Following are some of the areas having bearing on agriculture and rural development on which member countries can send their project proposals for financial assistance :

a)     Agricultural Development through :-

i)     Transfer of technology;
ii)     Farm mechanisation;
iii)    Prevention and control of pre-and-post-harvest losses;
iv)    Irrigation network;
v)     Warehousing and transport;  

vi)    Land reclamation and development; and

vii)    Water harvesting.

 

b)      Infrastructural Development : -

 

i)       Rural roads and transport;
ii)      Communication system; 
iii)     Electricity generation especially from renewable sources such 
        as solar, wind and bio-gas; and

iv)     Schools and health centres.

 

c)      Promotion of Micro-enterprises :-

i)       Value addittion in agricultural produce; and

ii)       Handicraft and cottage industry.

d)      Social Development :-

i)      Health :  Sanitation and immunization against diseases;

ii)     Family welfare;

iii)    Education including non-formal and adult education; and
iv)    Safe drinking water supply.

 

 

GUIDELINES FOR FORMULATING A PROJECT PROPOSAL

 

 

The project proposal should be designed as per the following guidelines given below and forwarded to the AARDO Secretariat through the respective Nodal Ministries which deal in AARDO affairs. The technical and financial viabilities of  the project proposal are examined  by  the AARDO's Technical Committee prior to its approval.   

 

 

 

 

 

 

Technical Viability  

 

a)    Background of  the project

b)    Justification for taking up the project

c)    Location

d)    Available resources : human and material

e)    Aims and objectives

f )    Methodology                       

g)    Duration : date of commencement and completion

h)    Implementing agency : organisational set-up and experience of  the 

       project  personnel in the relevant field

i)     Sponsoring agency

 

Financial Viability

 

A   Financial Outlay (Yearwise break-up)

 

i)    Non-recurring (fixed assets) expenditure

 

     a)      Plant and machinery

     b)      Equipments and accessories

     c)      Installation charges

     d)      Land and building

     e)      Cost of civil construction

     f )      Cost of inputs

     g)      Other costs, if any

 

ii)    Recurring expenditure

 

       a)    Salaries and wages of  project personnel

       b)    Travelling expenses

       c)    Raw material

       d)    Operation and maintenance cost

      

      Total (i + ii)

 

 B     Financial Liability (US $)

Source	Capital	Maintenance
	Cost	Cost
i)  Local contribution
ii) AARDO's contribution

 

C     Expected Benefits  to be accrued :

 

         a)         Economical           

                                                                    

         b)         Social               

 

 

D     Name of Agency/Organisation responsible for implementation of the project.  

REVOLVING FUND SCHEME FOR AARDO-ASSISTED PROJECTS

AARDO had introduced the concept of “AARDO Micro-Credit Model”. AARDO’s development projects are divided into two broad categories: i) infrastructure development; and ii) development of micro-enterprise. As per the guidelines provided for AARDO’s financial assistance for the development projects scheme, recipient countries are expected to replicate the projects in other parts of the country if found beneficial and successful. Often, due to paucity of funds, this has not been possible. At present, beneficiaries of micro-enterprise projects are given capital on gratis basis by AARDO through the implementing agencies in the respective member countries. Considering that micro-entrepreneurship is meant to generate income for the beneficiaries, it is proposed to treat the investment as a loan. Thus, the beneficiaries will now be asked to repay the amount of interest-free loan back to the implementing agency over a period of time. This sum will be treated as a revolving fund and placed in a bank. On receipt of repayment from the beneficiaries, the nodal ministry will identify another group of entrepreneurs and will provide them with interest-free loan. In this way, the implementing agency will get an opportunity to replicate the project in other parts of the country without any financial burden.

Financial Provision for Triennium, 2006-2008

The development projects implemented in member countries have yielded good results. The income generating micro-enterprises helped in improving the socio-economic conditions of the beneficiaries. Similarly, the project on infrastructure development accelerated the economic activities in the region. Considering the increasing interest of the member countries, 15th AARDO conference has increased the allocation for financing of development projects to US $763,500 for the triennium 2006-2008, with each project outlay being US$ 50,000.