usaid economic resilience activity: annual report
TRANSCRIPT
This publication was produced by the USAID Economic Resilience Activity under Contract No. 72012118C00004 at the request of the
United States Agency for International Development. This document is made possible by the support of the American people through the United States Agency for International Development. Its contents are the sole responsibility of the author or authors and do not necessarily reflect the views of USAID or the U.S. Government.
USAID ECONOMIC
RESILIENCE ACTIVITY:
ANNUAL REPORT
October 01, 2019 – September 30, 2020
Program Title: USAID Economic Resilience Activity
Sponsoring USAID Office: USAID Ukraine
Contract Number: 72012118C00004
Contractor: DAI Global, LLC
Submission Date: October 30, 2020
Author: DAI Global, LLC
CONTENTS
CONTENTS 2
ACRONYMS AND ABBREVIATIONS 3
I. EXECUTIVE SUMMARY 6
II. INTRODUCTION 8
BRIEF SUMMARY OF ACTIVITY 8
III. CONTEXT UPDATE 9
KEY NARRATIVE ACHIEVEMENTS 9
BIG INFRASTRUCTURE 11
INCLUSION 13
INCREASING CAPABILITIES 13
INCREASING OPPORTUNITIES 18
GROWTH 23
MARKET EXPANSION 24
INVESTMENT ACCELERATION FOR MSMES 31
TRANSFORMATION 33
DRIVING VISION 34
COMMUNICATION 39
SUPPORTING INFRASTRUCTURE INVESTMENT 41
IV. COORDINATION 43
V. PROGRESS AGAINST TARGETS 46
VI. PERFORMANCE MONITORING, EVALUATION AND LEARNING
50
VII. LESSONS LEARNED 54
VIII. FINANCIAL INFORMATION 57
IX. MANAGEMENT 58
X. SUB-AWARD DETAILS 60
3 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
ACRONYMS AND ABBREVIATIONS
A2F Access to Finance
AGRO Agriculture Growing Rural Opportunities Program
AMELP Activity Monitoring, Evaluation, and Learning Plan
BSP Business Service Provider
BSPU Berdiansk State Pedagogical University
CAP Credit for Agricultural Producers program
CC Consolidated Community
CdA Chargé d’Affaires
CEP Competitive Economy Program
COP Chief of Party
CSR Corporate Social Responsibility
DAI DAI Global LLC
DFID Department for International Development
DG East Democratic Governance East
DonNTU Donetsk National Technical University
DOSA Donetsk Oblast State Administration
DRC Danish Refugee Council
ECOS Environmental Compliance Support
EBRD European Bank for Reconstruction and Development
EIB European Investment Bank
EPS Energy Security Program
ERA Economic Resilience Activity
ERC Environmental Review Checklist
EU European Union
FAO UN Food and Agriculture Organization
FHI 360 Family Health International 360 (NGO)
FMCG Fast Moving Consumer Goods
GAP Good Agricultural Practices
GBV Gender-based Violence
GCA Government Controlled Areas
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit
GoU Government of Ukraine
HACCP Hazard Analysis and Critical Control Points
HoReCa Hospitality, Restaurant, Catering
I4M Innovations for Manufacturing
ICA Individual Contract Agreement
ICRC International Committee of the Red Cross
IDP Internally Displaced Persons
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 4
IFI International Financial Institution
IOM International Organization for Migration
I4M Innovations for Manufacturing
ISS Institute for Strategic Studies under the President of Ukraine
IT Information Technology
KOSA Kherson Oblast State Administration
LGBTQI Lesbian, Gay, Bisexual, Transgender, Queer and Intersex
LNAU Luhansk National Agrarian University
LoA Life of Activity
LOSA Luhansk Oblast State Administration
LRLC Luhansk Regional Laboratory Center
MEL Monitoring, Evaluation, and Learning
MinTOT Ministry for Reintegration of Temporary Occupied Territories
MIF Mariupol Investment Forum
MoES Ministry of Education and Science
MSME Micro, Small, Medium Enterprises
MSRA Market Systems Resilience Assessment
MVP Minimum Viable Product
NGO Non-Governmental Organization
NSDC National Security and Defense Council
OTI Office of Transition Initiatives
PE Private entrepreneur
PLEDDG Partnership for Economic Local Development and Democratic Governance
PPP Public Private Partnership
PSTU Pryazovskyi State Technical University
R&D Research and Development
RFA Request for Applications
RFP Request for Proposal
P&R Pause and Reflect
SAF Small Architectural Form
STEM Science, Technology, Engineering, Mathematics
TA Technical Assistance
ToR Terms of Reference
ToT Training of Trainers
TSATU Dmytro Motornyi Tavria State Technical University
UCAB Ukrainian Club of Agribusiness
UCBI II Ukraine Confidence Building Initiative
ULA Ukrainian Leadership Academy
UNDP United Nations Development Program
5 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
UNFPA United Nations Population Fund
UNICEF United Nations Children’s Fund
USAID United States Agency for International Development
UUCU Ukrainian United Credit Union
UWF Ukrainian Women’s Fund
VC Value Chain
VR Virtual Reality
VEI Vocational Education Institution
VET Vocational Education Training
WHO World Health Organization
WBSC Women’s Business Support Centers
WNISEF Western NIS Enterprise Fund
WfD Workforce Development
ZOSA Zaporizhzhia Oblast State Administration
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 6
I. EXECUTIVE SUMMARY
The year can be reviewed in two halves, before and after COVID-19. Although not a symmetrical
division, the ERA program felt the effects and changes brought on by the global pandemic in March
2020, almost mid-way through implementation of an ambitious and innovative workplan. It was
innovation, ambition and creative teamwork that enabled ERA to adapt and make plans to achieve
and exceed many goals and objectives in Year 2.
October 2019 began with strong positive economic indicators in Ukraine’s economy including
employment and sales throughout ERA’s area of operation in the eastern Oblasts of Luhansk,
Donetsk and Zaporizhzhia. The outlook was positive, as the international community was able to see
firsthand the enthusiasm and opportunities available in the east at the Mariupol Investment Forum
supported by ERA and attended by President Zelenskyi and acting U.S. Ambassador Taylor.
While the Russia-backed conflict in eastern Ukraine was still a primary concern during the reporting
period, the early steps of the Zelensky government to reduce tension through prisoner swaps and
discussions of potential economic cooperation allowed citizens to focus on new opportunities and
economic development. In response, ERA supported development of economic opportunities
throughout the year with targeted programming in each of its newly arranged and integrated
technical components: Inclusion, Growth and Transformation. ERA also maintained its commitment
to close coordination with USAID partners such as DG East, the Energy Security Program (EPS), the
Competitive Economy Program (CEP), the Credit for Agricultural Producers (CAP) program,
international organizations including the World Bank and European Investment Bank, and local,
Oblast and national government partners.
ERA introduced a new organizational structure by adding a Deputy Chief of Party Operations, based
in Kyiv, to streamline grants and procurements systems, a Senior Engineer in Kramatorsk to solidify
the logical sequence and quality of the infrastructure project verification process, and a new Deputy
Chief of Party Technical based in Kramatorsk to complement and support partner relationships and
the in-depth technical and contextual knowledge of the Economic Strategy Lead based in
Sievierodonetsk.
Despite the onset of the COVID-19 global pandemic and the accompanying remote work and travel
restrictions, ERA adapted its programming and operations through direct communication and
coordination with partners and beneficiaries to continue progress on workplan goals and targets
while maintaining compliance with Government of Ukraine, USAID and DAI health and safety
policies and procedures.
ERA expanded its partnerships and area of implementation in February to include Henichesk,
Kherson Oblast, through signing a Memorandum of Cooperation. The ERA Inclusion, Growth and
Transformation teams worked together throughout the year to adapt programming and project
interventions to an online or distance format and reschedule or redesign activities with partners,
beneficiaries, and grantees.
The Inclusion team worked closely with partner organizations, universities, NGOs, ministries, local
government employment agencies and grantees to continue to deliver online training and technical
assistance to vulnerable groups including women entrepreneurs, students and youth including IT
startups throughout the east. The Growth team supported local produce firms to attend
international trade fairs in Berlin and Dubai resulting in new forward contracts, and increased access
to finance for SMEs and targeted online strategic consulting for 16 innovative manufacturing
7 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
enterprises. The Transformation team partnered with Luhansk Oblast and Donetsk Oblast, eleven
municipalities and consolidated communities (Starobilsk, Novopskov, Bilovodsk, Pokrovsk,
Dobropillia, Kramatorsk, Bakhmut, Mariupol, Berdiansk, Melitopol, and Henichesk) and the seven
cities of the Coal City Sustainable Development Platform in Donetsk Oblast to develop and
promote highly participatory economic development strategic plans and visions for the future,
including identification of high-priority infrastructure projects. Working together, the ERA teams
combined to award more than $4.2 million in grants, train more than 2,400 people, help SMEs
secure more than $6 million in new investment and assist at least 500 people to find new or better
employment.
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 8
II. INTRODUCTION
DAI is pleased to submit this Annual Report for the USAID Economic Resilience Activity (ERA)
covering the period of October 1, 2019 to September 30, 2020. The Activity aims to improve the
overall economic resilience of eastern Ukraine in response to Russia’s aggression, which has left
industry ransacked, communities divided physically and politically, and weakened the social, financial,
and physical assets that underlie resilience. The Activity will directly contribute to USAID/Ukraine’s
Development Objective 2: Impacts of Russia’s Aggression Mitigated, and Intermediate Results 2.1:
Conditions Improved for Reintegration, and 2.4 Common Civic Values Increasingly Embraced.
This report details the Activity’s accomplishments during the second year and describes the most
successful interventions, benchmarks achieved, and performance standards achieved.
BRIEF SUMMARY OF ACTIVITY
Over the life of the Activity, ERA will help eastern Ukraine reorient its economy toward sustainable,
diverse, and inclusive growth by working through three interrelated objectives:
OBJECTIVE 1: PROVIDE ASSISTANCE TO STABILIZE THE ECONOMY OF EASTERN
UKRAINE. This objective will build on previous work under Office of Transition Initiatives (OTI)
programming and U.S. Government humanitarian assistance. ERA will continue to support quick-
response, high-impact interventions that address the immediate needs of conflict-affected individuals,
including internally displaced persons (IDPs), returnees, women, youth, veterans, IDP host
communities and businesses (likely micro-enterprises with up to 10 employees and small enterprises
with 10 to 50 employees).
OBJECTIVE 2: SUPPORT THE SUSTAINABLE DEVELOPMENT OF SMALL AND MEDIUM-
SIZED ENTERPRISES (SMES). This objective will support medium-term results by starting with
end markets, improving SMEs’ ability to deliver in-demand goods and services, and building the
surrounding market infrastructure—from information to finance to knowledge and skills—that
enables longer-term growth. Objective 2 will focus primarily on SMEs with up to 250 employees; in
select cases, it will support innovative Western-leaning companies with up to 1,200 employees that
are near the line of contact and provide much-needed employment in stressed areas.
OBJECTIVE 3: BUILD CONFIDENCE IN THE FUTURE OF THE EASTERN UKRAINIAN
ECONOMY. This objective will play a critical role in the integration and coordination of all ERA
interventions and culminates in the most important result: a path forward to a viable economic
future for the eastern region as an integrated part of the Ukrainian economy, one that is understood
and supported by the population and energizes people into entrepreneurial action. By orienting
interventions under Objective 3 around current and potential end markets for growth sectors that
are a combination of traditional and new, ERA will simultaneously promote the diversification that
will lead to a more resilient economy and create opportunities for innovation and transformative
ideas.
9 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
III. CONTEXT UPDATE
At the time of the onset of the COVID-19 pandemic, Donetsk and Luhansk Oblasts in eastern
Ukraine were already experiencing the brunt of a general economic downturn happening throughout
Ukraine.
According to the Department of Statistics, in Donetsk region the decline in industrial production
continued through the first half of 2020 compared to the same period last year, with a 10.7%
decrease in the volume of manufactured industrial products. From January 2020 a decline was
recorded in all main industrial activities of the region except for production of food, beverage and
tobacco products, where production increased by 8.0% compared to January–July 2019.
In Luhansk region, the decline in industrial production was felt on an even larger scale and continued
through the reporting period. Compared to the same period in 2019, industrial production in July
2020 fell by 37.8%. At the same time, in general in Ukraine for the same period, industrial
production decreased by 4.2%.
Coal mining and electricity production also decreased throughout both oblasts. In Luhansk and
Donetsk Oblasts the number of unemployed people increased during the epidemic. The highest
unemployment rate in Ukraine (according to International Labor Organization methodology) in the
first half of the year was registered in Luhansk (16%), Donetsk (15%) and Kirovohrad (12.7%)
Oblasts according to the State Statistics Service—all higher than the national rate of 9.6% for the
same period.
According to the World Bank, the economy in Ukraine is expected to contract by 5.5% in 2020, as
the negative impacts in the first half of the year will be partially offset by a noticeable recovery in
domestic demand in the second half and positive contributions from net exports. The baseline also
assumes a possible re-imposition of COVID-19 restrictions and containment measures in response
to a “second wave” and an increase in the number of positive cases recorded at the time of this
report, and a slower pace of reforms.
KEY NARRATIVE ACHIEVEMENTS
CONTRACT DELIVERABLES AND OTHER REPORTING
Over the course of the year, all core deliverables were finalized, delivered and approved during the
reporting period including the Construction Plan. Other recurring deliverables—such as monthly
schedules, quarterly reports, and weekly progress reports—were submitted to USAID per the
schedule outlined in the contract.
TECHNICAL INTERVENTIONS
As a result of programming innovations designed during the Year 2 Workplan development retreat
which included participation from USAID and multiple ERA partners, ERA implementation began in
October 2019 with a new team structure and approach of program objectives addressed within
three integrated complementary components of Inclusion, Growth and Transformation. ERA
continued close coordination with its government partners at national, regional and local levels, with
other USAID implementers including DG East, CAP, CEP and ESP, other international development
organizations and financial institutions such as UNDP, UNICEF, IOM, World Bank, EBRD and EIB,
and our direct beneficiaries (Donetsk and Luhansk Oblast State Administrations—DOSA and LOSA)
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 10
to ensure active participation in an integrated approach to supporting more inclusive economic
growth. This reporting period, ERA designated five sub regions across its area of operation in
Luhansk, Donetsk and parts of the Azov Sea regions. The sub regions are: 1) Luhansk GCA 2)
Northern Donetsk GCA 3) Central Donetsk GCA 4) Mariupol 5) Azov Sea Coast. Within each sub
region ERA operates as a coordinated team, bringing support and expertise from the Inclusion,
Growth and Transformation pillars to the unique and specific needs and conditions of each area.
ERA support to the successful Mariupol Investment Forum represented the new more integrated,
three-component approach and was one of the first applications of the ERA formula of Inclusion plus
Growth equals Transformation. While the forum was successful in attracting international attention
and real commitments for financial investment, ERA also supported and highlighted the Youth Forum
hosted locally by the Ukrainian Leadership Academy (ULA), which discussed opportunities for
inclusive training and development in the region. ERA worked closely with the President’s Office, the
Ministry of Finance, officials from LOSA and DOSA and the Mariupol Mayor and city council to
promote the new, long-term, positive transformative vision of the future of Mariupol and the entire
eastern Ukrainian region.
Throughout the reporting period ERA worked closely with Luhansk, Donetsk and Zaporizhzhia
Oblasts to identify and support high priority development initiatives. Supporting big infrastructure
investments remains a priority for all regional governments. ERA worked closely with Luhansk
Oblast to facilitate the development and preparation of a portfolio of large infrastructure project
proposals valued at more than $144 million, for potential funding by other international donors. ERA
also supported Luhansk in funding a study of the economic impact of the currently blocked rail
system and preparation of a ToR for a Rail Connector project recently supported by a central
government working group reporting to the President’s Office. The ERA team worked with the
World Bank to help them define their approach to working in the east and direct an additional $60
million for investment in eastern Ukraine for a total of $260 million. ERA also worked closely with
European Investment Bank (EIB) on identifying potential priority projects for their $200 million
investment in the east.
The Inclusion team quickly adapted its normally highly personalized and interactive in-person
approach to supporting and training beneficiaries from target vulnerable groups to online learning
platforms, with an enthusiastic response from many partners, grantees, and beneficiaries. The
Inclusion team was instrumental in preparing a concept note on gender-based violence (GBV) in
eastern Ukraine for ERA’s Rapid Response COVID-19 programming. The Inclusion team continued
to make progress in increasing capabilities and opportunities through launching 30 grants and training
more than 2,400 people throughout the year. Under increasing capabilities, ERA continued to
support grantees such as ERA partner Ukrainian Leadership Academy (ULA), which met quarantine
restrictions with innovation and flexibility. The approach of ULA’s academic program is based on
principals of mutual assistance and active student participation in host communities. The academy
quickly transitioned essential planned academic activities to an online format that allowed 35
students to complete their requirements and graduate on time in June 2020. ERA grantee the
Ukrainian Women’s Fund (UWF) was not able to adapt all its planned programming to an online
mode but managed to remotely train 150 women who mastered or improved skills in business
planning, marketing and business processes, and received mentoring to make their businesses more
competitive. Under increasing opportunities, the Inclusion team awarded grants to private
entrepreneurs and MSMEs who adapted their business plans to navigate the restrictions and
conditions of the changing market in the COVID-19 crisis.
11 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
The Workforce Development (WfD) team supported creation of an innovation ecosystem and
establishment of dual education systems in the east through continued partnership with universities,
vocational and technical schools, institutes of higher learning, businesses, and government. As part of
ERA’s Rapid Response to COVID-19, the WfD team quickly identified six universities in the east to
provide support for distance learning and training with delivery of hardware, software, and
equipment. Five of the six universities received grants for distance learning support: Berdiansk State
Pedagogical University (BSPU), Donetsk National Technical University (DonNTU), Dmytro Motornyi
Tavria State Technical University, Luhansk National Agrarian University (LNAU) and Volodymyr
Dahl East Ukrainian National University (Dahl). Pryazovskyi State Technical University (PSTU) is due
to receive a similar grant during the first quarter of FY2021.
The Growth team supported progress in all growth sectors, including market expansion for two
ERA SME fruit and vegetable producer beneficiaries which attended international food trade fairs in
Dubai and Berlin and returned with more than $800,000 in potential new sales agreements. Since
the onset of COVID-19 travel restrictions and cancellation of international fairs, ERA is monitoring
planned online trade fairs and will support ERA partner participation in these types of forums in the
year ahead, until in-person trade fair attendance is possible again. ERA increased access to finance
for businesses in the east through support to the Ukrainian United Credit Union through an ERA
grant that will increase access to credit for MSMEs throughout Luhansk, Donetsk and the Azov Sea
regions, and supported the Transaction Advisory Services initiative to bring investments to small and
medium-sized business in the east. After a delay to redesign for online delivery, the Innovations for
Manufacturing (I4M) sector team began supporting 16 manufacturing firms through a focused, online
consulting and business strategy training series organized by Roland Berger. The Biofuels sector
team identified eight models for stimulating the market for biofuels in rural communities that will be
rolled out as grants in Year 3. The Tourism sector team initiated a series of trainings on new
tourism product development and began the development of a unified Azov regional tourism brand.
The IT sector team continued to support the establishment of industry clusters in Mariupol,
Kramatorsk and Luhansk Oblast which will be the primary movers of IT development in the east.
The Transformation team successfully completed a highly participatory, public process of creating
Strategic Economic Development Plans in four cities and consolidated communities in Donetsk and
Luhansk Oblasts, as well as the Luhansk Oblast State Administration Development Strategy 2020-
2027. All strategic plans were presented for public comment and formally adopted. Throughout the
year, ERA continued supporting the Mariupol municipality/city council and the Coal Cities Platform
in Donetsk Oblast to create strategic plans which will identify high priority strategic infrastructure
projects and other initiatives for co-financing and implementation. ERA partnered with international
development organization GermanWatch and EU-funded EU4Business to develop a roadmap,
strategy, and priority projects for the central Donetsk coal sector transformation of seven
municipalities: Dobropillia, Myrnohrad, Novohrodivka, Pokrovsk, Selydove, Toretsk and Vuhledar.
BIG INFRASTRUCTURE
In 2019–2020, the ERA team began to support Donetsk and Luhansk Oblast administration activities
to prepare big infrastructure project proposals for potential funding from other international
donors. ERA also supported Luhansk in funding a study of the economic impact of the currently
blocked rail system and preparation of a ToR for a Rail Connector project recently supported by a
central government working group reporting to the President’s Office. The ERA team worked with
the World Bank to help them define their approach to working in the east and direct an additional
$60 million for investment in eastern Ukraine for a total of $260 million. ERA also worked closely
with EIB on identifying potential priority projects for their $200 million investment in the east. Such
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 12
large-scale projects are not only aimed at overcoming the consequences of the conflict, but also
engage numerous local companies in stimulating regional development including construction and
design work, equipment supply and creating jobs.
Starting from the ERA-supported Mariupol Investment Forum in October 2019, the ERA team has
worked with Luhansk Oblast State Administration (LOSA) on supporting the economic analysis and
feasibility of restoring and restructuring the railway service in Luhansk region, which will directly
benefit more than 70% of the GCA population as well as support Ukraine's humanitarian activities
for the population living in NGCA. In October–November 2019, ERA conducted research on the
project’s potential impact and presented the results on December 6, 2019 at a conference organized
by the Institute for Strategic Studies (ISS) under the President of Ukraine, after which the ISS sent
recommendations to the President’s Office, the National Security and Defense Council (NSDC) and
the Cabinet of Ministers. In April–May 2020 the ERA team, in close cooperation with LOSA,
prepared a ToR for development of a feasibility study for construction of the railway, coordinated
with Ukrzaliznytsia (state railway company) and other stakeholders. At the end of September 2020,
the ToR was approved by a special interdepartmental working group created by Vice-Prime Minister
Oleksiy Reznikov to prepare and implement the project. In 2021, ERA will further support the
railway project in assessing its environmental and social impact as well as engaging civil society and
businesses from eastern Ukraine into active partnership.
At the Mariupol Investment Forum, the ERA team organized several meetings between the LOSA
delegation and international financial institutions (IFIs) to discuss possible financing of highway and
road renovation. From November 2019 to February 2020, the ERA team assisted the World Bank
delegation in preparation of the 3R Project (Eastern Ukraine: Reconnect, Recover, Revitalize),
including selection of potential road infrastructure projects to boost the local economy. After
several meetings facilitated by ERA with representatives of local business, civil society, and
authorities from different districts of Luhansk region, the evident enthusiastic interest demonstrated
the potential for expanding road revitalization. In July 2020, the EIB decided to further commit to the
project by increasing their budget from 100 to 217 million euros. In 2021 ERA will continue
supporting the World Bank and EIB in 3R road project implementation by improving the capacity of
local governments to prepare independent applications to IFIs in the future.
The Mariupol Investment Forum also helped ERA to start cooperation with Donetsk Oblast State
Administration (DOSA) over solving the most burning humanitarian issue for the Donetsk region—
restructuring and reconstruction of the water supply system and renovation of Voda Donbasu state-
owned utility company. As a result of productive communication facilitated by ERA between
different partners operating in this sector (e.g., preliminary agreements with the leadership of
Donetsk Oblast in January 2020), the USAID Energy Sector Project (ESP) has decided to conduct a
Technical and Energy Audit of the water supply system to be completed in December 2020. In 2021
ERA plans to assist DOSA and Voda Donbasu to aggregate research by USAID, ICRC (a completed
financial audit of Voda Donbasu is scheduled for October 2020), UNICEF and other international
NGO partners in order to create a common understanding of the water supply improvement
project, which will be presented publicly throughout the region to highlight the project’s
prioritization by Ukrainian authorities and IFIs. Furthermore, in September 2020, ERA received an
invitation from the Ministry for Reintegration of Temporary Occupied Territories (MinTOT) to join
their work on improving the water supply in Luhansk Oblast and participate in a visit of French
company representatives to Popasna Vodokanal (the Luhansk Oblast analogue of Voda Donbasu) in
October 2020.
13 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
INCLUSION
During the second year of implementation, the ERA Inclusion component was able to accomplish
most planned interventions in accordance with the workplan, even with the onset of the COVID-19
pandemic and its negative implications on ERA programming. ERA’s planned interventions were
focused on identification of new approaches to marginalized and underrepresented groups in
Donetsk and Luhansk Oblasts, joint co-creation of grants with local MSMEs, NGOs and lyceums,
upgrading professional skills for entrepreneurs, and support to professional communities of women
and other vulnerable groups. Overall, the Inclusion component managed to achieve initially planned
results through a timely adaptive management approach undertaken by ERA management and the
Activity team. Shifting interventions to an online format, where possible, allowed the Inclusion team
to stay on track with scheduled events. In Year 2, the Inclusion team launched 30 grants. ERA
inclusion grantees managed to adapt their implementation approaches to new quarantine limitations
by switching grant interventions to an online mode where practical which, in some cases, allowed
grantees to exceed some of their performance targets: for example, the IT Nation grant
implemented by NGO Global Compact Ukraine attracted 2,500 beneficiaries to its online training
program, 500 more than originally planned.
INCREASING CAPABILITIES
WOMEN
ERA supported an educational program
for women implemented by the
Ukrainian Women's Fund (UWF) aimed
at improving the economic capacity of
women from small towns and villages in
eastern Ukraine. As result, 150 women
mastered or improved their skills in
business planning, marketing, and
business processes, received expert
mentoring and became more competitive
in terms of their current businesses. The grantee organized and conducted six business schools for
businesswomen in Kramatorsk, Mariupol and Sievierodonetsk, supported mentorship for
beneficiaries, provided consulting from hired specialists, and ran roundtables and a final business
camp. For more effective work in each city, the grantee created Women’s Business Support Centers
(WBSC) where anyone participating in the activity could apply for advice from business lawyers.
From the very first public presentation of the activity there was high demand from women in
Donetsk and Luhansk Oblasts, with more than a thousand applications submitted for participation
(nine applicants for each available place). The main selection criteria were: motivation to develop or
scale up a business; residence within ERA target Oblasts with preference to those living in small rural
communities, and capacity to participate in the entire training program (assessed during a follow-up
interview). In each target city, a separate team of trainers—practitioners, business coaches and
specialists on business development—worked with each group of participants. During a four-day
training of trainers (ToT) 12 trainers were instructed on UWF training methodology to be utilized in
trainings for grant beneficiaries, as well as on mentorship support via individual consulting for
training graduates.
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 14
The WBSCs successfully completed the first round of business development training for women. In
total, 79 women completed the training course at three WBSCs (26 women in Sievierodonetsk, 27
in Mariupol and 26 in Kramatorsk), gaining knowledge and skills on starting and running a business.
Pre- and post-training evaluations done by the grantee show an average 34% improvement of
knowledge. The second round of the same training and mentorship program is currently ongoing.
Quarterly monitoring conducted through Year 2 among grantee beneficiaries discovered that 23
people confirm better employment conditions, including four with self-employed status who were
unemployed before taking part in the grantee’s training.
The WBSCs provided mentorship support to 36 graduates from the first training program cycle,
who were selected on a competitive basis. All participants noted the real effectiveness of mentoring
support after graduating from the business school. Mentoring sessions helped them solve individual
specific business issues, especially in the context of the COVID-19 pandemic as WBSC mentors
assisted participants in finding new markets, keeping their businesses operating and minimizing
potential losses. Complementary to the business schools and mentoring sessions, UWF organized a
series of 15 information webinars during May–July 2020 for 706 women, including 631 from Luhansk
and Donetsk Oblasts and 75 women from the Sea of Azov area.
The high level of efficiency of the grant interventions, which were based on an individualized
approach, enabled beneficiaries to prepare quality business plans and receive either grant support
business plan. Motivated by pandemic restrictions to adapt and expand her small production and
new niche—branding for business—and received her first orders from fellow participants. After
expand the range of services with almost no additional investment and to develop a competitive
business plan for creation of a website highlighting nearby tourism destinations in Donbas Oblast.
YOUTH
In the beginning of Year 2 ERA supported
the establishment of the Ukrainian
Leadership Academy (ULA) branch in
Mariupol. ULA’s primary mission is to
discover and support leadership potential
in young and ambitious high school
graduates who would like to take a gap
year to help them determine their future
direction. The quarantine and associated
restrictions were serious challenges for
ULA because their approach is based on
principles of mutual assistance, active participation and leadership that are most effective when
students are living together in a host community. Fortunately, the grantee transitioned all essential
from other donors or private investments in their businesses. For example, a self-employed mentee
learned how to market and sell her sewing services and goods and developed a competitive
start selling online, she not only gained additional individual clients but several large orders
from Kyiv-based companies. While studying at the UWF business school, she discovered a
obtaining a 6,500 Euro grant from UNDP this summer to help with start-up expenses, she has since registered as a private entrepreneur.
Another graduate of the first round of WBSC training and mentoring in Kramatorsk is the owner Kolo Druziv, a tourist agency and cafe which she opened using her own savings in 2019.Training at the UWF business school and further mentorship sessions inspired her to
15 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
scheduled academic activities to an online format that allowed 35 students to complete their
academic requirements to graduate in June 2020.
Through multiple training events over the year, ULA has established a large, informal community of
young Ukrainians living in the east. Apart from the academy training, students have been involved in
the Youth Council, the Cool Youth strategic planning working group contributing to the Mariupol
Development Strategy 2021–2030, a summer school for Mariupol schoolchildren, the Liberal Arts
program for teachers from Donetsk, Luhansk and Zaporizhzhia Oblasts, and many other activities.
ULA enables young people to participate in decision-making as a contribution to Mariupol’s strategic
planning process: a ULA mentor was elected deputy head of the Cool Youth working group and the
results of a youth survey conducted by ULA students with the assistance of a professional
sociological research agency substantially contributed to elaboration of the Mariupol Development
Strategy 2021–2030.
The youth survey showed a range of positive findings: the
majority of respondents confirm that Mariupol is a rapidly
developing city and a good place for work and life; almost
73% of respondents rather or completely agree with the
statement that Mariupol has certain advantages among
other cities of Ukraine for youth development due to
increased cultural opportunities, many festivals, educational
institutions, proximity to the sea, diverse identities and increasing empathy of the population after
the beginning of the conflict in eastern Ukraine; around 87% of respondents see an increase in the
level of opportunities for youth over the last two years.
This fall 40 new students began their academic program for the 2020–2021 ULA academic year. On
September 26, 2020, the official opening ceremony of the newly renovated ULA Mariupol campus
Another ERA youth partner, Shift, a non-profit youth organization established in August 2018 in
Kramatorsk, discovered in previous work that young people in Donetsk Oblast are very interested
in creative industries and creative entrepreneurship as a way of earning money in their free time
entrepreneurial thinking for successful self-fulfillment and a better quality of life for themselves and
society. Shift noted that unfortunately there was no space in Kramatorsk where young people could
get practical expertise on how to monetize their talents, skills and creative ideas without cash
investment.
73%
survey respondents see
the advantages for youth
development in Mariupol
building took place. Acting Deputy Chief of Mission and USAID Mission Director attended theeremony and congratulated the Ukrainian Leadership Academy’s achievement in developingcohorts of new local youth leaders. ULA students and mentors will cohabit in Mariupol for thenext 10 months while studying and organizing numerous networking events. The ULA campushas earned the name Center of Leadership Development, which reflects its mission and characterizesthe events that will take place in it.
after classes. Shift has the mission to promote and develop young people’s creative skills and
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 16
ERA issued a grant to Shift on March 6, 2020 for
establishing a unique, youth-friendly space called
Art-Coworking. Since the official opening on June
1, 2020, Shift has conducted seven practical
workshops for 99 participants who learned a range
of new skills such as using sewing and overlock
machines, drawing with professional markers,
image processing and work with a textile printer.
Art-Coworking participants have successfully
utilized their new skills by selling their products
through Instagram and Etsy platforms. Overall,
more than 400 hours of consulting by the grantee’s staff have led to the production of more than
300 products by some 200 users of the Art-Coworking space.
Quarantine restrictions have had an impact on Art-Coworking’s mode of work. Starting from July 1,
2020, all registered workshop participants are divided into two groups of no more than 10 people,
demonstrating Shift’s flexibility in adjusting to the unstable environment without halting grant
implementation.
Near the end of the reporting period, ERA began implementation of a new youth-oriented activity
through a grant award to international NGO Terre des Hommes. This grant will exclusively focus on
young people studying in vocational education institutions. The grant aims to increase the
participation of non-educated youth in the Ukrainian economy by strengthening Vocational
Education Training (VET) and raising employability and entrepreneurial skills with a focus on digital
and IT competencies. Within the grant, Terre des Hommes will train 450 students to use digital
equipment at Digital Fabrication Workshops, as well as provide additional training on financial
management and entrepreneurship.
UNEMPLOYED
ERA has been supporting online educational programming through the IT Nation grant implemented
by NGO Global Compact Network, with the purpose of providing those interested in IT as a
profession a chance to obtain knowledge and skills to become competitive specialists in Ukraine’s
growing IT job market.
The grant responds to the need for decent working opportunities and living conditions for residents
of Donetsk and Luhansk Oblasts. Analyzing data from the State Statistics Service of Ukraine for
2018–2019, Global Compact Network
found that the unemployment rate in the
east remains significant, with economic
activity in decline. Therefore, the goal of
this grant was to cover not only socially
vulnerable groups, but to encourage
proactive people with university degrees
and readiness to learn who are
temporarily disadvantaged by
unemployment to acquire the IT skills in
demand throughout the job market.
17 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
The project was designed to enable different segments of the population to learn from scratch and
gain basic professional skills in IT. The online education program within the grant began in January
2020 by providing training for participants on one of five specific skill tracks: front-end web
development, web coding, automated testing, manual testing and digital skills (basically for office
workers regardless of their type of job duties). Each track has its own features and level of difficulty.
However, all are in high demand in both the Ukrainian and global job markets.
Because of the COVID-19 pandemic and quarantine measures, a series of additional offline
workshops were conducted in the form of webinars, which increased from the six originally planned
to 32. In addition, eight were prepared as purely practical online workshops (boot camps) with
homework and evaluation by professional mentors. Modification of the events’ format made it
possible to keep students and enable them to continue acquisition of knowledge and skills.
Despite the adjustments made to the program, it continues to be implemented and bring both
qualitative and quantitative results. In total, 2,556 people from Donetsk and Luhansk Oblasts have
registered to participate in the IT Nation program. By September 30 there were 440 unique
graduates. Moreover, 185 students earned two or more certificates of completion, meaning that
they managed to pass several courses simultaneously. Among the unique certificate holders, 102
initially declared themselves unemployed and 21 graduates identified themselves as self-employed, i.e.
without a license or registration as a private entrepreneur, which is considered unstable
employment.
The grantee organized a career-oriented session where mentors talked about the rules of writing
and designing a resume and preparing for interviews with an emphasis on technical (hard skills) and
non-technical (soft skills) aspects. To support the graduates, the grantee created a resume database
which currently contains 65 CVs. Global Compact has actively promoted the database among IT
companies and other businesses throughout Ukraine.
The grantee’s reporting indicates that grant participants are actively looking for entry level work or
at least an internship. In post-training surveys conducted by the grantee, 17 students declared that
results to continue to accrue over the next year.
Many graduates in post participation interviews mention the practicality and usefulness of the
they had been through first interviews and felt competent enough to be hired. An IDP from Bakhmut completed a full course of training on the platform within two months, prepared a resume,and engaged with the project mentor during webinars, setting an example to other participantsof how to work out mistakes when writing a resume, communicate in a professional manner,and be ready to succeed during an interview. ERA quarterly monitoring revealed that 13 GlobalCompact beneficiaries had declared better employment just a few months after completing theonline courses. It is still too early to see the total impact of the grant and ERA expects the
acquired IT skills. A father of a disabled child from Bilokurakyne village joined the project with twogoals: to gain skills in a new IT profession and strengthen his digital skills. He is satisfied with thetraining program because it gave him an idea of where to move further in the IT field. Participationin the grant activity allowed him to strengthen and improve his skills in his current work; findcontractors that might hire him for outsourcing work; plan new projects; negotiate with potentialclients; and estimate budgets of future orders. Another grant beneficiary, a civic activist and singlemother from Kramatorsk, acquired the skills of a manual tester and now has a chance to be hiredby a Ukrainian IT company. She is already actively using her new skills to help test a website beingdeveloped for a friend’s company.
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 18
Unemployed graduates of the online IT courses have demonstrated progress in building and
INCREASING OPPORTUNITIES
SUPPORT TO MSMEs
During Year 2, ERA continued with co-creation of grants which were earlier selected through its
Year 1 APS, issued on February 28, 2019. As in Year 1, these grants aimed to target vulnerable and
hard to reach populations by supporting activities of local and international NGOs focused on
marginalized and underrepresented beneficiaries and development of local businesses that hire and
serve vulnerable groups. From 30 grants developed by the Inclusion team in Year 2, 11 grants have
been awarded for business development, with some of those grants reaching their end. Below are a
few success stories from our MSME beneficiaries.
national and regional Internet service
providers which offer affordable tariffs,
smaller communities remained
unattractive to large providers due to
Internet connection is essential for all categories of the population nowadays, and it is impossible to
imagine work or education without it, especially in remote rural areas. As the grant wrapped up on
October 6, 2020 (just after the close of the reporting period), the grantee had effectively
implemented all scheduled activities within the reporting period. The grantee’s company has
connected 128 households in four villages, which is 13 more than envisaged under the grant
workplan. Requests from neighboring villages keep coming, so the grantee is planning to expand its
presence in two more districts of the northern Donetsk area.
any staff and kept operations running, it had to increase operation costs to ensure personnel’s health
and safety. Nevertheless, the ERA grant allowed the entrepreneur to create four new jobs in
Slovyansk and improve working conditions for existing staff by raising salaries. Most of the staff
employed by the company represent vulnerable population categories including IDPs and
representatives of IDP host communities.
developing new careers. A recent graduate noted that he was already preparing for an interviewwith an IT company after completing courses in automated testing, digital skills, and front-enddevelopment. Another unemployed graduate initiated a webinar with mentors on manual testing,motivating other participants by her example of a woman striving to become a full-time ITprofessional. A self-employed graduate has successfully completed an advance web front-enddevelopment course and recently announced that he was working as an IT freelancer.
A private entrepreneur (PE) has been
operating the Sky Star Internet serviceprovider in the northern part ofDonetsk Oblast since 2014. Whilelarger cities like Sloviansk andKramatorsk are covered by
low returns on investment. The PE
has identified this gap as a niche for his business model and become the only Internet providerin the area. To expand the operating range of his low-margin business, he successfully applied
for a grant from ERA.
COVID-19 became a major challenge for the above-mentioned PE. Even though the company did not furlough
19 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
Luhansk and Sorokyne (now part of NGCA). In 2016, due to the conflict in the region, she was
forced to relocate to Kreminna where she opened a business after successfully implementing a
micro-grant from the Danish Refugee Council to provide entertainment activities to children.
Successful business operations and
constantly growing demand stimulated the
grantee to further expand her range of
services. In December 2019, an ERA grant
entertainment center and youth hub in
Kreminna. Regular field visits to the grantee
and reviews of its Instagram posts show
that the Mozaika children’s center is very
the total number of entertainment options to ten. As a result of ERA support, Mozaika’s business
activity has proved profitable as revenue increased in the first month after the center opened.
usage of new practices, techniques, and business management skills as a result of ERA assistance. The
quality of the services provided has gained positive feedback from many clients, who expect further
expansion of the grantee’s entertainment activity for children. The grantee plans to open a youth
hub at a separate premise, and a café for children’s center clients on the same floor as the
entertainment center.
After obtaining a single-needle embroidery machine and lockstitch sewing machine, the speed and
with embroidery and logos. "Clients began to turn to us with requests to apply embroidery on
clothing—names, logos of companies. A lot of buyers are interested in branding their company.
Now, thanks to the ERA grant, we have received a machine for embroidery. We have developed
almost 20 embroidery models and are already using the new equipment to embroider polo shirts
and work clothes,” says the businesswoman.
At the start of the COVID-19 pandemic, the sewing workshop quickly adapted to produce
protective masks, allowing it to fully retain its staff and prevent reduced revenue. The grantee hired
Another private entrepreneur is a former director of children's entertainment centers in
allowed this PE to open a children's
popular among the local population. The PE
now offers five new services such as air hockey and a children's labyrinth and ball pit, bringing
During the grant, the PE employed four new staff who confirmed better employment and
A third private entrepreneur had her own business sewing specialized workwear in Horlivka, DonetskOblast (currently NGCA). Due to the conflict, she moved to Lyman district with her family and withthe help of two employees managed to restore the sewing business in rented premises in Kramatorskin 2015. Despite the growing demand for medical workwear, the low production capacity of thesewing workshop reduced the number of potential clients and orders and outsourcing branded logoapplication increased costs and production time. In November 2019, the PE received an ERA grant to automate the manufacturing process with new sewing equipment, thus increasing her range ofservices, production, and sales.
quality of work has visibly increased and the PE can now develop and offer customers products
two new employees who keep applying new practices using the new equipment. The above-mentioned
PE expanded the range of services to produce not only medical clothing, but also branded clothes for
employees of cafes, restaurants, hotels, and cleaning companies. This expansion allowed her to recover from a temporary fall in sales at the start of COVID to a slight increase in monthly sales by the end ofthe reporting period.
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 20
SUPPORT TO UNIVERSITIES AND VOCATIONAL EDUCATION INSTITUTIONS
LNAU. Through Year 2 ERA provided significant support for developing the skills needed in the
local labor market via grants to partner universities. ERA reinforced the establishment of agrarian
education with a grant for Luhansk National Agrarian University (LNAU) to improve the educational
process after the University’s displacement from Luhansk city (now in NGCA) more than five years
ago. In 2019 LNAU relocated back from Kharkiv to Donetsk and Luhansk Oblast GCA. The second
relocation's success is not assured yet, however the University has definitively survived as an
educational and scientific institution, successfully attracting sufficient numbers of students for the
ongoing school year (close to student numbers in previous years of displacement).
ERA assisted LNAU to acquire furniture, a wide range of IT and office equipment, and software for
electronic document circulation to improve internal operations. Two modern laboratories of
veterinary medicine and food processing were equipped and launched for teachers and students as
well as for use in delivering better-quality agricultural extension services development, which will
provide additional benefits for local agribusinesses. ERA facilitated joint research and mutual
knowledge enrichment between LNAU and management of local businesses, which led to
establishing the first of several partnerships with local farming enterprises. Though these
partnerships LNAU has been able to leverage its research capacity, there are plans to conduct joint
testing of winter wheat varieties in LNAU’s fields together with local farmers in the 2020–2021
academic year.
AGROKEBETY Program. While proving the mechanisms for educational services’ delivery, the
LNAU grant also enhances the technical capacity and curricula of the displaced University. Aligning
with the ERA Workforce Development team’s strategy, the LNAU grant supports efforts to upgrade
students’ practical skills required by agricultural industry and further develop dual education through
cooperation with the Ukrainian Club of Agribusiness (UCAB) and its new Agrokebety Masters’
program. These efforts will significantly advance the University’s curricula and attract agricultural
companies’ top management for mentorship activities. Students will use completely new curricula
providing the best practices and applicable knowledge in agriculture. To achieve this, UCAB will
separately receive a grant to develop its offering through a series of events, and the Agrokebety
program will be introduced into two ERA partner agrarian universities, LNAU and Dmytro Motornyi
Tavria State Agrotechnological University (TSATU). Finally, in terms of sustainability, the grant to
UCAB will finance advanced training to allow professors and guest lecturers to continue building
their own technical skills and record lectures for free student access online, in order to identify the
most effective adaptation of courses to online settings given current COVID-19 realities.
PSTU and DAHL UNIVERSITY. ERA has also provided grants for developing modern engineering
skills of young people in Donetsk and Luhansk Oblasts to Pryazovskyi State Technical University
(PSTU) and Volodymyr Dahl East Ukrainian University (Dahl University). In September 2020 ERA
finalized procurement and delivery processes for both grants, supporting grantees’ activities on
21 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
enhancing the pool of partner companies and analyzing the curricula for further modernization in
accordance with renewed technical infrastructure and employers’ demands. In the framework of the
current grant PSTU has developed a scientific-based collaboration with Magma, a Mariupol-based
manufacturing enterprise and an active, ERA I4M team partner, whereby a PTSU PhD student
employed by Magma is conducting a specialized study on the equipment that ERA has provided for
the newly created Laboratory of Microelectronics and Robotics. Such research and development
(R&D) cooperation will be a starting point for linkages between the University and local employers,
while building a foundation of R&D that ensures better sustainability of ERA’s strategic interventions.
Volodymyr Dahl East Ukrainian University is the only technical higher educational institution in
Luhansk Oblast. Although its engineering majors used to be very popular among companies in the
region, the university’s technical capacity was lost due to the conflict and displacement from Luhansk
city. Through ERA grant support, the University is creating two modern computer laboratories for
chemical and mechanical engineering aimed at delivering modern, upgraded resources and training
potential.
It is important to underline that ERA’s grant for Dahl University is strongly attached to close
cooperation with big regional employers. Currently engineers of Khimproekt, one of the most active
engineering companies in Luhansk Oblast, have developed educational models based on the use of
simulators in University labs, strengthening the University’s capability to offer up-to-date knowledge
and skills to students and advanced training for teachers. Khimproekt is sharing its software with the
University to make the training process efficient and practical.
INNOVATIVE ECOSYSTEM. During 2019–2020 ERA continued promoting innovative
development and startup entrepreneurial activities in the targeted universities of Donetsk and
Luhansk Oblasts under a grant to Sikorsky Challenge LLC, launched in August 2020. The Sikorsky
Challenge grant will help build a university-based innovation and entrepreneurship ecosystem within
eastern Ukraine at the four universities mentioned above (DonNTU, LNAU, Dahl University and
PSTU) along with the Donbas State Engineering Academy. Together with the universities, ERA has
begun to form another type of innovation ecosystem—enhancement of a network of innovative
STEM (science, technology, engineering, and mathematics) education centers for teenagers. In May
COVID-19 RAPID RESPONSE. In accordance with the USAID approved ERA COVID-19 Rapid
Response workplan, in August ERA issued grants for equipment and software to be used for distance
learning to five ERA partner universities: Berdiansk State Pedagogical University (BSPU), Dahl
University, DonNTU, LNAU and TSATU. These grants are aimed at strengthening the organizational
and technical capacity of the five ERA partner educational establishments to maintain high-quality
distance learning for current and future students. The five universities are ready to expand the
variety of educational services offered through distance learning as soon as they get ERA’s technical
support in using new resources and adapting content to a distance online setting. All five grants will
help the universities adapt to the challenges posed by the COVID-19 epidemic and the related
economic crisis.
DUAL EDUCATION. In line with introduction of the dual education approach to partner
universities and in response to the Ministry of Education and Science of Ukraine (MoES) order dated
October 15, 2019, ERA supported all partner universities on the MoES’ list of pilot institutions, and
2020 ERA provided a grant to an experienced and well-known educational entrepreneur to equip
and furnish an existing STEM center in Vuhledar and set up two new centers in Kurakhove andVolnovakha. Focusing on STEM and robotics these centers will help to form teenagers' engineeringmindset and consequently encourage high school graduates to enter the technical universitieslocated in their regions.
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 22
provided consulting to a universities-companies working group and organized the DUAL-O Forum in
February 2020.
More than 70 representatives of different institutions took part in the DUAL-O Forum, including 12
private companies, the Friedrich Ebert Foundation, MoES, the state employment service and
institutions for scientific-methodological support for vocational education training (VET). At two
sessions during the event, universities and VET schools described their plans for dual education
implementation in the Ukrainian context—approaches, experiences, and achievements. All ERA
partner universities have applied a dual education approach in their educational processes,
monitored the activities, and presented their results in the MoES dedicated report. DonNTU’s dual
education model is considered an ideal example, and the model of PSTU was presented as a
separate case study.
During the implementation period (October 2019–May 2020) 71 students from ERA partner
universities applied to the MoES pilot project and 47 successfully finished the pilot project,
combining the status and responsibilities of a student but also as an officially employed worker.
Because of these activities, ERA partner universities started collaboration and signed agreements
with several regional companies: Zorya LLC, Chemical Technology PJSC, AZOVSTAL PJSC
Metallurgical Plant, Metinvest-Promservice LLC, Sievierodonetsk ORGCHEM LLC, RIZIKON PJSC
NCVR, and big and small agrarian companies. As the GoU goal of applying the dual education
approach is to find the most appropriate model(s) that will ensure better practice-based training for
students and provide opportunities for companies to mitigate the workforce shortage, by December
2023 MoES anticipates having up to 10% of university and 60% of VET students to be successfully
involved in dual education programs.
VEI AND LYCEUMS. During Year 2, ERA provided support to five vocational education institutions
(VEIs or lyceums) from Donetsk and Luhansk Oblasts under ERA-RFA-001 “Strengthening technical
capacity of vocational educational institutions in Donetsk and Luhansk Oblasts.” By the end of
September 2020, Kramatorsk Center for Technical and Vocational Education, Kurakhove Vocational
Lyceum and Velykonovosilkivskyi Vocational Lyceum have received all equipment envisaged under
their grants, and Mariupol Vocational Lyceum of Motor Transport will complete delivery in early
October 2020.
23 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
The grant for Lysychansk Higher Vocational School
#94—the sixth planned VEI—is under development
since repair works to the premises were requested
and needed before ERA could proceed with the
grant. ERA’s Infrastructure team has made an
assessment and prioritized the grant in Year 3. The
VEI staff and students will benefit from such a joint
cross-team approach in equipping the school’s
workshop.
The national quarantine imposed by the GoU had significant implications for grants to lyceums since
usual classes, including practical workshops, were suspended and students had to study online from
their homes without any opportunity to use the modern equipment provided by ERA. Thus,
discontinuation of studies after winter break 2020 was the main impediment to full implementation
of the grants and achieving the planned performance indicators for their performance periods.
However, the ERA technical team will continue working with the respective lyceums and the ERA
MEL team will keep monitoring progress during the 2020–2021 academic year. In September 2020,
the lyceums informed ERA of the start of the regular (i.e., offline) school year, meaning that students
will be physically able to use the equipment for better practical education. The results of equipment
usage will be reported throughout Year 3.
GROWTH
The common theme in Year 2 across Growth sector interventions was market expansion to
compensate for traditional markets lost due to shocks including the armed conflict and COVID-19.
This was accomplished through targeted consulting and some of the first Growth grants awarded,
though significant grant interventions will begin in Year 3. In the Vegetable and Fruit Growth sector,
ERA’s intensive partnership with the pathfinder farmers of the Ovochi Stanychnykiv cooperative led
to new client relations including one with the largest regional supermarket chain, Simya, which
heavily incorporated the Stanychnykiv cooperative into its supply chain. Another Growth grantee,
the Sady Donbasu enterprise, thanks to ERA support was able to participate in trade expos in Berlin
and Dubai in February 2020, which lead to an arranged pilot export sale of apples to the promising
markets of the Gulf States.
The Innovations for Manufacturing sector team focused its efforts on organizing the ambitious
Roland Berger business strategy training, which was delayed until the end of Year 2 by COVID-19
(as the original approach proposed by Roland Berger was an in-person intensive training). ERA
activated individual online consultations for partner companies with the goal of increasing clients in
the agricultural sector and developing brand identity.
In the biofuels sector, ERA identified eight model organizations for stimulating the market for
biofuels in rural communities that will be rolled out as grants in Year 3. In the Azov Sea region, the
Tourism team initiated a series of trainings on new tourism product development that should help
attract new categories of customers, while also setting the stage for development of the unified Azov
regional tourism brand. In the IT Sector, ERA began forming industry clusters in Mariupol,
Kramatorsk and Luhansk Oblast that will be the primary movers of IT development in the east.
In the honey sector, where access to the global market remains strong, ERA focused on improving
technical and business knowledge among small beekeepers and increasing their access to inputs so
that they can grow their apiaries to a more sustainable scale. The “Increasing Access to Inputs for
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 24
Beekeeping SMEs In Luhansk, Donetsk And Zaporizhzhia Oblasts” program designed in Year 2 will
be rolled out in Year 3. Finally, in response to COVID-19, ERA is helping small agricultural
producers improve their branding and enter online sales to reach middle class consumers.
Consultancies were initiated with companies in the produce delivery, meat and milk processing and
specialty fruit sectors to improve online sales. Details for each of the mentioned key achievements
are provided below.
MARKET EXPANSION
HONEY GROWTH SECTOR
Throughout Year 2, namely September 25, 2019–February 15, 2020, the honey sector team
conducted the multi-component Professional Beekeeper course for 72 beekeepers from Luhansk
and Donetsk Oblasts. This training served as a bridge to cover the gap in professional education for
adult beekeepers who cannot spend years studying at formal educational institutions. The intensive
pace and condensed curriculum gave all necessary information over the course of five weekend
training sessions and was aimed at enabling beekeepers to scale up production, introduce new
products with higher added value, and reach new markets. After the first beekeepers' group
graduated in mid-2020 the curriculum was adjusted based on the feedback of trainers from Hadyach
Agrarian Lyceum, ERA experts, and trainees themselves.
As a further development of this initiative
and way to achieve sustainability, ERA
organized a training of trainers (ToT) on
June 15–August 7, 2020. Newly prepared
trainers were selected from agrarian
professional college and university (LNAU)
teachers, state officials in relevant bodies
and services, and champion beekeepers. This
pool of new trainers should bring positive
changes on the institutional level, promoting
beekeeping education in educational
institutions and advocating for changes in governmental policies and approaches to the sector, and
should also inform beekeepers about new best practices in modern apiary business. In Year 3, ERA
plans to engage the trainers with further training on professional beekeeping to build the capacity of
smallholder beekeepers and foster development of the sector in ERA target regions. Thirty-one
participants have passed the ToT and are now certified trainers who will provide training and
consulting to beekeepers living in the region.
The knowledge received from the trainings should provide a path for smallholder apiaries to build a
more resilient business that is able to better sustain turbulence within local and international honey
markets. A specific case of an IDP could serve as an example of the training’s impact. The IDP movedwith his family from Luhansk city to Spivakivka village, Novoaidar Raion. After he graduated fromthe training, he and his neighbors created a cooperative that serves as a honey aggregator and allowssmall beekeepers to form large honey batches and deal directly with honey exporters, avoiding a middleman. It ensures better prices and more reliable customer relations for the beekeepers.During the training, the IDP learned about royal jelly as one of the added value products that can beproduced by apiaries. This season he tested this idea and produced his first batches of royal jelly;next year he plans to offer it as a niche value-added product at local open-air markets and online.
25 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
Beekeepers name bee mortality from pesticide poisoning as the biggest threat that could potentially
destroy their business and lead to lengthy lawsuits with farmers. NGO Grand Expert created an
online platform as a communication tool for beekeepers and crop farmers that allows beekeepers to
keep informed in real time about planned crop treatment and advise beekeepers of the use of
pesticides and plant protection products nearby, as well as the presence of honey plants. After
receiving a grant from ERA on October 15, 2019, the NGO introduced and positioned the Grand
Expert platform as a convenient and accessible tool to improve interaction between beekeepers and
farmers and allow beekeeping and crop procedures to safely interact and operate in the same area.
The grantee selected two pilot raions in Donetsk Oblast and two in Luhansk Oblast for the first
stage of platform promotion. Due to quarantine restrictions and in response to recommendations
from the ERA technical and MEL teams, Grand Expert has gradually adjusted its approach to
consultation with beneficiaries by shifting from on-site training designed for larger groups to a
combination of online training and direct one-to-one consultation sessions. The grantee reports that
in total, 459 beekeepers and farmers received training (215 via individual consulting provided from
April 16, 2020), and 340 have registered on the platform. In the season to follow, Grand Expert and
ERA will analyze how actively beekeepers and farmers have been using the platform for mutual
coordination and what cumulative results the platform’s wide promotion has brought to its users.
INNOVATIONS FOR MANUFACTURING (I4M)
Roland Berger, an international strategic consulting firm with extensive expertise in manufacturing,
has been leading an intensive business strategy workshop for top management of ERA partner
companies that was originally planned and organized for mid-March 2020 in Kyiv. Due to the
deteriorating COVID-19 outlook in Ukraine, it became clear that the only realistic way to conduct
the workshop was online. Roland Berger and ERA renegotiated the subcontract in August 2020 to
account for the new remote implementation realities, and the initial offline workshop was converted
into seven half-day workshop sessions starting on September 8, 2020. As an unexpected bonus, the
updated format allowed extra participants from ERA target regions to be invited. The Roland Berger
workshop relaunched strategic cooperation with 16 selected manufacturing companies from Luhansk
and Donetsk Oblasts.
I4M partner companies representing machine-building, pharmaceutical, FMCG, chemical and
construction industries—totaling 80 participants with local consultants—eagerly participated in the
workshop, not least since this is just the first stage of ERA’s integrated approach to cooperation and
business development. After the workshop, the companies started designing their individual
development strategies with the support of Roland Berger consultants. The full cooperation cycle
consists of consequent presentation and defense of each company strategy before a panel consisting
of Roland Berger representatives and ERA specialists to choose the candidates for co-creation of full
grant applications. It is expected that most of these companies will demonstrate organizational
capacity improvement. Once the current pilot cooperation cycle is finished and the potential
grantees selected, the I4M team will onboard the second round of companies for similar
cooperation.
The importance of professional branding has been underestimated by local businesses. Companies
located in Donetsk and Luhansk Oblasts have an image problem due to the risk profile of the region,
and boosting the positive business image of firms in the region has been a part of ERA’s integrated
approach to business development, branding and marketing is key to placing the local companies
strategically in a better position to deal with existing and potential partners. Without a modern and
attractive “face,” their appeal is often insignificant or overlooked by investors or clients. During
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 26
June–August 2020 ERA provided branding consulting services to Kramtechcenter, a Kramatorsk-
based machine-building plant. An ERA consultant designed a fully-fledged brand book in close
cooperation with the beneficiary’s top management. This intervention included multiple elements of
modern brand and corporate visual identity with a company logo, brand positioning concept, website
concept, branded office building exterior and interior, and corporate uniforms and clothing. The
factory has already updated its Facebook page and produced branded T-shirts with ERA-supported
branding, while site modernization and construction of a branded factory entry zone is ongoing.
Kramtechcenter plans to gradually incorporate all branding elements into its activities and products.
A good example of a small company that has closely
cooperated with an ERA consultant to crystallize its
strategy and streamline business processes is PE
Nimanikhina, a sewing company based in Ukrainsk. This
intervention resulted in a significant extension of the
company’s professional network in other regions of
Ukraine, expanding its clothing range in accordance with
market demand, enhancing its network with clothing
designers, modern rebranding which will increase
anticipated sales by 10%.
By further assisting customer base diversification for its beneficiary companies, ERA identified a
promising potential partner for Mariupol-based heavy-manufacturer Magma: Agroprosperis, one of
the leading Ukrainian agricultural exporters, owned by US investment funds. ERA specialists
connected Magma with Agroprosperis’ top management and ensured initial contact. The companies
held several working meetings online and offline and located potential venues for cooperation.
IT GROWTH SECTOR
YOUTH-DRIVEN IT. The IT incubation program implemented by ERA grantee NGO Social Boost
through the platform of the 1991 Mariupol center aims to encourage local youth to experiment with
ideas for new IT products and grow beneficiary’s ideas into mature startups.
1991 Mariupol startup development
center, the first center in the city and
Donetsk region with the goal to
become a magnet for creative youth
and tech business, opened on October
29, 2019. During its first year of
operation, the center offered the
following free educational programs:
Startup Workout, a six-week intensive
course for creating and developing
startup ideas which attracted 28 participants; the Internship Program for entry-level specialists in
JavaScript, IT marketing and product management with 33 participants and 11 graduates later
employed by local companies; and the Startup Incubation Program aimed at developing startup
projects and successfully presenting the first minimum viable product (MVP) to investors, where so
far two out of eight startup presenters have managed to attract their first seed investments.
In Year 2, 1991 Mariupol hosted 102 open educational events attended by 3000 visitors; 48 of them
were viewed online by 8000 viewers. By December 2020, the center plans to complete two Startup
27 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
Course programs and a second incubation program for potential startups, and hold two Demo Days
for startup presentations, the largest of which will be held as part of the Priazov Valley Invest Forum.
Besides teaching, the center's team initiates open educational events and competitions such as
Design Battle South Coast on July 31, 2020, a national competition in which 70 graphic designers
from 17 cities of Ukraine took part.
When ERA initiated its partnership with Social Boost, its expected output was for 1991 Mariupol to
become a real driver in the local IT ecosystem, which it has established over the course of the last
year. Thanks to USAID’s support the center constantly promotes the IT industry in the city and
unites IT entrepreneurs, developers, designers, managers, and other digital specialists on its site.
Mariupol IT companies see fresh perspectives, and new informal groups of would-be IT
entrepreneurs trying to come up with marketable products that are constantly being established,
some of whom are planning to join the existing Mariupol IT cluster created by ERA in 2019.
One of the successful stories that happened in 1991 Mariupol is local IT company MakeBeCool.
high-quality recommendations from the best Ukrainian mentors and experienced IT entrepreneurs.
largest venture capital funds in Ukraine for further negotiations. A private investor also showed
company now has significant potential to grow into a large product company with a portfolio of e-
commerce products: the team now employs five people, while still participating in the incubation
program.
Another successful case is participation in the incubation program of an Estonian team looking for an
opportunity to create their own product development team in Ukraine and launch their startup in
cities with a low representation of effective construction firms. Their product idea, where one can
prototype a home design in just 10 minutes in a mobile application, solves problems of modern
construction. The implementation of such a complex project could take years, but within the
incubation program the Estonian innovators were able to craft a strategy to minimize their risks and
time resources. The software is expected to be partly running by November 2020. At the moment,
the Estonian team has attracted five Mariupol-based specialists and has plans to expand its staff in
Mariupol in the coming year. Without the 1991 Mariupol Start-up Incubation Program, the Estonian
team would not have considered Mariupol (or southeast Ukraine) for their start-up venture.
IT CLUSTERS. With ERA support, representatives of the IT sector have established two clusters in
Kramatorsk to implement joint projects to develop the IT community of Donetsk region and form a
common vision for development of the IT industry in eastern Ukraine. The creation of the clusters
took place under rather difficult conditions during the onset of the COVID-19 pandemic. The ERA
IT Sector Lead incentivized and moderated nine online meetings and videoconferences with more
than 20 local IT companies to form a common vision of each cluster and find joint motivation for its
participants to be united in a formal organizational clustering. Travel restrictions forced potential
cluster members to search for safe and stable communication means. Telegram channels where the
participants could communicate interactively became a fast and innovative solution, which still plays
an essential role in real-time information exchange in the clusters as of the end of the reporting
period.
The company’s founder came to the incubation program to launch his IT product for ane-commerce market. In the program, the founder was able to make the first sales of his product,prepare documents for venture investors, understand his potential consumers, and receive
On July 16, 2020, the founder presented his idea to investors, after which he was invited to one of the
interest in the product and invested $20,000, which allowed his team to bring the product to
new markets and complete all necessary functionality of the site for end consumers. The
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 28
SEA OF AZOV TOURISM GROWTH SECTOR
Over the course of Year 2 ERA provided training on tourism product development in Mariupol,
Berdiansk, Kyrylivka, Melitopol and Henichesk, covering all major resorts in the Azov region. A total
of 105 participants from the hospitality business, restaurants, travel agencies, local authorities and
community activists developed new products and offered them to customers in the fall of 2020 to
extend the tourism season and attract new clients. The products were built around unique features
and attractions of the resorts, example products included a Yoga Weekend with a tour in the
Pryazovskyi National Park with yoga practice in pristine nature; or a Mariupol Epochs weekend tour
which visits legendary industrial giants, the sea port and Meotyda National Park; conference services
in Kyrylivka with meals and accommodation, excursions, photo sessions and conference services; or
a Wellness tour to Berdiansk with medical and spa procedures designed for couples who plan to
conceive.
To supplement the aforementioned training, 134 people representing local hotel and restaurant
businesses, museums, national minorities, artists and local authorities received tools and targeted
one-to-one TA on how to turn cultural heritage assets into compelling and commercially successful
tourism products. The new cultural products developed will be offered in the upcoming tourism
season, attracting unconventional tourists, and changing perception of the Azov region as exclusively
a sea, sand and sun destination.
ERA’s efforts to unite businesses and
resorts in one tourism destination yielded
the first results when after the training in
Henichesk on June 24, 2020, local
businesses and authorities registered the
Hospitality Association of Henichesk Raion
on July 29. The association will focus on
increasing the level of service quality,
renovating tourism infrastructure, and
creating a strategy for local community development. In addition, the association plans to establish a
fund for development of the resort's infrastructure, which will be sustainably financed through locally
levied tourism fees.
Another ERA initiative in promotion of the Azov region as a desirable tourism destination was the
launch of the Azov.Travel portal that displays promotional materials to advertise local tourist events
and covers developments in the regional tourism sector.
A professor who is a well-known expert in cluster formation was invited as a special guest to oneof the videoconferences and persuaded the IT firm representatives to join forces to make the ITindustry even stronger. The East-Ukrainian Technocluster was formalized and registered by ninemembers as a legal association on September 3, 2020, with plans to launch social projects in medicalservices, software solutions using artificial intelligence for utility service providers, the IT-Sandboxecosystem educational project, a startup incubator in Kramatorsk and the creation of a regionaltechnology park for the IT-community. The second cluster, IT Donetchyna Cluster, was registeredon September 16, 2020, uniting three IT companies and is now at the stage of signing an MoU withERA. The third cluster in ERA’s area of operation was registered in Mariupol in August 2019 duringthe last reporting period by ten local enterprises and continues to cooperate with ERA and the 1991Mariupol activity, described above, which has become a center of gravity for the IT sector in that city.
29 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
As contribution to tourism sector diversification, ERA’s Workforce Development team has
completed an assessment of the current hospitality curriculum and industry training needs in the
hospitality sector. The assessment included a series of focus groups, key informant interviews and
online meetings and interviews with tourism sector actors, educational institutions, enterprises, and
local governments. This assessment will connect with ERA’s effort to align educational institutions’
offerings with the demands of tourism employers. The interviews and survey findings will be
summarized in a dedicated report to be presented to USAID in November 2020 (FY2021 Q1) with
recommendations and proposed activities that are planned for implementation in ERA’s remaining
years.
VEGETABLES GROWTH SECTOR
Sady Donbasu, one of the biggest apple orchard farms in eastern Ukraine, was inspired by successful
export deals to Qatar after an ERA-sponsored participation in international trade fairs in Dubai, and
as a result went through a Global GAP (Good Agricultural Practices) audit. ERA has been helping the
company since early 2020 by providing advice and technical expertise on how to attain this
important international certification which guarantees product safety for consumers and must be
obtained by a company wanting to export fresh fruit and vegetables to European Union countries.
Sady Donbasu has been preparing its business for the past three years to receive the certificate by
rebuilding business processes and upgrading requirements for agro-technological processing,
accounting, storage, and environmental standards. The certificate will strengthen the export position
of Sady Donbasu and help the company strategically achieve international market access.
In order to continue to support this partnership with Sady Donbasu, ERA plans to issue a grant to
Sady Donbasu in year 3, along with supporting another leading east- Ukraine orchard farm,
Perspecktyva, growing apples and cherries through an ERA grant. These two grant proposal scope,
which are currently under development at the close of this reporting period, could meet ERA’s
maximum threshold limit in funding; therefore, ERA is working with these proposed organizations to
develop investment business plans. This business planning has helped the companies to better
undertake the risks of implementation in uncertain realities. Both companies plan to invest grant
funds to improve sorting, storing, and packaging of fresh products, which would enable these firms
to enter into new lucrative markets with higher added value products. These two firms are also
looking into improvements into year-round storage which will also allow them to organize
shipments of fresh apples and cherries throughout the year covering the winter and spring season
when supply is limited but prices are high.
Over year 2, ERA’s substantial technical consulting and grant assistance helped Ovochi Stanychnykiv,
an agro-cooperative to expand its market and increase sales. This season was turbulent in terms of
demand and prices for horticultural products with marketplaces’ temporarily shutdown and the
restricted operation of the HoReCa (hospitality, restaurant, catering) sector. This changed
traditional trade patterns for the cooperative and the market in general, prompting Ovochi
Stanychnykiv to quickly adapt. With ERA’s aid the cooperative amended production and
administrative practices that in turn made them an attractive partner for wholesale buyers for the
largest local and national retail chains in Luhansk Oblast, Kyiv and Kharkiv. The cooperative
calculates that it managed to produce and sell up to 400 tons of fresh tomatoes including 64 tons of
niche cherry tomatoes, andaccording to the cooperative’s internal estimates, it is a 10% sales
increase compared to the previous year. The map below depicts the new markets Ovochi
Stanychnykiv is selling to as of the end of September 2020.
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 30
Figure 1. OVOCHI STANYCHNYKIV COOPERATIVE: MARKETS EXPANSION
In terms of MSME COVID-19 Rapid Response, ERA organized two Local Farmer Festivals, in
Berdiansk on August 22–23, 2020 and Mariupol on September 19–20, 2020. The main goals of the
two events were to promote farm products among potential consumers, establish communication
channels between sellers and buyers through online sales, open new sales channels for farm
products and attract clients who have recently shifted to supermarkets as safer places than
traditional open-air marketplaces. Almost 50 representatives from Luhansk, Donetsk, Zaporizhzhia
and Dnipropetrovsk Oblasts participated in each event. The festivals, held in strict compliance with
the quarantine standards of the World Health Organization (WHO) and the Ministry of Health of
Ukraine, were styled as rural fairs with gastro shows, masterclasses and open-air film screenings in
the evening.
The main goals of the festivals were fully achieved. Rough visual estimates indicate that the two
festivals (over four days) were attended by many thousands of visitors; and feedback sessions
facilitated by ERA Local Produce Realization Specialist revealed that the total revenue of therepresentatives was about UAH 3.2 million for Berdiansk and around UAH 5 million for Mariupol;both festivals provided an opportunity for producers to reach preliminary agreements on cooperation,and some began to receive orders through social networks. The feedback collected by ERA specialists
shows that these two events made a positiveimpression on local authorities and had a "woweffect" on participating farmers. Both authoritiesand farmers expressed interest in holding suchfestivals regularly if COVID-19 restrictions permit.ERA plans to organize four similar events in 2021on national and/or religious holidays, withsubsequent transfer of event owenership to localauthorities and the local business community.
31 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
INVESTMENT ACCELERATION FOR MSMES
ACCESS TO FINANCE (A2F)
In Year 2, ERA used multiple approaches to stimulate lending to micro and small businesses.
Previously, lending to micro businesses was hampered by several factors, such as high interest rates,
unachievable collateral requirements and complicated bank procedures. To help overcome these
obstacles, the team started cooperation with local credit unions and the Western NIS Enterprise
Fund (WNISEF). Also, ERA supported promotion of the 5-7-9% government program of subsidized
lending by supporting public presentations of the program on March 11, 2020 and a subsequent road
show conducted on August 11–22, 2020 in ten towns of Luhansk and Donetsk Oblasts.
In April 2020, ERA signed a grant agreement with the Ukrainian United Credit Union (UUCU) with
the purpose of offering micro-farms, beekeepers and micro-tourism businesses loans at rates lower
than those in banks. UUCU, as a financial company, can transfer the financial resources of the grant
on a repayable basis to local credit unions lending to MSMEs. In total, six local credit unions operate
in Donetsk, Luhansk and south Zaporizhzhia Oblasts. At the time of reporting, four out of 38
planned loans have been issued, primarily in Markivka Raion of Luhansk Oblast. The average size of
one loan is UAH 80,000, and the total amount of loans granted in Year 2 is UAH 230,000. In close
collaboration with USAID’s Credit for Agricultural Producers (CAP) program, which will take over
the activity’s longer-term monitoring, this activity will continue to run into ERA’s third year.
In June 2020, ERA signed a contract with WNISEF aimed at creating a Ukrainian legal entity owned
and operated by WNISEF. The statutory activity of this enterprise should be to provide guarantees
to Ukrainian banks for loans taken by local companies. Thus, a unique financial service has appeared
on the market for the first time—a loan guarantee fund for enterprises that meet the operational
and financial criteria agreed with ERA. The key selection criterion for an MSME to receive WNISEF’s
loan guarantee is its additional social obligations under corporate social responsibility (CSR), wherein
part of the borrower’s profit is redistributed to socially important projects. The fund will use the
income from the contract with ERA to provide loan guarantees as well. A competition for CSR
credit projects was announced in August 2020 and three credit projects are currently under
consideration.
One of the obstacles MSMEs usually face in accessing finance is lack of knowledge on preparing
business plans and financial statements in accordance with bank requirements. To overcome this
challenge, ERA initiated a consulting service focused on attracting investments and bank loans to
micro, small and medium-sized businesses. Hired consultants will search for and advise companies on
available loan opportunities and create business plans with all required financial documentation to be
submitted for receiving a loan in local banks. A loan application is considered successful only if the
client company receives real financing from a bank. At the time of reporting, ERA consultants have
helped selected enterprises to prepare and submit six applications to various banks. Four clients—
three medium businesses from the agricultural sector and one micro enterprise from the
manufacturing sector—have signed loan agreements; three borrowers will use the loan resources to
procure machinery and the micro-sized client will buy wood processing equipment.
In February 2020, the GoU launched a concessional lending program for MSMEs called 5-7-9%, to
subsidize interest rates and, in turn, spur more business investment spending throughout the
country. Four state-owned banks initially took part in the program, providing an example for the18
non-state banks which joined the program throughout the remainder of the year. In March 2020,
ERA held a large presentation of this program in Kramatorsk with speakers from the Ministry of
Economy of Ukraine and representatives of participating banks. However, after the start of the
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 32
program, Luhansk and Donetsk Oblasts lagged
behind all other Ukrainian regions in terms of the
number of loans issued and their total amount. Key
obstacles to this delay were complex bureaucratic
procedures in state banks, an unstable economic
situation for micro, small and medium-sized
businesses including COVID-19 quarantine,
consequent pessimistic expectations of MSMEs that
limit the desire to invest in business expansion, and
lack of business ideas for new goods and services
to be offered in small towns.
In June 2020, the GoU program underwent modifications that expanded opportunities for MSMEs: 1)
the program began to finance not only the acquisition of assets, but also made it possible to finance
working capital; 2) the allowed size of a possible loan increased from UAH 2 million to UAH 5
million. To advertise the new possibilities of the program, ERA organized ten presentations in small
towns of target regions. As a result of these working meetings, ERA A2F specialists proposed an
experimental PR campaign for the 5-7-9% program within Kreminna raion, to be launched in
November 2020. In case the number of requests and applications from local businesses increases,
the pilot will be scaled up through the whole region.
INVESTMENTS
In Year 2 ERA incentivized several long-term interventions to accelerate investments for MSMEs by
triggering the long-term cycle of investment acceleration with a set of diverse approaches. One such
approach that will be piloted by ERA in year 3 is that of contracting Transaction Advisory Services
that will match the most competitive SMEs with available capital providers under the powerful
support of professional transaction advisors (intermediaries) within18 months. On September 30,
2020 ERA completed the procurement process and signed a subcontract with Soul Partners LLC, an
investment banking company that will facilitate market-driven investments to eastern Ukrainian SMEs
within the next 18 months. Currently ERA is about to finalize tender procedures with another major
transaction advisory service providers that will enable investments to businesses operating in ERA
target regions. The implementation of these two subcontracts will help four SMEs to raise at least
USD 4.5 million, which will advance ERA’s investment pipeline development.
ERA started discussions with Gazelle Finance regarding market entry into Ukraine and the model of
cooperation that will suit all parties involved. It’s a positive sign that a successful investment fund like
Gazelle Finance is looking to start operations in Ukraine and ERA can facilitate that interest. In Year
3 ERA plans to formalize the discussions and develop an action plan for joint activities if tentative
negotiations have positive outcomes.
Following the release of an RFP in August 2020 for the development of an investment portal for
Donetsk Oblast State Administration (DOSA), ERA received several responses from potential
vendors and began the procurement process to be completed in the beginning of Year 3. The team
expects the official public portal launch to be in four to five months. Also, as a future breakthrough
in industrial park development in the region among businesses and local authorities, on September 1,
2020 ERA awarded a grant to NGO GoLocal to implement the project “Fostering best practices in
Industrial Park and Industrial Real Estate Development in Eastern Ukraine.” The results of grant
implementation will be reported in future quarterly reports.
33 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
As with other teams, ERA A2F interventions also addressed unanticipated challenges as a result of
COVID-19’s impact on the local economy. Since MSMEs in Ukraine traditionally have lower
resilience compared to big corporate actors, ERA supported MSMEs by providing targeted
consulting within one of ERA COVID-19 Rapid Response plan's key directions. The consultations are
offered by individual consultants with proven expertise in one or several of the ten fields prioritized
by ERA: Business Diagnostics, Strategy Development, Operational Development, Investment
Consulting, Accounting and Finance, Human Resources, Marketing and Sales, Production and Value
Chains, Certification and Quality, and Energy Efficiency. Selection of both consultants and COVID-
affected MSMEs was performed via an online application procedure. By September 30, 2020 this
long-term initiative resulted in 40 onboarded consultants and five MSME requests. In Year 3 the
consultancy is anticipated to grow significantly which will increase the number of successful business
consultancy projects.
TRANSFORMATION
Throughout Year 2, the ERA Transformation team successfully completed development of four
strategies for cities and consolidated communities in Donetsk and Luhansk Oblasts, and the Luhansk
Oblast Development Strategy. The strategies helped ERA partner cities and LOSA to effectively use
available resources for local development and set priorities and goals for the long term, as well as
make efficient decisions on financial resource allocation and attract financing for implementation of
important projects that will increase economic growth and general well-being within these locations.
Based on the strategies, the ERA partner cities have selected the highest priority infrastructure
projects for potential implementation with ERA support. All these projects were reviewed and
evaluated by the Transformation and Infrastructure teams. As a result, the most economically
impactful projects were selected for further consideration with ERA support. The projects are
described below in the corresponding sections.
During the year, the Transformation team
worked on improving the capacity of officials,
providing training and expert consulting, and
increasing municipality leader’s ability to
attract funding for project implementation
from different national and international
sources. In addition, in Year 2 the
Transformation team supported development
of Mariupol’s Strategic Economic
Development Plan 2021–2030 and the
common Transformation Strategy for seven
coal cities in Donetsk Oblast, which will be tools for positive transformation. The Transformation
team continued close coordination with all partner cities and communities during the quarantine
period, researched and assessed the rapidly changing local economic situations and the local
response to the COVID-19 pandemic, and helped them to review development strategies and adapt
to existing conditions.
The Transformation team held a significant number of offline and online meetings, trainings and
events which allowed the creation of local and regional coalitions, established new linkages and
partnerships, and improved coordination and communication between partners and stakeholders. A
detailed description is provided below by subregions.
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 34
DRIVING VISION
SUPPORT “BIG PICTURE” EVENTS TO PROMOTE THE EAST REGION
On October 29, 2019 ERA co-sponsored the landmark Mariupol Investment Forum (MIF), attended
by Ukrainian President Volodymyr Zelenskyi, Prime Minister Oleksii Honcharuk, US Chargé
investors. The event was important for contributing to the improvement of Eastern Ukraine’s image,
opening prospects for new foreign and domestic investments and reviving public interest in current
business opportunities in the region. During the forum, participants collectively signed 12
memoranda of understanding (MoU) or cooperation for one billion USD in investments. Four mobile
communications operators signed an agreement to ensure 4G broadband cellular network coverage
providing fast-speed mobile web access across 90% of Ukraine’s vast territory. The Big Infrastructure
project section of this report above contains a description of ERA's cooperation with Ukrzaliznytsia
in restoring the railway infrastructure of Luhansk Oblast which was incentivized during the forum.
This high-tech event, was executed effectively with keen attention to logistic details and the inclusion
of media through public relations arrangements involving the presence of journalists from over 200
media outlets including Bloomberg, Voice of America and the Wall Street Journal, impressed both
Ukrainian and international attendees. Those who attended or were reached via media publications
(over 20 million people) were influenced to perceive Eastern Ukraine less as a zone of conflict and
more as one representing economic opportunities.
In the run up to the Mariupol Youth Forum, the Ukrainian Leadership Academy (ULA), ERA’s
grantee, in cooperation with the Mariupol City Council, the GoU, and Ukrzaliznytsia, transformed
the outside of an 11-car train with the «СХІД Можливостей / DAWN of Opportunity» logo and
ULA branding. The train transported 500 young leaders representing all 24 Oblasts of Ukraine from
the DAWN of Opportunitys concept with young participants willing to contribute their own
creativity, time and knowledge to develop a vision for Ukraine 2030 that will help the region flourish
and become a thriving place to live and work.
The Mariupol Youth Forum received national attention and ended with the Mariupol Investment
Forum. In the following months two Youth Forum participants joined work on the Mariupol 2030
strategy. About twenty local youth participants of the forum took part in events organized by ULA
Mariupol and joined projects in the city as active volunteers.
Development (EBRD), and many other financial institutions and big foreign investors. The event was
d’Affaires (CdA), USAID Mission Director, Ukraine ministers, top management of theInternational Finance Corporation, World Bank, European Bank for Reconstruction and
Kyiv to Mariupol. The CdA, along with other high-profile participants, attended the train’s highlypublicized send-off. ERA designed sweatshirts, bags and notebooks for the forum and shared
35 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
The forum was the impetus for the Night City Mariupol project to create a VR (Virtual Reality)
museum for youth in Mariupol implemented by ULA activists. As they were in different cities
because of quarantine, the project team decided to implement the idea through city-lights. In June
2020 city-lights appeared in Mariupol with images of Ukrainian classic writers and QR codes giving
the opportunity to learn more about these cultural figures, thus reaching more residents. The
project’s budget was UAH 43,903, sponsored by the European Union via UNICEF Ukraine.
The forum also helped to strengthen local partnerships in the development of the Mariupol project
Port of Cultures—the first nationwide project creating a multifunctional cultural center with a
modern narrative exhibition of local identity. A year after the forum, ULA’s Leadership Development
Center opened in a building reconstructed in partnership with Mariupol City Council.
LUHANSK GCA
In Year 2 ERA supported development of the Luhansk Oblast Development Strategy 2021–2027, its
implementation plan, and the establishment of Luhansk Regional Coalition. In collaboration with
LOSA and the USAID-funded DG East, PULSE and CEP projects, in November 2019 ERA initiated
and organized the first Luhansk Regional Coalition Forum “From Common Vision to Economic
Growth” in Sievierodonetsk. The forum’s key objective was to establish goals and priorities for the
socio-economic transformation of Luhansk Oblast.
More than 100 individuals participated in
the two-day event, including the
Governor of Luhansk Oblast, members of
the Ukrainian Parliament, representatives
of the public and private sectors and
international organizations. Participants
discussed solutions for proposed
strategic shifts and collaboratively formed
a list of projects to be included into the
Development Strategy of Luhansk Oblast.
The main forum outputs were:
coordination of strategic goals and action plans between the parties involved; general informal
agreement on key growth points for regional development, dissemination of information about the
new vision of the region, and identification of innovation priorities in economic sectors. These
declared outputs led to the implementation of ERA grant "Transformation of Regions Through
Common Smart Solutions" launched to discover unique opportunities of Luhansk and Donetsk
Oblasts in terms of innovative smart specialization in economic development. Recently, the grantee
conducted a kick-off workshop for representatives of both Oblasts who will form local working
groups to coordinate grant implementation.
In February 2020, LOSA officially adopted for implementation the Luhansk Oblast Development
Strategy 2020–2027 and Action Plan 2021–2023. According to the new vision formed by the highly
participatory, broad-based coalition, Luhansk Oblast promotes itself as a post-industrial development
territory with modern, high-tech chemical and agrarian industrial clusters, a developed engineering
sector, and a socially united community with European values and historical traditions. The strategy
of Luhansk Oblast through 2027, as well as the strategies of other regions, will come into force in
2021. Currently, the GoU has obliged all regions to review their strategies in accordance with the
State Strategy for Regional Development, which was approved on August 5, 2020. Therefore, LOSA
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 36
is currently reviewing the strategy compliance to be finalized by February 5, 20201 or within six
months after issuance of the GoU Resolution.
economic transformations, including the experience of Pittsburgh, Pennsylvania. The Transformation
team now uses this study as its guiding document in its approach to transformation in ERA’s five sub-
regions. The team used the Luhansk Regional Coalition Forum’s platform to present the key findings
of the study including successes and drawbacks of each city’s transformation experience, as well as
potential development models and their applicability to cities in eastern Ukraine. As a next step, ERA
translated the study into Ukrainian, received feedback from partner city administrations, and started
utilizing the proposed approach in developing a strategy for Mariupol. The coal cities in Donetsk
Oblast also expressed interest in Pittsburgh’s transformation experience to be adapted to their own
challenges.
NORTHERN DONETSK GCA
ERA started supporting Bakhmut city to develop its strategy back in May 2019. During this process,
the neighboring settlements around Bakhmut decided to join the city and form a consolidated
community (CC). As a flexible response to unexpected circumstances, ERA proposed to elaborate a
Development Strategy for the newly established Bakhmut Consolidated Community, and on April
21, 2020, the strategy was successfully adopted. The Development Strategy has four directions for
development with a three-year Action Plan as a separate document. For 2020 Bakhmut CC
expected to implement 50 projects included in the Action Plan, and as of July 2020, 41 projects are
at different stages of planning and implementation for a total amount of almost UAH 40 million.
CENTRAL DONETSK GCA
ERA facilitated development of Dobropillia CC Development Strategy and its Action Plan, which was
adopted in April 2020 with two directions: “Economic Development and Investment Attraction,”
and “Comfortable and Safe Space for Work and Life and Quality and Available Services”. The
strategy will start functioning after local elections in late October 2020. However, work on its
implementation is ongoing: the community has identified priority projects—the city market and
“Dream Park”—and now ERA’s Infrastructure team is preparing all necessary documents for further
submission to USAID, tentatively in early November.
Similarly, the Economic Development Strategy for the city of Pokrovsk and Action Plan for its
implementation were adopted by a working group and community development leaders. The
Development Strategy is built on three main directions: “Pokrovsk for Investment” (economic
development), “Pokrovsk for People” (infrastructure and leisure), and “Pokrovsk for Ideas” (active
and responsible community). Due to changes in the city’s leadership, the city council has not finalized
the strategy adoption yet. At the same time, the city council is still selecting priority projects to be
implemented under the agreed strategy.
In March 2020, the ERA Transformation team, together with EU4Business and GermanWatch
projects, started work with the Coal Cities Platform, which unites seven municipalities in Donetsk
Oblast: Dobropillia, Myrnohrad, Novohrodivka, Pokrovsk, Selydove, Toretsk and Vuhledar. The
overall purpose of this effort is two-fold: to help strengthen linkages among the cities so that they
can advocate for their needs with a common voice to central government ministries and bodies
(which are making their own plans to close state-owned coal mines); and to help the region develop
Partners4Growth’s lead expert conducted the Model Cities Study to inform the strategy ofERA Transformation Initiatives. The study provides a comparative analysis of regional
37 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
a common plan for a post-coal economy and advocate for the resources needed to implement it.
This is especially important given the anticipation that all remaining state-owned coal mines in the
region will be closed within the next five years.
As a starting point, the partner projects organized a workshop in Kyiv to facilitate close
coordination between the seven municipalities which have formed a partnership with the Oblast
administration, the national government through the Ministry of Regional Development, and the
international development community in Eastern Ukraine to support the coal mining cities of the
region in their economic transformation. During April–July 2020, ERA facilitated online meetings
between the three projects to agree on types of assistance, which resulted in a joint decision to
develop a transformation strategy for the coal cities of Donetsk Oblast, as well as preparation of a
roadmap for strategy development. Consequently, on August 13, 2020 all stakeholders signed a
memorandum. After the first meeting of the working committee in July the process of strategy
development began: ERA’s Transformation team dedicated August–September to data collection and
analysis including surveys of business and community leaders, and official statistics gathering on each
participating city to prepare their profiling.
MARIUPOL
In Year 2 ERA helped Mariupol city council to address their top priority objective—to develop the
Mariupol Development Strategy 2021–2030 for transformation in all spheres of the city’s life for the
next ten years. On January 27, 2020, ERA supported the workshop and Community Coalition Forum
on Mariupol Strategy, where representatives of ERA, DG East and Mariupol city council agreed on
the methodology, external expertise needs and coordination approach.
The methodology includes the creation of working groups on ten main areas of city development.
The strategic development methodology contains five stages: working groups’ workplan approval (1),
data collection including city profiling and two surveys (2), data analysis (3), elaboration of the vision,
mission and goals (4), and development of the strategy’s action plan (5). More than 160 people from
local government, citizens, universities, civil society organizations and businesses joined the working
groups through February–May 2020 and by the end of ERA Year 2 they have managed to achieve
four of the five steps. On September 8, 2020, at the Local Development Forum initiated by Mariupol
city council and supported by DG East and ERA, Mariupol’s Mayor, deputy and two consultants
presented the first results of the working groups, the draft vision and mission. Thirty-seven working
group representatives took part in the forum personally and 1,496 visitors viewed the online
broadcast on the forum’s website. The Mariupol City Council will officially approve the mission and
vision as well as finalize the strategy after local elections in late October.
leadership for the effort, while sharing Pittsburgh’s transformation experience with members of the
Mariupol coalition. Experience of model cities and Pittsburgh’s transformation has served as an
inspiration for the Mariupol community: local leaders are working on adapting and implementing
external experience in the fields of R&D, monetization of scientific research, and expedite startups
ecosystem development. ERA will continue to support this work in Year 3 in the form of an online
conference for Mariupol City Council officials with city leaders from various periods of Pittsburgh’s
transformation. ERA will promote communication between the municipalities and support them if
they wish to establish long-term cooperation, including a formal sister city relationship, if both cities
are interested.
An ERA international consultant who is a native of Pittsburg provided overall technical
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 38
ERA grantee the Ukrainian Leadership Academy has been
active in the work of the strategic planning working group
“Cool Youth”: 24 working group members and students of
local universities developed their ideas into projects, the
best of which will be included in the Mariupol Strategy-2030
and its Action Plan. Three primary sectors of the economy
that could become a priority for the development of the city
over the next ten years, according to the Mariupol youth survey mentioned above, are tourism and
hotel business, information technology, and creative industry. These discoveries will be considered in
the Mariupol strategy planning.
In Year 2 ERA supported Mariupol city council in establishing the Mariupol SME Support and
Development Center and further building its capacity. Establishment of the center was in direct
response to feedback from the SME business community that the city was not doing enough to
support SMEs in the community. With the assistance of an ERA consultant, the center elaborated
and introduced inclusive, transparent, and accountable procedures and internal business process
rules. On May 5, 2020 ERA organized an online training on project management and preparation of
grant applications, which enabled five center employees and one representative from Mariupol city
council’s department of economy—six participants in total—to finalize and submit to ERA a
Concept Note for further strengthening the center. Since August 2020 ERA has been supporting
capacity building of the SME center in terms of developing the center’s three-year business plan with
a detailed workplan, budget and operational model. For this purpose, in the beginning of Year 3 a
selected ERA subcontractor will organize three training sessions and one study tour to Lviv and
Ivano-Frankivsk for six representatives to learn the best municipal practices in bettering the business
environment and experience of business support institutions, to ensure that the SME center offers
high-quality services requested by the local business community.
AZOV SEA COAST
Following recommendations of the rapid assessment of the Sea of Azov region conducted in May
2019, the Transformation team identified several high-priority infrastructure projects related to the
community's strategic priorities. With help from ERA, local municipalities re-assessed and adapted
concepts according to changes in their budgets, the potential of tourist attractions, and challenges to
SMEs due to the COVID-19 pandemic. Three partner cities continue development of the following
projects for their joint implementation with ERA: Mariupol Municipal Trading Small Architectural
Form (SAF), Berdiansk Conference Hall, and Melitopol Expo Center.
Mariupol Municipal Trading SAF envisages creation of 16 prefabricated bus stops with two vendor
kiosks each, planned for further leasing to MSME representatives. The project is included in the
implementation plan of Mariupol SME Development Program 2019–2021 and will contribute to
strengthening economic benefit to the local economy and building business-related infrastructure.
Melitopol Expo Center includes refurbishment of the former refrigerator factory in Melitopol
industrial park to be converted into new expo center space. The purpose of the project is
promotion of products manufactured in Melitopol and Zaporizhzhia Oblast on domestic and foreign
markets through regular thematic exhibitions, expansion of business relations with Ukrainian and
foreign enterprises, financial institutions and NGOs, and establishing partnerships with
manufacturers in other regions.
Berdiansk Conference Hall is focusing on the creation of a modern conference space in the Sofit
Center for Culture and Leisure, which will function both as a platform for information support for
IT, Creativity,
Tourism these sectors should be
prioritized
39 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
businesses and as a venue for round tables, briefings, workshops and presentations, as well as for
cultural and social events.
The ERA Infrastructure team developed concept notes for all three projects during the reporting
period. In Year 3, if the concept notes are approved by USAID, work will continue on development
of project documentation, procurement and contractor selection procedures, and other steps
necessary for effective implementation.
COMMUNICATION
The ERA Communications team managed planning and implementation of ERA’s public outreach
strategy and all media activities at the local, regional, and national levels. The goal of the Activity’s
communication effort is to draw the general public’s attention to the eastern region and focus it on
positive developments in the east, disseminate information about ERA’s activities and the
opportunities it creates to support professional and business development, and attract investments
that create new opportunities for all people in the region to help revitalize the eastern Ukraine
economy.
During the reporting period, the Communications team supported 141 public events that were
highlighted in regional and national media with a total audience of 8,242,895 people, in addition to
the Facebook pages of ERA, USAID, implementing partners and stakeholders. Overall, during the
reporting period ERA produced 383 news posts on the ERA Facebook page, reaching over
1,323,210 users with 143,800 engagements. To increase ERA’s exposure to the international
community, ERA launched a monthly newsletter featuring success stories and examples of
interventions to improve Eastern Ukraine’s economy. The newsletter is distributed to USAID and its
implementing partners, OTI, UNDP, the Friedrich Ebert Fund, and other international stakeholders.
During the reporting period the Communications team worked closely with 40 ERA grantees to
support brand development and marketing plans, outreach materials design, publications, and video
materials production. Overall, the ERA Communications team provided approximately 400
consultations to ERA beneficiaries covering public relations, publications review and design of
outreach materials.
ERA focused its communication and outreach efforts through close coordination with the GoU
(Cabinet of Ministers, Ministry of Education and Science), regional government officials (DOSA and
LOSA) and USAID partner DG East. All public outreach and communications were facilitated under
a joint approach with DG East through the communications campaign «СХІД Можливостей / CXID
Opportunities».
COVID-19 RESPONSE. Starting in April 2020, the Communications team worked with all ERA
sector leads, technical staff and some beneficiaries to help plan and make necessary adjustments to
interventions relevant to changing conditions and priorities under COVID-19 restrictions. Most
events scheduled for April onward were quickly transformed into online mode, i.e. Skype calls,
videoconferences and webinars. ERA ensured that all online events and presentations were
appropriately branded, quarantine regulations were met, and new communication channels were
identified and approved by USAID (such as Telegram, Viber and Skype, in addition to YouTube and
Facebook). The Communications team assisted all ERA interventions to promote online trainings or
events in social media.
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 40
To keep the ERA team updated regarding the COVID-19 situation in Ukraine and abroad, the
Communications team issued a daily update, which has been sent to ERA staff five days a week since
April 1, 2020. The daily updates aggregate information from the Ministry of Health, the Cabinet of
Ministers, the City of Kyiv, and other relevant government bodies and agencies so that ERA staff can
better keep track of current GoU policies, regulations and restrictions, which in turn helps ERA staff
respond in real time to adjustments that may be needed to authorized travel, in-person meetings or
in-person events.
To ensure that all ERA components are working in accordance with their workplans, the
Communications team provided comprehensive support to ERA’s on-going interventions and
development of promotional and marketing materials. These materials integrated positive messages
with the clear visual identity of USAID and the СХІД Можливостей / DAWN of Opportunity
campaign and were widely distributed on public outreach platforms including Facebook, YouTube,
online media outlets, web sites of ERA partners and stakeholders, and other platforms. Information
materials included one-pagers for MSMEs, entrepreneurs’ profiles, a variety of online and offline
infographics, brochures, plaques, certificates, online banners to promote our trainings, PowerPoint
templates, success stories, videos and more.
In the near absence of the possibility to organize in-person
events and meetings from mid-March onward (previously one
of the team’s standard tools), ERA increased its focus on
publishing success stories. Within this reporting period the
ERA Communications team produced 87 success stories which
were widely reprinted by national and regional media outlets,
with approximately 773 publication outputs. USAID and DAI Global also published ERA success
stories on their web resources. The sustained approach to producing success stories made ERA’s
Facebook page a valuable source of information for media outlets, including national editions such as
Uriadovyi Kurier, UNIAN and Golos Ukrainy; media portals bizshid.net and shotam.info; many regional
online editions; partner-city sites; the Ministry of Digital Information and Ministry of Economic
Development portals, and other regional and national agencies.
PRESENCE IN SOCIAL MEDIA. In addition to ERA’s main Facebook page, the Communications
team launched Facebook and Instagram pages to promote Local Farmer Festivals—events that were
initiated by the Growth Sector team to increase the visibility of agricultural SME brands from Eastern
Ukraine and the Azov Sea region among consumers and facilitate new vendor-client and business to
business relations that can continue online. During the reporting period such events were held in
Berdiansk (Zaporizhzhia Oblast) and Mariupol (Donetsk Oblast). For these festivals the
Communications team, in cooperation with an ERA sub-contractor, developed a visual identity (logo,
posters, banners, texts for posts and farmers’ profiles). ERA launched paid advertisements for the
events on Facebook and Instagram, reaching an audience of 98,000 people from Berdiansk, Dnipro,
Kharkiv, Mariupol, Melitopol, Tokmak and Zaporizhzhia (cities from where the team was expecting
potential visitors). As a result, thousands of visitors attended the Local Farmer Festival in Berdiansk
and Mariupol.
To promote tourism in the Azov region, the Communications team launched an Azov.Travel page on
Facebook. It is designed to promote ERA’s partner cities and sites in the Azov Sea region and
tourism products that ERA helps them develop. In addition, ERA created a 3-minute video featuring
the attractions, energy and atmosphere of the resort cities and national parks of Azov. The video
was distributed in social media and via online resources of tourism associations such as Visit Ukraine
and The State Agency for Tourism Development of Ukraine. ERA will also suggest the video be part
87 success stories
reprinted by media
41 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
of the project Mandrui Ukrainoiu, a national initiative implemented by the State Agency of Tourism
Development to give Ukrainians an opportunity to share their favorite tourism destinations and
spots with the rest of Ukraine and beyond.
Masterclasses in journalism were originally planned as two in-person training sessions for journalists,
post-COVID these were readjusted to a video format. The masterclasses feature themes of
constructive journalism, demonstrate how to turn problems of the region into opportunities, and
tell the untold story of east Ukraine’s economy. They were designed to reach out to regional,
national and international journalists to improve the image of the east, to dispel myths about the
region being entirely a war zone, to advocate and promote success stories, and to give journalists a
good grounding in the topics and approaches they can use to pursue high-level professional
coverage. In September–October 2020, the masterclasses will be distributed on social media via
targeted groups, and through the Internews network and educational platforms. Invites will be sent
to Ukraine’s national universities, journalism, and communication departments. For these
masterclasses ERA attracted foreign journalists and experts who have lived in Ukraine for many
years and know the realities of the east from their own perspectives and experience.
SUPPORTING INFRASTRUCTURE INVESTMENT
ERA’s Transformation team cooperated with partner communities to increase their capacity in
attracting desired investment and funds for priority projects implementation. In this regard the team
conducted three online trainings on project management and preparation of grant projects for
representatives of city councils, cultural, educational and social protection departments, public
organizations, SME centers, public utility enterprises and small businesses from Novopskov
Consolidated Community, the city of Starobilsk and Mariupol. Jointly with EU4Business project, ERA
organized a three-day online training "How to Prepare a Successful Application to the State Fund of
Regional Development" for representatives of Pokrovsk, Myrnohrad, Starobilsk and Novopskov city
councils.
In August–September, to facilitate implementation of the partner communities’ development
strategies, the Transformation team conducted research and identified communities interested in
public private partnership (PPP) development. ERA will continue this work in Year 3 and will explore
potential PPP opportunities and provide capacity building training and consultations needed to launch
the PPP projects.
Through the highly participatory process of strategic economic development planning and
implementation, ERA partner cities and communities identified 23 prioritized construction projects.
The Transformation team was in close contact with all partner cities and communities, while
monitoring the situation caused by the COVID-19 pandemic and keeping up work with local officials
who review the strategies in the rapidly changing environment. As a result, potential infrastructure
projects for implementation with ERA support were designated: Luhansk Regional Laboratory
Center (LRLC) in Sievierodonetsk, Tech Club in Bakhmut Consolidated Community, bus stops with
vendor kiosks in Mariupol, Expo Center in Melitopol, Public Space in the open air in Novopskov
Consolidated Community, open air cinema and green kiosks in Starobilsk, Berdiansk Conference
Hall, convertible skating rink in Bakhmut Consolidated Community, and DOSA Expo Center in
Kramatorsk.
Several construction projects with high priority status have been developed in Year 2. Windows and
exterior door replacement for the administration building and dormitory (LNAU Slovyansk Phase 1)
has 100% project design completed, the Design Acceptance certificate was successfully signed by
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 42
LNAU administration, the Environmental Review Checklist (ERC) was signed by USAID, and an RFP
for construction works is underway. Retrofit of the campus-wide heating system (LNAU Slovyansk
Phase 2) project design is 60% ready. Thermal insulation and roof repairs for the administration and
dormitory buildings (LNAU Slovyansk Phase 3) has completed 70% of the project design.
Other construction projects are under active development:
• Renovation of non-residential premises at the Phytosanitary Laboratory in Rubizhne city.
The contractor has submitted 90% of project design preparation, and the Design Acceptance
certificate was successfully signed by Rubizhne city council on July 16, 2020. The
Infrastructure team developed the ERC and sent it to USAID for review, the Environmental
Compliance Support (ECOS) is now at the answering comments stage. Due to the certificate
protection procedure, Rubizhne city council has requested to postpone the construction
start date until after January 20, 2021.
• Spalakh IT Hub in Mariupol needs review of the design provided by Mariupol city because of
environmental compliance issues which require Expert Review services to revise and certify
the design.
43 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
IV. COORDINATION
ERA’s approach to coordination is broad-based and multi-faceted. Coordination begins “at home"
within the ERA organization and between the Operations and Technical areas of the Activity. The
ERA office structure has program management and operations with Chief of Party, Deputy Chief of
Party Operations, and administration and human resources support based in the ERA Kyiv office.
Technical and logistics provide support with Deputy Chief of Party Technical, Senior Infrastructure
Manager based in Kramatorsk, and Economic Resilience Strategy Lead based in Sievierodonetsk
respectively. ERA partner DRC works out of their office in Slovyansk and ERA maintains a project
office in Mariupol. With nearly 80 staff, close internal coordination and cooperation is imperative to
ERA’s success.
ERA INTERNAL. As the COVID-19 restrictions mandated a work from home policy, ERA has
carefully implemented a system of coordinating safe office access upon request as needed with strict
limits per department. This has enabled mainly finance and logistics operations access to offices to
support the entire program. ERA Component leads have continued individual component team
meetings on a regular weekly basis and a bi-weekly all Component Coordination meeting has been
established to regularly share highlights, plans and strategic discussion with all teams including grants,
MEL and operations. ERA also has a regular, weekly Senior Management meeting which includes the
COP and both DCOPs.
USAID AND USAID IMPLEMENTING PARTNERS. ERA coordinates continuously with USAID as
needed and on a regularly scheduled bi-weekly basis with the COR and ACOR alternatively with
Operations and Technical focus. As the work of ERA has expanded in eastern Ukraine, the Activity
has intensified its coordination with other organizations playing key roles in the region’s economic
development.
During its second year, ERA continued to coordinate closely and on a regular basis with other
USAID partners including the Democratic Governance East (DG East) program, the Competitive
Economic Program (CEP), the Energy Security Program (ESP) and the Credit for Agriculture
Producers (CAP) program. ERA, through its commitment to proactive cooperation, was involved in
design and implementation of joint programming with DG East both in development of the Mariupol
Strategic Development Plan 2021–2030 and with CEP in research and assessment of personal
protective equipment manufacturing capacity in Ukraine.
ERA and ESP coordinated at national and local levels on vital energy and infrastructure issues in
Eastern Ukraine: together with DOSA leadership and the management of Voda Donbasu (the
regional water public utility) worked to develop a scope of work for assessing the water
infrastructure system. Together with ESP and representatives of USAID, EU, the World Bank and
GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit), ERA is coordinating our support on
the GoU’s emerging national strategy on coal sector transformation with a focus on seven coal cities
in central Donetsk Oblast.
GOVERNMENT OF UKRAINE. Throughout the reporting period ERA has increased its regular
formal coordination with Oblast partners in Zaporizhzhia, Luhansk and especially Donetsk. In
October 2019, ERA management together with the USAID Director of Economic Growth and COR
and ACOR, met with the new Governor of Donetsk Oblast and administration representatives.Since that meeting the ERA DCOP Technical has maintained a regular schedule of monthlycoordination meetings with the Director of the Department for International Technical Assistance,Innovative Development and External Relations to review ERA program plans and activities and DOSA plans and priorities. Similar meetings happen in Sievierodonetsk, Luhansk Oblast where
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 44
ERA has established close partnerships with 11 municipalities and consolidated communities which
includes close coordination with the executive/mayor, deputy mayors and city council as well as key
department staff and citizen groups and local civil society and business representatives. ERA’s local
government partners include: Luhansk GCA (LOSA) Novopskov Consolidated Community,
Starobilsk City, Bilovodsk Consolidated Community; Northern Donetsk GCA (DOSA)
Kramatorsk City, Bakhmut Consolidated Community; Central Donetsk GCA (DOSA) Pokrovsk
City, Dobropillia City, Mariupol City; Azov Coast (DOSA, ZOSA) Berdiansk City, Melitopol
City; Kherson Oblast (KOSA) Henichesk City; Platform for Sustainable Development of
Coal cities in Donetsk Oblast (Dobropillia, Myrnohrad, Novohrodivka, Pokrovsk, Selydove,
Toretsk, and Vuhledar).
The level of coordination varies depending on the ERA projects the local government is
implementing. Those communities which have gone through the Economic Strategic Planning process
are mobilized at multiple levels with ERA support to establish working groups for strategy
implementation and monitoring. ERA communicates regularly with all partner municipalities to assess
progress and changes in development priorities especially during the COVID-19 crisis. As budget
support to municipalities was cut and project priorities and capacity to co-finance projects changed
the ERA Transformation team continues tomaintain contact with local administrations.
Across all three components ERA frequently coordinated with other key GoU contacts in year 2
including: the Ministry of Education and Science, Ministry of Culture, Ministry of Transport, Ministry
of Youth and Sport, Ministry for Development of Economy, Trade and Agriculture, Ministry for
Reintegration of Temporarily Occupied Territories (MinTOT). Regular coordination with ministries
is conducted with USAID approval and at the department or vice-minister level; all communication
with ministers is conducted by the ERA COP in close collaboration with USAID.
INTERNATIONAL AND LOCAL PARTNERS. ERA coordinates with international donor
organizations and local NGOs, civil society organizations, agencies and businesses based on
component and workstream focus.
The ERA Inclusion component implements workstreams which include increasing beneficiary
capabilities and opportunities including Workforce Development coordination with partners such as:
CEP, DG East, UNHCR, UNFPA, UNDP, FAO, UCBI II (Ukraine Confidence Building Initiative),
IOM, Save the Children, People in Need, AGRO, MoES, local employment offices, Friedrich Ebert
Foundation, Senior Expert Service (German Federal Ministry for Economic Cooperation and
Development), German Federal Ministry of Education and Research, Goethe Institute in Ukraine.
ERA’s Growth component implements workstreams which include support to Biofuels, Honey,
Innovation for Manufacturing, Information Technology, Tourism and Vegetables sectors. Market
Expansion and Investment Acceleration coordinates with partners such as: LOSA, DOSA, ZOSA,
ESP, CEP, EIB, AGRO, FAO, DFID (through DRC), UNDP, EU4Business, DG East, UCBI II, Ministry
of Culture, Ministry of Transport, Ministry of Youth and Sport, 5-7-9% Program, Ministry for
Development of Economy, Trade and Agriculture, CAP, USAID EO Business Incubator.
the Economic Resilience Strategy Lead is based and they meet frequently on specific priority
Relations. Coordination with Zaporizhzhia and the recently added Kherson Oblast is project-oriented and managed mainly through the Economic Resilience Strategy Lead and Growth sectorleads focused on Tourism, IT and Agriculture initiatives.
programs or LOSA issues with the Head of Luhansk Regional State Administration and the Directorof the Department for International Technical Assistance, Innovative Development, and External
45 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
ERA’s Transformation component implements workstreams which include Driving Vision, Intra-
regional Development and Infrastructure Investment and coordinates with partners such as: GoU,
DOSA, LOSA, ZOSA, DG East, CEP, Ministry of Culture, EIB, World Bank, EBRD, UNDP, DFID,
GermanWatch, EU4Business, PLEDDG (Partnership for Economic Local Development and
Democratic Governance, Canada).
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 46
V. PROGRESS AGAINST TARGETS
The table below presents the second-year achievements towards the performance indicators. The
details, including disaggregation of each performance indicator, can be found in Annexes 1.1-1.4
Table 1. ANNUAL ACHIEVEMENTS TOWARDS ERA PERFORMANCE INDICATORS
PERFORMANCE
INDICATOR
FY2
ACTUALS
FY2
TARGETS
VARIANCE NOTES
1.1 Number of direct and
indirect beneficiaries
receiving improved
infrastructure services as a
result of USAID assistance
0 10,000 The Year 2 target for this indicator was modeled on a list of
potential infrastructure projects from ERA Year 1, most of
which are no longer under consideration. The current ERA
Construction team was reorganized / hired during the first
half of ERA Year 2. A new, more grounded construction
pipeline has since been developed and the future years’
targets (Years 3–6) have been re-modeled based on the
current pipeline.
1.2 Number of individual beneficiaries from
vulnerable and hard-to-
reach populations in the
target regions
3,518 2,500 The reason for the +40% variance is mostly due to the shift from a live / in-person modality of training delivery to a
mostly online modality during the second half of Year 2 due
to COVID-19 quarantine restrictions. Also, a significant
number of individuals that ERA expected to report in Y1 Q4
ended up being booked in Y2, Q1.
GNDR-2 Percentage of
female participants in
USG-assisted programs
designed to increase
access to productive
economic resources
(assets, credit, income, or
employment).
60% 1 30% After reporting on Year 1 results (which reflected a similar
male / female split of participants) and considering feedback
we received during ERA’s first Data Quality Assessment
(DQA), conducted in November 2019, USAID and the ERA
team agreed to revise the GNDR-2 target for future years
(3–6). After ERA gathered more data on likely MSME
beneficiaries from the ERA Growth value chains and cross-
cutting sectors, it was decided that the current observed male
/ female participation rate is likely to persist, so for all future
years, the target has been reset to 60%.
2.1 Total amount of new
investments made by
MSMEs supported by
USAID
$7,691,852 $5,000,000 The primary reason for the large (more than +50%) variance
for this indicator was the larger than expected uptake of new
MSME beneficiaries. As with indicator 1.2 above, the switch to
online delivery in the second half of the year enabled the
program to onboard more MSME clients than originally
anticipated. In addition, it should be noted that reporting on
this indicator will always reflect a certain amount of
distortion, due to the misalignment between the USG fiscal
year, which ends in September (and ERA’s reporting cycle)
and the Ukrainian fiscal year which ends in December. This
will cause a lag in some of the results not being recognized
until the subsequent reporting period.
1 Numerator = 2,117, denominator = 3,518
47 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
PERFORMANCE
INDICATOR
FY2
ACTUALS
FY2
TARGETS
VARIANCE NOTES
2.2 Number of individuals
with new or better
employment as a result of
USAID assistance
711 2,000 There were two primary drivers behind the -65% variance in
this indicator:
(1) COVID-19. This indicator was originally modeled during
a macroeconomic environment of increasing employment opportunities. Since the COVID-19
quarantine measures introduced in spring 2020,
unemployment rates in Ukraine in general, and in ERA’s
area of operation, have increased significantly (as have
small business failures). Since the depth of the current
economic downturn (as well as the length of the current
public health crisis) is unknown, it will be difficult to re-
model this indicator until the macroeconomic situation
in Ukraine has stabilized;
(2) The team also envisaged that graduates of VETs assisted
in Year 2 (who would have used new ERA-provided
equipment and facilities in their learning process) would
report on their employment during summer 2020. Due
to a shift to distance learning (which, by definition,
prohibited use of the equipment) and in some cases
delays in equipment purchase and delivery (also caused
by lockdown and quarantine restrictions) ERA was not
able to capture a certain number of such beneficiaries for
this reporting period.
2.3 EG.5-1 USD sales of
firms receiving USG-
funded assistance
(cumulative sales)
$69,928,648 $22,695,600 The primary reason for the large (more than +300%) variance
for this indicator was the larger than expected uptake of new
MSME beneficiaries. ERA’s Year 1 reported results were
based on a limited pool of 27 such beneficiaries, while ERA’s
Year 2 results were based on 598 such beneficiaries. As with
indicator 1.2 above, the switch to online delivery in the
second half of the year enabled the program to onboard
more MSME clients than originally anticipated.
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 48
PERFORMANCE
INDICATOR
FY2
ACTUALS
FY2
TARGETS
VARIANCE NOTES
3.1 Percentage of Activity
direct beneficiaries who
think their economic
situation has improved substantially or somewhat
over the past 12 months
17% 2 50% Like indicator 2.2 (above), 3.1 was probably the most
“COVID-19 affected” of ERA’s indicators. In short,
beneficiary optimism plummeted dramatically with the onset
of COVID-19 quarantine restrictions and the subsequent macroeconomic contraction that followed in its wake.
Beneficiaries across the board (across all ERA components
and sectors) lost jobs, closed businesses (some temporarily
and some permanently), and saw reduced working hours and
smaller paychecks.
In the beneficiaries’ survey from June, eight individuals
reported that they had lost their jobs and 77 individuals
reported worsened employment conditions due to the
COVID-19 crises; eight MSMEs reported that they had to
shut down their businesses and 189 MSMEs had to
temporarily suspend operations; a total 307 MSMEs reported
decreasing sales of goods, products and services; 81 MSMEs
had to fire personnel or ask employees to take annual leave
without pay, and 57 MSMEs cut salaries.
During the September survey, 35% of beneficiaries reported
that their economic situation had worsened somewhat or
worsened substantially, and almost half of these respondents
connected this decline to the lockdown of March–May 2020.
In addition, 35% of this group connected worsening
conditions to both the lockdown and other reasons such as:
the general economic downturn; increasing retail prices (and
price gouging; low / declining salaries; lost jobs or the
necessity to shift to another (less satisfying / less well
compensated) job; inflation; higher prices for raw materials
for MSMEs; increased competition (which may have negatively
affected operating margins), and, specifically for beneficiaries
from the honey value chain, poor weather conditions during
the first half of the year and a late start to the pollination /
honey production season.
CC.1 Number of people
trained during the Activity
3,391 1,800 As with indicator 1.2, above, the reason for the +90%
variance is mostly due to the shift from a live / in-person
modality of training delivery to a mostly online modality
during the second half of Year 2 due to COVID-19 quarantine
restrictions. Also, there were a significant number of
individuals that ERA expected to report in Y1 Q4 that ended
up being booked in Y2, Q1.
CC.2 Number of
beneficiaries utilizing new
practices, techniques, or
business management
skills as a result of USAID
assistance
1,621 1,150 This indicator is closely tied to indicators 1.2 and CC.1 (the
greater the uptake of new V&H2R beneficiaries and number
of people trained, the greater the likely number of people to
be counted under CC.2). Thus, the reason for the +50%
variance is mostly due to the shift from a live / in-person
modality of training delivery to a mostly online modality
during the second half of Year 2 due to COVID-19 quarantine
restrictions. Also, there were a significant number of
individuals that ERA expected to report in Y1 Q4 that ended
up being booked in Y2, Q1.
2 Numerator = 277, denominator = 1,625
49 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
PERFORMANCE
INDICATOR
FY2
ACTUALS
FY2
TARGETS
VARIANCE NOTES
CC.3 Achievements made
toward leveraging
Government of Ukraine
(GoU), private sector and other donors funds
473 25 The team modeled the target for this indicator based on an
initial definition that covered three types of “achievements” –
“infrastructure projects,” “business plans” and “event that
benefits ERA beneficiaries” (as per the AMELP approved on May 3, 2019). In the AMELP revision approved in Year 2, ERA
expanded the definition by adding “other achievements that
benefit the region” (see AMELP approved on March 26, 2020)
to cover other achievements that do not fall into the original
three categories but are nevertheless very important for the
region’s development. Thus, for example, in Year 2 ERA
succeeded in leveraging UNDP funds allocated for
strengthening capacity of ERA partner VETs, which would not
have originally been captured.
CBLD-9 Percentage of
U.S. Government-assisted
organizations with
improved performance Numerator
Denominator
40%
2
5
40%
20
50
This is a new indicator that was assigned to ERA by USAID
during the first quarter of calendar year 2020. ERA was
required to offer Y2 and Y3 numerator and denominator
targets on very short notice, before the project had the
opportunity to investigate / vet with technical teams which
partner entities (specifically) would qualify for analysis and
what tools (exactly) would be used to assess changes in
capacity. The few assessments that were undertaken were
done in the very last weeks of the reporting period. The fact
that the percentage target was met precisely was pure
chance.
Nevertheless, now that the methodological issues have been
resolved, the team believes the Year 3 targets to be realistic
and believes that ERA will be able to start reliably reporting
against this indicator in program Year 3.
3 Cumulative number of achievements starting from the beginning of the Activity
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 50
VI. PERFORMANCE MONITORING, EVALUATION AND
LEARNING
AMELP REVISION
In Year 2 the ERA MEL team made two major rounds of Activity Monitoring, Evaluation, Adapting
and Learning Plan (AMELP) revisions.
The first round of revisions was triggered by: 1) the need to align the AMELP with the ERA Year 2
Work Plan; 2) the setting of targets for the perceptions indicator for which a relevant baseline
survey has been completed; and 3) adjustments in response to findings of the data quality assessment
(DQA) conducted in mid-November 2019. As a result of this revision, the AMELP approved by
USAID on March 26, 2020 reflects the following amendments:
- replacement of performance indicator “2.3 Average percent change in sales of MSMEs
receiving Activity assistance” with the indicator “2.3 EG.5-1 USD sales of firms receiving
USG-funded assistance (cumulative)” and set annual and life of the Activity (LoA) targets;
- determined baseline and set mid-Activity and end-Activity targets for the performance
indicator “3.2 Percent of population in target communities who think that in five years there
will be more or better economic opportunities in the region which allow residents to
stay/live in the region”;
- dropped indicator “3.1 Number of contacts made through informational and
communications events”. Currently the Communication and MEL teams together with
USAID/Ukraine and ERA’s Analytical Service Support Contractor Resonance are working on
the development of a new performance indicator which would help ERA to properly capture
the impact of communication interventions.
The second round of revisions was run by the team in response to the requirement of the ERA add-
on contract from August 2020 to account for the $10 million add-on and extension of the program
for a sixth year. This latter revision was due in mid-September and its approval by USAID is still
pending as of the end of this reporting period.
SPECIAL STUDIES
PERFORMANCE INDICATORS BASELINE STUDIES. In Year 2 ERA conducted several special
studies aimed at gathering information needed for setting targets for two ERA indicators—“3.2
Percent of population in target communities who think that in five years there will be more or
better economic opportunities in the region which allow residents to stay/live in the region” and
“CC.4 Economic share of value chains and cross-cutting sectors in eastern Oblasts assisted by
USAID”. For the first indicator subcontracted research company Kantar surveyed 4,091 respondents
from 19 settlements and presented the results for a follow-on Pause and Reflect (P&R) session
where the ERA team set targets for the mid-life and end-life of the Activity. The second indicator’s
setting required hiring an economist consultant who completed a baseline assessment of the
economic share of value chains and cross-cutting sectors. The consultant based the assessment on
available official and expert data for 2018. The team shared the report with USAID/Ukraine in early
May 2020 and organized a findings discussion in June during a dedicated P&R session.
51 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
MARKET SYSTEMS RESILIENCE ASSESSMENT (MSRA). In Year 2 ERA continued its work on a
pilot of applying the market systems resilience assessment (MSRA) framework around the
Vegetables value chain in eastern Ukraine. The framework defines market resilience along a
continuum of characteristics (domains): connectivity, diversity, power dynamics, rule of law, business
strategy quality, decision making quality, cooperation, and competition. The framework posits that
the resilience of a system is based on its capacity to adapt and transform over time in the face of
stresses and shocks. To assess each domain, select indicators are evaluated based on the results of
surveys, interviews and economic research.
After refining the MSRA framework to make it more pertinent to the fruit and vegetables sector
in Eastern Ukraine, the team developed and tested a 50-minute data collection survey, which it then
used for 18 telephone interviews in June and July. To increase response rates, the team also
developed two abbreviated versions of the survey: a 15-minute survey used for telephone interviews
with farmers, as well as for in-person interviews with farmers and retailers selling fruits and
vegetables at Mariupol markets (26 respondents); and a 15-minute survey for in-person interviews
with nine small retail owners/employees in Mariupol. The MSRA team also developed a
questionnaire for and conducted 11 key informant interviews that complemented the survey
questionnaire, and gathered the economic statistical data needed for the assessment. The original
research plan foresaw a shorter survey with a greater number of respondents but several focus
groups; this was readjusted considering the difficulties that the COVID-19 pandemic presents in
assembling groups and organizing meetings. The team has scored the eight domains of market
systems resilience based on results of the interviews and economic data analysis. Seven of the eight
domains were given scores of sub-optimal. The MSRA team is currently preparing a summary report
and planning for a Pause and Reflect Session to be held in November 2020. Key informant interviews
with the Vegetables value chain leads resulted in detailed discussions feeding into the work plan
process.
PAUSE AND REFLECT SESSIONS
During Year 2, the ERA team organized and conducted six stand-alone Pause and Reflect sessions
and one annual workplanning series of seven Pause and Reflect sessions that reviewed lessons
learned from the previous year and plans for the coming year by each of the three Activity
Objectives. Considering COVID-19, at the mid-year point ERA revised the learning plan for the
remainder of the year. USAID approved the revised learning agenda on June 16, 2020.
The table below presents the dates and topics of Pause and Reflect sessions organized by the ERA
team and the sections below present main discussion topics and follow-on steps.
Table 2. LIST OF PAUSE AND REFLECT SESSIONS 2020
PAUSE AND REFLECT SESSION DATE
Mariupol Investment Forum lessons learned December 11, 2019
Results of public perception survey December 12, 2019
Gender and vulnerability assessment and inclusion January 16, 2020
Interim results and progress towards performance indicators June 23, 2020
Assessment of share of value chains and cross-cutting sectors in the eastern economy June 25, 2020
The model cities with post-industrial transformation study revisited June 30, 2020
Annual Workplanning Pause and Reflect series (7 sessions) July 2–28, 2020
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 52
PAUSE AND REFLECT SESSION ON MARIUPOL INVESTMENT FORUM. On December 11,
2019, the ERA team gathered to discuss achievements and lessons learned from Mariupol Investment
Forum (MIF) that took place on October 30, 2019. As a result of the discussion the team agreed to
be attentive and open to similar opportunities, including potential support for the idea of an annual
MIF, and to stay in close contact with GoU partners, especially the President’s Office, to be available
to support similar initiatives. Where possible, ERA needs more advance planning time for potential
future large-scale events and to prepare SMEs for interaction with international clientele well prior
to an event, including training and TA preparation for those who have the most potential to benefit.
Also, the team agreed to identify a new public outreach activity which highlights Eastern Ukraine’s
economic resilience, as well as to follow up on good ideas that emerged from the MIF and Youth
Forum.
PAUSE AND REFLECT SESSION ON RESULTS OF GENERAL PUBLIC PERCEPTION
SURVEY. On December 12, 2019, ERA technical leads and senior management gathered at the
Kramatorsk office to hear a presentation of the results of the public perception survey conducted by
Kantar. As mentioned above, the survey’s main purpose was to ask the population of ERA target
regions if there will be more or better economic opportunities in this region which allow residents
to stay/live here in five years, mirroring ERA performance indicator 3.2. After a Q&A session the
participants discussed three types of potential scenarios (worse-case, status-quo and best-case) and
provided projections towards the mentioned indicator till April 2021 and June 2023 (end of ERA
implementation) in order to help with target setting. While collecting the estimates, the Kantar
representative suggested acquiring analysis of other economic-related perception surveys to decide
whether it is reasonable to have the numbers increasing through ERA implementation for an
indicator with an extremely low level of predictability. This analysis was carried out and is presented
in the revised AMELP alongside the new indicator targets.
PAUSE AND REFLECT SESSION ON GENDER AND VULNERABILITY ASSESSMENT AND
INCLUSION. On January 16, 2020 in Kramatorsk, Donetsk Oblast, ERA conducted the ERA
Vulnerable Populations Integration Pause and Reflect Session which engaged staff and colleagues
from USAID DG East and the USAID mission. During this event, the ERA Inclusion team presented
the following key findings of the Vulnerability and Gender Integration Strategy:
1. Many vulnerable groups are exposed to similar economic stressors, such as unemployment and
loss of business.
2. Some groups, such as LGBTQI and the Roma minority, face unique discrimination such as
homophobia and social exclusion.
3. There are cases of intersectionality among the researched groups, meaning that there are mutually
reinforcing forms of marginalization. For example, hosting communities often intersect with IDPs, or
women of 55+ with unemployed.
4. Problems identified among the observed groups often lay outside ERA’s scope of influence, such
as legal documentation issues within the Roma population and access to healthcare for LGBTQI
community representatives.
As previously mentioned in this report and based on feedback and results of subsequent focus group
discussions, the ERA Inclusion team is developing a gender-vulnerable population guide for the ERA
team and will finalize the guide after receiving final comments on the Gender and Vulnerability
Integration Strategy from USAID. The team will present the final version in November 2020.
53 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
PAUSE AND REFLECT SESSION ON INTERIM RESULTS AND PROGRESS TOWARDS
PERFORMANCE INDICATORS. On June 23, 2020, the ERA team gathered to analyze and discuss
the Year 2 6-month results and progress towards the full year’s key performance indicators. The
team focused on the indicators that seem to be falling short and determined and analyzed the main
factors influencing progress against targets considering pre and post COVID-19 conditions. The
team also discussed what adaptive management was happening and would need to happen
considering the pandemic. Based on the conclusions drawn, the team is integrating lessons learned
into further programming in Year 3 work plan development, and later will revise annual and life of
Activity (LoA) targets, if needed, after submission of the Year 3 Work Plan.
PAUSE AND REFLECT SESSION ON THE ASSESSMENT OF SHARE OF VALUE CHAINS
cities of Eastern Ukraine. The team discussed how the study results could be used and what could
be introduced into programming for the coming years. The team agreed to translate the study into
Ukrainian and share it with ERA partners and interested stakeholders, to create a one-pager or
infographic based on the study’s key findings and recommendations to make it more digestible for
ordinary audiences, as well as to think about organizing interviews with representatives of the model
cities as one approach to talk about the study to a wider audience and attract the attention of ERA
strategic partners and other interested stakeholders. In short, the Model Cities Study is currently
the strategic blueprint for how the Transformation team is approaching its work with all the cities
and ERA sub-regions with which it engages.
WORKPLANNING PAUSE AND REFLECT SERIES. After revision of the ERA Learning Agenda
and agreeing upon it with USAID in early June 2020, the work plan development sessions were all
held remotely because of COVID-19 restrictions. The Pause and Reflect series consisted of seven
meetings remotely between the period of July 2–28, 2020. Each session has one key topic and led to
support the work plan process, which was also done without any physical meetups. Besides the
sessions described above, there was a kick-off meeting on July 2, where the team discussed COVID-
19 constraints and available options for working interaction, lessons learned from the first wave of
grants and the one-stage grant procedure analysis, as well as potential points for intersection
between different internal teams. Further, every ERA component sequentially presented the results
of its work during Year 2 with the main implementation takeaways for future planning. Once the
outcomes had been discussed, the component teams disclosed their plans for the next year by
outlining tentative types of interventions and profiles of potential grantees. The work plan activities
that followed the P&R sessions ended up with the Year 3 Work Plan submitted on time to USAID
on August 30, 2020.
AND CROSS-CUTTING SECTORS IN THE EASTERN ECONOMY. On June 25, 2020, ERA
ERA value chains and cross-cutting sectors in the economy of Donetsk and Luhansk GCA and theSea of Azov region. The team discussed the assessment results—feedback and comments from thetechnical leads, and ideas/suggestions on other ways to capture or measure ERA input intodevelopment of selected value chains and cross-cutting sectors.
Team Lead presented developments to date towards the adoption of model cities’ experience in the
PAUSE AND REFLECT SESSION ON THE PITTSBURGH STUDY. On June 30, 2020,
MEAL Director and an ERA economist consultant presented results of the assessment of the share of
Partners4Growth presented the Model Cities Study key findings and ERA Transformation
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 54
VII. LESSONS LEARNED
MANAGEMENT
While it is always important to continuously monitor and assess the conditions that can affect
Activity implementation, it became an even higher priority once the COVID-19 pandemic arrived in
Ukraine. Activity planning became more challenging since it was (and still is) unclear how long the
pandemic and quarantine could last. This uncertainty affected ERA intervention planning, disrupted
grantee and subcontractor / vendor schedules, effectively halted ERA staff travel (with very few
exceptions) and created other numerous unforeseen circumstances. Developing flexible systems to
respond to this uncertainty was crucial during the pandemic.
ERA worked closely with its senior management, technical team, administration and logistics team
and local public health officials to assess conditions which could impact the decision to postpone or
cancel ERA or partner events and activities or shift them to online delivery due to the COVID
threat.
ERA senior management put an emphasis on communication to determine if our work processes
and risk controls were effective to ensure Activity continuity. ERA senior management regularly
disseminated COVID-19 updates to the team. The Activity’s management established frequent,
positive and transparent two-way communication with employees, beneficiaries, subcontractors,
grantees and GoU officials in order to ensure alignment with these key stakeholders to quickly
identify lessons learned and facilitate the new mode of operations.
Since late March 2019, the ERA Communications team has produced and circulated to all ERA staff
daily COVID-19 briefs that summarized all information regarding the situation issued by the
Government of Ukraine over the past 24 hours as well as a summary of the secondary
macroeconomic impact of the health crisis. In addition, ERA senior management held weekly
meetings (or more frequently, as needed) to discuss ERA COVID-19 related management issues.
During these meetings, ERA senior management continued to assess the situation to identify critical
issues and main risks and vulnerabilities brought about by COVID-19 and develop plans for
immediate action as needed.
ERA senior management’s priority remains the health and safety of our project staff, partners, and
beneficiaries, while at the same time continuing to deliver high quality assistance to our target
beneficiaries. ERA has successfully managed to do this since the start of quarantine but must remain
hyper-vigilant and quickly apply lessons learned on Activity management during this crisis and rise to
the occasion during the quarantine and the post-quarantine period.
GRANTS
Given the situation and the unpredictable nature of the force majeure, the ERA Grants team has
learned several key lessons. One of them is that the share of offline activities in the grant can add
additional risk in the worldwide pandemic setting. Thus, finding a way of achieving the same or
similar outcomes by the means of online activities will significantly reduce those risks. However, in
case of practical education, especially for trades that require physical activities, online mode is not
always applicable.
55 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
After a re-evaluation of the status of grant package development and the viability of grant packages
being successfully processed in the near-term, the Grants team slightly modified its approach to
processing grant applications. Namely, in-kind grants can take longer to develop and implement than
other grant types, because they require a significant amount of market research for the items to be
considered for an in-kind grant. Once an in-kind grant is approved, the procurement process can be
lengthy, especially for highly specialized goods that are not readily available in Ukraine. Thus, ERA
prioritized Fixed Amount Award (FAA) grants to NGOs that are strategically important and can be
processed quickly and efficiently.
TECHNICAL
At the beginning of ERA’s Year 2 implementation, plans were in place to identify a variety of business
service providers (BSP) located throughout Donetsk and Luhansk Oblasts and provide the training
and support necessary for them to deliver the services needed for eastern MSMEs to expand their
markets and improve their access to finance.
The difficult economic situation in the east, and only slowly developing recognition among
entrepreneurs and MSMEs of the value of third-party services, indicated that conditions did not exist
for a thriving, homegrown BSP sector. While to a neutral observer there certainly is the need for
certain services, sustainable demand for them often does not exist. For example, laboratories
providing soil and leaf analyses are crucial for determining what pesticides and fertilizers are best,
but few farmers recognize that need or are willing to pay for lab services on a scale that justifies an
expansion of laboratories located in the east.
Similarly, while strategic consulting firms may be needed there is lack of willingness to pay on the
part of potential clients, and they provide a service that requires experienced practitioners who
cannot be developed in just one or two years. Especially in the post COVID-19 world of distanced
communication, the firms themselves do not necessarily need to be located on the territory of
Donetsk and Luhansk Oblasts. Therefore, ERA believes that it is too early to invest significant
program time and resources on the development of a wide variety of BSPs and that it is better to
dedicate resources strategically where they can demonstrate results, create leverage, and maximize
impact. ERA, in the course of its work supporting improved access to finance and its value chain
growth sectors, will focus strategically and look for key services that: 1) are necessary, 2) are truly in
demand, and 3) need to be, and can easily be, provided locally.
COORDINATION
ERA technical program implementation has benefited from increased and more efficient coordination
with partners and beneficiaries throughout Year 2. This year ERA strengthened its productive
coordination processes with both governments of Luhansk and Donetsk Oblasts, our primary
government partners. In October 2019 in Donetsk Oblast, as the new governor was appointed, ERA
introduced a new approach to engage the DOSA office of Director of the Department for
International Technical Assistance, Innovative Development and External Relations in sharing and
coordinating socio-economic plans and priorities for the region. ERA requested from DOSA to
establish a regular monthly coordination meeting with ERA DCOP Technical and representatives
from different component teams as an opportunity to inform and update DOSA on ERA progress
and to receive input from DOSA and coordinate shared development priorities.
The new more positive coordination with DOSA and the continuation of productive coordination
with LOSA enabled ERA to work strategically not only easily and efficiently with government but
with donors and international development organizations active in the east. ERA strengthened
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 56
partnerships with regional and local governments and demonstrated its ability to support urgent and
strategic development priorities of the region and on a national level. ERA learned that strategic,
sustained and customer-oriented partnership and coordination with government partners yields
better results with direct positive progress toward program goals and objectives. ERA has supported
both Oblasts to develop and refine their strategies and approaches to attracting domestic and
foreign investment. As a result, throughout the year ERA coordinated closely with the international
donor community to facilitate and leverage their work in the region and even increase their
investments in large infrastructure investments.
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 58
IX. MANAGEMENT
During Year 2, ERA assembled a highly specialized team of experts with a clear understanding of
how to achieve the Activity’s targeted results and outcomes that was aligned with the Activity’s
workplan. By the early half of the year, ERA had fully staffed its Technical team and nearly all its
Operations team, which led to improved Activity planning, coordination, financial management and
administrative systems. The ERA team adapted to changing conditions—in large part due to the
COVID-19 virus threat—in Eastern Ukraine by using flexible systems and developing tools to assess
our progress rapidly for results and identify when and how to make corrections.
RECRUITMENT AND HIRING OF STAFF
ERA has been able to attract a collection of highly qualified expat and local staff to support Activity
implementation and to achieve or exceed USAID’s goals and objectives during Year 2. ERA had 92
long-term employees (16 in Kyiv, 40 in Kramatorsk, 12 in Sievierodonetsk and 7 in Mariupol), 13
DRC (locally based subcontractor) staff, and four FHI360 (international subcontractor) by the end of
Year 2. Except for a few long-term operations positions (needed to replace staff who left the project
during the latter part of the year), ERA was fully staffed by the end of Year 2. For a complete list of
current full-time long-term staff, refer to the ERA organizational chart.
Nineteen final technical positions were filled during Year 2, including key hires in all three
components:
1. Inclusion—Inclusion Training Coordinator, Inclusion Network Coordinator;
2. Growth—Economic Development Coordinator, Honey Sector Lead, IT Sector Lead, Tourism
Sector Lead, Investment Sector Specialist, SME Development Officers for Kramatorsk,
3. Transformation—Community Development Officer, Social Media and Outreach Specialist, Media
and Information Analyst, Graphic Designer, Program Support Officer/ Translator, Environmental
Expert, Construction Document Controller, Quality Assurance Expert.
Fifteen Operations positions were filled in Year 2, including two Procurement, one Grants, two
M&E, one Finance, one HR, and other administrative staff members. The team also hired a highly
experienced DCOP of Operations in November 2019 to accelerate Activity operations.
COVID-19 ADAPTATION AND MITIGATION MEASURES
During Year 2, the ERA senior management team developed security protocols for ERA staff to
respond effectively to the COVID-19 pandemic. These protocols enhanced staff safety, addressed
the dynamic health situation in Ukraine, and supported Activity continuity in light of this threat.
ERA constantly monitored the risks to the Activity and its personnel presented by the COVID-19
threat during Year 2. The team obtained information from the Ukrainian Ministry of Health, the
Centers for Disease Control website, DAI Global LLC resources, and Ukrainian employees at
Activity locations.
ERA developed the Activity continuity plan during Year 2 that allowed ERA staff to adapt to the
current situation, maintain an adequate level of safety, and still achieve the Activity’s goals of
boosting the economic resilience of eastern Ukraine. ERA’s overall approach in conducting business
operations during the COVID-19 pandemic was to take an incremental and gradual approach that
Sievierodonetsk and Mariupol, Local Produce Realization Specialist;
59 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
corresponds to, and carefully tracks, the Government of Ukraine’s Five-Stage Plan for Exiting the
Quarantine and Removal of Restrictions, as shown in the table below.
Table 4. GoU FIVE-STAGE PLAN
Throughout these stages, ERA remained vigilant about the health and safety of all staff, regardless of
nationality or location. We followed the GoU’s public health agency best practices and
recommended that all staff engage in everyday preventive measures to lessen the spread of germs
and avoid illness.
In addition to the Activity continuity plan, ERA developed safety and security protocols to mitigate
risks to Activity implementation during the COVID-19 pandemic, including:
• ERA Travel Approval Request (Safety Planning Record). This request form documents the
potential risks that ERA staff may encounter during their travels and creates a plan for
mitigating those risks.
• Guidance on Mass Gatherings for events of 10 or more people. Organizers of ERA and ERA-
financed events determined how to safely hold the event and adjust to local circumstances.
Because COVID-19 circulation varied in communities, these considerations were meant to
supplement national health and safety laws, rules and regulations with which gatherings must
comply. That said, we continued to hold as many meetings and events online as possible.
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 60
X. SUB-AWARD DETAILS
During the reporting year, the Activity released RFA to increase access to inputs for beekeeping
SMEs in Luhansk, Donetsk and Zaporizhzhia Oblasts. Published on July 17, 2020 with the closing date
on July 31, 2020, the RFA proposes an intervention to make key honey production inputs (hives,
barrels, trailers) available to beekeepers at a 30% discount. This will stimulate small beekeepers to
expand the size of their apiaries to a more economically sustainable scale and will strengthen market
relations between beekeepers and input manufacturers. ERA received five applications in response
to this RFA. Four applications were selected by the Evaluation Committee for further development
and funding. The ERA team has started grants packages development with the selected applicants.
Starting from spring 2020, the ERA team worked with its grantees and grant applicants to plan
approved and future interventions in response to COVID-19. The grantees and the ERA team had to
revise the approach to holding in-person meetings and events. Events that were scheduled for large
groups of participants had to be divided into smaller groups. Some grantees also proposed online
participation in events along with in-person participation for small groups. For all events that
envisioned 10 or more in-person participants, the grantees prepared a thorough package of
documentation, including a COVID-19 Mass Gathering risk assessment with a risk mitigation plan
and anti-epidemic measures that the grantee will implement during the events. The ERA team
reviewed and approved each grantee’s request for in-person events for groups of 10 or more people
before they took place.
FIGURE 5. CUMULATIVE OBLIGATED AMOUNT OF GRANTS BY MONTHS
The pandemic and quarantine led to delay in some procurements under in-kind grants, and
cancellation of planned travel and some activities planned under all ERA grant types. Given these
circumstances, some grantees requested ERA process no-cost time extensions to their ERA grants.
ERA signed 13 amendments to grant agreements to extend the grants’ period of performance or/and
change the modality of some activities (negligible program changes), namely:
1. Amendment #1 to grant agreement G-Kra-002 "Promotion of MSMEs from Donetsk and
Luhansk Oblasts via the development of e-commerce and usage of online trading platforms".
Grantee Non-Governmental Organization "Ukrainian Center for Civic Initiatives "Svitlo".
$1,1
42,3
93
$1,1
49,8
36
$1,2
03,5
51
$1,6
78,3
01
$2,0
45,0
85
$2,3
89,6
66
$2,7
91,5
28
$3,2
19,0
09
$3,4
94,3
89
$3,6
04,1
95
$4,2
72,9
12
Oct
-19
Nov-
19
Dec-
19
Jan-2
0
Feb-2
0
Mar
-20
Apr-
20
May
-20
Jun-2
0
Jul-20
Aug-
20
Sep-2
0
61 | ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT USAID.GOV
2. Amendment #1 to grant agreement G-Kra-004 “Economic opportunities for women of
Eastern Ukraine”. Grantee ICF "Ukrainian Women's Fund".
3. Amendment #1 to grant agreement G-Kra-009 “1991 Mariupol”. Grantee Public
Organization “SOCIAL BOOST”.
4. Amendment #1 to grant agreement G-Kra-011 “Ukrainian Leadership Academy-Mariupol”.
Grantee NGO “Ukrainian Leadership Academy”.
5. Amendment #1 to grant agreement G-Kra-010. Grantee online system for monitoring
pesticide application “Grand Expert”.
6. Amendment #1 to grant agreement G-Kra-015 “IT Nation”. Grantee Public Association
"Global Compact Network in Ukraine".
8. Amendment #1 to grant agreement G-Kra-006 "Automatization and modernization of
9. Amendment #1 to grant agreement G-Kra-014 "Expansion of sewing production". Grantee
10. Amendment #1 to grant agreement G-Kra-017 “Enhancing students' practical competence
skills through modernization of lyceum's equipment”. Grantee Velykonovosilkivskyi
Vocational Lyceum.
11. Amendment #2 to grant agreement G-Kra-004 “Economic opportunities for women of
Eastern Ukraine”. Grantee ICF "Ukrainian Women's Fund".
12. Amendment #1 to grant agreement G-Kra-013 “Modernization of the work clothes atelier”.
13. Amendment #1 to grant agreement G-Kra-018 “Improvement of healthcare services for the
The full list of 42 grants approved by USAID during Year 2 of the Activity’s implementation can be
found in Annex 2.
By the end of Year 2, several other grant applications were under development or pending USAID
approval, including:
• NGO Azov Development grant, submitted to USAID for review/approval on September 21,
2020, to enable a supportive environment for non-educated youth and the LGBTQI
community of Mariupol for safe self-improvement in creative industries and further
integration into city life ($163,737)
• NGO Slavic Heart grant to reduce social and economic dependency of gender-based
violence (GBV) survivors on their abusers through implementation of a comprehensive
approach on socio-economic assistance to GBV survivors in Kostiantynivka and Druzhkivka
(Donetsk Oblast); to build the capacity of municipal bodies to help them adapt their
approach when working with GBV survivors (approx. $165,691)
• NGO Ukrainian Leadership Academy grant to strengthen the capability of the Ukrainian
Leadership Academy to engage local youth in social and civic activities, teach them life skills,
and help them develop their professional careers in the region (approx. $156,641)
7. Amendment #1 to grant agreement G-Kra-007 “Moko pizza”. Grantee Private Entrepreneur.
sewing company". Grantee Private Entrepreneur.
Private Entrepreneur.
Grantee Private Entrepreneur.
population of Novopskovskyi Raion of Luhansk Oblast”. Grantee Private Entrepreneur.
• Private Entrepreneur grant to assist private bakery “Tisto” to expand the range and qualityof its bakery goods through implementation of the food safety system Hazard Analysisand Critical Control Points (HACCP) and using modern equipment in the foodproduction process (approx. $16,017)
USAID.GOV ECONOMIC RESILIENCE ACTIVITY FY 2020 ANNUAL REPORT | 62
In August 2020 ERA received a funded add-on to the ERA contract. As a result, $500,000 has been
added to the ERA Grants Fund (bringing the grant ceiling to $15,500,000) to fund some parts of new
COVID-19 Response Activities.
The following tables present the Awards and Obligation status of ERA grants component as of
September 30, 2020, and a summary of the ERA Grants Pipeline.
Table 5. AWARDS AND OBLIGATIONS STATUS
Completed/Closed Grants 5 $284,433
Awarded/ In Progress Grants 45 $4,637,990
Total Obligated Amount 50 $4,922,423
Total Amount Liquidated - $1,647,834
Unliquidated Balance $3,274,589
ERA Grant Fund Unobligated Balance $10,577,577
Table 6. ERA GRANTS PIPELINE SUMMARY FOR YEAR 2
# Amount
Identified Current Grant Priorities 17 $1,732,862
Future Grant Opportunities 61 $7,026,423
Subtotal: Identified Current Priorities + Future Opportunities 81 $8,759,285
Available funding for future TBD grants activities $1,818,292
Sub-total: Identified + TBD Future Grants $10,577,577
TOTAL: Obligated + Identified + Future TBD $15,500,0004
4 $15,500,00 = $4,922,432 (Obligated from Table 5) + $8,759,285 (Identified Grants from Table 6) +
$1,818,292 (Future TBD from Table 6)
• Private Entrepreneur grant to improve the quality and expand the range of servicesprovided by the veterinary clinic “White Bear” through procurement of additionaldiagnostic equipment (approx. $31,096).