PNPM Mandiri Revolving Loan Fund (RLF) - PNPM Support Facility

- Assessment of additional 187 urban RLFs begin (to be completed end-July)
26. Sub-component 1-B: Legal Review. A second major assessment has been launched to clarify the
ownership of the RLF capital and to determine the appropriate legal structure for RLFs based on a menu
of institutional options. The procurement process to select a legal firm to support this activity is in the
final stages. A part time international legal expert has been hired to support this activity.
27. Sub-component 1-C: Consulting Services for Capacity Building. Following the initial assessment,
the Project will develop and conduct a customized program of capacity building in the two provinces in
Java in order to restructure and improve performance of current RLF operations. In a second stage,
capacity building will be rolled out to off-Java and to PNPM Urban RLFs. Terms of Reference (TOR)
were developed for the assignment, RFP issued and procurement is in the final stages. Implementation is
expected to start in July 2011.
28. Sub-component 1-D: Implementation Support for RLF MIS. The Project will develop a robust
data recording and information system that captures transactional data of the groups and UPKs to help
improve the efficiency and effectiveness of RLF operations and provide data to PNPM stakeholders. This
is a critical activity, as the assessments underway now reveal that the RLF data is weak. Accurate and
transparent data will improve governance and increase opportunities for bank linkages with and
sustainability of the RLFs. TORs for the assignment were developed, RFP issued and procurement is in
the final stages. Implementation is expected to start in July 2011.
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