Implementation Arrangements
Rural Enterprise Development
To layout the modalities for implementation
of this sub-component, a memorandum of understanding (MOU)
would be drafted between UCRIDP and PPPMER. The MOU would
indicate the responsibilities of both projects and would be
based on the premise that PPPMER would essentially assume
the prime responsibility for managing the UCRIDP’s rural enterprise
development programme with the PCU providing the oversight
function and coordination with other Programme activities.
This will be particularly important as there could be considerable
synergies between this sub-component and the rural financial
services sub-component on one side and the agricultural development
sub-component on the other. The agreement would specify, inter
alia: (i) objectives, outputs and activities, (ii) allocation
of responsibilities to each of the parties, (iii) financing
modalities, and (iv) reporting, coordination and financial
management provisions.
A two-level UCRIDP-PPPMER coordination structure
would be established. At project management level, coordination
would be secured by project coordinators. They would ensure
that the sub-component is implemented without delay, i.e.
that work plans are implemented and funds are transferred
in time. They would deal with any problems arising during
implementation, with a view of providing fast and mutually
agreeable solutions. They would also ensure proper coordination
between the sub-component and other UCRIDP sub-components,
particularly within Component 2.
At provincial level, field coordination
would be ensured by the coordinator of the Rural Economic
Transformation Team and the head of PPPMER provincial unit.
They would meet on a regular basis to exchange information
and coordinate day-to-day activities in the province. Strong
ties would have to be established between the two projects,
so as to fully take advantage of their complementarities.
Financial resources would be made available
to support credit extension from the micro-finance sub-component.
UCRIDP-PPPMER agreement would specify the modalities whereby
MFIs hired under the UCRIDP Rural Finance sub-component would
extend their financial services to rural small and micro-entrepreneurs.
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