Technical Cooperation with the Caixa Economica Federal

Project BRA/99/027 -- Start Year: 1999; Approved Budget: US453,308; End Year: 2002; Implementing Agent: NEX (National Execution Related Projects); Executing Agent: Caixa Economica Federal.

Project background and rationale: In The Caixa Economica Federal, a State-owned bank which was created in the 70s to operate mainly in the field of housing financing, has progressively extended its competencies to include today the following functions, in decreasing order of importance:
• Human development (sanitation, infrastructure and housing);
• Transfer of benefits from the Federal Government to the citizens and to the different Federal Bodies;
• The provision of financial services to physical persons and small, medium and large enterprises.

The partnership recently established with UNDP is strategic for both institutions, since it provides a powerful ally to UNDP for the implementation of poverty eradication policies, while for Caixa Economica Federal, the technical cooperation programme will play a catalytic role in promoting the integration and synergies required to implement the strategic planning proposal just concluded by the institution.

Project development goal: The Preparatory Assistance BRA/99/027 will set up the ground for the achievement of:

1. the conception and development of new instruments and tools to facilitate the implementation of the abovementioned objectives; and

1. the development of methodologies and concepts to increase the efficacy of CAIXA’s business, with emphasis being put on urban development.

Project immediate objectives and expected outputs: These two objectives are pursued through a comprehensive programme that comprises four elements:

1. To establish a microcredit system that allows micro and small enterprises, especially those operating in the informal area, to obtain access to financing.

2. To develop a new approach to urban development that integrates the actions of housing, sanitation and infrastructure in a new conception of local development that involves the local actors.

3. To establish a database system on Human Development Index institutional strengthening of the Caixa Economica Federal.

Contact details: Caixa Economica Federal SBS Quadra 4, lotes 3/4, 21^ andar 70.070-140 Brasilia, D.F. Brazil