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PROJECT PLAN for years 2012 - 2014 This project plan has been updated during the project monitoring trip in August 2012. The changes are in chapters 4.1, 5.4 and 5.9 in RED. Please note the instructions for filling in this project plan form in the Application guide or the internet: http://global.finland/english/ngo/index.htm

new project

continuation of on-going project, MFA project code_________, project initiation year _______

project is based on earlier forms of co-operation, years 2007-2011

the planning of project has been supported by MFA preparation trip allowance, year 2011

Organisation: 1. Basic information on the Project 1.1 Name of organisation registered in Finland

Suomen ylioppilaskuntien liitto ry (SYL)

1.2 Name of Project in Finnish

Yhteisöryhmien muodostaminen ja kouluttaminen yhteisöjen taloudellisen kehityksen ja aloitekyvyn edistämiseksi

1.3 Name of Project in English

Forming and training community groups in order to improve economic development and initiative of the communities

1.4 Name of Project in other relevant language

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1.5 Location of Project (country, province, village/municipality)

Mongolia, Songinkhairkhan district of Ulaanbaatar city and Arkhangai province

1.6 Name ofthe local partner organisation

Information, Education & Communication Center IEC

1.7 Contact details of local partner organisation

Mailing address: P.O.B 35, post branch 46, Ulaanbaatar – 14201, Mongolia Email: iec_333@yahoo.com, Phone: 976 99039786, 976 91921961 Fax: 976 11 314282 (IEC uses the fax of GIZ, Deutsche Gesellschaft für Internationale Zusammenarbeit)

1.8 Representatives of the co-operation Partner responsible for the Project and their contact information, if other than above

Ms. Odonchimeg Puntsag odonchimegp@lycos.com

1.9 Internet home pages of the co-operation Partner and/or the Project (if any)

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1.10 Planned initiation and termination dates (on a yearly level) of the Project

January 2012 – December 2014

x

x

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Please answer the following question and fill in th e budget summary (1.13) only after answering all other questions on the form. 1.11 Summary of the Project plan. Describe here briefly (max. 700 characters) the development problem that this project is addressing, its immediate objective and the practical means through which these objectives are to be reached:

Livelihood and income generating possibilities have decreased in the Mongolian countryside. As a result of this, many people move to the capital which faces high unemployment figures. This project aims to improve communities’ scope for action through community groups and increase the incomes of the community group members and their families in Songinkhairkhan district of Ulaanbaatar and in Arkhangai aimag (Please see the project area map attached). This will be achieved by establishing and capacitating community groups for economic activities and participation in local development. The results aimed at are:

1. New community groups have been established 2. Community groups’ activity bases are strengthened 3. Community groups have started to work as a network 4. Community groups knowledge and ability to take initiatives (especially for influencing on policy

and decision at the local decision making levels) has increased 5. Community groups entrepreneurships skills and possibilities have improved 6. Households’ economies have improved (e.g. family budget regular calculation)

During the project, 70 community groups will be established, trained and consulted for. The total number of community groups’ members is 560 and family members 2100. In this project, community group is understood as a group of people from the same community (living near each other) working for common goals. Their activities can include savings, having income generating activities or work for local development. Community groups have their own division of work and regulations. ------------ Explanation of Mongolian language words in the application: aimag = province soum = municipality bagh = village khoroo = small unit in Ulaanbaatar 1.12 If this Project is the continuation of an earlier project, please describe here the main results of the earlier stages of the Project.

The project is not continuation of any IEC project, but IEC has previous experience in organizing trainings (the earlier project funded by SYL) and IEC’s manager has participated as team leader in the UN initiated First Community Development Naadam in Mongolia (see 3.1.) Also community groups have participated in the trainings of IEC, even though the main focus has not been on them. 1.13 Budget Summary

year 2012 2013 2014 Self-financing of the 10500 10230 9900

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Organisation Project support application 59198 57375 55192 Total costs 69698 67605 65092

1.14 Other funding of the Project (if any). If the Project receives other funding, please state here the amount and the source of the funding: Amount Source

There is no other funding of the project itself, but the idea is to facilitate the community groups in seeking funding for their business initiatives and activities. Depending on the members, form and motivation of the community groups, they can apply for funds from different sources. As groups define themselves their needs and activity plans, the best sources for funding, when necessary, will be decided on case-by-case basis. Funding possibilities for the groups include the following: Firstly, aimag and soum level administrations have some community development funds to support community groups, small and medium size enterprises and agriculture (aimag development funds are annually about 100 million tugrigs in each aimag and soum development funds are about 50-100 million tugrigs in each soum). There are also such funds in each district of Ulaanbaatar. IEC has already negotiated with Arkhangai’s aimag and soum level administration about cooperation. The idea is that IEC train people (community groups) with necessary skills and administration support some of the trained groups financially. IEC will negotiate with other project area administration on similar cooperation. Well-established groups can apply for official status e.g. as cooperatives or as other legally recognized units, which allows them to open bank accounts and seek loans from the banks. IEC has started negotiations with local banks to organize micro loans with low interest rates for the community groups or their members who want to start small businesses. Another form of possible funding is specifically for groups of vulnerable people, such as women headed households or people with disabilities: according to legislation, government allocates funds at aimag level to groups of vulnerable people who want to start work with the group. These funds, meant for community based social welfare services, are distributed by the Ministry of Social Welfare and Labour in an annual application round. For other groups, it is possible to apply for the employment support funds of the Ministry of Social Welfare and Labour, which supports small businesses and gives credits to people who have attended ILO certified business courses. This will apply to people trained in business skills by IEC, as IEC’s trainers are certified ILO trainers. In Arkhangai aimag, the community groups can also receive loans from IEC’s cooperation organization MercyCorps through the banks. World Vision has promised in kind support for the groups in Songinkhairkhan district in Ulaanbaatar. The above mentioned funding possibilities apply for already established groups with their own income generation plan. All the community groups are also required to collect member savings regularly for their own group. The groups will decide by their own how much each group member should pay for group. The purpose of the savings is to make the groups work as a team and teach them to manage their economies. Amount of savings is not the most important issue.

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2. Local Partner Organisation and nature of co-oper ation 2.1. Please describe the criteria used in choosing the co-operation Partner.

SYL has cooperated with IEC since 2007. Originally the cooperation partner was chosen in a process that started in the summer 2005 when SYL started looking for a new cooperation partner. A number of Mongolian non-governmental organizations had visited Kepa (the Service Centre for Development Cooperation in Finland) in May 2005. SYL contacted several possible partner organizations and requested them to send SYL their project proposals. The project proposal of IEC was clearly the strongest and most interesting out of the five proposals received and IEC itself seemed a very competent partner. When contacted by SYL, IEC’s former partner organization, the German Development Service (DED) and the director of Labour Market Policy Department of the Ministry of Social Welfare and Labour Sh. Battsetseg warmly recommended the organization to SYL. In addition IEC’s past experience of foreign donors convinced SYL of their reporting and planning capabilities. The cooperation between SYL and IEC has gone very well and IEC has proved to be a trustful and effective partner and has always implemented the planned activities. Our earlier projects have had good results. For these reasons SYL decided to continue cooperation with IEC. 2.2 Has the Organisation previously worked with this Partner? If so, please describe the nature of this co-operation and when it took place?

SYL has worked with IEC since 2007 with projects “Information, Education & Communication Centre IEC » (2007-2009) and Travelling Libraries – Training Centres (TL-TC) (2010-2011). The main focus was to provide an improved non-governmental mobile library and training service (TL-TC) in three aimags: Arkhangai, Tuv and Dornod. 2.3 Additional information on the co-operation Partner.

IEC was established in 1999. It is an independent NGO working very actively in the field of education especially aiming to improve the situation of women and people in poor and remote communities. The mission of IEC is to provide a sustainable contribution to the formation of democratic social and economic structures in Mongolia. IEC aims at this via raising citizens’ awareness, knowledge and skills and thus enabling them to take part in the process of development. IEC wants to focus on more on community groups’ capacity building. IEC’s current activities include 1. Travelling Libraries – Training Centres in three aimags 2. Orphanage for street and orphan children in Dornod aimag 3. Establishing and coordinating the NGOs’ network activities 4. Information network (book exchange, disseminating information about laws together with local administration) Currently the personnel of IEC consist of three persons in Ulaanbaatar central office and several manager-librarians-trainers and librarians-trainers in the provinces. The founder of IEC is Ms. Odonchimeg Puntsag who worked in a women’s organization Liberal Women’s Brain Pool LEOS for eight years and was a member of the Global Women’s Media Team for the UN General Assembly Special session to Review the Beijing Platform for Action composed of

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NGO women and women journalists from 12 countries (2000). She was also nominated as one of the “1000 Women for the Nobel Peace Prize 2005” and “1000 Women for the Nobel Peace Prize 2010”. IEC has also organized two forums on gender issues. Odonchimeg Puntsag also worked as a team leader in organizing the First Community Development Naadam (CDN, initiative by UN) in 2006 and produced a publication about this event and community groups. In 2010, IEC organized an international exhibition “1000 Peacewomen across the Globe” under aegis of the President of Mongolia in Ulaanbaatar and in three aimags, during which ecological justice and livelihood, empowerment of women, rural-urban migration, problems of immigrants’ children, education and information dissemination in rural areas were discussed. IEC wants to shift their focus on community groups. IEC has started this work already during last few years and got more skills and knowledge to work with community groups. IEC’s staff has already long experience in training, which only needs to be adjusted to the needs of the community groups. 2.4 How will the co-operation Partner participate in the implementation of the Project (e.g. does it provide labour, economic resources, other assets)?

IEC is the implementing agency of the project. They have already trainers and managers in Arkhangai aimag, one of which is certified ILO business trainer. IEC’s trainers have some experience in establishing community groups. In-kind contribution of IEC includes a car, computers, printers, copy machine and books and other information and training materials. 2.5 Are there other parties involved in the co-operation (e.g. Finnish, local or international organisations or officials)? If so, please describe their role and involvement in the Project.

Bagh, soum, aimag and khoroo governance IEC has signed cooperation contracts (since 2001) with local administration in their current project areas (including Arkhangai) on information dissemination, organisation of trainings and other activities. Songinkhairkhan is a new project area for IEC, but a cooperation agreement will be signed there as well. 2012 is an election year and probably some new relations need to be built after that. IEC will also train local administrators in working with community groups and they will work together for a cooperation activities plan with community groups. Business entities Business entities will participate in making of the cooperation activities plan with the community groups and local administration (three-party meetings, see 5.4, under result 4). Community groups can also cooperate with business entities which are potential buyers of the community groups’ product. International agencies and CSOs IEC is collecting information on community groups established with different goals (e.g. from UNDP, Asian Development Bank, Deutsche Gesellschaft für Internationale Zusammenarbeit GIZ and MercyCorps). IEC will hire experts from international agencies and CSOs for organizing training for IEC’s trainers. Organizations share their experiences and best practices in community group projects. For financial cooperation, please see 1.14.

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3. Background and sustainability of the Project 3.1 How was the Project idea initiated? Is it e.g. a part of a larger Program?

The project idea was initiated by IEC. The project ideas have been taken from the results of the discussion forums of Development Naadam and training experiences of IEC, TL-TCs. The First Community Development Naadam (CDN, the UN initiative) was organized in 2006 and IEC’s manager worked there as a team leader and was producing the CDN publication. In the Community Development Naadam, 400 representatives from 111 communities from all over the country gathered for the first time together to celebrate their initiatives, creativity and resourcefulness to improve their lives and contribute in local and national development. CDN was chosen as one of 10 top events of UN system all over the world for laying the foundation for the replication of other such community-based projects at all levels – provinces, municipalities and villages. In the foreword of the CDN publication, the UN Resident Coordinator, UNDP Resident Representative Ms. Pratibha Mehta wrote that CDN “…provided a forum for interaction, advocacy and knowledge-sharing of innovative community led practices to address poverty and achieve MDG’s in Mongolia”. The CDN demonstrated the necessity for policy makers to promote traditional knowledge, community empowerment, and multi-stakeholder dialogue for participatory local governance and local development. One of the main outcomes of CDN were recommendations for the Mongolian government, local administration, international donor organizations, projects, programs, CSOs and peer community groups on - Basic social services: community health, food and nutrition and community education; - Locally appropriate technologies: water supply and irrigation, fuel and waste and renewable energy; - Community-based natural management and conservation: pasture, forestry, wildlife, water management, eco tourism); - Income diversification and sustainable livelihoods: microcredit and financial services for the rural population, non-livestock incomes, enhanced value addition for livestock products; - The development of organizations and the structure and management of community-based organizations. During the last years IEC has started to focus more on community groups. For example many community groups have participated in IEC’s trainings and IEC has helped them to develop their activities. However, this far IEC has lacked a holistic program to train and work with community groups. After the initial project idea, project has been worked on with IEC and SYL. 3.2 Describe briefly the environment in which the Project will be implemented.

Mongolia is a country of long distances and has the world’s smallest inhabitant density, 1.4 per square km. Total population is 2.7 million, half of which live in Ulaanbaatar and rest in aimag centres and in remote areas. A large part (almost 50 %) of the Mongolians lives still a nomadic or a semi-nomadic life, depending on livestock as their livelihood and moving their home (ger) 3-4 times a year. Administratively the country is divided into 21 aimags (provinces), which consist of soums (municipalities) that are divided into baghs (villages). Ulaanbaatar is divided into 9 districts, which are divided into khoroos (corresponds to baghs in other parts of the country). The project will operate in one aimag, Arkhangai (population 94 900) and in Songinkhairkhan district of Ulaanbaatar. A multiparty system was introduced in 1990 after the soviet time. Still, the former communist party

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MPRP has a strong hold over the state. Voter turnout has been over 80 % and free and fair elections have become the norm, much unlike in other Central Asian states. Corruption is a problem (Mongolia ranked 116th among 178 nations in corruption perception index), but unlike many other developing countries Mongolia has a somewhat NGO friendly bureaucratic environment. Mongolia has only two neighbouring countries, Russia and China, both of which have strongly affected Mongolia’s development. Mongolia’s transformation from a socialist satellite state of the Soviet Union into a market economy from the early 1990´s has been extremely difficult in economical sense. Falling tax revenues have resulted e.g. in degradation of social, healthcare and educational systems, growing poverty, unemployment and falling literacy rates (still 98 %). The unemployment has increased during the last years. Official unemployment rates, which only take into account the registered unemployed, differ from an urban 30 % to an approximated 12 % in the rural areas. In the end of January 2011 there were 38.3 thousand persons looking for job in aimags and capital city, which means 5.6 % increase from the previous year. The higher unemployment rates in Ulaanbaatar are the result of rural-urban migration. One reason for this migration is environmental degradation. Environmental degradation, especially desertification is a huge problem in Mongolia, as 80 % of territory is under desertification. This affects people’s possibilities to practice their traditional nomadic way of living as they don’t have any more hay for their livestock. Many nomadic families must move their homes more frequently during the year and/or move to aimag centres or capital city. One reason for environmental degradation is the mining companies, which use and pollute the water resources. Mongolia is heavily dependent on international financial institutions and has rapidly liberalised its economy and trade policies, resulting in the domestic market becoming dominated by Chinese products and companies. Food security situation is rapidly declining and Mongolia imports more than 80 % of food from abroad, mostly from China. Mongolia has reached the World Bank´s HIPC (heavily indebted poor countries) debt relief initiative decision point and is to receive debt relief according to the program, and possibly more so in the future under the MDRI (multinational debt relief initiative). The Mongolian GDP has been in rise until the global financial crisis that had a big impact on the country. Mongolia’s GDP in 2010 was 3 711 USD (100th among all countries. As a comparison, Finland’s GDP was 34 107 USD). About 35 % of the population lives below the poverty line, depending of the source. Citizens have been carrying on a struggle against poverty and natural disasters using local resources for small production, protecting and restoring the environment, improving the condition of and access to fresh water supplies, improving health services, information dissemination and education by their own and with support of CSOs. 3.3 What is the general state of development in the field of the Project in the area? How does the local government function in this field and in these issues? How does the local government participate in the implementation of the Project - or limit it?

Mongolia is on the 100th place (two years ago on the 83rd place) with a business supporting environment in the world. The two biggest political parties in Mongolia (Communist party and the Democratic party of Mongolia) have expressed their opinion that an important part of the future strategy of the country is development of small and medium businesses. Already now the government is supporting this development process with different funds (see 1.14). During the last years some governmental and civil society organizations have started to support community groups but there is still a huge demand for community group development especially on countryside. The problem of governmental support is that the local administration cannot reach and train the people and therefore they hope cooperation with CSOs. IEC’s long cooperation with the local administration is an advantage and for example during the project planning trip, the representatives of

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Arkhangai aimag and soum administrations were interested in funding the groups that IEC could train. Without trainings, community groups cannot receive funds. The idea of the community groups is also to teach people cooperation skills. People need some encouragement and training to do this, as they are more used to work in a more individualistic way. 3.4 How has the Project been planned?

SYL started to discuss about a new project with IEC during autumn 2010. As some community groups had been established during the previous IEC’s project (which provides travelling library and training services in three aimags). However, the trainings in the previous project were separate and not concentrated on same groups. IEC saw the need to focus in groups and provide them with more comprehensive training, support and follow-up. Because of change of SYL’s development cooperation coordinator in November 2010, the active project planning started in the end of 2010. First IEC sent possible ideas and then KENKKU, Advisory Board for Development Cooperation in SYL (see in 5.7), commented them. After discussion we selected together this theme. IEC and KENKKU communicated during the following months, clarifying problems, solutions and possibilities and developed the project draft. In May 2011 Johanna Ursin-Escobar, Development Cooperation Coordinator of SYL, and Terhi Paikkala, member of KENKKU, conducted a two-week project planning trip to Mongolia (report will be sent during June 2011). During the trip, IEC and SYL’s representatives visited several organizations, including UNDP and GIZ to learn about existing forms of and experiences on community groups. SYL also visited community groups which shared their experiences. The initial project plan was modified to take into account these experiences and advices. During the trip, the activities and indicators were planned together with both central office and aimag staff members of IEC. 3.5 Describe the most essential problems of the beneficiaries that the Project is meant to address.

The most essential problem to solve is poverty (lack of income, skills, knowledge and capacity). Reasons leading to this are unemployment, limited scope for economic activities (lack of trainings and consultations, financial problems, no or insufficient collateral assets), limited group work skills and mentality. Some governors and officials also favour members of their own political parties, which can affect the equal distribution of local resources. Also environmental degradation is affecting negatively to the nomadic livelihoods, which bring income to almost half of the population. (Please see more about problems in 3.2.) One of the two project areas, Songinkhairkhan district in Ulaanbaatar, was selected because this is a district in the outskirts of Ulaanbaatar, which accommodates many poor people who have moved to the capital from the countryside. Even though people move to Ulaanbaatar to find work, there are even more unemployed people there than in the countryside. (See 3.2.) To create more scope for economic activities and local development in the countryside – so that people don’t need to move to Ulaanbaatar – the other project area (Arkhangai aimag) was selected from the countryside further away from Ulaanbaatar. There is in general more need for community group work and less organizations working with the groups. IEC also has previous experience, contacts with local administration and dedicated staff in this aimag. The baseline study for this project are the results of UN Development Naadam, please see 3.1. 3.6 What are the risks that can compromise the outcome of the Project? How is the Project

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organisation planning to minimize these risks? Risks which can be minimized by the project and IEC

1. Groups will split up. To minimize: By organizing trainings e.g. on conflict management and mentality change. Also intensive support and consultation of the groups is important. IEC has also already collected and will collect best practices from other organizations to avoid most common mistakes.

2. Groups will not get financial and other support from the banks, local administrations and development organisations. To minimize: The best working community groups can register as official groups. This will help them to get loans from the banks (see 1.14). IEC has long-term contracts on cooperation with aimag administration which should be renewed with this project. During the years aimag and soum level administration and IEC have had very successful cooperation together and administrator have already expressed their interest in financing the groups trained by IEC. IEC has also good relations with other CSOs and has cooperated with them during earlier project. The cooperation with different organizations can help to organize financing to the community groups.

3. The groups cannot have enough savings. Amount of savings is only crucial for some of the groups, depending on their activities. To minimize: IEC will monitor the use of money of the groups and give advice.

4. The group leader takes too big role in community group and/or other members do not participate actively. To minimize: It is very important not only for the groups to have by-laws, but for IEC to work closely with the groups to make sure the division or responsibilities is implemented. The conflict solution skills also help the groups to work in equitable and transparent way. It should be clear that profits are distributed according to the contribution of each member.

5. Content and structure of the trainings and consulting skills of IEC staff do not meet the communities' demands. To minimize: Materials will be updated when necessary, personnel will be trained and need analysis will be done. Also networking with other organizations with similar projects to get best practices is important. The collection of best practices has been already started during and before project planning trip in May 2011.

6. Participation in trainings and meetings is low. To minimize: To have trainings and meetings close enough to people. Material will be kept simple and well understandable. Also well-planned timetable is important. For example all public holidays and celebrations and herders rhythm of life will be taken into account. Seasons can also affect the possibility to attend trainings. That is why target soums have been selected near aimag centre so that it is easier for people to travel to the trainings.

7. Participants don't understand the project approach, for example they expect direct money from the project and don´t understand the long-term value of the trainings. To minimize: To explain clearly enough for participants what is the idea of the project. To give examples about successful community groups.

Risks which cannot be minimized by the project and IEC:

8. The law on the funds of the collaterals will be postponed.

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Background: At the moment it is difficult for the community groups’ members to have loans from the banks because they need a lot of property as a guarantee (and sometimes property is estimated smaller than in reality). A law on collateral and guarantees should be adopted in February 2012. According to the new law, the government will guarantee 50-70 % of the loans. In this case people don’t need so many assets as they need now to guarantee their loans. Even this law would be postponed, project can be implemented. To do: Lobbying at the aimag and soum level and looking for other financial options.

9. Climatic conditions. In Mongolia climatic conditions are hard (heavy snow, drought, flood, sand storms) which can influence implementation of the activities. For example some trainings can be postponed for snow storms.

3.7 Will the Project create a new institution or procedure or is it going to support some existing structure?

The project will create model of capacity building of community groups which combine capacity building of organisational skills as organisational management, income generating activities and education. During the project new and already emergent community groups will be established. This model is based on previous experiences (both of IEC and of other organizations) of community groups and therefore doesn’t create totally new structure. 3.8 How and when will the responsibility of the Project be transferred to the local government, local organisation or to the beneficiaries?

Transfer of responsibility to local government: The idea of this project is establish and capacitate the groups, which cannot be done by the local administration. However, local government has already showed interest to support groups financially after their establishment (see 1.14). During the project, community groups and local administration will be trained and encouraged to work with each other and they will develop a cooperation activities plan. This will contribute to the transferring of the responsibility to the local administration. Transfer to responsibility to beneficiaries:

The whole project will be sustainable when established community groups work on sustainable way. This aim can be achieved through a series of trainings and intense consultation during the project. The trainings have been built to improve the social, economic and professional sustainability of the groups. Good skills in running small businesses and in group management are the best way to build independent, sustainable community groups. Also savings and/or other financing will help the sustainability of the groups. During the project, IEC will facilitate good connections between the groups, the financial institutions and the local administration.

Building of sustainable community groups will consist in thery of three different phases. First phase is the starting of the community groups. During the second phase, groups will receive training on group management, vocational and basic business skills. This is the phase of becoming sustainable, and this will take in average two years. After two years the groups should be already independent with sustainable activities. After this the project team will just provide them with information and consultation when needed, support their cooperation with the local administration, other groups and other donors, and support them in marketing. The third phase is period of protection of groups’ sustainability or empowerment phase.

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Levels of Start Phase of becoming sustainable Phase of success, sustainability

development

15 days 24 months more than 24 months

Still, based on experience of other organizations working with community groups, many community groups need in practice more than 2-3 years to become really sustainable. That is way SYL and IEC are looking for a longer cooperation with community groups and a continuation project after first project years.

Transfer of responsibility to the local organization: IEC is already now responsible for the implementation of the project and they have the skills and knowledge to support the community groups. In terms of financing, IEC has initial plans about becoming a social entrepreneur to have a small ‘business’ to have also their own source of funding. This idea was already discussed during the planning of this project, but it was decided that this will be postponed to get more background information and to have more detailed plans. SYL is supporting the idea of improving the economic sustainability and independence of IEC, and the starting of social entrepreneurship activities can included in a possible a continuation project.

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4. Beneficiaries 4.1 Who are the direct beneficiaries of the Project? How many are they (approx.)?

The direct beneficiaries of the project are 70 community groups (about 560 people as members of the community groups) in Arkhangai aimag and in Songinkhairkhan district of Ulaanbaatar. Also their family members (2 100) are direct beneficiaries. Totally about 35 groups will be supported in each project target area and each group will have from 5 to 10 members (but as many have 10, the average is 8). Some of these are established during the project, some have been working as a group already previously. In Songinkhairkhan district the amount of community groups is in first year 10 and second year 20 groups. This will decrease the total number of community groups as beneficiaries and number of direct beneficiaries. The change was made because Songinkhairkhan is a new project area for IEC and it has takem more time to start the project as planned. The project will work in two districts in Songinkhairkhan because of high population density. Community groups will be established not in all soums of Arkhangai aimag and not in all khoroos of Songinkhairkhan district, only in researched and selected soums and khoroos (3 per aimag/district). Soums are selected based on previous experiences of IEC. For example in Arkhangai, the selected soums are aimag centre and two others. The soums are selected based on the previous activity level of the local people. Second criterion is the good relationship with the soum administration. Third is the local resources and possibilities. Fourth is the amount of unemployed people. Fifth is higher population density. The groups will be formed based on the people’s own interest. In the beginning of the project, project will announce the project on local needs and distribute a form through which people can inform IEC about their interest to be a community group. The form will be distributed also outside bagh meetings. People will establish the groups on their own with the help from IEC. Therefore the total number will be known during the process. During the project, community groups can join to form bigger groups, in which case there can be structures with subgroups. In this case, the number of members in the group is bigger than 5-10. Based on IEC’s previous experiences, women are more interested in community group work and therefore it is likely that most of the beneficiaries are women. The target group are the people in working age, but also some senior citizens will participate (women older than 55 and men older than 60 years). It is important to establish different groups in one area for being a market for each other for the beginning. The family members are also direct beneficiaries as the incomes of the families increase and they can also participate in the income generating activities. As target is to have 70 % of the groups sustainable, 1470 household members will benefit of increased financial resources in addition to the actual community group members. 4.2. Who are the indirect beneficiaries of the Project?

- People employed by the project (experts and trainers from outside) - IEC personnel (9 people) - Local and state level governments - Soum, bagh and khoroo citizens

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- Local businesspeople (running shops, markets, sellers) - Schools, kindergartens, hospitals - Banks and other financial institutions - Local CSOs and NGOs - Finnish university students taking part in implementation of the project (KENKKU in SYL) If the project support applied for is less than 20.000 €, please answer the following questio n: 4.3 How do the beneficiaries themselves participate in the Project?

If the project support applied for is 20.000 € or m ore, please answer the following question: 4.4 Define the nature of participation in the Project by each group of beneficiaries.

Direct beneficiaries: - Community group members will participate in IEC’s training and consultation and they themselves establish their community groups and strengthen the activities of their groups. - Community groups help in establishing new groups or join to become bigger groups with subgroups. - Community groups will establish network of community groups with the help of IEC (see more in activities, result 3). - Active community groups will establish their own small business units and develop their own business plans. - Success of community groups will encourage other citizens to take active part in social activities and local development. - Community group members will generate more ideas for income generation. - Some community groups will take efforts to include their initiatives to the bagh or soum development plan (has happened already previously) In general, the role of the groups and their members is crucial in implementation of the project as they are themselves responsible for their groups. IEC will provide intensive training and consultation to contribute to this target. This amount of activity required is realistic based on IEC’s and other CSOs experience on working with community groups. - The families of community groups’ members: distribute information to other people about the trainings and events, for example hang posters. They can also participate in income generating activities and learn new skills from their family members who are community group members. Indirect beneficiaries: - People employed by the project and their families: Conduct trainings, help to organize and analyze data, give consultation to community groups - IEC personnel: Implement the project. - Local and state level governments: help and cooperate with IEC according to the laws and regulations, because IEC’s activities are in line with their plans and IEC’s project will help the local development. Local government will support some activities, such as the organization of the fair exhibitions in Arkhangai. - Soum, bagh and khoroo citizens: based on the successes of the first community groups, they can establish their own community groups. Representatives will take part in the 3-party discussions on cooperation between CSOs, governmental institutions and business entities. Citizens will also distribute informally information about the groups. - Local businesspeople: benefit and get profit from the products of the community groups when

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they sell them. They will also help to organize discussions and participate in organizing other events and participate in the 3-party discussions on cooperation between CSOs, governmental institutions and business entities. - Schools, kindergartens, hospitals: Will buy the products of the community groups. Also the income of the parents increase which can contribute to more donations to the schools etc. Schools and kindergartens give rooms for project events. - Banks and other financial institutions: Increased profit for these institutions as community groups take loans for their businesses. - Local CSOs: their skills will improve as they help to organize trainings and other project events with IEC. The community groups can also participate in trainings organized by other CSOs. - Finnish university students taking part in implementation of the project (KENKKU in SYL): Students learn about development issues and development cooperation project management. 5. Objective, plan of action, monitoring and inform ation Objectives 5.1 What is the long-term development objective of the Project?

Local communities in Mongolia are empowered and participation in local development has increased. As a result poverty has decreased. 5.2 What is the direct objective of the Project? (Limited by the area of implementation and the group of beneficiaries)

Communities’ scope for action has been improved through community groups and incomes of the community group members and their families have been increased in Arkhangai aimag and Songinkhairkhan district of Ulaanbaatar. If the project support applied for is 20.000 € or m ore, please answer the following question: (those applying for a smaller amount of support may also answer if they wish) 5.3. What are the results targeted by this Project?

1. New community groups have been established 2. Community groups’ activity bases are strengthened 3. Community groups have started to work as a network 4. Community groups knowledge and ability to take initiatives (especially for influencing on policy

and decision at the local decision making levels) has increased 5. Community groups entrepreneurships skills and possibilities have improved 6. Households’ economies have improved (e.g. family budget regular calculation)

Implementation 5.4 Describe the activities by which the results and immediate objectives are to be accomplished. If possible, please also give a rough timetable (by year) of project implementation.

The project will be started with a preparation phase, followed by actual implementation.

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Implementation consists mainly of trainings, consultation for the community groups and linking and networking the groups with each other, local administration and businesses. One training lasts generally 2-3 days. In the last year, the project will not anymore focus in establishing new community groups and also less training is needed for the already working ones. Therefore there are less training and information material costs in the third project year. The following list divides the activities under the results. These are not separate phases, but the activities contributing to the different results can occur at the same time.

Activities under each result (+ preparation activities): 0. Preparation activities (1 st year, activity number 5 continuously)

1. Collecting detailed information on the best practises of community group work of other CSOs (work started already since early 2011 and will continue throughout 2011 even before the beginning of the project. Some experiences are reported in the project planning trip report of SYL). 2. Selection of the target khoroos in Songinkhairkhan district in Ulaanbaatar. In Arkhangai, the soums are already selected. 3. Selection of mobilizers and Project coordinator in Songinokhairkhan 4. Training to IEC staff members to adjust their training skills to fit to more close work with community groups. Also mobilizers will attend this 10-day training. 5. Selection and training of mobilizers for soums outside aimag centers. The mobilizer in Arkhangai aimag centre is IEC’s current staff member. 6. Developing (or collecting existing information from other organizations on) operational management manual and developing and revising manuals, materials and presentations for the trainings (some exist already) 7. Developing project flyers and geographic maps for community mobilization. 8. Signing contracts with staffs. 9. Negotiations with Songinkharkhan district’s khoroos about cooperation.

1. New community groups have been established (20 g roups during 1 st year and 15 in the

2nd year in each project area) 1. Defining the local needs in the selected soums/khoroos (beginning of 1st and 2nd year)

1.1 Study to define the needs through questionnaires 1.2 Interview soum, bagh and khoroos governors 1.3 Discuss with focus groups (soum officials, citizens’ representatives and social groups

such as youth groups) 2. Distribute information before bagh/khoroo meetings (where many bagh/khoroo citizens participate) and announce the project in the meetings. Application forms/questionnaires/forms with activity possibilities are distributed through which groups can inform IEC about their interest to be in community groups. These are distributed in bagh/khoroo meetings and otherwise in the area. (beginning of the 1st and 2nd project year, after activity 1) 3. Invite people who want to be in community groups to training-discussions, where the idea and possibilities of community groups are explained and people interested in same activities are connected for possible community groups. The people can establish different types of

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community groups, e.g. wool or milk processing groups depending on their interest, skills and needs. (1st and 2nd year, after activity 2) 4. Trainings on establishing the community groups: what is a community group (should have by-laws, collect savings etc.), what forms a community group can take? Giving some reality examples of community groups. (1st and 2nd years, after activity 3) 5. Consultation for the community groups in order to help them to develop their own by-laws and to divide responsibilities. During this phase the community groups will work independently to develop their by-laws and division of responsibilities, but IEC will provide consultation separately for each group on developing by-laws and on developing regulations (e.g. of savings) and documents of the community groups. This development work is a process which will continue when further trainings on community group management trainings run. (1st and 2nd years, after activity 3) Activities 4 and 5 run simultaneously. Activities 3 and 4 are obligatory trainings for all community groups. Establishing the community groups is a process during which the new and also previously formed groups, which already somehow cooperate, learn what a community group actually is and how it should function to be efficient (e.g to have proper division of responsibilities and by-laws). For example, there are groups that have started to work together but they have not had any trainings nor have rules for their cooperation. In addition, according to previous experience by CSOs, such as MercyCorps and GIZ, people need some repetition of trainings to fully learn the contents of the trainings. All the community groups will start to save money soon after their establishment for running and developing their activities. The amount of savings made by each groups will be decided by the groups themselves.

2. Community groups’ activity bases are strengthene d 1. Trainings and consultation on group management (a series of short trainings for community

groups) (each year) 1.1 Training on communication skills, including self-management and time management 1.2 Training on community group management 1.3 Training on community development plan + further consultation 1.4 Leadership training for group leaders 1.5 Training on community groups needs 1.6 Training on delegation of duties and responsibilities 1.7 Training on conflict management and mentality change, including how to work for the

broader community. 1.8 Training on savings

These trainings are all obligatory except the training 1.4 which is based on needs.

2. Trainings on vocational skills and other special trainings based on community groups needs, which have been defined during the establishment of the groups. These include skills for income generating activities (such as wool processing or milk products, depending

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of the type of the group) and skills for environmental conservation, when needed. (each year)

3. Encouraging and training groups to look for information independently (articles, internet, books etc.) (2nd and 3rd years)

4. IEC collects information on groups’ income and profit (each year)

Training methods include participatory methods, such as drama plays for the training on duties and responsibilities.

3. Community groups have started to work as a netwo rk 1. Organizing an annual forum meeting of community groups representatives in each aimag/district, during which trainings and experience sharing will be organized. This will be organized during other events (e.g. bigger markets) during which people are already gathered in centres. (each year) 2. Facilitating the networking of the community groups within each target aimag/district based on the forum organized in the first year. (2nd year) 3. Collecting information on IEC’s community groups to a “pool”, preparation and distribution of information sheets on best practices and on community groups. (each year) 4. Start information sharing between the aimag/district level networks (3rd year)

4. Community groups knowledge and ability to take i nitiatives has increased

1. Training on community groups on cooperation with local administration (each year) 2. Training for local administration officials to cooperate with the community groups (each

year) 3. Starting cooperation between governmental institutions, CSOs and business entities (2nd

year) 3.1 Organizing meetings of community groups with citizens’ representatives’

assemblies/meetings of soums and baghs/khoroos and developing recommendations on local development. This is done during the trainings.

3.2 Sending recommendations developed at the meetings to soum, bagh and khoroo administrations. This is done during the trainings.

3.3 Organizing of 3-party discussions on cooperation (CSOs, governmental institutions and business entities) This is done within general consultation work and other activities.

3.4 Developing a cooperation activities plan, discussed by the different stakeholders (three parties)

4. Implementation of the cooperation activities plan together with different stakeholders. IEC has a role as connecting the community groups and the local administration, and the actual implementation will be carried out mainly by community groups, local administration and possible other stakeholders. These activities are financed by local administration and business organizations. Therefore no project money is budgeted for this activity. (2nd and 3rd year)

5. Organizing of fair exhibition of community groups in Arkhangai aimag. (IEC is the main organizer of this event, which has been organized in Arkhangai already for five years. Other organizations are helping in the organizations. Local administration pays for the costs of the groups to come to the aimag centre.) (each year)

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5. Community groups entrepreneurships skills and po ssibilities have improved 1. Business trainings

1.1 Trainings on starting business, including marketing (for people who need the basics) (1st and 2nd years)

1.2 Trainings on developing business, including marketing (for those knowing the basics of starting) (each year)

1.3 Training on developing the business plan (each year) 1.4 Training on self-governance (each year) 1.5 Training on self-financing (each year) 1.6 Helping the community groups to develop their business plans (each year)

2. Starting of community groups savings (1st and 2nd year) 3. Helping (through consultation or training) the community groups to market their products,

including in internet (each year) 4. Helping the community groups to apply for different financial sources (see 1.14) (each

year) Business trainings consist of a series of trainings, during which the community groups receive the information needed for developing their own business plan. Several community groups take part in each training. During/after business trainings, all community groups start to develop their own business plans, and during this process IEC is offering consultation and help to the groups. IEC also helps the community groups to apply for outside financing or bank loans when needed (for the options available, see 1.14).

6. Households’ economies have improved (family budg et regular calculation) 1. Baseline study and further collecting of information to see the changes: questionnaires of the household incomes (each year: in the beginning, middle and end of the project) 2. Training on family budget (each year) 3. Training on taxes and insurances and on reporting to the relevant offices (training in 1st and 2nd year, consultation also in 3rd year) 4. Helping (by consultations, by linking to relevant contacts) families to buy the equipments, devices and raw materials needed for the business (each year) 5. Consultations and advices on distributing community groups profit to the members by the end of the financial year (each year)

In the community groups, some have common business, some have family subgroups with their own businesses, and some families have their own separate businesses. IEC is working with each community through the whole project. If the project support applied for is less than 20.000 €, please answer the following questio n: 5.5 What has been agreed with the Partner about the separation of responsiblities in the implementation of the Project?

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If the project support applied for is 20.000 € or m ore, please answer the following question: 5.6 Describe the implementation and monitoring organisation of the Project and the responsibility of each party therein.

Responsibilities within IEC: The Board outlines and monitors the organization’s activities quarterly. The monitoring committee, consisting of three members (experts in NGO and economic fields), monitor the accounting twice a year and report to the Board. The central office consists of manager (Odnochimeg Puntsag), assistant-cashier-trainer (Enkhjargal Purevee) and accountant-trainer (Gantuya Badambazar). The central office is in charge of all project activities, such as preparing contracts, development of trainings schedule and curricula of the trainings, developing and collecting learning materials and presentations, connecting and sharing information with the state institutions and trainers/experts and looking for financing possibilities for the community groups. Central office will develop the questionnaires on family income and local needs and will analyze the research data. Central office will also hire outside consultants, trainers and the evaluator. The manager of IEC monitors the project implementation and visits regularly the project areas. Central office will also search and negotiate for additional support for the community groups. In each project aimag/district, there will be one manager-trainer-consultant (Oyunchimeg Erdene and other person defined later), who are responsible for trainings and consultations in each project area and are responsible for the local level implementation. In Arkhangai, there are also two mobilizers, one of which will take care of one soum and the other (current staff member, Munkhbaatar Badarch, who already has training experience) of the aimag centre and one other soum. In Songinkhairkhan, there will be one coordinator and two mobilizers. All mobilizers are responsible for spreading information about the project and mobilizing the citizens to establish community groups. They will also become trainers and help the local managers to give consultation for people. Outside consultant will train IEC’s staff in the beginning of the project and will also go to the project areas to advice the trainers once or more during the project. In aimag/district level, some outside trainers specialized in certain subjects will carry out few trainings on group management and business skills. There will also be an evaluation of the project in the last project year.

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SYL does not implement the project, only monitors, discusses any possible changes in project plans with IEC and reports to the Ministry. For monitoring, see more in 5.7 below.

Monitoring 5.7 How do the responsible persons of the Finnish organisation follow the implementation of the Project and the use of financial resources? How do they participate in its implementation?

SYL monitors the project both by regular e-mailing and by quarter annual and annual reports. In addition to the part-time Project Coordinator Johanna Ursin-Escobar, also KENKKU, which consists of voluntary representatives of the student unions, participates in monitoring. In KENKKU there is a

Board Monitoring committee

Manager Outside consultants, trainers,

evaluators From the outside in Ulaanbaatar

Project coordinator-

- trainer, consultant in Arkhangai

aimag

Assistant-cashier-trainer Accountant- trainer

Aimags’ outside trainers,

consultants

Project coordinator- trainer- consultant in

Songinkhairkhan district of Ulaanbaatar, who is also mobilizer for one

khoroo.

Mobilizer in aimag centre

and one other soum

2 mobilizers in 2 other khoroos

1 other soum

mobilizer

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separate Mongolian -group, which take main responsibility about monitoring with development coordinator. Monitoring trips will be done during first and third project year. The second year IEC’s manager will come to Finland (see more 6.). SYL gives institutional support in development of IEC as an organization. The board of SYL is responsible about monitoring of activities of development cooperation coordination and KENKKU inside of SYL. Responsibilities within SYL: 5.8 How do the local co-operation Partners follow the implementation of the Project and the use of financial resources?

The workers in provinces plan the activities together with the central office and report regularly to IEC manager about project activities. IEC manager reports to the board about activities and prepare narrative and financial reports. IEC manager also visits provinces regularly for monitoring the project and for supporting the cooperation between different stakeholders. IEC will design new reporting forms for community groups for reporting their activities, problems faced and their development. IEC will design also separate reporting form for project area staff to get feedback from the trainings and to follow amount and types of consultations. Central office will develop the questionnaires on family income and local needs and will analyze the research data. 5.9 What kind of numerical or other data will be collected on the advancement of the Project?

Indicators: For direct objective:

1. By the end of the project 70 % of the established groups are continuing their activities in a sustainable way. Source: IEC’s own monitoring and evaluation by outside evaluator at the end of the project.

2. People are more aware of the importance of local decision making and economic processes and take proactively part in development processes. Source: evaluation at the end of the project.

3. Increased amount of community groups’ members generate non-livestock income. Target: 5 %

The Board

Development cooperation coordinator

Advisory board for development cooperation

KENKKU

Mongolia group of KENKKU

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of community group members generate non-livestock income. Source: monitoring by staff and evaluation.

For results: 1 a) Number of community groups established or “re”established (Target: total 70, 40 of which

during the first year, 30 of which during the second year. In aimag/district level, total 35, 20 of which during the first year.) b) Once established, all groups understand the basic principles of being a community group. Source: groups’ by-laws and related regulations signed by all group members.

2 a) Groups have better tools to solve their problems, for example group members will implement collective decisions and conclusions made at the permanent group meetings. Source: staff monitoring of the groups (notes eg. on conflict discussions and their solutions, also numeric): whether the groups are able to solve the problems in discussion in a constructive way. b) The group members use their new vocational skills in the group activities. For example if oly one group member participates in a vocational training they will contribute the skills that they have learnt to the rest of the group. Source: Monitoring and evaluation by the staff.

3 Groups are cooperating, e.g by marketing together their products or combining their products for buyers. Source: monitoring by the staff (reports).

4 a) Half of the community groups run social activities to their members by the end of the second year of their existence. (This leads to increased interest in taking initiatives, based on previous experience.) b) At least 30 % of the groups that have taken community development initiatives to affect local administration during the project.

5 a) Entrepreneurship skills of the training participants have improved. Target: In average, participants have 25 % better performance in the tests after each training compared’ to the same test before the training. b) 70 % of the groups established during the first project year get at least 20 % profit from their business by the end of the project.

6 The incomes of the households’ of the members of the small business running community groups have increased by 5 % during the first year and by 15 % during second year of their existence. (Target was to have 30 % groups with small businesses, which in practise requires outside financing or material support.) Source: Income questionnaires each year and family budget calculations.

For activities (apart from monitoring the implementation of all activities):

1. Activities under the establishment of new community groups: a. The needs of 16 baghs of 3 soums of Arkhangai aimag and three khoroos of

Songinkhairkhan district are defined during the project. 2. Activities aimed at strengthening the activity bases of the community groups:

a. Number of community groups that have developed community group development plans. Target: All groups (70) by the end of the second year.

b. The number of community groups/members receiving consultation and number of times the consultation has been given. Source of information: simple form developed for the staff to fill in during implementation.

c. Number of community group members that have attended to trainings.Target: 80 % of

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attendance of all group members in obligatory trainings. 3. Activities aimed at establishing a network between the community groups

a. 560 information sheets on best practises of the community groups will be distributed to the direct beneficiaries (community group members) and 4 240 for citizens and local administration.

4. Activities aimed at increasing the knowledge and abilities of the community groups to take initiatives:

a. Number of community group members attended to trainings. b. Number of officials attended to trainings. Target: 40 officials each year.

5. Activities aimed at increasing the entrepreneurship skills and possibilities of the community groups:

a. Number of community groups having savings and the amount of savings. (Target: at least 20 groups have savings in the first year and 30 groups in the second year. Target amount of savings per month)

b. People have understood better the importance of savings (source: questionnaires in the beginning of the trainings and after the trainings and also in other phases of the process)

c. 40 % of community groups or members have solved their financial problems, either by receiving financial support (grant or loan) from outside sources or their own, by the end of the second year of their existence.

6. Activities aimed at improving the household economies: a. 60 % of the community group members’ households researched on income during

every project year (= percentage of questionnaires returned). b. Number of households doing the family budget calculation regularly. Target: 380

households annually. Source: Staff monitoring.

In addition, IEC will collect the following information for their own use:

- Number of trainings and number of trainees - Number and subjects of the learning materials developed and bought. - Feedback and learning results from the trainings. People taking part in trainings always fill in

forms before and after trainings, so that IEC will know what they have learned. - Information about the community groups (Direction of activities of the community groups,

number of members, division of responsibilities in the groups, permanent meetings, decisions, activities, plans, etc)

- Number and goals of visits to the community groups, types of problems they face - Results of meetings with local administrations - Connections with financial institutions - Information sheets developed

5.10 Where and how will the accounting and audit of the Project be arranged?

Accounting and audit will be arranged locally in Ulaanbaatar, Mongolia. IEC is responsible for the accounting. The audit will be made by Panthere Midland Audit company, one of the six USAID approved audit firms for Mongolia (www.pantheremidland.mn). This company has conducted the

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audits for SYL-IEC project previously. 5.11 Will the organisation evaluate the Project during its implementation or afterwards? If the answer is yes, please describe how it will be carried out.

During the last project year there will be an evaluation by an outside evaluator, which will be selected later on based on bidding and recommendations by other organizations. The evaluation will be carried out in both target areas. The idea of the evaluation is to find out how well the direct objective of the project as well as the results have been achieved. Therefore for example the direct objective indicators are relevant to the evaluation. The idea of the evaluation is get information about good and not-so-good practices and experiences during this project which can be utilized later with possible continuation project. Exact terms of reference for the evaluation will be done in the beginning of the third project year Information 5.12 Describe how the organisation will inform about the Project. Give details on the goals, target groups, information material and information channels. SYL will inform the student unions and university students about the project. The former have their representation in SYL, and SYL will also organize four meetings per year to discuss development cooperation and information issues with representatives of the student unions. In addition, the members of KENKKU are generally active members of the development cooperation affairs in their respective student unions, which provides for effective knowledge sharing between SYL and the unions. For the latter, apart from the students accessed by the aforementioned activities, KENKKU has also a blog where it posts news of SYL's development cooperation projects and other relevant issues. In SYL’s website there is also other information on SYL’s development cooperation projects. How IEC will disseminate information: Both IEC central office and local coordinators, mobilizers and trainers, experts and consultants from outside will disseminate information about the community groups among communities and local administrations, donors, governmental institutions and companies. The central office will issue information sheets about communitty groups, best practices of communities, information about marketing and other information. This information will be disseminated for example to community groups.

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6. Free-form description of the Project and its operation (optional: if the other questions in this form are not suitable or sufficient to describe the Project, please use this space to give additional information)

ETVO-volunteer SYL and IEC have decided to participate in Kepa’s ETVO volunteer programme, and Finnish volunteers will be send to the project in Mongolia for the two last project years. The first volunteer will be selected in 2012 after the approval of the project by the Ministry. SYL is already participating in Kepa’s ETVO volunteer programme through SYL’s project in Sambia (which will end in 2011) so SYL does not anymore need to apply to be a volunteer sending organization. SYL has already discussed with Kepa about this plan. IEC’s manager’s visit to Finland During the second project year, there will be no monitoring trip by SYL to Mongolia, but instead IEC manager Odnochimeg Puntsag will come to Finland to meet with SYL’s staff and KENKKU members and in order to visit relevant organizations. As SYL has been cooperating with IEC since 2007, SYL and IEC wish to strengthen their partnership with mutual visits. This far SYL has visited annually IEC in Mongolia, but IEC’s members have not visited SYL in Finland. Visit to Finland by the manager will allow more KENKKU members and SYL’s board and staff members to meet with IEC’s long-time manager, and project issues will be discussed during the trip. The trip will also provide IEC a possibility to visit and learn from Finnish organizations and also to visit the Ministry of Foreign Affairs. More detailed plan for the trip will be made in the beginning of the second project year.

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7. The Budget and the financing plan of the Project

Budget Year 2012

Year 2012

Year 2014 Total

1. Personnel costs (Appendix 1) Salaries and related costs of Finnish personnel 8320 8320 8320 24960 Travel and accommodation of Finnish personnel 0 0 0 0 Salaries and related costs of local personnel 24704 24704 24704 74112 Other personnel costs 0 300 300 600 Value of Finnish voluntary work 0 0 0 Personnel costs, subtotal 33024 33324 33324 99672

2. Activity costs (e.g. training) (Appendix 2) Fees of hired experts 6166 5590 1960 13716 Other costs 3500 3500 1500 8500 Activity costs, subtotal 9666 9090 3460 22216

3. Materials, procurements and investments (Appendi x 3) Procurement of materials and appliances 900 900 900 2700 Construction 0 0 0 0 Other procurements 0 0 0 0 Value of donated goods 0 0 0 Materials, procurements and investments, subtotal 9 00 900 900 2700

4. Operation and maintenance (Appendix 4) Operation costs 13680 13680 11280 38640 Maintenance costs 0 0 0 0 Operation and maintenance, subtotal 13680 13680 11280 38640

5. Monitoring, evaluation and information (Appendix 5) Personnel costs and external services 5250 5115 8950 19315 Travel and accommodation 5282 3600 5282 14164 Other costs 1800 1800 1800 5400 Information costs in Finland (max. 5 % of total project costs) 0 0 0 0 Monitoring, evaluation and information, subtotal 12 332 10515 16032 38879

Total implementation costs 69602 67509 64996 202107

6. Administrative costs (Appendix 6) Salaries and related costs of administrative personnel 0 0 0 0 Office costs 96 96 96 288 Fund-raising costs (excluding information costs) 0 0 0 0 Statutory audit costs of the Finnish organisation 0 0 0 0 Value of Finnish voluntary work in administration 0 0 0 0 Total administrative costs 96 96 96 288

Total project costs 69698 67605 65092 202395

Administrative costs as a % of total costs (max. 10%) 0,14 0,142203 0,147701

Financing plan Year Year Year Total

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1. Self-financing (Appendix 7) Cash contributions 5250 5115 4950 15315 Voluntary work and material donations 5250 5115 4950 15315 Total self-financing 10500 10230 9900 30630

Self-financing as a % of total project costs 15,06 0,1513202 0,1520924

2. Project support from the Ministry for Foreign Af fairs Earlier allocation of project support 0 0 0 0 New/additional application 59198 57375 55192 171765

Total financing 69698 67605 65092 202395

8. Development objectives and cross-cutting themes of the Project 8.1. What is/are the development objective(s) of the Project? Mark one main objective and max. 3 other significant objectives: Main objective Other objective x Abolishing extreme poverty and famine (Objective is to diminish

poverty) Extending elementary education to all x Improvement of gender equality and the situation of women Diminishing infant mortality Improving the health of pregnant women Work against HIV/Aids Work against malaria and other significant illnesses Sustainable development of the environment Access to clean water Improving living conditions in the slums x Improving the working conditions of the private sector and

increasing economic interaction x Advancing democracy, human rights and good governance Advancing the state of peace and security Developing a just and regulated international trade and financial

system Solving the debt problem of developing countries using national

and international means Bringing the benefits of using new technology and especially

information technology to developing countries in co-operation with the private sector

None of the above. Other, explain.

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If the project support applied for is 20.000 € or m ore, please answer the following question: 8.2 How does the Project plan take into account the Poverty Reduction Strategy Paper (PRSP) or other equivalent national plans of the developing country concerned? If it has not been taken into account, please justify:

The project plant takes into account Mongolia’s Poverty Reduction Strategy Paper, which is called the Economic Growth Support and Poverty Reduction Strategy (EGSPRS). The aim of the paper is reduce poverty by ensuring higher economic growth and focusing on education, health and social welfare sectors. EGSPRS’s specific objectives are: • deepen the reforms for ensuring macroeconomic stability, and to intensify the process of economic restructuring; • improve the health of the banking and financial sectors; • recover and develop national industry to ensure economic growth through export-oriented industry; • develop infrastructure to support regional as well as rural development; • improve the quality of education at all levels and greatly expand access to health services; • reduce unemployment and poverty, to generally improve the living standards of population; • ensure sustainable development and ecological balance and mainstream nature conservation and environmental policies as priorities within regional socio-economic development; • accelerate land reforms; • reduce the air, water and soil pollution in large cities and settlements; • to improve the living environment of the people through the reprocessing of waste; • improve governance to ensure human security; • create a fair, moral and democratic society that protects concepts of democracy, basic human rights and the freedom of each citizen; The project has a strong connection with (micro)-economic growth, reduction of unemployment and poverty, rural development, education and gender equality. It has also impact on ecological balance and nature conservation as well as creating active, democratic society. 8.3. Cross-cutting themes of development policy

The development policy program of the Finnish government contains a number of cross-cutting themes that are to be taken into account in all development activities. Instructions: In the column "impact" please mark a sign as advised below according to the impact this Project is estimated to have. Justify with one sentence the most important positive and negative impacts of the Project. Options: ++ significant positive impact + positive impact 0 no impact - negative impact Themes Impact Justification/Additional information

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Impact on the Environment Access to clean water and sanitation 0 Environmental distress (soil, water, atmosphere, waste) + Protection of biodiversity 0 Sustainable use of natural resources (incl. Energy, consumption, erosion) + Reducing gender inequality Division of work between men and women + Women's access to income and their right to possess ++ Women's participation in decision making ++ Sexual health and reproductive rights 0 Reducing violence 0 Equal opportunities to education + Supporting the most vulnerable groups (the disabled , ethnic or religious minorities, aboriginals, children) The most vulnerable groups as members of the community (the attitudes towards the most vulnerable) + Empowerment of the most vulnerable groups ++ Equal rights of the most vulnerable groups + Good governance and enhancing democracy Reducing corruption 0 Strengthening the local skills on good governance + Transparency of financial management and information (among implementers) ++

The community groups will learn the importance of transparency in their work.

Improving information exchange in the civil society ++ Improving involvement in the civil society ++

30

9. Signatures Place and date Place and date Signature Signature Name in capitals Name in capitals Position Position Appendices

Any applicable agreements, requests for assistance, authorisations, etc.

Map of Mongolia with project areas

Project implementation plan

X

X