Mozambique - Institutional Support Project to Banco Poprrlar de Desenvolvimento (BPD)

The proposed project aims to assist the Government of Mozambique through the provision of institutional support to Banco Popular de Desenvolvimento (BPD) for its structural and functional rehabilitation. The main reasons necessitating the institutional support are the facts that BPD is confronted with various typical constraints, which have to be specifically addressed. Indeed, BPD plays an important role in the development and the financial system of the country. It accounts for about 42% of total savings mobilized and almost 20% of the total credit to the economy in 1989. BPD's position is most outstanding as the second most important credit institution with respect to sectoral allocation of credits particularly to agriculture and industry. The Government attaches great importance to the role of BPD within the economy being the only development finance institution in the country. There is the need for the structural- and functional rehabilitation of BPD to enable it play its role more meaningfully and effectively. The project consists of the procurement of goods and services to strengthen BPD's institutional capacity. It includes computers, vehicles, training, office equipment and technical assistance and a portfolio audit. The total cost is estimated at FUA 4.190 million.