AID grant to the Central American Research Institute for Industry for a program which responds to the technical service needs of Central American export oriented industries

The project will: help ICAITI to develop a market assessment and business strategic plan; reorient ICAITI technically; and improve ICAITI support systems. In order to establish the framework for the other components, the project will conduct a market assessment to identify areas in which ICAITI has a clear comparative advantage in serving the region"s private sector, estimate the present and future demand for these services, and identify those services which ICAITI can deliver on a full cost-recovery basis. The services identified in this assessment will be promoted through specific, client-targeted campaigns. In a related effort, the project will design a strategic business plan and establish procedures and criteria for identifying and introducing new services and pricing structures. The principal objective of this planning exercise, which will be implemented in a way which maximizes private sector input, is to develop a long-term institutional strategy for ICAITI in regard to financial viability, resource allocation, priority-setting, and ICAITI"s institutional role in the region, as well as to define the actions needed to realize this strategy. A second component will evaluate ICAITI"s technicians, facilities, and equipment and reorient them to the demands of the new menu of service identified in the first component. Activities include, inter alia, reassigning/retraining current staff, estimating TA needs, developing a training plan reflective of the Institute"s new goals, upgrading or replacing light equipment used by technicians providing onsite services, and developing marketing techniques to promote the sale of ICAITI services and a promotional strategy for prioritized services on the basis of clientele data and ICAITI"s privileged position within the existing regional network. A final component will improve key support systems such as (1) overall management, supervision, and teamwork within ICAITI; (2) financial planning, management, and controls; (3) technical support (with particular emphasis on giving ICAITI a capability to contract experts rapidly, yet competitively and on forming working relationships with international sources of specialized expertise); and (4) internal performance, productivity, and self-evaluation. Amendment (Grant) of 5/7/91 provides ICAITI with bridge financing until proposed funding from the InterAmerican Development Bank begins in the summer of 1991. This accords ICAITI a transitional period in which to refine the strategic planning process and the support systems developed under the present project. (PD-ABD- 232)