EU/UNDP Project

1
EU/UNDP Project Enhancement of Living Standards
in Karakalpakstan and Namangan region of
Uzbekistan

• Income Generation
• Component

2
Overall Objective

• Improve the livelihood of local communities in
  the republic of Karakalpakstan and Namangan
  region

3
Three components

• support the authorities and local communities to
  develop and implement regional/local development
  strategies
• empower local communities to engage in their
  socio-economic development
• increase and diversify access of low income
  population/farmers to finance.

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Income Generation Component specific objectives

• Strengthen institutional capacity of partner
  micro-finance institutions in Namangan and
  Karakalpakstan
• Local MFIs handle micro-credit operations
  efficiently
• Develop loan products based on men and womens
  needs.
• Increase number of small scale entrepreneurial
  projects and micro-enterprises
• At least one pilot agricultural cooperative in
  each region established and document experiences

5
Selection Process of the potential partners

• Phase I Selection of partners by the ELSs
  microfinance committees in KKP and NMG
• Phase II Performance and capacity assessment of
  the selected partners to implement the ELSs MF
  component
• Phase III Signing of the Memorandum of
  agreement with the selected partners

6
Partner Institutions

• In Namangan
• MFP FV-Mard, ACDI/VOCA
• Business Incubator Kosonsoy
• In Karakalpakstan
• NGO Daulet
• Karakalpak branch of Business Women Association
• NGO Parwaz

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MC funds disbursement proposal

• Assumptions
• The objective of the ELSs Component 3 is to
  increase and diversify access of the poor and
  farmers to micro finance services
• The distribution of funds will provide fair
  access to financial products to potential clients
  in six districts
• The distribution of funds is based on the
  proposal received from the assessed MFIs

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Funds disbursement proposal in Namangan
Allocation of funds/ MFI FV Mard BIC K Total
Chortoq rayon 105.745 0 105.745
Mingbuloq rayon 45.722 0 45.722
Kosonsoy rayon 0 23.565 23.565
Total 151.467 23.565 175.032
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Funds disbursement proposal in Karakalpakstan
Allocation of funds/ MFI Parwaz BWA Davlat Total
Karauzeak rayon 60.718 0 0 60.718
Kegeyli rayon 0 80.389 24.012 104.402
Shumanay rayon 0 0 56.322 56.322
Total 60.718 80.389 80.335 221.442
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Proposal for the ELSs Exit strategy

• I. Grant the funds to the Partners based on the
  results of performance assessment at the end of
  MOA.
• II. Reallocation of funds among the Partners if
  some of the selected Partners will not meet the
  performance criteria established for each of them
  individually
• III. Total withdrawal of funds and utilization as
  grants under the ELSs component 2 Social
  investment fund if none of the selected Partners
  will meet the performance criteria established

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Activities undertaken

• Regional Microfinance Committees set up to select
  partner institutions
• Review of current micro-credit environment
  initiative
• 5 MFIs selected as partner institutions in the
  third component of the ELS
• Benchmarking report of MFIs in KK and comparison
  with peers in ECA region
• Proposals from MFIs for new products using ELS
  funds
• MOUs for disbursement of funds allocated to
  micro-credits with five MFI-partners drafted to
  launch micro crediting schemes in 100 communities

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Activities undertaken

• Agricultural sector review
• 15 farmers focus groups to identify problems and
  needs to be incorporated in the agricultural
  review report
• 1 template business plan developed for farmers
  associations,
• 1 training conducted on business planning
• International consultants identified for support

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• www.els.uz