MUNICIPAL ENTERPRISE DEVELOPMENT

GRANT COMPLEMENTS LOAN 027 AIMED AT INSTITUTIONALIZING INFOM. ACTIVITIES, TO BE IMPLEMENTED BY AITEC AND INFOM, WILL BE IN TWO PHASES. FIRST, FROM 150 MUNICIPALITIES CLASSIFIED ACCORDING TO POPULATION, SIZE, AND ECONOMIC ACTIVITIES, 50-60 WILL BE CHOSEN FOR FIELD STUDY TO DETERMINE THOSE WITH GREATER POTENTIAL FOR BEGINNING ENTERPRISES. STUDY RESULTS WILL BE ANALYZED AND 20-25 POSSIBLE ENTERPRISES WILL BE CHOSEN FOR IN-DEPTH ANALYSIS AND FEASIBILITY STUDIES. OF THESE, 3-5 OUTSIDE THE EARTHQUAKE-HIT AREAS WILL BE CHOSEN, BY INFOM ALONE, FOR IMPLEMENTATION. ENTERPRISES WILL BE THOSE WHICH PROVIDE A DIRECT SERVICE TO LOCAL CITIZENS AND STIMULATE LOCAL PRODUCTION/INFRASTRUCTURE DEVELOPMENT, EG, A GRAIN STORAGE FACILITY, A BLOCK AND BRICK FACTORY. IN PHASE TWO, INFOM WILL CONDUCT A CREDIT ANALYSIS OF THE 3-5 ENTERPRISES, EXTEND THEM CREDIT, AND DESIGN AND CONSTRUCT ANY NEEDED PHYSICAL FACILITIES. INFOM AND AITEC WILL PROVIDE TECHNICAL ASSISTANCE IN MANAGEMENT/ADMINISTRATION THROUGHOUT IMPLEMENTATION AS WELL AS SHORT PARTICIPANT TRAINING COURSES IN ADMINISTRATION FINANCE AND PRODUCTION, ACCOUNTING, MARKETING, AND THE LIKE. IN ADDITION, ORIENTATION WILL BE PROVIDED TO THE USERS OF THE SERVICES OF THE ENTERPRISES AND CONTACT WILL BE MADE WITH REPRESENTATIVES OF OTHER RESOURCES AND INSTITUTIONS TO DRAW THEM INTO THE PROJECT. FEASIBILITY STUDIES OF THE OTHER 20 PRE-SELECTED ENTERPRISES WILL BE COMPLETED. AITEC WILL ALSO DESIGN AND IMPLEMENT AN EVALUATION SYSTEM TO PROVIDE FEEDBACK ON PROJECT PROGRESS AND INFORMATION ON THE VIABILITY AND IMPACT OF THE ENTERPRISES. BECAUSE OF THIS EVALUATION AND THE CLOSE COLLABORATION WITH VITAL INFOM INTERESTS, THE PROJECT IS ASSURED OF BEING EXPANDED AND INSTITUTIONALIZED.