U.S. Agency for International Development, Regional Contracting Office, American Embassy/Amman, USAID Unit 70206, APO AE 09892-0206

H -- MICROFINANCE & POLICY IMPLEMENTATION DUE 043097 POC Contact Point: Celeste Fulgham, Regional Contracting Officer, American Embassy/Amman, USAID Unit 70206, APO AE 09892-0206. USAID/Jordan is contemplating the award of grants and/or contracts to organizations that have the capacity to work in either, or both, of the following areas of economic growth: (a) sustainable micro-enterprise financing -- including the development through training, technical assistance and improved management information systems, of local NGOs and/or banks that effectively incorporate best practices in micro (and small) enterprise finance into their programs, and (b) more effective implementation of market-oriented trade and investment policy reforms. The intention of this notice is to identify organizations that may have the capability of working in either, or both, of the above concentrations. USAID/Jordan has developed a new Strategic Objective (SO) that is designed to "Increase Economic Opportunities for Jordanians." Activities under this SO directly support the Agency goal of encouraging "broad-based economic growth" by expanding access to financial services, especially for micro- and small-entrepreneurs, and through more effective implementation of policy reforms that support market- oriented trade and investment. The major constraint affecting micro- and small-enterprise development in Jordan is a lack of access to sustainable financial services. Thus, USAID/Jordan's interventions in the microfinance area will focus on this concern. The major constraint affecting job creation for medium and large scale business involves a broader range of economic policy issues. In many instances, the concern is not so much for reformed economic policies (much of this work has been done). Rather, the concern is for the more effective implementation of the recently enacted, market-oriented policies, rules and regulations. Critical areas identified where improved implementation of policy reforms is needed include: customs, tax, business registration and licensing laws and procedures. There is also a need for improved laws regarding intellectual property rights, especially for patent and trademark laws which meet recognized international standards (there is a reformed copyright law). With respect to small- and micro-enterprise development, the key concern is to promote expanded, market-based credit and financial service programs that pay for themselves. Increased economic opportunity is the central theme around which the new Strategic Objective (SO) is built. A cross-cutting concern of the SO is enhanced economic opportunities for women, and the rural poor. The Strategic Objective will be achieved by increasing access to sustainable financial services and by more effective implementation of key policy reforms. As a result, a significant number of Jordanian firms, and some foreign firms, that are currently unwilling to invest or expand business operations in Jordan will be motivated to do so. Achieving increased economic opportunities for Jordanians will require showing significant results in three areas. First, the number of new businesses must be increased. Second, the number of micro- and small-entrepreneurs who move from NGO-supplied microcredit services to formal credit and savings services provided by commercial banks must be expanded. Third, the number of jobs created as a result of these achievements - -- and new investment incentives -- must increase. With respect to medium and large businesses, the key concern is to ensure that GOJ pronouncements about economic reform are effectively publicized and implemented. Please identify the extent to which your organization may be responsive to one -- or both -- of USAID/Jordan's requirements. Funding currently available is $5 million dollars for this fiscal year with the possibility of additional funding in out years. USAID's intention is to conduct full and open competition, be it for acquisition or assistance, with award(s) in August, 1997. (0084)

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