SMALL SCALE IND II

closed

The project consists of a line of credit to BNDE and commercial banks for relending to small-scale industries (SSIs); and of related technical assistance and studies. The loan will create industrial employment at low costs, provide resources to small entrepreneurs who would otherwise face difficulty in securing sufficient financing, provide technical assistance to SSI's, and develop new small enterprises or expand existing ones to complement larger industries. The loan is expected to cover some 600 firms, and create about 15,000 jobs, at an average cost of about one-fourth of the average cost per job in manufacturing industry in general. The loan will also help finance 96 man-months of technical assistance to SSI's through a specialized unit, including subsistance and international travel. Finally, provision is made for 18 man-months of consultants' time, including subsistence and international travel, for studies to review the existing policy and incentive systems relating to SSI's and to make recommendations for changes to foster efficient SSI development.