Ministry of Industries, Production & Special Initiatives has prepared a "Rural Enterprise Modernisation Project", which will be completed with financial and technical assistance of Asian Development Bank (ADB).
It is excepted that Asian Development Bank will provide 5 million dollars, while government will provide 1.5 million dollars. According to official sources, the proposed project has been designed to facilitate institutional support mechanisms with the overall aim to expand employment opportunities, and enhance competitiveness of the micro and small business in the rural areas on a sustainable basis.
The designed impact of the Rural Enterprise Modernisation Project is to create and diversify job and income-earning opportunities in the rural areas especially for the landless, wage earners, and women. The intended outcome is to develop market facilitation processes by identifying and filling market gaps within selected sub-sectors in rural and urban areas, and strengthening the competitiveness of the target groups. Steps will be taken to design innovative institutional arrangements and assess the feasibility of establishing a not-for-profit company to catalyse business development services and introduce best practices in enhancing social and environmental processes in support of the growth of rural businesses.
ADB report stated that the consulting services are required for technical inputs and core project management. The TA loan will provide 108 person-months of international consulting services and 218 person-months of domestic consulting services. All consultants will be recruited according to ADB's Guidelines for the Use of Consultants and other arrangements acceptable to ADB for selection and engagement of domestic consultants. Except for the international team leader/senior markets development specialist, who will be recruited as an individual consultant, the core international and local consultants will be recruited through a firm, with the use of the quality and cost-based system. In addition to the core consulting services, NGOs will be engaged individually as needed to provide inputs in the market surveys, organise small entrepreneurs, and organise training workshops and focus group discussions on potential opportunities in selected locations.
Of the consultant services total indicated above, approximately 72 person-months of international services and 170 person-months of domestic services will be available in a flexible resource pool to be tapped when needs arise (eg, market researchers, subject matter and sector specialists, designers, ICT experts, process engineers, and poverty, gender, and environment specialists).
Procurement of goods and services under the project will be carried out in accordance with the ADB Guidelines for Procurement. Vehicles, equipment, and materials will be procured through international competitive bidding if they cost more than $500,000 equivalent, or by international shopping if they cost from $100,000 to $500,000 equivalent. If there are several local suppliers with satisfactory service facilities, equipment or materials valued at less than $100,000 equivalent may be procured through local competitive bidding. The equipment or materials may be directly purchased if they cost less than $50,000.