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

 

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