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Crecimiento Econ6mico Equitativo Rural

91 Avenida Norte No.707, Colonia Escalon, San Salvador. TEL: (503) 264-2009 e-mail: crectech®elie.com

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RURAL EQUITABLE ECONOMIC GROWTH ACTIVITY

Contract No. SI9-C-OO-94-001S4-00

2000 WORK PLAN

Submitted to:

United States Agency for International Development (USAID)

by:

Chemonics International Inc.

with

Instituto Interamericano de Cooperaci6n para la Agricultura (IleA) National Cooperative Business Association (NCBA)

World Council of Credit Unions (WOCCU)

January 1999

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2000 WORK PLAN

January 1999

Rural Equitable Economic Growth Activity Contract No. 519-C-00-94-00154-00

U.S. Agency for International Development Washington, D.C.

This work was supported by the U.S. Agency for International Development, through contract number 519-C-OO-94-00154-00, the prime contractor for which is Chemonics International Inc.,

1133 20th Street, Washington, D.C. 20036; Tel. 202-955-3300.


SECTION I

SECTION II

ANNEXA ANNEX B

TABLE OF CONTENTS

ACRONYMS

OVERVIEW I-I Introduction I-I A. Scope I-I B. Implementation Strategy 1-2 C. Monitoring and Evaluation (M&E) 1-3 D. Results to Date 1-3

WORK PLAN II-l A. Rural Agricultural Enterprises II-I B. Non-Agricultural Rural Enterprises II-15 C. Rural Financial Enterprises II-23 D. Sectorial Policy Component II-35 E. Monitoring and Evaluation II-43 F. Key Lessons Learned During 1998 II-·+3 G. Budget II-45

EXPATRIATE CONSULTANTS DURING 1999 A-[ [999 TRAINING EVENTS B-[


AGRODESA

ADECPRO

ASID

BASIS

BCIE

BCR

BMI

BOLPROES

CAMAGRO

CENTA

CIDA

CODEUSMI

COMINCO

COMUS

CONFRAS

CONFENACOA

CONSALCOOP

ACRONYMS

Asociacion Agropecuaria para el Desarrollo (Agricultural Development Association)

Asociacion de Desarrollo comunal el Progreso (Association of communal Development)

Salvadoran Association for Integration and Development

Strengthening Input Market Systems project

Banco Centroamericano de lntegracion EconOmica (Central American Bank for Economical Integration)

Banco Central de Reserva (Central Reserve Bank)

Banco Multisectorial de lnversiones (Multi-sectorial Investments Bank)

Bolsa de Productos Agropecuarios de El Salvador (Agricultural Commodity Exchange)

camara Agropecuaria y Agroindustrial de El Salvador (Agricultural and Agroindustry Chamber)

Centro Nacional de Tecnologfa Agropecuaria (National Center for Agricultural Technology)

Canadian International Development Agency

Comunidades para el Desarrollo (Communities for Development)

Comire Centroamericano de Ministros de Economia (Central American Ministries of Economy Committee)

Comunidades Unidas de Usulutan (United Communities of Usulutftn)

Confederacion de Federaciones de /a Reforma Agraria Salvadorena (Confederation of Federations of the Salvadoran Agrarian Reform)

Confederacion Nacional de Cooperativas Agropecuarias (National Confederation of Agropecuarian Cooperatives)

Confederacion Salvadorena de Cooperativas (Salvadoran Confederation of Cooperatives)

CORALAMA

CORDES

CRECER

CRS

CU

DAA

DANIDA

DGEA

DGSVA

DIGESTYC

ESEN

EU

········FEDECACES

IDES

I1CA

INSAFOCOOP

IRR

"

IVA

MAG

Asociacion Cooperativa de fa Reforma Agraria La Maraflonera de R.L. (Cashew Agrarian Reform Cooperative)

El Salvador's Foundation for Communal Cooperation and Development

Rural Equitable Economic Growth activity

Catholic Relief Services

Credit Union

Departamento de Asociaciones Agropecuarias - MAG (Agricultural Associations Department)

Danish International Development Agency

Direccion General de Economia Agropecuaria y Forestal (Office of Agriculture and Forestry Economics)

Direccion General de Sanil/ad Vegetal y Animal (Office of Vegetable and Animal Health)

Direccion General de Estadisticas y Censos (General Office of Statistics and Census)

Escuefa Superior de Estudios Economicos (National University of Economics)

European Union

.. Pederacion-de-Cooperativas-deAhorro y Cremto de EI Salvador (Federation of Savings and Loans Cooperatives of El Salvador)

lniciativa para el Desarrollo Economico Social (Initiative for the Economical and Social Development)

lnstituto lnteramericano de Cooperacion para fa Agricultura (InterAmerican Institute for Cooperation in Agriculture)

lnstituto Salvadoreno de Fomento Cooperativo (Salvadoran Institute for cooperatives Affiliation)

Internal Rate of Return

lmpuesto al Valor Agregado (Value Added Tax)

Ministerio de Agricultura y Ganaderfa (Ministry of Agriculture and Livestock)

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I I I I I I I I I I I I I I I

•

I


MES

MINECON

MOJE

M&E

NBFI

NCBA

NGO

NUES

OAPA

PERLAS

PREXA

PROCAFE

RFE

ROCA

SES

SIC

SO

SOCOPU

SSF

UCRAPROBEX

Micro-region EconOmico Social (Economical Social Micro-region)

Ministerio de Eeonomia (Ministry of Economy)

Movimiento de Jovenes Encuentristas (Young People Movement)

Monitoring and Evaluation

Non-Banking Financial Institutions

National Cooperative Business Association

Non-governmental organization

National University of EI Salvador

Oficina de AlUilisis de Polideas Agropecuarias (Agricultural Policy Analysis Office)

Proteecion, Estructura jinanciera, Rendimientos y cost os, Liquidez, Activos improductivos, Senales expansivas (financial indicators; Protection, Financial Structure, Revenues and Costs, Liquidity, Improductive Assets, Extension Signs)

Procesadora y Exportadora de Ajonjolf (Sesame Seed Refiner and Exporter)

Asociacion de Productores de Cafe (Coffee Producers Association)

Rural Financial Enterprise

Rural Organization and Conservation Activity

Sistema Eeonomico-Social (Socio-Economic System)

Sistema de Informacion Comercial (Commercial Information System)

Strategic Objective

Sociedad de Cooperativas Productoras de Usulutan (Society of Producer Cooperatives of Usulutful)

Superintentiencia del Sistema Financiero (Financial System Superintendency)

Union de Cooperativas de La Reforma Agraria Productoras, Beneficiadoras y Exportadoras (Agrarian Reform Cooperatives Union of Producers, Millers, and Exporters)

iii

UPREX

USAID

WOCCU

Union de Productores y Exportadores (Producers and Exporters Union)

United. States Agency for International Development

World Council of Credit Unions

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SECTION I OVERVIEW

Introduction

The Equitable Economic Growth Activity (CRECER) began on September 29, 1995 and is implemented by a Chemonics-Ied consortium composed of Chemonics International Inc., the National Cooperative Business Association (NCBA), the World Council of Credit Unions (WOCCU), and the Instituto Interamericano de Cooperacion para fa Agricultura (IlCA). This workplan covers the remaining months of the contract. It is anticipated that the majority of the activities will be concluded or in the process of concluding by June 2000.

A. Scope

The CRECER activity responds to USAIDIEI Salvador's Strategic Objective No.1 (SO 1), which calls for "expanded access and economic opportunity for the rural poor." The overall result expected in SO 1 is "expanded equitable access to financial, technological and marketing services by the rural poor," to be carried out by "increased coverage of sustainable secondary organizations providing technology and marketing services" and "increased coverage of sustainable financial institutions in rural areas." A necessary corollary is to modernize the state by reorganizing and simpiifying government institutions and by promoting a sound marKet-oriented macroeconomic policy regime, which reduces transaction costs. Overshadowing the strategic objective is the need for the Government of EI Salvador to coordinate and implement a national rural development and/or poverty reduction strategy .

The goal of the CRECER activity is to promote a more equitable distribution of economic development initiatives and provide access to resources that benefit rural areas, which in tum will help reduce rural poverty. To achieve this goal, CRECER is implementing a two-fold strategy:

• Providing strategic assistance to rural enterprises (financial, agricultural, and nonagricultural) to make them profitable, competitive, and sustainable. These rural enterprises, in tum, will provide targeted, cost-effective, and sustainable financial, technological, and marketing services to the rural poor.

• Conducting policy analysis and dialogue to improve institutional and economic policies that affect rural enterprise operations.

The purpose of CRECER's strategy is to:

• Expand the rural population's access to basic services and reduce transaction costs, thereby promoting high-quality, competitive products and services.

•

•

Support diversification of agricultural production and services and promote non-agricultural income opportunities.

Strengthen capabilities of financial intermediaries to provide savings and lending services to the rural population.

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I

GREGER Project - Work Plan 1999-2000

• Create institutional mechanisms and policy framework to support and stimulate investment in rural enterprises.

By its scheduled completion date of September 30,2000, CRECER's anticipated final results include:

• Strengthened rural enterprises (agricultural and non-agricultural) that provide marketing and other services to small farmers and rural entrepreneurs.

• Strengthened rural financial enterprises (RFEs) that provide savings and lending services to the rural poor.

• Strengthened public (OAPA and DGEA) and private sector capacity to collect and analyze data and to promote policy and regulatory changes needed to stimulate productive investment in rural areas.

• Sectoral policy environment in agriculture and rural industry conducive to an increase in investment, which will lead to employment and income gains for poor rural households.

B. Implementation Strategy

Approximately 66 percent of rural Salvadoran families live in poverty, and 25 percent in extreme poverty. Since poor rural families are almost equally divided between the non-agricultural and agricultural sectors, a rural development strategy must expand non-agricultural opportunities for income generation and, simultaneously, reactivate the agricultural sector. The center of this two-prong strategy is the rural enterprise,l and its managers and staff. Improving rural enterprises' operations and output is key to ensuring the rural population's (including the rural poor) equitable and competitive access to products and markets. Therefore, rural enterprises and their staff are the focus of CRECER's implementation strategy, which is designed to overcome key obstacles impeding sustainable and competitive development of rural enterprises. Rural enterprises can include:

• First level institutions, such as production enterprises.

• Second level institutions, such as agricultural marketing and production cooperatives, and credit unions.

• Support institutions, such as the agricultural Policy Analysis Office (OAPA) now called the ODE - Office of Strategic Management, the Agricultural Commodity Exchange (BOLPROES), and National Center for Agricultural Technology (CENTA).

I For purposes of CRECER, rural enterprises are defined as financial, agricultural, and non-agricultural enterprises, producing goods or services that benefit people living in rural areas. As per contract (page 6) rural areas are dermed as all of EI Salvador outside of the San Salvador metropolitan area.

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Based on CRECER's implementation experience, the strategy focuses on providing technical assistance, training, and information services in three complementary areas that affect sustainable rural enterprise development: Enterprise Business Management, Institutional Assistance and Strategic Alliances. These areas transect the various components of the CRECER activity .

Enterprise Business Management is defined as direct support to CRECER clients: agrarian reform cooperatives, credit unions, artisan coops or agroindustries. This area of support continues to be the mainstay of the CRECER project. The assistance is provided in an integrated manner, and is adjusted continuously based on a firm's specific and changing needs and progression within each area of assistance. The majority of the assistance is targeted to the individuals comprising the enterprise, specifically the Board of directors and line managers.

Institutional Assistance is defined as direct support to a variety of institutions which are essential to the efficient development of rural enterprises. (See Figure 2 for representative listing of Institutional Entities working with CRECER). The relationship can take various forms: as a recipient of direct technical assistance support as in the case of CENTA, FEDECACES and BOLPROES; as a collaborating institution, such as with DAA; or as a participant, such as in the case of the Central Bank and Superintendency offices.

In the case of participant organizations, CRECER is providing support to government institutions such as Central Bank and superintendency offices by facilitating their active participation in field trips, workshops and seminars, in the review and/or receipt of relevant project documents and information, outputs, and related activities. This is to enable them to become knowledgeable about the CRECER philosophy and

Figure 2: REPRESENTATIVE INSTITUTIONS

RECEIVING CRECER SUPPORT

CENTA DAA DGEA FEDECACES OAPA

CONFRAS SSF Min of Economy Universities Government

strategy pertaining to their respective interests, and to foster their becoming stakeholders and participants in achieving CRECER's ultimate objective: promoting equitable economic development in rural areas.

CRECER also supports project beneficiaries in their dealings with the government and other institutions. This assistance has taken the form of providing strategic advice in the negotiations leading to debt restructuring, in the legal constitution of a cooperative, and in registering a trademark among others.

c. Monitoring and Evaluation (M&E)

A unique feature of CRECER is its in-house ability to monitor and evaluate project activities, and to survey opinions to guide activity design and implementation. Since its role is to establish a baseline against which project results and impacts can be measured, M&E is essential to the principal activity areas.

D. Results to Date

As confirmed in quarterly reports, the CRECER project is on target in regard to achieving its end of project outputs and having a positive impact on rural economic development. The

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3

CRECER Project - Work Plan 1999-2000

demand for services as provided by each of the components is visible, the intended beneficiaries-the rural poor- are receiving services, and the project is having significant impacts in both tangible and intangible terms.

The status of the reported results and indicators for each component is provided in their respective section of the work plan. Proposed activities and sub-activities to achieve these results are detailed within each section.

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A. Rural Agricultural Enterprises

SECTION II WORK PLAN

The objective of CRECER's Rural Agricultural Enterprise team is to work with rural agricultural enterprises to strengthen their ability to offer quality, efficient and sustainable services to their members and clients in a manner that provides the greatest possible returns to the rural poor. This objective is market-oriented and directed principally to secondary-level organizations, whose members are the primary level cooperatives, agroindustries and producer groups serving the rural poor. These secondary-level organizations include (a) service organizations, (b) agroindustries and (c) regional organizations. Very limited technical assistance will be provided to the primary-level organizations that are members and/or clients of the secondary-level enterprises.

The strategic focus of this work has been and will continue to be in four main areas of business management: administration, finance, economics and production. The rationale behind this strategy is based on the realization that each enterprise functions as a whole and therefore needs to have each operational area functioning in an efficient manner. A group of nine specialists, four short term local consultants and a coordinator are assigned to work with CRECER's rural agricultural enterprises component. The coordinator provides technical management and supervision of the specialists.

The following chart snmmarizes the current and projected status of work by the Agricultural Enterprises Team and details the activities and sub-activities which will be carried out during the remainder of the contract to achieve the projected results. This information is summarized according to USAIDIEI Salvador's intermediate and base results where possible.

NOTE: As this 2000 work plan was presented with the 1999 work plan, some activities that were includeain the 1999 work plan, but will not be implemented in 2000, are marked with an "0". Work plan 2000 activities are marked with an "x" •

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CRECER End of Status to Dec. 31, 1999 End of Project Activities Sub-Activities Quarters I Project Output Status

(Contract) June 30, 2000 1 2 3

An estimated 10,000 rural 11,590 agricultural producers (organized in More than 10,000 Improve the image of -Promote a business x x families will benefit. Measured cooperatives or as individuals) heads of agribusiness men will be those enterprises vision. by the nwnber of rural families families are receiving services (processing, receiving services such benefitting from x x receiving marketing and other marketing and credit) from the rural as credit, marketing and CRECER assistance. - Improve administration services from strengthened rural agricultural enterprises assisted by CRECER. agricultural systems towards a stable enterprises and organizations. Of these, 9,930 (85%) are affiliated to transformation from Expand member services and efficient operation. x

CRECER assisted organizations, the rest are enterprises advised by to a larger number of x affiliated to rural enterprises that use the CRECER. individual and collective -Promote and implement services of the CRECER organizations. The producers. marketing programs that non-agricultural component is assisting 182 include services and families. assets.

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\S'. 11-2

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- - - - - - - - - - - - - - - - - - -CRECER End of Status to Dec. 31, 1999 End of Project Activities Sub-Activities Quarters Project Output Status

(Contract) June 30, 2000 1 2 3' I

Thirty (30) member-owned 34 enterprises. 39 enterprises Develop and provide -Develop and consolidate x x I organizations: fifteen (15) at the follow-up to the the business vision

secondary level, including 8 service organizations, three of which are 12 businesses will be processes of Strategic through existing strategic agroindustries, and fifteen (15) members of the regional organization in delivering services in and Operational projections. affiliated primary level Sonsonate. marketing and other Planning. -Implement member organizations, producing areas to members and service- driven programs. diversified crops and delivering non-members in an Organizational -Improve the decision production, post-harvest 9 agro industries that process agricultural efficient manner. development that making processes by handling. processing, and products and by products. assumes a modern and means of revising and marketing services to their stable administration of reconditioning farmer members in a cost- 9 agroindustcies will the business and its organizational structures. effective manner. have improved their resources. - Develop administrative x x

processes and quality systems that will support control mechanism that program execution. will pennit them to expand member services. Advice and training in -Assist in areas of

business management. mark.eting, accounting, information, credit, production, industrial processing and legal aspects.

Promote strategic -Identify participants. alliances. -Define areas of possible

~-------. ~ - ~

integration. --L---. - --- '----------~~.---

--1 11-3


CRECER End of Status to Dec. 31, 1999 End of Project Activities Sub-Activities Quarters Project Output Status


15 primary level production 14 businesses dedicated to agricultural 11 businesses will have Help businesses adopt -Implement accounting 0 0

business dedicated exclusively production are being advised in production implemented a tools for planning. and internal control to agricultural production. planning and in administrative system and diversified program of production and systems. NOTE: as of January 1. 2000 internal controls. agricultural production administration. -Plan and organize an very limited technical assistance and have internal control agricultural production (follow up to accounting systems and a decision Help businesses diversify program. procedures and business plans) making process that will agricultural production. -Improve the marketing will be given to this allow them to evaluate mechanisms for goods 0 0

organizations their profitably and the produced. management of natural -Promote the production resources. of certified organic crops.

-Promote new techniques Three businesses will for traditional agricultural have initiated all the production. above processes but will -Implement accounting 0 0

not have reached 100% Provide training. and internal control completion in all areas. systems.

-Production planning. post harvest and rational use of pesticides.

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-------------- - - - --CRECER End of Status to Dec. 31, 1999 End of Project Activities Sub-Activities Quarters Project Output Status


Two (2) regional member- Work continues with the Western Regional A regional organization Develop and provide -Implement service x x owned organizations are Organization with a participation of five will have developed follow up to the oriented programs. profitably providing services to service organizations (Asociaci6n de services activities as well processes of Strategic -Improve decision making their members, such as: input Productores CREGER, ASID, ADECPRO and as have a defined and Operational process and reconditioning procurement and distribution, two federations CONSALCOOP and organizational and Planning that assumes a of organizational packing, storage, transport and CONFENACOA), which are developing operational structure. modem and stable structures. marketing. service activities (grain, marketing and administration of the -Implement administrative

agriculturaJ supply sales). business and its systems. An expansion has taken place into the A second organization resourceS. municipalities north of Sonsonate: will be formed with at Ahuachapan and Santa Ana fonned least two secondary departmental organizations which are organizations Promote the formation of projected to join with Sonsonate to form a participating, however strategic alliances. -Identify participants. x x truly regional organization. not all of the desired -Define areas of

services will be 100% integration. The sister regional organization in Lempa operational implemented Develop and consolidate Acahuapa or Paracentral region was at a profit. business vision within consolidated including three groups: the the organizations for -Develop a business x x Irrigation district of Lempa-Acahuapa, the future integration in an vision in the selected producers affiliated to CONSALCOOP and organization with a organizations.

I CONFENACOA, and the CORDES larger geographic -Carry out strategic and coordinated group in the Bajo Lempa (SES, coverage. operational planning. IDES, and MES).

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CRECER End of Status to Dec. 31, 19~.9 End of Project Activities Sub-Activities Quarters Project Output Status


Eight (8) agricultural producer CRECER technicians are currently Improved production Consolidate and increase - Promote and disseminate x x (coIllIOOdity specific) groups providing support through planning, techniques will have the productivity and new and better production receiving and/or delivering a marketing. processing and research for the been adopted which profitability of new and post harvest range of production, marketing. following commodities: coffee, cashew, implies improvement in commodity groups and techniques . technical and legal assistance, as sesame, vegetables. Lemon grass, and productivity and the existing commodity - Develop and implement well as policy advocacy on basic grains (com, rice and grain profitability . groups. efficient systems for the behalf of the growers. sorghum). Lesser crops are honey, organic administration and control

brown crude sugar and organic fer1ilizer. of production and post harvest. -Research and develop new forms of agriculture marketing.

- Assist in, promote and x 0

disseminate a technical production manual that will orient and also stimulate the utilization of

Provide applied training. new alternatives for increased agricultural production.

I -Promote field trips and interchanges between institutions.

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- - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - -USAID Mission Strategic Objective No. 1

USAID/El Salvador Result No.3: Expanded Equitable Access to Financial, Technological and Marketing Services by the Rural Poor.

CRECER End of Project Output Status to Dec. 31, 1999 End of Project Status Activities Sub-Activities Quarters (Contract) June 30, 2000

1 2 3

Number of male and female direct CRECER currently serves 11,590 More than 12,000 Promote marketing -Identify service needs x x beneficiaries receiving services (Le. direct beneficiaries in the agricultural beneficiaries. campaigns related to the of members of management, agricultural technical sector (of which over 34% -3,959 are services that are being agricultural businesses. assistance, bulk input supply, women). offered. processing or produce marketing). -Provide technical and Classified in the following manner: (Use local marketing logistical assistance in

firms for the task). the development of Direct - made up of members that 4,126 direct beneficiaries. promotional and belong to business with which dissemination activities CRECER has a signed agreement. for new activities.

5,804 beneficiaries through secondary -Promote the strategic Direct through secondary level level organizations. alliances among organizations - these are beneficiaries CRECER participants. that receive assistance form secondary organizations, but not directly form CRECER technicians. 1,660 non affiliated beneficiaries.

Direct non affiliated to secondary organizations - these are beneficiaries who use the services that the organizations provide but are not members of that organization.

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Intermediate Result: Increased Coverage of Sustainable Secondary Organizations providing Technology and Marketing

CRECER End of Status End of Project Status Activities Sub-Activities Quarters Project Output December 1999 June 30, 2000 I

(Contract) I

1 2 3

Number of secondary organizations 17 secondary level organizations 21 businesses providing The businesses will adopt -Implement systems of x x pmviding services which are classified in efficient services. management tools in accounting and internal thc~ following manner: 2 third level organizations administration and controls.

(CONSALCOOP and CONFENACOA) planning. - Plan and organize a program for agricultural

Businesses that provide services such as 8 service businesses 3 of which are 12 businesses of which 6 production. marketing, credit, equipment rental and ag members of the regional organization. are members of regional -Improve the supply sales. organizations. mechanisms for

9 agroindustries that are currently Assist enterprises to marketing of goods Alp-o industries that provide processing providing processing and marketing 9 agroindustries diversify agricultural produced. sec::s. credit. marketing of value added services. providing processing, production. - Promote the pr ts. marketing and credit. production of organic

I A regional service organization located crops.

Regional Service organizations with a large in Sonsonate is providing marketing One regional -Promote new x x variety of service covering a large services to its members. organization will be techniques for geographical area. consolidated and a Provide training. traditional crops.

second in the final stages - Provide training in x x of fonnalization. production, post harvest

and rational use of agro-chemicals.

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- - - - - - - - - - - - - - - - .. - -Intermediate Result:

Increased Coverage of Sustainable Secondary Organizations providing Technology and Marketing

CRECER End of Status End of Project Status Activities Sub-Activities Quarters Project Output December 1999 June 30, 2000

(Contract) 1 2 3

Number of secondary organizatiom which At present, the sustainability of the The business will have Develop and provide - Implement programs: x x reach sustainability providing services. business receiving assistance from begun the process to follow up to the strategic that serve members.

CRECER have not been sustainable from reach sustainability. plans which will lead to - Improve the decision Economic sustainability will be calculated an economic, financial or operational modern, stable making process and in the following manner: total income less standpoint. The process will be an administrations. restructuring of the donations divided by all costs (including integrated one which organizations. production costs, operating expenses and means that all areas -Implement reserves and taxes.). (economic. financial an Promote the formation of administrative systems"

operational) will be strategic alliances. -Identify participants The results will be interpreted in the pursued. and define areas of following system: integration.

Develop and consolidate -Develop a business I

Value less than 1 means that the income a business vision within vision in the selected generated by the business is not sufficient the organizations for organizations. to comply with short term obligations and is future integration in an -Carry out strategic and x x not sustainable. organization with a operational planning.

larger geographic Value equal to 1 means that the income coverage. generated by the business is equal to expenses therefore the business is not sustainable at present time.

Value greater than 1 shows that generated income is greater than short term obligations and the company is sustainable.

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Base-level Result : Increased Affiliation of Producers to Primary Organization

CRECER End of Project Output Status to Dec. 31, 1999 Projected Status Activiities Sub-activities Quarters (Contract) June 30, 2000 1 2 3

Nwnber of producers actively affiliated to 9,930 producers are actively Approximately 10,000 Promote agricultural • Plan production 0 0

cooperatives and producer associations. affiliated with the cooperatives and producers will be diversification. programs. NOTE: no further direct assistance will be associations served by CRECER. organized in agriCUltural • Develop new provided to primary level organizations. business that are Improve farm production alternatives.

There are a total of 1,660 individual receiving assistance from management systems. • Establish accounting producers that are not affiliated but CRECER. and internal control 0 0

have used services from the systems. enterprises attended by CRECER. • Formal and hands-on The principle activity are pass training of board of through functions: use of coffee directors, staff and mills, purchase or marketing of members.

i agricultural products.

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- - - - - - - - - - - - - - - - - - -Base-Level Result:

Improved SustainabiJity of Primary Level Organization Through Stable Management.

End of Project Output Status End of Project Status Activities Sub-Activities Quarters (Contract) December 1999 June 30, 2000 1 2 3

Number of primary level organizations that At present the businesses receiving The business will have Develop a business - Provide formal and 0 0

reach sustainability. assistance from CRECER have not been begun the process to vision accompanied by hands-on training in sustainable from an economic, financial reach sustainability. the implementation of business management.

NOTE: The definition of this indicator is or operational standpoint. efficient administrative -Monitor the strategic and the same as that established for secondary The process will be an systems. operational plans. organizations mentioned earlier. integrated one which -Establish administration

means that all areas systems that will permit the (economic, financial and businesses to move in the operational) will be Develop an direction of sustainability . 0 0

pursued. administrative capacity. -Establish and follow up the accounting and internal control systems.

Primary Level. A total of US$1,156,424 in product was An estimated Consolidate the - Conduct research for 0 0

marketed by CRECER-related US$2,500,OOO in marketing and production products and new markets. secondary-level organizations. products and services programs. -Diversify agricultural

will have been marketed production. NOTE: This indicator will still be noted by primary level - Assist enterprises to even though CRECER will have provided business. utilize new production no direct assistance to the primary level Provide training. alternatives. organizations as they continue to market product through CRECER supported secondary level organizations.

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Base-Level Result: Improved Sustainability of Primary Level Organization Through Stable Management.

End of Project Output Status End of Project Status Activities Sub-Activities Quarters I (Contract) December 1999 June 30, 2000 1 2 3 ,

$ value of product marketed through A total of US$4,OOO,OOO in product was An estimated Develop and implement -Monitor strategic and x x I secondary organizations. marketed by CRECER-related US$3,500,OOO in programs for marketing operational plans.

secondary-level organizations. products and services of services and supplies. -Promote business vision will have been marketed within the enterprises. by secondary level • Improve administrative businesses. These will systems. have come from primary .Develop market research I

affiliated and non- programs. affiliated businesses. • Develop strategic

alliances . • Establish accounting and internal control systems. • Research and improve agricultural marketing mechanisms.

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_1--_--- ------- - - - --Base-Level Result:

Improved Sustainability of Primary Level Organization Through Stable Management.

CRECER End of Project Status to Dec. 31, 1999 End of Project Status Activities Sub-Activities Quarters OutllUt (Contract) June 30,2000 1 2 3

Area (in hectares) under 5,369 hectares are under cultivation by CRECER 5000 hectares in 8 Investigate and promote -Consolidate and x x cultivation adopting technology. assisted organizations. different agricultural new and better disseminate the organic

commodities. production alternatives. agriculture program. -Transfer (with CENT A and PROCAFE) the use and adoption of new production techniques. - Improve production

Provide training. and post- harvest practices. -Promote and x

Develop new studies and disseminate technical consultancies. commodity specific

manuals.

I

-Develop new studies on conventional agriculture. -Develop new studies on x organic agriculture.

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Base-Level Result: Improved Sustainability of Primary Level Organization Through Stable Management.

CRECER End of Project Status to Dec. 31, 1999 End of Proj ect Status Activities Sub-Activities Quarters Output (Contract) June 30, 2000 1 2 3

Financial rehabilitation of rural Two organizations ("'Las Marias '93 H and "EI 5 agricultural enterprises Prepare proposals along • Establish the conditions enterprises. CAslaflo W cooperatives) have negotiated paYIIJent will have negotiated and with the secondary of the debt. x x

plans that will allow them to develop the capacity re-structured their debts organizations. • Develop proposals for This indicator will allow us to to payoff their debts in the medium-term. This with the financial debt reserving to be measure the potential that exists iin will allow them to continue operations. Two institutions. presented to financial the business activity as a strategy organizations (CORALAMA and SOCOPU) are in institutions. to reduce poverty in the rural the process of revision. sector as many business have reduced their economic activity as a result of delinquent loan I

payments with financial agencies. CRECER is working with the Assist in negotiations. businesses and financial agencies .Provide follow up to the to negociate and restructure the negotiation and eventual debt payment plans so as to permJt resolution of the the business to reinitiate or expand proposals. economic activities and thereby increase employment generation and income in the rural poor.

J - -- ~---

11-14

~

- - - - - - - - - - - - - -


B. Non-Agricultural Rural Enterprises

The non-agricultural enterprises component continues to work in a similar manner to that of the agricultural enterprises component, i.e. through strategic planning focusing on management and administration of the enterprises albeit on a much smaller scale. There are currently four enterprises receiving assistance from the team in business administration and marketing. Marketing of high quality innovative products in consistent volumes to new markets will be the underlying theme of 2000. This will involve new production techniques, new promotional ideas and total quality control. The NARE team has a coordinator and a marketing specialist.

The following chart summarizes the current and projected status by the Non-Agricultural Enterprises Team and details the activities and sub-activities which will be carried out during the remainder of the contract to achieve the projected results. This information is summarized according to USAlDIEI Salvador's intermediate and base results where possible.

II-IS

11


CRECER End of Status End of Project Status Activities Sub-Activities Quarters

Project Output December 1999 June 30, 2000

(Contract) 1 2 3

Ten (10) small/medium 82 small enterprises are working in two areas: Ilobasco 90 businesses involved in sized non-farm enterprises and Nahuizalco with a variety of products sold through the mentioned activities created or expanded and three coop owned stores. A fonnal accounting system plus development of a operating profitably and was established in Ilobasco according to few new areas. creating employment INSAFOCOOP approved regulations, a separate opportunities in rural areas system was set up to manage the BCIE grant and the in light industry, commerce coop received its official tax (IV A) registry. In and the service sector. December the Cooperative of grocery store owners (EI

Sureflo) was legalized in San Carlos Lempa.

Marketing is being done at the local level in Ilobasco, Sales will be made on it Promote a stronger x x Nahuizalco and Izalco with limited sales in San larger scale in the San position in National and Salvador. Salvador market and Regional markets.

within the region.

Marketing promotion only in Ilobasco, Nahuizalco and A national promotional Conduct a publicity x Izalco. campaign in place, campaign.

including newspapers and radio spots.

There are presently two retail stores in 1I0basco and There will be one main Open new stores and Nahuizalco with a branch in Izalco. store in Ilobasco smaller branches.

branches Nahuizalco, Apaneca and Izalco.

At present, clients are consumers and buyers at the Wholesale clients will Search for new markets. x x local level, however, national banks have purchased buy in large quantities at large quantities of specially made promotional items. the national and regional

level.

Presently the name AKTECRECER is only associated The brand Development of the brand x x with the retail stores in Ilobasco and Nahuizalco. AKTECRECER will be name.

synonymous with quality

I and exclusivity.

------ - -- ------- --- ----- - -------------- ---- ------------- -~

~ II-I 6

- - - - - - - - - - - - - - - - - - -

-------------- - - - --CRECER End of Project Status End of Project Status Activities Sub-Activities Quarters

Output (Contract) December 1999 June 30, 2000 1 2 3

Ten (10) small/medium sized non-farm enterprises created or expanded and operating profitably and creating employment opportunities in rural areas in light industry, commerce and the service sector.

At the present there are three cooperatives: Ilobasco, There will be three Organizational SES and Concepci6n Quezaltepeque and one primary cooperatives development. groups: Grupo MOJE.

The cooperatives Nahuizalco, Concepci6n Three legally recognized Legalize the cooperatives. x Quezaltepeque and SES are not legally recognized by cooperatives by INSAFOCOOP. Ilobasco is legally recognized. INSAFOCOOP and the

Ministry of Hacienda.

All three organizations have operational manuals. All will have fully Develop manuals related to x x implemented operational organization, functions and manuals. accounting procedures.

Cooperative members have cash flow controls but The members and Implement financial, x x little knowledge of general ledger accounts, nor how cooperatives will have up accounting and marketing to evaluate markets tendencies, nor identify market to date balance sheets systems. opportunities. and adapted marketing

techniques. --~----- -~----~- ------- -- -- _L...-- --~

1l·17

~ -


CRECER End of Project Status to End of Project Status Activities Sub-Activities Quarters Output (Contract) December 31, 1999 June 30,2000 1 2 3

Ten (10) small/mediwo sized non-farm enterprises created or expanded and I

operating profitably and creating employment opportunities in rural areas in light industry, commerce and the service sector.

An evaluation of the new designs has been done, a Each cooperative will Research development of x x market study for hammocks has been developed, and have done marketing new Products. new prototype designs finished. BCIE has donated studies and feasibility funds to furnish a design workshop and materials for studies that will allow products innovation. them to develop and

market new products according to demand.

Few new products have been developed. The ARTECRECER • Develop new product x x retail stores will stock lines. 30% new product, in the new design workshop.

Production costs are high owing to many things, The businesses will have • Improve production x x principally bad distribution in the processing lines, established proper process and implement inefficiencies resulting in product loss and expensive production process, quali1y controls. raw materials costs. Most product is of inconsistent lowered % of product quality. loss, purchase raw

materials wholesale through the cooperative and established total quality control I

procedures. I

II·IS

~ ~ . - - - - - - - - - - - - -

- - •• - - - - - - - - - - - - - - - -!

CRECER end of Proj ect Status to End of Project Status 'I Activities Sub-Activities Quarters Output December 31, 1999 June 30, 2000 1 2 3

(Contract)

Number of male and female 268 beneficiaries. 275 beneficiaries. direct beneficiaries receiving services. 82 direct (families in business in CRECER supported 90 direct.

activities). 185 non affiliated.

182 non-affiliated (employees, suppliers of raw material).

Ilobasco has accepted 12 new members and SES The cooperatives will Recruit new members to • Development and x x accepted 8 new members, both through a rigorous have established get sufficient volume to implement mechanisms to selection process. mechanisms to evaluate meet wholesale requests. evaluate and select new

and recruit new members members. and have monthly visits • Accompany board by board members to members on recruitment x x recruit new members. visits.

Number of secondary I Three cooperatives and one informal groups (Ilobasco, Four cooperatives and organizations providing SES and Quezaltepeque are the cooperatives and one formal group (a services. MOJE.) cooperative will be

organized with the SES 82 individual producers. store owners, and MOJE

will be legalized).

90 individual producers.

Classes in cooperativism are being taught and A cooperative will be Constitute and legalize • Conduct a feasibility study instruction given in different types of legal business formed in SES retail the cooperative and on a grocery warehouse in recognized in EI Salvador. store owner and a business group. SES.

solidarity business group • Coordinate with x x formed with MOJE. INSAFOCOOP on

cooperativism lectures . • Prepare an operational plan for MOlE group. x

11-19

~


CRECERendofPr~ect Status to End of Project Status Activities Sub-Activities Quarters Output

(Contract) December 31, 1999 June 30, 2000 1 2 3

Number of producers CRECER is assisting 82 individuals that produce 100 individual working Provide teclmical Visit new businesses and x x actively affiliated to ceramics, wood articles, clothes, hammocks and in the same areas with assistance to new conduct preliminary studies. cooperatives and producer textiles. furniture. leather and manage grocery stores. new products and businesses. associations. possibly other new

artisan products (tin makers. candle makers).

Number of primary level CRECER is currently working with organizations that Economic sustainability x organizations that reach lack systems that would enable them to report will be calculated in the sustainability . sustainability at this time as they are new organizations following manner: total

(all began in late 1998) have little data to report. income less donations divided by all costs (including production costs. operating expenses and reserves and taxes).

JI-20

1t - - - - - - - - - - - - -

I i

------- -. - - - - -.-CRECERendofPr~~

Output (Contract)

$ value of product marketed by primary organization.

-----------

~ \

Status to December 31,1999

Two retail stores have opened and a sales catalogue prepared and limited participation in local and national fairs. Retail sales average 20,000 colones/month with average profit of 4,000 colones. Both retail stores maintain cash flow accounts, fonnal accounting systems, and limited inventory and financial analysis. Sales have allowed them to cover operating costs, begin limited reserve funds, and obtain small profits.

In the non-agricultural enterprises: product marketed during this period by individual micro-enterprises was US$58,046 and through their stores, US$13,956.

Retail sales average 20,000 colones/month with average profit of 4,000 colones.

-~

End of Project Status Activities June 30, 2000

Presence in national Conduct marketing market. activities.

Monthly average sales of 30,000 colones and profits of 5,500 colones. Stores will have up to Analysis and date financial systems interpretation of financial and inventory controls systems. that will allow them to make timely decisions on purchases and on members accounts.

Stores will have monthly, on time balance sheets, that will allow for a calculation of sustainability .

Total sales through stores will be over $200,000 and sales through individual businesses over $300,000.

Monthly average sales of Positioning in national 30,000 colones and and regional markets. profits of 5,500 colones.

0-21

____ 1-Sub·Activities Quarters'

1 2 3

x

Monitor accounting and x x financial systems.

i

I

I

x


CRECER end of Project Status to End of Project Status Activitiies Sub-Activities Quarters Output December 31, 1999 June 30, 2000 1 2 3

(Contract)

Most businesses tend to sell direct from their shops or The stores will purchase homes either wholesale or retail. Consignment sales the majority of the have begun through retail stores in Ilobasco and production from their Nahuizalco. members and will also

complement orders from non-members. Sales will be done in the two primary towns plus San Salvador and wholesales in the region.

Increase in profit margin The traditional hanunocks of San Sebastian left a profit A permanent control Product innovation. Monitor units sold. x x I

through product innovation. margin of 3 colones on sales of a 95 colon hammock, over profit by product the newly designed hammocks have a margin of 67 %. will be maintained by Use marketing and design x

each business so that less consultants from US. The new promotional items have a profit margin of 10 profitable lines will give - 15 % but this low margin is compensated by large way to new profitable volume of sales. innovations. New prototypes for all product lines are being designed. TheARTECRECERretail

stores will have 30% of Only one new product line has had market impact their stock in new monitored. product.

Each new produce will be monitored.

I

1I-22

~

- - - - - - - - - - - - -


c. Rural Financial Enterprises

Technical assistance to rural financial enterprises in 2000 will build upon activities conducted in previous years. The general themes underlying the strengthening of Rural Financial Enterprises (RFEs) in 1999 include: improving financial and managerial administration of the RFE, designing and implementing strategies to reduce loan delinquency, providing specific training and support to RFE directors and managers and continue work to seek the passage of a law to establish an appropriate regulatory framework for rural financial enterprises. Work will also continue on the national promotional campaign for all FEDECACES credit unions and a special program for youth savings. The new Law for financial intermediaries continued in discussion in the Legislative financial commission. Hopefully the new law will be passed in the beginning of the new year, which will implicate future training by CRECER at the Superintendent level, the federations, and the credit unions. An electronic mail correspondence course in credit union marketing was developed by CRECER. The system is developed in the CRECER office and passed on a weekly basis through Internet connections to participating credit unions. The purpose other than to teach marketing techniques is to instruct in the use of electronic mail, provide an ample training spectrum, lower training costs an open the way for new types of training for credit union staff and members.

The work will be conducted by the CRECER rural finance enterprise team, composed of 4 specialists (in credit, finances, in marketing of financial services and in computer related support) and a coordinator.

The following chart summarizes the current and projected status of work by CRECER's rural Financial Enterprises Team and details the activities and sub-activities which will be carried out during the remainder of the contract to achieve the projected results. This information is summarized according to USAIDIEI Salvador's intermediate and base results where possible.

NOTE: These figures do not include the Din3.mica credit union as they have installed a new computerized accounting system and are generating year end figures. This cooperative traditionally accounts for 20% of the total consolidated indicators and will reported in the next period.

II-23


CRECER End of Status Projected Status Activity Sub activity Quarters I Project Output December 1999 June 30, 2000

(Contract) 1 2 3

A minimum of 20,000 rural 72,312 clients (members, youth members 69,400 clients including Implement a marketing clients served. and third party savers) are being served by members, youth plan in each cooperative.

CRECER-assisted credit unions. This figure members and those

comes from the total reported in the USAID aspiring to become full

indicators. members.

Fifteen (15) credit unions and 1 CRECER is working with 13 credit unions New agencies will be Establish new agencies. -Assistance in feasibility x x or 2 NGOs institutionally and 2 NGOs, in addition to providing established in the studies. strengthened and providing institutional support to FEDECACES; 2 following markets: • Evaluation of the x x competitively-priced financial branch offices and 4 credit unions agencies. Santa Ana agencies. services (savings and loans). An additional 15 credit unions affiliated to Sonsonate

FEDECACES yet not eligible for direct CRECER assistance have adopted, to a certain degree, the methodology, financial discipline, and structural changes promoted byCRECER.

A minimum of $4.0 million in As of Dec. 30, 1999 there was 14.09 million An increase in savings of Implementation of a - Implement new service new local savings will be dollars in savings, an increase of $8.59 75% which would be marketing program program for savings. x mobilized and used to finance million dollars since December 31, 1995 equivalent to $U530 aimed at savings lending at market rates of spread among passbook accounts, certificate million. mobilization. -Implement new program interest for agriculture and

of deposit and youth programs, all of which for youth savings. x

small and medium-scale rural enterprise by the end of the receive competitive market interest rates. -Implement national project. promotional campaign. x

Savings as of Dec. 31, 1995 $ 5.5 million -Continued implementation I

as of Dec 31, 1999 $14.09 of the enhanced physical I I

increase of $ 8.59 - image program. x x

% -Consolidate marketing x x programs. I

11-24

~

- - ------- - - - --

-------------------CRECER End of Status , Projected Status Activity Sub activity Quarters Project Output December 1999 June 30, 2000

(Contract) 1 2 3

An accumulated total of 80% The net loan portfolio has increased to $4.85 An increase in loan The principle focus will -Launch a new credit ($3.2 million) of savings million (an increase in dollars financed portfolio of be on restructuring the services program. accumulated will be relent to through savings and member shares). approximately $4.8 to a system for giving loans finance farming and related total of $ 26.4 million by and for collection of -Install a computerized rural industries. commerce,

Loans as ofOec. 31, 1995 $15.2 million June 2000. loans. system for loan analysis. x x micro and smaIl-scale enterprise, housing and other as ofOec 31, 1999 $20.05 -Conduct seminars on rural household needs over the increase of $ 4.85 - % techniques for reducing life-of-fue..project through delinquent loans. participating credit unions and non-governmental -Adequation of database of organizations. Credit unions portfolio to x

be forwarded to the superintendency central risk.

-Design and implement a credit classification system. x

-Design and implement an electronic credit analysis system.

0-25

~~


CRECER End of Status Projected Status Activity Sub activity Quarters Project Output December 1999 June 30, 2000

(Contract) i 1 2 3

Legal and regulatory change The new Law for financial intennediaries The law and statutes will Continue supporting the .Participa(e in BCR and x leading to an improved continued in discussion in the Legislative be approved by the change in the new Legislative Assembly environment for rural financial financial commission. CRECER supported legislative General legallregulatory system working groups. institutions and a stronger set of the commission by covering costs for two Assembly and by the for Credit Unions. regulatory mechanisms that will separate "get away" workshops. CRECER, General Assembly of the • Update statutes and govern both savings and lending credit unions. regulatory system to x x services. through FEDECACES, also had access to conform to the new IFNB

most of the on going discussions and were law. allowed to comment, although through infonnal channels. As part of the new law, .Conduct regional fora on the superintendency of banks, will have to the impact of the IFNB x x supervise those financial intennediaries that law. fit under the new law. Hopefully, the new

.Support CUs in adopting law will be passed in the beginning of the new year, which will implicate future prudential standards of the

training by CRECER at the Superintendent IFNB law. x x

level, the federations, and the credit unions.

~ 11-26

- - - -- - - -- - - - --

- -- ----------- - - - --USAID/EI Salvador Result No.3:

Expanded Equitable Access to Financial, Technological and Marketing Services by the Rural Poor.

USAID Indicator Status Projected Status Activities Sub-Activities Quarters December 1999 06/30/2000

1 2 3

Number of active borrowers. 12,848 men (46.47%) 12,455 men (44.48%) Formalization and -Data recompilation for AID reports. x x x 14,800 women (53.53%) 15,545 women (55.52%) updating of

27,648 total active 28,000 total active marketing data base.

borrowers borrowers.

-Creation of marketing report of the CUs' systems.

-Standardize databases among the CUs.

Number of depositors. 31,508 men (43.95%) 31,004 men (45.13%). Implementation of -Relaunching of new savings products. x x 40,182 women (56.05%) 37,696 women (54.87%). Marketing program

71,690 total depositors 68,700 total depositors. for savings - Develop the children/youth savings program. x x mobilization.

-Support launch of promotional campaigns. x x

Number of loans under US$ 4,601 men (39.96%) 4,236 men (42.36%). 300. 6,913 women (60.04%) 5,764 women (57.64%).

11,514 total number of 10,000 total number of

loans under US$300 loans under US$300.00.

11-27

w -


USAID Indicator

Number of financially sustainable institutions.

Number of agencieslbranches serving rural clients.

- -_._-

\N ~

Intermediate Result: Increased Coverage of Sustainable Financial Institutions in Rural Areas

Status December 1999 Projected status Activities 06/30/2000

As of Dec. 31, 1999 six CRECER-assisted All 13 credit unions are Apply the Structural credit unions are currently "fmancially expected to accomplish Framework to the credit

sustainable," 3 are between 75% and 99% 100% of a more than 12 unions.

sustainable, 1 is between 50% and 74.9% month delinquency

and 2 is below 50 %. estimate and 9 credit

Sustainability is based on: unions will accomplish a less than 12 month

Reserve levels delinquency estimate. Level of institutional capital Economic results 9 credit unions are

expected to accomplish an institutional capital level equivalent to that required by the new NBFI law.

At the end of this period it is expected that 9 of the 13 credit unions assisted by CRECER reach 100% of financial sustainabili ty .

At project start up there were two branch New agencies will be Establish new agencies. offices in rural areas, to date there are six established in the offices in La Uni6n, San Miguel, Cojutepeque, following markets: EI Congo, AbuachapAn and Chalchuapa. Santa Ana

Sonsonate --- -

11-28

- - - - - - - -

Sub-Activities Quarters

1 2 3

-Follow-up on financial x x disciplines. -Evaluate the x Entrepreneurial Plan with CUs' administration council. - Provide training on how x to administer assets and liabilities. -Finance training for the x x personnel working in the marketing area.

-Provide feasibility study x x support. -Evaluate agency/branch x office.

-- -.--

- - - - -

------- ------- - - - --Base-level Result :

Improved financial perfo~ of micro finance institutions serving the rural poor

USAID Indicator CRECER's Contribution to Base-Level Result Projected Status Activities Sub-Activities Quarters 06/30/2000 1 2

3

Number of institutions The 13 participating institutions are It is expected that 100% Apply the structural -Follow-up on financial x x operationally sustainable. operationally sustainable. of the participant credit framework in the credit diSciplines.

unions will be unions. operational. -Install computerized x

Apply new regulations to PERLAS System in the CUs. the credit unions when the new law is approved. -Standardize the PERLAS

System catalogues. x

-Organize regional fora to share impacts of the new x x NBFl law.

Percent of delinquent 12.70% ($2.66 million) of the US$20.95 Obtain a 13% Reengineering of the -Review credit and collecting x x portfolio over 30 days million gross portfolio is delinquent by over 30 delinquency level in the credit & collection system. (include portfolio size). days. loan portfolio. system.

--- -_ ... - -- - -- ------- ----

11-29

~

w ~

CREGER Project - Work Plan 1999-2000

Base-level Result: Increased capital mobilized for rural lending

USAID Indicator Status Projected Status Activities December 1999 06/30/2000

Growth in savings accounts (US As of December 31, 1999, CRECER- A US$30.0 million Conduct the marketing dollars). related interventions have resulted in a portfolio growth, program for savings

growth in savings in the last three years equivalent to an increase mobilization.

within the participating institutions of of 24.5 million additional

$8.59 million (156%) from $5.5 million to the amount of 5.5. millions in 12/3111995

to $14.09 million. before CRECER Project started.

Savings as of Dec. 31, 1995 $ 5.5 asofDec31,1999 $ 14.09

increase of $ 8.59

Number of NGOs obtaining One NGO, UCRAPROBEX, has It is expected that one (1) Apply marketing and commercial bank funds. obtained funds from commercial banks NGO (UCRAPROBEX) financial disciplines.

and is classified as an .. A" customer. continue to be classified

(Technical assistance has been provided as a "Class A" client to

in financial analysis and control of obtain funds from

portfolio delinquency.) commercial banks.

A defined and implemented financial analysis system.

An implemented affected portfolio method to measure delinquency.

------ -~ ~- -- ------ --------

11-30

----------

Sub-activity Quarters 1 2 3

-Relaunch children/youth I

savings program. x x

-Support launch of promotional campaigns.

x x - Implement the physical image program. x x

-Consolidate marketing program. x x

-Define and implement a financial analysis system.

i - Implement portfolio I

(afectada) method to measure delinquency.

- - - --

- /- - - - - _. - - - - - - - - - - --Base-level Result:

-- .- - ---------- -~- --- - --- -_. --_~Cl':'"

USAID Indicator Status Projected Status Activities Sub-Activities Quarters December 1999 06/30/2000 1 2 3

Number of secure savings All participating credit unions (13) have a All 13 credit unions are Apply financial -Promote liquidity fund x x institutions offering services to signed agreement with FEDECACES for secure, with positive disciplines. disciplines on savings. the rural clients. Increased value 10% reserve requirements, and have patrimonial solvency product. indicators of patrimony solvency (capital indicators. - Promote reserve ,

shares plus institutional reserves) that are capitalization.

between 10.54 and 54.65 % of total assets of x x

the credit unions. -~

11-31

~

v'\


B,ase Level result: Improved legal & regulatory environmental promoting access

to finandal services by the poor. I

USAID Indicator Status Projected Status Activities Sub-Activity Quarters December 1999 06/30/2000

1 2 3

Number of improved statutes The credit unions continue Approved NBFI Law by the Continue to support changes of a new legal • Attend and participate in x of financial institutions. to await passage of the new Legislative Assemblyl. and regulatory framework for the credit working tables and

law for intennediary unions. presentations at BCR and

financial institutions at Legislative Assembly to

which time they will It is expected that the new establish the possible areas to legal and regulatory frame be improved in the new NBFI

change their statutes to is functioning. Law. comply with the new law.

-Update statutes and x x regulations according to the new NBFI Law.

-Conduct regional fora to communicate impacts of the x x new NBFI Law.

-Support credit unions in adopting prudential norms of x x the IFNB Law.

x '------- -- -.----.---.--~- -------- ---------------------

0-32 w -(:)'

- ------ ------- - - - --

- - -.

CRECER Indicator

% of delinquent accounts over one year that have been purged.

Increase in reserves to cover delinquent accounts.

Decrease of dependence on external loans.

Recovery of bad debt write offs.

\.}J ~

- - - - - - - -Internal Project Indicators

Status Projected Status December 1999 06/30/2000

4.71 % of delinquent accounts over one year Write off 100% of have been purged and 41.88 % of the purged delinquent portfolio over

funds have been recovered. 12 months.

Since CRECER began to work with the credit All 13 credit unions are unions, reserves to cover delinquent accounts expected to accomplish a

are at $1.82 million dollars. 100% estimate for delinquency of more than

6 credit unions comply with the 100% reserve 12 months and 13 credit unions to accomplish a

provisions to cover delinquent loans. The other 100% estimate for 6 are at different levels in the process of delinquency of less than complying with this requisite. 12 months.

Participating credit unions have lowered their Participant credit unions dependence on extemalloans by 14.25% from are expected to reduce

$3.085 million in 1995 to $ 2.164 million as of their dependancy on

Dec. 1999. external credits in a 12 % ofUS$2,080,190 in 09/30/98 to US41,800,OO in 06/30/2000.

Of the total of $2,078,530 of bad debt that 40% of purged portfolio was written off, $ 870,488 or 41.88% has been will be recovered.

recovered, as of Dec. 1999.

11-33

- - - - - - - -Activities Sub· Activity Quarters

1 2 3

Restructure the credit -Review credit and collection x x and collection system. system.

-Conduct seminar on delinquency reduction and credit analysis.

Apply the structural -Follow-up on financial x x framework of credit disciplines. unions. -Evaluate the Entrepreneurial

Plan with administration x x council of CUs. -Provide training on administration of Assets and Liabilities. -Conduct seminars/workshops Entrepreneurial Plan 2000. -Finance training for the personnel working in the marketing area.

Application of financial -Promote reserve accounts x x disciplines. for savings.

-Promote reserve capitalization.

Reengineering of the -Review credit and collection x x credit and collection system. system.

-Conduct delinquency x x reduction seminar.

GREGER Project - WorK Plan 1999-2000

Internal Project Indicators

CRECER Indicator

Amount and number of loans made during current year.

Creation of a reserve fund for savings at the normal prudent levels as stipulated by the regulatory authorities.

~.----

w CQ

Status December 1999

$ 9.31 million dollars in 12,848 loans to men $10.73 million dollars in 14,800 loans to women $20.04 million dollars through a total of 27,648 loans I

I

All credit unions have an agreement with FEDECACES to comply with this reserve requirement.

~~--------

. - -

Projected Status 06/30/2000

During the rest of the period, the following goals are expected to be accomplished: $11.91 million for 12,455 men (45.13%) and $14.49 million for 15,555 women (54.87%) $26.4 million in a total of 28,000 to 06/30/2000.

All credit unions are expected to have 10% of their deposits in FEDECACES.

11-34

- - -

Activities Sub-Activity Quarters

1 2 3

Reengineer the credit and -Relaunch new credit x collecting system. services.

-Computerize system for x x credit analysis.

- Establish credit bureau/risk 0 0

center.

-Conduct seminar on delinquency reduction techniques.

I

Apply of financial -Promote liquidity fund x x disciplines. disciplines on savings.

- Promote reserve capitalization. x x

- - - - - - - -


D. Sectorial Policy Component

Two general objectives are proposed for the period 1999-2000 and they have to do with contributions to 1) reduction of rural poverty, and 2) modernization of the State. Following the formulation of the rural development and poverty reduction strategy document by the Rural Development Committee, of which CRECER is a member, the effort during the 1999-2000 period will focus on its adoption and implementation. The Mitch hurricane unveiled the severity of rural poverty in the country and the government has made the commitment not only to reconstruct the damaged infrastructure in the affected areas but to undertake actions directed to solve the basic problems of the entire rural area in order to combat poverty.

In the area of modernization of the State, CRECER will focus on the improvement of the technical assistance capacity of field personnel of CENT A , DGEA, DGSV A, among others within MAG. Technicians from OAPA/ODE and entrepreneurs from CAMAGRO will also be invited to participate in the training programs. The policy team will emphasize the improvement of the analytical capacity of OAPA/ODE personnel through short courses and preparation of analytical papers on a number of relevant issues. These papers will serve the purpose of summarizing the achievements in the sectoral policy arena and picturing a road map for policy reforms and consolidation for the next 5 years, and will be presented to the new sectoral authorities.

Moreover, in order to fill the gap of data needs, the policy team will carry out in coordination with IlCA a study to diagnose the agricultural sector situation and obtain up-to-date information. At the same time, the team will participate in the planning process for the agricultural census project, in coordination with IICA and other government offices. An analysis on costbenefit of trade negotiations and regional economic integration will be conducted as well, using the same coordination strategy.

Finally, relevant conclusions on competitiveness and profitability of the agricultural subsectors are expected from the MAP study, an ongoing research carried out with the participation of various MAG technicians. The outcome of this study will be fundamental for the formulation of sectorial policy measures that will impact on the agricultural sector reconversion.

The following chart summarizes the current and projected status of work by the CRECER Policy component and details the activities and sub-activities which will be carried out during the remainder of the contract to achieve the projected results. This information is summarized according to USAIDIEI Salvador's intermediate and base results where possible.

11-35


End of Project Status End of Project Status Activities Sub-Activities Quarters Outputs December 1999 June 30, 2000

(Contract) 1 2 3

Sectoral policy environment The sectoral policies continue Sectoral policy is stable and Provide technical advice to • Participate in meetings to discuss x x conducive to increased rural improving and gaining more consistent with the guidelines the Ministerial office through sectoral policy decisions. investment and employment so transparency and stability since driving the macroeconomic policy: OAPA. • Prepare technical notes on issues that incomes for 153,000 poor reforms are taking place based on more open economy, increased and that the Ministerial office will x x families be also increased. technical analysis rather than better quality of the rural infra- discuss within the Economic

pressures from interested groups. structure, more efficient public Council. The idea of reaching an uniform institutions. import tariff was presented to Conduct analytical studies on • Analyze competitiveness of the officials from MAG and the the agricultural sector and main subsectors of the agricultural Ministry of Economy and it is sectoral policies. sector. currently being discussed at the ·Analyze impact of the trade policy x x Central American Ministries of over the economy of small farmers. Economy Committee (COMINCO). - Analyze benefit-cost of trade x x The Salvadoran proposal presented negotiations and regional economic at the end of 1999, focuses a integration (CRECER-IICA-MAG-harmonized foreign trade tax, based MlNECON), and others from

I on an uniform import tariff for Central America and The Central American countries in order Caribbean. to protect agricultural products, and -Evaluate the sectoral policy and x x their sub-sectors perspectives for the year 2004.

- Participate in the planning process of the Agricultural Census (CRECER-IICA-MAG-DIGESTYC).

Support the modernization of - Continue participating in the rural the sector. financial services proposal (ROC).

A policy dialogue process has The Rural Developm;:nt Committee, OAPA, and CAMAGRO have Seminars. • Conduct seminar on the impact of x been established which allows of which CRECER is a member improved the dialogue and trade policy on the economy of participation of the rural poor. continues as the leading consulting process; and their small farmers. Local, regional and national organization in rural development credibility has increased. • Present results of the study x dialogue fora are organized to and poverty reduction. At the same dealing with competitiveness discuss important policy issues time, OAPA continues increasing its analysis of the main subsectors of with the participation of public credibility as an analytical unit the agricultural sector. and private sector within MAG. • Present the results of the x representatives. evaluation study of the sectoral

policy and perspectives for year 2004.

II·36

~ • • - - - - - - - - - - - -

.. - - _I - - - - - - - - - - - - - - -End of PrOjf Status End of Project Status Activities Sub-Activities Quarters

Outputs December 1999 June 30, 2000 (Contract) 1 2 3

A rural poverty reduction An awareness of the rural poverty The rural poverty reduction Conduct dialogue, fora, and • Conduct regional fora to discuss x x strategy has been formulated siluation among govenunent strategy has gained consensus and consensus gaining seminars. the rural development strategy. and adopted by GOES. officials and key economic agents the govenunent has adopted it as • Conduct fora on actions to reduce x

has improved through dialogue with part of its action plan. rural poverty (ROC and diverse sectors of the economy. government). TIle elected President and his team of advisors and govenunent officials Monitor and evaluate of the .Analyze and evaluate the indices x i

continue openly expressing that poverty indices. of rural poverty and human

I combating poverty and promoting development. rural development is a priority action for the present administration.

Nonos and regulations adopted ~ refonn to the non traditional The non traditional exports Follow-up and lIlOnitor the • Monitor the application of the law x x on the qualification and control e rts prolIlOtion to include promotion law will be maintained. application of the law, (brief report). of marketing organic products. organic coffee has been passed. specifically of the fiscal

The refined sugar has been included incentives stipulated in it as well. However, the qualification such as the draw back. of a product as organic for export depends on international criteria and norms rather than on domestic legislation.

----- ------------ -------

-'- II·37

..-,.

CRECER Project - Work,Plan 1999-2000

End of Project Outputs

(Contract)

The Ministry of Agriculture has developed the technical capacity to maintain a sectoral policy environment and institutional framework conducive to increased rural investment.

£ f


OAPA continues to be the policy analysis and policy advocacy unit within MAG. OAPA changed its name at the end of 1999 to Office of Strategic Management (Oficina de Direccion Eslralegica. ODE), with the mission of advising high level officers (Minister and Viceminister) and to guide all MAG's offices in the formulation, implementation, and monitoring of all agricultural development strategies. Through OAPA/ODE, CRECER has had the opportunity to improve the analytical and technical capacity of personnel of other key offices within MAG such as the DGEA, andDGSVA.

- - - - - - -

End of Project Status June 30, 2000

OAPA and CAMAGRO have developed their capacity to fomrnlate and analyze economic and sectoral policies and their ability to conduct policy dialogue fora for consensus gaining and advocacy.

~-----

11-38

- - - -

Activities Sub-Activities Quarters

1 2 3

Conduct an intensive course - Conduct courses on Investment x in agribusiness. Projects, Finance, Managerial

Economy and International Trade: CRECER-IICA.

Conduct workshops and short • Conduct workshops on trade x courses in various areas of negotiations: IICA-CRECER. interest.

Monitor existing and support - Monitor trade agreements between x x new trade and institutional AVES and sorghum producers and agreements. between meat packers and pork

producers. -Construct supply and demand model for coffee: the case of EI Salvador.

Produce Case studies. -Produce agricultural products x x marketing studies.

- - - - - - - -

- - -USAID Indicators

1. Rural poverty reduction strategy adopted and implemented.

-C.. ~

- - - -Status

December 1999

The strategy document has been widely distributed. Intense dialogue and debate on the proposal with representatives of different sectors of the economy has taken place in efforts to have the plan adopted by government officials and the team of professionals assisting the newly elected President. The latest ROC work has concentrated on rural finance services arid commercial policy, issues on which the Ministry of Agriculture has expressed a particular interest.

- - - -End of Project Status

June 30, 2000

The incoming government will adopt the guidelines of the strategy as part of its working agenda. The ROC, the Working Group on Rural Development of the "Plan de Naci6n" and CAMAGRO have gained leadership in the process of adoption and implementation of the rural development and poverty reduction strategy.

11·39

- - - - - - - -Activities Sub· Activities Quarters

1 2 3

Conduct dialogue fora for - Conduct regional fora on the x promotion of and consensus rural development strategy gaining on the strategy. (ROC) to promote fora results,

and consensus gaining on the strategy. - Conduct fora on the rural x x financial services proposal (RDC), and consensus gaining.

Conduct semioars to - Seminar to promote the coffee x x disseminate various studies marketing study results. result. -Seminar to disseminate the x

results of the agricultural products marketing study (CRECER-IICA). x -Seminar on the impact of trade policy on the economy of small farmers. -Fora on prices for fruits and x x vegetables study results. and consensus gaining.


USAID Indicators

2. Modernization of the State: approved refonns index.

...t;. ~


Twenty four technicians were trained in applied methodology of the Agricultural Policy Analysis Matrix (MAP). The policy team acted as technical coordinator for this activity, funded by CRECERIUSAID. Teamwork was used to carry out competitiveness and profitably analysis for 14 agricultural commodities. Data quality control and a final report are ongoing activities. The final report is expected to be released by early 2000 .

End of Project Status June 30, 2000

The technical personnel of CENT A, DAA and INSAFOCOOP have been intensively trained in agribusiness. The technical personnel of OAP A have been intensively trained in policy analysis techniques and are in a position to continue performing this task with no dependence on pennanent advisors.

11-40

." I --------

Activities Sub-Activities Quarters 1 2 3

• Rural enterprises management x x course !

- -- - - - --

- - - - - - - - - - - - - - - - - - -CRECER INTERNAL INDICATORS

CRECER Indicators Status End of Project Status Activities Sub-Activities Quarters December 1999 June 30, 2000 1 2 3

I The average import tariff for A weighted average tariff for 1996 showed a figure The country has adopted a Conduct analytical -Conduct competitiveness agricultural inputs and close to 15% while that figure for 1997 was unifonn tariff between 15 studies on the sector and analysis of the main products is kept below 20%. approximately 13 %. A rapid estimation of the and 20 % for all sectoral policies. subsectors of the agricultural

i average rate for 1998 shows a figure close to 12%. agricultural imports. with sector. However. this rate was fixed to 15% in 1999. few exceptions. -Evaluate the sectoral policy x x Despite this higher rate compared to 1997 and Additionally. the country and perspectives for the year 1998. the behavior of the average import tariff for has agreed on a conunon 2004. the sector reveals a trend towards a more open and external tariff for the liberalized trade. region between 15 and Advise the ministerial -Participate in meetings to x x

20%. office through OAP A. discuss sectoral policy decisions. -Prepare technical notes over x x issues that the ministerial office would discuss within the Economic Council.

~-- -- -

~ 11·41


CRECER Indicators Status End of Project Status Activities December 1999 June 30, 2000

Institutional development and Twenty four technicians were trained in applied The OAPA technical Conduct workshops and improvement of the analytical quantitative analysis, using the agricultural policy personnel have been short courses. capacity in such units and analysis matrix (MAP) methodology. trained to a point that are institutions as OAPA, able to continue success-CAMAGRO, BOlPROES, fully perfonning their tasks CENTA, DAA and without relying on INSAFOCOOP. permanent advisors. The

field personnel from Conduct analytical studies CENT A, DAA and the agricultural sector and INSAFOCOOP have sectoral policies. improved their capacity to provide technical assistance to cooperatives and rural enterprises. Brokers and technical personnel from BOlPROES have been trained on futures and risk management .

. --------_.- -------------

~ ~

11-42 ----------- - --

Sub-Activities Quarters I

1 2 3

-Evaluate sectoral policies and perspectives for the year x 2004.

- - - --


E. Monitoring and Evaluation

As mentioned before, a unique feature of CRECER is its in-house ability to monitor and evaluate project activities, and to survey opinions to guide activity design and implementation. The following chart summarizes the projected activities of our M&E team in order to measure the impact and the results of the project and to help the different components of the project in their assistance to the rural enterprises supported by CRECER.

CRECER End of Activities Sub-Activities Quarters Project Output

(Contract) 1 2 3

Measure the impact of Baseline survey Last baseline survey for the different FRE, ARE and NARE x x x components of the CRECER Project on the poor rural families assisted by the Project.

Support the different Support to ARE and their Cashew nut consumer x components of the assisted rural enterprises habits. project and the project's assisted enterprises in the research area.

F. Key Lessons Learned During 1999

CRECER courses

The majority of training the CRECER project has been conducted by local staffin a hands on, informal sessions (albeit with the latest _in audiovisual programs) in the site of the participants. However, CRECER has conducted and or directed some very specific training courses: the CENTA I and II courses and the financial and agri business "diplomado" courses. CRECER hired a local consultant to manage the logistics of the courses. The courses were divided into modules with different main instructors for each course. Instructors were identified from the academic community, interviewed and had to deliver a sample lecture to determine the best candidates for the delivering the course. CRECER staffers were then incorporated into the courses depending on the subject. All courses were very hands one with practical technical applications. Examples were chosen from actual field conditions so students could more readily relate to the given subject. The courses were set up in a chronological sequence leading students through the process of agri business management: Leadership and motivation, microeconomics, iinvestment planning, financial management, use of natural resources, international commerce, and enterprise development.

Scientific surveys

The M&E component was pressed into service to conduct project specific studies. In the long run these studies will have had more impact on project progress than the original "impact" studies.

rr·43

CRECER Project - Work Plan 1999~2000

The success of the studies is due primarily to the scientific manner in which the were conducted and the professional manner in which the studies were presented.

Although scientific method is the standard for all surveys rarely are they conducted in this form, rather short cuts are made to fit the client or the figures juggled for economic reasons or time constraints. CRECER was certain to carefully design the questions in accordance to the audience and to the desired outcome; a random sampling of the target audience was carefully calculated and strictly adhered to; a target population was also interviewed, and a test run was made. Outside surveyors were hired and trained and different surveyors hired for each separate survey. Data was processed on SPSS statistical package and results tabulated and interpreted according to desired questions. The final results with general comments were then presented to the participating organizations. In two very specific cases: UCRAPROBEX and EI Castano the results were very negative and displayed an unfavorable panorama to management and staff. In the case ofUCRAPROBEX member cooperatives were very displeased with UCRAPROBEX and in the case ofEI Castano their supposedly number one product, ketchup, had an abysmal marketing rating - ninth out of nine products. In both cases management accepted the blame as they had no choice because of the professional manner in which the study was carried out.

Lesson learned: it is worth the effort and expense to carry out scientific surveys as the end results are irrefutable.

11-44

I I I I I I I I I I I I I

I G. Budget

I I I

Equitable Rural Economic Growth Activity

I I I I I I I I I I I I I I I

Implementation Budget Work Plan 2000

Description

I. Salaries

A. Long Term Expatriates B. Long-Term Local Professional C. Short-Term Professional

ST EXPAT Advisors ST Local Advisors

D. Home Office Support E. Local Administrative Support

Total Salaries

II. Fringe Benefits

III. Overhead

IV. Travel, Transportation & Per Diem

V. Allowances

VI. Other Direct Costs

VII. Equipment, Vehicles, & Freight

VIII. Training

IX. Subcontracts

A. NCBA B. WOCCU C.IICA D. Gray Amendment

Total Subcontracts

X. Grant Program

SUBTOTAL ITEMS I - X

XI. General & Administrative

SUBTOTAL ITEMS, I - XI

XII. Fixed Fee

GRAND TOTAL, ITEMS 1- XII

Column I Implementation

Budget (US$)

757,433 234,872

178,650 100,158 70,761

573,826

1,915,700

572,585

1,084,862

126,154

610,998

1,436,804

287,897

472,826

2,080,633 1,398,272

521,806 346,686

4,347,397

475,000

11,330,223

351,309

11,681,532

844,670

12,526,202

II -45

Column II Column III Expended Projected through Expenses

December 1999 2000

699,784 57,649 199,005 35,867

174,736 3,914 97,934 2,224 54,723 16,038

491,422 82,404

1,717,604 198,096 A

449,441 123,144

973,885 110,977

88,926 37,228

549,345 61,653

1,321,338 115,466

294,244 (6,347) B

494,514 (21,688) C

1,474,404.26 606,229 D 1,112,525.08 285,747

409,995.97 111,810 346,685.96 0

3,344,039 1,003,358

111,330 363,670 E

9,344,666 1,985,557

289,684 61,625

9,634,350 2,047,182

669,846 174,824

10,304,196 2,222,006

Equitable Rural Economic Growth Activity Implementation Budget Cost Notes

A. Based on the recent reSignation of our chief of party we expect to realize savings in the long-term expatriate sub-line item. These savings will be applied to the home-office sub-line item to finance the salaries of our transition team. Additional cost savings will be applied to the short-term salary sub-line items.

B. Although the work plan budget line item for Equipment, Vehicles and Freight shows a negative amount in Year 2000 this overage will be covered under the line item, Other Direct Costs, as detailed in Amendment No. 14. Funds in the EVF, Allowances, Other Direct Costs, Grant Funds, and Training work plan line items are fungible.

C. Although the work plan budget line item for Training shows a negative amount in Year 2000 this overage will be

I I I I I

covered under the line item, Other Direct Costs, as detailed in Amendment No. 14. Funds in the EVF, Allowances, I Other Direct Costs, Grant Funds, and Training work plan line items are fungible.

D. The Subcontract line item for NCBA is $606,229, which is slightly above NCBA's average monthly expenditures. NCBA fully intends to expend the entire $606,229, on normal business expenses plus financing an additional large I training event and end of project severance for long-term employees.

E. Based on the review of the applications from credit unions to enhance their physical image, we have determined that I we will not likely issue total grants in excess of $250,000. As discussed with USAID, the remaining funds will be applied towards training of the bank superintendency and improving the microfinance technologies of credit unions.

II - 46

I I I I


CONSULTANT

Jose Linares Fontela

Christopher Bowes

Jack Farmer

Chuck Olson

Mark Gaskell

Raymond Manoff

Ernest Owens

Ian Duncan

Alexander McCalla

David Richardson

Boris Bravo

Raymond Manoff

Ernest Owens

Jose Linares Fontela

ANNEXA CONSULTANTS DURING 1999

I ASSIGNMENT

Follow up to consultancies on credit marketing strategies for credit unions

Evaluation and recommendations for Honey production

Follow up to the evaluation of irrigation districts

Provide technical opinion on Credit Bureau for CRS and Financial System Superintendency

Presentation on organic vegetable production

Woodworking and furniture-making consultancy.

Woodworking and furniture making consultancy

Cashew plantations genetic and improvements to the Processing Plant.

Review of the Rural Development Committee document

Analysis of FEDECACES capitalization/presentation to the Financial Commission of the Legis1ative Assembly on CUs.

Follow up to principles and techniques of farm management consultancy.

Team leader of the woodworking consultancy

Design Specialist of the woodworking consultancy

Marketing consultancy for CUs on credit and relaunch of financial products. Institutional image relaunch for UCRAPROBEX.

A- I

I DATES

January 17, 1999 February 6, 1999



March 3, 1999 March 13, 1999

March 24, 1999 March 28, 1999

March 17, 1999 March 31, 1999

March 17, 1999 March 31, 1999

March 22, 1999 April 19, 1999

April 8, 1999 April 11, 1 999

April 8, 1999 April 10, 1999

April 21, 1999 Apri127, 1999

May 16, 1999 May 30,1999

May 16, 1999 May 28,1999

June 6, 1999 June 19, 1999

CONSULTANT ASSIGNMENT

Rigoberto Lopez Development of market models and to provide technical assistance to OAP A

David Richardson Capitalization and Monitoring System

David Richardson Home Office Support to the new FRE coordinator

Francisco Hidalgo Technical Assistance to the RDC

Mark Gaskell First, out of three visits to promote vegetable production.

James Cawley NCBA's Home Office support for 1999-2000 work plan

Miguel Oman a Training on the Matrix for Agricultural Policy Analysis to OAP A and CRECER technicians

Brian Branch Evaluation ofthe impact of the CRECER's FRE component on the CUs assisted by the project

Mark Gaskell Second, of three visits to promote vegetable production

Ricardo Frohmader Feasibility study for the agro market in San Martin

David Richardson Participation in the second meeting with personnel of the Superintendency of the Financial System

Margaret Luttmann Accounting Supervision and installation of new accounting software to the field office.

A- 2

DATES

June 8, 1999 June 21, 1999

June 15, 1999 June 20, 1999

July 22, 1999 through July 24, 1999

August 17, 1999 through August 21, 1999

August 26, 1999 through September 5, 1999

September IS, 1999 through September 21, 1999

September 27, 1999 through October 16, 1999

October 31, 1999 through November 7, 1999.

November 2, 1999 through November 12, 1999

November 21, 1999 through November 25, 1999

December 9, 1999 through December 11, 1999

December 20, 1999 through December 23, 1999.


'. . :.. ~ ~;' ..... ~ -;;. .' -,~ . , ~.., .

I I I I I I I I I I

ANNEXB TRAINING EVENTS DURING 1999

I I I I I I I I I

I I

ANNEXB

I TRAINING EVENTS DURING 1999

I EVENT I PLACE I DATE I M I F I T

fStrategic plan for COMUS Usulutlin 12-Jan-99 14 5 [9

Grades and standards for com Sonsonate 14-Jan-99 29 0 29

Imp[ementation of Operational ManuallEl Nilo Board of Directors Zacateco[uca 15-Jan-99 40 0 40 I A.gribusiness/Store Management Sonsonate 15-Jan-99 10 0 10

Operational plan model San Salvador IS-Jan-99 [I [ 12

~ow to prepare the marketing and sales plans llobasco [9-Jan-99 9 5 14 I rw'orkshop on service possibilities/Lempa-Acahuapa Lempa-Acahuapa 21-Jan-99 35 3 38

Management position duties Uobasco 21-Jan-99 2 10 [2

Workshop: a marketing study Uobasco 22-Jan-99 9 I [0

Strategic plan results Suchitlan honey producers Suchitoto 26-Jan-99 24 6 30 I

~trategic plan San Vicente 26-Jan-99 [9 5 24

::lperational manual imp[ementation/E[ Castano Sonsonate 28-Jan-99 10 60 70

~usiness Integration Alternatives San Salvador 29-Jan-99 22 23 I ~trategic plan, COMUS Usulutlin 04-Feb-99 14 4 18

Operational manuallSES San Carlos Lempa 04-Feb-99 [I 9 20

Political Commission Meeting La Uni6n 04-Feb-99 12 4 16 I Political C~mmission Meeting Santa Ana 05-Feb-99 S 3 [1

Workshop: Ceramics painting finishes/MOJE Uobasco 09-Feb-99 9 5 14

Politica[ Commission Meeting Nueva San Salvador 09-Feb-99 S 5 13 I ~eminar-Workshop for organization and structure Sonsonate [0-Feb-99 [9 7 26

~tragegic and operational plan for SCPM San Migue[ II-Feb-99 IS 2 20

Political Commission Meeting Sonsonate 13-Feb-99 9 12 2[ I Political Commission Meeting San Vicente 15-Feb-99 17 0 17

Po[itical Commission Meeting San Sebastian, San Vicente [7-Feb-99 l[ 2 [3

Production process and commercialization of honey Suchitoto [8-Feb-99 26 2 28 I Nationa[ workshop to evaluate the cooperative financial system project San Salvador 20-Feb-99 67 15 82

~orkshop: Use and updating of SIGCOOP database San Salvador 22-Feb-99 6 2 S

Organization of a cluster San Salvador 23-Feb-99 9 7 [6 I Political Commission Meeting Santa Ana 23-Feb-99 II 6 17

Workshop: Motivation and Customer Service Uobasco 23-Feb-99 [7 22 39

Political Commission Meeting Nueva Concepci6n, 23-Feb-99 [0 5 15 Chalatenango

I Po[itical Commission Meeting Metapan, Santa Ana 25-Feb-99 II [2

Political Commission Meeting Nuev San Salvador 27-Feb-99 12 4 [6

Workshop: Agribusiness: Entrance to the XXI Century San Salvador 03-Mar-99 31 7 38 I

mplementation of Operational ManuaIJ ADECPRO Sonsonate IO-Mar-99 30 9 39

Participation of the producers in the development enterprises sustainability Sonsonate [ [-Mar-99 99 3 [02

Workshop for CENTA technicians on agribusiness San Salvador 1 [-Mar-99 [7 [S 35 I A.gribusiness/Store Management Sonsonate [5-Mar-99 10 10

Workshop on Agribusiness: Decision making through products costing San Salvador 17-Mar-99 9 2 [I I I B-1

I

I EVENT PLACE T I

plementation of Operational Manual/ AGROCRECER Sons onate 17-Mar-99 40 43

trategic plan presentation: COMUS Usulutin 18-Mar-99 26 9 35

I nalysis of a credit request San Salvador 19-Mar-99 4 5

perational plan presentation!Lempa-Acahuapa Lempa-Acahuapa 24-Mar-99 33 4 37

ternational marketing and agriculture products of agroindustries San Salvador 24-Mar-99 3 4

I rganic Vegetables production San Vicente 24-Mar-99 45 I 46

trateglc plan presentation: ACOPADES San Vicente 25-Mar-99 25 5 30

rganic Vegetables production Sonsonate 25-Mar-99 26 3 29

orkshop for CENT A technicians on agribusiness San Salvador 25-Mar-99 18 21 39 I tematives of soil fertility Sonsonate 26-Mar-99 26 0 26

bservational trip and motivational talk Sonsonate 27-Mar-99 29 4 33

orkshop on Operational Plan Model: EI Castano San Salvador 04120/99 12 3 15 I perational Plan Presentation - EI Castano Sonsonate 04/16/99 8 11 19

orkshop on legal aspects of the rural enterprises ADECPROISonsonate 04/21199 13 0 13

eminar on esencial oils extract of wild lemon COMUS/Usulutan 04/27/99 2 I orkshop to present and approve the statutes/Producers Association CRECER Sonsonate 05110/99 522 43 565

gal personality presentation to the Producers Association CRECER Sonsonate 05118/99 551 31 582

orkshop to prepare the Strategic Plan EI Refugio/San Salvador 05114199 12 13 I asic tools in computer packages Ahuachapan 05112199 8 9

orkshop on practical accounting to the CRECER Producers Association Sonsonate 05/26/99 9 2 11

orkshop on strategies for the commercialization of agricultural AGROCRECERlSonsonate 05/26/99 59 6 65 I rgamzatlonal model - CRECER Producers Association CENT NSanta Ana 05127/99 28 2 30

orkshop on strategic planning DAA-MAG/San Salvador 05106199 11 6 17

I orkshop on computer packages handling SES/San Vicente 05/27/99 9 4 13

orkshop on cost control EI RescatelUsulutan 06/03/99 24 7 31

Las Marias/Usulutan 06/08/99 15 4 19

I orkshop on production costs control CODEUSMUUsulutan 06/22199 12 4 16

orkshop on SIMPLE system ACOPADESISan Vicente 06/08/99 24 25

perational Plan for lNSAFOCOOP Zacatecoluca 06/04/99 47 8 55

I perational Plan for lNSAFOCOOP San Vicente 06111199 26 4 30

perational Plan for lNSAFOCOOP Cojutepeque 06118/99 29 6 35

perational Plan for INSAFOCOOP Dobasco 06125199 28 7 35

Las Marias/San Miguel 06/12199 65 36 101 I ecnicas de Avahl0. ADECPRO Sonsonate 06/17/99 5 I 6

orkshop on feasibility study APROAGROISuchitoto 06/16/99 17 5 22

orkshop on cooperative entrepeneurial formation CONSALCOOP- 06/22199 35 5 40 I CONFENACOA. S.S.

bservational trip to see the organic vegetable production Las Pilas/Chalatenango 06/30/99 9 2 11

Do basco 04/20/99 12 8 20

nalysis and Evaluation of the first year/Dobasco Cooperative Cojutepeque 05128/99 12 8 20

ood finish and quality control San Salvador 05118/99 14 1 15

ndustrial safety for woodworkers Nahuizalco 06/02199 12 0 12

ome enterprises San Salvador 06110/99 0 45 45

I Refugio's Strategic Plan Presentation San Salvador 09-Jul-99 20 2 22

bservational Trip to SES - Cane varieties for organic production San Carlos Lempa 13-Jul-99 35 0 35

ost-harvest and commercialization of basic rains services - SOCOPU Usulutin 14-Jul-99 21 2 23

B-2

:sf

I I EVENT I PLACE I DATE I M I F I T

~asic tools for computer software use - ASID Ahuachapan 16-Jul-99 9 2 II

I r-DR Forum - Central Region San Salvador 19-Jul-99 16 78 94

PPREX legalization documents signature Usulutlin 30-Jul-99 54 IO 64

!vegetables production plan - Lempa Acahuapa Lempa Acahuapa 27-Jul-99 44 5 49

~egional Organization promotion Santa Ana 30-Jul-99 37 0 37

I ~egional Organization promotion Ahuachapan 12-Aug-99 47 4 51

~ifferent types of entrepreneurial organization - SES San Carlos Lempa 19-Aug-99 14 7 21

rentralized accounting systems - SES San Carlos Lempa 19-Aug-99 8 8 16

I DR members workshop - Team Building San Salvador 19-Jul-99 12 9 21

fr'he partnership enterprise - Regional Organization Sonsonate 20-Aug-99 38 6 44

~trategies identification to improve the production organization - SES San Carlos Lempa 26-Aug-99 29 24 53

I Field trip: Organization experiences and projections - ACOPADES San Vicente 3I-Aug-99 50 10 60

pevelopment of a general assembly - ArteCrecer Dobasco 31-Aug-99 9 16 25

t)peedlings production for organic vegetables San Vicente 02-Sep-99 29 3 32

I Forum for CENT A extension technicians western zone Sonsonate 02-Sep-99 77 13 90

Presentation of opinion poll results: ketchup costumers habits -ELCASTANO Sonsonate 03-Sep-99 16 30 46

~Ilaboration of the Agricultural and Agroindustrial Plan - ACOP ADES San Vicente 03-Sep-99 17 0 17

I ~gribusiness course for SIADES members San Salvador 09-Feb-99 25 2 27

~trategies identification to improve the production organization - SES San Carlos Lempa 09-Sep-99 32 10 42

Irhe partnership enterprise - AGROCECER case, presented to CENTA technicians Sonsonate 10-Sep-99 16 I 17

I ~itial process for the local groups conformation Chalchuapa 13-Sep-99 14 6 20

Forum for CONFRAS - Agribusiness development with entrepreneurial vision San Salvador 14-Sep-99 36 13 49

ronformation of the zonal board of directors - CENT A Ahuachapan 16-Sep-99 66 4 70

I A.gribusiness course for SIADES members San Salvador 16-Sep-99 22 3 25

mitial process for the local groups conformation Tacuba 22-Sep-99 35 3 38

Problems and solutions identification for the economic development of CORALAMA San Miguel 22-Sep-99 50 3 53

I Presentation on commercialization alternatives - AGROCRECER Sonsonate 23-Sep-99 43 2 45

Analysis of the socio-Iegal situation of the affiliated cooperatives to CONSALCOOP and San Salvador 28-Sep-99 36 3 39 rONFENACOA

nitial process for the local groups conformation Atiquizaya 28-Sep-99 47 0 47

I ~trategies identification to improve the production organization - SES San Carlos Lempa 30-Sep-99 [9 4 23

Presentation on the AgroCrecer proposal Sonsonate 30-Sep-99 19 20

~se of Windows '95 - Las Marias cooperative San Miguel 10-Sep-99 10 2 12

I Political Commission meeting C.F. Nuevo Siglo Chalatenango 27-Jul-99 14 3 17

Political Commission meeting C.F. Uni6n La Uni6n 29-Jul-99 [1 4 15

Political Commission meeting C.F. Uno Santa Ana 3 [-Jul-99 12 2 14

I Political Commission meeting C.F. Dimimica San Vicente 09-Aug-99 8 9

Political Commission meeting C.F. Unidad San Vicente II-Aug-99 II 1 12

Political Commission meeting C.F. Solidez Total Nueva San Salvador 14-Aug-99 II 3 14

I Political Commission meeting C.F. Progreso Nueva Concepci6n 17-Aug-99 8 2 IO

Political Commission meeting C.F. EI Esfuerzo Sonsonate 21-Aug-99 II 5 16

Political Commission meeting C.F. La Unica Metapan 27-Aug-99 II 2 13

I Political Commission meeting C.F. Favorita Nueva San Salvador 10-Sep-99 10 9 19

Political Commission meeting C.F. Avance Santa Ana 12-Sep-99 II 2 13

~ooperative business services, ASID Sonsonate 02-0ct-99 22 5 27

I Field trip to show small business Lempa Acahuapa 05-0ct-99 147 18 165

Proper handling of Dulce de Panela - ACOP ADES San Vicente 05-0ct-99 19 3 22

I 8-3

I Sb

I I EVENT I PLACE I DATE J M I F I T

Entrepreneurial development for credit unions - CORDES 06-0ct-99 22 5 27

Workshop to identify Problems and solutions to improve performance, CORALAMA San Miguel 06-0ct-99 16 35 51

I Windows '95, SOCOPU Usulutan 07-0ct-99 33 16 49 Windows '95 - Las Marias '93 Usulutan 08-0ct-99 8 3 II Administrative and Accounting aspects - Honey Producers CORDES Suchitoto 08-0ct-99 8 I 9. Business plan for the credit unions - CORDES San Salvador 13-0ct-99 9 3 12 I Associativity model for small entrepreneurs - CENTA, San Andres San Andres 13-0ct-99 35 9 44 Updating of socio-legal situation for CONSALCOOP/CONFENACOA San Vicente 07-0ct-99 112 5 117 Phase Ia. Sonsonate 12-0ct-99 I San Miguel 13-0ct-99

San Salvador 15-0ct-99

~pdaung of soclo-Iegal situation for CONSALCOOP/CONFENACOA Sonsonate 07-0ct-99 88 3 91 I Phase lb. Lempa Acahuapa 12-0ct-99

San Miguel 13-0ct-99

San Salvador 15-0ct-99 I Updating of socio-Iegal situation for CONSALCOOP/CONFENACOA La Libertad 09-Nov-99 87 5 92

Phase Ic. San Miguel l2-Nov-99

Lempa Acahuapa l6-Nov-99 I San Salvador 19-Nov-99

Updating of socio-Iegal situation for CONSALCOOP/CONFENACOA La Libertad 07-Nov-99 92 9 101

Phase Id. San Miguel 07-Nov-99

I Lempa Acahuapa 10-Nov-99

San Salvador IO-Nov-99

[mportance of balanced nutrition in vegetables and fruits - SES' school farm San Carlos Lempa 14-0ct-99 19 5 24

I Political Commission meeting C.F. La Unica Metapan 18-0ct-99 17 3 20

~etmarketing presentation to credit unions staff members CRECER 18-0ct-99 8 6 14

Political Commission meeting C.F. Principal Santa Ana 25-0ct-99 13 10 23

I Political Commission meeting C.F. Nuevo Siglo Chalatenango 26-0ct-99 13 I 14

Political Commission meeting C.F. Sihuatehuacan Santa Ana 29-0ct-99 12 5 17

f\gricultural and livestock products - CENT A Sonsonate 29-0ct-99 35 36

Political Commission meeting C.F. Uno Santa Ana 30-0ct-99 9 10 I Political Commission meeting C.F. Unidad San Vicente 03-Nov-99 13 :2 15

Making sustainable businesses - Western Regional and La Tiendona San Salvador 03-Nov-99 19 0 19

Political Commission meeting C.F. Avance Santa Ana 04-Nov-99 9 4 13

f-Iorticultural production alternatives - Agrocrecer/CENTA Sonsonate 05-Nov-99 31 3 34

Political Commission meeting C.F. Dimimica San Vicente 08-Nov-99 21 2 23

Political Commission meeting C.F. Favorita Nueva San Salvador 09-Nov-99 9 6 15

Field trip to show coverage crops (tomato, pepper) at Lempa Acahuapa San Vicente IO-Nov-99 37 3 40

Market Price system presentation to SES Santa Tecla II-Nov-99 5 3 8

~oard election - Producers Association/CENT A Ahuachapan II-Nov-99 55 8 63

Political Commission meeting C.F. EI Esfuerzo Sonsonate 13-Nov-99 13 4 17

Local groups roll in the entrepreneurial strengthening, CENTA Chalchuapa 15-Nov-99 42 4 46

Political Commission meeting C.F. Progreso Nueva Concepci6n 16-Nov-99 12 2 14

f,vorkshop to initiate the process oflocal groups organization, CENTA Metapan 17-Nov-99 36 I 37

r,vorkshop to prepare the Strategic Plan of the Western Region of CENT A Santa Ana 18-Nov-99 17 2 19

pbservational trip on organic cashew crops, SES Montecristo Isle 18-Nov-99 16 2 18

Marketing Technics Nahuizalco 20-Nov-99 16 17

8-4

I I I I I I I I I I I I I I I I I -I I

EVENT

~arketing Technics - llobasco and MOlE cooperatives

pperation Plan for Nahuizalco cooperative

PERLAS Indicators analysis - C.F. Unidad

fnventory handling - nobasco and Nahuizalco cooperatives

ax aspects handling

Forum for three CENT A regions (Central, paracentral and western)

~oard election - Producers Association/CENT A

Pre-diplomado in Agribusiness

Political Commission meeting C.F. Uni6n

Board election for producers local groups, CENT A

Board election for the confonned local groups, CENTA

[nitial process for the local groups confonnation, CENT A

Board election for producers association, CENTA

Board election for producers association, CENTA

IrOTALES:

B-5

I PLACE I DATE nobasco 20-Nov-99

Nahuizalco 20-Nov-99

San Vicente 20-Nov-99

llobasco 20-Nov-99

llobasco 20-Nov-99

San Salvador 24-Nov-99

Santa Ana 25-Nov-99

Santa Tecla 27-Nov-99

La Uni6n 27-Nov-99

Candelaria de la Frontera OI-Dec-99

San Julian 07-Dec-99

Texistepeque 08-Dec-99

Metap:in 15-Dec-99

Santa Ana 21-Dec-99

I M I F I T

12 5 17

12 I 13

11 4 15

14 9 23

29 12 41

101 II 112

42 6 48

27 7 34

12 3 15

53 2 55

79 31 lID

37 5 42

49 4 53

54 2 56

1009 181 1190

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