CTJ_Reports_April_2018_-_December_2018.pdf

QUARTERLY REPORT IX FY2019

USAID COMPETITIVENESS, TRADE, AND

JOBS ACTIVITY IN CENTRAL ASIA

October 1, 2018 – December 31, 2018

This publication was produced for review by the United States Agency for International

Development. It was prepared by DAI

CTJ

Activity Title: USAID Competitiveness, Trade, and Jobs Activity in Central Asia

Contract Number: AID-176-H-16-00001

Sponsoring USAID Office: USAID-Central Asia

Contractor: DAI

COR: Svetlana Golovatskaya

Chief of Party: Geoff Wright

USAID Competitiveness, Trade, and Jobs in Central Asia activity aims to facilitate exports and employment in horticulture, strengthen transport and logistics services, and tourism across the five

Central Asian economies. By incentivizing firms to become more regionally competitive and by addressing cross-border impediments to trade, USAID helps to develop a more diverse and competitive private sector and generate export-driven growth.

Five-Year Project: October 2016 to September 2021

Goals: Expand regional trade and employment in the horticulture, transport and logistics, and tourism sectors in Central Asia

Approach: Market Systems Development – facilitating market actors to implement activities and achieve goals

Components:

The authors’ views expressed in this publication do not necessarily reflect the views of the United States

Agency for International Development or the United States Government.

DAI will assume acceptance of this report by the United States Agency for International Development within 30 days of submission.

C o m p o n e n t

1 • Facilitating Trade

• Partner with key actors to assess and implement solutions to expand exports, transport & logistics services, and tourism

• Customs and border management

• Central Asia Trade Forum

C o m p o n e n t

2 • Partnering for Innovation

• Competitively select firms to co-finance innovation and expansion of exports and jobs

• Horticulture

• Transport & Logistics

• Tourism

• Skills Development

• Entrepreneurship

C o m p o n e n t

3 • Expand Employment in Key Sectors

• Skills development

• Entrepreneurship

CONTENTS

PROJECT DESCRIPTION 2

EXECUTIVE SUMMARY 4

CHALLENGES AND OBSTACLES 6

ACTIVITY IMPLEMENTATION PROGRESS 7

CENTRAL ASIA TRADE FORUM 7

C5+1 8

REGIONAL UPDATES 9

INNOVATION FACILITY 11

STAKEHOLDERS AND DONOR COORDINATION 16

ANNEXES

ANNEX CALENDAR OF EVENTS 16

ANNEX MEDIA 17

ANNEX PERFORMANCE MONITORING (ML&E) 22

ANNEX QUARTERLY PROJECT PROGRESS PER OUTPUT INDICATORS 29

EXECUTIVE SUMMARY

USAID Competitiveness, Trade, and Jobs Activity in Central Asia (CTJ) started its operations in October

2016. This is the ninth quarterly report of the project, covering the progress of activities from October l, 2018 to December 31, 2018.

QUARTERLY HIGHLIGHTS

• THE EIGHTH CENTRAL ASIA TRADE FORUM New Horizons in Trade and

Investment. Over 1,600 government and business leaders from 25 countries in Central and South

Asia, Europe, and the United States met in Tashkent, Uzbekistan on October 17-18, 2018. Seventy-five percent of participants represented the private sector including 32 U.S. companies. 100 companies exhibited. An additional 463 small business owners received a day of ISO training. More than $56 million in letters of intent to conduct future trade were signed. Senior officials from the Governments of the United States and Uzbekistan as well as leadership from the OECD, EBRD, Citibank and

General Motors spoke at the plenary session.

• A Mobile application was introduced provide updated information about CATF and offer networking opportunities. Participants made more than 500 connections and exchanged about 900 messages via the app.

• C5+1: On October 24-25, 2018, CTJ hosted a study tour under the C5+1 Transport Corridor

Development project for thirty-four C5+1 National Working Group members, customs and phytosanitary officials from Central Asian countries to facilities at the Kazakhstan-China border near

Khorgos.

• C5+1: On December 6-7, 2018, the Atameken, National Chamber of Entrepreneurs, hosted an interdepartmental coordination meeting in Astana to discuss professional standards for the transport and logistics industry.

• C5+1: on November 2, 2018, CTJ, in collaboration with the European Bank of Reconstruction and

Development and the Global Cold Chain Alliance, hosted a cold chain development workshop for cold chain industry stakeholders in Kazakhstan.

• C5+1: on November 5-6, 2018 CTJ in cooperation with GIZ and the ADB, co-hosted an International

Authorized Economic Operators (AEO) workshop, hosted by the State Revenue Committee of the Ministry of Finance of Kazakhstan in Astana.

• On November 27, 2018 over 40 representatives of horticulture producers, the food processing industry, NGOs and related government officials from the Almaty region gathered together in Taldy-

Korgan to discuss challenges and opportunities of the horticulture development in Kazakhstan.

• On November 29, 2018 over 30 representatives of horticulture producers, processing industry, NGOs, related government officials from Turkestan and Kyzyl-Orda regions gathered together in

Turkestan to discuss the horticulture sector development in Kazakhstan.

• On December 20, 2018, CTJ conducted a focus group discussion to develop an action plan for organic associations and producers in Kazakhstan.

• On December 17, 2018, CTJ conducted a Booking.com workshop for 16 guesthouses in the

Zaravshan region of Tajikistan to contribute to its tourism sector development.

• In Turkmenistan During October – November 2018 CTJ jointly with a local consultancy “Asly Halal” conducted a value chain review which allowed CTJ to gain a clearer understanding of training needs in horticulture sector of Lebap region.

• In November 2018 CTJ procured and delivered to “Hil Standart,” a private company, microbiology laboratory equipment to establish Turkmenistan’s first private and commercially operated food safety laboratory with the aim to increase export which is slated for inauguration in March 2019.

• On October 1-3, 2018, the 1st International Conference HEAVY CASPIAN: TURKMENISTAN was held in Awaza to discuss transporting oversized cargo in a safe and efficient manner. CTJ discussed cross-cutting opportunities for cooperation with the Turkmen Logistics Association under the Union of Industrialists and Entrepreneurs of Turkmenistan.

• On October 9-10, 2018 the “Tourism and Travel 2018” conference took place in Turkmenistan to identify ways to develop the tourism industry, establish cooperation between tourism partner firms from different countries and to increase tourism traffic along Silk route countries. DAI Tourism

Director, Mr. Miguel Baca, described how USAID assists governments globally and in Central Asia to develop their tourism industry.

• On December 10-16, 2018, Uzbekistan horticulture exporters visited the Netherlands to learn about their advanced experience in agriculture development. Hosted by the Dutch Ministry of

Agriculture, Nature and Food Quality, the study tour was supported by USAID Agricultural Value

Chain Activity in Uzbekistan and CTJ.

• To strength coordination of international donors working on World Trade Organization (WTO) related issues in Uzbekistan, CTJ initiated a meeting in Tashkent on December 12, 2018.

• During the reporting period over 100 media mentions were reported in leading media, including 10

TV news and broadcasts, highlighting the Eighth Central Asia Trade Forum featured throughout

Central Asia and beyond.

CHALLENGES AND OBSTACLES

CTJ has no significant challenges or obstacles to report.

ACTIVITY IMPLEMENTATION PROGRESS

THE EIGHTH CENTRAL ASIA TRADE FORUM

• This year’s theme, New Horizons in Trade and Investment, reflected the region’s increasing openness to regional and international trade.

• Over 1,600 government and business leaders from 25 countries in Central and South Asia, Europe, and the United States met in Tashkent, Uzbekistan for the Eighth Central Asia Trade Forum on

October 17-18, 2018. An ISO training added 463 representatives of small businesses.

• This was the first time this high-profile business event was held in Uzbekistan – organized by the

USAID and the Ministry for Foreign Trade of the Republic of Uzbekistan.

• The Forum was opened by Deputy Prime Minister, Mr. Nodir Otajonov, and Mr. Alan Meltzer, United

States Charge d’Affaires to Uzbekistan.

• Senator Alisher Kurmanov moderated the first plenary session. Speakers included Mr. Atabek Nazirov, Deputy Minister of Public Education; Ms. Jennifer Bigelow, General Director General Motors

Uzbekistan; Mr. Mark Linscott, Assistant United States Trade Representative and Mr. William

Tompson, Head of Eurasia Division, OECD.

• Mr. Adkham Ikramov, Chairman of Uzbekistan Chamber of Commerce and Industry, moderated the second plenary session. Speakers included Mr. Shuhrat Vafaev, Deputy Chairman, State Committee for

Investment; Mr. Javier Piedra, Deputy Assistant Administrator, USAID; as well as leaders from

Citibank and the EBRD.

• Seventy-five percent of participants represented the private sector including 32 U.S. companies.

More than $56 million in letters of intent to conduct future trade in Central Asia were signed.

• The forum introduced Women in Tech and entrepreneurship Startup Mix sessions highlighting innovations and modern technologies in science, education and agriculture for the younger generation.

• A concurrent trade exhibition showcased over 100 businesses from a variety of sectors across the region, including transportation, tourism, information technology, equipment manufacturing and horticultural production and processing, among others.

PHOTO Trade Exhibition opening at the Eighth

Central Asia Trade Forum, Tashkent, Uzbekistan, October 17-18, 2018

PHOTO CREDIT USAID CTJ

• Management certification company CERT International provided training on ISO certification to 463 representatives of small businesses.

• Overall, the forum included four policy panels discussing the investment climate, WTO accession, finance and the Uzbekistan AmCham held a roundtable on enforcing intellectual property rights.

Other sessions looked at tourism, intra-regional trade and export promotion tools. GIZ sponsored sessions on transit corridors and quality certification while Crown Agents sponsored a supply chain discussion on track and tracing. DAMU Logistics sponsored a discussion on investment in transport and logistics and the OSCE sponsored a session on organic horticulture.

• Following their CATF roundtable discussion on intellectual property rights enforcement, the

Uzbekistan AmCham prepared a report to the Government summarizing the recommendations of the roundtable. On December 26, President Shavkat Mirziyoyev signed three bills into law for Uzbekistan to accede to the Geneva Phonograms Convention, the World Intellectual Property Organization's

(WIPO) Copyright Treaty, and the WIPO Performance and Phonograms Treaty.

C5+1

KAZAKHSTAN | C5+1 TRANSPORT CORRIDOR DEVELOPMENT ACTIVITIES (TCD)

GREEN CHANNEL AND TRUSTED TRADER STUDY TOUR TO KAZAKHSTAN

On October 24-25, 2018, CTJ hosted a study tour under the C5+1 Transport Corridor Development project for thirty-four C5+1 National Working Group members, customs and phytosanitary officials from

Central Asia countries to Kazakhstan.

The two-day event provided multiple knowledge sharing opportunities for customs and phytosanitary experts shared by officials from the Ministry of Finance of Republic of Kazakhstan during site visits to the border check points “Nur Zoly” and “Altynkol” and a subsequent workshop in Almaty.

The first destination of the study tour was the international center of boundary cooperation “Khorgos,” a duty-free trade zone between Kazakhstan and China. The agenda included a site visit that showcased innovative equipment and procedures introduced at “Nur Zoly” road vehicle checkpoint, recently opened at the border with China, that will contribute to the development of Kazakhstan’s transit potential.

Mr. Erbol Arinov, Head of “Nur Zoly” border check point, noted: “The check point is located on the

“Western Europe-Western China” highway and has a passenger capacity of 2,500 vehicles per day in both directions, of which 2,300 are freight trucks. The project is worth 70 billion Tenge and is implemented via a public-private partnership.”

The Trusted Trader program is a global concept promoted by the World Customs Organization SAFE framework of standards which enables simplified customs procedures for traders with proven compliance records. Under the green channel concept local customs authorities and the trade community establish favorable customs procedures for agricultural goods to ensure expedited customs clearance.

Apart from the site visits, participants had an opportunity to learn detailed information about the customs reforms implemented in Kazakhstan, discuss lessons-learned, challenges and share experience during the workshop in Almaty on October 25, 2018. The Agenda of the Workshop incorporated the following topics:

- Kazakhstan’s experience in establishing the institution of authorized economic operators (AEO);

- Implementation of green channel reforms for perishable horticultural products;

- Meeting with authorized economic operators of Kazakhstan

The Study Tour was in preparation for Central Asian countries to implement trusted trader and green channel reforms. The Study Tour explained to customs authorities of C5 countries the policies, procedures and physical infrastructure and legislative reforms necessary for introducing green channel and trusted trader programs.

DISCUSSION ON PROFESSIONAL STANDARDS FOR TRANSPORT AND LOGISTICS

MANAGEMENT AND MAINTENANCE IN KAZAKHSTAN

On December 6-7, 2018, the Atameken, National Chamber of Entrepreneurs, hosted an interdepartmental coordination meeting in Astana to discuss professional standards on transport and logistics.

KAZLOGISTICS, Kazakhstan Union of Transportation and Logistics Organizations teamed with CTJ to develop two professional standards: “Transport and Logistics Management and Maintenance” and

‘International Truck Driver.’ The Central Asia Transport and Logistics Partnership provided expert advice – the Partnership unifies over 100 transport and logistics entities across the region.

The overall scope to align the Kazakhstan national qualifications system with labor market demand, focusing on occupational standards, educational standards and curricula, and qualifications assessment and certification, is driven by the Work Bank Kazakhstan Skills and Jobs Project together with the Ministry of

Healthcare and Social Development in close collaboration with the Ministry of Education and Science and the National Chamber of Entrepreneurs.

Out of 550 targeted professional standards in Kazakhstan covering 16 industries, 70 have been developed and partially approved. The plan is to design 480 professional standards in 2018-2019, including 52 professional standards for four types of transport and logistics occupations.

Overall, it is expected that the improved labor market services will result in better job matching and shorter periods of unemployment for people. The national professional standards are regulated by the

Kazakhstan Labor Code.

KAZAKHSTAN | C5+1 CENTRAL ASIA BUSINESS COMPETITIVENESS ACTIVITY (CABC)

COLD CHAIN DEVELOPMENT DISCUSSION IN KAZAKHSTAN

On November 2, 2018, in collaboration with the European Bank of Reconstruction and Development and the Global Cold Chain Alliance, CTJ hosted a cold chain development workshop in Kazakhstan.

PHOTO COLD CHAIN DEVELOPMENT WORKSHOP IN

KAZAKHSTAN, NOVEMBER 2018 ALMATY

PHOTO USAID CTJ

The event brought together over 40 key stakeholders in Almaty to discuss milestones facing the industry.

The group discussed interest in establishing a formal, membership-fee-based association to improve cold chain services and increase the profitability of cold chain operators in Kazakhstan.

Mr. Richard Tracy, the Vice President of the Global Cold Chain Alliance, shared his global experience in creating and developing a cold chain association.

In accordance with the recommendations and agreements achieved during this workshop, CTJ has asked

Kazakhstan’s cold chain operators to nominate their representatives to an informal cold chain advisory council. The council will help to determine if there are private sector individuals working directly in the cold chain industry who are ready and willing to step forward and lead in prioritizing and solving challenges on behalf of the industry.

INTERNATIONAL WORKSHOP ON AUTHORIZED ECONOMIC OPERATORS (TRUSTED

TRADER) IN KAZAKHSTAN

On November 5-6, 2018 CTJ in cooperation with GIZ and the ADB, co-hosted an International Authorized

Economic Operators (AEO) workshop, hosted by the State Revenue Committee of the Ministry of Finance of Kazakhstan in Astana.

Fifty government officials, representatives of sectoral associations and international organizations from ten countries discussed the AEO implementation experience in Azerbaijan, Hungary, Kazakhstan, Korea, and

Turkey as well as new provisions of the SAFE Standards of the World Customs Organization for AEO programs.

One of the main objectives of the international workshop was to demonstrate how Mutual Recognition

Agreements (MRA) work in other parts of the world. Authorized traders may be recognized by customs authorities of foreign countries based on MRAs to enable reciprocal benefits.

This workshop provided knowledge about best practices for AEO / trusted traders reforms, operations and management. Also, it increased understanding of the benefits of AEO / Trusted Traders programs and the legislative and institutional reforms that are necessary for its proper implementation.

The agenda included the following topics:

- Experience of Azerbaijan, Hungary, Kazakhstan, Korea, and Turkey in implementing an AEO program

- Updated provisions of the World Customs Organization SAFE framework standards for AEO programs

- Application of SAFE standards to improve security of the supply chain and harmonize customs procedures

- Benefits of having AEO status and the role of AEO in supply chain security

- Mutual Recognition Agreement of AEO programs

- Economic impact of AEO programs

The participation of delegates from Tajikistan, Turkmenistan and Uzbekistan was timely in the lead-up to introduction of their own versions of an AEO program in order to assess costs and benefits based on global experience. Benefits of the AEO program in trade facilitation include a reduction in the procedural burden on compliant traders, expedited cross-border movement of low-risk products. Governments can improve revenue collection and allocate customs resources more efficiently. The benefits for exporters include:

- Fewer customs controls;

- Expedited processing and release of shipments;

- Priority treatment for customs control and border crossing;

- Summary declaration with reduced data;

- Reduction of certain fees or charges for AEOs in good standing.

Under the C5+1 Transport Corridor Development Project USAID CTJ has developed a Trusted Trader

Toolkit to guide implementation of a national AEO program. Countries can start with a simplified version of the AEO program, i.e. a Trusted Trader program. In most cases the need for simplification or adaptation result from the range of eligibility criteria that can be applied such as the value of financial guarantees or deposits, quantity of declarations per year, export/import experience, etc.

INNOVATION FACILITY

INCREASE COMPETITIVENESS AND TRADE-READINESS IN SELECTED SECTORS

CTJ received 12 concept notes in the October-December 2018 quarter, compared to 14 in the previous quarter. Five concept notes were received from Uzbekistan, one from Kyrgyzstan and two each from

Kazakhstan, Tajikistan and Turkmenistan.

Eight of the concept notes were rejected and four applicants were requested to provide further information. Common reasons to reject applications include: lack of co-funding, lack of any innovation, proposed activity outside of CTJ’s objectives, lack of perceived financial sustainability, failed due diligence.

One of the biggest challenges evaluating concept notes has been the poor quality of information provided in the notes. CTJ revised the Concept Note Template which now includes specific guiding questions to prompt the applicants to provide the essential information that is required in a concept.

Of the forty concept notes received in 2018, four were approved and seven are under consideration awaiting further information from applicants. Two of the approved notes are undergoing an environmental review for the procurement of fruit processing equipment, a trial shipment of Turkmen melons to Europe is planned to take place in the summer of 2019 and further information is being exchanged for the other.

In addition, the Innovation Facility has procured laboratory equipment for the first private food safety laboratory in Turkmenistan.

REGIONAL UPDATES

KAZAKHSTAN

HORTICULTURE SECTOR DEVELOPMENT IN KAZAKHSTAN

On November 29, 2018 over 40 representatives of horticulture producers, the food processing industry, NGOs and related government officials from the Almaty region gathered together in Taldy-Korgan to discuss challenges and opportunities of the horticulture development in Kazakhstan.

The agenda included a presentation of market research on the horticulture sector in Kazakhstan conducted by the Kazakhstan Association of Sugar, Food and Processing Industry; a discussion of the training needs of agricultural producers and horticultural processors. Participants also discussed potential next steps to strengthen the capacity of the horticultural sector. Participants also learned about CTJ’s

Innovation Facility.

The event was hosted in cooperation with the Atameken Kazakhstan National Chamber of Entrepreneurs in the Almaty region of Kazakhstan.

TURKESTAN HOSTED DISCUSSION OF HORTICULTURE DEVELOPMENT IN KAZAKHSTAN

On November 29, 2018 over 30 representatives of horticulture producers, the processing industry, NGOs, related government officials from Turkestan and Kyzyl-Orda regions gathered together in

Turkestan to discuss horticulture sector development in Kazakhstan.

Delegates discussed current impediments to growth, specific horticulture challenges facing the industry, and identified training needs for horticulture producers and farmers. CTJ supported the Kazakhstan

Association of Sugar, Food and Processing Industries to research and prepare a manual of Kazakhstan horticulture retail requirements. The event was hosted in cooperation with the Atameken Kazakhstan

National Chamber of Entrepreneurs in the Turkestan region of Kazakhstan.

FOCUS GROUP TO DEVELOP ACTION PLAN FOR ORGANIC ASSOCIATIONS AND PRODUCERS

IN KAZAKHSTAN

On December 20, 2018, CTJ conducted a focus group discussion to develop an action plan for organic associations and producers in Kazakhstan.

To support the development of organic farming as a potential avenue for exporting horticulture products, CTJ is starting to work in collaboration with the Kazakhstan Federation of Organic Agriculture Movement and farmers’ organizations on awareness-raising events. Over 16 horticulture producers, representatives of associations and an agricultural research institution gathered in Almaty to discuss the industry and propose an action plan for 2019-2020 to develop organic horticulture in Kazakhstan.

Potential areas of CTJ support include educating farmers on organic production through training and awareness raising events.

TAJIKISTAN

BOOKING.COM WORKSHOP FOR GUESTHOUSES IN TAJIKISTAN CONDUCTED BY CTJ

On December 17, 2018, CTJ conducted a Booking.com workshop for 16 guesthouses in the Zaravshan region of Tajikistan to contribute to its tourism sector development.

The Booking.com website and mobile apps are available in over 40 languages, offer 28,901,947 total reported listings, and cover 145,044 destinations in 228 countries and territories worldwide. More than one million people last month said they'd recommend Booking.com to their family and friends.

PHOTO DISCUSSION OF HORTICULTURE SECTOR

DEVELOPMENT IN KAZAKHSTAN

TALDY-KORGAN, NOVEMBER, 2018

An experienced trainer from Kyrgyzstan facilitated the workshop for the hospitality community in

Penjikent to build understanding and the capacity of guesthouse owners with the Booking.com system.

The trainer presented the online registration system at Booking.com, covered basic features of the digital platform and shared practical tips. The workshop was attended by 16 guesthouses from Penjikent and

Ayni, representatives of the Penjikent Tourism Development Department and the national Tourism

Development Committee under the Government of Tajikistan.

Thirteen guesthouses were registered on Booking.com by the trainer on the spot and were taught how to use the online platform to get the best out of it. Three registered guesthouses learned advanced features of the digital platform to improve their booking.com rate and increase sales.

CTJ is planning to conduct Booking.com workshops for guesthouses throughout the country and across the region.

TURKMENISTAN

HORTICULTURE VALUE CHAIN REVIEW IN TURKMENISTAN (LEBAP REGION)

During October – November 2018 CTJ, jointly with a local consultancy “Asly Halal,” conducted a value chain review to gain a clearer understanding of training needs in the horticulture sector of the Lebap region. During the period, CTJ met with farmers and processors in remote districts to understand their challenges and identify relevant solutions. Currently, CTJ is discussing ways to invite and deploy regional agronomists through Asly Halal and use the consultancy’s position of influence to offer assistance to farmers on the ground.

EQUIPMENT FOR FIRST PRIVATE FOOD SAFETY LABORATORY IN ASHGABAT

In November 2018 CTJ procured and delivered microbiological laboratory equipment to “Hil Standart,” a

Turkmenistan private company in charge of establishing that country’s first privately owned and operated food safety laboratory. The laboratory is expected to open in March 2019. The laboratory will provide food safety testing services to food producers selling into the local market and abroad.

Once Hill Standart has installed specialized antibacterial furniture, CTJ will handover the equipment and transfer ownership to Hil Standart. CTJ will also provide training to laboratory staff and assist the laboratory comply with the certification requirements of ISO 17025.

INTERNATIONAL CONFERENCE HEAVY CASPIAN: TURKMENISTAN

On October 1-3, 2018, the 1st International Conference

HEAVY CASPIAN: TURKMENISTAN was held in the

Awaza Resort Area Congress Center, Turkmenbashi, to discuss ways to transport oversized cargo in a safe and efficient manner.

The conference focused on the transport and installation of heavy-lift, oversized and project cargoes. It was attended by representatives of the Ministry of Railway

Transport of Turkmenistan and the Ministry of Motor

Transport of Turkmenistan among others.

The event brought together over 50 delegates across Central Asia and Europe, Russia, Turkey, Saudi

Arabia to discuss all aspects of logistics in this country, including: potential of Turkmenistan transport infrastructure (ports, roads, bridges); sharing practice of delivering project cargoes in the direction of

Turkmenistan; and state regulation of the transport sector.

Aizhan Beiseyeva, CTJ Regional Transport & Logistics Specialist made a speech at the Forum and during a separate meeting discussed cross-cutting opportunities for cooperation with the Turkmen Logistics

Association under the Union of Industrialists and Entrepreneurs of Turkmenistan.

“TOURISM AND TRAVEL 2018” CONFERENCE IN TURKMENISTAN

On October 9-10, 2018 the “Tourism and Travel 2018” conference took place in Avaza to identify ways to develop the tourism industry of

Turkmenistan, establish cooperation between tourism partner firms from different countries and to increase tourism traffic along the Silk route countries. Over 30 delegates attended from 26 countries, including Afghanistan, Australia, Canada, Pakistan, Kazakhstan, Kyrgyzstan, and the USA. The largest group represented the

Netherlands and Uzbekistan.

CTJ invited Mr. Miguel Baca, DAI Tourism Director, to make a presentation at the conference describing how USAID assists governments globally and in Central Asia to develop their tourism industry. Mr. Baca also met with the Tourism Minister of Turkmenistan and conducted a rapid assessment of the infrastructure at the Avaza National tourist zone in the Caspian sea.

Based on the recommendations, CTJ proposed a tourism activity plan to the State Tourism committee of

Turkmenistan.

UZBEKISTAN

USAID CONDUCTED A STUDY TOUR TO THE NETHERLANDS FOR UZBEKISTAN

EXPORTERS

On December 10-16, 2018, Uzbekistan exporters visited the Netherlands to learn about their experience in advanced agriculture development. Hosted by the Dutch Ministry of Agriculture, Nature and Food

Quality, the study tour was supported by USAID Agricultural Value Chain Activity in Uzbekistan and

USAID Competitiveness, Trade, and Jobs Activity in Central Asia.

The Netherlands is one of the world’s largest agricultural producers, exporting 65 billion euros worth of vegetables, fruit, flowers, meat and dairy products each year. The Dutch success lies in the so-called

Golden Triangle – a synergy that is generated when government, industry and research come together to innovate. The Netherlands has a well-developed and acclaimed research and development ecosystem which is paired with an innovative startup culture.

Uzbekistan exporters visited seed producers, nurseries, greenhouses, plant and rootstock suppliers, livestock farms, and milk processing businesses. The group visited the newly opened World Horti Center, a state-of-the-art facility where science and business have partnered to establish a global center of greenhouse horticulture training, research and development. The group also visited the Wageningen

University, a leading agricultural research university.

According to Khasan Khashimov, Director of Mega Cool LLC located in Kibray district of Tashkent province and Abdulaziz Juraev, Manager of Agro House LLC located in Tashkent city, “the mission was a breath-taking view of leading technology in action.”

Uzbekistan agri-exporters explored ways to expand their product offerings, improve services and business processes, enter new markets, and better understand how new technologies operate to remove inefficiencies and add value. Plans have already started to establish joint-ventures between Uzbek and

Dutch companies.

INTERNATIONAL DONOR COORDINATION MEETING ON WORLD TRADE ORGANIZATION

RELATED ISSUES IN UZBEKISTAN

To strength coordination of international donors working on

World Trade Organization (WTO) related issues in Uzbekistan, CTJ organized a donor roundtable in Tashkent on December 12, 2018. Representatives from the Ministry for Foreign Trade and 20 international organizations, including the World Bank Group, European Bank for Reconstruction and Development (EBRD), EU

Delegation to Uzbekistan, GIZ “Trade Facilitation in Central Asia”

Program, JICA Uzbekistan, UNDP “Aid for Trade” Program, USAID, and representatives of the British, Japanese, and U.S.

Embassies in Uzbekistan joined the event.

Mr. Jovan Jekic, the Minister of Foreign Trade’s Senior WTO Adviser, and CTJ consultant, provided updates on the accession process. He will be working closely with the newly appointed Deputy Foreign

Trade Minister / Chief WTO Negotiator Mr. Badriddin Abidov to further Uzbekistan’s accession process into the WTO.

Uzbekistan 24 TV featured Jovan Jekic with an interview for TV program (in Russian).

PHOTO STUDY TOUR TO THE NETHERLANDS FOR

UZBEKISTAN EXPORTERS, DECEMBER 2018

PHOTO USAID

https://www.youtube.com/watch?v=JIPwthcnmrk&t=83s

STAKEHOLDER AND DONOR COORDINATION

A number of regional government and donor agencies support reform across CTJ’s target sectors in

Central Asia. CTJ ensures that all activities are planned and coordinated with relevant agencies and co-financing is sought where appropriate. During the reporting period CTJ had cooperated with:

• USAID Uzbekistan Agriculture Value Chain Activity to organize an Agribusiness Study Tour to the

Netherlands for horticulture producers and exporters from Uzbekistan, supported by the Dutch

Ministry of Agriculture, Nature and Food Quality, the Netherlands Embassy in Moscow, and the

Uzbekistan Embassy in Belgium.

• The Eighth Central Asia Trade Forum supported by:

- The Ministry for Foreign Trade of the Republic of Uzbekistan

- American Chamber of Commerce Uzbekistan

- Agrobiz Kazakhstan agricultural portal

- Atameken National Chamber of Entrepreneurs of Kazakhstan

- Cert Academy

- The Chamber of International Commerce of Kazakhstan

- Crown Agents

- DAMU Logistics (Kazakhstan)

- European Bank for Reconstruction and Development (EBRD), Trade Facilitation Programme

- GIZ “Trade Facilitation in Central Asia”

- The AgroMart project, implemented by the OSCE Coordinator in Uzbekistan

- Travelport

- UNDP’s Aid for Trade Initiative funded by the Ministry for Foreign Affairs of Finland

• European Bank of Reconstruction and Development, the Global Cold Chain Alliance (GCCA) and

KAZLOGISTICS to promote Cold Chain Development discussion in Kazakhstan;

• GIZ and the ADB to organize an International Authorized Economic Operators (AEO) workshop, hosted by the State Revenue Committee of the Ministry of Finance of Kazakhstan in Astana;

• Atameken, National Chamber of Entrepreneurs and KAZLOGISTICS, Kazakhstan Union of

Transportation and Logistics Organizations to develop professional standards under a program managed by the Ministry of Labor and Social Protection of Population of the Republic of

Kazakhstan.

• Kazakhstan Association of Sugar, Food and Processing Industry and Atameken Kazakhstan

National Chamber of Entrepreneurs in Almaty region to organize discussion on Horticulture sector development in Kazakhstan

ANNEX CALENDAR OF UPCOMING EVENTS

C5+1 EVENTS

CENTRAL ASIA BUSINESS COMPETITIVENESS

REGIONAL PHYTOSANITARY TRAINING FOR CENTRAL ASIAN OFFICIALS

DATE February 26-28, 2019

VENUE Dushanbe, Tajikistan

CTJ will organize training on pest risk analysis and pest identification.

AEO WORKSHOP FOR PUBLIC AND PRIVATE SECTOR REPRESENTATIVES

DATE March (TBD), 2019

VENUE Tashkent, Uzbekistan

CTJ, as per Uzbekistan Customs or the Ministry of Foreign Trade request, will host a practical event with the revision of real cases and best practices, specific set of policy recommendations and action plan development.

TRADE MISSION FOR KHATLONI PRODUCERS TO KYRGYZSTAN

VENUE Kyrgyzstan, the southern part

CTJ will host a trade mission for Khatloni producers to Kyrgyzstan, the southern part, to meet with buyers, consolidators and brokers from the southern part of Kyrgyzstan

NON C5+1 EVENTS

PRESENTATION OF HORTICULTURE RESEARCH CONDUCTED IN KAZAKHSTAN

DATE January 29, 2019 VENUE Taraz, Jambyl region

CTJ in cooperation with Atameken, National Chamber of Entrepreneurs, Union of processors of

Kazakhstan. Think-tanks, horticulture producers and processors will discuss horticulture sector development in the Jambyl region of Kazakhstan.

ISO 31000:2018 RISK BASED THINKING METHODOLOGY

DATE January 31 - February 1, 2019

VENUE Ashgabat, Turkmenistan

CTJ in cooperation with SGS will introduce transport and logistics companies and ISO consultants into new ISO standard of risk management during operations.

(THREE) TRAININGS FOR HORTICULTURE PRODUCERS IN KAZAKHSTAN

DATE February - March 2019, (TBD) VENUE Almaty region, Turkestan region, Jambyl region

CTJ in cooperation with Atameken, National Chamber of Entrepreneurs, Union of processors of

Kazakhstan will train horticulture producers and processors on improving skills and innovations in

Kazakhstan.

ONLINE REGISTRATION BOOKING.COM WORKSHOP

DATE February 2019, (TBD) VENUE Almaty, Kazakhstan

CTJ will contribute to the tourism sector development in Kazakhstan.

TOURISM PRODUCT DEVELOPMENT WORKSHOP

VENUE Penjikent Tajikistan

CTJ in partnership with Zerafshan Tourism Board will contribute to the tourism sector development in

Tajikistan, to identify, develop and pack tour products.

INVESTMENT CLIMATE ROUND TABLE

VENUE Tashkent, Uzbekistan

CTJ in cooperation with the Senate of Uzbekistan and the Ministry of Foreign Trade will host an event to discuss investment climate in Uzbekistan, challenges and local institutional constrains to FDI's.

STUDY TOUR TO INDIA

DATE February 26 – March 5, 2019 VENUE India

CTJ and AVC will organize a study tour to India for horticulture industry representatives from Khatlon, Tajikistan to learn experience of improving capacity on consolidation and cold storage effective management.

SEMINAR / WORKSHOP ON POTATO GROWING AND HANDS-ON

RECOMMENDATIONS

DATE February or March 2019, (TBD) VENUE Turkmenistan

CTJ and UoiE will educate private farmers about the best potato growing practices.

ITB BERLIN TOURISM FAIR

DATE March 6-10, 2019

VENUE Berlin, Germany

CTJ in partnership with Kyrgyz and Tajik National Tourism Committees will promote tourism development in Kyrgyzstan and Tajikistan.

TRACEABILITY TRAINING

VENUE Khatlon, Tajikistan

CTJ, Consolidation Centers of Khatlon and HSN will introduce Global Gap elements within horticulture industry of Khatlon.

HOSPITALITY TRAINING

DATE March 26-30, 2019

VENUE Avaza, Turkmenistan

To contribute to the hospitality capacity for the tourism sector development.

AIR CARGO STUDY TOUR

VENUE Tajikistan-Kazakhstan

CTJ in cooperation with Almaty Airport to study Almaty Airport Cargo Terminal.

ANNEX MEDIA

During the reporting period over 100 media mentions in the leading media, including 10 TV news and broadcasts, highlighting the eighth Central Asia Trade Forum (CATF) featured throughout Central Asia and beyond. Below are a few examples:

- Press services of President of Uzbekistan rotated an Exclusive Video with U.S. Commerce Secretary

Wilbur L. Ross, that highlighted future trade deals plans and outcomes of the Central Asia Trade

Forum in Tashkent

- A portal of the Government of Uzbekistan reported news in English, Russian, and Uzbek

- Sevimli TV produced a Zamon program in Uzbek, Uzbekistan 24 TV TV News in Russian

- Uzbekistan Today Newspaper featured a substantial article in English on the front page

- Norma Newspaper, a long-term CATF media partner included a detailed summary of the event

- National Information Agency of Uzbekistan featured a photostory and outlines from the forum

- Forbes Kazakhstan, together with a number of other leading Kazakhstan media empathized attendance of the Kazakh delegation that yielded with $1,5 million worth future deals

- Kabar Kyrgyzstan News Agency informed about forthcoming visit of the Kyrgyz delegation to the

Central Asia Forum

- Sputnik Tajikistan quoted Uzbek vice-minister “Trade should connect Central Asia countries with

US”

- Turkmenpotral highlighted active participation of the Turkmen delegation for the Central Asia

Trade Forum

FACEBOOK STATISTICS - 1,673 Followers

Sevimli TV Zamon about CATF 2018 in Uzbek https://www.youtube.com/watch?v=SQti1cadZ5U&t=3s

MY5 TV (in Uzbek) https://www.youtube.com/watch?v=7ib3IUoQ-6U https://www.facebook.com/usaidctj/posts/1931373383623364?__xts__%5b0%5d=68.ARDCzk2dW-vJ4F3fHArolX-wrMpsvx6Q5StzouXeveDeLfY5w50cBvUvFiK8ckjLeKvopSWzkHfKXCJNELhd0adqhXjlKgCF5kVkJGalEE4hmx9p1C_DTQ1mBRUOYdzOVPfXuhzgOVn1-dCkv2fgbW6KRCTjXVvioH_9JZX-3ULH5ud1Kv0NSzFXM75F6GZVFjJenCxOBGG_KZmYNtbm0uITS4D7qDNHTCbZry0&__tn__=-R https://www.facebook.com/usaidctj/posts/1931373383623364?__xts__%5b0%5d=68.ARDCzk2dW-vJ4F3fHArolX-wrMpsvx6Q5StzouXeveDeLfY5w50cBvUvFiK8ckjLeKvopSWzkHfKXCJNELhd0adqhXjlKgCF5kVkJGalEE4hmx9p1C_DTQ1mBRUOYdzOVPfXuhzgOVn1-dCkv2fgbW6KRCTjXVvioH_9JZX-3ULH5ud1Kv0NSzFXM75F6GZVFjJenCxOBGG_KZmYNtbm0uITS4D7qDNHTCbZry0&__tn__=-R https://www.gov.uz/en/news/view?id=19166 https://www.youtube.com/watch?v=SQti1cadZ5U&t=3s https://www.youtube.com/watch?v=NunUwaKMUx8 https://gazeta.norma.uz/publish/doc/text145359_novye_gorizonty?paper=ntv http://www.uza.uz/en/business/tashkent-hosts-central-asian-trade-forum-17-10-2018?sphrase_id=5907981 https://forbes.kz/news/2018/10/25/newsid_184817 http://kabar.kg/eng/news/united-states-hosts-the-eighth-annual-central-asia-trade-forum-in-tashkent/ https://tj.sputniknews.ru/asia/20181017/1027135468/vice-premer-uzbekistan-torgovlya-sblizit-central-asia-usa.html https://turkmenportal.com/blog/16265/delegaciya-iz-turkmenistana-prinyala-uchastie-v--centralnoaziatskom-torgovom-forume-v-tashkente https://www.youtube.com/watch?v=SQti1cadZ5U&t=3s https://www.youtube.com/watch?v=7ib3IUoQ-6U https://www.youtube.com/watch?v=SQti1cadZ5U&t=3s

ANNEX PERFORMANCE MONITORING (ML&E)

1. CTJ Capacity-Building Assistance

The results of capacity building activities rely on any training, technical assistance, and/or information provided by CTJ-supported trade promotion-related entities. Discussions are conducted around person-hours training completed and number of individuals and firms receiving capacity-building assistance for improving business performance.

1) Six-hour training course on ISO 22000: 2018 (HACCP) and ISO 9001:2015 was provided as a session under the CATFVIII in Tashkent, Uzbekistan, on October 18, 2018. The event was attended by 377 representatives from private companies and 273 representatives from public organizations and associations.

2) Green Channel and Trusted Trader (Authorized Economic Operator) Study Tour and Workshop was organized in Kazakhstan on October 24-25, 2018. The event was attended by twenty-one C5+1

National Working Group members, customs and phytosanitary officials and eight representatives from five private firms from Central Asia countries. The two-day (twelve hours) event provided multiple knowledge sharing opportunities for customs and phytosanitary experts shared by officials from the Ministry of Finance of Republic of Kazakhstan during site visits to the border check points

“Nur Zoly” and “Altynkol” and a subsequent workshop in Almaty.

3) To contribute to the tourism sector development in Tajikistan, a Booking.com workshop was conducted in Penjikent, Zaravshan region, Tajikistan on December 17, 2018. Eight-hours workshop was organized for 16 representatives from 16 guesthouses and 4 representatives from tourism sector officials in the Zaravshan region of Tajikistan to contribute to its tourism sector development.

The experienced trainer from Kyrgyzstan facilitated the workshop for hospitality community in

Penjikent to build understanding and capacity of guesthouse owners with booking.com system.

2. Private Sector Meetings and Networking Events

1) Business-to-business (B2B) meetings conducted under the CATF VIII in Tashkent, Uzbekistan on

October 18-19, 2018. They took place during a concurrent trade exhibition that showcased technology, equipment, and service providers that have the capacity to lower production and transport costs in the region. As a result of these B2B meetings, 60 letters of intent were signed valued more than $56 million to conduct future trade.

2) A cold chain development workshop in Kazakhstan hosted in Almaty, on November 02, 2018. The event brought together 42 key stakeholders in Almaty to discuss milestones facing the industry to improve cold chain services and increase the profitability of cold chain operators in Kazakhstan.

3) Two round tables held for private business representatives from Almaty, Turkestan and Kyzyl-Orda regions on November 27, 29 2018 in Taldy-Korgan and Turkestan. The events gathered together

49 representatives of horticulture producers and the food processing industry to discuss challenges and opportunities of the horticulture development in Kazakhstan.

3. Public-Private Events

The events bringing representatives of government and business together to identify areas for reform, assistance, etc. are as follows

1) C5+1 National WG Meeting on Central Asia Business Competitiveness (CABC) and Transport

Corridor Development (TCD) held in Guliston, Gughd region, Tajikistan on October 09-10, 2018.

Fourteen representatives of respective public organizations and private sector discussed and finalized the drafts of two legal documents aimed to facilitate trade to and from Tajikistan: 1) Trusted

Traders Charter, and 2) Green Channel for Horticulture Products Charter. It was agreed that

Chairman of the WG will send the Charters to the Head of Customs Service under the Government of Tajikistan as implementer body of the concepts;

2) Regional C5+1 CABC and TCD Working Groups Meeting was conducted as a session under the

CATFVIII in Tashkent, Uzbekistan, on October 18, 2018. Thirty-two senior officials from the five countries of Central Asia reviewed the activities undertaken over the past year and approved the workplan for the next year. Activities approved for fiscal year 2019 include development of the region’s cold chain, phytosanitary testing and inspection training, facilitation of trusted trader programs, and development and delivery of warehouse management training curricula.

3) International Workshop on Authorized Economic Operators held in Astana, Kazakhstan on

November 5-6, 2018. Forty-six government officials, representatives of relevant sectoral associations and international organizations from ten countries discussed issues evolved in implementation of AEO program, including conditions for mutual recognition of the AEO, and to share regional best practices in building an institution of AEO with Central Asian countries.

4) An Extended meeting of the Transport Logistics Subcommittee conducted in Astana, Kazakhstan on

December 6-7, 2018. The event attended by thirty-seven experts and representatives of the transport logistics industry, including representatives of the relevant Ministries, National Chamber, trade unions, development organizations. They discussed final draft of two professional standards for “Transport and Logistics Management and Maintenance in Kazakhstan” and ‘International Truck

Driver’ and submitted for Atameken for the final review.

4. Trade Facilitation Events Supported

The events leading to improve border crossing, and reduce related costs and time for clearance and as result, to facilitate trade are as follow:

1) C5+1 National WG Meeting on Central Asia Business Competitiveness (CABC) and Transport

Corridor Development (TCD) conducted in Tajikistan, on October 09-10, 2018, where representatives of respective public organizations and private sector discussed and finalized the drafts of two legal documents aimed to facilitate trade to and from Tajikistan: 1) Trusted Traders

Charter, and 2) Green Channel for Horticulture Products Charter.

2) Green Channel and Trusted Trader (Authorized Economic Operator) Study Tour and Workshop in Kazakhstan on October 24-25, 2018 provided opportunity to share multiple knowledge for customs and phytosanitary experts;

3) International Workshop on Authorized Economic Operators (Trusted Trader) in Kazakhstan, on

November 5-6, 2018, where representatives of the respective government officials, relevant sectoral associations and international organizations discussed issues evolved in implementation of AEO program, including conditions for mutual recognition of the AEO, and to share regional best practices in building an institution of AEO with Central Asian countries

5. The Eighth Central Asia Trade Forum (CATFVIII)

The Eighth Central Asia Trade Forum was conducted in Tashkent, Uzbekistan on October 17-18, 2018. This year’s theme, New Horizons in Trade and Investment, reflects the region’s increasing openness to regional and international trade. The forum was attended by 1,600 representatives from public and private sectors from 25 counties over the world. Over 65 percent of participants represented the private sector.

Along with the different policy panels discussing and sessions, roundtables, education sessions and a concurrent trade exhibition, the forum also brought buyers, sellers, and traders together and gave them a platform to establish business connections and grow and established businesses expand. As a result of B2B round tables, meetings and networking under the forum, a record-breaking number of deals was signed – more than $56 million in letters of intent to conduct future trade in Central Asia.

6. Workforce Development Programs

CTJ is engaged with developing professional standards for transport and logistics centers’ specialists and for updating the curricula for universities and colleges covering specialties “transport and logistics.” On

December 6-7, 2018, the Atameken, National Chamber of Entrepreneurs, hosted an interdepartmental coordination meeting in Astana to discuss a final draft of two professional standards for “Transport and

Logistics Management and Maintenance in Kazakhstan” and ‘International Truck Driver’ and submitted for

Atameken for the final review followed by updating the curricula for universities and colleges covering specialties “transport and logistics.”

Overall, it is expected that the improved labor market services will result in better job matching and shorter periods of unemployment for people. The national professional standards are regulated by the Kazakhstan

Labor Code.

7. Female engagement in the assisted Programs

Training sessions and educational study tours organized for representatives from private sector can facilitate in increasing access to economic resources, such as employment or self-employment, wage or income. To address gender issues, CTJ designs its capacity building interventions in a way to promote gender equality and women empowerment. The proportion of women who participated in the capacity building activities, and as a result, have increased access to economic resources is 31%.

10%

6%

10%

4% 2%

8%

60%

Figure 2: The forum attendees disaggregated by country

Kazakhstan

Kyrgyzstan

Other

Tajikistan

Turkmenistan

USG/USAID

Uzbekistan

4% 9%

22%

3% 0%

62%

Figure 1: The forum attendees disaggregated by institutional sector

Association

Donor

Government

Individual

NGO

Private

Table 1: Summary of activities of FY3, Quarter 1

Indicator Disaggregation KZ KG TJ TM UZ Other Female Total

Number of individuals that received training, technical assistance, and/or information

Total 7 6 26 4 656 400 699

Private 4 1 19 0 377 126 401

Public 3 5 7 4 279 274 298

Female 2 0 7 0 391 400

Male 5 6 19 4 265 299

Person hours of CTJ-supported training completed…