Cost Recovery Methodology

Introduced by CIHEAM Bari for the first time as part of international interventions in the North West of Syria in 2014, further developed in all the other interventions implemented by CIHEAM Bari, jointly funded by the Italian and British Cooperation and by the on-going RaLA project, funded by the Italian Cooperation.  

 
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“The adoption of a cost recovery in a war-torn country proved to be effective and sustainable”
— OECD “Better Programming to Deliver Comprehensive Solutions to Refugee Crises”,
 

This innovative approach consists in distributing inputs and services (fertilizers, fodder, livestock medicines and vaccines, phytosanitary products) to farmers and breeders that co-participate in the costs, paying 70% of the price. The collected money is re-used to purchase additional inputs to be distributed to the beneficiaries. 

Basically, the projects implemented by CIHEAM Bari are distributing fertilizers, concentrated fodders, other inputs and services to beneficiaries, receiving from them 70% of the cost of the inputs/ services incurred by the project. The received money (from the beneficiaries) is used again to purchase additional inputs / services and receiving again 70% of their cost. This cycle is repeated several times till the complete utilization of the available funds.

 
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Added value of the Cost Recovery methodology

  • This has allowed to substantially increase the number of beneficiaries – since being able to reinvest the recovered funds to purchase additional inputs to serve a considerably higher number of farmers and breeders - The available budget for purchasing agriculture and livestock inputs has increased by about +150%.

  • Enhancing Local Markets - Great part Purchased inside Syria - Farmers and breeders stated that several products and services, promoted by the Programme, became more available in the local market during Programme duration

  • Continuous to promote an entrepreneurial behavior of the farmers, making them less dependent on external assistance/aid - The revolving funds scheme has revealed to be an effective alternative means to reduce the level of dependency on external aid donors

  • Sustainability of rehabilitated/set up veterinarian and agriculture services together with the local administration – ensured through the application of Cost recovery – to sustain the future management and continuation of the service – even after project end