water for agri sector

108 Pages·2017·3.91 MB·English

WATER FOR AGRI SECTOR

FINAL REPORT
JANUARY 22, 2015 – APRIL 20, 2017

Kyiv
This publication was produced for review by the United States Agency for International Development.
It was prepared by the SWASADRO project implemented by AMDI in Ukraine.
SUSTAINABLE WATER SUPPLY FOR
AGRICULTURE DEVELOPMENT
ROLL-OUT (SWaSADRO) PROJECT

Final report January 22, 2015 to April 20, 2017

Cooperative Agreement No. AID-12 l-A-15-00002

June 2017
The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for
International Development or the United States Government.

Sustainable Water Supply for Agriculture Development Roll-Out Project Final Report 2
CONTENTS

LIST OF ABBREVIATIONS ............................................................................................................ 4
OVERALL DESCRIPTION OF THE ACTIVITIES ...................... Error! Bookmark not defined.
COST-SHARING ............................................................................................................................... 9
ENVIRONMENTAL COMPLIANCE ............................................................................................. 9
CAPACITY BUILDING PLAN ........................................................................................................ 9
ATTACHMENTS ............................................................................................................................. 10

1. Performance Monitoring and Evaluation Plan (PMEP)
2. Cost-Sharing Matrix
3. Capacity Building Report
4. Media report
5. Methodical Recommendations of Implementing public-private partnership models of water
supply
6. Training "Restore and reconstruction of municipal water supply systems. Management and
exploitation of communal and social infrastructure". Agenda, Participants List
7. Success Stories

Sustainable Water Supply for Agriculture Development Roll-Out Project Final Report 3
LIST OF ABBREVIATIONS

ALLC Agricultural Limited Liability Company
AMDI Agrarian Markets Development Institute
APC Agricultural Production Cooperative
ASC Agricultural Servicing Cooperative
BEO Bureau Environmental Officer
CFBE Cooperative Farmer Business Entity
EMMP Environmental Mitigation and Monitoring Plan
ERC Environmental Review Checklist
FE Farm Enterprise
FY Fiscal Year
IFI International Financing Institutions
KHOSA Kherson Oblast State Administration
LFI Local Financing Institutions
LLC Limited Liability Company
МЕO Mission Environmental Officer
MOC Memorandum of Cooperation
PAE Production Agrarian Enterprise
PE Private Entrepreneur
PFI Private Financing Institutions
PMEP Performance Monitoring and Evaluation Plan
PPD Public Private Dialogue
PPP Public Private Partnership
SOW Scope of Work
SWaSAD Sustainable Water Supply For Agriculture Development
SWaSADRO Sustainable Water Supply For Agriculture Development Roll-Out
v. Village
WP Work Plan

Sustainable Water Supply for Agriculture Development Roll-Out Project Final Report 4
SUMMARY

AMDI signed a Cooperative Agreement with USAID on January 22, 2015 for implementation of
the SWaSADRO project with the end date January 21, 2017. In December 2016, the project was
extended from January 21, 2017 till April 20, 2017 to: 1) provide technical and logistical support to
the Coordination Council on Rehabilitation and Development of Irrigation Systems created under
the Cabinet of Ministers of Ukraine and 2) assist a Regional Training Center in Kherson to register
as a local NGO.
Based on the SWaSAD project lessons learned, the project team developed evaluation criteria for
selection of sites and an application form.
A selection commission was established by the order of the Head of the Department of Agricultural
Development of the Kherson Oblast State Administration as of March 16, 2015 “On Working
Group on issues related to implementation of the USAID’s project Water for agri sector in Kherson
oblast.” On March 25, 2015, AMDI announced a competition for selection of pilot projects. By the
competition deadline, the project received 23 application forms from 12 rayons of Kherson oblast.
Four projects in Novotroitsky, Berislav, Genichesk and Vysokopillya rayons were identified for the
first year of implementation and two in Hola Prystan and Novotroitsky rayons for the second year.

For the site in Burgunka village, Beryslav raion the project purchased water pipes, while a local
partner – Burgunske farm – developed project design documentation, laid 6.7 kilometers of pipes
and tested the network operation. This activity made it possible to increase an irrigated area by 430
hectares and 30 additional jobs. The Burgunske Dzhereltse Servicing Cooperative, which is
responsible for operation and maintenance of the new irrigation system, was established on the base
of the Burgunske farm. In total, almost 1,200 people (farmers and shareholders, their families and
employees) benefited from this activity. Success Story “New Water Supply Pipeline is the Revival
of Drip Irrigation in Kherson region” is presented in Attachment 7.

For the site in Chkalove village, Novotroitsky rayon, the project purchased water pipes, while a
local partner – farm enterprise Daniil & SD – laid pipes and connected the pipeline to the existing
water supply network and subsequently to the canal of the Kakhovka irrigation system. This activity
made it possible to increase an irrigated area by 207 hectares, which will increase the production of
vegetables, melons and gourd. Beneficiaries: 1,200 people (farmers, village residents and their
families). Success Story “A New Irrigation System Increases Harvests by Four Times” is presented
in Attachment 7.

For the site in Pavlivka village, Genichesk rayon, the project purchased water pipes, while a local
partner - Agro-Spivdruzhnist Ltd. - laid pipes, connected the new pipelines to the existing one, laid
from the water pumping station and installed eight sprinkling machines. This activity made it
possible to increase an irrigated area by 429 hectares. Beneficiaries: almost 2,000 people (farmers
and shareholders, their families and employees). Results of this activity include increase of
profitability of agricultural activities and increase in number of jobs for residents; scale up of the
revenues of shareholders due to increased land plots value and the Pavlivka village council due to
the taxes collection. Also, the Spivdruzhnist-Pavlivka Servicing Cooperative, which is responsible
for operation and maintenance of the new irrigation system, was created on the base of the Agro-
Spivdruzhnist Ltd.

For the site in Vysokopillya urban village, Vysokopillya rayon, the project purchased water pipes,
related parts (flanges, plugs, valves, etc.) and equipment for the water treatment unit, while a local
partner - Vysokopillya village council - laid down pipes and connected them to the existing artesian
well, and tested the network operation. This activity provided access to the uninterruptible drinking
Sustainable Water Supply for Agriculture Development Roll-Out Project Final Report 5
water for 961 people of Vysokopillya village. Success Story “Drinking Water Is No Longer a
Luxury for the Villagers of Vysokopillya” is presented in Attachment 7.

For the site in Chulakivka village, Hola Prystan rayon, the project purchased water pipes while a
local partner - Adelaida farm - laid pipes, constructed the water pumping unit, purchased the pump
and installed sprinkling machines of VALLEY type. This activity made it possible to increase an
irrigated area by 279 hectares and create 180 additional jobs. The Borysphen-2016 Servicing
Cooperative, which is responsible for operation and maintenance of the new irrigation system, was
established on the base of the Adelaida farm. All in all, 3,000 people (farmers and shareholders,
their families and employees) benefited from this activity. Success Story “A New Energy-Saving
Irrigation System Decreases Energy Consumption by Four Times” is presented in Attachment 7.

For the site in Hornostaivka village, Novotroitsky rayon, the project purchased water pipes, while a
local partner - agricultural company MYR - laid pipes and installed relevant equipment (valves,
flanges, flanged bushes, and two manholes in places of connection with the existing pipeline).
Reconstruction of the irrigation pipeline helped to create the conditions for uninterrupted irrigation,
increase production of vegetables instead of grain-crops and effectively provide sowing campaign,
thereby increasing the revenues of shareholders due to increased land plots value (up to 50% for a
land plot) and the Hornostaivka village council due to the taxes collection. This activity helped to
create 350 season jobs. 800 people (farmers and shareholders, their families and employees)
benefited from this activity. Success Story “New Water Supply System Provides Farmers with
Uninterrupted Irrigation” given in Attachment 7.

The project provided assistance to three agricultural cooperatives and three village communities in
Kherson oblast by providing training on management of a community infrastructure and effective
use of irrigated land. Also, the project organized a conference and a round table.

Round-table “Models of financing agricultural producers for reconstruction and construction of new
irrigation systems” conducted in Kherson under the Task “Development of financial solutions to
implement sustainable water supply partnerships/cooperatives” on September 29, 2016.The round-
table was attended by the representatives of nine Kherson branches of the banks (Ukreximbank,
Raiffeisen Bank Aval, Kredo Bank, Credit Agricole, Ukrgasbank, Oschadbank, PUMB, Marfin
Bank, Investments and Savings Bank). The Assessment on Commercial Financing Options for
Water Supply Projects was presented. The participants also discussed methodology, implementation
and results of the SWaSADRO project, principles of management of water resources and formation
of water tariffs. The representatives of the banks provided information on existing programs of
crediting agricultural producers.

On December 22, 2016 the project summarized the results of its two-year activity in Kherson oblast
and held a final conference "Water for the Agricultural Sector, Methodology, Outcomes and
Prospects." The event was attended by representatives of the departments of Kherson regional state
administration, local communities, researchers and partners. Eight success stories of reconstruction
and modernization of irrigation systems, a study tour to California, an opened training center - this
success was made possible due to a close cooperation with the Department of Agriculture of
Kherson Regional State Administration, local authorities and agricultural producers. The
participants (about 50 people) expressed their gratitude to the project and a hope to cooperate in the
future.

In November 2016, the project created a Training Center at the Kherson State Agricultural
University to disseminate the project’s results and best practices to a broad array of local
stakeholders. On March 16, 2017, the project registered the Training Center as an Innovative
Agrarian Technology Center NGO to ensure it sustainability after the project ends.

Sustainable Water Supply for Agriculture Development Roll-Out Project Final Report 6
On April 11, 2017, the project team organized an official introduction of an Innovative Agrarian
Technologies Center NGO with participation of the USAID/Ukraine Deputy Mission Director John
Pennell. The press-coverage of the event is presented in the Media Report (see Attachment 4).

During the project implementation, the project team provided logistics support to the Ministry of
Ag Policy and Food in the Irrigation Strategy development process and actively participated in the
working groups meetings on the Strategy development. This work was carried out in close
cooperation with experts of the World Bank, stakeholders at national and regional levels in Ukraine.

After the SWaSADRO project completion, USAID’s Agriculture for Rural Development Project
will continue this work.

On April 11, 2017, the project staff conducted training “Restoration and Reconstruction of
Municipal Water Supply Systems. Management and Exploitation of Communal and Social
Infrastructure” for 17 representatives of regional authorities, teaching staff and students. The
training was held at the Regional Training Center based at the Kherson State Agricultural
University (See Attachment 6).

The Methodological Recommendations of Implementing Public-Private Partnership Models of
Water Supply (See Attachment 5) developed under the Task 3 “Mobilize and establish rural
community commitment and engagement in water resource management by sustainable community
ownership of water resource provision and management” was published and disseminated to the
training participants.

Cumulative results of the project work (2015-2017) towards achieving the project’s goal and
objectives are the following:
• Six water supply improvement sites are put into operation
• Twenty-two km of pipes are laid
• More than 9,000 villagers have improved access to water and 1,926 hectares of additional
irrigated land
• More than 300 people are trained on management of a community infrastructure and
effective use of irrigated land, and methods of formation and approval of water tariffs
(including 129 men and 180 women)
• Three cooperatives, created with the project’s assistance, received legal, methodological and
technical assistance
• The project leveraged $371,159.59 as a cost-share from the local partners
• The Regional Training Center at the Kherson State Agricultural University is created and
the Innovative Agrarian Technology Center NGO is registered
• Twenty training seminars conducted with 309 people trained.

The PMEP (Attachment 1, table 1) presents a detailed description of key performance indicators
used to track progress toward the strategic objectives of the project. Table 2 of the PMEP presents
indicators’ data.

The indicator “Number of people with increased economic benefits derived from sustainable
watershed management as a result of USG assistance” (number of people as % of population in
targeted area) is exceeded by the end of the project (10,45% against planned 9%), due to
implementation of six sites in the Beryslav rayon (almost 1,200 people), Genichesky rayon (almost
2,000 people), Novotroitsky rayon (2,000 people), Vysokopillya rayon (961 people), Hola Prystan
rayon (3,000 people) of Kherson oblast. In total, almost 9,161 farmers and shareholders, their
families and employees benefited from the project activities.

Sustainable Water Supply for Agriculture Development Roll-Out Project Final Report 7
The indicator “Number of hectares under improved technologies or management practices as a
result of USG assistance” (number of hectares) is exceeded by the end of the project (target – 1,310
hectares; result – 1,926 hectares). Implementation of five sites in Kherson oblast allowed to irrigate
additional 1,926 hectares of agricultural land (430 hectares in Burgunka village of Beryslav rayon,
429 hectares in Pavlivka village of Genichesky rayon, 207 hectares in Chkalove village and 580
hectares in Hornostaivka village of Novotroitsky rayon, and 279 hectares in Chulakivka village of
Hola Prystan rayon).

The indicator “Number of people with improved access to drinking water” (number of people as %
of population in targeted areas) is met (target – 6%, result – 6%) due to implementation of the site
in Vysokopillya urban village, Vysokopillya rayon of Kherson Oblast, where the project laid 8,3 km
of a potable water supply pipeline and connected it to the existing artesian well, thus providing
access to drinking water for 961 people of Vysokopillya urban village.

The indicator “Number of producers organizations, water users associations and community-based
organizations (CBOs) receiving USG assistance” is practically met (target - 7, result - 6). The
project provided assistance to three (3) communities mobilized within the SWASAD project and
three (3) water management cooperatives created within SWaSADRO project in Burgunka village
of Beryslav rayon, Pavlivka village of Genichesky rayon and Chulakivka village of Hola Prystan
rayon of Kherson oblast. It was planned to create a water management cooperative in Hornostaivka
village, Novotroitsky rayon, but due to establishment of united territorial local communities as a
part of decentralization reform in Ukraine, it was decided to create a cooperative in Hornostaivka
village later.

The indicator “Number of PPD meetings facilitated and issued tackled as a result of USG
assistance. Number of participants” (Number of meetings; people in hundreds) is exceeded by the
end of the project (target – 12 meetings, 145 participants, result – 20 meetings, 309 participants).
During the project implementation, 309 participants (129 male and 180 female) took part in 20
meetings against planned 145 participants. Due to increased demand and high public interest to the
issues discussed at the meetings, it was decided to conduct additional meetings, thereby increasing
the number of participants.

Overall, the project accomplished planned tasks.
AMDI determined key issues and problems that emerged during the project implementation as
follows:
• costly, complicated, and unclear procedures for getting licenses and permits for new
construction, extraction and use of ground water limited activities to renovation ones only;
• bureaucratic delays in decision making at the local level sometimes delayed start-up of
activities;
• lack of knowledge of the local authorities in presenting proposals for improvements and
extended selection process;
• reluctance of some village councils to handover a water supply system to community
organizations and community-based enterprises;
• difficulties faced by community-based enterprises in registering themselves as an enterprises
that deliver public services;
• low creditworthiness of communal utilities and needs of additional collateral for access to
finance;
• lack of information on land ownership and/or registration of water infrastructure
improvements for permit systems at the level of communities and even rayons; and
• lack of the adequately designed and enforced water tariff system, including administering of
tariffs for low-income population and other special categories.

Sustainable Water Supply for Agriculture Development Roll-Out Project Final Report 8
The project team addressed these challenges as much as it could. AMDI experts on constant basis
provided advisory, methodological and practical assistance to local communities on preparation and
endorsement of Detailed Technical Design documentation, and creation and registration of
cooperatives and community-based organizations. The project team conducted training seminars on
water management and methods of formation and approval of water tariffs; as well as conducted
frequent monitoring visits to assure local partners fulfill their obligations, etc.

AMDI would like to suggest that future projects in this area should be long-term (three to five
years). USAID may want to offer new projects in such areas: economic growth by improved
agrarian policy leading to better farming and sales; better public-private and agrarian policy agenda
development leading to improved legislative and policy environment; improved citizen oversight
and engagement in governance processes and better life conditions leading to an improved social
environment.

COST-SHARING

The project team monitored cost-share contributions on a regular basis.

On April 22, 2016, on the project request, an Administrative Modification of the award was signed
to finalize a list of local partners and their cost-share contribution. The project local partners’
contribution is calculated as per the official exchange rate of the National Bank of Ukraine on the
date of the award signature (January 22, 2015) and is - US $1 amounts to UAH 15.77. Planned co-
financing according to the award is $225,226.00.

As of April 20, 2017, the cost-share contribution is $381,670.59 or 169% of the planned
($225,226.00). According to the tender documents, USAID funds spent for the six sites totals
$492,245.34. (see Attachment 2).

ENVIRONMENTAL COMPLIANCE

Per E3-14-39 and DCN: 2016-UKR-008, the project prepared an Environmental Review Checklist
(ERC) and Environmental Monitoring and Mitigation Plan (EMMP) for each project site and got
USAID Agreement Officer Representative (AOR), Mission Environmental Officer (MEO) and
Bureau Environmental Officer (BEO) approvals prior to the works at any site. Per A.11.1 clause of
the award, the activities at the sites were monitored on a regular basis; local partners conducted
works in accordance with approved ERCs/EMMPs.

AOR visited project sites for environmental compliance and monitoring the project activities.

CAPACITY BUILDING PLAN

AMDI capacity building plan is fulfilled completely. The plan included courses on English
language proficiency, USAID Rules and Regulations, capacity building, financial management and
participation in an international conference (see Attachment 3).

Sustainable Water Supply for Agriculture Development Roll-Out Project Final Report 9
ATTACHMENTS
Sustainable Water Supply for Agriculture Development Roll-Out Project Final Report 10