OPG proposal : USAID/Costa Rica, Confederacion Costarricense de Trabajadores Democraticos - CCTD

The project consists of institution building, credit, marketing, TA, and training activities. (1) Personnel will be hired and operating procedures will be developed in order to upgrade AUD"s administrative capacity. AUD professional staff will consist of a head administrator, an accountant, a secretary, and various other personnel. Staff salaries, which take up a large portion of project expenditures, will be subsidized until AUD can become self-sufficient. Operating procedures, including an accounting system, operating manuals, and personnel management methods, will be developed. (2) Given the economic risk of establishing an independent agricultural credit institution, AUD will act as an intermediary between clients and national and international lenders. After AUD"s credit system, based on a group lending concept, is proven effective, AUD will attempt to transfer both the concept and group clients to the national banking system. The Inter-American Development Bank will provide the initial seed capital for the credit program, and A.I.D. will provide a contingency fund to bridge credits while the main loan is being negotiated. (3) A cooperative marketing system will be developed to market a major portion of the crops currently produced and, eventually, new crops introduced for specific export markets. AUD will attempt to establish itself as the sole marketing agent for CCTD affiliates, providing them with a guaranteed outlet for their produce at the highest attainable prices. (4) Both marketing and agronomic TA will be provided to small farmers to ensure that their agricultural products will be successfully marketed. (5) Important organizational development activities will be conducted including training at three levels: orientation for new CCTD affiliates, intermediate leadership training, and national leadership training.