Azerbaijan Competitiveness and Trade (ACT) Project ACT Q2 FY2011 Quarterly Progress Report

The project began operations in October 2010 and builds on the work of various other USAID projects to support similar objectives. The overall objectives of the project will be supported through the elimination or mitigation of technical and administrative barriers that hinder progress in all three areas. The project is formally divided into three interconnected and interdependent components: Domestic Business Environment Improved, Liberalized, More Transparent Trade Environment Developed, and Targeted Agricultural Value Chains Improved. Cross-cutting technical areas that support all three components include institutionalization of education related to trade, investment, and agriculture; development of a public-private dialog; analysis of costs of various initiatives; overall monitoring and evaluation; and development and implementation of a grants program to support the development of partner organizations in building local institutional capacity. The project works towards achieving a broad-based understanding and acceptance of the need for an improved domestic business environment and a liberalized, more transparent trade environment involving businesses, universities, and other stakeholders. Key activities include building public-private dialogue, improving domestic business-related legislation and public expenditure, institutionalizing knowledge, and improving the financial sector. In Q2 FY2011, the project made significant progress in all three components. Component 1, Domestic Business Environment Improved, focused on building public-private dialogue, improving domestic business-related legislation and public expenditure, institutionalizing knowledge, and improving the financial sector. Component 2, Liberalized, More Transparent Trade Environment Developed, supported the Government of Azerbaijan on WTO accession, improved anti-money laundering, and quantified the costs of the current trade regime. Component 3, Targeted Agricultural Value Chains Improved, identified sub-sectors that exhibit potential for competitive growth, improved competitiveness of targeted sub-sectors, and improved knowledge of agricultural best practices. The project also made progress in planning and coordination with other projects, monitoring and evaluation, staffing, and equipment. The project management activities are essential to ensure the project objectives are met, and the project is on track to achieve its goals. The project's financial reporting is also an essential aspect, and the project is committed to providing accurate and timely financial information. The project's outreach highlights for the quarter include the organization of the first-ever regional conference on "Anti-Money Laundering and Combatting Financing of Terrorism" with participation from the Government of Azerbaijan, foreign Financial Intelligence Units, and international donor organizations. The project's deliverables schedule and status through Q2 are also provided in Annex 1, which highlights the progress made in all three components. Overall, the ACT project is making significant progress in improving the domestic business enabling environment, developing a liberalized, more transparent trade environment, and enhancing targeted value chains in the agriculture sector of Azerbaijan. The project's cross-cutting technical areas are also supporting the achievement of the project's overall objectives.