Mahaweli enterprise development

The Mahaweli Authority"s Employment, Investment and Enterprise Development Division (EIED) will implement the project, which complements agricultural diversification efforts under 3830086. EIED will conduct a series of special studies to identify policies and procedures that constrain the private sector. Illustrative topics include: land allocation criteria; water access regulations; and tariffs and statutes affecting small businesses. EIED will use the studies" findings to (1) clarify rules and procedures affecting potential investors, and (2) promote adoption of improved policies and procedures. A field-based entrepreneur development program will provide TA and training to help 750 entrepreneurs (mostly young) establish businesses. Graduates will be invited to join savings and loan associations (S&L"s), and to deposit Rs.1,000-5,000; a project grant will match the amount in order to help the individual establish loan collateral. Some 20% of project trainees are expected to join S&L"s and establish viable businesses. The project will also provide TA and training to about 900 existing small- and microentrepreneurs, half of whom are also expected to join the S&L program. In addition: (1) small enterpreneurs will receive access, at cost, to support services (e.g., typing, telephones), and (2) a pilot land tenure program will distribute some 750 small plots to entrepreneurs. The project will seek to stimulate investment in medium and large ventures also, with a initial focus on commercial agriculture. Forty potential investors will receive TA and seminars to help them explore products, markets (especially abroad), and technologies and to negotiate contracts; the project will also share the costs of product development. Investors who implement specific ventures - some 20 are targeted - will receive TA as long as it is essential to developing knowledge for the industry as a whole. The project will also provide small grants to encourage the development of trade associations or chambers of commerce, and it will establish a comprehensive information service for agribusinesses. A special projects fund will be available for activities that support enterprise development, small and large. Grants will be provided for both public goods and private sector activities with broad spread effects. Finally, the Government of Sri Lanka covenants to encourage private sector development in the Mahaweli areas.