BASIS OF PROJECT DESIGN
(Mikrofin)
The CERD Project is classified primarily as poverty reduction and secondary as human resources development under ADB’s classification system of projects. It has been considered as one of the major internationally funded projects under the Indonesian government’s IDT program , directed at reducing poverty through rural infrastructure development and microfinance, supported by ADB, World Bank, and JBIC. Therefore, the project has been designed with the concepts adapted from previous projects such as (i) Government of Japan-financed Rural Areas Infrastructure Development Project, (ii) World Bank’s two village infrastructure projects (VIPs), (iii) World Bank’s Kecamatan Development Project (KDP), (iv) ADB’s Community and Local Government Support Sector Development Program, (v) ADB’s Micro-credit Project (MCP) and Rural Income Generation Project (RIGP).
Based on the block grant approach generally taken by these projects, the communities or villages identified the needed rural infrastructure such as roads, water supply facilities, etc. to be built, which they constructed themselves, assisted by project field engineers or NGO facilitators. Labor from the participating villages was utilized, which generated employment and incomes for the villagers, especially the poor.
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