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Honduras Municipal Development Aid/Lac/P-571

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Honduras Municipal Development Aid/Lac/P-571 UNCLASSIFIED UNITED STATES INTERNATIONA- DEVELOPMENT COOPERATION AGENCY AGEN Y FOR INTERNATIONAL DEWVLOPMENT Washington, D. C. 20523 HONDURAS PROJECT PAPER MUNICIPAL DEVELOPMENT AID/LAC/P-571 Project Number: 522-0340 UNCLASSIFIED .-...- -._. A, AttachML... I C'.,xpter 3, Hz.ndbook 3 (TM 3:43) DOC-LNT AGENCV FOn INTgNNATIONAL DRVuLOqmFW I 1. TL 14SACTIO* CODE A : Add Am-mt .&m1,cr CODE PROJECT DATA SHEET 19JA D- Dce.euJw 3 COUNTRY/LNTnTY S.PROJECT N-..ER HONDURAS I E522-0340 ­ 4. BURLAU/s)FFICE 5. PROJECT TrrLZ (,,a m m 40 cA wi,--irn LAC T- MUNICIPAL DEVELOPMENf F. PROJECT ASSISTANCE COMPLETION DATE (PACD) ". ESTL4ATED DATE OF OBLIGATION (Unde ":' brsow. enter 1. Z .3 or 4) .SCA DO Y'Y 101 613101 q w" F-y LOJfii it. c. r L96 ______________________ S. COSTS ( 3000 OR EQUI VAZ.E.NT SI1 :AST FY 90 LIFE OF PROJECT A A. e ToLhISOREB. FX C. L/C D.Tou E. FX F. 7C C.Towd AM_ Apppn_ed_ To_ _ 872, [ 128 1,000 . (Grant) ( _ I t 1118,747f )1 1,253 )10000 ILoan ( ____________ _________ IJ(I ________ o IL~ I Host CounItr, 00 I 5,000 15,000 15,000 Othce Dono"-. "872 5-128 1 6,000 TOTALS i__ _ _ _ _ _ 25,000 9. SCHEDULE OF MD FLNDING (5000) A. APROJPRM'.ARY C. PRDAXY . OBLIGATIONS TO DATE E. A.MOINT APPROVTD F. LIFE OF PROJECT PRIATION PURPOSE I TECH. CODE ITiiS ACTION CODE l.Crand .Lo ". 1. Grant 2. Loan G.n: 2... Loan 1.Grant Loan )FN 1 260 1033 0 0 1 5,000 5,000 I (2) PSO 720 867 -5000 .ooo 7_ 141 1 TOTALS 4 [ 0 0 oooo I0 10,o000 1 10. SECONDARY TECHNICAL CODES (maxwnw 5 codes of J pon"onu eachl) I L SECONDARY Ph'RPOSE CODE 869 I I I I I1 7 0 12. SPECZAL CONCERNS CODES (maxwnwo 7 codes of4 posnow ea&)h A. Cc& I W IEQTYI PARTI L Amount 1 1,000 1 2,50O 6,500 1S. PROJECT PURP'OSE (,maximunm 480 cA~c ra) The purpose of the Project is to enhance the participation of the Hondur1 populace in the local democratic process and improve the operational capa city of municipalities to respond to the land, infrastructure and public I service needs of their constituenLs. i -j 14. SC.HEDL'LED EVALUATIONS b3.SOURCE/OIUGLN OF GOODS AND SERVICES 9 1 11=1219141 r,= 1 __1 I&.AMN13ME.N S/?4ATUR.E OF C3ANGE PROPOSED (Thu 4 pqge I of 4 -- F? .4meydmrvi&) &&DATE DOCUMEXLT RZCEIVED 1t4 AMMW OR FOR AWIW DOCt!. OVED MENTS, DATE Of DISTR[JLTION BDate d Sipad O Y DO YY 7~~TW PROJECT AUTHORIZATION Name of Country: Honduras Name of Project: Municipal Development Number of Project: 522-0340 1. Pursuant to Sections 103 and 106 of the Foreign Assistance Act of 1961, as amended, I hereby authorize the Municipal Development Project for the Republic of Honduras ("the Cooperating Country") involving planned obligations of not to exceed Ten Million United States Dollars ($10,000,000) in Grant Funds over a seven year period from the date of initial obligation, subject to the availability of funds in accordance with the AID OYB/Allotment process, to help in financing foreign and local currency costs for the Project. 2. The Project consists of a multifaceted initiative to increase citizen participation in decisions related to the allocation of land, public service and facilities by municipal governments, and to improve effectiveness in municipal government in responding to citizens' needs for land, public services and infrastructure. The Project will be implemented by fourteen key municipalities and selected Central Government Agencies, and the Ministry of Finance and Public Credit. By the Project Completion Assistance Date, it is anticipated that key central government agencies will be implementing measures to encourage fiscal responsibility and increased revenue at the municipal level. In addition, central government ministries and autonomous agencies will have taken specific measures to facilitate municipal governments to meet the service needs of their constituents. At the municipal level, assessments of problem areas will be carried out and action plans will be developed in consultation with the community in each municipality participating fully in the project. Project funds will be used to finance technical assistance, commodities and training activities in the key areas of municipal intervention. Project management costs will be financed along with project evaluation activities which may include a series of special studies to assess unique features of this new initiative. 3. The Project Agreement, which may be negotiated and executed by the officer to whom such authority is delegated in accordance with AID regulations and Delegations of Authority, shall be subject to the following essential terms and covenants and major conditions, together with such other terms and conditions as AID may deem appropriate. /, 4. Source and Oigin of Goods and Services Goods and services, except for ocean shipping, financed by AID under the Grant shall have their source and origin in the United States, Honduras, or countries of the Central America Common Market, except as AID may otherwise agree to in writing. Ocean shipping financed by AID under the Grant shall, except as AID may otherwise agree to in writing, be financed only on flag vessels of the United States. 5. Conditions Precedent to Disbursement a) First Disbursement Prior to the first disbursement of the Grant, or the issuance by A.I.D. of documentation pursuant to which disbursement will be made, the Grantee will, except as A.I.D. may otherwise agree in writing, furnish to A.I.D. in form and substance satisfactory to A.I.D.: (1) An opinion of the Attorney General of the Republic or of counsel acceptable to A.I.D. that this Agreement has been duly authorized and/or ratified by, and executed on behalf of the Grantee and that it constitutes a valid and legally binding obligation of the Grantee in accordance with all of its items; (2) A statement of the names of the persons authorized to act on behalf of the Grantee, and a specimen signature of each person specified in such statement. b) Additional Disbursement (1) Prior to any disbursement of funds or the issuance of any commitment document for implementation of the Municipal Development Support Fund component of the Project, AID and the Grantee will conduct a financial review to determine the impact of the Fund on the Grantee's macroeconomic program. The financial review will examine progress toward financial sector reforms, liquidity in the private financial sector, changes in lender practices regarding municipal loans, municipal financial management achievements, and the macroeconomic policy environment. The results of the financial review will be used to determine whether operations under the Fund should be initiated. AID and the Grantee will agree upon whether to initiate the operations of the Fund and will indicate their mutual understanding in a Project Implementation Letter. (2) Prior to any disbursement of funds or the issuance of any commitment Aocument under the Project Agreement for implementation of the Municipal Development Support Fund component of the Project, an environmental assessment will examine the potential impact of municipal capital investment activities in the areas of: water supply and sanitation; drainage; road construction and maintenance; building construction, and solid waste disposal. This assessment will develop an environmental review system which will be employed by the municipalities prior to initiation of an), specific infrastructure or construction activity which uses local currency Municipal Development Support Fund resources. 6. Covenants (a) The Grantee agrees to carry out annual reviews of the Municipal Development Support Fund to assess its consistency with Project objectives and macroeconomic policy. (b) The Grantee shall make every effort to ensure that counterpart funds are available in a timely and satisfactory manner. Upon initiation of the Municipal Development Support Fund, the Grantee shall provide AID with quarterly reports on the provision of counterpart contributions which shall be submitted no later than 30 days after the end of each quarter. Should the Grantee fail to make available amounts designated in the budget or fail to make those amounts available in a timely and satisfactory manner as determined by AID, AID may suspend assistance tj one or all project activities until such time that AID shall determine that the assistance may be continues or that one or more of the Project activities be terminated. John A.a Missi on Director ACRONYMS AID Agency for International Development ASAP Agricultural Sector Adjustment Program BANMA Municipal Development Bank (Banco Municipal Aut6nomo) BCH Central Bank of Honduras (Banco Central de Honduras) CY Calendar Year DEC Executive Direction for Cadaster (Direcci6n Ejecutiva del Catastro) DGAATM Direction of Municipal Technical Assistance (Direcci6n de Asesoria y Asistencia Tdchica Municipal) DGEC General Directorate for Statistics and Census (Direcci6n General de Estadisticas y Censo) DGU General Urban Directorate (Direcci6n General de Urbanismo) ENEE National Energy and Electricty Company (Empresa Nacicnal de Energia Electrica) ERD Environmental Review Document FOHPREI Honduran Preinvestment Fund (Fondo Hondureho de Preinversion) GDP Gross Domestic Product GOH Government of Honduras HG Housing Guaranty HONDUTEL National Telephone and Telegraph Corporation ICMA International City Managers Association IDB Interamerican Development Bank IMF International Monetary Fund INA National Agrarian Institute (Instituto Nacional Agrario) INC/7 Central American Institute for Business Administration (Instituto Centroamericano de Administraci6n de Empresas) IQC Indefinite Quantity Contract IRR Internal
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