USAID REFORMA Project Year Three, Second Quarterly Report First Quarter 2014

The project focuses on enhancing the business environment, improving the legal and regulatory framework, and increasing access to finance for SMEs. The project is implemented by Deloitte Consulting, LLP, and is funded by the United States Agency for International Development (USAID). The project's major accomplishments in the first quarter of 2014 include the launch of new projects, ongoing projects, and completed or near-completed projects. New projects launched in the first quarter include the drafting of supporting regulations for the licensing law, HICD assistance to the Ministry of Economy, and HICD assistance to the State Agency for Geology. Ongoing projects include HICD assistance to the State Geology Agency, public outreach and awareness for introducing the universal tax declaration regime, and support of the working group on VAT and sales tax policy formulation. The project's major activities and their status as of the end of the first quarter are listed in a table. The table shows that new projects were launched in the first quarter, including the drafting of supporting regulations for the licensing law, HICD assistance to the Ministry of Economy, and HICD assistance to the State Agency for Geology. Ongoing projects include HICD assistance to the State Geology Agency, public outreach and awareness for introducing the universal tax declaration regime, and support of the working group on VAT and sales tax policy formulation. The project's HICD assistance to the Ministry of Economy has focused on institutionalizing the strategic planning process. In March, REFORMA selected the Institute for Humanitarian Design to provide a new phase of support in strategic planning to the newly created Internal Development Unit and the Strategic Planning Department. The Institute will develop and deliver training programs and coaching on strategic planning and program-based budgeting, provide consulting services in drafting MoE strategic documents, and conduct a study on the current state of strategic planning in the MoE. The project's HICD assistance to the State Agency for Geology has focused on optimizing the reporting process for private sector mining exploration and development. The project has also supported the development of a licensing data base and the creation of a website for the State Agency for Geology. The project's public outreach and awareness activities have focused on introducing the universal tax declaration regime. The project has also supported the working group on VAT and sales tax policy formulation and has issued the fourth issue of the REFORMA Newsletter. The project's implementation phase for improving VAT administrative processes is ongoing. The project has also supported the launch of the REFORMA Grants Program and has submitted a grant application and USAID approval for implementation of the strategy and action plan for sustainability of the Secretariat of the Business Development and Investment Council. The project's commodity procurements for the MoE and the State Agency for Geology are ongoing. The project has also supported the launch of a study tour for tax officials to study VAT requirements under the Customs Union. The project's medium- and long-term development strategy for the mineral resources sector was completed in the first quarter. The project also supported the launch of a study tour for the State Geology Agency to Turkey. The project's implementation phase for improving the legal, regulatory, and administrative processes in technical inspections is scheduled to be launched in the second quarter of 2014. The project will also conduct a study tour for the State Geology Agency to Turkey in the second quarter. Overall, the USAID REFORMA Project is making significant progress in improving access to finance for SMEs in the Kyrgyz Republic. The project's major accomplishments in the first quarter include the launch of new projects, ongoing projects, and completed or near-completed projects. The project's implementation phase for improving VAT administrative processes is ongoing, and the project has supported the launch of the REFORMA Grants Program.