USAID NICARAGUA"S INDUSTRIAL DEVELOPMENT PROJECTS

THE AUDIT USED GENERALLY ACCEPTED AUDITING STANDARDS AND MADE USE OF VARIOUS PROJECT DOCUMENTS. THIS REPORT CONSTITUTES THE END OF PROJECT REPORT FOR THE GRANT IN CONJUNCTION WITH PROJECT APPRAISAL REPORT DATED 1/10/75. OBJECTIVES OF BOTH PROJECTS WERE SATISFACTORILY ACHIEVED. THROUGH THE LOAN (AND ITS PRECURSOR LOAN 009) THE BANK PROVIDED FINANCING FOR 91 HIGH RISK ENTERPRISES WHICH INCLUDED THE CREATION OF 7 NEW FIRMS AND THE EXPANSION AND MORE EFFECTIVE OPERATION OF 84 OTHERS. MOREOVER, THE BANK HAS APPARENTLY DEVELOPED TO A POINT WHERE FUTURE SUBLOAN ACTIVITY CAN BE CONTINUED WITHOUT FURTHER EXTERNAL ASSISTANCE. ANNUAL OPERATING LOSSES OF ABOUT $1.1 MILLION IN 1968 HAVE BEEN REDUCED TO $245,000 IN 1973. AS A RESULT OF THE $479,000 GRANT TO CADIN AND THE EXPORT PROMOTION CENTER (EXPORTEMOS), MORE THAN 50 INDUSTRIES HAVE RECEIVED TECHNICAL ASSISTANCE IN AUGMENTING THEIR EXPORT MARKETS THROUGH TRAINING AND RESEARCH ACTIVITIES. CADIN ALSO COMPLETED AN ANALYSIS FOR DETERMINING THE FIXED INVESTMENT AND WORKING CAPITAL REQUIREMENTS OF THE INDUSTRIAL SECTOR WHICH WAS USED BY THE GOVERNMENT TO AID RECOVERY FOLLOWING THE 1972 EARTHQUAKE. ALSO, SALARIES OF CADIN AND EXPORTEMOS EMPLOYEES ONCE PAID BY GRANT FUNDS ARE NOW PAID BY THEIR EMPLOYERS. WITH MINOR EXCEPTIONS, MISSION MONITORING OF THE TWO PROJECTS WAS SOUND. THERE APPEARED TO BE NO MANAGERIAL DEFICIENCIES IN IMPLEMENTATION, THOUGH IT IS RECOMMENDED THAT A FINAL LOAN REPORT BE FILED.