SMI I

closed

The project objectives are: (i) to assist, through a package of financial and technical assistance, the restructuring, modernization and expansion of selected SMI; (ii) to generate or save foreign exchange by promoting SMI exports and efficient import substitution; (iii) to maintain jobs in existing SMI and to create new ones at a moderate capital cost per job; (iv) to develop industrial estates in a number of less developed regions; (v) to assist the Government in developing technological support to industry in particular to SMI; and (vi) to help prepare a rationalization and investment plan for the textile subsector. To attain these objectives, Banco de Portugal, will refinance credits to eligible SMI out of a subsidiary loan; EPPI will build industrial estates with the help of another subsidiary loan, and rent them to SMI; LNETI's technology institutes and laboratories will be equipped to provide better technological support to industry; the export promotion component will provide technical assistance to devise marketing arrangements and to review incentives; the textile and technology studies will recommend development programs, rationalization measures and future projects in their respective areas.