PVO co-financing

PVOs to conduct subprojects (SPs) in Nicaragua in priority areas such as primary health care, family planning, employment generation, microenterprise development, and natural resource management. A private firm contracted to serve as the Project Management Unit (PMU) will oversee and manage all SPs. Only U.S. PVOs will be eligible for the project grants, which will range in size from $0.5 million to $3.0 million. Grant proposals will be judged on the basis of, inter alia, the degree to which the proposed activity is participatory, focuses on the needs of the poor, and encourages involvement by women. Grants to International Medical Corps (health), Mennonite Economic Development Associates (microenterprise), CARE (environment), and Catholic Relief Services (health) are planned for the fourth quarter of FY91. Due to the severe limitations affecting them, local PVOs (LPVOs) will not be eligible to receive grants; however, U.S. grantees will be encouraged to work with LPVOs and other local organizations in order to tap local knowledge about the needs of target populations and strategies for meeting these needs, and also to improve the LPVOs" capacities to manage small development activities. USAID will strongly urge grantees to conduct a portion of their SP operations with LPVOs and to provide the LPVOs with TA and training in management and accounting. In addition, the PMU will conduct a pilot TA and training program in SP design, management, and financial management to further assist LPVOs. It is hoped that some of the LPVOs will become capable of meeting A.I.D. financing requirements and possibly even of branching off to other financial backers. Amendment of 1/14/94 provides additional funds for grants to U.S. PVOs for SPs in the areas of maternal/child health, employment generation/microenterprise development, and environmental protection; four new child survival and three microenterprise SP proposals are under consideration. (PD-ABI-430)