Honduras Federation of Industrial Cooperatives (FEHCIL)

Final PES covers the period 9/80-10/81 and is based on discussions between USAID/H and FEHCIL personnel and a review of project documents. FEHCIL assisted in affiliating five cooperatives and in organizing five pre-cooperatives and also provided assistance through 92 visits, averaging a day in length, to 15 cooperatives and pre-cooperatives. After the project ceased (see below), FEHCIL organized seven additional cooperatives and made 57 additional visits to 18 cooperatives and pre-cooperatives. Some 22 artisanal and small manufacturer cooperatives, comprising 909 individual firms, are now associated with FEHCIL. In addition, a revolving door fund has provided loans of Lps. 15,750 each to two member cooperatives, one for raw materials and the other for marketing and procurement. After a short delay, the shoemakers cooperative repaid its loan; the carpenters have been given an extension in order to reinvest in new inventories. Recently, two new loans of Lps. 10,000 each have been made. FEHCIL"s training program has exceeded all goals by giving more courses (13), involving more cooperatives (45), and training more individuals (301) than the planned 11 courses, 36 cooperatives and 103 individals. The unplanned need to utilize other development institutions to provide much of the training allowed for greater variety in course selections and for more persons to receive training. The project was originally supposed to receive ongoing funding from the IAF (Inter-American Foundation), but delays in that process curtailed many planned FEHCIL activities after USAID/H funding ceased in 2/81 (a one-month no-cost extension was allowed by the Mission). IAF finally awarded a 3-year grant of $253,915 in 8/81. Project experience has taught that absolute certainty of continued funding is required if a program"s survival is not to be jeopardized by delays in the proposal process; that 6-month funding is insufficient if an organization is to be able to withstand a crisis; and that it is important to explore all avenues of external assistance to a project.