Restoring Efficiency to Agriculture Production (REAP) Quarterly Progress Report

AID-114-C-13-00002. The project aims to improve the efficiency of agriculture production in Georgia by providing technical assistance and grants to small and medium enterprises (SMEs) in the agriculture sector. In Quarter 2 of Project Year 2, REAP completed four full rounds of grant solicitations and applications, with 47 grants awarded and an estimated 12-14 additional grants expected from Round 4. The REAP grant fund of $6 million is expected to be fully expended by Quarter 3 of REAP's second year. The rapid implementation of REAP's grant component has resulted in several benefits, including longer running life and productivity of grant enterprises, highlighting the importance of the REAP technical assistance component, identifying critical cross-cutting areas to be addressed, and confirming the utility of the REAP grant model. REAP's grant component has leveraged more than $12 million in private sector matching contributions and more than $12 million in commercial finance facilitation. The project has also implemented several technical assistance activities, including packaging and labeling consultancies, farmer field days, soil test interpretations software for local laboratories, individual consultancies for food safety and quality management, business management group trainings, and DCFTA. Additionally, REAP has conducted a survey of technical assistance needs and provided non-grantee technical assistance. The project has also made significant progress in cross-cutting activities, including gender, access to finance, workforce development, and collaboration with donors. REAP has established terms of cooperation with TBC Bank/Bank Constanta and has provided access to finance orientation training for women-owned businesses. The project has also collaborated with the European Bank for Reconstruction and Development (EBRD) and the European Neighbourhood Programme for Agriculture and Rural Development (ENPARD). In terms of financial and expenditure summary, REAP has reported a total expenditure of $4,511,419 as of March 31, 2015. The project has also identified several key constraints, including programmatic constraints related to the availability of grant funds and the need for additional technical assistance. Overall, REAP's progress in Quarter 2 of Project Year 2 has been significant, with the project making substantial progress in implementing its grant component and technical assistance activities. The project's achievements have highlighted the importance of the REAP technical assistance component and the utility of the REAP grant model.