AZORES REHABILITATION AND RECONSTRUCTION

Project consists of reimbursing the Fund for Assistance and Reconstruction (FAR) for mutually agreed upon expenditures. The Office of Assistance and Reconstruction (GAR) will implement the project. The primary expenditures to be reimbursed include: (1) building materials such as cement, steel, wood, and nails, for self-help construction of private homes; (2) prefabricated units for temporary housing, shops, or GAR offices; and 3) transportation by sea and land of the above materials. Local village councils will distribute the building supplies according to GAR"s current policy, as follows: villagers whose monthly per-capita income is $100 or less will be eligible for free supplies; those with monthly incomes from $100-$220 will repay 50% of the supplies given; and those with higher per-capita incomes will repay 80% of the supplies given. Costs will also be provided for 131 prefabricated housing modules for low-income urban families currently living in tents; and for 37 metallic prefabricated units for commercial enterprises. Types of prefabricated units to be provided include 2- and 3-bedroom units, emergency housing units, and small office/commercial units. Most housing units will be reserved for low-income families who will be eligible for rent subsidies according to the number of dependents. The commercial prefabricated units will not provide storage or warehousing facilities. Sea and land transportation costs (which will be unusually high due to the remoteness of the three affected islands) will be reimbursed. Other expenditures eligible for reimbursement include petroleum products for construction and repair, technical assistance, city and town rehabilitation, and other equipment. Ineligible items for reimbursement include salaries for RGA employees; vehicles; certain RGA housing construction contracts; interest subsidies on special lines of credit; and taxes related to the provision of goods and services.