National Fund for Sustainable Rural Development Project (FONADERS)


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National Fund for Sustainable Rural Development Project (FONADERS)

National Fund for Sustainable Rural Development Project (FONADERS)

FONADERS complements the support provided by IFAD to the poorest hillside areas of the country in two other projects: the Rural Development Project in the south-western region and the Rural Development Project in the central- eastern region . These two projects assisted 65,000 families in 48 municipalities. FONADERS is focusing on an additional 12,000 families in 81 municipalities.

The goal of the project is to improve household security, raise family incomes, enhance natural resources management and contribute to rebuilding damaged infrastructure. The project will focus on strengthening local institutions and organizations in the areas so that disadvantaged and marginalized people have equitable access to the project's activities and resources. In addition, the project supports intense training for rural women and youth, indigenous groups and landless farmers, to help them participate in income-generating activities.

A number of activities support these goals:

  • strengthening of local institutions: The main focus of the project is strengthening the technical, organizational and managerial capacity not only of poor rural people's organizations, especially those of women, but also of municipal government and various rural development enterprises. Its aim is to help them create successful microprojects, implement and supervise activities, and facilitate access to resources and services offered by the public and private sectors
  • creation of a rural development fund: A financial mechanism is needed to ensure that project participants have access to technical services and community infrastructure investments. The Rural Development Fund is that type of mechanism, and it co-finances – on a matching grant basis – specific activities to strengthen the productive capacity of rural communities and poor workers' groups, particularly by setting up community microprojects
  • creation of a project implementation unit: A Project Implementation Unit will ensure that project objectives, targets and activities are achieved. The unit will focus on budgeting and planning, monitoring and implementation, and administration of project funds

Source: IFAD

Status: Closed
Approval Date
08 December 1999
1999 - 2009
Rural Development
Total Project Cost
US$ 25.68 million
IFAD Financing
US$ 16.5 million
Co-financiers (International)
Central-American Bank for Econ.Integration (BCIE) US$ 1.5 million
United Nations Development Program US$ 3 million
Co-financiers (Domestic)
Beneficiaries US$ 3.69 million
Financing terms
Highly Concessional
Project ID
Project Contact
Cecilia Ximena Ms Flores Palacios

Project design reports

Supervision and implementation support documents

Environmental and social impact assessment

Final environmental and social management framework

Interim (mid-term) review report

Resettlement action framework

PCR digest

Special study

Project list

Audit and Financial Statements

Project completion report