VZCZCXYZ0021
RR RUEHWEB

DE RUEHSJ #0385 1311441
ZNR UUUUU ZZH
R 111441Z MAY 09
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC 0822
RUEHGV/USMISSION GENEVA 0340

UNCLAS SAN JOSE 000385 
 
SIPDIS 
 
STATE FOR WHA/CEN; PRM/ECA KPONGONIS 
 
E.O. 12958: N/A 
TAGS: PREF PREL ELAB EAID CS
SUBJECT: COSTA RICA'S TAFT REFUGEE FUND PROPOSAL 2009 
 
REF: STATE 14280 
 
¶1.  Embassy San Jose would like to submit the project "Promoting 
Refugee Self-Reliance Through Micro-Credit", in partnership with the 
Association of Professionals in Development for the Promotion of the 
Persons in Poverty (APRODE) and the United Nations High Commission 
on Refugees, to the Julia Taft Refugee Fund for funding in 2009. 
Post provided a full text of the proposal to Kate Pongonis, PRM/ECA, 
on May 11, 2009. 
 
¶2.  Project Overview: The project will fund APRODE's implementation 
of a micro-finance program aimed at refugee women in Costa Rica's 
refugee community.  Eighteen loans of $500 to $1,000 (US dollars) 
each will be granted to refugee women in urban areas of Costa Rica. 
At the same time the project will allocate funds (15%) for adequate 
pre- and post-lending technical assistance, marketing and business 
development. The project will specifically target and fund small 
loans to work more intensively with "more risky" clients, i.e., 
potential female entrepreneurs with marketable business ideas, but 
with little to no small business experience. 
 
¶3.  Primary Partner Organization: La Asociacisn de Profesionales en 
Desarrollo para la Promocisn de Persona en Condicisn de Pobreza 
(APRODE). This experienced MFI has been working in the field of 
micro credit for more than 20 years. Since 2003 APRODE has been 
working closely together with the United Nations High Commissioner 
for Refugees to support self-employment of mostly Colombian refugees 
residing in urban areas of Costa Rica. For this project APRODE will 
ensure the proper technical support of the micro credit program 
through its experienced loan officers, existing business network and 
extensive knowledge of the Country. 
 
¶4. Target Population: For this specific project the direct 
beneficiaries will be eighteen refugee women with specific needs and 
who are considered more 'risky' borrowers due to their lack of 
experience with running a small business. This group would normally 
have more difficulties meeting all the regular requirements required 
to access a credit program. By providing the necessary training and 
technical assistance, this initiative intends to insure that these 
refugee women are on a path towards economic sufficiency. 
 
¶5. Budget: The requested budget for the project is $20,000.  Of 
this, $15,000 will be used directly for the distribution of 18 loans 
to women first-time borrowers, and $5,000 will be used to fund 
enterprise development training for the borrowers. 
 
¶6. Sustainability: By charging a projected interest rate of 24.9 
percent on loans, as is standard in APRODE's other funds, this 
program aims to be sustainable by the end of 2010, effectively 
allowing the funds to be used as a rotation fund to finance further 
client micro-credit loans. 
 
¶7. Sectors Financed: The project will fund small businesses of 
refugees in sectors including commerce, light industry, services, 
arts and crafts production. Some examples of successful enterprises 
in the past include beauty salons, grocery stores, and bakeries. 
Most of the loans will be provided for businesses with low overhead 
costs in order to provide refugee women with genuine opportunities 
for sustainable income generation. 
 
¶8. Post has on file APRODE's signed Code of Conduct consistent with 
the six core principals from the Inter-Agency Standing Committee 
(IASC) and can forward the required documentation to demonstrate 
this at PRM's request. 
 
¶9. Post also certifies that it has the authority and capacity to 
award a grant to the intended recipient agency prior to the end of 
the fiscal year (September 30, 2009). 
CIANCHETTE