Embed Size (px)
Citation preview
UNITED NATIONS DEVELOPMENT PROGRAMME
COUNTRY: UZBEKISTAN
PROJECT DOCUMENT
Project Title: Business Forum of Uzbekistan (Phase III)
UNDAF Outcome 1: 1.2. Employment opportunities and economic security for vulnerable groups increased
Expected CP Outcome 1: Output 1.2.1. Inclusive microfinance, business advisory and support services
facilitated, as well as investment attraction capacities increased.
Implementing Partner: Chamber of Commerce and Industry of Uzbekistan (CCI)
Responsible Parties: UNDP, Ministry of Economy, Ministry of Justice, State Committee for De-
monopolization and Competition Support, State Committee for ICT
Brief Description
The overall goal of the project is to support the Government’s efforts in creating an enabling business
environment through strengthening public-private dialogue, introduction of streamlined procedures to ease
doing business, and promoting inclusive business projects. The project will partner with the Chamber of
Commerce and Industry of Uzbekistan and government authorities for business environment assessment
and monitoring through introduction of internationally adopted analytical tools and methodologies,
analysis of selected regulatory rules and procedures for entrepreneurship activities, development of
proposals for improvement of business regulations and contribution to the overall quality of business
environment by promoting participatory approach with involvement of private sector representatives in
policy development processes.
Programme
Period Country Programme 2010-2015
2014 AWP budget $ 72,000
Total resources required: $ 1,286,000
Total resources allocated: $ 664,200
UNDP (subject to availability of funding
for the program period of 2016-17) $ 500,000
CCI (150 million UZS at current exchange
rate) $ 64,200
Sasol Synfuels International PTY (joint cooperation in Activity 3)
$ 100,000
Unfunded part $ 621,800
In-kind contributions:
CCI office premises,
telephone lines
Key Result Area
(Strategic Plan):
7. Development debates and actions at
all levels prioritize poverty, inequality
and exclusion, consistent with our
engagement principles
Atlas Project ID 00081932
Atlas Output ID 00091041
Start date August, 2014
End Date December, 2017
PAC Meeting Date August 5, 2014
Management Arrangements NIM
2
TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................................................................. 1
ACRONYMS .................................................................................................................................................................... 3
I. SITUATION ANALYSIS ..................................................................................................................................... 4
II. IMPLEMENTATION STRATEGY .................................................................................................................... 7
PARTNERSHIP STRATEGY ............................................................................................................................. 8
III. RESULTS AND RESOURCES FRAMEWORK ............................................................................................... 8
IV. MANAGEMENT ARRANGEMENTS ............................................................................................................. 16
V. MONITORING FRAMEWORK AND EVALUATION ................................................................................. 17
VI. QUALITY MANAGEMENT FOR PROJECT ACTIVITY RESULTS ........................................................ 18
VII. ANNEXES ........................................................................................................................................................... 20
ANNEX I. RISKS LOG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 ANNEX II. PROJECT MANAGEMENT ROLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 ANNEX III. TERMS OF REFERENCE FOR THE PROJECT STAFF………………… .………… 26
3
ACRONYMS
ADB Asian Development Bank
AWP Annual Work Plan
CCI Chamber of Commerce and Industry of Uzbekistan
CDR Combined Delivery Report
CO Country Office
CPAP UNDP Country Programme Action Plan
EGU UNDP Economic Governance Unit
EU European Union
IICPSD Istanbul International Center for Private Sector in Development
ILO International Labor Organization
IFC International Finance Corporation
LPAC Local Project Appraisal Committee
NIM National Implementation Modality
NPC National Project Coordinator
OSS One-Stop-Shop
PAC Project Appraisal Committee
PM Project Manager
PR Public Relations
QPR Quarterly Progress Reports
RMU UNDP Resource Mobilization Unit
SBAA Standard Basic Assistance Agreement
TA Technical Assistance
TOR Terms of Reference
UN United Nations
UNDAF United Nations Development Assistance Framework
UNDP United Nations Development Programme
UPL Universal Price List
USAID United States Agency for International Development
WB World Bank
4
I. SITUATION ANALYSIS
INTRODUCTION
Private sector contributes to economic growth, creates jobs and provides income for most of the population.
The share of small businesses and private entrepreneurship in GDP has steadily grown from 31% (2000) to
55.8% (2013), while its share in employment increased from 49.7% (2000) to 76% (2013).1 President of the
Republic of Uzbekistan Islam Karimov noted: “Today we are seeing that the small business and private
entrepreneurship have a key role in the development of the country, especially in creation of decent living
standards for our people”.2 According to the state annual employment programs close to 50% of all jobs
need to be created in the sector, and an additional 22% of home-based employment also in created
cooperation with the private sector.
In order to improve the business environment the Government has taken a number of steps aimed at
reduction of bureaucratic barriers and cost of doing business.3 Since its introduction in 2005 the unified tax
rate for small businesses has been reduced successively from 13% of turnover to 6% (5% for manufacturing
firms). The threshold to qualify as a small business was also increased from 50-100 to 200 employees for
labor-intensive sectors which will enable businesses to maintain simplified tax regime and at the same time
to expand and hire more workers. In the period of 2011 – 2014 large number of permits (161 or 44% of all
permits) and licenses (19 or 25% of all licenses) regulating various aspects of entrepreneurship activities
have been abolished. In addition to that procedures related to more than 40 types of permits and licenses
have been simplified.
The Government is also encouraging youth
graduating colleges to start their own
businesses by providing concessionary
loans, as well as increasing lending to
existing companies to create more jobs.
As the female labor participation rate in
Uzbekistan at 47.9% is much lower than
CIS average of close to 54% (also much
lower than male participation rate at
61.4%, which translates into 13.5% gap
between genders which is among the
highest in CIS)4 the Government started
promoting female employment by providing incentives for family based businesses, handicrafts sector,
supporting home-based employment and providing subsidized loans to female entrepreneurs.
There is however evidence that these have not been enough to absorb rapidly growing labor force.5 New
business density rate6 though increased since 2004, still remains below the level in other CIS countries (see
Figure 1). This is further supported by the data from the State Statistics Committee of Uzbekistan, according
to which around 26,000 new SMEs were registered in 2013, while over 20,000 existing businesses closed
activities. This “net rate” shows only 2.8% increase in the numbers of small businesses,7 while some regions
reported even negative “net rate” (for example, Bukhara and Khorezm in 2013).
This is clearly linked to challenging business environment in the country. Businesses cite difficulties related
to cumbersome regulations, interference into their activities by authorities and poor infrastructure services as
1 The State Statistics Committee data (http://www.stat.uz/uz/economy/)
2 President’s speech “Our way is to deepen democratic reforms and continuous modernization of the country” made at
the 19th anniversary of the Constitution of the Republic of Uzbekistan on December 12, 2011 3 Decree of the President of the Republic of Uzbekistan # UP-4609 dated April 15, 2014
4 Based on the WB data (http://data.worldbank.org/indicator/SL.TLF.CACT.ZS)
5 Average annual growth of population in the last 10 years was equal to 1,8% in Uzbekistan compared to 1,3% in
Kazakhstan and negative growth of 1,2% in Russia. Annually about 500,000 young people graduate from professional
vocational colleges in Uzbekistan. Youth (16-29 years old) constitute over 1/3 of the total labor force. 6 Available at http://data.worldbank.org/indicator/IC.BUS.NDNS.ZS
7 Goskomstat “Main indicators of small business development in Uzbekistan” reports for 2012-2013.
5
the main obstacles to their survival and development, the facts well-noted by the President: “current
business environment does not fully comply with the requirements and principles of the free market
economy, international norms. Our entrepreneurs have to cope with unstable electricity supply,
underdeveloped production and road infrastructure in rural areas, and large number of inspections, poor
implementation of laws and regulations in the regions”.8
Challenges related to business regulations are also well captured in the World Bank’s Ease of Doing
Business Report 2014, a common measure of business environment quality in 189 economies across the
world. According to 2014 report Uzbekistan is ranked 146th up from 154
th in 2013. Due to abolishing the
minimum capital requirement for businesses and streamlining the procedure9 the country ranked 21
st in the
‘Starting a business' category (noted in the President’s speech as the Government’s consistent effort).10
However, in overall ranking Uzbekistan is still the lowest in the region of Eastern Europe and Central Asia,
and the lowest in the world in the ‘trading across borders’ category.
Compliance with the existing rules and regulations in many cases poses excessive regulatory burden for
entrepreneurs in terms of time, human and financial resources spent. There is a huge gap in the number of
procedures, time required to go through them and associated costs in Uzbekistan compared to the best
practices possible. Figure 2 illustrates a number of formalities a
typical company would have to go through in Uzbekistan in one
year and time required for that. A company in Singapore for
example in a similar cycle would have to go through 34
formalities and spend 91 days, which are 85 steps and 546 days
less than in Uzbekistan.11
There are notable examples of best
practices in business regulations in CIS as well.
In this regard, the Government of Uzbekistan also set course on
significantly improving business climate in the country and
reducing regulatory burden on them. The President’s Decree
#4455 of July 18, 2012 stipulated further reduction in
bureaucratic procedures, transition from paper-based to
electronic systems in submission of reports, paying taxes,
registration and permission procedures, provision of land and
connecting to infrastructure services. In particular, the Decree
ordered transforming the property registration to a ‘single
procedure’ to be done in 7 days, and introducing single
windows in other areas. These largely were not achieved, as it
required from state agencies instituting an interagency data
exchange, necessitated changes in many other laws and
regulations, and additional resources for new systems and staff
training.
The state agencies also need to go through an institutional adjustment with significant restructuring of
internal operations with continuing their essential functions. In this regard, a driving motivation in this
process should not be a move towards ‘no regulation’, but a move towards ‘smart regulations’ that ensure
private sector complies with rules and regulations which guard society’s interests with as little burden on
businesses as possible. So it is very important to undertake these changes in an inclusive and participatory
manner to ensure that the society in general gets better and balanced outcome.
The Chamber of Commerce and Industry of Uzbekistan (CCI)12
is the non-governmental, non-commercial
organization created by the Law of Uzbekistan adopted on December 3, 2014. The Law grants CCI a right to
8 President’s speech at the Cabinet of Ministers meeting devoted to the results of socio-economic development of the
country in 2013, and priorities for 2014 held on January 18, 2014 9 President’s Decree #4455 dated July 18, 2012
10 President’s speech at the Cabinet of Ministers meeting devoted to the results of socio-economic development of the
country in 2013, and priorities for 2014 held on January 18, 2014 11
Based on WB/IFC Doing Business report for 2014 (http://www.doingbusiness.org/) 12
CCI is the largest business support institution with 24,000 members representing all sectors of the economy, has
offices in all regions and almost in all districts of the country. Membership in the organization is voluntary.
6
suggest measures to create an enabling environment for business development and changes to legislation
aimed at improving the legal and economic conditions of doing business in the country, to participate in
discussions of laws and regulations related to entrepreneurship. This was further operationalized by the
Ministry of Justice order that all pieces of new legislation related to entrepreneurship need to be vetted by
CCI as part of their review process.
CCI has been facilitating an active public-private dialogue and generating constructive proposals for the
Government to improve business environment. In the period of 2013 and the first half of 2014 more than
200 laws and regulations have been reviewed. These included 34 laws, 12 resolutions of the President, over
80 resolutions of the Cabinet of Ministers. CCI introduced substantive inputs to laws on protection of private
property and guarantees of rights of property holders, on licensing procedures in the field of
entrepreneurship, and on family business. Some of the results mentioned above have been in fact suggested
and supported by CCI as part of the review of corresponding laws and regulations before they were adopted.
CCI also facilitates dialogue of entrepreneurs with local authorities in all districts of the country mandated
by the Government for local authorities in the form of weekly meetings. In 2013, over 75 thousand
entrepreneurs attended such meetings and submitted close to 15 thousand individual requests (related to
registration, start-up and permissions, connecting to infrastructure, complaints about power cuts, allocation
of land, obtaining bank loans and issues with reporting). Close to 92% have been resolved by local
authorities (the rest pending review or found not in line with regulations).
The Government continues to view CCI as a key partner in improving the business environment in the
country. The President’s Decree #4609 of April 7, 2014 highlights the role of CCI as representing the
interests of businesses and requests the Chamber to partner with state agencies to provide proposals on
further reduction in the number, costs and procedures related to licenses and permits, on introduction of e-
governance mechanisms, ensuring transparency of governance and measuring impact of regulations on
businesses.
PREVIOUS ASSISTANCE
Close partnership between UNDP and CCI has been continuing since 2005. Within the joint projects first
public-private dialogue platform has been established in the form of business forums on general and sector-
specific issues, thematic expert meetings were established to solicit from private sector, business
consultants, and experts feedback and ideas on improving business environment in the country. The project
also provided extensive capacity building to CCI, published the first analytical study on Public-Private
Partnerships and supported the project in the waste management sector of the country.
The project also helped CCI to develop arbitration system as a faster and less bureaucratic alternative to state
courts. In recognition of the expertise nested with the project and its role in bringing together knowledge the
Government requested to draft and discuss the Law on International Commercial Arbitration. The draft law
has been submitted to the Government and is being reviewed.
The project also launched the inclusive, sustainable business models which are now attracting large
companies to partner with CCI as part of the corporate social responsibility strategy.
Business Forum project also helped CCI to establish an Analytical unit which significantly improved
process of review and feedback on laws and regulations. This now gives an opportunity to better represent
interests of businesses in the government’s decision making processes. For example, just due to the
suggestion to simplify registration process CCI estimates that businesses will be saving around 2.5 billion
soums annually. The Analytical unit played key role in reviewing and suggesting improvements in laws and
regulations.
7
II. IMPLEMENTATION STRATEGY
The Project will contribute to meeting the objectives as set out in the United Nations Development
Assistance Framework for Uzbekistan 2010-2015, and will be implemented within the UNDP Country
Programme Action Plan for 2010-2015. Generation of decent employment through creation of enabling
environment for business development has been identified as a key priority area in the Common Country
Assessment conducted in 2014 (as a preparation to UNDAF 2016-2020). The project will also contribute to
the outcome area 7 of the UNDP Strategic Plan for 2014-17. The project will also support the main
objectives set forth in the Presidential Decree #4609 (adopted on April 7, 2014) on further improvement of
the business environment and easing regulatory burden on businesses. The project will work closely with
partners to attract the best international expertise to develop proposals for the improvement of the business
environment in the country, introduction of the best cases of relevant international business practices and
pieces of legislation aimed at improving the legal and economic conditions of doing business.
The overall goal of the project is to support the Government’s efforts in creating an enabling business
environment through strengthening public-private dialogue, introduction of streamlined procedures to ease
doing business, and promoting inclusive business projects.
In order to achieve the stated goal the project will work through three interrelated streams of activities:
The project will develop and solicit recommendations from partners on improvement of country’s
business environment, bring in the best international expertise, organize discussions with stakeholders
and submit them as consolidated proposals to the Government. In this area:
The project will help to strengthen multi-stakeholder dialogue to promote public-private
partnership mechanisms that provide innovative solutions for development, ensure participation of
private sector representatives in co-defining and co-monitoring of improvements in the business
environment, and propose ideas for further reforms;
In four areas (obtaining construction permits, connecting to electricity grid, registering property,
and business registration) identified as critical for CCI to lead, the project will develop new
solutions and action plans for their implementation in close coordination with the agencies
concerned;
In the category of connecting to electricity grid the project will also analyze and develop proposals
on addressing frequent power cuts cited by businesses as one of the most critical challenges;
In other areas (trading across borders, protecting investors, getting credit, resolving insolvency,
enforcing contracts and paying taxes) where relevant government agencies are leading the process
the project will support CCI and other key national partners to facilitate dialogue, bring-in best
international and in-house experiences to accelerate reforms;
The project will also support institutionalization of the Expert councils for broader policy
discussions which were established with CCI in the first phase of the project:
In this activity the project will ensure that the private sector representatives, expert community
have are well-informed about the proposed changes from the government side and provide their
feedback to them.
The second area will focus on implementation of the simplified and streamlined procedures as an
online public interactive service as part of the e-governance mechanism in the country. In this area:
The project will develop the blueprint for online business registration and an action plan for line
ministries for its implementation;
This will be the first interactive service in the “virtual cabinet of entrepreneur” (part of the
government e-services portal) and serve as a model for other services (already envisioned ones
include submission by business entities financial, tax, statistical and other reports, paying taxes, fees
for public services and other dues, obtaining certificates, permits and licenses);
The project will provide methodological support to involved government agencies in development
of databases necessary for the automated system, including public registrars on citizens and legal
entities, conducting business process reengineering and simplification of procedures;
8
The project will also develop training materials on new online registration system for relevant state
authorities for them to conduct trainings (to equip key staff with knowledge and materials so that
they could follow-on with more trainings in the regions).
In the third area the project will support scaling up by national partners of inclusive business models13
to create jobs in rural areas and to test if business environment in regions areas is indeed improving
and benefitting the poor:
The project will identify and support inclusive business projects in cooperation with private sector
partners. The focus will be on finding businesses in rural communities which are headed by women,
or employ mostly women and youth (the target group) to improve their productive capacities and
expand employment/income opportunities for the target group;
The project will take stock of results in supporting inclusive business models to identify an
institutional approaches for national partners to expand, replicate and sustain this experience beyond
piloting and testing done with the help of the project;
The project with the help of CCI will organize test run of on-line registration system in the regions
with participation of private sector to assess the intended value the new system brings (easy, open,
transparent, less susceptible to corruption etc.) and possible undesirable consequences (information
security, need to invest time and resources to learn online tools etc.) to refine the system and use this
knowledge in developing other services;
This component will seek and rely on external funding from the private sector and donors to
replicate initial pilots and expand the experience to all regions of the country.
PARTNERSHIP STRATEGY
Implementation of the project would be effective if close partnerships with other international organizations
and national partners ensured. Therefore, cultivating strong relationships with potential partner organizations
and mobilization of their resources and technical support is important for effective implementation of the
activities envisioned under the project.
WB/IFC
The World Bank and IFC have extensive experience in business environment reforms, assessing investment
climate and business environment in developing countries. The Doing Business Project provides objective
measures of business regulations and their enforcement across 189 economies and selected cities at the
subnational and regional level. By gathering and analyzing comprehensive quantitative data to compare
business regulation environments across economies and over time, Doing Business encourages countries to
compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a
resource for academics, journalists, private sector researchers and others interested in the business climate of
each country.
The IFC expressed interest to assist the Government in the field of business environment reforms monitoring
and assessment. In 2013 with the request of CCI and UNDP, IFC provided expert assistance to BFU project
in the area of business permits and licenses reforms including a field visit by the expert. IFC experts also
being regularly involved in discussions related to business environment reforms as well as the Doing
business report findings. Cooperation with World Bank/IFC will be continued in this phase of the project.
13
Growing Inclusive Markets is a UNDP-led global multi-stakeholder initiative that seeks to enable the development
of more inclusive business models to create new opportunities and better lives for poor. The approach seeks to
demonstrate how business can significantly contribute to human development by including the poor in the value chain
as consumers, producers, business owners or employees (‘inclusive business models’).
http://www.undp.org/content/undp/en/home/ourwork/partners/private_sector/GIM/
9
EU MTP
EU has launched the new “Management Training Programme (MTP) Capacity Building for SME
Management in Uzbekistan” in 2013. CCI is a primary partner of EU MTP project. The project will operate
until August, 2016 and aims to strengthen human capital across Uzbek managerial community placing
particular emphasis on small enterprises with a view to improving the performance of the SME sector in
Uzbekistan.
The specific objective of the Project is to increase the stock of qualified and competent entrepreneurs and
managers (human capital) able to effectively start up and manage local SMEs and ensure their sustainable
development in a long term perspective. Within the project Uzbek managers during the training and
internships in EU companies will be able to exchange experience with their EU colleagues, learn about
modern management methods, and get acquainted with European business culture. Uzbeks companies will
have the chance to build up a network with new EU business partners and increase their competitiveness and
business performance. EU companies will have the opportunity to establish new business partnerships with
Uzbek businesses. Business Forum project will closely coordinate its activities with EU MTP related to
trainings of small businesses.
USAID
USAID’s Regional Economic Cooperation Project (REC) helps Central Asian firms trade by facilitating
partnerships, training, and promoting an improved environment for trade. REC facilitates trade among
Central Asian countries, Afghanistan, as well as with large trading partners such as China and Russia.
USAID expressed interest for joint efforts including research (analysis) and formulation of comprehensive
steps (recommendations) to improve the rating of Uzbekistan, particularly in the category of Trading Cross
Borders, including review of best experience, assigning of international experts, etc.
In the second phase of the Business Forum project USAID invited an international consultant on trade and
joint workshop was organized at CCI with participation of relevant government agencies to discuss trade
related procedures and proposals were developed and submitted to the Government.
ILO
The Memorandum of Understanding between the ILO, the Government of Uzbekistan and its social partners
(CCI, Federation of Trade Unions) was signed on April 25, 2014. The Decent Work Country Programme of
the Republic of Uzbekistan for 2014-2016 (DWCP) was approved. Priorities of the DWCP are:
strengthening social partnership in Uzbekistan for the realization of fundamental principles of right at work,
fostering decent employment opportunities; improving working conditions and social protection.
Moreover the CCI jointly with the ILO are planning to launch within 2014-2016 the educational
programmes on training the business consultants and young entrepreneurs by implementation of «Start and
Improve Your Business» and «Know about Business» programmes. Business Forum project will link
activities in promoting enabling environment for businesses to broader social partnership in creating decent
employment.
IICPSD
The Istanbul International Center for Private Sector in Development (IICPSD) is the UNDP global center of
excellence specializing in inclusive market growth and private sector-led poverty reduction and sustainable
human development. Its goals include changing markets to ensure development integrates people and create
a positive environmental footprint. In doing so, the IICPSD provides high-advisory services to public and
private partners, knowledge management and South-South and Trilateral Cooperation, training and capacity
10
development programmes, all research- anchored to link profits with social value and expand impact of
growth on living standards.
IICPSD expert Mr. Dikmener conducted a joint exercise in Uzbekistan in October, 2013 to review private
sector development in the country, to share the best international experiences in PSD and identify areas for
cooperation. IICPSD has expressed readiness in assisting UNDP and the Government of Uzbekistan in
implementing further interventions in the area of poverty reduction and inclusive business models through
technical assistance, providing international expertise and organizing trainings.
SASOL SYNFUELS International PTY
Sasol is an international integrated energy and chemical company with HQ based in South Africa. Sasol is a
UN Global Compact CSR member. The company is operating in Uzbekistan through its JV with
Uzbekneftegaz to produce liquid fuel from natural gas.
There has been very successful partnership between CCI, Sasol and UNDP within the framework of
Business Forum project to replicate inclusive business projects, namely milk collection center and waste
management in Yangiyul, and women’s crafts enterprise in Urgench. Taking into consideration successful
partnership in implementing inclusive business projects within the framework of BFU-phase II project, an
application in the amount of USD 100,000 will be submitted to Sasol for additional financing to support
inclusive business models.
OTHER UNDP UZBEKISTAN PROJECTS AND POTENTIAL PARTNERS
A number of existing/on-going UNDP projects provide their support to the Government in the areas related
to economic reforms, supporting trade linkages etc. The list of such projects includes (but is not limited to):
“SMART” project (e.g. covers activities on policy advice in economic reforms and economic
development in Uzbekistan);
“Aid for Trade” Phase III project (e.g. covers activities on supporting business linkages and projects
with high export potential in the regions);
“Local Governance Support: Participation and Partnership” project (e.g. covers activities on public
administration reform issues, e-document management, pilots on establishment of One-Stop-Shop
centers in two regions and others). Under the recent partnership with UNICON.UZ, the project
successfully provided significant contribution on upgrading the e-Hujjat EDMS (taking into account
feedbacks from both users and state agencies), whose platform serves as a national technical platform
for information systems of state agencies;
“e-Government promotion for improved public service delivery” project to be launched in cooperation
with the State Committee for Communication, Informatization and Telecommunication technologies.
The project is called to provide assistance in enhancing government online service delivery, improving
e-Government interoperability and applying effective business process reengineering mechanisms, and
enhancing e-Government institutional development.
11
III. RESULTS AND RESOURCES FRAMEWORK
Expected UNDAF outcome #1.2.: Employment opportunities and economic security for vulnerable groups increased
UNDAF Agency Outcome: 1.2.1. Entrepreneurs, farmers and the poor have improved income and job opportunities through microfinance,
business advisory and support services for SME development and investment promotion
Outcome indicators as stated in the
Country Programme Results and
Resources Framework, including
baseline and targets:
Number of poor communities who benefit from increased employment opportunities, as well as from improved
access to microfinance, business advisory facilities and basic social services.
Indicator: 1.2. ; Baseline: 200; Target: 500
CPAP Output: Output 1.2.1. Inclusive microfinance, business advisory and support services facilitated, as well as investment
attraction capacities increased.
Applicable Key Result Area (from 2014-
17 Strategic Plan): 7.6.1.A. Number of new public-private partnership mechanisms that provide innovative solutions for development
Partnership Strategy:
Implementing partner: Chamber of Commerce and Industry of Uzbekistan (CCI)
Responsible partners: UNDP, Ministry of Economy, Ministry of Justice, State Committee for De-monopolization
and Competition Support, State Committee for ICT
Other partners: Cabinet of Ministers, Ministry of Finance, Ministry for Foreign Economic Relations, Investments
and Trade, State Tax Committee, State Customs Committee, Central Bank, State Committee on Land Resources,
Geodesy, Cartography and State Cadastre, State Committee of the Republic of Uzbekistan for Architecture and
Construction, UzStandart State Agency, Uzbekenergo State Joint Stock Company
Project title, Project ID (Output ID): Business Forum of Uzbekistan (Phase III) Project ID: 00081932 Output ID: 00091041
INTENDED OUTPUT OUTPUT TARGETS INDICATIVE ACTIVITIES RESPONSIBLE
PARTIES INPUTS
OUTPUT 1. Public-private policy
dialogue strengthened to improve
business climate, to introduce
streamlined procedures to ease
doing business, and to promote
inclusive markets development in
the country.
Baseline 1. Lack of
comprehensive, innovative
2014
1.1. A new approach to public
service delivery for private sector
related to registration of
property co-developed with
stakeholders and submitted to the
Government.
2015
1.2. New public service delivery
mechanism is supported for
Activity Result 1. Recommendations on improvement
of country’s business environment that are in-line with
best practices developed, discussed with stakeholders
and submitted to the Government.
an analytical report on procedures related to
registering property with recommendations to
significantly improve public service delivery
developed, discussed with stakeholders and
submitted to the Government.
draft Government resolution on reorganization of
UNDP, CCI, IFC,
WB, Ministry of
Economy,
CCITT, State
Committee on
Competition,
Ministry of
Justice, Central
Bank, Ministry of
Finance, Sasol
Contractual Services
Staff
Consultants
Travel
Publications
12
solutions related to business
procedures which are impeding
business development.
Indicator:
Number of new public service
delivery mechanisms/approaches
developed and institutionalized.
Baseline 2. Insufficient
engagement of stakeholders in
business related policy formulation
processes.
Indicator:
Number of reform proposals that
provide innovative solutions for
development co-developed with
stakeholders and submitted to the
Government.
extension at least into 3 new areas
(obtaining construction permits,
connecting to electricity, and
obtaining licenses and permits),
their introduction monitored and
feedback mechanism provided.
2.1. At least 2 new
approaches/reform proposals on
further improvement of the
business environment in the
country co-developed with
stakeholders and submitted to the
Government.
2016
1.3. Reform proposals to address
electricity supply issues
developed and submitted to the
Government.
2.2. Mechanism of online public
review of legislation supported
and discussion of at least 3 pieces
of legislation is facilitated and
results submitted to the
Government to transfer ownership
over this mechanism to line
ministries.
2.3. At least 2 new
approaches/reform proposals on
further improvement of the
business environment in the
country co-developed with
stakeholders and submitted to the
Government.
2017
2.4. Roadmap for further
improvement of investment and
business climate is prepared,
discussed with stakeholders and
submitted to the Government.
the whole process related to registration of
property prepared and discussed with stakeholders.
an inventory of legal documents related to
registration of property taking into account: 1)
interagency coordination and information exchange;
2) internal business processes; 3)
information/documents requested from businesses;
4) rules governing time and costs association with
procedure; 5) rules on final decision
(granting/rejecting).
analytical reports on procedures related to obtaining
construction permits, connecting to electricity,
and obtaining licenses and permits with
recommendations developed, discussed with
stakeholders and submitted to the Government.
an inventory of legal documents related to
construction permits, connecting to electricity,
and obtaining licenses and permits.
draft Government resolution on reorganization of
the whole process related to issuing of construction
permits, connecting to electricity, and obtaining
licenses and permits prepared, discussed with
stakeholders, and submitted to the Government.
proposals of private sector and experts on trading
across borders, protecting investors, getting credit,
resolving insolvency, enforcing contracts, paying
taxes and other issues consolidated and submitted to
line ministries to aid them in business process
reengineering and to the Government as part of
inputs to policy formulation.
the project will whenever possible collect gender-
disaggregated data.
the project will work on building partnerships and
mobilizing resources for implementation of the
activities and delivery of results.
Synfuels
2014 - $ 19,000
2015 - $ 112,000
2016 - $ 82,000
2017 - $ 68,000
Total for
Activity 1 - $ 281,000
13
Baseline. There is no on-line
interactive service for businesses
which integrates multiple agencies,
and the Government views
business registration as a first pilot
in this area.
Indicator:
“Virtual cabinet of entrepreneur”
created to integrate new business
registration procedure as the first
online interactive service, followed
by other public services for
businesses.
2014
1. Draft Government resolution
with an action plan on further
improvement of business
registration service developed,
vetted with relevant agencies and
submitted to the Government.
2015
2. An action plan on streamlining
of business registration system is
implemented in cooperation with
relevant agencies, including but
not limited to:
- creation of relevant databases;
- guidelines for users and
instructional sets for the staff;
- training modules for the staff;
- a limited number of joint
trainings conducted;
- materials for awareness raising
events.
2016
3. Online registration finalized
and test-run conducted using a
consolidated form for business,
tax, customs, statistics and
enterprise seal registration, where
193 district level Business
Registration Offices use the same
computerized work flow that
increase their efficiency.
4. The “virtual cabinet of
entrepreneur” is integrated to
my.gov.uz web-portal and
submission of financial, tax,
statistical and other reporting
integrated.
Activity Result 2. Online business registration
mechanism based on citizen centric approach introduced
and the experience extended to more services through
introduction of “virtual cabinet of entrepreneur”
draft regulation outlining institutional and functional
linkages among government agencies, establishing
necessary databases and information systems
submitted to the Government.
draft regulation on public registry of business entities
(legal entities and individual entrepreneurs) with
issuance of unique electronic ID submitted to the
Government.
technical requirements to ensure creation and
interoperability of the relevant data bases and
software for online registration agreed with CCI and
CCITT.
developing action plan to implement measures set out
in legislation on business registration reform.
developing technical specifications based on
requirements of legislation setting out basis
requirements to a relevant software and data bases;
assisting in starting-up and adjustment of software
product and data-bases after its pilot launch in
Tashkent City;
assistance in overseeing the functioning of a new
business registration system and conduct impact
assessment based on requirements of legislation;
basic information regarding registered companies is
publicly accessible through my.gov.uz web-portal.
the project will whenever possible collect gender-
disaggregated data.
the project will work on building partnerships and
mobilizing resources for implementation of the
activities and delivery of results.
Contractual Services
Staff
Consultants
Travel
Publications
2014 - $ 18,000
2015 - $ 570,000
2016 - $ 49,000
2017 - $ 24,000
Total for
Activity 2 - $ 661,000
14
2017
5. The “virtual cabinet of
entrepreneur” enables making
payments via internet banking
for various public services, and
obtaining certificates and
accessing other online public
services.
Baseline 1. Efforts on promoting
businesses in rural areas are
fragmented and not effective, these
businesses are particularly
disadvantaged in terms of skills
development, going through
procedures and access to markets.
Indicator:
Mechanism for scaling up of
inclusive business models
nationwide developed and
transferred to national partners.
Baseline 2. Rural population,
especially women and youth are in
particular disadvantage in finding
decent employment and income
opportunities.
Indicator:
Number of jobs/income
opportunities created in rural areas
as part of scaling up of inclusive
business models.
2015
1.1. Corporate Social
Responsibility practices, public-
private social partnership efforts,
including those promoted by
donors reviewed and a report on
promoting inclusive business
model scale up prepared.
2.1. At least 10 new jobs created
for the target group by 2 pilot
small businesses (headed by
women, or employing mostly
women and youth) supported with
the help of partners.
2016
1.2. Resource mobilization
strategy for CCI and partners to
implement inclusive business
models developed.
2.2. At least 10 new jobs created
for the target group by 2 pilot
small businesses (headed by
women, or employing mostly
women and youth) supported with
the help of partners.
2017
1.3. Policy paper on further
promoting inclusive business
models in rural areas with policy
recommendations published.
Activity Result 3. Inclusive business models are
implemented to create jobs in rural areas and to run
through business procedures to identify gaps and
challenges facing in particular rural entrepreneurs.
the project will work on building partnerships and
mobilizing resources for implementation of the
activities and delivery of results.
focus-group interviews for compilation of viable
project proposals, initial evaluation of proposals
conducted and most attractive project proposals
identified.
projects based on preliminary evaluation results and
in consultation with relevant stakeholders selected
as pilots.
team of consultants with technical and industry-
specific expertise to conduct feasibility studies
assembled.
pilots supported to build/improve their productive,
management and organizational capacities, their
progress monitored, return on investment, and job
creation potential estimated.
walking the pilots through business procedures,
documenting results and developing proposals on
further simplification, as well as identifying training
needs of entrepreneurs and develop targeted
knowledge products.
analytical reports prepared, discussed and
institutional approaches to scaling up of inclusive
business models (linking this to the Government
social partnership and concessionary lending
programs) proposed to national partners.
the project will whenever possible collect gender-
Contractual Services
Staff
Consultants
Travel
Publications
2014 - $ 8,000
2015 - $ 89,000
2016 - $ 70,000
2017 - $ 72,000
Total for
Activity 3 - $ 239,000
15
disaggregated data.
raising awareness about the UN Global Compact
and CSR to expand partnerships.
Activity 4. Project implementation activities
IT equipment;
printing;
communications;
staff.
2014 - $ 27,000
2015 - $ 25,000
2016 - $ 26,000
2017 - $ 27,000
Total for
Activity 4 - $ 105,000
Grand totals
2014 - $ 72,000
2015 - $ 796,000
2016 - $ 227,000
2017 - $ 191,000
Total for
the project - $ 1,286,000
16
IV. MANAGEMENT ARRANGEMENTS
The project will be implemented under National Implementation Modality (NIM). The Chamber
of commerce and industry of Uzbekistan (CCI) will be the Implementing Partner. CCI shall retain
overall responsibility for this nationally managed project and will appoint the National Project
Coordinator (NPC). Direct responsibility of the NPC will be provision of strategic advice and
coordination of the project activity taking into account interests of CCI.
CCI and UNDP will be represented in the Project Board. The overall guidance and strategic
decisions related to the project implementation will be made by the Project Board. The Project
Board will be responsible for making by consensus management decisions for a project when
guidance is required by the Project Manager, including recommendations for UNDP/CCI approval
of project plans and revisions. All other Project management roles are presented in ANNEX
II.Project Management Roles.
In accordance with the provisions of the letter of agreement signed on 30 April 2010 and the
approved Country Programme Action Plan 2010-2015, the UNDP Country Office shall provide
services for the Project as described below.
Direct UNDP Country office Support Services to the Programme Implementation
The UNDP and CCI have agreed that the UNDP Country Office will provide the following
support services for the project activities at the request of the CCI:
(a) Identification and/or recruitment & solution of administrative issues related to the project
personnel;
(b) Procurement of commodities, labor and services;
(c) Identification and facilitation of training activities, seminars and workshops;
(d) Financial monitoring and reporting;
(e) Processing of direct payments;
(f) Supervision of project implementation, monitoring and assistance in project assessment.
The UNDP country office may provide support services for assistance with reporting requirements
and direct payment. In providing such support services, the UNDP country office shall ensure that
the capacity of the CCI is strengthened to enable it to carry out such activities directly.
When providing the above support services, the UNDP Country Office will recover the costs for
providing Implementation Support Services on the basis of actual costs and transaction fee based
on the latest Universal Price List. According to the corporate guidelines, these costs are an
integral part of project delivery and, hence, will be charged to the same budget line (account in
AWP) as the project input itself.
Project Manager
Project Board
Senior Beneficiary
The Government, small businesses
and private entrepreneurs
Executive
National Project Coordinator
Chairman of the Chamber of
Commerce and Industry of
Uzbekistan
Senior Supplier
UNDP
Project Assurance
EGU, RMU Project Support
Operations
Administrative-Finance
Assistant
Project Organization Structure
Task Manager
(Component II)
Task Manager
(Component III)
17
The procurement of goods and services and the recruitment of project personnel by the UNDP
Country Office shall be in accordance with the UNDP regulations, rules, policies and procedures.
If the requirements for support services by the country office change during the life of a project,
the list UNDP Country Office support services is revised with the mutual agreement of the UNDP
Resident Representative and the CCI.
The goods procured within the framework of the Project and necessary for the implementation of
the its activities, in particular IT equipment & office furniture shall be transferred to the
ownership of the CCI, unless the Project Board decides otherwise or the goods have been
procured from the funds provided by third parties and the agreements with them stipulate other
arrangements. The relevant provisions of the Standard Basic Assistance Agreement (SBAA)
between the Government of Uzbekistan & the UNDP, signed by Parties on 10 June 1993, incl. the
provisions on liability and privileges & immunities, shall apply to the provision of such support
services.
Any claim or dispute arising under or in connection with the provision of support services by the
UNDP country office in accordance with this document shall be handled pursuant to the relevant
provisions of the SBAA.
Audit Arrangements: The Audit will be conducted in accordance with the established UNDP
procedures set out in the Programming and Finance manuals by the legally recognized auditor.
Use of institutional logos on project deliverables: In order to accord proper acknowledgement to
UNDP for providing funding, UNDP should appear on all relevant project publications, incl.
among others, project hardware purchased w/UNDP funds. Any citation on publications regarding
projects funded by UNDP should also accord proper acknowledgement to UNDP. The UNDP logo
should be more prominent – and separated from any other logo, if possible, as UN visibility is
important for security purposes.
V. MONITORING FRAMEWORK AND EVALUATION
In accordance with the programming policies and procedures outlined in the UNDP User Guide,
the project will be monitored through the following:
Within the annual cycle
On a quarterly basis, a quality assessment shall record progress towards the completion
of key results, based on the Quality Management table below;
An Issue Log shall be activated in an off-line format and updated by the Project Manager to
facilitate tracking and resolution of potential problems or requests for change, which can be
raised at the Project Review meetings;
Based on the initial risk analysis submitted (see ANNEX I. RISKS LOG), a Risk Log shall
be activated in Atlas and regularly updated by reviewing the external environment that may
affect the project implementation;
Based on the above information recorded in Atlas, a Quarterly Progress Reports (QPR)may be
submitted by the Project Manager to the Project Board through the Head of Good Governance
Unit, using the standard report format available in the Executive Snapshot.
Project Lesson-Learned Log shall be activated and regularly updated to ensure on-going
learning and adaptation within the organization, and to facilitate the preparation of the
Lessons-learned Report at the end of the project
Monitoring Schedule Plan for 2 monitoring visits shall be activated in Atlas and updated to
track key management actions
Annually
Annual Review Report. An Annual Review Report shall be prepared by the Project Manager
and shared with the Project Board. As minimum requirement, the Annual Review Report shall
consist of the Atlas standard format for the QPR covering the whole year with updated
information for each above element of the QPR as well as a summary of results achieved
against pre-defined annual targets at the output level.
Annual Project Review. Based on the above report, an Annual Project Review shall be
conducted during the fourth quarter of the year or soon after, to assess the performance of the
project and appraise the Annual Work Plan (AWP) for the following year. In the last year, this
review will be a final assessment. This review is driven by the Project Board and may involve
other stakeholders as required. It shall focus on the extent to which progress is being made
towards outputs, and that these remain aligned to appropriate outcomes.
18
VI. QUALITY MANAGEMENT FOR PROJECT ACTIVITY RESULTS
OUTPUT:
Activity Result 1
(Atlas Activity ID)
Start Date:
End Date:
Purpose
Description
Planned results Means of Verification Target date
Activity Result 2
(Atlas Activity ID)
Start Date:
End Date:
Purpose
Description
Planned results Means of Verification Target date
Activity Result 3
(Atlas Activity ID)
Start Date:
End Date:
Purpose
Description
Planned results Means of Verification Target date
LEGAL CONTEXT
This project document shall be the instrument referred to as such in Article I of the Standard Basic
Assistance Agreement (SBAA) between the Government of Uzbekistan and UNDP, signed on June
10, 1993.
Consistent with the Article III of the SBAA, the responsibility for the safety and security of the
executing agency and its personnel and property, and of UNDP’s property in the Executing
Agency’s custody, rests with the Executing Agency.
The executing agency shall:
a) put in place an appropriate security plan and maintain the security plan, taking into
account the security situation in the country where the project is being carried;
b) assume all risks and liabilities related to the executing agency’s security, and the full
implementation of the security plan.
19
UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to
the plan when necessary. Failure to maintain and implement an appropriate security plan as
required hereunder shall be deemed a breach of this agreement.
The executing agency agrees to undertake all reasonable efforts to ensure that none of the UNDP
funds received pursuant to the Project Document are used to provide support to individuals or
entities associated with terrorism and that the recipients of any amounts provided by UNDP
hereunder do not appear on the list maintained by the Security Council Committee established
pursuant to resolution 1267 (1999). The list can be accessed via
http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm. This provision must be included in
all sub-contracts or sub-agreements entered into under this Project Document.
20
VII. ANNEXES
ANNEX I. RISKS LOG
# Description Category &
date identified
Impact &
Probability
Countermeasures /
Management response Owner
1. The agencies tasked with the
improvement of business
environment in the country may
find it too costly or too far-
reaching that they may persuade
the Government to roll back some
or most of the reforms
Political
August, 2014
May impede
implementation of
major activities in
the first two
components
Impact = 4
Probability = 2
Maintaining constructive
dialogue with government
partners and helping them
to identify institutional
development opportunities
for them to cope with
changes in their
organizational and
functional processes
Project
Manager
2. High turnover of staff in the CCI
and government authorities
Operational
August, 2014
May create
difficulties and
delays in
implementation of
planned activities
Impact = 3
Probability = 4
Develop standard training
materials (w/case studies)
and ensure application of
effective re-training
system for relevant
government staff
Project
Manager
3. Technical assistance projects
related to business environment
may lack coordination amongst
themselves which may result in
duplication of efforts and missed
opportunities for synergies among
development partners
Strategic
August, 2014
May effect on the
efficiency of the
project’s outputs
and outcomes
Impact = 3
Probability = 3
Continuously monitoring
of donor activities and
organizing regular
meetings and consultations
Project
Manager
4. The third component on
implementation of the inclusive
business projects depends on
further resource mobilization and
partnerships with private sector
and donors, which if unrealized
creates a risk of only partial
achievement of results
Financial
August, 2014
May result in only
partial achievement
of the component
results related to
number of projects
implemented
Impact = 4 (on
component)
Probability = 4
The component will have
concrete resource
mobilization targets and
will foster close
cooperation with CCI to
find partners
Project
Manager
21
ANNEX II.PROJECT MANAGEMENT ROLES
I. PROJECT BOARD
Overall responsibilities
The Project Board is the group responsible for making by consensus management decisions for a project when guidance is
required by the Project Manager (PM), including recommendation for UNDP/CCI approval of project plans and revisions. In
order to ensure UNDP’s ultimate accountability, Project Board decisions should be made in accordance to standards that
shall ensure best value for money, fairness, integrity transparency and effective international competition. In case a
consensus cannot be reached, final decision shall rest with the UNDP Resident Representative. Project reviews by this group
are made at designated decision points during the running of a project, or as necessary when raised by the PM. This group is
consulted by the PM for decisions when PM tolerances (normally in terms of time and budget) have been exceeded.
Based on the approved annual work plan (AWP), the Project Board may review and approve project quarterly plans when
required and authorizes any major deviation from these agreed quarterly plans. It is the authority that signs off the
completion of each quarterly plan as well as authorizes the start of the next quarterly plan. It ensures that required resources
are committed and arbitrates on any conflicts within the project or negotiates a solution to any problems between the project
and external bodies. In addition, it approves the appointment and responsibilities of the PM and any delegation of its Project
Assurance responsibilities.
Composition and organization
This group contains three roles, including:
1) An Executive: individual representing the project ownership to chair the group.
2) Senior Supplier: individual or group representing the interests of the parties concerned which provide funding
and/or technical expertise to the project. The Senior Supplier’s primary function within the Board is to provide
guidance regarding the technical feasibility of the project.
3) Senior Beneficiary: individual or group of individuals representing the interests of those who will ultimately
benefit from the project. The Senior Beneficiary’s primary function within the Board is to ensure the realization of
project results from the perspective of project beneficiaries.
Potential members of the Project Board are reviewed and recommended for approval during the LPAC meeting. Efforts
should be made to extent possible to ensure gender balance among the members of the Project Board.
Specific responsibilities:
Initiating a project
Agree on PM’s responsibilities, as well as the responsibilities of the other members of the Project Management team;
Delegate any Project Assurance function as appropriate;
Review and appraise detailed Project Plan and AWP, including Atlas reports covering activity definition, quality
criteria, issue log, updated risk log and the monitoring and communication plan.
Running a project
Provide overall guidance and direction to the project, ensuring it remains within any specified constraints;
Address project issues as raised by the Project Manager;
Provide guidance and agree on possible countermeasures/management actions to address specific risks;
Agree on Project Manager’s tolerances in the AWP and quarterly plans when required;
Conduct regular meetings to review the Project Quarterly Progress Report and provide direction and
recommendations to ensure that the agreed deliverables are produced satisfactorily according to plans.
Review Combined Delivery Reports (CDR) prior to certification by the CCI;
Appraise the Project Annual Review Report, make recommendations for the next AWP, and inform the Project Board
about the results of the review;
Review and approve end project report, make recommendations for follow-on actions;
Provide ad-hoc direction and advice for exception situations when project manager’s tolerances are exceeded;
Assess and decide on project changes through revisions.
Closing a project
Assure that all Project deliverables have been produced satisfactorily;
Review and approve the Final Project Review Report, including Lessons-learned;
Make recommendations for follow-on actions to be submitted to the Outcome Board.
22
II. EXECUTIVE
The Executive is ultimately responsible for the project, supported by the Senior Beneficiary and Senior Supplier. The
Executive’s role is to ensure that the project is focused throughout its life cycle on achieving its objectives and delivering
outputs that will contribute to higher level outcomes. The Executive has to ensure that the project gives value for money,
ensuring a cost-conscious approach to the project, balancing the demands of beneficiary and supplier.
Specific responsibilities (as part of the above responsibilities for the Project Board):
Ensure that there is a coherent project organization structure and logical set of plans;
Set tolerances in the AWP and other plans as required for the Project Manager;
Monitor and control the progress of the project at a strategic level;
Ensure that risks are being tracked and mitigated as effectively as possible;
Organize and chair Project Board meetings.
If the project warrants it, the Executive may delegate some responsibility for the project assurance functions.
III. SENIOR BENEFICIARY
The Senior Beneficiary is responsible for validating the needs and for monitoring that the solution will meet those needs
within the constraints of the project. The role represents the interests of all those who will benefit from the project, or those
for whom the deliverables resulting from activities will achieve specific output targets. The Senior Beneficiary role monitors
progress against targets and quality criteria. This role may require more than one person to cover all the beneficiary interests.
For the sake of effectiveness, the role should not be split between too many people.
Specific responsibilities (as part of the above responsibilities for the Project Board):
Ensure the expected outputs and related activities of the project are well defined;
Make sure that progress towards the outputs required by the beneficiaries remains consistent from the beneficiary
perspective;
Promote and maintain focus on the expected project output;
Prioritize and contribute beneficiaries’ opinions on Project Board decisions on whether to implement
recommendations on proposed changes;
Resolve priority conflicts.
The assurance responsibilities of the Senior Beneficiary are to check that:
Specification of the Beneficiary’s needs is accurate, complete and unambiguous;
Implementation of activities at all stages is monitored to ensure that they will meet the beneficiary’s needs and are
progressing towards that target;
Impact of potential changes is evaluated from the beneficiary point of view;
Risks to the beneficiaries are frequently monitored.
Where the project’s size, complexity or importance warrants it, the Senior Beneficiary may delegate the responsibility and
authority for some of the assurance responsibilities.
IV. SENIOR SUPPLIER
The Senior Supplier represents the interests of the parties that provide funding and/or technical expertise to the project
(designing, developing, facilitating, procuring, implementing). The Senior Supplier’s primary function within the Board is to
provide guidance regarding the technical feasibility of the project. The Senior Supplier role must have the authority to
commit or acquire supplier resources required.
Specific responsibilities (as part of the above responsibilities for the Project Board)
Make sure that progress towards the outputs remains consistent from the supplier perspective;
Promote and maintain focus on the expected project output from the point of view of supplier management;
Ensure that the supplier resources required for the project are made available;
Contribute supplier opinions on Project Board decisions on whether to implement recommendations on proposed
changes;
Arbitrate on, and ensure resolution of, any supplier priority or resource conflicts.
The assurance responsibilities of the Senior Supplier are to:
Advise on the selection of strategy, design and methods to carry out project activities;
Ensure that any standards defined for the project are met and used to good effect;
Monitor potential changes and their impact on the quality of deliverables from a supplier perspective;
Monitor any risks in the implementation aspects of the project.
If warranted, some of this assurance responsibility may be delegated.
23
V. PROJECT MANAGER
Overall responsibilities
The PM has the authority to run the project on a day-to-day basis on behalf of the Project Board within the constraints laid
down by the Board. The PM is responsible for day-to-day management and decision-making for the project. The PM’s prime
responsibility is to ensure that the project produces the results specified in the project document, to the required standard of
quality and within the specified constraints of time and cost.
Prior to the approval of the project, the Project Developer role is the UNDP staff member responsible for project
management functions during formulation until the PM is in place.
Specific responsibilities would include:
Overall project management:
Implement the output activities in accordance with UNDP operational procedures, POPP, financial rules and regulations;
Liaise with the Project Board and its appointed Project Assurance to assure the overall direction and integrity of the
project;
Maintain close coordination with project partners for private sector development, ensure synergies, avoid overlaps in
project implementation, collaborate with other donors working in the same area, and provide information relevant to the
project;
Build partnerships and mobilize resources to implement project activities and deliver results, also guide other project
staff in their efforts in building partnerships and resource mobilization;
Explore synergies between the Business Forum of Uzbekistan project and other relevant initiatives in the country,
including work by the Government, private sector initiatives of multi-lateral and bilateral donors;
Provide guidance to project team(s)/ responsible party (s);
Identify and obtain any support and advice required for the management, planning and control of the project;
Ensure that gender considerations are effectively mainstreamed throughout project activities, work plans, budgets and
reports; Coordinate project strategies and activities with other UNDP projects seeking synergies and complementarities
within the country programme;
Perform when necessary Team Manager and Project Support roles.
Running a project:
Prepare the output AWP in alignment with the project document and Board decisions. Revise AWP as required;
In addition to the overall project implementation, PM will be fully responsible for implementation of the component I
related to public-private policy dialogue to improve business environment in the country, supervise the implementation
of all other components;
Monitor economic development trends, identify emerging issues of concern for the business climate in Uzbekistan and
develop proposals on new initiatives in the area of private sector development;
Design the scope of work and TORs for all bids and calls for proposals. Oversee work (quality and progress);
Monitor output progress against annual and quarterly work plans;
Supervise accomplishment of the Project work-plans, analyse emerging problems and take adequate measures to ensure
timely fulfillment of Project tasks;
Facilitate information sharing among all partners on private sector development and project related activities in the
country, sharing best practices and lessons learned on projects implemented;
Monitor financial resources and accounting to ensure accuracy and reliability of financial reports. Financial reports have
to be generated as per IPSAS requirements;
Manage and monitor the project risks as initially identified in the Project Brief appraised by the LPAC, submit new risks
to the Project Board for consideration and decision on possible actions if required; update the status of these risks by
maintaining the Project Risks Log;
Be responsible for managing issues and requests for change by maintaining an Issues Log to be submitted to the Project
Board;
Prepare the Project Quarterly Progress Report (progress against planned activities, update on Risks and Issues,
expenditures) and update in the Atlas;
Prepare the Annual review Report, and update it in the Atlas;
Capture and disseminate lessons learned and best practices resulting from implementation;
Coordinate the process of raising public awareness on Project and related activities through mass media;
Prepare at least one blog post on output results and four communication materials per year.
Closing a Project
Prepare Final Project Review Reports to be submitted to the Project Board;
Identify follow-on actions and submit them for consideration to the Project Board;
Manage the transfer of project deliverables, documents, files, equipment and materials to national beneficiaries as per
project Board recommendations;
Prepare final CDR for signature by UNDP and the Implementing Partner.
24
VI. PROJECT ASSURANCE
Overall responsibility
Project Assurance is the responsibility of each Project Board member, however the role can be delegated. The Project
Assurance role supports the Project Board by carrying out objective and independent project oversight and monitoring
functions. This role ensures appropriate project management milestones are managed and completed. Project Assurance has
to be independent of the PM, therefore, the Project Board cannot delegate any of its assurance responsibilities to the PM.
The following list includes the key suggested aspects that need to be checked by the Project Assurance throughout the project
as part of ensuring that it remains relevant, follows the approved plans and continues to meet the planned targets with quality.
Maintenance of thorough liaison throughout the project between the members of the Project Board;
Beneficiary needs and expectations are being met or managed;
Risks are being controlled;
Adherence to the Project Justification (Business Case);
Projects fit with the overall Country Programme;
The right people are being involved;
An acceptable solution is being developed;
The project remains viable;
The scope of the project is not “creeping upwards” unnoticed;
Internal and external communications are working;
Applicable UNDP rules and regulations are being observed;
Gender mainstreaming policy embedded into project and implemented;
Any legislative constraints are being observed;
Adherence to RMG monitoring and reporting requirements and standards;
Quality management procedures are properly followed;
Project Board’s decisions are followed and revisions are managed in line with the required procedures.
Specific responsibilities would include:
Initiating a project
Ensure that project outputs definitions and activity definition including description and quality criteria have been
properly recorded in the Atlas Project Management module to facilitate monitoring and reporting;
Ensure that people concerned are fully informed about the project;
Ensure that all preparatory activities, including training for project staff, logistic supports are timely carried out.
Running a project
Ensure that funds are made available to the project;
Ensure that risks and issues are properly managed, and that the logs in Atlas are regularly updated;
Ensure that critical project information is monitored and updated in Atlas, using the Activity Quality log in particular;
Ensure that Project Quarterly Progress Reports are prepared and submitted on time, and according to standards in
terms of format and content quality;
Ensure that CDRs and FACE are prepared and submitted to the Project Board and Outcome Board;
Perform oversight activities, such as periodic monitoring visits and “spot checks”;
Ensure that the Project Data Quality Dashboard remains “green”.
Closing a project
Ensure that the project is operationally closed in Atlas;
Ensure that all financial transactions are in Atlas based on final accounting of expenditures;
Ensure that project accounts are closed and status set in Atlas accordingly.
VII. PROJECT SUPPORT
Overall responsibilities
The Project Support role provides project administration, management and technical support to the Project Manager as
required by the needs of the individual project or Project Manager.
Specific responsibilities would include:
Provision of administrative services:
Set up and maintain project files;
Collect project related information data;
Update plans;
Administer the quality review process;
Administer Project Board meetings.
25
Project documentation management:
Administer project revision control;
Establish document control procedures;
Compile, copy and distribute all project reports.
Financial Management, Monitoring and reporting
Assist in the financial management tasks under the responsibility of the Project Manager;
Provide support in the use of Atlas for monitoring and reporting.
Provision of technical support services
Provide technical advices;
Review technical reports;
Monitor technical activities carried out by responsible parties.
26
ANNEX III. TERMS OF REFERENCE
27
28
29
30
31
32
33
34
