COSTA RICA'S TAFT REFUGEE FUND PROPOSAL 2009

UNCLAS SAN JOSE 000385 SIPDIS STATE FOR WHA/CEN; PRM/ECA KPONGONIS E.O. 12958: N/A TAGS: PREF PREL ELAB EAID CS SUBJECT: COSTA RICA'S TAFT REFUGEE FUND PROPOSAL 2009 REF: STATE 14280 ¶1. Embassy San Jose would like to submit the project "Promoting Refugee Self-Reliance Through Micro-Credit", in partnership with the Association of Professionals in Development for the Promotion of the Persons in Poverty (APRODE) and the United Nations High Commission on Refugees, to the Julia Taft Refugee Fund for funding in 2009. Post provided a full text of the proposal to Kate Pongonis, PRM/ECA, on May 11, 2009. ¶2. Project Overview: The project will fund APRODE's implementation of a micro-finance program aimed at refugee women in Costa Rica's refugee community. Eighteen loans of $500 to $1,000 (US dollars) each will be granted to refugee women in urban areas of Costa Rica. At the same time the project will allocate funds (15%) for adequate pre- and post-lending technical assistance, marketing and business development. The project will specifically target and fund small loans to work more intensively with "more risky" clients, i.e., potential female entrepreneurs with marketable business ideas, but with little to no small business experience. ¶3. Primary Partner Organization: La Asociacisn de Profesionales en Desarrollo para la Promocisn de Persona en Condicisn de Pobreza (APRODE). This experienced MFI has been working in the field of micro credit for more than 20 years. Since 2003 APRODE has been working closely together with the United Nations High Commissioner for Refugees to support self-employment of mostly Colombian refugees residing in urban areas of Costa Rica. For this project APRODE will ensure the proper technical support of the micro credit program through its experienced loan officers, existing business network and extensive knowledge of the Country. ¶4. Target Population: For this specific project the direct beneficiaries will be eighteen refugee women with specific needs and who are considered more 'risky' borrowers due to their lack of experience with running a small business. This group would normally have more difficulties meeting all the regular requirements required to access a credit program. By providing the necessary training and technical assistance, this initiative intends to insure that these refugee women are on a path towards economic sufficiency. ¶5. Budget: The requested budget for the project is $20,000. Of this, $15,000 will be used directly for the distribution of 18 loans to women first-time borrowers, and $5,000 will be used to fund enterprise development training for the borrowers. ¶6. Sustainability: By charging a projected interest rate of 24.9 percent on loans, as is standard in APRODE's other funds, this program aims to be sustainable by the end of 2010, effectively allowing the funds to be used as a rotation fund to finance further client micro-credit loans. ¶7. Sectors Financed: The project will fund small businesses of refugees in sectors including commerce, light industry, services, arts and crafts production. Some examples of successful enterprises in the past include beauty salons, grocery stores, and bakeries. Most of the loans will be provided for businesses with low overhead costs in order to provide refugee women with genuine opportunities for sustainable income generation. ¶8. Post has on file APRODE's signed Code of Conduct consistent with the six core principals from the Inter-Agency Standing Committee (IASC) and can forward the required documentation to demonstrate this at PRM's request. ¶9. Post also certifies that it has the authority and capacity to award a grant to the intended recipient agency prior to the end of the fiscal year (September 30, 2009). CIANCHETTE