Armenia: Women's Entrepreneurship Support Sector Development Program

Sovereign Project | 45230-001 Status: Active

Summary

ADB is helping Armenia promote the development of women entrepreneurs and micro, small, and medium-sized enterprises. The project will strengthen the business environment and Armenia’s Small and Medium Entrepreneurship Development National Center, improve access to finance for these businesses by funding participating financial institutions, and provide business skills training.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents


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Project Name Women's Entrepreneurship Support Sector Development Program
Project Number 45230-001
Country Armenia
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2922-ARM: Women's Entrepreneurship Support Sector Development Program
Asian Development Fund US$ 20.00 million
Loan 2923-ARM: Women's Entrepreneurship Support Sector Development Program
Asian Development Fund US$ 20.00 million
TA 8200-ARM: Capacity Building for Women's Entrepreneurship Support
Technical Assistance Special Fund US$ 600,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Finance - Finance sector development - Inclusive finance - Small and medium enterprise finance and leasing

Gender Equity and Mainstreaming Gender equity
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Using indicator of Global Gender Gap Report (World Economic Forum), the percentage of firms with female participation in ownership was 25% in end 2014 (2015 report) , vs 32% in end 2012 (2013 Report)

The macroeconomic context may be affecting business opportunities and womens' economic participation.

Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Women Entrepreneurship Development Strategy was adopted by MOE.

6000 MSMEs received support from SME DNC of Armenia, of which 2400 are women entrepreneurs (40%). Innovative support mechanisms, including a gender-sensitive value chain approach and a mentoring program for women entrepreneurs have been successfully piloted.

An interagency coordination working group on women's entrepreneurship was formed and had total of three meetings. A joint time bound action plan has been developed.

SME DNC has conducted 16 trainings of which 7 were implemented with the support of ADB's Technical Assistance. They have reached 250 new participants, 40% of them women.

As of March 2016, $8 million equivalent had been disbursed to targeted MSMEs. The remaining undisbursed amount under the financial intermediation loan ($12 million) is expected to be disbursed within 2016.

Geographical Location National

Safeguard Categories

Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C

Summary of Environmental and Social Aspects

Environmental Aspects

The policy-based loan will not trigger safeguard policies and is categorized as C for environment.

The FIL is categorized as Financial Intermediary (FI) for environment.

Subprojects categorized as A for environment will not be eligible for financing under this program.

Activities included in ADB's Prohibited Investment Activities List are excluded.

Each PFI will have in place or establish an appropriate environmental and social management system (ESMS) acceptable to ADB to ensure proposals for subprojects are screened for environment and social impacts and (if applicable) mitigating measures are in place.

The PFIs under the Project are separated into two groups to facilitate implementation. The first group will finance subprojects that are Category B for environment and Category C for indigenous peoples and involuntary resettlement. The second group will finance subprojects that are Category C for environment, indigenous peoples and involuntary resettlement. This means PFIs under the first group will be required to meet the condition for withdrawal in paragraph 2 of Schedule 3 of the Loan Agreement, while that condition is amended such that PFIs under the second group will be required to meet it when they wish to finance subprojects that are Category B for environment and Category C for indigenous peoples and involuntary resettlement. For PFIs under the second group that will not have an ESMS nor designated staff to screen prospective subprojects for safeguard purposes, the project management unit of German-Armenian Fund of the Borrower will carry out the screening of prospective subprojects.

Involuntary Resettlement

The policy-based loan will not trigger safeguard policies and is categorized as C for involuntary resettlement.

The FIL is categorized as Financial Intermediary (FI) (treated as C) with respect to involuntary resettlement.

Subprojects categorized as A or having involuntary resettlement impacts will not be eligible for financing under this program.

When there is a need from the MSME subborrowers to acquire fixed assets under the credit loan activities, the acquisition must be based on the willing buyer and willing seller mechanism and not involve involuntary land acquisition under eminent domain. Such transaction must be supported with the relevant due diligence documents from the PFIs and the clients and recorded in the program's ESMS.

Indigenous Peoples

The policy-based loan will not trigger safeguard policies and is categorized as C for indigenous peoples.

The FIL is categorized as Financial Intermediary (FI) (treated as C) with respect to indigenous peoples.

Stakeholder Communication, Participation, and Consultation
During Project Design Consultations and discussions were conducted with the program public and private key stakeholders. A strategy was developed to continuously communicate the program objectives to these stakeholders, during program implementation.
During Project Implementation

The key stakeholder communication objectives of the program are:

(i) To inform potential and existing women entrepreneurs and MSMEs of the opportunities that the program offers including capacity building activities and increased access to credit resources;

(ii) To empower potential women entrepreneurs and encourage them to enter into business ventures;

(iii) To strengthen MSMEs official network and create a learning environment through sharing of experiences; and

(iv) To create public support for the program.

These objectives will be met through the various components and activities of the program, as detailed below.

Tranche conditions under the policy-based loan will support communication through improved access to information and training programs to women entrepreneurs and MSMEs. These include:

(i) Implementing Participating Appraisal of Competitive Advantages exercises to define target groups by sector and region;

(ii) Conducting annual surveys of women entrepreneurs and MSMEs to identify needs and effectiveness of support services provided, including lessons learned and opportunities to be developed for women;

(iii) Implementing an action plan for developing women entrepreneurs in identified sectors;

(iv) Improving SME DNC website and online market place to meet the specific needs of women entrepreneurs;

(v) Providing start-up training programs;

(vi) Implementing awareness campaigns about business development resources;

(vii) Using information and communication technologies to increase the reach of start-up campaigns;

(viii) Piloting a mentorship network for women entrepreneurs; and

(ix) Updating and expanding the SME DNC database to include sex disaggregated data.

The Gender Action Plan, through support of technical assistance, will support communication to women entrepreneurs and MSMEs. Actions include:

(i) Implementing action plans linked to National Strategy of Small and Medium Entrepreneurship Development targeted at women entrepreneurs and MSMEs;

(ii) Implementing public awareness campaigns supporting women entrepreneurship;

(iii) Training SME DNC and participating financial institutions on gender awareness;

(iv) Improving availability of loan guarantees to women; and

(v) Increasing outreach and tailoring training and business development services for women entrepreneurs and MSMEs.

ADB will communicate information about this program and the outcome of this program through its publications, presentations and on its website. ADB will also communicate with the program's internal stakeholders (MOF, MOE, CBA, PMU GAF, SME DNC, PFIs and MSME subborrowers) through written documents. MSME subborrowers would provide information at the time of subloan application and would have personal follow-up interactions with the PFIs. PFIs would communicate with ADB the FIL status through submission of quarterly progress reports to PMU GAF, which it will in turn, forward to ADB. PFIs can also communicate to their staff through training programs, sensitization programs and workshops, to MSME subborrowers through public campaigns.

Business Opportunities

Consulting Services

The policy-based loan and FI loan do not have consultancy requirement.

The technical assistance (TA) for Capacity Building for Women's Entrepreneurship Support will support the program. It will have two outputs: (i) increased capacity of the Small and Medium Entrepreneurship Development National Center (SME DNC), project management unit of the German-Armenian Fund (PMU GAF), and participating financial institutions (PFIs) to support women entrepreneurs; and (ii) strengthened awareness and technical capacity of women entrepreneurs and business support organizations to ensure women entrepreneurs can benefit from increased credit resources under the financial intermediation loan (FIL) component. The TA is estimated to cost $630,000. ADB will provide $600,000 from its Technical Assistance Special Fund (TASF-IV), and the government will provide counterpart support in the form of counterpart staff, office space, workshop venues, radio and television time for communication campaigns, and other in-kind contributions. The TA will be implemented over 3 years during program implementation. The Ministry of Economy (MOE) (through the SME DNC) will be the implementing agency for the TA. ADB and the SME DNC will jointly review implementation progress. The TA will require services of three international consultants (9 person-months total) and eight national consultants (68 person-months total).

Consulting services have already been hired, through a firm, and will continue until 31 December 2016.

Procurement A procurement plan is not required for the policy-based loan and Financial Intermediation loan.

Responsible Staff

Responsible ADB Officer Pamela Wyatt
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance (MOF)
Liana Hunanyan
PRESS@MINFIN.AM
1 Melik Adamyan, Yerevan
Armenia

Timetable

Concept Clearance 26 Jul 2012
Fact Finding 30 Jul 2012 to 13 Aug 2012
MRM 12 Sep 2012
Approval -
Last Review Mission -
Last PDS Update 30 Mar 2016

Loan 2922-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Oct 2012 25 Jan 2013 19 Dec 2013 31 Dec 2017 - 17 Dec 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 25.00 Cumulative Contract Awards
ADB 20.00 25 Oct 2012 19.09 0.00 100%
Counterpart 5.00 Cumulative Disbursements
Cofinancing 0.00 25 Oct 2012 19.09 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Loan 2923-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Oct 2012 25 Jan 2013 19 Dec 2013 31 Dec 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 20.00 Cumulative Contract Awards
ADB 20.00 25 Oct 2012 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 Oct 2012 11.46 0.00 61%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

TA 8200-ARM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Oct 2012 29 Nov 2012 29 Nov 2012 31 Dec 2015 31 Dec 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
600,000.00 0.00 0.00 0.00 0.00 0.00 600,000.00 25 Oct 2012 553,198.27
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory
Title Document Type Document Date
Women‘s Entrepreneurship Support Sector Development Program: Project Administration Manual Project/Program Administration Manual Apr 2016
Amendment to the Project Agreement (PA1) for Loan 2923-ARM (SF): Women's Entrepreneurship Support Sector Development Program Project/Program Agreement Apr 2016
Amendment to the Loan Agreement for Loan 2923-ARM (SF): Women's Entrepreneurship Support Sector Development Program Loan Agreement (Special Operations) Apr 2016
Amendment to the Project Agreement (PA6) for Loan 2923-ARM (SF): Women's Entrepreneurship Support Sector Development Program Project/Program Agreement Apr 2016
Amendment to the Project Agreement (PA2) for Loan 2923-ARM (SF): Women's Entrepreneurship Support Sector Development Program Project/Program Agreement Mar 2016
Amendment to the Project Agreement (PA4) for Loan 2923-ARM (SF): Women's Entrepreneurship Support Sector Development Program Project/Program Agreement Mar 2016
Amendment to the Project Agreement (PA5) for Loan 2923-ARM (SF): Women's Entrepreneurship Support Sector Development Program Project/Program Agreement Mar 2016
Women's Entrepreneurship Support Sector Development Program (Second Tranche): Progress Report on Tranche Release Progress Reports on Tranche Releases Nov 2015
Assessment of Needs for Business Services Among Women Entrepreneurs of Armenia, 2014 Consultants' Reports Dec 2014
WESSDP - Digital Literacy for Women Entrepreneurs of Armenia (2014): Consultant's Report Consultants' Reports Dec 2014
Project Agreement for Women's Entrepreneurship Support Sector Development Project (PA6) Project/Program Agreement Sep 2014
Project Agreement for Women's Entrepreneurship Support Sector Development Project (PA5) Project/Program Agreement Sep 2014
Report on GSVC Exercise in Tumanyan District: Analysis of Tourism Value Chain with Focus on Bed & Breakfast Consultants' Reports Aug 2014
Amendment to the Project Agreement with Closed Joint Stock Company "ACBA-Credit-Agricol Bank" for Loan 2922/2923-ARM: Women's Entrepreneurship Support Sector Development Project Project/Program Agreement Aug 2014
Amendment to the Project Agreement with Open Joint Stock Company "Araratbank" for Loan 2922/2923-ARM: Women's Entrepreneurship Support Sector Development Project Project/Program Agreement Aug 2014
Amendment to the Project Agreement with Closed Joint Stock Company "CARD AgroCredit" Universal Credit Organization for Loan 2922/2923-ARM: Women's Entrepreneurship Support Sector Development Project Project/Program Agreement Aug 2014
WESSDP - Exploring Export Promotion Programs in Armenia: Consultant's Report Consultants' Reports Jul 2014
Amendment to the Loan Agreement for 2923(SFJ)-ARM: Women's Entrepreneurship Support Sector Development Project Loan Agreement (Special Operations) Jul 2014
Women’s Entrepreneurship Support Sector Development Program: Biannual Progress Report Consultants' Reports Jun 2014
Women‘s Entrepreneurship Support Sector Development Program Project/Program Administration Manual Oct 2013
Women‘s Entrepreneurship Support Sector Development Program Procurement Plans Oct 2013
Loan Agreement (Special Operations) for Women's Entrepreneurship Support Sector Development Program Loan Agreement (Special Operations) Jan 2013
Project Agreement for Women's Entrepreneurship Support Sector Development Project (PA4) Project/Program Agreement Jan 2013
Guarantee Agreement (Special Operations) for Women's Entrepreneurship Support Sector Development Project Guarantee Agreements Jan 2013
Project Agreement for Women's Entrepreneurship Support Sector Development Project (PA1) Project/Program Agreement Jan 2013
Project Agreement for Women's Entrepreneurship Support Sector Development Project (PA2) Project/Program Agreement Jan 2013
Loan Agreement (Special Operations) for Women's Entrepreneurship Support Sector Development Project Loan Agreement (Special Operations) Jan 2013
Project Agreement for Women's Entrepreneurship Support Sector Development Project (PA3) Project/Program Agreement Jan 2013
Կանանց ձեռներեցության ոլորտի սատարման և զարգացման ծրագիր : Ծրագրի ամփոփ նկարագիր Translated PDS Nov 2012
Women's Entrepreneurship Support Sector Development Program Reports and Recommendations of the President Oct 2012
Women's Entrepreneurship Support Sector Development Program Gender Action Plans Oct 2012
Women's Entrepreneurship Support Sector Development Program Project/Program Administration Manual Sep 2012

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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