USAID COMPETE PROJECT QUARTERLY REPORT, OCT 1 – DEC 31 2012

Key achievements included increasing Palestinian exports, supporting product innovation, and expanding job skills. Notable progress was made in the Stone and Marble sector, with Group Marketing beneficiaries securing domestic and export sales contracts totaling $4,350,000 USD following participation at the Marmomacc trade fair in Verona, Italy and the Dubai Big 5 exhibition. Additionally, the Forward Contracting initiatives in agribusiness expanded, with the value and volume of domestic contracts growing to $230,404 and an export pro-forma contract of $783,860 USD to a buyer-processor in Jordan. The project also supported the development of innovative products and services. In the tourism industry, a new mandatory hotel classification system was launched, and in-service training was provided to hotel management and line staff to prepare for the challenges presented by the new system. Workshops were held to link new digital services demanded of the tourism sector as "market opening opportunities" for established and emerging Palestinian ICT firms. In the commercial agriculture sector, technical assistance and training sessions were provided in advance "grafting techniques" with Palestinian agriculture nurseries, introducing new disease-resistant varieties to growers at a reduced cost. The project also led a training seminar with the packaging institute of Lebanon – LibanPack – to better understand emerging packing and packaging requirements of the international markets and build skills in the Palestinian Food Industries Union (PFIU) to provide similar services locally. The project's efforts were focused on supporting private Palestinian enterprises to engage competitively and successfully in market opportunities. This response measured in sales achieved was an outcome of owner-manager initiative coupled with a mix of support activities from USAID Compete, including technical assistance, training, cost-sharing grants, and market penetration activities. The project's progress was measured by indicators, achievements, and key lessons learned, which are described in detail in the M&E section of this report and highlighted in the Highlights section. These achievements are interlinked in the value chain of economic growth, where exports spur demand for new products and innovative services that in turn demand new and better skills from a growing workforce. The Palestinian Fresh Herbs Association was launched and established as a commercial non-profit company owned and operated by leading private sector herbs exporters to self-regulate the industry in collaboration with the Ministry of Agriculture and other related PA institutions. A series of workshops for commercial agribusiness exporters was conducted by a leading Palestinian freight-forwarder, bringing stakeholders up to date on new transport routes, import licensing, related food safety rules, transit and packaging requirements, order fulfillment and acceptance documentation. The project's support for the Palestinian economy was focused on increasing exports, supporting product innovation, and expanding job skills. The project's achievements were measured by indicators, achievements, and key lessons learned, which are described in detail in the M&E section of this report and highlighted in the Highlights section.