Ecuador

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Activity Data Sheet PROGRAM:  Ecuador TITLE AND NUMBER:  Improved social and economic conditions of inhabitants along the Peru-Ecuador border, thereby promoting border integration (Peru-Ecuador Border Region Development, 518-011* PLANNED FY 2001 OBLIGATION AND ACCOUNT:  $3,488,000 (ESF) PROPOSED FY 2002 OBLIGATION AND ACCOUNT:  $6,500,000 (ESF) STATUS: Continuing INITIAL OBLIGATION: FY 1995   ESTIMATED COMPLETION DATE: FY 2005 Summary: In October 1998, the Presidents of Ecuador and Peru signed a Peace Agreement ending over a century and a half of a bitter conflict over their shared border. This Agreement committed the two governments to providing tangible development benefits to the population living along the border. This population is one of the poorest in the country, with 73% living in poverty. Combined unemployment and underemployment amount to 70%, and only 22.5% of homes have access to running water and 24.2% to sewerage systems. The Bi-national Commission for Border Integration developed a plan for a regional development program of investment totaling $3 billion. The plan was presented at the March 2000 Consultative Group meeting at which the USG formally pledged $40 million (Peru-$20 million, Ecuador-$20 million). This was additional to the initial $2 million (Peru-$0.5 million, Ecuador-$1.5 million) provided in FY 1999 for quick impact activities to demonstrate viability to other donors and leverage their funds for the border region. Activities aim at improving both social and economic conditions on both sides of the border to ensure lasting peace. To the extent possible, they will be replications of successful USAID-supported programs currently being implemented in other parts of Peru and Ecuador. The Peace Agreement has created enormous expectations among the communities living along the 1,700 kilometer Peru-Ecuador border. There are almost four million people living in the border provinces on both sides of the border, representing 12% of the combined total population of both countries. (The actual population living near the border is estimated at 10%-15% of this total.) The border area is severely underdeveloped, contains some of the poorest populations in both countries, and is home to more than one hundred thousand indigenous Amazonians. Lack of access to clean water, sanitation, and proper solid waste management is a serious problem. Infant and maternal mortality, as well as child malnutrition rates, are high. Local governments are weak and unable to meet the needs of the average citizen. Improvements to these socio-economic conditions are key to achieving stability. Moreover, from a regional perspective, the border region contains key watersheds for the Amazon Region. This is an important biodiverse and ecological reserve that must be protected. U.S. Government (USG) support in the border region will boost the efforts of Peru and Ecuador to restore public confidence in their leadership. This activity is aimed at facilitating border integration by improving socio-economic conditions of communities along the border. It supports a range of activities intended to create economic opportunities for disadvantaged inhabitants; build or rehabilitate productive infrastructure; strengthen local governments; promote sustainable natural resource management; and improve and establish basic services and healthcare to improve border residents' living conditions. In prior years, reporting on the Peru-Ecuador Border Region Development activity was included under the LAC Regional program in the Congressional Presentation/Budget Justification document. However, both USAID Missions have now developed special objectives for country-level planning and reporting purposes and funds are transferred to each Mission for implementation of selected activities. Therefore, beginning this year, each objective and its related activities will be included in the respective country section of the Congressional Budget Justification document for reporting purposes. Key Results: The following key results are required to achieve the program goals: 1) expanded income-generating opportunities for small and micro entrepreneurs; 2) increased availability and access to social services, with emphasis on health, water, and sanitation; and 3) improved natural resources management in selected zones along the border. Two other sub-goal areas are: increased access to major infrastructure which will be funded primarily by international financial institutions, including the Andean Development Corporation (CAF), and increased private investment along the border which is expected to be made by the private sector. Consistent with the priorities of the Bi-national Accord, the largest area of program intervention funded by USAID entails the construction of water, sanitation, and solid waste systems. This constitutes over one-third of USAID's planned program budget, and targets 100 communities and 48,000 beneficiaries. Other program goals aim to create 400 village banks with 17,000 microentrepreneurs receiving loans, 75% of who are expected to be women, and support for trade fairs to promote trade and economic integration along the border. Another sub-goal is to assist the Shuar and Achuar indigenous peoples to strengthen the protected status of the biologically rich Trans-Cutucu region, bringing 100,000 hectares of habitat under natural resources management plans, and to formalize their resource tenure. A cross cutting theme is strengthened local governments. This will improve the capacity of some 26 municipalities to deliver services more effectively and with greater citizen participation. Program implementation began in February 2000 with the award of a $1.5 million grant to CARE mainly for water, sanitation, and solid waste management activities. The larger Phase II effort was initiated with a bilateral agreement with the Government of Ecuador (GOE) and a five year $19.3 million cooperative agreement signed with CARE in November 2000. Rapid progress has been made with water, sanitation, and solid waste systems. For the second phase of the program activities are already underway and significant "process" results have been achieved. For example, CARE competitively selected to implement the program, organized a consortium of twelve experienced institutions to carry out its four components: social infrastructure, microfinance, environment, and local government strengthening. CARE prepared its startup plan, finance and procurement manuals, and a draft work plan for the next eighteen months of implementation. CARE also identified lessons learned during Phase one on how to optimize on human and financial resources for constructing water systems, latrines, garbage collection, and providing health services. Performance and Prospects:   Not all targets were fully met by September 30, 2000, since the cooperative agreement with CARE for Phase I of the program called for targets to be met by the end of 2000. The activity is meeting expectations. For example, although the number of completed water systems and latrines was less than targeted, the total number of beneficiaries for the improved social infrastructure targets was exceeded. A significant accomplishment was the unification of five communities previously in conflict to build a large regional water system, El Airo. As a result, 13 rather than 11 targeted communities now have new or improved systems. Under the Phase II of this program, USAID will support a much broader range of activities and geographic areas aimed at improving social and economic conditions to contribute to reducing poverty and lasting peace. Many of the activities will replicate successful programs implemented by USAID and CARE in other parts of Ecuador, so prospects for success are excellent, assuming the continued availability of ESF. FY 2001 ESF funds of $3,488,000 will be used as follows: $1,738,000 for social infrastructure including potable water, sanitation systems and health education; $1,550,000 for natural resources management activities and a land titling program in Morona-Santiago province; $200,000 to provide technical assistance and training to 26 municipalities on cost accounting, computer systems, and strategic planning. FY 2002 ESF funds of $6,500,000 will be used to continue the activities of social infrastructure ($2,200,000), environment ($2,000,000), and local government strengthening ($800,000). In addition, $1,500,000 will be used for a credit-program for small and micro entrepreneurs. Possible Adjustments to Plans:  Phase I of this program ended February 2001 and its lessons learned are being applied to Phase II, in particular to "fine-tune" the support strategy for social infrastructure. Similarly, program indicators for Phase I are being expanded to accommodate significantly increased levels of funding and more field efforts planned under Phase II. A comprehensive Environmental Impact Assessment of proposed food production activities in Morona-Santiago province was carried out in February 2001, and once approved, its recommendations will be incorporated into planned program activities. There may also be changes in the local government strengthening component, depending on the final redesign of the Mission's Democracy program. Finally, a microenterprise evaluation leading to the design of a proposed new microfinance program is also expected to provide important lessons learned and recommendations for planning the income-generating component of this program. Other Donor Programs:  The Ecuador-Peru Bi-national Plan solicited $2 billion from the international community over ten years, starting with a Consultative Group meeting in October 1998. To meet the Bi-national Plan target of $3 billion, additional resources are to be provided by the private sector, and the governments of Peru and Ecuador. While many donors (e.g. international financial institutions, U.N. agencies, and various bilateral donors) pledged to support the Ecuador-Peru Border Development Plan, to date the U.S. contribution is the largest and reflects most of the progress made to date. In addition, an initial $25 million loan from CAF should be provided soon to help finance larger-scale water systems, rural electrification and possibly roads, and a planned $38 million grant from the European Economic Community is expected to focus on improving health conditions. Donor coordination will become more essential as other donor programs are initiated, and the main donors with whom USAID has collaborated under this program are: World Bank, Pan American Health Organization (PAHO), Dutch Government/SNV, Spain, Japan, and Germany's GTZ. A new World Bank Praguas Project is slated to provide a $130 million loan for a water and sanitation program in 40 poor rural municipalities, and promote complementary policy reforms in the sector. PAHO and SNV have been actively working in the Loja border area, the former on local government/community planning for health, the latter on forestry protection. SNV is also fully engaged in environment/local government development in Morona-Santiago province. Spain's planned program in Loja will focus mainly on watershed protection for the Catamayo-Chira River Basin. Finally, GTZ's strong interest in decentralization and municipal government development, especially along the Southern Border, is being closely coordinated with USAID's and CARE's efforts. For example, USAID has convinced GTZ to complete coverage of Morona-Santiago province with support to its two southernmost municipalities, not targeted by USAID's program. Principal Contractors, Grantees or Agencies:  Implementation of this program is through a Cooperative Agreement with CARE and 12 local and international partners, including Catholic Relief Service (CRS), HOPE, SNV, Pan American Health Organization, Plan International, Wildlife Conservation Society, Conservation International, and local NGOs. FY 2002 Performance Table Ecuador: 518-011 Performance Measures: Indicator FY97 (Actual) FY98 (Actual) FY99 (Actual) FY00 (Actual) FY00 (Plan) FY01 (Plan) FY02 (Plan) Indicator 1: Number of new/improved potable water systems: Number of beneficiaries NA NA 0 5,800 5,769 5,769 NA Indicator 2: Number of health services and facilities improved. NA NA 0 4 4 5 NA Indicator 3: New/improved sanitation units: Number of beneficiaries NA NA 0 5,800 5,769 5,769 NA Indicator 4: Number of persons who benefit from new/improved water, sanitation, solid waste disposal, and health services. NA NA 0 168,127 150,000 168,000 NA Indicator 5: Number of new/improved potable water systems: Number of systems NA NA 0 9 11 11 NA Indicator 6: Number of new/improved sanitation units NA NA 0 627 1,000 1,000 NA Indicator Information: Indicator Level (S)or(IR) Unit of Measure Source Indicator Description Indicator 1: IR Number of beneficiaries (CUMULATIVE) CARE reports This indicator will not be reported in the next Budget Justification, given new indicators for the cooperative agreement signed with CARE in November 2000. Nevertheless, the Mission will track this indicator. Indicator 2: IR Number of services/facilities (CUMULATIVE) CARE reports This indicator will not be reported in the next Budget Justification, given new indicators for the cooperative agreement signed with CARE in November 2000. Nevertheless, the Mission will track this indicator. Indicator 3: SO Number of beneficiaries (CUMULATIVE) CARE reports This indicator will not be reported in the next Budget Justification, given new indicators for the cooperative agreement signed with CARE in November 2000. Nevertheless, the Mission will track this indicator Indicator 4: SO Number of persons (CUMULATIVE) CARE reports This SO level indicator will be modified to include other components ot the program, according to the new cooperative agreement signed with CARE in November, 2000. Targets will be set for FY 01-05 in March 2001. Indicator 5: IR Number of systems (CUMULATIVE) CARE reports This indicator will not be reported in the next Budget Justification, given new indicators for the cooperative agreement signed with CARE in November 2000. Nevertheless, the Mission will track this indicator. Indicator 6: IR Number of units (CUMULATIVE) CARE reports Only 627 units have been built, including 7 school units serving 50 children each. However the number of beneficiaries (5,500) is close to the planned number. This indicator will not be reported in the next Budget Justification, given new indicators for the Cooperative Agreement signed with CARE in November 2000. Nevertheless, the Mission will track this indicator. Indicator Information: Indicator Level (S)or(IR) Unit of Measure Source Indicator Description Indicator 1: IR Estimated protection provided by family planning services for a one year period, based upon volume & type of contraceptives distributed Calculation from service statistics of APROFE and CEMOPLAF: APROFE Fax dated 10/21/99 and CEMOPLAF Fax dated 10/21/99 This indicator measures quality and access to family planning services. The public sector was not included in this indicator because USAID/Ecuador contribution to their program is small and more importantly there is no reliable data. Indicator 2: IR Number of visits (000) - by children (PER YEAR) CARE-APOLO Letter No. 21448, dated 10/29/99, QA Letter dated 11/04/99, RPM Letter dated 10/29/99, and BASICS Fax dated 10/29/99 This indicator focuses on efforts to expand access through the private sector and decentralization of services. Service improvement is achieved through: NGOs - CARE: TA or training provided, systems strengthened; MOH - IMCI/BASICS: Integrated treatment of children provided. Quality Assurance/QA: Quality improvement activity implemented, such as reduced waiting time or reduced number of surgical infections. RX use/RPM: Improved use and access to/availability of drugs-medications. Indicator 3: SO Number of NGOs recovering percentage of total budget: number of NGOs by percent -- Group A* CARE-APOLO Letter No. 21460 dated 11/05/99 The APOLO-supported NGOs cost recovery indicator is the income generated through provision of services by the NGOs, as a percentage of total operating costs (synonymous with "budget" if capital expenditures not included). Pilot projects have been grouped based on sustainability achievements. *Group A: (1) Fundacion Pablo Jaramillo in Cuenca, (2) CEMOPLAF in Otavalo, (3) CEMOPLAF in Lago Agrio, (4) ASME-CX in Santo Domingo. Group B: (1) Cristo Redentor in Santa Elena, (2) Municipality of Chordeleg, (3) Municipality of Bolivar. Group C: (1) Fundacion Salud y Desarrollo in Pedro Vicente Maldonado, (2) Funedesin in Mondana, Oriente, (3) Diocesis de Riobamba. Indicator 4: IR Percentage of total costs covered by NGO generated income: APROFE Financial Analysis Reports prepared by the USAID Controller's Office, CEMOPLAF dated January 3, 2000 and APROFE dated December 2, 1999 Cost recovery, along with institutional maturity, is crucial to long term sustainability of the family planning organization. This indicator will be verified by NGO statistics and periodic audited financial information. The target is set without taking into account the sustainability funds, so even though the NGOs do not reach 100% sustainability, they will have these funds to draw upon at the end of the current agreements with USAID/Ecuador. The formula used to calculate the sustainability rate is total income generated divided by all expenditures. The value of the USAID donations in kind (contraceptives) was treated as part of the total USAID donation in dollars. Indicator 5: IR Number of NGOs recovering percentage of total budget: number of NGOs by percent -- Group B* CARE-APOLO Letter No. 21460 dated 11/05/99 The APOLO-supported NGOs cost recovery indicator is the income generated through provision of services by the NGOs, as a percentage of total operating costs (synonymous with "budget" if capital expenditures not included). Pilot projects have been grouped based on sustainability achievements. Group A: (1) Fundacion Pablo Jaramillo in Cuenca, (2) CEMOPLAF in Otavalo, (3) CEMOPLAF in Lago Agrio, (4) ASME-CX in Santo Domingo. *Group B: (1) Cristo Redentor in Santa Elena, (2) Municipality of Chordeleg, (3) Municipality of Bolivar. Group C: (1) Fundacion Salud y Desarrollo in Pedro Vicente Maldonado, (2) Funedesin in Mondana, Oriente, (3) Diocesis de Riobamba. Indicator 6: IR Number of NGOs recovering percentage of total budget: number of NGOs by percent -- Group C* CARE-APOLO Letter No. 21460 dated 11/05/99 The APOLO-supported NGOs cost recovery indicator is the income generated through provision of services by the NGOs, as a percentage of total operating costs (synonymous with "budget" if capital expenditures not included). Pilot projects have been grouped based on sustainability achievements. Group A: (1) Fundacion Pablo Jaramillo in Cuenca, (2) CEMOPLAF in Otavalo, (3) CEMOPLAF in Lago Agrio, (4) ASME-CX in Santo Domingo. Group B: (1) Cristo Redentor in Santa Elena, (2) Municipality of Chordeleg, (3) Municipality of Bolivar. *Group C: (1) Fundacion Salud y Desarrollo in Pedro Vicente Maldonado, (2) Funedesin in Mondana, Oriente, (3) Diocesis de Riobamba. Indicator 7: IR Percentage of total costs covered by NGO generated income: CEMOPLAF Financial Analysis Reports prepared by the USAID Controller's Office, CEMOPLAF dated January 3, 2000 and APROFE dated December 2, 1999. Cost recovery, along with institutional maturity, is crucial to long term sustainability of the family planning organization. This indicator will be verified by NGO statistics and periodic audited financial information. The target is set without taking into account the sustainability funds, so even though the NGOs do not reach 100% sustainability, they will have these funds to draw upon at the end of the current agreements with USAID/Ecuador. The formula used to calculate the sustainability rate is total income generated divided by all expenditures. The value of the USAID donations in kind (contraceptives) was treated as part of the total USAID donation in dollars. Indicator 8: IR Number of visits (000) - by women (PER YEAR) CARE-APOLO Letter No. 21448, dated 10/29/99, QA Letter dated 11/04/99, RPM Letter dated 10/29/99, and BASICS Fax dated 10/29/99 This indicator focuses on efforts to expand access through the private sector and decentralization of services. Service improvement is achieved through: NGOs - CARE: TA or training provided, systems strengthened; MOH - IMCI/BASICS: Integrated treatment of children provided. Quality Assurance/QA: Quality improvement activity implemented, such as reduced waiting time or reduced number of surgical infections. RX use/RPM: Improved use and access to/availability of drugs-medications. U.S. Financing (In thousands of dollars)   Obligations   Expenditures   Unliquidated   Through September 30, 1999    0 DA 0 DA 0 DA 4,000 CSD 4,000 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 0 DA 0 DA     2,000 CSD 2,000 CSD     0 ESF 0 ESF     0 SEED 0 SEED     0 FSA 0 FSA     0 DFA 0 DFA     Through September 30, 2000 0 DA 0 DA 0 DA 6,000 CSD 6,000 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 0 DA         0 CSD         0 ESF         0 SEED         0 FSA         0 DFA         Planned Fiscal Year 2001 NOA 0 DA         6,486 CSD         0 ESF         0 SEED         0 FSA         0 DFA         Total Planned Fiscal Year 2001 0 DA         6,486 CSD         0 ESF         0 SEED         0 FSA         0 DFA               Future Obligations   Est. Total Cost   Proposed Fiscal Year 2002 NOA 0 DA 0 DA 0 DA 6,750 CSD 0 CSD 19,236 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA

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