1. 1 EU/UNDP Project «Enhancement of Living Standards in Karakalpakstan and Namangan region of Uzbekistan” Income Generation Component

2. 2 Overall Objective Improve the livelihood of local communities in the republic of Karakalpakstan and Namangan region

3. 3 Three components support the authorities and local communities to develop and implement regional/local development strategies empower local communities to engage in their socio- economic development increase and diversify access of low income population/farmers to finance.

4. 4 Income Generation Component specific objectives Strengthen institutional capacity of partner micro- finance institutions in Namangan and Karakalpakstan Local MFIs handle micro-credit operations efficiently Develop loan products based on men and women’s needs. Increase number of small scale entrepreneurial projects and micro-enterprises At least one pilot agricultural cooperative in each region established and document experiences

5. 5 Selection Process of the potential partners Phase I – Selection of partners by the ELS’s microfinance committees in KKP and NMG Phase II – Performance and capacity assessment of the selected partners to implement the ELS’s MF component Phase III – Signing of the Memorandum of agreement with the selected partners

6. 6 Partner Institutions In Namangan MFP FV-Mard, ACDI/VOCA Business Incubator “Kosonsoy” In Karakalpakstan NGO “Daulet” Karakalpak branch of Business Women Association NGO “Parwaz”

7. 7 MC funds disbursement proposal Assumptions: The objective of the ELS’s Component 3 is to increase and diversify access of the poor and farmers to micro – finance services The distribution of funds will provide fair access to financial products to potential clients in six districts The distribution of funds is based on the proposal received from the assessed MFIs

8. 8 Funds disbursement proposal in Namangan Allocation of funds/ MFIFV MardBIC KTotal $ Chortoq rayon105.7450 Mingbuloq rayon45.7220 Kosonsoy rayon023.565 Total151.467 $23.565 $175.032 $

9. 9 Funds disbursement proposal in Karakalpakstan Allocation of funds/ MFIParwazBWADavlatTotal $ Karauzeak rayon60.71800 Kegeyli rayon080.38924.012104.402 Shumanay rayon0056.322 Total60.718 $80.389 $80.335 $221.442 $

10. 10 Proposal for the ELS’s Exit strategy I. Grant the funds to the Partners: based on the results of performance assessment at the end of MOA. II. Reallocation of funds among the Partners: if some of the selected Partners will not meet the performance criteria established for each of them individually III. Total withdrawal of funds and utilization as grants under the ELS’s component 2 – Social investment fund: if none of the selected Partners will meet the performance criteria established

11. 11 Activities undertaken Regional Microfinance Committees set up to select partner institutions Review of current micro-credit environment initiative 5 MFI’s selected as partner institutions in the third component of the ELS Benchmarking report of MFI’s in KK and comparison with peers in ECA region Proposals from MFI’s for new products using ELS funds MOUs for disbursement of funds allocated to micro- credits with five MFI-partners drafted to launch micro crediting schemes in 100 communities

12. 12 Activities undertaken Agricultural sector review 15 farmers focus groups to identify problems and needs to be incorporated in the agricultural review report 1 template business plan developed for farmers associations, 1 training conducted on business planning International consultants identified for support

13. 13 www.els.uz