Agribusiness promotion

The project will be implemented mainly by the Central Bank (FIDE) and the Dominican chapter of the private-sector Joint Agricultural Consultative Corporation (JACC/DR). JACC/DR will establish a 4-person TA unit (3 members will be Dominicans) to: (1) help potential agribusiness investors analyze their credit needs and prepare feasibility studies and business plans; (2) conduct market and technical studies for clients and provide problem-oriented TA; (3) help potential foreign and domestic AB investors to conduct preinvestment studies and develop investment strategies; and (4) work with other organizations to provide management training and to promote policies favorable to agribusiness. Relying on user fees, the unit is expected to become self-sufficient in 3 years. A special fund (operated by the Development Bankers Association) will finance the feasibility studies and business plans mentioned above, while a grant to the Trade and Development Program will assist potential U.S. investors. To strengthen the ability of financial institutions -- especially development banks -- to participate in agribusiness credit fund which the project will establish, TA will be provided under the supervision of the Association of Development Banks. A majority of the 180 staff members of development banks, along with 15-20 commercial bank staff, will also benefit from seminars (organized mostly by Instituto Superior de Agricultura). Short courses will also be provided by the Association of Latin American Development Financing Institutions. The credit fund will provide financing to 80-90 new or expanded agribusinesses of at least 40% Dominican ownership. Participating banks will be responsible for appraising and approving loans and will assume commercial risk. Joint ventures between Dominican and foreign investors, new entrepreneurs, and key raw materials producers will be encouraged. Lastly, TA and training will be provided to Secretariat of Agriculture"s Plant Health Division to support preclearance and certification of nontraditional agricultural exports to the United States. Amendment of 9/22/89 extends the PACD to 12/31/92 and puts increased emphasis on expanding JACC"s institutional and service delivery capabilities. Institutional strengthening will include the provision of a financial and an institutional consultant, training for JACC management staff, and office equipment, computers, etc. In the area of services, the project will fund TA to develop or expand: pre-inspection of exports; laboratory services (e.g., testing soils, pesticide residue, and water quality); commercial information services; and TA and training for members. (PD-ABC-754)