Shelter and urban planning

The project will continue and expand the institutional development efforts of earlier HG programs. To strengthen BHN"s financial base, HG funds will be channeled as a capital contribution to BHN, while to increase its independence from MIVI, BHN will take over lending and collection functions previously performed by MIVI. BHN will work to increase lending by savings and loan associations (some of which will also receive TA under the project) for low and middle-income housing, and to expand the secondary mortgage market, in which BHN itself and the social security system will play leading roles (further augmenting BHN access to capital). Training and TA will be provided to help BHN in these endeavors and to improve its overall financial planning and management (e.g., internal control, credit review procedures, cash flow, investment policies). BHN is expected to have resources of $15 million by 1986. Training and TA will also be provided to help MIVI and the Ministry of Planning and Economic Policy (MIPPE), in conjunction with a newly established commission for reverted Canal Zone areas, in long-range planning for the Panama City metropolitan area. The Ministries will conduct an urban development assessment and update an earlier shelter sector assessment. MIVI will also be helped to: strengthen cost controls; deal with environmental considerations in project planning/execution; expedite identification and selection of beneficiaries; and increase its use of computer technology.