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PDABC748.Pdf f)ROJECT' HP 1:R -UPPORI 1("~l L l 8l PURODLIPOON (~~~~~~::.! ? ......... Amoin L; 20,000, 00 Subir:i 1 l.oki l.o A rE/W NoerNEX' 8 6. ANNE'XES ANNEX A PID APPROVAL CABLE -ACT1 I32INl ctI RIG f' RTTADS' 4O' e .M ZliRjU UU UU ! ZZHC . P231755Z APRI6 C~G AI 'F4 rSECjSTATZ, WASllDC, rq0 DtIbSfAI'M RfIORhI~r 7,,L43. UNGLAS-- SiCITION -(),01 7- -- T 25 AIDAOQ 1Z.0 . 1 23 5 6 :, N/A SUBJECT: SE N-GAL AG PRODUCTION SUPPORT 535-2259 1. ZC PRA PROV7E DTH s P ID E0R TaY SUzJEC"T, PF.OjZ'T ON .ARIL 11 19 S AND, DI F CT; T T TTK PP B3'SU 1'1T .,,"0T 0.- A D1110,'TONFO S F1,1:1.,??PROVAL.T:H TEtS S ON CANBE E CGiIMI tD"OK TEE SIGN 1IICARK MR~ET IN T43, EID DOCUMZ ,T OVER 'IHE 2ARL 17I( RES lGj L*iU~ R A'~ STILL i&. qU! 'T1ON SC OIcRN';IN3CN TH z17Ar S~cC4 T0 ~At iD ,TH7-CRE DIT CONPOWL-TS, TEE EC'?l E'~OLYSUPO -$i~~SIC CONCEPT. OF E PRzOJCT ' -' 0 LLOW IM, GCU IDANC Z WAS D-LVi;LO0P -S 3Y T EE ECFE AND THE F OJZCT C ASAC~ITE DIREC7TTD BY T E :C?R, TOR IN'CLUJI)N Ii TH'S' '~FPO I AGRCULTRAL ~rleg Cc ; iOflUCTI ON iN SEt'i'GAL AND TEE C0,1?LK IT 3? D7 11EL~W 1.N Ki- W PRI1AT2 S'ECTOR CAPAEI-LILI -S , THE E?;RE7 ,A.,CO.ND LEC T ;AT ,E1A IL TD ~'AF7 31IIL I Y ANAL "S;'- 3Z 0."1?L T D ?R 10 TO S ' JulGAlT 1N N:DS,. :TH:,0L LOC 1iNG AN.X'L _1S CC'1LEBTZD ES± LD B AND SUMMABRIZEDIN"TEpF1 .~N A.; ANALYSIS OT' THE FRI VA' 7CTOP CO1'i IL A'1 MIRA,,I NTS FC I fiG TH E' OFRI VTE .3ECTOF IN ?FtVIDI, l. l.y ~AGlIICU LTUP. AL 'INPUT S TOCREk,s "" t:S :D I T v -.R THE ?4 Z.PJC T4AS STJRUC TU RED T0 1)EAL W l$'3. IST?A IN T S T.-H7.'PPSHC LD l SC R I5'2TiE" DTIVA T STC-T07' -lU%..ETL .~$ORNG .XGRICULTURF ~I bPULTj DETR I'DUTIO[ AN~D. CE ALS II C:fZCAL 'AC)TI lIO_-502COO3P* T IV7S A13 A 'CTO0R ,THIS SIioGTLn ALSO.E DLESl.'IED. TFI S ,DIS'CUSS'ION SilCULD COVER VARLOrUS OP77-5TIONiS (I-x. iA3-,ICULTUi.;i.irPuTs, m1RK'IG O HTR r.ON_.,U 'ABLS~; FTC. ANI~iHOULD :I NCLUDE'.FINANCIAL! CON DI T IONS 'AND VIlABILITY 4 CA?lTt.LIZAr ION , PAST PROFITABILITY, FTC.)P,' ORGANIZAIIONAL STRUCIJJRE, 'YEAFS IN OPFPATION,-4 AND P'ESMENT OR'PAST ., ..AIRRANGi;MENT5 WITH THE COMMER U.AL BAN"ING SYST31M IN ,,,!_G, 'N, H FRE IF~NO' ABLE TO DO CR 0 SS'-THE-BOARD, 'S'IVERAL CA R STLJ'DS OF "TYPICAL,".. E~T1.RPSES~WOULi ISUFFICE. I r:' y.r. .. T1I 1c"? EiOLDDSCEIB2 4 HAT' 'ROJ''Z T U.' lN :c~~T~E~'R IVAi GTOP 'TO~"T A:' ~ANf,'PDIL> '<~~ RITl OR'. F, 0 T 0 4. MARKET ING AND 'W)IAT !iIfL E TEE IELATIV B R0LE O-t0FTHiE ~ (O RDS)I'T':S.,AR&r TiY 7'1iK PA CI)2 'I'llE '~1 110131,1)rAf-'O I NC r.(11) PNA1SISA'<' JOF (AN( j A Il )~:I "fm N I'd K SYyZiJ i.':I:TO ASL'. A S~sAIA~.:i~~cr~E BI SIEIBUTION EIVATE S'CrO. APP!nOACi! T" I NPUT AD CEREALS 1AHKFTIN. ', TIS INFO' ATION, ShOULD RESULT IN A'1ETTER UNDEfSTANDIO FARTICIPANTS .OF, THT7 POTFNTIAL IN Tilf POJECT AND SHOULD ALSO ASSIST IN ESTABLISHIN, ]ASELINZ DATA SB BAN' ZI W-dSECTOR~. 'THE 'Pp SFOULD IN'CTAJDi NALYSIS OF' TEE BANI, ~~jSTAETI OSECTOR AS I RELATES TO THIS PROJECT, N" WII1H THE CENTRA BAN', THL PRIVATE COM~iYROTAL /p[ErNKS, AND OTHERI1?MDAI CREDI'I INSTITUTIONS, IF ANY, WRICH MIGHTBE PkRTICIPATING IN ANALYS PROGRA.. -1TE2, IS SHO3ULD DISCUSS THE REL fIVE C.PAILITIES OF TEESE INSTITUTIONS, HICF ARE LI" LY TO ?NRTICIPA E IN TE CEDIT PrP' ?..M TO"ETER WITF 'T. -'CNICAL AND THER ASSIST ANC THAT MA.Y BE NED 7D. W7 UN zPSA ND THAT TZE ..ISSICN...... ...IS ..RYIN,-N3 OUT .'AA ..... TTUDY .DOF ..T -E, . BA NK. IN GG CTOR,, . .. ..... ..... AND THIS SEOUDK PROVE HIGHLY RELE'ANT TO THE DESIGN ~C. CREDIT. THE AST ASSOCIAT7S RllpnT AND 4.IDEITIFIED OTHiEF STJDIES FINANCIAL COf STRAINTS AS A KEY: IMPEDINNT TO ~ iINP-UT DlISTRI -UTION11. 'MORE INFOFMATION IS NEEDED, ,owBVn, ABOU:T THE TYPES OF CF,:-CErDIT "ARR NC-6111iTS YPPRSENTYAA11 UP ECI CUR.... ,T L- Y ' , AXIL LE IN S .-NE AL . TEE PP S i0 LDDH: RI : RNT IttSTITUTIO.... .....AL AAR a . I.N.\' 7- T ... ..T ' S ..OOFF C CF-TS;"R, II T ..INOi .. .. .... ... ., . PFRO VID D', C DTT10 NS .k D T-2 R'.s'. U S' IC ? T F,'iD .INANCI...L POSITION, OF 3AN' I ;S7CTOR, ETC. T;:- :,.;j O. PP C, Tt iA.1.11 DFi A T1.7 , R TP TTON n7 P ?R : .'.: UNl' I~ iL L' '4*id WITU 60.11 A~I~O AS$UR E THEIR t1).*I~'LL USAGE. UPON INR=AT , I%1I\ PARAWRIAAA 2 . A-V,. THE PP SH3U ,LD D..SCRI B TW-. HI',"'.-CII LIKELY L;AN-. NTS, ,.ETER INDIvIDUAL OF INSTITTION UNDERrnL, (HTE .CREDITPROGRAM AND -THT CHARACTETISTICS OF TH-SE ECRRO'ES. * IT IS SUG'g STZ:D TO rHE MISS ION THAT THEY MIGHT PURSUE THE IDEA O ENGAGIN, ' A LOCAL CPAFIRI. TO PiOVIDE THE ANALYSIS 3? TEE 'CRET'DIT P,OGa:AM MECH ; NISM.' PP S OULD ALSO INCLUDE ANLYSIS OF T-,CTI'E D.'!ND FOR CREDIT.,!NLYI T). 'GUARANTEE FUNDS . A STRON GP R F THE E.R.ENCWS P.R..S.. ED .EX. -BY ECPR FOR AID SJF*JDS TO Ez USED FOE -, PAT4;.R,-DIT :,I- 'THAN 'AS GUARANTEE FUNDS, ThKE COtMMERCIAL. BANKS . '1 PARTICIPATINOGL IN'TH.E PROGRAM,NT SHOULD';* EXSD SS:TTED TO BEAR __HAL R ISK T ZPDSIGNTAMSHOULD ASSESS TEE .'...' 'A W - T.TF 23A4­ 4 ~4% IfNC1;,AS SECTION.02 'Op a2 STA TE 1 5? 5 - I CFN SI C APY T01IFDECE COMUCIAL BANKiS TO PARTICIPPATF,IN THE PROGRIAMFREAPTH NRIS LIM'.ANTBExP(JN SCOULD UJSE LOCAL ,CUL112,SCIES I TsANDr DED . IHMISSION SNEGOTIATE FRiO .v OTH!ER PROortAI OR SUCjiA. FUND WITHl THE "ENT AL DAN' TO PE :YINMCED lY' 'INTEiEST LARiNED ON FUNDS L2;qT TO CO01*I',0RCIAL BANKS . FINAr.-DECIS'rONs CONCERNING till' GUKApNT M~ C HANISM D1!;SI1N OF ANY' SHOULD FOLLOW TICOHPLiTION OF Ti- CREDITi AND BAN,KING SECTOR ANALYSES. ': E. CREDIT '1ANAGEM'ENT' . TEE "PID PROPOS D THAT THE, TA' TEAIM BINVQLV BE DW.J JD1R-CT-mNAC OREDV;' TH~ ......... EE PR RE COMMENDE THA1T THE ROLF OF THE TA. *' T~EAH E LiNITEDi.TO THAT OF.IMONITORING TILE FLOW OF FUN'DS,.THE TEAM COULD SUB-CONTRACT FIRM FOR TEISWORK................. IlrH A LOCAL CPA F F i--R 'DEMAND FOR INPUTS AiNjD N-ED FOR CREDIT. C TE 031.ECTI.E WLIL2 OF THE CREDIT CM PO T IN THIS ACTIVITY IS SUPPLI-.RS CREDIT, IT IS NOT CLEAR PARTICIATI'. HOW FARjiZRS WILL E ASSURD.. PP S'CUL ASSUMPTIONS SE['iiOUT .EI. 'MAD A0U' F.R. .IS CREDIT. I- ASU-IN I- ON E IS TlTSPLS ILL PF-OVIDF SOM1E S:OiCT-T :.... i..DIT TO YA13.... C FINAUCIAL , .PP S L T.DOCA: JL -.. ANALYSIS TO D-EI.,ONSTRTSE S- T. O, :C-2DIT. ,U. TEIS5N.TA'LSIS WOULD N7EED '7-0 INCL UD7. A DR.OUGHT SCi}rARIO' WH:i,1 FaRtMR EPAYIENTS SP0SSIBLE WOULD BEDIFFICULT. OPTIONS FOR HA'DIN THr D-QOHT' RISKE1C'JSS7-,D IN ... F. INCLUDED EE'NTIYING. POSSI "'-_'-L -AOF PUOLIN] 0, . S_ _:ACROSS SEASONS OR UNDEY) SOME TYPE CT I'JSURUCE . .. p...GR Ik. .. 3 0 . C 0 IDI'IT1NA TIT T ANDIPOLI Cf 1NV7I ROUN'-IT. DURI. 'EC.R iOCUSED DISCUSSION ON NEED AND "',IP7CTED T!IING OF 303 STATEMEN"2 ON CEREALS' POLICY.**EP MISSIONS CONZ LUDED 'THAT, GIVYN DIRECT :INVOLV*.EN T WITHGs 'AND DONORS, ANALYZ It,' CONTENT' IN F STATEM"NT, IT IS NOT :.;NS-,SARY TO D*.LAY PROJ,.,T DESIGN UNTIL YORMAL ISSUED,. ,LGIV'4 CEREALS POLICY IS .SITUATION.RICE. P.IV-.TIZATIO-N, IT IS EO'EVZF, TIIAT"THE GO- UFITICAL,UNDE.RSTAND .- 5: :\ AND FULLY: -ONCEPTSAND CONDITIONALIITY' RF,"JIRFD AS O THIS PROJECT. PART ' TH IS 'WOULD REQUIRE AN A:NALYSIS OF PFOPOSED'COjD IT IONS HTIGHLIGHTIN,' BOTH FCONOMIC AND, SOCIAL I.MPACTS'" .4. THE MISSION SHOUJLD FFEL UNDERZ NO TIME PRESSURE TO N:GOTIATE TEE IPROJECT TIlS FISCAL MUST:A' NOTTS....PE.... .......FEEL U ... O<:::I YEAR AND, ABO ' TO SIGNN AN[':AG ..E E.MENT,A, BEFOREBOE ::A ALL,L ;.,....... ..... AAPECTS AR 'FULLY NEGOTIATED. THIS PROJECT IS TOO IOH UG:-I AGAIN ST SELF-IMPOSED . P'tOJECTb'. SHOjLD VJqA:LLOWED TO :SLIPIIJNTO NE-cT 'FISCAL' ' STO IN WAts"'I.NGTON " YSSION . F ,NU1,'ATN ~~~~ PP-~ ~ ""' UXCLASSCTION 02O0pF4Z2 STATE 126''b >~y SHcULI3SUBMIIT CN AT TFAT TIME AN D ADVIS5S W'RN INAL PP I IW E SU InIT IL,, BY AUUJ S I AF LATYST) IF AN FYF CoOB1,1CGAT WIl NOT.I.IC.ATI.. 10N< IS NOT POSSIBL*-,, V 'XI1.L TFEN, VOCFED NS O OBLIGATE FJNDS AGAINST OUTSTAHDING '101RTGAQ ES. 5 ECPR ALSO CN0 NCLUC ED THAT. T CE NOTICE AND PFP FOR ....
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