USAID COMPETE PROJECT QUARTERLY PROGRESS REPORT

USAID COMPETE QUARTERLY REPORT, OCTOBER 1 – DECEMBER 31, 2016

USAID COMPETE PROJECT

QUARTERLY PROGRESS REPORT

October 1, 2016 – December 31, 2016

The author’s views expressed in this publication do not necessarily reflect the views of the United

States Agency for International Development or the United States Government. It was prepared

by DAI.

January 2017

USAID COMPETE PROJECT

QUARTERLY REPORT

October 1, 2016 – December 31, 2016

DAI

Contract Number: AID-294-C-12-00001

The author’s views expressed in this publication do not necessarily reflect the views of the United States

Agency for International Development or the United States Government. It was prepared by DAI

Cover Photo: A site engineer overseeing work plans to install treated waste water irrigation pipes and pumps

across a hillside in Deir Sharaf – Nablus. The pipes will transfer water from the Deir Sharaf treatment plant

to surrounding farmers as part of a pilot.


TABLE OF CONTENTS

ACRONYMS AND ABBREVIATIONS .................................................................................... II

CHAPTER ONE: EXECUTIVE SUMMARY ................................................................... 3

CROSS CUTTING AND VISITS ............................................................................................. 5

CHAPTER TWO: KEY ACCOMPLISHMENTS............................................................. 7

WEST BANK ......................................................................................................................... 7

GAZA KEY HIGHLIGHT ..................................................................................................... 10

CHAPTER THREE: SUMMARY OF PROGRESS BY SECTOR ................................. 13

WEST BANK ................................................................................................................... 13

AGRIBUSINESS ................................................................................................................... 13

ICT...................................................................................................................................... 21

STONE AND MARBLE ........................................................................................................ 26

TOURISM ............................................................................................................................ 29

ALL SECTORS ..................................................................................................................... 32

LEVERAGING PARTNERSHIPS .................................... ERROR! BOOKMARK NOT DEFINED.

GAZA ................................................................................................................................ 34

VISITS AND MEETINGS ...................................................................................................... 35

AGRIBUSINESS ................................................................................................................... 35

FISHING ............................................................................................................................. 39

ICT...................................................................................................................................... 41

TEXTILE AND GARMENT .................................................................................................. 44

TOURISM ............................................................................................................................ 48

FURNITURE ........................................................................................................................ 50

CHAPTER FOUR: GENDER & YOUTH ....................................................................... 51

CHAPTER FIVE: MONITORING AND EVALUATIONERROR! BOOKMARK NOT DEFINED.

CHAPTER SIX: COMMUNICATIONS AND OUTREACH ....................................... 55

CHAPTER SEVEN: FINANCE AND OPERATIONS .................................................. 56

ANNEX A: SUMMARY OF PROGRESS TOWARD INDICATORS ....................................... 59

USAID COMPETE QUARTERLY REPORT, OCTOBER 1 – DECEMBER 31, 2016 ii

ACRONYMS AND ABBREVIATIONS

CG United States Consul general

CLA Israeli Coordination and Liaison Administration

EDF Environmental Documentation Form

FLAP Firm Level Assistance Program

FSSC Food Safety System Certification

FY6/Q1 First Quarter of Fiscal Year Six

GEOMIS Geographical Management Information System

GLOBALGAP Global Good Agricultural Practice

HMS Hotel Management Software

HLITOA Holy Land Incoming Tour Operators Association

ICT Information and Communications Technology

IPM Integrated Pest Management

IOS Internet Operating System

LOA Letter of Agreement

M&E Monitoring and Evaluation

MITT Ministry of Information Technology and Telecommunications

MOA Ministry of Agriculture

MOTA Ministry of Tourism and Antiquities

MOU Memorandum of Understanding

NI National Instruments Corporation

NIS New Israeli Shekels

PCRHTS Palestinian Commission for Restaurants, Hotels and Tourist Services

PIP Palestinian Internship Program

PITA Palestine Information Technology Association

PMP Performance Monitoring and Evaluation Plan

RFP/Q Request For Proposal/Quotations

RFQ Request for Quotations

SME’s Small and Medium Enterprises

SOW Scope of Work

TAMIS Technical and Administrative Management Information System

TLC Tension Leg Cages

TWW Treated Waste Water

USAID United States Agency for International Development

WIU Palestinian Wood Industries Union


CHAPTER ONE: EXECUTIVE SUMMARY

The United States Agency for International Development Compete Project (Compete) is pleased to

present its first quarterly report for its sixth year of implementation (Fiscal year 2017). USAID’s

partnership with the Palestinian private sector through its Compete Project interventions has seen

remarkable progress in improving the competitiveness of Palestinian

value chains, with emphasis on improving their market position.

The Project has entered its sixth year of implementation following an

extension of the period of performance from the original end date of

November 29, 2016 which is now set for November 29, 2017. As

such during the past quarter (October 1 – December 31, 2016) the

Project has reviewed its accomplishments over the five years of the

Project and formulated a work plan for Year 6 which has been

submitted to USAID for their review.

The Compete Project continues to support Palestinian enterprises in

key sectors - 892 firms, farms, individuals and cooperatives to date

have benefited from USG support. Of these companies 678 have

been from the West Bank and 214 from Gaza.

During quarter one of fiscal year six, the Project worked with the

West Bank agribusiness sector to secure achievements to date and

move beyond forward with support towards achievements made in

the first five years. Marketing support has continued as well as technical assistance through the Firm

Level Assistance Program with companies such as Haifa Company benefiting from a new production

line, launched this quarter, enabling it to package dates and other products in high quality packaging.

The USAID Compete Project began implementation with the Municipality of Nablus and Water

Users Association of the Deir Sharaf Treated Waste Water project. The Project aims to assess the

best methods towards saving a tremendous quantity of water from waste and rainfall that would

otherwise be depleted into valleys and the sea.

The baby cucumber season came to a close with 368 tons of product sorted, washed and shipped to

pickling companies. The baby cucumber subsector is growing with three additional clusters in

formation, made up of farmers who have applied for support from the Project. The strawberry

scalability program is likewise resulting in positive yields for participating farmers with 28 tons sold.

Compete is supporting the grape subsector, having designed and announced a program to improve

competitiveness and address market failures. Over 799 individuals have applied to the grape program

covering a total of 2800 dunums with 190 farmers benefiting from new hanging systems across more

than 600 dunums of land.

In the ICT sector, the Palestinian Internship Program has completed its fourth cycle of placing

interns within high-tech companies. In addition, the USAID Compete Project, in coordination with

the Office of the Quartet and Ministry of Information Technology and Telecommunications (MITT)

will be supporting a group of apprentices to be placed in companies after completing a two month

long SAP training. The training of fresh graduates is taking place from the end of November until the

end of January 2017. Another SAP related activity took place during November 2016 with a SAP Big

Data training taking place in Amman – Jordan. The training opportunity introduced Palestinian and

Jordanian startups on Big Data technology and SAP’s platform named HANA. This quarter an MOU

was signed between MITT and USAID through its Compete Project which seeks to improve “eGov”

Key Quarterly Achievements

Leveraged $85.6 Million in private

sector investments in firm level

support.

892 firms, farms, individuals,

cooperatives assisted.

178 persons trained in Quarter 1 of

Year 6.

More than 600 dunums of land

supported with hanging systems for

grapes.

Gaza exported 825 kilos of high value

fresh herbs.

eGov initiative launched this quarter to

enhance government services.

Implementation of Treated Waste

Water pilot in Deir Sharaf underway.

USAID COMPETE QUARTERLY REPORT, OCTOBER 1 – DECEMBER 31, 2016 4

services to reduce the burden of operational necessities, such as registrations, for Palestinian

companies. A manager was hired to lead eGov efforts from within the Ministry. Finally, USAID

through its Compete Project, co-sponsored the EXPOTECH Palestine Technology Week 2016 - a

major one week-long event held annually - which exposes the Palestinian ICT sector and provides a

platform for discussing state of the art technological trends locally and globally.

In the Stone and Marble sector USAID through its Compete Project signed a grant with a company

from Jenin to cost-share the procurement of an antique production machine which will use excess

stone waste from quarries. This intervention is intended to increase the company’s production

capacity, add new products, and assist them to expand into local and Israeli markets. The Project

also supported the participation of a Palestinian stone and decorative company, Verona, to showcase

their products at the Marmomacc trade show in Italy, one of the leading global events for the natural

stone industry. The Project is working with Abu Kamil Automatic Block Factory and Ejada Company

to manufacture environmentally friendly products that are commercially viable. Tests by an

independent lab have confirmed the pilot products made possible through Compete support were of

a sound quality and scale-up of production is being considered. Towards creating locally made

machines for local industry needs, a workshop took place in Amman - Jordan for PPU professors on

National Instruments software and hardware with a weeklong training session. USAID’s Compete

Project entered a partnership with National Instruments (NI) - a US-based firm developing

automated test equipment and virtual instrumentation software - to fill this gap and build the

capacity of local universities around machine design and manufacturing to improve the

competitiveness of value chains of key sectors on the Compete Project.

In Gaza this quarter, Compete is making progress with its specialized wells project that aims to use

solar systems for forty-four (44) wells replacing the inconsistent electricity supply and costly fuel –

18 wells have been approved by the Coordination and Liaison Administration (CLA) for

implementation. Five agronomists were trained and began work in August 2016 and their contracts

will continue until January 2017. Fresh herbs farmers supported by USAID have together successfully

shipped 825 kilos of fresh herbs to the US, Russia as well as other export markets. The Project also

decided to assist 28 farmers in the strawberry sector as a follow on program and plastic roofs and

steel fasteners were installed across farms in December to increase the quality and scale of

strawberry farming in Gaza. Results in the strawberry sector have been favorable with the total

quantity of exports by December 2016 reaching 111 tons – 1.5 tons of which came from the

computerized strawberry pilot project.

In the fish sector, Al Bahar is following in the steps of Kuhail Farms by establishing a fish hatchery to

produce the key input of fish farms, fingerlings. This activity follows the successful results of Kuhail’s

fish hatchery lab established with USAID support which has proved valuable in securing fish farm

inputs (fingerlings) and saving costs. Al Salmi fish farm is being supported with solar energy and

aerators which are in process of being procured towards the goal of increasing the production

quantity and quality. A previous recipient, Fish Fresh, which expanded their farm, is now selling fish

which were placed in newly established tanks – 350 tons have been sold to date.

In the Gazan tourism sector, the Project has received 123 applications with 32 assessments

underway and 11 LOA’s signed. Five companies are also enrolled in Compete’s Export Market

Development Program. For the textile and garment sector, progress has taken place with

assessments of applications (93 applications) through FLAP, and eleven (11) clients approved and

signed LOAs by the end of this reporting period. The procurement process for the garment sector

is underway for the provision of up-to-date machinery and tools to enable the sector to produce


products that meet export market specifications. Potential deals have been secured through the

Project facilitating meetings with potential buyers in Israel. This support will be expanded in Year 6

with a Marketing Program through a consulting firm, to increase the engagement with Israeli buyers,

providing insider access to secure deals and communications support. The Project also completed

institutional assessments, for each of the unions representing the garment and textile, tourism, and

furniture sectors and completed surveys of the sectors with union coordination. The Tourism union

has also received support through an in-kind grant for equipment, furniture, a revamped website and

other institutional support based on recommendations found in the assessment completed by

Compete. In the tourism sector, 43 applications for support were received and four (4) LOA’s were

signed with hotels and restaurants that cater for domestic tourism in the strip.

Summary of FLAP activity in the West Bank this quarter (since start of FLAP):

Sectors Total Applications Approved Cases Rejected Cases

Agriculture 1184 321 184

ICT 123 44 45

Stone 47 22 17

Tourism 38 12 23

TOTAL 1392 399 269

CROSS CUTTING AND VISITS

USAID Beneficiaries Across Sectors Awarded by PalTrade’s Exporter Award for 2016

During December PalTrade honored a number of USAID beneficiaries of the Compete Project

through awarding them with PalTrade’s Exporter Award for 2016. The winners of the award were

Canaan, ICT beneficiaries ASAL and MTC, Laila Tours, and Funoon for Art of Carved Stone. The

awards are one of the ways PalTrade is working towards building the export capacity of Palestinian

firms and building the brand of Palestinian products and services to an outside audience. The event

was sponsored by his Excellency Dr. Rami Alhamadallah the Prime Minister of the Palestinian

Authority, and the Minister of National Economy Abeer Oda, and Mr. Sufian Sultan the Minister of

Agriculture, the Minister of Tourism Rola Ma’yah, the Chairman of the Board of PalTrade Mr.

Ibrahim Barham, and the CEO of Padico Mr. Samir Huleleh, and a number of representatives of the

Palestinian private sector and exporters.

US Consul General Visits Lychee Farmer supported by USAID through its Compete Project

On the 28th of December, 2016 US Consul General Donald Blome visited a lychee fruit farm which

was established with assistance from USAID through its Compete Project. The farm was supported

as part of an effort to introduce new varieties and value chains through pilot projects. The farm is

located in Jayyous in the northern West Bank and has been successful in its adoption of good

farming practices and introducing a new variety of fruit. The Consul General also visited a

strawberry farmer, Sana Jalamneh, who benefited from the Projects strawberry scalability program

and was a participant in the Agronomist Capacity Building Program were she was exposed to high-

tech strawberry farming as part of the training.


Private Sector-Academia Technology Innovation Program

A training and introductory workshop for PPU professors on National Instruments (NI) software

and hardware took place in November in Amman, Jordan (pictured below). The training provided the

participants, who are set to become the trainers within this program, with knowledge on National

Instruments software and hardware applications. Over the course of the Project, USAID’s Compete

Project has discerned that across sectors, there is consistent, demand for high-quality machinery and

equipment to increase efficiency of production of goods for local and export markets. This training

program will provide local technical universities with the resources and capacity to foster world-

class training and opportunities for rising engineers to learn state-of-the-art tools to address real

world problems.


CHAPTER TWO: KEY ACCOMPLISHMENTS

WEST BANK

AGRIBUSINESS

Demonstration Site for Deir Sharaf TWW Launched

USAID’s Compete Project began implementation with the Municipality of Nablus and Water Users

Association of Deir Sharaf Treated Waste Water project. Purchase orders were signed with the

vendors for irrigation systems [pumps, mainlines, a water reservoir, lateral irrigation pipes], as well as

tree seedlings and fencing. Compete is currently working on establishing a 140 dunum

demonstration site to introduce and adapt the practices of wastewater reuse for irrigated agriculture

in Deir Sharaf and work is underway.

Strawberry Early Harvest and Good Prices for Farmers

USAID through its Compete Project is working to scale-up strawberry production in the West Bank

by replicating the demonstration farm models developed by the Project in early 2015 to introduce

new technologies using hanging and computerized irrigation systems. The systems provided by the

Project are resulting in an earlier season starting in October (as opposed to November last year) for

the 17 participating farmers which will lead to better prices for their produce – 50 shekels per kilo

which is twice the normal market price. Between October and December participating farmers sold

28 tons of strawberries.

Jerashi Packaging Facilities Operational

Jerashi Company completed installation of a pouching

machine – an advanced form of packaging – with Jerashi’s

clients pleased with the new service and products, which

improve the quality, shelf life, and marketability of their

products. The equipment is now operational enabling

Jerashi to produce various packaging solutions and

widening their client base.

Progress of Grapes Program

Following the announcement of the grapes program, the

Compete Project received 799 applications from

interested farmers and companies which represent more

than 2800 dunums of planted vineyards. The Project contracted two agronomists who completed the

capacity building program and tasked them with follow up. By the month of December more than

Thaer, an agronomist who was

trained as part of the Agronomist

Capacity Building Training

Program, later started his own

strawberry farm as part of the

strawberry scalability program.

He has developed 6 dunums and

created 12 jobs for people in the

local community.

Staff at Jerashi Co. go over a new design for

a client within a new facility fitted with

advanced equipment with USAID support.


600 dunums of land were provided with “T” and “Y” hanging systems benefiting more than 190

farmers.

Season Harvest Increase with Introduction of Baby Cucumber Sorting Line

USAID through its Compete Project supported Kufr Dan with a sorting line to wash, grade, pack and

store baby cucumbers supporting the baby cucumber value chain to grow and unleash market

potential. During the 2016 season the farmers sorted and shipped 368 tons of baby cucumbers to

pickling companies.

Haifa Company Officially Begins Production with New Equipment

Haifa Company officially opened its new production line for food produce this week with a

ceremony that was attended by a number of officials including the Minister for Agriculture, the

Mayor of Tubas, the local community and

representatives of USAID’s Compete Project.

The company, located in Akkaba Tubas, primarily

ships Palestinian products such as dates, dried

herbs, and olive oil to the UK and European

markets. The Project’s support includes stainless

steel storage tanks for olive oil, filtration units for

olive oil, semi-automatic filling machines, a PH

testing station, shrink wrapping machines (photo

on the right), vacuum sealing machine, laser

printing/labeling machine, and an automatic

packing machine for dry foods.

ICT

SAP YPP Launch

The USAID Compete Project, in coordination with the Office of the Quartet and Ministry of

Information Technology and Telecommunications (MITT) will be supporting a group of apprentices

to be placed in companies after completing a two month long SAP training. The training of fresh

graduates will take place from the end of November until the end of January 2017. SAP conducted a

rigorous selection process with 18 apprentices identified. Companies who wish to take on

apprentices will be able to apply through the Firm Level Assistance Program and USAID Compete

will support the apprentices for a four month initial period.

SAP Big Data Training in Jordan

During the month of November, SAP training took place in Amman, Jordan which introduced

Palestinian and Jordanian startups on Big Data technology and SAP’s platform named HANA.

Startups will be able to use this application to meet the needs of larger clients who require Big Data

solutions, or the startups may create applications that SAP will the go on to market to their clientele

of more than 350,000 users. The training took place on November 6th, 2016.

eGov MOU Signing with MITT

This quarter an MOU was signed between MITT and USAID through its Compete Project which

seeks to improve “eGov” services to reduce the burden of operational necessities, such as

registrations, for Palestinian companies. Currently, the government relies largely on separate IT

systems and manual operations, lagging behind most of the world using quicker technology-based

systems. In partnership with the Palestinian IT Association (PITA), and in collaboration with the


Office of the Quartet, Compete seeks to develop e-services and encourage policy changes to

improve these resources for Palestinian companies and citizens, leaving more time to focus on

growth. This partnership will result in many benefits such as improving services for Palestinian

citizens, and most importantly developing the ICT sector to develop advanced solutions. By the end

of the quarter a manager was hired by the Project to lead the eGov activities from within the

Ministry and RFP’s are under development.

USAID Supported EXPOTECH 2016 and Startup Pavilion

USAID through its Compete Project co-sponsored the EXPOTECH Palestine Technology Week

2016 - a major one week-long event held annually - which exposes the Palestinian ICT sector and

provides a platform for discussing state of the art technological trends locally and globally. USAID’s

support encouraged the platform to dedicate floor space to startups and companies with the

creation of a startup pavilion. The conference featured more than 50 entrepreneurs from the West

Bank and Gaza, as well as 20 start-ups, as exhibitors.

STONE & MARBLE

Training for PPU Professors with National Instruments (Cross-cutting with ICT)

Following signing an agreement with National Instruments (NI) a workshop took place in Amman -

Jordan for PPU professors on National Instruments software and hardware with a weeklong training

session. USAID’s Compete Project entered a partnership with National Instruments (NI) - a US-

based firm developing automated test equipment and virtual instrumentation software - to fill this

gap and build the capacity of local universities around machine design and manufacturing to improve

the competitiveness of value chains of key sectors on the Compete Project. The Project identified

Palestine Polytechnic University (PPU) in Hebron as its academic partner for this project.

Grant Signing with Company for Jenin Company

USAID through its Compete Project signed a grant with Tala Assaf to cost-share the procurement

of an antique production machine which will use excess stone waste from quarries. This intervention

is intended to increase the company’s production capacity, add new products, and assist them to

expand into the local and Israeli markets.

Verona Attends Marmomacc Trade Show in Italy

USAD through its Compete Project supported Verona Company in its participation at the

Marmomacc trade show in Italy, one of the leading global events for the natural stone industry.

TOURISM

Signing LOA with Diamond Hotel for an Hotel Management System

In November the Compete Project signed an LOA with Diamond Hotel to support their installation

of an HMS system. USAID support is expected to help Diamond hotel to increase their reservations

and revenue per available rooms, streamline hotel management from reservations to maintenance,

and enhance their operations.

Rehabilitating Urban Sites and Upgrading Tourism Infrastructure

The Compete Project received approvals from USAID to start implementation of three key

renovation works that will help build the full “destination eco-system” for key tourism sites. The

three sites include an information center and handicraft village in Beit Sahour as well as rehabilitation

of Burqin’s historic town center. The Centre for Cultural Heritage Preservation CCHP completed

all designs and in early January contracts will be awarded to vendors to kick off the renovation


works. The renovation works will result in a better experience for visitors and increase numbers of

tourists to this area thus bringing more revenues to local businesses and the community.

GAZA KEY HIGHLIGHT

AGRIBUSINESS Cross Cutting - As part of Compete’s plan to address water challenges affecting the agriculture

sector, a specialized wells project has been designed, whereby solar system will be used to

operate these wells replacing the inconsistent electricity supply and costly fuel. The project will

include up to 40 wells supported by solar systems. Forty-four (44) potential beneficiaries have been

shortlisted to receive support, to date forty-three (43) have been vetted, all visited by Project staff,

and 18 approved. The vendor has been pre-selected and implementation is pending CLA approval

for material and equipment entry to Gaza. Compete designed the Agronomists Capacity

Building Program to assist firms in implementing good agricultural practices, quality management

system and adopting new technologies as well as in having better management and documentation

system. The five agronomists started in August 2016 and their contract will end in January 2017.

Fresh Herbs - As part of the scalability high-value production patterns program, vendors have

been identified to supply 100 dunums of farmed land with agricultural inputs to support the fresh

herbs sub-sector. To date, 15 LOAs have been signed covering 75 dunums; 50 dunums have been

fitted with agricultural inputs and 25 dunums are in the process of being upgraded.

By the end of 2016, farmers who were supported by

USAID through the Compete Project have successfully

shipped 825 kilos of fresh herbs to the US and Russia and

other export markets. It is important to note that this is

the first of many shipments planned for the upcoming

period.

The farmers involved are now growing two new varieties

due to Compete’s intervention – thyme and coriander –

in addition to the remaining components of a full fresh

herbs basket including mint, chives, tarragon and basil.

Vegetables – To enhance post-harvest facilities, five exporters were identified and approved

to establish cold storage facilities to enable export. To date, the Project supported one approved

exporter Husny Shihadeh with two refrigeration units. The capacity of the storage facilities is 1,060

tons. The purchase order was signed with Husny Shihadeh and panels were installed as well as the

refrigerating system. Four other companies have been identified for support with cooling rooms and

have been approved by the FLAP Committee.

In order to introduce new production patterns, a scalability program for the production of

high-value patterns for vegetables using netting was designed and 65 LOAs have been signed with

farmers. To date 234 dunums were installed with netting. Compete’s cost share covers 153 dunums.

The second phase of netting, including 51 farmers approved for the second phase, will commence in

March 2017.


Strawberry Value Chain – Compete intends to strengthen the strawberry sector in Gaza

through introducing new strawberry production patterns for up to 100 dunums of single span high

greenhouses. This project has received interest from 197 farmers of which 93 completed full

applications and submitted to FLAP. By end of Year 5, 85 LOAs were signed with farmers, and eighty

five (85) dunums of greenhouses were installed in Gaza for the farmers receiving support from

Compete which includes netting for shade. In October as a follow on program Compete decided

to assist 28 farmers out of the 85 with plastic roof covers and steel fasteners. The purchase order

was issued in November 2016.

Netting Installed for Strawberry Farms

On the 18th of December nylon netting was installed across strawberry farms as part of work to

increase the quality and scale of strawberry farming in the Gaza strip. The total quantity exported till

28 December, 2016 is 111 Tons (66 tons to West Bank, 23 tons to Russia and 22 ton to the EU).

The exports of strawberries are reaching West Bank, Israeli and outside markets.

The USAID Compete Project intends to strengthen the strawberry sector in Gaza by introducing

high value modes of production through technology, equipment and inputs, providing support to

marketing firms, upgrading post-harvest facilities, introducing new processing facilities, and upgrading

existing farms.

FISHING At Al Bahar onshore fish farm the Project installed aerators improving production quality and an

electricity generator ensuring an uninterrupted power supply – they are also establishing a new

fingerlings hatchery after witnessing the success of Kuhail’s USAID supported fish lab. Compete is

also supporting Al Bahar fish farm in expanding their facilities. In addition, the panel approved an

application from Al Salmi Fish Farm, which specializes in the Tilapia variety of fish, to expand their

production capacity. Fish Fresh sold 350 tons of fish by December with greater quantities of fish

from the expansion pools expected in the coming quarter.

INFORMATION AND COMMUNICATIONS TECHNOLOGY By the end of this reporting period, Compete has received 123 ICT applications for firm level

assistance from Gaza. Thirty-two applications were assessed and 11 approved and signed LOA’s with


companies including Dalata Code, Gaza Gateway, MTC and UnitOne. The Project signed a grant

with Gaza Gateway to conduct capacity building for the institution to enable them to become a

platform for employment in Gaza especially in the areas of outsourcing and localization.

TOURISM In the Gazan tourism sector, the Project received 43 applications with assessments underway. Four

LOAs were signed by the end of October with Roots Hotel, Al Salam Restaurant, Castillo and Level

Up. Following the completion of the institutional assessment conducted for Palestinian Committee

for Hotel, Restaurant and Touristic Services, and based on the results and recommendation,

Compete supported PCHRTS with their website which was finalized as well as the installation of

accounting and membership software. Training on the system is ongoing. The Project completed the

activity through equipping and furnishing their office and customizing the associations’ internal

control manual.

TEXTILE AND GARMENT The Project received eighty-nine (89) applications to date. The Project has so far signed ten (10)

technical LOAs supporting companies with new technology and workforce development. The

Project is also supporting the companies in an advisory capacity to reconnect clients with their

historical markets and support the development of their internal operational environment.

FURNITURE On the institutional level, an assessment of Palestinian Wood Industries Union (WIU) has been

completed. The purpose of this assessment was to obtain baseline information on the unions’

operating environment, identify the strategic and operational challenges facing the union and

eventually enable the Project to determine the type of technical assistance and capacity building

support needed for the unions. Compete will support the WIU in revising the union strategic plans,

governance policies operational plan, monitoring system as well as the accounting system in addition

to hiring one accountant to manage the system.


CHAPTER THREE: SUMMARY OF PROGRESS BY SECTOR

WEST BANK

AGRIBUSINESS

Enhancing Market Access

Firm Level Technical Assistance – USAID through its Compete Project has seen significant

progress due to its new initiative to provide technical assistance to exporting and non-exporting

firms in the agribusiness sector to increase financial, management, and marketing capacity. All firms

undergo an assessment and, if selected, receive targeted support under three components: technical

assistance, provision of equipment and inputs, and workforce development. Other sectors (ICT,

Tourism, Stone and Marble) also follow this process. The Project has received, since September

2015, 1184 applications through FLAP for support in the Agribusiness Sector - of these 321 have

been approved.

As of December 31, 2016, of the 399 applications approved for the Firm Level Assistance Program, 321

have been in the Agribusiness Sector.

Al Forat Company

Al Forat Company was assisted through the adoption of a Quality Management System ISO9001 and

capacity building efforts to meet future growth plans. The Project also assisted in establishing

forward contracts with local and Jordanian companies to provide potatoes and carrots, resulting in a

need for improved equipment to increase production. With the new cooling rooms and packing

houses, high quality produce is being provided to their clients.

Impacts this Quarter Include:

Al Forat signed two new contracts with farmers in the local market to provide 1500 tons of

carrots.

Al Hathnawi

In November Al Hathnawi Company was visited by Consul General Donald Blome and was given a

site tour by Mr. Al Hathnawi on the production facilities which received an upgrade with USAID

support. Al Hathnawi General Trade Company, a seed and spice packing company upgraded their

production facilities with Compete support to stimulate the local market by providing new products:

herb and seed oils. As a result, over 100 local suppliers are benefiting from Al Hathnawi’s need for

large quantities of local produce for raw materials. USAID is also supporting the company to adopt

ISO22000 food safety standards. To date a GAP assessment has been completed and Al Hithnawi

Company has adapted the system with the support of the service provider and is waiting for an

internal and external audit to be conducted towards certification.

Al Hathnawi employees are now able to

produce quality oils from an advanced oil

distillation machine procured by USAID.

Photo Source: snapshot of US Consul

General Video.


Al Zaraoun Al Arab

Al Zaraoun Al Arab produces, packages, and markets dates. The Project supported Al Zaraoun in

adopting GLOBALGAP and FSSC 22000 systems to achieve certification. FSSC 22000 systems are

operational and GLOBALGAP is partially complete. The company is awaiting an external audit to

become certified. The company has also hired an agronomist who graduated from the Agronomist

Program on a full-time basis.

Arabbeh Oils Company

Compete provided Arabbeh Oils Company with an in-kind grant, signed in July 2016, to purchase a

harvesting machine, sieving machine, and gravity separator (also known as a thyme separation

machine). In order to have a full production line, Arrabeh Company purchased a drying machine as

their contribution under this grant and the machine is in transit. Having a full production line will

increase their intake of raw materials from local farmers, improve the quality of products on offer,

and increase production and sales. The company has invested in the construction of a new facility to

house the machines which are expected to be delivered in January 2017.

Daraghmeh Company

Daraghmeh Company is currently involved in the production of fresh herbs within 120 dunums of

green houses, in addition to 300 dunums of open fields planted with vegetables. The company has

expanded their fresh herb production, enabling them to cultivate baby fresh herbs. A grant was

signed in April 2016 with Daraghmeh as part of the Project’s baby herb program (Micro-herbs) to

develop a baby herb farm. The cooling room and packing house were installed during August 2016

and production units, including sowing lines (pictured below), were installed in December 2016.

Haifa Company for Agricultural Marketing

Haifa Company markets Palestinian agricultural

products in more than 13 different countries. Haifa

Company is establishing a 1,500 square meter

packing facility to store and pack different products.

Compete signed an in-kind grant to support Haifa

Company in purchasing various pieces of equipment

necessary for the packing house. The Project’s

support includes stainless steel storage tanks for

olive oil, filtration units for olive oil, semi-automatic filling machines, a PH testing station, shrink

wrapping machines, vacuum sealing machine, laser printing/labeling machine, and an automatic

The Minister of Agriculture and CEO of Haifa

Company Mr. Ziyad Abu Zeid cut a red ribbon

during a ceremony to officially launch the

company’s new production line.

Mohammad Daraghmeh, owner of

Daraghmeh Company, with the newly

installed sowing production unit. The seeder

will enable the company to plant

considerable quantities of micro herbs.


packing machine for dry foods. A generator was installed to ensure the machines remain operational

around the clock. All of the equipment has been delivered and all production lines are operational.

Haifa Company procured, as part of their cost share, stainless steel work-tops, a fork-lift truck,

pump trucks, and air conditioning units.

In December Haifa Company officially opened its new production line for food produce with a

ceremony that was attended by a number of officials including the Minister for Agriculture, the

Mayor of Tubas, the local community and representatives of USAID’s Compete Project.

Kufr Dan Cooperative

Kufr Dan supports irrigation activities and facilitates marketing of pickled cucumbers and baby

cucumbers for its cooperative members. To date a sorting line procured with support by the

Compete Project was delivered and installed to ensure quality standards for export are met. An

agronomist from the Agronomist Capacity Building Training Program is following up with producers

of baby cucumbers to ensure quality, productivity and assist with IPM (Integrated Pest Management).

The Cooperative is now preparing for the next season beginning in February 2017 and they have

received a request from farmers to plant 150 dunums of baby cucumbers with forward contracts.

Jerashi Company

Compete supported Jerashi Company with a grant to start the first flexible packaging factory in the

West Bank using pouching technology. The Jerashi Company installed the new equipment that is

now operational and is enabling them to print on plastic, opening up new business opportunities.

This is the first time such a service is available for local clients. During the past 6 months, Jersahi

Company reached out to Compete’s beneficiaries to network and to offer their services. Al Qasrawi

and Siniora are now among their clients. The company has adapted to ISO22000 systems. An

internal audit has been conducted with the external audit expected to take place in January 2017.


Qitaf Company- Jiftlek

Qitaf cultivates dates which they currently sell to Palestinian,

Israeli, French, and Turkish clients. Qitaf plans to expand their

farming projects to produce more varieties, and reach the British,

South African, and Far East markets. Future plans of procuring,

packing, and marketing seedless grapes will require Qitaf to

acquire GLOBALGAP and FSSC 22000 Food Safety System

Certification. An agronomist was hired from the agronomist

program to support adapting systems. FSSC 22000 is based on ISO

22000 standards and ensures the visibility of food safety

management up and down the supply chain. Compete is supporting

Qitaf to acquire both systems. Based on GLOBALGAP assessment

results, Qitaf is adapting their systems in order to be aligned with

international standards. Qitaf completed both phases of an

external audit in November 2016 and successfully passed –

providing the company with FSSC Certification.

Supporting Facility and Service Upgrades – USAID

through its Compete Project is strengthening targeted export

ready and non-export ready subsectors by assisting with resource upgrades on a cost-share basis

that would otherwise limit the sector’s ability to grow.

Top Field

During the base period, Top Field Company was assisted in establishing forward contracts with local

and Jordanian companies to provide potatoes and carrots, resulting in a need for improved

equipment to maintain supplies. To supplement this, USAID through its Compete Project assisted

Top Field in installing a new cooling room to ensure high quality produce will be provided to their

clients. An indirect impact of the work of USAID’s Compete Project is that the Company recently

expanded to a new location, and through creating a new company (Al Bqaia Company) was able to

expand the area for cultivation for export crops by 157.5 dunums and increased the area under new

technology by 2250 dunums.


Top Field increased the area under new technology by 310 dunums

Their new company “Al Bqaia” increased area under new technology by 2250 dunums and area

under cultivation for export crops by 157.5 dunums.

Mu’ta Mills Company:

Mu’ta Mills Trading Company, established in 2012 in Kufr Jamal, Qalqily, primarily produces dried

thyme. The products were prepared and packaged using outdated and simple means. Previously in

the West Bank, thyme was produced, dried, and removed from the stems locally, and then exported

to Jordan where it was mixed with additional spices producing the final product – za’atar. This final

value-added product was then sold in Jordan and exported to the Gulf.

USAID through its Compete Project delivered and installed a new packaging machine to Mu’ta Mills

to improve the product quality and their packaging capabilities through the introduction of this new

technology. The packing line is currently operational. The grant which includes a thyme packaging

line will enable the company, as well as other thyme producers, to produce high quality finished

products, in appealing and modern packaging, to access new export markets and to export full

A screenshot of the certificate

represented to Qitaf Company

for meeting ISO 22000

standards in December 2016.


za’atar to Jordan and the Gulf. There is a za’atar market shortage due to lost supply from Syria,

following the onset of the 2012 civil war, providing a good opportunity for Palestinian companies to

expand exports.


Mu’ta Mills introduced ten (10) products.

Mu’ta Mills accessed one new market: Kuwait.

Strengthening High Value-Added Products, Services, & Technologies

Launching Pilot Projects – Compete is assisting high value-added subsectors in launching pilot

programs with new technology and/or new crops to increase productivity and meet market

demands. The Project had previously scaled up the strawberry sub-sector and more recently, based

on assessment results had launched two programs to scale up the baby cucumber subsector and the

grapes subsector. For updates regarding the baby herb pilot production, see update above under

FLAP – Daraghmeh.

Baby Cucumber Subsector

USAID is supporting farmers and aggregators across the baby cucumber value chain. Having assisted

Kufr Dan Cooperative in developing post-harvest facilities for sorting and storing, the capacity to

take on more produce from farmers is now higher. The Project announced the scalability program,

and the Project supported 78 farmers in two phases and installed netting across 120 dunums. The

roof insect netting that replaces the plastic cover will increase the productivity by one ton per

dunum. The farmers produced a total of 368 tons between August and September. During this

quarter farmers began preparation for the next season.

Currently, the Compete Project is considering working with farmers in Tulkarem, Qalqilya and the

Jordan Valley to create three new clusters of baby cucumbers for selling as fresh produce as well as

pickling. The clusters may be supported through a cooperative with a sorting and packing line.

Together the three clusters could add up to 220 dunums of land cultivated for baby cucumber

production. The farmers who applied to Compete support had witnessed the success of Kufr Dan

and wish to replicate this model.

Grape Subsector

Compete is looking into the feasibility of introducing seedless grape value chains, and introducing

high value production patterns in the Southern West Bank. Towards this aim, the Project designed

and developed a program to enhance and support the grape value chain in the West Bank centered

on the Hebron and Bethlehem governorates. The program seeks to address some of the key

challenges along the grape value chain. Five of these challenges will be addressed in this program;

lack of seedless varieties, low quality and lack of high value production patterns, weak processing

facilities, market access and limited international brand awareness.

By the end of December 799 applications to the program were received. Site visits were conducted

to a majority of farmers and 197 were approved. By December more than 600 dunums of land were

provided with “T” and “Y” hanging systems benefiting more than 190 farmers for “T” systems and 8

farmers for “Y” systems. The irrigation systems and hanging systems for seedless varieties are

expected to be delivered to farmers in January and February of 2017.


Increased area under new technology by 540 dunums.


Adel Abu Rayyan, a farmer from Halhul -

Hebron, has received T hanging systems,

allowing the farmer to strengthen the vines

bringing his land to life.

Strawberry Scalability Program – USAID through its Compete Project is assisting the

strawberry subsector in increasing productivity, improving strawberry quality, and meeting export

standards. During early 2014, strawberry farmers worked on a cost share basis to upgrade their

infrastructure and received training to support the upgrades, enabling increased production rates,

improved quality, and an earlier harvest season this year. USAID through its Compete Project is

working to scale-up strawberry production in the West Bank by replicating the demonstration farm

models developed by the Project in early 2015 to introduce new technologies using hanging and

computerized irrigation systems. Compete is sharing its findings publicly and presenting a business

opportunity for West Bank farmers and investors.

By the end of December seventeen farmers from Jenin, Tulkarem and Tubas had joined the Projects’

Strawberry Scalability Program bringing the total area of land under the production of high quality

strawberries to 64 dunums – 28 tons of strawberries were sold by the end of the quarter.

Participating farmers in Jenin and Tulkarem, have received computerized irrigation systems and other

related agriculture inputs, including PVC gutters, polystyrene containers, and soil. It is worth

mentioning that one farmer, who joined the program in May, Sana Jalamneh, is a graduate of the

Projects’ Agronomist Capacity Building Program through which her interest in strawberry farming

took hold. In November the Consul General Donald Blome visited Sana and was impressed with her

achievements.

A screenshot from a

short film produced by

the US Consul General

where the Consul

General Donald Blome

and representatives

from USAID and the

Compete Project visited

Sana Jalamneh, an

agronomist and

strawberry farmer.


Supporting Enablers and Service Providers to Address Impediments

Adopting International Standards – USAID supports the implementation of practices and

packaging based on international standards to improve company’s ability to penetrate global markets.

Abu Rub Nursery

USAID through its Compete Project supported Abu Rub in attaining GLOBALGAP certification

making Abu Rub Nursery the first Palestinian nursery to be certified by GLOBALGAP. In Year 5

with coordination by the Projects’ Tourism and Agriculture sectors, Ata Abu Rub assisted farmers in

Battir in solving impediments to farming their renowned eggplants, by supplying them with grafts of

eggplants free of charge. The results of this action were very successful with farmers reporting that

the grafted eggplant plants were able to withstand soil borne diseases and better yields were

achieved. The farmers are looking into receiving grafts from Abu Rub once more.

Qitaf Company

Qitaf was able to achieve FSSC certification this quarter. For more details please review the

company profile under the FLAP section above.


Qitaf accessed two new markets: Brazil and Italy.

Introducing New Water Sources / Enhancing Access to Quality Water – USAID is

pursuing treated waste water (TWW), a previously untapped resource in the West Bank, as a

solution to water shortages which is the largest impediment for agricultural production. Reuse of

TWW is one of the few feasible means of increasing water resources and offers significant

opportunity to introduce new crops for export. Compete has been working closely with the

Ministry of Agriculture (MOA) to address the challenge of access to quality water for agricultural

irrigation; particularly in Area C.

Deir Sharaf Demonstration / Pilot Project

Compete is currently working on establishing a 135 dunum demonstration site to introduce and

adapt the practices of wastewater reuse for irrigated agriculture in Deir Sharaf. Twenty-five farmers

from Deir Sharaf were identified and vetted to participate in a pilot project utilizing a combined 135

dunums of land – all 25 farmers signed agreements with the farmers’ cooperative. In November

USAID’s Compete Project began implementation with the Municipality of Nablus and Water Users

Association of Deir Sharaf. Purchase orders were accordingly signed with the vendors for irrigation

systems [pumps, mainlines, a water reservoir, lateral irrigation pipes], as well as tree seedlings and

fencing. By end of December 20% of work on the pumping stations and irrigation was completed

and land preparation started with ploughing.

Tapping Unused Water Resources – USAID through its Compete Project is beginning to

work sector-wide with stakeholders, local authorities, and key actors to help them access and

maximize the use of current water resources. This will increase irrigation to improve both the

quality and quantity of agricultural products, transforming the Palestinian agribusiness sector into a

globally competitive industry. The Project will identify underutilized wells and transfer excess water

to nearby areas including Area C, mainly in Tammoun.

Tammoun Project

The Tammoun Project aims to transfer water from wells located in Ras Elfaraa and Al Nasarieh to

the Al Baqea’ah plain to irrigate 4,500 dunums. Following the favorable results of the assessment


report conducted in earlier stages, the preliminary designs were completed and submitted to CLA

for necessary approvals. The Project is awaiting feedback from the CLA on the preliminary design

and the Project is following up to expedite the approval process.

Lessons Learned

The Project found that the sterilization and fumigation of dates were not to the standard necessary

for food processing. The industry needs further sterilization equipment and procedures to be able to

produce quality products such as chocolate dates and date paste.

Key Issues for upcoming period

Training for Abu Naja divers is pending Israeli permit for the entire offshore fish farm.

Planned Programs and Events for the Following Quarter

Expansion of new baby cucumber clusters.

Implementation of grape sector program.

Start work with grape sector in the Northern West Bank.

Procurement of solar systems for up to 40 wells in Gaza.


ICT


Firm Level Technical Assistance Program

By December 31, 2016, of the 399 applications approved for the Firm Level Assistance Program, 44 have

been in the ICT Sector.

Blue Company for Technology and Development

Blue Company for Technology & Development was founded in 2007 and provides website

development services in the local market. The company created an application called Marsad that

monitors advertising campaigns for media companies to make sure they are adhering to contractual

obligations. Compete and Blue hired a qualified consultancy firm to conduct market research for the

UAE market for the online media monitoring tool product. After the successful completion of the

market research, Blue hired a qualified consultancy firm to develop a business plan for the company’s

intervention in the UAE. Compete’s assistance facilitated expansion in international markets for Blue

and increased the company's profitability. By providing targeted technical assistance to allow Blue

Company for Technology & Development to enter select international markets, USAID through its

Compete Project is assisting in the ICT Sector’s growth and is leveraging more international

exposure for Palestinian IT talent. The report on the Gulf market was finalized and the activity

completed in December 2016.

Synergy

Synergy is a new startup software company formed in late 2015, focusing on developing Enterprise

Resource Planning (ERP) solutions based on the SAP Technology and Software development for

specific IBM platforms in workflow management. The company is investing in developing the skills of

their employees in order to be ready for regional expansion. Under the supervision of SAP, Synergy

formed a partnership with a larger SAP partner in Jordan, ABS systems, to help the company obtain

highly technical resources for project implementation, based on commercial terms. Synergy

recruited 7 apprentices who completed the SAP training program with the support of Compete. A

final payment was provided to Synergy to close out this activity. In Q1 of FY6 Synergy re-applied to

the Firm Level Assistance Program for assistance in pursuing more work with SAP. In addition the

company is now working with a large dairy company providing them with solutions through SAP

technology.


Synergy created one new product “Van Sales Application”.

Fostering Strategies to Improve Human Resources and Services

Developing New Sector Services – USAID through its Compete Project is developing new

value chains in the market capacity to introduce services and tap the highly-skilled ICT workforce within the Palestinian software sector.

eGovernment to Improve Business Services

During Q1 of FY6 an MOU was signed between MITT and USAID through its Compete Project

which seeks to improve “eGov” services to reduce the burden of operational necessities, such as

registrations, for Palestinian companies. Currently, the government relies largely on separate IT

systems and manual operations, lagging behind most of the world using quicker technology-based


systems. In partnership with the Palestinian IT Association (PITA), and in collaboration with the

Office of the Quartet, Compete seeks to develop e-services and encourage policy changes to

improve these resources for Palestinian companies and citizens, leaving more time to focus on

growth. This partnership will result in many benefits such as improving services for Palestinian

citizens, and most importantly developing the ICT sector to develop advanced solutions. The

Palestinian government endorsed the commencement of these 10 online public services as part of its

efforts to shift to e-Government services.

An assessment and business analysis was completed for ten e-services to determine the best

business model. A position paper was developed and presented to the council of Ministers. Compete

hired a firm to produce RFP’s for the e-government services which have been completed and are

under review by the core team in the Ministry. The Compete Project also hired a Project Manager

to lead the initiative from within the Ministry (MTIT).

Supporting Enablers and Service Providers to Address Impediments

Palestinian Internship Program (PIP)

PIP endeavors to address market failures related to Palestinian workforce development and high-

tech employment by providing high-level internships for young graduates at start-up and

multinational companies based in Israel. The idea that underscores the program is that by providing

these internships to young Palestinian professionals, PIP can provide a framework that helps keep

Palestinian techies in the field and gain crucial professional skills by exposing them to a highly

developed high-tech economy. In other words, PIP seeks to help young professionals “leapfrog” the

Mr. Said Abu Hijleh, COP - USAID Compete Project, signing a MOU with Dr. Alam Musa, Minister of

MTIT.


current state of the Palestinian high-tech economy and to instill in them the know-how they will

need to grow Palestinian companies.

To date PIP concluded four cycles of internships. The success of the program is dependent on solid

relationships within both the Palestinian and Israeli hi-tech and startup communities, effective

marketing of the value proposition for Israeli companies to take on an intern, and data-driven

identification of key skills required to succeed in the hi-tech ecosystem matched with willing hosts.

SAP Big Data Training

SAP training took place in Amman, Jordan which introduced Palestinian and Jordanian startups on Big

Data technology and SAP’s platform named HANA. Startups will be able to use this application to

meet the needs of larger clients who require Big Data solutions, or the startups may create

applications that SAP will the go on to market to their clientele of more than 350,000 users. The

training (pictured below) took place on November 6th, 2016.

SAP Launches YPP Apprenticeship Program

The USAID Compete Project, in coordination with the Office of the Quartet and Ministry of

Information Technology and Telecommunications (MITT) will be supporting a group of apprentices

to be placed in companies after completing a two month long SAP training. The training of fresh

graduates will take place from the end of November until the end of January 2017. SAP conducted a

rigorous selection process with 18 apprentices identified. Companies who wish to take on

apprentices will be able to apply through the Firm Level Assistance Program and USAID’s Compete

Project will support the apprentices for a four month initial period.

USAID Support to EXPOTECH 2016 and Startup Pavilion

USAID through its Compete Project co-sponsored the EXPOTECH Palestine Technology Week

2016 - a major one week-long event held annually in the West Bank and Gaza – which exposes the

Palestinian ICT sector and provides a platform for discussing state of the art technological trends


locally and globally. USAID’s support encouraged the exhibition in Ramallah to create a startup

pavilion and dedicate floor space to startups and companies. EXPOTECH 2016 focused on

supporting start-up firms in the West Bank and Gaza in particular which are developing outsourcing

software services and products, and finding ways to link them with the resources, investment, talent,

and markets needed to make their businesses a success. Compete beneficiaries contributing to the

event range from individual firms to associations. Other participants included PICTI, IBDAA, Centers

of Excellence, and various investment funds. The conference featured more than 50 entrepreneurs

and businesses from the West Bank and Gaza, as well as 20 startups, as exhibitors, for which

Compete’s assistance covered the cost of their participation in terms of rent and booth construction

to incentivize their participation.

Creating a Technical Transfer Company IBDAA (Component B) - USAID through its

Compete Project is bridging a gap between academia and the private ICT sector through the

establishment of a new tech transfer company. Compete has partnered with four local universities to

create the first technical transfer company (IBDAA) to promote research and development activities

between the private sector and academia to help solve market failures and spur innovation among

Palestinian youth. The four universities leading this initiative are, The Arab American University

(AAUJ), Najah National University (ANU), Polytechnic University (PPU), and Al-Quds University.

The four universities established and registered IBDAA as a company to run and manage a program

that supports innovative project ideas that offer creative solutions to industrial problems and that

capture market opportunities. IBDAA submitted their final deliverables and report and the activity

will close out.


Five new startups were registered and established “At7efna, Qumra, TTS, Story Light, Anja7”.

A Compete staff member speaks on the issue of mobility and smart devices at the EXPOTECH 2016

conference.


At7efna: a social networking system (website and mobile app) that provides an environment for

talented people in the Middle East to show and share their talents in a free, easy way with their

peers.

Qumra: a startup that offers the first photographer’s guide in Palestine, which will provide job

opportunities for interested amateurs. Qumra will provide a tool for photographers with special

features including secure access, high resolution, many filters, etc.

TTS: a startup company that aims to provide IT solutions for business problems, its

concentration is on delivering software products that help businesses operate in a more

functional manner.

Story Light: a startup that provides an attractive application that allows educational organizations, individuals and companies to turn their ideas into visual stories, commercial ads or

instructional tools.

Anja7: a startup company with a focus on web based applications geared at helping our clients in

the educational sectors to achieve their goals.

Lessons Learned

Through IBDAA the difficulty for recent graduates to create new projects that can reach a level of

development to attract investment, became evident. Each project requires adequate time and

mentorship to fully commit to the timeline of development necessary for startups to receive seed

funding.


FLAP applications processing.

Implementation of eGov initiative.

SAP YPP Apprenticeship Program

NIMD: Non-invasive medical devices support through FLAP

Tel-Aviv Chamber of Commerce Training


STONE AND MARBLE


Firm Level Assistance Program


been in the Stone and Marble Sector.

Abu Kamil Automatic Block Factory

Please refer to the update on the company under Sludge New Products and Facilities section.

Al-Haramein Company

Al-Haramein is a stone producer located in Hebron’s Industrial Zone specializing in stone slabs and

building stone. Currently they sell to Israeli and Jordanian markets and are looking to expand into

the Gulf market. One of their main challenges is the high cost of electricity. The Project is

supporting investment in solar equipment after an assessment found that it is a viable option for this

company. The assessment provided detailed engineering specifications for the project. In the

upcoming year Compete will support the installation of a solar system as a pilot project, a first in the

Palestinian stone sector. To date bids have been received from vendors for the solar system. An

internal evaluation of bids and a technical meeting with a solar consultant was conducted. EDF

procedures have been completed. A meeting took place during December to go over the bids that

came in for the solar panel and meet with service providers. Approvals were received to move

forward and a meeting occurred with a tentative service provider to go over the implementation

plan and costs.

Al Omraniyeh Group Company for Jerusalem Stone

Previous support to Al Omraniyeh included supporting their participation at trade shows. The

Project is supporting the company with ISO9001 adaptation of the forms and procedures. Training

has been completed and the company should be ready for an internal and external audit towards

accreditation during January 2017. Project support also included developing a comprehensive

product data sheet.

Antique Stone

Antique Stone is a small specialty production facility established in 2014 in Jenin. The company

transforms stone waste into viable products using outdated equipment. The majority of the annual

production, 4000 cubic meters, is sold to Israel (85%) and the remaining produce to the local

market. Compete supported Antique Stone Company through an in-kind grant under a cost-share

scheme to procure new equipment that will transform stone pieces into aged antique stone in a

variety of colors and patterns. The company will be upgrading their outdated equipment and

renovating the whole production facility. USAID’s Compete Project started the procurement

process, has ensured the project is environmentally sound, and expects that the machine will be

delivered and installed in early 2017.

Creative Business Solutions

Compete is supporting Creative Business Solutions (CBS) with an in-kind grant that will support the

company to create new products using stone waste. The company plans to produce artificial interior

decorative stone, light weight concrete and exterior decorative stone. In order to achieve this, the

company requires updated machinery and technology, which they will place in a new facility they are


establishing to produce these products. From an environmental perspective, CBS’s project is

considered a game changer in the industry and a pilot for other companies within the industry to

replicate. The grant is expected to increase employment, sales and the number of new products

using stone waste. Compete started the procurement process, and an Environmental

Documentation Form (EDF) was sent for USAID approval.

Ejada Company

The case for Ejada was presented to the Project’s review panel as part of an intervention to expand

and research the development of products made from sludge and other stone waste. Their case was

approved to support new product development using stone waste, including creating tiles and

decorative items. Towards this goal, the Projects’ procurement team contacted SISTROM Company

in Russia to discuss the provision of tile molds and training support to Ejada; an invitation letter from

the company was received and the beneficiary has been vetted as an individual. The training will

include use of technology in using stone waste in different forms including decorative work. The

procurement process is ongoing and the shipment is in transit with expected delivery in early

January 2017.

The container with new machines for Ejada Company is in transit.

Sharabati Modern Company

Sharabati Company produces slabs, outdoor tiles, indoor tiles, and cut-to-size building stone. USAID

through the Compete Project will provide technical assistance through supporting a new Materials

Management, Image, and Bar Coding System for the company. The barcode system, manual and

visual optimizer detecting system was ordered from a supplier. The shipment and installation of the

system is expected to take place next quarter.

Techno Funoon

The Project’s firm level review panel approved Techno Funoon’s application for support wherein

USAID through its Compete Project will provide technical assistance for the installation of a high-

tech laser printing machine, as well as a water recycling system for capturing the water released

during the production of carved stone in order to contain, filter, and utilize it for production reuse.

In addition, Techno Funoon will abide by environmentally friendly practices. Techno Funoon is


working towards the introduction of new products and sub-sectors by introducing laser printing and

etching on stone, glass and marble, a first for the Palestinian stone sector. Compete also signed a

grant with them and the site is in the process of being prepared to house the production area. At

more than $2 million, this will be one of the largest investments in the stone sector as a result of

USAID support. The new site expanding their production facilities from 1800 to 3600 square meters

is expected for completion by March 2017.

Verona Marble and Industrial Investments Company

Compete had recently supported the Company with a study on the Russian market in addition to an

online study for the Canadian market this quarter. Verona may be expanding and purchasing new

market studies. Moreover, the Project is supporting marketing activities that include the

development of a new logo and a high-end website. Currently Verona Marble Company is working

with the service provider to finalize the company’s new logo and finalize work on the new website.


Sludge New Products and Facilities – USAID through its Compete Project is addressing the

issue of stone waste by supporting the gradual transformation of the industry towards the use of

creative business solutions for ‘dry sludge’ and ‘liquid sludge’ - thereby creating commercially viable

new products and creating positive practices that address environmental issues. Creating

environmentally conscious and competitive new products will lead to business opportunities that

could be targeted in the local and international market. USAID through its Compete is working with

Abu Kamil Automatic Block Factory which will be producing a unique product - lightweight foam

based concrete blocks - using liquid slurry produced during the stone cutting process.

In the first phase of establishing a new product Abu Kamil used a pilot production line to create

initial samples, which met local specification requirements with successful tests (that match imported

products). For the second phase the Project presented in December 2016 the business case towards

supporting the investment of a complete production line to produce the new product at scale.

In addition USAID through its Compete Project will support Ejada Company to produce tiles from

stone waste, with the procurement of special molds for tiles – the equipment is in transit from

Russia (see FLAP update above). USAID’s assistance will have a remarkable impact on the factory as

well as other small and medium stone producers in the West Bank.

Lessons Learned

The use and applications of solar energy are receiving interest throughout the sector, as detailed by

our client Al Haramein. The Project will continue to carefully monitor development, and look into

ways to showcase its strategy. Through FLAP direct assistance to companies, USAID Compete is

receiving strong interest for new interventions, such as the introduction of new technology and

producing new products from stone waste.

Planned Programs for the Following Quarter

Follow up with implementation of National Instruments Program.

FLAP cases.

Sludge and waste solutions.


TOURISM


Firm Level Assistance Program


been approved in the Tourism Sector.

Diamond Hotel

A privately owned hotel located in Bethlehem seeking 4 star ranking and expected to open its doors

in August this year. The hotel has 94 rooms, 2 halls and one restaurant, 4 employees and is currently

recruiting full staff. Diamond Hotel applied for USAID support to install a hotel management

software system, and the FLAP committee approved their application to install the software which

will help them control the hotel operations, take fast decisions especially during the peak season, and

provide accurate reporting, including drill down data and sources. USAID support is expected to

help Diamond hotel to increase their reservations and revenue per available rooms, streamline hotel

management from reservations to maintenance, and enhance their operations. An LOA was signed in

November and the installation of the system and training underway with an anticipated completion

date in January 2017.

JTT

JTT is a private ownership company, established in 2003, operating in inbound tourism and ticketing

and is focused on pilgrimage market targeting the EU market. The company has 10 full time

employees, and brings 14,000 inbound pilgrims a year, with a maximum capacity to bring 25,000/year

JTT applied for USAID support to develop a new website and promotional materials to serve the

Company’s existing and potential clients. The FLAP committee approved their application on cost

share basis and will support them in their new logo development and in designing their brochure and

high end website to enhance the company’s digital presence, provide price offers based on the

selected tours, calculate the tours cost, offer online and payment solution to be fully integrated with

the currently operating management software. Based on a request by the beneficiary to resubmit to

bidders and affirm their ability to integrate the new system with JTT’s current operating system. The

procurement process was underway in November with requisition and evaluation of bids – ready to

award in January 2017.

Laila Tours and Travel

Laila Tours have been providing quality tours and pilgrimages to the Holy Land, Jordan, and Egypt

since 2006, and also provide outbound ticketing services for residents and visitors to the Holy Land.

USAID Compete is supporting Laila Tours by deploying new systems to manage and improve their

financial capacities and sales plans. The Project recently approved a third round of assistance, this

time focusing on supporting website development to enable online payment and booking solutions.

Procurement for the website development has been finalized and the service provider selected.

Work on the website is half complete with completion expected next quarter.



Rehabilitating Urban Sites and Upgrading Tourism Infrastructure - Working to build the

full “destination eco-system” for key tourism sites in the West Bank, Compete has improved several

tourism sites and trails including urban rehabilitation works in important historical locations in

Bethlehem, Burqin, Bethany, Battir, Beit Sahour, and Jericho.

The current rehabilitation program includes 4 areas, Burqin, Battir, Beit Sahour and Hebron.

Compete signed a contract with the Centre for Cultural Heritage Preservation (CCHP) to develop

the designs for building restoration and the urban rehabilitation projects in Battir, Bait Sahour,

Burqin, and Hebron. CCHP completed all the designs for the implementation phase, six companies

were shortlisted and the qualifying companies will implement renovation works. Procurement

documents were prepared and RFPs issued, and proposals submitted for the rehabilitation of Burqin

Historic Center, and the restoration of two historic buildings in Beit Sahour that will be used as a

handicraft village, and an Information Center. The Compete Project and CCHP are currently

addressing a request by USAID for an engineering review for all designs. This quarter all needed

approvals were secured and contracts will be awarded for these three interventions to start the

implementation.

The three sites include an information center and handicraft village in Beit Sahour as well as

rehabilitation of Burqin’s historic town center. The Centre for Cultural Heritage Preservation

CCHP completed all designs and in early January contracts will be awarded to vendors to kick off

the renovation works. The renovation works will result in a better experience for visitors and

A view of Beit Sahour’s old city streets – the location where two of the rehabilitation works will be carried

out.


increase numbers of tourists to this area thus bringing more revenues to local businesses and the

community.

Impact from Site Renovation Interventions

Location Indicato

r

FY5Q1 FY5Q2 FY5/Q3 FY5/Q4 FY6/Q1

Burqin Church Visitors 250 visitors 1,399 800 730 750

Bethlehem Public

Toilets

Visitors 960 750 NA NA NA

Bethlehem Gallery Visitors 1,232 729 NA NA NA

Hishams Palace Multiple 2,235 2,906 3315 visitors, 19,204

NIS revenues

1,639 visitors

12,721 NIS

NA

Al Karmeh

Restaurant

Multiple 11 events,

750

customers

7 events, 200

customers

NA NA NA

Beit Sahour Parking Multiple 163,100

visitors,

97,860 NIS

revenues

7,200 visitors,

70,663 NIS

revenues

NA 4,300

Visitors

49,974 NIS revenues

6000 visitors

107,640 NIS

Jarrar Palace Multiple NA NA 416 visitors, 2630 NIS

revenues

344 visitors. 1400

NIS.

NA

Battir Restaurant Multiple NA NA Opened in April 15th,

2016. 50-200 client/day

and 2500 NIS/ monthly

1200 visitors NA

Develop/ upgrade a commercialized tourist infrastructure Tourism – USAID through its

Compete Project is working to develop commercial visitor infrastructure. The Project supported

Bethlehem Municipality with the procurement of a large tent that would cover Manger Square and

allow them to organize events any time of year and under any kind of weather. The handover of the

tent will take place in January 2017. It is expected that this activity will strengthen the tourism

economy of Bethlehem and encourage more participation in their organized events by providing the

Municipality with the tools to facilitate and support their event management.


Renovation work in Beit Sahour kick off and prep of RFPs for Battir sites.

Process West Bank and Gaza FLAP tourism applications.

Sign LOAs for approved applications in Gaza and West Bank.

Close out remaining ongoing activities by end of next quarter.


ALL SECTORS

Cross Cutting

Palestinian Construction Guide

The company provides services to the construction sector in general and is identifying the Stone and

Marble industry as one of the major target sectors for their services. Some of these services include

connecting companies with clients, advertising, and business service support through a website and

online services. The Project is supporting the company through the ICT and Stone and Marble

Sector, and has approved support to upgrade their website so that they will be better equipped to

provide essential services to subscribed companies. In addition, marketing personnel will be hired

through this intervention. Work on the advanced website is ongoing.

Private Sector-Academia Technology Innovation Program

A training and introductory workshop for PPU professors on NI software and hardware took place

in November in Amman, Jordan. The training provided the participants, who are set to become the

trainers within this program, with knowledge on National Instruments software and hardware

applications. Over the course of the Project, USAID’s Compete Project has discerned that across

sectors, there is consistent, demand for high-quality machinery and equipment to increase efficiency

of production of goods for local and export markets. Local technical universities do not yet have the

resources or capacity to foster world-class training and opportunities for rising engineers to learn

state-of-the-art tools to address real world problems. The private sector typically turns to

international imports for new and innovative equipment to address efficiency challenges across the

production value chain, and for the replacement of trademarked spare parts for this equipment, at

high cost.

Professors and lecturers from Palestine Polytechnic University are photographed

during a training session on National Instruments technology in Amman-Jordan.


USAID’s Compete Project entered a partnership with National Instruments (NI) - a US-based firm

developing automated test equipment and virtual instrumentation software - to fill this gap and build

the capacity of local universities around machine design and manufacturing to improve the

competitiveness of value chains of key sectors on the Compete Project. The Project identified

Palestine Polytechnic University (PPU) in Hebron as its academic partner for this project. While NI

has agreed to provide technical training, mentoring and certifications, Compete will fund and

facilitate the full operation through the lifetime of the extended Project. Key sectors that could

benefit include agriculture, tourism, information and communications technology (ICT), stone and

marble, food processing, and machine producers. Additional consideration will be made for the

development of a maker’s or fabrication lab in partnership with local universities, to achieve the

same goal of workforce development to sustainably address local industry challenges. Equipment,

software and tools have been ordered to support the lab.

Private Sector Investment Leveraged – Since the beginning of the Compete Project, the

M&E team has captured the value of capital investments from our partners leveraged as a cost share

from Project activities. In the first quarter of the sixth year of the Project, the private sector has

invested US $4,506,170.91 with the following sector contributions:

Agriculture: $3,365,454.00

ICT: $67,172.00

Tourism: $6,700.00

Stone & Marble: $391,644.91

Fishing Gaza: $496,000.00

Garment Gaza: $179,200.00

Total Leveraged in Year 6: $4,806,670.91

Total Leveraged over life of the Project: $85,619,919

Note on ICT Investment: It is worth mentioning that in the case of service companies, and in particular

outsourcing companies, these companies invest in talent and skills in order to make each employee a

"production unit" or a revenue generating unit. The value of these companies stem from the overall knowledge

and experience the company gains from developing these resources. Intangible assets are hard to estimate; the

private sector investment leveraged under the ICT sector includes employees in mergers and acquisitions as

well as employee value added per company. The formula in this regard is to multiply new jobs created under

the ICT sector by $40,000 and for startups by $16,000.


GAZA

The aim of USAID’s support in Gaza, through its Compete Project, is for the Palestinian private

sector to strengthen its competitiveness and expand into new markets locally, regionally, and

internationally in key sectors essential to the future prosperity of the Gazan economy. Since

September 2015, the Project focused on the design of major transformative initiatives in the

agriculture, fishing, ICT, Garment, Furniture and tourism sectors. Up to date, the Project has made

progress in accelerating the roll out of programming and activities aimed at addressing years of

limited development in an isolated economy. For a comprehensive list of progress to date please

refer to the Gaza Ongoing Activity Report - Annex B.

Firm Level Technical Assistance – USAID through its Compete Project has begun the roll out

of its initiative to provide technical assistance to exporting and non-exporting firms in Gaza to

increase financial, management, and marketing capacity. All firms undergo an assessment and, if

selected, receive targeted support under three components: technical assistance, provision of

equipment and inputs, and workforce development.

The Firm Level Technical Assistance Program in Gaza was officially launched on September 8, 2015.

USAID Compete Project continued to receive and assess new applications under FLAP. To date,

1502 applications were received since the beginning of the Gaza program [September]. The pipeline

is distributed as follows:

Sector Program Approved/ Assessed

Cases Rejected Cases Totals

Ag

FLAP 9 222 358

Strawberry

Greenhouses 85 105 197

Strawberry Plastic

Roofing 28 0 30

Fresh Vegetables 65 138 203

Fresh Herbs 15 0 196

Fresh Vegetables

Extension 51 10 124

Wells Program 13 5 44

Ag Totals 266 480 1152

Fish 5 5 27

Furniture 20 2 82

ICT 10 32 105

Tourism 5 27 43

Garment 20 0 93

Totals 326 546 1502


VISITS AND MEETINGS

October - December 2016

In October 2016, the Procurement Officer visited Gaza to follow up on Gaza procurements and

meet with vendors and beneficiaries. Beneficiaries visited include: Fresh Herbs farmers, Sufyan

Kuhail, Al Bahar Fish Farm, Cooling Room beneficiaries, Fish Fresh Farm, Samir Ali PCRHTS,

In October 2016, the Agriculture Specialist and Agriculture Manager ended their visits to Gaza

where they followed up with strawberry farmers, trained agronomists on fresh herbs and

strawberry production and conducted site visits.

In late November, the Procurement Officer is visited Gaza to follow up on Gaza procurements

and meet with vendors and beneficiaries. He is expected to return in early December.

In November, 3 members of the Gaza office visited Jericho to attend the Year 6 work planning

retreat.

In November, Basel Abu Daka traveled from the Gaza office to Israel to attend two 3 day

training workshops - one on water salinity and the other on Treated Waste Water practices.

In December, the Agriculture Specialist visited Gaza to follow up with the Fresh Herbs Program,

progress with exporters and meeting with agronomists.

AGRIBUSINESS

Cross Cutting Enhance Access to Water and Alternative Energy Sources

As part of the Project’s plan to address water challenges affecting the agriculture sector, a

specialized wells project has been designed to use solar system on 40 wells replacing the

inconsistent electricity and the costly fuel. The Project identified 60 potential beneficiaries with fully-

licensed wells. Forty-three of these have been shortlisted and vetted to receive support.

There are three different systems which are planned:

The CLA has approved the implementation for 8 out of 13 well systems for the 90/70 type by

the end of the year. Field visits have been conducted for 8 wells to validate information and 7

comply with the proposed activity. A vendor has been pre-selected and they will start work

once a grant is signed upon receiving USAID approval on their action memo and EDF.

Ten out of sixteen of the 70/50 pumps variety were approved in October 2016.

CLA approval is pending for the 50/50 system.

This initiative will provide alternative water and energy options to enable 300 farmers working in the

three export sub sectors [strawberry, herbs, and vegetables] to cultivate over 1620 dunums.

The Solar water Pump System will enable farmers to:

Have stable and continuous electricity to operate the wells

Reduce input costs (Fuel/electricity) and thus produce at competitive prices

Have sustainable water for irrigation thus enhancing the quality of produce

Compete in export markets

Enhance Capacity and Skills of Agribusiness Workforce

The Project designed the Agronomists Capacity building Program in Gaza to assist firms in

implementing good agricultural practices, quality management system and adopting new technologies

as well as to adopt better management and documentation systems. Five agronomists were trained

and began work in August of 2016 and their contracts will end in January 2017.

Fresh Herbs

The USAID Compete Project conducted meetings with two Israeli export companies, Arava Export

Growers and Viva Farmers, both showed great interest in buying Gaza herbs production for export.


The estimated demand by the two companies is about 300 dunums [600 tons]. The market research

confirms the growth potential and viability of this value chain and the current 30 dunums of

cultivated land offer high potential for a scalability program to increase the production by at least

100 dunums by the coming seasons. In the first stage, 15 LOAs have been signed covering 75

dunums; 50 dunums have been fitted with agricultural inputs. Forty-four of 50 dunums were planted

with different types of herbs including chives, mint, tarragon and thyme. For the second stage 25

dunums were identified in December 2016 and will receive inputs in January. Six dunums will be

planted in January and 25 dunums in March to meet the exporters schedule.

The farmers supported by USAID through the Compete Project are growing two new varieties –

thyme and coriander – in addition to the remaining components of a full fresh herbs basket including

mint, chives, tarragon and basil. By the end of 2016, farmers who were supported by USAID through

the Compete Project have successfully shipped 825 kilos of fresh herbs to the US and Russia and

other export markets.

Vegetables

Introduce New Production Patterns

The Compete Project aims to support tomato and pepper farmers to export to the Gulf market. In

order to achieve this, the quality of produce must increase. The Compete Project plans to introduce

netting to increase the production period and improve quality and also enhance post-harvest

packing houses and cooling rooms to ensure optimal storage of vegetable products prior to

shipment. For example, farmers need to replace plastic covers of greenhouses with netting, which

will ensure higher yields and better quality due to improved ventilation. The Gulf market is more

lucrative in the summer period, as summer is the off season for the Gulf region. For farmers to be

able to produce in the summer period they need to change their current pattern of production.

To date the Compete Project signed LOAs with 65 farmers covering 234 dunums to join the

vegetable subsector high-value production patterns program. Netting was installed across 234

dunums benefiting 65 farmers so far. Upon the high demand from farmers to expand the program,

on 16 June 2016, Compete announced a second phase with an additional 200 dunums. In response

the Project received 144 new applications, and with interested applicants from the first phase,

making a total of 193 applications. Of these 82 were vetted and compliant covering 288 dunums and


51 farmers were approved by the committee covering 188.6 dunums. The second phase for netting

will commence in March 2017.

Establish Vegetable Industries

Abu Hashish Company-Pickling Company - Compete plans to support Abu Hashish in developing

a new line of packaging processes to enhance the quality of products. The pickle production

processes at the company are very primitive; all processing is carried out manually. The production

is marketed in local market directly to the retailers and groceries in buckets of 20 liter. The total

investment is $296,000. Compete will support this factory with business plan to understand the

feasibility of developing a new production line. The business plan is in the procurement process, the

vendor has been selected and an LOA will be signed in January 2017.

Green Field - Green Field Company has been established in 2012 in Gaza as a food processing

company focusing on potatoes. Green Field produced produced 3 tons of potato chips and planted

15 dunums of red ”industrial” potato in 2013. The planned chip production collapsed due to the

war of 2014. Currently, the company diverted to more lucrative products including fresh and frozen

French fries and frozen strawberries, where 60 tons of French fries and 20 tons of frozen

strawberries were produced and sold only to restaurants. Compete is in the process of conducting a

needs assessment benched marked against HACCP to ensure food safety compliance and determine

the exact needs for upgrading the production facilities. A purchase order was signed during

December 2016 and the assessment is expected to be completed in February 2017.

Enhance Post-harvest

The Project identified and approved working with five export companies that buy from participating

farmers, storing around 8,560 tons. A fifth has withdrawn as they did not comply with USAID

requirements. The cold storage facilities will ensure products collected by participating farmers will

be refrigerated and the cold chain maintained enabling export. Also, recently joining the project is

Yousef Alqedra and Hamdi Al Jerjawi which the Project aims to support through providing each with

a cooling room storing 3,000 tons per facility.

Bawasel Al Wifaq – Compete plans to support Bawasel Al Wifaq Company in providing cooling

facilities, storing around 700 tons. The cold storage facilities will ensure products collected by

participating farmers will be refrigerated and the cold chain maintained enabling export. The

procurement process is ongoing and work will be completed in January 2017.

Hamdi Al Jerjawi – Compete plans to support Hamdi Al Jerjawi Company in providing a cooling

room, storing around 3,000 tons. The cold storage facilities will ensure products collected by

participating farmers will be refrigerated and the cold chain maintained enabling export. The grant

will be signed once finalizing the procurement process.

Husny Shihadeh and Sons Company for General Trading - Husny Shihadeh was provided with a

cooling room which will benefit a large number of farmers in Gaza. The aim of this grant is to assist

Husny Shihadeh Company via purchasing two refrigeration units for their proposed cooling rooms.

Supporting this activity addresses the currently limited access to export markets (especially Israel

and the West Bank) and the widespread lack of cold chain facilities throughout Gaza, thus

strengthening existing high-value agricultural subsectors. The capacity of the cold storage facilities is

1,060 tons. A purchase order was signed with Husny Shihadeh and the panels and refrigeration

system installed and is fully operational.


Mahmoud Hamdan and Partner for Vegetables Trade [Abu Tayem] - Compete plans to

support Abu Tayem Company in providing cooling room, storing around 800 tons. The cold storage

facilities will ensure products collected by participating farmers will be refrigerated and the cold

chain maintained enabling export. A grant was signed and the procurement process is ongoing.

Yousef Alqedra – Compete plans to support Yousef Alqedra Company in providing a cooling room,

storing around 3,000 tons. The cold storage facilities will ensure products collected by participating

farmers will be refrigerated and the cold chain maintained enabling export. The grant will be signed

once finalizing the procurement process.

Strawberry Value Chain

The USAID Compete Project intends to strengthen the strawberry sector in Gaza by introducing

high value modes of production through technology, equipment and inputs, providing support to

marketing firms, upgrading post-harvest facilities, introducing new processing facilities, and upgrading

existing farms. Strawberries can be grown in open fields, single high span greenhouses, or in multi

span greenhouses; last season all the strawberries in Gaza are planted in open fields. The findings of

a financial analysis conducted by Compete have shown that single span high greenhouses are more

cost effective and will produce a greater return over the multi span greenhouse patterns.

Furthermore, the single span high greenhouse patterns allow easy reallocation in case the soil

deteriorates on the plot on which it is installed. Compete has started the implementation phase of

introducing new strawberry production patterns for up to 100 dunums of single span high

greenhouses; this intervention will increase the yield per dunum from two tons (open field) to four

and a half tons (single span high greenhouse).

To date, USAID installed 85 dunums of single span greenhouses. The objective of this intervention is

to transform the sector to become competitive by increasing the yield and enhancing the quality.

Furthermore, the new production patterns will enable crop diversification and overcome the serious

export hurdles faced by the strawberry sector, due to the sensitivity of the crop, at the border

crossings such as delays and cooling chain interruptions. This season over 25 dunums were planted

with strawberry and the remainders were planted with other greenhouse vegetables. In October as

a follow on program Compete decided to assist 28 farmers out of the 85 with plastic roof covers

and steel fasteners which were installed across strawberry farms in December as part of work to

increase the quality and scale of strawberry farming in the Gaza strip.

Computerized Hanging Strawberry Pilot Project


The Project has completed a pilot project that aims to ensure the feasibility of hanging strawberry

farms in relation to Gaza’s specific economy and climate. Eid Ahmad Deeb Siyam and Mahmoud

Ahmad Saled Ikhlil added three dunums each to the strawberry pilot project. The hanging systems

for the two farms were installed and the seedlings process commenced with the seedlings planted in

August for the next season which started in September. The total quantity exported by end of

December 2016 is 111 tons (66 Ton to West Bank, 23 Tons to Russia and 22 ton to EU) of which

1.5 tons were exported from the two hanging strawberry farms. The exports of strawberries are

reaching West Bank, Israeli and outside markets as seen in a local vegetable shop in Ramallah as seen

in the photo below.

FISHING USAID through its Compete Project continues to support scaling up the fishing sector in Gaza by

building the capacity and scaling up onshore fish farms and supporting the development of offshore

fish farms.

Scaling-up Onshore Fish Production

Fish Fresh

Fish Fresh is the biggest onshore fish farm in Gaza, established in 2011 in the Khan Younis district.

The company specializes in producing Denis fish (Sea Bream), with a production capacity of

approximately 140 tons per year. USAID through its Compete Project is supporting Fish Fresh to

increase its production capacity by an additional 190 tons per year, which will increase its

employment by 22 workers. Compete installed aerators and two electricity generators increasing

the quality of production and ensuring an uninterrupted power supply. Fish Fresh completed the

required infrastructure upgrades including installation of water pools, greenhouses, water wells and

leather lining. Operations in the new expansion farm commenced with the placement of imported

fingerlings in one of the new pools with the fish reaching maturity. Fish Fresh’s expansion has

reached a capacity of 350 tons (1 million fingerlings). By November 1.7 tons of Sea Bass fish were

sold, a new variety in Gaza, selling for 45ILS per kilo. Greater quantities are expected to be sold

after December 2016. The firm has hired 12 new workers, all youth, to manage the increased

workload and additional workers will be hired once the farm is fully operational at maximum

capacity.

Al Bahar Fish Farm

The second biggest onshore fish farm which was established in 2015 near the coastal road of

southern Gaza. The company specializes in producing sea bream “Denis” fish, its production capacity

is around 100 tons per year. The local market is deemed the main market for the company.

Compete is supporting Al Bahar to increase its production capacity by an additional 80 tons per


year. To date Al Bahar employed 4 additional workers. Two generators and aerators were delivered

by November 2016. Al Bahar fish farm made progress in preparing the land and infrastructure to

expand its facilities. The fingerlings are growing in the expansion area and will need 8 more months

to reach maturity and be sold. Worth noting is that Al Bahar has also begun developing a fish

hatchery following USAID’s successful development of a hatchery for Kuhail Fish Farm.

Al Salmi Fish Farm

Al Salmi Fish Farm is a fish farm established in 2014 on 3.5 dunums (only 1.8 dunum is utilized) on

the coastal road, Al Qarara. Unlike the other three existing fish farms in Gaza, Al Salmi Fish Farm is

specialized in producing only Tilapia (Red & Black) fish with a production capacity expected to reach

30 tons a year by the end of 2016. Tilapia is fast-growing, adaptable and tolerant of stocking density

which makes them attractive for onshore fish farming. USAID through its Compete Project will

support the company with solar energy and aerators. An LOA was signed in December. The farm

will expand its land by one more dunum in order to add six fish pools that will enable them to

increase their production capacity to 50 tons a year [previous capacity is 30 tons a year]. Compete’s

solar consultant completed the assessment and the design of the solar system which will operate the

pump and the 3-5 aerators. Procurement is ongoing.

Introduce Fingerlings Production in Gaza

Kuhail Fish Farm

Compete is assisting Kuhail Fish Farm through an in-kind grant to develop a fish hatchery for Denis

fingerlings for the benefit of the Gaza Strip fish farming value chain, as well as introduce new

alternative energy solutions (solar) to address persistent electricity disruptions that effect consistent

production. Following receipt of Israeli approval to bring in the solar system needed for operation of

the fingerlings lab at Kuhail Fish Farm, which will support onshore fisheries in Gaza by ensuring a

local – versus imported – supply, the system was delivered to Gaza and installed during August. The

supported fingerlings lab started supplying Fish Fresh with fingerlings, and recently Kuhail signed an

agreement with Fish Fresh whereby he will supply the latter with 100,000 fingerlings monthly. In

December a shipment of 200,000 fingerlings is expected. Al Bahar (more details above) will also

receive fingerlings. Kuhail has hired three additional workers, all youth, to support the fish farm.

Support Development of Offshore Fish Production

Abu Alnaja

Abu Alnaja and Associates Company, established in 1993, are planning to expand their business to

include offshore fish (Denis) production by introducing Tension Leg Cages (TLC) technology. This

new technology will enable Abu Alnaja to reduce the running and investment cost. On an offshore

site, Abu Alnaja will need less electricity and will not require the processes and infrastructure for

aeration. This company will be the first to employ this technology in Gaza, and is securing the permit

from the Israeli CLA to operate within a certain distance from the shoreline. Compete supported

Abu Alnaja in conducting a business plan for offshore fish farms.

ICT

The mandate of Compete’s work in the ICT sector in Gaza is to increase the competiveness of the

sector to facilitate regional and international expansion and increase the number of new entrants in

the software sector. Strategic priorities will center on providing technical assistance to stabilize

operations; enhancing access to market; strengthening the capacity of targeted firms/sectors to


produce high value products and services; developing workforce skills and introducing new

technologies; and providing business enhancement and institutional development support.

Compete has received 123 ICT applications for firm level assistance from Gaza. Thirty-two

companies have been assessed with 11 LOAs signed with Developers Plus, Dalata Code and other

clients (more information on the companies below). Five companies, MTC, UnitOne, Vision Plus and ICT

Warehouse enrolled in Compete’s ICT Export Market Development Program.

321 Boom

321 Boom is a game startup from Gaza that has been registered since June 2015. The co-founders

developed a concept character called Rayru, around whom they have built a game prototype. The

team applied for a competition organized by USAID for best game prototypes during a sponsored

high tech hub conference in 2013. Their entry won first prize, for which they received a

commitment from Compete to provide technical assistance to build the first project. Compete

assisted 321Boom in building its first full game for mobile devices, and provided marketing assistance

once 321 Boom has published its game on the relevant game app stores. Once game development

had been completed, Compete then assisted 321Boom to purchase advertisements on relevant

websites like Amazon, GooglePlay, and the iTunes store, as well as membership subscription to a

gaming organization to help them continue to stay informed and engaged with their market.

Compete purchased the membership for GameUnity in order to enable 321 Boom to publish the

game on the application stores and covered the company’s subscription for PITA services. The game

will be released online (through IOS and Android stores) during March 2017.

5QHQH

The Project signed an LOA with 5QHQH and supported the company in its marketing activities until

December 2016. The company works in the development of entertainment and comedy in Arabic,

and had requested support from Compete. The company submitted a new request for support with

a marketing campaign to assist in accessing the Jordanian market.

Al-Tariq Systems

During the base period, Compete supported Al-Tariq Systems to develop tailored software systems

for clients in Gulf countries, allowing them to increase their international presence. Compete signed

a grant with Al-Tariq Systems to further facilitate market penetration to two new markets in Poland

and Norway. As a result, Al-Tariq built new software packages to be sold in these markets and is

using a partnership model with local software solution companies in these countries.

Computer Land

Computer Land is a specialized ICT training center with a large database of former trainees.

Computer Land approached the Compete Project to assist them in opening a new MAC lab to

become an Apple certified training center to meet the needs of previous trainees. There is growing

demand for such training due to the growth of IOS applications development and the potential of

working as an online developer. It is expected that Computer Land will be able to hold a minimum

of 10 training sessions per year for IOS apps using the new infrastructure with a full capacity of

trainees. Compete plans to assist the company’s lab needs with 6 MAC computers and the company

will buy another 6 MAC computers as part of their cost share. The requisition was submitted to the

procurement department and is in-process.

Dalata Code


Dalata Group Company for Consultancy (aka Dalata Code) is a software company based in Gaza.

Compete assisted Dalata Code with 70% of the software licenses for various Amazon web services

required for this activity, as well as 50% of various equipment items (Laptops, billing and quality

control software); Dalata Code procured the remaining percentage of costs. This assistance was

designed to improve Dalata Code's internal infrastructure and quality systems through the provision

of equipment and strategic technical assistance. Compete's support helped with finalizing the rollout

of Elid on a production environment through Amazon hosting. Overall, this activity will contribute

toward the sector objectives of increasing the percentage of sales in Palestinian ICT firms, the

number of new markets accessed (Nigeria), and the number of new jobs created as a result of USG

assistance. Compete completed the procurement of services, software and equipment as per the

plan, and Amazon hosting is underway.

Developers Plus

Khalil Adeeb Salim & Yaser Jehad Mustafa Company for ICT Developers Plus (aka Developers Plus)

is a software company from Falluja, Gaza, founded in 2010 started by two young developers.

Developers Plus is offering software development outsourcing, training, and social media

management. The company suffered from a bad power supply, as well as a lack of equipment. The

area where Developers is now located is receiving on average 3 hours of electricity per day, as

opposed to the 8-hour schedule that was announced to the public. To identify ways to address this,

Compete conducted a solar assessment for the company. As per the consultant report, Developers

needs a 3.78kW system in order to stabilize the operations of the company and reach full 8-hour

operation. Accordingly, Compete provided hardware support to improve their work quality and

productivity, through procuring and installing a solar panel system. The system has already had an

impact with 5 new projects attained within a week during June when the system went live. Prior to

the system being installed the company would take on 1 to 2 projects a month.

Gaza Gateway

Gaza Gateway used to be a department within UNRWA working on implementing ICT projects for

UNRWA, and the department was spun off as a private sector company in late 2015. It is expected

that Gaza Gateway will become a significant employment generator among youth in the Strip.

Compete signed a grant agreement with Gaza Gateway in July 2016 to help build their internal

organizational capacity to become a robust outsourcing company on the regional level – the grant

has been extended until the end of March 2017. Compete’s intervention includes capacity building

for senior management and a company assessment and business plan – the business plan will be

completed by March 2017. The niche market assessment was completed which will assist the

company in focusing on the most important services for its expansion. Moving forward, Compete

will fund three weeks of paid internships for two Gaza Gateway core employees who will take their

internship within a similar, social enterprise, company (Digital Divide Data-DDD) in Laos -

preparation for this internship is underway with it expected to take place during January 2017.

ICT Warehouse

ICT Warehouse for IT Services is a software company registered out of Gaza. Since 2011 the

company worked on delivering software projects for the local market. Slowly, the company shifted

to European markets with the assistance of other donors. The company managed to establish

linkages with several markets in Europe (Croatia, France, Austria, and Spain) and now the Company

wants to diversify its revenue streams and move from its current 100% service industry revenue.

After conducting thorough research, ICT Warehouse wants to get into the Sony PlayStation

Arabization market. Sony introduced Arabic support in early 2015 and at present there are no PSP


games that have Arabic characters. ICT Warehouse plans to become a provider of Arabic characters

for PSP game developers. The end market is in the MENA region, but ICT warehouse will be

working with game developers that are based in Europe and the US. Compete, through a

professional consultant, will support the company in conducting a niche market assessment and

determination. This assessment will result in a detailed scope of work for a market research firm as

part of the Export Market Development Program.

Modern Tech Company [MTC]

MTC is an ICT company established in 1994. The company works in website development and

hosting, SMS, and specific software packages for certain industries. The company is evolving from a

service-oriented to product-based company by leveraging the experience and network of customers

they have built over the years. Compete will enroll the MTC Company in the Export Market

Development Program by conducting an export market assessment for MTC’s product named

“Cloudy”, which is an operation tool for collaboration. The assistance aims to identify areas of

market expansion for MTC and assist the company in making informed decisions regarding their

international expansion. Compete supported the company with the assessment and the results were

shared with the company.

Netstream

The company is one of the Internet Service Providers (ISP) in Gaza. Its current market share is

about 10% (6,500 clients) and it is the only ISP that provides TAJAWAL services via WIFI,

overcoming restrictions of 3G infrastructure in addition to having a number of unique services.

Currently, they have their own call center but it is very limited. They are looking to set up an

expanded call center as a separate investment unit to serve other clients, including the mother

company. The potential clients will be from local and regional markets. Compete assisted the

company to develop their service by generating a business plan to measure the feasibility of

developing new services. The business plan was produced and results were favorable for establishing

the call center unit. Compete will consider the company request for further support.

Vision Plus

Vision Plus is a training center in Gaza that has been operating since 2011. The company provides

local training services in Gaza on Cisco, Microsoft and other IT topics. They also provide exams and

certifications for young trainees. The company’s customers are mainly youth who are trying to find

employment in the local market. Compete assisted Vision Plus in opening a new MAC lab to

introduce new training skills and topics in Gaza as well as providing certification and training for

trainers. The equipment for the center was delivered and installed in August. The Project will also

assist them in becoming an Apple certified training center – the first in the West Bank and Gaza.

Compete also conducted a niche market assessment and determination. This assessment aims at

creating a detailed scope of work for a market research firm as part of the Export Market

Development Program, to in turn help Vision Plus develop the right plans for the desired software

division. This support will assist the company in making informed decision regarding the international

market and identifying the best setup for conducting international business.

UnitOne

UnitOne is a Business Process Outsourcing (BPO) company based out of Gaza since 2011. Significant

portions of their staff are formed from their dedicated unit for women, which has around 50 people

working in data entry and content translation. UnitOne has a small software division that has been

providing services to the UAE, Netherlands, and US markets, and recently received interest from


INTEL (Jerusalem) to start doing translation work. UnitOne is cooperating with IT companies in the

West Bank to provide backup offices and counter instability in the Strip. UnitOne has future plans to

open an office in Jordan. Compete assisted UnitOne via a professional consultant who conducted a

niche market assessment and determination and the results were shared with the company.

TEXTILE AND GARMENT

USAID through its Compete Project received ninety-three (93) applications so far, 20 of which were

selected in cooperation with the Garment and Textile Union in November 2015 to be part of

Compete initial program for assistance. These are the top players amongst their affiliated members

based on export volume and export potential.

Technical Support

The FLAP committee approved ten (10) applications from Gaza Garment companies for technical

support; these companies had requested assistance with new technology to enhance production

quality and efficiency as well as support with workforce development, in addition to the

aforementioned technical assistance. Eleven (11) technical LOAs have been signed to date.

Beneficiaries are listed below:

Abu Jahal - Abu Jahal Company is specialized in Islamic wear and coats. The Company has a

maximum capacity of 6,000 units per month and currently utilizes about 75% of the full capacity in

producing 4,500 units per month. The Company is focusing on covering the new demand from the

West Bank market and expanding in the local market. Thus, Abu Jahal is in the process of buying

new machines in order to increase the production capacity and improve the products design.

Compete plans to support the company with one generator with 65 KVA and cutting and sewing

machines. An LOA was signed in December 2016. A generator was delivered in December 2016; the

other machines will be delivered once finalizing the procurement process.

Al Hadeel Company - Hadeel Company is a women’s wear producer, planning to increase the

factory capacity, enhance the quality and expand its outreach to new export markets; the West Bank

and Israel. Compete is supporting the company in providing essential equipment buttonhole machine,

plotter and OptiTex technology, to control the garment before cutting or sewing any piece of fabric,

enabling faster cycles and products that better fit the export company’s needs as well as to control

the quality and assure the consistency of products. Compete is supporting the company in hiring 35

apprentices to utilize their new equipment and increase their capacity. This comes as part of

Compete efforts in creating jobs and spurring growth in Gaza. Compete delivered one buttonhole

machine to its branch in Hebron to start using it in the production in addition to the sewing

machines, steam ironing and clothes button machines that has been brought as part of the client’s

share. The procurement process of the plotter machine and the OptiTex system was finalized in

October 2016. Delivery expected in January 2017. Apprentices will be hired in mid-January 2017 for

two months.

Al Majed - An Islamic wear producer, Al Majed is planning to reach out to new buyers in the West

Bank and use new embroidery machines in order to increase capacity and ensure the quality of final

products. Compete is supporting Al Majed in conducting market research for the West Bank market

and in providing an embroidery machine. During the month of July, the contracted consulting

company conducted field visits with retailers and wholesalers in the West Bank. The market

research was finalized by August 2016. Compete’s procurement team finished the vendor selection


processes for the embroidery machine and the PO was signed in early September 2016. The

embroidery machine was delivered in November. Moreover, Compete conducted an Operation and

Management Analysis to assess the company current management system and understand the

requirements needed to comply with international standards. This assessment will support the

company to enhance the management quality and allow them to obtain a quality certification such as

ISO. The results were shared with company and Compete will work closely to enhance their system.

Al Ostaz Company - A children’s wear producer, the company is planning to expand into the West

Bank market. Compete will support this company in conducting market research in order to

expand its reach in the West Bank market. Compete contracted a consulting firm to conduct the

research, and in July the company started conducting field visits and interviews with retailers and

wholesalers throughout the West Bank. The market research was finalized in August. The results of

this market research will provide Al Ostaz Company with profiles of potential buyers, quantifying

buyer needs, requirements, and processes; and will deliver actionable recommendations and a “go-

to-market” strategy that will enable Al Ostaz Company to reach and sustain key new clients in the

West Bank.

Golden Rock Company – Golden Rock Company – a jeans wear producer for children and pregnant

women, is planning to keep their relationship with the Israeli market ongoing, specifically with My

Baby Company and will re-start producing a new line for babies and pregnant women. Accordingly,

Compete plans to support the company in developing new production line in Gaza that produces

cotton products for Israeli market, as the company already has a potential deal with My Baby

Company to produce a full series in one year. Moreover, The Company is in the process of buying

plotter and software design (Optitex) to control the garment before cutting or sewing any piece of

fabric, for faster cycles and products that better fit the export company’s needs as well as to control

the quality and assure the consistency of products. Also the company needs to enhance the power

generator capacity to cover needed power for the new machines. The generator was delivered in

October. The button machine was delivered in November 2016 (pictured below).

Hassan Shihadeh Company - The Company is a jeans wear producer, planning to increase the factory

capacity as well as its export volume to Israeli markets. Compete supported the company under the

FLAP program on a cost share basis. In July 2016 the Project assisted the company to install a


financial system to control its operations and finances. Moreover, the Project hired a designer for

three months to design new styles as well as a financial system of which 30% was covered by the

company. Compete went on to support the rehiring of the designer in December as a part-time

consultant. In addition, in July 2016 Compete delivered one generator with 33 KVA to support

revitalizing the factory. In August Hassan Shihadeh committed their cost share and bought 25

computerized stitching machines and two over-lock machines. Procurement of Compete’s assistance

is complete with the delivery and installation of two over-lock machines, one buttonhole machine

and one close button machine. The company succeeded in signing contracts with two Israeli

companies (Mai Design and ONOT Jeans) and is willing to expand more in the Israeli market.

Jaber Brothers Company - The Company specializes in producing a wide variety of women’s wear.

The company plans to re-export its products to West Bank. The company reached out to Compete

to receive technical support in providing two embroidery machines. These machines will enhance

productivity, reduce production cost and ensures the consistency and the quality of its final products

as well as to create its own designs in-house. An acceptance letter was signed; the company

purchased two embroidery machines. The LOA was signed in October 2016 and the procurement

process for the two machines [Compete’s cost-share] was completed and the PO is pending EDF

approval. Additionally, the Project plans to purchase a generator to support the creation of a new

production line. The generator and buttonhole machines were delivered in December 2016 and the

company purchased 33 sewing machines as a cost-share contribution.

Kamal Ashour Company - Kamal Ashour is specialized in producing primarily winter clothing:

blouses, jackets, children’s blankets; as well as private school uniforms. The company is focusing on

linking back to their previous Israeli clients, therefore the company contacted two of their old

buyers in the Israeli market and they showed interest in buying the company’s products for the

winter season. Accordingly, Compete will support the company in providing a new vacuum ironing

machine to ensure the finishing as well as a 50 KVA generator to overcome the electricity shortage

and to increase the production capacity. Compete supported Ashour in developing a new website to

upgrade their marketing capabilities. The generator was delivered and installed in November. The

ironing machine equipment will be delivered in February 2017. Ashour commenced its cost share

and installed the UPS and ordered plastic bags from China.

Nahed Al Safadi Company - Specialized in men’s suits, pants and jackets, the firm is planning to re-

start the relationship with previous Israeli buyers. Thus, the company is planning to enhance the

quality of the products and the production capacity of the factory. Compete is in the process of

assisting this company in buying new and specialized machines for the type of products needed to

reach their target market. The LOA was signed in late August and the equipment will be delivered

once the vendor receives coordination approval.

Nofal Company - Nofal Company is mainly producing wedding dresses, women’s wear, Islamic wear,

and Palestinian cultural and traditional dress. Currently, the company uses the service of specialized

embroidery factories in Gaza, however, there are a few companies in Gaza that have embroidery

machines with sufficient capacity to meet the local demand by the local garment factories, which

cause delays in delivering products and increasing the embroidery cost for the local garments

companies. Thus, Compete plans to support the company with one embroidery machine that saves

time, enhances productivity, reduces production cost and ensures the consistency as well as the

quality of its final products and more importantly, to create its own designs in-house. The company

will invest in buying another one as to increase the capacity and meet the West Bank market

demand. The LOA will be signed in January 2017 and the procurement is pending EDF approval.


Oun Taha Company - Oun Taha is a jeans wear producer, planning to introduce a solar system

power source option for the factory; minimizing the cost of power used by the company which is

approximately US $3,000 per month. The goal is to enhance the competiveness of products by

reducing the unit cost by 4.6% and increase exports through existing buyers and new buyers in the

West Bank. Compete support received a positive recommendation by the solar consultant and thus

approved providing a grant with almost 50% support of the solar system, to demonstrate the viability

of such technology to other garment companies. The solar system is in the procurement process

and will be delivered by May 2017.

Zahrat Al Madaen Company - A children’s wear producer, the firm is planning to increase the

capacity of the factory through utilizing existing machines. Compete supported the company through

provision of one 33 KVA generator to revitalize the factory and increase its exports to the West

Bank. The company succeeded in utilizing all of the machines that increase the production capacity

for local and West Bank markets.

Marketing Program:

Institutional Level: Textile and Garment Union

On the institutional level, the institutional assessment of the Gaza Garment & Textile Union has been

completed. The purpose of this assessment was to obtain baseline information on the unions’



support needed for the union.

As part of the result of the assessment Compete plans, through awarding an in-kind Grant to the

Union of Industries for Textile, Leather, and Clothing, to hire an Israeli Marketing/Consulting firm

through a competitive process to work with up to 12 selected Gazan garment firms to conduct a full

business engagement with Israeli buyers, identifying, assessing, and matching firms between supply and

demand; providing insider security access to support communications and deal-making efforts. The

contracted firm will conduct a market research to the Israeli market and full business engagement

with Israeli buyers, identifying, assessing, and matching firms between supply and demand, providing

insider access to support communications and deal-making efforts. This activity is a natural extension

of Compete’s advisory and hardware assistance over the last 12 months to these companies,

whereby we have increased their competitiveness through advisory engagements and assistance to

achieve greater product quality assurance and consistency – necessary prerequisites for successful

export engagement.

TOURISM

USAID through its Compete Project will work with the Tourism sector in Gaza to develop strategic

business and management plans and enhance production and quality systems. The program will also

provide training in areas critical to improving performance. Through December 31, 2016, the Project

received forty-three (43) applications.

Technical Support

Four LOAs were signed by the end of December with Roots Hotel, Al Salam Restaurant, Castillo

and Level Up. All four were completed successfully. Eleven new applications were received through

FLAP and were reviewed by the Project panel in December 2016 with three potential clients to

receive support in the next quarter.


Castillo - Compete signed the POs with the winning vendors that will implement the e-management

software for Castillo and the activity for the restaurant was completed during August. Castillo

restaurant operations and management software was successfully installed and fully integrated, the

user training was completed and the beneficiary paid their cost share by purchasing 5 tablets, 3

printers and 1 computer.

Level Up - Compete signed the POs with the winning vendors that will implement the e-

management software for Level Up to conduct a Hazard Analysis Critical Control Point (HACCP)

assessment and gap analysis, and the activity for the restaurant was completed during August.

Recommendations and findings will be shared for the restaurants to upgrade its services or deploy

new systems that comply with HACCP requirements. The beneficiary began to adopt

implementation plans and abide by recommendations towards meeting HACCP standards and obtain

certification in the near future.

Roots Hotel - Based on the LOA signed with Roots Hotel, the Project will support the hotel with a

cost share of 70% towards the installation of a hospitality management software system, website

development as well as a full assessment for the installation and deployment of a solar energy system

to assist them in lowering the steep electricity bills due to power cuts and dependence on diesel

generators. In August the solar assessment was underway and should be completed by early

September. The assessment will be covered in its entirety by the Compete Project. The bid

evaluation for website development was finalized in August. The development of the website was

finalized in November.

Salam Restaurant - Based on the LOA signed with Salam Restaurant, the Project agreed to support

the installation of operation management software and conduct a solar energy assessment. The

installation and training of e-restaurant software was completed in August 2016. The beneficiary

completed their cost share through purchasing 6 tablets, 1 laptop, and 5 Cisco access points. The

solar assessment was completed during September 2016 and indicated the feasibility of such an

undertaking. The company is in the process of reviewing the recommendation of the solar system

prior to proceeding with this new energy source.

Al Marsa Restaurant - The restaurant is sole ownership established in 1987 with 20 full time

employees. It offers three main services; dining and takeaway meals (100 meal/day), and 240

workshops and parties per year. The restaurant is facing difficulties managing its operations; they

often struggle with manual processes and absence of software solutions which makes it nearly

impossible to manage operations effectively and derive an aggregate and accurate view of the

business. Compete will provide technical assistance to the restaurant in order to deploy a software

solution, automating the front line operations in one platform and integrate the new technology with

already existing back office system. The requested solution should include; centralized ordering

system, order management and processing, Point of Sale (POS) integration, menu display for foods

and drinks, kitchen management, and waiter’s management. The LOA will be signed once receiving

vetting.

Tailandi Restaurant - The restaurant is sole ownership established in 2006 and employs 30 full time

employees. The restaurant offer three main services; dining meals (400 meals a day), take away

sandwiches (400 sandwiches a day) and 21 workshops per year. The restaurant is facing difficulties

managing its operations; they often struggle with manual processes and absence of software


solutions which makes it nearly impossible to manage operations effectively and derive an aggregate

and accurate view of the business. Compete will provide technical assistance to the restaurant in

order to deploy a software solution, automating the front line operations in one platform and

integrate the new technology with already existing back office system. The requested solution should

include; centralized ordering system, order management and processing, POS integration, menu

display for foods and drinks, kitchen management, and waiter’s management. The LOA will be signed

once receiving vetting.

Institutional Level

On the institutional level, an assessment of the Palestinian Committee for Hotel, Restaurant and

Touristic Services has been completed. The assessment report has been finalized and approved by

the Committee. The purpose of this assessment was to obtain baseline information on the unions’



support needed for the unions.

Building on the recommendations from this assessment, USAID Compete is considering financial

support to PCRHTS, with an in-kind grant to enhance the capacity of the union. Areas for

consideration are listed below:

- Develop the union strategy

- Establish the union governance policies and procedures

- Support the union with the annual rent

- Equip and furnish the union new office

- Develop accounting policies and procedures manual

- Install automated accounting system

- Develop a modern and up to date website

All the items were completed except for the development of union strategy , governance policies

and procedures; the union is working in developing the strategies and procedures and will be

completed in March 2017.

FURNITURE

Eighty-one (81) applications have been received since the beginning of the Gaza program, 20 of

which were selected in cooperation with the Palestinian Wood Industries Union in Novembers 2015

for potential engagement. These 20 firms are the top exporters amongst the union members, based

on the export volume and export potential.

Based on the Israeli government’s decision in October 2014 to ease economic restrictions on the

Gaza Strip, a needs assessment was conducted with the 20 export-ready firms to assess their sales

and exports to the Israeli and West Bank markets, partnerships, production capacity, material

requirements, and marketing information. However, in September 2015, the Israeli authorities again

placed increased restrictions on the type of solid wood allowed into Gaza [from pieces 2.5 cm in

thickness and 20-25 cm in width, to 1 cm thickness and 5 cm width]. A quick assessment of the dual-

use restrictions list as relate to the 20 firms’ production requirements was conducted by Compete

and submitted to CLA and USAID. The assessment indicated that no firm is able to operate with

wood at 1 cm thickness, as this undermines the products’ quality and increases production costs,


leading to low competitive advantages against regional producers. Thus, engagement with this sector

is on a limited basis until facilitation has been made via the international community to allow the

entrance of the required raw materials into Gaza.

Despite these challenges, Compete has discovered there is potential to work with some companies

that are specialized in producing baby/children’s furniture, and are able to utilize smaller pieces of

wood through special coordination.

Institutional level: Wood Industries Union

Compete completed an institutional assessment for the Palestinian Wood and Industries Union that

obtained baseline information on the unions’ operating environment and identified the strategic and

operational challenges facing the aforementioned unions. In order to enhance the capacity of the

Wood union to provide better services to its members, Compete will support the union in revising

the union strategic plans, governance policies, operational plan, monitoring system as well as the

accounting system in addition to hiring one accountant to manage the system. Compete will also

support the union in market presence in the West Bank and in developing new website. Equipment

was delivered during December 2016 and the accountant will start work in January 2017 for a three

month period. The development of the system and the website will be completed in the upcoming

three months.


CHAPTER FOUR: GENDER & YOUTH

USAID through its Compete Project works across key economic sectors in the West Bank and Gaza to find opportunities to encourage gender equality and

support youth innovation1. The following section highlights project activities this quarter with a youth and gender impact.

Start

Date

Sector Event Title Type Total

Part.

Total

Male

Tot

al

Fem

ale

M.

und

er

17

Mal

e 18

- 25

Mal

e

26+

F.

un

der

17

Fem

ale

18-

25

Fem

ale

26+

11/16/2016 ICT GEW Compete Event - legal pitfalls facing startups and entrepreneurs. Workshop 16 12 4 6 6 3 1

11/13/2016 Stone and

Marble

National Instruments 5 day training Training

9 9 0

2 7

0 0

11/7/2016 Agribusiness Training on Installation of T and Y Grapes Hanging Systems and How to

Use them

Training

40 38 2

3 35

0 2

11/6/2016 ICT Leaders/SAP Boot Camp Workshop 20 18 2 7 11 2 0

10/31/2016 ICT PRE SAP Workshop Workshop 13 12 1 3 9 1 0

10/19/2016 Agribusiness ISO 22000 Training for Al Hathnawi General Trade Company as part of

ISO22000 Standards Certification

Training

1 0 1

0 0

1 0

10/17/2016 Agribusiness Traceability Training as part of FSSC 22000 and GlobalGap Certification

for Al Zarraoun Al Arab for Agricultural Services

Training

14 9 5

0 9

0 5

10/16/2016 Agribusiness Food Safety Basics Training for Al Hathnawi General Trade Company as

part of ISO22000 Standards Certification

Training

3 2 1

1 1

1 0

10/13/2016 Agribusiness GlobalGap Training as part of FSSC 222000 and GlobalGap

Certification for Al Zarraoun Al Arab for Agricultural Services

Training

4 3 1

0 3

0 1

10/5/2016 Agribusiness BRC Training for Qitaf Company for Investment and Agriculture

Marketing

Training

33 33 0

0 33

0 0

10/2/2016 Agribusiness HACCP Training as part of FSSC 22000 and GlobalGap Certification

for Al Zarraoun Al Arab for Agricultural Services

Training

15 10 5

0 10

0 5

9/28/2016 Agribusiness FSSC 22000 Training as part of FSSC 22000 and GlobalGap


Training

16 11 5

0 11

0 5

1 Defined by USAID as aged 14 to 29


9/27/2016 Agribusiness Risk Assessment Training as part of FSSC 22000 and GlobalGap


Training

19 6 13

0 6

0 13

9/14/2016 Agribusiness Internal Audit Training as part of FSSC 22000 and GlobalGap


Training

2 2 0

0 2

0 0

9/5/2016 Agribusiness Food Safety Food Hygiene HACCP Training for Qitaf Company for

Investment and Agriculture Marketing

Training

31 31 0

0 31

0 0

Total number of ALL participants: 178

Total number of male participants: 145

Total number of female participants: 33

GENDER STRATEGY IMPLEMENTATION

In November 2013, the Compete Project produced a Gender Strategy aimed at promoting gender equality and participation among women in the Palestinian

Territories. The Gender Strategy rests on four pillars:

Pillar #1: Promote the success of women in business in the Palestinian Territories, especially those operating within Compete Project sectors.

Pillar #2: Identify new entry points for women within the Project’s four value chains.

Pillar #3: Encourage private sector support for the economic participation of women through financial and technical cost share models and incentives.

Pillar #4: Expand efforts to increase the full participation of women in training and capacity building programs.


CHAPTER FIVE: MONITORING AND EVALUATION

Monitoring progress and evaluating results are key management functions that enable the team to

capture performance data that plays a critical role in planning and management decisions. M&E is an

on-going process that allows managers to determine whether or not an activity is making progress

towards its intended results.

METHODOLOGY

The Project’s M&E team conducted a series of field visits and interviews across the West Bank to

collect systematic and timely performance information to quantify results for FY6Q1. The technical

teams supported these visits in lending their first-hand knowledge of sector-specific activities and

resulting impacts. This ensures data is collected from the most appropriate and knowledgeable

people at the targeted companies, farms, individuals and cooperatives.

KEY ACCOMPLISHMENTS

The following are selected accomplishments for the M&E team this quarter. The M&E Team (M&E

Specialist, M&E Senior Coordinator, Economist, M&E Engineer) continue to:

Conduct field visits and interviews across the West Bank to verify data, as well as ensure quality

of data to achieve quantifiable targets;

Work with the communications team to submit Project progress reports;

Capture ongoing operational research data such as Private Sector Investment Leveraged;

Document and update data on Geo-MIS, TraiNet, and TAMIS;

Monitor Project team to make sure relevant USAID regulations are met;

Modified the tracking excel sheet under each sector that shows the overall growth per each

company since the start of the project;

Following up with Gaza team on M&E issues & mainly on USAID regulations in data collection &

verification as well as produced a guidelines for Gaza team in this regard;

M&E presentation for the FY6 work planning retreat.

M&E Economist:

Conduct field visits and interviews across the West Bank to collect, capture, and verify data

required of economic analyses to support Compete technical teams with analyses;

Work closely with Compete staff and beneficiaries to prepare feasibility studies, business plans,

tourism trends analysis and different types of reporting for proposed activities to insure that

correct interventions are selected and provide feedback;

Provide the team with the required statistics and constantly updating sector related figures; this

supports the Project during work plan development, activities, interventions and showcasing

Project related results to USAID and industries;

Other support includes monthly Gaza reports, economic and quantitative models and techniques

developed to measure Compete supported impacts across sectors.

Senior Engineer and Environmental Compliance:

During this quarter, the following had been completed concerning the environmental compliance:

In the WB, two EDF’s were prepared by (Compete M&E engineer) for the Ag sector activities in

Hebron. Site visits were conducted for EDF preparation, and needed documents were submitted

to USAID and approved.


In Gaza, eight EDF’s were prepared by the (Compete environmental consultant), revised and

checked by (Compete M&E engineer). Of which, five EDF’s were for the Ag. Sector and three

for the garment sector. Site visits were conducted for EDF preparation, and needed documents

were submitted to USAID, and 7 were approved.

LESSONS LEARNED:

Given the current situation in Gaza, capturing and verifying the intended results for implemented

activities and interventions in Gaza needs an extra effort from all the project’s staff “the

technical and M&E teams” to ensure that the best data quality is collected and the data quality

standards have been respected.

It is worth mentioning that the last year of the project is very critical; special efforts should be

made and allocated to highlight the success over the life of the project. In this regard, a full

coordination between technical, communication as well as M&E teams is strongly needed to

capture /report/share the direct & indirect impact.


CHAPTER SIX: COMMUNICATIONS AND OUTREACH

During this quarter, the Communications team highlighted major initiatives implemented by Project

sectors.

This quarter the Communications team organized press coverage for a number of activities and

arranged meetings and information for visitors to USAID beneficiaries including the Consul General

visit to Sana Jalamneh and the Mission Director’s visit to VisitPalestine in Bethlehem to showcase the

impact of USAID support to the private sector.

Coverage of the SAP training:

http://cpifinancial.net/news/post/38720/levants-rising-digital-economy-creates-new-opportunities-for-

tech-entrepreneurs

MARKETING SUPPORT

The Communications team has been working with a number of Project clients to support their

efforts in marketing and promoting their products and services. The support included evaluating

their current marketing tools, designing new promotional tools which include both online and

printed materials, developing the content of different publications and supervising service providers

work, quality assurance on the development of the final product. During this quarter the marketing

and communications team completed work to provide marketing assistance to Al Majd Company for

Agricultural Products that included: development of brochure content in Arabic and English, revision

of the translated text and draft brochure design. Moreover, the team supported the technical staff

in the development of the required Scopes of Work for marketing support to firms under the FLAP

program.

Additionally the communications team carried out the following:

Updated the Project website, publishing all RFPs through the website.

Followed up with events.

Drafted the announcement and documents of a number of programs that were published on the

website including the Baby Cucumber, Grapes in the West Bank and the Vegetables program in

Gaza.

EVENTS AND PROJECTS

This quarter the Communications team supervised the implementation of branding and event

support including EXPOTECH 2016, SAP training in Jordan, National Instruments training in Jordan as

well as other activities and program announcements across the West Bank and Gaza.

REPORTING

As a key vehicle in communicating Project progress, impact and evaluation, the Communications

team works closely with the M&E and technical teams to produce meaningful monthly, quarterly and

annual reporting. During this quarter, the team produced two monthly reports for October and

November. In addition the Annual report for Year 5 was also produced during this quarter covering

the period between October 1, 2015 and September 30, 2016.

http://cpifinancial.net/news/post/38720/levants-rising-digital-economy-creates-new-opportunities-for-tech-entrepreneurs

http://cpifinancial.net/news/post/38720/levants-rising-digital-economy-creates-new-opportunities-for-tech-entrepreneurs


CHAPTER SEVEN: FINANCE AND OPERATIONS

SUBCONTRACTS, GRANTS, OPERATIONS, COMPLIANCE

During the first quarter of the sixth year of the project (October 1, 2016 – December 31, 2016), the

office continued its support of the technical program activities. Efficient processing of Grants and

Letters of Agreements will enable the Project to achieve program results while spending funds at a

predictable and budgeted pace.

Achievements during QI of FY6

One hundred sixty-two (162) Letters of Agreement were issued with a total value of $685,370.

Of which 122 were in West Bank while 40 were in Gaza. Breakdown as follows: ICT 1, Tourism

1, Garment 4 and Agriculture 156.

Nine (9) totaling $918,042 were executed during the quarter with several others in design and

negotiation phase. Of which 6 were in the West Bank while 3 were in Gaza. Breakdown as

follow: ICT 4, Ag 3, Garment 1 and Stone & Marble 1.

Three (3) Independent Consultancy/Employment Contracts signed on behalf of Compete

beneficiaries. Two (2) full-time Compete staff were hired, ICT Sector Manager and ICT Business

Advisor (Gaza).

Completed draft report of the USAID Prime Audit.

Future Activities

In anticipation of submitting the Year 6 work plan which will outline new priorities for program

activities and shift focus on sectors, Compete will revise its organizational structure. The revision

anticipates a reduction in the number of full-time staff. Staff reductions will commence in January

2017.

Compete will start the solicitation process to hire an auditing firm to audit the Prime Contract for

the period of January 1, 2016 to December 31, 2016.

VETTING

The commitment to adhere to Mission Order 21 in a timely, business-like manner is essential to the

success of USAID’s partnerships with Palestinian companies. During the reporting period, Compete

submitted 228 names and organizations for vetting of which 219 were approved during the period.

Vetting approval averaged 20 days as compared to 11 days during the previous quarter.


ANNEX A: SUMMARY OF PROGRESS TOWARD INDICATORS

The following table is a report of all indicators specified in the PMP for the period of April 1, 2016 to June 30, 2016

Agribusiness

Indicator Name Baseline

PMP Ind.

type

Planned

Base

Period

Actual

Base

Period

Planned

Value for

FY4

Actual

Results

FY4

Planned

Value for

FY5

Actual

Value for

FY5

Planned

Value for

FY6

Actual

Value for

FY6/Q1

Value of exports of targeted

agricultural commodities as a result

of USG assistance

- OP

$35,000,000

$40,744,842

$23,300,000

$24,501,126

$23,444,842

$22,802,317

$19,500,000

Reported

Bi-annually

Number of hectares under

improved technologies or

management practices as a result of

USG assistance

- OP 1700 1877 150 157 350 325 150 313.5

Number of individuals who have

received USG supported short-

term agricultural sector

productivity or food security

training

- OP 300 1973 300 245 300 393 360 178

Number of new or improved

Palestinian products produced by

assisted Palestinian agribusiness

firms

- OP 90 129 60 67 45 47 25 14

Number of new markets accessed

by assisted Palestinian agribusiness

firms

- MNG 8 28 5 6 7 7 6 4

Percent increase in sales of assisted

Palestinian agribusiness firms

- MNG 50% 48% 33% 24.5% 15% 14% 15% Reported

Bi-annually

Increase in area under cultivation

for export crops (hectares)

- MNG 190 292 72 123 72 99.4 55 30


ICT

Indicator Name Baseline

PMP

Ind.

type

Planned

Base

Period

Actual

Base

Period

Planned

Value for

FY4

Actual

Results

FY4

Planned

Value for

FY5

Actual

Value for

FY5

Planned

Value for

FY6

Actual

Value for

FY6/Q1

Number of ICT assisted start-ups

that have developed products or

signed contracts

- OP 50 45 30 7 18

13

9

1

Value of exports of assisted

Palestinian Information and

Communication Technology (ICT)

firms

- MNG $761,340 $2,397,271 $507,560 $2,449,824 $2,800,000

$5,426,474

$2,800,000

Reported

Bi-annually

Percent increase in sales of assisted

Palestinian Information and

Communication Technology (ICT)

firms

$ 1,082,633 MNG 15% 29% 10% 29% 15%

265%

15%

Reported

Bi-annually

Number of new markets accessed

by assisted Palestinian Information

and Communication Technology

(ICT) firms

- MNG 8 8 5 5 5

3

5

-2

Number of New ICT Start-up

companies established - MNG 22 17 14 10 12

10

8

5

Total number of start-up capital

raised by youth, disaggregated by

sex

- MNG 120,000 $322,650 $240,000 $66,000 $ 100,000

$120,000

$120,000

Reported

Bi-annually

2 Results will captured in the upcoming quarters


Stone and Marble

Indicator Name

PMP

Ind.

type

Baseline

Value

Planned

Base

Period

Actual Base

Period

Planned

Value for

FY4

Actual

Results

FY4

Planned

Value for

FY5

Actual

Value for

FY5

Planned

Value for

FY6

Actual

Value for

FY6/Q1

Value of exports through group

and specialized Palestinian stone

and marble marketing companies

and consortia

OP - $ 8,250,000 $ 13,246,160 $ 6,500,000 $6,586,842 $ 6,746,160

$7,969,897

$3,000,000

Reported Bi-

annually

Percent increase in sales of

assisted Palestinian stone and

marble firms MNG $4,150,261 38% 45% 22% 23% 15%

8%

15%

Reported Bi-

annually

Number of new markets

accessed by assisted Palestinian

stone and marble firms

MNG - 9 12 6 6 6

5

3

-3

3 Results will captured in the upcoming quarters


Tourism

Indicator Name

PMP

Ind.

type

Baseline

Value

Planned

Base

Period

Actual

Base

Period

Planned

Value for

FY4

Actual

Results

FY4

Planned

Value for

FY5

Actual

Value for

FY5

Planned

Value for

FY6

Actual

Value for

FY6/Q1

Number of new or improved

assisted tourism sites and

tourism trails

OP 0 11 7 7 9 3

0

6

Reported Bi-

annually

Fishing

Indicator Name PMP Ind.

Type

Planned Value

for FY5

Actual Value

for FY5

Planned

Value for FY6

Actual Value

for FY6/Q1

Percent increase in sales of assisted Palestinian firms MNG 15% 23% 15% Reported Bi-

annually

Textile and Garment

Indicator Name PMP Ind.

type

Planned Value

for FY5

Actual Value

for FY5

Planned

Value for FY6

Actual Value

for FY6/Q1

Percent increase in sales of assisted Palestinian firms MNG 15% 27% 15% Reported Bi-

annually

Value of exports of targeted textile and garments firms as a result of

USG assistance MNG $1,000,000

$234,866

$1,500,000

Reported Bi-

annually


Cross cutting indicators

Indicator Name

PMP

Ind.

type

Baseline

Value

Planned

Base

Period

Actual

Base

Period

Planned

Value

for FY4

Actual

Results

FY4

Planned

Value for

FY5

Actual

Value for

FY5

Planned

Value for

FY6

Actual

Value for

FY6/Q1

Proportion of female participants

in USG-assisted programs

designed to increase access to

productive economic resources

(assets, credit, income or

employment)

OP - 24% 22% 46% 27% 24%

28%

24%

Reported Bi-

annually

Number of youth gaining

employment or better

employment as a result of

participation in USG-funded

programs

MNG - 113 322 226 290 186

309

180

Reported Bi-

annually

Number of assisted private sector

organizations and private sector

service providers receiving USG

assistance.

MNG - 30 47 10 9 19

21

6

1

Number of new services provided

by targeted business service

providers and business service

organizations to targeted sectors

by the project.

MNG - 6 52 6 14 15

15

8

1

Increase in exports and/or sales by

women-owned/ managed

businesses and cooperatives as a

result of USG assistance

MN

G - 0 0

No

Target $138,181 $100,000

$271,582

$200,000

Reported Bi-

annually


Number of new jobs created as a

result of USG assistance MNG -

-

-

-

-

436

434

360

Reported Bi-

annually

Number of innovations supported

through USG assistance OP - NA NA NA NA NA

NA

14

Reported

Annually

Number of innovations supported

through USG assistance with

demonstrated uptake by the public

and / or private sector

OP - NA NA NA NA NA

NA

4

Reported

Annually

Documents

USAID COMPETE PROJECT QUARTERLY PROGRESS REPORT