Agribusiness employment/investment promotion

(LAAD). The project will focus on supporting private, labor intensive, processing-type enterprises in order to provide guaranteed markets for non-traditional small farmer crops, thereby increasing employment and income among small farmers and landless laborers. LAAD will make funds available on a loan or equity basis and will provide technical assistance through 23 subprojects in the areas of food production, agricultural inputs, processing, packaging, storage, and transportation in order to expand production, develop new products and marketing opportunities, and increase foreign exchange earnings in the region. Examples enterprises likely to be assisted include canning and freezing of fruits and vegetables, cut flowers and ornamental plant culture, oil extraction, and hybrid seed production. Small businesses will be encouraged to service small farmers" technical needs. Women are expected to hold 80% of the labor intensive positions and 40% of the 3,000 jobs generated by the project. A major feature of the project will be to tap the private Latin American capital market; specifically, $6 million in matching loan funds will be sought from private sources, one-third of this will be designated for Central Amerca. This private funding will provide LAAD with a continuing high current ratio and an acceptabe liquidity level and will support LAAD"s efforts to diversify. LAAD will also attempt to raise $1.5 million in equity capital to provide a broader base for future borrowing.