RURAL MUNICIPAL DEVELOPMENT

The Ministry of Government"s Municipal Development Division (MDD) will implement this project which will also strengthen the institutional capacity of MG"s to provide these services. MG"s will be granted loans through a Municipal Credit Fund which will be established to implement local development subprojects with MDD technical assistance. Qualifying self-financing subprojects will be funded with loans at a 14% annual interest rate. Public works subprojects (e.g., water systems) will obtain loan funds at a yearly interest rate of 8%. Eight slaughterhouses and 15 marketplaces will be constructed or improved to provide lower class residents with regular access to sanitary and relatively inexpensive goods, while ensuring that farmers and artisans have direct market access for their wares. Eight sewage and drainage systems and 10 potable water systems will be built or upgraded, providing the poor with improved health, sanitary living conditions, and employment in system construction and maintenance. Eight subprojects to construct and upgrade streets and roads will be implemented, providing MG"s with equipment to maintain farm-to-market roads. Six subprojects based on individual MG needs will also be implemented, such as electrification and the provision of garbage trucks. Legal assistance will be employed to expand the financial resource base of MG"s. National legislation relevant to MG"s will be updated and revised, as will MG tax codes; and the MG"s will be assisted in providing legal aid to the rural poor. To improve MG administration, accounting procedures will be modified and standardized and MDD will assist MG officials to plan budgets that accurately reflect operational costs and investments. Through its field monitor system, MDD will help MG"s develop their ability to identify, design, and implement subprojects. MDD and outside contractors will train MG personnel in basic office skills (e.g., accounting) and in the present and potential role of MG"s in development.