This nonreimbursable technical cooperation seeks to improve the productivity and competitiveness of micro-, small-, and medium-sized firms by increasing their access to technical assistance and training through vouchers that subsidize approximately 50 percent of the cost. The programs components are: strengthening of demand for business services, through a technical assistance and in-firm training voucher system and an external training voucher system; strengthening the supply of business services, through a technical innovation fund to facilitate the provision of specialized assistance by supplier institutions; and information dissemination and marketing. In this way, the pilot project aims to generate increased and better-informed demand for non-financial business services, experience in negotiating technical assistance service contracts, and adaptation of services to the needs of small-scale firms. The technical assistance and in-firm training voucher system of the first component provides eligible firms up to three vouchers a year, which will permit them to obtain technical assistance of at least 25 technical specialist/hours outside of the firm, or in-firm training of at least 20 hours, for a minimum of five participants. The external training voucher system provides eligible firms up to eight vouchers per year to finance the participation of company workers in courses with a minimum duration of 20 hours. Implementation of the two systems includes: (a) public announcements in various media to attract institutions that may wish to participate; (b) prequalification, selection and accreditation of these institutions in registries; (c) signing of cooperative agreement with institutions selected; (d) training of the program coordinating unit (PCU) in the distribution of vouchers; (e) approval of external training courses, in-firm training, and technical assistance services; (f) distribution and redemption of the vouchers; and (g) supervision of institutions, courses, and interventions in firms. The second component, the technical innovation fund, provides partial funding for technical assistance to institutions to support technical and administrative innovation in the provision of services to small-scale firms. The fund will finance proposals presented jointly by at least three supplier institutions accredited by the program. Again, public announcements will appear in various media. The third component consists of an information reference system, an extensive and diversified database of existing non-financial business services to act as an interface between buyer firms and supplier institutions. Its development and implementation will involve: (a) contracting consulting support for the graphic design and formulation of a widespread communication strategy; (b) implementation of a systematic radio and press dissemination campaign; (c) contracting of consulting support for the design and implementation of the appropriate program management software; (d) contracting and training of information officers; and (e) the installation and opening of information, orientation, and user service windows.
Project Detail
Country
Guatemala
Project Number
TC9802192
Approval Date
June 2, 1999
Project Status
Closed
Project Type
Technical Cooperation
Sector
PRIVATE FIRMS AND SME DEVELOPMENT
Subsector
PRIVATE FIRMS AND SME DEVELOPMENT
Lending Instrument
Multilateral Investment Fund Instrument
Lending Instrument Code
MIF
Modality
-
Facility Type
-
Environmental and Social Impact Category (ESIC)
-
Total Cost
USD 2,265,070.00
Country Counterpart Financing
USD 680,000.00
Original Amount Approved
USD 1,585,070.00