Scopul PASET este de a promova si sustine participarea celor mai

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					 The Government of the Republic of Moldova
   Japan Social Development Fund (JSDF)
                 World Bank

          project implementation

          1 January - 31 March 2009

              Chisinau - 2009
The YSEEP aims at promoting and supporting participation of the most vulnerable young people (14-30
year-old), in the socio-economic life of the community and in activities that will contribute to their
empowerment, through an integrated package of services and opportunities for the young people in selected

YSEEP specific objectives

(i)         increase the number of isolated and vulnerable youth (14-30) who adopt positive social practices as a
            result of innovative social service delivery;
(ii)        strengthen the capacity of local public and private (NGOs/CBOs) youth-serving providers and
            decision makers to reach out to the most vulnerable young women/girls and men/boys and to address
            their needs and interests in a participatory and integrated manner;
(iii)       increase the number of viable micro-enterprises own by youth (18-30) who initially faced both a lack
            of business development skills and exclusion from credit due to lack of material assets for collateral.

Direct beneficiaries
Teenagers and young adults (14-30) from project selected regions, with a particular focus on the most
disadvantaged: youth from rural and small towns; youth from poor and vulnerable households (including
young parents); unemployed youth; youth who did not complete secondary education (grade 9).

Indirect beneficiaries
        -   Families of youth (e.g. teenagers’ parents);
        -   Communities (through less incentives for youth to engage in violent and risky behaviours);
        -   Central and local government (through potentials for economic returns - e.g. more self employment
            opportunities for young people; potentials for reducing expenditures - e.g. linked to juvenile
            delinquency, public health issues including the prevention of youth alcoholism);
        -   Civil society at local and community level working for and with youth

Note: The World Bank has extended the deadline for implementation of the JSDF Grant „Youth Socio-
Economic Empowerment through Business Development and Provision of Innovative Social Services”
(TF054222) and the reallocation of funds under this Grant.

Further to the letter of 30 July 2008, whereby the International Development Association was requested to
extend the deadline of the above-mentioned grant, the Bank set 31 December 2009 as a final date for
purposes mentioned in Section 4.03 of the Grant Agreement between the Republic of Moldova and the
World Bank of 6 December 2004, countersigned on 16 December 2004.

The project extension was possible due to the launch of the UNICEF project „Businesses Development for
Youth Economic Empowerment in the Republic of Moldova” (phase II, YSEEP). This project aims at
supporting young people aged between 18 and 30 years from all rural areas and small towns of the country
(except for Chisinau and Balti) in activities that would empower them socially and economically by setting
up a business and providing services in the communities.

This project has the following objectives:
    (i)      61 businesses, managed by young people, to be operational by the end of 2008;
    (ii)     The institutional and human capacities on gender equality will be strengthened, providing thus
             equal opportunities for setting up businesses both for girls/women and boys/men;
    (iii)    A concept on the establishment of a revolving fund for the development of businesses for young
             people will be developed by 2008 on the basis of the experiences accumulated during the
             implementation of other projects in this area.

Component A. Support to Civil Society Initiatives and Outreach Activities
The following activities are carried out within this component:
    (i)      a competitive grants program which for the Local Youth Councils;

Contracts signed with 20 LYCs’ small grants beneficiaries
During the reporting period the project signed 20 new contracts for the small grant program on social
entrepreneurship for the Local Youth Councils. All contracts have been authorized by the Deputy Minister of
Education and Youth, Mrs. Galina Bulat. 20 LYCs, small grants beneficiaries, represent 16 rayons (Drochia,
Dubasari, Soroca, Soldanesti, Glodeni, Ialoveni, Briceni, Floresti, Telenesti, Ungheni, Basarabeasca, Falesti,
Donduseni, Criuleni, Rezina, Singerei). (Annex 1_20 LYCs_Contracts)

The total amount of 20 small grants, according to the signed contracts, constitutes 141206 MDL. One grant,
in average, amounts to 7065,3 MDL. The local contribution (LPA + Economic Entities + Civil Society)
constitutes 76499 MDL. The biggest contribution accounts 15200 MDL. 2 projects will be implemented
without local financial support. The average local contribution does not exceed 3825 MDL. At the end of the
1st Quarter 2009, 85% of grants in the amount of 119930 MDL were disbursed for implementing project
activities. (Annex 2_LYCs_Grants Disbursement)

According to the types of activities, 2 LYCs are implementing projects in active citizenship, 3 promote
health activities, 4 conduct communication activities (with 3 school radios); 8 LYCs implement environment
projects and 3 sport activities.

Workshop “Efficiency and results – sustainable partnership between the LYC and LPA”
The small grants program started with a workshop “Efficiency and results – sustainable partnership between
the LYC and LPA”, which was conducted on February 11, 2009 at the Government Canteen. The main
purpose of the workshop constituted the capacity building of the adult coordinators with respect to
implementation of project activities, reporting, collecting indicators and active youth involvement in
activities. 20 LYCs adult coordinators attended the event. The workshop agenda contained the following
topics: the project presentation, brief information about the LYCs profile, reporting, indicators to be
collected. Procurement aspects were also emphasized as well as the financial reporting. The workshop was
successful, as the LYCs coordinators received all the information related to the project implementation. All
issues related to project implementation were discussed. (Annex 3_List of participants_Workshop)

Follow up on LYCs activities
During the reporting period the project followed up on all 47 LYCs’ activities (including those 27 LYCs that
signed contracts in 2008). LYCs received consultancy regarding the carried activities, constraints faced, and
assistance in preparing and submitting the Progress Reports and Final Reports. More than 25 M&E visits
were conducted by the 5 regional consultants in M&E. The consultants’ team conducted discussions with
local youth counselors, adult coordinators and LPA representatives and applied the developed
questionnaires. The questionnaires contain questions like: information about LYCs, data about LYCs’
members, projects implemented, youth involvement in projects implementation, future plans, impediments,
partnership relations with LPAs and implementing NGOs. The M&E reports on 47 LYCs – small grant
beneficiaries will be developed at the end of April 2009. (Annex 4_ M&E Questionnaires_LYCs)

    (ii)    outreach, promotion and communication:

Success story on projects implemented by LYCs
The first success story of the small grants program for the Local Youth Councils has been disseminated on
the project link The article reflects the positive results achieved by the
LYC from Lozova, Straseni during the project implementation „Youth and the busienss idea in favour of
health, through phitotherapy”

The project impact comes to sustain the achievements of JSDF objectives. The LYC succeeded to strenghen
the partnership with LPA, educational institutions and local economic entities. During the project
implemation young people in partnership with teachers managed to share knowledge with their peers about
the healthy life style and promote folk medicine, as well as aquired skills on fundraising, launched
entrepreneurial activities at community level. One of the most important results achieved, within the project,
reflects the yong people’s tolerancy and symphaphy towards people with disasbilities from community. 30
youngsters, LYC’s members, teachers, doctors and volunteers collected over 27 kg of medicinal herbs,
therfore supplimenting the project budget with 4200 MDL, as well as managed to distribute a part of them to
28 people suffereing of severe health diseases.

The project complexity also derives from the good mixture of educational-training-communication activities,
team work and cultural activities, that qualified the project as innovative and with good lessons to be learned
in future. The success story of the project is placed on the project kink , under the colomn Small Grants
Program for Local Youth Councils – Detailed results, which periodically will reflect other success stories of
the 47 LYCs - beneficiciaires of the small grants program. (Annex 5_ Success Story LYC_Lozova_Straseni)

Component B: Business development for youth economic empowerment
During the 1st Quarter 2009 the Development Agencies (ACA, MEGA, CCA, CDR) focused their activities on
promotional campaigns, regional trainings, development of business plans and loan intermediation with

Promotional Campaigns
During the reporting period 88 Promotional Campaigns have been organized in the following rayons of the
Republic of Moldova: Edinet, Briceni, Ocnita, Soroca, Drochia, Floresti, Donduseni, Stefan Voda, Cahul,
Cantemir, Cimislia, Leova, Taraclia, Singerei, Falesti, Ungheni. 1195 young people attended the
promotional campaigns and got informed about the project, its benefits and participation requirements.

During October 2008 - March 2009 the DAs cumulatively organized 291 proportional campaigns in 34
rayons, including Chisinau. Promotional campaigns’ beneficiaries were 4159 young people and adults
received information about project participation requirement and benefits. Below is the table representing the
conducted promotional activities, part of the project action plan.

Table 1. Project promotional campaigns conducted during 4Q 2008 and 1Q 2009.

                                  2008                                 2009
    Rayon                                                                                    promotional
                             IV QUARTER                           I QUARTER                                participants
                    Promotional          Participants    Promotional          Participants
                     campaigns                            campaigns

   Glodeni               4                   65                                                  4             65

    Rîşcani             10                  134                                                  10           134

   Sîngerei                                                  11                   78             11            78

    Făleşti                                                  7                    58             7             58

   Ungheni               2                   34              11                  177             13           211

   Nisporeni            10                  130                                                  10           130

   Călăraşi             11                  140                                                  11           140

    Briceni             10                  151              5                    76             15           227

    Edineţ              10                  156              4                    60             14           216

    Ocniţa              10                  157              6                    89             16           246

    Soroca                                                   13                  201             13           201

   Drochia                                                   6                    89             6             89

    Floreşti                                                 5                    75             5             75

  Donduşeni                                                  2                    28             2             28

 Ştefan Vodă                                                 4                    55             4             55

    Cahul               12                  224              5                    92             17           316
   Cantemir             10                  174              2                    21             12           195
   Căuşeni              10                  169                                                  10           169
 Cidîr-Lunga             5                   62                                                  5             62
   Cimişlia              4                   60              2                    24             6             84
    Comrat               7                   90                                                  7             90

   Hînceşti             2                 28                                              2            28

    Leova               6                 71                1              29             7            100
   Taraclia             5                 65                4              43             9            108
   Anenii Noi           6                  93                                             6            93

  Mun.Chişinău          5                  37                                             5            37

    Criuleni            9                 166                                             9           166
    Dubasari            7                  92                                             7            92
    Ialoveni            8                 108                                             8           108
     Orhei              14                144                                             14          144
     Rezina             6                  88                                             6            88
   Şoldăneşti           8                 107                                             8           107
    Teleneşti           5                  96                                             5            96
    Străşeni            7                 123                                             7           123

    TOTAL              203               2964              88             1195           291          4159

Regional Trainings in Business Development
11 regional trainings in Business Development have been organized in the following rayons: Floresti,
Stefan Voda, Edinet, Singerei, Falesti, Nisporeni, Straseni, Cahul, Leova, Comrat. During the training
courses 190 young people, project beneficiaries, have acquired knowledge in organizational management,
marketing, taxes, basic accounting, production, business plans development, etc.

Therefore during November 2008 – March 2009, 28 regional trainings were conducted, out of which, 17
were held during the 4th Quarter 2008 and 11 during the reporting period. 447 young people attended the
training courses (283 boys and 164 girls) from 28 rayons of Moldova (including Chisinau). All young
people who attended the training courses were interested in launching a business and the training course was
provided during 3 consecutive days.

It should be mentioned that the trained groups were quite inhomogeneous both at educational level and
practical experience as well as their social status. However, the trainers managed to apply a complex
approach to the discussed subjects, having also reflected specific case studies of economic activities. During
the training sessions young people manifested interest and openness towards discussed topics and many of
them reflected entrepreneurial practices through their own business ideas. This represented a motivational
factor for the potential entrepreneurs. The participants appreciated the training materials as well as the
timeframe, although young people with limited or no skills in economic background mentioned that more
training on specific topics like accounting, marketing would have been even more appreciated.

During the training courses young people managed to assess the applicability of different business ideas
based on potential success and failures that could influence their launch. In conclusion, it would be important
to mention the positive impact of the training process on young people and hopefully their willingness to
apply the acquired skills in practice. Young people that benefited of trainings and whose business plans

would be approved by the PFIs will benefit of additional post-creation assistance through specialized
trainings, consultations, and M&E visits.

Business plans developed
DAs managed to develop in total 50 Business Plans out of which around 30 have been accepted by the
Participating Financial Institutions.
Table 2 Business Plans developed by 4 DAs during the 1Quarter 2009
#     DA        Rayon       Locality     beneficiary        Business              Founder   Type of activity

1     CCA       Glodeni     Cuhnesti     Ureche Alina       IE "Ureche Alina"     1         Beauty shop
2     CCA       Glodeni     Ustia        Crudu lilia        IE "Crudu Lilia"      1
                                                            FH "Bodean                      Agriculture /
3     CCA       Glodeni     Iabloana     Bodean Aureliu
                                                                                            technical equipment
                                         Popencu            FH "Popencu                     Agriculture /
4     CCA       Riscani     Zaicani
                                         Galaction          Galaction Vasile"
                                                                                            technical equipment
                                         Stanescu           FH "Stanescu                    Agriculture/panel
5     CCA       Riscani     Varatic
                                         Danisiela          Danisiela Victor"
                                                            FH "Ropot Natalia               Agriculture
6     CCA       Riscani     Varatic      Ropot Natalia
                                                            IE "Garaşciuc
7     CCA       Riscani     Riscani      Garasciuc Diana
                                                                                  1         Beauty shop
                                                                                            Agriculture /
                                         Glodeanu           FH "Glodeanu
8     CCA       Ungheni     Manoilesti
                                         Vladislav          Vladislav Anatolii"
                                                                                  1         plantation of apple
                                                            Ltd "Petropit-                  Production of
9     CCA       Calarasi    Pituşca      Pituşcan Petru
                                                                                            combined fodder
                                                            FH "Spinu Andrei
10    CCA       Singerei    Chiscareni   Spinu Andrei
                                                                                  1         Beekeeping
                                                            Ltd "VERLAXI -
11    CCA       Falesti     Falesti      Svediuc Serghei
                                                                                  1         Trade activities
                                                            Ltd "Trimobil
12    CCA       Falesti     Falesti      Vasian Nicolae
                                                                                  1         Trade activities
                                         Muruziuc           IE "Muruziuc
13    CCA       Falesti     Falesti
                                         Nadejada           Nadejda"
                                                                                  1         Grocery
                                                            FH "Buza Valeriu
14    CCA       Nisporeni   Balauresti   Buza Valeriu
                                                                                  1         production in
15    CCA       Calarasi    Sipoteni
                                                            Ltd "Agroservad”      1         production / panel
                                                                                            Production and
                Stefan                                      Ltd “Terra Arb
16    CDR
                            Tudora       Rosca Ana
                                                                                  4         trade of ornamental
                                                            IE “Mititelu
17    CDR       Briceni     Larga        Mititelu Ludmila
                                                                                  1         Trade activities
                                                                                            Production of
                                                            IE “Golban
18    CDR       Drochia     Drochia      Golban Vadim
                                                                                  1         construction
                                                            IE “Stologan
19    CDR       Floresti    Ciutulesti   Stologan Marin
                                                                                  1         Furniture production
                Stefan                   Gomeniuc           IE “Gomeniuc
20    CDR
                                         Mihail             Mihail”
                                                                                  1         Fortran production
                Drochia                                     IE “Ursachi
21    CDR
                                         Ursachi Elena
                                                                                  1         Trade of spare parts
                                                            IE “Donea
22    MEGA      Hincesti    Boghiceni    Donea Svetlana
                                                                                  1         production in
23    MEGA      Hincesti    Boghiceni    Donea Ion          IE “Donea Ion”        1         Rabbit breeding
                                                                                            Transportation of
                                                            FH “Berlinschi Ion              vegetable
24    MEGA      Causeni     Tanatari     Berlinschi Ion
                                                                                            production and
                                         Berlinschi         Ltd “Romeocom-                  Commercial
25    MEGA      Causeni     Tanatari
                                         Roman              Design”
                                                                                            adverting services
                                                                                            Production and
                                                            FH “Puica Ion -
26    MEGA      Hincesti    Tocuz        Puica Ion
                                                                                  1         trade of sunflower
                                                                                            seed- oil
                Hincesti                                    Ltd. “Ariana                    Transportation
27    MEGA
                                         Dubceac Marina

                                                               IE “Bozianu
28    MEGA        Hincesti    Mingir        Bozianu Mihail
                                                                                     1   Beekeeping
29    MEGA
                                            Arbuz Dionisie     Ltd. “Radenauto”      1   Taxi services
                                                               IE “Berlinschi
30    MEGA        Causeni     Tanatari      Berlinschi Ion
                                                                                     1   Hairdresser’s Shop
                                                               FH “Cislari Victor        Mechanized
31    MEGA        Causeni     Chircaiesti   Cislari Victor
                                                               Ilie - Chircaiesti”
                                                                                         agricultural services
                  Leova                                                                  Fitness services
32    MEGA
                                            Profir Igor        IE “Profir Igor”      1
                                                                                         (sport equipment)
                                                               FH “Eftodi
33    MEGA        Cantemir    Tartaul       Eftodi Valeriu
                                                                                     1   production in
34    MEGA        Cantemir    Visniovca     Topal Maria        IE “Topal Maria”      1   Swine breeding
                  Leova                     Badarau            Ltd. “Alexol-             Bookkeeping
35    MEGA
                  town                      Alexandru          Consult”
36    MEGA        Comrat      Dezginja      Chiciuc Ivan       IE “Chiciuc Ivan”     1
                  Comrat                    Avramov            Ltd. “YOL ARABA
37    MEGA
                  town                      Alexandr           TUR”
                                                                                     1   Taxi services
                  Comrat                    Carabadjac         IE “Carabadjac            Mushrooms
38    MEGA
                  town                      Piotr              Piotr”
39    ACA         Ialoveni    Razeni        Nicula Sergiu      IE “Nicula Sergiu”    1   Dental services
                  Anenii                                       IE “Bondari               Fitness services
40    ACA
                  Noi town
                                            Bondari Andrei
                                                                                         (sport equipment)
                                                               Ltd. “Rural
41    ACA         Rezina      Preciste      Belibov Anatolie
                                                                                     1   PVC production
                  Anenii                                       Ltd. “Bramac
42    ACA
                              Chetrosu      Doloscan Sergiu
                                                                                     1   Trade activities
                                                               IE “Stoler                Information and
43    ACA         Rezina      Papauti       Stoler Mariana
                                                                                         training centre
44    ACA         Orhei       Seliste       Alexandru Lilian   Ltd. “Lozidin”        1   Internet café
                                            Pascaru            IE “Pascaru
45    ACA         Orhei       Lucaseuca
                                            Octavian           Octavian”
                                                                                     1   Internet café

46    ACA         Ialoveni    Rusesti       Catanoi Mihail     IE “Catanoi           1
                                                                                         Rabbit breeding
47    ACA         Telenesti   Banesti       Popovici Sergiu    Ltd. “Serpavis”       1   PVC production
48    ACA         Anenii      Gura          Pislaru Denis      FH “Pislaru           1   Mechanized
                  Noi         Bicului                          Denis”                    agricultural services
49    ACA         Straseni                  Bahna Svetlana     Ltd. “Decorator       1
                  town                                         grup”
50    ACA         Chisinau    Ciorescu      Popovici Petru     Ltd “Prosolid         1
                                                                                         Fortran production
                  mun.                                         Grup””

During the reporting period 3 businesses have been credited by FinComBank and offered the grant portion
by the project:
        1) FH “Stanescu Danisiela Victor” located in Riscani, Varatic. Business purpose: production and
        trade of agricultural products. Equipment to be procured: A panel track “Mercedes” to transport
        vegetable production to local and regional markets. Investment value -100000 MDL (bank loan:
        40 000 MDL; grant: 50 000 MDL and personal contribution: 10 000MDL). Interest rate – 15,50%,
        loan payment period 4,3 years and a grace period of 5 months.

        2) IE “Crudu Lilia” located in Glodeni, Ustia. Business purpose: transportation services for
        passengers to the following local routes: Ustia-Glodeni and Ustia – Falesti routes. Equipment to be
        procured: 2 second hand buses “LAZ”. Investment value 100 000 MDL (bank loan: 40 000 MDL;
        grant: 50 000 MDL and personal contribution: 10 000MDL). Interest rate – 15,50%, loan payment
        period 4,3 years and a grace period of 6 months.

        3) FH “Popencu Galaction Vasile” located in Riscani, Zaicani. Business purpose: processing of farm
        land and provision of mechanized services in agriculture. Equipment to be procured: second had

         tractor “MTZ-80” and a motor pump Honda WH 20K1. Investment value 100 000 MDL (bank loan:
         40 000 MDL; grant: 50 000 MDL and personal contribution: 10 000MDL). Interest rate – 15,50 %,
         loan payment period 4,3 years and grace period – 7 months.

Table 2 Working places and average salary
                                                      No of working places to be    Average salary to be paid
              Credited businesses          Manager
                                                               created                      (MDL)
 FH “Stanescu Danisiela Victor”                   F               1                           1720
 IE “Crudu Lilia”                                 F               4                           1800

 FH “Popencu Galaction Vasile”                 M                  1                           2500

As a result of these 3 investment projects communities will benefit of the following:
         New working places
         New income revenues to the local budgets
         Access to services and new benefits for citizens (2 new bus routes [Ustia-Glodeni and Ustia-
          Falesti], agribusiness opportunities)
         High quality agricultural products

7 new business proposals were being assessed by the Credit Line Directorate and were due to be paid in
April 2009:
         1) Ltd „Ade Compact Grup” located in Ialoveni, Varatic. Business purpose: production of
         construction materials. Investment value 103665 MDL (bank loan: 41 500 MDL; grant: 51 765 MDL
         and personal contribution: 10 400MDL). Interest rate – 18,35%, loan payment period 3,5 years and a
         grace period of 6 months. PFI – Moldova Agroindbank.

         2) IE „Bondari Andrei” located in Anenii Noi town. Business purpose: provision of services.
         Equipment to be purchased: sport and fitness equipment. Investment value 101636 MDL (bank loan:
         40 654 MDL; grant: 50 818 MDL and personal contribution: 10 164 MDL). Interest rate – 18,55%,
         loan payment period 3 years and a grace period of 4 months. PFI – Moldova Agroindbank.

         3) Ltd. „Bramac Com” located in Anenii Noi, Chetrosu. Business purpose: trade activities.
         Equipment to be purchased: refrigerators. Investment value 160 166 MDL (bank loan: 42 074 MDL;
         grant: 52 592 MDL and personal contribution: 65 500 MDL) Interest rate – 17,50%, loan payment
         period 4,5 years and a grace period of 6 months. PFI – Moldova Agroindbank

         4) FH „Spinu Andrei Nicolae” located in Singerei, Chiscareni. Business purpose: beekeeping.
         Equipment to be purchased: beehives. Investment value 100000 MDL (bank loan: 41 500 MDL;
         grant: 51 765 MDL and personal contribution: 10 400MDL). Interest rate – 16,05%, loan payment
         period 4,3 years and a grace period of 6 months. PFI – Moldova Agroindbank

        5) Ltd. „MARDIPROD” located in Chisinau mun. Singera. Business purpose: production and trade
        of metal lath. Metal lath equipment to be purchased. Investment value 103800 MDL (bank loan:
        41 500 MDL; grant: 51 900 MDL and personal contribution: 10 400MDL). Interest rate – 16,80%,
        loan payment period 3 years and a grace period of 6 months. PFI – Moldova Agroindbank

        6) FH „Pislari Denis” located in Anenii Noi, Gura Bicului Business purpose: processing of farm land
        and provision of mechanized services in agriculture. Equipment to be procured: second hand tractor
        “MTZ-80”. Investment value 104000 MDL (bank loan: 41 600 MDL; grant: 52 000 MDL and
        personal contribution: 10 400 MDL). Interest rate – 17,80%, loan payment period 2,75 years and a
        grace period of 1 month. PFI – Moldova Agroindbank.

        7) FH “Ropot Natalia” located din Riscani, Varatic. Business purpose: vegetable production.
        Equipment to be procured: Drip irrigation system. Investment value 102 190 MDL (bank loan:
        40 876 MDL; grant: 51 114 MDL and personal contribution: 10 200 MDL). Interest rate – 15,05%,
        loan payment period 2,6 years and a grace period of 5 months. PFI – FinComBank. (Annex 6_ 4
        Progress Reports_1Q2009_DAs)


The main issue faced by project beneficiaries related to the collateral requested by the participating financial
institutions. PFIs requested collateral for the entire amount of investment, both grant portion and bank loan,
despite the project proposal provisions related to grants that: “are aimed to help building equity that could in
turn be used as collateral for the young entrepreneur to access credit from financial institutions”.

This requirement has been imposed by the PFI as the Credit Line Directorate requested the grant portion
back in case of early reimbursement of the loan portion, non-implementation of the project and the business
or failure of loan reimbursement according to the timeframe or later than 5 days. In these cases the amount of
grant needed to be reimbursed by the beneficiary to the PFI that had to reimburse it to CLD. The CLD would
use the funds to complete the revolving created within RISP2, available for financing other new sub-grants
for the „Business development for youth economic empowerment” project, therefore ensuring project
sustainability. Due to this requirement, the project beneficiaries encountered difficulties in providing the
collateral and there was a serious assumption that many business ideas would not come true. (Annex 7
_Amendment no.1, December 9, 2008 to the Rural Credit Guidelines no. 1-r RISP2, 05.10.2007).

These conditions delayed the project implementation, as its beneficiaries could not meet the PFI requests
related to collateral, which generated a huge number of complains from beneficiaries and donors.

This constraint has been settled as a result of several meetings with representatives of donors’ community,
line ministries, CLD and financial institutions. As a result, the amendment no.1, December 9, 2008 to the la
Rural Credit Guidelines no. 1-r RISP2, 05.10.2007 was partially modified. Below are the modifications
introduced to the amendment:

    1. Investment grant will build equity capital and will be used for investment – procurement of assets,
        which will help create collateral to obtain credit from financial institutions. PFI will request
        collateral for the offered credit.
    2. If beneficiaries do not comply with project’s requirements or if they misuse funds, according to
        provisions to be included in the grant agreement, by the financial institution, they will be required to
        repay the full grant portion. Under these circumstances the beneficiary will reimburse the grant
        portion to the PFI. PFI will announce the CLD and transfer the grant portion to CLD, which will fill
        in the revolving fund for RISP2.
    3. PFIs and beneficiaries will sign a grant agreement, which will stipulate the situations when the
        beneficiary will be obliged to reimburse the grant portion. PFI does not bear responsibility for
        collecting the grant portion. The direct responsibility of the beneficiary is to reimburse the grant
        portion to PFI within one month after the delinquencies were discovered. The Development
        Agencies, contracted by the program, will be responsible to monitor and evaluate all enterprises
        financed within the project, therefore ensuring a supervision of the financed enterprises and
        identification of any unconformities.
    4. In case of business failure or suspense of activity, PFI will be responsible to recover only the loan
        portion from the beneficiary and is not responsible to recover the grant portion provided by the
        donors, which was offered to build equity that could in turn be used as collateral to access credit
        from PFI. (Annex 8_ Modification no 1 to the Amendment no. 1 as of December 9, 2008 to the la
        Rural Credit Guidelines no. 1-r RISP2, 05.10.2007)

Four Participating Financial Institutions (Banca de Economii, Moldova Agroindbank, Fincombank,
Moldincombank) have signed the modifications. The introduced modifications to the amendment will fasten
the launch of new youth led businesses in rural areas.

Socio-economic Impact assessment of youth led micro-enterprises created with project support
TOR on “Socio-economic impact assessment of the youth led micro-enterprises created with project support”
has been developed. A local institutional consultant / concultancy agency will be contracted to undertake the
socio-economic impact assessment of the youth led micro-enterprises created with the support of the
“Business Development for Youth Economic Empowerment” project.

The assignment has two major objectives:
    I. Socio-economic impact assessment of the small enterprises launched with the program support;
   II. Assessment of the financial mechanism applied within the project.

The consultancy agency will conduct the following taks:
       Develop the Questionnaire on the Socio-Economic Impact assessment of the micro enterprises
        created within the program.
       Apply the questionnaire to around 60 businesses created with program support and collect all
        relevant data for the Impact Assessment Report;
       Organize 4 regional Focus Groups to discuss in depth with entrepreneurs their economic activities in
        the region;
       Produce the Impact Assessment Report.
The impact assessment is envisaged to be conducted during August-October 2009. (Annex 9_TOR_Impact

Activities Planned for Quarter 2, 2009

       Provision of assistance in developing business plans for project beneficaires
       Credit intermediation with PFIs
       Post-creation assistance to launched businesses
       Monitoring and Evaluation visits to newly created businesses
       Procurement arrangemetns for the Socio-economic Impact assessment of youth led micro-enterprises
        created with project support

Component C: Development and use of gender capacity in youth activities

TOR on “Gender Capacity Building and Mainstreaming” has been developed and approved. An international
consultant will be contracted to conduct a Training of Trainers to strengthen the local / national trainers’
capacities in Gender issues.

The international consultant will be responsible to:
       Develop the training curricula for the “Training of Trainers” (TOT) on Gender issues, techniques of
        presenting the human factor in youth strategies and ensure equal employment opportunities for
        girls/women and boys/men;
       Develop a Training Course Support for Trainers on topics learned during the TOT, which will help them
        organize and replicate similar learning sessions in further activities.
       Prepare and facilitate the TOT for approximately 20 local / national trainers;
       Evaluation of delivered trainings.

Expected outputs:
    1. Training curricula developed and approved
    2. TOT course support developed
    3. TOT implemented
    4. TOT Evaluation
    5. Training report
The TOR has been approved by the World Bank and procurement procedures will be initiated in April. (Annex
10_TOR_TOT Gender)

Component D: Participatory monitoring and evaluation of youth activities

M&E System, developed by the International Consultant Ravi Venkataraman, was filled in with data on

project activity for 2008. The M&E system reflects the number of beneficiaries, gender, age, occupation,
residence, category, staff employed in YRCs and NGOs during 2008. At the basis of this exercise stood the
M&E visits conducted by the 5 regional M&E consultants, questionnaires filled in, project proposals, and
activity reports.

The system also reflects the LYCs small grants beneficiaries: number of LYCs involved in small grants
projects, their age, gender, number of adult coordinators, number of volunteers, LYCs’ members, LPAs
involved in projects, local contribution (financial, in kind) grant amounts, types of projects, etc.

The promotional campaigns, trainings conducted by the DAs in 2008, number of participants, gender,
residence and the consolidated data on economic component are also represented.
The system contains the information on conducted trainings and workshop during 2008: number of
participants, gender, residence, etc. The data for 2009 will be collected and updated on quarterly and
semester basis. (Annex 11_MIS_2008)

Component E: Involvement of regional youth representatives (focal points) in YSEEP implementation,
grant audit
During the reporting period 5 regional consultants on Monitoring and Evaluation conducted more than 20
M&E visits to collect the information on progress made by the LYCs’ small grants beneficiaries. The
consultants’ team conducted discussions with local youth counselors, adult coordinators and LPA
representatives and applied the developed questionnaires. The questionnaires contain questions like:
information about LYCs, data about LYCs’ members, projects implemented, youth involvement in projects
implementation, future plans, impediments, partnership relations with LPAs and implementing NGOs. The
M&E repots on 47 LYCs – small grants beneficiaries will be developed till the end of April 2009. (Annex
4_LYC_M&E Questionnaires)

Annex 1_20 LYCs_Contracts
Annex 2_LYCs_Grants Disbursement
Annex 3_List of Participants_Workshop
Annex 4_ M&E Questionnaires_LYCs
Annex 5_ Success Story LYC_Lozova_Straseni
Annex 6_ 4 Progress Reports_1Q2009_DAs
Annex 7_Amendment no.1, December 9, 2008 to the Rural Credit Guidelines no. 1-r RISP2, 05.10.2007
Annex 8_ Modification no 1 to the Amendment no. 1 as of December 9, 2008 to the la Rural Credit
Guidelines no. 1-r RISP2, 05.10.2007
Annex 9_TOR_Impact Assessment
Annex 10_TOR_TOT Gender
Annex 11_MIS_2008


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