MOLDOVA COMPETITIVENESS PROJECT QUARTERLY PROGRESS REPORT JANUARY 1 – MARCH 31, 2019
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MOLDOVA COMPETITIVENESS PROJECT
QUARTERLY PROGRESS REPORT
JANUARY 1 – MARCH 31, 2019
QUARTERLY REPORT
YEAR 4 QUARTER 2 (FY2019 Q2)
JANUARY 1 – MARCH 31, 2019
SUBMITTED: APRIL 12, 2019
Prime Contractor: Chemonics International Inc. www.chemonics.com/ Partners: J. E. Austin Associates, Inc. www.jeaustin.com Bhavana World Project www.bhavanaworldproject.com Contract No.: AID-117-C-15-00001 PHOTO CAPTION: Ala Arabadji, young designer and co-owner of RiDiager apparel factory in Comrat, Gagauzia, presenting the factory and working conditions to U.S. Ambassador Dereck J. Hogan. COVER PAGE PHOTO CREDIT: Olesea Galusca, MCP
DISCLAIMER This report was prepared by the Moldova Competitiveness Project. The contents are the responsibility of the creator, and do not necessarily reflect the views of USAID, the United States Government, or the Government of Sweden
TABLE OF CONTENTS
ACRONYM LIST ................................................................................................................................................ 7
EXECUTIVE SUMMARY ..................................................................................................................................... 9
SECTION I ....................................................................................................................................................... 13
PROJECT TECHNICAL INTERVENTIONS DURING FY19 Q2 ............................................................ 13
WINEGROWING INDUSTRY ...................................................................................................................... 13
OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION) .............................................................................................................................................. 13 PROGRAM 1. Upgrading quality and driving innovation in viticulture and winemaking ............................ 13 ACTIVITY 1. ASW (Association of Small Winemakers) Mentorship Program - support the emergence and development of small wine producers ........................................................................................................ 13 ACTIVITY 2. ‘PQUP’ Program (Product Quality Upgrading Program): expanding the Wine of Moldova portfolio ....................................................................................................................................................... 14 PROGRAM 2. Building knowledge for future growth .................................................................................. 15 ACTIVITY 1. “Best Grapes” and “FlaveDor” - piloting innovations in vineyard management and grape quality improvement ................................................................................................................................... 16 OBJECTIVE 2. EXPANDED MARKET LINKAGES ............................................................................................. 16 PROGRAM 1. Wine of Moldova international promotion program support ............................................... 16 ACTIVITY 1. Build Wine of Moldova Brand Equity and Foster Business Linkages ........................................ 16 ACTIVITY 2: Export Support Program (ESP): increased wine sales on target markets through firm-level marketing support ....................................................................................................................................... 19 PROGRAM 2. Enhance wine culture and grow a mature local market ....................................................... 19 OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY ........................ 20 PROGRAM 1. Policy upgrading and legal regulatory reforms in the wine industry .................................... 20 ACTIVITY 1. Support ONVV to continue policy, legal and regulatory reforms ............................................. 20 ACTIVITY 2. Finalize the Wine of Moldova 2030 strategy to guide long-term industry competitiveness, and promote in the Government ........................................................................................................................ 21 ACTIVITY 3. Develop and strengthen the PGI wine associations ................................................................. 21
TOURISM INDUSTRY .................................................................................................................................. 22
OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION) .............................................................................................................................................. 22 PROGRAM 1. Start-up Tourism Moldova: product development, service quality upgrading and tourism offer diversification ..................................................................................................................................... 22 ACTIVITY 1. Wine-Up: Wine Tourism Accelerator Program ......................................................................... 22 ACTIVITY 2. Hospitality+ Moldova program: improving tourism hospitality infrastructure ........................ 23 ACTIVITY 3. Go-Regional Tourism Start-Up: unveiling the tourism potential of Orheiul Vechi reservation and Purcari region ....................................................................................................................................... 26 OBJECTIVE 2: EXPANDED MARKET LINKAGES ............................................................................................. 26 PROGRAM 2. Tree of Life Marketing Program: unveiling the hidden gems of Moldova to the world ........ 26 ACTIVITY 1. Placing Moldova on the map of world tourism: building brand equity and international awareness of Moldova as a tourism destination ........................................................................................ 26 ACTIVITY 2. Foster business linkages and expand target markets .............................................................. 29 OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY ........................ 30 PROGRAM 3: Re-Think Tourism Moldova. Building a sustainable public-private partnership .................... 30 ACTIVITY 1. Re-think tourism industry: reformed policies and regulation to ensure sustainable development ............................................................................................................................................... 30 ACTIVITY 2. Strengthen private sector voice to balance public-private dialogue ........................................ 30
LIGHT INDUSTRY ........................................................................................................................................ 32
OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION) .............................................................................................................................................. 32 PROGRAM 1. Strengthening ZIPhouse as the flagship institution in workforce development and fashion startup acceleration .................................................................................................................................... 32 ACTIVITY 1. Enhance ZIPhouse institutional capacity .................................................................................. 32 ACTIVITY 2. Boost fashion creativity, startups and community building ..................................................... 32 ACTIVITY 3. Develop industry skills through quality advanced technical education and training ............... 35 PROGRAM 2. SMART (Streamline Manufacturing, Accountability, Resource efficiency, and Transparency) Factory program ......................................................................................................................................... 36 ACTIVITY 1. Implement complex innovative methods to streamline manufacturing and productivity growth ......................................................................................................................................................... 36 OBJECTIVE 2: EXPANDED MARKET LINKAGES ............................................................................................. 38 PROGRAM 3. Expanding Market Opportunities .......................................................................................... 38 ACTIVITY 1. Reposition Moldova as a full-product manufacturing partner and support internationalization of Moldovan fashion brands on regional markets ...................................................................................... 38 ACTIVITY 2. Consolidate the Din INIMA Umbrella Brand and Expand Domestic Market ............................ 40 OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY ........................ 40 ACTIVITY 1. Assist APIUS to Become a Strong Professional and Industry Association ................................ 40
INFORMATION TECHNOLOGY, ENGINEERING AND CREATIVE SERVICES ............................... 41
OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION) .............................................................................................................................................. 41 PROGRAM 1: Promoting STEAM Education and STEAM fields Careers....................................................... 41 ACTIVITY 1. Pilot the Future Classroom (FCL) Concept in Moldovan schools .............................................. 41 ACTIVITY 2. Expand Educational Robotics Program .................................................................................... 41 ACTIVITY 3: Support private initiatives for improving STEAM education and promoting STEAM careers .. 42 PROGRAM 2: Build the Ecosystem for Workforce and Entrepreneurship Development ............................. 42 ACTIVITY 1. Develop Regional Innovation Centers (Balti, Regional FabLabs) ............................................. 42 ACTIVITY 2. Creative Hub – the grand opening ........................................................................................... 43 ACTIVITY 3. Fab Lab Chisinau – coaching the ATIC/TUM partnership ......................................................... 44 ACTIVITY 4. Support and develop IT and engineering laboratory cluster within TUM ................................ 44 ACTIVITY 5. Improve the entrepreneurial ecosystem for innovation and creative services ........................ 45 OBJECTIVE 2: EXPANDED MARKET LINKAGES ............................................................................................. 46 ACTIVITY 1. Assist foreign market entry for domestic tech & creative firms and attract tech-based investors to Moldova ................................................................................................................................... 46 ACTIVITY 2. Support private-driven initiatives to develop IT Parks ............................................................. 46 OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY ........................ 46 ACTIVITY 1. Implementation of the Law on IT Parks ................................................................................... 46 ACTIVITY 2. Strengthen and update industry strategies ............................................................................. 47 ACTIVITY 3. Capacity Building for ATIC and COR business associations ...................................................... 47
DELIVERABLES .......................................................................................................................................... 47
SECTION II ...................................................................................................................................................... 48
PROJECT-LEVEL OUTCOMES AND RESULTS .................................................................................... 48
Sector Engagement, Enhancement, and Development (SEED) Fund ........................................................... 48 Local Capacity Building Program ................................................................................................................ 49 Anti-Corruption ........................................................................................................................................... 50 Access to finance through special channels/USAID Development Credit Authority (DCA) .......................... 50 Public-Private Partnerships ......................................................................................................................... 51 Inclusive Development ................................................................................................................................ 53
Monitoring & Evaluation ............................................................................................................................. 55 Communications ......................................................................................................................................... 60
SECTION III ..................................................................................................................................................... 63
HIGHLIGHTS OF ACTIVITIES PLANNED FOR FY19 Q3 (APRIL-JUNE 2019) ................................. 63
SECTION IV ..................................................................................................................................................... 64
PROJECT ADMINISTRATION ................................................................................................................... 64
Level of Effort Report .................................................................................................................................. 64 Administration and Finance ........................................................................................................................ 64
ACRONYM LIST
ANAT National Association of Travel Agencies of Moldova ANTRIM National Association for Inbound Tourism APIUS Employers Association of Light Industry ASW Association of Small Wineries ATIC Moldovan Association of Private ICT Companies B&B Bed & Breakfast B2B Business to Business B2C Business to Company BSCI Business Social Compliance Initiative CEED Competitiveness Enhancement and Enterprise Development CIS Commonwealth of Independent States COP Chief of Party COR Association of Creative Companies DCFTA Deep and Comprehensive Free Trade Agreement DCOP Deputy Chief of Party DO Development Objective EU European Union ERC/EMMP Environmental Review Checklist/Environmental Mitigation and
Monitoring Plans FI Founder Institute FCL Future Classroom Lab FY Fiscal Year ICT Information and Communications Technology ICTCE ICT Center of Excellence (Tekwill) IDC International Data Corporation ISO International Organization for Standardization. ISO 9001:2015 International standard “Quality management systems – Requirements” ISO 45000:2018 International standard “Occupational health and safety management
systems - Requirements with guidance for use” JAA J.E. Austin Associates K Thousands LOP Life of Project M Millions MARDE Ministry Agriculture, Regional Development and Environment MCCI Moldovan Chamber of Commerce Industries M&E Monitoring and Evaluation MIA Moldovan Investment Agency MECR Ministry of Education, Culture and Research MICE Meetings, Incentives, Conferences, and Events Tourism MODARTS Modular Arrangements of Predetermined Time Standards MOU Memorandum of Understanding NJAL Not just a label ONVV National Office of Vine and Wine PDO Protected Designation of Origin PGI Protected Geographical Indication PIRS Performance Indicator Reference Sheet PMP Performance Monitoring Plan PMU Project Management Unit PPP Public Private Partnership PR Public Relations PQUP Product Quality Upgrading Program Q Quarter
UK United Kingdom SEED Sector, Engagement, Enhancement, and Development Fund SMART Streamline Manufacturing, Accountability, Resource Efficiency, and
Transparency SME Small and Medium Enterprise STTA Short-term Technical Assistance TBD to be determined TOT Training of Trainers ToL Tree of Life TUM Technical University of Moldova USAID United States Agency for International Development USD United States Dollar USG United States Government WFTGA World Federation of Tourist Guide Associations WoM Wine of Moldova WTAP Wine Tourism Accelerator Program Y Year
EXECUTIVE SUMMARY
WINEGROWING INDUSTRY In Q2Y4, MCP continued to improve the quality of Moldovan wine through technical training, equipment upgrades, and mentoring. With MCP assistance, 81 gold, silver and bronze medals were awarded to Wine of Moldova at international competitions. The project invested in viticulture research and knowledge development for key decision makers, and the industry was united at the National Office for Vine and Wine (ONVV) annual congress. Increasing productivity, quality and skills: MCP concluded its technical assistance for the processing of the 2018 grape harvest under the ASW Mentorship and PQUP quality improvement programs, and prepared for the fourth intake of both programs. Graduates of these programs won medals and mentions at domestic and international competitions, including Mundus Vini and Berliner Wine Trophy. Improving market linkages: Wine of Moldova was promoted at leading wine trade expos in Europe and Asia. Over 250 industry professionals were trained in wine service, gastronomy, wine and food pairing, and olfactory analysis. Strengthening business enabling environment: MCP supported the ONVV Annual Conference to consolidate the wine industry and provided assistance to enhance the self-management and quality control activities of the PGI Association through three regional assessment tastings.
TOURISM INDUSTRY
In Q2Y4, MCP activities focused on international promotion, expanding market linkages, and offering support to local tour operators to diversify their tourism products in preparation for the upcoming 2019 tourism season.
Increasing productivity, quality, and skills: The project focused on strengthening Moldovan tourism services by delivering a WFTGA tourist guide course to align local tourism professionals with international quality standards. MCP also updated the Tree of Life 2019 calendar, Moldova’s first tool to promote attractive rural and urban festivals in target markets. Improving market linkages: Moldova was promoted at leading travel expos in the target markets of Italy, Romania, and Germany with wraparound PR activities in partnership with the Moldovan Investment Agency and Wine of Moldova. Moldovan tourism industry stakeholders also participated in targeted B2B events such as the WFTGA Convention in Georgia and IWINETC Wine Tourism Conference in Spain with the aim of learning new tools to improve and diversify local tour guide and wine tourism services. Strengthening business enabling environment: MCP continues to support ANTRIM to become the leading inbound tourism organization on the local market. ANTRIM welcomed two new members, ATU Winery and Winetours tour operator, continuing to develop a representative voice for the whole tourism industry private sector. Additionally, MCP worked closely with the Ministry of Economy to outline fiscal legal proposals for rural tourism service providers and guides.
LIGHT INDUSTRY Increasing productivity, quality, social responsibility and skills: MCP delivers a complex support package to support Moldova’s light industry enterprises, including awarding targeted grants and providing assistance to implement innovative methods to streamline manufacturing and increase productivity, to learn best practices in productivity and full-service manufacturing, to implement improved social performance by undergoing inspection for the Business Social Compliance Initiative (BSCI) AMFORI Social Audit, and to implement Integrated Quality Management System standards to build companies’ reputation as a reliable manufacturing partner. These interventions have led to 22.6 per cent productivity growth in supported companies, enabled assisted firms to win outsourcing contracts from EU clients worth $297,356 USD, and secured 2,100 well-paid jobs, mostly for women. MCP fashion hub ZIPhouse partnered with an EU for Business project and UK aid to deliver extended light industry workforce development programs. ZIPhouse Fashion Academy brings intensive courses on Fashion Management and Fashion Collection Development from international organizations to Moldova, while the Fashion Accelerator Program, Flying Designers and Z Young Designers Competition continue to develop the skills of young fashion entrepreneurs. Improving market linkages: 28 companies attended 13 international trade shows, generating over $297,356 USD in new export contracts to Ukraine, Romania, France, Kazakhstan and other markets in the region. A ZIPhouse Fashion Accelerator Program (FAP) graduate was invited to present a collection at Marbella Fashion Week in Spain, while the winner of the first FAP was featured by NOT JUST A LABEL (NJAL), the world's leading designer platform. Forty local brands showcased their designs at an expanded Spring/Summer 2019 Moldova Fashion Days. Strengthening business enabling environment: MCP reached an agreement with the Moldovan Investment Agency (MIA) over cost-sharing for 2019 light industry promotional activities, contributing to the long-term sustainability of these programs. Joint activities agreed for 2019 will include promoting Moldovan Light Industry companies in neighboring Romania. Local light industry association APIUS will be the main implementation partner for the MIA funds, building the capacity of the private sector to manage long-term trade promotion activities.
INFORMATION TECHNOLOGY, ENGINEERING AND CREATIVE SERVICES Increasing productivity, quality and skills: MCP continued to work on its flagship educational activities: Educational Robotics and Future Classroom Lab. The fifth edition of FIRST LEGO League Moldova took place with a record 62 competing teams, and the two winning teams were selected to represent Moldova at the Open International Championship in Turkey in May 2019. The Future Classroom National Center for Digital Innovation in Education was renovated and equipped, and is being prepared for its official launch in April 2019. MCP focused on critical phases of development for the Creative Hub, including institutional and legal arrangements, alongside ongoing infrastructure development which is expected to be completed in May 2019. MCP worked closely with the Regional Development Agency, the Ministry of Agriculture and Regional Development, and a local architecture company to finalize the blueprints and engineering plans for the Balti Innovation Center, in preparation for launching the public procurement process for building works in April 2019. Improving market linkages: MCP worked on the development of the IDC Report on Moldova’s IT Industry, which will be published in April 2019 and promoted to international
investors in the IT sector. MCP also supported companies from the creative services industry to participate in international events, increasing their network of clients and potential partners. Strengthening business enabling environment: MCP provided legal support to the administration of Moldova IT Park to support compliance with national reporting requirements and to attract new members. Additional support was provided to the Association of Creative Companies (COR) to increase its organizational and administrative capacity to manage the Creative Hub and implement an MCP grant for developing education programs at the Hub.
SECTION I
PROJECT TECHNICAL INTERVENTIONS DURING FY19 Q2 Chemonics International Inc. (Chemonics) and its partners, J. E. Austin Associates, Inc. and Bhavana World Project, are pleased to submit to the United States Agency for International Development in Moldova (USAID/Moldova) and Swedish International Development Cooperation Agency (SIDA), this Quarterly Report covering the period from January 1 through March 31, 2019.
WINEGROWING INDUSTRY
OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION)
PROGRAM 1. Upgrading quality and driving innovation in viticulture and winemaking
ACTIVITY 1. ASW (Association of Small Winemakers) Mentorship Program - support the emergence and development of small wine producers
The Small Winemakers Mentorship Program supports farmers to add value to their vine plantations. MCP support is complex, comprising peer mentoring for viticulture and winemaking operations, and targeted assistance for sustainable winery management, marketing, and sales. The ASW Mentorship program has three key objectives: support the institutional development of the Association of Small Winemakers; grow their internal capacities; and foster trust on behalf of their members, thus creating a sustainable ecosystem for development of family-owned wineries. ASW capacities for sustainability strengthened. MCP supports ASW to grow its capacities and provide additional services to its members, including procuring and renting winemaking equipment and offering educational programs and study tours. During the reporting period, MCP worked with the ASW executive team to identify and collect quotations for winemaking equipment, which will be available for members to use to create high quality bottled wine. The acquisitions list was submitted for a SEED grant extension, and includes critical equipment such as point-of-sale technology, bottling and oak barrel washing equipment, and labeling and capping machines. This equipment will be available for rent by ASW members and other wineries with ‘micro-winemaking’ projects, simultaneously enhancing the quality of ASW members’ bottled wine, and generating important income for the association to ensure its long-term sustainability. ASW also works as a common marketing platform for its members. To support this activity, MCP has been actively involved in developing the association’s annual activity plan, including determining and conceptualizing the association’s marketing and promotional activities. Within the plan, MCP has begun the process of upgrading the ASW website, and will allocate further resources following the approval of the plan by the association’s General Assembly later this year. Assistance via ASW Mentorship Program yields results in 2018 Wine Harvest. The ASW Mentorship Program pairs emerging small wine producers with experienced winemakers, and provides access to shared equipment to produce bottled wines, which are presented under a unified marketing and promotion platform focused on quality and the concept of so-called “author wines”. During the reporting period, MCP concluded the consultancy phase assisting seven start-up wineries (Dumitras Winery, Pomusoara Dulcisoara, GT Serghei Gherghelejiu, Rumix Stil, Vasile Tataru, Vinaria Lupascu and Lius
Crist) and seven emerging small winemakers (Dealu Morilor, Mihai Sava, Kara Gani, Nicolae Iurco, Crama Tudor, Leuntea Vin, Tronciu). MCP winemaking consultants worked hand in hand with these start-up and emerging small winemakers for a total of 193 level-of-effort days to produce high quality wines from the 2018 grape harvest, ensuring the correct and efficient use of the wineries’ new winemaking equipment. One small winemaker based in Gagauzia, Wintage SRL, received assistance to join ASW. Through consultation with his peers, Wintage’s winemaker Serghei Sari was able to develop detailed technical specifications of the equipment needed to implement quality bottled wine production. The project also provided new small winemaker Vinum SRL with marketing consultancy to help develop its marketing, sourcing, promotion and sales plans. ACTIVITY 2. ‘PQUP’ Program (Product Quality Upgrading Program): expanding the Wine of Moldova portfolio
The goal of the PQUP activity is to support ‘transition wineries’ to graduate to the ‘quality over quantity’ paradigm. This enables beneficiaries to convert their business models from a focus on bulk wine to the production of bottled wines with higher added-value, thus expanding the quantity of industry wines that are compatible with Wine of Moldova and Protected Geographic Indication quality standards. PQUP beneficiaries win recognition of wine quality at national and international competitions. Following a personal request from the management of large bulk wine producers Suvorov Vin/Kazayak to join the PQUP program, an MCP local winemaking consultant provided winery staff with the technical knowledge and quality control techniques to enable the transition to high-quality wine production, without the need for expensive investments in new winemaking equipment. The shift in quality resulting from Suvorov Vin’s first year of participation in the PQUP program was demonstrated by the company’s wine “Viorica 2018”, which won a gold medal and “Best in Show Moldova” at the prestigious Mundus Vini Spring Tasting 2019 international wine contest in Germany. MCP PQUP technical assistance for the processing of the 2018 grape harvest concluded during the reporting period. Four expert winemakers delivered 285 level-of-effort days to 14 program beneficiaries between September 2018 and March 2019, and the majority of wines produced by PQUP Program participants scored above average during the Moldovan regional assessment tasting organized by ONVV in January-February 2019. MCP is currently supporting eight program beneficiaries (Tomai Vinex, Vinia Traian, Novak Winery, Podgoria Vin, Migdal-P, Doina Vin and Agrici Winery) to start developing or modernizing their tourism infrastructure under the “Wine-up” program, significantly enlarging Moldova’s wine tourism offer.
Credit: Anatolii Cobzac
Female wine entrepreneurship celebrated in Moldovan Press. The Moldovan family winery Agrici was featured by more than seven flagship media portals in recognition of International Women’s Day, reaching hundreds of thousands of Moldovan viewers. The winery’s success as an exporter is due to the efforts of the owner’s wife and three daughters, who together run the administrative, branding, commercial, and operational activities of the business. As a result of complex MCP support, including investment in modern technology and marketing and branding expertise, Agrici directs a proportion of the two million liters of wine produced each year to high-value bottled wines, which generate an added-value four times higher than bulk wine. In just two years, the business has begun to export to high-value markets in Asia and the EU, including Sweden, Romania, and Switzerland. MCP supports transition wineries like Agrici to protect the livelihoods of over 50,000 people employed in Moldova’s wine industry and provide alternatives to migration for young people like the three Agrici sisters.
PROGRAM 2. Building knowledge for future growth
Wine of Moldova Academy trains 81 industry professionals in Wine Analysis. Twenty representatives from Moldova’s top wine exporting companies attended a five-day training titled “Olfactive Analysis and Identification of Wine Defects”, delivered by Swiss oenologist-perfumer Richard Pfister from Switzerland, and organized by Wine of Moldova Academy with support from MCP and the National Office of Vine and Wine (ONVV). Moldovan sales managers, marketing specialists and sommeliers are the wine industry’s secret weapon, promoting Moldovan wine at key B2B activities including trade fairs, exhibitions and professional wine events. However, MCP observations and expert opinion indicate that the majority of these professionals lack skills in professional wine description, and cannot always identify wine defects arising from storage and transportation issues. This training upgrades the skills of key members of this workforce, improving their ability to present, describe and analyze Moldovan wines to develop their image on the export market. Mr. Pfister also delivered three 2-hour intensive trainings for guides, sommeliers and waiters at Cricova winery, PQUP and ASW Mentorship program beneficiaries and local sommeliers, upgrading the knowledge and skills of an additional 61 industry professionals. The Moldovan wine sector lacks the qualified workforce needed to increase its competitiveness and respond to new demands of highly competitive markets, both in the EU and worldwide. Wine of Moldova Academy aims to address the continuous
The Agrici family in their winery in Milestii Mici village Credit: Eduard Bigzu
Graduates of the five-day course ‘Olfactive Analysis and Identification of Wine Defects’ conducted by oenologist-perfumer Richard Pfister, March 25-29, 2019 Credit: MCP
education needs of the wine industry and develop its workforce, based on the MCP Skills Gap Analysis and the industry’s own development goals. Due to oversubscription of the trainings offered by Mr. Pfister, this capacity building activity will be repeated in June 2019.
PROGRAM 3. Innovations and precision viticulture technologies to face
climate change and ensure high quality grapes ACTIVITY 1. “Best Grapes” and “FlaveDor” - piloting innovations in vineyard management and grape quality improvement
Results of FlaveDor and Best Grapes pilot projects disseminated to winegrowing industry. The results of the FlaveDor and Best Grapes pilot projects were presented to the public during two dedicated sessions of the 2nd Annual Wine Sector Congress, delivered by ONVV chief winemaking expert Elizaveta Breahna and chief viticulture expert Vladimir Corobca. The presentations provided the sector with cutting-edge insights into the best viticulture, plant care and winemaking practices for the Moldovan context, based on the conclusions of the two pilot projects supported by MCP. These results form the first building blocks of a database aimed at harnessing the potential of Moldovan terroir, increasing the knowledge and skills of industry professionals, and preparing the entire sector for the challenges of global climate change. The FlaveDor and Best Grapes pilots are implemented by PGI regional producer associations with support from MCP to pursue innovations in grape growing and precision viticulture technologies, and help build specialized extension services for grape and wine producers. The resulting insights will help Moldovan grape growers to adapt to the challenges of global climate change and ensure the production of high-quality raw materials for winemaking, the foundation of Moldova’s quality wine industry.
OBJECTIVE 2. EXPANDED MARKET LINKAGES
PROGRAM 1. Wine of Moldova international promotion program support
ACTIVITY 1. Build Wine of Moldova Brand Equity and Foster Business Linkages
Five years after its international launch, Wine of Moldova continues to diversify wine exports away from low value CIS markets. In March 2014, USAID supported the official launch of Wine of Moldova at the ProWein Dusseldorf wine fair in Germany, kick-starting the strategic pivot of Moldovan wine sales away from low-value markets like Russia, Georgia, Ukraine and former CIS economies. As a result, exports of high-value bottled wines have increased by 23 per cent in volume and 42 per cent in value since 2015, making Moldova’s wine industry – which provides income for over 50,000 farmers – more resilient to potential shocks from high-risk traditional markets. In 2018, the share of wine imports by former CIS countries decreased to just 31 per cent, almost 10 per cent less than in 2015, and 40 per cent less than in 2013 when Russia placed a major embargo on Moldovan wine, causing an industry-wide recession. Following Wine of Moldova’s complex marketing and communication campaigns, developed and delivered with support from MCP, exports to key EU target markets continued to increase throughout 2018 (Poland +6 per cent; Romania +5 per cent; Czech Republic +20 per cent) and exports to former CIS markets significantly decreased (Belarus -20 per cent; Kyrgyzstan -23 per cent; Ukraine -7 per cent). A recent Russian import ban on goods transiting Ukraine resulted in a significant increase in the shelf price of Moldovan wine imported via alternative routes, demonstrating the continued importance of diversifying export markets for the Moldovan wine industry.
Wine of Moldova celebrates 5th anniversary at ProWein, Europe’s largest wine fair. Wine of Moldova (WoM) celebrated its 5th anniversary at ProWein international wine fair in Germany, the largest exhibition dedicated to wine and spirits in Europe. MCP supported WoM to develop a concept for a totally new country stand, hosting 39 wineries and 450 Moldovan wines. The design of the stand included self-service areas for visitors to taste PGI wines, a giant video wall screening images of Moldovan vineyards, and a dedicated area that hosted three master classes held by international experts and opinion leaders: Caroline Gilby – Master of Wine, Sarah Abbott – Master of Wine, and Robert Joseph – a top-20 global influencer and marketing expert. The winners of 19 gold and 23 silver medals at the recent Mundus Vini wine competition were also presented in a special pavilion at the wine fair, alongside award-winning wines from the 60 most recognized wine regions in the world. This success has received extensive free international media coverage, and the press release reporting Moldova’s activities at ProWein received visits from more than 245 international news portals with a total potential audience exceeding 135.8 million viewers, including platforms like Meininger Wine Business International, Deutsche Welle, Sommeliers International, Bloomberg, Reuters, France Presse, and Europa Press. Wine of Moldova expands into regional market in Transylvania, Romania. In 2018, Romania became the number one export destination for bottled Moldovan wine by value, accounting for over 12 per cent of Moldova’s total bottled wine export revenues or over $9 million USD. Every fourth bottled of wine imported into Romania now originates in Moldova, with the majority of sales concentrated in the capital, Bucharest, and the south of the country. To diversify into broader markets in other areas of Moldova, MCP supported ONVV to cost share the participation of 14 wineries in the regional trade fair Wine Up and its satellite wine contest: Wine Up Official Selection in Cluj-Napoca, Transylvania. This activity increased regional awareness and preference among wine connoisseurs in this wealthy region, and will generate new business opportunities for existing wine importers. Wine of Moldova continues to dominate in Chinese wine market, despite industry recession. China was the number two export destination for bottled Moldovan wine in 2018, realizing impressive sales of $8.8 million USD, 75 per cent more than in 2015 (when MCP began). Despite internal political trends in China causing a dramatic decrease in consumption of imported wines, Wine of Moldova still managed to increase its 2018 exports 3 per cent above its three-year average. With MCP support, ONVV facilitated 29 wineries to participate in a Wine of Moldova booth at the 100th anniversary edition of China Food and Drinks Fair, held in Chengdu, China, capitalizing on this momentum. The Wine of Moldova stand was placed at the entrance to the exhibition, enabling it to visibly outpace other exhibiting countries in volume of visitors, exceeding 2000 interactions over the course of the three-day exhibition. MCP beneficiaries and PQUP program graduates Vinuri de Comrat and Tartcomvin (Novak winery) used these interactions to establish business relationships and sign three contracts for wine export while at the exhibition, an outstanding achievement in a
The Wine of Moldova stand at ProWein 2019, presenting 450 wines from 39 wineries to more than 6,000 attendees. Credit: Wine of Moldova
sector where it usually takes 6 to 18 months for a business contact to develop into a contract for shipment. MCP promotes Moldovan wine products to emerging Japanese market. Japan imports 200,000 liters of Moldovan wine each year with an average price of $2.9/liter, and the market has grown by 75 per cent since 2016. To capitalize on this rapidly emerging market, MCP partnered with Wine of Moldova and the Embassy of Moldova in Japan to organize a complex promotion event and bilateral trade mission in Tokyo. On February 1, 2019, Wine of Moldova showcased over 500 wines from 15 Moldovan wineries alongside unique wine tourism products to over 120 Japanese wine importers, distributors and sommeliers, 12 press representatives, and Japanese officials from the Ministry of Foreign Affairs, including the Deputy Minister for Foreign Affairs, and the President of the Association Wine Importers. On February 2, 2019, MCP wine expert Diana Lazar held a series of business meetings at Moldovan restaurant “Noroc” in Tokyo, presenting Moldovan wine to several Japanese wine importers and representatives of the Japanese Sommelier Association in a more intimate setting. This trip was a key step towards developing a strategic marketing plan for Moldovan wine exports and inbound tourism in 2019-2020 targeting the Japanese market, which will be funded by MCP in partnership with ONVV, the Moldovan Investment Agency (MIA), as well as the Ministry of Education, Culture and Research. Moldova doubles medal record at leading international wine competition. Moldovan wines won 42 medals (19 gold and 23 silver) and two Best of Show awards at one of the most important wine competitions in the world, Mundus Vini Spring Tasting in Germany. These results almost double Moldova’s previous record of 22 medals (eight gold and 14 silver) at Mundus Vini 2018, demonstrating continued improvements in wine quality. Wine of Moldova went on to win a further 31 medals at international wine competition Berliner Wein Trophy in Germany, including 1 Great Gold Medal, 25 Gold Medals, and 5 Silver Medals, while Fautor Winery was named the Best Producer in Moldova, winning multiple awards. Competition at the Berliner Wein Trophy is strict: over 7,300 wines were judged from more than 200 international wine experts representing 30 different countries, and only 1/3 of competing wines qualified for medals, making Moldova’s performance all the more impressive. MCP supports
Moldovan Ambassador to Japan, Vasile Bumacov presenting Moldovan wine to the high-ranking officials in Tokyo Credit: MCP
Capture from the official Mundus Vini website on the Moldovan awards in 2019.
Moldovan winemakers to participate in international competitions like Mundus Vini and Berliner Wine Trophy to develop international credibility and stimulate exports. In 2018, Moldovan wineries won 481 medals and awards at 27 international wine competitions, including 121 wins by direct MCP beneficiaries. Moldova gains recognition in famous winegrowing countries France and USA. Moldovan wineries are being increasingly recognized by highly competitive wine producers like France and the USA. During the reporting quarter, Fautor winery’s ‘Negre 2017’ won a Bronze Medal at the Cincinnati International Wine Festival in the USA. Fautor then continued this streak at Concours International de Lyon in France with one gold medal and six silvers, and small wine producer Vinaria Dac also achieved success with one silver medal at the same competition. ACTIVITY 2: Export Support Program (ESP): increased wine sales on target markets through firm-level marketing support
Three New Generation wineries boost exports to neighboring Romania with targeted promotion campaigns. During the reporting period, MCP worked closely with three New Generation wineries to support their expansion on Romanian market. Targeting wine connoisseurs in Romania, the project supported Gitana Winery to develop a communications campaign to increase premium bottled wine exports by 50 per cent to 150 thousand bottles a year, with an average price of EUR6.9 per bottle (2.8x higher than the average export price of Moldovan wine). Following the successful launch of Timbrus wines on the Romanian market, which resulted in over 80,000 bottles sold in the first 12 months, MCP supported the winery to launch a social media promotional campaign with the aim of doubling Romanian exports to 160,000 bottles. Vinaria din Vale is also poised to launch a creative campaign in Romania, targeting both the modern trade and HoReCa market segments and based on market intelligence data, branding and promotion support provided by MCP. MCP has been implementing a firm-level Export Support Program for key wineries since 2015, complementing the Wine of Moldova marketing and promotion framework. To date, more than 18 wine producers have benefitted from the program targeting markets in Romania, Poland, Germany and Austria, resulting in average growth of 135 per cent year on year. Leading wine exporter expands product portfolio on regional Czech wine market. The volume of wine exports to the Czech Republic increased by 20 per cent in 2018, indicating the increasing importance of this market for high quality Moldovan wines. In light of this, MCP is supporting Moldova’s third largest wine exporter, DK Intergrade, as it plans to ship several batches of premium dry wines to the Czech Republic, opening a new category for all Wine of Moldova on this market. This tailored support package is adapted to the size of the company, its role in contributing to national brand equity on export markets, and the anticipated effects on other beneficiaries and groups of beneficiaries. Requiring at least a 50/50 cost-share by DK Intergrade, this project marketing assistance under the MCP Export Support Program will benefit the WoM national brand image across the Czech wine market, with spillover effects to other Moldovan winemakers.
PROGRAM 2. Enhance wine culture and grow a mature local market
International wine and gastronomy experts build the skills of domestic wine, restaurant, and tourism industries. Brigitte Leloup, Vice-President of the European Sommelier Association, returned to Moldova for the second year in a row to deliver a series of capacity building activities aimed at developing Moldova's domestic wine culture. In total, 30 Moldovan wine specialists attended a two-week training at the Technical University of Moldova to qualify for the internationally recognized European Sommelier Certificate.
Mrs. Leloup also provided additional master classes and workshops across the hospitality sector, including a training for tour guides in partnership with tourism association ANTRIM, and trainings at Asconi, Castel Mimi, Milestii Mici, and Vinaria din Vale wineries. MCP supports activities like these within its Wine Friendly program to develop the domestic wine market, which accounts for 20 per cent of total industry sales, and 75 per cent of sales for small winemakers. Providing trainings by international wine experts like Mrs. Leloup facilitates the emergence of a new generation of Moldovan sommeliers who can continue to expand this market, which has grown by 10 per cent since 2014. Chef Alain LeLoup provided a gastronomic masterclass for restaurants, chefs, and wineries to develop their ability to meet the demands of the growing gastronomic tourism segment in Moldova.
OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY
PROGRAM 1. Policy upgrading and legal regulatory reforms in the wine industry
ACTIVITY 1. Support ONVV to continue policy, legal and regulatory reforms
ONVV delivers second national Wine Congress. In March, ONVV organized the second National Wine Congress at Tekwill, gathering over 100 participants from 25 wineries, the Moldovan press and academia to disseminate updates, results and recent changes within the Moldovan wine sector. The event underlined the increasingly important role of ONVV as the leading organization in Moldova’s wine sector, and signaled its increasing transparency towards both the industry and the public. During the congress, ONVV management made presentations about the overall state of the sector, wine exports, the current legislative and normative situation governing the industry, and the 2018 harvest results, as well as more technical subjects such as particularities related to the 2018 winemaking season, the management of vine diseases and vineyard care.
ONVV Director Mr. Arpentin presents the results of the 2018 harvest to the public at the 2nd Annual Wine Congress, Chisinau, March 6, 2019 Credit: ONVV
Participants at the two-week training for the internationally recognized European Sommelier Certificate Credit: Technical University of Moldova https://utm.md/blog/2019/02/28/diplome-de-sommelier-recunoscute-de-parlamentul-european/
ONVV strengthens institutional capacities with MCP support. ONVV is the leading PPP in Moldova, and the key voice of the Moldovan wine sector, representing grape growers and wine makers at the national level. During the reporting quarter, ONVV experienced a series of institutional management challenges, amplified by staff turnover, which threatened the sustainability and governance of the PPP. The ONVV Coordination Council requested support from MCP, the repository of institutional knowledge about the organization, to review the PPP’s internal regulations (codes, protocol and procedures) and other governing documents to increase transparency and accountability across the wine sector. The results of this review will be presented to the ONVV board in the next quarter, including recommendations and actions to streamline its procedures and achieve a higher efficiency of allocated resources. MCP also took part in ONVV operational management and decision-making processes at two sessions of the ONVV Coordination Council and one session of the ONVV marketing committee, supporting its role in strengthening the Moldovan wine sector’s business enabling environment. ACTIVITY 2. Finalize the Wine of Moldova 2030 strategy to guide long-term industry competitiveness, and promote in the Government
ONVV continues to develop Wine of Moldova Strategy 2030 with strong MCP Support. During the reporting quarter, MCP continued to support ONVV to develop the Wine of Moldova Strategy 2030, building on work conducted in Y3 including scoping visits to Napa Valley in California, the Rioja region in Spain and Cote du Rhone, France. MCP works to prepare the Moldovan wine sector to face international wine competition and ensure the sustainable development of the winegrowing industry in the context of global climate change, based on international best practices and drawing on international and local expertise. To effectively support the development of Moldova’s wine industry, the resulting strategy must be fully embraced by the private sector and supported by the Moldovan government. Taking this into account, MCP advised ONVV to scale back its work to develop and relaunch the sectorial strategy during the quarter, in light of political uncertainty following the Parliamentary elections held in February, and private sector concerns about the organization’s transparency and expertise. ACTIVITY 3. Develop and strengthen the PGI wine associations
PGI wines demonstrate quality at Regional Assessment Tastings. ONVV, in partnership with the Moldovan PGI Associations, organized 3 regional assessment tastings to assess the quality of the wines resulting from the 2018 harvest. These events demonstrate the increased autonomy of the wine private sector, and reinforce the self-governance and quality control functions of the PGI Associations. At the events, official tasters and representatives from the PGI Associations blind-tasted over 300 wine samples and evaluated them according to an internationally accepted 100-point OIV scale, using tasting software developed with MCP support. The results were made public to the members of the associations to assess the overall level of wine quality produced in each region, and to inform association members about quality issues detected in some wine batches. The majority of wines produced by MCP beneficiaries under the PQUP and ASW Mentorship programs scored above average in these tastings, demonstrating the positive impact of the project’s investments in quality upgrades. Wine certified as originating from a PGI region is traditionally sold on European markets at prices 15-20 per cent higher than the same wine with a generic label. MCP supports Moldova’s four PGI regions to organize their internal control procedures, clarifying and adjusting the PGI technical specifications required to promote the specific features of each wine region.
TOURISM INDUSTRY
OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION)
PROGRAM 1. Start-up Tourism Moldova: product development, service quality upgrading and tourism offer diversification
ACTIVITY 1. Wine-Up: Wine Tourism Accelerator Program
19 Wineries assisted to develop new tourism facilities. MCP provides tailored assistance to 19 wine companies from Stefan Voda, Valul lui Traian and Codru (three regions outside the capital) to upgrade or develop new tourism facilities and services. These range from developing the ability to host basic wine tastings to showcasing wine production facilities and vineyards, and at the most advanced level, organizing wine festivals, shows, and gastronomic experiences. MCP encourages supported wineries to engage in partnerships with local community members, with the goal of fostering regional sustainable development and serving as a tourism attraction that can result in the emergence of, and support existing, rural pensions, hospitality businesses and local tourism attractions.
MCP continues to roll out the Moldova Wine Trail. During the reporting quarter, 10 new road signs were installed in the districts of Straseni and Comrat (in Gagauzia) as part of the Moldova National Wine Trail. The new signs direct tourists to local tourism destinations including Chateau Cojusna, Kara Gani winery, Vinuri de Comrat, the horse farm at Prolin, and the National Museum of History and Ethnography of Gagauzia. Access to information is essential to enable autonomous tourists to explore a country and access destinations outside the capital. MCP delivers the National Wine Trail road sign project in partnership with the Ministry of Economy and Infrastructure and the National Office of Vine and Wine (ONVV) to facilitate foreign visitors and domestic tourists to access key sites, encourage road trips and stimulate tourism. A total of 156 informative road signs are planned across Moldova. Eight wineries and tour operators develop knowledge and connections at IWINETC Wine Tourism Conference in Spain. Wine tourism has become a key driver of Moldova’s tourism sector, however there is still a clear need to increase the quality of Moldovan wine tourism services and the attractiveness of the tourism product. MCP supported a delegation of five wineries and three tour operators to attend the 11th Annual International Wine Tourism Conference, Exhibition & Workshop (IWINETC) in Spain to discover new trends in wine tourism, including new types of wine tourism product, social media strategies, sustainable tourism practices and new start-up initiatives. The participating tour operators extended their attendance at the conference to meet face-to-face with international tour operators and travel agents at a specialized B2B workshop, expanding their business contacts and establishing new partnerships.
Agrici Winery plans for developing new tourism facilities – current situation (l) and changes to be implemented with MCP support (r) Credit: MCP
ACTIVITY 2. Hospitality+ Moldova program: improving tourism hospitality infrastructure
14 B&Bs improve tourism hospitality infrastructure with authentic upgrades. MCP is supporting 14 B&Bs in rural areas to improve the quality of their hospitality infrastructure in order to position Moldova as an attractive tourism destination for Western tourists, based on authentic, quality service provision, sustainability, and the safeguarding of traditions. Each beneficiary was consulted by a designer / architect engaged by the project, resulting in sensitive proposals for strategic upgrades to the hospitality facilities. At present, nine B&Bs are still in the designer / architectural consultancy phase, and five B&Bs have progressed to the construction phase, with all facility rehabilitation work executed under the strict supervision of the designer.
Rural guesthouses win stellar reviews on booking websites following MCP investments. Rural guesthouse Vila Roz won the 2018 Guest Review Award from international tourism platform Booking.com, after maintaining an average customer satisfaction rating of 9.5 out of 10. Visitor reviews frequently mentioned their appreciation for the guesthouse’s rustic atmosphere, traditional meals, and access to bicycles, all features that were financed through MCP grants and consultancy for quality renovations and product development. Meanwhile, rural guesthouse Hanul Lui Hanganu on the banks of the river Nistru, 120km from Chisinau, has also achieved a “Superb” quality rating on Booking.com, with an average review of 9.4 out of 10. Guests describe the business as “Moldovan, with a Western Europe service level (incredible rate price/value)”, again the result of extensive consultancy services provided by MCP. Most recently, Hanul lui Hanganu has installed a small playground on its
Anisoara B&B from Trebujeni village selected for developing tourism facilities – current situation and architecture concept to be implemented with MCP support Credit: MCP
grounds with MCP support, broadening its appeal to families with children, a large segment of the Moldovan tourism market.
Moldovan tour guides develop professional networks and skills at the Annual Global Convention of the World Federation of Tourism Guides Association (WFTGA). Tour guides are key stakeholders within the tourism industry value chain, providing valuable services to tourism agencies, tour operators and wineries, and directly to tourists. Moldovan tourism experts have indicated that the quality of local tourism services is not in line with Western standards, and the increase in inbound tourism is causing a shortage of guiding services across the country. To address this issue, MCP supported a delegation from the Association of Guides, Lecturers, and Translators to attend the Annual Global Convention of the World Federation of Tourism Guides Association (WFTGA) in the Republic of Georgia in January 2019. The delegation registered the Moldovan association as member of the WFTGA, took part in professional workshops, and developed relationships with international tour guide trainers and professionals. 23 Moldovan Tour Guides Gain International Accreditation. MCP partnered with inbound tourism association ANTRIM to organize an intensive professional training course for 23 Moldovan tour guides and nine trainers, accredited by the World Federation of Tourist Guide Associations (WFTGA). Capacity building for the Moldovan tour guide profession is a key step towards the professionalization of Moldova’s tourism industry, and will strengthen the services provided to tourism agencies, tour operators, wineries, and visitors to Moldova, improving the reputation of the country on the international market. The long-term goal is to prepare and
Annual Global Convention of the World Federation of Tourism Guides Association (WFTGA) in the Republic of Georgia Credit: MCP
Booking.com Award for Rural B&B Hanul lui Hanganu and new children’s playground at the guesthouse funded by MCP. Credit: Hanul lui Hanganu Facebook page.
23 tour guides and nine trainers graduate from the World Federation of Tourist Guide Associations accredited training, organized by MCP. Credit: MCP
equip the Moldovan Association of Guides, Lecturers, and Translators to be able to run these courses at the national level, assisted by the newly accredited Moldovan trainers, ensuring continuous education for local guides and aligning them to international quality standards. This training is the direct result of MCP support for the Moldovan tour guide delegation visit to the WFTGA Annual Global Convention in Georgia, and the new membership of the Moldovan Association of Guides, Lecturers, and Translators in the WFTGA. MCP launches 2019 Tree of Life Calendar in cooperation with ANTRIM tourism association. The 2019 Tree of Life tourism calendar was launched during the reporting quarter, showcasing 30 events planned throughout the year including six cultural, nine wine, four sports and 11 folklore events, festivals and activities across the country. This year, six brand new events are included in the agenda, including music festivals, winemaking workshops, and carpet exhibitions. The calendar, which is published under the national tourism brand Tree of Life, will be used to promote Moldovan tourism opportunities in target markets such as Poland and Italy, allowing visitors to plan their trips around different festivals showcasing Moldovan wine, traditions, customs, and important tourist attractions. In 2019, 60 per cent of the events take place outside the capital, driving tourists towards rural areas where they bring valuable cash flow and stimulate the local economy. MCP supports first awards ceremony for Moldovan hospitality industry. MCP supported the first edition of the Moldovan Association of Restaurants “MAR” excellence awards for the Moldovan Hospitality, Restaurant and Catering (HoReCa) sector. Awards were made across the sector, in categories including best restaurant, best cafeteria, best bartender and best food blogger. Moldova’s wine and gastronomy sector is a key draw for international tourists, and this new award will contribute to the growth and quality of the HoReCa sector by acknowledging the best practices in the field and stimulating the competition between industry players.
MCP Startup Tourism program incentivizes local tourism agencies to develop inbound tourism products. Moldova is the least visited country in Europe according the World Tourism Association, and the inbound tourism industry must up its game to draw potential visitors away from competitors in the wine, soft adventure and post-soviet market segment. To facilitate this, MCP offers tailored support to Moldovan tourism agencies to upgrade their promotional platforms and products as part of the Startup Tourism program, adjusted to the specific needs of each beneficiary. Winetours tourism agency received assistance to create a new online platform, winebus.md, which provides visitors with the ability to easily arrange private transportation between wineries and tourist destinations. MCP provided strategic guidance and assistance to GSA Global to develop its own web platform, enabling the company to better present its tourism products and packages to foreign partners and expand business linkages. Finally, the project also provided support to tourism agency Tatra Bis to begin upgrading its visual identity and improve the positioning of the company through the development of attractive promotional materials.
2019 Tree of Life calendar of touristic events developed by ANTRIM tourism association. Credit: ANTRIM
Chisinau Tourism Information Center organizes first bike tours. The first bicycle tour of the Moldovan capital, Chisinau, took place in March as a partnership between the Chisinau Tourism Information Center (TIC) and local bicycle company Velopoint, both MCP grant beneficiaries. The inaugural group of 10 tourists included three foreign visitors plus local journalists and bloggers, and was promoted on social media using hashtags and live video streaming. The bike tour is the latest tourism product to emerge from the TIC and is accessible in six languages including English and Italian, targeting Moldova’s most popular international tourism markets. The TIC opened in 2017 as a public private partnership between USAID, Sweden, the EU delegation, UNDP, and the industry tourism association ANTRIM, and welcomed more than 8,000 visitors in its first year, 83 per cent of which were from overseas target markets including Romania, Poland, Italy, and the USA.
ACTIVITY 3. Go-Regional Tourism Start-Up: unveiling the tourism potential of Orheiul Vechi reservation and Purcari region
Rural B&Bs in Orheiul Vechi prepare to offer birdwatching activities to tourists. Birdwatching is a lucrative segment of the tourism industry, with enthusiasts willing to travel long distances to see rare birds in their natural habitat. To capitalize on this niche in conjunction with International Bird Day, MCP organized a training for seven rural guesthouses within the Orheiul Vechi nature and culture reserve to encourage visitors to access existing birdwatching trails within the reserve, and to provide access to binoculars and birdwatching maps funded by the project. The initiative builds on MCP’s previous work to develop a pilot birdwatching area within the reserve. A suite of six tourist trails for bird watching, hiking and cycling in Orheiul Vechi were opened in October 2018, providing opportunities for tourists to see more than 100 species of bird (30 per cent of the total bird biodiversity in Moldova), providing opportunities for local guesthouses to diversify their tourist offer and extend visitor stay time in the region.
OBJECTIVE 2: EXPANDED MARKET LINKAGES PROGRAM 2. Tree of Life Marketing Program: unveiling the hidden gems of Moldova to the world ACTIVITY 1. Placing Moldova on the map of world tourism: building brand equity and international awareness of Moldova as a tourism destination Results of the Tourism Survey 2018 confirm MCP’s strategic focus on wine tourism. The 2018 Moldova Tourist Survey Report supported by MCP confirms the project strategy of promoting wine tourism and genuine hospitality as key tourism attractions and positioning Moldova as a leisure/soft adventure and wine tourism destination. The survey interviewed 1,025 foreign visitors during the 2018 tourism season and revealed that almost 70 per cent of American visitors and 43 per cent of French visitors were attracted to Moldova by the
Facebook Advert for the Tourism Information Center / Velosport partnership providing the first tourism tours of Chisinau by bike Credit: Chisinau Tourism Information Center
opportunity to taste local wines, alongside 30 per cent of all tourists aged 18-25. The survey results also provided key insights into the preferences of target nationalities, including reasons for visiting, potential locations, and types of tourism activities. Overall, the survey’s conclusions confirm MCP’s current strategic initiatives, including the focus on wine and gastronomic tourism, and will serve to inform the development of the next phase of Moldova’s tourism strategy. Moldova featured by Reuters and Euronews following MCP investment in wine tourism promotion. The 2019 Milestii Mici Wine Run, a six-mile race through the world’s largest wine cellar, located just an hour outside the capital Chisinau, was picked up by international news agencies Reuters, Euronews, and Yahoo News, and was further highlighted in wine publications such as Wine Spectator, Food and Wine, and Decanter Magazine. On January 20, 2019 more than 350 athletes from Moldova, Romania, Ukraine, the UK, and the United States took part in the Milestii Mici Wine Run, whose cellars are featured in the Guinness Book of World Records. The race is part of the MCP-supported Tree of Life tourism calendar, which promotes cultural, soft adventure, and wine-tourism events, drawing high-spending international visitors to Moldova’s rural areas.
Moldovan wine tourism featured in leading international gourmet magazine. The leading international gourmet magazine Food & Wine, with a total circulation of 934,971, has published a feature focusing on luxury wine tourism opportunities in Moldova, including Castel Mimi’s future wine spa, inspired by the famous Les Sources de Caudalie in Bordeaux, France, which will open in the Spring, and the 12 traditional thatched cottages, which will be available at Asconi winery in June. MCP works closely with large and small wine producers across Moldova to help them develop attractive, authentic wine tourism opportunities. Twenty wineries are part of the MCP-supported Wine Tourism Accelerator Program, and the number of wineries offering tourism services in Moldova has doubled since 2015. The article in Food & Wine magazine is a direct result of MCP’s public relations efforts, including supporting press trips for international tourism journalists to increase awareness about Moldovan tourism opportunities in target markets.
Capture from the foodandwine.com portal
Capture from Reuters.com article about the 2019 Milestii Mici Wine Run
Updates to the Strategic Tourism Marketing and Promotion Framework completed. Under MCP leadership, the Moldovan Strategic Tourism Marketing and Promotion Framework 2019-2021 has been discussed and updated with the Moldovan Investment Agency and the Ministry of Economy and Infrastructure. The framework incorporates the results of consultations with key stakeholders from Moldova’s tourism industry and the tourism exit survey conducted in 2018, and was developed under the guidance of international tourism marketing expert Augusto Huescar. This updated framework will guide the international promotion of Moldova’s tourism under the Tree of Life country brand, resulting in more visitors and high value tourism dollars reaching Moldova’s rural regions. The long-term goal is to have this document as the official tourism strategy for Moldova. Traditional Spring Festival promoted to international tourists. Martisor is an ancient Moldovan tradition welcoming the advent of spring, celebrated throughout the month of March with a traditional pin worn on the left side lapel. In Chisinau, the festival is celebrated with a program of traditional folk performances, which attract visitors from across Moldova and abroad. MCP included the Martisor festival in the Tree of Life tourism calendar and supported international promotion of the festival and its cultural performances through a range of communications platforms, including a dedicated Facebook photo frame. Moldovan folk dance company JOC, which benefitted from MCP support for rebranding and promotion in 2018, played a key role in the Martisor festival, and closed the 53rd edition of the festival on March 10. MCP supports cultural events like Martisor as a key driver of domestic tourism, and a draw for regional tourists from the neighboring country of Romania. #BeOurGuest tourism campaign wins public vote. The award-winning #BeOurGuest tourism campaign won the public vote for Best Campaign at the Moldovan ADOR conference for the creative industry, a subsidiary event of the international ‘Night of the AD Eaters’ movement celebrating the advertising industry. Publicis, the agency behind the campaign, gave tribute to MCP’s trust in the creative process and the team who created the viral short film, demonstrating the project’s sophisticated relationship with Moldova’s creative industries. #BeOurGuest was produced with a budget of only $30K USD and earned more than 3 million views by potential tourists in Romania, Poland and Italy, becoming a news story featured in more than 100 publications, TV shows, and radio programs. The campaign won the ‘Best Destination Campaign’ prize at the 2018 ETRAVEL Romania conference, and in 2019 was invited to compete in the prestigious Emerging Europe Awards in the “Best Tourism Campaign” category.
#Beourguest tourism promotion campaign displayed for public voting at ADOR conference, Chisinau, March 30, 2019. Credit: Olesea Galusca, MCP
International branding concept to promote the Martisor spring festival Credit: moldova.travel
ACTIVITY 2. Foster business linkages and expand target markets
MCP promotes Moldovan tourism products to emerging Japanese market. During the trade visit to promote Moldovan wine to the rapidly growing Japanese market in February, MCP wine and tourism expert Diana Lazar met with Japan’s largest outbound travel operator selling tours to Moldova, Mr. Taninura, Jumbo Tours CEO, to discuss Moldova’s emerging tourism opportunities. The trip was a key step towards developing a strategic marketing plan for Moldovan wine exports and inbound tourism in 2019-2020 targeting the Japanese market, which will be funded by MCP in partnership with ONVV, the Moldovan Investment Agency (MIA), as well as the Ministry of Education, Culture and Research. MCP reaches agreement with the Moldovan Investment Agency (MIA) over cost-share for 2019 tourism and light industry promotional activities. MCP partners with the Moldovan Investment Agency (formerly MIEPO) to cost share international promotional activities for key export industries, contributing to the long-term sustainability of these programs. Joint activities agreed for 2019 include events to target the tourism markets in Germany, Romania, Italy and Poland, and promotion of Moldovan Light Industry companies in neighboring Romania. Targeted industry promotional materials and digital campaigns will be also jointly deployed for maximum impact. Local industry associations (ANTRIM for tourism, and APIUS for light industry) will be the main implementation partners for the MIA funds, capacity building each industry’s private sector to manage long-term trade promotion activities. Leading Italian tour operator includes Moldova in 2019 Tourism Catalogue. Moldova’s tourism potential has attracted the attention of leading Italian tour operator ‘Franco Rosso’, which included Moldova in its 2019 tourism catalogue. Italy is a key target market for the Moldovan tourism industry, and 3,100 Italian tourists visited Moldova in 2018 as a result of complex USAID promotional activities. Following Moldova’s success at Italian trade shows like BIT Milan in 2017 and 2018, more than 10 Italian tour operators have begun to promote tourism packages featuring Moldova, demonstrating that consistent and recurrent participation in trade shows is required for successful target market penetration. BIT - International Travel Exhibition returned to Milan in February, and MCP supported eight Moldovan tour operators and wineries to participate in 2019 BIT International Travel Exhibition in Milan. The delegation shared a common booth under the national “Tree of Life” tourism brand and presented a master class of Moldovan traditional cuisine which drew high numbers of visitors to the booth. Joint Moldova-Romania tourism route launched. The Moldovan Investment Agency partnered with the Romanian Ministry of Tourism to develop the first Moldova-Romania cross-border tourism product, a tourism trail linking key sites associated with shared regional hero Ștefan cel Mare. The trail was launched in February at Romania’s largest tourism fair, TTR Bucharest, with attendance funded by MCP. This initiative builds on the MCP-developed national tourism strategy to target the Romanian market, which provides 25 percent of international visitors to Moldova each year. The development of this tourism trail demonstrates the sustainability of MCP’s work to strengthen Moldova’s nascent tourism industry and to build the capacity of the national institutions which support it.
Marketing material for the Stefan cel Mare Moldova-Romania tourism route developed by the Moldovan Investment Agency. Credit: MIA
Moldova returns to world’s largest tourism fair to showcase its distinct brand of authentic and gourmet tourism. ITB tourism fair in Berlin is the world’s largest and most important tourism trade show. This year Moldova’s participation took the form of a 45 square foot country booth shared by the Tree of Life and Wine of Moldova national tourism and wine brands. The booth was framed by a traditional tapestry showcasing Moldova’s combination of gourmet traditions and cultural heritage, which was part of the 130-meter embroidered canvas originally made for ProWein Trade Fair in 2018. With MCP support, eight tourism agencies and two wineries promoted Moldova alongside the virtual platform www.360.moldova.travel, under the #BeOurGuest promotion campaign.
OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY
PROGRAM 3: Re-Think Tourism Moldova. Building a sustainable public-private partnership
ACTIVITY 1. Re-think tourism industry: reformed policies and regulation to ensure sustainable development
MCP continues to make progress with the Ministry of Economy on the development of the Tourism White Paper. MCP has been working closely with the Ministry of Environment and Infrastructure and the tourism private sector since 2017 to draft a White Paper for Tourism Industry Regulatory Reform. The White Paper is an important milestone, outlining Moldova’s broader consensus on critical proposals to reform outdated tourism legislation, reduce business entry barriers, and propositions to align the industry with best international practice. In February, MCP worked closely with the Ministry of Economy (Economic Policy Division) to outline fiscal legal proposals including amendments to fiscal policy, Tax Code, and tourism-related legislation affecting rural tourism service providers (such as rural guesthouses) and guides. These legal proposals are expected to be finalized in May 2019 and submitted for Government and Parliament approval. ACTIVITY 2. Strengthen private sector voice to balance public-private dialogue
ANTRIM designs and implements NEXT Tourism Generation Academy to respond to the continuous need of qualified professionals in the field of tourism. Moldova’s tourism education infrastructure is inadequate to meet the needs of a high-performing tourism economy, capable of meeting the expectations of high-spending Western tourists. To address this, and with support from MCP, ANTRIM designed and launched the NEXT Tourism Generation Academy at the State University Faculty of Economic Sciences, Economics, Marketing and Tourism, to train young Moldovans in the soft and hard skills needed within a successful tourism industry. The two-week, practical open lecture series included guest speakers from the tourism industry who discussed the challenges of the sector with participating students and inviting them to participate in future projects initiated by ANTRIM and its partners. The lectures covered a variety of topics, including logistics and distribution in tourism, event management, leadership and human resources, tourism standards, product development and promotion. The open lectures were attended by more than 100 students. NEXT Tourism Generation Academy acts as a platform to connect Moldova’s tourism private sector with young professionals and provide them with the skills they need to enter the industry. As a result of these lectures, ten students obtained internships and job places at wineries, rural guest houses and tour operators, benefitting both the students themselves and ANTRIM member companies. ANTRIM welcomes two new members and passes 2019 action plan. MCP continues to support ANTRIM to become the leading inbound tourism organization in Moldova, and to
become the main representative of Moldovan tourism abroad. During the reporting quarter, ANTRIM welcomed two new members, ATU Winery and Winetours tour operator (both MCP beneficiary companies), continuing its mission to become the voice of the tourism industry private sector. ANTRIM held its Annual Board Meeting in March, where members passed the association’s action plan for 2019, including press trips, international trade fairs, familiarization tours, and local and international B2B events such as ANTRIM Incoming Forum.
LIGHT INDUSTRY OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION)
Launched in late 2015, ZIPhouse was created to address challenges in industry education, promote fashion startups, and encourage academia-industry collaboration. The center launched under USAID’s support (CEED II) and is managed by the Technical University of Moldova with the participation of APIUS, the fashion industry association. MCP continues to support ZIPhouse with a focus on capacity building and content development.
PROGRAM 1. Strengthening ZIPhouse as the flagship institution in workforce development and fashion startup acceleration
ACTIVITY 1. Enhance ZIPhouse institutional capacity
ZIPhouse and APIUS develop capacity to deliver high value-added services to light industry. MCP supports ZIPhouse Excellence Center to provide high quality, practical educational opportunities to strengthen Moldova’s light industry. In partnership with the International Trade Center in Chisinau, ZIPhouse hosted a tailored training for business support institutions to increase their institutional capacity. The training targeted key players within the Moldovan light industry entrepreneurial ecosystem, such as APIUS, ODIMM, EBRD, and the Chamber of Commerce, and also benefitted ZIPhouse itself. Participants improved their abilities to define their strategy, and to deliver high value-added services to a targeted audience to achieve the most impact, while ensuring financial sustainability and control over revenues. Participants also learned how to link strategy with performance measurement, and to use it to reinforce credibility and sustainability of the organization. More than 1,000 beneficiaries have engaged in 160 workshops, talent-contests, community building activities, business projects and other initiatives since its ZIPhouse launched in 2016. ZIPhouse supports light industry companies to source better accessories and improve final product quality. Access to high quality raw materials, accessories and finishing is key for Moldovan apparel manufacturers to improve their final product quality and achieve higher prices. ZIPhouse Excellence Center has become a key platform for suppliers to present new products and innovations to the fashion manufacturing private sector. In March 2019, ZIPhouse hosted a presentation from the YKK Group, a Japanese group of manufacturing companies which is the world's largest manufacturer of zippers and other fastening products. ACTIVITY 2. Boost fashion creativity, startups and community building
ZIPhouse launches third edition of the 6-month Fashion Acceleration Program. Following an intensive pitching day, 11 startups have been selected to enter the 2019 Fashion Acceleration Program (FAP), including eight potential fashion companies and three future lifestyle brands. Previous editions of the MCP-supported accelerator provided the participating entrepreneurs with access to expert-led business camps totaling 200+ hours of training, and 150+ hours of tailored coaching and one-to-one mentorship, covering brand building, market access, design, and pattern making. FAP has launched over 24 successful fashion startups to date, 15 of which have developed export-oriented business models. A constant supply of innovative, young fashion and lifestyle brands is vital for the continued growth of the Moldovan light industry sector. The program started with a training on “Business Model Canvas” with Matt Rutter, experienced mentor. The session was dedicated
to developing the business model of a startup, and participants learned how to work with several methods of analysis to improve their business model.
Z Generation Young Designers Competition develops future creative talent. During the reporting quarter, ZIPhouse launched the second edition of the Z Generation Young Designers Competition to showcase the extraordinary talents of Moldovan fashion students and to motivate them towards developing the added value, innovation and wearability of their creations. 32 candidates applied to the competition with a portfolio of presentations and sketches of planned collections, and 22 passed through to the next stage of the competition. Participants will attend an educational component, receive feedback on their sketches by local designers and receive training on styling. The competition will end on May 31, with a public catwalk and jury selection. The winners of first and second place will go on to showcase their works during the Fashion Soiree catwalk in the capital, Chisinau, and compete in an international Young Designers Competition in Kiev, Ukraine, to take place in July 2019. ZIPhouse is a co-organizer of the International Young Designers Competition, along with other 8 Eastern Europe countries. Moldovan startup designer featured on leading international Fashion Platform.
Moldovan startup fashion label Move and its Fall Winter 2019 collection Bohemian Muses, was featured on the home page and social media accounts of NOT JUST A LABEL (NJAL), the world's leading designer platform for showcasing and nurturing pioneers in contemporary fashion. MOVE, which specializes in womenswear made from hand-painted silk, won the first USAID-supported ZIPhouse Fashion Accelerator Program in 2017, and has since gone on to graduate from the one-week Fast Track Acceleration at FTA Milan, Italy. MOVE is now a successful fashion brand employing eight women at its studio in Chisinau and is invited to display its new collections at showrooms during Paris Fashion Week each year. MOVE products can be bought in Chisinau, Paris, and Milan. The adoption of MOVE by NJAL is an additional indication of the international
Jury of the Fashion Acceleration Program in the process of selecting program participants, February 12, 2019 Credit: ZIPhouse
Moldovan fashion startup Move featured on NJAL. Credit: NJL Facebook
respect Moldovan startup brands are enjoying, being recognized as a source of innovative and quality designs on the international fashion stage. Graduate of the 1st ZIPhouse Fashion Acceleration Program begins European Fashion Tour. Moldovan haute couture fashion brand EHO by Evgheni Hudorojcov took part in a two-catwalk fashion tour of Spain, which has resulted in invitations to expand into more European countries during Spring/Summer 2019. EHO’s ‘Dream of Andalusia SS 2019’ collection was presented at Marbella Fashion Week alongside two talented Georgian designers, where the brand also tested the European market during a two-day pop-up shop. EHO’s success in Marbella led to an invitation to showcase at an international festival in the Republic of Georgia in May 2019, and also to show the brand in a showroom in Germany in Summer 2019. EHO’s ‘Dream of Andalusia’ collection was also presented at Moldova Fashion Days on March 23, 2019 and ranked among the top-10 evening dresses shown at the event. EHO by Evgheni Hudorojcov graduated from the first edition of the ZIPhouse Fashion Acceleration Program and has gone on to find significant success on the Moldovan and Romanian market, as well as Milan and Paris. In 2018, EHO made its Asian debut at Harbin Fashion Week in China, and was subsequently featured in Vogue China, demonstrating the design quality of the brand and its power to penetrate high-value export markets.
ZIPhouse supports participation of 10 brands in Moldova Fashion Days Spring/Summer ’19. Moldova Fashion Days (MFD) is the most important event in the Moldovan fashion calendar. The 15th edition of MFD showcased 40 Spring / Summer 2019 collections from 37 Moldovan fashion labels to an eager domestic audience, including 10 local brands from the ZIPhouse design and technology excellence center community. Visitors to MFD also had the opportunity to buy products from twelve hand-picked brands at a ZIPhouse pop-up shop, and the buzz around the event was reinforced by dedicated social media hashtags and elegant refreshments. Programs like the 6-month Fashion Acceleration Program have fast-tracked the emergence of more than 24 startups to date. Supporting new brands to participate in MFD helps them to establish themselves on the domestic market, a vital launchpad to building local sales and the confidence to export.
Moldovan fashion startup EHO showcasing at Marbela Fashion Week Spain
Martely, the winner of ZIPhouse Acceleration Program debuted at Moldova Fashion Days SS19 Credit: MFD
ACTIVITY 3. Develop industry skills through quality advanced technical education and training
28 Moldovan fashion industry members attend intensive fashion management course. 28 fashion startups, young designers, university lecturers, and fashion students attended an intensive five-day training at ZIPhouse Fashion Excellence Center as part of the Fashion Leadership Program, which facilitates collaborations with leading international fashion experts to develop professional skills across the industry. Participants studied product development, ethical supply chains, customer profiling, sales strategies and creative management, under the guidance of Russian-speaking British fashion consultant Elizaveta Senatorova, who works at the world’s largest fashion forecasting company WGSN in London. The training was funded by UK aid in partnership with MCP and the APIUS light industry association. MCP supports training and capacity development activities for Moldova’s emerging fashion industry to bridge the skills gaps and support the transition towards producing higher value-added products. Since its launch, ZIPhouse has trained more than 120 private companies, equating to 27 per cent of the fashion industry’s SMEs.
27 designers and owners of local fashion brands attend business and design training at ZIPhouse. On February 6-7, 2019, ZIPhouse further consolidated its position as the key capacity building institution for Moldova’s light industry with a two-day training on “How to Create a Commercial Collection”, with expert Galina Kravchenko. Ms. Kravchenko provided advice on how to design a coherent collection to generate high sales, and covered topics such as leveraging fashion trends as a tool to increase sales, the algorithm of procurement processes, and how to reflect the market within a potential collection. ZIPhouse organizes these trainings as part of its role as the key platform for learning, ideation, co-working, networking, promotion, product prototyping, and innovation in Moldova’s fashion industry, in cooperation with private sector partners. 11 young designers receive training on pattern making. ZIPhouse Excellence Center organized a workshop on pattern making for fashion startups, with support from UK aid. The workshop was developed to improve pattern making skills of accelerated startups and ZIPhouse residents, resulting in an improved final product. International expert Renee Lacroix worked with each startup to apply corrections and offer personalized consultation. Moldovan fashion startups are limited by a lack of education and training in key elements of the fashion industry like pattern making. The recent partnership with UK aid will enable ZIPhouse to provide more trainings like this to emerging businesses within Moldova’s fashion industry, building on its stellar track record in training and workforce development.
Caption: Advert for the ZIPhouse Fashion Academy training with Elizaveta Senatorova Credit: Facebook
PROGRAM 2. SMART (Streamline Manufacturing, Accountability, Resource efficiency, and Transparency) Factory program
ACTIVITY 1. Implement complex innovative methods to streamline manufacturing and productivity growth
U.S. Ambassador to Moldova visits Gagauz apparel factory that creates new jobs for women in rural areas. U.S. Ambassador Derek J. Hogan visited RiDiager, an apparel factory in Comrat, Gagauz autonomy that has successfully transitioned to more complex manufacturing services garnering new EU clients in Italy, Denmark, and Finland. Thanks to a complex support package, including a grant from MCP, RiDiager opened a new rural production unit creating more than 50 quality jobs for seamstresses – providing employment opportunities for women in their home villages and helping reduce out-migration. The MCP grant leveraged RiDiager’s own investment in modern sewing machines and enabled the company to grow its production facilities in four villages in the area, providing living wages and good working conditions for nearly 200 women. Moldovan apparel factories learn best practices in productivity and full-service manufacturing and win outsourcing contracts from Romanian manufacturer. In March, 21 representatives from nine leading Moldovan fashion manufacturers traveled to Bucharest, Romania, to learn best practices from TANEX, one of Romania’s most successful providers of full-service manufacturing for EU clients. The delegation included representatives from ten beneficiaries of the MCP SMART (Streamline Manufacturing, Accountability, Resource efficiency, and Transparency) factory program and representatives from the ZIPhouse excellence center, Light Industry association APIUS, and the Technical University of Moldova. They analyzed TANEX’s production organization based on using Lean Management tools, manufacturing equipment, production setup and productivity streams, and discover methods and techniques to increase productivity within their own factories and implement in professional trainings within the Moldovan fashion industry. Manufacturing costs in Romania are higher than in Moldova, and TANEX is keen to outsource some of its European contracts to Moldovan factories with high-quality production facilities. During the visit, TANEX opened discussions about pilot orders with some of the visiting companies, which will be finalized in the coming weeks. This outsourcing opportunity is possible due to the recent leaps forward in Moldovan manufacturing productivity and quality, thanks to investments in equipment and streamlining via the MCP SMART program. Apparel companies streamline manufacturing processes and increase productivity. MCP continues to assist small and medium size companies to increase productivity as the key factor in ensuring the competitiveness of garment producers. During the reporting period, an MCP productivity consultant supported two apparel companies (Loztextil and Viomas Tex) to successfully implement Lean Management Tools, resulting in increased efficiency. After implementing the proposed measures to reconfigure the production flow, the
Ala Arabadji, co-owner of RiDiager apparel factory in Comrat, Gagauzia, presenting the factory and working conditions to U.S. Ambassador Derek J. Hogan during his visit on February 1,2019. Credit: Olesea Galusca, MCP
productivity of monitored seamstresses increased by 22.6 per cent. Increasing productivity and efficiency results in larger revenues for manufacturers, and higher salaries for seamstresses, reducing the drivers of migration.
Two MCP-supported apparel companies pass the Business Social Compliance Initiative (BSCI) AMFORI social audit, demonstrating improved social performance. Specific codes of conduct that protect the human rights of the manufacturing workforce are increasingly required to satisfy international consumers and add social value to products, vital to Moldova’s export-oriented apparel manufacturing sector. During Q2 Y4, MCP supported two apparel manufacturers, Ionel and Listex, to obtain BSCI/AMFORI certification. The AMFORI BSCI social audit aims to continuously improve the social performance of suppliers, enhancing working conditions in factories worldwide, and the compliance certificate demonstrates to potential clients that a manufacturer’s workplace conditions comply with national labor laws, human rights principles, and International Labor Organization conventions. Gaining the BSCI Social Audit certification has enabled Listex to secure 100 per cent of its orders from its main customer, Dri Punk in Germany, and Ionel apparel company has attracted a new client CELLIO, which resulted in a contract worth
, which represents more than 25 per cent of the company’s capacity for men trousers and jackets.
Three apparel companies increase reputation as a reliable manufacturing partner by implementing Integrated Quality Management System. In the apparel industry, conforming to international production standards is one of the most important steps to producing high-quality products while achieving production goals and maximizing profits. In Q2 Y4, MCP continued to assist three apparel companies (Mobile, Bevera Nord and Style by
Manufacturing process after analysis of the production flow. Credit: Demian Usanli, MCP STTA
Manufacturing process before analysis of the production flow. Credit: Demian Usanli, MCP STTA
Workspace to clean the finished product and conduct final controls for packaging, equipped with a hanging conveyor after MCP assistance. Credit: Demian Usanli
Workspace to clean the finished product and conduct final controls for packaging, before MCP assistance. Credit: Demian Usanli
Milita) and one footwear company (Oldcom) to implement international social compliance and production standards, ensuring improved safety and working conditions, and increased efficiency. With the support of local consultant Ala Oberst, the companies are continuing to implement Integrated Quality Management Systems according to the requirements of international standards ISO 9001: 2015 (quality management) and ISO 45001: 2018 (occupational health and safety management systems), which ensure a safe and healthy work environment for employees and ensure workplace conditions in accordance with human rights, ILO conventions and national labor law. The improvements implemented within the reporting quarter will result in more secured orders from the manufacturers’ foreign clients who increasingly demand high social compliance standards.
OBJECTIVE 2: EXPANDED MARKET LINKAGES
PROGRAM 3. Expanding Market Opportunities
ACTIVITY 1. Reposition Moldova as a full-product manufacturing partner and support internationalization of Moldovan fashion brands on regional markets
28 light industry companies participate in eight tradeshows across Europe. MCP supported 28 light industry companies to target specialized market segments by attending dedicated trade fairs across the European export market. These include hand-made fashion accessories in France and Italy (Bijorhca and HOMI), lingerie in Paris (Interfiliere), and footwear in Ukraine (Leather & Shoes, Baby Expo), and apparel in Romania (MOD Expo and Next season in Bucharest) and Kazakhstan (Fashion Central Asia). Moldovan brand Olga Ceban, which produces and sells lingerie under its own label, signed a contract with a German client for the next four months and established a contract with a Spanish client for the delivery of trial orders following participation at Interfilière Paris. Trade shows are vital for light industry companies to strengthen existing connections and sales relationships, and generate new connections. In 2018, Moldovan fashion manufacturers signed over $4 million worth of contracts following MCP support to attend specialized tradeshows.
Ana Popova Loungewear brand exhibiting in premier at Salon International de la Lingerie et du Swimwear-Mode City in Paris Photo Credit: Olga Nedbailo
Working conditions at Ionel apparel company, certified to be in accordance with national labor law, human rights, and International Labor Organization convention standards. Chisinau, Moldova Credit: Maria Gheorghita, MCP
MCP supports handmade accessories company Ana Popova to negotiate export contracts worth $28,000 at EU trade fairs. In February, MCP supported two Moldovan hand-made jewelry companies to attend the European accessories exhibitions Bijorhca, in Paris, France, and HOMI in Italy, for the third year in a row. As a result of this consistent participation, popular jeweler Ana Popova made direct sales worth $27,840 USD, signed a contract with a US distributor worth $20,000 USD and began negotiations for a distribution contract in Spain worth $10,000 USD. Meanwhile, hand-made jewelry brand Rodica Braga moved into the lucrative international bridal segment. Since 2015, Ana Popova has grown from being a small, family business to an international umbrella brand selling high-value jewelry and loungewear to international boutiques and providing 15 quality jobs.
Moldovan bridal wear startup makes sales worth $20,000 at EU trade fairs. MCP supported the Moldovan bridal startup Sophie to attend three wedding fairs in the neighboring EU country of Romania, resulting in direct sales worth $20,000 USD. Sophie graduated from the ZIPhouse Fashion Acceleration Program (FAP) in 2018, and partnered with two other MCP-supported brands, Rodica Braga (jewelry) and Martely (lingerie and accessories), to create collections sharing the same materials and motifs, encouraging customers to buy products from all three brands. MCP leveraged this connection to enable all three companies to attend the Romanian wedding fairs under a common stand, resulting in linked sales by Rodica Braga worth $1,800 in Bucharest alone. Because of this trade promotion activity, Romanian clients now travel to Chisinau to buy wedding dresses from Sophie, and the brand plans to open a showroom in Romania in 2019. MCP supports the growth of Moldova’s bridalwear industry due to its need for highly skilled seamstresses, embroiderers and other craftspeople, creating quality jobs for women. Five fashion brands sign orders worth $121,800 at regional trade fair in Kazakhstan. From March 17-19, 2019 MCP supported five Moldovan own label fashion brands - Allert&Co, Premiera Dona, infinitextil, Evadeya, and Antigona) - to take part in Central Asia Fashion international exhibition in Kazakhstan, one of the most powerful and successful fashion exhibitions in the Central Asian region. The event is the only specialized event for the Kazakh fashion retail market, and it attracts both established market leaders and new players in the field. Moldovan brands established new 88 contacts and signed orders worth $121,800 at the event, including Allert & Co who secured their presence in Kazakhstan and signed new contracts worth
Ana Popova Jewelry stand at Bijorhca exhibition in Paris. Credit: Ana Popova Facebook page
Moldovan brands meet with potential clients at Central Asia Fashion trade fair in Kazakhstan. Credit: APIUS
Consistent, year-on-year participation in international exhibitions is a key component for success, building credibility and long-term collaboration between brands and buyers. This is the fourth year in a row that MCP has supported Moldovan brands like Allert&Co to attend Central Asia Fashion, resulting in Allert&Co opening a franchise shop in Almaty, Kazakhstan in 2017. ACTIVITY 2. Consolidate the Din INIMA Umbrella Brand and Expand Domestic Market
37 fashion brands walk the catwalk at Moldova Fashion Days Spring/Summer 2019. Moldova Fashion Days, initiated and continuously supported by MCP, is the most important event in the Moldovan apparel industry calendar. The Spring/Summer 2019 edition took place in Chisinau on March 23-24, 2019 featuring 40 new collections from 37 Moldovan brands, including ten young designers from the ZIPhouse startup fashion community and nine brands that made their MFD catwalk debut. This edition of MFD expanded to three catwalk blocks each day, allowing more designers to participate and more than 1,500 fashion fans and local influencers to attend the event. Attendees also had the opportunity to buy fashion accessories from 12 Moldovan designers at a ZIPhouse pop-up shop. Ambassador Dereck J. Hogan, USAID Mission Director Karen R. Hilliard, Swedish Ambassador Anna Lyberg, and UK Ambassador Lucy Joyce, attended the spring edition of Moldova Fashion Days (MFD) 2019 to demonstrate MCP backing for the event. Initiated with USAID support in 2012, MFD has grown into the largest fashion event in Moldova, organized as a PPP by the light industry association APIUS with MCP support. MFD attracts interest from the press and social media that would be otherwise unaffordable for each individual designer, spurring visibility and sales on the domestic market which are key for the success of emerging and small designers. From 2017-2018, domestic sales by Moldovan own-brand companies assisted and monitored by MCP increased by 30.6 per cent to $27.2 million USD, due to the success of events like MFD.
OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY
ACTIVITY 1. Assist APIUS to Become a Strong Professional and Industry Association
MCP reaches agreement with the Moldovan Investment Agency (MIA) over cost-share for 2019 light industry promotional activities. MCP partners with the Moldovan Investment Agency to cost share international promotional activities for key export industries, contributing to the long-term sustainability of these programs. Joint activities agreed for 2019 include promotion of Moldovan Light Industry companies in neighboring Romania. Targeted industry promotional materials and digital campaigns will be jointly deployed for maximum impact. Local light industry association APIUS will be the main implementation partner for the MIA funds, building the capacity of the private sector to manage long-term trade promotion activities.
INFORMATION TECHNOLOGY, ENGINEERING AND CREATIVE SERVICES OBJECTIVE 1: INCREASED PRODUCTIVITY AND QUALITY (BETTER WORKFORCE AND ADOPTED INNOVATION)
PROGRAM 1: Promoting STEAM Education and STEAM fields Careers
ACTIVITY 1. Pilot the Future Classroom (FCL) Concept in Moldovan schools
MCP-supported National Center in Digital Education completes renovation using public funds worth $200,000. The new National Center in Digital Education at the State Pedagogical University is part of the MCP-supported Future Classroom Lab (FCL) initiative and is a critical institution for the systemic transformation and modernization of Moldova’s educational system. The center is being constructed and endowed as a public-private partnership, with $200,000 USD of public funds provided by the Moldovan Government to renovate the Center’s space, $100,000 USD from Moldova’s largest telecommunications provider Orange via the Orange Foundation, and $100,000 USD in technical equipment, training and expertise from MCP. To date, 110 teachers from 11 schools within the MCP-funded FCL pilot have used new generation educational content and digital technologies to benefit 2,119 pupils across Moldova. The National Center in Digital Education is expected to open in Spring 2019 and will train over 1,000 teachers a year in digital innovations in education. The Center’s first activity also took place during the reporting quarter. MCP organized a technical training for teachers from pilot schools on March 19, 2019, focusing on sensors, microelectronics and microcircuits. The training was facilitated by the members of the Microlab engineering club from the Technical University of Moldova. In the next period, MCP will encourage further collaboration between the Technical and Pedagogical Universities to equip teachers with the technical knowledge and skills they need to implement the new type of hands-on, project based educational activities for STEAM subjects that can be used in Future Classroom Labs. ACTIVITY 2. Expand Educational Robotics Program
Record number of youth Robotics teams compete in FIRST LEGO League 2019, demonstrating the emergence of technological excellence outside the capital. 550 students aged 9-16 and 80 volunteer coaches from across Moldova competed in the fifth FIRST LEGO League (FLL) Moldova semi-final competition at Tekwill in Chisinau, developing technological and engineering solutions in line with this year’s theme ‘Into Orbit’. Of the original 62 robotics teams in the competition, 32 teams progressed to the Final on March 16th. Second place was won by a team from Balti, in the north of Moldova, and first place was won by Chisinau-based team RoboRangers, who have now won the FLL Moldova competition for three years in a row. Both teams qualified to represent Moldova at the FLL
Photo caption: Teachers attend a training on how to use sensors for STEAM projects in school
European Championship in Turkey in May 2019. This is the first time that a robotics team from outside Chisinau will compete at the European level, demonstrating that targeted support bridges the skills and technical abilities gap between urban and rural areas. FLL is the largest technology and robotics competition for youth in the world, encouraging them to design and program robots and develop engineering projects. The Moldovan FLL is under the umbrella of the global FLL network and is led by the National Association of ICT Companies (ATIC) with support from MCP, to strengthen STEAM skills in Moldovan youth, and prepare them for jobs in the 21st century digital economy. MCP and its predecessor project have been investing in Educational Robotics in Moldova since 2014 to motivate young people to engage in STEAM subjects and gain the technical skills they need to access 21st century jobs. The program first expanded outside Chisinau in 2016, and of the 9,500 beneficiaries to date, 62 per cent live outside the capital and 28 per cent are from rural areas. ACTIVITY 3: Support private initiatives for improving STEAM education and promoting STEAM careers
CoderDojo continues to provide free ICT education to Moldovan youth. CoderDojo free of charge coding clubs continued their activities within eight locations, currently involving over 100 youth aged 8 to 17 years. Children attending the clubs learn to code, build websites, and create apps and games, exploring technology in an informal and creative environment. Half of the volunteer mentors are IT professionals who want to connect with their communities and the rest are university students. Students at CoderDojo learn Scratch programming, Web development (HTML and CSS), how to develop mobile applications, and the programming language Python. In Q2Y4, one of Moldova’s CoderDojo clubs took part in the first phase of a national coding competition using the Scratch block-based visual programming language.
PROGRAM 2: Build the Ecosystem for Workforce and Entrepreneurship Development *This activity will be co-funded via the Tekwill Project, implemented by ATIC, and funded by USAID and Sweden*
ACTIVITY 1. Develop Regional Innovation Centers (Balti, Regional FabLabs) Moldovan regional FabLabs agree national best practices at Chisinau FabLab. MCP supported representatives from three regional FabLabs in Cahul, Ungheni, and Drochia to visit the NOD Makerspace in Bucharest, Romania, to learn organizational, institutional, and technical best practices, before convening at the Chisinau FabLab to agree on a
Caption: Moldovan youth robotics teams compete at the FLL Final 2019 in Chisinau. Credit: MCP
FabLab representatives from Cahul, Ungheni and Drochia visit the Chisinau FabLab to agree on a national cooperation strategy. Credit: Olesea Galusca, MCP
national cooperation strategy and a calendar of shared activities. FabLabs are centers of engineering excellence designed to provide aspiring makers and inventors with access to cutting edge fabrication and digital prototyping technology. The FabLabs in Cahul, Ungheni and Drochia were developed in partnership with the USAID Novateca Project to extend these benefits to youth living outside of the Moldovan capital. MCP invests in capacity building activities for these regional FabLabs to enhance their ability to develop paid services, partner with private companies and develop marketing and promotional activities, ensuring their long-term sustainability. Since they opened, more than 3,000 unique beneficiaries have attended 252 events at the four FabLabs in Moldova, demonstrating the need for spaces such as these to support the engineering workforce pipeline. ACTIVITY 2. Creative Hub – the grand opening
Creative Hub ARTCOR decorated with murals from local creative community. Moldova’s creative services industry has the potential to provide quality, well-paying jobs for Moldovan youth, but according to MCP-funded research, 50 per cent of creative firms indicate that their employees need to upgrade their skills and 100 per cent of new graduates need additional training to meet industry demand. In order to close this skills gap and strengthen Moldova’s creative industry as a whole, MCP has invested $350,000 USD in a dedicated Creative Hub, known as ARTCOR, which will provide trainings, co-working spaces, and entrepreneurial support for creative start-ups. The Ministry of Education, Culture and Research has contributed an additional $100,000 to the space, which is hosted by the Academy of Fine Arts. ARTCOR is in its final stage of development, and four local Moldovan artists are currently decorating internal walls with colorful murals, demonstrating the creative community’s support for the Hub.
COR creative association and Academy of Arts elect ARTCOR coordination council. The Creative Hub ARTCOR operates as a partnership between the COR creative association and the Academy of Arts. The two organizations came together to sign a management agreement outlining the basis for ARTCOR’s legal functioning, and enabled the hub to hire its first Executive Director, Viorica Cerbusca. COR and the Academy of Arts also elected a coordination council for the Hub, strengthening its governance, and the Hub is drafting a list of services, prices and projected operating costs to support key management decisions. To engage the Hub’s future membership, the Chisinau creative community was invited to a presentation of the ARTCOR concept, and members of COR and freelancers from Moldova’s cinema, theatre and advertising industries the Hub to learn about the facilities and services it will offer following completion. The Hib has taken bookings to host its first community events, including Moldova Design Week and Fetele Rocketele, which will take place at the center once it becomes fully functional in spring 2019.
Members of the Moldovan creative community decorate the interior walls of ARTCOR creative hub with colorful murals. Credit. Tatiana Durlestean, MCP
ACTIVITY 3. Fab Lab Chisinau – coaching the ATIC/TUM partnership 40+ engineering students enroll in bootcamp to design self-driving cars. More than 40 engineering students from the Technical University of Moldova (TUM) and local high schools enrolled in the first Autonomous Driving Bootcamp at the Chisinau Fab Lab, designed to explore the growing industry of automotive electronics. Over the course of eight Saturdays, teams of 3-5 students applied their Information Technology (IT) and engineering skills to design a self-driving miniature car, and then race the vehicles in front of an audience. The bootcamp was organized with the support of MCP, the Technical University of Moldova (TUM), and private partners, and was held at the Chisinau FabLab, a PPP between MCP and TUM that supports the emergence of engineering excellence. MCP supports Moldova’s IT and engineering industries as a source of quality jobs for youth, addressing the drivers of out-migration and brain drain. ACTIVITY 4. Support and develop IT and engineering laboratory cluster within TUM
MCP connects TUM to Cluj IT Cluster and Cluj Technical University in Romania. To further develop the CIRCLE laboratory cluster at TUM, MCP has focused its efforts on catalyzing relationships between TUM, the private sector and other universities. Cooperation with new partners ensures a continuous inflow of new technologies, teaching methods and practical R&D projects for students benefitting from the CIRCLE laboratory cluster. In this context, MCP facilitated a working visit to TUM for representatives of the Cluj IT Cluster, the largest IT cluster in Romania which includes some of Romania’s largest universities – the Technical University of Cluj Napoca and Babes-Bolyai University. The Romanian delegation had several working meetings with TUM senior management and the professors delivering practical lessons within the CIRCLE laboratories, to identify opportunities for cooperation between TUM and the Cluj IT Cluster. A cooperation agreement between Cluj Technical University and TUM will be signed as a result of the visit, covering student and teacher exchange programs and endowment of the Moldovan laboratories with additional equipment.
A team of engineering students programs a self-driving prototype car at the Autonomous Driving Bootcamp at Chisinau FabLab Credit: Olesea Galusca, MCP
ACTIVITY 5. Improve the entrepreneurial ecosystem for innovation and creative services
Dreamups accelerates innovation and tech entrepreneurship through world-recognized Founder Institute Program. Dreamups Innovation Campus is a Chisinau-based innovation and entrepreneurship accelerator supported by MCP, launched in 2016 by several Moldova tech entrepreneurs. During the reporting quarter, MCP assisted Dreamups to continue its core startup acceleration programs to stimulate innovation and tech entrepreneurship in Moldova. In November 2018, Dreamups launched the 3rd round of the Founder Institute Chisinau acceleration program, supported by MCP. From 70 applicants, 20 were admitted to the comprehensive four-month step-by-step program, including a structured curriculum, mentor support, and a network of local and international entrepreneurs. Three startups, totaling eight entrepreneurs, are expected to graduate from the program on April 10th, 2019, led by winning startup Crawless, a startup focusing on web scraping. Crawless won a free Startup Exhibition pass worth $1,300 (£995 GBP) to attend Startup Grind Conference Europe that will take place in London on June 6, 2019. Founder Institute (FI) is the world’s premier startup launch program for entrepreneurs. Based in Silicon Valley and with chapters across 65 countries, Founder Institute’s mission is to ‘’Globalize Silicon Valley’’ and empower talented and motivated people to build impactful companies that create one million jobs.
Dreamups brings international Startup Grind movement to Moldova. MCP assists Dreamups to introduce the Startup Grind movement to Moldova to stimulate a local ecosystem of entrepreneurs. Startup Grind is the largest independent startup community in the world, educating, inspiring and connecting more than 1,500,000 entrepreneurs in over 500 cities. Startup Grind nurtures startup ecosystems in 125 countries through events, media, and develops partnerships with organizations like Google for Startups. To introduce experience and knowledge sharing from successful global entrepreneurs to the Moldovan tech community, MCP supported Dreamups to host two Startup Grind events with international guest speakers. One of the speakers, Gilles de Clerck, is a growth strategist, consultant and startup mentor from Belgium, and the founder of Albaze Growth Studio, who also mentored teams participating in the Founder Institute program.
Team Crawless during a one-to-one mentoring session with Till Ohrmann, German serial entrepreneur and mentor at Founder Institute Chisinau. Credit: Dreamups
OBJECTIVE 2: EXPANDED MARKET LINKAGES
ACTIVITY 1. Assist foreign market entry for domestic tech & creative firms and attract tech-based investors to Moldova
Creative Industry representatives learn how to master the music business in Bucharest. MCP implements a Local Multipliers Program, supporting Moldovan creative firms to participate in international exhibitions, conferences, trainings and workshops. Upon their return, beneficiary companies serve as a resource of knowledge and contacts for the Association of Creative Companies. During the reporting quarter, MCP supported Cuibul, an acoustic funk band from Moldova to visit the Mastering the Music Business 2019 Conference in Bucharest, the premier music conference and showcase in Romania, bringing together artists, business managers, booking agents, record company executives, PR agents, advertisers, publishers, songwriters and more under the same roof. The Moldovan delegation established relationships with professionals from across the music industry, including bookers from top European festivals and live venues, and publishing agents, A&R managers and event organizers. Drawing on lessons learned from the conference, Cuibul band will embark on a strategic reorganization to increase its competitiveness and focus on three core business areas: music production in a new recording studio, photo and video production, and music marketing.
ACTIVITY 2. Support private-driven initiatives to develop IT Parks
International IT Park ‘Digital Park’ prepares for launch. MCP has guided local internet provider StarNet through the process of developing the first physical IT park in Moldova – Digital Park, including supporting the company to work with USAID to secure a DCA Loan Guarantee. During Q2Y4, StarNet continued to construct and equip the park, and the first phase of the IT park is 95 per cent complete. Digital Park was expected to be launched in December 2018, however abnormally cold weather conditions slowed down construction and landscaping activities. Landscaping works were relaunched in March, and MCP is continuing to provide StarNet with technical and legal support to obtain the necessary permits and authorizations to formally open Digital Park to IT companies.
OBJECTIVE 3: IMPROVED SECTOR-ENABLING ENVIRONMENT AND INCREASED CAPACITY
ACTIVITY 1. Implementation of the Law on IT Parks
Moldova’s first Virtual IT Park reaches 400 residents after first year of activity. Moldova’s first Virtual IT park opened in January 2018, and has gained more than 400 residents during its first year of operation. MCP contributed to this success by providing support to the Ministry of Economy and the Infrastructure and Administration of Moldova IT Park to expand the application of the Law on IT Parks to include relevant ICT-adjacent industries. These include the Creative Industries, including cinematography and video and
Acoustic funk band Cuibul attending the Mastering the Music Business conference in Bucharest, Romania.
television post-production, and the Engineering sector, including research and development in biotechnology, engineering, and electronic components manufacture. MCP also supported the development of clear business and financial reporting instructions for the residents of the virtual park to enable them to comply with the required state reporting requirements. ACTIVITY 2. Strengthen and update industry strategies
MCP supports development of strategic policy document for the Creative Services Industry. MCP is the main strategic partner of the Ministry of Economy and Infrastructure in implementing the Strategy for Development of the IT Industry and Digital Innovation Ecosystem for the period of 2018-2023. To implement the strategy, MCP provides support to all four areas of the Strategy: IT business environment development; Competitive IT workforce; ICT based innovations; and Support for IT exports and IT investments. In parallel, MCP began preparatory works for the development of a strategic document for the Creative Services Industry. Industry data was collected during Y2Q4 that will be analyzed and presented to the Ministry of Economy and Infrastructure and the Ministry of Education, Culture and Research to inform decisions about the type and content of a strategic policy document that will guide the development of the entire industry. MCP will continue to play a leading role in the development, improvement and implementation of national strategies for the IT and Creative Industries sectors. ACTIVITY 3. Capacity Building for ATIC and COR business associations
ARTCOR prepares for role as focal point of skills development for Creative Services. MCP supports the development of the Creative Hub – ARTCOR, which will be the main focal point for the creative industry focused on developing industry skills, a Moldovan creative community, and creative entrepreneurship. ARTCOR will be the property of the Academy of Music, Theatre and Fine Arts but will be managed by the Association of Creative Companies – ARTCOR. MCP provided support for the institutionalization of the partnership between the association and the academy by preparing and facilitating the signing of the Cooperation Agreement and Management Contract between the two. MCP also assisted the Association to develop internal documents to ensure the smooth operation of the Hub, including templates for labor agreements, cooperation agreements, office rent agreements, service provision contracts, etc. In March 2019, the Association of IT Companies elected a new Board of Directors and a new Executive Director. MCP provided strategic guidance and support to the new management of the association to engage the new Board and Executive Director in the industry development activities.
DELIVERABLES During the reporting quarter, the project submitted the following deliverables to USAID as per contract requirements:
1. Quarterly Report, FY19 Q1 2. Monthly Report, January 2019 3. Monthly Report, February 2019
SECTION II
PROJECT-LEVEL OUTCOMES AND RESULTS Sector Engagement, Enhancement, and Development (SEED) Fund
During the quarter, the SEED Fund focused on implementing the $5 million USD grants program. In January-March 2019, the SEED Fund disbursed a total of $168,205 USD covering 20 existing grant beneficiaries across all industries. To date, the SEED Fund has disbursed a total of The SEED Fund allocated with USAID approval:
o Two new grants in wine tourism sector to: 1. Winemd SRL to launch a new tourism offer and develop wine tourism services
within Wine.md shop located in the center of Chisinau by equipping a wine tasting room with enomatic equipment, new furniture, wine racks, etc. The desired outcome is diversification of the tourism offer and an increase in sales, thus supporting the wine tourism industry as a whole and generating a beneficial impact on the entire economy of Moldova.
2. Crama Mircesti SRL to develop the tourism component within the winery. The Grantee has been using their own funds to refurbish a historic mansion which will become a guesthouse offering 5 bedrooms, an events room for up to 50 people, and a wine cellar for 100 barrels. MCP will provide finishing goods and materials.
o Six new grants in the tourism sector to:
1. Patent holder Gonciari Vasilii operating under the name handicraft center “Casa Olarului”, to improve the quality of the Center’s tourism services by opening a small food serving area (tavern) to offer food and provide tourists with a more engaging experience by using the Center’s pottery creations such as clay plates, bowls, and pitchers, allowing them to experience the center’s items first-hand.
2. Artic Nova SRL operating under the name guesthouse “Fata Morgana”, to improve the quality of the guesthouse’s tourism services by opening a conference and wine tasting area on the premises of the guesthouse.
3. Lazar Agrotur SRL operating under the name guesthouse “La Căsuța din Pașcani”, to improve the quality of the guesthouse’s tourism services by equipping the guesthouse’s existing and new bedrooms, bathrooms, and kitchen with new and well-designed goods and materials.
4. G.T. Ciolacu Victor Gheorghe operating under the guesthouse name “Casa Mierii”, to support the grantee in its goal to open a new guesthouse called “Casa Mierii” that will include 4 bedrooms, 4 bathrooms, and a restaurant with a kitchen that will serve local traditional food.
5. I. I. Hanganu Ion operating under the guesthouse name “La Titiana”, to support the grantee to improve the quality of the guesthouse’s tourism services by equipping the kitchen with quality fixtures, goods, and materials that would facilitate the preparation of traditional dishes for visitors and overnight guests.
6. G.T. Triboi Zaharia Ion operating under the name “Zaharia Triboi Pottery Center”, to improve the quality of the Center’s tourism services by equipping a bathroom, organizing the Center’s courtyard landscape, opening a pottery exhibition room, and equipping a summer terrace and production studio for tourists. The center is unique in the country as it uses black clay to produce its pottery.
o One new grant in the wine sector to Winetage SRL to modernize its winemaking process with high-performance equipment, which will lead to high quality wine production, thus enhancing sales and resilience.
o A funded closeout modification for the Technical University of Moldova, reflecting the de facto costs incurred by MCP in the implementation of the in-kind grant agreement to finance: the technical and architectural design for FabLab Chisinau located on the premises of the University campus; the endowment of the FabLab and three additional laboratories with goods and services; and the cosmetic works and finishes to launch the FabLab and the laboratories.
o Modifications of existing four grants in the wine tourism sector to: 1. Fragolino SRL - to allow the Grantee to continue working on their new own winery
and develop new infrastructure for visitors, to give clients the possibility of enjoying wine tastings on the company premises, and increase the volume of the Grantee’s wine production and sales; and
2. Vinfoteca & Co SRL - to allow the Grantee to continue working on their new winery and develop new infrastructure for visitors, to give clients the possibility of enjoying wine tastings on the company premises, and increase the volume of the Grantee’s wine production and sales .
3. Migdal-P S.A. operating under the name “Vinaria Cojusna” - to improve the quality of the Winery’s tourism services by opening a wine museum within the winery with access to a bathroom, in line with a developed architectural design.
4. SC Tomai Vinex S.A. (G-SIM-025) operating under the name “Tomai Wine Estate” to improve the quality of the Winery’s tourism services by opening a food and wine tasting area within the win
Building Program
Over the years, MCP has worked with 11 business associations to stimulate inter-industry cooperation, consolidate private sector vision and voice, and increase their role in quality, skills and/or trade support, all of which would further enhance the overall competitiveness in targeted industries. By working with associations and member-based organizations, MCP can build their capacity to advocate for legal and regulatory changes, serve as clearinghouses for information, coordinate initiatives within targeted industries, and provide services such as organizing trade and investment missions, trainings, and/or conferences for their members.
20%
16%
2%27%
34%
1%
Grant Allocation by Industry through
March 2019 (by value)
Wine
Tourism
Wine Tourism
ICT Cluster
Light Industry
Crosscutting
112 grants have been awarded through March 2019
SEED Fund Performance through
March 2019
TotalDisbursed
Totalawarded, notyetdisbursed*
RemainingBudget
*at the ER of March 2019 of 1 USD = 17.07 MDL
The Organizational Capacity Assessment tool (OCA), updated and used by MCP, allows supported sector associations – APIUS, ATIC, ANTRIM, and ASW – to reflect upon their successes and identify areas for improvement by assessing themselves annually against a list of criteria that includes governance, management, strategic vision, member services and satisfaction, etc. In Y4Q3 MCP will launch the 2019 OCA self-assessment process to further evaluate the progress made and set new development goals in line with the five evaluation criteria such as governance, financial management and fundraising, administration, and others.
Environmental Protection
MCP will continue to focus on awarding new grants, which will result in a greater flow of new ERC/EMMPs. Following the conclusion of several grants, MCP is working with the Grantees on generating environmental monitoring reports. Furthermore, the tourism RFA concluded in February 2019, which will result in new selection committees and an inflow of new potential grantees. MCP is working on ERCs and/or EMMPs for the above referenced grantees.
Anti-Corruption
During the quarter, MCP continued to support increased transparency of operations in the selected industries, by advocating for appropriate and transparent policies that reduce government rent seeking. MCP similarly advocates for a level playing field among firms, large and small, to better ensure that firm growth and profits are based on enterprise productivity and innovation, not connections. Furthermore, Chemonics and its employees maintain high standards of ethical conduct in the selection, award, implementation, and oversight of Project activities. MCP employees complete on an annual basis the mandatory Chemonics training on “Code of Business Conduct”; the training is set to be conducted in the fall of 2019.
Access to finance through special channels/USAID Development Credit Authority (DCA)
Ongoing support provided to financial institutions with DCA agreements. MCP assists the implementation of the Development Credit Authority (DCA) loan guarantee program, which is a USAID special mechanism to increase access to finance. DCAs cost-share the risks of providing long-term loans, allowing local companies or individuals to have access to financial resources that are otherwise difficult to obtain. MCP continued its ongoing support to Moldovan financial institutions, and submitted the required Accrual reports to USAID. To date, no borrowers have defaulted on their loans, and USAID has received zero claim requests from the financial institutions with DCAs supporting targeted industries (that no longer place loans under guarantee) and energy efficiency. In Q2Y4, the DCA in energy efficiency with Prime Capital saw an additional loan of USD placed under guarantee and disbursed to an existing borrower, for investment in business development with an energy efficiency impact. Since the amount per borrower exceeded the USAID maximum, an approval for this amount was sought and granted by
Figure. DCA in Energy Efficiency Performance throught December 2018
Total Awarded
Total Disbursed
Remaining DCAamounts
USAID DCA Washington. To date, the financial institution has placed 62 loans under guarantee valued at .
First tranche disbursed under the Development Credit Authority (DCA) Loan Guarantee for Moldova’s First IT Park. USAID officially launched its partnership with Moldova Agroindbank (MAIB) to reduce lending risk and scale up the financing of Moldova’s First IT Park, Digital City, developed by leading local internet provider StarNet.
USAID Moldova worked hand in hand with DCA Washington to close this complex, multi-party financial transaction. Digital City is expected to open its doors in Spring 2019 and will host over 2,500 jobs and 50 technology firms, supporting a ‘Silicon Valley’-type working environment that will attract regional and international investment and create opportunities for Moldovan youth.
Public-Private Partnerships
MCP focuses on the development of public-private partnerships (PPPs) to encourage systemic and sustainable change. In Q2Y4, over was leveraged within ongoing and established PPPs, with MCP contributing 19 per cent, private partners 29 per cent, local public partners 46 per cent, and other partners 6 per cent. In total, MCP facilitated 39 public-private partnerships, which collectively leverage $35 million USD worth of resources for shared objectives in reform, trade promotion, workforce development, and economic growth. The sustainability of these PPPs is ensured by maintaining strong relationships with government ministries, educational institutions and private partners.
Table. PPP progress in Q2Y4
Industry PPP name Progress in the quarter
Winegrowing Industry
ONVV
During Q2Y4, the PPP organized two sessions of the ONVV Coordination Council, a session of the marketing committee, and a working group on wine certification issues. ONVV organized the submission of wine samples to four international wine contests, and the PPP supported Moldovan wine companies to participate in four trade fairs and B2B events. ONVV also organized training for wine industry professionals to obtain the European Sommelier accreditation.
Winegrowing Industry
WoM Marketing Platform
One session of the WoM marketing committee took place in Q2Y4, and the PPP organized the participation of WoM in trade events in Tokyo, Japan, Prowein 2019 trade fair in Dusseldorf, Germany, China Food and Drink Fair in Chengdu, China, and Wine Up trade fair in Cluj, Romania.
Winegrowing Industry
WoM Academy The PPP organized one WoM Academy training on Olfactory Evaluation for wine industry sales professionals, and provided two additional Olfactory Evaluation trainings for sommeliers, emerging wineries, and hospitality staff.
Winegrowing Industry
Best Grapes The PPPs conducted three regional assessment tastings, and organized one annual sectorial congress.
USAID Assistant Administrator and USAID Moldova Mission Director visit the premises of the under-construction Digital City, the first physical IT park in Moldova, May 2018. Photo credit: Alex Vacarciuc
Winegrowing Industry
FlaveDor
Winegrowing Industry
Terroir
Tourism Industry
Tree of Life festivals calendar
In February 2019, ANTRIM, the inbound tourism association, launched the new 2019 Tree of Life calendar of 30 cultural events in partnership with the Ministry of Education, Culture and Research, MCP, MIA and ONVV. Three cultural-touristic events from the Calendar were delivered during Q2Y4, attracting over 23,500 visitors: Milestii Mici Wine Run, Underland Music & Wine Fest, and Martisor Festival.
Tourism Industry
Tourism Information Center (TIC)
In Q2Y4, the TIC hosted more than six events and working meetings related to the tourism industry, registering over 520 visitors. MCP offered support for the development, design and printing of informational materials that are distributed free of charge to tourists visiting the center, including the Chisinau Tourist Map, Experience Moldova brochure and the Moldova Tourist Map.
Tourism Industry
DescOpera Festival
The stakeholders of the PPP held two work sessions hosted by the Ministry of Culture, Education and Research to begin preparations for the 2019 DescOpera festival. The meetings established the program for the three-day festival, followed by discussions covering specific technical and logistical aspects to ensure the smooth running of DescOpera 2019.
Tourism Industry
Wine Road Signages
Ten new road signs were installed in the districts of Straseni and Comrat. The signs direct tourists to key local tourism destinations including Chateau Cojusna, Kara Gani winery, Vinuri de Comrat, the horse farm At Prolin, and the National Museum of History and Ethnography of Gagauzia.
Light Industry DININIMA promotional campaigns
During the reporting period, the DININIMA initiative developed targeted PR, communication and advertising campaigns, combined with special events, offers and popups. The PPP’s collaboration with the ZORILE Commercial Center turned into a Spring Summer Pre-collection catwalk organized at ZORILE, near the DININIMA common store. The event was covered broadly by the Moldovan media.
Light Industry
ZIPhouse Design and Technology Center
All members of the PPP continued to support and invest in ZIPhouse to secure its institutional capacity and ensure its continued content development. TUM contributed by providing the space, paid workforce, utilities and other additional materials needed to organize and deliver activities. APIUS provided opportunities for ZIPhouse residents to participate in Moldova Fashion Days, at a reduced price. UK aid contributed to ZIPhouse’s content development, providing women and youth with educational opportunities, and stimulated market penetration through the organization of pop-up shops and supporting the inclusion of young designers at Moldova Fashion Days.
Light Industry DININIMA international markets
The PPP organized the participation of 28 unique companies in 13 international exhibitions and fashion events during the reporting period, and $297,356 USD worth of contracts were signed as a result of participation in international trade events. PPP member APIUS supports the cost of company participation in exhibitions, including travel and accommodation, and sometimes co-sharing entry costs. MIA (formerly MIEPO) and MCP contribute by covering space and/or booth rent, registration fees, and co-sharing the cost of additional equipment and lighting, etc. MIA and MCP collaborate and merge their efforts to strategically target key export markets, and co-share participation in a pre-agreed list of exhibitions, to ensure high-impact market support.
Light Industry Moldova Fashion Days
The PPP organized Moldova Fashion Days Spring/Summer 2019, expanding the event to three catwalks per day. MFD gathered more than 40 Moldovan established brands and young designers to showcase their spring /summer collections to a large local audience, and broad media attention. ZIPhouse supplied 10 emerging designers, and a popup shop for 12 fashion accessory designers, with financial support from the British Embassy.
IT, CSI and PE Future Classroom Lab
Renovation of the space dedicated to National Center for Digital Innovation in Education “Future Classroom”, at the State Pedagogical University I.Creanga was finalized. All the renovation costs were supported by the Ministry of Education, Culture and Research. Orange Moldova Foundation procuring the furniture, which was successfully delivered and installed in the FCLs across the country, and MCP finalized the procurement of the last batch of digital equipment for educational activities.
IT, CSI and PE FabLab in Cahul
MCP endowed regional FabLabs with additional equipment and materials to support their activities. As a result, more than 3,000 people now benefit from FabLabs’ activities in the regions, engaging about 30 volunteers. Two working meetings took place between FabLab Chisinau and the three regional FabLabs to establish cooperation and a future program of shared events.
IT, CSI and PE FabLab in Ungheni
IT, CSI and PE FabLab in Drochia
IT, CSI and PE Robotics PPP
The Fifth edition of FIRST LEGO League Moldova was organized across the country, with a record 62 teams competing. To ensure the sustainability of the initiative, each team paid a participation fee and the program implementer ATIC, the ICT industry association, attracted five private sponsors to cover the costs of the event.
IT, CSI and PE CIRCLE Lab at TUM
MCP facilitated a partnership between TUM and the Cluj IT Cluster in Romania to develop the CIRCLE Laboratory Cluster. Through the new partnership, the laboratories will be endowed with additional equipment, and professors from TUM will exchange experience and learn from their peers at two of the largest universities in Romania.
IT, CSI and PE Creative Hub The development of the Creative Hub is in full swing, and the legal and institutional arrangements for the functioning of the Creative Hub functioning were established during the quarter.
IT, CSI and PE Balti Innovation Hub
The technical and architectural design documentation for development of the Balti Innovation Center was drafted and the public procurement for construction works will be launched in April 2019.
IT, CSI and PE StartNet IT Park (Digital Park)
StarNet Digital Park is in the final stage of development. The grand opening of the Park will take place in May 2019.
IT, CSI and PE Law on IT Park Moldova IT Virtual Park registered new companies as residents. In Q2Y4, the total number of registered residents exceeded 400.
IT, CSI and PE Virtual IT Park
Inclusive Development MCP recognizes and affirms our donors’ commitments to inclusive development and provides all project beneficiaries with equal opportunities to participate in its activities and to benefit from project-funded assistance. Empowering Women and creating opportunities for Youth involvement. MCP designs its activities using a non-discriminatory approach, with the goal of including groups that have been historically excluded or disadvantaged, especially women and youth. Project activities are designed to interest and attract women and youth, and motivate them to develop themselves and their careers in-country, providing an attractive alternative to migration.
Table. Women and Youth participation in MCP activities in Q2Y4, by industry
Description Light
industry Winegrowing
Industry Tourism IT cluster TOTAL
Total participants per industry
173 361 135 850 1,519
Inclusive Development Highlights, Q2Y4 results ➢ 54 per cent of the total 1,519 participants in
capacity building programs are women ➢ 82 per cent of the total 1,519 activity participants in
Q2Y4 are youth ➢ 39 per cent of the total 228 firms assisted in Q2Y4
are women-owned ➢ 16 companies from Gagauzia and Transnistria
involved in MCP supported activities
Women 155 195 112 363 825
Youth 136 247 120 736 1,239
All MCP programs focusing on the Winegrowing Industry seek the inclusive development of women and youth. The Project’s ASW Mentorship program is designed to stimulate young winemakers to launch small wineries and/or to support the development of emerging small wineries (Carpe Diem, Minis Terrios, Gogu Winery, Atu Winery, Crama Mircesti, Unicorn Estate, Teba Prim, Pomusoara Dulcisoara, Vinaria Lupascu). In Y2Q4, under the Wine of Moldova Academy and Wine Friendly/SMART initiatives, MCP supported knowledge upgrade activities and trainings for over 360 industry professionals, 68 per cent of which are youth and 54 per cent are women. In Tourism, the Tourism Information Center (TIC), opened via a PPP with support from MCP, actively engages young volunteers from tourism-related faculties. During the reporting quarter, the TIC opened a call for volunteers which resulted in 300 applicants, and 17 young volunteers were selected and trained to deliver touristic information services to the Center’s visitors, and other promotional activities. The MCP-supported tourism association ANTRIM is fostering a partnership with the State University of Moldova, offering access to practical knowledge in the field for young professionals through the Next Tourism Generation Academy. This platform engaged over 100 young students in open lectures with guest speakers from the tourism field, and facilitated discussions that prepared the young tourism specialists for the realities of jobs within the sector. In Y2Q4, MCP supported knowledge upgrade activities and trainings for 135 people, 89 per cent of whom are youth and 82 per cent women. In Light Industry, the Project provided technical assistance to, and supported activities at, the innovative hub ZIPhouse - a platform for students, young designers, start-up companies and professionals within Moldova’s light industry. MCP assisted ZIPhouse to launch the 2019 Fashion Acceleration Program, with 11 startups set up by young people, mostly women. The “Z Young Designers Competition” implemented by ZIPhouse targets talented young designers, and spurs their motivation to succeed in fashion. In Q2Y4, 35 designers benefited from consultancy support to improve their product designs, and are preparing for the competition. During Moldova Fashion Days (MFD), ZIPhouse supported 10 young female designers to showcase their collections, enabling them to penetrate the local market. ZIPhouse also organized a pop-up shop during MFD, selling products from 12 fashion accessory startups. MCP supported 21 representatives from nine leading Moldovan apparel factories to travel to Bucharest, Romania, to learn best practices from TANEX, one of Romania’s most successful providers of full-service manufacturing for EU clients. In Y2Q4, MCP supported 10 knowledge upgrade activities and trainings for 173 people, 77 per cent of whom are youth and 90 per cent women. In the IT cluster, seven activities targeting youth and women were carried out in Q2Y4: three in IT, one in Precision Engineering and three in the Creative Services subsector. In IT, two teacher trainings for Future Classroom Laboratories were delivered, developing the skills of the key workforce supporting Moldovan youth. Together with ATIC, MCP organized the fifth FIRST LEGO League Moldova competition, where 32 per cent of team members and coaches were women, and 80 per cent were youth. One of the competing teams from the town of Ialoveni was composed entirely of girls, and guided by two female teachers. The team delivered a remarkable performance, qualifying for the final and winning first place in the Core Values Category of the competition, demonstrating great team spirit and motivation. In Precision Engineering, over 40 engineering students enrolled in a bootcamp to design self-driving prototype cars, and three workshops were organized during the reporting
quarter to enhance job skills in the Creative Industries. Moldovan creative industry representatives also learned how to master the music business by participating in the Mastering the Music Business Conference in Bucharest. In total, MCP-supported activities in the IT cluster had around 850 participants, 87 per cent of which were youth and 43 per cent were women. Support economic development of Transnistria and Gagauzia. In Y2Q4, MCP provided technical assistance to 16 Gagauzia and Transnistria-based SMEs from the wine sector and light industry, focusing primarily on product quality, factory efficiency, and/or trade growth. This assistance is provided at the firm level and is delivered in the form of support from industry organizations, namely the National Office for Vine and Wine (ONVV) and industry associations ANTRIM (tourism) and APIUS (light industry). In the winegrowing industry, MCP provided technical assistance to five wine companies in the Gagauzia region. Two companies owned by ethnic Gagauzians and located in Comrat, Gagauzia (Vinuri de Comrat and Tartcomvin), one in Cazaclia (Kazayak) and two from villages in the Vulcanesti district (DK Intertrade and Bostavan) were supported to participate in three international trade fairs: China Food and Drinks Fair, Prowein and Wine Up. In the tourism industry, MCP continued to support the integration of Transnistria and Gagauzia into key tourism informational platforms such as the www.moldova.travel national tourism portal that is currently under development. The revised and revived content includes destinations like Tiraspol city, Kvint winery, Acvatir sturgeon farm and Casa Karaman guesthouse, all of which are in Transnistria, and Kara Gani winery, Novak winery (Tartcomvin) and Gagauz Sofrasi guesthouse in ATU Gagauzia. This platform will continue to showcase quality web-based content, highlighting the strengths of Moldova’s minority regions as a tourism destination. In light industry, MCP supported six Transnistria and Gagauzia-based companies to participate in international tradeshows, including Leather&Shoes exhibition in Kyiv, Ukraine (Tellus, Tellus-A, Floare, Tighina), Baby Expo exhibition in Kiev, Ukraine (Floare and Tighina), Next Season (Intercenter Lux, Tellus), and MOD Expo in Bucharest, Romania (Intercenter Lux). To increase sales and promotion on the local market, one company from Transnistria (Intercenter Lux) and one from Gagauzia (RiDiager) showcased their collections at Moldova Fashion Days. MCP also included a company from Gagauzia (Ridiager) in the industry delegation to Tanex, one of Romania’s most successful providers of full-service manufacturing for EU clients, where they discovered best practices. In IT cluster, the Educational Robotics program is implemented in two schools in Gagauzia.
Monitoring & Evaluation
Ongoing Monitoring and Evaluation (M&E) activities were conducted to document project results and new achievements. During the quarter, all activities implemented with MCP support were documented and included in the project’s M&E database, with results verified for accuracy. Along with data collection and analysis, reports were generated for each indicator showing progress against established targets. Progress against each established target was included in the MCP Quarterly Report, providing an overview of current data and data analysis. An internal Data Quality Assessment (DQA) for Y3 results was conducted, and DQA checklists were completed for each PMP indicator. MCP prepared and submitted an updated MCP trade events tracker to USAID, including data on new exhibitions attended by assisted companies, new contacts, new contracts and new sales realized. MCP also prepared information on achievements against the project’s annual Development Contribution Indicators (DCI), and reported this to Chemonics. A
working meeting with USAID COR and the newly appointed USAID Project Management Specialist took place in February 2019, where the MCP complex approach to reporting achieved results, disaggregation of results by industries, and achievement targets was discussed. New achievements were registered by MCP in Q2Y4. MCP achieved the following results due to targeted project activities in all four supported industries:
PERFORMANCE MONITORING: TARGET VS. ACTUAL
Indicator Y1-Y3 Target Established
Y1-Y3 Result Achieved
Y1-Y3 Target versus Result
Y4 Cumulative
Target Established
Y4 Cumulative
Result Achieved
Y4 Cumulative
Target versus Result
Q2Y4 Result
Project Purpose: Grow and Expand Targeted Competitive Industries
1 Value of domestic and export sales in targeted sectors*
$550,000,000 $1,107,920,440 $557,920,440 $ - Data
reported annually
N/A N/A
2
Increased value of sales facilitated on behalf of assisted enterprises
$80,000,000 $175,780,623 $95,780,623 $110,000,00 Data
reported annually
N/A N/A
3 Value of new private sector investment in assisted enterprises
$34,000,000 $135,133,045 $101,133,045 $46,000,000 Data
reported annually
N/A N/A
Objective 1: Increased Productivity and Quality (Better Workforce and Adopted Innovation)
IR 2.2: Improved Private Sector Competitiveness in Selected Industries
Sub-IR 2.2.1: Increased Productivity
4
Number of enterprises receiving assistance to improve knowledge, processes, technologies and practices
350 617 267 400 695 295 54
5
Assisted enterprises applying improved knowledge, processes, and technologies
210 281 71 280 301 21 10
6
Assisted enterprises following recognized product or process standards
70 110 40 130 117 -13 6
7 Individuals receiving job skills aligned with industry needs
11,000 26,870 15,870 15,000 29,955 14,955 1,519
8
Percentage change in specified productivity measure (sales per employees)
+6% +28% +22% 6% Data
reported annually
N/A N/A
Objective 2. Expanded Market Linkages
Indicator Y1-Y3 Target Established
Y1-Y3 Result Achieved
Y1-Y3 Target versus Result
Y4 Cumulative
Target Established
Y4 Cumulative
Result Achieved
Y4 Cumulative
Target versus Result
Q2Y4 Result
IR 2.2: Improved Private Sector Competitiveness in Selected Industries
IR 2.2: Improved Private Sector Competitiveness in Selected Industries
9
Number of enterprises with sales facilitated through USG assistance
210 300 90 290 333 43 17
IR 2.1: Improved Private Sector Competitiveness in Selected Industrie
Sub-IR 2.2.2: Expended Market Linkages
10
Number of assisted enterprises in targeted industries with increased financing
110 136 26 160 Data
reported annually
N/A N/A
11 Financing accessed by assisted enterprises
$2,000,000 $87,092,600 $85,092,600 $5,000,000 Data
reported annually
N/A N/A
12
Number of assisted enterprises in targeted industries with increased investment
120 317 197 190 Data
reported annually
N/A N/A
Objective 3. Improved Sector –Enabling Environment and Increased Local Capacity
IR 2.1: Improved Economic Foundation for Growth
Sub-IR 2.1.1: Improved Business and Trade Enabling Environment
13
Number of regulations and administrative procedures eliminated, streamlined or simplified with USG support
18 36 18 24 39 15 1
14 Number of Public-Private Partnerships established
25 38 13 35 39 4 0
15 Value of Public-Private Partnerships established
$3,000,000 $30,737,650 $27,737,650 $4,000,000 $35,506,947 $31,506,47 $517,561
16 Improved capacity of local institutions*
+30% over baseline
+45% over baseline
+15% over baseline
+40% over baseline
Data reported annually
N/A N/A
17
Project-assisted public-private sector dialogue platforms conducted
12 39 27 16 47 31 4
18
Increased number of market linkages established with donor assistance
150 9,628 9,478 150 12,213 12,063 1,041
*updated data will be presented in Q3Y4
Increasing productivity and skills: MCP expanded its outreach to a further 54 enterprises, either directly or through its association counterparts. The project now assists an impressive 695 SMEs, 219 or 32 per cent of which are women-owned. This cumulative number exceeds the Life-of-Project target of 450 SMEs by 54 per cent, and the Y4 cumulative target of 350 SMEs by 99 per cent. This outreach within the reported period was possible due to the project’s activities developed to reach new SMEs such as ZIPhouse Fashion Acceleration Program and Moldova Fashion Days that discover, train and promote new designers and startups in light industry; trainings on the basics of wine service for new participating companies in the wine friendly restaurants program; and assistance for new B&Bs to refurbish their facilities in tourism.
The project made good progress towards its targets to deliver capacity building programs. In total, 30 activities aiming to enhance job skills were conducted in Q2Y4: four activities in tourism, seven in light industry, eight in IT (clustered with Precision Engineering and Creative Services Industries) and 11 in the winegrowing industry. During the reporting quarter 1,519 people, of whom 82 per cent are youth and 54 per cent are women, participated in community building events and educational activities and trainings to enhance job skills delivered by the project. Activities in the IT cluster delivered more than half of the reported participants (56 per cent). These programs are instrumental in shifting mentalities and improving knowledge industry-wide. To date, 29,955 people have participated in MCP-supported capacity building programs, twice exceeding the four-year cumulative target of 15,000 people, and by outpacing the life-of-project target of 18,000 by 66 per cent.
Improving market linkages: To date, MCP assistance has helped 333 unique SMEs increase their sales and make 12,213 new market linkages. In Y2Q4 alone, MCP implemented 23 sales facilitation activities benefitting 170 companies, of which nine are new companies, with a total of 640 event participations resulting in 1,544 market linkages. These results were mainly achieved by supporting assisted companies to participate in 20 international exhibitions: 13 for light industry, four for the winegrowing industry and three for tourism. Local promotional activities included the Spring/Summer 2019 edition of Moldova
173
361
135
850
1,519 participants in MCP capacity building activities, Q2Y4
11% - Light industry
24% - Winegrowingindustry
9% - Tourism
695
192 153221
129219
39 40121
19
0
200
400
600
800
TOTAL Winegrowing Tourism Light IT cluster
MCP assisted enterprises
Total assisted companies Women-owned assisted companies
Fashion Days (MFD) and associated ZIPhouse pop-up shop, with the participation of 42 companies and start-ups. MFD plays a key role in building national recognition of Moldovan fashion labels and spurs sales on the domestic market, key elements for the success of emerging and small designers.
Strengthening business enabling environment: MCP develops public-private partnerships and implements initiatives to provide sustainable and scalable local solutions to grow assisted industries. In Q2Y4, MCP achieved the following to strengthen the Moldovan business enabling environment:
• MCP-facilitated PPPs collectively leveraged funds worth over , of which MCP contributed 19 per cent, private partners 29 per cent, local public partners 46 per cent and other partners 6 per cent. The total value of the 39 transformational partnerships exceeds $35 million USD, and their sustainability is ensured by strong relationships with government ministries, educational institutions and private partners. To underline MCP support for the creation of industry innovation centers by establishing PPPs, M&E data were aggregated and used to develop the infographic “Cutting-edge Innovation Centers”, representing aggregated data from MCP and the Moldova ICT Excellence Center (two first summary pages presented below).
• MCP reached an agreement with the Moldovan Investment Agency (MIA) over cost sharing for tourism and light industry promotional activities in 2019. Joint activities agreed for 2019 will include events to target the tourism market in Germany, Romania, Italy and Poland, and the promotion of Moldovan light industry companies in
Illustrative international trade shows attended by MCP-supported companies
• Light Industry: Fashion Central Asia, HOMI tradeshow, Leather&Shoes exhibition, Supreme Body&Beach exhibition, Bijorhca tradeshow.
• Tourism: BIT Milano 2019, TTR Bucharest 2019, ITB Berlin 2019
• Winegrowing: Prowein, China Food and Drinks Fair
neighbouring Romania. Targeted industry promotional materials and digital campaigns will be also be jointly deployed for maximum impact. Local industry associations (ANTRIM for tourism, and APIUS for light industry) will be the main implementation partners for the MIA funds, capacity building each industry’s private sector to manage long-term trade promotion activities.
• The Moldovan Strategic Tourism Marketing and Promotion Framework 2019-2021 has been updated and finalized by a partnership between MCP, the Moldovan Investment Agency, and the Ministry of Economy and Infrastructure. The framework incorporates the results of consultations with key stakeholders from Moldova’s tourism industry, and was developed under the guidance of two USAID-supported consultants. This new framework will guide the international promotion of Moldovan tourism opportunities under the Tree of Life country brand, resulting in more visitors and high value tourism dollars reaching Moldova’s rural regions.
• With guidance and support from MCP, the COR creative association and the Academy of Arts elected the coordination council for ARTCOR. The two organizations came together to sign a management agreement outlining the basis for ARTCOR’s legal functioning, and COR and the Academy of Arts also elected a coordination council for the Hub, strengthening its governance.
Communications
In Q2Y4, MCP delivered a complex suite of communication activities to keep donors informed about progress within the project, and to raise awareness of the project’s activities, target industries and donors among the Moldovan public. Donor Communications: As a result of MCP donor communications activities, project donors were kept up to date with project progress, and provided with key materials and information to facilitate messaging about their activities to key donor audiences, including donor country taxpayers and the Moldovan public. Key results:
• Prepared and submitted the monthly calendar of events and bi-weekly communication reports to USAID and Sweden;
• Assisted USAID-contracted photographer and journalist Colby Gottert to develop a success story on the Drone Vine Disease Detection Program for the USAID Digital Awards;
• Supported the organization and communications for a USAID press tour of Agrici winery to celebrate Women in Business in conjunction with International Women’s Day, and developed materials to promote female MCP beneficiaries for USAID #womenhistorymonth on social media;
• In light of the recent plan to incorporate UK aid into the project, MCP also developed new branding and marking plans for project and coordinated the co-branding for MCP supported sites.
Capture from USAID Moldova Facebook Page showing MCP beneficiary for #WomensHistoryMonth
High Level Donor Representation at MCP-supported events: MCP developed decision memos, scene setters and talking points to support high level donor representation and participation in key MCP-supported industry events, to raise the profile of project donors and MCP-supported industry events with Moldovan audiences. Key results:
• US Ambassador’s visits to Digital City IT Park, Moldova Fashion Days Spring/Summer 2019 and RiDiager apparel factory in Comrat;
• USAID Mission Director’s visits to Mircesti, Crama Tudor and Poiana wineries and Moldova Fashion Days Spring/Summer 2019;
• USAID Deputy Mission Director’s visit to the First Lego League Moldova Final.
Public Communications: As a result of complex communications activities across social media, Moldovan radio, TV and online news portals and international news organizations, MCP has raised awareness of developments within Moldova’s Wine, Tourism, Light Industry and ICT industries in both domestic and international audiences. Increasing awareness in these groups and trust in MCP-supported institutions is key for building the confidence of Moldovan and international investors and ensuring continued sectoral growth. Key results:
• Printed and disseminated MCP success stories, case studies and reports to target audiences, in Moldova and overseas;
• Coordinated an interview for MCP Light Industry team leader Maria Gheorghita on the TV station TVR Moldova to discuss recent successes in light industry due to MCP support;
• Facilitated press visits to the under-construction ARTCOR Creative Hub to highlight the impact of complex MCP support for productivity, design and efficiency;
• Facilitated media relations for upcoming ZIPhouse activities, and coordinated the participation of ZIP Acceleration Program beneficiaries in a radio show;
• Facilitated Chemonics Director Blerta Picari to visit MCP partners and beneficiaries in the Light Industry and ICT&Creative sectors, including ZIPhouse excellence center, Portavita apparel factory in Chisinau, RiDiager apparel factory in Comrat, Chisinau FabLab, Tekwill, ARTCOR Creative Hub, the Future Training Center in Digital Education at the Pedagogical State University, and the future IT Park DigitalCity;
• Coordinated the production of videos and success stories to promote small winemakers on Moldovan TV channel AgroTV (Novak Winery, ATU and Agrici) and on the online portal Agrobiziness.md (Tronciu and Dealu Morilor);
• Facilitated communications around flagship industry events Moldova Fashion Days (light industry) and First Lego League Moldova (ICT), including media invitations and media management at the event, and coordination with donors;
• Developed an application to the international Emerging Europe awards on behalf of the #BeOurGuest tourism campaign, at the invitation of the awards program;
US Ambassador Hogan being interviewed by Pro-TV at Moldova Fashion Days SS’19.
Capture from TVR Moldova Obiectiv Comun show featuring MCP assistance in Light Industry
• Coordinated press releases around Wine of Moldova participation in international wine fairs. The press release for participation in ProWein trade fair in March received visits from more than 245 international news portals, with a total potential audience exceeding 135.8 million viewers;
• Coordinated press release for the graduation of Moldovan tourist guides from a World Federation of Tourist Guide Associations (WFTGA) training, which was picked up by 10 news outlets in Moldova;
• Began development of cutting-edge documentary with local journalists to provide insight on the development of all four assisted industries, as a result of MCP support.
Capture of the USAID Moldova Facebook Page showing an article on the construction progress of ARTCOR creative hub.
SECTION III
HIGHLIGHTS OF ACTIVITIES PLANNED FOR FY19 Q3 (APRIL-JUNE 2019) Winegrowing Industry
• Initiate proceedings for the fourth intake of the ASW Mentorship and PQUP programs by deploying technological audits and site visits at local firms (local STTA - TBD);
• Assist ONVV to organize at least three trainings and seminars under Wine of Moldova Academy
• Promote the ‘author wine’ concept’
• Support ONVV to elaborate the concept of, and supporting supportive materials for, international communication campaigns (int STTA – TBD);
• Implement Export Support Program for wineries
Tourism Industry
• Organize press trips for international journalists from Italy, Poland, Romania and Great Britain
• Coordinate the preparation and promotion of DescOpera open air classical music festival
Light Industry
• Support ZIPhouse to implement the Fashion Acceleration Program and organize industry events including the Fashion Photography Contest, Z Generation Young designers’ competition, Best Window Display Award
• Support ZIPhouse to develop the Fashion Academy pillar and organize professional training
• Support APIUS to develop the Action Plan for PR and Communications for the Romanian market, and organize DININIMA events on local market
• Assist five companies within the productivity enhancement program
• Assist companies to implement Integrated Quality Management Systems (local STTA - Ala Oberst);
• Develop new productivity flow layout for Maicom apparel manufacturer (int. STTA - Martin Buecher);
• Implement Flying Designers Program in six companies and Pattern Design Program in four companies
• Assist APIUS to support companies to participate in the Romanian wedding fair Ghidul Miresei
IT cluster
• Launch the National Center for Digital Innovation in Education at the Pedagogical University I.Creangă
• Coordinate the participation of the two winners FIRST LEGO League Moldova 2019 in the FIRST LEGO League Open International competition in Izmir, Turkey
• Organize FIRST LEGO League Junior Moldova
SECTION IV
PROJECT ADMINISTRATION Level of Effort Report
The following tables provide summary of the project LOE utilization and estimated expenditures.
MCP LOE utilization
LABOR CATEGORY
CONTRACT
TOTAL (work
days)
Y2Q4 LOE
(March
estimate)
Cumulative
LOE
Remaining
LOE
Long-Term Technical Assistance -
Key personnel 2,497 128 1,716.875 780.125
Long-Term Technical Assistance -
Expatriate (Includes TCNs) 894 64 829 65
Short-Term Technical Assistance -
Expatriate (Includes TCNs and
professional technical assistance
from Chemonics and J.E. Austin
Associates home office staff)
2,164 59.221 1,771.746 392.254
Long-Term Technical Assistance -
CCN 12,153 601.950 8,571.335 3,581.665
Short-Term Technical Assistance -
CCN 6,316 247 5,417.625 898.375
TOTAL 24,024 1,100.171 18,306.581 5,717.419
Administration and Finance
The project’s administrative and financial systems are running smoothly with key, professional and support positions aligned to the needs of the Project. MCP’s budget assimilation is balanced and the resources well-distributed across the years with 76 per cent* of the total contract ceiling expended through March 2019. However, per the Y4Q3 forecast, MCP’s current obligation – which is at 95 per cent – is not sufficient to implement the planned activities.
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