1 eu/undp project «enhancement of living standards in karakalpakstan and namangan region of...
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EU/UNDP Project «Enhancement of Living Standards in Karakalpakstan and Namangan region of Uzbekistan”
Income Generation Component
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Overall Objective
• Improve the livelihood of local communities in the republic of Karakalpakstan and Namangan region
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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 women’s
needs. • Increase number of small scale entrepreneurial
projects and micro-enterprises• At least one pilot agricultural cooperative in each
region established and document experiences
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Selection Process of the potential partners
• Phase I – Selection of partners by the ELS’s microfinance committees in KKP and NMG
• Phase II – Performance and capacity assessment of the selected partners to implement the ELS’s MF component
• Phase III – Signing of the Memorandum of agreement with the selected partners
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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 ELS’s 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 ELS’s 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 ELS’s 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 MFI’s selected as partner institutions in the third component of the ELS
• Benchmarking report of MFI’s in KK and comparison with peers in ECA region
• Proposals from MFI’s 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