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SECTION C DESCRIPTIONSPECIFICATIONSTATEMENT OF WORK

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Even msmes that are not able to export directly, will have increased opportunities to link into higher value market chains that serve export markets as a

     SECTION C DESCRIPTION/SPECIFICATION/STATEMENT OF

    WORK

C.1.1. Title: New Private Sector Competitiveness and Poverty Reduction and

    Alleviation Activity

    C.1.2. Purpose: The purpose of this contract is to have a measurable impact in reducing poverty in targeted economic corridors in Peru by implementing trade-led, market-focused activities. For two straight Presidential terms, Peru has signaled to the world that it is committed to increase trade and investment to stimulate economic growth and spread the benefits of this growth broadly within the country. To make good on this commitment, the Government of Peru (GOP) must make concerted efforts to meet international standards for trade and create an environment in which Peruvians living in poverty, particularly those in the highlands (Sierra) and Amazon basin (Selva), can link into markets and benefit from the economic opportunities provided by increased trade. One of the U.S.’s highest policy priorities for Peru is to help the GOP down this path and demonstrate that the benefits of increased trade and investment will also bring reductions in poverty. Consequently, USAID seeks a contractor to implement a five-year program targeted to reduce poverty through trade-led growth in the impoverished highlands and jungle areas of Peru.

    While other Mission program focus on macro and micro policy and regulatory reforms to increase trade and investment, this activity focuses on linking micro, small, and medium sized enterprises (MSMEs) to new markets where Peruvian businesses potentially can be competitive. The recently signed U.S.-Peru Trade Promotion Agreement (PTPA), for example, will provide thousands of MSMEs a competitive advantage over MSMEs in other countries for lucrative U.S. markets. Even MSMEs that are not able to export directly, will have increased opportunities to link into higher value market chains that serve export markets as a result of the PTPA, other international trade agreements, and Peru’s progressive macro-economic reforms that

    attempt to level the playing field for international trade and investment. Consequently, this activity will work with MSMEs, key sources of jobs for the poor, within targeted economic corridors (see Definitions Annex) in the Sierra (Andean highlands) and potentially the Selva (Amazon Basin) regions to link them into higher value chains and to create market-driven income and employment opportunities. The PTPA, in particular, will afford new market opportunities; however, the challenge is to ensure that enterprises of all sizes and in different regions of Peru are able to compete successfully in these markets.

    A methodology developed by USAID and implemented extensively in this decade in Peru is a market-led model to be referred to in this Scope of Work as the Poverty Reduction and Alleviation model or simply as the “PRA model” (see Definitions Annex). The PRA model identifies markets first, and then provides strategic and efficient business development services that link MSMEs to these higher value markets and encourages private and public investments to support these value chains. The PRA Model provides Business Development Services (BDS) to organize the supply of products to meet specific market demands. It prioritizes building trust between buyers and producers and among the producers themselves. The PRA model has greatly increased sales and jobs of MSMEs in the targeted geographical areas where poverty is well entrenched and constraints to economic growth are great, and it is widely regarded by the Government of Peru and private sector as a huge success that should be replicated across the country.

    This is a new activity designed to build on the success of the previous program, but it also seeks to align with regional economic development initiatives implemented by the Government of Peru and Regional Governments. The Goal of the program is to have a measurable decrease on poverty in targeted economic corridors as a result of implementing trade-led, market-focused activities. The Objectives of this program are to: (1) Expand the PRA model in the impoverished Sierra and potentially the Selva Departments of Peru to improve the competitiveness of MSMEs; (2) Create strategic public-private partnerships to reduce poverty through the replication and expansion of the PRA model; and (3) Increase private and public investments in infrastructure and business development services to support market-led economic activities in the targeted economic corridors. USAID prioritizes the Sierra, but activities may be implemented in the Selva if significant resources can be leveraged to replicate the PRA model.

    The USG paper on Foreign Policy Priorities and Transformational Diplomacy establishes the promotion of poverty reduction through trade-led economic growth as a medium-term foreign policy objective for Peru. With the above results, this activity will be one of the principal mechanisms in USAID’s Economic Growth and Environment (EGE) portfolio to contribute to this higher-level objective to broaden the benefits of free trade.

    The activity will address elements of the Foreign Assistance Framework found under Program Areas 4.2: Trade and Investment; and 4.6: Private Sector Competitiveness. It will contribute directly to the USAID/Peru vision of unleashing Peru’s entrepreneurial

    and natural resource potential to propel growth that benefits the extreme poor while conserving natural resources and respecting good labor practices.

    To achieve maximum impact, the activity will aim to engage interested public and private partners to leverage additional resources while also coordinating with additional related donor, GOP, and USAID activities. Engaging actors such as private mining, oil, gas, and forestry companies and government partners such as the Sierra Exportadora and regional governments, will contribute to meeting USAID’s worldwide goal of tripling the amount of public-private partnerships across USAID programs. Partnerships may also contribute to the sustainability of the activity if actors other than USAID are able to assume more responsibility for the costs of providing PRA model-type services over time.

    The Offeror should note that this Request for Proposal (RFP) is a revised version based on the Request for Information (RFI) published in September 2008. Comments received based on the RFI were considered as the RFP was drafted.

C.1.3. Context for USAID Assistance. Work performed under this contract will help

    achieve USAID’s Investing in People Objective under the U.S. Foreign Assistance Framework (FAF). In September 2008, USAID, acting on behalf of the U.S. Government (USG), signed a new Assistance Agreement 527-0423 (henceforth called “Agreement”) with the Government of Peru for the period 2009-2013. The Agreement 1includes an Education Program Area whose objective is to “Improve Basic Education

    Quality in Disadvantaged Areas.” To achieve this Assistance Objective, USAID will 2support key GOP education reform initiatives through systemic and macro/institutional reforms and capacity building at all levels of government. USAID education assistance

     1 For more on the definition of Investing in People, Education Program Area, Elements and Sub-elements, visit: http://www.state.gov/f/releases/factsheets2006/79645.htm 2 For this contract, while GOP primarily refers to the national government of Peru, it also refers to the sub-national

    levels.

focuses on achieving two Program Results: “Participatory and Decentralized Education

    Management Strengthened” and “Teaching Quality Improved.” Program success will

    be judged by the extent to which the following outcomes are accomplished: (1) decentralization policy and institutional framework improved; (2) teacher training and professional development strengthened; (3) implementation of best practices in education supported; (4) active-school methodology in alternative development communities implemented; and (5) policy dialogue and civil society participation enhanced. Requirements and deliverables are outlined in section C.5 below

    This new Agreement builds on the current USAID-GOP Strategic Objective Grant Agreement (SOAG), to be completed in FY 2009, whose principal purpose is to implement the “Local Management of Quality Basic Education in Selected Geographic Areas.” Under that SOAG, the “Innovations in Decentralization and Active Schools” (or AprenDes) project has been implemented since 2003.

    Through this contract, USAID will carry-out interventions that contribute to the attainment of the Objective and Program Results of the September 29, 2008 Agreement. Under the first Program Result, USAID will support the GOP in strengthening the institutional and policy environment (e.g., laws, regulations, 3management systems, standards, etc.) at the national, regional and local levels to

    improve education management, especially within the context of decentralization. It will also provide technical assistance to build the management and technical capacity of regional and local governments to deliver quality education services.

    Activities to achieve the second Program Result will focus on supporting improvements in the policy and institutional framework for delivering quality teaching, including the improvement of pre- and in-service teacher training using successful national and international experiences, including those supported by USAID in Peru.

    Also contributing to these two Program Results are cross-cutting outcomes related to enhancing policy dialogue, communication and outreach, creation of public-private partnerships, support for implementing best practices in decentralization and teacher training, and providing school-level assistance to selected schools in Alternative Development communities. Civil society and citizen participation will be promoted throughout, especially in policy dialogues and accountability in the education system. These interventions are to be implemented in an integrated fashion for an effective education system reform.

    This contract supports the Investing in People Goal Paper under the U.S. Mission Strategic Plan for Peru, which covers the education program area. The goal is to assist Peru in improving education quality, e.g., primary education completion rates in rural areas and percent of students meeting grade-level standards in communication and math, while encouraging the GOP and the private sector to increase social sector investments. The contractor will seek to mobilize Peru’s own considerable human and financial resources, especially in light of recent strong economic growth, to move the education sector toward being more equitable, effective, efficient, and one with adequate host-country financial support.

C.1.4. Relationship with GOP Plans and Priorities. Activities under this contract will

    support the GOP’s plans and priorities in basic education. They are aligned to Peru’s key strategic and operational plans such as the long-term National Education Plan (PEN), Education-for-All and the Multi-Annual Sector Strategic Plan, as well as the

     3 Henceforth, “regional and local” and “sub-national” are used interchangeably.

    priorities set forth during the 2008 Asia-Pacific Economic Cooperation Education Ministerial.

    The PEN represents the strategic policy framework for the improvement of education in Peru. It commits the GOP to initiate the reforms required to improve the quality and equity of education through six strategic objectives: 1) improve quality education and opportunities for all; 2) improve student learning and quality of schools; 3) develop teacher career and teaching conditions; 4) improve education management and finance; 5) improve higher education as a way for development and competitiveness; and 6) engage the entire society and communities on the education efforts.

C.2. BACKGROUND

C.2.1 Development Challenge and Opportunity

    Peru laid the macroeconomic foundations for stability and prosperity under former President Toledo (2001-2006) as reflected in GDP growth rates averaging nearly 6% over the last five years. In addition, market opportunities such as the U.S.-Peru Trade Promotion Agreement (PTPA), signed in 2006 and recently ratified by the U.S. Congress, as well as free trade agreements being negotiated with China, Canada and Singapore, offer additional opportunities for trade-led growth. The country is also actively pursuing trade linkages with other areas of the world as evidenced by its role as host to both the European Union (EU)-Latin America Summit and the Asia-Pacific Economic Cooperation (APEC) Summit in 2008. The Economist Intelligence Unit forecasts continued strong growth for Peru in 2008 and 2009.

    Notwithstanding these macroeconomic advances and market opportunities, the country faces considerable challenges with 39.3% of Peruvians still living in poverty and 13.7% in extreme poverty. Moreover, in a recent public opinion poll conducted by the firm CPI in Peru, 64.3% of respondents indicated that they had not benefited in any way from the country’s recent economic growth, highlighting in part a gap between perceptions and reality, but also the persistence of poverty, particularly in the Sierra and Selva.

    Poverty in Peru is concentrated in the Sierra and Selva regions, outside of the relatively developed coastal areas. In fact, according to GOP statistics, ten of the twelve departments with the highest incidence of poverty in Peru are in the Sierra region. Unfortunately, recent economic growth has not ameliorated the problem as poverty levels have decreased little, if at all, over the last ten years. Low productivity, a lack of market linkages, territorial fragmentation, and limited government services are among the factors that have perpetuated poverty in the Sierra. These regions have a vast, untapped productive potential and, given its ecological diversity, the ability to provide a large variety of domestic and globally competitive products.

    In many cases, micro, small, and medium-sized enterprises (MSMEs), key sources of jobs for the poor, are not equipped to take advantage of market opportunities, especially those created by trade agreements. They often lack access to market information, do not understand or are unable to meet international product standards, operate without linkages to productive value chains, and operate at sub-optimal levels of productivity owing to an inability to access technical assistance, financing, and technology. Moreover, a significant portion of MSMEs in Peru operate informally, partly due to lengthy and costly processes to register a business and comply with regulations. For instance, according to the World Bank’s “Doing Business” rankings of 178 countries, Peru ranks 102nd in terms of “starting a business,” 109th for “dealing with licenses,” and 159th in the “employing workers” category. These statistics point to the need for work at a policy level to improve competitiveness. GOP entities and the

    USAID MYPE Competitiva Program with its policy focus will be important partners on this front.

    The challenge for the Government of Peru (GOP) is to sustain high growth, increase investment, and ensure that all regions of the country are capable of sharing in the benefits of economic growth and increased market opportunities. In broad terms, the government must connect the country’s smallest producers to national and

    international markets via productive clusters and higher value chains, infrastructure, and technical assistance projects while moving more workers into the “formal” labor sector. Building sustainable and productive value chains that involve MSMEs in targeted economic corridors will increase income and employment opportunities leading to more equitable growth.

    USAID can play an effective role, in partnership with the Peruvian public and private sector, to help meet the challenges outlined above. For the past several years, the USAID/Peru’s PRA activity has increased income and employment opportunities in economic corridors throughout some of the poorest areas of the country. With its focus on providing business development services in targeted economic corridors, the PRA model offers a proven approach to linking MSMEs to productive value chains. The PRA final evaluation showed that the model has been effective in various economic corridors.

    Poverty reduction is a Government of Peru national priority. Recent increases in fiscal revenue have provided the national government with increased resources for social spending. For example, the GOP has initiated a major program known as Sierra Exportadora to address rural poverty in the Sierra by expanding exports and markets. Some components of the Sierra Exportadora strategy, such as a focus on market linkages and the promotion of geographic economic clusters, are closely aligned with USAID’s PRA market-led model.

    USAID has various opportunities for constructive partnerships with the Peruvian public and private sectors to deliver assistance in the Sierra and Selva regions using the success of PRA as a model. Recognizing the synergies between their objectives as well as the value of coordination and collaboration, USAID/PRA and Sierra Exportadora signed a Memorandum of Understanding (MOU) in April 2007. USAID seeks to continue to work in partnership with the Sierra Exportadora program.

    Successful results in terms of increase income, employment, and investment under PRA have attracted other potential partners as well. For instance, in March 2007, USAID/PRA signed MOUs with the Antamina mining company as well as

    Buenaventura mining company. Through these arrangements, these private companies agreed to cover a significant portion of operating expenses for offering Business Development Services in Ancash and Huancavelica, respectively, with PRA and the GOP funding the remainder.

    As part of an agreement with the GOP, mining, oil, gas, and forestry companies have agreed to pay a percentage of their profits to fund voluntary social development projects in the communities surrounding their mines. This obligation represents an opportunity for new and expanded partnerships as mining, oil, gas, and forestry companies have reason to be interested in USAID social and economic growth development models.

    Regional and local governments represent another potential partner in the Sierra, particularly given the recent GOP commitment to decentralization. As part of the decentralization process, regional and local governments are receiving increased

resources, including through the canon minero, petrolero and forestal whereby a share

    of income tax paid by mining, oil, gas, and forestry companies is transferred to regional and local governments. According to the GOP, in 2005, the canon minero, petrolero

    and forestal resulted in more than US$170 million in transfers to regional and local governments, representing a budget increase of more than 1,700% for some districts and regions. The new activity can offer the proven PRA model as an effective vehicle for employing a portion of these increased resources through partnerships between USAID and regional and local government bodies.

    With the variety of potential public and private resources and the shared interest among many actors in combating rural poverty in the Sierra region, USAID’s value-

    added is its development expertise and the successful market-led model. Due to this potential for partnerships that can achieve more results with fewer USAID resources, the new activity will focus on engaging willing partners to apply the market-led model in the Sierra departments.

C.2.2. Activity Rationale

    Beyond its alignment with USG, Agency, and Mission objectives as outlined above, the rationale for this activity is that it builds upon the achievements that the PRA project has achieved throughout Peru with its market-led approach. Specifically, from 2000-2008, under a USAID contract, Chemonics International implemented the PRA program and generated over US$300 million in sales, more than 16.4 million work days (nearly 40% for women), and roughly US$20 million in investment in 11 economic corridors. The final evaluation of PRA provided a more detailed qualitative and quantitative analysis of the direct and indirect impacts of PRA and its cost effectiveness. Furthermore, it provided a sector analysis regarding how to enhance sustainable, market-led diversification that increases the competitiveness of targeted economic corridors and enterprises. The conclusions in the final evaluation will influence the implementation of the new activity.

    The rationale for focusing on the Sierra and Selva regions is that, as described above, these regions are characterized by widespread poverty and an untapped potential for economic production in response to market opportunities. The Sierra, for example, has a poverty rate of 60.1%. Moreover, there is a high probability of identifying other actors willing to partner on this type of work in the Sierra. For instance, the objectives of the activity mesh well with the priorities of GOP initiatives such as Sierra Exportadora. Given budgetary constraints and the importance of coordination and collaboration, it will be necessary to engage partners for increased impact.

    USAID/Peru believes, based on the final evaluation, that the experience of PRA has proven the validity of the activity’s original overarching development premise. This premise consists of first identifying effective demand for products and services that can be provided in selected economic corridors, and then linking that demand with local providers and producer groups. There remains a pressing need to create sustainable income and employment within economic corridors.

    The original rationale behind the PRA focus on economic corridors remains valid. Namely, a logical place to look for income and employment opportunities for currently poor rural people is the secondary and tertiary cities that can provide services to and add value to the production of their respective countrysides. A strategy of decentralization to intermediate cities not only is a way to deflect growing population pressures in Lima; it also is a logical outgrowth of thinking through what "rural" development must entail. Secondary and tertiary cities are likely focal points of backward and forward linkages with agriculture and rural enterprises. Targeting

    market-driven linkages between multiple intermediate cities and the rural areas surrounding them is a way to reach the isolated and extremely poor of Peru given finite resources for assistance. Thus, the economic corridors approach does not look at city and countryside in isolation, but in relation to each other. The same goes for relationships among cities.

    While the results achieved to date are impressive and augur well for continued economic expansion in the corridors, USAID/Peru recognizes that fostering growth in these challenging areas is a long-term task.

C.2.3 Coordination

    This activity seeks results that are critical to sustained poverty reduction; however, USAID/Peru realizes that this activity alone cannot address all of the barriers to economic growth and competitiveness in the Sierra. Other important factors must be handled in coordination with actors such as the private sector, the GOP, other USAID activities, other donors, and NGOs. For instance, the Offeror will identify policy constraints to competitiveness but will not directly address them; rather it will feed information into the policy dialogue for others to take action.

    Poverty reduction is a cross-cutting theme that has an impact on all sectors in which USAID is working. Given its overlap with other USG programs, it is essential that the implementer collaborate actively, fruitfully, and collegially with the other USAID partners and programs. The ability and success in establishing effective, collaborative relationships will be assessed in contractor performance reports. Thus, the new activity must coordinate with actors such as the MYPE Competitiva and Pro-Decentralization programs to work with the GOP on creating an improved climate for investment and economic activity. This may include improvements in areas such as market regulation mechanisms, GOP social sector investment decisions, and implementing the rules of trade. Furthermore, other USAID and GOP initiatives in the areas of basic infrastructure and strengthening human capital, such as health and education, play a key role for long-term, sustainable reduction of poverty in the Sierra and other regions. Coordination and complementarity with these other efforts is critical in order to avoid unnecessary duplication and to leverage the maximum amount of public and private resources towards achieving project objectives. Below is a summary of the most relevant USG, donor, and GOP activity in Peru relating to areas such as trade, investment, financial services, and private sector competitiveness

C.2.4 Other USAID/Peru Activities

     USAID’s MYPE Competitiva (Competitive Micro and Small Enterprises) project supports public and private sector efforts to increase Peru’s competitiveness, especially for MSMEs, and proposes ways of reducing informality in Peru. The project provides direct assistance to municipalities and national level agencies to reduce the costs of registration and operation as well as other bureaucratic procedures with an emphasis on those areas that facilitate the implementation of free trade agreements. In collaboration with the Superintendence of Banks, the project is analyzing ways of improving MSME access to financial services. MYPE also provides training to enterprises to improve their trade knowledge and skills to utilize existing services that promote exports. The new activity should specifically coordinate with MYPE to address policy barriers to competitiveness faced by MSMEs within economic corridors. USAID’s Alternative Development Program supports communities to adopt lifestyles free of illicit coca cultivation. The existing PRA project has worked in conjunction with the Alternative Development Program in some of the coca-growing regions.

     USAID implements a regional trade capacity building program among the Andean countries, Peru, Colombia, Ecuador and Bolivia, focusing on compliance with international trade obligations in areas such as, labor, technical barriers to trade, and intellectual property rights.

     USAID's Decentralization Program focuses nationally on policy reform and locally in the Mission's priority coca-growing regions to help create stronger regional and local governments better able to respond effectively to citizen needs. The program supports sub-national government in their efforts to improve the business and investment climate.

C.2.5 Other USG Actors

    Trade-led growth that reduces poverty and expands access to markets for all Peruvians is recognized as an important objective by the various USG agencies in Peru. USAID, the Department of State (DOS), the Foreign Agriculture Service (FAS), and the Foreign Commercial Service (FCS) implement complementary activities in specific technical areas (e.g., intellectual property rights) related to the implementation of trade agreements. All agencies closely coordinate activities in communication, outreach, and training.

    USAID and FAS take the lead on offering support in specific technical areas to private and public organizations and to enterprises (especially MSMEs). FAS interventions focus mostly on strengthening GOP institutions in the agricultural sector, while USAID emphasizes direct interventions with both the public and private sectors. Peace Corps also provides technical assistance and training to microentrepreneurs and NGOs.

    The Trade and Development Agency provides business-generating technical assistance in select sectors. Other USG agencies, including the Department of Labor (DOL), the Environmental Protection Agency (EPA), and the Department of Justice (DOJ), are used as resources to review activities, provide speakers, and give expert advice on US systems. The Trade Representative’s Office facilitates communication and coordinates activities among these resource agencies and agencies in country.

C.2.6 Other Donor Activities

    Several donors and multilateral lending institutions are involved in work related to trade, investment, and private sector competitiveness in Peru. For example, the Inter-American Development Bank has a $10-million loan to the Ministry of Trade (MINCETUR) and the Export Promotion Agency (PROMPEX) to strengthen capacity and improve export mechanisms that will especially benefit MSMEs. The World Bank has an ongoing $20-million loan that provides technical assistance to several GOP entities, including the National Competitiveness Council, which is the primary coordinating body in this area for donors, the private sector, and the GOP. Meanwhile, USAID has partnered with the International Finance Corporation (IFC) to develop competition among municipalities to lower the cost to start a business and obtain municipal licenses.

    The major donors in the area include the EU and the Swiss. They provide direct assistance to micro and small enterprises (MSMEs) through the Exporters Association and PROMPEX as well as work to strengthen municipal governments’ development

    activities. Also, the UN trade office has done some limited work in expanding access to trade information, and several NGOs are devoted to expanding agri-business and non-traditional products. USG efforts complement and expand the efforts of these actors while focusing on the implementation of bilateral (e.g., pending Peru Trade Promotion

    Agreement (PTPA) and multilateral trade agreements as well as market-driven business development services.

    Donors and multilateral lending institutions are also involved in improving financial services in Peru. For instance, the Inter-American Development Bank and, to a lesser extent, the Andean Development Corporation provide lines of credit to various microfinance institutions, have made equity investments in others, and offer limited technical assistance. The IFC provides similar services, but has a more robust technical assistance component. Various European donors such as the Netherlands, Belgium, and Switzerland channel funds directly to credit-granting NGOs. USG efforts in financial services complement efforts of other donors, which are largely focused on providing lines of credit, by helping to develop new markets in rural areas and products for public and private institutions.

C.2.7 GOP Activities

    The GOP has responded to the challenge of reducing poverty through trade-led growth by implementing its own internal free trade initiative to reduce administrative costs for registering businesses, extend business development services to MSMEs, expand infrastructure investments in the poorest areas of Peru, and eliminate or greatly reduce tariffs on over one thousand imported products.

    In the Sierra region, the GOP has a major program known as Sierra Exportadora to address the challenge of rural poverty by expanding exports and markets. The program has the following four objectives: (1) to develop and consolidate national and international markets; (2) to consolidate and widen the range of competitive products offered by the Sierra region in response to national and international demand; (3) to facilitate access to financial services, resources, and investment for the development of productive businesses and products; and (4) to coordinate, formulate, and promote public policies and mechanisms that foster development in the Sierra region. Various components of the Sierra Exportadora strategy, such as a market focus and the promotion of geographic economic clusters, are closely aligned with the PRA model and these are the components this new activity will continue to coordinate and support.

    The GOP is also working to alleviate constraints faced by MSMEs seeking access to credit. For example, USAID has worked closely with the GOP’s financial intermediary, la Corporación Financiera de Desarrollo (COFIDE), to create a credit line abroad for buyers of Peruvian exports. Demand from MSMEs for the existing $50 million GOP export insurance system has increased, and regulations on the use of letters of credit are being improved to expand working capital from commercial banks for thousands of Peruvian MSMEs. Meanwhile, the GOP’s Peru-Ecuador Binational Fund for Peace

    and Development improves the capabilities of agricultural and handicraft MSMEs.

    The GOP, through its ProInversión entity, awarded the Amazon North Highway concession and is also working to award the Amazon Central Highway concession. USAID provided technical assistance for the preparation of the original bidding documents for both projects. Currently, ProInversión is revising the terms for the latter to attract the private sector by providing more clarity on financing commitments from the GOP and revenue management. Key infrastructure such as roads will be critical if the benefits of the PTPA and other market opportunities are to be widespread in Peru.

C.2.8 Applicable Documents and Initiatives

    To undertake this work the Contractor shall review the design documents, assessments applicable documents and initiatives outlined below. These documents

    can be found at the following USAID websites. Of particular note are the evaluation of the USAID’s PRA project conducted in 2008, the Memoranda of Understanding (MOUs) with two mining, oil, gas, and forestry companies, and the Greater Access to Trade Expansion (GATE) documents. The PRA Evaluation provides an analysis of the project’s impact on poverty reduction and the effectiveness of the methodologies it implemented. The MOUs with the mining, oil, gas, and forestry companies are for multiple years and USAID designed this new activity to fulfill its intentions stated in the MOUs. The GATE documents provide valuable analysis and recommendations for ensuring broad-based economic development by examining the impacts of USAID’s trade-led growth projects on gender relations. See Section J for a list of applicable document..

C.3. STATEMENT OF WORK

    To undertake this work the Contractor shall review the design documents, assessments, applicable documents and initiatives outlined below. The Contractor should particularly note the evaluation of the USAID’s PRA project conducted in 2008,

    the Memoranda of Understanding (MOUs) with two mining, oil, gas, and forestry companies, and the Greater Access to Trade Expansion (GATE) documents. The PRA Evaluation provides an analysis of the project’s impact on poverty reduction and the

    effectiveness of the methodologies it implemented. The MOUs with the mining companies are for multiple years and USAID designed this new activity to fulfill its intentions stated in the MOUs. The GATE documents provide valuable analysis and recommendations for ensuring broad-based economic development by examining the impacts of USAID’s trade-led growth projects on gender relations. See Section J for a list of applicable documents.

This activity seeks to achieve the following four Results:

    Result 1: Sales of goods and services produced by MSMEs receiving USAID assistance increased by US$ 90 million, which generate 27,000 new full-time equivalent jobs.

    Result 2: Resources leveraged from public, private and civil society entities as a result of USAID assistance exceed US$ 15 million.

    Result 3: Methodologies developed and implemented to assist public, private and civil society entities to measurably improve the trade and investment climate within selected economic corridors in the Sierra and possibly the Selva.

    Result 4: Performance Monitoring and Evaluation Plan developed and implemented.

    Result 1: Sales of goods and services produced by MSMEs receiving USAID assistance increased by US$ 90 million, which generate 27,000 new full-time equivalent jobs.

The Contractor’s achievement will be measured by the following indicators.

Primary Target

    Amount of increase in sales of goods and services produced by assisted

    MSMEs in the targeted regions broken down by type of goods and US$ 90

    services, by women and men owned enterprises, and by market million

    (domestic, regional and international).

     Baseline of zero.

    Number of full-time equivalent (see Definitions) jobs created among

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