REDP aims to develop two sectors in Khatlon and GBAO. This includes Tourism sector: (a) Hospitality (homestays, hostels, motels, mini-hotels, etc.); (b) Catering (cafes, restaurants, canteens, adjacent to the hotel cafes, teahouses, etc.); (c) Handicrafts (wood, metal, folk crafts of chakan embroidery, woodwork); (d) Health resorts (sanatoriums, spas); (e) Tourist operators. (f) Other areas of this sector corresponding to the criteria and parameters of the project (the list is not limited and funding depends on each individual project of the applicant).
In Agribusiness sector: (a) Procurement of equipment for drying fruits and vegetables (canning); (b) Procurement of equipment for the production of small packaged products to be sold in local markets or brought by tourists as souvenirs; (c) Equipment for storage and cold storage facilities; (d) Fruit and vegetable processing equipment; (e) Honey processing equipment; (f) Other areas of this sector corresponding to the criteria and parameters of the project (the list is not limited and funding depends on each individual project of the applicant).
The contribution of the beneficiary is 20% of the total project amount (in special cases 10%) and is expressed financially, i.e. the applicant after approval of the project by the Grant Committee must open a bank account, credit it with 20% of the project amount in national currency (TJS) and provide the responsible parties with a certificate of funds availability on the account.
Funds issued as a grant, used for their intended purpose and within the framework of implementation of the objectives of the project shall not be subject to return. In cases of misuse of funds or violation of established rules of grant use, as well as other requirements of the legislation of the Republic of Tajikistan in processes related to the grant, grant funds are subject to partial or full return.
ВAs part of the REDP, monitoring (inspections) will be conducted on a mandatory basis for the intended use of the equipment and the social impact of the project. Inspections will be conducted without prior notice at any stage of project implementation.
The following matching grants will be funded under the REDP for MSMEs and individual agribusiness entrepreneurs: (1) drying or packaging machines, (2) (cold) storage facilities, (3) equipment for producing small packaged foods to sell at local markets or to tourists as souvenirs, (4) improvements to production processes to obtain food safety and quality certifications.
The following matching grants will be funded under the REDP for MSMEs and individual entrepreneurs in the tourism sector: Goods, works and services to be funded under this sub-component include, but are not limited to, the following:
- For hotels and restaurants:
- Goods, works and services that are part of a predetermined module to upgrade and improve toilets, depending on their size.
- Improvements to the dining area or facade of the restaurant.
- Signage along the main road, rest area, etc.
- For artists and craftsmen:
- Acquisition of basic machines and equipment necessary for the trade (sewing machine, welder, cutting material, etc.)
- Goods, works and services that are part of a predetermined module to improve the production/creation process.
- For tour operators, DMOs and service providers:
- Installation of a tourist information booth (kiosk). Subject to the provision of appropriate permits and documents.
- Purchase of necessary equipment and machinery.
- Development and updating of websites.
- For farmers and agritourism organizers:
- Creation of trails on the farm for walking tourists, development of a route and a tour.
- Purchase of necessary equipment and machinery.
- Packaging and sale of agricultural products to tourists.
- For tourist areas (resorts, health centers, local attractions):
- Creation of a tourist information booth (kiosk), kiosks for selling souvenirs and soft drinks. Subject to the provision of appropriate permits and documents.
- Improvement of sanitary and hygienic conditions.
- Purchase of necessary equipment to improve the quality of service. The list of equipment can be found in the catalog, which is available on the website, or by requesting the project facilitators. It should also be noted that the list is not closed. Goods, works and services not included in the lists may also be funded, if they are in line with the objectives of the project under the matching grants, and provided that they are not included in the list of unacceptable goods, works and services, as concluded by GMC and PIU.
Currently, the project does not provide funding for sub-projects for entrepreneurs who rent premises.
The amount of the project must be justified by the reasonable needs of the applicant and the volume of his/her activities. For individual farmers and individual micro, small and medium enterprises, a maximum grant amount of 20,000 USD is set.
Up to 75,000 USD for agribusiness and up to 80,000 USD for tourism infrastructure for each grant proposal in Khatlon and GBAO will be allocated for the overall community-based infrastructure competition.
Categorically, no. This component is aimed at promoting entrepreneurial activity and increasing the growth and employment of MSMEs in tourism, agribusiness and related sectors. For this reason, if the equipment was operated for personal use (misuse), the Applicant will be obliged to return the grant funds by the decision of the Grant Committee.
Matching grants within the project are awarded to reliable and sustainable projects that will maintain viability and activity after receiving grant funds. Although the project is social in nature, it is designed to strengthen specifically entrepreneurial activity. Income, inventories and in general, current assets and the size of assets, as well as the responsibilities of the beneficiary are taken into account.
The application may be rejected for a variety of established reasons, including:
- the applicant's lack of business operations;
- the applicant's business is unsustainable, unprofitable, or in violation of local law;
- the applicant has outstanding tax liabilities;
- the applicant is a borrower and guarantor of a loan that is in arrears or exceeds the applicant's working assets;
- there are environmental and social risks associated with the project or the applicant's business;
- if the risk of misuse of the grant is found;
- the applicant's equipment has already been financed by another project or donor;
- the applicant is a related person in relation to the employees connected with the grant process;
- the applicant performs illegal activities that may affect the grant process.