Municipal Development in Rural Areas

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The Municipal Development in Rural Areas Project aims to reduce the incidence of rural poverty in the participating states, by supporting investments in small-scale social, and productive infrastructure, through a community-driven development approach, and, by strengthening municipal, administrative and technical capacity, as well as deepening decentralization from the Federal to the State, and Municipal levels. The project components are as follows. 1) Municipal subprojects will provide matching grants to rural municipalities, to support demand-driven investments in small-scale social, and productive infrastructure, for water supply and sanitation, schools construction, health centers and community development facilities, waste disposal, rural electrification, and road improvements. 2) The municipal development and support for decentralization component, will offer technical assistance (TA) to strengthen the process of decentralization, and build a framework to enhance municipal development. Activities shall include diagnostic studies of programs, and institutional capacities; TA to develop new programs; development of monitoring capacities; as well as the establishment of coordinating agreements between Federal, State, and Municipal entities, including TA to prepare, and amend as necessary, the regulatory and legislative framework. 3) The incremental costs (excluding salaries) related with project supervision, evaluation and monitoring will be financed.