Program Data Sheet
596-007
USAID MISSION: Central America Regional
PROGRAM TITLE: Regional Municipal Finance (Pillar: Democracy, Conflict, and Humanitarian Assistance)
STRATEGIC OBJECTIVE AND NUMBER: Strengthened Municipal Finance Systems for Local Governments in Central America, 596-007
STATUS: New
PLANNED FY 2002 OBLIGATION AND FUNDING SOURCE: $0
PRIOR YEAR UNOBLIGATED AND FUNDING SOURCE: $0
PROPOSED FY 2003 OBLIGATION AND FUNDING SOURCE: $1,100,000 (DA)
INITIAL OBLIGATION: FY 2003 ESTIMATED COMPLETION DATE: FY 2006
Summary: The USAID/G-CAP Regional Municipal Finance program will provide technical assistance and training to:
- promote credit quality standards for local governments;
- increase local government access to capital markets; and
- promote private sector participation in local services and infrastructure.
Inputs, Outputs and Activities: FY 2002 Program: This program will begin in FY 2003.
Planned FY 2003 Program: USAID will use FY 2003 DA funds to initiate activities and foster partnerships for a credit quality standards program for local governments. USAID will select key interventions based on its approved five-year strategy for strengthened municipal finance systems in Central America, capitalizing on the Regional Urban Development Office's (RUDO) experience in finance and credit programs for municipal infrastructure projects and efforts underway and financed in FY 2002 within USAID/Mexico's municipal development program. The FY 2003 program will build on nascent public-private sector alliances and establish specific partnerships between Central American, Mexican, and U.S. institutional players, to set standards for carrying out training in these areas. USAID will award a grant or contract to a U.S. private sector partner to provide comprehensive curriculum and consulting services, beginning in Mexico. El Salvador has been identified as a potential second target country for assistance.
USAID will use FY 2003 DA resources to complement USAID/Mexico's work with Mexican counterpart organizations and to develop a comprehensive municipal finance practitioner curriculum that begins at the basic level and graduates students through intermediate and advanced levels. In addition to designing the curriculum, USAID's grantee/contractor will work with Mexican counterparts to develop course materials and identify and train potential course leaders from Mexico and Central America. Planning will be undertaken to address a second priority area--increasing local government access to capital markets. Assistance for this second priority will include support for a policy reform component focused on the establishment of credit evaluation and financial disclosure standards. These activities will work in tandem with other donors in Mexico and El Salvador addressing municipal financial reform issues.
Based upon USAID priorities in FY 2003 to advance U.S. interests in Central America, focus will also be placed on expanded private sector participation in local services and infrastructure. Potential cooperation with Central American bilateral programs would work to increase private sector investment at the local level and activities would: engage southern Mexico and Central American municipalities in shared infrastructure planning and investment; promote municipal credit-worthiness through a global model to evaluate new lending and establish independent credit ratings; and introduce municipal concessions and other credit models which can service projects engaging small and medium enterprises and help attract new private vendor financing.
Performance and Results: Progress in this objective will not only assist in the modernization and capitalization of Central American and Mexican municipal governments, but will also create an improved partnership between local governments and the private sector.
Over the life of this program, this activity will have an impact on improving financial management at the local level, strengthening the management of local government revenue bases, improving local level debt management, and improving capital planning methods. Based upon contract awards to be made with implementing partners and in tandem with USAID/Mexico, specific targets will be established to measure increased local government access to capital markets and, potentially, movement toward policy reforms for common credit evaluation and financial disclosure standards.
Other Donor Programs: The World Bank, the Inter-American Development Bank (IDB), and other multilateral donors are actively involved with Mexican state institutions, and the IDB in particular is developing a municipal infrastructure program through the National Bank for Public Works and Services (BANOBRAS, the government-owned infrastructure bank), that will require greater credit analysis on the part of BANOBRAS. Among the bilateral donors, France is providing support for the development of a professional civil service at the local and state levels. It is expected that local government finance staff training will complement both the IDB and the French activities. Multilateral and regional institutions support other key development partners in the region, including the Central American Bank for Economic Integration, the Federation of Municipalities of the Central American Isthmus, and national organizations such as the Municipal Association of Honduras.
Principal Contractors, Grantees, or Agencies: USAID will award a grant or contract to a U.S. private sector organization for primary technical assistance.
US Financing in Thousands of Dollars
|
596-007 Strengthened Municipal Finance Systems for Local Governments in Central America | DA |
|---|
|
Through September 30, 2000
|
| Obligations | 0
|
| Expenditures | 0
|
| Unliquidated | 0
|
|
Fiscal Year 2001
|
| Obligations | 0
|
| Expenditures | 0
|
|
Through September 30, 2001
|
| Obligations | 0
|
| Expenditures | 0
|
| Unliquidated | 0
|
|
Prior Year Unobligated Funds
|
| Obligations | 0
|
|
Planned Fiscal Year 2002 NOA
|
| Obligations | 0
|
|
Total Planned Fiscal Year 2002
|
| Obligations | 0
|
|
Proposed Fiscal Year 2003 NOA
|
| Obligations | 1,100
|
| Future Obligations | 400
|
| Est. Total Cost | 1,500
|
|
