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Petrocaribe Development Fund
FUNDING REQUEST
Funds in the amount of $200 million were granted to the JSIF by the Petro Caribe Development Fund (PDF) in 2011. A MOU was signed on August 2, 2011, intended to govern a relationship between the Parties for an initial period of one year, subject to any change in policy directives given to any of the Parties by their respective Board of Directors. In the event of any change in policy or direction, the Parties shall review this MOU and amend where necessary or discontinue/terminate the MOU.
In addition to the $200 million initially granted, the JSIF received an additional commitment from the PDF of an additional $200 million to construct 26 bathroom facilities in schools across the island. A supplemental MOU was also signed on May 1, 2012 which authorized the JSIF to execute small grants and special Projects on behalf of the PDF.
In accordance with the existing Memorandum of Understanding between the PetroCaribe Development Fund (PCDF) and JSIF, a grant award (Loan Agreement # 2), was approved on 21 February 2014, in the amount of Thirty Five Million Jamaican Dollars (J$35,000,000.00); for the implementation of the PCDF/JSIF Schools Sanitation Project. This funding is awarded for the construction of eight-seater bathroom blocks in five (5) rural primary/all-age schools across the island.
The grant award is consistent with the PCDF’s targeting of initiatives that seek to promote community development and employment opportunities.
This is under the broad area of socio-economic development of the poor and vulnerable groups and their communities in order to transform their lives; improve the physical and social infrastructure of their communities, and position them to be productive citizens.
On 04 July 2014, an additional grant award (Loan Agreement # 3) was approved by the Board of Management of the PCDF, in the amount of One Hundred and Twenty Five Million Jamaican Dollars (J$125,000,000.00); for the construction of eight-seater bathroom blocks in seventeen (17) primary/all-age schools in rural communities as Phase 3 of the PDF/JSIF Schools Sanitation Project. This phase of the PDF is scheduled to end in December, 2017.
PROJECT DESCRIPTION
The Petro Caribe Development Fund grant is used to fund/support the following:
• community development and employment opportunities within communities
• economic empowerment and expansion of opportunities for the poor to attain sustainable livelihoods
• Initiatives aimed at the development of human capital – training, educational opportunities and self-development
• Rural development projects, such as small scale agriculture projects aimed at supporting innovative farming methods and promoting food sufficiency
• Promotion of entrepreneurship and capacity building for micro and small businesses, and for the institutions which primarily serve the poor.
APPROACH
The JSIF uses various methods for project identification, namely: Pre-selection; Demand-Driven and Call for Proposal approach. For the Demand-Driven method communities are selected based on indicators of poverty, governmental and in some cases funder priorities. The latter approach allows communities to organize themselves and identify their greatest needs and submit a request to the JSIF.
The funds that have been provided to the JSIF for the first grant year were applied to projects using the pre-selection approach. The funds were used for the construction of 100 sanitation units within five communities – (Fletcher’s Land, Denham Town, Hannah Town, Tivoli Gardens, Central Kingston, Rae Town and Allman Town). In addition to the provision of sanitation systems, a project was proposed to the PDF to assist residents in these communities, with Civil Documentation, Life Skills, Personal Economic Development, Job Placement and Entrepreneurship Development.
A list of project types was also proposed to the PDF by the JSIF, which demanded immediate assistance. These projects have not been approved by the PDF but were identified using the demand-driven approach.
PETROCARIBE DEVELOPMENT FUND SUB-PROJECTS
- Basic Infrastructure – The PDF has focused primarily on developing basic infrastructure such as schools, water supply systems and roads. However, most of the project's investment has focused on sanitation facilities for both communities and schools, which do not have any such infrastructure, or the existing units are unfit for human use.
- Supportive Services – These are services which strengthen organizations or individuals by building their capacity to exist in their surroundings.
- Small Grants/Special Projects – These are grant funds provided by the PDF to directly assist grass roots organizations in building organizational capacity.