general project - Assogal Toscana
Transcription
general project - Assogal Toscana
This project is funded by the European Union - EC Program TACIS Armenia GENERAL PROJECT ASSOGAL TOSCANA GAL Lunigiana REPORT GENERAL PROJECT REPORT - REDAM II PROJECT The Leader approach methodology, project outputs and qualitative evaluation This document has been produced with the financial assistance of the European Union. “The European Union is made up of 27 Member States who have decided to gradually link together their know-how, resources and destinies. Together, during a period of enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms. The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders. The European Commission is the EU’s executive body”. www.cpadver.it The contents of this document are the sole responsibility of ASSOGAL Toscana, the Regional Development Agency of Vayots Dzor and the Inter Community Union of Vedi and can under no circumstances be regarded as reflecting the position of the European Union REDAM II PROJECT A Regional Network for the promotion of integrated sustainable development in the Regions of Ararat and Vayots Dzor GENERAL PROJECT REPORT The Leader approach methodology, project outputs and qualitative evaluation REDAM II PROJECT A Regional Network for the promotion of integrated sustainable development in the Regions of Ararat and Vayots Dzor Credits Text by: ASSOGAL Toscana F.A.R. Maremma S.c. a r.l. Regional Development Agency of Vayots Dzor (RDA Vayots Dzor) Inter Community Union of Vedi (ICU Vedi) Fondazione Clima e Sostenibilità Mr. Carlo Ricci Photographs: Assogal Toscana Mr. Paolo Grazzini Mr. Carlo Bonazza Special thanks: European Commission Delegation to Armenia Embassy of Italy in Yerevan Tuscany Region, Department for Regional Policies on Innovation and Technology Transfer Ministry of Territorial Administration of the Republic of Armenia Ministry of Economy of the Republic of Armenia Vayots Dzor Regional Government (Marz of Ararat) Ararat Regional Government (Marz of Ararat) UNDP Armenia WWF Armenia Italian National Institute of Agrarian Economy (INEA) Graphic design & layout: C&P Adver Circonvallazione Nord 4 58031 Arcidosso (GR) Italy +39 0564 967139 www.cpadver.it [email protected] Printed in December 2009 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1. The macroeconomic situation in Armenia . . . . . . . . . . . . . . . . . . . . . . 7 1. Macroeconomic Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2. Identification Of Areas Of Intervention . . . . . . . . . . . . . . . . . . . . . . . . . . 13 3. Trade Policy And Market Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 4. Special Operating Policy And Proposals For Action Joint . . . . . . . . . . . 16 6 2. Assogal Toscana and the Local Action Groups . . . . . . . . . . . . . . . . 23 3. The Leader Approach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 1. The Leader approach to rural development: what is it? . . . . . . . . . . . . . 37 8 2. The seven key features of the Leader approach . . . . . . . . . . . . . . . . . 38 3. Implementing Leader at the local level . . . . . . . . . . . . . . . . . . . . . . . . . 42 2 4. Leader in the future: mainstreaming. . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 4. The transfer of the methodology Leader in n Armeni Armenia: nia: rojects. . . . . . . . . . . . . . . . 49 the Local Action Groups and the local projects. Vedi Intercommunity Union (Icu Vedi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 4 Economic Analysis Of The Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 The L.A.G. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 The “REDAM II” Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Activities Realized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 The Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Urban Waste Cycle Management Model . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Establishment of Tourists Visit And Accommodation ation Centre C . . . . . . . . . . . 64 Establishment of Agri-Mechanisation Centre . . . . . . . . . . . . . . . . . . . . . . . 73 d Packaging Packagi kag aging Unit . . . . . . . 80 Establishment of fruit and vegetables Drying and or . . . . . . . . . . . . . . . . . . 89 Regional Development Agency (RDA) Vayots Dzor Description Of Sub Region. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 8 8 Economic Analysis Of The Territory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 The L.A.G. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 The “REDAM II” Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Activities Realized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 The Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Tourism Development and Professional Training Centre (RDA) . . . . . . . . 94 Development of Strategic Planning Capacities in Vayots Dzor And Interon Tourism Regional Cooperation in Vayots Dzor and Ararat Sub-Region Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 5. Monitoring and evaluation: the leaderability assessment . . . . . . . 165 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 .:3:. Introduction The work that has been implemented within the REDAM II Project and all its related considerations take into account the political and social context as well as the geomorphologic aspects of the Armenian territory. Even if Armenia was one of the states belonging to the Soviet bloc, it enjoyed particular conditions from Moscow, because of its dramatic history darkened of Turk Diaspora on 1915-1916. In terms of religion, on the one hand, Armenia has been lightly under pressure: Armenians had the opportunity to exercise their faith in an atheistic system; and on the other hand, they could coexist with a Muslim Armenian part, as Armenia borders with Turkey, Azerbaijan, and Iran, all Muslim countries. The current “Armenian subsistence” - as it is incorrect to refer to an Armenian economy is mainly based on the economic resources issued from remittances of Armenians went out to other states. These funds are mainly used in the construction sector: an effort sustained by the current Armenian Government to organically redesign the Armenian economy inspired mainly on the European model. The reference models are mostly based on the “Made in Italy” clothing and furniture and on the American system as the distribution of goods mechanism. The industries in Armenia are the continuation of the old Soviet enterprises and they are strongly affected by the globalization phenomenon. It is necessary to bear in mind that the Armenian State has not any access to the sea and consequently, its goods are transferred by air or they are forced to pass from Georgia or Iran, since the diplomatic relations between Turkey and Azerbaijan are quite difficult. In this context, the REDAM II Project begins more than a reflection: it conduces to a real experiment, starting from the acquisition of experience within the LEADER program accrued by the Tuscan LAGs Association (Assogal), and initiating a transfer of methodologies and competences to Armenian development agencies. It should be emphasized that the project encountered some difficulties. First of all those ones related to the language and the huge distance that can be overcome only by air; secondly the different cultural background and approach on the administrative and bureaucracy procedures and practices necessary in implementing European projects. Nevertheless, the Project had a significant impact in terms of effectiveness: concrete and tangible micro-projects have been realised so as to structurally replace old plans and programs with innovative and more appropriate choices for the economic and territorial development. If this methodology is deeply acquired as well as a new approach to plan, approve and manage policies; if local stakeholders get sustainable all practices adopted, the Project has achieved its goal and its objectives have been satisfied. .:5:. THE MACROECONOMIC SITUATION IN ARMENIA .:6:. was 13.7%). More specifically, the sector of construction grew of 14%, agriculture 8.1%, services 16.2%. Excluding constructions, the weight of industrial sector of Armenian economy is more and more reducing, passed from 18% in 2006 to 16% in 2007 in relation to total GDP, and having negatively contributed (-0.2%) to the economic performance of the Country in the first half of this year, mainly because of the difficulties faced by the textile and tobacco production. 1. MACROECONOMIC FRAMEWORK a) Development and economic country risk Armenia, little bigger than Lombardia Region in Italy in terms of surface, has been described in a World Bank study as a “Caucasian tiger”, despite the closure of two boundaries on four and the “frozen conflict” with Azerbaijan over Nagorno-Karabakh. In reality, the Armenian economy is still characterized by features of duality, with the growth concentrated in the capital and the rest of the country much less developed. In this situation the Government intended to review the actual situation in particular with the help of international donors (World Bank, BERS, European Commission, individual European Union countries, the United States, Japan). The diamond-processing industry, once the pride of the productive structure of Armenia, continues to suffer due to several elements: the lack of supply of raw materials, the increasing competition from India and China, and the decline of the global demand. Taxes recorded in the first five months of this year, a very positive result, an increase of 37% of tax revenue in comparison to the same period in 2007. The starting point was however low: this revenue accounted last year 16.1% of GDP that indicates the existence of a strong black economy (about 30% of all economic activities, according to Government estimates). The new government led by Tigran Sargsyan, former President of the Central Bank, took office in April. He immediately identified in the tax administration (and customs) one of the most weakness of the country, partly because of widespread corruption. Therefore the leaders of the two administrations has been eliminated and in Another structural aspect of the Armenian economy is the role of the Diaspora, present throughout the world and concentrated in Russia, USA and France and described by some authors as the “oil” Armenia and criticized by others as a involuntary stimulus of parasitic family practices and barriers to private initiative. According to data provided by the National Service of Statistics, GDP grew by 10.3% in second half of 2008 compared to the same period of previous year: the current year, therefore, could be the seventh consecutive year with double digit growth, although there is a light deceleration (the growth in 2007 .:7:. July, they are merged into a single structure: Revenue Administration. of this year saw a slight opposite trend, with the dollar quoted at 304.22 Dram in the 12/31/2007 and at 307.58 it the 06/30/2008 (partly because of political turmoil registered in spring). Simultaneously, a strictly activity of inspection of businesses and shops started, which led to temporary closure and it was instituted the compulsory cash register in all the shops and even in open markets. The Economist Intelligence Unit points out that, however, small and medium enterprises have paid the most part of bulk taxes and not the large employers and company. This phenomenon is more and more exacerbated by new rules, which came into action in early 2008 where will be more difficult for SMEs to enjoy tax exemptions or simplified. In summary, the reasons of the appreciation of the Armenian dram are several: − the weakening of the International U.S. currency and speculation; the important flow of dollars direct to Armenia related to remittances to Armenia Diaspora; the increased capitalization of Institutions of Credit, the increasing investment in the “real estate market”; the project of cooperation of international organizations and foreign states; and finally the gradual de-dollarization of the economy (“Dramatization”). In parallel, remains to be seen how the authorities will be able to impose a more accurate payment of taxes for large firms, always used to evasion and whose owners (so-called “oligarchs”) are part of the Armenian power structure. Some critics argue, however, that the value of money would be artificial and maintained very high in order to facilitate monopolistic importers of some commodities against to the detriment of entrepreneurs directed at foreign markets. This thesis is however essentially repudiated by the IMF. The inflation rate amounted to 9.6% at 30 June 2008, well above the rate registered at the end of 2007 (6.6%), that was the highest since 2003, and much above the official target of 4%. Prices of food especially have grown (11.1%) together with fuels (also due to the elimination, starting from 1 May, of government subsidies). In order to contain inflation pressure rate, the discount rate was reduced by the Central Bank six times from early 2008 reaching finally a 7.75% share. Wages of Armenian workers are still quite low: the actual average corresponds to less than 88,000 drams per month, approximately 200 euros. At the end of June 2008, the income of Armenian families increased on an annual basis, by 20.4%. In particular, wages of employees in financial sectors are typically three times the national average. Unemployment at the end of August 2008 stood at 5.8% of the workforce (6.9% between July and December 2007). According to the National Statistics Service the number of people seeking work account to 91,300 in the period under analysis. Fighting poverty is a priority. For the Government, as underlined from the official documents, it is a matter of national security since its spread has resulted in many important consequences: the breaking of social peace among the different classes, the abandonment of the country by many people, the depletion of human resources as well as the obstacles of the birth of an articulate civil society. According to Armenian official statistics confirmed by the World Bank, poverty is The financial sector is well regulated by the Central Bank and the Armenian banking system is considered “profitable” from the International Monetary Fund, and well capitalized. In the last two years the rate of growth in the volume of credit was approximately 30%. In particular, in 20072008, there has been a moderate expansion in correlation to the construction boom, less comforting the data when compared to the growth rate of GDP. According to the IMF, the Armenian Market would benefit from the entry of foreign banks. The local currency, the dram has appreciated significantly in comparison to the dollar since 2003: (almost 70% in nominal terms at end 2007), although the first six months .:8:. in reduction in Armenia: from 56.1% of the population in 1998 to 26.5% in 2006 (34.6% in 2004 and 29.8% in 2005, the figure for 2007 will be available at the end of this year). Armenia was also in a condition of extreme poverty in 2006, 4.1% of the population (21% in 1998). Contrary to what can be perceived, poverty in urban areas is higher than in rural areas (28.2% against 23.4%). The program of the new government is planning for 2012, a rate of poverty of 11.2%, with 1.6% of extreme poverty. In 2006 an ambitious project was launched in order to build 50 border villages in order to reduce rural poverty and develop a more balanced growth all around the country. Italy was the first country to take part in this important initiative, providing 500,000 euros for a intervention in the northern region of Tavush. which has already expressed its interest. In the field of Energy, however (as in almost all sectors of the economy), Armenia remains heavily dependent from Russia, a country that as a result of a controversial debtfor-equity swap has passed some years ago to control about 80% of the Armenian energy sector through the mixed society ArmRosGazprom. For that reason, Jerevan launched a very intensive cooperation with Iran to buy gas. The Armenian section of a oil pipeline between the two countries is near the completion. Most of the gas imported from Iran will then be used to generate electricity and Jerevan will repay it with 34 million dollars that Teheran provided as loan for the construction of the first part of the pipeline in the Armenian territory. The two countries have also agreed to build a new power line financed by Iran with 25 million dollars. There is also the construction of a bi-national hydroelectric plant on the Arax River, which separates the two countries. Being analysed is then the possibility of constructing (along with Russia) a refinery near the boundary, that would be reached by a pipeline from Iran. An element of possible disagreement in the energy relations with Russia is the elimination of subsidies to the purchase of fuel gas for business and households, carried out by the Armenian government, starting from 1 May 2008,. This has caused, as already said, a large increases in tariffs, which will be only further increase starting from 1 January 2009, when the agreement with Russia will expire for the maintenance of subsidized prices. However, there is the intention, by Moscow, to increase prices gradually, reaching the international prices level not before the 2012. A careful analysis of the potential Armenian economy cannot dispense with an examination of the energy sector as extremely important for a country with no oil. The backbone of this industry consists of a nuclear facility built at Soviet times. Concerning nuclear energy, the Armenian authorities follow a dual track: the closure and de-commissioning of Central Medsamor conjunction together with the construction of a new infrastructure. On 29 November 2007 the Government adopted a special strategy to secure the second and unique reactor currently active in Medsamor, which should be no more used after 2016. However, the stage of de-commissioning will be long and complex, lasting, according to the forecast, not before the 2048: it will not be therefore an immediate dismantling but a safe enclosures, procedure that includes also the removal of safeguards only after a long period of time. The telecommunications sector is in a strong growth and the two existing companies, both with a Russian majority, continue in great competition, with beneficial effects on prices. The process of awarding the tender for the award of a third frequency is still in act, for which three prequalified companies’ European (one French, one Irish and one Swedish) have been selected. With reference to the construction of a new nuclear plant, the USAID will implement a proper feasibility study of the value of two million dollars, together with the Armenian authorities. The findings of the research, which will be aimed also to assess the potential environmental impact of such infrastructure, will then be used by the Armenian Government as a basis to better negotiate with future suppliers and international donors. Among them appear almost certainly Russia, The infrastructure sector is in a slightly better position, although far from ideal. Armenia has .:9:. still relatively poor road networks (7,500 km of which half asphalt), and more than the rail network (around 800 km that the Russian Railways, having won a tender in early 2008, should remodernise). Armenia also suffers the difficult relations between Tbilisi and Moscow and the non-reactivation of the railway through Abkhazia. The main international airport is Zvartnots, near from the capital. In 2002 the Armenian Government signed an agreement for 30 years with the Argentine “Corporacion America” for the management and modernization of its infrastructures. Crucial for Armenian economic development is - and certainly will be in the future - the role of international donors: States and international organizations (not mentioning the diaspora, which is nevertheless a separate phenomenon). Some significant aspect regarding the non-conflict relations between the Armenian authorities and International Financial Institutions (IFIs) are in particular important. Relations between the IMF and Armenia, for example, were in fact excellent and so far, with regard to foreign debt, the situation remains positive. As widely recognised by local media, with the payment of one million and eight hundred thousand dollars, Armenia has completely rescheduled its debt with Russia, already considerably reduced in the past through the cited and discussed debt-for equity swap. of the total. Among the states, one with which Armenia is most indebted is Germany. The IMF forecasts that in 2011, the debt will come down to 11% of GDP. The new government believes that the preconditions for an economic growth lead in the future by investments are: macroeconomic stability (which maintenance is at the first point in the program), privatization of infrastructure and energy-related communications, the absence of restrictions on capital flows (both inward and outward), the growth and diversification of the banking sector, the pension reform and capital market, the retraining of the workforce. Businesses, for their part, will increasingly turn toward global markets, while in commercial terms the aim will be to adapt to European standards and to establish with the EU a free trade agreement. With regard to infrastructure, the path is made up of public-private partnerships: for tunnels and highways, for example, Armenia wants to provide for the payment of fees payable by users so as to encourage private investment in major projects. The key areas as outlined by the Minister of Economy Nerses Yeritsyan in a recent meeting with the Ambassador of Italy, are three: information technology, tourism (already in rapid development: 207,500 foreign tourists visited Armenia in the first six months of 2008, against 183,000 last year and despite the political turmoil following the presidential elections in February) and agriculture. Qualified international observers have however outlined scenarios marked by a greater caution. In the fifth evaluation of the economy of this small Caucasus country developed in the framework of the “Poverty Reduction and Growth Facility”, the International Monetary Fund, for example, despite praising the Armenian authorities for their efforts, highlight some critical points that has already begun to emerge: the inflationary pressure, the inevitable difficulties that the Government would face in public debts with the reform of pensions, the increase in gas prices. The IMF believes that the debts management was generally satisfactory and in medium term it is sustainable. The track record on Armenian repayments of loans is considered excellent. The experts therefore recognize Armenia Fund to have allocated priority to debt management: however, they add, to maintain the current “outlook” the Armenian authorities should engage in further reforms, here called “second - generation”, that the new Prime Minister T. Sargsyan has placed at the center of its government program. At the end of 2007 foreign debt amounted to 1.372 billion dollars, equivalent to 15.9% of GDP (in 2006 was however 23% of GDP). The largest creditors are the International Development Association World Bank (with over half of the total), the Fund IMF, IFAD and the EBRD. The private credit reach just 17% It is clear that the trend could also be influence Armenian economy in the medium period by the regional political developments with .:10:. Netherlands, Belgium, Georgia, Bulgaria, UK, USA, Italy (in ninth place with about 16.5 million USD) and Iran. The top ten countries exporting states are in the same period: the Russian Federation (about USD 248.9 million), Ukraine (about USD 151.5 million), China, Kazakhstan, Germany, Turkey, Japan, USA, Iran, Austria. Italy is placed at twelfth place with a total value of approximately USD 66.5 million. particular regard to the Nagorno-Karabakh and Armenian-Turkish relations (which are also being improved). The Russian-Georgian crisis, on the other hand, has already revealed in August 2008 the special vulnerability of the country especially as regards transport, with 70% of goods passing through for Georgia. Country risk: in the OECD analysis, according to the excellent economic performance of Armenia, the category of risk was lowered from 7 to 6. The country was also positively rated by Western rating agencies as “Fitch” (which has recently upgraded from BB to BB-) and “Moody’s”. However the impact of political instability has not to be underestimated, following the presidential elections of 19 February 2008, whose consequences were not yet all absorbed. Remittances Special attention deserves the theme of remittances (about $ 1.35 billion in 2007) for a country whose diaspora is spread almost all over the world. In a recent study, International Monetary Fund examines the impact of remittances on the economy of Republic of Armenia. Experts distinguish between “old diaspora” settled in the Middle East, the United States and Europe and a “new diaspora” in Russia, a category into which are also included seasonal workers. The authors reach the following conclusions: the remittances constitute a significant part of Armenian GDP, they are sent primarily to Russia, in dollars, and their increase is related to GDP growth of that country, large portion of remittances are transferred through the banking channels, the remittances sent by workers who have moved temporarily or permanently abroad have a positive consumption effect but not on the Armenian GDP growth; what the authors call “other remittances“ are connected to the housing market in Armenia as it is undergoing a rapid expansion and on the contrary they seem to have a strong impact on GDP growth. b) Degree of opening of the country to international trade and foreign investment Also due to the small size of the country and the presence of a substantial worldwide diaspora, the Armenian economy has always been, since independence in 1991, particularly sensitive to external relations. International trade Armenia has become part of the World Commerce in February 2003 after 10 years of negotiations. The National Statistics Service recently released data on foreign trade during January-June 2008: imports increased by 40.3% over the first half of 2007, while exports fell 1%. The trade deficit is therefore even more large compared to the past, in the first half, result were about 1.4 billion dollars, or 32.3% of GDP (2.1 billion throughout 2007). From independence to nowadays this deficit has become almost structural, especially for the difficulties of Armenian enterprises to adapt to international competition, partly because of continued appreciation of the dram in recent years. According to data provided by the National Statistics Service, the top ten markets for Armenians products in the first half of 2008 were, in order: the Russian Federation (total value of approximately USD 95.7 million), Germany (about USD 94.5 million), the Foreign investment In addition to trade policy, also the incentives policy for investment is currently pursued by Armenia and it is considered one of the international organizations more open in the CIS. Moreover, given the limited capacity of access to the world capital market, the only source of external funding - apart from the remittances of the diaspora and foreign aid donors - is precisely that of FDI. Since independence, there are investment usually treated as “brownfield” that is intended to acquire Soviet-era industrial assets. Those “greenfield”, i.e. those made for construction .:11:. 82.8 million, with a significant increase over the same period in comparison with the previous year (when it had reached 64.9 million USD). The trade balance further enhanced its traditional imbalance in favour of Italy: Italian exports accounted approximately $ 66.3 million (48.7 in the first half of 2007), while Armenia imports were equivalent to 16.5 million USD (16.2 over the same period of previous year). World’s top exporters, registered by the National Service Armenian statistics, Italy has kept the twelfth position pointed out throughout 2007, while it can be found in the ninth place as importer of Armenians products (the eleventh in 2007). With regard to product categories, the main Italian exports relate to machinery and equipment, base metals and products, textiles and chemicals products , while the vast majority of imports regards textile products, far followed by plastic products. A more limited role regards investment, which can be partly attributed to the poor knowledge of the potential of Armenia. Italy has positioned itself in the fourteenth place in the period January-July 2008 (it was sixteenth 2007) with $ 198,200 investment, all as “direct” investment (181,700 identically period of 2007). The almost unique Italian company to invest in Armenia has been in the field of construction and hotel, the RENCO S.p.A. Pesaro. Keep in mind that an Italian company, the GIERRET (Management systems in Renewable Energy of District Heating and Energy Saving) initiated a joint venture and as “Arenergy” has completed a feasibility study, lasting about a year in the region of Shirak: the Italian company intends to carry out fields for the production of wind energy. (source National Institute for Foreign Trade) of new plants, are mostly made by small and medium enterprises. Armenia is part of both the Convention on regulation of investment disputes among States and foreign nationals (the “Washington Convention”) and the Convention of New York in 1958 on the Recognition and Enforcement of Foreign Arbitral Awards. A bilateral agreement on promotion and reciprocal protection of investments came into force with Italy in January 13, 2003. If the framework is encouraging, the difficulties of concrete application of the laws that regulate the activity of investors is an undeniable obstacle to the economic opening outwards. These difficulties arise from widespread corruption (against which the new government has promised a strict fight), the lack of judiciary independence and the frequent interference of political power in the economic life of the country (many parliamentarians and ministers have own business interests). In the first six months of 2008 the ranking of countries from which origin the greatest number of investment in Armenia are, according to the National Service Statistics, the Russian Federation (about 386.7 million dollars), Argentina (approximately 28.2 million), Lebanon, the U.S., Luxembourg, Liechtenstein, France, Germany, Australia and Cyprus. Italy is in fourteenth place with $ 198,200. During the same period, total foreign investment amounted to roughly 515.1 million dollars, of which 352.7 direct investment, with a 65% increase over the first half of last year. The 43.1% of foreign investment focused on the energy sector. A steeper increase but still rather small, primarily because of the narrowness of the market, secondly due to the two closed borders; and thirdly due to the high cost of transport to reach Armenia. The economic weight of Russia is certainly dominant as easily imaginable. The GEMMO is present (as subcontractors) in the airport industry, while operating in Armenia also Lovable Italy (which is also downsizing its presence) in female underwear, Pagani and Graphic Arts. Two other important Italian companies have awarded in the past tenders issued by international organizations for programs cooperation for Armenia: ACEA, which through the “A-Utility”, had won the contract of the World Bank for restructuring the water network in the city of Jerevan and its c) Development of trade with Italy and direct investment Foreign Bilateral In the first half of 2008, the volume of commercial transactions between Italy and Armenia amounted to approximately USD .:12:. enterprises (which provides about 40% of GDP) for which Italy can represent not only as a reference model but also as an attractive market for imports of machinery and products for the retail trade. Among the areas where interventions would appear appropriate to develop the machines can be reported: agricultural and machinery for processing and storing agricultural products, technology cultivation in greenhouses, machines for working metals and stones, over - the construction industry, textiles, construction materials and sanitary furniture and décor interior. surroundings, and Sogin, awarded a contract on a program called “Tacis” for the Safety of Nuclear Power Medsamor. Both are no longer active. Many importers are also Armenians, or not exclusive, of Italian products, from those of machinery and clothing. Several Italian designers have opened or are opening their shopping in Jerevan. A delegation of the National Confederation Craft of Padua visited Jerevan in June 2007, including representatives of many SMEs that have started fruitful contacts with Armenian enterprises. In the occasion, an agreement of cooperation was also signed with the Armenian Chamber of Commerce and Industry. A similar agreement was signed in 2006 between the ADA (“Armenian Development Agency”) and the Industrial Union of the Province of Caserta, present in this country through the program IGEPP. There are also some Italian banks operating in Armenia. It would also be useful to create a Financial Firms that would allow Italian credits to importers in Armenia of our products and support the increasing Made in Italy penetration in this country. b) Valuation of direct investment from and to Italy Despite the positive economic state, Armenian has in the past attracted many foreigners investors and the fact that the Armenian authorities are in particular concerned with the establishment of international chains give prestige to a capital that is rapidly changing face. The Italian business has so far proved reluctant to seize the opportunities offered by this country, with few exceptions including the above mentioned RENCO S.p.A. Pesaro. In previous pages, it said, there is not any negative experience, such as the Great Mills who, having invested significantly in purchasing some plants for production of flour, has withdrawn from the Armenian market (while maintaining a partial ownership share) because of a disagreements with the local partner (with whom he had formed a joint venture). The weakness of the banking system in Armenia is certainly one of the main deterrents towards a greater economic and Italian commercial presence, but it can be an opportunity: in fact, precisely because of this deficiency, another area of economic presence in Italy could be just one bank (the only International Bank still present in Armenia is in fact the British HSBC, despite the strong 2. IDENTIFICATION OF AREAS OF INTERVENTION a) Assessment of market penetration of Italian products on the local market The exchange between Italy and Armenia is characterized by absolute values still quantitatively rather low and certainly not consistent with the potential of their markets. Among the most dynamic sectors that today characterize the Armenian economy, there are information technology, food industry and tourism, all areas where Italy has a tradition of excellence. Important also the impact of mining. A more leading sector in recent years has been building, supported by the need of massive public works for infrastructure and significantly funded by foreign contributions and international organizations, States and the Armenian diaspora around the world. Growth exponential in the housing market and construction has certainly helped the Made in Italy appreciated here. Even with the support of IFIs in this area, there has been a intense growth and there is beginning to develop in Armenia a network of small and medium .:13:. presence of Russian capitals in several national institutions). 3. TRADE POLICY AND MARKET ACCESS a) Tariff Barriers The Armenian legal framework is based on maximum liberalization. There are no taxes on exports, there is a simplified pricing system and can transfer any amount of money from abroad. Virtually nonexistent licenses and quotas export. All exports from Armenia are duty free. The tariffs for imports ranging from 0 to 10%. The 10% rate applies mainly to the consumption and luxury goods. Armenia uses the “Code Harmonized System” for tariff classification. No customs duty import is paid in the following cases: a. imported capital goods which are part of a investment; b. goods in transit through Armenian territory; c. means of transport used for regular international transport of goods; d. currency and securities; e. goods are imported temporary export and temporary Armenia for processing and rework; f. vehicles for government use; g. humanitarian h. goods imported for shops duty-free; i. livestock, meat, fish, shellfish, dairy products, vegetables, coffee, tea, spices, fruits, animal and vegetable fats and oils, sugar and sweets, mineral fuel and bitumen, leather, silk, wool, cotton and other textile fibres, glass and glass products are not decorative, aluminium, lead, zinc, pewter, tractors; j. items treated as property imported foreign customers in Armenia to be processed in the re-exportation within the period specified in the contract and no later than one year, provided that there is a contract that provides export; k. goods imported by the Central Bank Armenian; l. property used for the exhibition during fairs, events or similar activities; m. property brought demands for scientific, cultural or education (books, magazines, newspapers, musical instruments, sports and theatrical equipment, property religious); n. animals. c) Evaluation of potential for cooperation in commercial and industrial sectors High-tech higher the potential for cooperation in trade and industrial sectors such as to high technological content, which are experiencing a development particularly in Armenia positive. The country was one of the technology centers of the Soviet Union: a propensity which further developed after independence, also thanks to the Diaspora living United States, concentrated in California and therefore often involved entrepreneurial tech. The sector also received a strong boost by the fact that closure of borders with Azerbaijan and Turkey, increasing to excess transport costs earth has favoured industries (such as precisely those high-tech) that depend on the overland trade and can therefore count on a cost unit/transport particularly favourable for operators. d) Suggestions for the deployment of instruments of financial and insurance SACE and public SIMEST The SACE put Armenia in the sixth / seventh (penultimate / last) risk category. The attitude toward the country is thus marked by caution to avoid actions which can help create a new aggravation of the burden of debt. Consequently, the SACE prefers ensure operations of Italian entrepreneurs in partnership with international organizations or bilateral agencies such as SIMEST presenting valid mechanisms to mitigate country risk. Armenia has made it funding from the IMF, which prohibits debt on commercial terms: the consequently, local authorities can not issue “sovereign guarantee”. Exposure SACE and total currently used nothing. .:14:. special license (“an activity license”) issued by the Ministry of Health always, for a maximum of 5 years. Such license is not necessary for those “Whose WAS” activity connected to the pharmaceutical products and medicines research, experimental testing, quality, effectiveness and safety control. These measures are applied equally to both foreign nationals Armenians. More detailed information can be found at: www.pharm.am. Consumer goods are subject to a duty of 10%. b) Non-tariff barriers As is shown by the ratio of the working group on accession of Armenia to the WTO, the system of measures of non-tariff barriers in general is governed by Resolution 124, 29 December 1995. The importation of narcotics, psychotropic substances, poisons, equipment for smoking opium, pornography, trash (except those authorized by the Ministry for Trade and Development and the Ministry for Environmental Protection), products from countries that are signatories to the Convention Vienna for the Protection of the Ozone Layer and the Montreal Protocol, animal and plant carriers of infectious diseases incurable. Import restrictions are imposed only for reasons of public health, safety and environmental protection. This applies to all types of weapons, military technology and Medsamor nuclear plant. The import of these products is subject to specific authorization of the Armenian Government, as established by Government Decision No. 902, 31 December 2000. Among the weapons are also included products that meet category Customs HS8710 (tanks and other motorized vehicles such as components of thereof) in the HS9306 (bombs, grenades, cartridges and ammunition of various kinds). The importation of wild animals and plants is subject to obtaining a permit special by the Ministry of Environmental Protection, as stipulated in Government decisions No. 11741173-N and N, both of 18 July 2002. Resolution No. 239 of 12 May 2000, stipulates that certain products and services useful to safeguard both the environment and human health are subject to quality control (“Mandatory certification”). This excludes medicines, but should receive, based on Resolution No. 581 of 20 September 2000, a special permit for both regards imports and exports. Permission must be granted by Ministry of Health. Are excluded from this scheme veterinary products. The permit, which is for the single operation of export and import should be issued within 10 days of its application. Recipients must possess a c) Violations of the rules on protection of intellectual property rights Intellectual property is defined in Article 140 of the Civil Code. Trademark law and places of origin of goods has been signed by the President of the Republic of Armenia 31 March 2000. Based on it a mark is protected for 10 years renewable. In general, standards are in line with those of the TRIPS (Trade Related Intellectual Property Rights). The Patents Act came into force in August 1993 and protects both inventions (20 years) that the industrial design (15). Copyright law was, however, adopted in May 1996 and is consonant with the rules of the Berne Convention. In this area, then Armenia has made every effort to comply with legislation international rules, but the practical application of that still has many problems that can become a disadvantage for exporters of goods with trademark. Is particularly widespread practice of counterfeiting and piracy of compact discs, videotapes and DVDs that are sold legally, so that the government derives revenues tax in the form of value added tax. Equally popular, though less easily prosecuted because the trade in counterfeit goods case by informal means, the counterfeit clothing and accessories (bags, shoes, etc.). d) Issues relating to foreign investment in the country According to Forbes, Armenia ranks 63rd place in world ranking of “Best Countries for business”: the position most high among the CIS countries and fourth among all of the .:15:. former Soviet Union after the three Baltic States. Therefore, although the business climate in Armenia can be considered good overall, there are still difficulties for foreign investors. Under Article 14 of the Law on Foreign Investment, a company may conduct any economic activity provided it complies with the objectives contained in its statutes and is prohibited by legislation in the Republic of Armenia. You may create any form of enterprise, there are no restrictions on foreign participation and foreign persons are free to establish, together with other partners or independently, a wholly foreign owned company. The assimilation of foreign entities to the local includes participation in the privatization process and the acquisition of shares bonds, treasury bills and other securities. However, investors are not allowed to participate in activities such as production, repair and sale of arms and ammunition, prerogative of state-owned enterprises. The law also guarantees investors the right to repatriate profits without hindrance. Where existing legislation in the field is changed after the investment, the investor is entitled to be exempted from any measures which are detrimental to them for a period of 5 years. The Foreign Investment Law also allows companies with foreign participation to reexport the entire production and services without restriction, except cases defined by international (export licenses are required for products textiles). In general, we can report that although in theory there is a favourable legal framework, many contradictions arise when applying the relevant rules in practice. Among the problems have arisen recently and which are increasingly pinned criticism foreign operators are the arbitrary imposition of duties (often applied by customs officers with no relation to the actual value of imported goods), the delay over the VAT refund for export companies and especially the practice of revenue collection of deferred tax assets, often explicitly criticized by the EU Commission. The new Government, as already ‘mentioned, made an immediate and tough action against tax and customs administrations, removing the top (almost without exception been accused of corruption) and merged into a single Revenue Administration. 4. SPECIAL OPERATING POLICY AND PROPOSALS FOR ACTION JOINT a) Mapping of initiatives to support the internationalization of the system production that the diplomatic-consular ICE seeks to attain during the second half of 2008 Was held 13 to 16 February 2008, the first mission in Jerevan’s new director ICE Office of Moscow also responsible for Armenia, Dr. Roberto Pelo. During his stay in the Armenian capital met with Dr. Young and Hairy dynamic Minister for Commerce and Economic Development Nerses Yeritsian, in addition to the Armenian Development Agency Director (and current Minister of Finance) Tigran Davtian and senior representatives of the Ministry of Foreign Affairs, the “Union of Manufacturers and Businessmen of Armenia” (UMBA), Chamber of Commerce and Industry and the Small and Medium Entrepreneurship Development National Center. Following that visit, and was taken during the following May, a new proprietor of the “point matching” ICE Jerevan, inactive for over a year and will return then to cooperate with the Embassy of Italy in the activity economic development. On operating there is commonality of views between the Embassy and ICE that priority should be assigned the execution of the Memorandum of Understanding on Small and Medium Enterprises, signed in Rome January 27, 2005. On November 12, 2008, on the fringes of the Conference on Caucasus next day opened by Minister of Foreign Affairs Mr. Frattini, will take place in Rome organized by Confindustria, ICE and a presentation on the economic characteristics Armenia (socalled “country presentation”) for the benefit of Italian entrepreneurs. Please note that each successful tendering of the World Bank in Armenia are www.worldbank.org.am site listed on the page dedicated to “projects and programs”. (Then click on one of the boxes on the central line “consult Tenders in Armenia – dgmarket”). Those organized under the U.S. Millennium Challenge Account are listed at the following URL: http://www.mca.am/new/ enversion/index.php .:16:. critical slowing down development of trade relations and industrial cooperation between Italy and Armenia. From this point of view, the most would probably fit the Memorandum of Understanding between Italy and Armenia on Small and Medium Enterprises of 2005, which provides in turn setting up a joint body, comprising members from the public, the private and mixed organizations with experience in creating and providing assistance to SMEs. b) Identification of joint events to play with the competition bureau, Offices ICE Employees Scientific, and Cultural Institutes Italian Chambers of Commerce Abroad There are in Armenia nor Italian Cultural Institute, nor a Scientific Officer, it a Italian Chamber of Commerce. c) Projects of diplomatic missions and consular offices and ICE initiatives Promotions during 2009 It should meet on an annual basis, with alternating locations. The point correspondence ICE Jerevan could do is load the preparatory stage to the organizational as well as the any practical action in close collaboration with the Embassy of Italy. Will however continued the program calls to operators Armenians, already started in 2004, the major international fairs that take place in Russia, and for which there is a strong Italian collective presence, such as Prodexpo, the Consumexpo, the Mebel, etc. It will also studied the possibility of extending certain projects for Armenia (in the agro, in retail, hotel and restaurant chains), already included in Special Programme of Promotion in Russia. Though the Armenian import market is not particularly large, there are opportunities niche that should not be dissipated, partly because of the excellent image enjoyed Italy and Made in Italy. The activation of a “permanent round table” meeting, already under the Joint Declaration on Economic Cooperation of 2004, as well as represent something of an institutional nature, could be used to compare projects and strategies, promoting appropriate contacts between the business associations of both countries. Such “Table” should also be the place chosen for verification of the .:17:. THE MACROECONOMIC SITUATION IN ARMENIA Jermuk - Detail of thermal springs .:19:. THE MACROECONOMIC SITUATION IN ARMENIA Marz of Ararat – Landscape with the “Devil Bridge” Marz of Vayots Dzor - Landscape .:20:. THE MACROECONOMIC SITUATION IN ARMENIA Tools of traditional economy in south Armenia © Bonazza Noravank – Detail of main church dome .:21:. ASSOGAL AND TUSCANY LAGS rural economy in Tuscany, in the framework of I.C. Leader and other rural development programmes, as well as of promoting common strategies among LAGs, of spreading the knowledge of integrated rural development through active animation actions, technical services ad trainings, and horizontal and vertical mainstreaming. The political/strategic functioning is entrusted both to Assembly and to the Executive Board, while the operative functioning is assured thanks to the formalization of a Technical Committee composed of the LAGS’ managing directors and some of them play specific roles both outside and inside. Leader programme was already carried out in Tuscany Region during the first planning session (1989 – 1994) in two mountainous areas: Amiata mountain (Provinces of Grosseto and Siena) and Garfagnana area (Province of Lucca). With the second programme session (19941999) ten are the areas involved in Leader II, ruled by the same number of Local Action Groups. This second edition was a real experimental laboratory, during which important, original and innovative ideas were realized, new professionals were trained and they also improved their knowledge about rural development, projects planned by the meeting between the development actors and factors were carried out: ideas, competences, will and resources. The third Leader programme session (20002006), called Leader Plus by the European Commission, must conciliate, at a regional ASSOGAL TOSCANA is an association of the Tuscan Local Action Groups. 1. Introduction of ASSOGAL and the role played by LAGs in LEADER experience in Tuscany The establishment of the association The association of Tuscan LAGs was established in May 2000 – the first one in Italy – and it is the result of an experimental cohesion path among the different Local Action Groups, during which the comparison stages, which are often fierce, developed, in each territory, the awareness of the pioneering aspect of the enterprise and they strengthened, at the same time, the identity of rural areas and the functionality of LAG structures in a model which represents and highlights the territorial needs. The feature of the association Nowadays, the association is composed of the Local Action Groups based in Tuscany: Consorzio Appennino Aretino s.c.r.l. - Etruria s.c.r.l. - F.A.R. Maremma s.c. a r.l. - Garfagnana Ambiente e Sviluppo s.c.r.l. - Leader Siena s.c.r.l. - Start s.r.l. - Consorzio Sviluppo Lunigiana s.coop.r.l. - and it was established with the main purpose of promoting, of developing and of improving .:23:. level, the demand of resources concentration, with the entrance of new eligible areas. This has led to the re-definition of the organization of “Leader map”, in Tuscany, with the identification of eight LAGs (as regard to the previous SETTLEMEN OF SOCIETY ten LAGs) through elaborated political and economic concentration paths at a territory level. An explicative table about the allocation of the financial resources of Tuscan LAGs during the third planning session follows: SETTLEMENT of Board of Directors TOTAL COST of the Local Action Plans 2000-2006 LAG N. local N. private governement partners partners Total N. N. component component private part public part Total Total of public expenditures (Grant) Total of the Investment LAG Consorzio Appennino Aretino Soc. Cons. a r.l. 9 6 15 8 5 13 Euro Euro 4.512.771,00 10.124.602,00 LAG Etruria S.c.a r.l. 12 21 33 6 5 11 Euro 4.061.388,00 Euro 8.186.353,00 LAG L.E.A.D.E.R. Siena S.c.a.r.l. 11 7 18 7 3 10 Euro 4.745.924,00 Euro 9.232.525,00 LAG Eurochianti S.c.a r.l. 17 15 32 7 6 13 Euro 2.946.430,00 Euro 6.288.714,00 LAG Garfagnana Ambiente e Sviluppo S.c.r.l. 10 7 17 6 4 10 Euro 4.500.145,00 Euro 9.036.249,00 LAG Consorzio Sviluppo Lunigiana Leader S.c.a.r.l. 8 4 12 7 2 9 Euro 2.233.083,00 Euro 4.576.042,00 LAG Start S.r.l. 16 3 19 4 2 6 Euro 3.695.213,00 Euro 8.206.270,00 LAG F.A.R. Maremma S.c.a.r.l. 26 20 46 10 7 17 Euro Euro 5.408.279,00 12.760.918,00 .:24:. In the planning session 2007-2013, “Leader methodology”, inserted itself as transversal approach in FEASR planning, and so in the Regional Rural Development Plans, with the intention, from the E.C., of structuring and consolidating a development method of marginal areas which, with a reduced amount of resources, contributed to change the local economic organization. LAGs in Tuscany become seven. With the mainstreaming of LEADER in AXIS 4 of PSR (Regional Development Plan) 2007-2013, LAGs functional and political barycentre was, at European level, moved and the “core business” passed from the care of subsidiary which was more articulated and linked to the territories, based on the bottom-up, to an evolutionary government phase of network partnership. LAGs do appreciate the deep experience, gained on the area, of the local microeconomies, of the actual needs of the weak and peripheral entrepreneurship and of the collective needs, managed and administrated by the local territorial bodies, which often An explicative table regarding the allocation of the regional and communitarian financial resources Tuscany Council Deliberation Nr. 216 of 25.03.2008 Allocation Measure 410 and 431 per LAG and per year GRANT ALLOCATION PER LAG AND PER YEAR (only public expenditure) LAG 2007 2008 2009 2010 Total LAG Consorzio Appennino Aretino 1.920.030,96 1.908.742,25 1.851.522,80 1.877.134,55 7.557.430,56 LAG Etruria Scrl 1.327.134,39 1.319.331,59 1.279.781,24 1.297.484,20 5.223.731,42 LAG F.A.R. Maremma 1.934.585,96 Scarl 1.923.211,68 1.865.558,47 1.891.364,38 7.614.720,49 LAG Garfagnana Ambiente e Sviluppo Scrl 1.359.262,70 1.351.271,00 1.310.763,18 1.328.894,71 5.350.191,59 LAG LEADER Siena Srl 1.535.138,03 1.526.112,28 1.480.363,13 1500840,71 6.042.454,15 LAG START Srl 1.645.159,24 1.635.486,63 1.586.458,71 1.608.403,89 6.475.508,47 LAG Consorzio Sviluppo Lunigiana LEADER Scrl 797.007,85 792.321,89 .:25:. 768.570,01 779.201,49 3.137.101,24 express a dimension which is too exiguous to face the new and old needs of the populations. LAGs play a new role and take cognizance of some factors such as: a. the evolution of the structures; b. the gained competences; c. accreditation at local, national and international level; d. LAGs are innovative; e. LAGs have got lot of competences in the frame work of transnational cooperation; f. LAGs turn into local development agencies. Development), the association of the National volunteer networks at an European level, established in 1999, and it deals with the support to the rural and regional development according to LEADER methodology, promoting shared experiences among the partners, promoting the network governance as well the cooperation through the transnational projects. E.L.A.R.D. is one of the European organization which is also a member of E.N.R.D. (European Network for Rural Development) at the European Commission. 3. Rural development plan of Tuscany Region 2007-2013. LAGs Participation to the planning and settlment of action 4 Leader Approach 2. The experience on network activities: at a local, regional, National and transnational level A network of networks Agenda 2000 decided for a Rural Development policy as a second pillar of CAP, in order to develop the new political market reform in the Union territories. Rural development policies, consequently, cannot be separated from its own role of second pillar in common agricultural policy. ASSOGAL Toscana is inserted in the framework of National dialogue through the presence of the National Rural Network 20072013 (art. 68 EU Regulation 1698/2005) Department of Development Policies – Directorate General of Rural Development – POSR II. One of the strong points for the construction of the Network is represented by the involvement of other local formal and informal, national and international networks, which operate in different rural sectors. Their involvement assures an improvement in management and implementation of rural development policies, overdrawing the effects and the diffusion capabilities at a network peripherical level. With the approval of the final compromise of 20th of June 2005 in Luxemburg, related to the proposal of the EU Council Regulation on the support to rural development from the FEASR - Agricultural European Stock for Rural Development - the new reform gives a start to the new one on structural stocks. The two European directorates which gave the communitarian strategic orientations for the future, and these are those of Lisbon (March 2000), which adopted development and occupation as key words, and the one of Goteborg (June 2001), which has got integration of environmental sustainability with the economic and social one as main principle. The new face of European agriculture is entrusted to the hopes of rural development. The integration in “bottom-up” Leader approach, together with the consultation of the involved parties in planning, implementation and evaluation strategies and of the national programmes contribute to assure a structured dialogue as key element of a good governance. The rural development programming Networks members The EU Regulation n. 1698/05, as regard to Leader Plus, amplifies the territorial range and the stakeholders which are the potential addresses of the Programme. The Network, thence, addresses to all the rural networks, not only to those which are included in the LAG operative ability. During the performance of the scheduled actions, the National Network must assure a series of activities which are aimed at all the main subjects of the rural world. ASSOGAL Toscana is present at an International level as E.L.A.R.D. member (European Leader Association for Rural .:26:. should contain an axis in each declination national Leader to finance, through the Local Action Groups, the implementation of local development strategies based on the three thematic axes (Axis 1 - Competitiveness / Axis 2 - territory management / Axis 3 Rural Development) the operating costs of Local Action Groups, cooperation projects between LAGs, approaches, pilot and experimental approach, the acquisition of skills and coordination necessary for the preparation of local development strategies. The Leader model is then designed to be applied on a larger scale, preserving the European Union to a continuation and consolidation of the Leader. The operation has led to many years of status quo on the territories and a substantial growth both in terms of skills accreditation from major public and private actors of different territories. The most peculiar features of Leader + in Tuscany b. The gained competences The new rural development programming, which is engaged in leading the Leader method, cannot prescind from taking into account and from valorizing the following distinguishing features, such as: a. The evolution of the structures Intended as the natural growth of added value in support for local programming and the maturation of the operating structures. LAGs have experimented new contractual arrangements and organizational systems of light structures that have adequate performance of the Leader, continuously increasing the different skills in programming and management of territorial development programs. Leader was an opportunity to invest in facilities and to consolidate the operational staff, in order not to break up a wealth of knowledge not found in other programmatic solutions. • 70% of the Tuscan territory concerned and 21% of the population. • Implementation through local planning (8 Local Action Plans). • Innovation of the carried out projects. • Integration and synergy with other tools (PSR - Regional development Plan -, other communitarian plans etc.). The LEADER program allows rural areas of Tuscany to grow in a multi - sectoral and interdisciplinary approach, taking into account all existing activities, always safeguarding both the territory and the resources. c. Accreditation at local and regional level The enhancement of LAGs has allowed us to consolidate the role of everyone at local level and to spread their skills in order to attract the interest of public and private confidence and acquire operational and organizational development programs. Participation of LAGs to the planning activities LAGs are actors in the new rural regional planning, because the various Leader programs have been shown to be “revolutionaries”, so that they did not only establish itself as a specific axis in the new PSR, but they also became a methodological approach which can be used on all other axes. d. LAGs as innovation bringers The LAGs are certainly innovative structures which are working for local development: they are innovative for the operational and management modalities, selecting and training of consensus and decision points in a logical network. Eventually, they operate in the former areas OB - 5b actually representing a continuity of presence and operation of the public on so-called marginal areas. 4. LAGs as local development agencies on the territory Tuscan LAGs have been widely operating on eligible rural areas since more than ten years, implementing, in a concrete way, the principle of subsidiarity and bottom-up planning, in a logic of participatory governance, widespread and integrated. e. Experiences on international cooperation Leader is an innovative programming .:27:. system and, in Leader, inter-territorial and transnational cooperation is the characterization of added value in the program. With Leader experience, LAGs become the only reference tool for local activation and management of transnational partnerships, such as determining element and necessary to acquire a leading active roles in planning future policies. on critical market which restrict the sustainable economic development, regeneration and economic growth in the region through the establishment of a real plan Rural Development (RDP) for the two regions involved. The plan assumes a cohesive and integrated approach to improve regional economic performance, focusing on economic competitiveness and the need to increase productivity. f. Relations with regional and local bodies and authorities (Tuscany Region, ARSIA, Universities, Local authorities, Association of the economic categories, Comunità Montane, UNCEM Toscana) Nomination and selection of the project The European Union Commission published the ban “Armenia Regional Development, Phase II” (Regions of Ararat and Vayots Dzor) 19:06:01 TACIS Fund (EuropeAid/124645/C/ ACT/AM) in 2007. The specific objectives of the program are: • to favor the economic and social development in the regions; • to establish a sustainable mechanism for cooperation between central government, regional authorities, communities and society / civil community in planning and implementing economic and social activities designed to create growth and to improve living conditions in regions; • to develop and to implement a scheme of micro-projects (based on findings of the RDP) at the community level with inkind contributions of local authorities and community members to address economic and social communities. The work of planning, management and animation of LAG has found some sensitive and attentive partners in other agencies, local and rural development actors. The same group has activated ASSOGAL Memorandum of Understanding with UNCEM Toscana, with ARSIA and with Tuscany Region, on the issues of rurality. Many LAGs had important relationships with agencies and organizations at the local level for projects which are not included in Leader program. LAG, therefore, may perform the duties of a real regional development agency, in accordance with the specific device characterizations, in accordance to their organizational structure. 5. “REDAM II” project on Tacis programme of the E.C. Following his nomination, ASSOGAL Tuscany has been selected for project implementation, as reported in the award notification letter of 24th of May 2007 of the European Union delegation in Tbilisi (Georgia). The project idea The project was born from ASSOGAL Toscana, with the aim of coming up with new project opportunities, through which creating a network of actors and territories involved in rural development. The opportunity offered by the EC’s development programs in third countries belonging to the EU constitutes, for ASSOGAL Toscana, the opportunity to use the skills acquired by GAL Toscani in the management of rural development programs based on Leader approach, as developed in Tuscany CI Leader I. The purpose of the project is to improve the economic performance and increasing competitiveness of the region, focusing The contract with the European Commission Delegation to Georgia and Armenia was signed in August 2007. The aim of the project The project aims at facilitating, through a pilot mode, the implementation of rules and procedures for developing rural areas as required by the EU Leader methodology, through the direct support of the two local Armenian LAG and the financing of microprojects for the rural development in Armenia. The two Armenian regions (Vayotz Dzor and .:28:. Ararat), which are interested in the project activities, are located in south- western Armenia. Project partnership The project is directly managed and coordinated by ASSOGAL Toscana, which is the beneficiary of the Community contribution and the only liable party in respect of the Delegation of the European Commission. In order to implement the project activities, collaboration with external consultants from the Association will be provided, but especially with the structures of the Tuscan LAGs F.A.R. Maremma and LAG Start, and the two development agencies in Armenia: ICU Vedi (Ararat region) and RDA Vayotz Dzor (Vayotz Dzor region). The project complies with the following organizational scheme in order to carry out operational activities and general coordination: ASSOGAL - project Applicant and contracting authorities; - institutional relations with Armenian partners, with the European Commission and with the Armenian government; - link and facilitation of the relations among Armenian partners and Leader network, both at Italian and European level; - project visibility activities; - management of financial auditing activities and evaluation; - management of short-term experts in Armenia; - Setting up of a new accounting and administrative system with reference to the project. LAG Start partner Development and application development methodologies according to the Leader method, organization and management of short-term experts. LAG F.A.R.Maremma partner Administrative and financial management, operations and logistics, coordination and support to the implementation of micro-projects on site, monitoring and dissemination of results. The activities were carried out by the staff of the GAL and finding experts Armenian Partners: ICU Vedi RDA Vayots Dzor - Providing technical and administrative personnel to manage the project (contracted directly by the Armenian partners. - Creation of tender notice for the purchase of equipment provided by the project and supplied to the offices. - Participation in all technical and operational activities of the project in Armenia. - Technical support and logistical experts Italian / international short-and long-term implementation of activities. - Provision of administrative and financial reports for the general coordination of ASSOGAL for reporting interim and final project, based on the financial expertise provided and regulated by partnership agreements signed with ASSOGAL .:29:. Development Agency and the Association for Tourism Development, a center for professional training and development of tourism in the region of Vayots Dzor and related areas (agricultural and craft was also created), aimed not only at promoting tourism and territory in general, but also at improving the entrepreneurial skills of individuals in the sectors concerned and the professional skills of young people seeking work or specialization. Duration and project budget The project lasted 29 months, including the extension given by the European Commission and it ended on 31.12.2009. The budget envisages a total investment of Euro 2.224.600,00 with a Community contribution amounting to 2.000.000,00 Euro. Project activity In summary, the project has achieved the following project activities: Ararat Region: 1) “Model of Rational management of the waste cycle in Vedi” Through this pilot project, a sort of municipal company composed of tools and human and financial resources existing in 19 communities involved in the project was created, which has provided technical assistance (regulatory) and means (collection trucks, trucks, bulldozers, etc.) to rationalize and optimize the management of the waste cycle, from collection to storage in a centralized landfill, until the establishment of an early differentiation in the collection (time to separate and possibly reuse the paper and plastics), on an area inhabited by about 76,000 inhabitants. 1. Project Management (management, administrative and technical project); 2. Technical activities for the promotion and development of local networks in both regions, aimed at activating the Leader (involvement of local authorities, stakeholders, supervision of the priorities defined by the development plans of the two regions). 3. Training and technical assistance to the Armenians on the skills required by the Leader program. 4. Definition of Local Action Plans containing projects and non structural finance. Also through the direct involvement of schools, an awareness-raising was carried out in order to induce an improvement in environmental sanitation of the area and enjoyment of historical and cultural sites and attractions. 5. Funding and implementation of microprojects. 6. Monitoring and evaluation of micro-projects. 7. Communication and dissemination of project activities in Armenia and visibility of results. 2) “Creation of a Centre for Development of Agricultural Mechanization” The project, by supporting the purchase of mechanical equipment (2 tractors and trailers) and agricultural tools and innovative modern (harrows, milling machines, precision drills, rakes for fodder) has supported the creation of a center for the development of the budget agricultural mechanization, benefits not only for the members of the cooperative farm Khor Virap, but, thanks to a new service of “outsourcing” , for the benefits of farmers outside the cooperative itself, who, secondarily to the needs and priorities of the cooperative, will benefit from modern and technical means in less time and at more Micro-projects: The creation of micro-projects at local level, based on the methodology leader, is one of the key activities under the project REDAM II. Micro-projects that were financed with the EC contribution in the two Armenian regions follow: Vayots Dzor Region: 1) “Centre for Tourism Development and training” Through the construction of a building which housed the headquarters of the local .:30:. competitive prices, ensuring the economic sustainability of the service and management of resources, improving the quality of agrofood and decent living conditions for farmers in the area. 4) “Construction of a Visitor and Tourist Centre” The project, through the building “from scratch” of a structure (of 135 square meters) wellinserted in the environmental surrounding, and that has got 8 beds in two units (accommodation capacity of 448 guests in 7 months of opening), accompanied by a service bar-cafe restaurant, in addition to strengthening the website of the Nature Reserve and the tourist promotion activities, you can pursue the goal of providing tourist accommodation by improving the infrastructure of the Reserve and the visibility and accessibility to national and international level. It will be possible to create 4-5 new jobs in the Centre (whose employees receive appropriate training) and to encourage agricultural activities craft industries in the nearby community of Urtsadzor. It will be possible to significantly contribute to the tourist promotion in this area, a sanctuary of some endangered animal species, such as the “Leopard of the Caucasus” and “Black Griffin”. 3) “Creation of an Unit of Drying and Packing fruit and vegetables” The Project, through the purchase of machinery and equipment (greenhouses and pallets for drying, washing equipment for fruit and vegetables, etc..) modern and innovative (packaging machines, heat sealing, etc..), created a center for the packaging of fresh and dried fruit and vegetables (14 tons of finished products) that benefits not only the members of the Organization “URTS”, but, through a new service of “outsourcing”, it is an advantage also for farmers outside the NGOs, ensuring the economic sustainability of the service and management of resources, but above all with the objective of improving the quality and characteristics of sanitary food and agricultural products, in order to present a better product on the market healthy and competitive and able to negotiate a higher price, would improve the general revenue of the NGO and the standard of living of members and farmers in the area. .:31:. ASSOGAL AND TUSCAN LAGs Tuscany - Landscape Tuscany LAG’s staff .:33:. ASSOGAL AND TUSCAN LAGs Marz of Ararat - Khor Virap Monastery .:34:. ASSOGAL AND TUSCAN LAGs Marz of Vayots Dzor - Noravank Monastery .:35:. THE LEADER APPROACH of the CAP. Information from evaluations and rural stakeholders, indicate that the Leader approach is a tool that works well, in quite different situations and types of areas, thus adapting rural policy-making to the extreme diversity of rural areas’ needs. For these reasons, it has now become an integral part of rural development policy. By encouraging local participation in the drawing up and implementation of sustainable development strategies, the Leader approach may prove to be a precious resource for future rural policy. For the 2007-13 programming period Leader will no longer be a separate programme but will be integrated (‘mainstreamed’) in all national/regional Rural Development Programmes. This opens up new possibilities for the Leader approach to be applied on a far wider scale and across a much broader range of rural development activities than hitherto. Leader encourages rural territories to explore new ways to become or to remain competitive, to make the most of their assets and to overcome the challenges they may face, such as an ageing population, poor levels of service provision, or a lack of employment opportunities. In this way Leader contributes towards improving the quality of life in rural areas both for farm families and the wider rural population. It uses a holistic approach to address rural problems. It recognises, for example, that being competitive in the production of food, having an attractive environment and creating job opportunities for the local population are mutually supportive aspects of rural life, requiring specific skills, 1. The Leader approach to rural development: what is it? Rural development policy is an increasingly important component of the Common Agricultural Policy (CAP). It promotes sustainable development in Europe’s rural areas addressing economic, social and environmental concerns. Over half of the EU’s population lives in rural areas, which cover 90% of the EU’s territory. Leader is an innovative approach within EU rural development policy. Leader stands for ‘Links between actions of rural development’. As its name suggests, it is a method of mobilising and delivering rural development in local rural communities, rather than a fixed set of measures to be implemented. Experience has shown that Leader can make a real difference to the daily lives of people in rural areas. It can play an important role in encouraging innovative responses to old and new rural problems, and becomes a sort of ‘laboratory’ for building local capabilities and for testing out new ways of meeting the needs of rural communities. It has generated valuable results in many rural areas in the Member States, and could play a significant role in assisting rural areas in new and future EU Member States to adapt to today’s changing realities. Since its launch in 1991, Leader has provided rural communities in the EU with the tools to play an active role in shaping their own future. It has evolved over time, together with the rest .:37:. appropriate technologies and services that need to be tackled as a coherent package and with tailored policy measures. procedures, the support of the relevant public administrations and the necessary technical assistance for the transfer of good practice. The difference between Leader and other more traditional rural policy measures is that it indicates ‘how’ to proceed rather than ‘what’ needs to be done. Seven key features summarise the Leader approach. They are described here separately, but it is important to consider them as a tool-kit. Each feature complements and interacts positively with the others throughout the whole implementation process, with lasting effects on the dynamics of rural areas and their capacity to solve their own problems. Since it was launched in 1991, the Leader Initiative has been working to provide rural communities in the EU with a method for involving local partners in steering the future development of their area. The Leader approach has attracted a high level of interest within the EU and far beyond. It has been emulated beyond its own circle of beneficiaries. The interest Leader has aroused has sometimes influenced national, regional and local administrations and policies with its capacity to tackle development problems through new forms of partnerships and linking activities. Leader complements other European and national programmes. For example, Leader actions can activate and mobilise local resources, by supporting pre-development projects (such as diagnostic studies and feasibility studies or local capacity building) which will improve these areas’ ability to access and use not only Leader funds but also other sources for financing their development (e.g. wider EU and national rural and regional development programmes). Leader also assists sectors and categories of beneficiary which often receive no support, or only limited support, under other programmes operating in rural areas, such as cultural activities, enhancement of the natural environment, rehabilitation of architecture and heritage buildings, rural tourism, improving the links between producers and consumers etc. Leader encourages socio-economic players to work together, to produce goods and services that generate maximum added value in their local area. The seven key features explained Feature 1. Area-based local development strategies An area-based approach takes a small, homogenous, socially cohesive territory, often characterised by common traditions, a local identity, a sense of belonging or common needs and expectations, as the target area for policy implementation. Having such an area as a reference facilitates the recognition of local strengths and weaknesses, threats and opportunities, endogenous potential and the identification of major bottlenecks for sustainable development. Area-based essentially means local. This approach is likely to work better than other approaches because it allows actions to be tailored more precisely to suit real needs and local competitive advantage. The area chosen must have sufficient coherence and critical mass in terms of human, financial and economic resources to support a viable local development strategy. It does not have to correspond to predefined administrative boundaries. 2. The seven key features of the Leader approach The Leader concept The main concept behind the Leader approach is that, given the diversity of European rural areas, development strategies are more effective and efficient if decided and implemented at local level by local actors, accompanied by clear and transparent .:38:. An Area-based approach Participation should not be limited to the initial phase but should extend throughout the implementation process, contributing to the strategy, the accomplishment of the selected projects and in stock-taking and learning for the future. There are also important issues of transparency which need to be addressed in the mobilisation and consultation procedures in order to reach consensus through dialogue and negotiation among participating actors. The definition of a ‘local area’ is neither universal nor static. On the contrary, it evolves and changes with broader economic and social change, the role of farming, land management and environmental concerns, and general perceptions about rural areas. Feature 3. Public-Private Partnerships: The Local Action Groups (LAGs) Setting up a local partnership, known as a ‘Local Action Group’ (LAG) is an original and important feature of the Leader approach. The LAG has the task of identifying and implementing a local development strategy, making decisions about the allocation of its financial resources and managing them. LAGs are likely to be effective in stimulating sustainable development because they: • aggregate and combine available human and financial resources from the public sector, the private sector, the civic and voluntary sector; • associate local players around collective projects and multi-sectoral actions, in order to achieve synergies, joint ownership, and the critical mass needed to improve the area’s economic competitiveness; • strengthen the dialogue and co-operation between different rural actors, who often have little experience in working together, by reducing potential conflict and facilitating negotiated solutions through consultation and discussion; • facilitate, through the interaction between different partners, the processes of adaptation and change in the agricultural sector (e.g. quality products, food chains), the integration of environmental concerns, the diversification of the rural economy and quality of life. Feature 2. Bottom-up approach The bottom-up approach means that local actors participate in decision-making about the strategy and in the selection of the priorities to be pursued in their local area. Experience has shown that the bottom-up approach should not be considered as alternative or opposed to top-down approaches from national and/or regional authorities, but rather as combining and interacting with them, in order to achieve better overall results. Of the seven features of Leader the most distinctive one is the bottomup approach. Rural policies following this approach should be designed and implemented in the way best adapted to the needs of the communities they serve. One way to ensure this is to invite local stakeholders to take the lead and participate. The involvement of local actors includes the population at large, economic and social interest groups and representative public and private institutions. Capacity-building is an essential component of the bottom-up approach, involving: • awareness raising, training, participation and mobilisation of the local population to identify the strengths and weakness of the area (analysis); • participation of different interest groups in drawing up a local development strategy; • establishment of clear criteria for selection at local level of appropriate actions (projects) to deliver the strategy. A LAG should associate public and private partners, be well-balanced and representative of the existing local interest groups, drawn from the different socio-economic sectors in the area. At the decision-making level the .:39:. private partners and associations must make up at least 50% of the local partnership. LAGs may be set up ad hoc to access Leader support, or may be based on previously existing partnerships. Endowed with a team of practitioners and decision-making powers, the LAG represents a model of organisation that can influence the delivery of policies in a positive way. Experience shows that several types of LAG have been developed from these common characteristics, as a result of different forms of regional and national political and institutional organisation, and also with differing degrees of autonomy regarding project approval and financial management. The role and responsibilities of LAGs have also evolved over time in some Member States, as familiarity with the Leader approach has grown. LAGs decide the direction and content of the local rural development strategy, and make decisions on the different projects to be financed. Actual payments are often made by a paying authority dealing with public funding rather than the LAG itself, on the basis of project selection made by the LAG. The Local Action Group A Local Action Group is expected to: • draw together the relevant interest groups of an area around a joint project; • have decision-making autonomy and the capacity to take a fresh look at local resources; • link the different measures; • be capable of seizing the opportunities offered by the local mix of resources; • be open to innovative ideas; • be able to link and integrate separate sectoral approaches. Local Action Groups are delegated to take up a large proportion of management responsibilities (e.g. project selection, payment, monitoring, control and evaluation tasks) in relation to individual operations. However, the LAGs’ degree of autonomy may vary considerably depending on Member States’ specific mode of organisation and institutional context. Global grants are the most common form of financing Leader projects and actions. Such grants, cofinanced by EU and national public funds, cover a variable portion of a project’s financial requirements, depending on the type of project and the type of area. The rural actors that are most active in local initiatives are: • professional organisations and unions (representing farmers; non-farming professionals and micro-enterprises); • trade associations; • citizens, residents and their local organisations; • local political representatives; • environmental associations; • cultural and community service providers, including the media; • women’s associations; • young people. Feature 4. Facilitating innovation Leader can play a valuable role in stimulating new and innovative approaches to the development of rural areas. Such innovation is encouraged by allowing LAGs wide margins of freedom and flexibility in making decisions about the actions they want to support. Innovation needs to be understood in a wide sense. It may mean the introduction of a new .:40:. product, a new process, a new organisation or a new market. This common definition of innovation is valid for rural as well as urban areas. However, rural areas, because of their low density and relatively poor level of human and physical resources, have weaker linkages with research and development centres and may find it difficult to produce radical innovations, although this is of course possible. Innovation in rural areas may imply the transfer and adaptation of innovations developed elsewhere, the modernisation of traditional forms of know-how, or finding new solutions to persistent rural problems which other policy interventions have not been able to solve in a satisfactory and sustainable way. This can provide new responses to the specific problems of rural areas. Introducing the Leader approach, with its seven features, may be an innovation in policy-making in its own right, which may generate innovative actions by the original policy-delivery method that has been adopted. For example, the bottom-up approach described above may stimulate the emergence of new project ideas which may then be supported by the LAG because it is not bound by a fixed menu of measures. The adoption of information and communication technologies in rural areas may become an important channel for wider access to innovations by the rural population. Feature 6. Networking Networking includes the exchange of achievements, experiences and knowhow between Leader groups, rural areas, administrations and organisations involved in rural development within the EU, whether or not they are direct Leader beneficiaries. Networking is a means of transferring good practice, of disseminating innovation and building on the lessons learned from local rural development. Networking forges links between people, projects and rural areas and so can help overcome the isolation faced by some rural regions. It can help stimulate cooperation projects by putting Leader groups in touch with each other. There are different types of networks: • Institutional networks These are funded by the European Commission, which defines their role. The EU supports networking structures at both European and national level which bring together Leader groups, administrations, and all other interested partners active in rural development. From 2007 the types of institutional network will be: * a European Network for Rural Development (run by the Commission); * a National Rural Network, to be set up in each Member State. Networking activities have primarily been focused on Leader only, but from 2007 onwards, they will address a much broader range of rural development issues. They will have expert support and undertake practical activities such as preparing publications on different aspects of rural development, organising seminars, analysing rural development actions to identify good practice, identifying development trends in rural areas, running web-sites and helping Leader groups search for potential partners and launch co-operation projects. The European Network also acts as a meeting point for national networks and administrations in each Member State in order to share experience at European level. Participation in networking activities is mandatory for all Leader groups receiving EU financial support, Feature 5. Integrated and multi-sectoral actions Leader is not a sectoral development programme; the local development strategy must have a multi-sectoral rationale, integrating several sectors of activity. The actions and projects contained in local strategies should be linked and coordinated as a coherent whole. Integration may concern actions conducted in a single sector, all programme actions or specific groups of actions or, most importantly, links between the different economic, social, cultural, environmental players and sectors involved. .:41:. but other groups are welcome to feed in their knowledge and experience into the network. • National, regional and local networks Networks or associations of Leader groups have also been set up or have emerged more informally at local, regional or national level in some Member States (e.g. the network of Irish and Greek groups) and at Europeanlevel (e.g. the European Leader Association for Rural Development - ELARD - see Contact points section). 3. Implementing Leader at the local level The seven key distinctive features explain what the Leader approach is about. Putting these principles into practice means real people designing local strategies and participating in activities. This section describes some basic steps in the process of implementing Leader, in areas where the approach is used for the first-time. It does not try to describe every situation that could arise – Leader activities are too diverse for that. The involvement of local actors in areas where Leader has not yet been applied usually begins when it becomes clear that a Member State or region will at some future point be implementing Leader (for example, on accession to EU), and so will in due course publish an open call for proposals for potential Leader groups 4 . In an ideal situation, the following steps would be taken in the process of implementing the Leader approach. Feature 7. Co-operation Co-operation goes further than networking. It involves a Local Action Group undertaking a joint project with another Leader group, or with a group taking a similar approach, in another region, Member State, or even a third country. Co-operation can help Leader groups to boost their local activities. It can allow them to resolve certain problems or add value to local resources. For example, it can be a way of achieving the critical mass necessary for a specific project to be viable, or of encouraging complementary actions e.g. joint marketing by Leader groups in different regions whose areas share a specialisation in a specific product (chestnuts, wool etc), or developing joint tourism initiatives based on a shared cultural heritage (Celtic, Roman etc). Co-operation projects are not just simple exchanges of experiences. They must involve a concrete joint project, ideally managed under a common structure. There are two different types of co-operation possible under Leader: • inter-territorial co-operation: this means cooperation between different rural areas within a Member State. It may take place between Leader groups, and it is also open to other local groups using a similar participatory approach; • trans-national co-operation: this means cooperation between Leader groups from at least two Member States, or with groups in third countries following a similar approach. a) Capacity building This is the very first step in implementing the Leader approach at the local level. If this innovative approach is to work well the local actors must have or acquire the necessary capabilities in terms of project ideas and know-how, the human resources to devote to particular activities and, of course, the financial skills to manage those activities. In the past this process was often a ‘learning by doing’ exercise. Today the accumulated experience should make it easier. Using networking and other communications tools is of great assistance in creating such capacity as it not only provides information about Leader but also serves to raise the interest of local actors in the preparation of a local rural development strategy and associated projects, thus generating the critical mass required. Capacity building is not an individual activity but a collective one, in which different rural stakeholders become aware of the approach and its mode of implementation, thus enabling them to disseminate, participate in and benefit from it. b) Bringing together local actors The second step is often to organise meetings or seminars within the local area .:42:. to bring together the key interested players, to help ideas emerge and to allow local actors to discuss the needs of their area on a sound basis. There are many ways of gathering local actors together: seminars and workshops; public meetings; media and telecommunications; and, fairs and exhibitions are the most common means for local actors to get together to discuss issues of mutual interest and become aware of the different opinions and projects for the area. community, plus the active groups which are leading the process. During the phase of planning the strategic choices for the local area (i.e. identifying priority topics/projects for which financial support should be sought), the bottom-up approach calls for the participation of various interest groups (for example by setting up ad hoc working groups). Bringing together local actors and the territorial analysis facilitates the identification of those that need to be included in the public-private partnership and manage the implementation. Eventually this leads to the creation of a Local Action Group. The LAG is the partnership which effectively implements the local development approach agreed within the community. c) Territory analysis A detailed analysis of the local rural area concerned is essential. This normally concentrates on identifying the ‘territorial capital’ - the area’s assets (people, activities, landscapes, heritage, know-how), not in the form of an inventory, but of the unique features that can be developed. Analysing these features and the key points identified during this area-based analysis should lead to identifying possible local development strategies, specific to the rural area in question. Production of an area-based analysis also commits all of the local players to a medium- and long-term vision of the area. Although expert knowledge is valuable in this analysis, it is important that different ‘visions’ of the future and of the best strategy for the area have a chance to be publicly discussed and that a high degree of consensus is achieved. f) Preparation of a local development strategy The local development approach is formalised in a local development strategy document. This includes establishment of the objectives, definition of strategic priorities and ranking of the actions to be undertaken. This local development strategy will be the basis of the LAG’s application for support under open calls for proposals organised by the Member States/regions for Leader. Member States or regions select successful LAGs and allocate budgets to them for implementation of their local strategies. d) Identifying existing activities/initiatives A crucial step in the Leader process, linked to the territorial analysis, is for local actors to conduct a review of the existing rural development measures being implemented or planned in their area. Establishing what initiatives already exist is fundamental to deciding whether to build on them or replace them. It also reduces the risks of duplication occurring. 4. Leader in the future: mainstreaming A recent review of the EU’s rural development policy concluded that Leader had reached a level of maturity that enables rural areas to implement the Leader approach more widely in mainstream rural development programming. Mainstreamed Leader-type measures have already been adopted by several of the Member States that joined the EU in 2004 in their 2004-2006 programmes. e) Creation of a partnership During the analysis phase, the bottomup approach calls for awareness-raising (through information) and engagement in order to analyse the rural area’s strengths and weaknesses and to identify needs and expectations (using methods of participatory analysis). This stage targets the entire a) The next programming period (2007-13) i. New emphasis on Leader On 20 September 2005 the Council approved a new Regulation for rural development support for the next programming period (2007-13) 5. This gives greater emphasis to the Leader-style approach. During .:43:. important role in rural development in new and aspiring members of the EU. Institutional and structural changes in the agricultural sector over the past decade have caused higher long-term unemployment, depopulation in some areas and a weakening in the provision of services and infrastructure. The strengthened bottom-up approach of Leader, which gives local authorities and communities more say in designing and implementing programmes to meet local needs and which looks at rural areas as territories rather than focusing on the agricultural sector alone, will also be important in countries aspiring to EU membership. Many of these countries have limited experience in recent years of such participative approaches. Since accession on 1 May 2004 the EU-10 Member States already have the possibility to apply a mainstreamed Leader-type measure funded by the EAGGF 7 Guidance fund. Six of the 10 new Member States have included the Leader-type measure in their ‘Objective 1’ 8 programmes. Strong emphasis will be put on building the administrative capacity to, for example, stimulate and support the establishment of LAGs. the next period each rural development programme must have a Leader component for the implementation of bottom-up local development strategies. A minimum of 5% of EU funding for each programme is to be reserved for Leader (as a separate ‘Leader axis’ within programmes). This percentage is to be phased in for the EU-10 Member States 6 which will apply an average of 2.5% for Leader in the 2007-13 period, given their more limited experience of the Leader approach. Member States or regions will select LAGs based on their proposed local development strategies. Each programme will have the scope to finance the capacity building and encouragement necessary for the preparation of these local strategies, the operating costs of LAG structures, and the implementation of the local development strategies and cooperation projects between LAGs. There will also be reinforced networking structures with the set up of the European Network for Rural Development (see section 2, Feature 6). b) Focus on the new Member States and acceding countries Agricultural activities play a particularly .:44:. THE LEADER APPROACH Training session with local staff Meeting with RDA and ICU Vedi local staff .:46:. THE LEADER APPROACH Yerevan Meeting at European Commission Delegation Yeghegnadzor Meeting with RDA local staff Yeghegnadzor Meeting with RDA local staff .:47:. THE LOCAL ACTIVITIES ICU VEDI AND RDA VAYOTS DZOR LOCAL PROJECTS cement factory, that is cause of serious air pollution. VEDI INTERCOMMUNITY UNION (ICU VEDI) Ararat area is situated in the south of the Marz and it comprises 31 communities: Vedi city, Ararat city, Aralez, Ararat village, Vanashen, Goravan, Poqr Vedi, Nor Kyanq, Dashtaqar, Lusarat, Noyakert, Yeraskh, Surenavan, Taperakan, Zangakatun, Urtsadzor, Vosketap, Yeghegnavan, Sisavan, Aygavan, Armash, Lusashogh, Avshar, Lanjar, Shaghap, Lanjanist, Urtsalanj, Paruyr Sevak, Nor Ughi, Vardashat, Vedi w/f Banavan. The Vedi River passes through the sub-region. DESCRIPTION OF SUB REGION Ararat Marz is one of the 10 Marzes1 of the Republic of Armenia and is located in the central western part of it. Ararat Marz is mainly divided into 4 sub regions (which later were named into areas): Masis, Artashat, Vedi and Ararat; it comprises 97 communities, of which 4 are urban. The total area of the Marz is 2096 km2 and is situated between 800 - 3500 metres above the sea level. The number of the population is 309.220 people; the population of the Marz makes 8,5% of the total number of the population of the Republic of Armenia and most part of the population lives in rural areas. The total number of the population of Ararat sub-region is 100.304 inhabitants. The population of the area is mostly involved in agriculture; the priority branches of which are viticulture (wine-making), fruit and vegetable cultivation. However, because of the fragmented lands and the high prices of the irrigation and fertilizers, the population does not get sufficient crops and incomes. Ararat Marz borders with Vayots Dzor, Gegharquniq, Armavir, Kotayq and Yerevan Marzes, also with Azerbaijan and Turkey. The main highway, linking with Iran, also passes through the Marz, which plays an important and essential role in the further development of the Marz. Being located close to Yerevan is also very important for the economic development of the Marz areas. ECONOMIC ANALYSIS OF THE TERRITORY There are several wine and brandy factories functioning in Ararat area, there are also many SME, which mostly produce bread products and confectionery, but such SMEs are rather small and their circulation is little, too. Ararat Marz is the third largest Marz in the Republic of Armenia, with its total volume of industrial output of 8,6%. Ararat sub-region is famous for travertine mines and for the The Tourism sector in Ararat area is not developed as in the rest of the Marz, but has the tendency to improve the situation because there are several attractive historical and cultural sites (e.g. Khor Virap Church, 1 Marz = Region. .:49:. which is considered to be the symbol of the adoption of Christianity in Armenia; historical remains of ancient capital Artashat and its baths in Lusarat; Kaqavaberd and George Marzpetuny Fortresses; David Bek Cave; etc.) and natural sites and preserved area, such as Khosrov State Reserve, the most important natural Reserve in Armenia with rare flora and fauna most of which are included in the Red Book of Armenia (Leopards, Black Griffons, etc.), where besides picturesque sites there are many wonderful important historical monuments, which up till now are not opened to the world. Yet the quality of the services provided needs to be improved, there is a big need for entertainment/leisure centres, restaurants, motels. THE L.A.G. The “InterCommunity Union of Vedi” (ICU Vedi) is, de facto, a L.A.G. (Local Action Group) located in central-western Republic of Armenia, in the Ararat region (total area 2096 km2 and 309,220 inhabitants), founded in 2004 as union of municipalities of Vedi’s territory and presently formed by 15 municipalities. The exact location and address of ICU Vedi is Republic of Armenia, Ararat Marz, City Vedi, Toumanyan 5 St. The main goal of the organization is to coordinate and systematize the activities of its member municipalities, joining the efforts to solve common problems, as a nonprofit and non-commercial organization. The number of people of 63 years old and over is 11,233, under 16 – 18,054; according to the “Labour Code” of the Republic of Armenia (RA), labour age is considered the age of 16, men’s pension age is 63, women’s is 61.5. The total number of the pensioners in the area is 13,665 people; the number of the disabled makes 3,380 people. ICU Vedi has the following main purposes: • To solve the communities problems in a more effective way, • To exercise intercommunity unions’ powers as granted by law and to promote the enforcement of laws, within the limits imposed by the Constitution of the Republic of Armenia, The number of the employed in the area is 32,819; unemployed are 3,775 people; it should be noted that according to the “Labour Code” of the RA, the people who have got private lands, are not considered unemployed. • To support networking relationships among the communities to foster rural development, • To support member-communities, external communities, organizations, international donors and other organizations pursuing the same goals to establish connections and arrangements. Moreover, ICU Vedi supports the preparation of Regional Development and Local Action Plans. The Agency has an important role in planning and managing of the territory, as it is responsible for the organization of public services like garbage collection, water and heating supply, roads, bridges and buildings reparation or reconstruction, etc. Figure n. 1 displays the exact unemployment showings according to areas, taken from the Marz Employment centre of Ararat, as of 01.01.2008. The intervention area of ICU Vedi is a rural territory with almost 100.000 inhabitants distributed in 31 municipalities, belonging to Ararat region. Its main economic sectors are agriculture (viticulture, fruit and vegetables) and stone processing, but it can count on a rich historical and natural heritage too. The population seeks for jobs mostly in foreign countries; leaving in early spring and returning in late autumn. The number of women leaving for foreign countries has risen during the recent years, which is not typical for the Armenians. The InterCommunity Union is lead by the Council, which has managing and decision.:50:. making powers carried out by its President and Director (appointed by the Board). The structure is completed by technical and administrative Staff. Name, Surname and Position Tigran Petrosyan Executive director Samvel Sahakyan Here follows the description of ICU Vedi Staff (with details about each profile and the task and responsibilities assigned): Education Profession Position in the Project 2002 -2007- The Armenian State Pedagogical University after Kh. Abovyan, Department of History and Law Lawyer Project manager Yerevan State Food Industry Technical School Internal co-worker Specialist of installation/ arrangement of refrigerator machines 2003-2005 Russian Institute, Department of Economy, Moscow, Russian Federation 2000- 2003 State Engineering Institute, software support of computer engineering, Magnitogorsk, Russia. Economist Networking Assistant 1991-1993-”Interlingua” college, at the Institute of foreign languages after V. Bryusov, Department of Interpreter Language assistant Language assistant 2002-2007 Yerevan State Linguistic University after V.Brusov. Department of International Tourism Specialist of English language and International tourism Secretary Accountant (Accountant not for project) Lilit Dallakyan Economist Alina Tamrazova Language assistant Tatev Khosroeva Secretary Khachik Sahakyan Officer Hovhanes Araqelyan Driver Since 2006- student at Saint-Petersburg Historian Institute of Law 2000-2005- Yerevan State University, the faculty of History, Art Department Planner 1980-1982- Industrial- technologic Technical School, city Ararat (continued) Driver Technologist 1977-1978 -Industrial- technologic Technical School, city Ararat Since early 2009 ICU Vedi staff has been implementing various kinds of activitiescollecting information regarding all the sectors; making up an archive, organizing meetings with the Mayors of the 19 communities, with the partners of the MPs, organizing trainings for procurement procedures, making agreements and contracts, etc. analyses revealed the strong and weak points of the territory. ICU Vedi did its best attempting to seek for and establish new partnerships both within the country and abroad, applying new methods of development in Ararat Marz. It is important to underline that the project activities have been extended until 31st December 2009 due to an EU authorized extension. This extension has been requested to allow the full implementation of micro projects. In fact, almost all microprojects were focused on the construction of buildings/structures. During all this period, the LAG of ICU Vedi has gained experience and skills, raised the capacity of the staff, which were of great use for further activities. The Union of Communities ICU Vedi has updated the information base and through the performed .:51:. CONTACTS ACTIVITIES REALIZED ICU Vedi, 5 Toumanyan St., City Vedi, Ararat Marz, Armenia (email: [email protected], Tel. 00374-23421960) The different activities implemented by the personnel of ICU Vedi in the framework of the REDAM II Project, which had a 24 months duration (starting from August 2007) plus an extension of 4 months (until December 2009), are the following: BACKGROUND • Performing SWOT Analysis of all the economic sectors of the Region, ICU Vedi implemented not only ordinary activities as it is envisaged by its Statute, but also activities in collaboration with international donors and organizations like Eurasia Foundation, USAID and GTZ (2005-2007) to foster the cooperation and partnerships between the 15 municipalities. • Organization of meetings with representatives of private and public sectors (Tourism, Agriculture, Industry, Local Government, entrepreneurs, cooperatives, NGOs, etc.), to create a wide partnership, • Rural development planning and elaboration The most important activity of “ICU Vedi” is the participation, as official Armenian partner together with RDA Vayots Dzor, in the international cooperation project called “LEADER: a Regional Network for the promotion of integrated sustainable development of Ararat and Vayots Dzor Regions” co-financed by European Community (Ref. EuropeAid/124645/C/ACT/ AM) and granted in the framework of the TACIS Program (REDAM, phase II – Tacis Contract 2007/140637). of the Local Action Plan, • Supporting the local stakeholders in the preparation of Project files and in the development of sustainable project ideas. THE RESULTS The final results of this participatory process are the realisation of 4 Micro-Projects: 1. Urban Waste Cycle Management Model 2. Establishment of Tourists Visit and Accommodation Centre TACIS Programme was set up in 1990 by the European Council; the Programme aims to encourage democratization, the strengthening of the rule of law and the transition to a market economy in the New Independent States, arisen by the break-up of the Soviet Union, as Armenia. 3. Establishment of Agri-Mechanisation Centre 4. Establishment of fruit and vegetables Drying and Packaging Unit THE “REDAM II” PROJECT The project intends to implement a pilot procedure in order to reinforce the understanding of methods and procedures aimed at socio-economic development and planning in rural areas, as provided by the EC LEADER approach, engendering direct and participatory involvement of all the local operators throughout the whole life of the development actions, from the decisional to the managing phase. The overall objective of the project (total budget 2.224.600 Euro) is to introduce innovative development strategies and to support concrete social and economic projects in both concerned regions. .:52:. 1. URBAN WASTE CYCLE MANAGEMENT MODEL THE MICRO PROJECT IN BRIEF Title: Urban Waste Cycle Management Model Location: Intercommunity Area of Vedi and Ararat – Ararat Region, Armenia Total duration: 12 months Applicant: Vedi InterCommunity Union (ICU Vedi) Partner/s: Neighbouring Communities of Ararat city, Taperakan, Vanashen and Urtsadzor Brief Description: Through this pilot project, it is foreseen to establish a centralised public company formed by the technical means, human and financial resource currently existing in the 19 Communities interested by the project (15 from ICU Vedi and 4 neighbouring Communities, including Ararat city), which has received Technical Assistance (at legal, normative and operational levels) and new means, equipment, machinery and tools (trucks, trash-bins, backhoe loader, software, promotional material, etc.) in order to rationalize and optimize the urban solid waste cycle management: from the picking up to the disposal in a centralised landfill, till the attempt to implement a sort of differentiated collection (to recycle, at least, paper and plastic bottles) in an area where about 76.000 inhabitants live. Through the concrete involvement of the schools, was possible to make the young generations more sensible and the people in general in order to generate an environmental improvement, an enhancement of health and hygienic conditions of the area and a better fruition of historical, cultural and tourist sites General objective Objectives: Estimated results: - Improving the current environmental situation in Sub-Region of Ararat and health conditions of the population; - Improving and solving the problem of collection and disposal of waste in the Sub-Region of Ararat Specific objectives - Creation of a model for the waste management exportable and replicable on wider areas; - Implementation of a pilot project on waste collection and disposal including the area concerned by 15 Communities of Intercommunity Union of Vedi and 4 neighbouring Communities; - Implementation of differentiated waste collection system for plastic bottles, paper or glass; - Reduction of 50% of the presence of waste spread on roads and in fields outskirts of urban areas; - Increased volumes of waste going to landfill by 25%; - Increased differentiated collection of plastic and paper (or glass) from 0% to 3% at least Main activities: The main activity is the establishment of new waste removal company for 15 Communities belonging to the Intercommunity Union of Vedi and 4 neighboring Communities; this Company includes the current responsible of the Waste Collection Departments of the several Communities, coordinated by an Official Commissioner, that organizes the further activities (purchase of the equipment, operational planning, dissemination of information, training courses and promotional campaign) Target group(s) 15 Communities belonging to the Intercommunity Union of Vedi and 4 neighboring Communities in Ararat Marz, Republic of Armenia; Vedi region and 4 neighboring Communities has a population of 76,390 people who has received benefits from results 15 Communities of ICU Vedi; 4 neighbouring Communities; about 76.000 people; S.M.Es. Final Beneficiaries: Directly: Intercommunity Union of Vedi and the newly established company with the other 4 Communities (61% of overall Communities in Ararat Sub-Region); Indirectly: all the population of the area involved (76% of total population of Ararat Sub-Region) Total Cost: 249.748,53 Euro Cost’s Allocation: 200.018,61 € UE Funds + 49.729,92 € Local Authorities Co financing .:53:. neighbouring Communities of Taperakan, Vanashen, Urtsadzor and Ararat city; Brief description of the area The project took place in Vedi region and fully covered the collection and disposal of waste in the 15 Communities belonging to the Intercommunity Union of Vedi and 4 neighboring Communities (Taperakan, Vanashen, Ursatdzor and Ararat city) in Ararat Marz, Republic of Armenia; Vedi region and the 4 neighboring Communities has a population of 76,390 people. • Implementation of differentiated waste collection system for plastic bottles, paper or glass; The overall objective of the “Green Land” project is improving the current environmental situation in Sub-Region of Ararat and health conditions of the population as well as improving and solving the problem of collection and disposal of waste in the SubRegion of Ararat; The “Green Land” project intervention aim is the increase of life quality, by provision of high quality waste removal service and by betterment of environment. The project target is assisting waste collection, recycling and disposal through centralized management of organization of Vedi region and 4 neighbouring communities solid waste removal and disposal. The project contributes to increase life quality from the following perspectives: The project aims at improving municipal waste management of 15 Communities belonging to the Intercommunity Union of Vedi and 4 neighbouring Communities as well as creation of a model for the waste management exportable and replicable on wider areas. The total number of beneficiaries is 76,390 people. Objective(s) GENERAL OBJECTIVE: • • Improving the current environmental situation in Sub-Region of Ararat and health conditions of the population; • Prevention of health problems by cleaning communities from the solid waste; • Improvement of environmental situation by appropriate management of communities solid waste landfills; • Safe environment due to recycling of plastic, metal, glass and etc trough creation of solid waste sorting facility; • Reduce the risks of air, soil and water pollution; • Decrease of solid waste removal costs for all 19 Communities involved. According to The National Poverty Reduction Strategic Program and Regional development plan (developed by EU assistance by REDAM I) sector specific priorities to achieve are identified. The main goal of the Marz development is to increase and improvement of life conditions not only economically but also socially. Improving and solving the problem of collection and disposal of waste in the Sub-Region of Ararat; SPECIFIC OBJECTIVES: • • Creation of a model for the waste management exportable and replicable on wider areas; To achieve the objective this project is focused on environmental issues, as it was determined in “Regional Development Plan” developed in the framework of REDAM I, by solving issues of municipal waste. Implementation of a pilot project on waste collection and disposal including the 15 Communities involved in the Intercommunity Union of Vedi and the 4 .:54:. The issue of waste management was specified as in Poverty Reduction Strategic Plan as well as in Regional development plan, in both documents issue of good waste management was mentioned as important one from the point of view of creation of basic economic infrastructure and creation of necessary environmental conditions. with privatization of public ownership taking place in rapid and dramatic form. Armenia not only lost Soviet Union markets on which its exports depended, but it also lost huge inputs from other soviet republics and support from central government. In addition to above, municipal service sector transferred to new established Local Government bodies. The law and regulations on Local Self-Government grant equal powers to the communities. As a consequence local self-governments make policy and implement their powers independent from the Central Government. Today Armenia has a two-tiered administrative structure. It is divided into 10 regions, which are subdivided into more than 914 communities. The 10 regions are administered by governors appointed by the central government, who in turn appoint their own staff. Local self-government bodies become responsible for providing many municipal services, including waste collection and disposal. But almost all local self-government bodies have not enough financial recourse to keep same standard in service provision as it was during Soviet time. The overall objective of the project comply with The National Poverty Reduction Strategic Program and Regional development plan, and that objective is improve current environmental situation in Sub-Region of Ararat and health conditions of the population; Improve and solve the problem of collection and disposal of waste in the Sub-Region of Ararat. The specific objective of the project is creation of a model for the waste management exportable and replicable on wider areas through the implementation of a pilot project on waste collection and disposal including, the 15 Communities involved in the Intercommunity Union of Vedi and the 4 neighbouring Communities (Taperakan, Vanashen, Urtsadzor and Ararat city) and the implementation of differentiated waste collection system for plastic bottles, paper or glass. Vedi region, as many other regions in Armenia, has specific problem of waste removal service, in particular, this problem was identified in Poverty Reduction Strategy Plan as well as in Regional development plan worked out under assistance of EU funded REDAM project. Now, in compliance with the support activities of “Local Government Program, phase 3” provided by USAID, the proposed “Green Land” project – in the framework of EU funded REDAM II – aim to solve municipal solid waste management key problems. Identified Problem(s) As it was mentioned in report prepared as a result of series of researches funded by USAID under Local Government Program, the waste management is a great problem for about all small communities in Armenia. Vedi region has the same problem; the problem is more tangible in small communities than in city of Vedi. It is possible to see lot of waste, both constructional debris and domestic, near agricultural lands and roads. This waste affects to lot of aspects of life in region, from environmental to tourism development, from life quality to health issues of population. Solving of the problem of municipal waste management has been contributing greatly contribute to the increase of Vedi region life quality. The waste removal problem has different reflection in the region: the important ones are the follows: • In 1991, Armenia declare independence from the Soviet Union and, as a consequence, embarked upon a transition from centrally planed to market oriented economic system, .:55:. One side of the problem is not full coverage of the waste removal service; there are areas in region where no waste removal service provided at all. Because of irregular waste removal service provision or limited access to the service there are many build-ups of waste near the roads and on agricultural lands. During traveling in the region it becomes obvious that the problem is coming across very often. • • Other reflection of the problem is not using recyclable raw materials; now all municipal waste without sorting (in the best case) goes directly to the landfills or dumpsites. waste removal service; The other side of poor management of waste management service is bad landfills management. There are many small dumpsites (each small community has its own “landfill”) in Vedi region; for small communities the landfill management expenditure is very high, because of lack of financing some landfills even has not been covered by soil since Soviet time. • No waste bunches near roads and agricultural lands; • Solid waste landfill are operating and covered by soil, and no waste can be moved out by wind or animals; • Decreased waste positively influence on the population health; • Waste removal service per unit cost decreased. For some groups: All before mentioned problems creates new problems in the sphere of health care. Waste builds up, lack of landfill maintenance works, and lack of access to waste removal service creates health care problems not only for inhabitants of the region but also for population who use agricultural products of the region, in fact all these problems can create severe risk of water pollution for both usage, agricultural and potable. Moreover, bad waste management makes region non attractive for tourists. • New working places created; • Materials used for recycling; • Agricultural lands cleaned from waste to prepare land to use for primary purpose. Total number of beneficiaries is 76,390 people. The target groups for the project “Green Land” are: The financial situation in small (rural) municipalities makes appropriate provision of waste removal and management impossible. The “Green Land” project proposes to join forces of all municipalities in the region for solving the problem of waste management. While Vedi intercommunity union is created for solving such type of problems, but even Vedi intercommunity union cannot solve the problem without “Green Land” project implementation. Good solid waste management system requires high volume of capital investments to buy trucks and equipment, which is impossible in current income level for intercommunity union. • InterCommunity Union of Vedi and the newly established company with the other 4 Communities of Taperakan, Vanashen, Ursatdzor and Ararat city, that represent the 61% of overall Communities in Ararat Sub-Region; • All population of Vedi region and 4 neighbouring Communities (Total number of beneficiaries is 79,110 people, the 79% of the entire population of Ararat Marz). As a result of project implementation the population of Vedi region had different benefits: For entire population: Target groups and final beneficiaries The target group for the project is all population of Vedi region and 4 neighboring Communities. As a result of project implementation the population of Vedi region had different benefits: • Waste removal service operating at least twice per week, all area is covered by waste removal service; • No waste bunches near roads and agricultural lands; • Solid waste landfill are operating and covered by soil, and no waste can be moved out by wind or animals; • Decreased waste positively influence on the population health; • Waste removal service per unit cost decreased. For entire population: • Waste removal service operating at least twice per week, all area is covered by .:56:. For some groups: Relevance of the action • New working pleases created; • Materials used for recycling; • Agricultural lands cleaned from waste to prepare land to use for primary purpose. The Project aim is to solve specific problems with waste management in the area of ICU Vedi and the 4 other Communities. For solving the problem it is proposed to create new municipal solid waste management company. This company join efforts for all municipalities in the area mentioned above to solve problems related to municipal waste management. For the implementation of the program it was decided to divide program in two specific components, each component have its own tasks and actions, as well as its own aim to achieve. The involvement and consolation of “Green Land” beneficiaries and stakeholders in all phases of the project cycle from design to evaluation is regular practice. “Green Land” activities carried out in co-operation with all local governments covered by project as well as NGO-s operating in region. “Green Land” project joined all current forces involved in municipal waste removal and management service to build modern model of centralized municipal waste management service. These components are: • Component 1: Waste removal service The involvement of municipalities took place in various main activities: • Component 2: Landfills management and maintenance • Fee set up and collection; Component 1 (Waste removal service) • Assistance in waste removal contract signing with businesses and households; • Education of citizens; • Service quality measurement; • Connection between citizens and service provider. The main task of this component is to provide access to waste removal service to entire Vedi region and neighbouring communities. Under framework of the component the existing waste build-ups start to be cleaned and regular service for waste removal has been provided. For organization of municipal waste removal service it is planned to establish a new centralized company (i.e. a sort of Consortium or Association) and to collect existing municipal waste removal service companies’ equipment and trucks in this new municipal waste management company “Green Land”. Merging different small waste removal company into a big one used economy of scale for more efficient service provision. It is projected to receive EU assistance under frames of “Green Land” project. Within EU assistance additional equipment and truck has been purchased, necessary technical support has been provided. Municipal consuls played great role in waste removal service, because according to legislation, municipal consul make decision on waste management fees as well as schedule adoption. The project in initial phase collaborated with all existing municipal waste removal service providers; personnel of existing companies had an offer to join new waste management service. The project collaborated with schools; mainly schools participated in citizen education campaign (with dissemination of booklets or other promotional material) as well as in service quality rating. After waste collection has been organized and improved, the project started differentiated collection of the waste. Differentiated collection has started from only one recyclable waste differentiated collection, in this step plastic materials was chosen for starting differentiated collection. In this phase has been essential to activate a promotional campaign to sensitize and to stimulate the population. Implementation of Performance Management principals also involved all stakeholders in measurement of quality of waste removal service, and provided information as about general satisfaction level with municipal service as about cleanliness rating of municipality. .:57:. Component 2 (Landfills management and maintenance Proposed activities It was decided to divide program “Green Land” in to 2 different components: The task of this component is to increase the staff capability in landfill management and maintenance level by centralizing landfill management in one company. It is expected to have one centralized landfill for all Vedi area and 4 neighbouring Communities; a geological survey has been conducted to assess if the characteristics of Vedi landfill can satisfy the basic requirements to receive all the waste collected. Under framework of the component all municipal landfills in Vedi region have been consecrated by new waste management company, and using economy of scale it becomes easier to conduct necessary works on one joint landfill. In organizing of landfill management EU assistance is very important both for purchasing of equipment and as a technical assistance. • Reduction of 50% of the presence of waste spread on roads and in fields outskirts of urban areas; • Increased volumes of waste going to landfill by 25%; • Increased differentiated collection of plastic and paper (or glass) from 0% to 3% at least; • New equipment provided to central management of waste removal and disposal company (Trucks, Backhoe Loader ,trash bins, etc.); • Fee collection rate at least 75%; • Service coverage ratio 75%; • Company become self sustainable after 5 months of the project; • One landfill every 3 month should be binged it to normal condition. • Component 2: Landfills management and maintenance Centralization of management of the collection and disposal: new model of waste management system in Vedi region and 4 neighbouring Communities intends centralized management. For centralized management it is necessary to define an economic and political agreement trough a legal status of management and organization of waste collection and disposal. The centralized management rationalized resource utilization for all communities affected by the project, thus all the communities involved have the responsibility to collaborate in the establishment of this new legal entity. The staff of the waste removal service needs to be trained to work using performance management approach in municipal service provision. Before start operation it is also necessary to receive management responsibilities for all operating solid waste landfills. The landfills mostly belong to municipalities and for renting or receiving management rights municipal consul decision is required. Outputs and expected results Creation of new centralized waste management company; Component 1: waste removal service The aim of all sub programs is to create one new waste management company to serve all population of ICU Vedi area and the neighbouring 4 Communities. The following activities should be performed: As it was shown before, all components of the project is aimed to solve different problems with waste management. Solving these problems made possible to improve life conditions of inhabitants of the mentioned area. • • Start up consultancy: All legal documents for the establishment of the new legal body and waste management service should be prepared and provided to municipalities covered by project. Legal framework preparation included but not limited by setting up waste removal fees, rules and approving of typical contracts for waste removal service provision. The waste removal schedule needs to be developed and included in contracts and official notification of potential customers. A plan for territorial strategic positioning of bins should be developed by the new company with the useful support of European Experts and incorporated with a strategic plan for the routes and frequency of collection. The waste .:58:. removal schedule should be developed for removing waste build-ups from the street and agricultural lands. For landfill management it is necessary, at first, through hydro-geological investigation and logistics report, to verify the characteristics of the existing landfill and to assess if the increased volume of waste in existing landfill do not cause any kind of pollution to landfill. New program for efficient management of the landfill has been developed. Also it is necessary to develop a schedule of renovation of landfills used before start of program. Citizens’ survey and service quality rating: For the measurement of outcomes Baseline should be set up, survey for set up baseline should be conducted before doing any change. Further follow up survey should be conducted to measure performance and understand impact of the actions performed. If survey cost is high, the pilot area should be determined to measure performance in that area. Operation of Municipal waste management: The municipal waste removal service performs its operations by the following way: the new purchased waste removal trucks starts its route one from one side of area and another from other side of area. The trucks have enough capacity for removing waste from villages. New trucks have been used with standard bins (0,75 m3), the number of which has been increasing through the purchase of new ones, or with the possibility to buy new big bins, with higher capacity of 1.1 m3 each one. Already existing trucks have been used with existing metallic. Plastic bins have been used in area there new big trucks cannot enter and move. According to previously developed schedule waste build-ups have been removed using crane-picker or backhoe loader. Procurement: It is necessary to have new trucks and equipment for the company, which allow provision of waste removal service for all area of Vedi region and 4 neighbouring Communities. Service provision contracts: It is necessary to have contractual relationship with all members of communities to be covered, the contracts should be performance based, both sides should have responsibility to keep area clean, and provide properly service. Contracts (that should be self-printed out by the Communities) should include schedule, fees, hot line number and etc. With legal entities contracts have been signed or for entire process (waste removal and disposal) or only for waste disposal. As a first step to recycle waste, differentiated waste collection should be implemented, as a first material for differentiated collection, plastic was selected. For differentiate collection the same new bins (but with different colour) have been used. Differentiated collection started from two urban areas: Vedi and Ararat cities. Fee payments: Set up new ways for payments such us via local banks, post offices, municipalities and fee collectors. In case of cash payment double receipts have been used. Special software for waste removal service has been used, which provides chance to have all information about payments, debts, receipt number, names of collectors and payment date etc. For operating and control of landfills a geological survey has been performed. The aim of geological survey has been to check whether the landfill selection is correct and according with the new requirements; moreover, a new fencing for the centralized landfill has been realized. Promotional campaign: For waste management quality increase, promotional materials need to be prepared. Those promotional materials have been printed and disseminated through public places such as schools, post offices, banks and municipalities. At the same time the series of trainings have been organized in schools. For the further implementation of promotional campaign a plan to raise awareness of population should be developed and implemented. Regarding the conditions of the roads that conduct to the landfills areas, should be useful that the several Communities assess the various situations to ensure the possibility to reach these areas, properly, with the new trucks. .:59:. conducted during the first month of the project. Based on survey results Consultants developed the following documents: Method of implementation The definition of the problems to be solved and strategies chosen are directly and dynamically linked to the long-term strategy plan and require creation of an institution. They foresee the service provision interventions are organized according to the following principles: participation, cost coverage, and collective responsibility. All involved 19 communities must understand that they have been the actors of interventions as they are the ones that act to transform a given reality. Baseline setting up; • Top level goal setting, defining the outcomes; • Development of actions to achieve the goals and outcomes; • Participation in performance measurement; • Review of performance; • New goal and outcome defining • Developing new action plan. Level of the fees; • Waste removal schedule for each municipality; • Plan for territorial strategic positioning of bins; • Strategic plan for the routes and frequency of collection; • Schedule for removing waste build-ups; After 10 months of implementation of the project the follow up survey was conducted, the follow up survey results were used to define progress of actions performed as well as to provide necessary information to management of waste removal service for developing new steps to improve situation. A full external evaluation was carried out in August – September, or maximum in October 2009. “Green Land” worked according to Management by performance strategy, which is a formal set of procedures that establish and review process towards outcomes. For more efficient management, program had the following elements: • • For internal measurement of results, fee collection ratio were used. In case of successful citizen education campaign and appropriate fee collection procedures (taking in to consideration local revenues cycles), fee collection ratio can show citizens attitude toward the service qualitative and quantitative characteristics. Equipment and machinery acquired: Main resources proposed for the action In the framework of project implementation were bought equipment and machinery necessary to establish the new centralized waste collection service, such as: HUMAN RESOURCES: • Compactor trucks • Caterpillar • Mini truck collector • Plastic bins • Metallic bins The organizational structure of the Municipal waste management company is following: Monitoring and evaluation procedures Follow up permanent evaluation with stakeholders are integral part of intervention methodology. The baseline survey was .:60:. New centralized waste management company have 58 staff members, 20 service personal (both administrative and technical) and 38 technical staff members. All staff is local. have been hired. It has been useful that some managers of the new company had the opportunity to participate in training courses in one of EU member countries. For baseline and follow up survey performance, specialized company has been selected. For the project implementation both local and international short term experts consultants Function Purpose Individual short term consultants Lawyer Legal actions determination for centralized management implementation; Legal framework development /for landfill and waste removal Develop service contracts Waste management consultant Fee set up; Development of schedule for waste removal Plan for territorial strategic positioning of bins Strategic plan for the routes and frequency of collection Schedule for removing waste build-ups Development of specifications for tenders Programmer Software adjusting Software set up Payment via bank is possible Training consultant Hire and train new company staff Procurement specialist Tender specification preparation Call for tender Tender result evaluation Service providing companies Printing and design company Printing and preparation of promotional materials Printing of service contracts Landfill management consultancy Identify the landfill through hydro-geological investigation and logistics report. Program for efficient management of the landfill Schedule of renovation of landfills used before start of program. Development of specifications for tenders Sociological survey Citizens survey and service quality rating .:61:. Other resources: in partnership with other 4 neighbouring Communities (Taperakan, Vanashen, Urtsadzor and Ararat city). ICU Vedi is connected with all municipalities involved in the project, and municipal waste management activities directly derive from the tasks and responsibilities of the municipal structures. This reality is consequently ensuring instructional sustainability of new company. For the implementation of the project, existing and new resources has been used. The project used all equipment of Vedi city waste removal service as well as municipal waste removal trucks and bins owned by municipality of Ararat city, and all other equipment of 17 rural Communities. Equipment and property of Vedi and Ararat municipalities, as well as the equipment of 17 rural communities have been transferred to new centralized municipal waste removal company. Besides that, lot of new equipment has been procured under “Green Land” project, purchased from EU or TACIS countries: 2 Side loading trucks with 18 m3 loading capacity, 150 standard trash bins or 120 bins with 1.1 m3 of capacity, 1 tractor with front shovel and back crane picker or a Backhoe Loader and 1 bulldozer; moreover, a fencing of the centralized landfill has been realized. Policy sustainability Sustainability at policy level is another milestone of the project. The project established new policy to municipal waste management in the area of ICU Vedi and 4 neighbouring communities mentioned. Lasting positive effect on waste management issues have been achieved through the adoption of a fundamental strategy of municipal waste management in this area as a whole, at policy level the project has been supported by Central Government. The success has been achieved in obtaining adequate political support from policy makers through the suggested influence mechanisms and this support is ratified in legal documents: it has been initiating the need to review legislation in force and to regulate service provision in compliance with implemented strategy. This mean that the relevant agencies of the Armenian executive and legislative powers are continuing the long-term process of legal and political regulation of the filed within their own framework of rights and responsibilities even after the completion of the project. Sustainability One of unique feature of the proposal is the fact that the activities suggested within the framework of the project can ensure sustainability of initiative at the various levels: financial institutional and policy. Financial and institutional sustainability In particular, it is proposed to create new unit for provision of municipal services in street cleaning and solid waste management. This new company does not imply on opening new positions within the company and therefore it does not entail any financial burden on the local governments’ budgets. The company uses economy of scale to increase service quality without tangible increase of service fees. After the completion of the initial stage of project (4 months) the company has worked on financial sustainability and reached financial sustainability on the end of 8th month of the project. After end of the project all property of the goods and results of the project have been transferred to the newly established company. Final Remarks The Waste Management project is one of the first examples in Ararat region for the implementation of a homogeneous policy among 15 towns and 4 bordering communities. The project aims at providing an organised policy for waste collection and disposal within Vedi. This area is wide and quite homogeneous from the geo-morphology point of view. As a consequence, it is necessary to underline the observations as follows: In fact the logic of proposed activities implies the establishment of one new company formed by Vedi Intercommunity Union .:62:. • As in almost all developing countries the problem of waste is not taken seriously; • In particular, waste originating from plastic, packaging and all plastic-derivatives are not considered “eco unfriendly” products; several “landfills” scattered on the Armenian territory). • Materials that have a long waste timing such as glass, metals, resins are not taken into account; • Liquid waste materials such as oils, chemicals, etc. are not taken into account; • Problems arising from the asbestos disposal are not considered. Another objective was to transfer people it is possible to turn waste into: i) a finished product (secondary raw material); ii) compost to fertilize cultivated fields; iii) energy enhancement (incinerator); iv) use of waste products and products for road de-bottlenecking (bridles, hydro geological management, etc). It is necessary, to launch a first localisation of waste collection differentiating it: plastic materials separated from organics, paper, etc. Another main problem has been to cordon the landfill area. This has been realised throughout the use of compactors and the purchase of a new caterpillar and buckets for existing tractors. The final result was the first managed and controlled landfill. It should be noted that the culture of these populations is heavily influenced by their former membership in the Soviet bloc. After the “collapse of the bloc” all those – even minimum- forms of economic support have been ended as well as the social organization imposed by the Soviet economy through its typical forced planning. An economy that has just come in the free market necessarily needs to supply energy in terms of gas, oil, electricity, but in particular it needs raw food and materials necessary for sustenance. The social reorganization and an excessive abandonment of rural areas (exodus toward the capital, the only attractive centre in a small Country) necessarily entail the implementation of development localized policies. At the same time it is important to generate forms of income coming from agricultural and from the use of products presenting in target territories. About 150 plastic containers have been provided to the citizen (officially delivered at home); 50 metal containers have been supplied from Ararat Municipality and other more 45 metal containers have been recently purchased. These containers, suitably localised and put together with the existing collection of old containers, constitutes a network of containers and a new way for the waste collection that has being implemented with two new compactor trucks specially purchased by the project. It is important to remark that the garbage truck has been purchased by USAID and another small open dump truck has been provided. Conclusions The project aimed at enhancing the territory focusing also on the environment to develop the tourism economy. To do that it is necessary to respect the environment and above all to generate those utilisation and development forms able to respond to tourists’ special needs. For sure, tourists consume and requires per capita much more energy than the local population: thus, the appropriate recycling and reuse of waste is a key for the overall social reorganization and economic production that mainly focus on an qualified local tourist offer. The project has been supplied with a software able to individuate the most suitable logistic route both for the four collectors and other existing harvesting machines in order to save fuel and optimize the workforce. The Community interested by the project is composed of small towns presenting agricultural culture. Plastic and other kind of waste are the prerogative of a modernization process that, if uncontrolled, will cause a boomerang effect for the purposes of environmental compliance. The “waste management” project wants start a cultural change in local residents’ mentality and aptitude in order to anticipate a problem that if not immediately addressed could result in serious environmental effects (see the Opportunities The achieved experience should lead not only to re-use of recyclable materials, but also it should be considered as an best example for .:63:. a widespread waste collection in the entire Armenian nation. Finally, since now it is possible to exploit computer techniques in order to optimize the collection system in terms of a real fuel saving, human resources, effective waste disposal service. Furthermore, it is also possible activate a series of formal relationships with Italian companies who have gained great experience in collecting and re-differentiate waste material. 2. Establishment of Tourists Visit and Accommodation Centre in “Khosrov Forest State Reserve” THE MICRO PROJECT IN BRIEF Title: Establishment of Tourism Visit and Accommodation Centre in Khosrov Section of the “Khosrov Forest State Reserve” Location: Protected area of Khosrov State Reserve C.Vedi – Ararat Marz Region, Republic of Armenia Total duration: 12 months Applicant: Vedi Intercommunity Union Partner/s: Khosrov Forest State Reserve; W.W.F. Armenia Brief Description: Through the construction of a building (135 sqm) well placed in the environmental context it has been possible to provide 8 beds in two units (accommodation capacity: 448 guests in 7 months of opening), accompanied by a service bar cafeteria-restaurant, in addition to strengthening the website of the Reserve and the active promotion of tourism, it has been possible to pursue the goal of providing tourist accommodation improving the infrastructure of the Reserve and the visibility and accessibility to national and international level. It has been possible to create new jobs in the Centre (whose employees receive appropriate training) and encourage the supply of agricultural and handicraft activities in nearby community of Urtsadzor. It has been possible to contribute effectively to the promotion of tourism in this area, where some animal species in risk of extinction live, such as the “Leopard of the Caucasus "and the "Black Griffons" Development of Ecotourism in Khosrov’ State Reserve. The project has been organized into two milestone: Objectives: 1. Creation of infrastructure to improve service of the Reserve 2. Creation a marketing plan to improve the incoming of tourism, mainly from abroad country (Russian, American, European) Estimated results: Main activities: Target group(s) - Improved accommodation and service in the reserve - Improved tourist incoming - Building of Tourism Info Centre - Creation of Strategic Marketing Plan - Improvement of the quality of the Reserve and its principal attractions Non profit organization, tourists Directly: Khosrov State Reserve Final Beneficiaries: Indirectly: ICU Vedi, Rural Comunity of Urtsadzor (about 3.000 inhabitants); Tour Operators, Tourists. Total Cost: 147.890,30 Euro Cost’s Allocation: 105.787,00 € EU Funds + 42.103,30 € Co-financing provided by the Partners .:64:. Rich landscape of the reserve provides diverse habitats for 393 species of vertebrate animals. Steep slopes, moist meadows covered by high-grass serve as a habitat for such mammals, as brown bears and bezoars goats, which are registered in the Red Book. Wild boar, wild cat, wolf, fox, badger, European hare are also not rare here. Background The Khosrov Reserve has been established in 1958. The Reserve covers the area of 29,196 hectares, and is mainly located in Ararat Marz. Several arid forest, phrygana and semi-desert landscapes of the central part of Armenia with the rare symbiosis of plants and animals, 1843 plant and 393 animal species remain here. The major part of the territory of Khosrov State Reserve is located on steep mountain slopes. The area of the Reserve covers southwestern slopes of Geghama mountain range and the slopes of Urts, Yeranos, Dahnak and Khosrovasar mountains stretching from the semi-desert zone to lower boundaries of higheastern part of Ararat valley and stretches from north-west to south-east. Historically it was covered by forest, and erosive processes are active now. The climate of the Reserve is mainly dry continental with hot summers and cold winters. The average annual precipitation is 400-600mm: in high mountainous zone it reaches 800mm.The dry continental, temperate warm and moderate climate types with warm summers and temperate cold winters are formed. The Reserve is rich in natural historical heritage and is considered as one of the picturesque and interesting sites of the Republic of Armenia. The landscape typical of central Armenia can be found here with unique flora and fauna symbiosis that host such species as Armenian Mouflon, Bezoars Goat, Panther of Asia Minor, Caucasian Brown Bear, and other rare animal species. The site is rich in historical – cultural monuments, such as rural communities, monasteries, churches, and other constructions. According to historical sources, Armenian King Khosrov B. Kotak (IV century) has established “Tachar Mayri” and “Khosrovakert” forests in this area. Various animals were brought to obstructed forests by his order, which became the royal hunting place. The high mountain zones are covered by brown mountain-forest soils and arid mountain gray soils. Black earth type mountainous meadows soils can be also found some areas. The river network of the Reserve area is presented by Azat and Vedi rivers, and their numerous tributaries. The area hosts a great number of freshwater and mineral springs and two natural lakes in Mankunq gorge. The Azat and Vedi rivers originate form the high south western slopes of Geghama mountain range and create deep (up 500m) gorges and V-shape valleys. Garni temple and Geghardavanq in Garni gorge, Havuts Tar and Aghjots vank monasteries in Qegho gorge are among the famous monuments. Rich natural-historical heritage of Khosrov State Reserve provides an opportunity to organize diverse forms of tourism in the area, combined tours and excursions. Ecotourism, historical-cultural, and research forms of tourism are allowed in this area based on the limitations of the state reserve regime. Flora of the Reserve is rich by rare and extinct plant species. More than 80 species that are included in the Red book of Armenia are represented here. 1849 species of vascular plants grow in the Reserve, which are represented by 588 kinds and 107 families. Flora is represented by 24 endemic species, which occur both in the Reserve and bordering areas. Forests cover only 16% of the Reserve territory. 20% of the area is occupied by meadows; remaining 64% is covered by symbiosis of various types of xerophytes. Objective(s) The overall objective of the project is to develop the tourism in the Ararat Sub Region. As according with the strategic objective of Ararat Martz Region the action contributed to bring tourist in the entire Region by the attraction present in Khosrov’ State Reserve. The action aims to utilize the endogenous potential, diversify the economic sectors and make use of competitive advantage of proximity to Yerevan in order to increase employment and improve quality of life as it .:65:. is near the region, so to reach this strategic objective it necessary: • To exploit the existence of natural places of interest; • To exploit rich Flora and Fauna; • To exploit the opportunity of being close to the Capital; • To enhance the eco-tourism. France, Spain, Italy, UK, The Netherlands and Nordic countries, and Japan too. Russia begins to play an increasingly important role. So marketing of ecotourism potential of Khosrov Reserve should emphasize the middle – class to top segments of the European, Russian and North American markets. Flexible pricing policy would allow inviting many Europeans. Promotion in North America would probably be laborious, as US citizens are very demanding for comfort and security challenged by political and public resentment in different countries. The specific objectives of the present action are to improve the service in the Khosrov’ State reserve and to create a marketing strategy to bring new tourist in the Reserve. Most of international eco-tourists come from developed countries: USA, Germany, France, UK, The Netherlands, and Nordic countries, Spain, Italy and Japan. Russia begins to play an increasingly important role. So, marketing of ecotourism potential of Khosrov Reserve should emphasize the middle-class to top segments of the European, Russian and North American markets. Usually, in a year, about 300 foreigner tourists visit the Khosrov State Reserve, they are from Russia, USA, Germany, and 5000 people from Armenia. They come to see the State Reserve and looking for the rich Flora and Fauna that the Khosrov State Reserve has; some of the plants and animals existing in the reserve are registered in the International Red book, as species in peril. There are a lot of monuments in the Khosrov territory which are undiscovered. For the ecotourism this place is undiscovered for the whole world. But the fact that this place is undiscovered for the people who like ecotourism it results from the lack of marketing strategy. Some of the tourists who visit the Khosrov State Reserve get information from Internet; some of them calling the tourist agencies, but the most part of the tourists get information from the native people, when they arrive to Armenia. There are no accommodations for the tourists in the Khosrov State Reserve. That’s why they the possibility is only a one-day-tourism and have no possibility to spent money in the reserve. This has its negative inflection on the tourism and social life of the area. Relevance of the action On the basis of the analysis ex ante, according to the feasibility study of REDAM I and regional development plan of Armenia in the following session are identified the main issues about Khosrov’ State Reserve. The lack of accommodation and the lack of service are the mainly issue for Khosrov State Reserve. Actually the possibility for accommodation is in Urtsadzor, where there are just three comfortable houses that can host 12 people. Urtsadzor, is the nearest populated community of Khosrov Reserve. Near the Khosrov State Reserve there are two farms that can host 5 people. Near the Khosrov state Reserve even in Vedi there are no restaurants, hotels, places of interest where the tourists can spend their free time. There are no good specialists, guides, specialist in the tourism sphere who can tell everything about the flora and fauna existing in the Khosrov State Reserve. Now in the reserve the guardian “does this job” but he has not enough knowledge of flora and fauna existing in the Khosrov State Reserve. The Infrastructure of Khosrov Reserve is poorly developed; it is isolated from basic national infrastructure and only in the southwest is linked with densely populated Ararat valley, Yerevan- Garni and Yerevan – Meghri motorways. Lack of infrastructure leaves natural ecosystems intact, but hampers ecotourism development. There are no asphalt roads, water pipelines, transport or other communications in the reserve. Electricity and telephone lines are absent, except in the “White House”, a small lodge built in the Khosrov Gorge for scientists. Total length of dirt roads used inside the reserve is Most of international eco-tourists come from developed countries as USA, Germany, .:66:. about 150 km, but most of the roads become hardly passable during bad weather, in spring and autumn. The road which led to the Khosrov State Reserve is in bad condition. The road from Vedi to Urtsadzor is better than from Urtsadzor to Khosrov .It is asphalted. The road from Urtsadzor to Khosrov once was asphalted but during the years it became dirt (soil) road. In 2001-2006 31,5 km of new trails were bulldozed and 70 km more were repaired to improve fighting with wild fires. properly organized and managed. It is important to remind that inside the Khosrov’ State Reserve is prohibited hunting, fishing and to practice all the types of sports. Other target groups and direct beneficiaries are the Khosrov’ State Reserve and ICU Vedi. As indirect beneficiaries, or target groups of the action, we could mention: • The other problem is the lack of the poster indications in and out of the Reserve. There are no boards about the roads, and the tourists get to the Reserve asking the native people how they can get there. Inhabitants of neighbouring villages who can sell to tourists their local products or souvenirs; SMEs of Vedi area which are involved in trade or services sectors. Moreover, the lack of information boards in the main site of the reserve doesn’t allow to describe the site and don’t allow to tourist to understand the historical or natural importance of the place. Strength and Weakness of Khosrov’ State Reserve • The Fame of Khosrov State Reserve; There are no poster indications inside the Reserve. There is the need to put indication posters to give information about every monument, plant, animal existing in the Khosrov State Reserve. The lack of these materials has its negative inflection on the tourism, and the tourist looses the interest. • Rich Flora and Fauna; • Bird watching site; • Existence of natural places of interest. Strength: Weaknesses: • Absence of a national and regional tourism development strategy; • Lack of understanding of the concept of tourism as an industry; The main target groups are the following: • Lack of public information about cultural, historical and natural sites; Nature-oriented visitors: • Scientists and students: botanists, zoologists, archaeologists, architects, geographers and others; Lack of public information about cultural, historical and natural sites; • Poor organization of tourism • Participants of specialized tours: bird watching, botanical and others. Bird watching tours are best known around the world. Unsatisfactory condition of roads, trails and passes • Lack of infrastructure for ecotourism development • Lack of roadblocks, information boards and signs. Target group(s) • • Visitors interested in nature: Unlike the previous category, they have broader, but more superficial, spectra of interests. The establishment of Tourism Visit and accommodation centre in Khosrov Reserve has improved: Mainstream visitors: Majority of tourists coming to Armenia belong just to this category; they are desired visitors to Khosrov Reserve if the eco-tourism is .:67:. • The quality of local services for tourism sector, food providing, transport; • The production of food; • The protection of historical monuments; • Coordination of the reporting procedures; • The production of national handmade things. • Continuous exchange of the information between the partners concerned; To ensure better conservation of Khosrov Reserve’s historical and natural heritage, ecotourism development should incorporate the following approaches: • Coordination of the relationship with the project PMU • Contribute to national and international reputation of Khosrov Reserve, conservation and maintenance of unique natural ecosystems for their spiritual, scientific, educational and tourist values; • Control ecotourism and visitations to preserve natural (or near – natural) habitats and mitigate existing threats; • The ICU Vedi office is responsible for the management of the project activities and follow and control. They are responsible for the accounting of the expenses and the transmission of document to Tacis Project Management Unit. The audit control and the certification of the expenses has been provided by external expert. Work Page 2 - Accommodation and Service Prevent activities that contradict with the Reserve’s objectives; Action 2.1 - Preparation of tender The strategic activities of ecotourism and visitors program development are: According to all necessary authorization for building and to preliminary project, signed by Technical Authorized expert, the final beneficiary prepared the call for tender for the enterprises building the Tourist Centre. The call for tender respected all international Rules for public Tender (PRAG), the Guidelines of Tacis Program and Armenian procurement Rules. • Assessment of visitors` needs and expectations; Output: call for tender • Provision of high – quality services; • Development of essential infrastructure; Action 2.2 - Establishment of tourism Visit and Accommodation centre • Maintenance of flexible pricing policy; • Marketing and advertising. • Integrate to national tourism development industry; • Move towards better life of neighbouring rural communities; The tourism centre allows being aware of tourism possibility in the reserve, and being capable to accept guest and other factors. It has been built at the entrance of Khosrov State Reserve on 2 ha area. A 135 m2 construction has been realized with natural local stone. Inside this building there are a Reception Room, a Security/Medical Room (on the left of entrance), 1 public toilet, a kitchen serving a small-size restaurant with dining hall with a bar, a fireplace, tables chairs, sofa and TV set. On the right and left sides of the central body of the building there are 2 mini-apartments with sitting rooms with sofas and other facilities, 4 bedrooms each with double beds, and 2 bathrooms. Description of the action and its effectiveness Work Page 1 - Project management The activities of this work package want to guarantee an efficient, operative administrative, organizational and technical management, as well as to facilitate the coordination of all the partners involved in the project. The present activity consists of: • General coordination of the activities regarding financial, and technological matters; Output: tourist Visit and Accommodation centre • Coordination of the work between the different activities; Work Page 3 - Marketing plan The Creation of Marketing plan has been .:68:. implemented to improve the tourism incoming. A successful marketing plan can create a strong product or service identity and it helps the Reserve to spread its knowledge in the entire world. The last two items are already implemented and they can support the implementation and the success of this project. Output: Booklets or brochures in Russian and English; Action 3.1 – Web marketing strategy Internet is currently defined as the “global village” and to be part of this village is no longer an option but a necessity. A presence on the web is a vital part of marketing. The ability to monitor internet advertising and marketing activities closely, makes web strategy an essential component of advertising and marketing activities. This is because Internet is often an excellent way to test a new market or provide support to launch foreign market. Online marketing strategies and tools could have an effective presence of the Reserve on the Web for Italy, Spain, Russia, USA or any other European countries. The action organized a strategic planning for Khosrov’ State Reserve; the program consists of a business solution for the web site to increase the visibility mainly in the foreign country. Action 3.3- tourist packages Creation of ecotourism packages has foreseen the organization of the activities for the tourist to spend their time as guest in the reserve. The packages allow to stay 3 days / 2 nights or one week. The management of the centre has implemented this activity. The package spreads to main Tour operator of the Region. Output: Tourist packages Action 3.4- training - creation of new job Training for local young people to create a guide for the reserve. The training was organized approximately on this question: Output: • Purchase of new dominoes (.com .ru) or adapt the current web-page; • Rebuilding of the web site with strategic keywords to increase visibility; • Purchase of instruments to optimization of the web site; • Maps of the reserve (in Armenian, English, etc.). English language; Improve or create the indication to arrive to reserve mainly along the street from Yerevan. The indicators have been putted in strategic site on the street Output: street indicators The main output of this action are: • • Action 4.1 – Indication This action aims to create output useful to know the possibility of eco tourism activities in the reserve. A video film about the reserve; Flora and fauna; The action aim to improve the situation in the reserve Action 3.2- Informative “packages” • • Work Page 4 - Improvement actions in the reserve A definitive web marketing strategy was implemented by specialist of Internet Company. Booklets and brochures; Historical cultural heritage; Output: 3 Training courses with the duration of one week each one Placement of the Reserve web site on the main research engines.(Google, Yahoo, etc), • • Action 4.2 – informative boards • .:69:. Identification of the main interest site in the reserve by putting on this site of the information board about historical or natural importance of this site; • Identification of interest routes suggested for ecotourism in Khosrov Reserve. the project individuals. The working methodology forecasts a presentation and a promotion of the entire project, together with its goals related to the start-up phase, as well as a functional and transversal propagation action, in every working phase, regarding best practices and outcomes of the project. Output: • Historical and/or natural Board; • Main interest routs. Work Page 5- Monitoring and dissemination Monitoring Equipment and machinery acquired The beneficiary has periodically checked compliance with the commitments with the Project Steering Committee and the respect of the EU procedures for the correct implementation of the micro-project. In this project, a Tourism Visit and Accommodation Centre have been realised that can provide 8 beds in two unit, accompanied by a service-bar and a cafeteriarestaurant. The accommodation capacity of the Visit centre is about 448 guests for an opening period of 7 months. The inspection consists of an examination of the works/goods/services claimed to ensure that they are as specified in the approval, appear to be technically sound and that the claimed costs are justified. During any inspection appropriate photographic evidence have been obtained. Methodology The action has been organized according to the general guidelines of Tacis Project and according to international rules of Public Interventions (EU / PRAG). The Beneficiary demonstrated compliance with all relevant regulations, planning permission and consents. According to General Guidelines, ICU Vedi has been responsible in front of the REDAM II Applicant in case the present project partners would fail to respond the terms and conditions of the project partnership agreement and to the (technical or financial) role as foreseen by the micro-project application. Dissemination of Information Information divulgation, promotion and awareness actions have been presented, horizontally, in all the phases of the project. It aims to inform the whole territorial areas concerned, on the importance of the initiative for economic development territories, evaluating the opportunity of a subsequent transfer of the project outputs, as well as to verify the replicating conditions. ICU Vedi organized and managed the call for tender when necessary for the implementation of the action. ICU Vedi organized the monitoring and the accounting of the expense. The main goal of the promoting activity is to encourage a wide awareness on the project issues and on the replicating of a local development model, already tested by the Leader’s experience, in particular to stakeholders, to the representatives of 1categories and association’s, in order to allow a reasonable participation and the approval of start-up initiatives to be implemented. All information, responsibility and co-financing for the action are contained in Partnership Agreement signed by ICU Vedi implementer of the project and Khosrov’ State Reserve as Partner. Sustainability The lack of detailed statistical data or marketing analysis on tourism in the area involved in the project created some difficulties to demonstrate the effective sustainability of this project. Nevertheless, basing on the official data regarding the number of visitors provided by From an organizing point of view, each project partner has outlined their own local scale awareness activity, although some activities have been carried out in a transversal way, forecasting a jointly cooperation between all .:70:. the management of the Reserve (about 300 tourists in 2007), and taking into consideration – as an assumption – the results of a simple survey conducted among the Tour Operators in Yerevan, regarding the common prices adopted for the visit tours, can be stated that, at least, a 26% increase of current number of visitors in Khosrov Reserve allows the new Tourism accommodation Centre to work with some profit that could be reinvested in other interventions for the common interest or Public Utilities (i.e. rehabilitation of connection roads, historical sites, etc.). The following table can help to explain the potential sustainability of the project: Hypothesis of Tour Package for 3 days / 2 nights (Currency: Euro) Months of Activity (15 April -15 October) 6 Work Weeks 24 Outgoing Costs Description Unit Num. Unit Unit Rate Total Amount Salaries (5 workers) months 6 1047 6279 Utilities & Supplies months 6 30 180 Building maintenance & depreciation rate months 6 833 5000 Subtotal Fix Costs 11459 Fuel 1674 Guests Turnover / weekly 2 4 6 8 10 12 14 16 48 96 144 192 240 288 336 384 447 893 1340 1786 2233 2679 3126 3572 2121 2567 3014 3460 3907 4353 4800 5246 13580 14026 14473 14919 15366 15812 16259 16705 Guests Turnover / weekly 2 4 6 8 10 12 14 16 Total Presence (potential) 48 96 144 192 240 288 336 384 190 190 190 190 190 190 190 190 9120 18240 27360 36480 45600 54702 63840 72960 -4460 4214 12887 21561 30234 38890 47581 56255 188 188 188 188 188 188 188 188 -4648 4026 12699 21373 30046 38702 Total Presence (potential on 24 weeks) Meals (1 Breakfast + 2 main dishes) Subtotal Variable Costs Total Outgoing Incoming F/B Accommodation Fare/person Total Incoming Gross Amount (Incoming - Outgoing) Social Tax: 3% on salaries (Exemption for other Taxes) Net Amount It is reasonable to admit that the project allows to create a good opportunity to give hospitality to the tourist and be sustainable with an increase of 26%, at least, on the number of visitors of the last year (about 80 people on 300 visitors of the former year). 47393 56067 Final Remarks The project enabled the ex novo construction of a building that fits perfectly in the landscape of the Natural Reserve within the National Forest Khosrov. The building has 8 beds in .:71:. two adjoining rooms, a visitor and information centre, a bar-cafeteria and a small restaurant. The Reserve’s website has been upgraded and empowered while an activity of tourist promotion has been carried out improving the quality of a tourist offer, the infrastructures of the Reserve as well as its visibility and accessibility at national and international level. The project made a significant contribution to the promotion of sustainable tourism in the area. Furthermore, the territory is a natural habitat for some rare animal species threatened and at risk of extinction. realized by the Project. It necessary to book in advance and the guest quarters can accommodate just ten people. 6. Finally, during the summer the access point becomes also a place to find some typical food and crafts of the area. Conclusions The realisation of the access point has been carried out also by the contribution of the WWF that cooperate with the Project in a synergistic way. Thanks to these kinds of intervention, the park aims at preserving the environment and the biodiversity as well as attracting a wider public always more aware and respectful of cultural and natural heritage contained therein. 1. The Khosrov park (30,000 hectares) is mainly located in the Ararat region whereas a small part in the region of Kotayk. Due to its special characteristics the park is a biodiversity reserve, as the climatic conditions and the territory morphology have been preserved intact over the centuries. The flora and fauna constitute a unique natural heritage in terms of conservation of species (listed in WWF Red Book). The idea of enhancing and improving the environmental and cultural potential in this area is in line with Armenian Government strategies. According to this policy, it is necessary for the economy of the area, to attract and accommodate an increasing number of tourists coming in the area not only for the religious attractions (religious tourism) but also for the cultural and naturalistic ones. Furthermore, it is also necessary to differentiate tourism offer: until now the religious tourism has attracted “old” people particularly anchored to the painful phenomenon of “Diaspora”. a. Moreover, in the Khosrov park there are several medieval ruins that represents a unique architect-historical heritage of the great Georgian-Armenian culture. b. It should also stress that Armenia has been a crossroads for trade among Asia, territories of the former USSR and Middle East. 2. The realization of the “access point” represents an important evolution for the park: classrooms and halls have been set up. The Direction of the park is located in surroundings Vedi town. Opportunities In collaboration with some tour operators, it is possible to subscribe a series of agreements to provide tourism opportunities. In agreement with the Vayots Dzor region, a weekly stays may be identified to offer naturalistic, historic, cultural, environmental and religious package holidays. 3. The access point located in extraordinarily beautiful scenery and it can be reached through an unpaved but well maintained road. The access point is the starting point for excursions by foot or mountain bike. In the future, it will be possible to also set up horse trails (equestrian tourism). Moreover, the distance from Yerevan should invite Armenian local authorities to support activities enabling to boost the financial resources to the area. That is why it is important to enhance the cultural and naturalistic heritage in order to increase the accommodation capacity (realising small hotels and “Bed&Breakfast” accommodation). 4. The access point provides detailed information about all trails in the park, attractions offered by natural heritage and landscape in terms of protected flora and animal species as well as middle age settlements and ruins. 5. The park offers also the possibility to spend few nights (1-2 days) in the guest quarters .:72:. 3. Establishment of Agri-Mechanisation Centre THE MICRO PROJECT IN BRIEF Title: Establishment of tractor station for “Khor Virap Agricultural association” consumers ‘cooperative Location: Poqr Vedi, Ararat Region, Republic of Armenia Total duration: 12 Months Applicant: Vedi InterCommunity Union (ICU Vedi), 5 Toumanyan Str., Vedi, Ararat Marz, Armenia Partner/s: Essentially, “Khor Virap” Agricoltural Association – Consumers’ Cooperative, founded in 2003 with 60 members; nevertheless, within the frames of this project the Consumers Cooperative cooperated with “BSC” Business and Community development centre (established in 1994) which provided with a number of proper trainings and consulting. Brief Description: The Project, through the support in the provision of 2 new tractors and agricultural equipment, machinery and tools (2 trailers, soil milling machine, cereals and universal sowing machines, hay rakes, etc.) foresees the creation of a centre for development and distribution of agricultural mechanisation and services enabling to generate benefit not only to the Khor Virap cooperative’s members, but, through the new renting service increasing the competitiveness in the agri-service market sphere, could create advantage also to the external farmers, that after the priorities and needs of the Cooperative could rent and have at disposal new and innovative technical means in short time and with cheaper prices, ensuring the economic sustainability of the service and maintenance of the means, better quality of the products and improved life conditions for the farmers of the area. Overall objective: To increase and improve the welfare of the population as well as to provide the sustainability of the community by importing and establishing tractor station. Specific objective: Objectives: To increase and improve the welfare of the population is necessary: - To teach the right usage of the Agricultural rules - To promote the increase in fertility and in quality - To strengthen the farmer’s professional capacity - To increase the farmers’ income With the purchase of modern equipment and tools (2 tractors 2 trailers, 1 combined harvester, 1 soil milling machine, 1 combined drill machine, 1 hay rake), the estimated results of the Estimated results: project are also the increase of crop productivity, soil fertility and income, the decrease of physical work, fuel consumption, general expenses, waste of time and creation of new job opportunities. Main activities: The main activities are: purchase of agricultural machines, establishment of agrimechanization and tractor centre, realisation of agricultural works, organisation of training courses, consulting and sale. Target group(s) The main target group of this project is “Khor Virap Agricultural association” consumers ‘cooperative, their CC member farmers, the farmers of Poqr Vedi community who are not members and also the farmers of neighbouring villages who are involved in production of agricultural products and feed for animals. Final Beneficiaries: The direct beneficiaries are “Khor Virap Agricultural association” consumers ‘cooperative and its 72 farmer members, the neighbouring farmers, other associations who provide or receive services and some specialists. The indirect beneficiaries are the members of the farmers’ families, traders, dealers, the community, the neighbouring villages and the final consumers. Total Cost: 52.162 Euro Cost’s Allocation: 44.337 € EU Funds + 7.825 € Local Co-financing .:73:. corresponding the methodology, which have brought to its realization. Objective(s) “Khor Virap Agricultural association” consumers’ cooperative of Ararat Region RA was founded in 2003 with its 60 members. Taking into consideration the geographic position, climate and adequate conditions the CC started its activity (till now is doing) in the field of fruit growing, vegetable growing and cattle breeding. Besides, these fields are to be the sources of survival. Relevance of the action The “Khor Virap Agricultural association” consumers ‘cooperative in Poqr Vedi village with its members, as well as the rest of the villagers have certain problems and obstacles connected with producing fruitvegetables, getting qualified agricultural food, which has negative effect not only on the CC, its members but also on the socio economic condition of their families. The main problem is that the farmers do not have necessary agricultural techniques to organize and implement their work effectively, and the available techniques is old enough and soviet style, the advantages and capacities of which are poor compared with the our days technologies. It has the following effects: Nowadays, in this scientific engineering era the qualified and multifunctional technologies and equipments making the farmer’s work easier and decreasing the time play a great role. The means of CC i.e. the techniques for the agricultural needs are the products of Soviet Period, the capacity of which doesn’t provide proper quality and quantity of agricultural product. To solve the above mentioned problems the CC foresees to implement the Grant project of Agri-mechanization and Tractor centre, the overall objective of which is to increase and improve the welfare of the population and sustainability of the community by importing and establishing Tractor Station. In fact, the Tractor Station obtained by the Grant represents the following agricultural techniques, equipment and or machinery: • N. 1 plowing Tractor with 80 hp; • N. 1 plowing Tractor with 50 hp or less; • N. 1 soil milling machine; • N. 1 cereals sowing machine; • N. 1 universal sowing machine; • N. 1 tool for raking the hay dried; • N. 2 trailers for tractors. To apply the agricultural rules correctly; • To promote the increment of the fertility and quality; • To strengthen the farmers’ professional capacities; • To increase the farmers’ income. Great fuel expenses; • Great chemical expenses; • Low quality sowing; • Waste of time; • Low income. Besides, the CC and the community population rent techniques to implement agricultural works with high price but the latter may not satisfy the farmers need and delay the main works. Because of the lack of the new equipments the farmer doesn’t implement the organization of agricultural works in time that brings to the ineffective result of the organization of agricultural food product i.e. because of insufficient use of agricultural machinery during the season the farmer conduct agricultural works late (Sowing, smoothing, and chisel). This results late harvesting as well as low quality product (as a result of frosts). As a result the farmer has the following selling problems: The specific objectives of the “Khor Virap Agricultural association” consumers ‘cooperative are the following: • • To reach its specific objectives the CC has implemented a number of activities • The low quality food is impossible to sell in market, so has to deliver for processing with lower price; • Sells agricultural food of less quantity because of the luck of the product. Thus, in order to give an efficient solution .:74:. to the above-mentioned problems, the CC through this project within the grant has obtained agricultural techniques with adequate equipments and accessories and it operated in following way: • • Description of the action and its effectiveness In the frames of this project “Khor Virap agricultural association” CC implemented the main activities, which have been directed to reach the specific objectives i.e. It has provided the service for its members with prices lower than market ones; For non members: 3% higher than the price foreseen for its members. Thereby the CC obtained the technique through the organization that imports from European countries. The agricultural technique has enough capacities and advantages and has its positive effect on farmer’s work activities by reducing expenses and increasing incomes. • To apply the agricultural rules correctly; • To promote the incensement of the fertility and quality; • To strengthen the farmers’ professional capacities; • To increase the farmers’ income. The correct organization and realization of those activities brought to the implementation overall objective i.e. through importing and establishing tractor station have been increased and improved the welfare of community population as well as has provided the sustainability of the community. The main target group of this project (approximately 400 people) represent The “Khor Virap Agricultural association” CC members’ farmers, non-member farmers of PoqrVedi community as well as the farmers of neighbouring villages who are producing agricultural foods and feed. The activities implemented in frames of the project consisted of several phases, which are interconnected with each other i.e. This project has benefited not only the CC members and its families but also the community population and the farmers of neighbouring villages (approximately 1.200 people). Thus the final beneficiaries may be classified as direct & indirect. The direct beneficiaries are: • Farmers members of the C.C.; Getting success and positive result depends on the efficient implementation of each phase activity. The detailed description of each activity and its efficiency is given below: • Khor Virap Agricultural Association; 1. Import of the technique and equipments • Specialists; • Service provider. In this phase the CC within frames of the grant has obtained and imported the following agricultural techniques: The indirect beneficiaries are: • The members of farmers’ families; • Traders; • Transporters; • The community & neighbouring villages; • The final consumer. .:75:. • 1 Plowing Tractor with 80 hp • 1 Plowing Tractor with 50 hp • Tools for sowing the seeding cereals (1 soil milling machine + 1 combined drill machine) • 1 Tool for raking the hay dried • 1 Universal combined harvester • 2 Trailers The obtaining of technique enabled the CC to organize its works more effectively and affordable i.e. provide services not only to its members but also the inhabitants of neighbouring villages possessing greater income. The CC has foreseen to provide these techniques to its members with below market price and non-members with below market price but 3% higher than the price foreseen for its members. goods and fruit-vegetable. 2. Establishment of tractor centre station After receiving agricultural machinery techniques the CC rented special area – parking place. For that parking place a guard has been employed as a worker controlling the parking place. Then special staffs have been formed with 11 workers (members of CC). Thanks to workers the CC was able to implement the effective usage of techniques and satisfy the order of each farmer in time. Those new techniques have the following advantages: 3. Implementation of agricultural works N. 2 Plowing Tractor with 80 and 50 hp each one In this important phase the CC operated the obtained agricultural technique receiving farmers’ orders previously. The agricultural works include the following activities: It is foreseen to purchase tractors; however this new equipment or technique compared with the old one, currently in use, can ensure a substantial improvement. It’s multifunctional, conducts qualified sowing, saves the fuel, seeds (as result of the use of old technique it’s requested 45 kg maize per hectare meanwhile thanks to this technique it’ll be 15 kg maize per hectare), chemicals and implements efficient harvesting without waste. • Preparation of the soil • Organization of the tillage, chisel and smoothing • Sowing • Organizing the harvest The received agricultural techniques serve for the implementation of the following works: Tools for sowing the seeding cereals The advantage of this tool (combined drill) is that it’s also multifunctional i.e. if the old technique conducts one action (it sows wheat with one action and with the other action – cover it) then this one does several actions (in one season it sows different cultures – maize, clover, beans etc). It may be used continuously. Tools for mowing the soil • Soil tillage, with two sowing tractors • Soil mowing and seeding bed preparation • Seeding, with sowing machine • Hay and forage raking • Organizing harvest and transporting it by the trailers Implementing these activities in time and correctly (i.e. not later than the season) the farmers obtain the best results, qualified products, and reach harvest with great profit. The advantage of this tool is represented by the support in the preparation of the seeding bed, smoothing the soil. Besides the operation of techniques, the CC provided its repair and preparation for the next activities i.e. it has been under control continuously. Tool for turning upside the drying Hay and forage The advantages of this hay rakes consists in facilitating the activities that till this moment are manually conducted. 4. Sale N. 2 Trailers After the harvest the CC implemented the sale of fruit-vegetable both in local market and in the country, the profit of which has been put into circulation increasing the expected benefit. Having its own trailer the CC saves its money and organizes agricultural works effectively. The trailer is not only a mean of transportation of agricultural techniques but also transports .:76:. For its productive implementation the CC has the following means and capacities: • • • • • • Poverty reduction If the farmer used to rent the techniques for 66 Euro for 1 ha, now there are savings, moreover it is possible to provide for the member-farmers for 55 Euro and the latter will gain 10 Euro. Office Computer with equipment and accessories Furniture Specialists, agronomists It is obvious that the Project activities are continuous i.e. with cyclical effect, which means that the CC each year is having expanded activities in the neighbouring villages therefore also duplication of results. 200 hectare from which: • 18 hectare – grape • 50 hectare - wheat and maize • 20 hectare – clover • The rest of the melon field cultures Equipment and machinery acquired: • Decrease of expenses • Saving the time • Getting and increasing qualified harvest As above described in the framework of the project were bought several agricultural equipment and machinery such as: Plowing Tractors, tools for sowing the seeding cereals (1 soil milling machine + 1 combined drill machine), tool for raking the hay dried, universal combined harvester, trailers • Creating and increasing new work places Methodology • Decreasing of emigration • Increase in the farmers willingness to work The methodology of each project activity is presented in the under mentioned table • Increase of productivity Organizing the activity chain correctly and effectively, the CC had the following successful results: Activity Methodology Import of the technique and the equipments The CC obtained the technique through the organization that imports from European countries the choice of which has been implemented by the following way. The CC called a meeting for the farmer members and government members where the choice of importing organizations and also the activities implemented within the project have been discussed. To set working the Tractor Station correctly the CC formed a special staff of 11 employees working in the following way: The establishment of Tractor Station - Through the developed application forms accept the application forms from farmer members and also non farmer members, coordination and compliment of the demand of each application form - Receiving fuel - Operating the technique in accordance to the demand of the farmer - Monitoring the works Besides, to provide the activity effectiveness of the formed stuff and CC applied to “BSC” LLC, which served proper consulting and training services by developing their capacities. Implementation of agricultural works This activity has been realized via CC and the formed stuff of Tractor Station. The main agricultural works implemented 3 specialized machine operators and 2 assistants. These works have been also be monitored by CC. Sale The product sale is organized through the following mode: The farmer himself sales the product The CC organises the sale of the product in the local market The product is sold locally via intermediates .:77:. Sustainability • Determined financial stability; as it was already mentioned, with this technique the CC implemented the agricultural works of not only its members but non members too; also it gave opportunity to the neighbouring village farmers to use the service by bringing extra profit to the CC. That is to say, is saving not only the expenses but also the extra profit, thanks to which is covering all the expenses and is having profit. The CC management has carried out a yearly increasing profit by the mechanic-operator. • Institutional level; nowadays the local self governing bodies support the founding of certain associations and its activities which is considers to be a stimulus for the further implementation of the type of works. Meanwhile, the technique obtained within the project becomes the property of the CC. • The Political level; the implementation of the project effected on the improvement of the social state of the neighbouring village inhabitants which took it as an example for the others for establishing certain associations and implementing corresponding projects. As it is known one of the promising branches of the economy of the country is the agriculture, and the latter like the other sectors have a relation to risks. The destined project in the condition of CC in comparison is less risky than the following advantages that are dominating • New Technologies obtained by the Grant within the project; • The existence of qualified specialists (mechanic operators, agronomists, specialists, management team) to organize the work; • Great experience of years in cultivating fruit-vegetable; • Favourable conditions of Ararat valley to produce fruit-vegetable; • The Local Market being close to the capital. But can be distinguished certain risks besides the above mentioned advantages • Natural disasters (winter and early spring frostbites, hail stone, flooding); • The usage of the VAT to the agricultural foods since 2009; • The danger of accruing diseases; • Closed borders; • Weak development of economy; • War situation. Final Remarks Thanks to the purchase of mechanical equipments and other modern and innovative agricultural tools the project realised a centre to develop and accelerate the agricultural mechanization of Khor Virap Agricultural Cooperative. Its services benefit both partners and/or members of the Cooperative as well as independent farmers. In fact, thanks to the “outsourcing” service, even the farmers outside the cooperative can use modern technical equipment in faster times and with more competitive prices. The Cooperative can ensure the economic sustainability of the service; an optimal management of resources, equipments and tools; a better quality of food and agricultural products and a better quality of life for the farmers in the area. Taking into consideration the abovementioned risks the CC while implementing the project tried to decrease that using the following prerequisites: • Implement the correct planning of the project, realization and supervision; • To involve reliable and experienced specialist as well as partners; • All the works to be done on the bases of contracts. The implementation of this project i.e. the optimal and rational organization of the activity chain improved the social state of the CC and its farmer-members as well as it determined stability, which it has been expressed by the following measures: 1. The feature of Armenian agricultural production is characterised by: a. A continental climate, which is cold in winter (with temperatures below freezing for tens of .:78:. days) and very hot during summer (hot and dry from April to October); b. Evaluation of potential new crops both for direct use (corn, vegetables, etc.) and indirect agro-industry production (for sugar beet, starch potato, maize, etc); b. This area aimed to an intensive agriculture is located mostly in front of Ararat Mountain. The surface is a flat of 2,000 Km2. This plain is heavily irrigated, even if it is necessary to restore the water surface redistribution network; c. Evaluation of agri-cultural times depending on agricultural mechanization and the opportunity to concentrate in right season the best crops. c. The essential characteristic is the strong farmland fragmentation that does not allow an adequate planning culture; It is necessary to redesign an intensive agriculture taking into account both the genetic evolution and all potential opportunities offered by a strong mechanisation. It is also important to consider the climatic and environmental characteristics that should be particularly favourable even for organic agricultural and crops. d. The agricultural fragmentation is on average about half hectare (from 0.5 to 0.8) per property; e. Another identified factor is the systematic lack of mechanical and agricultural equipment determined by a marginal presence of equipment coming from the former Soviet bloc. This equipment is old and no longer able to meet the needs of agriculture. 3. The potential reclassifications in terms of cultivated areas and mechanical equipment allows a redistribution of wealth both from new professionalism/skills related to agricultural processes as well as from agricultural products greatly improved in quantity and quality. f. It is easy to understand how it is quite difficult to implement a market-oriented culture; farmers usually produce for a highly individual and localized consumption; It is also possible conceive a market not only at national level but also international (at least linked to the surrounding areas). g. The project wanted to illustrate: the possibility of using simple machines/ equipment able to respond to the modern agricultural needs; Conclusions h. The project allowed a Cooperative composed of 72 members and consisting of more then 200 Hectare to dramatically improve the agricultural production, to reduce processing times through the use of specific machines/tools and equipment; to streamline and speed up the agricultural and crop operations/process; to provide a range of services even for farmers outsiders of the cooperative; to save on supplies of raw materials (by lowering the costs of seeds, improving the cultivation techniques and reducing the use of fertilizers as well as the energy consumption as fuel). The beginning of a new agriculture in terms of new methodologies and techniques, land ownership and varieties able to meet a changing market needs allow to rethink an economic development model that is based firstly on the agricultural development. It is important to start from the agricultural development before starting focusing on industrial development (even because the industrial development in these areas with no raw materials, is not competitive because of the reduction of labour costs). The scarcity of agricultural machinery prevents the Armenian economy to be able to boost and satisfy the demand of domestic and foreign markets thanks to a production increase both from quantity and quality point of view. 2. The opportunities resulting from the development of this project are: a. Re-definition of crops/agricultural development systems both in consortium/ association/cooperative form in order to overcome the extreme fragmentation of landowner); Given the high degree of fertility within the area around Ararat Mountain and within other fertile areas, it is inconceivable the economic backwardness arising from a .:79:. agriculture implemented almost entirely by human labour, especially if there are good business/entrepreneur skills and a remarkable propensity to mechanization by the peasant population. Opportunities It is convenient to verify the export conditions of Italian agricultural machinery and equipment, both new and second hand. Export procedures and financial mechanisms are actually under examination. 4. Establishment of fruit and vegetables Drying and Packaging Unit THE MICRO PROJECT IN BRIEF Title: Establishment of fruit and vegetables Drying and Packaging Unit” Location: Community of Urtsadzor - Ararat Region, Armenia Total duration: 12 Months Applicant: Vedi InterCommunity Union Partner/s: Non-Governmental Organisation Non-profit “URTS”, Urtsadzor Village Brief Description: The Project, through the purchase of modern and innovative machinery (vacuum packaging devices, etc.) and equipment (greenhouses and pallets for drying the fruit, devices for washing fresh fruit and vegetables, etc..) intends to create a centre for packaging vegetables and fruits fresh and dried (14 tons of processed products) that would be a benefit not only for the members of the Non Governmental Organisation “URTS” but also to the external farmers, ensuring the economic sustainability of the service and management of resources. Furthermore, by pursuing the goal of improving the quality and the sanitation of food and agricultural products in order to present the market a product more competitive and healthy and able to obtain a higher price, we would improve the general revenue of the NGO and the living standards of members and farmers in the area. Objectives: Estimated results: Main activities: - Promotion of the increase of agricultural produce level, improvement of quality of agricultural produce, growth of its purchasing power . - Organization of the drying process and packaging of the agricultural produce and its consumption. - Increase of the quality of agricultural produce, - price rise of agricultural produce, - improvement of economic status of the rural economies, - job opportunities with high salaries for more than 25 people. - Acquisition/procurement of agricultural products, vegetables and other field berries according to the procurement and technological plan. - Packaging, canning and storage of fresh cultures. - Organization of the drying process of the obtained cultures - Consumption Target group(s): Members of Rural NGO, rural economies, retail and wholesale trade units Final Beneficiaries: “URTS” NGO, 44 farmers members, their families, external farmers of Urtsadzor Community, agri-food dealers and consumers, etc.. Total Cost: 21.343 Euro Cost’s Allocation: 15.500 € EU Funds + 5.843 € Co-financing provided by the NGO .:80:. Low quality production. The quality criteria of the production are at rather low level. The classification of the products is performed/ carried out in an improper way without following any criteria. Objective(s) The overall objective of the project implementation • Promotion to the increase of the quality of agricultural produce of the rural economies; • Improvement of the quality of agricultural produce, production sustainability; • Increase of the purchasing power. The current situation cannot serve as a promoting basis for the production and consumption/sells of quality agricultural products at wholesale and retail sale markets. The project is an important link between the rural economies and wholesale and retail sale of agricultural produce chain. To address/meet the main objective/goal through the actions of the project we aim at: • Organizing the procurement of agricultural produce and field cultures; • Establishing a packaging workshop; • Establishing a package producing unit; • Organization of the production consumption at wholesale and retail sale markets. As a result of the activities foreseen by the project, the production of rural economies have a better chance for market access and production consumption. The proposed project promotes the increase of the quality of the agricultural produce, solves the problem of price rise for the wholesale trade, significantly raises the production volume of the products, processing these products by means of advanced technologies and production lines. Relevance of the action Priorities The proposed project increased the production volume of the agricultural produce in Ararat area, village Urtsadzor. The final beneficiaries of the project are the rural NGO and the members of this NGO. All the members of Vedi Intercommunity Union also benefited from the project as the project intends to cooperate with ICU Vedi, too. As a result, with the support of the project, the population of the Marz and Yerevan, small and medium enterprises enjoyed high-quality agricultural products. The proposed project relates to the increase of the valorisation of local agricultural products in the village of Urtsadzor, Ararat Marz; improvement of their quality and market access promotion. In Armenia, in Ararat Marz in particular, agriculture is underdeveloped and needs real promotion. Low production volume is characteristic not only to rural areas but also throughout the Republic: the production volume on the whole is rather low everywhere. There is a lack of appropriate tare and packaging. At wholesale markets the production enters without packaging, in insanitary conditions without being checked. The same situation can be met at retail sale markets. The project relates to the SME and Agricultural sector of the Marz strategy: Regional Development Plan, Line 1: Support to territorial and integrated pilot strategies of rural development. “Support to small-medium enterprises to the innovation of process and product, with the aim to improve the quality of their products and service provided.” Wholesale sells are done at special trade units, where the conditions are the same. Under such circumstances the producer depends from market mediators, who decide/ fix the market price. The producers of the agricultural produce do not have the chance to get wider access to the market and sell their products at higher prices. “Activation and consolidation of innovative methods of valorisation and commercialisation of local products, also including territorial marketing and rural tourism strategies”. “Interventions to improvement of territorial infrastructures and public utilities services”. .:81:. “Interventions of public relevance for the valorisation and promotion of local products”. These actions refer to/contribute towards the provision of required basis/ground for the implementation of the main activities. Target Group(s) Target groups are: • Members of Rural NGO; • Rural farming of Urtsadzor; • The rural farming of ICU Vedi; • The wholesale and retail trade units of the area; • The consumers of the agricultural produce in the Republic. • Definition of the technological scheme; • Procurement and acquisition of drying and packaging equipment, montage and installation; • Arrangement and adjustment of the production area according to the technological scheme; • Experimental output, marketing activities. Main activities The following activities contribute towards the creation of the external package of the production, compliance with the quality criteria, increase of the production volume and consumption. The Final beneficiaries of the project are 20 rural economies members of the Urtsadzor Rural NGO. The head of the community is also the member of NGO, and this fact secures the support of the community. The beneficiaries have 36 ha arable lands and they rent 10 ha additional lands; these lands are irrigated and in 8 ha of them vegetables are being cultivated, they also have green-houses and etc. The beneficiaries were ready to offer their own crop for the implementation of the project and there was no need for additional funds to buy crops. The other direct beneficiaries are the rural economies of Urtsadzor. The implementation of the project had impact on them, as project organized food packaging and drying for them. The rural economies of the community, which are not the members of NGO also provided their crops for packaging and drying. The food packaging and drying unit are the first in Ararat sub-region and all food producers of the sub-region can be considered as indirect beneficiaries. Wholesale and retail organizations and final consumers also can be considered as indirect beneficiaries. • Procurement/storage of agricultural produce and other field berries and vegetables according to the procurement and technological plan; • Inspection of the acquired products. All these activities are undertaken in accordance to specific criteria, which promote the production of high-quality output and increase of the production price; • Packaging and storage of the obtained cultures. These actions contribute towards the increase of the production quality and potential demand for the production. Organization of the drying process of the stored products. The aim of this action is the out-of-season consumption of the agricultural produce by means of drying these products in a most effective way. • Packaging and storage of the dried products. This action is followed by the previous one, which aims at providing an external package to get the products ready for sale; • Delivering / Consumption. This action is the final step of the first stage of getting both dry and fresh production ready for consumption and provides a good basis for further; • Development. Description of the action and its effectiveness To achieve the goals of the proposed project and to solve the persisting problems, there has been elaborated an action plan. The below-mentioned actions are submitted in sequence. Preliminary Activities .:82:. The following steps are the required measures for the implementation of the above mentioned activities and objectives. Preliminary activities The Rural NGO has provided with a territory for production area, without reimbursement. The scheme in Annex 1 displays the arrangement and montage of the equipment and technological cycle of the foreseen activities. The installation of equipments have been implemented in compliance with technological requirements, shown in Annex 2. Technology and know-how/equipments At present there is a big number of rural economies in Urtsadzor, the overwhelming majority of which are small farming, which themselves, separately, cannot implement the process of production volume increase (for example, 812 rural economies in the village have 432 Ha of land, which is fragmented under 1700 plots; among them there are only 3-4 farming which have more than 3 he of land). The Rural NGO of Urtsadzor unites these farming economies for the fulfilment of the above-mentioned objective. Acting as an infrastructure and the application of new technologies for the implementation, taring and drying activities served to address these main goals. The quality control over the agricultural produce enhanced its quality and ensured growth of demand for the production. Owing to the proposed activities the population of the Marz and the capital have a chance to consume ecologically pure products with attractive external package, the lack of which at present prevents wide consumption of agricultural products at markets. Bringing forward the issues of personnel management, allocation and setting the time limit. Implementation of designing and project works for packaging. After the completion of montage works the first output is experimented, followed by technological checking. During the preliminary works it is supposed to check the number of the supermarkets and other trade units, which are considered potential consumers. A storage seasonal plan is made up which is coordinated with consumption potential capacity. Annex 1: Organizational methods/resources The action plan aims at implementing the whole technological cycle of the actions in compliance with organizational plan, from the very beginning to the end. The partnership with rural economies ensured the implementation of the main activities to reach the overall goals. Procurement of agricultural produce / Storage Professional and human resources Organization of the procurement of fresh agricultural produce from the rural economies of the village, also, from the communities of the area. Only fresh-looking and quality products are to be procured which further pass through laboratory analyses to address appropriate/ respective food norms/standards. The products due to be dried pass preliminary procession- rinsing, cleaning (removal of leaves, branches, cleansing from mud, small stones, insects, pesticides, etc.) The next phase is the sorting process, during which: The project opens up opportunities to combine professional skills, which rural economies lack. The appliance/use of professional skills gave opportunities to implement such actions as marketing works, the packaging and taring process foreseen by the project. The project created new job opportunities involving 5 employees (4 technical workers and 1 administrative) with required skills. The elaborated activities for the implementation of the project are cohesive and integrated and are aimed to address the main goals. • .:83:. Each following phase has been easy to control • The drying process has been homogeneous drying process has been implemented by means of advanced solar technologies. In fact, the market pays more for the homogeneous production. The next step of the preliminary procession is peeling, extracting the pulp, which is followed by cutting and mincing process, etc. The overall During preliminary drying process of vegetables special or ordinary drying technologies have been applied. Packaging phase which attracts buyers. For example, the information about sanitary or other inspection provides better access to food markets. The following vegetables and other field cultures have been dried: Dried products packaging All the dried products are to be packed. This is done not only to provide the external appearance of the product, but it is a necessary required step for the dried product. After the completion of the above-mentioned phases, high quality ready-to-sale production resulted, with attractive external package, which currently lacks in the Republic markets. While organizing the packaging process the following steps are taken into consideration: • The amount of one unit for the respective food • The storage of the food in the package for the foreseen period • All the data about the product must be mentioned/ typed on the package. According to the total economic growth, therefore, the demand for such production grows, too. Taking into account this main argument, the consumption of the production has been organized in the best way. Taring activities Before distribution and storage of both dried and fresh vegetables and agricultural produce it is necessary to tare the production. It is foreseen by the project to produce three kinds of tares: wooden, plastic and carton. The packages for the dried products must be vacuumed, sunray resistant and a little heat insulating. Fresh vegetable packaging Compared to the dried vegetable packaging, fresh vegetable packaging has some specific features. First of all, fresh vegetables are seasonal and the aim of the packaging is to distribute to the consumers fresh production, with attractive-looking external package. As an innovation it has been packed not only homogeneous but also mixed vegetables, which are very convenient for the buyer to save time. Wellpacked fresh production has better chances to be consumed at food markets and at all trade units. The package contains all the necessary information about the production, Tare production at the same time ensures/ provides complete production cycle, which is organized according to demands. The effectiveness of taring and packaging is also connected with food transportation. With plastic containers it becomes possible to organize the transportation of the packed dry and fresh production in plastic tares, which enjoys privileges at the consumer market. Meanwhile, it’s should be noted that carton containers are more welcomed at the market. It is much easier to size carton containers according to the amount of the .:84:. production to be packed; therefore it is possible to size them for different capacity, starting from 1 kg to 20 kg. In spite of the fact wooden containers are not in demand, they are the only ones which store food products for a longer period. The main criterion for the organization of container production, foreseen by the project is to apply such flexible mini-technologies, which enables the production of not only big-size, but also small-size containers. advanced methods have guaranteed success for the vital activity of the project. Food packaging and drying of agricultural products provide stabile production and incomes for the farming economies. The main approach of the project is packaging and organization of alternative consumption of seasonal agricultural produce through drying. In the base of the packaging process of agricultural produce lays the application of advanced methods and procurement of products, which ensure the effectiveness of packaging and manufacturing. Delivery and selling In the initial phase we intend to organize the delivery activities in 2 ways, locally and through trade organizations. It’s useless to organize the consumption at wholesale markets, where the agricultural produce of the farmers’ is sold now. The consumption markets for such high-quality production with attractive external package can be the trade organizations of wholesale and retail trade sales throughout the republic, also, in the city of Yerevan. These are fruit and vegetable stalls, shops, specializing at agricultural produce sale. One of the main consumption policies is the direct cooperation with trade organizations. The quality of the products and longterm storage conditions ensure better consumption of products for the trade organizations. It is also very convenient for wholesale traders to purchase our goods for further consumption at faraway regions of the republic or abroad. At the same time the procurement of the agricultural produce at high price provide high price sale/consumption of dried or packaged production. The proposed project has been implemented in accordance with local action plan of the Marz and socialeconomic priorities of Urtsadzor. “Urtsadzor” Rural NGO implemented the project in partnership with ICU Vedi in the frameworks of potential “Refrigerator Centre” project. “Urtsadzor” Rural NGO could organize the packaging and taring of the agricultural produce stored at the “Refrigerator Centre”, according to the norms, as well as the NGO intends to implement joint activities concerning consumption and marketing. “Urtsadzor” Rural NGO implemented the respective project. The concerned parties are the local authorities, ICU Vedi, rural farming. The local authorities solved all the administrative issues and supported in the process of agricultural produce procurement. He is responsible for the current activities of the organization and is accountable to the council. The current activities of the NGO are controlled by the steering committee. Tax collection controlled by State Taxation Board. In the frameworks of the project the NGO is accountable to financing donors. For the implementation of the project the chairman of the “Urtsadzor” NGO has created an organizational structure to implement further activities. The structure is shown by the scheme below: Equipment and machinery acquired: In the framework of the present local projects were bought several machinery necessary for the fruit and vegetable driyng process, such as: vacuum packaging device, thermo packaging device, vertical Packaging device, scales with different range, nitrate tester, washing tub device, drying box, small plastic containers, polyethylene bags and fills, goffered cartons. Methodology Application of new approaches and .:85:. Vegetables 60 kg (during sunny days) The project has been approved by the rural economies of the community, members of the Rural NGO through its production and consumption expectations. At present, before the implementation of the project, they have no opportunities to implement the activities foreseen by the project, the main reason for which is the organization of the consumption, limits, set by the mediators, etc. The members of the Rural NGO are concerned about job opportunities. Beans, tomatoes 80-100 kg The Quantity of sunny days 150-200 per year The volume of sun radiation is 180-220 V/ square meter per 24 hours. In Italy the same indicator is 150-200, in France 120-180, in Germany 100-150. The capacity of Food Packaging Semi automatic devices - 2000 packages per day Technical and Economic Analysis Manual devices - 300 packages per day 1. The Volumes of Packaging Production of boxes The Packaging of 4 tones dried and 10 tones of fresh agricultural food is envisaged during the first year based on indicative calculations. This means to have 25.000 packs of dried and 5000 packs of fresh agricultural products. We plan to double these volumes in upcoming years. For Manual gluing or sewing 100 box per day 3. Calculations For Food Provision 2. The Production Capacity We conducted some research which resulted in assumption that during July-August we have surplus of agricultural products. Below you can see the fluctuations of bean price in wholesale market during these two months in 2007: Drying Department June 1-15 The envisaged area; 100 square meters. June 15-30 150-500 AMD/kg The volume of dried production per day July 1-15 .:86:. 800 AMD/kg 50-150 AMD/kg July 15-30 70-100 AMD/kg g) The cost for plastic box August 1-15 100-120 AMD/kg The project also envisages the advanced packaging that secures more convenient packages both for transportation and storing. The packed fruits are isolated from each other and which dramatically decrease the possible damage during transportation and storing. Obviously we have the steep drop of prices during July 1-15, which proves that during this period the supply excels the demand. We plan to organize the provision during this period. We made calculations also for red pepper. We receive 1 kg of dried red pepper from 6 kg of fresh pepper. The price for 1 kg of dried red pepper is 1000-1200 AMD/kg. Meanwhile the price for fresh red pepper is 100-120 AMD/kg. The price for 1 kg dried packaged red pepper is more than 1200 AMD/kg. Sustainability The packaging and taring process, like any other manufacturing process, includes emission of industrial waste products. To reduce the risk of waste emission we intend to send the waste to be recycled, which is foreseen by the overall project. Calculations on Dried and packaged Food To reduce the risk of natural threats such as low crop capacity, small number of sunny days, we intend to cooperate with Refrigerator Centre in order to extend shelf life of the products and to apply drying methods of agricultural produce in the shade. We calculate the quantity of dried food received from fresh ones during the process of drying Greens 100 gram from 1 kg Pepper 160 gram from 1 kg It is less probable that the project run the risk of social-economic decline, for the production offers high quality and available price. Tomatoes 130 gram from 1 kg Onion 400 gram from 1 kg Mint 100 gram from 1 kg The main precondition is the fact that at present the drying process is implemented by private farming economies, which cannot provide the required food and health norms; moreover, the consumption opportunities are badly limited. On the other hand, the Rural NGO solves this problem for the rural economies. Packaging Costs 1. Raw materials (paper, plastic, cellulose) 2. Electricity etc. 3. Salaries 4. Other Production Cost After the implementation of the project, after certain phases/by the end of the season/, the effect of the project results have already been visible in the process of the consumption and on the production, too, after the finish of a year’s cycle. One Semi automat-packaging unit can produce 1200 packages per hour with 30 Kw/ hour electricity usages. The Manual packaging unit produces 500 packages per hour Costs for one package • The financial sustainability ensures consumption at the expense of the received profits and certain services provided, which provided its reproduction/ breeding process. • Institutional level a) Electricity b) raw materials c) Labour costs: one worker during six hours can produce approximately 3000 packages with manual packaging unit; The organization implementing the project, is a rural NGO, which aims at solving the problems of rural farming. This is a nonprofit organization and the part of its profits serve for further reproduction/breeding. d) Printing Costs e) Amortization Costs f) boxes for packaged food. .:87:. The main objective is the expansion of the started business functions. In the future the organization may be reconstructed; in this case, according to the regulations, the stakeholders are also considered rural farming. within the area. The local agricultural production must be turned into a wider market production. Conclusions In addition to the adding value determined by the processing of these products and therefore the enlargement of the target market both in space and time, this project may achieve: Final Remarks The project supported the purchase of modern equipment in order to set up an innovative packaging centre for fresh and dried fruit and vegetables. This service address not only to members of the URTS Organization, but also to non-members farmers. a. A multiplication effect of itself; b. Induced needs caused by a strengthening of logistics (mobility and road freight transport); c. An improvement of agricultural production redirected to a growing market demand and to new requirements; This ensures the economic sustainability of the service; an optimal resources management, and above all the real opportunity to improve the quality and the sanitary scores of food and agricultural products. In this way it is possible to introduce in the market a healthier and more competitive product able to obtain a higher price, in order to increase the income of the organisations and to improve significantly the living standards of members and farmers in the area. d. The improvement of hygienic conditions in fruit and vegetables treatment so as to meet the current large-scale distribution requirements/laws. Opportunities The high quality of Armenian fruits led the project to verify if potential Italian and foreign buyers are interested in importing and marketing of the large retailers this kind of products. The experience gained in the process of drying and storage, it is essential to start the whole process related to the quality control of the product before entering the European markets. There is still the problem of transportation that can be extremely expensive due to the bad conditions of roads and high process for airplane transportation. 1. One of the characteristics of Armenian agriculture is the high quality production of fruits and vegetables above all in the Ararat plain. Both the fruit and vegetables are products ageing in a dry and arid climate where intensive sunburn also develops the quality of the products. 2. These products enter both in the local market but also mainly in the main market of the Capital. Both the logistics and delivery, as well as the total absence of energy sources just able to satisfy population’s needs led to identify this pilot project: adopting new techniques for the preservation and drying of fruit, so as to increase the dried fruit production in quantitative and qualitative manner. At the same time, a first treatment of vegetables (even cleaning and washing of worn parts) allow the marketing of products with higher freshness duration. 3. The project, that aims at drying and packaging the fruits and washing and packing/ packaging horticultural products, allows the visibility of the agricultural field potentialities .:88:. mountain passes, plateaus, concavities, fields, meadows and natural varied buildings, the most bright example of which is Jermuk wonderful waterfall (60 m). REGIONAL DEVELOPMENT AGENCY (RDA) VAYOTS DZOR DESCRIPTION OF SUB REGION The Vayots Dzor climate on the whole is continental with cold or moderate cold winters and hot or warm summers. The highest possible air temperature reaches +410C in southern districts, and the exceptional minimum temperature reaches - 350 C. Precipitations comprise 300-700 mm. Vayots Dzor is one of the 10 regions of the Republic of Armenia and it is situated in Southern part of the Republic. In the South borders with Nakhijevan, in the North it borders with RA Grgharkunik Marz, in the East – RA Syunik Marz and in the West – RA Vayots Dzor. The highway connecting Armenia with Iran passes through the region and it is crucial for the perspective development of regional economy; another important connection way passing through the region is the Yeghegnadzor – Martuny road. Vayots Dzor occupies the northern area of Zangezur (Southern part of Armenia which includes 2 regions) and it borders the Autonomous Republic of Nakhijevan and Azerbaijan, but also with other Armenian regions as Ararat, Gegharkounik and Siunik. In 2006 the share of economy main branches of RA Vayots Dzor Marz in total volume of correspondent branches of the republic comprised: Vayots Dzor is composed of 44 communities, of which 3 are urban and 41 are rural. The main cities are 3 and the villages are 52. In the region also operate 51 general education schools, 5 musical and art schools, 4 sport schools, 1 college, 22 pre school institutions, 1 vocational college, 1 museum, 51 libraries, 3 hotels, 9 ambulatory-polyclinics, 3 hospitals, etc. Industry Agriculture Construction Trade and services The number of the population is 55.800 people of which 19.400 people living in urban areas and 36.400 living in rural areas. The population of the Marz makes 1,7% of the total number of the population of the Republic of Armenia (3216800people, 2005 census data from Department of Statistics) and most part of the regional population (60%) lives in rural areas. 0.8% 4.4% 0.7% 0.9% ECONOMIC ANALYSIS OF THE TERRITORY Vayots Dzor accounts for 0.9% of the national industrial output, the agricultural output accounts for 4.1%, in retail commodity circulation - 0.2% and in the volume of providing services -0.6%. In total volume of Marz economy the prevailing is agriculture (after 2002 it excelled the gross industrial product 5.5 times). Peasant farms mainly deal with cattle-breading. The vinegrowing, fruit-growing and vegetable-growing have certain share in the volume of gross agriculture production. The total area of the Marz is 2308 km2 and it covers the 7.8% of Armenia’s territory. It is surrounded with high mountains, waterseparately mountain ranges, that being original natural banks between its and neighbouring territories, turn that into a geographical single whole. The region has been famous for its milk, diary products, especially cheese and for the geographical location of the wine brand called “Areny”. The fame of Vayots Dzor cheese is conditioned by the differentiated and high quality food and also by the proper cheese production technologies. The fame of well known “Areny” wine is conditioned by the raw material of “Areny” grape; this grape keeps its full quality indicators only in Vayots Dzor. Vayots Dzor Marz has varied fauna and flora. Natural forests comprise 6.7% or 13240.1 ha of territory. Vayots Dzor surface is extraordinary variegated. Volcanic forces, earthquakes, waters of Arpa river and its tributaries raised numerous mountain ranges stretching by different directions with big and small tops, mysterious canyons, .:89:. The production of non-alcoholic beverages (in particular, Jermuk mineral water) is mainly developed in the industry field, the share of which in total volume of industrial production of the Republic comprised 73.2% in 2006, and the grape wine - 18.0%. and reformed in 2007 as an Association. The main purposes of RDA are: In 2001 (REDAM I) there were more than tens of industrial enterprises, 7 agricultural, hunting and forest farming, 2 fishing and fish breeding, 6 constructional, 6 transportation, 51 service, 161 retail trade organizations and 1 agricultural market operating in the region. Eghegnadzor town (8.2 ths. inhabitants in 2006) is considered the one of Syunik ancient settlements and is situated in 119 km distance from Yerevan. The main branches of economy of Eghegnadzor town are industry and construction. The most developed branches in industry are grape wine, manufacture of electrical equipments, manufacture of fabricated metal products has some particular role in industry of the Marz too. • To promote sustainable initiatives aimed at narrowing the gaps in regional and interregional different levels of development; • To find out and put in practice means for the best usage of natural, economic and human resources; • To support institutions which encourage the creation of “entrepreneurial culture”, the development of entrepreneurship and rural communities; • To promote inter-regional and intercommunity partnership networking. Other major objectives of RDA Vayots Dzor are the development of a Regional and Local Action Plan, finding and raising funds to implement regional projects, developing business plans, etc. Vayk town (5.9 ths. inhabitants in the end of the year 2006) is situated in 135 km distance from Yerevan and 16 km distance from Marz centre. The main branch of economy of Vayk town is industry. Especially production of mineral water, alcohol-free beverages, building materials and carpet making industry are developed. The intervention area of RDA is the whole region of Vayots Dzor (total area 1.619 sq. km, almost 68.000 inhabitants distributed in 44 Communities). Its main economic sector is agriculture (especially viticulture and livestock) but it also has a rich historical and natural heritage. Vayots Dzor Association is lead by the Council, which has managing and decisionmaking powers. The Executive Director carries out the decisions taken by the Council and coordinates technical and administrative staff. Jermuk town (5.3 ths. persons in 2006) is situated on the lava plateau with the height 2070 m (distance from Yerevan is 170 km, from Marz centre – 53 km). Jermuk is widely recognised as a sanatorium town. The recognised sanatoriums are “Jermuk”, “Nor kyanq”, “Gladzor”, “sanatorium named after Aghajanyan”, “Ararat” and “Eraz”. The town name is related to mineral warm sources, jermuks. The main branch of economy is the production of non-alcoholic beverages, “Jermuk” mineral water. The production of whole milk products, carpets and electric power have some share in the industry of the town too. Vayots Dzor staff is composed by: THE L.A.G. “Vayots Dzor” RDA is a L.A.G. located in the mountainous region of Vayots Dzor. It was founded in 2005 as a Union of Legal Entities .:90:. Name Surname Position in the project Activities Executive director He is responsible for the adherence of all programmatic activities to the goal and objectives of the program by providing close oversight and assistance to all programmatic aspects of the program, specifically realizing strategies for networking and cooperation among regional NGOs, business and government sectors Ms. Anahit Hovhannisyan Translator/Interpreter She is responsible for organizational activities, data collection and analysis, trainings, elaboration of micro-projects and LAP, translation of letters and office documentation, interpretation, etc. Mr. Arsen Karapetyan Communication networking expert He is responsible for data collection and analysis, elaboration of micro-projects, LAP. Mr. Arshavir Bayatyan Project Management, Monitoring and Evaluation Officer He is responsible for data collection and analysis, elaboration of micro-projects, LAP. Ms. Ani Hayrapetyan Planner She is responsible for all activities referring to this sphere, starting from organization of meetings, trainings, etc. and ending with elaboration of tour packages. Ms. Lusik Margaryan Secretary / accountant She is responsible for filing, accountancy and answering the telephone calls. Mr. Arsen Beglaryan Project network administrator He is responsible for computer and network services, power point presentations, etc. Mr. Albert Avagyan Driver Responsible for driving, car maintenance Mr. Alexan Avagyan Since the beginning, Vayots Dzor staff has adopted and implemented the Leader approach and methodology through the effective involvement of all socio-economic actors within the region. The staff has put special attention in tourism and environment education sectors. The staff has also improved its English skills. Yeghegnadzor, Vayots Dzor Marz, Armenia (email: [email protected] Tel. 00374-28125307; Fax 00374-281-24007) BACKGROUND RDA implemented not only ordinary activities envisaged by its Statute, but also activities carried out in collaboration with international donors and organizations like Eurasia Foundation, USAID and GTZ to foster cooperation and partnerships between SMEs, NGOs, communities and civil society. In order to achieve a full economic development, the Region - throughout the RDA - has to enhance its cultural and artistic heritage such as as churches and monasteries, thermal tourism, agricultural development in terms of agro-business. The most important activity of “Vayots Dzor” RDA is the participation, as official Armenian partner together with ICU Vedi, in the international cooperation project called “Regional Network for the promotion of integrated sustainable development of Ararat and Vayots Dzor Regions” cofinanced by European Community (Ref. EuropeAid/124645/C/ACT/AM) and granted in the framework of the TACIS Programme (REDAM, phase II - Tacis Contract 2007/140637). During the project, the Vayots Dzor L.A.G. acquired a strong methodologies and practices from the EU programs rules and regulation such as accountancy, tenders procedures, project life cycle management, etc. CONTACTS RDA Vayots Dzor, 15 Shahumyan St., City .:91:. The Community’s TACIS Programme was set up in 1990 by the European Council; the Programme aims to encourage democratization, the strengthening of the rule of law and the transition to a market economy in the New Independent States, arisen by the break-up of the Soviet Union, as Armenia. selection of the final design. THE “REDAM II” PROJECT The project intends to implement a pilot procedure in order to reinforce the understanding of methods and procedures aimed at socio-economic development and planning in rural areas, as provided by the EC LEADER approach, engendering direct and participatory involvement of all local operators throughout the whole life of development actions, from the decisional to the managing phase. The overall objective of the project (total budget 2.224.600 Euro) is to introduce innovative development strategies and to support concrete social and economic projects in both concerned regions. ACTIVITIES REALIZED RDA staff realized a lot of activities with the assistance of local and international experts. All these activities were clearly defined and fully in accordance with the General Guidelines. The staff‘s main efforts were focused on: • Implementation of the round table discussion “Regional Tourism Route” to develop the tourism routes, packages. • Development of materials for guides • Implementation of geological and geodesic survey for the construction of the building within the frames of the micro-project. • Implementation of market research on the prices of the equipment, office supplies and building materials • Elaboration of the curriculums, schedules and lists of participants of the English, Computer, First Aid and Tourism Management trainings • • Organization of meetings with the architects, with hunters and representatives of the environmental protection department. • Market research on the prices of the equipment, office supplies and building materials • Participation in the trainings and meetings held within the frames of “The Black Sea Basin 2007-2011”. • Implementation of English Computer, First Aid and Tourism Management trainings • Realization of financing, supply and supervision of the construction activities • Preparation of tourism packages and booklets of “Vayots Dzor Historicalcultural values”, “Traditions” and “Vayots Or Yeghegyats Dzor”, “Vayots Dzor Ethnography”, “Vayots Dzor “ • Creation of tourism data base • Creation of business contacts and networking with interested organizations • Development and strengthening of business contacts and networking in the tourism and relevant sectors. • Construction of the building for the « Tourism Development and Professional Training Centre • Project management, monitoring, observation The staff was involved in the preparation, implementation and participation in the series of trainings referring to Tourism “ Insurance in Tourism”, “Excursion Activities ” and “Hotel services- II part”, “Tourism Destination Management” trainings, “Development and evaluation of tourism”, “The structure of tourism market”, “Stable tourism and management of environment”, “Survey of the area”, “Area location and marketing” presentations and power-point presentation of “ The Contracts” The staff participated in “Towards Crisis Solution” conference. All theses activities were implemented in collaboration with Governmental centre, NGOs, Museums, Hotels, LSGBs and other institutions. All the parties involved in the Organization and implementation of Evaluation Committee meeting and .:92:. activities are very dedicated and do their work properly and with enthusiasm. The construction firm does its best to complete the construction in time. They work in two shifts. 7) Prepared materials for the advertisement campaign on Vayots Dzor tourism opportunities THE RESULTS 8) Increased number of labour force trained and qualified in the tourism and other relevant sectors of Vayots Dzor region. As a result of these activities we achieved the following results: 9) Awareness of population and business environment about the labour market 1) The construction of the second floor of the Tourism centre is in the process (see the attached photos) 10) 5 certified training courses: • English for tour guides (with 12 participants) 2) A rich data base on regional unemployed • Computer (with 32 participants) 3) Development and strengthening of business contacts and networking in the tourism and relevant sectors. • First Aid (with 33 participants) 4) Initiatives of pilot projects on promotion of private-state, private-private sector cooperation It was in these phases that the IRE and the STEs have visited the RDA staff and with their assistance RDA staff implemented the activities properly. • Basic English (with 12 participants) • Tourism management (with 19 participants) 5) Tourism packages and other products referring to Vayots Dzor tourism sector. All the activities covered all the 41 rural communities and the 3 urban communities existing on the territory. The staff members actively participated in all the Project Steering Committee meetings. 6) Identification of supply of Vayots Dzor values in the local and international tourism market .:93:. 1. Tourism Development and Professional Training Centre (RDA) THE MICRO PROJECT IN BRIEF Title: Tourism Development and Professional Training Centre Location: Yeghegnadzor, Vayots Dzor Region – Republic of Armenia Total duration: 14 months Applicant: Vayots Dzor” Regional Development Agency (RDA) Partner/s: Brief Description: • Union of Local Tour Operators • Armenian Hotel Association • Armenian Restaurant Association • Tourism Regional Centre • Regional Employment Centre • Trainers’ Association • Armenian Institute for Tourism Establishment of first regional tour operator, organisation of trainings for employees in tourism service sector, increase in their quality to certify corresponding structures and employees. Through this pilot project, it is foreseen to promote regional tourism development via establishing Tourism Development and Professional Training Centre. The Centre promotes not only the establishment and/or development of public and private institutions in the tourism sector, but also contributes to the improvement of regional labour force (human capacities) in the tourism sector (restaurants, hotels, tour operator, guides) as well as in other related sectors (such as business management, accounting, office management, some handicrafts, etc). To this end a tour agency has been established, which operates within the Centre. It is the first tour-operator in the region. Tourism database was created. A video film has been made about the most interesting regional sites and historical-cultural values. Tourism packages have been prepared, too. Thus, “Tourism Development and Professional Training Centre” has contributed to the improvement of the situation in the region in terms of skills/ capacities, HR policy and trainings, better cooperation and coordination between tourism organizations, public-private, regional and Local Self Government Bodies sectors. The Centre delivers information, organizes certified trainings for the employees of the tourism service sector in Vayots Dzor, and ensures the correspondence of selected service sectors to the standards. The overall objective is to contribute to the development and competitiveness of the tourism sector in Vayots Dzor region (VDZ region). The specific objectives are: Objectives: • To improve institutional framework of tourism sector in the region • To improve the cooperation and coordination of activities between stakeholders involved in tourism market. • To develop marketable tourism products in the VDZ region. • To improve the region’s position in the tourism market as an attractive place • To increase the quality and skill of local employees in the tourism sector, service sector and other related sectors • To improve labour demand and supply harmony in tourism and other related markets. • To increase the number of tourists visiting VDZ region. .:94:. Estimated results: Main activities: • Established public and other institutions in VDZ region, with adequate capacities to promote tourism development • Established commercial entity(ies) in the region that are capable to deliver high quality products and services • Improved and strengthened business networks in the tourism and related sectors • Initiative(s) of pilot projects that promoted public-private, private-private cooperation • Developed tour packages in the VDZ region and the relevant products • Identification and promotion of a value proposition for VDZ region in the local and international tourism markets • Prepared materials for the advertisement campaign regarding the tourism opportunities in VDZ region • Increased number of trained and well qualified employees in the tourism and other related sectors in the VDZ region • High level of awareness among the population and business circles about the situation in the labor market • Creation of high quality jobs, and decreased unemployment • Establishment of ‘Tourism Development and Professional Training centre’ and recruitment of its staff • Construction of a building for the ‘Tourism Development and Professional Training centre’Study on the demand and supply in the labor market; and development of a database (assessment of skill and knowledge gaps and needs) • Organization and implementation of trainings and workshops (on tourism and other related professions) • Development of 5 tourism packages, that included the 6 main areas identified by REDAM • Creation of tourism database • Preparation of tourism advertising materials (booklets, handouts, video clips on potentially attractive sites and historical-cultural values in VDZ region) • Creation of business networks among interested parties • Project management, monitoring, and evaluation • 15 communities of VDZ region (40000 people), • 27 institutions of service sector with 100 staff members. 7 hotels, 10 B&Bs, 5 restaurants, 2 taxi services, 1 souvenir saloon, 3 leisure places, • 200 specialists • People looking for jobs • Regional Tourism Development Association • Regional Development Agency VD • 15 communities with 40.000 population • 27 institutions and/or service providers with 100 staff members. • 200 among professional free agents and S.M.Es Target group(s): Final Beneficiaries: Total Cost: 483.000,00 Euro Cost’s Allocation: 410.000,00 € EU Funds - 73.000,00 € Local Co-financing .:95:. Objective(s) The overall objective of this project is to contribute to the development and competitiveness of the tourism sector in Vayots Dzor region (VDZ region). Tourism sector in Vayots Dzor region is considered to be one of the sectors that has wide opportunities for development, and can contribute significantly to the overall economic development of the region as well as creation of new jobs. If positioned properly in the market and organized appropriately, naturalistic as well as and historical-cultural heritage of the VDZ region would allow developing various types of tourism that have big demand in the local and international markets. To improve institutional framework of tourism sector in the region. To improve the cooperation and coordination of activities between stakeholders involved in tourism market; To develop marketable tourism products in the VDZ region; • To improve the region’s position in the tourism market as an attractive place; • To increase the quality of local employees in the tourism sector, service sector and other related sectors; • To improve labour demand and supply harmony in tourism and other related markets; • The project objectives are in compliance with the Strategic Plan of Vayots Dzor Regional Development, and are based on the surveys conducted within the framework of REDAM project. Implementation of these objectives would contribute to the general economic development and the increase of competitiveness of Vayots Dzor region. Tourism sector in Vayots Dzor region is considered to be one of the sectors that has wide opportunities for development, and can contribute significantly to the overall economic development of the region as well as creation of new jobs. The geographical position (the location of the region is very close to the capital), natural-climatic conditions, the wide variety of the animals and plants, isolated natural sites, as well as the rich historicalcultural heritage create good opportunities to organize and develop various types of tourism that enjoy widespread and increasing demand the world market. This relates particularly to such types of tourism as: eco-tourism, traditional, scientific, historicalcultural, country, health and adventure tourism (climbing, caving, and mountain routes, hiking, horse riding, canyoning, and fishing.). Just to list few of most interesting sites and historical-cultural monuments in the VDZ region - Noravank, Tanahat, Smbataberd, Jermuk waterfall, Selim Caravansari, Gladzor university (monastery), etc. In order to achieve the overall objective, this project sets and intends to achieve the following specific objectives: • To increase the number of tourists visiting VDZ region; Relevance of the action However, until now, VDZ region was not able to utilize effectively its opportunities in the tourism sector for the benefit of regional economic development; in fact, the institutions and infrastructures involved in tourism are underdeveloped (or we can even say that there are no this kind of institutions in the region) and there are even no tour operators in the region. There is also deficit of human resources in the tourism and related sectors and (in general) in the other economics sectors too. Taking into account the situation in the regional we intend to focus mainly on the institutional problems and those of human resources. • • But Vayots Dzor is not capable to utilise the potential of tourism sector for the benefit of the regional economic development, and the tourism sector is underdeveloped in the region. In fact there are no public, private and public institutions in the region to deal with tourism; there are no tour operators, tourism agencies and excursion bureaus in the region; relevant physical infrastructures are underdeveloped. Regional government or Marzpetaran of VDZ region does not have structural divisions on tourism matters. There is a lack of cooperation between the Local Self Government Bodies (LSGBs), private and .:96:. public institutions. and private institutions in the tourism sector, but also contributes to the improvement of regional labour force (human capacities) in the tourism sector (restaurants, hotels, tour operator, guides) as well as in other related sectors (such as business management, accounting, office management, some handicrafts, etc). To this end a tour agency has been established. It operates within the centre, which is the first tour-operator in the region. Tourism database has been created. A video film has been made about the most interesting regional sites and historical-cultural values. Tourism packages has been prepared, too. Thus, “Tourism Development and Professional Training centre” has contributed to the improvement of the situation in the region in terms of improved capacities, HR policy and trainings, better cooperation and coordination among tourism organizations, public-private, regional and Local Self Government Bodies sectors. One of the impediments for the development of tourism in the region is the lack of adequately qualified human resources in the tourism and related sectors. There are no tourism specialists in the region – this is an important disadvantage, since usually those who live in a particular region can best present the regional sites and products to tourists. The road conditions in the region are not sufficient. There are no signs on the roads that help the visitors to get information. Restaurants, B&Bs, hotels and other such entities do not meet quality standards. The so-called Restaurant-hotel entities do not have adequately qualified service and support staff; and B&B system is yet a newly emerging business in the region. Actually, there are no tourism products to be offered to the local and external markets. Now only the Regional Tourism Association and one NGO operate in the tourism sector in the region. However, weak cooperation between them and lack of coordination of their activities reduce significantly the efficiency and effectiveness of their activities and do not allow them having notable contribution to the development of tourism in VDZ region, a region abundant with tourism resources. About 3.600 tourists visit the region annually to see historical-cultural monuments, to learn about the region’s culture and lifestyle, to participate in the traditional holidays and events (e.g. the “wine day”). Moreover, the Centre helps to address also another important problem. Armenia’s labour market still has the problems and symptoms typical for transition countries, i.e. underdeveloped labour market, disharmony between demand and supply in the labour market, high level of unemployment, etc. Training activities organized in the centre, and data bases created help to achieve better balance between labour demand and supply in the region, and thus, contribute to the creation of quality and sustainable jobs. According to statistical data, there are 700.000 people with higher education in Armenia, who do not have jobs or do not work with their profession. There are 100 private universities, but there is a lack of high quality employees. According to statistical data (NSS), 19% of young people (16-30 year old) and 43% of the population at age of 31- 45 are unemployed. To sum up, there are valuable tourism resources in the VDZ region, but there are no linking entities that could organize and coordinate resources and activities, and thus promote the formation of the tourism market in the region, and facilitate the cooperation between the various stakeholders i.e. privateprivate, public-private, central-local authorities. The situation is similar in the VDZ region. The number of people above 18 year is 44.000 of which the 17.8 thousand are urban population and 26.2 thousand are rural population. Economically active population is about 36.279 people. Officially registered unemployed make 24.2% of the population. There are 1.862 people officially registered as job seekers, 1.306 people – as not occupied, and 1.233 – as unemployed. In Taking into account the regional situation this project intends to address mainly the issue of institutional and human capacity building in the VDZ region. The “Tourism Development and Professional Training centre” established within the framework of this project has filled this gap. The Centre promotes not only the establishment and/or development of public .:97:. VDZ region more than half of the occupied population have seasonal or temporary work (agriculture, construction, production of building materials, some branches of service sector). Furthermore, the 72.0% of people who have the status of registered unemployed are women, and 60.3% of them are above middle age. and also the general public of the region, particularly those who seek jobs. Finally, about 3.600 tourists visiting the region per year (REDAM survey data) will benefit from better facilities and services. The final beneficiaries are 15 communities with 40.000 populations, 27 institutions of service sector with 100 staff members, Regional Tourism Development Association with 5 staff members, Regional Development Agency with 9 staff members. Surveys conducted in the labour market show that the lack of job places is not the only reason for unemployment and/ or underemployment. There are number of other reasons such as: unawareness about the labour market, professional qualifications that do not comply with the demand of private sector employers, over-estimation of own capabilities, higher expectations for salaries, lack of trainings, etc. Vayots Dzor Regional Development Agency (RDA) has proper capacity and experience to implement the project. The Agency applies the RDA staff capacities and also business relations with regional authorities and interested organizations to implement the project effectively. Addressing these issues would help considerably both job seekers and employers, and, thus, would contribute to higher employment. “Tourism Development and Professional Training centre” can have significant contribution to the solution of these problems. Description of the action and its effectiveness The overall objective of this project is to contribute to the development and competitiveness of the tourism sector in Vayots Dzor region (VDZ region). Tourism sector in Vayots Dzor region is considered to be one of the sectors that has wide opportunities for development, and can contribute significantly to the overall economic development of the region as well as creation of new jobs. If positioned properly in the market and organized appropriately, natural as well as and historical-cultural heritage of the VDZ region would allow developing various types of tourism that have big demand in the local and international markets. However, until now, VDZ region was not able to utilize effectively its opportunities in the tourism sector for the benefit of regional economic development. In fact, there are even no tour operators in the region; institutions and infrastructures involved in tourism are underdeveloped (or we can even say that there are no this kind of institutions in the region). There is also deficit of human resources in the tourism and related sectors. Taking into account the situation in the regional we intend to focus mainly on the institutional problems and those of human resources. First, taking into account the wide coverage of tourism sector, the Centre delivers trainings that cover not only tourism-specific skills and qualifications, but also skills and qualifications that are applicable in other sectors of economy (e.g. business management, accountancy, office management, some handicrafts, etc.). In addition to this, surveys conducted and relevant databases created by the Centre assist significantly the establishment of harmony between the demand and supply in the labour market, and allow the Centre (to a certain degree) to become a link between the employers and job seekers. The target group involves 15 communities, based on identified tourism areas. These communities have favourable tourist locations, and it is possible to develop B&B hosting system in those communities. The target group includes also representatives of the services sector, i.e. 27 organizations, 7 hotels, 13 B&Bs, 5 restaurants, 2 taxi services, 1 souvenir saloon, 3 leisure places (coffee bar, billiard saloon, etc). The project targets also about 200 employees who have benefited from training courses organized by the Centre, In order to achieve the overall objective, .:98:. this project sets and intends to achieve the following specific objectives: effective cooperation with other tour operators (from Yerevan and foreign countries). • To improve institutional framework of tourism sector in the region; • To improve the cooperation and coordination of activities between stakeholders involved in tourism market; • To develop marketable tourism products in the VDZ region; • To improve the region’s position in the tourism market as an attractive place; • To increase the quality of local employees in the tourism sector, service sector and other related sectors; Secondly, tourism database created by the Centre allows both the private and public sectors be well informed and knowledgeable about the tourism possibilities available in the region, about region’s capacity to host guests, and about other factors. This, in its turn, has facilitated the processes of elaboration of state policy and organization of events in the tourism sector via increasing the quality of decisions. In addition, a well-informed private sector can better utilize market opportunities, address its weaknesses and to build on its strengths effectively. • To improve labour demand and supply harmony in tourism and other related markets; • To increase the number of tourists visiting VDZ region. The Centre serves as an effective forum for the private-private, private-public, and central-local cooperation. It can organize and host discussions between different interested parties and facilitate the process of consensus building on policy measures and projects. This kind of activity by the Centre promotes the development and strengthening of business relations and networking in the tourism and related sectors. The project objectives are in compliance with the Strategic Plan of Vayots Dzor Regional Development, and are based on the surveys conducted within the framework of REDAM project. Implementation of these objectives would contribute to the general economic development and the increase of competitiveness of Vayots Dzor region. The video film and the booklets prepared by the Centre on the most interesting regional sites and historical-cultural values, and the web page allows better promotion of the tourism opportunities of VDZ region, and thus attracting more tourists to the region. It is estimated that the improved advertisement will increase the flow of the tourists into VDZ region by about 28-30%. The established “Tourism Development and Professional Training Centre” solves the institutional problems and problems connected with human resources in VD region. The Centre contributes to the development of a framework of public and private institutions in the tourism sector, and promotes the improvement of regional labour force in tourism and related sectors. With its professional trainings and workshops the Centre contributes to the improvement of professional capacities in the region. This is very important for the tourism development. The Centre organizes and delivers trainings courses covering tourism and also some related professions. Every year 154 people receive training in the Centre and get relevant certificates, plus 9 tourist guides. Organization of trainings itself promote cooperation with the professional organizations dealing with tourism or other sectors, specifically with the Union of Internal Tour Operators, the Association of Armenian Hotels, and the Association of Armenian Restaurants. These organizations do have professional staff capable to deliver high quality trainings, and have been involved in the training process. Firstly, a Tourism Agency (tour operator) has been established in the Centre. It is the first operator in the region (up to now there are no tour organizations in VD region). The organization has 6 permanent and 13 temporary work places. The tour operator, first of all, is involved in the elaboration of advertising materials to promote tourism in the VDZ region. New tourism products have been created, e.g. 5 tour packages that can be competitive in the market. The availability of such products is important for attracting tourists to the region, and for promoting .:99:. The centre helps to address two important problems: elimination of disharmony between demand and supply in the labour market, and unemployment. Armenia’s labour market still has the problems and symptoms typical for transition countries, i.e. underdeveloped labour market, disharmony between demand and supply in the labour market, high level of unemployment, etc. “Tourism Development and Professional Training centre” can have significant contribution to the solution of these problems. Training activities to be organized in the centre, and data bases created helps to achieve better balance between labour demand and supply in the region, and thus, contributes to the creation of quality and sustainable jobs. better cooperation. Taking into account the wide coverage of tourism sector, the Centre delivers trainings that cover not only tourism-specific skills and qualifications, but also skills and qualifications that are applicable in other sectors of economy (e.g. business management, accountancy, office management, some crafts, etc.). In addition to this, surveys conducted and relevant databases created by the Centre assists significantly the establishment of harmony between the demand and supply in the labour market, and would allow the Centre (to a certain degree) to become a link between the employers and job seekers. The effective operation of the Centre allows decreasing unemployment in the region by 18-20%. There are 8 permanent and 32 temporary employees in the Training centre. Last, but not least, within the framework of this project a building with about 400 sq.m area has been constructed and properly furnished and equipped for the “Tourism Development and Professional Training centre”. The Centre has high quality facilities for trainings, conferences and similar events. Adequately equipped building makes the operations of the Centre easier and more comfortable; it helps to improve the cost-efficiency, generate income and to become self-sustainable, through the incomes deriving by the training courses fares. The existence of the place itself with its accommodation for the teachers/ trainers or for the trainings participants coming from remote areas and technical facilities increases the possibilities for different stakeholders to come together and to have Vayots Dzor Regional Development Agency (RDA) and its member “VD Regional Tourism Association” are the organizations implementing the project; they have staffs with proper capacity and experience, skilled project management and local and international consultants. They have ensured the proper implementation of technical part of the project. The project cooperated with those local and international organizations that are able to support the project. The project has been implemented in parallel-sequential manner, i.e. it has been organized with preparatory, main and final stages, with parallel implementation of construction, training and production activities. The stages of the activities are described below. A. Activities for the preparatory phase a. It is necessary to implement several preparatory activities, specifically: concluding work contracts, development of work plans with the local enterprises, cooperating and interested organizations, matching the Gantt table with the timetable of financial activities; b. In the early stage the “Tourism Development and Professional Training Centre” has been established and registered and the staff have been recruited; c. At the beginning of the project implementation and until the construction of the Centre building is finished and ready for the operation, the activities envisaged by the “Tourism Development and Professional Training Centre” have been conducted, temporary, in the spaces of RDA VDZ current office, without renting costs. For the organization of the space dedicated, the furniture and the equipment for training courses have been purchased and installed. Activities mentioned above, started immediately after the official approval of the Micro-Project and required the recruitment of 1 Accountant Assistant, 1 Trainer Assistant, 1 Technical Assistant and 1 cleaning worker. A. Activities for the main stage a. Before starting the construction activities .:100:. for the “Tourism Development and Professional Training Centre”, the package of project drawing, budget and technical documentation were developed. Together with the local authorities the issues connected with the construction site, construction allowance and other technical issues were finalized. A tender was announced for the construction activities and the implementation activities matched with the winner. A building has been built, with 2 floors of about 200 sq.m area each one; the internal distribution at the first floor presents a hall with reception, a rest room for the staff, a kitchen, a coffee break / dining room, 2 toilets, 1 conference hall and 2 administration rooms; at the second floor the building presents 2 administration rooms and 7 bedrooms for teachers/ trainers and guests training’s participants coming from remote areas; b. Study the demand and supply in the labour market and creation of database (assessment of needs and professional capacities). “Tourism Development and Professional Training Centre” periodically conducts surveys about labour market in tourism and other sectors, and creates database on the labour market. The data base is updated once a month and involve the following information: • The number of operating organizations and their staff members (permanent and temporary) • The professions that are in great demand in the operating organizations • The specialties in the operating organizations • The quantity and kinds of vacancies in the operating organizations • The training needs of operating organizations • Data about the quantity of job seekers and their professional capacities. greater demand. It is anticipated to organize and deliver 7-8 training courses per year. According to initial data a few specialities or capacities are known as most demanded, like: computer skills, accountancy (with the knowledge of CP accountant and CP bookkeeper programs), competency in foreign languages (English specifically), receptionist, business management, etc. There will be 10-15 participants in each training course. In order to make the training curriculum and timetable, proper specialists have been selected. For the trainings permanent and temporary trainers have been selected. The selection was based on the experience and qualification of the local and external experts. The trainers’ experience and qualification should correspond to the demands mentioned in the approved training curriculum. Work contracts have been signed with the trainers. The trainings have been held under RDA and employers control. Based on the database, the Centre provides the employers and unemployed with consulting. The Centre distributes the information and the details about its activities among the population and business community, applying different ways of publicity, like: announcement via mass media, posters, web page, etc. Organization and implementation of professional trainings and workshops (on tourism and specialities of other relevant sectors). In order to organize the trainings for the service staff there have been close cooperation with the Union of Local Tour Operators, Armenian Hotel Association, Armenian Restaurant Association. Based on the regional training needs the summary of the trainings has been developed as follows, in particular: The Armenian Hotel Association suggested ‘Hospitality’ training, that has 5 days duration. There were 8 participants from hotels. The training involves the following topics: 1. The main principals of hospitality- 6 hours Fotografia 38.1 2. The main principals of reception hall organization- 12 hours Based on the collected and coordinated data, the Centre develops and organizes proper trainings on the specialities that are in 3. The main principals of food management 6 hours .:101:. 4. The main principals of management of cleaning - 6 hours trainings for tour guides and as a result 9 guides have been trained. The Armenian Restaurant Association suggested the following training topics: Preparation and presentation of 5 tourism packages to the market. The packages involved the 6 pocket areas identified by REDAM. The packages was prepared together with Union of local tour operators. In parallel with the packages, the project also created tourism information bases. The packages involved tours for 3, 5 and 7 days. As mentioned above, Vayots Dzor natural and historical-cultural heritage and organization of activities allow developing many kinds of tourism (e.g. ecotourism, traditional, historicalcultural, country, health, adventure tourism (climbing, caving, mountain and walking, riding, canyoning, fishing). Consequently, the packages were of different nature. One of the packages referred to the echo tourism, traditional and country tourism for 3 days, the second - to scientific and historical-cultural tourism for 7 days, the third - to health tourism for 7 days, the fourth - to adventure tourism for 5 days (climbing, caving, mountain and walking, riding, canyoning, fishing), and the fifth- to general tourism for 7 days. 1. Food and beverage management 2. Manager for the qualified hospitality sector. The duration of ‘Food and Beverage Management’ training were 3 days. The number of the participants were 8 - 12 people. Total number of the participants was 29. So 3 trainings took place. The duration and the topic for the trainings were as follows: 1. Introduction (The role and responsibilities of the food and beverage manager) - 3 hours 2. Food and beverage manager’s area of control - 3 hours 3. Food and beverage manager’s commercial activities- 3 hours 4. Food and beverage manager’s services- 3 hours 5. Professional development opportunities for the Food and beverage manager- 3 hours 6. The roles and responsibilities of the waiter3 hours The duration of the ‘Manager of the Qualified Hospitality Sector’ training was 5 days. There were 8 participants. The topics and the duration of the training are: 1. Consultants for the new managers - 3 hours 2. How to become a manager – 3 hours 3. Ethics - 3 hours 4. Management procedures - 3 hours 5. Leadership consulting - 3 hours 6. Kinds of authorities 7. Types of authority behaviour - 6 hours The trainings for the employees of service sector were implemented by trainers of Trainers Association, Union of Local Tour Operators, Armenian Hotel Association, Armenian Restaurant Association. This ensured the expected result that is: 54 trained, qualified and certified employees. The Armenian Tourism University conducted The Centre together with Union of local tour operators created tourism information base that allow both the private and state sectors be aware of the tourism possibilities available in the region, capability to accept guests and other factors. Proper web page has been created to disseminate and advertise the information. Preparation of advertising materials (booklets, information sheets, video clips on Vayots Dzor sights and historical-cultural heritage). A video clips on Vayots Dzor sights and historicalcultural heritage was shoot together with “Hayfilm” studio. The film was distributed in abroad and ensures information about the region via the tourists visiting the region. Publication of booklets on regional tourism opportunities and capacities. They were disseminated via tourists, tour operators and other state and private institutions free of charge. Parallel to the above-mentioned activities the construction of the ‘Tourism Development and Professional Training Centre’ has been conducted. Creation of business relations .:102:. and networking with interested organizations. Project management, monitoring, observing and evaluation. These activities were implemented with the involvement of regional NGOs, Marzpetaran (regional government). Municipality, other interested organizations from public and private sectors. economic initiatives, by involving all the local actors involved in LAG’s meetings for the definition of the local development strategies; the animation actions acts in horizontal sense on the main components of local economy (tourism, agriculture, hand working etc.); A. Activities in the final phase • a. The cooperating organizations developed the final acts and reports, conducted evaluation of the achieved results from the point of technical, ecological, economical, employment and social aspects; b. In order to disseminate the information about the achieved positive experience, public awareness events among appropriate circles, and local demonstration visits have been organized, publication of results via documents, mass media and web page, installation of gained experience and project results in LEADER+ national and European network. Equipment and machinery acquired: In this project, a Tourism Development and professional training centre has been realised. Besides the construction of the “centre” building, the project bought equipment and furniture for the training activities and final implementation. Methodology The project methodology is based on LEADER concepts and working methodology. The main components of the project methodology are: • • Establishment of a local partnership network, that works referring to the so called Local Action Group (LAG). The LAG, acting as Local Development Agency, is basically the focal point where public and private stakeholders meet and work in partnership. The LAG coordinates the meetings and provide technical support to the stakeholders in the definition of concrete measures of intervention, according to the individuated needs; Local economic animation – the LAG must realize activities of promotion and “start-up” interventions for the local Design of the LAP as the frameworks for the definition of the Regional strategies and the micro-project pipeline to be inserted in; this document is not a simple replication (or a revision) of the Regional Development Plans, but it aims to be the instrument where the identified priorities of intervention should find indications on terms, modalities and methods of concrete application. Design of operative interventions (the micro-projects); this activity is implemented by collecting proposals of project produced within the workshops promoted by the LAG. In this sense, the individuation of the factors of connection among the several projects has a basic importance. Once having completed their LAP, the LAG finalised the micro-projects that have been implement. Once the micro-project pipelines have been defined, the practical responsibility for the implementation of the program lied with the Local Action Group. There are cooperation agreements with partners, the detailed work plan of implementation and Gantt table are developed, the business relations with the partners and applicants are established. The attitude of all the beneficiaries is positive. It is conditioned by the programmatic activities directed to the solution of the beneficiary problems. There are no joint actions or possible limits in the project area, because there are no other planned or current projects there. The last phase regarded the concrete implementation of the micro-projects, monitoring of project’s implementation and the verification of the results. This micro-project were implemented directly by the RDA staff with the support of one of the members of the RDA LAG – the .:103:. “Regional Tourism Association-trusting it to this organization that guaranteed its proper implementation based on the attached agreement. different stages of project implementation and financing; The reasons of the suggested methodology are conditioned by “LEADER methodology”. According to assessment and information of the rural beneficiaries, LEADER approach is a means that works well in different situations and places thus adjusting the development of rural policy with the needs of development of rural areas. LEADER project holds the opinion that the cooperation increases the value of the results. That’s why it has become one of the main components of projects directed to the development of rural communities. REDAM II is considered to be a project directed to the implementation of regional development micro-projects and strengthening the human capacities of the LAG. This action in accordance to the governmental approach intended to the development of two regions. It coordinates the material and moral support of the local and regional authorities, local and international NGOs, communities within the frames of EU financial support. Within the frames of this project all the data and results that are needed for the preparation of micro-projects are updated. These data has been a base for the implementation of future activities after being confirmed by the local beneficiaries. The elaboration of Local Action Plan was completed and it was implemented after being approved by all instances of the government. All the main activities of REDAM II project have been co-financed as micro-projects and were in accordance to the Regional Development Plan, its objectives and means. In order to implement the project RDA VD was in charge of the following tasks: • To implement the project according to the ways and time frame mentioned in the document and according to the community rules and state and regional criteria; • To manage the project funds according to general provisions; • To file the minutes of the reports with permanently updated materials; • To accept control by eligible parties in • To guarantee co-financing support; • In case of possible changes in the project to contact the LAG’s Board; • To record and notify about the copies of the transfers in order to attach them to the originals of the money transfer and receipts, and the expenses made as a result of the payment. In case of the final notification of the public activities, the beneficiary should attach the validity of regular implementation of the action; • The unused money should be returned to the LAG; • To ensure advertisement about the activities, which correspond to the community regulations, and which refer to the means of support, information and publicity. These means are provided from the structural funds on EC requirements; • To attach documents about the future actions, proving the owner’s right or agreement with the contractor for the implementation of activities, guaranteeing the public benefit; Sustainability The following risks and assumptions have been taken into consideration: 1. Difficulties in renting a temporary space for the Centre: It could be difficult to find appropriate space for renting for the Centre until the new building is ready. Although the risk is not big, it is anticipated that in such a case RDA space can be rented. 2. Possible problems related to construction activities: During the construction of the building there may be changes (increase of) of prices on building materials and works (wages). 3. Failure of the ‘Tourism Development and Professional Training Centre’ to operate effectively and to build a good reputation (human resources, management). This is the first time for a Centre like this to be established in VD region. .:104:. In order to avoid this risk the project have already established good contacts with several tourism companies based in Yerevan and the Tourism Institute; there are preliminary agreements with these organizations to promote the tour-packages developed by ‘Tourism Development and Professional Training Centre’. There are also agreements regarding identification tour visits and organization of joint events. Moreover, measures have been taken to establish good working relations with Marz authorities as well as community authorities in the region, and to promote the initiative among them. It is recognize, that a key for ensuring effective operation of the Centre is to have highly qualified staff. Therefore, the recruitment of the staff was based on high requirements and standards, and it is anticipated to offer competitive salaries to be able to sustain the staff. It is assumes that there were enough qualified people to hire. The Centre ensures that the staffs get sufficient training and continuous improvement of their skills. 1. Decrease in the number of tourists visiting Armenia. Measures have already been taken to bring all the tourists visiting the region under the umbrella of organized tourism (e.g. advertising, variety of services, improvement of tour conditions, attractive suggestions, etc.). Surveys conducted under the REDAM Project show that the number of unplanned visits will increase if there are planned and improved conditions and services in the region. Close cooperation with the rural communities would allow more effective utilization of tourism potential in the region. 2. It is assumed that the policy conducted by of the Government of Armenia will be effective and will lead to increased number of tourists visiting Armenia. As announced by the Government, tourism is one of priority sectors for the Government and currently there are number of initiative that if successful would lead to increased number of tourists. 3. It is assumed that businesses and the population will see and understand the benefit of trainings and will be interested in proposed initiatives. To ensure this, the project used already established good relations within the local community, and conducted information campaigns to ‘educate’ businesses and the general public. 4. In terms of institutional sustainability, the newly established Centre got the new building and all the facilities and equipment as its property. For the first year of operation, the Centre has been provided technical support from the RDA. Revenues obtained from training courses and workshops allowed the Centre to sustain itself. 5. At policy level. The action did not require amendments in the current legislation, and it was implemented within the frames of the existing legislation. The project had positive impact on business practices via improved professional qualifications, and via promoting interactive cooperation between and among businesses and other stakeholders. 6. Financial sustainability. The sustainability calculations based on the estimated needs of the market, regional tourism resources and other economic justifications, as well as the operating legal and tax fields. The sustainability plan is calculated for one year time period. It involves the following activities. The revenue (about 12%) will gradually be invested for the improvement and of the activities of the Centre, increase of the services and strengthening human resources. 96 participants have been trained per month. The trainings were organized during 24 days, and were delivered by 8 trainers. The employers covered the 40% of training costs; the employees covered the 30% of training costs. If a person wishes to take training, but is not employed then he/she will pay 30% of the training price. Final Remarks Through the creation of the Centre, this pilot project aims at promoting not only the territorial development as well as public and private tourism organizations, but also it wants .:105:. to improve the skills of the local workforce and human resources involved in the tourism and accommodation sector (restaurants, hotels, tour operators, guides), and in all related industries (management, administration, accounting, crafts, interpretation, etc.). A travel agency has been realised and opened within the Centre. The Agency has created and disseminated several videos and other promotional materials, and established and managed a specific database and tour packages to be distributed among national and international Tour Operators. At the same time certificated professional trainings have been carried out to ensure adequate standards to required services. • • Thanks to the construction of a multifunctional centre of over 200 square meters per three floors plus a basement (in total about 800 square meters) it has been possible to furnish some strategic practices to turn as quickly as possible initiatives contributing to the development of the region; Again, it is important to remember that the area is located at the southern border of Armenia with Iraqi and Arzebaygyan (about 250 km from Yerevan). This means that it is more difficult to find right conditions for the economic development and therefore it necessary to think about developing programs that take into account both the consolidation of young human capital and the implementation of structural systems and infrastructure enabling to ensure an acceptable quality of life framework; • The construction of the Multipurpose Centre within the main square of Vayots Dzor has also confirm a new interest in the political system: • Reaffirming the self-determination principle and re-appropriation of the decisionmaking power; • Completely overcoming from what happened in the past both positively and negatively; • Reaffirmation of a decision-making in order to sort out by a paralysed system and lack of economic development; • Opening up new economic trade borders and markets; • Inclusion of the Armenian economy in the EU circuit market; • Enhancement environmental, cultural, human, historical, economic and social of resources for a new policy focused on modernization and revitalization of the global market; • Willingness to learn new rules and new paradigms such as new democratic supports for a development policy • Willingness to accept the rules of free markets, transparency and accountability of public administration. Conclusions The creation of this centre and the interest arisen around this building are extremely important factors. The effort to achieve the building in a very short time and in unfavourable weather conditions (keep in mind that at the end of October is no longer possible to work out since the fall of temperature several degrees below zero during the night) becomes a concrete example of an effective desire to boost the economic recovery. It is necessary to develop processes generating wealth and so as to activate the same redistribution mechanisms (goods and/ or services). Opportunities The project puts lot of attention and investment in the improvement of a reception centre for tourism, but also in the enhancement of human capital skills and competences. Even the recently approved EU project “Liaison for Grouth” further contributes to the development of tourism proposals both in Armenia and Jordania. Again the agreement with some Italian tour operators may allow the construction of a financial flow system enabling the right exploitation of Armenian wealth. .:106:. DEVELOPMENT of STRATEGIC PLANNING CAPACITIES IN VAYOTS DZOR and INTER-REGIONAL COOPERATION in VAYOTS DZOR and ARARAT SUB-REGION TOURISM SECTOR THE MICRO PROJECT IN BRIEF Title: Development of Strategic Planning Capacities in Vayots Dzor and Inter-regional cooperation in the Vayots Dzor and Ararat sub-region Tourism Sector Location: Vayots Dzor Region, YeghegnaDzor, - Ararat sub-region, Republic of Armenia Total duration: 6 Months Applicant: Regional Development Agency of Vayots Dzor in collaboration with Inter Coummunity Union of Vedi (RDA Vayots Dzor) Partner/s: Brief Description: - Regional Development Agency of Vayots Dzor (RDA Vayots Dzor) - Tourism Development and Professional Training Centre (TD&PT Centre) - Vedi Intercommunity Union - Khosrov state reserve (TVA Centre) The strategic cooperation project aims to establish capacity building in strategic (and project) management, designing tourism development strategy, and realize rational synergies at local, regional and inter-regional levels. Within the framework of the Project a Strategy of Tourism Development in the V-DS and Ararat Region (TD Strategy) was designed and the process of formulation of the TD Strategy was used as an opportune and good platform for tackling the problems and achieving the purpose of the whole Project. The overall objective of the proposed cooperation project is to contribute to the development and competitiveness of the tourism sector in Vayots Dzor region (V-DS Region) and Ararat sub-region. Specific objectives of the Project are: 1) Improved institutional capacities of the tourism sector in the V-DS region in terms of strategic planning, and good management; Objectives: 2) Improved cooperation and coordination between stakeholders in the tourism sector, including public-private partnership, and of good business networks; 3) Inter-regional cooperation between Ararat sub-region and Vayots Dzor region in the sector of tourism. 4) Strengthened technical and material capacities necessary for professional training activities with regard to hospitality business in the V-DS region; Improved quality of local expertise and professional skills in the tourism and related sectors in the V-DS Region, particularly, in the hospitality sector; 1.2 A 3-5 year Strategic Plan for Tourism Development as well as an accompanying 3-year Activity Plan significant role in promoting tourism sector development in the V-DS region; 2.2 A pilot Public-Private Partnership (PPP) implemented based on the design and implementation of a Strategic Plan for Tourism Development in V-DS region to be included (to serve as a basis) in the Marz Development Plan; Estimated results: 3.1 A guest-room in TD&PT Centre for demonstration and practical training purposes (based on high quality standards); 4.1 The TD&PT Centre is staffed with critical number of dedicated professionals with enhanced knowledge and high skills: - On hospitality business - Hotel hygiene, safety and quality management; .:107:. 1.1.1 Estimate training needs; and based on the estimation design the training courses and prepare training materials taking into consideration the training activities already implemented as a result of the micro-projects in process; 1.1.2 Organise and conduct the training courses; 1.2.1 Hire a consulting firm/consultant for leading the Strategy design process; 1.2.2 Prepare a Strategic Plan for Tourism Development in the V-DS Marz; 1.2.3 Organize working groups to be involved in the Strategy design process; 1.2.4 Prepare a special common tour-package for the neighbouring two Marzes and also cooperating institutions; 2.1.1 Working groups encompassing interested parties established for the design of the Strategy, Main activities: 2.1.2 Design and agree a scheme of harmonious cooperation between the parties involved in the design and implementation of the Strategy; 2.1.3 Organize and conduct a joint event (workshop) for the promotion of PPP for the development of tourism; 3.1.1 Design and furnish the guest room in the TD&PT Centre to serve like a pilot scheme for the target institutions in V-Ds Region; 3.2.1. Develop a concept on the database system in the tourism sector; 3.1.1 Design special practical training courses and prepare training materials; 3.1.2 Organise and conduct special practical training courses on hospitality business (hotel hygiene, safety and quality management, B&B, etc.); 4.2.1. Prepare materials and conduct special practical training courses for trainers on the hospitality business; 4.2.2. Prepare a Handbook (brochure) on some specific aspects of hospitality business (e.g. health and hygiene, safety and quality). Target group(s): Final Beneficiaries: - TD&PT Centre - RDA Vayots Dzor - Vayots Dzor Marzpetaran - Ararat Marzpetaran - ICU Vedi - Khosrov State reserve (TVA Centre) - Khosrov state reserve - Business entities operating in the tourism sector in the V-DS Region - At least 80 small entrepreneurs and professionals in Vayots Dzor - 15 communities (40.000 people) in Vayots Dzor - TD&PT Centre - RDA Vayots Dzor - Vayots Dzor Marzpetaran - Local Community Administrations/Municipalities in target area - ICU Vedi Total Cost: 35.320,00 € Cost’s Allocation: 30.000,00 Euro, EU funds + 5.320,00 Euro of cofinancing .:108:. Objective(s) The overall objective of the proposed Project is to contribute to the development and competitiveness of the tourism sector in Vayots Dzor region (V-DS Region) and partially for Ararat sub-region. The proposed Project aims to achieve: 1. Improved institutional capacities of the tourism sector in the V-DS in terms of strategic planning, and good management; 2. To organize common Tourism marketing strategy for the target territories of Vayots Dzor and part of Ararat; 3. Improved cooperation and coordination between stakeholders in the tourism sector, including public-private partnership; 4. Prepared Tour packages including Tourism Visit Accommodation Centre in Khosrov State Reserve (TVA Centre) and TD&PT Centre in Vayots Dzor; 5. Strengthened technical and material capacities necessary for professional training activities with regard to hospitality business in the V-DS region and Ararat sub-region; 6. Improved human capacities in the in the V-DS Region and Ararat sub-region with regard to the hospitality sector. Relevance of the action Tourism is recognized as the second strategic priority area for the development of the Vayots Dzor Region (V-DS region). It is well accepted that if positioned (in the market) and managed properly, natural as well as and historical-cultural heritage of the V-DS region and part of Ararat sub-region can provide wide opportunities for tourism development, and, thereby, can contribute significantly to the overall economic development and job creation in the regions. However, Vayots Dzor region and part of the Ararat region that has tourism attractions have not been able yet to utilize effectively its opportunities in the tourism sector for the benefit of regional economic development. In this context, the “Tourism Development and Professional Training Centre” MicroProject (TD&PT Centre, financed by the EU in the framework of REDAM II Project (Ref. EuropeAid/124645/C/AT/AM – TACIS Contract 2007/140637) has been initiated and is in process now. The project includes a quite large set of activities aimed at promoting the development of tourism in the V-DS region including: trainings, development and promotion of tourism products in the V-DS region, preparation of advertisement materials, design of the “Historical-Armenia” mock-up. Under the TD&PT Centre MicroProject, a new building was built for the Centre; Construction works of the TD&PT Centre building were completed by December 2009. The implementing agency of the TD&PT Centre Micro-Project is the Regional Development Agency of Vayots Dzor (RDA Vayots Dzor). On the other hand, in the framework of the same REDAM II Project, in Ararat sub-region the “Tourism Visit and Accommodation Centre” Micro-Project (TVA Centre) was organized in Khosrov State Reserve which is the focal point for the promotion of the sector in this area of the Marz. In the framework of this MicroProject there are several technical assistance activities mainly addressed to the staff for the centre. The activities of this cooperation micro-project pointed out those issues and activities that added value to those already included in the micro-project in process. The main advantage of the cooperation is planned to happen not only in the field of the strategic planning but also in the general organization of tourism marketing as well as common tour packages since the regions are neighbouring and have common border with each other. Successful implementation of the Project certainly had significant contribution to the development of tourism in both V-DS region and Ararat sub-region. However, the potential impact of the Project and the efficiency of activities of the TD&PT Centre may be jeopardized and/or lowered significantly due to the lack of strategic management capacities and lack of Tourism Development Strategy in the V-DS and Ararat Marz. In order to multiply the impact of the Project and achieve higher .:109:. efficiency of future activities of the TD&PT Centre there is currently a strong need for a well designed strategic plan in order to: development plans according to the principles and provision of the Concept. V-DS is yet to design their development plans. • Identify the goals and priorities for the tourism development for short to medium term, and detail the policies and activities that would lead to achieving the goals; • Enable to establish rational synergies between the activities of the Centre and other parties operating in the tourism sector, including business entities, NGO’s, and regional and local administrations; It is also important to mention that in 2008, the Government of Armenia has adopted number of concepts and programs aimed at promoting tourism in Armenia, including special city development programs. This includes: • Identify the role and functions of the TD&PT Centre in the strategy implementation process; • Allow increasing the possibilities to attract private investments as well as donor funding into the tourism sector; • Enable to establish important linkages between TD&PT Micro-Project and other initiatives and projects in the V-DS region and the one of TVA Micro-Project of Khosrov in Ararat sub-region and in other regions of Armenia, particularly in the other neighbouring regions - Syunik and Gegharkunik regions, as well as with policies and measures designed at central government level. In this regard, it has to be noted that in mid2008 the Government of Armenia has drafted and now promotes the “Concept of Designing and Implementing Regional Development Plans in Armenia” (RDP Concept). As the name suggests, it is to serve as a basis for regional administrations in designing and implementing regional development plans. The RDP Concept promotes balanced use of bottom-up and top-bottom approaches, and participatory process of planning where all stakeholders, including regional and local administrations, NGOs and other civil organisations have been the opportunity to present and promote their interests. The RDP Concept also refers to the logical framework of Project Cycle Management as tool for project identification and management. The RDP Concept has been used and tested for preparing development plans for two regional units (Marz) of Armenia – Gegharkunik Marz and Tavush Marz. Other Regional administrations also are required to prepare • The Concept of Tourism Development in Armenia; • Government Decrees on promoting tourism in individual cities of Armenia, e.g. Developing Tourism in the Jermuk city of V-DS Marz; • Number initiatives aimed at promoting Small and Medium Size Enterprise (SME) development in Armenia, including SMEs operating in the tourism sector. Under this circumstance, there is both a good opportunity and a strong need to establish rational synergies and close cooperation between the activities aimed at designing (and implementing) the Tourism Development Strategy and Marz Development Plan, as well as between policies and measures at regional, inter-regional and central levels. However, the existing institutional capacities in the V-DS are not sufficient for effective utilization of the opportunity and for meeting the challenge. Particularly, there is lack of capacity in strategic planning and management (which also is very important for the effective design and management of Marz Development Plan). The V-DS RDA needs significant improvement in strategic management (in terms of both human and technical capacities) in order to be able to design and implement efficient strategies. This is true not only with regard to the V-DS RDA and the TD&PT Centre, but also to Ararat sub-region and other NGOs and other civil society actors, businesses, and both regional and local administrations. Additionally, to a large extent, the RDP Concept is a “novelty” for Armenia’s regional and local administrations as well as NGOs and other civil organizations. Currently, there is lack of knowledge and understanding of the provisions of the RDP Concept, and of their .:110:. practical implications; there is also lack of institutional (human and technical) capacity to implement the methodology and approaches of the RDP Concept. Another problem that lowers significantly the efficiency and effectiveness of the resource utilization in the tourism sector of V-DS region and Ararat sub-region is the weak cooperation and coordination between different players and projects. There is a significant number of initiatives and/or projects being designed or implemented at local, regional and central level in the V-DS and neighbouring regions. However, majority of projects are implemented in isolation and without good linkages and coordination with others, which eventually leads to low scale of projects and to low efficiency of resource utilization. facilitating effective cooperation between different interested parties. The process of joint (participatory) work on a guiding document promotes cooperation and coordination between stakeholders in the tourism sector. Third, it enables establishing a rational synergy between the activities of the partner institutions and regional and local administrations as regards the design of a Marz Develoment Plan (in accordance to the methodology promoted by the Government). Forth, within the framework of the Project a Strategic Plan for Tourism Development in the V-DS Region was produced with an accompanying Action Plan, which can become part or the basis of the Marz Development Plan. The proposed Project is to address these issues, i.e. capacity building in strategic (and project) management, designing tourism development strategy, and establishing rational synergies at local, regional and interregional levels. Within the framework of the Project a Strategy of Tourism Development in the V-DS Region (TD Strategy) was designed and the process of formulation of the TD Strategy was used as an opportune and good platform for tackling the problems and achieving the purpose of the Project. This platform is “convenient” in several respects. The approach of the Project is that strategies and reforms aimed at tourism (economic) development can be effectively designed and implemented, achievements can be sustained, and the development can be ensured only by building a long lasting capacity in relevant public as well as private institutions. It is also understood that the capacity involves, both, human resources and institutional settings. Ultimately, it is people involved in strategy design and implementation who make change. However, capable people need sound institutional settings (including organizational and procedural schemes, cooperation, coordination and prioritization mechanisms, and accountability) that would enable to utilize efficiently and effectively available human resources. It is further understood that strategies and reforms can be effectively implemented and the achievements can be effectively sustained if there is sufficient knowledge and awareness about the goals in the society. Knowledge and awareness facilitate the process of reaching common understanding, and this in its turn facilitates the consensus building process, which is critical for strategy implementation and reforms. First, it creates a good ground for institutional strengthening. i.e. capacity building through designing and conducting training courses for the staff of the partner organizations, other NGOs and civil society actors, businesses, and both regional and local administrations. Second, it can serve as a good forum for The main target group that benefited from the project includes the TD&PT Centre and the V-DS RDA, the TVA Centre of Khosrov for ICU Vedi; Regional Authority (Marzpetaran) and Local Authorities (Communities) also benefited from the project. Other NGOs and businesses also benefited from the activities and results Having in mind all the above, there is a strong need for establishing rational synergies between regional and local administrations and the business and civil society in developing and implementing strategies and relevant action plans for tourism sector development at regional and inter-regional levels. At the same time there is a strong need to develop institutional and human capacities in strategic management, which enables establishing and capitalizing on good linkages and synergies. .:111:. of the project, in terms of improved human capacities, more efficient cooperation and coordination between different parties involved in the tourism sector. The Tourism Development Strategy and the accompanying action plan designed under the proposed project benefited the parties, since these documents became important guiding documents for them, and also they were included in the relevant section of the Marz Development Plan. Also, the process of Strategy formulation itself was beneficial, since it promoted cooperation between different stakeholders in the region; in the process, the participants learnt by doing; the process also opened new opportunities for funding and implementing joint projects. In addition, about 27 communities (for about 66.000 people) benefited (directly and indirectly) from different training programs identified during the implementation of this micro-project. The proposed Project also indirectly benefited to relevant organizations in other regions of Armenia, especially, in the neighbouring regions; accumulated knowledge and information can (will) allow offering training courses for those regions. Also inter-regional tourism opportunities were taken into account while designing the Tourism Development Strategy. Description of the action and its effectiveness Overall objective of the Project is to contribute to the development and competitiveness of the tourism sector in Vayots Dzor region (VDS Region) and partially for Ararat sub-region. “Tailor made” training courses contributed to the improvement of human capacities in strategic planning and management in the region. Courses designed based on the best practices of EU countries and contemporary concepts and knowledge on strategic management and project cycle management, and they took into account the specific needs of participants. To achieve its overall objective, the Project focuses mainly on: A professional consulting firm or individual consultants was invited to lead the process of the Strategy (and action plan) design and to design and conduct trainings on strategic planning and management. The process of the Strategy design was (utilize the methodology and principles set out in the RDP Concept mentioned above) organized in a participatory manner, through round table discussions with interested parties, where parties was able to express their views and comments. The proposed project was also address a specific issue related to strengthening the technical capacities of the TD&PT and TVA centres required for conducting high quality practical training activities. The project was focused particularly on hospitality (hotel, B&B, motel) business, which is one of the weakest sides in the target area, and requires special attention. Based on the preliminary discussion with professional organizations, the design and furnishing of one good guest room (in each building) for demonstration and practical training purpose has been justified. Special short practical training courses on safety and quality management in the hospitality business contributed significantly to the development of tourism in the region. 1. The improvement of institutional capacities of the tourism sector in the V-DS region in terms of strategic planning, and good management; 2. The improvement of cooperation and coordination between stakeholders in the tourism sector, including public-private partnership, and of good business networks stressing the inter-regional level cooperation; 3. Strengthening technical and material capacities necessary for professional training activities with regard to hospitality business in the V-DS region and partially for Ararat subregion; 4. Improving capacities in the in the V-DS Region with regard to the hospitality sector; Within the framework of the Project a 3-5 year Strategic Plan for Tourism Development as well as an accompanying 3-year Activity Plan (to be incorporated in the Marz .:112:. Development Plan) have been designed in close collaboration with all stakeholders, including NGOs and business entities, and regional and local authorities. And the process of formulation of the Strategy was used as an opportune and good platform for tackling the problems and achieving the purpose of the Project, particularly, strengthening the strategic management capacities, and promoting cooperation between stakeholders in the tourism sector. Special attention was given to economic development aspects, and economic developments were considered as a driving engine for the overall development of the Marz. The Strategy also included a section about the role and value proposition of the TD&PT Centre in V-DS as well as the inter-regional cooperation issues for the target area. With regard to institutional strengthening and capacity building, the Project aimed at ensuring that the V-DS RDA and TD&PT Centre is staffed with critical number of dedicated professionals with enhanced knowledge and high skills: • On strategic planning and management; • On project cycle management; • On methods and rules set out by the Government of Armenia with regard to the design and implementation of Marz Development Plans. Within the framework of the Project at least 40 employees from different entities (target institutions Marzpetaran, local community administrations, and business entities) were trained, via “tailor made” special training courses on strategic management. This ensured the availability of a pool of adequately qualified professionals in the V-DS Marz required effective design and implementation of strategies and policies. In addition, to ensure sustainability, selected representatives from both public and private entities received additional training (certificate course) and became trainers. Training was conducted before, during and after the process of formulation of the Strategy and the Action Plan. The process of the Strategy design helped to identify specific training needs and to prepare materials and courses accordingly. At a later stage, the knowledge and information accumulated during the project can (will) allow offering training courses for relevant organizations in other regions of Armenia, especially, in the neighbouring regions (remaining area of Ararat, Syunik, and Gegharkunik). Based on the training materials prepared during the Project, and the lessons learnt during the training courses, a concise handbook (or brochures) was prepared about Strategic Planning and Management, and Project Cycle Management. Also leaflets on the new methodology of preparing Marz Development Plans were prepared and published. These materials were addressed to professionals dealing with strategy and project design and implementation in the public as well as in private sectors. Effective cooperation and coordination between stakeholders in the tourism sector was promoted and enhanced through a participatory process of Strategy design. Thus, the Strategy design process itself can be viewed as a challenging project for constructive partnership. Through this process, the parties involved had an opportunity to come-up with their ideas and views regarding the future development of the tourism sector; they were able to represent their interests and needs. Through this process the parties involved got sense of ownership, and be able to identify clearly the priorities for tourism development and understand their relevant roles in the implementation of the Strategy and the Action Plan. The latter is a key factor for attracting major investments needed for development, and for effective design and implementation of public-private partnerships. The Strategy itself and the design process also enabled establishing and developing rational synergies between stakeholders playing a significant role in promoting tourism sector development in the V-DS region and Ararat sub-region and promoting the cooperation between the two target areas, as .:113:. well as between various projects initiated or implemented by public and private sectors, and by the donor community. It can directly promote and identify projects for public-private partnership (PPP). Throughout the process, it was important to give due attention to possible inter-regional synergies via looking at inter-regional tourism opportunities, especially, with neighbouring regions (remaining part of Ararat, Syunik, and Gegharkunik), the need for information sharing and possible common mechanisms for data collection and processing. One of the important effects or positive results of the participatory Strategy design process was the establishment of a scheme of harmonious cooperation agreed and established between the parties involved in the design and implementation of the Strategy. Working groups (encompassing interested parties) created for the design of the Strategy worked together to identify effective and streamlined schemes of cooperation. The V-DS RDA, TD&PT Centre organised jointly an event for presentation and discussion of the Strategy and for the promotion of PPP in the tourism sector. With regard to strengthening the technical capacities in the hospitality sector, the Project focused on improving technical and material capacities necessary for professional training activities with regard to hospitality business in the V-DS region. For this purpose, one guest room (of about 24 sqm) was designed and furnished in the TD&PT Centre building for demonstration and practical training purposes. The design and furnishing of the room was complied with internationally accepted high standards on safety and quality. The Project also aimed at ensuring that relevant business entities operating in the V-DS region are equipped with adequate knowledge and are staffed with critical number of dedicated employees with enhanced knowledge and high skills on hospitality business and, particularly, on hygiene and safety and quality management. The guest room in Vayots Dzor is used to test a special training with illustrations and practical exercises for at least 20 people. Additionally, a small brochure on “Some Specific Aspects of Hospitality Business (hygiene, safety and quality management)” was prepared and published. A local professional consulting firm and/or consultant (hereafter – Local Consultant) was invited to lead the process of the strategy (and action plan) design, and to design and conduct trainings on strategic planning. The firm/ consultant shall have extensive experience both in business consulting, particularly, in strategy and management consulting, as well as in public policy consulting, including economic and sector policy design and implementation, regional economic development issues. The firm/consultant shall also have adequate experience and knowledge on the EU approaches and the experience of EU countries in regional development, participatory processes and establishing harmony of “top-down” and “bottom-up” approaches. Initial stage of Project activities At the initial stage of Project activities, a local professional consulting firm and/or consultant was identified and an agreement was signed with it. The Local Consultant leaded the process of the strategy (and action plan) design, and designed and conduct trainings on strategic planning and management. Preliminary composition of the training (topics) and their duration are presented bellow. 1. Strategy process (4 courses, 2 day duration each, 20 participants in total): a. Basic concepts of the strategy process; b. Main driving forces of the strategy process; c. Contexts of strategy process; The Strategy Process trainings were based on case studies and took into accounts the specifics public as well as private sector. 2. Project cycle management (4 courses, 1 day duration each, 20 participants in total): a. International experience and modern approaches and tools for Project Cycle Management (particularly, the approaches .:114:. and methods applied in the EU); One-day workshop was organized, where the Strategy and the Action Plan was presented to stakeholders and other interested parties, including representatives of the donor community and international organizations. Based on the results of the discussions, the Strategy and the Action Plan was revised and finalised. b. Analysis of practical examples, and practical exercises; 3. Methods and approaches for the design and implementation of Marz Development Plans(4 courses, 1 day duration each, 20 participants in total): For the hospitality training (2 training courses, 1 day duration each, 20 participants in total) and for publication, materials were prepared and trainings conducted by the local hospitality consultant. a. Analysis of relevant legislative and regulatory framework; b. Practical implications; 4. Special issues on hotel hygiene, safety and quality (2 courses, 1 day duration each, 30 participants in total in V-Ds. Methodology At the initial stage, preliminary discussions were conducted with interested parties (including the V-DS Marzpetaran) on the content of the Strategy of Tourism Development to be designed during the project. The Local Consultant in close cooperation with the V-DS RDA and TD&PT Centre led discussions. Project Activities During the micro project, Working Groups on the Strategy design was formed, and works on the Strategy design started. The Local Consultant in close cooperation with the V-DS RDA and TD&PT Centre led the works on the Strategy design. The strategy design process has been participatory, and the Working Groups included representatives of all interested parties. Strategy design process involved business entities, TD&PT Centre and the V-DS RDA and other NGOs and civil entities, and two Marzpetarans, Yeghegnadzor municipality and other local community administrations. Trainings have been conducted till the end of the project. The Local Consultant carried out trainings with technical and organizational support from the V-DS RDA and the TD&PT Centre. Local designer and a local hospitality business consultant were identified and hired for the design and furnishing of the guest rooms. The implementation of the present project referred basically to the methodologies applies in regional development in the EU, and, particularly, in the EC Initiative Program LEADER, that has been adopted and tested in many rural areas of the European Union. This program, started in the early 1990s and then adopted in more than 1000 rural territories all around the EU, has generated important results in terms of growth of local development and generation of innovative measures. The main characteristic of this methodology of implementation consists in the bottom-up approach, where the role of local actors in the individuation of development actions becomes of basic importance. Establishment of a local partnership network, that works referring to the so-called Local Action Group (LAG), is one of the main elements of this methodology. The LAG (in this case RDA V-Ds and ICU Vedi), acting as Local Development Agency, is basically the focal point where public and private stakeholders meet and work in partnership. The LAGs coordinate the meetings and provide technical support to the stakeholders in the definition of concrete measures of intervention, according to the individuated needs. The LAGs must realize activities of promotion and “start-up” interventions for the local economic initiatives, by involving all the local actors involved in LAGs’ meetings for the definition of the local development strategies. Design of Local Action Plans (LAPs) is another important element of the .:115:. methodology: LAPs serve as the frameworks for the definition of the Regional strategies and the interventions’ areas and actions; this document is not a simple replication (or a revision) of the Regional Development Plans, but it aims to be the instrument where the identified priorities of intervention should find indications on terms, modalities and methods of concrete application. Vayots Dzor RDA directly managed and is the main responsible body for the implementation of the Project. The Project was directly run by a Project Team consisted of a Project Coordinator and an Assistant. The Project Coordinator was responsible for supervising the day-to-day operation of the Project. Vayots Dzor RDA acted also as a link between the target groups/final beneficiaries of the Project and Marzpetaran (the regional authority) and local communities to ensure the dialogue among different stakeholders. This methodology has been chosen since it is able to encourage and support the local actors of the territory by a local sustainable and integrated development strategy, through a high level of involvement of local actors and high-quality partnership. In fact, the proposed methodology wants to facilitate the creation of a culture of local development and stimulate the growth in terms of self-conscience of their own capacities, and capacity of all economic resources to work together and to establish mid-term strategic orientations. Vayots Dzor RDA (and other NGOs) in the Project ensured the technical assistance during the implementation and organization phases of the Project. Local Consulting firm/Local Consultant was hired to lead the process of the Strategy (and action plan) design and to design and conduct trainings on strategic planning and management. The Local Consultant ensured high quality of expertise and knowledge required for the training courses. The process of the Strategy design (utilize the methodology and principles set out in the RDP Concept mentioned above) was organized in a participatory manner, through round table discussions with interested parties, where parties were able to express their views and comments. The Local Consultant worked in close cooperation with and under the coordination of Vayots Dzor RDA. The proposed Project is complementary to the activities of the ongoing “Tourism Development and Professional Training” Micro-Project financed by the EU as well as to the Micro-Project realized by ICU Vedi (especially for Khosrov Micro-Project), and it facilitates and further the attainment of the objectives of the latter. The TD&PT includes a quite large set of activities aimed at promoting the development of tourism in the V-DS region including: trainings, development and promotion of tourism products in the V-DS region preparation of advertisement materials. The implementing agency of the TD&PT Project is the Regional Development Agency of Vayots Dzor (V-DS RDA). Strengthened capacities of the TD&PT, the Tourism Development Strategy to be designed under the proposed Project and related cooperation between different stakeholders ensured necessary prerequisites for successful operation of the TD&PT Centre. The direct applicant for the proposed Project is a partnership amongst: • Vayots Dzor RDA; • TD&PT Centre; • TVA Centre in Khosrov State Reserve; • ICU Vedi. Local designer and hospitality consultant was hired to specify the equipment, furniture and other items needed for furnishing the guest room, based on internationally accepted standards on health and life safety and quality (particularly with those applied in the EU). Hospitality consultant prepared training materials for training on hygiene and safety in hospitality business. The designer and the hospitality consultant worked in close cooperation and under the coordination of V-DS RDA. V-DS Marzpetaran with its relevant officials, as a motivated interested party, supported the V-DS RDA and the Project team in their efforts aimed at implementing the activities under the proposed Project. Marzpetaran was active in facilitating the process of discussions and the .:116:. design of the Tourism Development Strategy, which was included in the Marz Development Plan. Duration and indicative action plan for implementing the action The duration of the Project is five months. The sequence and duration of anticipated activities are presented in the chart bellow. Synergies with other initiatives, e.g. interregional synergies (remaining area of Ararat, Syunik, and Gegharkunik). Months Activity 1 2 3 4 5 Implementing body Business Consultant Training needs assessment TD&PT Centre Vayots Dzor RDA Preparation of training material Business Consultant Business Consultant Training courses on strategic management Vayots Dzor RDA TD&PT Centre Business Consultant TD&PT Centre Vayots Dzor RDA Design of the Strategy of Tourism Development V-DS Marzpetaran Local Communities Business entities Vayots Dzor RDA Organise Working Groups for the Strategy design TD&PT Centre Business Consultant TD&PT Centre Vayots Dzor RDA Organise a workshop for the presentation of the Strategy V-DS Marzpetaran Local Communities Business entities TD&PT Centre Hire an appropriate designer and a hospitality consultant for the guest room Vayots Dzor RDA Design firm (or a person) Design of the guest room Hospitality Consultant Armenian Hotel Association TD&PT Centre Identification and procurement of furniture for the guest room Vayots Dzor RDA TD&PT Centre Furnish the guest room Vayots Dzor RDA .:117:. Sustainability In relation to the effective implementation of training activities on strategic management: • It is assumed that Marz and local authorities will be active and will see and/or recognise the need and benefits for training on strategic management. Practically, the risk that this assumption will not hold true is very low, since preliminary interviews and discussions with relevant parties, including Marzpetaran and local community officials, representatives of NGOs and business circles has shown that the weakness in strategic planning and management capacities and, hence, the need for trainings is clearly recognised. There is common understanding among different stakeholders that these trainings (and related cooperation) facilitate the process of the design of the Tourism Development Strategy and the Marz Development Plan in the V-DS and Ararat Marzes, and enable increasing the quality of relevant documents and improving prioritization techniques. This, in its turn, will increase the efficiency and effectiveness of the efforts of V-DS and Ararat Marzes, in promoting its interests at central government level, and facilitate the approval processes at central government level to get funding for the implementation of the Tourism Development Strategy and the Marz Development Plan. With this understanding, Marz and local authorities have high interest and readiness to cooperate for addressing the capacity building needs, and would appreciate technical assistance and cooperation for designing the Marz Development Plan. • It is also assumed that the right people nominated to receive the training, and that the relevant authorities and organisations will be willing and able to retain and effectively utilize the trained human resources. The risk is that trained people will become more competitive in the job market and will leave their positions for higher paid jobs In relation to the design of the Strategy and an Action Plan for Tourism Development for V-DS Region: • It is further assumed that Marz and local community authorities, and NGOs and the private sector, will see the necessity and the benefit of cooperation and are willing to cooperate. The risk that this assumption will not hold true is very low, taking into account preliminary discussions with relevant parties. As noted above, Marz and local community authorities are interested to cooperate. Regarding NGOs and businesses, they are also interested, since active cooperation will give them a good opportunity to present and promote their interests, while designing the Tourism Development Strategy and/or the Marz Development Plan. • It is also assumed that the V-DS RDA (TD&PT Centre) and ICU Vedi has/will be able to gain good reputation among public and private parties and the general public, and to act as a good mediator and promoter of cooperation processes. In this respect, there is, actually, no risk having in mind that V-DS RDA and ICU Vedi has already have an extensive experience in working with public and private entities, and is a well known organisation with good reputation in the region. V-DS RDA have implemented number of development projects in the regions, and they are currently the implementing agencies of the “Tourism Development and Professional Training Centre” Micro-Project and “Tourism Visit and Accommodation Centre” of Khosrov State Reserve, financed by the EU. It has the required professional and management capacities. In relation to strengthening institutional, technical and human capacities in the hospitality business, the construction works of the TD&PT Centre TVA Centre of Khosrov was completed in time (December 2009). Improved capacities, achieved as a result of successful implementation of the Project, have increased the efficiency of strategy design and implementation processes in the region through the use of more sophisticated methods and contemporary approaches (e.g. participatory processes, balanced mix of top-down and bottom-up approaches). The Project also facilitated the process of implementation of new methods and .:118:. approaches promoted by the Government of Armenia for designing Marz Development Plans. This improved significantly the quality of policy documents prepared in the region, and allowed establishing rational synergies between different policy directions at regional level, and matching regional and national priorities. Ultimately, all this together lead to higher efficiency of the use of scarce resources, as well as the effectiveness efforts of regional/local authorities and businesses aimed at attracting necessary funding for development project. .:119:. THE AREA AND ICU VEDI LAG Vedi – Children in a Vedi street © Bonazza Typical bread cooking .:121:. THE AREA AND ICU VEDI LAG Khor Virap – The Monastery and Ararat Mountain Khor Virap – Icon inside the Monastery .:122:. THE AREA AND ICU VEDI LAG Ararat Marz - Mountain view Ararat Marz – Mountain view .:123:. THE AREA AND ICU VEDI LAG Vedi – Work in a vineyard Vedi – Shepherd .:124:. THE AREA AND ICU VEDI LAG Khor Virap – President of “Khor Virap” agriculture cooperative Khosrov – Meeting with ICU Vedi staff .:125:. THE AREA AND ICU VEDI LAG Khosrov – Visit to the “Khosrov Forest State Reserve” Vedi - Vineyard .:126:. THE AREA AND ICU VEDI LAG Vedi – Landscape view LOCAL PROJECT: “URBAN WASTE CYCLE MANAGEMENT MODEL” Vedi - Back loader .:127:. LOCAL PROJECT: “URBAN WASTE CYCLE MANAGEMENT MODEL” Vedi - Back loader Vedi – Plastic trash bins .:128:. LOCAL PROJECT: “URBAN WASTE CYCLE MANAGEMENT MODEL” Vedi – Plastic trash bins Vedi – Deposit of plastic trash bins .:129:. LOCAL PROJECT: “URBAN WASTE CYCLE MANAGEMENT MODEL” Vedi – bulldozer Vedi – street sweeper .:130:. LOCAL PROJECT: “URBAN WASTE CYCLE MANAGEMENT MODEL” Vedi - trucks Vedi – car .:131:. LOCAL PROJECT: “URBAN WASTE CYCLE MANAGEMENT MODEL” Vedi – metallic trash bins Vedi - Mini truck .:132:. LOCAL PROJECT: “URBAN WASTE CYCLE MANAGEMENT MODEL” Vedi – Multipurpose truck LOCAL PROJECT: “ESTABLISHMENT OF TOURIST VISIT AND ACCOMMODATION CENTER IN KHOSROV STATE RESERVE” Khosrov – Assogal delegation and local staff .:133:. LOCAL PROJECT: “ESTABLISHMENT OF TOURIST VISIT AND ACCOMMODATION CENTER IN KHOSROV STATE RESERVE” Khosrov – Foundation of Khosrov Visit Centre Khosrov – Foundation of Khosrov Visit Centre .:134:. LOCAL PROJECT: “ESTABLISHMENT OF TOURIST VISIT AND ACCOMMODATION CENTER IN KHOSROV STATE RESERVE” Khosrov - Khosrov Visit Centre Khosrov – Assogal delegation visits Khosrov Visit Centre .:135:. LOCAL PROJECT: “ESTABLISHMENT OF TOURIST VISIT AND ACCOMMODATION CENTER IN KHOSROV STATE RESERVE” Khosrov - Khosrov Visit Centre Khosrov - Khosrov Visit Centre .:136:. LOCAL PROJECT: “ESTABLISHMENT OF TOURIST VISIT AND ACCOMMODATION CENTER IN KHOSROV STATE RESERVE” Khosrov - Khosrov Visit Centre Khosrov - Khosrov Visit Centre .:137:. LOCAL PROJECT: “ESTABLISHMENT OF AGRI-MECHANIZATION CENTRE IN KHOR VIRAP” Khor Virap – tractor with hay racking Khor Virap - tractor .:138:. LOCAL PROJECT: “ESTABLISHMENT OF AGRI-MECHANIZATION CENTRE IN KHOR VIRAP” Khor Virap – sowing machine Khor Virap – sowing machine .:139:. LOCAL PROJECT: “ESTABLISHMENT OF AGRI-MECHANIZATION CENTRE IN KHOR VIRAP” Khor Virap – universal sowing machine Khor Virap - tractor .:140:. LOCAL PROJECT: “ESTABLISHMENT OF AGRI-MECHANIZATION CENTRE IN KHOR VIRAP” Khor Virap – soil milling machine Khor Virap - trailer .:141:. LOCAL PROJECT: “ESTABLISHMENT OF AGRI-MECHANIZATION CENTRE IN KHOR VIRAP” Khor Virap - tractor Khor Virap – visit of Assogal delegation and ICU Vedi staff to Khor Virap cooperative .:142:. LOCAL PROJECT “ESTABLISHMENT OF FRUIT AND VEGETABLES DRYING AND PACKAGING UNIT IN URTSADZOR” Urtsadzor – Fruit sellers along the street Yerevan - Fruit and vegetable market .:143:. LOCAL PROJECT “ESTABLISHMENT OF FRUIT AND VEGETABLES DRYING AND PACKAGING UNIT IN URTSADZOR” Urtsadzor – Fruit and vegetable drying and packaging Centre Urtsadzor – Fruit and vegetable drying and packaging Centre .:144:. LOCAL PROJECT “ESTABLISHMENT OF FRUIT AND VEGETABLES DRYING AND PACKAGING UNIT IN URTSADZOR” Urtsadzor – Fruit and vegetable drying and packaging Centre Urtsadzor – Assogal and ICU Vedi delegations visit the Fruit and vegetable drying and packaging Centre .:145:. LOCAL PROJECT “ESTABLISHMENT OF FRUIT AND VEGETABLES DRYING AND PACKAGING UNIT IN URTSADZOR” Urtsadzor - Balance Urtsadzor – Nitrate tester Urtsadzor - Balance .:146:. LOCAL PROJECT “ESTABLISHMENT OF FRUIT AND VEGETABLES DRYING AND PACKAGING UNIT IN URTSADZOR” Urtsadzor - Packaging device Urtsadzor - Press cutter .:147:. LOCAL PROJECT “ESTABLISHMENT OF FRUIT AND VEGETABLES DRYING AND PACKAGING UNIT IN URTSADZOR” Urtsadzor - Thermo packaging Urtsadzor – Vertical packaging .:148:. THE AREA AND RDA VAYOTS DZOR LAG Vayots Dzor - Noravank Monastery .:149:. THE AREA AND RDA VAYOTS DZOR LAG Vayots Dzor – Landscape view Vayots Dzor – View from Noravank Monastery .:150:. THE AREA AND RDA VAYOTS DZOR LAG Vayots Dzor - Noravank Monastery Vayots Dzor - Noravank Monastery .:151:. THE AREA AND RDA VAYOTS DZOR LAG Vayots Dzor – Particular of the curch in Noravank Monastery Vayots Dzor – Icon in Noravank Monastery .:152:. THE AREA AND RDA VAYOTS DZOR LAG Vayots Dzor – Landscape view Vayots Dzor – Rural area view .:153:. THE AREA AND RDA VAYOTS DZOR LAG Vayots Dzor - Vineyard Yeghegnadzor – RDA Vayots Dzor office .:154:. THE AREA AND RDA VAYOTS DZOR LAG Yeghegnadzor – RDA Vayots Dzor staff LOCAL PROJECT “TOURISM DEVELOPMENT AND TRAINING CENTRE IN YEGHEGNADZOR” Yeghegnadzor – Tourism Development and Training Centre .:155:. LOCAL PROJECT “TOURISM DEVELOPMENT AND TRAINING CENTRE IN YEGHEGNADZOR” Yeghegnadzor – Tourism Development and Training Centre Yeghegnadzor – Tourism Development and Training Centre .:156:. LOCAL PROJECT “TOURISM DEVELOPMENT AND TRAINING CENTRE IN YEGHEGNADZOR” Yeghegnadzor – Tourism Development and Training Centre Yeghegnadzor – Tourism Development and Training Centre (inside) .:157:. LOCAL PROJECT “TOURISM DEVELOPMENT AND TRAINING CENTRE IN YEGHEGNADZOR” Yeghegnadzor – Tourism Development and Training Centre (inside) Yeghegnadzor – Tourism Development and Training Centre (inside) Yeghegnadzor – Tourism Development and Training Centre (official inauguration) .:158:. LOCAL PROJECT “TOURISM DEVELOPMENT AND TRAINING CENTRE IN YEGHEGNADZOR” Yeghegnadzor – Tourism Development and Training Centre (official inauguration) Yeghegnadzor – Tourism Development and Training Centre (visit of local authorities) .:159:. LOCAL PROJECT “TOURISM DEVELOPMENT AND TRAINING CENTRE IN YEGHEGNADZOR” Yeghegnadzor – Tourism Development and Training Centre (official inauguration) Yeghegnadzor – Tourism Development and Training Centre (official inauguration) .:160:. LOCAL PROJECT “DEVELOPMENT OF STRATEGIC PLANNING CAPACITIES IN VAYOTS DZOR AND INTER REGIONAL COOPERATION IN VAYOTS DZOR AND ARARAT SUB-REGION IN TOURISM SECTOR” Yeghegnadzor – training courses Yeghegnadzor – training courses .:161:. LOCAL PROJECT “DEVELOPMENT OF STRATEGIC PLANNING CAPACITIES IN VAYOTS DZOR AND INTER REGIONAL COOPERATION IN VAYOTS DZOR AND ARARAT SUB-REGION IN TOURISM SECTOR” Yeghegnadzor – Training certificates .:162:. LOCAL PROJECT “DEVELOPMENT OF STRATEGIC PLANNING CAPACITIES IN VAYOTS DZOR AND INTER REGIONAL COOPERATION IN VAYOTS DZOR AND ARARAT SUB-REGION IN TOURISM SECTOR” Yeghegnadzor – tourism information materials .:163:. MONITORING AND EVALUATION: THE LEADERABILITY ASSESSMENT 1. INTRODUCTION 1.1 General references The project is supported by the European Union’s TACIS Programme for Armenia, as reported in the TACIS contract no. 2007/140637. Assogal Toscana has been selected to implement this project1 and RDA Vayots Dzor and Inter-Community Union Vedi Ararat take part in the project as local partners. This evaluation plan is thus located in this programming framework and includes: - project external evaluation activities; - preparation of an evaluation report. 1.2 Aims and scope of the evaluation This evaluation is carried out with aims which mainly have got a formative aspect, to examine the performed work from outside, in order to get useful teachings for planning the next similar activities which will be promoted by Assogal. The object of the evaluation is determined by the logic of project intervention which is described in the following panel2: Overall objective of the project: “To introduce 1 Notification letter of 24th of May 2007 of the European Union in Tiblisi (Georgia); 2 Project “A regional network for promotion of integrated sustainable development in Ararat and Vayots Dzor” ,Grant contract – external actions of the European Community – Tacis 2007 14637 innovative development strategies and to support social and economic projects in the two regions through the introduction of Leader approach”. Specific objectives - to establish a robust system for identifying, implementing, monitoring and evaluating, development projects in Ararat and Vayots Dzor, that will introduce and test the concept of regional development by improving partnership between regional and local actors; to encourage the socio-economic players to work together, to produce goods and services that generate maximum added value in the two regions; - to implement the skills of the two local partners operators (RDA Vayots Dzor, Inter-Community Union Vedi Ararat) in promotion of participatory approach in Regional Development and local planning, in promotion and organization of sustainable public-private partnerships at Regional level, in technical and financial project identification, preparation, monitoring and evaluation; - to implement the skills (capacity building) of local public private stake holders operators to identify concrete projects and to implement them; - to assist sectors and categories of beneficiaries which often receive limited support under other development aid programmes operating in such rural areas. Judgment criteria have been established taking into account both the small available .:165:. budget (in terms of time and resources) and the need to produce a complementary work with the one already made by the monitor. This last one is focused on the following criteria3: 1. Relevance and quality of project design 2. Efficiency of implementation 3. Effectiveness 4. Impact prospects 5. Potential sustainability 6. Horizontal Issues 7. Cross-cutting issues Thus taking into account evidences collected by the monitoring report, the evaluation has been focused more to investigate the different aspects of the transfer of the Leader approach (through qualitative analysis based mainly on the perception of different categories of actors participating in the experiment) rather than to assess the results obtained through the projects investments. As a matter of facts the operational principles of the LEADER approach provide orientations on how to act, rather than a vision of what to achieve. It is based on the assumption that only the change of behaviour and interaction patterns stabilizes economic and social change in the long run. 2 EVALUATION DESIGN 2.1 Judgment criteria and evaluation questions Rationale The Leader approach seeks to develop the links between actions for the development of the rural community which is the basis of the acronym which gives the approach to its name. The Community Strategic Guidelines for Rural Development 20064 underline that Leader ‘should play an important role in the horizontal priority of improving governance and mobilizing the endogenous development potential of rural areas’. Governance in its various forms is therefore a highly important theme when evaluating the effects 3 A. Melkumyan, H. Maters, Monitor back round conclusion sheet, 2/12/2009. 4 See council decision 2006/144/EC of an experiment of transfer of Leader approach because it is strongly linked to its operational principles5: area-based; bottomup or participatory, partnership oriented, intersectorial - strategic , decentralized, cooperation and networking. Governance is a complex process involving the interaction of multiple stakeholders, often with different definitions of the challenges being addressed, working at different political levels, and therefore a multiplicity of values and viewpoints become relevant. In particular in the context of this project, governance should be approached in two complementary ways, considering both its vertical and its horizontal dimensions. The vertical dimension is related to the interactions chain who connect the project authority to final beneficiaries (passing through the “agency” playing the role of Local Action Group), it refers to the policy and/or political domain, based mainly on redistribution, formalised rules, normative control and an interconnected, co-operating system of various level development institutions, and will be referred to below as multilevel governance. The horizontal dimension refers mainly to the interactions between the LAG (or local agency and partnership) and the different categories of local stake holders and target groups, it is related to the local/heuristic domain, based on networks, endogenous action, and the integration of development resources in a local territorial framework, and is recognised below as local governance. These two dimensions are closely interconnected and for a successful, structural development they should form an integrated system. Whereas, the main principles (participation, subsidiarity, democratic decision making, etc.) are very similar in both domains, the ways in which they are implemented can be quite different. - Multilevel governance - is the politicaladministrative co-ordination of LAGs activity, defining the institutional, regulatory and procedural environment as external 5 OECD (2006). The new rural paradigm: policies and governance. OECD Rural Policy Reviews. Paris, OECD Publications. This document propose a widely accepted model of rural development, based on partnership, programming and local participation, aiming at the realisation of integrated rural development, in order to achieve a more efficient use of resources, and a reduction in regional and social inequalities .:166:. circumstances for the operation of the Leader approach. Main evaluation criteria and questions The process adopted to select the specific evaluation question and their indicators has been the following one: - Local governance – in our case, is the coordination or the way of operation at local level to achieve local development. It can be defined as a network-like collaboration (partnership) between three classes of local actors (public administration, private/ economic sector and civil society) aimed at: harmonising interests; solving conflicts and problems; co-ordinating efforts for the protection of local material and immaterial potentials and their revalorisation as resources for socio-economic development. Typical attributes are participation, local initiatives and innovation, voluntary involvement (so actors always have an exitoption), and horizontal modes of interaction between partners (instead of hierarchical modes of steering). Main criteria 1. For each of main components (main criteria) of governance, multilevel and local, judgment criteria and general question has been defined. 2. Taking into account that each general question includes several aspects, it has been necessary transforming each one of them in several relevant simple questions and, for each one of them, one or more specific indicators have been selected; in this way answering all the related simple questions should give a satisfying answer to the general question. Judgment criteria and general questions (Level of decentralization) Multi-level governance To what extent was the decentralization of resources, functions, tasks and decisional autonomy in the system appropriate to Leader approach? (Leader fitness of programme) How much space was actually left by the project regulative framework and management system for the adoption of a "genuine" Leader approach? (Local actors’ capacities & empowerment) To what extent local agencies capacity building has been improved? Local governance (Good governance improvement) To what extent good governance principles have been adopted by LAGs? Level of decentralization Specific questions Indicators A) To what extent had the LAGs enough decision-making power concerning the elaboration of local development strategies? Rate of decisional autonomy B) To what extent had the LAGs enough decision-making power concerning the selection of projects? ““ C) What room had the LAGs for re-designing parts of the local strategy during the implementation? ““ D) To what extent tasks and functions related to the implementation of local development strategies were delegated to the LAG level? Rate of functional autonomy E) Is the LAGs control system allowing LAGs in exercising functional and decisional autonomy? Rate of perceived constraint in exercising functional and decisional autonomy .:167:. Leader fitness Specific questions Indicators F) Is there adequate space for innovation and small projects? Rate of Leader fitness G) Is there sufficient space for organizational learning? Perceived space for empowerment Local actors’ capacities & empowerment Specific questions Indicators H) To what extent capacities gathered by the LAG (and/or the local development agency) for local development were increased? I) To what extent did the LAG contribute to extensions of wider sustainable networks? 1. Job satisfaction of LAG members 2. Level of satisfaction of beneficiaries with LAG support 3. Nr of sustainable spin off in the creation of which LAG had an active role Good governance Specific questions Indicators L) To what extent were relevant actors of the socio-economic system of the LAG Area (including minorities) adequately represented in the partnership and involved in the decision making process? 1. Composition of partnership (pointing out different levels: partnership altogether, decision-making body, missing relevant actors, minorities) 2. Satisfaction with decision making of partners (including actors leaving the process) 3. Integration of LDP with other initiatives M) To what extent did strategies and their results meet the needs of target groups (including minorities)? 1. Perceptions on decision making 1.% of claims 2. Speed of answer N) To what extent potential and real beneficiaries were served by the LAG in adequate way? 3. Satisfaction of beneficiaries on the easiness of contacting the LAG 4. Satisfaction with management procedures of potential and real beneficiaries (in terms of responsiveness, fairness, clearness ecc.) 1. Satisfaction with resource management of different stakeholders (partners, MA) O) To what extent Local Development Strategies management has been accountable and transparent? 2. Level of compliance with administrative and managerial tasks 3.% of unconformities in financial management .:168:. 2.2 Summary of available knowledge The main documentation sources and references that will be used are described in the following table. Main reference collected documents N. Identification Taciscontract.pdf 1 Grant contract – external actions of the European Community – Tacis 2007 14637 Description Different documents (103 pages): - Transmission letter - Grant contract - Executive Project (with logic and economic-financial plan) Local Action Plan (28 pages) containing: - Analysis of the territory (with final SWOT) - Description of the development agency 2 RDA Complete LAP-eng.zip Local Action Plan (LAP) VAYOTS DZOR - Intervention lines (with selection procedures, implementation modalities, expected results and so no.) - Financial Plan - Attachment: 1 statute Vayots Dzor; 2 map of the territory; 3 report on the organized meetings about participative planning; 4 charts of the financed projects; 5 General guidelines for financing and management of micro – projects implemented within the framework of the project “leader: a regional network for the promotion of integrated sustainable development in the regions of Ararat and Vayots Dzor”. Local Action Plan (28 pages) containing: - Analysis of territory (with final SWOT) ICU Vedi Complete LAP.zip 3 Local Action Plan (LAP) ICU Vedi - Description of the development agency - Intervention lines (with selection procedures, implementation modalities, expected results and so no.) - Financial Plan Attachment: ICU Vedi Statute; Report dei meeting; Project Fiches; Guidelines; EU Application Form format; TimeTable. 4 ApprovedAFs (Explorer File with 5 pdf files) Application Form of the approved projects. 5 PSC Protocols (Explorer File) Records of the project surveillance committee. 6 MinutesofMeeting (Explorer File) Records of territorial meetings organized by the two agencies. 7 Training needs analysis International Resident Expert (IRE) IRE …..doc International Resident Expert (IRE) and Project Activity Progress Report at July 31, 2009 Description of the activity performed on the area from the date of the contract of IRE 14/1/08 to 31/07/09. 9 Interim Report (until 31 st of August 2009) Interim Report attached to the request of second instalment. Assogal Toscana 10 Monitoring Reports Ongoing reports prepared by the official monitor. 8 .:169:. 2.3 Methods, tools and techniques Selected methods and tools are reported in the following table. Ev. questions Tools Notes A, B, C, D, E, F, G, N1, 3, O • Evaluation of Leaderability index • Euristic analysis on project procedures and management. Annexe 1 – Template for Leaderability case study (Q1) G, H, I, L, M, N2 • Interview to LAGs partner and staff Annexe 2 – questionnaire (Q2) H, M, N3-4, • Interview to beneficiaries (Q2) I, M, O • Interview to project management Annexe 4 (Q3) The choice of method and tools has been affected by several operational conditions: - the lack of baseline situation; - the shortage of available working days and time; - the formative scope of the analysis. 2.4 Budget, agenda and work plan The work plan (main steps) and the budget (working days) are synthesised in the following table. Budget (days) Working step 1. First phase of heuristic enquiry (including field trip and documents collection) 2. Evaluation design (including tools) 4 1,5 3. Second phase of heuristic enquiry (material analysis and phone dialogs) and tools distribution 4. Collect and elaboration of data 1 0,5 5. Final report 1 Total 8 .:170:. 3 ANALYSIS OF MULTILEVEL GOVERNANCE 3.1 Leaderability assessment The “leaderability” analysis aims to assess how much space is actually left by a settled regulative framework (RF), for example in a Rural Development Program, for the adoption of a "genuine" Leader approach. The evaluation of leaderability is done through a qualitative analysis (case study) conducted in two phases using a semi-structured questionnaire as outline to focus each component: - in the first phase, the focus is on documents which form the Regulative Framework and the questionnaire is used as a checklist. - in the second phase, the acquired knowledge is verified and enriched with additional elements through interviewing involved actors. decision making autonomy makes the Lag becoming a sort of “local implementing authority” with mostly administrative and bureaucratic functions and limited strategic responsibilities; - Strategic design agency: in certain circumstances the RF recognizes to the LAG an important role in designing and implementing innovative strategies, also based on the achievement of experimental initiatives. The LAG is allowed to design ad hoc actions and to define criteria to select projects, but it does not receive specific responsibilities in the implementation phase, in the sense that the tasks of projects selection and assessment and payments claim control remain on the responsibility of the central system (for example Managing Authority and Paying Agency). As it’s shown by the following Leaderability scoring matrix and picture, the regulative framework established within the project was adequate to the transfer of a genuine Leader approach allowing the two local agencies to assume full capacity and decision-making autonomy in the design and implementation of local development strategies. The only aspects differing from the complete method, due to the context conditions, are related to the lack of cooperation and networking measures and to the uncertain rules (this is the way in which they have been perceived by the technical team of the LAGs) in terms of expense eligibility. The main tool, the checklist consists (annex 1) in a list of general evaluation questions, answered through several evaluation criteria assessed through specific analytic questions. The qualitative results of the analysis of Leaderability are converted into numerical values through a scoring methodology of the two main leaderability dimensions: decisionmaking autonomy and functional autonomy. The combination of the two dimensions allows to locate the analyzed system on one of the four sectors of a Cartesian plane corresponding to the four main models of leaderability as shown in the picture: - Leader light: in this quadrant lie the RF attributing to LAGs a very limited decisionmaking power, and assigning them few tasks in the system of multilevel governance; - Leader Leader: on the opposite quadrant are placed those contexts in which LAG assume full capacity and decision-making autonomy in the design and implementation of local development strategies; - Implementing agencies: this is an intermediate situation with strong decentralization of tasks and functions being implemented. However, the limited .:171:. Leaderability scoring matrix Decisional autonomy Phase Evaluation criteria P I Functional autonomy Score Evaluation criteria Score 1.2 Homogeneity of the Leader area 0,0 1.1 Critical mass of the Leader area 0,0 2.1 Partnership composition 0,0 2.3 Administrative and financial capacities +1,0 2.3.a Strategic capacities +0,5 3.1 Strategic design autonomy +2,0 4.1 Integration potential 0,0 4.2 Innovation potential 0,0 4.3 Cooperation potential -0,5 4.4 Networking potential -0,5 1.1 Autonomy in selecting projects +1,0 2.1 RF clarity and completeness -0,5 1.2 Flexibility in strategic decisions +0,0 2.2 Animation and technical support +0,5 2.3 Preparation and publication of calls 2.4 Projects assessment and ranking Total +1,0 2.6 Monitoring +0,5 Total Position of project RF on Leaderability Cartesian plane Tasks and functions Leader LEADER 2 1,5 1 0,5 -2 -1,5 -1 0,5 -0,5 1 1,5 -0,5 2 Decisional autonomy -1 -1,5 Strategic design agency -2 Leader light -2 -1,5 -1 -0,5 0,5 1 1,5 +1,0 2.5 Control of payment claims + 2,5 Implementing agencies +0,5 2 .:172:. + 4,0 integration of the training with the work on the ground (lack of learning by doing) rather than to the selected topics. 3.2 Weak points in multilevel governance: time and administrative circuits The weakest point of the project multilevel governance system is the “time” factor. The problems of administrative and managerial nature have created a contraction of the overall time available for project implementation. To this we have to add the considerable delays in the delivery of contributions to the local level mainly due to misunderstandings on eligible expenses and reporting arrangements. These are elements that can undermine both the trust between partners and the credibility of project management. Synthesis of training plan for VAYOTS DZOR (24 days) The tool prepared to answer most of the questions of this section (interview questionnaire for LAGs members and beneficiaries) has been answered only from the LAG team of Vayots Dzor. For this reason the answer of the following paragraph are not complete and mainly based on the information collected through the reports analysis and the dialogues that the evaluator had with several stake holders during the heuristic phase of the analysis. It’s an evidence that a lot of training has been organized to improve local agencies capacity building. It has been designed on the base of the needs of each one of the two agencies and has obtained a good response in terms of participation. In general it received a good feedback from participants, nevertheless the impression is that it has been appreciated more in Vayots Dzor than in ICU Vedi while learning needs were stronger in this last organization. Probably the main weak point of training activities (training plans are synthesized in the following tables) has been that in some case they have been perceived as useless in practice (not usable for operational work). This was probably due more to the scarce Basic training on animation and networking according to LEADER approach (2 days) 2. Preparation of the Local Action Plan contents and methods (5 days) 3. Methods and procedure to prepare, assess and select local projects (5-10 days) 4. Project Cycle Management (5 days) 5. Found raising (2 days) Synthesis of training plan for ICU VEDI (46 days) 4 ANALYSIS OF LOCAL GOVERNANCE 4.1 Improvement of local actors’ capacities and empowerment 1. 1. Basic training on LEADER approach (3 days) 2. Support for LAG start up (10-15 days) 3. Local needs analysis and animation of thematic working groups (5 days) 4. Preparation of Local Action Plan (5 days) 5. Methods and procedure to prepare, assess and select local projects (5-10 days) 6. Project Cycle Management (5 days) 7. Found raising (3 days) Another aspect concerns the contents: while much space was given to design methodologies and to the Leader approach features, it looks that the training program did not devote enough space to the administrative aspects (as for example expenses eligibility and accounting) that then resulted to be a very crucial point. It looks that the design of training activities could not take into account enough needs arising ongoing the experience of implementation (this may also be another effect of the time shortage). The courses started late and were partially run directly by the IRE (international resident expert) because of the unstable socio-political situation and the “State of Emergency” declared by the Armenian Government on February 19 2008, which have hindered the arrival of the first international experts. At the same time all interviewed members of the technical teams of the two agencies declared that they have learnt a lot both from the training and, above all, from practicing in the work experience. Both the agencies declared to feel stronger in playing their role after this experience. .:173:. In any case it was too early to detect secondary effects of the empowerment action as, for example, the rise of new wider local sustainable networks. 4.2 Improvement of good governance The evaluation of governance is politically sensitive and difficult to grasp. Reasons for this are manifold. First, the fundamental basis for governance is defined by factors such as political, institutional culture, democratic traditions, the strength of civil society or the availability of active participation and of volunteer work. These factors can (and do) vary greatly between countries, regions, and, sometimes, even between neighboring localities. Thus, governance structures, built on this colorful basis to provide a framework for policy implementation (amongst other functions), are variegated too. Still, they can reach similar results on rather different ways while implementing rural development policies. So the possibilities to improve governance on local level are not due only to the ability and capacity of the LAG to apply bottom-up development philosophy, to act as a reflexive agent, to translate between local and central level, to co-operate, to collaborate and to sustain its activities and autonomy for the long run. They are also defined by other categories of factors as: • the circumstances and the habits of the national multilevel governance system; • the local governance contest in which the project has been positioned: the institutional environment, the strength of civil society, the local culture of volunteer work, the local culture of co-operation, harmonisation of interests, making of decisions etc and the density and quality of institutions and actors in rural development, other than the LAG. The lack of both an “ex ante” starting point analysis and a adequate number of answers to the specific questions of the distributed questionnaire make it difficult to detect direct effects of the project, so the following brief analysis is mainly based on project outputs. 1. Local partnership composition The analysis of partnership composition aims to evaluate the ability to obtain that the regional institutional, social and economic reference system, in its various components is actually represented in the partnership. This implies a process of facilitation of relations between the partners to build up an atmosphere of trust. This primarily means to achieve an adequate quality of participation, that is a virtuous process of organizational learning where the partnership becomes a coalition capable of making continuous innovations to improve and add value to shared strategies. As it’s shown in the following tables, the formal composition, both at the level of whole partnership and at level of decision making body, was strongly unbalanced on public sector in Icu Vedi. At the same time it has to be underlined that while in this case the board members were the majors themselves, giving in this way a strong political and institutional recognition to the organization, in the case of Vaiots Dzor, were board members are mainly representatives of collective actors, the local identity of the organization is less clear. Composition of partnership and decision making bodies in the two LAG Composition of the organization VAYOTS DZOR ICU VEDI % of Public partners 50% 100% % of representatives of economic actors 48% 0% 2% 0% % of representatives of civil society Composition of the board VAYOTS DZOR ICU VEDI % of Public partners 20% 100% % of representatives of economic actors 40% 0% % of representatives of civil society 40% 0% Integration of LDP with other cooperation initiatives. 2. Ability to detect and meet target groups needs In this case the analysis is focused on the ability to dialogue with local actors, through a work defined by Barca (2003) “knowledge pooling”6 .. It is a capital of “local networking” 6 Cfr. Barca F., “Cooperation and Knowledge-pooling in Clusters: Designing Territorial Competitiveness Policies”, in Cooperation, Networks and Institutions in Regional Innovation Systems, D. fornahl and T. Brenner eds., Edward Elgar Publishing, 2003 .:174:. made of experience, credibility, relationships and also “sharing infrastructures.” It is a network of communication channels that facilitate the identification and the sharing of distinctive knowledge, making easier, in this way, the work of listening and interpreting needs, of detecting local potential of building shared visions and mobilizing energies towards the achievement of the identified goals. The target group and direct beneficiaries of the project are: the Local partners, RDA of Vayots Dzor and ICU Vedi Ararat; the local authorities (Marzes and the communities of the two Regions, 31 in Ararat and 44 in Vayots Dzor); the local SMEs and economic organisations involved (expected to be involved over 500 organisations, companies and other relevant stakeholders in the regions). According to the opinion of several stake holders (beneficiaries, LAGs working teams, and project management), decision making process in phase of Local Action Plan design has been characterized by a strong participatory approach. Evidences on outputs partially confirm this point of view showing a good rate of participation (taking into account the dimension of the local plan areas the number of invited people per meeting is not very high). Participatory needs detection activities Nr. of meetings Invites VAYOTS DZOR ICU VEDI 5 6 158 136 Participants (total) 98 65 Participants (average per meeting) 20 11 62% 48% Participation rate In addition to the upon mentioned official public meetings, a number of other informal meetings with representatives from both the business community, environmental organizations and cooperation NGO in the regions of Ararat and Vayots Dzor were then carried out. 3. Responsiveness to beneficiaries Good governance requires that institutions and processes try to serve all stakeholders within a reasonable timeframe. This is mainly connected to the way in which interactions with potential and (then) real beneficiaries are managed. Indeed all interviewed beneficiaries declared to be extremely satisfied by the way in which the agencies supported them. In effects the agencies structures assumed on themselves, with the support of the project management, all the bureaucratic weight of the administrative and financial circuit. So beneficiaries suffered for delays in payments but were not frustrated by the difficulty to understand bureaucratic circuits and processes. This choice has been probably determinant for the success of the project. Furthermore, in general, respecting one of the most important features of Leader approach the interaction between agencies teams and beneficiaries has been always very close. 4. Accountability and transparency In general an organization or an institution is accountable to those who will be affected by its decisions or actions. Accountability cannot be enforced without transparency and the rules of law. This is how the LAG management is accountable to the reference stake holders (local public and private actors, external partners, Managing Autority ecc.). Transparency means that decisions taken and their enforcement are done in a manner that follows rules and regulations. It also means that information is freely available and directly accessible to those who will be affected by such decisions and their enforcement. It also means that enough information is provided and that it is provided in easily understandable forms and media. This is clearly referred to the way in which decisions are we could say eligible and accessible. Taking account of starting conditions, it’s clear that in general a big effort has been made by project partners to improve the accountability of local organizations in the implementation of local action plans and, in particular, in the adoption: - of basic accounting methods; - of procedures to ensure consistency and traceability of expenses; - of appropriate modalities of public procurement. A constant focus was given, both locally (at IRE level) and on the STEs and Assogal’s .:175:. side before the Auditor in Italy, to ensure a permanent tutoring to match the Armenian habits, customary law, administrative and commercial rules with European standards (e.g. suppliers’ selection criteria, unavailability of credit for all the commercial phases, even for individual suppliers). So if from one side agencies officials felt the lack of specific training in these areas, on the other side the learning process happened in local agencies to adopt accountable behaviours can probably be considered as one of the most relevant added values of the project. 5 CONCLUSIONS 5.1 Conclusions on multilevel governance In general, evidences show that the management system of the project allowed the Local Action Groups an adequate level of decentralization and in particular: • they had enough decision-making power concerning both the elaboration of local development strategies and the selection of projects; • they had the opportunity to redesign local strategies on the base of new needs; • all the most important tasks and function related to the implementation of local development strategies has been delegated to local levels and they have been supported in performing these tasks and functions. About the last statement it appears as an evidence that the process of tutoring local agencies in performing design and implementation specific tasks resulted indeed to be one of the most effective training activities of the project. 5.2 Conclusions on local governance Project results determined the improvement of local governance and in particular they affected in a positive way all its main components: • Capacity building improved in both of the local groups. The project had a concrete empowerment effect on people involved in the two local development agencies. All the mentioned components of good governance have been tackled in training sessions and all of them have been practiced on the ground. All of them and above all the achievement of upgrade levels of institutional and administrative capacity imply skills that will help much the local agencies both in playing their role of local intermediate subject in further EU development policies delivery systems and in creating stronger and wider local networks. Nevertheless in the time in which this small evaluation has been made it was too early to detect concrete effects of this kind. • A concrete experience of local development policy has been realized through involvement relevant actors of the socio-economic system of the two regions in the partnership and in the decision making process. The way in which bottom up and partnership approach have been adopted in this experience arise some doubt on their full effectiveness, probably new experiences are needed to find the best way for a good application of these important operational principles of the Leader method in this specific institutional and societal context. • The action plans strategies have been designed to meet the target groups needs. This specific issue is also dealt in the reports of the official monitor, evidences confirm that in the design of action strategies socioeconomic information collection and analysis were combined with participative sessions aiming to assess target groups needs. While during the heuristic phase of the evaluative analysis it was possible to assess the utility of some of the investments in ICU VEDI it was too early to do the same with those of Vaiots Zor characterized by a more systemic and mid-term objective (tourism development of the region). • The approach in project management was clearly responsive toward project beneficiaries. It’s probably this very close style of interaction that saved the project in the most difficult moments (delays due to financial and administrative problems) preserving the “link of trust” among most of the actors involved. • Accountability has been performed with a strong demonstrative value. .:176:. for regular adjustment (ongoing) of needs analysis and planning of training actions; - involve IRE in the design and evaluation of training, he should assume the role of responsible of training actions; - provide since the beginning a specific action line (including training and tutoring) devoted to the adoption of eligible management methods and practices of accountability. 5.3 Recommendations Taking into account that the overall objective of the project was to transfer in the target regions the Leader approach, recommendations are reported following the 7 features of Leader: Area based, Integration, Partnership, Bottom up, Financial and administrative decentralization, Networking and cooperation, Innovation. 1. Area based approach 1.1 When the leader approach must be tested for the first time and with small budgets may be more effective to select small intervention areas (20.000/30.000 inhabitants) where, from one side is easier to reach local actors and from the other is more clear to them the identification of the area as a territorial system. 2. Integration 2.1 Considering the small budget and multisectoral approach adopted it is appropriate to try to get concrete integration with other development projects active in the same areas, particularly those managed by other international donors. 3. Partnership 3.1 Improve the involvement of local economic actors and civil society in the partnership. If, for reasons due to contextual factors is not possible to achieve a proper balance between the three main components (public administrations, economic actors and civil society) in the composition of the local partnership it is necessary to arrange tailor-made partnership systems. These have to be focused more on the organization of effective participatory decision making mechanisms rather than on formal/legal aspects of partnership composition. This can be obtained for example instituting steering committees with formalized decisional autonomy. 3.2 Training of the Local Action Groups staffs is a crucial factor, some steps can help to make it effective: - focus on training systems based on principles of learning by doing; - use flexible methods of design that allow 4. Bottom up 4.1 In the local analysis may be useful to combine public meetings with other participative methods such as face to face interviews or meetings with small groups. 5. Financial and administrative decentralization 5.1 The whole system of administrative decentralization is based on one hand on giving the responsibility to local agencies and the other hand on the adoption of methods and practices that are very distant from the local habits. Thus, it needs an organization (delivery system) designed and transferred from the beginning and accompanied step by step. 5.2 This system must take into account of special local conditions (such as the inability to obtain bank guarantees in respect of advance paid). 5.3 In the selection of local projects appropriate methods must adopted to mitigate the pressures coming from public institutions representatives (such as explicit selection criteria and use of external members in the assessment commissions) 6. Networking and cooperation 6.1 To fully exploit the empowerment opportunities offered by cooperation and participation to the Leader network it would be useful to include a small specific budget aimed at cooperation with European Lags .:177:. 7. Innovation 7.1 As in all cases where the Leader approach is tested for the first time the main innovation is the approach itself, in order to optimize the methodology transfer and to obtain organizational learning effects in both local agencies and other involved territorial actors, it is advisable to plan .:178:. since the beginning self-assessment activities. These have be managed directly by local agencies and implemented through the adoption of participatory methods that directly involve beneficiaries and other local governance reference stakeholders. Annex 1 – Template for Leaderability case studies Questions and criteria on the adoption of Leader approach in the LDS design Evaluation questions Analysis criteria 1.1 Critical mass 1) Is the definition of the territories is adequate? 1.2 Homogeneity of the Leader area 2.1 Partnership composition 2) Do the rules about partnership allow the establishment of partnership meeting the features required by the Regulations? 3) To what extent have the LAGs enough decision-making power concerning the elaboration of local development strategies? Checklist (assessment questions) a) Does the RF avoids the creation of too small territories? b) Does the RF leave room to "adjust" the composition of the territory according to specific needs detected by the local partnerships?? c) To what extent and why have Leader areas been changed respect to the previous edition? d) Are these changes likely to "disrupt" capacities and social capital accumulated in previous edition? e) Does the RF allow a suitable composition of the partnership in terms of relevant components (especially local administrations and civil society representatives such as farmers, rural women, young people and their associations)? f) Does the RF allow the adoption of rules finalized to keep the partnership “open” and to avoid power concentration? 2.2 Decisional level g) Does the RF ensure that socio economic partners hold at least 50% of the shares at decisional level? 2.3 Administrative, financial and strategic capacities h) Does the RF allow the LAG having an adequate staff (both in quantitative and qualitative terms)? i) Does the RF allow the adoption of adequate LAG management procedures? j) To what extent are LAGs enabled, in terms of resources and available time, to develop specific strategies for local development? 3.1 Strategic design autonomy k) Does the RF allow the use of typical Leader measures/ actions of open type (this means that it is possible to design intervention typologies) in order to meet territorial specific needs? l) Do Axis 4 measures and actions offer a sufficiently broad range of intervention typologies? m) Are the LAGs allowed to decide selection criteria for projects? 4) Does the RF allow the design of local development strategies fitting the Leader approach? (Leader fitness) 4.1 Integration potential n) To what extent have the Local Development Strategies the possibility to integrate projects, actors and other development policies in action? 4.2 Innovation potential o) Does the RF leave enough room to select and implement experimental initiatives? 4.3 Cooperation potential p) Are time and eligible intervention typologies usable for cooperation projects adequate? 4.4 Networking potential q) Are informal and formal networking costs of LAGs eligible? .:179:. Questions and criteria on the adoption of Leader approach in the LDS implementation phase Evaluation questions 1) To what extent have the LAGs enough decisionmaking power concerning the implementation of local development strategies? Analysis criteria Checklist (assessment questions) 1.1 Autonomy in selecting projects a) To what extent can the LAGs decide on selection criteria for projects and beneficiaries of different measures? 1.2 Flexibility in strategic decisions b) What room have the LAGs for promoting new projects or re-designing small parts of the local strategy during the implementation? 2.1 RF clarity and completeness c) Has the RF on financial circuits and control procedures been defined with good detail and on time? Decentralization degree of the following functions: 2) To what extent are LAGs actually invested with responsibility for the implementation of local development strategies? 2.2 Animation and technical support to potential beneficiaries d) Just verify that they are allowed to do it 2.3 Preparation e) Are preparation and publication of calls devolved and publication to LAGs? of calls 2.4 Projects assessment and ranking f) To what extent are LAGs involved in projects assessment and ranking? 2.5 Control of payment claims g) To what extent are LAGs involved in controlling payment claims? 2.6 Monitoring h) To what extent are LAGs involved in projects monitoring? .:180:. Aspects related to decisional autonomy Phase Evaluation criteria Min Max Scoring system 1.2 Homogeneity of the Leader area -0,5 -0,0 It subtracts points when not justified important changes have been imposed 2.1 Partnership composition -0,5 -0,0 It subtracts points when the rules are too binding 2.3.a Strategic capacities +0,0 +0,5 Gives points if clearly encouraged 3.1 Strategic design autonomy +0,0 +2,0 Assigns points according to the given room for autonomous design 4.1 Integration potential -0,5 -0,0 It subtracts points when connecting measures and typologies of operations is not allowed 4.2 Innovation potential -0,5 +0,5 It subtracts points if clearly precluded and gives points if clearly encouraged 4.3 Cooperation potential -0,5 -0,0 It subtracts points only when is strongly limited 4.4 Networking potential -0,5 -0,0 It subtract points only if it’s clearly not adequately supported P 1.1 Autonomy in selecting projects +0,0 +1,0 Assigns points according to the given room for autonomous selection 1.2 Flexibility in strategic decisions +0,0 +0,5 Assigns points on the base of the given flexibility I .:181:. Aspects related to functional autonomy Phase P I Evaluation criteria Min Max Scoring system 1.1 Critical mass of the Leader area -0,5 -0,0 It subtract points when too small 2.3 Administrative and financial capacities +0,0 +1,0 Gives points if clearly encouraged 2.1 RF clarity and completeness -0,5 -0,0 Subtract points if not present 2.2 Animation and technical support to potential beneficiaries +0,0 +0,5 Assigns points if clearly incouraged 2.3 Preparation and publication of calls 2.4 Projects assessment and ranking 2.5 Control of payment claims +0,0 +0,5 Assigns points for this +0,0 +1,0 Assigns points for this +0,0 +1,0 Assigns points for this 2.6 Monitoring +0,0 +0,5 Assigns points for this Annex 2 – Questionnaire for people involved in project implementation SELF-CATEGORISATION OF RESPONDENTS Your activity (themes) Your identity (as local actor) O Agriculture, O Forestry O Administration O Fishery O Energy O Politicians O Handicraft O Tourism O Mayor O Scientific O Culture O Nature-conservation O Institution O Church O Mobility O Education O Economy O Civil society O Social/society O Policy O SME O Farmer O Culture O Local authorities O LAG (team) O Regional (local) development O private person - Hours per month working for LAG (average) Relation with the project O Member of the project management O Member of the LAG team O Member of the LAG partnership (partner) O Member of the LAG board O Beneficiary - Age - Gender .:182:. ANALYSIS OF PROJECT IMPLEMENTATION 1 Development strategy - How do you consider the local development strategy from a qualitative point of view, in relation to the following aspects?: • Response to the specific territory needs • Possibility of participation of potentially interested people Level of Satisfaction (low high) OOOOOO OOOOOO Too Rather Adequate Rather Much too much too little - How do you consider the interests of the different categories of local actors in the framework of the approved strategy? • Families • Elderly people • Young people • Women …. And for which different sectors? • Agriculture • Tourism • Environmental protection • Craftsmanship and small enterprises • Territory administration Too little O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O more: - Which kinds of themes or categories should have been more or less considered? less: Briefly explain your opinions Work in LAG (participation, information, involved actors) Level of Satisfaction - Do you think all the local actors have been involved? (low high) OOOOOO List - What other actors should have been involved, according to you? .:183:. - How satisfied are you as renard to the following elements? • Availability of information • Management of the decision-making processes? • Taken decisions • Working atmosphere • How to face problems Level of Satisfaction (low high) OOOOOO OOOOOO OOOOOO OOOOOO OOOOOO Local projects (level of satisfaction as regard to the selected projects and to the decisionmaking processes) - What is your satisfaction with these aspects related to the collect and the selection of local projects: • Information of potential beneficiaries • Help/support in preparing applications • Selection criteria • Project analysis Level of Satisfaction (low high) OOOOOO OOOOOO OOOOOO OOOOOO - Which kind of problems did create difficulties for the implementation of local projects • Administrative ones • Financial ones • bureaucratic • lack of information Difficulty (low high) OOOOOO OOOOOO OOOOOO OOOOOO - Please give some comment to the answers LAG Management - What is your satisfaction with these aspects: • • • • Accessibility technical support (for projects) networking public relation Level of Satisfaction (low high) OOOOOO OOOOOO OOOOOO OOOOOO - Please give some comment to the answers .:184:. Estimations about the impacts of LEADER - What is your appreciation of these effects: • Improving of understanding views from other groups • Better conflict solving • Improvement of cooperation between different groups • Cooperation beyond administrative borders • Recognition in public - What is your appreciation about changes from start to now in the relationships to different groups: • Administrations • Business • Civil society • Politicians Level (low-high): OOOOOO OOOOOO OOOOOO OOOOOO OOOOOO Start period OOOOOO OOOOOO OOOOOO OOOOOO Now OOOOOO OOOOOO OOOOOO OOOOOO - Please give some comment to the answers Summary (overall satisfaction, advantages/disadvantages of LEADER-approach) - General impressions: • general satisfaction with LEADER-process • feeling of connection to your region • readiness for further engagement Level (low-high): OOOOOO OOOOOO OOOOOO Advantages: - What are the advantages/disadvantages of the LEADER-approach (in comparison to other Disadvantages: support schemes)? - What are your proposals for changes in the features of a next project based on LEADER approach? Explain The monitoring and evaluation report has been elaborated by Mr. Carlo Ricci .:185:. MONITORING AND EVALUATION: THE LEADERABILITY ASSESSMENT Yeghegnadzor – Meeting with local authorities to present local micro project results Vedi – Meeting with ICU Vedi local staff .:187:. MONITORING AND EVALUATION: THE LEADERABILITY ASSESSMENT Yerevan – Meeting at ECD Delegation with RDA Vayots Dzor Yerevan - Meeting at ECD Delegation with RDA Vayots Dzor .:188:. MONITORING AND EVALUATION: THE LEADERABILITY ASSESSMENT Yeghegnadzor - RDA local staff and Assogal delegation in front of the “Tourism Developmenent and Training Centre” Yegegnadzor – RDA local staff and Assogal delegation in front of the “Tourism Developmenent and Training Centre” .:189:. MONITORING AND EVALUATION: THE LEADERABILITY ASSESSMENT Yerevan – Meeting at Italian Embassy with H.E. The Ambassador Mr. Bruno Scapini and his staff .:190:. Conclusions Special consideration should be given to the fact that the REDAM II Project lasted over a relatively short time: 24 months with an extension of a further 4 months. In this very short time, the results achieved are amazing and they show a great economic and social value. It is essential to consider that the Project realised two (2) building structures: one of them is a pretty big building in the old town centre of Yeghegnadzor, the regional capital of Vayots Dzor and the other one it is located in the Ararat region. Furthermore, it is also important to underline that for each project machinery and equipment have been purchased in accordance with the rules of transparency dictated by the European Union. These machinery and equipment were necessary to complete projects of particular significance in the target areas. The implementation of European rules and procedures required a significant effort both from the organizational and cultural point of view. It is essential to stress that it is difficult to transfer methodologies and rules especially when activities are carried out in marginal areas presenting rural economy, and where it is more difficult to implement services for the community. Moreover, these services should be financially supported by the Public Administration system. There are two main considerations arising from this Project: The first consideration is about the need for more time so as to acquire appropriate tools and approach methodologies for the economic processes self-determination, especially in small and medium scale. It is evident the need for more times related to the importance of the local projects development. The second consideration is that at the regional level it lacks a strategic territorial planning system particularly at the central government level. The knowledge and relationships heritage gained laid a solid basis to build a system of good cooperation, so as a prelude to further planning. .:191:. Contacts Project Leader Armenian LAGs ASSOGAL TOSCANA ASSOGAL Toscana - Associazione dei GAL Toscani Tuscany LAGs Association Main Office: Via Grossetana, 43/p 58036 Sticciano Scalo (GR) tel 0039 0564 405252 fax 0039 0564 405460 www.assogaltoscana.it [email protected] [email protected] Assogal Toscana members: Gal Consorzio Appennino Aretino s.c.r.l. Viale Dante 74/Q 52010 Capolona (AR) Tel e Fax +39 0575 48267 www.galaretino.it - [email protected] Gal Etruria s.c.r.l. Via XXV Aprile 7, Loc. La Pila 57034 Campo nell’Elba (LI) Tel e Fax +39 0565 979114 www.galetruria.it - [email protected] Gal Siena s.c.r.l. Via F. Hamman 98 53021 Abbadia S. Salvatore (SI) Tel +39 0577 775067 Fax +39 0577 773971 www.leadersiena.it - [email protected] Gal Garfagnana Ambiente e Sviluppo s.c.r.l. Via Vittorio Emanuele 9 55032 Castelnuovo di Garfagnana (LU) Tel +39 0583 644449 Fax +39 0583 644474 www.galgarfagnana.com - [email protected] Gal Start s.r.l. Via A. Moro 2 50032 Borgo San Lorenzo (FI) Tel +39 055 8496100 Fax +39 055 8496753 www.gal-start.it - [email protected] Gal Sviluppo Lunigiana s.coop.r.l. Via Baracchini 80 54028 Villafranca in Lunigiana (MS) Tel +39 0187 494675 Fax +39 0187 495227 www.gal-lunigiana.it - [email protected] Gal F.A.R. Maremma S.c.a.r.l. Via Grossetana, 43/p 58036 Sticciano Scalo (GR) tel +39 0564 405252 - fax +39 0564 405460 www.farmaremma.it - [email protected] LAG Regional Development Agency Vayots Dzor Shahumyan 11 Yeghegnadzor - Vayots Dzor Region Republic of Armenia Tel. 00374 281 24007 Fax 00374 281 24011 [email protected] LAG Vedi Inter Community Union Tumanyan 5 Vedi - Ararat Region - Republic of Armenia Tel. 00374 234 21960 Fax 00374 234 23332 [email protected]