Evaluation of the Livelihood Support Projects (Enterprise II and Alternative Livelihood Project)

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Evaluation Plan:
2012-2016, Mongolia
Evaluation Type:
Final Project
Planned End Date:
12/2012
Completion Date:
12/2012
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
15,000

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Title Evaluation of the Livelihood Support Projects (Enterprise II and Alternative Livelihood Project)
Atlas Project Number: 00063219
Evaluation Plan: 2012-2016, Mongolia
Evaluation Type: Final Project
Status: Completed
Completion Date: 12/2012
Planned End Date: 12/2012
Management Response: Yes
Focus Area:
  • 1. Poverty and MDG
Corporate Outcome and Output (UNDP Strategic Plan 2014-2017)
  • 1. Inclusive growth and social equity promoted through pro-poor macroeconomic and fiscal policies that support income, employment and social protection of youth, women and vulnerable groups in a sustainable way
  • 2. Policies, strategies and partnerships established to enhance public-private sector collaboration and private sector and market development that benefit the poor and ensure that low-income households and small enterprises have access to a broad range of financial and legal services
Evaluation Budget(US $): 15,000
Source of Funding:
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Roy Thomson
GEF Evaluation: No
Key Stakeholders: Ministry of Labour, Ministry of Industry and Agriculture
Countries: MONGOLIA
Lessons
Findings
Recommendations
1 Both the EMP and ALP initiatives have provided valuable lessons for support to livelihoods diversity, and support should be continued in a more unifies strategic plan under an umbrella rural households livelihoods diversification project.
2 Continue with the initiatives to increase human capital through specific training in improving technical skills and in business training including accessing markets. Continue exposing participants to Aimag, UB and overseas trade fairs, with emphasis on UB trade fairs to expand domestic networks between inputs suppliers and entrepreneurs as well as buyers.
3 Livestock husbandry enterprises and associated enterprises, including fodder production, should be included in future programmes in an integrated approach that addresses the entire range of enterprises in the household and group economies. This should include further support to on-going efforts of SLM project and other parallel initiatives to promote greater intensification of livestock production, with higher productivity of dairy animals, and the correct mix of the five animal groups. The integration of the herding enterprises into future initiatives can either be achieved through an integrated programme or by synchronizing programmes such as SLM with follow-on EMP initiatives, so that both work with the same target beneficiaries in the same target areas.
4 Discontinue subsidized credit and contract with a minimum of two banks such as Khan Bank and Khas Bank, to provide leasing products at commercial rates to participants over periods of up to three years, on plant and equipment, including vegetable storage.
5 Calculate the Return on Capital Employed (RoCE) fro greenhouses and provides that the financial and economic appraisal is favourable (as expected), promote the increased uptake by groups, to extend the growing season for vegetables and possibly fodder as a cash crop. Promote the construction of effective winter animal shelters in conjunction with programmes that provide incentives for herders to reduce the quantity and increase the quality of their animals, while maintaining an optimum mix of animals.
6 Continue to promote group formation and the OVOP initiatives, and provided that there is an enabling environment, promote the transition from informal to more formal groups, including cooperatives and Savings and Credit Cooperative Organizations. The contracts with Banks should be developed to promote loans to groups as an entity using leasing products, further encouraging incentives for cooperation and incorporation of groups.
7 Efficiency of operations ? Within UNDP the M&E support activities across projects to promote improved coordination between projects and greater rationalization of programmes.
8 Efficiency of operations ?Remove aimags with few beneficiaries and focus on fewer aimags where other donor agencies are seen to be scarce. This requires a spatial mapping of donors which in of itself will be a worthwhile activity and contribution to the GoM and the donor community.
9 Efficiency of operations ?Integrate the activities of the current SLMP with those of the EMP by focusing on the soums of SLMP as a first priority.
10 Efficiency of operations ? Consider creating an umbrella project, rural households livelihood diversification prorgamme that integrates existing projects into a more coherent strategic programme.
11 Efficiency of operations ? Promote not only donor coordination but integrated and joint programming of donors, the first stage being UN agencies, UNDP, FAO, ILO, UNIDO and the second stage with other donors working in sustainable land management and enterprise development.
12 Efficiency of operations ? Consider focusing on programmes targeted at those recent immigrants from the rural areas to UB. Focusing on target beneficiaries in UB would certainly be more efficient given the likely resources available for a new initiative.
1. Recommendation: Both the EMP and ALP initiatives have provided valuable lessons for support to livelihoods diversity, and support should be continued in a more unifies strategic plan under an umbrella rural households livelihoods diversification project.
Management Response: [Added: 2013/12/30]

Recommendation is taken. Follow-up action planned and implemented

Key Actions:

Key Action Responsible DueDate Status Comments Documents
To organize a National Workshop on SME development and Rural Livelihood Diversification in collaboration with National Counterparts to introduce evaluation recommendations and lessons learned of EMP-2 and ALP projects and their outcomes. To make policy recommendations to reflect on Government policy.
[Added: 2013/12/30]
EMP-2 and ALP projects, UNDP, Ministry of Labour, Ministry of Industry and Agriculture, and project target aimags and soums Governors? Offices 2013/03 Completed The overall goal of the National Workshop was to promote national debates among all stakeholders through meaningful exchange of experiences and lessons learned in the stable entrepreneurship by small and medium enterprises and building capacity for production of competitive products, diversifying livelihood sources of herder household and provide evidence based recommendations in line with the country?s relevant policies and programmes. Under the overall goal, the following specific objectives and outputs were accomplished: ? Shared findings of evaluation of the livelihood support projects, EMP-2 and ALP and review of policies and regulations related to SMEs and OVOP programme; ? Shared experiences and information of the UNDP and other development partner projects; ? Promoted open discussions among over 150 stakeholders about challenges, risks, spare capacity and opportunities in rural livelihood diversification and SME development and produce policy recommendations; ? Raised public awareness of rural livelihood and small business development. The national Workshop participants made recommendations in developing SME and livelihood diversification in rural areas, such as (a) strengthen legal environment to promote SME development, including improvement of Law on SME, Law on VAT, Law on Income Tax; (b) enforce implementing of newly approved Law on Credit Guarantee Fund; (c) support SMEs trough implementing ?Development of rural areas by Local Brand product? Government programme; (d) support Sales chain of SME products; (e) enhance capacity building of SMEs; (f) improve policy and regulatory framework on SME development; (g) develop and Implement product standards.
2. Recommendation: Continue with the initiatives to increase human capital through specific training in improving technical skills and in business training including accessing markets. Continue exposing participants to Aimag, UB and overseas trade fairs, with emphasis on UB trade fairs to expand domestic networks between inputs suppliers and entrepreneurs as well as buyers.
Management Response: [Added: 2013/12/30] [Last Updated: 2013/12/30]

Recommendation is taken. Follow-up action planned and implemented

Key Actions:

Key Action Responsible DueDate Status Comments Documents
? Support project beneficiaries to participate in National Lunar New Year Trade Fair in UB ? Assist with capacity building activities for rural business entrepreneurs to establish business entities. ? Assist in liaison to local chamber offices in enrollment to membership of business entities. ? Assist in liaison to local governance to enable beneficiaries to attend in specific training and local trade fairs.
[Added: 2013/12/30]
EMP-2 and ALP projects, UNDP and Ministry of Labor 2013/03 Completed ? Over 40 beneficiaries of EMP-2 and ALP projects participated in the Lunar New Year Trade Fair introducing their locally-made products to capital city residents. ? 20 new business entities, including 7 cooperatives, 5 partnerships and 8 LLCs have been newly established by EMP-2 project beneficiaries? initiatives. ? Approximately 500 project beneficiaries participated in 54 trade fairs and made sales worth than USD170, 000. ? 540 micro and small entrepreneurs attended business development and vocational trainings. ? Clusters under the OVOPI registered as business entities enrolled to MNCCI as members. It enables them to receive some opportunity to cooperate with overseas and local companies, discounts on their participation in the exhibitions organized by the Chamber and other benefits.
3. Recommendation: Livestock husbandry enterprises and associated enterprises, including fodder production, should be included in future programmes in an integrated approach that addresses the entire range of enterprises in the household and group economies. This should include further support to on-going efforts of SLM project and other parallel initiatives to promote greater intensification of livestock production, with higher productivity of dairy animals, and the correct mix of the five animal groups. The integration of the herding enterprises into future initiatives can either be achieved through an integrated programme or by synchronizing programmes such as SLM with follow-on EMP initiatives, so that both work with the same target beneficiaries in the same target areas.
Management Response: [Added: 2013/12/30]

recommendation taken

Key Actions:

Key Action Responsible DueDate Status Comments Documents
International Consultant to develop a concept note on SME and Rural Development
[Added: 2013/12/30]
UNDP No due date No deadline established
4. Recommendation: Discontinue subsidized credit and contract with a minimum of two banks such as Khan Bank and Khas Bank, to provide leasing products at commercial rates to participants over periods of up to three years, on plant and equipment, including vegetable storage.
Management Response: [Added: 2013/12/30]

Recommendation is taken. Follow-up action planned and implemented UNDP HQ advised also to discontinue the credit grant.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Khan bank was notified that the LGF deposited at the bank released from any obligation to repay funds, noted that the funds shall be utilized the similar purpose.
[Added: 2013/12/30]
UNDP 2013/07 Completed Since the establishment of Loan Guarantee Fund, EMP in Khan Bank, a total of 83 beneficiaries received business loans through the LGF. Out of them: ? 53% purchased machinery, equipment & tools ? 22% purchased greenhouse, irrigation system, well and built storage ? 12% purchased milking cows ? 10% purchased auto vehicles; tractors, truck and cars for taxi service ? 6% built work premise Grant Agreement expired on December 31, 2012 and the deposited fund was supposed to be transferred to Khan Bank to utilize for similar purpose. The Mongolian Credit Guarantee Fund (MCGF) is a public non-profit financial institution established on 6th November 2012 under the provisions of the Law of Credit Guarantee Fund. The vision of MCGF is to lead to the balanced development of the national economy by extending credit guarantees for the liabilities of promising SMEs which lack tangible collateral to secure financing. On May-July, 2013 the Fund contracted with Khan bank, Golomt bank and Capital bank to deliver credit guarantee to SMEs who lack tangible collateral for external financing. By this contract, SMEs who lack collateral for external financing would, if applicable, be able to receive a credit guarantee of up to 60 % of their loan by submitting a guarantee application to branches of the banks in both the countryside and city branches.
5. Recommendation: Calculate the Return on Capital Employed (RoCE) fro greenhouses and provides that the financial and economic appraisal is favourable (as expected), promote the increased uptake by groups, to extend the growing season for vegetables and possibly fodder as a cash crop. Promote the construction of effective winter animal shelters in conjunction with programmes that provide incentives for herders to reduce the quantity and increase the quality of their animals, while maintaining an optimum mix of animals.
Management Response: [Added: 2013/12/30]

The recommendation is more related to issue is covered under ALP project. With closure of the both projects, it?s not possible to take actions in this regards. However, the recommendation will be considered in formulation of new project or programme.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
No actions planned under ALP
[Added: 2013/12/30]
n.a No due date No deadline established Greenhouses, iron fences to protect fodder and vegetable growing field and drip irrigation systems were purchased for ALP project beneficiaries to promote vegetable and fodder growing activity. In regards of project closure by June, 2013 the above mentioned equipment was transferred to the seven project target soum Governor?s Administrators? Offices for further maintenance.
6. Recommendation: Continue to promote group formation and the OVOP initiatives, and provided that there is an enabling environment, promote the transition from informal to more formal groups, including cooperatives and Savings and Credit Cooperative Organizations. The contracts with Banks should be developed to promote loans to groups as an entity using leasing products, further encouraging incentives for cooperation and incorporation of groups.
Management Response: [Added: 2013/12/30]

Recommendation is taken. Follow-up action planned and implemented

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Support group formation and promote transition from informal to more formal groups through EMCs
[Added: 2013/12/30]
EMP-2 2013/05 Completed ? During the implementation of EMP-2 project, 20 business clusters have become registered entities including cooperatives, partnerships and limited liability companies. By entering the formal business sector, access to public and private business development services, particularly financial programmes have increased. ? Clusters under the OVOPI registered as business entities enrolled to MNCCI as members. It enables them to receive some opportunity to cooperate with overseas and local companies, discounts on their participation in the exhibitions organized by the Chamber and other benefits. ? On May-July, 2013 the Mongolian Credit Guarantee Fund contracted with Khan bank, Golomt bank and Capital bank to deliver credit guarantee to SMEs who lack tangible collateral for external financing. By this contract, SMEs who lack collateral for external financing would, if applicable, be able to receive a credit guarantee of up to 60 % of their loan by submitting a guarantee application to branches of the banks in both the countryside and city branches.
7. Recommendation: Efficiency of operations ? Within UNDP the M&E support activities across projects to promote improved coordination between projects and greater rationalization of programmes.
Management Response: [Added: 2013/12/30]

Recommendation is taken. Actions are planned

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Ensure management responses to Evaluation recommendations are consulted and discussed among staff and shared with other projects if deemed necessary. Provide trainings on M&E and individual consultations as well as establish a common M&E platform.
[Added: 2013/12/30]
UNDP Programme team and M&E Analyst No due date No deadline established On-going. Trainings conducted
8. Recommendation: Efficiency of operations ?Remove aimags with few beneficiaries and focus on fewer aimags where other donor agencies are seen to be scarce. This requires a spatial mapping of donors which in of itself will be a worthwhile activity and contribution to the GoM and the donor community.
Management Response: [Added: 2013/12/30]

The issue is raised during the Policy Advisory Team meetings and the integration of the projects?s synergies was extensively discussed. UNDP will try to focus on more integrated regional development support.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
- A scoping mission on Aid coordination and Effectiveness in Mongolia is conducted
[Added: 2013/12/30]
UNDP and Government 2013/04 Completed National Counterparts of the projects; Ministry of Labor ?EMP-2 and target soum Governors? Offices-ALP will take over the projects initiated interventions.
9. Recommendation: Efficiency of operations ?Integrate the activities of the current SLMP with those of the EMP by focusing on the soums of SLMP as a first priority.
Management Response: [Added: 2013/12/30]

SLM project is closing end of July. And with the closure of the both EMP II and ALP projects, it?s not possible to implement the recommendation. But recommendation to integrate projects? activities as much and appropriate as possible is taken and will be considered in formulation of new programme/project.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
No actions planned
[Added: 2013/12/30]
na No due date No deadline established
10. Recommendation: Efficiency of operations ? Consider creating an umbrella project, rural households livelihood diversification prorgamme that integrates existing projects into a more coherent strategic programme.
Management Response: [Added: 2013/12/30]

Recommendation is taken. Action planned.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
International Consultant to develop a concept note on SME and Rural Development
[Added: 2013/12/30]
UNDP 2013/08 Completed
11. Recommendation: Efficiency of operations ? Promote not only donor coordination but integrated and joint programming of donors, the first stage being UN agencies, UNDP, FAO, ILO, UNIDO and the second stage with other donors working in sustainable land management and enterprise development.
Management Response: [Added: 2013/12/30]

Recommendation is taken. Action planned

Key Actions:

Key Action Responsible DueDate Status Comments Documents
A scoping mission on Aid coordination and Effectiveness in Mongolia is conducted
[Added: 2013/12/30]
undp 2013/04 Completed
12. Recommendation: Efficiency of operations ? Consider focusing on programmes targeted at those recent immigrants from the rural areas to UB. Focusing on target beneficiaries in UB would certainly be more efficient given the likely resources available for a new initiative.
Management Response: [Added: 2013/12/30]

Recommendation taken.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
A project concept note is developed on Urbanization.
[Added: 2013/12/30]
UNDP and Government No due date No deadline established Based on Poverty Map data-2011 that over 40 percent of the population lives in UB, to consider in future livelihood diversity programs to select UB districts as target beneficiaries.

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