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D. Financial Plan and Arrangements
1. General
The total lite of project cost for NERAD is $16.0
million. This total does not include costs for land or
labor contributed by villagers for the various subcomponents
nor does it include a cost for many RTG personnel who will
be indirectly associated with the Project in their regular
jobs. Despite these omissions, the expected Thai contribution
to the Project, at $6.0 million, represents about 40
percent of total costs. It is proposed that AID provide a
loan of $6.3 million and a grant of $3.7 million to finance
the remaining costs of the Project.
2. Financial Contributions
a. AID Contribution
Figure III-E-I shows the Pro3ect components
divided into their respective input packages and proposed
funding sources, and Figur: III-D-2 shows the summary annual
budget. AID's contribution is attributed to foreign exchange
costs (i.e., expatriate consultants and U.S. vehicles), local
capital costs (construction and associated engineering
services, equipment purchases), and other interventions that
represent important innovations under the Project (some
survey and planning activities, training, farmer rewards,
farmer seminars/excursions, composts subsidies, new agricultural
support services, demonstrations and research, economic
studies support). The AID assistance will also be used to
provide necessary funds for per diem and travel for RTG
support personnel and to provide production inputs, and will
be used to hire local consultants to support the Project.
AID grant funds are proposed for the technical
assistance component, U.S. vehicles, demonstration/research
activities, economic studies support, evaluation activities.
These activities are proposed for grant funding because they
either do not have easily quantifiable benefits, tend to be
high risk or high cost components, or (in the case of
vehicles) will be restricted to U.S. source/orlyin.