
groups, particularly of the low income groups, and the impact of micro-finance services on
household and enterprise growth.
In addition, RGP will provide MLFs/MLOs access to training and consulting in the
transformation process into Micro-Deposit Organisations (MDO). A lead in provision of these
services will be taken by AMFOT following training of its experts and trainers.
17

Support will be provided to apex MDO Bovari va Khamkori in developing its services for
MLFs/MLOs in Sughd region. One of options that needs to be reviewed during the inception
phase is to provide this apex institution with finance to improve refinancing services to
MLFs/MLOs in Sughd.
Project inception phase
The inception phase will last six months from January till June 2010. The inception phase will be jointly
led by the two implementing agencies – GTZ and UNDP. It will refine joint approaches, concepts, clear
definition of roles and establish the baseline for the RGP. During the inception phase, RGP partners
will work together to develop well considered and coordinated project implementation plans.
Detailed needs assessments will be conducted in targeted districts during the inception phase with a
focus on governance/ economic development and private sector empowerment needs. Outcomes of
these needs assessments should inform the strategic and methodological development for RGP. The
following steps will be undertaken during the inception phase:
Under the Governance Component
- In consultation with the regional oblast government, targeted districts and sub-districts will be
selected. In order to reach a critical mass of jamoats (sub-districts) within the Sughd region, the
project intends to involve approximately 60 out of 106 jamoats;
- Assessing the capacities of the local governments (including jamoats) and their role in rural
economic development and defining adequate support packages to improve their capacity
development;
- Baseline development will help to identify which transactional services can be improved at the
district and sub-district levels in support of private sector development. The baseline will also
seek to indicate the level of progress made by local governments towards creating enabling
economic environment;
- Development of the Trust fund mechanism (including environmental guidance)
- The vision of national level government in regard to the future role of jamoats in the local
governance system will be clearly defined during the inception phase. Once defined, the vision
of local level governance roles will be fed into the design of training packages which will be
rolled out to national level government actors, for implementation and capacity development to
lower levels of government;
- A comprehensive assessment of current practices in district development planning with assist
RGP to identify an appropriate planning methodology which reflects district level planning
around economic development;.
- Defining a clear role of the RGP in supporting the functional review process under the Working
Group N6 in collaboration with other donors and stakeholders;
- A capacity assessment of JRCs, including their development potential and sustainability will be
undertaken. A group of JRCs that have sustainability potential will be defined and a relevant
support strategy will be elaborated.
- Clear definitions of the roles and functions of sub-contractors (IOM and others) will be
established;
- Mapping of other relevant international interventions and actors to avoid overlapping and
ensure synergies.
Under the Business Advisory and Agricultural Extension Services Component
- Conducting baseline survey on production and processing of F&V in Sughd region. This
assessment should not duplicate other surveys and assessments carried out e.g. by ITC and
GTZ Project during project phase I. Rather, it should update GTZ’s knowledge of problems and
potentials in this sector for being able to generalise of what is known from supporting individual
companies. The assessment would be done in a participatory manner with UBASO
representatives and representatives of the F&V processing companies, possibly also from the
regional State Committee for Investment and State Property. Thus, this exercise at the same
18

time would inform and motivate major stakeholders for the subsequent elaboration of a
development plan for the F&V sector in Sughd;
- Assessing the capacities and performance of services needed for developing fruit and
vegetable production, processing and marketing with particular emphasis on adapted advisory
and credit services for all elements in the value chain;
- Conducting baseline survey on associations and other service providers for MSME and farmers
(incl. BAICs supported in the past by UNDP) and defining service providers to be supported
and modes of support. Identify service provider for organising advisory support scheme for
women entrepreneurs will be also done at this stage;
- Clarification of the vision of national level government on the potential role of public institutions
in agricultural extension services in order to define the model of extension services to be
supported;
- Mapping of other relevant international interventions and actors to avoid overlapping and
ensure synergies.
Under the Development of Associations of Businesses/farmers and their Apex Structures
Component
- An assessment of structure, membership, services and other aspects of existing Bas in order to
determine possible support services through the UBASO. Also, other non-commercial and
commercial service providers, such as local consulting companies, should be assessed on their
actual capacities for serving MSME. The motivation of associations and other services
providers for becoming member with the improved UBASO / CASE goes along with this
assessment; and,
- Defining more precisely, support packages for business associations
- Mapping of other relevant international interventions and actors to avoid overlapping and
ensure synergies.
Under Vocational Training Component
- Assessing the capacities of the DECs and defining the well focused capacity building
assistance it requires.
Under the Micro-finance Component
- Assessing the capacities of the MFIs and other financial services available in Sughd region and
defining adequate support packages;
- Defining potential role of apex MDO Bovari va Khamkori in providing services to MFIs in Sughd
region and elaborating a relevant support strategy;
- Defining potential synergies with the EBRD’s Tajik Agriculture Financing Framework (TAFF)
program aimed at supporting access to microfinance in the agricultural sector.
All assessments will be conducted jointly by GTZ and UNDP. The joint mission will secure synergies
and joint coordination between all three pillar components and will extend a shared understanding
between the two agencies, ensuring that the Program strategies are integrative of experiences of each
agency.
The RGP Inception phase will last till the end of June 2010 (six months) and will produce an
elaboration of joint approaches, strategies, initial baseline, an M&E strategy with more specific and
refined indicators, as well as detailed budgets for each component. Each agency will sign a direct
funds allocation agreement with DFID in accordance with their respective activity interventions.
Results determined at the close of the inception phase will be a subject to approval of the RGP
Program Steering Committee (refer to chapter IV).
TORs for the Steering Committee will be agreed with Government of Tajikistan during the inception
phase.
19

Logical Framework
PROJECT TITLE
Rural Growth Programme in Sughd region, Tajikistan (DFID)
GOAL Indicator Baseline Dec 08 Milestone 1 -2011 Milestone 2 -2012 Target 2012 Assumptions
To enhance more inclusive economic development in
rural areas of Tajikistan in support of the Government’s
National Development Strategy (NDS) and the Poverty
Reduction Strategy (PRS)
Contribution of private
sector to GDP
43% 50% 66% 66%
Source
GoT PRS monitoring progress reports 19
Growth in SME output Baseline Dec 08 Milestone 1 -2011 Milestone 2 -2012 Target 2012
100% 110% 120% 120%
Source
GoT PRS monitoring progress reports
Improvement in rating of
Tajikistan on investment
and
business
environment indicators
Baseline Dec 08 Milestone 1 -2011 Milestone 2 -2012 Target 2012
164 place in the list 150 place in the list 124 place in the list 124 place in the list
GoT PRS monitoring progress reports
Growth in aggregate
output in agriculture
sector
Poverty level in Sughd
region
Baseline Dec 09 Milestone 1 -2011 Milestone 2 -2012 Target 2012
107,9 annual ratio N/A 121 against 2008 121 against 2008
Source
GoT PRS monitoring progress reports
Baseline Dec 08 Milestone 1 -2011 Milestone 2 -2012 Target 2012
Sughd 69% (2.15
USD per day)
Source
Poverty Threshold Survey
N/A 65% 65%
19
PRS indicators are not all reliable or usable. RGP will review these during inception and identify those that are most robust.

PURPOSE Indicator Baseline – Dec 09 Milestone 1 – 2011 Milestone 2 – 2012 Target – 2012 Assumptions
To improve local
environment for income
generation
and
employment creation in
Sughd oblast, including
for women and poor
Percentage growth in
agro-processing sector in
Sughd region
Improved
perception
government’s
and
accountability,
among women
citizens’
of
general
financial
including
To be defined during
the inception phase
Source
Regional statistics
5% annually 5% annually 5% annually
Baseline – Dec 09 Milestone 1 – 2011 Milestone 2 – 2012 Target – 2012
To be defined during
the inception phase
N/A At least 60% of
respondents are satisfied
with the level of
accountability, including at
least 30% of women
At least 60% of
respondents are satisfied
with the level of
accountability, including at
least 30% of women
Overall national
regulatory environment
for private business
development does not
worsen
Civil unrest in Sughd
Oblast prevents
programme activities
Source
Citizen perception survey to be conducted under GRP (baseline – beginning of 2010, end line – 2012)
No major natural
disasters occur
Growth in number of
private businesses
established and
individual entrepreneurs
registered (regional)
Baseline – Dec 09 Milestone 1 – 2011 Milestone 2 – 2012 Target – 2012
43 000 reg.
businesses; data not
disaggregated by
gender
2% growth in reg.
businesses and
0.5% headed by
women
2% growth in reg.
businesses and 0.5%
headed by women
2% growth in reg.
businesses and 0.5%
headed by women
Source
District statistics
Growth in level of official
employment in targeted
rayon, incl. among
women (regional)
Baseline – Dec 09 Milestone 1 – 2011 Milestone 2 – 2012 Target – 2012
228,200 people
employed (17%);
Data is not
disaggregated by
gender
2% annual growth in
employment; Data
disaggregated by
gender
2% annual growth in
employment; Data
disaggregated by gender
2% annual growth in
employment; Data
disaggregated by gender
Source
Regional statistics
Improvement of income
generation environment
perception by citizens,
incl. by women and poor
Baseline – 2010 Milestone 1 – 2012 Milestone 2 Target -2012r
To be defined during
the inception phase
N/A At least 50% of
entrepreneurs (including
30% of women) report
perceived improvement of
environment for income
At least 50% of
entrepreneurs (including
30% of women) report
perceived improvement of
environment for income
22

Increase in private
investments
Improved business
climate in Sughd region
Source
generation
generation
Citizen perception survey to be conducted under RGP (baseline – beg. 2010, end line – 2012)
Baseline – Dec 09 Milestone 1 – 2011 Milestone 2 -2012 Target -2012
Total private
investments in the
districts of region
52,542.2 Som
Source
N/A
Regional and targeted district statistics
total 5% increase in priv.
investments in targeted
rayons
Baseline – Dec 09 Milestone 1 – 2011 Milestone 2 -2012 Target -2012
No monitoring
system yet in place
Source
Monitoring
is in place
system
At least 50% of
entrepreneurs interviewed
judge government support
as improved (with at least
25% women)
Citizen perception survey to be conducted under RGP (start early 2010, end 2012)
Monitoring reports of the Committee for Investment and State Property
total 5% increase in priv.
investments in targeted
rayons
At least 50% of
entrepreneurs interviewed
judge government support
as improved (with at least
25% women)
INPUTS (USD): DFID (USD) GTZ (USD) UNDP (USD) Total (USD) DFID SHARE (%)
INPUTS (HR)
12,000,000 3,675,630 3,000,000 18,675,630 64%
DFID (FTEs)
NB: Operational costs will be extracted from the total budget, estimated at approx. 18% of total project costs.
OUTPUT 1 Indicators Baseline – Dec 09 Milestone 1 – April 2010 Milestone
2 – 2012
The RGP
inception phase
is completed
Baseline for RGP and
relevant assessments are
available (incl on jamoats)
Approval of RGP and its
approaches by the relevant
government partners
General baseline is available but a more detailed one is a
subject of clearly agreed areas of intervention (incl.
geographic ones –districts and sub-districts).
Assessments of governments capacities and
competencies (incl. jamoats under the new Law) still need
to be done
The baseline is developed;
capacity assessments are
conducted and support packages
to different level of governments
are defined
Approval of relevant government
partners is received and
Target
– 2012
N/A N/A
Assumptions
23

M&E strategy is available
Approved inception report
with agreed roles between
UNDP and GTZ and funds
allocation agreements with
DFID
Source
Baseline studies, updated logframe
approaches are agreed upon
M&E strategy is elaborated
Baseline – Dec 09 Milestone 1 –June 2010 Milestone
2 -2012
Detailed elaboration of approaches, concepts, roles and
budgets is due following the joint inception phase
Source
The Memorandum, the agreements
Inception phase is completed and
report submitted to the PSC
N/A
Target
-2012
N/A
IMPACT
WEIGHTING
RISK RATING
10 % low
INPUTS (USD): DFID (USD): GTZ (USD) UNDP (USD) Total (USD) DFID SHARE (%)
318,318 150,000 188,052 656,370 48,5
INPUTS (HR) DFID (FTEs)
OUTPUT 2 Indicators Baseline – Dec 09 Milestone 1 –
2011
Milestone 2 – 2012 Target – 2012 Assumptions
Improved capacities of
local governance actors
(particularly at rayon and
Jamoat levels) for local
development planning
emphasising rural
economic growth, for
plans implementation and
monitoring in line with
NDS and PRS
a) Volume of funds utilized
by the district and subdistrict
governments for the
implementation of their DPs
from: Nat. public budget
(incl. MTEF); own budget
and revenues; nonbudgetary
funds (incl.
voluntary funds from private
sector and SCOs);
international sources
b) System for monitoring
economic development
performance of district and
sub-district DPs is in place
Insignificant % of
existing DDPs budget is
delivered on average
(figures can be defined
in the beginning of
2010). Jamoats do not
have DDPs
Source
At least 10 % of
district and subdistrict
DPs budget
is delivered on
average
DDP annual progress review (beginning from Jan 2010)
At least 25 % of district
and sub-district DPs
budget is delivered on
average
At least 25 % of
district and subdistrict
DPs budget is
delivered on average
Baseline – Dec 09 Milestone 1 -2011 Milestone 2 – 2012 Target -2012
Some indicators are
introduced in district DPs
but no comprehensive
System
monitoring
economic
for
System for monitoring
economic development
performance is introduced
System
for
monitoring economic
development
Regional, district and
sub-district authorities
are delegated broader
authority for local
revenues collection and
their discretionary usage
District and sub-district
authorities are able to
fund initiatives aiming at
economic development
24

c) Availability and diversity
of participatory mechanisms
of decision-making and
development plans
monitoring and budgeting at
regional, district and jamoat
level
system yet in place
Source
Annual DDP reviews
development
performance is
introduced in all
targeted districts
in all targeted sub-districts performance is
introduced in all
targeted districts and
sub-districts
Baseline – Dec 09 Milestone 1 -2011 Milestone 2 – 2012 Target -2012
Public hearings and
advisory councils applied
in the past in individual
cases
Source
80% of targeted
districts apply at
least 2
participatory tools
80% of targeted jamoats
apply at least 2
participatory tools
Documentation of DDP elaboration and review process, local level regulations
At least two tools
applied by 80% of
targeted districts and
80% of targeted
jamoats
Civic liberties in
Tajikistan are not
restricted and remain at
least at the current level
Other donors/NGO
financing undermines
reform of local
government
d) Number of rayons and
jamoats implementing
existing provisions with
regards to enhancing
business environment
Baseline – Dec 09 Milestone 1 -2011 Milestone 2 -2012 Target -2012 Government economic
initiatives and investment
Local authorities are
in Sughd oblast are
well aware of legal
carried out as planned
Some laws exist under
which local governments
can support business
environment but are not
widely complied with.
Redistribution of tasks
and responsibilities still
is to take place following
functional reviews
Source
Development plans annual reviews
Local governments
are aware of
regulatory
provisions allowing
them to improve
business climate;
Piloted
experiences are
launched
Relevant functional
reviews supported
Local authorities are well
aware of legal provisions
and piloted experiences;
Practices for improving
business environment are
introduced in at least 50%
of targeted rayons and
jamoats
National
level
recommendations based
on functional analysis are
available
provisions and
piloted experiences;
Practices for
improving business
environment are
introduced in at least
50% of targeted
rayons and jamoats
National level
recommendations
based on functional
analysis are available
Government policies
being implemented at the
local level lead to
improved business
environment
IMPACT WEIGHTING RISK RATING
20 % low
INPUTS (USD): DFID (USD): GTZ (USD) UNDP (USD) Total (USD) DFID SHARE (%)
2,820,000 187,212 1,605,282 4,612,494 61
25

INPUTS (HR) DFID (FTEs)
OUTPUT 3 Indicator Baseline – Dec 09 Milestone 1 -2011 Milestone 2 -2012 Target -2012 Assumptions
Producers/farmers and
MSMEs have access to
appropriate,
professional, and
sustainable business
and
technical
advisory/extension
services
e) Increase in clients
satisfaction with
advisory/ training
services
Demand for paid
advisory/ extension
services is limited;
satisfaction is not
relevant in this
context.
Source
At least 50% of
advised/trained
farmers/ entrepreneurs
(including 20% women)
confirm that services
received had a positive
effect on their business
At least 80% of advised/trained
farmers/ entrepreneurs
(including 20% women) confirm
that services received had a
positive effect on their business
At least 50% of advised/trained
farmers/ entrepreneurs
(including 20% women) confirm
that services received had a
positive effect on their business
Overall economic
climate is
favourable enough
for clients to want
to use services
and be prepared to
pay for them
Feedback from service providers, their budgets (cost-recovery); Clients satisfaction survey (2011,2012)
f) Replication of
practices
demonstrated
through demo plots
and farmer field
schools
g) Willingness of
clients to pay for
advisory/ training
services
h) Number of
MSMEs
(entrepreneurs and
farmers) being
served by training/
advisory services
Baseline – Dec 09 Milestone 1 -2011 Milestone 2 -2012 Target -2012 None
N/A N/A Practices demonstrated
through demo plots and farmer
field schools are actively used
by farmers
Source
Feedback from ADFs (final evaluation focus group discussions)
Practices demonstrated
through demo plots and farmer
field schools are actively used
by farmers
Baseline – Dec 09 Milestone 1 -2011 Milestone 2 -2012 Target -2012 None
Most
of
advisory/training
services are funded/
subsidised by
donors
Source
Budgets of service providers
At least on average 5%
of services provided
are paid by service
users
At least on average 10% of
services provided are paid by
service users
At least on average 10% of
services provided are paid by
service users
Baseline – 2010 Milestone 1 – 2011 Milestone 2 – 2012 Target -2012 None
TBC
At least 500 farmers (of
which at least 15%
women), 50 womenled
micro
enterprises, and 2
medium size
At least 1,000 farmers (of
which at least 15% women),
100 women-led micro
enterprises, and 4 medium
size processing companies
are served with training /
At least 1,000 farmers (of
which at least 15% women),
100 women-led micro
enterprises, and 4 medium
size processing companies
are served with training /
26

i) System of
training and retraining
is in place,
which regularly
upgrades
knowledge and
skills of advisors in
time before
needed in practice
Source
processing
companies are
served with training/
advisory services
20% of the farmers
and women-led
micro enterprises, as
well as 100% of the
processing
companies pay a
contribution to meet
the services costs
Client register of BAICs, Business Associations, ADFs, etc.
advisory services; 20% of
the farmers and women-led
micro enterprises, as well as
100% of the processing
companies pay a
contribution to meet the
advisory costs
advisory services; 20% of
the farmers and women-led
micro enterprises, as well as
100% of the processing
companies pay a
contribution to meet the
advisory costs
Baseline – Dec 09 Milestone 1 -2011 Milestone 2 -2012 Target -2012 None
Elements of the
system that exist
are to be defined
during the inception
phase
Source
The system is in place N/A The system is in place and
functioning
Inception phase capacities assessment of service providers; Clients satisfaction survey (2011,2012)
IMPACT WEIGHTING RISK RATING
25 % low
INPUTS (USD): DFID (USD): GTZ (USD) UNDP (USD) Total (USD) DFID SHARE (%)
3,346,000 1,710,380 867,003 5,923,383
INPUTS (HR) DFID (FTEs)
27

OUTPUT 4 Indicator Baseline – Dec 09 Milestone 1 -2011 Milestone 2 -2012 Target -2012 Assumptions
Organized member
focused business
associations and their
apex institutions
improved their
capacities to serve
their members and
advocate their
concerns
j) Proposals of
business
associations for
improving the
business and
investment climate
k) Relevance of
services provided
to members of the
associations/ apex
structures
l) Number of dues
paying members
Currently the link between
the associations/apex
institutions is very weak.
These organisations do not
play active role in
advocating on behalf of
their members.
Sources
At least 3 proposals were
advocated by supported
business associations for
improving the business and
investment climate to the
concerned governmental
bodies
At least 4 proposals were
advocated by supported
business associations for
improving the business and
investment climate to the
concerned governmental
bodies
Assessment of Bas and apex structures (inception phase, mid-term and end of the project )
Formal initiatives of these organisations, adjusted policies, official decrees, regulations/ laws or similar
At least 4 proposals were
advocated by supported
business associations for
improving the business and
investment climate to the
concerned governmental
bodies
Baseline – Dec 09 Milestone 1 -2010 Milestone 2 – 2011 Target – 2012 None
Currently, the service links
between associations/apex
structures and their
members is extremely
weak. Service where
provided are rather ad-hoc
basis.
Sources
Clients satisfaction survey
At least 50% of association
members of the supported
associations (farmer
members of ADF /
entrepreneurs of business
associations) confirm that
the services of the
associations were positive
for the development of their
business
At least 50% of association
members of the supported
associations (farmer
members of ADF /
entrepreneurs of business
associations) confirm that
the services of the
associations were positive
for the development of their
business
At least 50% of association
members of the supported
associations (farmer
members of ADF /
entrepreneurs of business
associations) confirm that
the services of the
associations were positive
for the development of their
business
Baseline – 2010 Milestone 1 -2011 Milestone 2 -2012 Target -2012 None
Very law capacities of Bas
to provide service to
members
Source
The number of paying
members of the supported
business and farmers
associations has increased
by 20% as compared to the
base year 12/2009
The number of paying
members of the supported
business and farmers
associations has increased
by 50% as compared to the
base year 12/2009
The number of paying
members of the supported
business and farmers
associations has increased
by 50% as compared to the
base year 12/2009
Economic
development
remains high on
the governments’
agenda at all
levels
28

m) Increased
awareness among
association
members on their
legal business
related rights and
obligations
Surveys carried out by service providers
Assessment of Bas and apex structures (inception phase, mid-term and end of the project )
Baseline – 2010 Milestone 1 -2011 Milestone 2 -2012 Target -2012 Consistent legal
framework exists
Awareness is very low,
more precise assessment
is to be conducted during
the inception phase
Source
Awareness of important
business related legal rights
and duties among members
of supported associations
(men and women in relation
to male and female
membership of association)
increased by 20%
The knowledge on important
business related legal rights
and duties among members
of supported associations
(men and women in relation
to male and female
membership of association)
increased by 50%
Citizen perception survey to be conducted under GRP (baseline – beg. 2010, end line – 2012)
The knowledge on important
business related legal rights
and duties among members
of supported associations
(men and women in relation
to male and female
membership of association)
increased by 50%
IMPACT WEIGHTING RISK RATING
10 %
INPUTS (USD): DFID (USD): GTZ (USD) UNDP (USD) Total (USD) DFID SHARE (%)
906,000 61,633 967,633 93
INPUTS (HR) DFID (FTEs)
OUTPUT 5 Indicator Baseline – Dec
09
Selected district vocational training
institutions for adult training meet
regional, national and international
demands for better qualified labour
n) Local vocational training
institutions meet internal and
external demand
o) Increase in number of
people employed from those
trained through DEC and
modular Centres, incl. women
av. 85%
enrolment and
full costs
coverage
Source
Milestone 1 -
2011
av. 85%
enrolment and
full costs
coverage
Enrolment documentation and budgets of DECs
Baseline – Dec
09
58% employed,
incl. 48%
women
Milestone 1 -
2011
app. 65%
employed, incl.
55% women
Milestone 2 -
2012
av. 95%
enrolment and
full costs
coverage
Milestone 2 -
2012
app. 70%
employed, incl.
60% women
Target -2012
av. 95%
enrolment and
full costs
coverage
Target -2012
app. 70%
employed, incl.
60% women
Assumptions
No massive return of labour
migrants from Russia as a result
of the current economic crises
occurs
Vocational training provided is
linked to labour market demands
outlined in district development
plans
29

Source
Feedback/monitoring sheets of the DECs
IMPACT WEIGHTING RISK RATING
10 % low
INPUTS (USD): DFID (USD): GTZ (USD) UNDP (USD) Total (USD) DFID SHARE (%)
1,060,000 456,380 100,000 1,616,380 65
INPUTS (HR) DFID (FTEs)
OUTPUT 6 Indicator Baseline – Dec 09 Milestone 1 -2011 Milestone 2 -2012 Target -2012 Assumptions
Producers/farmers, poor,
women, and MSMEs have
access to a variety of financial
products and services
available from MLFs and
formal financial institutions
p) Increase in low
income
households, incl.
female headed,
accessing microcredit
services (1 st
loan cycle)
q) % of MSMEs
receiving loans
able to employ
more people (N of
people employed
by them, incl.
women)
More than 50% low income
households accessing
micro-credit services at the
1 st loan cycle. Data not
disaggregated by sex
Source
60% of beneficiaries of
the 1 st loan cycle are
low-income
households, incl. 10%
female headed
65% of beneficiaries of
the 1 st loan cycle are
low-income
households, incl. 15%
female headed
At least 65% lowincome
households,
including 15% female
headed, accessing
micro-credit services
(1 st loan cycle)
MLFs’ documentation; Survey on access to finance in the region: Microloans per household; % of
female headed households (GTZ, conducted 2009); Poverty level assessment (MFIs documentation –
training will be necessary for participating MFIs)
Baseline – Dec 08 Milestone 1 -2010 Milestone 2 – 2011 Target – 2012
More than 40% of clients
could open additional jobs
with at least 20% for
women; Job creation
productivity on average
was 1.1 (number of job
created / number of
MSMEs created a job).
At least 40% of the
benefiting MSMEs
confirm that they were
able to employ
additional workers due
to the loan with at
least 25% being
women
At least 40% of the
benefiting MSMEs
confirm that they were
able to employ
additional workers due
to the loan with at
least 25% being
women
At least 40% of the
benefiting MSMEs
confirm that they were
able to employ
additional workers
due to the loan with at
least 25% being
women
Changes made at national
level on doing business
and the business enabling
environment
are
progressed at all levels
The new Microfinance Law
(now at the development
stage) will not bring about
changes to the regulation
of the microfinance sector
that affects access to
finance in remoter areas.
Source
GTZ impact study 2008; Microfinance Impact Assessment of MFI clients; MFIs’ documentation
(monitoring/ feedback sheets); Production and financial performance figures of benefiting MSMEs
r) % of MSMEs
expanding their
businesses, inc.
Baseline – Dec 08 Milestone 1 -2010 Milestone 2 – 2011 Target – 2012
57% of MSMEs benefiting
from loans expanding their
At least 60% of the
benefiting MSMEs
60% of the benefiting
MSMEs confirm that
60% of the benefiting
MSMEs confirm that
30

those headed by
women
businesses, no data
disaggregated by gender
available
Source
confirm that the profit
of their businesses
increased due to the
loan, including 5%
headed by women
the profit of their
businesses increased
due to the loan,
including 10% headed
by women
the profit of their
businesses increased
due to the loan,
including 10% headed
by women
GTZ impact study 2008; Microfinance Impact Assessment of MFI clients; MLFs’ documentation
(monitoring/ feedback sheets)
IMPACT WEIGHTING RISK RATING
25 % low
INPUTS (USD): DFID (USD) GTZ (USD) UNDP (USD) Total (USD) DFID SHARE (%)
INPUTS (HR) DFID (FTEs)
3,549,682 1,110,025 239,662 4,899,370 72
31

Activities Log
OUTPUT 1: The RGP inception phase is completed
ACTIVITIES block 1.1 – Inception phase Milestone 1 – April 2010 Milestone 2 –
Nov 2011
Selecting districts and sub-districts for participation in RGP, establishing
initial contacts with relevant partners.
Milestone 3 –
Nov 2012
Risks
Selection is made, contacts are established N/A N/A No risks
identified
Compiling baseline information, assessing capacities of different actors, Relevant preliminary assessments are conducted,
vision of government in regard to the future role of jamoats and clarifications are made, all baseline data is collected and
formulating support packages 20 integrated into the updated logframe, support packagers are
formulated
N/A N/A No risks
identified
Harmonising concepts and approaches between UNDP and GTZ with
regards to supporting roles of different governance actors in rural
economic development and elaborating interaction between different RGP
components
Concepts, approaches and roles are agreed and reflected in
the signed Memorandum and the updated logframe
N/A N/A No risks
identified
Conducting a round of meetings and negotiations with all relevant national
and sub-national partners in regard to approaches and plans, MoUs
Meetings are conducted, approaches and plans are approved,
MoUs are negotiated and ready for signing
Developing criteria for the Trust Fund Criteria discussed and agreed with the relevant stakeholders N/A N/A
Elaborating activity and monitoring plans, and detailed budgets
Plans and budgets elaborated, allocation agreements signed
with DFID
N/A N/A No risks
identified
N/A N/A No risks
identified
OUTPUT 2: Improved capacities of local governance actors (particularly at rayon and Jamoat levels) for local development planning, implementation and monitoring in line with
NDS and PRS and with the emphasis on support to rural economic growth
ACTIVITIES block 2.1 – Government’s planning
and monitoring capacities (UNDP and GTZ)
Milestone 1 – Nov 2010 Milestone 2 – Nov 2011 Milestone 3 – Nov 2012 Risks
(UNDP) Supporting regional government in
updating its basic regional development plan with a
special focus on economic development part
Regional development plan is
reviewed and updated
N/A N/A No risks identified
(GTZ) Supporting regional government in
elaborating regional development strategy for F&V
sector with subsequent implementation steps in
collaboration with BAs (possibly also UBASO) and
Strategy is elaborated N/A N/A No risks identified
20
Incl. assessment of local governments’ competencies and capacities in economic development (UNDP); mapping of other governance related interventions and actors (UNDP); baseline
survey on associations and other service providers for MSME (incl. farm level) (GTZ), baseline survey on production and processing of F&V in Sughd region (GTZ), assessing the capacities
of the DECs (GTZ); assessing the capacities of the MFIs and other financial services (GTZ); mapping of other PSD and microfinance related interventions and actors (GTZ); identification of
transactional services that district and sub-district authorities can improve in support of local economic development (UNDP and GTZ).
32

other stakeholders according the value chain
approach
(UNDP) Supporting ISCT, MEDT and MoF in
developing and delivering a training package to
regional, rayon and jamoat authorities on
development planning and monitoring with focus on
rural economy and in line with the MEDT
methodology
Training package elaborated 100% of relevant specialists
trained at regional and district
level in targeted areas
100% of relevant specialists
trained at jamoat level in
targeted areas
By 2012 jamoats will still have
limited competencies and
budgeting for supporting local
development process
(UNDP) Providing technical assistance to district
governments (with no DDPs) in elaboration of their
DDPs (through a pool of local specialists from
MEDT, MoF, etc.). Supporting further elaboration of
local plans for the economic/agricultural sector.
7 districts in Sughd oblast
have DDPs
All 14 districts in Sughd oblast
have DDPs and elaborated plans
for support of local economy and
agriculture
N/A
(UNDP) Supporting district and jamoat authorities in
periodic participatory review of their development
plans and in elaboration of annual action plans
Annual review of all district and
jamoat development plans that
are older than a year are
conducted
Annual review of all district
and jamoat development
plans that are older than a
year are conducted
No risks identified
(UNDP) Elaborating and disseminating guidelines
for local governments on promoting rural economic
development. Providing training to relevant district
and jamoat representatives in targeted areas
Guidelines are available
100% of relevant targeted rayon
local government employees are
trained
100% of relevant employees
are trained in targeted
jamoats
Deficit of qualified human
resources at district and jamoat
level will hinder capacity
development efforts
(UNDP) Developing a minimum technical base
standard for development planning and monitoring
(incl. in economic planning and agricultural dpts).
Strengthening technical base of rayons and jamoats
that are below the standard.
Minimal technical standards
are defined
100% of targeted rayon
hukumats meeting the technical
standard
100% of targeted (pilot)
jamoats meeting the technical
standard
No risks identified
(UNDP) Supporting the agricultural departments at
oblast and rayon level in improving their capacities
for planning, data management and facilitation of
agricultural activities
Capacity building needs of
the agricultural departments
are studies and established
Technical assistance package is
provided to relevant specialists in
all 14 rayons
Training provided to all
relevant specialists in
targeted jamoats
No risks identified
- (GTZ) Supporting the State Committee for
Investment and State Property to develop a
monitoring system for the business and investment
climate, particularly in rural areas of Sughd Oblast,
possibly in collaboration with BAs
The design of the monitoring
system of the State
Committee at national level is
agreed upon, incl. work plan
for training Committee’s staff,
and including a work plan for
Sughd
The monitoring system fully
operational and has delivered
results for 2010 and 2011
Results of the monitoring
system for 2012 are available
ACTIVITIES block 2.2 – Private sector and civil Milestone 1 – Nov 2010 Milestone 2 – Nov 2011 Milestone 3 – Nov 2012 Risks
No risks identified
33

society participation (UNDP, GTZ, subcontractors)
(UNDP) Supporting district and jamoat
governments in establishing mechanisms of private
sector and civil society systematic engagement into
development planning, monitoring and budgeting.
Supporting rayons and jamoats in establishing
transparent budgeting practices.
Only some targeted districts
introduced mechanisms and
procedures for private sector
and civil society engagement
into planning and budgeting
Individual pilot experiences
exist with transparent
budgeting in some rayons
All 14 districts introduced
mechanisms and procedures for
private sector and civil society
engagement into planning and
budgeting
All 14 districts introduced
transparent budgeting practices
100% of targeted (pilot)
jamoats
introduced
mechanisms and procedures
for private sector and civil
society engagement into
planning and budgeting
100% of targeted jamoats
introduced transparent
budgeting practices
Commitment of regional, district
and sub-district to introduction
of the new approach to
development planning and
budgeting is a precondition for
their participation in the
Program.
(sub-contract) Elaborating and providing a capacity
building package to kishlak committees in pilot
jamoats to strengthen their role in local developing
planning and implementation with a special focus
on facilitating economic activities locally
80% of kishlak committees in
targeted jamoats are
registered as self-governing
units in accordance with the
2008 Law on Citizens Selfactivities
100% of registered kishlak
committees in targeted jamoats
are trained, with at least 30% of
trainees being women
100% of registered
committees in targeted
jamoats have elaborated their
development priorities
At least in 50% of committees
where plans were developed
at least one priority project is
being funded and
implemented
Individual power interests of the
current leaders of kishlak
committees will hinder the
process of their transformation
(UNDP) Supporting active JRCs in redefining their
role in the development process in their jamoats,
incl. relations with MLFs
(sub-contract) Providing capacity building packages
to the identified group of active JRCs that have
sustainability perspectives and a role to play in
facilitating local economic development
All existing JRCs in targeted
jamoats conducted review of
their mandate; their
capacities are assessed.
Training packages are
defined to meet the demand
of identified group of JRCs
Relevant training provided to all
identified JRCs, with at least 30%
of trainees being women
At least 80% of trained JRCs
are fully functional
JRCs will have weak ability to
mobilise resources and will fail
to secure their sustainability on
a long-run.
Vested interests prevent the
evolution of JRCs
(UNDP) Providing training to organised private
sector and civil society actors in targeted districts
and jamoats to enhance their abilities to engage
into district/ sub-district planning, monitoring and
budgeting and to influence/ facilitate local economic
development
Mapping of all functioning
private sector and civil society
groups in targeted rayons
and jamoats and assessment
of their abilities to engage
into decision making
processes
Training packages are
Training is delivered to all
functioning private sector and
civil society organisations in
targeted rayons and jamoats,
with at least 20% of trainees
being women
In each targeted rayon
functioning private sector and
civil society organisations are
In each targeted rayon
functioning private sector and
civil society organisations are
involved in the process of
development planning,
budgeting and plans review
Resources that are a subject of
decision making of local
governments remain limited
and it be difficult to stimulate
private sector and civil society
participation
34

elaborated involved in the process of
development planning, budgeting
and plans review
ACTIVITIES block 2.3 – Support infrastructure
and government’s transactional services (UNDP
and GTZ)
(UNDP) Establishing district development Trust
Funds from which priority development projects
from the elaborated development plans that have a
potential to facilitate economic/agriculture growth,
private-public partnership, etc. will be funded.
Providing support in regulating decision-making,
management and monitoring of the Trust Funds,
including agreeing on performance benchmarks
against which decision on availability of funds will
be made.
Supporting local authorities in their resource
mobilization campaigns for the Trust Funds.
- (UNDP) Supporting local government in
elaborating and implementing projects aimed at
improvement of economic infrastructure funded
from the Trust Funds
- (UNDP and GTZ) Supporting the
strengthening of government’s capacities to provide
transactional services in support of local economic
development (simplification of business registration
and other business-related administrative services,
administration of revenues; electronic procession of
data, etc.).
ACTIVITY 2.4 – Local government reform
(UNDP)
- (UNDP) Supporting the Executive Office of
the President (the Public Sector Reform Project)
and the Ministry of Agriculture in conducting
functional reviews of sub-national governments with
specific focus on local governments (rayon and
jamoat) competencies in rural economic
development
Milestone 1 - Nov 2010 Milestone 2 - Nov 2011 Milestone 3 - Nov 2012 Risks
Trust Fund is established in
30% of targeted districts that
have approved development
plans
Procedures for managing
Trust fund are elaborated in
all districts where Trust Funds
are established
Resources mobilisation
campaign for 30% targeted
districts launched
Priorities identified and
projects formulated in the
framework of DDPs
Services to be improved are
identified for all targeted
districts and sub-districts and
support packages are
elaborated
Trust Funds are established in
100% of targeted districts that
have approved development
plans
Resources mobilisation campaign
for the established Trust Funds
launched
50% of selected priority projects
funded and implemented
Support packages are delivered
to all targeted districts and subdistricts
Trust Funds are functional in
all districts where they were
established and support
projects with effect on local
economy
At least 50% of Trust Funds
have attracted additional
resources to those initially
committed in 2011
100% of selected priority
projects funded and
implemented
Introduced innovations are
functioning and maintained by
government
Milestone 1 - Nov 2010 Milestone 2 - Nov 2011 Milestone 3 - Nov 2012 Risks
Analysis completed Recommendations regarding
review of responsibilities and
budgetary authority submitted to
relevant state bodies/
parliamentary commissions
Concept for reforming local
governance is submitted for
the consideration of the
government
Inflexible approach of some
donors will hinder their ability to
contribute resources to the
Trust Fund
Budgeting practices are not
changed towards program
performance budgeting and the
Trust Fund remains a tool for
mobilisation of mainly external
funds mobilisation
The current level of
international assistance
provided to the oblast does not
drop dramatically and other
donors are encouraged to
contribute to the trust fund
Local governments will still
have limited mandates and
functions in the coming years in
support of economic activities
No risks identified
35

- (UNDP) Supporting vertical and horizontal
exchange and cooperation among local government
units, dissemination of experiences on the role of
local governments in enhancing rural economic
growth
Periodic exchange meetings
are conducted among all
rayons in Sughd oblast
Periodic exchange meetings
conducted among all rayons and
jamoats in targeted rayons in
Sughd oblast
Publication on best
development planning,
management and budgeting
practices is issued and
disseminated throughout
Sughd oblast and is available
on the oblast webpage
No risks identified
OUTPUT 3: Producers/farmers and MSMEs have access to appropriate, professional and sustainable business and technical advisory/extension services
ACTIVITIES block 3.1– Extension services
(GTZ)
Milestone 1 – June 2010 Milestone 2 – Dec 2011 Milestone 3 – Dec 2012 Risks
(GTZ) Supporting existing agricultural advisory /
extension services and their development into an
area covering system in Sughd Oblast, which
considers a strong internal professional support
system as well a strong link to national research
and international knowledge on agriculture
Feasibility study on launching
agricultural extension services
and application of value chain
approach is conducted;
Potential providers are
identified;
Capacity of providers are improved,
Agricultural extension services and
value-chain are introduced in at
least 6 rayons
Providers assist MSMEs with partial
cost-recovery
Beneficiary MSMEs
are reluctant to pay for
services
(GTZ) Supporting the development of adequate
business advisory services along the F&V value
chain (for implementing the F&V development
strategy above)
Service providers and their
capacity building needs (support
packages) are identified
Support packages to service
providers are delivered
Service providers render services to
clients. Support is provided on
demand basis.
No risks identified
(GTZ) Facilitating linkages between extension
services and up to date knowledge/research
(incl. on issues related to environmentally
sensitive and climate resilient agro-practices)
Potential linkages to research
are identified
Service providers are linked to
research sources
Service providers maintain links to
the research sources
Ability to link to
research will be limited
ACTIVITIES block 3.1 – MSME promotion
along the value chain approach (GTZ)
Milestone 1 – Dec 2010 Milestone 2 – Dec 2011 Milestone 3 – Dec 2012 Risks
(GTZ) Promoting exemplary MSME along the
value chain of the F&V sector in Sughd Oblast
by linking to agricultural advisory services (for
implementing the F&V development strategy
above)
At least 2 companies were
analysed and training / advising
started
At least 4 companies were analysed
and training / advising started
At least 6 companies were analysed
and training / advising started
Good management
practices will not be
accepted/ adopted by
the companies
ACTIVITIES block 3.3– Women in business
(GTZ)
Milestone 1 – Dec 2010 Milestone 2 – Dec 2011 Milestone 3 – Dec 2012 Risks
36

(GTZ) Supporting one or several service
providers in providing needed business support
services to women headed micro and small
enterprises, particularly to actual and potential
businesswomen (nucleus / group approach) for
selected businesses, not necessarily F&V
Service providers are selected.
At least 5 trained group advisors
for businesswomen are working
according nucleus approach
with at least 10 business women
groups
At least 10 new businesses of
women entrepreneurs were
established on the basis of the
group advisory service and at least
100 business women participated in
training and advice in the framework
of the group approach
At least 20 new businesses of
women entrepreneurs were
established on the basis of the
group advisory service and at least
200 business women participated in
training and advice in the framework
of the group approach
Women and poor will
have disproportionally
lower education level
OUTPUT 4: Organized member focused business associations and their apex institutions improved their capacities to serve their members and advocate their concerns
ACTIVITIES block 4.1– Development of BAs and their apex
structures (GTZ)
(GTZ) Supporting UBASO to integrate in, or coordinate with, the
planned national-level CASE and to improve performance in the
areas of advocacy and support services for member associations
(GTZ) Supporting the organisational development of BA s
(membership focus, service provision, advocacy function,
membership in UBASO)
Milestone 1 – Dec 2010 Milestone 2 – Dec 2011 Milestone 3 – Dec 2012 Risks
UBASO link with the CASE at
national level is established
OD needs are assessed.
support packages and
providers are identified
UBASO is supporting member
business associations in Sughd
and advocating on their behalf in
line with the CASE system
One important proposal
advocated by UBASO for
improving the business and
investment climate
Support packages are provided
to BAs
UBASO’s services and advocacy
for member business associations
in Sughd has improved according
to the CASE system
Two proposals advocated by
UBASO for improving the
business and investment climate
No risks
identified
N/A No risks
identified
ACTIVITIES block 4.2 – ADFs support (UNDP) Milestone 1 - Nov 2010 Milestone 2 - Nov 2011 Milestone 3 - Nov 2012 Risks
- (UNDP) Supporting introduction of various support
schemes for agricultural activities by ADFs (agro-tool banks, demo
plots, field farmer schools, etc.)
Support packages and tools
are elaborated
Support packages and tools are
launched
Established schemes are
functional
No risks
identified
- (subcontract) Jointly with NADF supporting organizational
development of existing ADFs for small farmers (technical base,
training, networking and scaling up to rayon and oblast level) and
establishing new ones where they do not exist in targeted areas
Capacities of existing ADFs are
assessed and technical support
needs (training, info and
technical base) are identified
..... existing and ... new ADFs
received technical support
package
..... existing and ... new ADFs
received technical support
package
No risks
identified
- (UNDP) Supporting BAICs and ADFs to launch farmers
and entrepreneurs rights and obligations awareness campaigns
together with the rayon Land and Taxation Dpts, rayon BAs and
ADFs
Issues for awareness raising
are identified
Campaigns are conducted in all
14 rayons
BAICs continuously provide info
on farmers and entrepreneurs
rights and obligations
No risks
identified
OUTPUT 5: Selected district vocational training institutions for adult training meet regional, national and international demands for better qualified labour
37

ACTIVITIES block 5.1– Development of vocational;
training schemes (GTZ and UNDP)
Milestone 1 - Nov 2010 Milestone 2 - Nov 2011 Milestone 3 - Nov 2012 Risks
(UNDP) Establishing a Modular Centre in Khujand (under
the Ministry of Education) that would assist DECs in
developing the market and demand oriented curricula for
professional and vocational trainings
Modular Centre is established
Modular Centre is working in
close collaboration with DECs
Modular Centre is working
in close collaboration with
DECs
No risks identified
(GTZ) Supporting the reform of the curricula and
professional standard development as well as
accreditation for identified professions in collaboration with
the private sector to ensure meeting the needed skills in
practice
(GTZ) Providing technical support to DECs (teachers
training and technical base) to deliver demand oriented
vocational training, increase outreach to women and
vulnerable target groups and to involve private sector into
teaching and practical training
ACTIVITIES block 5.2– Enhancing employment
through fair migration (UNDP)
(subcontract to IOM) Promoting sound and responsible
migration practices and awareness of migrants about their
rights
(subcontract to IOM) Advocating for national level policies
and regulations in support of sound labour migration, as
well as measures (taxes, customs, duty exemptions) to
stimulate the investment of labour migrant remittances
into local economy
A circle of professions and needs
in upgrading curricular and
standards are identified,
agreements reached with relevant
ministries
Capacities of all DECs to provide
priority vocational training
courses are assessed and
technical support needs are
identified
Curricular is upgraded and
standards are introduced
A grant for upgrading
technical base for vocational
training in demand is given to
all DECs in targeted areas
Relevant specialists are
trained
Teaching and trainees
placement partnership with
private sector is established
New curricular and
standards are used by
DECs
DECs are sustainably
providing training on their
own; with at least 25% of
trainees being women
Teaching and placement of
trainees with private sector
is maintained
Milestone 1 - Nov 2010 Milestone 2 - Nov 2011 Milestone 3 - Nov 2012 Risks
Local partners are identified in all
targeted jamoats
Training delivered to local
partners
Issues for advocacy are identified National level events are
conducted for advocating on
identified issues
Partners provide info/
training on continuous basis
National level events are
conducted for advocating on
identified issues
No risks identified
Trainees will fail to find
employment/ income
possibilities, especially
women and poor
No risks identified
Labour migration is not
high on the agenda of
national government
38

OUTPUT 6: Producers/farmers, poor, women, and MSMEs have access to a variety of financial products and services available from MLFs and formal financial institutions
ACTIVITIES block 6.1 – Linking MSMEs in F&V sector to
financial services (GTZ)
(GTZ) Improving the links between farms / MSMEs and their
BA s with credit institutions to tailor financial products
according the needs of identified target groups
Milestone 1 - Nov 2010 Milestone 2 - Nov 2011 Milestone 3 - Nov
2012
MSMEs’ crediting needs
and potentials of
crediting institutions
studied and identified
MFIs supported in
developing and delivering
special service packages
for MSMEs
Credits provided to
MSMEs by MFIs
ACTIVITIES block 6.2 – MFIs development Milestone 1 - Nov 2010 Milestone 2 - Nov 2011 Milestone 3 - Nov
2012
(GTZ) Jointly with AMFOT developing and providing technical
support packages to MLFs, incl. the two MLFs supported by
UNDP (training, advising, regulatory and technical base,
expanding service packages, etc.), including ToT for AMFOT
trainers and training capacities
(GTZ) Expending credit portfolio of selected MFIs and
supporting them in increasing outreach
Support packages are
defined
AMFOT trainers are
trained and capacities
upgraded
Selection of MFIs and
expansion of their
portfolio
Support packages are
delivered to the MFIs
accordance with the needs
identified
MFIs performance is
monitored and advice
provided as necessary
Experience exchange
for the MFIs is
organised
Further advice to MFIs
is provided by AMFOT
as needed
MFIs performance is
monitored and advice
provided as necessary
Risks
Demand from MSMEs will exceed
abilities of MFI to issue them credits
The negative impact of the global
financial crisis on MFIs will discontinue
Risks
Efficiency and sustainability of the two
MLFs established with UNDP support
will conflict with their social mission
(reaching vulnerable and support to
JRCs)
MLFs fail to introduce Special policy
provisions to reach vulnerable women
and poor
(GTZ) Training and consulting MLFs/MLOs in the
transformation process into MDOs, including training of
AMFOT's experts and trainers
Training needs are
defined
Training to AMFOT experts
and trainers provided
Training is delivered
to MLFs/ MLOs
MFIs will be not able to meet criteria
necessary for transformation into MDOs
(GTZ) Establishing a credit impact M&E system to evaluate
the access of target groups, particularly of the low income
groups, and the impact of micro-finance services on
household and enterprise growth
System is developed
System is introduced in
targeted MFIs
System is used by
MFIs
MFIs will be reluctant to target low
income groups
(GTZ) Assisting the APEX MDO Bovari va Khamkori in
developing its services for MFIs in Sughd region
The mode of assistance/
package is negotiated
and defined
Assistance package is
provided
The APEX MDO
provides services for
MFIs
MFIs will be reluctant to borrow from the
APEX MDO
(GTZ) Introduction of deposit services and mobilisation of
savings in rural areas of Sughd region, particularly for rural
poor and women
The service package is
defined and introduced
Implementation of services
is monitored
Policies are adjusted if
needed
MFI will not be not in the position to
overcome distrust of population to the
deposit services
39

III.
MANAGEMENT ARRANGEMENTS FOR RURAL GROWTH PROGRAMME
IV.1 Management set up
A partnership approach with Government, UNDP, GTZ and DFID will lead the development and
implementation of the RGP. UNDP will take the role of lead implementing agency and will assume
overall responsibility for Programme coordination and implementation.
Use of a partnership approach under one Programme will allow enhanced synergies between different
actors and implementing partners. For both UNDP and GTZ this partnership arrangement gives an
opportunity to augment funds available to them from other sources for activities in Sughd region with
additional resource provision from DFID.
While coordinating the overall Programme, UNDP will assume a lead in the implementation of the
governance component. The implementation of other components will be lead by GTZ. Leadership in
the implementation of particular components will be carried out by one agency however this does not
exclude participation in the implementation of the other agency. For instance, UNDP will have to
implement certain activities under components linked to private sector development, in order to
consolidate success of the CP/ZVI projects. Clear division of roles and tasks between UNDP and GTZ
will be made during the inception phase. UNDP and GTZ will work as a team in the inception phase to
agree on working strategies, approaches, division of labour and volume of funding.
Following the inception phase, each of the two implementing agencies will have a direct contract with
DFID, implying also direct funding.
For UNDP, RGP will be directly executed in accordance with the UNDP guidelines for the Direct
Implementation Modality (DIM) in close collaboration with the Government. An execution fee of 7% is
proposed for the management of the DFID resources.
Both UNDP and GTZ will work with other service providers on clearly defined terms of reference (ToR).
Under a special agreement between UNDP and IOM, UNDP will outsource certain activities within its
responsibility to IOM through direct contracting arrangements. Other service providers will be
contracted by UNDP and GTZ through tendering processes in accordance with internal rules and
regulations for each of the implementing agencies. The ToR for IOM and other contractors will be
elaborated during the inception phase.
A Programme Steering Committee (PSC) will be established and will consist of the representatives of
the regional (oblast) authorities, DFID, UNDP, GTZ and other main stakeholders. The frequency of
meetings will be determined as needed, but will be at least twice a year (more frequent meetings might
be required during the inception phase). The PSC will include the representatives with the following
roles:
Senior Executives responsible for the ultimate outcome of RGP.
Senior Supplier(s) representing the implementers.
Senior User(s) representing the interests of the main beneficiaries of the project.
Figure 1 shows accountability lines among the actors.
Figure 1. Accountability of Consortium partners in RGP
RGP Steering Committee
Government, DFID, UNDP, GTZ,
UNDP
GTZ
Sub-contractors
IOM
Sub-contractors

The Programme will be implemented using well coordinated and agreed approaches and one
Programme Document. A consolidated monitoring and reporting system will be applied under RGP.
UNDP will secure the overall Programme Management team headed by an international Programme
Coordinator accountable to UNDP and the Programme Steering Committee (ToR for the Programme
Manager are attached in Annex 2). The RGP Programme Coordinator will report to the Assistant
Resident Representative (Head of Programmes) at UNDP.
UNDP will secure overall programme coordination and reporting through an International RGP
Coordinator (as shown in Figure 2).
Figure 2. Reporting in RGP
RGP Steering Committee
Government, DFID, UNDP, GTZ,
UNDP
GTZ
International Program
Coordinator (Under UNDP)
Sub-contractors
Sub-contractors
IOM
All key agencies – DFID, UNDP and GTZ - will be involved in the recruitment process for the RGP
Program Coordinator. The recruitment process will be managed by UNDP. He/she will be responsible
for providing overall strategic oversight of the programme, ensuring coherence of approach,
coordinating relationships and activities, and preparing reports for the Steering Committee. The
Programme Coordinator will coordinate project activities and relationships with relevant Government
institutions and other stakeholders at the national and regional (oblast) levels. She/he will work in close
collaboration with the relevant UNDP Area Offices (AO) and GTZ regional office in Khujand. Direct
support to the project will be provided by UNDP and GTZ respectively and relevant staff of UNDP CP
based in Dushanbe.
The UNDP AOs in Khujand and Ayni will be responsible for overall project coordination and
achievement of results, project implementation, planning and reporting for each individual project
implemented in their area of operation. The AOs will also closely coordinate project activities with
relevant Government institutions and hold regular consultations with other project stakeholders at the
local level.
UNDP CP has a unit for support services within the programme, which will facilitate functions such as
administration and financial controls. UNDP CP will also receive support from UNDP Country Office
(CO) through the Administrative and Finance Units as necessary. A project financial management
system will be established to provide for accountability, and annual audits will be performed.
In a similar way, the part of the programme led by GTZ will rely on the support of the GTZ office in
Tajikistan (an integral but decentralized part of the GTZ regional bureau for Central Asia). GTZ has a
branch office in Khujand that will serve as a base for the implementation of GTZ led activities in Sughd
region. Mechanisms for effective communication and coordination between regional offices of GTZ and
UNDP will be agreed in the inception phase.
41

Figure 3: UNDP CP Organisational Structure
CP Programme Manager, 40% (1)
RGP
International PM
(1)
Pillar I
Deputy PM –
Governance,
40% (1)
Pillars II & III
Deputy PM –
Economics, 40%
(1)
M&E
Sr. Program
Analyst, 40% (1)
Reporting
Officer, 40%
(2)
Sr Admin.
Office, 40%r
(1)
Pillar I
Internation
al
Consultants
Pillar II
Internation
al
Consultants
Pillar III
Internation
al
Consultants
Ayni & Khujand Area Offices
Governance
Advisor, 100%
AO Manager, 100% (2)
Economic
Advisor, 100%
Finance Asst.,
40% (2)
HR Asst., 40%
(1)
IT Asst, 40%
(1)
Project Asst,
40% (1)
Procurement
Asst., 40% (1)
Logistics Asst.,
40%(1)
Programme
Analyst, 100%
Project
Assistant, 100%
Drivers (2)
M&E Assistant,
100% (2)
Admin.
Assistant, 100%
IT Assistant,
100% (2)
Driver, 100% (8)
Guard, 100%
(12)
Cleaner, 100%
(2)
National and international consultancy services will be called in as required for specific tasks.
Consulting services for the project will be procured in accordance with applicable UNDP or GTZ rules
and regulations.
The modality of cooperation with other INGOs and NGOs under the RGP will follow the standard UNDP
and GTZ policies and procedures. UNDP/GTZ will seek to collaborate with national as well as
international NGOs that have adequate staff and reasonably sound financial status; possess
experience in working with external organizations or donors; and, importantly, have the necessary
capacities within their fields of expertise to carry out activities and achieve results on behalf of
UNDP/GTZ.
UNDP and GTZ country office will assess the capacity of the NGOs to carry out the project using its
standard tools. NGOs can be engaged in two different ways:
NGOs as contractors. In this case, procurement procedures and contracts would apply. The
intention of a contract with an NGO is to provide a project input or conduct a specific project activity
through an NGO that is the best supplier for the service (or goods). While an NGO within a contract
can be tasked to take over a certain degree of project management, the overall responsibility,
especially regarding budget control and reporting, rests with UNDP or GTZ. Within the framework
of a contract, the UNDP/GTZ and the NGO will agree on the scale and scope of the service, the
timetable, the reporting requirements/frequency, and the payment schedule.
NGOs as recipients of grants. In contrast to contracts, competitive bidding in the conventional
sense does not apply. A selection committee will be established to select grants on a competitive
basis emphasizing innovative ideas, new approaches, sustainability, impact, feasibility and cost.
Grants issued by UNDP will be limited to $150,000 per organization and project, and several
organizations may often work on different aspects of the same project, but nevertheless only one
grantee is selected. GTZ does not have limitations on grants issued per organization.
UNDP/GTZ will also attract other subcontractors for the implementation of the certain activities. The
contracting agency will guarantee that subcontracting does not erode the budget of the project in
42

exceeding staff, office and overhead expenditures. On the contrary, the experience of subcontractors
will be used to achieve the best cost-effectiveness possible. The subcontracting will be done through a
competitive selection process in accordance with relevant UNDP or GTZ rules and regulations.
Funding arrangements
From the point of view of financial set up, the RGP Consortium partners are subdivided into two
categories:
- Co-implementing partners (UNDP and GTZ) - although each agency is funded directly by DFID
they both are contributing to the implementation of the joint RGP logical framework;
- Contracted partners (IOM and others) – using resources from the funding pool administered by
UNDP or GTZ and contributing to the implementation of respective activities within UNDP or
GTZ responsibilities.
Total RGP resources as following:
Partner Committed contribution, US ml
DFID
UNDP
GTZ
7,500,000 GBP (equivalent of
some 12,000,000 USD) 21
3,000,000 USD
2,500,000 Euro (equivalent of
some 3,607,504 USD) 22
Total Approx. USD 18,607,504
Although the logical framework includes preliminary estimations of budget for each component,
specifying the exact allocation of DFID funds to UNDP and GTZ will be possible following the inception
phase and a more precise division of tasks between the two agencies will be determined.
Additional resources can be mobilized in the course of the Programme for the implementation of local
governments’ development plans as direct contributions of donors to relevant district government’s
Trust Funds, from which concrete priority development projects will be funded.
21 According to UN exchange rate on 01.01.10
22 According to UN exchange rate on 01.01.10
43

IV.
MONITORING FRAMEWORK AND EVALUATION
The M&E framework for RGP will be developed jointly by GTZ and UNDP by end April 2010.
The project will be monitored through the following:
Within the annual cycle
Regular PSC meetings will be organized by UNDP to monitor project progress and
implementation of project activities. Strategic management decisions will be taken by the PSC.
PSC meetings will be held based on project needs, but not less than once per six month.
On a quarterly basis, a quality assessment shall record progress towards the completion of key
results, based on quality criteria and methods captured in the UNDP Quality Management table
(see Annex 3).
Internal reviews by UNDP, GTZ and DFID will be held every six month of RGP
implementation.
An Issue Log shall be activated in Atlas and updated by the Project Manager to facilitate
tracking and resolution of potential problems or requests for change.
Based on the initial risk analysis submitted (see Annex 4), a risk log shall be activated in Atlas
and regularly updated by reviewing the external environment that may affect the project
implementation.
Based on the above information recorded in Atlas, a Quarterly Progress Reports (QPR) shall
be submitted by the Project Manager to the Project Steering Board through Project Assurance,
using the standard report format available in the Executive Snapshot.
A project Lesson-learned log shall be activated and regularly updated to ensure on-going
learning and adaptation within the organization, and to facilitate the preparation of the Lessonslearned
Report at the end of the project
A Monitoring Schedule Plan shall be activated in Atlas and updated to track key management
actions/events
The project is further subject to the audit and inventory in accordance with UNDP rules and
regulations. Regular external financial audits as required according to UNDP rules will be
conducted.
Annually
Annual Project Work Plan. An Annual Project Work Plan will be prepared by UNDP in consultation
with the project stakeholders and agreed upon by the Project Steering and Committee. The Work
Plan will generally serve as a planning, coordination and monitoring tool.
Annual Review Report. An Annual Review Report shall be prepared by the Project Manager and
shared with the PSC. As minimum requirement, the Annual Review Report shall consist of the Atlas
standard format for the QPR covering the whole year with updated information for each above
element of the QPR as well as a summary of results achieved against pre-defined annual targets at
the output level.
Annual Project Review. Based on the above report, an annual project review shall be conducted
during the fourth quarter of the year or soon after, to assess the performance of the project and
appraise the Annual Work Plan (AWP) for the following year. In the last year, this review will be a
final assessment. This review is driven by the PSC. Project Board and may involve other
stakeholders as required. It shall focus on the extent to which progress is being made towards
outputs, and that these remain aligned to appropriate outcomes.
Monitoring and Evaluation. Each implementing agency will be responsible for monitoring both the
substantive implementation of project activities in line with the agreed M&E plans and for budgetary
reports. UNDP will work closely with the Donors and the Government of Tajikistan to ensure joint
coordination and support of the project. A formal evaluation of project activities will take place
according to UNDP requirements. Thereby the project objectives, indicators and targets mentioned
in the project logical framework matrix will serve as reference for the monitoring and evaluation of
the project. Additionally, leading UNDP staff will conduct annual monitoring visits to selected
project sites. The Annual Project Report will be the key instrument to document and ensure project
progress towards envisaged outputs and outcomes.
44

Lessons Learned. Findings and “lessons learned” will be used to revise the programme’s logical
framework and preparation of annual work plans, led by the programme manager. Any donor
contributing to the programme will be encouraged to undertake regular monitoring visits and
participate in any evaluation exercise.
Independent Programme Review will take place at mid/term RGP cycle (1,5 years into the program).
Final external Programme Evaluation will take place three months after the end of the current RGP
phase.
V. LEGAL CONTEXT
If the country has signed the Standard Basic Assistance Agreement (SBAA), the following
standard text must be quoted:
This project document shall be the instrument referred to as such in Article 1 of the SBAA between the
Government of (country) and UNDP, signed on (date).
Consistent with the Article III of the Standard Basic Assistance Agreement, the responsibility for the
safety and security of the executing agency and its personnel and property, and of UNDP’s property in
the executing agency’s custody, rests with the implementing partner.
The executing agency shall:
a) put in place an appropriate security plan and maintain the security plan, taking into account the
security situation in the country where the project is being carried;
b) assume all risks and liabilities related to the executing agency’s security, and the full
implementation of the security plan.
UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to the
plan when necessary. Failure to maintain and implement an appropriate security plan as required
hereunder shall be deemed a breach of this agreement.
The executing agency agrees to undertake all reasonable efforts to ensure that none of the UNDP
funds received pursuant to the Project Document are used to provide support to individuals or entities
associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not
appear on the list maintained by the Security Council Committee established pursuant to resolution
1267 (1999). The list can be accessed via
http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm. This provision must be included in all
sub-contracts or sub-agreements entered into under this Project Document.
45

Abbreviation
ABD Area Based Development
ADB Asian Development Bank
ADF Association of Dekhan Farmers
AKF Agha Khan Foundation
AMFOT Association of Microfinance Organizations of Tajikistan
AWP Annual Work Plan
BA Business associations
BAIC Business Advisory and Information Centres
BEE Business Enabling Environment
CASE Centre for Association and SME Excellence
CCBA Coordination council of Business Associations
CIDA Canadian International Development Agency
CP Communities Program
DDP District Development Plan
DEC District Employment Centre
DFID UK Department for International Development
EBRD European Bank for Reconstruction and Development
F&V fruits and vegetables
GDP Gross Domestic Product
GTZ Deutsche Geselschaft fuer Technische Zusammenarbeit
HCCAP Hazard Analysis and Critical Control Points system
HDI Human Development Index
IFC International Finance Corporation
INGO International non-governmental organization
IOM International Organisation for Migration
ISO International Organization for Standardization
ITC International Trade Commission
JRC Jamoat Recourse Centre
LMD Local Market Development project
MDG Millennium Development Goals
MDO Micro-Deposit Associations
MEDT Ministry of Economic Development and Trade
MFI Micro finance Institutions
MLF Micro-Loan Funds
MLSP Ministry Labour and Social Protection
MLO Micro-Loan Organization
MoF Ministry of Finance
MoU Memorandum of Understanding
MSME Micro, small and medium enterprises
MWRLR Ministry of Water Resources and Land Reclamation
M4P Making market work for poor
NABW National Associations of Business Women of Tajikistan
NADF National Associations of Dekhan Farmers
NDS National Development strategy
NGO Non-governmental organization
N/A Non-applicable
PRS Poverty Reduction Strategy
PSC Project Steering Committee
QPR Quarterly Progress Reports
RGP Rural Growth Program
SBAA Standard Basic Assistance Agreement
SCS State Committee of Statistics
SENAS Support to Development of Agricultural Advisory Services project
SLC State Land Committee
TAFF Tajik Agricultural Financing Framework project
46

ToR
ToT
UAT
UNDAF
UNDP
UBASO
USAID
USD
WB
WUA
ZVI
Terms of Reference
Training of Trainers
Unified agricultural tax
United Nations Development Assistance Framework
United Nations Development Program
Union of Business Associations of Sughd oblast
United States Agency of International Development
United State dollars
World Bank
Water User Association
Zerafshan Valley Initiative
47

VI.
ANNEXES
1 Logframe in UNDP format
2 ToR for RGP Program Manager
3 UNDP Quality Management Table
4 Risk Analysis Matrix
48