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USAID/Nicaragua
Mission Director's Narrative
The fragility of the nascent Nicaraguan democracy and the continued high level of politicalpolarization in the country have been demonstrated only too clearly by recent kidnappings
and the eruption of violent conflict in the north near the Honduran border. These events
point to the urgent need to strengthen the democratic process, improve the national dialogue
and build a broader consensus across party lines, and increase confidence in Nicaragua's
democratic institutions. At the same time, the root of much of the frustration that has spilledover into political unrest in Nicaragua is a lack of progress in improving the economic
situation for the majority of Nicaraguans. Vigorous economic growth must occur to improve
the standard of living for most Nicaraguans. Economic improvement is also an important
foundation for political stabilization that will allow democracy to establish firm roots.
These two goals - democracy and growth - have been the overwhelming priorities for the
U.S. assistance effort to Nicaragua since the re-opening of the Mission in the summer of1990 and they are the priorities reflected in this Annual Budget Submission for FY-94 andFY-95. The Mission's significant work in health, population, basic education, and theenvironment addresses important needs in Nicaraguan society and complements efforts topromote growth and democracy.
Because the USAID/Nicaragua program is only three years old, the portfolio does not have
major projects that can easily be closed out to reduce the range of project initiatives. Noneof the ongoing projects scheduled to receive funding over the ABS period are more than two
years old. For a number of major initiatives, implementation is just getting underway. In
some key areas, important elements of the overall strategy for U.S. assistance to Nicaragua
are scheduled to begin during the ABS period. The Mission has tried to formulate a budget
submission that maintains the strategic focus outlined below and makes sense given the stageof implementation for most projects in a young portfolio. The effect of various budget
scenarios on the areas of AID focus and on Mission strategic objectives is as follows:

Democracy
The USAID/Nicaragua program has shifted increasing emphasis toward a program of
democratic initiatives in response to events in Nicaragua and concerns in the U.S. Congress•and Executive branch. These activities are focused on the strategic objective of "Greater
consensus on democratic values" and involve broad civic education efforts andstrengthening of key institutions to improve public confidence in their functions. The
underlying premise is that in a situation of extreme political polarization and lack ofexperience with democracy, basic values and attitudes need to be addressed to serve as thefoundation of progress toward sustainable democracy.
Under any of the proposed budget scenarios the Mission would maintain significant
funding levels for its core democratic initiatives because of then* essential contribution to
the Mission's objectives:

VSAID/Nicaragua Annual Budget Submission(insert Lotus 1-2-3 Table "ABS-BUDG.WK3" here as page 2)

USAID/Nicaragw Annual Budget Submission

August 31,1993•

The Strengthening Democratic Institutions project supports broad civic education
efforts that directly contribute to better understanding of democratic processes andinstitutions, and provides assistance to human rights groups, key governmental
institutions, labor, media, and other important groups that are critical to thefunctioning of a democratic society. An amendment to the project in late FY-93 or
early FY-94 will add an administration of justice component that includes support forrevision of key elements of the legal framework, improved administrative procedures,
establishment of a public defender's office, and training for judges and other key
personnel in the legal system. The new component will also fund a pilot project topromote mediation programs that will help address a fundamental value area in
Nicaraguan society. In FY-95, the project will be amended to provide additional
support for ongoing activities whose funding would run out at the time of the initial
PACD.

•

The Electoral Support project will assist Nicaraguans in laying the groundwork forfree and fair national elections in 1996 - a major milestone in the democratic
development of the country. Successful elections in 1996 will more firmly establish
the important value of institutional mechanisms for decisionmaking and provide
legitimacy to the government that takes power as a result of those elections. The
project would provide technical assistance in reviewing the legal framework forelections, planning and logistical support for the electoral process, and support for thework of international observers overseeing the election process. Civic education
activities and support for voter registration may also be provided.

•

The Municipal Decentralization and Development project will provide assistance inimproving the regulate/y framework for municipalities and help local governments
develop the skills and experience with democratic processes to use resources
effectively. A matching fund will provide them with resources to practice those skills
and employ those processes to address local infrastructure needs and create
employment. For the majority of Nicaraguans, their most direct contact withdemocratic decision-making will be at the local level. Local government provides theopportunity to put into practice the principles of democratic government in acomprehensible environment where Nicaraguan citizens can participate directly. In a
country where national politics are highly polarized and divisive, municipalities canbe the incubator for new leadership with first-hand experience in the give and take of
democratic decisionmaking.

•

The Financial Management Reform project will contribute significantly to increasing
the accountability and transparency of government by establishing an integrated
financial management system within the central government, establishing norms foraudit and procurement, and strengthening the office of the Comptroller General. The
project could contribute substantially to increased confidence in important
governmental institutions which has been at low levels in recent months. Obligationof this project has been held up pending nomination and election of a new
Comptroller General which will be essential in order to establish improved norms forgovernment accountability.

USAJD/Nicaragua Annual Budget Submission•

August 31,1993

Support for CIAV (the International Commission of Verification and Support of theOAS) helps finance their important work in monitoring human rights and mediating
conflict in rural areas. The Mission intends to provide ESF funds and local currency
in FY-94 to finance their expanded program in Nicaragua.

To ensure quality management of these labor-intensive and politically sensitive initiatives, theMission is in the process of restructuring its direct-hire staff within the current FTE ceilingto free up a direct-hire position to manage the democracy portfolio. Li proposing alternative
operating expense budgets the Mission has endeavored to keep its FTE ceiling at the current
level, while realigning staff to absorb the new requirements for management and oversight ofthese important new initiatives.

Sustainable Economic Growth
Since 1990, the vast majority of economic assistance to Nicaragua has been focused on two
growth objectives, "Increased foreign and domestic investment," and "Increased
competitiveness, diversification, and participation in the economy" based on a recognition
that improvements in family income and investments in social programs and democracy are
not sustainable without economic growth. The Mission's approach to promoting economic
growth has been to focus on establishing an appropriate macro-economic policy frameworkfor private sector reactivation and establishment of a competitive market economy throughpolicy-based balance of payments support. The policy dialogue has addressed the criticalconstraints to investment in Nicaragua by focusing on liberalization of the economy and thefundamental issue of resolving property issues and providing compensation. Direct support
to privatization efforts, establishment of a private financial system, trade liberalization, andexport/investment promotion has complemented this policy focus. However, theuncertainties involved in the level and availability of U.S. balance of payments assistance due
to Congressional holds and other political issues have made it very difficult for Nicaraguan
policy makers to continue and deepen the economic policy reform program. Though
Nicaragua has seen considerable success in stabilizing the economy with significant balanceof payments assistance from the U.S. and other donors, private sector reactivation has not
yet occurred.
A key aspect of the budget scenarios presented here is the continued use of ESF resources
for policy-based balance of payments support addressing critical economic and politicalconstraints to increased investment. At the planning levels provided, USAID/Nicaragua
would use nearly all ESF resources to support its ongoing policy dialogue. Policy dialogue
directly related to the agricultural sector is supported by the PL-480 Title m program which
also provides local currency resources for important rural employment generation activities,
local PVO projects, and additional resources for private agricultural associations. The
ongoing macro-economic policy dialogue would be complemented by the following projects:•

The Economic Policy Analysis and Implementation project provides both long andshort-term assistance to the Economic Cabinet to assist in policy analysis andformulation and ensures follow-through on policy decisions by assisting in
implementation. This technical assistance contributes to the development andUSAID/Nicaragua Annual Budget Submission

August 31,1993

implementation of appropriate macro-economic policies in Nicaragua. The
development of a policy framework supportive of investment and a competitivemarket economy with broad participation is the fundamental basis for progress toward
the Mission's strategic objectives in the growth area.
•

The Private Sector Support project supports activities which help stimulate a private
lector reactivation in response to an improved policy environment. It provides
technical assistance to the Superintendency of Banks to improve its prudential
supervision of the banking sector and other financial markets needed for a positive
investment environment. Project activities help strengthen representative private
sector associations and support investment and export promotion. The project also
assists the government in its efforts to privatize state-owned entities which contributes
to greater competitiveness and economic efficiency.

At reduced levels, the above projects could not be continued at required levels and in aworst case scenario the Mission would have to consider curtailing one or both of theseprojects. Resources would be focused on the following projects which have a more direct
impact on a broader range of low-income groups. The following activities would continue
to be funded at various budget levels:•

The Private Agriculture Services project supports efforts by private agricultural
associations to improve services to their members including technology transfer,
improved access to agricultural inputs, and marketing services. An FY-94
amendment will broaden this assistance to include recently privatized coffee,
livestock, and former cotton commissions which have significant capability to reachout to smaller producers. Mission efforts to improve agricultural productivity andrural income will be an important contribution to addressing conditions that havegiven rise to renewed armed activity in some rural areas.

•

The FVO Cofinancing project includes employment generation as one of its threeareas of emphasis. PVO sub-projects in micro-enterprise and community-oased
employment help stimulate economic activity and expand economic participation at
grassroots levels.

Environment
The Mission's centerpiece project in support of its strategic objective of "Increased use ofenvironmentally sound productive and extractive practices" is the Natural Resources
Management project. This project, which supports protection of major tropical forest areas,
improved pest management, and strengthened institutional capability for resource
management, is almost fully obligated. Additional resource management and environmental
activities are funded under the FVO Cofinancing project. The Mission estimates thatapproximately half of FY-94 and FY-9S obligations under this project would be attributableto environmental or natural resource sub-projects. Within various budget scenarios theMission would attempt to maintain funding for the PVO Cofinancing project to assure
continued support for environmental and natural resource management activities.

USAID/Nicaragua Annual Budget Submission

August 31,1993

Population and Health
The Mission has focused its resources in the health sector on the objective of "Improved
maternal and child health" which encompasses a strong family planning effort. The
Mission's continuing projects in this sector are central to Nicaraguan efforts to control
population growth and reduce infant and child mortality.
•

The $22 million Decentralized Health Services project was signed this year andfocuses on child survival interventions and public sector family planning services inselected regions of the country. It also supports the process of decentralizing healthcare programs and improving health care financing. USAID/Nicaragua interventions
will be focused in regions encompassing almost 45% of the ' filiation which facesome of the most severe primary health problems in the country.

•

The Family Planning Expansion and Regionalization project supports private sector
family planning activities through the local IPPF affiliate, Profamilia, and has allowed
it to open regional and satellite family planning clinics. A proposed FY-94
amendment will support Profamilia's efforts to mount a major social marketing effort
and expand community-based distribution efforts into underserved rural areas.

•

The PVO Cofinancing project also funds sub-projects that support child survival
interventions, appropriate water and sanitation investments, and other maternal andchild health activities.

•

The PL-480 Title in program helps improve food security and encourages greater
emphasis on primary health care and improved health financing and management
through associated conditionality.

Given the importance of these projects to overall objectives in the population and healthsectors, the need to meet Congressional earmarks, and the implementation needs ofthese key projects, the Mission will continue to fund these projects, albeit at reduced
levels, hi any budget scenario.

Education
Though not directly identified as one of the four areas of AID policy emphasis, the Mission's
education initiatives are critical to progress in all of the above areas. The Mission's $30
million Basic Education project is an initiative that supports the democracy objective bycontributing to an educated citizenry, supports growth objectives by improving humancapital, and promotes health and population improvements through the long-term effects ofeducation in increasing use of health and family planning practices. The project's focus onteacher training, curriculum reform, and administrative improvements directly contribute to
the Mission's strategic objective of "Improved quality and efficiency of basic education".
USAID/Nicaragua considers the Basic Education project to be a priority activity andwould fund it under any budget scenario.

USAID/Nltaragua Annual Budget Submission

August 31,1993

The Development Training project also supports the other strategic objectives throughfinancing of short and long-term training opportunities in key areas that support the Mission's
objectives. At rignificf/itly reduced budget levels, the Mission would have to consider
reducing the scope of the project.

Summary of Mission Program Budget Priorities
Given the newness of the USAID/Nicaragua project portfolio and the fact that most Mission
initiatives in support of its strategic objectives are at an early stage, the options for dealing
with reduced budgets are limited. In a worst case scenario, some key ongoing projects
would have to be curtailed or substantially restructured at lower levels. Programming of
ESF and PL-480 Title IH Food Assistance for policy-based assistance at the planning levels
indicated in the ABS guidance is a central element of the Mission's program budget
submission. It is important to note that at significantly reduced ESF levels, the Mission's
ability to address its major growth objectives would be seriously constrained and the Mission
would likely program its> DA resources differently in various budget scenarios.
This budget submission generally protects those projects that are central to the Mission's
strategic focus—the core democratic initiatives, Private Agriculture Services, the Basic
Education project, and other projects in earmarked areas—while relying primarily on ESF
resources and PL-480 for support of economic growth objectives. At reduced DA budget
levels, if the Mission is required to contribute to Agency earmarks, the Private Sector
Support and Economic Policy Analysis and Implementation projects could not be sustained.
Under that scenario the Mission's activities in support of its economic growth strategic
objectives would be almost totally dependent on the availability of ESF resources and the
Title m program. Since Bureau guidance shows stable ESF levels for policy-based balanceof payments assistance in the various scenarios and a consistent level for Title m, thefollowing detailed discussion of the effect of reduced DA budget resources focuses on the
project portfolio:
Best Case for FY-94 (FY-94 Congressional Presentation Level) - At the FY-94 CP
level the Mission could essentially carry out its program and make the shifts inemphasis toward democratic initiatives and broader direct impact of the Mission
program that were outlined in the FY 94-FY 95 Action Plan. It would allow
obligation levels for projects to meet the standards of prudent management but would
generally not provide sufficient pipeline to weather significant budget cuts orCongressional holds. Funding the Decentralized Health and Basic Education projects
at the earmarked level allocated by the Bureau, however, would increase the pipeline
for those projects.
Worst Case for FY-94 (75% of the FY-94 Congressional Presentation Level) With a 25% cut from the base level, the Mission could not meet the earmark levels
provided by the Bureau for Basic Education and Child Survival and incremental
obligations for Economic Policy & Implementation and Private Sector Support
projects would be delayed so the Mission could provide continuing support forUSAID/Nicaragua Annual Budget Submission

August 31,1993

priority democratic initiatives. Implementation of the Development Training project
would be scaled back and some other planned obligations would be incrementally
reduced. This would create a need for early obligations for these projects in FY-95 ifthey are to continue as planned.
Base Level for FY-95 (50% of the FY-94 Congressional Presentation Level) - At
the proposed base level for FY-95 the Mission would be forced to suspend obligationsfor key private sector projects. The priority for obligating funds would be thoseprojects that contribute directly to the strategic priorities of support for democracy
and broader impact (through the Private Agricultural Services and PVO Cofinancing
projects). The only other projects that would receive continued funding at thisreduced level would be those that use earmarked funds for Child Survival, Population,
Basic Education, and Environment activities. Development Training, Economic
Policy Analysis and Implementation, and Private Sector Support projects would likely
be curtailed if such budget reductions were permanent and the Mission was stillrequired to help meet earmaik levels. In such a scenario, the Mission's ability tosupport its two strategic objectives in the growth area would be almost totallydependent on the level of ESF and PL-480 Title m resources,
Additional Resources for l'T-95 (75% of the FY-94 Congressional Presentation
Level) - With additional resources, the Mission would obligate new funds to thePrivate Sector Support or Economic Policy Analysis and Implementation projects. A
higher OYB would also make possible larger obligations for some of the priority
democratic initiatives and earmarked projects than would be feasible at the base level.
Funds would not be available to continue implementation of the Development
Training project as planned.
Best Case Scenario for FY-95 (FY-95 Funding at FY-94 CP Level) - With FY-95
funding at the level of the FY-94 Congressional presentation, the Mission would be
able to continue its program in support its strategic objectives, provide sufficientfunding to continue all ongoing projects in the portfolio, and finance all planned newstarts.

Staffing and the Operating Expense Budget
Given the early stage of implementation in the Mission's program, the need to move forward
in areas of the Mission's strategic focus, the unique difficulties USAID/Nicaragua faces inrinding qualified local staff, and continuous Inspector General oversight of the Nicaragua
program, priority in operating expenses must go to line staff responsible for implementation.
Reduced budget levels would not necessarily translate into potential FTE reductions for U.S.
direct-hire staff over the ABS timeframe as the Mission's staffing needs related to the project
portfolio are more a function of past obligations and the implementation requirements ofongoing projects than of new obligations.
In addition, given AID/State and Congressional requirements, the Mission has a significant
management burden related to the programming and oversight of local currency generated by
8

VSAJD/Nicaragua Annual Budget Submission

the Title m program and financial
oversight of local currency generated
by the balance of payments program.
Beyond these ongoing staff
requirements, the above narrativeemphasizes that the Mission would
move forward with planned newstarts of democratic initiatives basedon strategic priorities even at
reduced budget levels. Therefore,
the Mission's operating expensebudget presentations at various
scenarios reflect an effort to keep
U.S. direct-hire FTEs at current
levels and absorb any cuts in the OE
budget through reductions in contract
and local-hire personnel andprocurement.

August 31,1993•u4get Ce*H» for FY-M ami FY-K:
A. Calculation of FY 1S93 OE adjusted tevafe (Target):t 4.329.0
FY-t3 actual OE lavala
233.0
Building rant adjustment
Total adjuctad for FY-94 t 4.562.0
FY-93 actual OE lava)* 4,329.0
251.0
Building rant adjustment
Total adjuttad for FY-95 » 4.580.0
Kant adjustment* wara oaloulatad using tha difference between
the $45.000 rant payment (unechedulad) in FY 1993 and actual
raquirementa far FY 1994 (1278,000) and FY 1995 (*296,000).
B. Base levels:•0% of FY-94» 3.650.0

80% of FY-95

I 3.664.0

Par LAC instructions of August 20, 1993. FY 1994-1995 OE•Bate" maximum lavala wara eatablkined at 80% of the FY
1993 adjusted level* indicated in section A above. The 20%
reduction is a reflection of the difference between the FY 1993
FTE levels of 20.2 and the 21 estimate provided by the LAC
Bureau for meeting its OE reduced target levels.

As noted in previous ABS
submissions, the Nicaragua Mission
has been, and continues to be,
C. Difference between 'Target- (100% of FY-93 adjusted levels)
heavily dependent on its U.S. directand the 'Base*:hire and U.S. personal services
FY1994» 912.0
contractors because of the difficultyin finding and keeping qualified
FY1995» 916.0
Nicaraguans for both professionaland non-professional positions. The
increased burden on direct-hire stf 7 of training new employees and carrying out tasks thatmight be delegated to FSNs in other Missions makes it more difficult to cut FTEs although
the Mission is making a significant effort to move from USPSCs to FSNs.
To respond to a worst-case scenario for FY-94, the Mission would look first to cut
procurement and find savings in other non-staff line items. The numbers presented in thetables signify draconian cuts in both expendable and non-expendable property, planned efforts
to dramatically cut communication costs, and sharp reductions in training and travel. All ofthese cuts would have a negative impact on the Mission's ability to carry out its program.
At this level, however, it also would be necessary to cut important contract staff positions tokeep in place the line personnel responsible for project implementation. A planned "local
TDI" program to help address long-term staffing needs would be drastically reduced,
postponing full implementation to FY-95. These staff cuts would increase the Mission'svulnerability at a time when the program is one of the most heavily scrutinized in the world.
To meet both the base and target levels, the Mission has also canceled completely its planned
upgrade of the Mission accounting and control system to a UNIX-based system from thecurrent WANG proprietary system as recommended by IRM.

USAID/Nicaragua Annual Budget Submission

August 31,1993

In short, the Mission would attempt to meet target OE levels through cuts in support staff
positions, major reductions in expendable and non-expendable property, and reductions incommunication costs, training, and travel in order to keep U.S. direct-hire line personnel
required for adequate implementation of the Mission's program.
A complicating factor in analyzing operating expense budget scenarios is the uncertainty
regarding approval to purchase the building the Mission currently occupies. Purchase of thebuilding yet this fiscal year or in early FY-94 would reduce the severity of cuts required to
get to base levels. At this time, USAID/Nicaragua again requests approval for the use of up
to $2.5 million of local currency Trust Funds for the acquisition of the Office Building it
presently occupies under a 9 year and 11 month lease. Total rental cost over the life of thelease will be approximately $3.0 million, of which $278,000 and $296,000 will need to be
paid in FYs 1994 and 1995 respectively. Based on the severity of the OE cuts the US AID
and the Agency as a whole is facing, there is no better time than now for granting approvalof this action. Further delays in approving ihis long term dollar saving initiative will only
result in additional dollar costs to the US Government for rent and to the Mission inincreased vulnerabilities due to the personnel and other support cost cuts it is being forced toconsider during this budget exercise.
Total FT 1994-1995 OE Budget estimates in US dollir OOO's:
BASE
COST CATEGORY

FY-93

TARGET

FY-94

US DIRECT HIRE COSTS
335.0 353.0
259.0 379.0
259.0
FSN DIRECT HIRE COSTS
29.0
55.0
45.0
55.0
45.0
US/TCN/FSN PSC COSTS
1,488.0 1,417.0 1,379.0 1,779.0 1,611.0
HOUSING OPERATIONS
934.0 805.0 789.0 861.0
852.0
OFFICE OPERATIONS
1.005.0 903.0 904.0 1,096.0 1,091.0
NON-EXPENDABLE PROPERTY
538.0 117.0 288.0 3S2.0
722.0
TOTAL

4.329.0 3.650.0 3.664.0 4.S62.0 4.580.0

Above figures do not Include $2.5 million for procuranentof the USAID's Office building nor estimated FAAS charges
of $34,000 each year for FY 1993 through FY 1995.

An explanation of the effects of various OE levels follows.
Target Level for FY-94 - At this level, the Mission could basically carry out its program bytaking such actions as canceling some procurement items. Staffing would generally be stable
and the overall program at various program budget levels would be adequately supported.
Base Level for FY-94 - To meet the base level, the Mission would have to go beyond theabove measures and make drastic cuts in expendable (42.5%) and non-expendable (78%)
procurement, cut at least three key USPSC support staff positions (a 53% reduction from10

USAID/Nicaragua Annual Budget Submission

August 31,1993

FY-93 levels), reduce the planned local H)I program by 80% and delay its further
implementation, cut planned local training for FSN staff (48%), and curtail operational travel(over 30%). With these actions, direct hire staffing levels critical to program implementation
could be maintained. The most serious consequence to the Mission would be the increased
vulnerability created by the loss of certain key support staff positions that undertake
important oversight functions. The loss of funds for local training would also mean theMission could not continue efforts to address a weakness identified in recent Internal Control
Assessments. The major reductions in procurement would also hurt the level of overall
support that could be provided to Mission staff and the overall program.
Target Level for FY-95 - Expiration of current contracts and other planned changes would
allow the Mission to meet this level without major programmatic implications.
Base Level for FY-95 - Most of the actions required to make a 20% reduction in FY-94
would also be required to meet that level in FY-95 with similar consequences for theMission.

Conclusion
USAID/Nicaragua has made a large up-front investment in a program of assistance that isstill in its initial stages. Major reductions in budget resources would seriously constrain theMission's ability to carry out that program and would require several recently initiatedprojects to be downsized or terminated. Given the high priority placed on the objective of ademocratic and prosperous Nicaragua, the Mission believes it is important to follow throughon the development program recently put in place and provide the budget resources necessary
to implement that program.

11

USAID/Nicaragua Annual Budget Submission

August 31,1993

ATTACHMENT 1
FY 1994 PROGRAM BY STRATEGIC OBJECTIVE (millions)
Strategic
PolicyFY-94 CP Level
Area
Objective
100%
1 . Greater consensus on democratic values
14.50
Democracy
2. Increased foreign and domestic investment
Growth13.45
3. Increased competitiveness, diversification, participation
Growth28.03
4. Environmentally sound production/extraction .
Environment
|
2.58

75%
13.25
12.00
25.33
2.58

5. Improved quality & efficiency of basic education
Democracy
Growth
6. Improved maternal & child health
Pop/Health
Other
TOTAL

3.25

2.25

3.25

2.25

14.78

13.18

1.09

0.86

80.94

71.71

ATTACHMENT 2
FY 1995 PROGRAM BY STRATEGIC OBJECTIVE
Strategic
Objective

BASE: 100% of FY 1995 CP Level
100% of BASE
50% of BASE
75% of BASE
OngoingNew
OngoingNew
Ongoing j
New
1 . Greater consensus on democratic values
4.00
Democracy
5.00
4.00 I
8.50
3.00 |
6.00
2. Increased foreign and domestic investment
2.00
13.50
Growth
13.50
1.25
13.50
PolicyArea

3. Increased competitiveness, diversification, participation
Growth10.75
13.50
4. Environmentally sound production/extraction
Environment
1.25
5. Improved quality & efficiency of basic education
Democracy
1.50
Growth
1.50
6. Improved maternal & child health
Pop/Health
12.00
Other
0.47
TOTAL
30.47
32.00

12

13.25

13.50

2.00

16.00
j

3.50

2.00
2.00

2.75
2.75

13.50

13.50

40.00

0.71
31.71

13.50

49.00

0.94
31.94

USAlD/Nicaragua Annual Budget Submission

August 31,1993

Concept Papers
for
New Projects
andAmendments
13

Family Planning Expansion and Regionalization
Amendment Increasing LOP Funding from $5 to $10 million
frcjectf 524-0312

lutkl Obtytioa: 6/14/91 Ui«l FACD: 3/31/96

New FACD: 1/31/99

Project Purpose? The purpose of the amended project will continue to be to expand and strengthen thedelivery of family planning services in Nicaragua. Nicaragua has one of the highest population growth
rates in the hemisphere and its total fertility rate is 4.6, one of the region's highest. A recently
completed survey shows major differences in contraceptive use between rural and urban women andwomen of differing educational levels that point to an unmet need for family planning services that theamended project will address. The amended project anticipates increasing couple years of protection(CYPs) dispensed to users from 55,000 to 80,000 per year and reducing the percentage of women at
risk from an unplanned pregnancy for 17% to 14%, a significant change given that the target populationis the most resistant to change. The project will result in improved morbidity and mortality indicators,
a reduce infant mortality rate, and improved quality of life for women and children.
Project Description: The project supports the improvement and expansion of family planning services
provided by Profamilia, the local private voluntary organization that is the International Planned
Parenthood Federation affiliate in Nicaragua. The project supports:• Expansion of community-based contraceptive distribution posts, clinical contraceptive andgynecological services, and voluntary surgical contraceptive services. Under the current project,
Profamilia has opened clinics outside of Managua and is offering clinical and outreach reproductive
services in Boaco, Matagalpa, Juigalpa, and Chinandega and the surrounding area. The amendment
will expand clinic services and community-based distribution in underserved rural areas.
•

Establishment of family planning education programs to emphasize the benefits of family planningand birth spacing, including maternal and child health education, family planning education,
adolescent sex education, and. publication of informational materials. The amendment will funda major social marketing campaign targeted to rural areas and women with limited education.

• Training of community volunteer distributors, physicians and nurses from the Ministry of Health,social workers, and community leaders;•

Evaluation and research programs that will lead to improved family planning service delivery.

Profamilia has proven its capability to successfully implement more project activities than originallyenvisioned and the amendment will allow it to address critical needs in social marketing and communitybased distribution that have been identified by evaluation and research conducted under the project.
Outputs under the amended project include an increase in community-based distribution posts from 400
to 600; an increase in full-service family planning clinics from four to ten; development a network ofover 800 pharmacies and other points of sale for contraceptives; approximately 400 family planningworkers trained in contraceptive technology; a sustainable media campaign to promote family planningand the use of contraceptives; and an increase in access to family planning services for the over 160,000
women who are at risk of an unplanned pregnancy.
Relationship to Strategic Objectives and Agency Policy: The amended project promotes the Mission
strategic objective of improved maternal and child health through the increased use of
primary/preventative health practices. It also directly supports AID's overall emphasis on populationand health activities and its efforts to forge a partnership with private voluntary organizations.
14

PVO Co-Financing

Amendment Increasing LOP Funding from $15 to $21 million
TnjeO.1 534-0313

kJtiil OblfertioK 7/30/91 Bulal PACD: 6/30/96

New PACT): 1/31/99

Project Purpose: The purpose of the amended project continues to be the expansion of the availabilityof primary health care, family planning services, and employment opportunities for lower income
families, and to promote sustainable natural resource management. The project focuses on social,economic, and environmental needs that private voluntary organizations (PVOs) are uniquely qualified
to address such as: 1) promotion of child survival interventions to address the leading causes of deathand illness among both children and adults in Nicaragua, 2) creation of new jobs through microjfiterprise development or community-improvement programs that provide employment opportunities
for low-income groups in Nicaragua, and 3) promotion of appropriate resource management techniques
to help reduce deforestation, depletion of soil and water resources, and misuse of pesticides. Indicators
to measure project performance include reduced incidence of diarrhea! and upper respiratory diseases,
increased immunization coverage, person-months of employment created, and increased use of improved
resource management techniques.
Project Description: The project funds unsolicited proposals by registered U.S. PVOs for work inmaternal and child health, employment generation, and resource management. To receive grants fromthe project, USAID requires that a U.S. PVO fulfill criteria such as a counterpart contribution of 25%of the total cost of proposed sub-project activities, precise financial and implementation plans, adevelopmental rather than welfare-orientation for planned activities, people-level impact, and somedegree of follow-up activity after the completion of USAID assistance. In order to assure the selectionof top-notch PVOs for co-financing, additional criteria are applied: competence or expertise in the
proposed area of activity, involvement of possible beneficiaries and local organizations in design andimplementation, and involvement of local PVOs in program implementation. U.S. PVOs will receive
grant funds to carry out their programs and to sub-grant funds to provide training and assistance directly
to local PVOs. A contracted Project Management Unit provides assistance to PVOs in preparing
proposals and implementing sub-projects. Due to the availability of high quality PVO proposals andthe success of the project to date, the amendment seeks to expand the number of PVO sub-projects.
Current projections of project outputs, based on ongoing and pending sub-projects, include increased
immunization, family planning services, prenatal care, diarrhea control and care of respiratory infectionsfor 50,000 women of child-bearing age and 150,000 children under the age of five years, training ofhealth workers in preventative medicine and family planning, planting of one million trees in nurseries,
training of over 6000 small fanners in improved land use, creation of several thousand short-term jobs,
and improved access by low-income people to financial resources. Local PVO staff will also receive
training in project management.
Relationship to Strategic Objectives and Agency Policy: The project supports three different Mission
strategic objectives that correspond to three distinct areas of overall AID emphasis. Health related PVO
sub-projects support the strategic objective of "improved maternal and child health" and the Agency
emphasis on population and health. Employment generation activities support one of the mission's
strategic objective related to the Agency emphasis on broad-based growth by focusing on theparticipation aspect of "increased competitiveness, diversification, and participation in the economy".
Resource management activities support the Agency's environmental emphasis and the Mission objective
to increase use of environmentally sound productive and extractive practices". The project also
promotes A.I.D.'s development partnership with Private Voluntary Organizations (PVO) to initiate
development activities to benefit the rural and urban poor.
15

Electoral Support Project
New Project for FY-94

Ptc«Ktf534-(846kk»lC»%«k»: $2BuBu» Told LOP PmOaf. $4 mtSk*

PACD: FY-97

Project Purpose: The purpose of the project is to help the Government of Nicaragua prepare
for the national elections that are scheduled to take place in 1996. One of the major factors that
helped to ensure a peaceful transfer of power after the 1990 presidential elections in Nicaragua
was that the electoral process was unimpeachably transparent, eliminating almost all possibilityof electoral fraud and conferring legitimacy on the new government. Given the fragile natureof Nicaraguan democracy and the political polarization still present in the country that hascreated political stalemate and spilled over into violence, it is of critical importance that theelections of 1996 take place as scheduled and represent a transparent process that accuratelyreflects the will of the Nicaraguan people. The successful implementation of national elections
as scheduled in 1996 that are considered free and fair by international observers will be theprimary indicator of project success.
Project Description: The project will strengthen the GON's ability to organize and conduct
elections in an open and impartial manner, and help private and public sector organizations
undertake civic education activities and work to encourage civic participation in the elections.
In order to accomplish these objectives, the project will provide:•

Technical assistance to review electoral laws/regulations, political rights law, and the legal
framework governing political parties. Should improvements be required to assuretransparency in the electoral process, assistance will be provided to help make neededchanges;•

technical assistance in the planning and logistical support of the electoral process which
includes ballot design and distribution, voter identification/registration systems, multiple
voter security checks, ballot transfer security, vote counting and verification, station
reporting and international observer teams; and•Support to civic education activities related to voter education.

Project outputs will include: (1) a complete list of commodities necessary for the election;(2) detailed organizational and implementation plan for the campaign and election; (3) a plan fordonor coordination during the election; (4) a plan for international observers; and (5) activities
for citizen education and participation through private and government organizations.
Relationship to Strategic Objectives and Agency Policy: In helping to institutionalize theelection process as a means of choosing leaders and transferring power and working to instill
confidence in that process, the project will contribute directly to the Mission strategic objectiveof "greater consensus on democratic values". Promoting free, fair, and transparent elections
in Nicaragua contributes to the overall agency goal of promoting democracy around the world.
16

Municipal Decentralization and Development
New Project for FY-94

Ptt*«tf 534-0341

Ukl OMfetfa*: $2.5 •Oio>

ToUI LOP Pmtmf. 7 •ffliai

PACD:FY-99

Project Purpose: The purpose of this project is to increase the economic and political empowermentof local governments. Local government provides the opportunity to put into practice the principles of
democratic government in a comprehensible environment where Nicaraguan citizens can participate
directly. In a country where national politics are highly polarized and divisive, municipalities can be
the incubator for new leadership with first-hand experience in the give and take of democratic decision
making. Indicators of project impact include measures of increased mobilization and retention ofmunicipal revenues and improvement of local capacity to manage resources, and greater citizen
participation in municipal affairs and projects.
Project Description: The municipalities' taxing authority rests on an insecure legal base that requires
the municipal budget and tax plan to be approved by the Executive, who also has the authority toappropriate municipal taxes for the national treasury. Municipal development is hampered by laws andcontrols which restrict autonomy and hinder the municipality from exercising authority over thegeneration of local income, as well as over such local services as water, sanitation, electrification, andeducation. As a result, municipalities lack revenues to implement many important community projects,
as well as the administration, planning, and participatory management skills to implement them. The
proposed project will respond to these needs by addressing the following areas:• Reforms in the Legal Framework - Technical assistance will support reform of those provisionsof municipal administration and tax laws which unduly restrict the autonomy of municipalities informulating budgets and mobilizing revenues and of the municipal electoral law which stipulates
the indirect election of mayors, weakening their authority and municipal stability.
• Extension of Decentralized Services - Technical assistance will help i) standardize model pilot
decentralization activities in water and education services now being tested in pilot municipalities
and support expansion of such decentralization to other municipalities; and 2) study the feasibilityof extending decentralization to other sendees such as electrification and sewage and sanitation.
• Municipal Administration and Management Skills - Training will be provided to enhance thecapacity of mayors, council members and/or municipal administrative staffs to help them increase
their capacity to identify revenue producing services, collect and manage local taxes, plan andprioritize investments, and promote citizen participation.
• Municipal Matching Investment Fund - A capital fund available for investment in municipal
infrastructure if criteria designed to encourage procedures and practices favorable to sustainabledemocratic municipal development are met will provide resources that will encourage democratic
decision making and accountable implementation of community projects.
Relationship to Strategic Objectives and Agency Policy: In building a firmer legal basis formunicipalities to mobilize and retain revenues and improving their capacity to manage resources, theproject will further the wider promulgation and understanding of democratic values and a greater
confidence in democratic institutions, outcomes which will promote the Mission's strategic objectiveof "greater consensus on democratic values." The project also supports the Agency emphasis on
democracy by fostering greater confidence in municipal institutions and promoting democratic decision
making and accountability at local levels.
17

Private Agriculture Services

FY-94 A-iendment Increasing LOP Rinding from $7 to $10 million
J34-TO15

hfciil OM«KiaK 91W91

WtU FACT: 1/31/96

Nvw PACD: 1/31/99

Project Purpose: The purpose of the amended project is to strengthen private sector agriculturalorganizations to increase private sector participation in the economy. The agricultural sector stagnatedand was steadily decapitalized during the decade of the 1980s and now finds itself far behindneighboring countries in productivity and establishment of market linkages. As land tha i was abandoned
due to civil strife is put back into production and producers apply up-to-date technology, the agriculture
and agribusiness sector offer the greatest potential in Nicaragua for productivity and productivity
increases. The Pacific Coast Region, however, is undergoing an economic crisis with the almost
complete collapse of cotton planting in 1992. The project will help the region, which has excellent
agricultural potential, find substitutes for cotton. Indicators for the amendment will be increased
participation in private membership associations, increased productivity of key crops, and increased
exportation of both traditional and non-traditional products.
Project Description: The project responds to the potential in the agriculture sector for rapid growthby stimulating agricultural development through promoting technology improvement, agribusinessdevelopment, increasing agricultural inputs, and promoting market linkages. The amended project will
broaden the current project's support of agricultural associations through the umbrella private sector
association of agriculture and livestock producers, UPANIC, to encompass the newly privatized National
Coffee, Cotton, and Livestock Commissions. The project's continued foots on expanding access to
production and processing technologies by and through the private sector will be enhanced by thecapability of these new institutions to reach smaller farmers at lower economic levels.
The privatized Coffee and Livestock Commissions will have primary responsibility for technology
generation and transfer for their respective commodities and, as such, will complement the efforts of
UPANIC. The Cotton Commission is being privatized into a development foundation called
FUNDEAGRO which will seek to develop alternatives to cotton production for the economicallyimportant Pacific Coast Region. Tthe project will create strengthened associations capable of including
and training more small farmers and undertaking technology transfer for improved productivity by:• Financing small farmer organization and training programs in several coffee associations which areintended to provide a mechanism for the inclusion of small fanners in the National Renovation
Program. The Amendment will increase the coverage of these association-based programs byproviding a source of technical information, orientation, and training;• Creating a source of modern livestock and dairy technology within the Livestock Commission andwill make available training and technical assistance for the association-level technicians;• Supporting the research and extension infrastructure which is presently under-utilized in the Pacific
Coast cotton-growing region to identify economically viable alternatives for the Region.
Relationship to Agency Policy and Mission Strategic Objectives: In improving the quality andcoverage of agriculture services through private associations, the project is fully consistent with the
Agency's focus on economic growth through the expansion of private enterprise. The project directly
supports the Mission objective of "Increased competitiveness, diversification and participation"and is
the amendment's focus on reaching small farmers represents a major initiative to broaden the direct
impact of Mission programs and increase the participation of low income groups in the economy.
18

Economic Recovery and Development II
New Program for FY-94

PR*)* 0534-0342

Total LOFP»*n: $34 »fflic*

PACD: FY-95

Program Purpose: The purpose of the project is establish the economic conditions and policy
framework necessary for increased investment, diversified export production and sustained
economic development. Policy conditionally under the program will continue past year's
support for maintaining macroeconomic stability through controlling aggregate money and credit
growth. The provision of substantial HOP assistance is also instrumental in reducing shortagesof foreign exchange which are essential for productive imports in this country. Historically, acontinuation of economic stability, to which ERD n contributes, of five years of more, is needed
to create a more durable change in the private investment climate.
Program Description: Disbursement of BOP assistance would be conditioned on policy reforms
agreed to by USAED and the GON. Dollar disbursements would be used to pay for eligible debt
servicing and arrears payments and imports for the private sector. The Mission will endeavor
to minimize the management requirements associated with local currency generations fromimport financing.
ERD-n will build on the measure of stability already achieved to increase emphasis on theflexibility and privatization of financial markets, including greater market-orientation in exchange
rates, interest rates, and financial instruments. Economic stabilization will be further cemented
by supporting fiscal policy reforms, including continued rationalization of tax and expenditurepolicies, and focusing on ameliorating the constraints to private investment. Hie program will
require demonstrated progress in resolving property issues which have been a major obstacle inefforts to create a positive investment climate. ERD-n also will be conditioned on continuationof cooperation between the GON and the IMF, which is expected to continue through 1995
under an Enhanced Structural Adjustment Facility. Actual disbursement of the ESF will be
conditioned on meeting policy conditions.
The Central Bank will provide regular reports on the use of dollars. Indicators for measuring
progress include maintaining low levels of inflation, reductions in the fiscal deficit, increases ininvestment contracts, expansion of private financial institutions, elimination of import and export
controls, and rationalization of the exchange rate.
Relationship to Agency Policy and Mission Strategic Objectives: The project is the Mission's
primary instrument that responds directly to the Agency's focus on supporting policy reforms
to achieve economic growth. Further, ERD n supports the three Mission strategic objectives ofincreased investment; increased competitiveness, diversification, and participation in theeconomy.
19

Economic Recovery and Development in
New Program for FY-95

FKj«* 1 534-0343

Tool LOP Pnuti*: $27 mtOiiM

PACT: FV-96

Program Purpose: The purpose of the project is to continue to establish the economic conditions
and policy framework necessary for increased mvestment, diversified export and sustained
economic development. USAED's Program Strategy review of February 1993 confirmed theimportance of support for the balance of payments (BOP) through the period covered by thestrategy. Continuation of this support is vital, as a sustained period of stability—five years ormore—is required to create a durable change in the climate for private investment. It is hopedthat the stabilization first achieved in 1991 will be durably established by the end of 1995.
Program Description: ERD-HIwill be the third annual instalment of the ERD program. It will
be coordinated with technical assistance to the GON provided by the Economic Policy Analysis
and Implementation (EPAl) project (524-0339). The Private Sector Support and Private
Agricultural Services projects also work to stimulate a private sector response to the policy
reforms encouraged by the Mission's BOP assistance.
Disbursement of BOP assistance would be conditioned on policy reforms agreed to by US AID
and the GON. Dollar disbursements would be used to pay for eligible debt servicing and arrears
payments and imports for the private sector. The Mission will endeavor to minimize themanagement requirements associated with local currency generations from import financing.
Policy conditionality in ERD-ffl will continue past years' support for maintaining
macroeconomic financial stability through controlling aggregate money and credit growth, andfocus on ameliorating the constraints to private sector investment. The fiscal policy reforms
initiated under ERD-I and ERD-n will also be continued, including continued rationalization of
tax and expenditure policies. Finally, disbursement will be related to continuation of cooperation
between the GON and the IMF, which is expected to continue through 1995 under an Enhanced
Structural Adjustment Facility.
The Central Bank will provide regular reports on the use of both the dollars and local currency.
Indicators to track program progress and success include maintaining low levels of inflation,
reductions in the fiscal deficit, increases in investment contracts, expansion of private financial
institutions, elimination of import and export controls, and rationalization of the exchange rate.
Relationship to Agency Policy and Mission Strategic Objectives: BOP assistance is thecentral instrument in A.I.D.'s economic policy dialogue in Nicaragua, and is directly related to
the Agency emphasis on economic growth through policy reform. Further, ERD ffl willcontinue to support the Mission's objectives of increasing investment and competitiveness,diversification, and participation in the economy.
20

Strengthening Democratic Institutions

FY-95 Amendment Increasing LOP Funding from $18 to $27 million
itaiect 1 5344316

Mitt i tifetficK 4/17/91

FACT: V31I99

Project Purpose: The purpose of the amended project is to strengthen democratic institutions and thevalues and attitudes that nurture them. The project addresses the fundamental weaknesses ofNicaraguan public and private institutions that are critical to a functioning democracy and works directly
through civic education activities to promote democratic values. Indicators of project impact include
increased acceptance of democratic values and increased confidence in democratic institutions asmeasured in independent surveys, decreased levels of human rights abuses, increased relevance of the
National Assembly in decision making, reduction in politically motivated labor disruption, improved
accountability of the justice system, and use of alternate dispute resolution mechanisms.
Amendment Description: The amendment continues and expands activities that began prior to theaddition of the Administration of Justice component including on-going activities in civic education andassistance to intermediate institutions of pluralism as well as to key government institutions. Activities
in rural areas will be emphasized as well as activities designed to further involve socially andeconomically disadvantaged sectors of Nicaraguan society in democratic processes. The amendment will
provide funding for:•institutions of pluralism, such as political parties, democratic labor unions, the free media, andhuman rights groups;•

key governmental institutions at the local or national level such as the National Assembly,
Supreme Court, and the Attorney General;•

informal civic education through grassroots organizations in the rural areas, cooperatives,
women's groups, youth organizations, and formal civic education through the Ministry of
Education; and•evaluating the feasibility of automating and systematizing the property registry and implement
these activities in priority areas of the country.

•

developing alternative dispute resolution mechanisms at the community level, within intermediaryinstitutions such as political parties and unions, and within the government.

•

mechanisms other than formal democratic institutions to resolve polarizing conflicts throughstudies, seminars, consultancies to key private and governmental groups, and observational
visits.

•improving civil/military relations and strengthening civilian control of the military.

Relationship to Strategic Objectives and Agency Policy: Project activities to improve understandingof democratic principles and processes and strengthen democratic institutions directly support theMission objective of "greater consensus on democratic values" and AID's Democracy Initiative.
21

FY-94 OPERATING EXPENSENICARAGUA ABS '94
ABSPIC94

Expense Category

FunctionCode

FT 1994 BASE
Trust
Funds

Dollar*FT 1994 TARGET

Total

Trust
Fund*

Dollar*

Total(NICARAGUA)Other salary
Edue. Allow'B
COLA
Other Benefits
Post Assign Trv
Post Assign Frt
Bone Lv Trv
Borne Lv Frt
Eduo Trv
R & R Trv
Other Trv

0100
0105
U106
U108
U110
Dili
U112
U113
0114
0115
0116
0117

F.N. Basic Pay
Overtime/Holiday Pay
All other Code 11-F.N.
All other Code 12-F.N.
Benefits - Former F.H.
Accrued Severance

0200
0201
0202
0203
0204
0205
O2 06

U.S. PSC Sal/Benefits
All other US PSC Costs
FN PSC Sal/Benefits

0300
0302
0303
0304

0
119,600

36,37360,3378,400
72,00015,1209,460
1,150
20,721
9,640

48,992
1,789
1,500
2,501

0
0
0
0
0
0

0

0

119,600
36,373

127,600
36,57765,037060,3378,400
72,00015,120
9,460

0
0
0

20,721
9,640

0

0
0
0

0
0

0
0
0

172,284
9,577
1,067,113

0
0

0

1,150

9,800
84,00015,1209,460
1,150
20,721
9,640

0
0
0
0
0
0
0
0
0
0
0

0
127,600
36,57765,0379,800
84,00015,1209,460
1,150
20,721
9,640

48,992
1,789

0
0

0
0
0
0
0
0

308,192
70,3781,181,636

000308,192
70,3781,181,036

48,992
1,789
1,500
2,501

48,99200172,284
9,577
1,067,113

1,789
1,500
2,501

1,500
2,501
0
0

FY-94 OPERATING EXPENSEMICARAGOA ABS '94
ABSHIC94

FT 1994 BASE

Expess* Category

Function
Cod*

Dollars

Trust
Funds

Total

Dollars

FT 1994 TARGET
Trust
Funds
Total

(NICARAGUA)

All other FN PSC Costs
Manpower Contracts
Accrued Severance

Res. Rent
Res. Utilities
M & R
LQA

Security Guards
ORE
REP

U304
0306
U307

0400
0401
0402
0403
0404
0407
0408
0409

^SMH^SHHHHHI
U5°°Office Rent
0501

h
-.

Office Utilities
Bldg. M & R

0502
0503

Equip. M & R

O508

Comminications
Security Guards
Printing
Site Visit-Mission

0509
0510
0511
0513

Sit?. Visit AID/W

0514

Info Meetings
Training
Conference Attendance

O515
05 1C
OS 17

0
125,132

503,980
13,7820160,184
0

2,000

13,7820160,18400278,126
0
11,464
4,437
90,8120
0
16,095
19,6177,700
36,28024,112050,346
10,0002,716
097,788000000503,980
0
0
0
0
0

2,000

519,580
0
0
0
0
0
2,000

0
151,132
13,7820174,18500519,580
151,132
13,7820174,18502,000

278,126
50,346
21,464
7,153
90,812
97,7880
16,095
19,6177,700
36,28024,112

278,126
0
11,464
4,437
63,3060
0
16,095
19,6177,700
36,28024,112050,346
10,0002,716
75,506
97,788000000278,126
50,346
21,464
7,153
138,81297,7880
16,095
19,6177,700
36,28024,112

125,132

FY-94 OPERATING EXPENSENICARAGUA ABS '94
AESWIC94£sp«nse Category

Function
Code

Dollars

FT 1994 BASE

FT 1994 TARGET

Trust
Funds

Trust
Funds

Total

Dollars

Total(NICARAGUA)Other Ops Travel
Supplies
FAAS
Cent Consult Svcs.
Cont Mgt/Prof Svcs.
Spec Studies/Analisys
ADP R/H Leases/MaintADP S/W Leases/Kalnt
Trans/Freight U500
All Other Cont. Svcs

U518
U519
U520
U521
U522
U523
U525
U526
U598
U599

VehiclesRes. Furniture
Res. Equipment
Office Furniture
Office Equipment
Other Equipment
ADP H/H Purchases
ADP S/W Purchases
Trans/Freight U600

U600
U601
U602
U603
U604
U605
U606
U607
0608
U698

Total OE Expense Budget
Less FAAS
Total OE Expense Budget
636(c)
Grand Total OE Expense Bud<

7,980
34,0000
10 f OOO
0
25,0000
10,41659,963

0
0
0
0
0
0
0
0
0
0

7,980
139,753
34,0000
10,000025,0000
10,41659,963

7,980
192,028
34,00015,00010,000025,000029,904
118,965

0
0
0
0
0
0
0
0
0
0

7,980
192,028
34,00015,00010,000025,000029,904
118,965

0
6,535
646
12,87727,36538,94810,00010,000
10,637

0
0
0
0
0
0
0
0
0

0
6,535
646
12,87727,36538,94810,00010,000
10,63788,76014,0291,388
30,052
63,86164,93335,00043,00051,153

0
0
0
0
0
0
0
0
0

88,76014,0291,388
30,052
63,86164,93335,00043,00051,153

139,753

ABS -94

FY-94 OPERATING EXPENSE

ABSMIC94

Expense Category(NICARAGUA)USDH FTEs
FNDH FTEs (U200)
US PSC FTEs (U300)
TCN PSC FTEs (U300)
FH PSC FTEs (U30Q)
OTHER CONTRACTS FTEs (U300)

Function
Code

Dollars

FT 1994 BASE
Trust
Funds

Total
25.62
4.00
5.56
2.00
100.41
14.00

Dollars

FT 1994 TARGET
Trust
Funds
Total
25.62
4.00
8.56
3.00
107.0014.00

FY-95 OPERATING EXPENSE•ICARAGOA ABS '95
ABSIIC95

FT 1995 BASE

Expense Category

Function
Cod*

FT 1995 TARGET

Total

Dollar*

Dollar*

Fund*

Total

(SriCAXAGOA)Other •alary
Educ. Allow'!
COLA
Other Benefits
Post Assign Trv
Post Assign Frt
HOB* Lv Trv
BOM Lv Frt
Educ Trv
R ft R Trv
Other Trv

0100
0105
0106
0108
0110
0111
0112
0113
0114
0115
0116
0117

F.H. Basic Pay
Overtime/Holiday Pay
All other Cod* 11-F.H.
All oth*r Cod* 12-F.H.
B*n*fits - Former F.H.
Accrued S*v*ranc*

0200
U201
O2 02
O2 03
0204
0205
0206

U.S. PSC Sal/Benefits
All other US PSC Costs
PR PSC Sal/B*n*fits
All other FH PSC Costs
Mac^ower Contracts,K<3crued Severance

0300
0302
0303
0304
0304
0306
0307

103,800
35,31132,2292,800
24,00015,50010,530700
27,1836,600

38,651
1,789
1,500
3,001

0
0

129,420
6,683
1,085,344
23,815000o103,800
35,31132,2292,800
24,00015,50010,530700
27,1836,600

103,800
35,31132,2292,800
24,00015,50010,530700
27,183
6,600

0
0
0
0
0
0

38,651
1,789
1,5CO
3,001

38,651
1,789
1,500
3,001

0
0

0
0

0
0
0
0

129,420
6,683

0
0
0
0
0
0
0
0
0
0
0

134,216

1,085,344
23,815
134,216

0

0

0
0
0

0
0
0
0
0
0
0
0

0
103,800
35,31132,2292,800
24,00015,50010,530700
27,183
6,600

0
0
0
0
0
0

38,651
1,789
1,500
3,001

231,685
23,481
1,180,038
42,222000231,685
23,481C
0134,216

1,180,038
42,222
134,216

0

0

0

0
0

FY-95 OPERATING EXPENSE•XCARAG0A ABS '95
AB8VIC9S

FT 1995 BASE

Bxpen*a Category

Function
Cod*

Trn»t
Fund*

Dollar*FT 1995 TARGET

Total

Tru*t
Fund*

Dollar*

Total(•XCAKAGO&}

Re*. Rent
Re*. Utilities
M I R
LQA

Security Guard*
ORE
REP

Office Rent
Offie* Utilities
Bldg. M £ R
Equip. M K It
Communication*
Security Guard*
Printing
Sit* Visit-Mission
Sit* Visit AID/W
Info M**ting*Training
Conference Attendance
Other Op* Travel
Supplier
FAAS

Cont Consult Svc*.
Cont Mgt/Prof Svc*.
Spec Studie*/Anali*y*
ADP fi/W Leases/Maint
AOP S/N Leases/Maint

0400
0401
0402

507,980

0
0
0
0
0

0
114,935
13,208507,980
114,935
13,20800150,827

150,827

0403
0404
0407
0408
040*

2,000

0
0

0500
0501
0502
0503
0508
0509
0510
0511
0513
0514
0515
0516
0517
05 IS
0519
0520
0521
0522
0523
0525
0526

295,577
0
13,9191,353
50,5000012,6508,000
6,200
25,70012,2004,730
186,604
34,0000
10,000030,0000048,2480044,852
93,714
0
0
0
0
0
0
0
0
0
0
0
0
0
0

524,7800144,835
13,208524,780
144,835
13,20800166,927

166,927

0

0
0
0
0
0

2,000

2,000

0
0

2,000

295,577
48,24813,9191,353
95,352
93,7140
12,6508,000
6,200
25,70012,2004,730
136,604
34,0000
10,000030,0000295,5770
6,919
753
57,2220012,6508,000
6,200
25,70012,2004,730
253,480
34,00015, COO
10,000030,0000048,2487,000
600
75,502
93,714
0
0
0
0
0
0
0
0
0
0
0
0
0
0

295,577
48,24813,9191,353
132,724
93,7140
12,6509,000
6,200
25,70012,2004,730
253,480
34,00015,00010,000030,00000FY-95 OPERATING EXPENSENICARAGUA ABS '95
ABSBIC95

FT 1995 BASB

Kxpenae Category

Function
Cod*

DollaraFT 1995 TARCBT

Truat
Fanda

Dollara

Trnet
Funda

Total

(XICARAGUA)

Trana/Freight U500
All Other Cont. Svca

US 99
0599

Vehielea
Rea. Furniture
Rea r Equipment
Offie* Furniture
Office Equipment
Other Equipment
ADP B/H Purchaaea
AOP S/H Purchaoe*
Trani/Freight U600

17,31242,47993,19827,6792,738
18,321
38,93340,89520,00020,00026,176

93,19827,6792,738
18,321
38,83340,89320,00020,00026,176160,206
41,3294,088
55,7S£
118,544
64,933
115,000
68,08094,195160,206
41,3294,088
55,786
118,544
64,933
115,000
68,08094,195

Total OB Bxpeni* Budget!=*•• FAAS
Total OB Bxpenee Budget
636(0)

U599

Grand Total OB Expenae Budg
USDH FTEBFHDH FTEa (U200)

US PSC FTEs (U300)
TCR PSC FTEs (U300)
FM PSC FTEa (U300)
OTHER COMTRACTS FTEa (U300)

25.02
4.00
4.50
1.00
106.33
14.00

25.02
4.00
6.00
3.00
108.0014.00

02-&P-93
01:20 PU

USABXIflCARAOUAFY 93-95 OPERATING YEAR BUDGET
Minioa Budfet Scenario! for the Annual Budget Subraaiion
Project/Profram

LOP

DEVELOPMENT ASSISTANCE
ALLOCATION/PLANNING LEVEL

Pofcy

FY-93

Original

94 CP

Are*

Obiiption

Mortftfe
61.35

Level
36.94
36.94

3.00

PLANNED OBLBATIONS

Mortpr

75% ofMortal*

94 CP
27.71

FY-95

More**

75* ofUortpii

50* of

Ifortpi*(94 CP) buedonFY- FY-95 buedoiFY- FY-95 btwdmFY36.94 fundinj at CP
27.71 fimdincitCP
11.47 findinf stCP

4130

27.71

57JO

36.94

27.30
5.00

27.71

3530

4.00

5.00

1(47

4430

3.00

6.00

524-0316

Strengthen Demo, hit

0.00

3.00

0.00

4.00

524-0330

18/27
4.00

3.00

Pub &c Fnanciil Mpnt

Democracy

100

2.00

100

100

100

524-0341

Municipal DedtntnHzatkxt *Dev.

7.00

Democracy

250

450

100

5.00

3.00

524-0346

Electoral Support

4.00

Denoenqr

ZOO

100

100

100

100

524-0319

DevTnkiinf A Support

20.00

Dem^nnMh

6.00

12.00

4.00

(.00

250

950

3.00

5.00

(.00

(.GO

524-0339

EconPoKcjrAnalyiii* Implement(.00

Growth

3.10

4.90

350

4.90

2.00

150

150

100

350

350

140
"0
150

150

Democracy

5.00

524-0317

Priwt* Sector Support

55/125Growth5.70.

524-0315

Private Absences

7/10

Growth

550
1.00

100

100
150

100

150

100

1.00

350

100

350

100

0.00

1.00

1.00

1.00

100

150

0.00

150

0.00

1.00

050

2.00

524-0314

Natunl Retcuice Mfmt

9.00

Environneot

1.00

1.00

524-0313

FVO Co-Financint

Growth/Env

555

5.17

5.17

0.00

5.17

0.00

5.00

1.00

4.00

100

250

350

524-0327

DecentnfizedHeakh

15/21
22.00

Pop/Hnlh

7.92

14.08

4.28

9.80

3.11

10.90

3.00

6.80

3.00

6.JO

250

730

524-0312

Pro-Bunifia Fin Pknof

5/10

Pop/He.*

2.00

5/10

100

3.00

350

100

1.00

100

1.00

1.00

100

524-0329

BagbEducatkn

30.00

DeaOrowth

850

1750

650

11.00

150
450

13.00

550

550

4.00

7.00

3.00

ISO

524-0000

Profnm Devel * Support

Othw

1.00

Other

0.20

Other

0.01

Growth

40.00

UntvenhvTexlboota

0.60

Peace Corpt Small Project AM*.

1.00

100

0.87
0.20

030

0.92

0.74
0.00

0.71

0.47

0.10

0.02

0.02

0.02

27.00

27.00

27.00

27.00

27.00

24.00

24.00

120

2.20

0.50

0.80
27.00

27.00

27.00

ESP
Pbnntnf Levtb
524-0333

Econ Recover? *Dev. I

40.00

524-0342

Econ R«ov. ft Dev. H

27.00

Growth

524-0349

EiptndedOAVProim

7.20

Denoencjr

AIFLD Home Improvement

0.80

Democracy524-0343

Econ Recov. ft Dev. m

27.00

GrowthPL-480TitIe m Food Atratance

51.00 Orowlh/HMkh

5.00

15.70

TOTAL OYB

Stntepc

PoBcjr

FY-94CPLevel

17.00

17.00

17.00

17.00

17.00

80.94

71.71

80.94

71.71

6147

Stntepc

PoBcy

FY-95 BtasLeve! (FY-CP)

Objective

AIM

100*

75%

1. OraterconMfUui en demcntfe whet
Democracy

Objective

Aret

50%

75%

100%

1. Greater caoMent on denentii wluei

1450

13.25

Denocnejr

1.00

10.00

1250

1350

14.75

1550

24.25

26.75

2950

2.00

350

2. fccretied foreign tad doneetc irvettnent
13.45

Growth
3. foemwdeoapetiti

12.00, divenifiatioo, ptrfcipition

Growth

28.03

Orowa

2533

4.EnvimuBHiuDf nund prodncticn/atnctkn

Environment

Growtfc
3. Bicneied eocapetitiwDee^ divtnuEttian, puticipetiaa
4. EnviraunenuDf taand pradactxnABitneUaa

258

25t

5. Inproved tpMf * efBdtncy of bin: eduotkm

Enviranneat
5. Improved qutkir ft effiaeocy of btnc educttion

D»nocney

3.25

2.25

Denaengr

150

2.00

2.75

Growth325

2.25

Growth

150

2.00

2.75

14.78

13.18

1ZOO

1350

1350

Other

1.09

O.K

Other

0.47

0.71

0.94

TOTAL

80.94

71.71

TOTAL

62.47

71.71

W.94

6. Iraprowd mtemtl * child h«*kh
Pop/Hettt

6. Improved mtemal ft chikl hoikh
Pop/Berth

USRID / NICRRRGUR MISSION DIRECTOR'SNRRRRTIVE C : RNNURL BUDGET SUBMISSION,NICRRRGUR
RNNURL BUDGET SUBMISSION <RBS)

PD-RBK-322
1 OF 1(24X)
1993