DECENTRALIZATION SUPPORT FUND

The MOE"s Department of Economic Cooperation and Trade with Developed Countries will allocate an initial $2.3 million to each rural governorate for equipment that will be used to upgrade social services to rural populations and improve existing governorate-wide infrastructure. Such equipment will include septic tank cleansing units, garbage trucks, ambulances and communications devices, graders, loaders, bulldozers, water sewerage pumps, utility vehicles, calculators, projectors, and health and educational aids. Equipment criteria will stipulate that equipment be in general conformance with the 5-year plan; cost-effective and appropriate for its intended use; of benefit to a broad segment of the population; within the financial capabilities of the governorate to maintain it; and necessary in relationship to the type and amount of equipment already owned by the governorate. Restrictions will be placed on the use of the equipment, e.g., that it be used only by governorates in maintenance capacities. The MOE"s Central Department for Local Government (CD) will channel TA for planning and budgeting to governorates, confirm that equipment submissions meet criteria requirements, consolidate similar equipment where possible, as well as oversee actual procurement, port handling, customs clearance, and internal distribution of the equipment. With this TA, which will be provided by a Technical Liaison Group (TLG) composed of eight experts of the Egyptian private sector, governorates will analyze their respective capital assistance needs, develop performance and technical specifications, and submit proposed equipment lists to the CD. The TLG will also assist the CD in their responsibilities. Once approved by CD, bidding for supplying the requested equipment will be initiated in Washington by AID/SER/COM.