 ASA selected
as an International Technical Service Provider (ITSP) for Micro-finance
Support Project (MSP) under UNDP-Philippines. ASA is the only Asian organization
who got the opportunity to work with UNDP-MicroStart. The selection of ASA
was made through a international bidding process among some shortlisted
best practitioners of micro-finance around the world. The main reason for
selecting ASA were: 1) competitive cost-effectiveness in terms of cost per
man-month and total man-months supplied, 2) extensive hands on experience
in micro-finance and familiarity with the Asian context, and 3) a detailed
implementation plan.
MicroStart is a special programme of UNDP for global support to micro-finance
through its technical cooperation project as part of its overriding goal
to eradicate poverty. UNDP-MicroStart programme will allow 25 countries
to invest up to $ 1 million in grant and $ 0.5 million in technical assistance
for each TSP contract. Up to June 98 over 10 countries have signed or are
finalizing contracts and it has been expected that by December 98 all 25
countries will be operational. MicroStart support will consists of the following
two elements:
1.
A micro-capital grants component in which the selected local organizations
will receive grants in seed capital to cover requirements for operating
capital such as overhead cost, on-lending, and/or to be used as equity in
leveraging access to other sources of on-lending funds.
2.
A technical services component in which the pre-qualified contractor (ASA
as ITSP) will provide a range of technical services to local recipient organizations
in order to build capacity to ultimately improve outreach. The technical
assistance will, depending on specific needs of the individual grantee MFI,
development of financial products and services such as savings and credit
activities, mechanisms for targeting the poor, and technologies to increase
outreach.
In Philippines ASA will work for capacity building of 7-8 local micro-finance
institutes (MFIs) that have only attained a smaller outreach of between
300 to 3000 borrowers.
MSP-Philippines will be implemented in two phases. The two phases are preparatory
assistance (PA) phase which will last for four months from mid September
1998 to mid January 1999, and Implementation phase will last  for three years from mid
January 1999 to mid January 2002.
Development Objective of MSP
The long term development objective is to contribute to the reduction of
poverty by increasing the livelihood opportunities and productivity of the
poor and improving the sustainability of micro-finance institutions in the
provision of responsive financial services to the poor.
Immediate Objectives of MSP
To improve access of the poor population of Philippines to credit facilities
which could be helpful for job creation, increasing income and meet-up their
minimum basic needs as well as self-reliance.
To build-up the capacity of MFIs in Philippines for quick delivering of
credit and financial services to the poor through cost effective and sustainable
mechanism.
To contribute to the reduction of poverty by improving the access of poor
segment to credit through expanding the outreach capacity of MFIs.
Improving the institutional sustainability of MFIs through the provision
of responsive financial services to the poor.
ASA's strategies for Implementation
of PA of MSP
At the preparatory assistance stage ASA will work in consultation with provision
Micro-finance Advisory Board (MAB) and Peoples Credit and Finance Corporation
(PCFC) of Philippines for selecting grantee MFIs according to some pre-requisite
and key criteria. ASA assigned to finalize the Project Document (PD) for
implementation phase, prepare detailed work plan of each MFI for technical
assistance, prepare detailed financial plan for each MFI, prepare details
regarding principle and procedure governing the disbursement and use of
funds for MFIs, prepare operational policies of individual MFIs, refine
institutional arrangements of individual MFIs and aggregate the work and
financial plan for MicroStart. |