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Quarterly Report April- June, 2017. 1

USAID REGIONAL TRADE AND MARKET ALLIANCES PROJECT QUARTERLY REPORT, APRIL – JUNE 2017

JUNE, 2017 This publication was produced for review by the United States Agency for International Development. It was prepared by Nathan Associates under contract No. AID--596-C-13-00001

Quarterly Report April-June 2017. 2

USAID REGIONAL TRADE AND MARKET ALLIANCES PROJECT QUARTERLY REPORT, APRIL – JUNE 2017 CONTRACT No.AID-596-C-13-00001

Waiver of Liability

This document was prepared with support from the American people through the United States Agency for International Development (USAID). Its contents are the sole responsibility of the author(s) and do not necessarily reflect the views of USAID or of the Government of the United States of America.


Cover

Puente de la Amistad, El Amatillo Border Point, El Salvador - Honduras


CONTENTS

EXECUTIVE SUMMARY ................................................................................................... 8

COMPONENT 1- INCREASE ACCESS TO REGIONAL VALUE CHAIN MARKETS FOR CRITICAL AGRICULTURAL PRODUCTS AND ALLIANCES WITH PRIVATE SECTORS 9

1. KEY RESULTS .................................................................................................. 10 1.1. Trade Facilitation - Economic Impact Study 10 1.2. Report on Innovative Mechanisms 12 1.3. Environmental Monitoring of Component 1 grantee organizations and amendment

to the Pesticides Evaluation Report and Safer Use Action Plan (PERSUAP) for The Better Coffee Harvest Project. 13

COMPONENT 2 - INCREASE TRADE FACILITATION AND EFFORTS TO CREATE TRADE CAPACITY ON THE NATIONAL AND REGIONAL LEVEL ................................. 15

2. KEY RESULTS ............................................................................................................ 16 2.1. Reduction of logistics costs at border points 16

2.1.1. Trade Facilitation Monitoring Platform for Central America.............................. 16

FUND TO PROMOTE TRADE AND AGRO-BUSINESSES IN CENTRAL AMERICA AND MARKET ALLIANCES ..................................................................................................... 20

3.1 Market Alliances 21

ANNEX 1. MONITORING, EVALUATION AND LEARNING REPORT (M&E&L) .............. 23

ANNEX 2. ENVIRONMENTAL MONITORING AND MITIGATION PLAN ......................... 29


TABLES AND FIGURES

Table 1. Average times to move cargo through the GT-ESV border ................................. 16 TABLE 2. COMPONENT 2 INDICATORS ........................................................................ 24 TABLE 3. GRANTS INDICATORS ................................................................................... 27 TABLE 4. ENVIRONMENTAL INDICATORS ................................................................... 28 Table 5. Environmental Monitoring Table III. Agricultural Activities ................................. 34 Table 6. Environmental Monitoring Table III. Installation of RFID infrastructure and hardware .......................................................................................................................... 41 Table 7. Environmental Monitoring Table III. Installation of Canopies at border points .... 46


ABBREVIATIONS ACOPASCA Asociación Cooperativa San Carlos de Responsabilidad Limitada ACOPIDECHA Asociación Cooperativa de Comercialización, Producción, Ahorro y Crédito

de Apicultores de Chalatenango ASOCUCH Asociación de Organizaciones de los Cuchumatanes ASYCUDA Sistema Aduanero Automatizado BCR Banco Central de Reserva BP Base Period C1 Component 1 C2 Component 2 CAMAGRO Cámara Agropecuaria y Agroindustrial de El Salvador CARAVANA Plataforma Electrónica Centroamericana de Transporte e Interconexión

entre Transportistas y Clientes (Central American Electronic Platform For Transportation and Interconnection Between Transporters and Customers)

CFR Code of Federal Regulations CIEX Centro de Trámites de Importaciones y Exportaciones COEXPORT Corporación de Exportadores de El Salvador COPIASURO Cooperativa de Producción Integral Apicultores del Sur Occidente DGA Dirección General de Aduanas de El Salvador DGA (General Directorate of Customs of El Salvador) DGME Dirección General de Migración y Extranjería EMMP Environmental Mitigation and Monitoring Plan EPA United States Environmental Protection Agency ESV El Salvador FECATRANS Federación Centroamericana de Transporte FUSADES Fundación Salvadoreña para el Desarrollo Económico y Social GT Guatemala GOH Government of Honduras HDN Honduras IDB Inter-American Development Bank INL Programa Internacional de Asuntos de Narcóticos y Aplicación de la Ley MAG Ministerio de Agricultura y Ganadería

(Ministry of Agriculture and Livestock) MAGA Ministerio de Agricultura, Ganadería y Alimentación MCC Millennium Challenge Corporation MINEC Ministerio de Economía de El Salvador MINECO MOU

Ministerio de Economía y Comunicaciones de Guatemala Memorandum of Understanding

OIRSA Regional International Agency for Agricultural and Livestock Health OP Option Period PERSUAP Pesticide Evaluation Reports and Safer Use Action Plan


PYBES Productores de Plátano y Banano de El Salvador (Plantain and Banana Producers of El Salvador)

RFID Radio Frequency Identification RIG Regional Inspector General RTFE USAID’s Regional Trade Facilitation Expansion Activity RTMA USAID’s Regional Trade and Market Alliances Project SAT Superintendencia de Administración Tributaria de Guatemala SCAES Sociedad Cooperativa De Apicultores De El Salvador SENASA Servicio Nacional De Salud Animal

(National Service of Animal Health of Costa Rica) SIECA Secretaría De Integración Económica Centroamericana

(Central American Economic Integration Secretariat) SWOT Strengths, weaknesses, opportunities and threats VUCE Ventanilla Única de Comercio Exterior WTO World Trade Organization


EXECUTIVE SUMMARY

In May 2017, the Regional Trade and Market Alliances Project received approval from USAID for its Year 5 Work Plan. This approval allowed the Project to advance both in the implementation of newly proposed activities under the Trade Facilitation Component and in the closing out of the Value Chain and Grants Fund activities from Year 4.

Part of the closing out efforts has included conducting an economic impact study to measure the impact that road management and trade facilitation efforts have had on the local economy at the border of La Hachadura, El Salvador - Pedro de Alvarado, Guatemala. This is being done through questionnaires, interviews, and a SWOT (strengths, weaknesses, opportunities and threats) analysis. The preliminary results of this study have been presented to stakeholders for validation and feedback.

During this Quarter, the project conducted environmental monitoring follow-up visits in Guatemala, El Salvador, Honduras and Nicaragua, as part of the Environmental Monitoring and Mitigation Plan (EMMP). An amendment to the Pesticide Evaluation Reports and Safer Use Action Plan (PERSUAP) for the Better Coffee Harvest Project was also developed. The amendment, if approved, will incorporate ACOPASCA’s requested pesticide to be included in USAID’s approved list for the region, and will allow ACOPASCA to proceed with its exporting initiatives.

Under the Trade Facilitation Component, the Project continued to advance in the implementation of the RFID technology at El Salvador’s border crossings. This entailed fully closing out the Grupo Vision contract and initiating contracts with other vendors to carry out the physical installation, the configuration of alerts for the international transit regime, and the integration of custom’s ASYCUDA World Customs system with the RFID platform. During this period, the Project also received approval from the main border control authorities to incorporate the RFID technology to the export process.

Details of the key results and other project activities are presented below.


COMPONENT 1- INCREASE ACCESS TO REGIONAL VALUE CHAIN MARKETS FOR CRITICAL AGRICULTURAL PRODUCTS AND ALLIANCES WITH PRIVATE SECTORS

Formal and Informal Commercial Activity at the border, La Hachadura, El Salvador


1. KEY RESULTS

1.1. Trade Facilitation - Economic Impact Study

In an effort to modernize the border point at La Hachadura (ESV) – Pedro de Alvarado (GT) and streamline the transport flow, the Project has implemented a series of short- and medium-term measures under the Trade Facilitation Component’s Logistical Management System framework. The measures implemented- RFID, canopies, and improved signage and traffic flow measures - are expected to have a positive impact on the communities at the border. The study will assess the socio-economic impact on specific actors, such as transporters and other border actors that are involved informally or formally in the clearance process (e.g. tramitadores). The study will also provide a cost-benefit analysis for adopting and maintaining the trade facilitation measures to help the Ministries of Economy, Agriculture, Immigration, Customs and Police in Guatemala and El Salvador in relevant decision-making.

The Study is being conducted in three phases:

I. Analysis of the local Economic Environment:

Questionnaires were distributed to 50% of the commercial establishments and 70% of authorized service providers1 located within a 1km radius of the primary and secondary zones of La Hachadura, El Salvador and Pedro de Alvarado. A delegate from the Presidential Commissioner for Border Affairs of El Salvador and representatives from DGA and the Municipal Department of Social Planning accompanied Project staff in distributing and collecting the questionnaires.

Based on the initial information captured by these questionnaires, the Project developed a SWOT matrix to establish the environment under which the trade facilitation measures will be put in place and identify the stakeholders who are either open or resistant to the implementation of these measures.

1 Included currency exchangers, intermediary customs processors, pedi-cab drivers, vendors, logistics companies, exporters, importers, transporters and consignees of international transit.


The project then conducted interviews and workshops with focus groups that included representatives from business chambers2 and the Governments of El Salvador and Guatemala3 to further analyze the positions of both public and private stakeholders.

II. Defining the mathematical model:

Based on the survey responses and the analysis of official secondary sources4, as well as the information obtained from the environmental analysis, the project defined the main parameters and variables of costs and revenues for the private sector, the government and the local population.

The Project designed a deterministic cost-benefit model, taking the following as independent variables: the investments in road infrastructure, the incorporation of the RFID technology, the implementation of logistics measures from the Logistical Management System, and the construction of a Customs Check Point for cargo in the Municipality of Metalio. The Project also defined a flow of costs and benefits over a five-year timeframe.

The model presents the following results:

a. Private sector: positive impact for importers and exporters due to reduction of logistic costs and increased income for the tourism sector.

b. Public sector: For the first two years, the Government will experience negative impact because of the investment required to keep the trade facilitation measures operational. Positive impacts are expected starting in Year 3 due to increase tax revenue and lower operational expenses.

c. Local population: A positive impact is estimated due to job creation associated with tourism and construction activities expected in the area.

o Preliminary estimations show that 11 percent of the population will be negatively affected by the implementation of the RFID system when work in the supporting services economy5 will no longer be necessary.

2 Chamber of Commerce and Industry, Chamber of Salvadoran Industry, Central American Transportation Federation (Fecatrans), El Salvador Chamber of Agriculture and Agroindustry (CAMAGRO), and El Salvador Exporters Corporation (Coexport). 3 El Salvador: General Directorate of Customs, General Directorate of Migration and Immigration, Ministry of Economy, National Civil Police, Anti-narcotics Division, Ministry of Health, Manager of the Center for Import and Export Procedures (CIEX-BCR), Representative of OIRSA, administrators of the La Hachadura Border Point, and Representatives from the Department for Agricultural Quarantine and Inspection. Guatemala: Superintendency of Tax Administration of Guatemala (SAT), representatives of Guatemalan Foreign Trade Single Window (VUCE), the Ministry of Agriculture, Livestock, and Food (MAGA), Municipal Council of Moyuta. 4 Economic statistics from the Central Reserve Bank (BCR), DGA, SAT and the Presidential Commission for Border Affairs import and export databases, tourism statistics published by the Salvadoran Tourism Corporation, and the action plans from the Infrastructure Modernization Unit, among other sources. 5 Employment ranging from tramitadores to restaurant and bar owners and servers.


d. Based on the above, the overall cost-benefit ratio is positive. 6

III. Validation of the model:

The results of the model have been presented to USAID, authorities of the Government of El Salvador, including the Vice Minister of Economy, Presidential Commissioner for Border Affairs, DGA and the Ministry of Finance, and authorities of the Government of Guatemala, including MINECO, SAT and MAGA. The Ministry of Economy and Customs have requested a revision to capture the VAT collection activity of freight forwarders and for the Project to verify the population base that is being used.

Next steps:

The Project will revise the model, based on the additional information received from DGA, MINEC and SAT on VAT collection and population. The Project needs to make some final minor adjustments to incorporate other comments received in the validation meetings. The Project will then run a quantitative risk analysis of the trade facilitation measures being implemented. This analysis will furnish decision-makers with a range of possible outcomes (i.e. no effect to extremely effective), and the probabilities of these outcomes.

The Project will draft a report on the methodology and results of the economic model, which, with the approval of USAID, will be submitted to the representatives of the Governments of El Salvador and Guatemala.

1.2. Report on Innovative Mechanisms During the base period, the project developed four mechanisms to help improve the capacity of Grants Beneficiaries to access new markets and improve their managerial capacities:

(i) The Financial Information System for Rural Businesses (SIFER) was designed to support agricultural organizations in formalizing, managing and analyzing financial information for decision-making;

(ii) The Export Consortium was formed to combine efforts, resources and knowledge of participating microenterprises in order to strengthen their position in new markets, increase their export possibilities and reduce the costs and risks involved in accessing a new market;

(iii) Alliances for Rural Development brought together technical partners, government institutions and commercial entities to help promote the development of agricultural production in rural communities;

(iv) The Premium Market Analysis Tool, developed by SIECA and improved by the Project, enables comparison and analysis of the competitiveness of

6 The Ministry of Economy and Customs have requested to reconfirm the estimates for VAT collection and population base. Once this is done the Project will be able to provide a percentage rate for ROI, but it is not expected that the overall trend towards a positive impact will change with these recalibrations.


various Central American agricultural products with the same or similar products in the rest of the world.

In order to facilitate the replication of these mechanisms, the Project is producing a report that documents the baseline, the process of creating and implementing the four mechanisms, and the relevant results. This report will be delivered during the next quarter and will be shared with all grantee organizations. The long-term objective of this report is to promote innovative activities in the region beyond the lifetime of the Project that will improve access to external markets and integration and inclusion of small farmers into larger value chains.

1.3. Environmental Monitoring of Component 1 grantee organizations and amendment to the Pesticides Evaluation Report and Safer Use Action Plan (PERSUAP) for The Better Coffee Harvest Project.

Under the Fund to Promote Trade and Agribusiness in Central America, the Project donated fumigation equipment to the board of the ACOPASCA cooperative for the purposes of applying pesticides, including Azoxystrobin and Tiabendanzol, to products for international export, in accordance with the requirements of the potential buyers.

Per USAID’s guidance, the Project hired an environmental consulting firm to develop the necessary amendment to the PERSUAP for crops including chia, passion fruit, and plantain in El Salvador and Nicaragua. The purpose of this consultation was to analyze the use of pesticides in post-harvest activities at the ACOPASCA cooperative in El Salvador to ensure there are no harmful or hazardous environmental or health impacts.

The study involved (i) interviewing managers and operators of the plant and inspection of the facilities, the fumigation chamber and the local environment; (ii) interviews with potential buyers (Clinton Foundation, the Association of Producers of Plantains and Bananas of El Salvador - PYBES-, Walmart) and the local technical partner, FUSADES; and (iii) desk research to analyze the state of registration and approval of pesticides in El Salvador and in the United States by the Environmental Protection Agency (EPA).

The study recommended approval of the use of the two pesticides referenced above, provided that ACOPASCA implement the mitigation measures established in the PERSUAP. The project together with the local technical partner, FUSADES, will support ACOPASCA in the implementation of these measures.

Additionally, as part of the EMMP, the Project visited beneficiary organizations in El Salvador, Guatemala, Nicaragua and Honduras, in order to assess the level of compliance with environmental mitigation measures. The project continues to work closely with its local technical partners to implement mitigation strategies identified in the EMMP. More detailed information related to EMMP activity is detailed in annex 2.

Lastly, the PERSUAP amendment has been preapproved by the Regional Advisor of USAID Environmental Affairs. The document will be translated into English and sent to USAID for final approval. The Project will report progress against the implementation of mitigation activities in upcoming quarterly reports.


COMPONENT 2 - INCREASE TRADE FACILITATION AND EFFORTS TO CREATE TRADE CAPACITY ON THE NATIONAL AND REGIONAL LEVEL

Arcs and antennas being installed for the RFID system at Puente Arce, La Hachadura, El Salvador


2. KEY RESULTS

2.1. Reduction of logistics costs at border points

2.1.1. Trade Facilitation Monitoring Platform for Central America.

In June, the Project began the second phase of data collection of border operations at La Hachadura and El Amatillo (El Salvador and Honduras). Transport times and costs captured for these border points were published on the Trade Facilitation Monitoring Platform.

The publication of these logistic indicators has provided a decision-making tool for the main authorities of the Government of El Salvador. Reports analyzed the time it takes to move cargo across the border.

There has been growing interest in efficiency of border crossing operations by the private sector and government authorities, such as MINEC and the Presidential Commissioner for Border Affairs. This has led El Salvador Customs to request additional monitoring reports for the border crossing of Pedro de Alvarado- Guatemala and La Hachadura-El Salvador. In this second set of reports, the Project identified the effects of the operational changes adopted by the DGA in December and the first quarter of 2017, which included enacting a special plan to conduct random risk assessments in addition to rule-based inspections, and officer rotations to address corruption. The combined effect of these operational changes had a significant negative impact on transport times and costs.

In response, the DGA, SAT and the Presidential Commissioner for Border Affairs conducted a number of bilateral and multi-sectoral consultations. Further to these consultations, processing times at this border crossing improved significantly in May, as detailed below:

Table 1. Average times to move cargo through the GT-ESV border

Corridor

Average Time % Reduction

in Time Dec 2016 – May

2017 May 2017

Time it takes to move cargo from GT (PDA) to

ES (LH) (North to South)

>10hrs 2hrs 53 mins ↓ 71%

Time it takes to move cargo from ES (LH) to

GT (PDA) (South to North)

1hr 37 mins 59 mins ↓ 39%


In coordination with the USAID RTFE Activity, RTMA will continue utilizing the Trade Facilitation Monitoring Platform to monitor the times and processes at the key cargo border crossing points along the Pacific corridor and other Central American border points where resources and efforts are being invested by Central American governments.

2.1.2. Logistics Measures: Equipment to improve Traffic Flow at the Borders

The Project transferred traffic flow equipment during the previous quarter (Jan-Mar 2017) to the Government of Honduras (GOH) to assist in the implementation of road management measures at the border. With support from the RTFE Activity, the GoH has been using this equipment to improve border traffic flow on the El Amatillo side of Honduras.

The RTFE team has been involved in implementing measures to coordinate communications between border authorities by using portable transceivers, the use of fluorescent vests to properly identify authorities and prevent traffic accidents involving commercial cargo units; as well as encouraging the use of polyester hardhats, and special lighting/lamps.

Cones are also being used to code commercial loads as part of a test plan in April of this year, which aimed to prevent or at least minimize the formation of queues at the border point. Although the test plan was successful, the lack of human resources in the Honduran government has meant that this measure is not sustainable. The possibility of the RTFE Activity providing financing for document managers during the peak hours and days for cargo traffic was under discussion, however, to date no such approval has been received from the Government of Honduras.

Lastly, signage is being added to improve the traffic flow and facilitate access to the primary areas on the El Salvador side of La Hachadura. The Project held meetings with DGA to define the type of signage and location. Once approved by USAID, the Project will move forward in purchasing and installing this signage.

2.2. Improvement of administrative processes applicable to trade.

2.2.1. Use of RFID technology

During the reporting quarter, the Project made the following progress:

(i) Approval of use cases for transit were approved by the DGA, the Ministry of Agriculture, Immigration and Aliens Bureau, the Presidential Commissioner For Border Affairs, the National Civil Police, and the Ministry of Economy7

7 Sets of actions and event steps that capture how systems interact in irregular scenarios to still achieve the designed actions or operations.


(ii) Proposal to improve the export permit application process and relevant payments through the the RFID technology with the help of CIEX (Center for Import and Export Processing – a department under the Central Reserve Bank of El Salvador).

(iii) Importation of RFID hardware from Panama.

(iv) Installation of RFID infrastructure at La Pluma and Puente Arce in La Hachadura.

(v) Installation and configuration of the RFID hardware and software.

(vi) Integration of ASYCUDA WORLD and the RFID Platform has been initiated.

(vii) Installing additional functionalities to the RFID platform at SIECA to allow for the exchange of data between the RFID antennas and the border control agencies.

The project has also held meetings with Fomilenio II, the USAID Clean Energy Initiative and the Inter-American Development Bank (IDB) to align processes at the national and regional levels to incorporate the RFID implementation and other interventions at the border points.

The Secretariat of Central American Economic Integration (SIECA) and the DGA have demonstrated commitment to the adoption of this trade facilitation measure by releasing tenders for the installation of this technology in other strategic border crossings and ports in the region.

2.2.2. Installation of canopies at border points.

The design and technical requirements for the canopies to be installed at the border points of La Hachadura and El Amatillo were validated by a civil engineering expert. This expert also worked with the Project and DGA to develop a road map for the implementation of this activity including critical factors for consideration.

The Road Map and Critical Factors were presented for validation to the DGA, the International Program on Narcotics Affairs and Law Enforcement (INL), and Fomilenio II. The project also consulted with these institutions on whether there were plans to expand the road, upcoming changes in the wiring network or conflicts in property or land ownership where the canopies will be installed. These entities did not report any potential changes that could affect the installation of the structure.

DGA was in agreement with the following indicators that will measure the success of the impact of the canopy project:


1. Measurements of health conditions of employees working under the canopies8.

2. Sustainable control measures that facilitate trade

3. 10% reduction in the time taken for commercial cargo to cross the border point.

4. Number of technological devices that increase control and efficiency used by employees working under the canopies.

The project carried out a geotechnical study to determine the soil conditions at the installation sites. Based on the results, the mitigation measures required to ensure the stability of the structure and avoid possible erosion of the soil were included as requirements in the RFP released by the Project. A vendor is expected to be selected in the following quarter.

2.2.3. Other results

The project signed an extension to the original MoU with the DGA for the RFID technical assistance noting that this assistance will continue through the end of the project in April 2018.

8 Various types of sick reports connected to overexposure to the sun are received from employees working at these border points. The Project will monitor the number and type of sick reports received in the months after installation of the canopies.


FUND TO PROMOTE TRADE AND AGRO-BUSINESSES IN CENTRAL AMERICA AND MARKET ALLIANCES

Plantain Production Plant, ACOPASCA Cooperative, El Paisnal, El Salvador


3.1 Market Alliances The project has continued to follow up on obtaining permits for the cooperatives to expand their access to international markets. On June 13, the National Animal Health Service (SENASA) and the Ministry of Agriculture and Livestock of Costa Rica issued the results of the official inspection visit to the COPIASURO facility in Guatemala and granted them the permits to export honey to Costa Rica for a period of three years. In addition, SENASA confirmed they had completed the document inspection of ACOPIDECHA and SCAES in El Salvador and would be conducting a physical inspection of these organizations. Fomilenio II approved and awarded a contract for the construction of a well to supply the ACOPASCA’s production plant. Creating a separate well for the production plant will reduce the risk of contamination of the local community’s water supply. As a next step, Fomilenio II has requested that ACOPASCA have up-to-date property deeds for the associates’ homes. In addition, with the final approval of the Amendment to the PERSUAP and the implementation of appropriate mitigation measures, ACOPASCA will be able to start its plantain export activities. Further, ACOPASCA expects to receive an environmental permit from the Ministry of Environment during the month of July and a permit from the Ministry of Housing in August which will allow them to power their dehydration plant. Additionally, ACOPASCA is continuing to receive training from Walmart on good agricultural practices. Finally, the Project held a meeting with USAID to present the main results and challenges of the market alliances and Grants initiatives and has been documenting the methodology, achievements, and lessons learned. A report will be submitted to USAID in the next quarter. 3.2. Fund to Promote Trade and Agroindustry in Central America Based on the findings of the mandatory audit of ASOCUCH9, the Project visited the plant and met with the vendor of the potato drying equipment that was purchased under the Grants Program. ASOCUCH, with support from Project staff, have requested that the vendor make some efficiency improvements to the equipment, which should result in its full utilization. The supplier has committed to make these adjustments by the following quarter. The project continues to work on the disposition plan of equipment purchased by RTMA on behalf of grantees and will be submitting it for USAID approval in the following quarter. 9 RIG regulations require a financial audit of any grantee that receives more than $300k in USAID funds within one year.


ANNEX 1. MONITORING, EVALUATION AND LEARNING REPORT (M&E&L)

Quarterly Report April-June, 2017. 24

PROJECT INDICATORS TABLE 2. COMPONENT 2 INDICATORS

Indicator Definition Unit of Measure LOP Targets Results up to Y5-Q1 Comments

4.2.1-20–Number of days of technical assistance trade and investment environment provided to counterparts or stakeholders

This indicator refers to the 1) services provided to help the project reach its goal of trade facilitation and regional integration. Services could include the transfer of knowledge or expertise by staff, skills training, research and financing to support project implementation, administrative support, management, representation, publicity, policy development, and capacity building; 2) Technical assistance includes both human and institutional resources and excludes financial assistance; 3) Trade- and investment-enabling environment refers to the policies, laws, regulations, and administrative practices affecting international trade and investment and the public and private sector institutions that support sustained, locally driven improvements in the trade environment that benefit both men and women.

Number of days

The target for the option period requires 1,000 additional days.

• Results reporting quarter:

53 days of technical assistance

• LoP results:

3,060.17 days of technical assistance

Technical Assistance from Economist expert conducting the Study of Economic Impact Assessment, and Civil Engineer for Canopies Activity.

Custom-C2-1–Transaction cost per ton in selected value chains receiving USG assistance

Reducing shipment delays will enhance the economic gains of trading goods across borders. This will benefit producers because they will minimize their losses from shipment delays and have decreasing transaction costs (per ton).

Cost per ton in USD

A reduction of 15% in BP and sustain the value reached at the end of BP for OP.

As of June 30, 2017, the value was calculated at $0.21

Baseline 0.22

Target BP 0.185

Target OP 0.16

Results 0.21

% achieved -31%

Transaction costs have increased per ton mainly due to the underutilization of truck capacity. The weights being transported per trip are significantly less than the capacities of the trucks, which results in an increase in cost per ton transported.




4.2.2-10–Number of training hours that were completed by participants through USG-supported training focused on trade and investment capacity building

This indicator is uses the following equation: hours of training times number of participants completing the training. Training includes that offered through or as a result of USG assistance (funds to pay teachers, providing facilities, e.g.). The indicator does not count training where the USG only developed the curriculum.

The number of participants counted by this indicator refers to those who successfully complete the training.

Trainings are defined as sessions in which participants are educated according to a defined curriculum and set learning objectives. Meetings that are educational but lack a curriculum with set learning objectives are not counted as training.

Trade and investment capacity is defined as the collection of services, technologies, equipment, and techniques used to enhance private sector response to international trade and investment opportunities.

Number of hours per person trained

5,000 additional hours/person

In this quarter, no additional training hours/person were provided.




4.5.1-24–Number of policies, regulations, and administrative procedures in development, ratified, or implemented as a result of USG assistance

This indicator counts the number of policies, regulations, and administrative procedures on agricultural resources, food, market standards and regulation, public investment, natural resource and water management, and adaptation/mitigation of climate change that are being developed, were ratified, or are being implemented as a result of USG assistance.

The project began reforming policy in stages:

Stage 1: Analyzed and reviewed existing and proposed policies, regulations, and administrative procedures.

Stage 2: Consulted with stakeholders on the newly proposed or revised policies, regulations, and administrative procedures.

Stage 3: Presented policies for legislation/decree to help improve the legislative environment for smallholder-based agriculture.

Stage 4: Presented for legislation/Decree

Stage 5: Implemented The project will support approval and implementation stages next, recognizing that the outcome of these efforts will be beyond the project’s control.

Number of policies, regulations or administrative procedures

Two (2) additional policies, regulations or administrative procedures.

• Results reporting quarter:

1 administrative procedure presented and validated by relevant stakeholders (stage 3).

• LoP results:

Inter-institutional approval (from other El Salvador border control agencies: Customs, Agriculture, Immigration, Border Coordination Presidential Office, Police, Trade, Single Window) for the improved international transit processes utilizing RFID equipment and the Use-Case methodology.


PROJECT INDICATORS

TABLE 3. GRANTS INDICATORS

Definition

Unit of Measure

LOP Targets Results up to Y5-Q1 Comments

Custom-G1–Value of grants awarded as a result of USG assistance

The Regional Trade and Market Alliances Project will implement a grants program to achieve higher impact and sustainability. For Component 1, the objective is to enable small-producers groups to make the necessary investments to meet buyer-quality specifications, meet environmental sustainability standards, streamline the supply chains, and increase competitiveness in market niches. For Component 2, the main objective is to support the implementation of trade facilitation monitoring mechanisms and private sector trade capacity building in order to increase the participation of small and medium enterprises (SMEs) in regional trade.

Amount in USD

Component 1: US$5 million Component 2 US$1.2 million

Baseline 0

Target BP US$ 6,200,000

Target OP N/A

Results

US$ # Org.

C1 4,957,312.32 18

C2 1,035,118.74 3

Total 5,992,431.06 21

% achieved 96%


PROJECT INDICATORS TABLE 4. ENVIRONMENTAL INDICATORS

Definition

Unit of Measure

LOP Targets Results up to Y5-Q1 Comments

E-I1 - Technical document with mitigation

measures for Post-Harvest Activities defined

and shared among stakeholders

Technical document with a list of environmental risks

related to activities conducted by each grantee and the

measures required to mitigate them.

No. of document

s

2 2 PERSUAP and EMMP

E-I2- EMMP’s updated according to activities

implemented

Updating of EMMP according to new risks identified based on the definition of work plan and execution of activities.

No. of updates

As needed N/A

E-I3 – No. of MoU’s /clause contracts signed

by customs or other stakeholders with

acceptance of responsibility for

monitoring, evaluating and mitigating of

environmental impacts of activities supported with

USAID’s funds.

No. of contractual clauses or MoU to state environmental responsibilities related to the

execution of an activity.

2 2

Contracts signed with Suministros y Proyectos, vendor in charge of the

installation of RFID infrastructure, and

IdTechLogistics, vendor of installation and

configuration of RFID hardware and software.


ANNEX 2. ENVIRONMENTAL MONITORING AND MITIGATION PLAN


KEY RESULTS

During the quarter under review, the Environmental Monitoring and Mitigation Plan for the Grants Program activities and the activities to be implemented under the Trade Facilitation component were approved. In April, the project contracted an environmental expert to support staff in conducting the first environmental monitoring tour. The purpose of the tour was to assess the level of compliance of grantee organizations in environmental issues, identify additional risks and jointly establish a mitigation plan and the parties responsible for implementing the activities in the plan.

The environmental expert, accompanied by a project team member visited eleven organizations in total spread across Guatemala, El Salvador, Honduras and Nicaragua. Among the critical issues identified were inadequate use of industrial protection equipment, lack of signage in the production plants, and the need to establish a protocol for monitoring water use. The project has coordinated with local technical partners and umbrella organizations (FUSADES, AGEXPORT, ECO, FUNDER) to implement mitigation activities that will reduce identified impacts.

The Component 2 mitigation activities include adding environmental compliance and occupational safety clauses to the RFPs and contracts for the outstanding infrastructure and configuration work required for the RFID system. The project is closely monitoring the implementation of these activities to ensure adoption of EMMP measures and coordination with Customs Administrators at border points.

The following is a more detailed account of the progress made in implementing the EMMP in each Component:

Component 1:

• Development of the PERSUAP amendment for the ACOPASCA Cooperative. Together with FUSADES, an action plan has been defined to implement the measures as soon as the document is approved.

• ACOPASCA obtained a non-affectation letter from the local government for the use of the well in the community. This letter is essentially an official statement that the local government does not consider there to be a conflict of use of water for community and production plant activities. Nevertheless, ACOPASCA has obtained an approval of financing for an exclusive well for production activities.

• FUSADES was asked to conduct a water quality test to identify whether the wastewater at the ACOPASCA site is suitable for reuse in other activities (mainly crop irrigation).

• Currently, the Project is coordinating with the local technical partners on the programming of training on industrial safety and monitoring of water use for organizations that have failed to comply with this issue.


Component 2:

Implementation of the RFID system

• An environmental compliance section was included in the latest RFP and in the contract with the two RFID providers (infrastructure and configuration) in order to ensure compliance with the activities established in the EMMP.

• A member of the RTMA Project team visits the work sites at least three times a week to assure adequate use of industrial safety equipment (use of reflective vests, helmets, harnesses), and coordination with the Customs Administrators to close off the work area and notify all affected parties of the provisional closure of the road lanes.

• Support was provided by JMTelcom, a DGA technology provider, to ensure that any excavations did not interfere with the cabling network.

• Reflective protective barriers were installed near the arches to protect the RFID posts from shocks e.g. impact from large trucks. The arcs were adapted according to the technical requirements of the configuration provider of the RFID system.

• Working days were coordinated during low-traffic hours to minimize interference with regular operations at the border point.

• Request for information on the correct disposal of electronic waste and particularly lithium batteries was included in the contract deliverables with the RFID system configuration provider.

• Debris from the work was taken to sites approved by the Customs Administrator of Pedro de Alvarado. In La Hachadura there was minimal debris as there was no need to break the asphalt road.

• The Economic Impact Study is currently being carried out to identify the sustainability of the implemented measures. The study has already been shared with the relevant authorities of the Government of El Salvador.

Installation of canopies at border points

• Soil studies have been carried out in La Hachadura and El Amatillo to identify the ground conditions at the installation sites and measures required to improve the soil composition so that the ground can bear the weight of the structures.

• Requests for permits to carry out the construction work have been submitted to the Ministry of Public Works, Transport, Housing and Urban Development.

• The project has been actively coordinating with the DGA, and other international cooperation activities related to the improvement of infrastructure at border points including with the INL and other USAID initiatives in order to define the location and design of the canopies.

• Environmental considerations for the implementation of this activity were defined and included in the RFP. The possibility of including a rainwater recycling system in the design of the canopies was discussed with Customs, however, the DGA confirmed that they do not have sufficient staff to manage the collection of and transport the stored water. This in turn could generate increased environmental risk (e.g. generation of zika, dengue).


• Solar panels were considered to provide the lighting, however, given budgetary constraints LED lighting will be used instead.


Table 5. Environmental Monitoring Table III. Agricultural Activities

Description of Mitigation Measure

(same as in Table 2 or mitigation measures

identified in PERSUAPs and EAs)

Responsible Party for implementing and monitoring

mitigation measures

Monitoring Methods Estimated

Cost of implement-

ing mitigation measures

and monitoring

Results

Recommended Adjustments

Indicators of

implementation and effective- ness of

indicators

Methods Frequency Dates Monitored

Problems Encountered

Mitigation Effective-

ness

1

Place hazard signs and close off area to public during installation of equipment. Workers are equipped with Personal Protective Equipment

Implementation: Vendor Contractor technical representative

Monitoring: Umbrella Beneficiary Organization Supervisor RTMA C1 Leader

Number of New equipment installation compliance with Industrial Safety Measures

Specifications in contracts. Supervision of installation conditions.

Once during installation

Likely to be minimal Cost must be assumed by vendors.

April, 2017

In some organizations workers were reluctant to comply with Industrial Security Protocols

(35 machines installed) Medium

Provide training on Industrial Security Procedures.

Organizations must require correct use of Personal Protective Equipment

1

All construction waste is disposed of on a daily basis in a designated landfill approved by the mayor

Implementation: Vendor Contractor technical representative

Monitoring:

Number of Equipment Installations with waste disposed correctly No waste visible at

Specifications in contracts. Supervision /observation of installation conditions.

During and at termination of installation

Likely to be minimal Cost must be assumed by vendors.

April, 2017

(35 machines installed) High

Disposition of construction waste was coordinated with organizations, STL and communities leaders.


Umbrella Beneficiary Organization Supervisor RTMA C1 Leader

the end of each day

8

A PERSUAP must be prepared, USAID approved, and followed (to include all pesticides specific to crops prior to any use of fumigation equipment) to prevent human health issues and pollution.

Implementation: RTMA Monitoring Specialist

Monitoring: Umbrella Beneficiary Organization Leader

Number of PERSUAPs produced and shared to beneficiaries.

Review of EPA and Local regulations Site visits PERSUAP approved

As needed (applicable only to Post Harvest Activities carried out with equipment funded by the project and that involve use of pesticides)

Up to 30,000 USD

April –June, 2017

N/A

1 PERSUAP elaborated and pre-approved

9

Follow the PERSUAP directions if pesticides are used to avoid placing pesticides directly into the water.

Implementation: Umbrella Beneficiary Organization Leader Monitoring: RTMA Monitoring Specialist

Number of organizations following PERSUAP directions Only PERSUAP approved pesticides used

Review of use of pesticides reports provided by grantees. Visual observations of Pesticide containers

Quarterly after elaboration of PERSUAP

Cost related to change of pesticides.

N/A N/A N/A

Pending on final approval. The organization will not use pesticides to export.

10

Monitor how water is being utilized and how it is disposed and provide guidelines to improve use of water.

Implementation & Monitoring RTMA C1 Leader

Local Technical Partners

Report on how water is being utilized and disposed of detailing

Water management good practices shared to beneficiaries and being implemented

Assess on a weekly basis

Cost of consultant time

N/A

Organizations have not a protocol of Water

use monitoring implemente

d

Low

Project is coordinating with STL to

provide training in this

matter.


Umbrella Beneficiary Organization Leader

volumes involved

10

Organizations take measures needed to obtain a “Non Affectation Letter” from local authorities.

Implementation: Grantee Leader

Monitoring: RTMA C1 Leader

Letter of non-affectation obtained

Request to local authorities that will evaluate use of water and impacts on nearby community

Once, before or during functioning of the equipment

TBD June 2017 N/A (1)

high

10

Consider if additional systems or equipment are required in order to reuse water e.g. filtration system, pump system.


Local Technical Partners Umbrella Beneficiary Organization Leader

Report on suitable additional systems or equipment New efficient water systems for recycling are being used. Water use diminished

STTA Assignment Site visits

Once Cost of Consultant time

June 2017 N/A

Pending on results of test

of water’s quality.

10

Consider ways to recycle water e.g. return used water to fields for hydration system.


Report on options for recycling specific to the grantee’s context

STTA Assignment Site visits

Once (may involve tests and trial periods)


June 2017 N/A

Pending on results of test

of water’s quality.



10

Consider capacity of the community to build a water storage tank for water dedicated to this process.



Cost/Benefit Analysis of water storage tank for the production facility/community

STTA Assignment Once Cost of

consultant time

June 2017 N/A

Fomilenio has approved the

financial resources to

build a second storage tank

for production activities.

13

Consider whether used fuel can be utilized in any other agricultural equipment.

Implementation & Monitoring RTMA C1 Leader Monitoring Specialist


Report on how fuel can be used and recycled by specific grantee. No oil spills observed

Review of reports on fuels/oils disposals/recycling. Observation /site visits

Before and After Assessments then annually thereafter


April 2017 N/A N/A

No oil spills were detected in these site

visits.

13 Below equipment, place material that can absorb any

Implementation Organizations using special

Information provided by grantees.

April 2017 N/A N/A No oil spills

were detected


oils/fuels that may spill and dispose of in a lined deposit.


Monitoring RTMA C1 Leader Monitoring Specialist


material to manage fuel spill and disposition No Oil spills observed

Site visits in these site visits.

34

Organize occupational hazard and equipment safety training.

Implementation RTMA C1 leader Monitoring



Before and after testing/exam to test participants knowledge. May want to test again after a couple of months to test knowledge retention. Consider whether annual training and testing with

Training

Before and After/Two months later/Annually

Cost of bringing in a Trainer and preparation of materials.

June 2017 N/A N/A

Coordination with STL and organizations

to conduct training


certification is necessary.

35

When assessing solutions to improve post-harvest production take into consideration the proximity of the production area to the local population and other land uses.



Report on local land uses in proximity to production area and potential noise impact on these communities No complaints from neighbors regarding noise or odors.

STTA Assignment Once Cost of

Consultant time

April 2017 N/A High

No conflict on land use were

identified

35

Install noise barrier if noise level can cause damage to communities. Provide protective equipment to operators of the machine.

Implementation: Umbrella Beneficiary Organization Supervisor

Monitoring: Umbrella Beneficiary Organization Supervisor RTMA C1 Leader

Measures taken to manage noise high level-barriers in place Workers equipped with earplugs as necessary No complaints by neighbors

Specifications in contracts. Supervision of operation conditions.

Once during installation/Quartery

Likely to be minimal Cost must be assumed by vendors and grantees

April 2017 N/A Medium

No complains on noise were presented by workers/ near communities.

The organizations has to make

mandatory the use of

earplugs.


Table 6. Environmental Monitoring Table III. Installation of RFID infrastructure and hardware

Description of Mitigation Measure (same as in Table 2

or mitigation measures

identified in PERSUAPs and

EAs)

Responsible Party for

implementing and monitoring

mitigation measures

Monitoring Methods

Estimated Cost of

implement-ing mitigation

measures and monitoring

Results


Indicators of

implementation and effective- ness of

indicators

Methods Frequency Dates Monitored

Problems Challenge

s Encounter

ed


ness

1,6,7

Vendor required to review the existing EMMP to ensure all actions are listed and implement EMMP mitigation measures.

Implementation: Vendor Technical representative contract Monitoring RTMA C210 supevisor and Contracts Specialist

EMMP updated Environmental mitigations included in contract

Monitoring meetings Site visits

During Planning period, during Construction period and After Construction completion.

Include specifications in initial solicitation so that the cost is incorporated into the proposed budget.

June, 2017

N/A

Environmental section included in two contracts. High

N/A

1,6,7

Close of area of construction with “danger” tape and patrol the area to ensure public safety. The area will be restored to its previous condition. Vendor will haul the spoils away to an approved disposal site. Use soil erosion curtains around the construction

Implementation: Vendor Technical representative contract Monitoring RTMA C2 supervisor and Contracts Specialist

Number of measure taken to ensure public safety

Monitoring meetings Site visits


Include specifications in contract so that the cost is incorporated into the proposed budget.

June, 2017

The activity required close coordination with Customs Authorities at border Point.

Signage and delimitation of the zone, coordination with customs managers to inform drivers on closing of the road, restauration of the zones intervened, waste disposed on approved site by

N/A


10 Component 2

site if the slope is more than 5%.

manager of customs facilities. High

1,6,7

Indicate specific locations and measurements for drilling.

Implementation: Vendor Technical representative contract Monitoring RTMA C2 supervisor and Contracts Specialist

Customs Leader of project

Written approval from Customs to vendor of specific location and measure-ments for drilling

Utilize maps showing under-ground cables. Conduct site visits. Nathan and Vendor should work closely with the Infrastructure Representative from Customs.


Time of DGA officials and Nathan experts: Approx. 18 LOE days - takes one day to visit border; multiplied by 2 borders multiplied by 1 visit every two weeks for 18 weeks (4.5 months).

Coordination with customs to identify possible water pipes and electrical cables that could be affected during the excavation. Locations georeferenced

1,6,7

Ensure that any necessary local planning permits have been obtained before any installation begins Designs meet national codes and standards Installation of poles, arches and other equipment should be conducted safely and in a manner

Implementation: Vendor Technical representative contract

Customs Leader of project Monitoring RTMA C2 supervisor and Contracts Specialist

Obtain copies of planning permits.

Meetings

Site visits

Preconstruction


NA June, 2017 N/A

The civil work was

carried out in

Salvadoran and

Guatemalan Customs Facilities. All works had the approval

from Customs

Managers. The design of arcs was

made


that ensures long term stability i.e. complying with international trucking standards, withstanding adverse weather and heavy passage of traffic in the surrounding area

according to technical requirements informed by RFID

configuration company.

5

Construction designs approved by a USAID engineer if cost of project is over $500,000.

Implementation: USAID Engineer Monitoring RTMA C2 supervisor and Contracts Specialist

Approval from USAID

Follow standard

procedure to request approval

When construction

design proposal is completed.

N/A N/A N/A N/A

N/A

5

Small scale construction must adhere to international construction standards and have a Quality Assurance Plan

Implementation: Vendor Technical representative contract

Customs Leader of project Monitoring Vice-Ministry for Transport

Arches adhere to the internation-al standard of 6m from ground to top of arch.

Write specifications into the contract with vendor. Take measurements

Once for each arch (7 arches – RTMA; 4 arches – RTFE)

Include specifications in initial Solicitation so that the cost is incorporated into the proposed budget.

June, 2017 N/A

The arcs met the height

required. In addition the

arcs will have the

signage to inform the maximum

height allowed.

N/A

16 At construction site, ensure soil

Implementation: Techncial on site manager

No dust and no

Site visit observation and

During construction Cost of water

truck delivery

June, 2017 N/A High N/A


area is moist to minimize dust

complaints recevied

construction log

or use of local water charge

35

Construct during off peak hours to minimize noise.

Implementation” Technical on site manager

Construction done on off peak hours and no complaints received

Observation and construction log

During construction No cost

June, 2017

Blocking of

operations at

border point.

Medium 1 complaint presented

by Customs.

The vendors were asked to

work at off peak hours

(upon approval of DGA and

SAT).

No interference

was presented during the remaining period of

installation.

1,3

Make set up of a contract with a hazardous waste disposal company a requirement in the USAID property transfer papers that Customs will sign to take ownership of the RFID system.

Hazardous waste disposal company responsible for implementing

Customs responsible for monitoring

No. of batteries disposed.

Customs request report from waste company.

Every 6 -12 months after two years of battery use.

Percent of battery price multiplied by no. of batteries plus utility fee.

June 2017 N/A N/A

The vendor will submit material

on best practices of

management of hazardous

waste.

8

Conduct a social and economic impact analysis over a sustained period of system

GoES

Number of businesses population occupied housing

Observation visits, utilize census data

Every six months from date that system is operational for 2yrs

Cost of employing a appropriately qualified consultant

May- June

Gathering of

information

In progress


use, beginning before the system is operational. Deliver results to the Government of El Salvador (GoES).


Table 7. Environmental Monitoring Table III. Installation of Canopies at border points

Description of Mitigation Measure

(same as in Table 2 or mitigation measures

identified in PERSUAPs and EAs)

Responsible Party for

implementing and monitoring

mitigation measures

Monitoring Methods

Estimated Cost of implement-ing mitigation measures and

monitoring

Results


Indicators of implementation and

effective- ness of indicators

Methods Frequency Dates

Monitored

Problems Encountered


ness

1,6,7

Small scale construction must adhere to national construction standards.

Implementation: Vendor Technical representative contract Monitoring RTMA C211 supevisor and Civil Engineer/Architect Specialist

Recognized national construction standards being used in design and construction

Employ independent consultant to conduct Inspections

Before, During and After Construction

Make ‘Adherence to national construction standards’ part of the evaluation criteria of proposals so that vendors incorporate this cost into their proposed budgets.

Budget for Independent consultant inspections.

June 2017 N/A High

The project has included in

the RFP compliance of international standards on foundations, material and design of the

canopies

1,6,7

Design needs to be reviewed and approved by a certified engineer, and a USAID engineer if over $500,000.

Implementation: USAID Engineer Monitoring RTMA C2 supevisor and Civil Engineer/Architect Specialist

Approval from USAID

Follow standard procedure to request approval

Before construction (when design proposal is completed)

NA N/A N/A N/A

Activity is budget in

80,000 USD


11 Component 2

1,6,7

Conduct relevant, recommended analyses such as soil/foundation composition tests.

Implementation: Vendor Technical representative contract Monitoring RTMA C2 supervisor and Civil Engineer/Architect Specialist

Industry recognized tests conducted

Make soil/foundation material analyses part of the evaluation criteria for proposals.

Prior to design and construction and during construction.

Cost of soil/foundation material expert.

May 2017

Soil need to be

improved before

initiate civil work

High

The recommendati

on from soli analyses were

included in RFP.

1,6,7

Verify electricity sources if canopies are to include lighting.

Implementation & Monitoring

Customs (Infrastructure

Officer)

Source and strength of electricity supply identified and being used. Solar panels for lighting used where possible.

Coordinate with local electricity supplier…meetings. Review of designs.

Before design and construction of infrastructure.

Time of Customs Infrastructure Officer

June 2017

Close coordination with DGA

High

The DGA will be in charge to

provide electricity to

the canopies. No solar

panels were included

because the costs.

38

Vendor to update this Programmatic EMMP to add site specific conditions that may be missing from this EMMP.

Prepare a Quality Assurance Plan

Implementation: Vendor Technical representative contract Monitoring RTMA C2 supervisor and M&E Specialist

Updated EMMP that includes site specific conditions and mitigation measures implemented.

Incorporate updated EMMP template and mitigation measures in RFP

During design phase, prior to construction phase.

Vendor time to complete EMMP

The contract has not be awarded.

Environmental section was

included in the RFP.

usaid regional trade and market alliances …pdf.usaid.gov/pdf_docs/pa00n15s.pdf · guatemala, el...

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