| RURAL SMALL AND MICROENTERPRISE
PROMOTION PROJECT
THE PROJECT
Costs and Financing
Total project costs are estimated
at USD 17.6 million, including price and physical
contingencies. The project will be financed by
an IFAD loan of USD 14.9 million. The total cost
estimate does not include beneficiary contributions
as these cannot be estimated in advance. However,
such contributions will mainly consist of cofinancing
investment costs (if possible in cash, or else
in kind, e.g. local labour for construction or
raw materials) and maintenance costs, which will
be entirely borne by the SMEs, associations and
professional organizations. The estimated total
project cost also excludes beneficiary contributions
to the working capital and operational costs of
the MFIs. Government counterpart funding is estimated
at USD 2.7 million and will cover all taxes and
duties.
SUMMARY OF PROJECT COSTS
(USD ’000)
Components |
Local |
Foreign |
Total |
% of
Foreign
Exchange |
% of
Base
Costs |
1. Capacity-building |
|
|
|
|
|
| Awareness-raising and mobilization |
153.6 |
115.8 |
269.4 |
43 |
2 |
Basic capacity-building |
1197.0 |
257.1 |
1 454.1 |
18 |
10 |
Policy support for SMEs |
129.2 |
226.8 |
356.0 |
64 |
2 |
Subtotal |
1479.8 |
599.7 |
2079.5 |
29 |
14 |
2. Support to rural SMEs |
|
|
|
|
|
| Support to management and technical
skills training
|
1529.5 |
655.5 |
185.0 |
30 |
15 |
| Marketing support |
549.4 |
249.6 |
799.0 |
31 |
5 |
Technical support and assistance |
1036.4 |
2343.7 |
3380.2 |
69 |
23 |
Subtotal |
3115.3 |
3 48.8 |
6364.2 |
51 |
43 |
3. Support to microfinance institutions
|
|
|
|
|
|
Support to banks and formal MFIs |
878.0 |
64.0 |
942.0 |
7 |
6 |
Support to local financial centres |
1592.7 |
516.1 |
2108.9 |
24 |
14 |
Subtotal |
2470.7 |
580.1 |
3050.9 |
19 |
21 |
| 4. Project coordination and
management |
|
|
|
|
|
PCU establishment |
1587.2 |
254.8 |
1842.0 |
14 |
13 |
| Provincial offices |
1162.8 |
211.7 |
1374.5 |
15 |
9 |
Subtotal |
2750.0 |
466.5 |
3216.5 |
15 |
22 |
Total base costs |
9815.9 |
4895.2 |
14711.1 |
33 |
100 |
| Physical contingencies |
509.5 |
345.6 |
855.1 |
40 |
6 |
Price contingencies |
1670.7 |
329.3 |
2000.0 |
16 |
14 |
Total project costs |
11996.1 |
5570.1 |
17566.2 |
32 |
119 |
|
