REPUBLIC OF RWANDA
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE LOCAL ADMINISTRATIVE ENTITIES DEVELOPMENT AGENCY
AND
THE DISTRICT OF GICUMBI
FOR MANAGEMENT OF THE VISION 2020 UMURENGE PROGRAMME FINANCIAL SERVICES FUND
MEMORANDUM OF UNDERSTANDING
Pursuant to the Law Nº62/2013 of 27/08/2013 establishing the Local Administrative Entities Development Agency (LODA) and determining its mission and functioning especially in article 3;
Pursuant to the Law Nº 87/2013 of 11/09/2013determining the Organization and functioning of decentralized administrative entities especially in its articles 125.4°,9° and15°; 130.11°and 15° and 132.15°;
Pursuant to the Presidential Order N°57/01 of 15/10/2006 determining the structure and functioning of Village, Cell and Sector especially in its article 55;
Pursuant to the Cabinet decision dated 29th July 2014 regarding the implementation of VUP Financial Services in partnership with Umurenge SACCO.
Knowing that thepartnership of VUP financial services managementaims at efficient and sustainable reduction of extreme poverty within the framework of “Economic Development Poverty Reduction Strategy (EDPRS)”
The Local Administrative Entities Development Agency hereinafter referred to as “LODA”
And
The District of Gicumbi Hereinafter referred to as “The District”
willing to enter into partnership for the effective management of funds provided under the Financial Services component of the Vision 2020 Umurenge Programme (hereinafter referred to as VUP)
HERE BY AGREE AS FOLLOWS:
CHAPTER ONE: GENERAL PROVISIONS
Article One: The purpose of this MoU
The purpose of thisMoU is to establish arrangements for effective management of VUP Financial services component.
CHAPTER TWO: ROLES AND RESPONSIBILITIES
Article 2: Roles and responsibilities of LODA
LODA will undertake the following tasks:
A.Planning and budgeting
Prepare medium term and annual plans for the Financial Services component of VUP and the loan guarantee fund, on a sector/District basis,
Advise/inform Districts of the budget as detailed in the guidelines;
B.Loan Management
Pay the Collateral fees for loan guarantees issued by BDF for the FS loan applicant unable to find guarantees to secure their loans;
C.Capacity Building
Coordinate the delivery of Financial Literacy training to the community members;
Work with stakeholders to synergize advisory support activities to local government;
Coordinate with the District to identify capacity building needs;
D.Oversight
Provide Strategic direction of the Financial Services Component in conjunction with concerned institutions;
High level monitoring Implementation of the Financial Services Component, follow up on identified common issues discovered in several Districts;
Loan guarantee fund performance monitoring, based on information provided by BDF and the Districts
Prepare program reports based on information supplied by the Districts on a quarterly basis;
Article 3: Roles and responsibilities of the District
The District through Sector will undertake the following tasks:
A Loan Application
A.
To Facilitate in the identification and selection of loan applicants through Sector and Cell authorities.
B.Loan Approval
To manage through Sector Executive secretary the Sector Loan Committee
C.Loan Management
To TransferVUP financial servicesbudgeted fundsto Revolving Fund managed by a licensed UmurengeSACCO;
To Assist, when requested or deemed necessary, the Umurenge SACCO in loan recovery through Sector, Cell authorities;
D.Capacity Building
To identifypotential resource persons for capacity building by the concerned stakeholders;
Participate in capacity building activities to support the FS partnership.
E.Oversight
The District is responsible for Umurenge SACCO implementation oversight under this partnership.
Undertake monthly Monitoring and evaluation on the implementation of VUP Financial Services component in all active Sectors within the District.
F.Reporting
Prepare and send a situational and quarterly consolidatedReport on the implementation of VUP financial services fund to LODA.
CHAPTER 3: ELIGIBLE FINANCIAL SERVICES BENEFIACIARIES
Article 4: Eligible Financial Services beneficiaries
Loans will only be available to beneficiaries who comply with the eligibility requirements of the Financial Services component of VUP as set out in the Guidelines.
CHAPTER 4 MONITORING AND REPORTING
Article 5: Monitoring and Reporting
The District and the Umurenge SACCO will monitor and report according to the provisions of the Guidelines.
CHAPTER 5: TRANSITIONAL AND FINAL PROVISIONS
Article 6: Property of the Government
- The Financial Services Funds managed under Umurenge SACCO is the property of the Government of the Republic of Rwanda.
- If Umurenge SACCO loses its license the balance on the revolving fund should be repaid to the District to be reutilized in the same administrative Sector
- All subsequent repayments of financial services loans should be transferred to the District also even after the termination of the agreement.
Article 7: Amendment
Proposed amendment to this MoU may be initiated by either party, and shall enter into force upon signature thereto by both parties.
Article 8: Good faith
The Parties undertake to act in good faith in accordance with reciprocal rights under this MoU and to take all reasonable steps to ensure the objectives of this MoU.
Article 9: Disputes
If any dispute arises relating to this MoU and parties fails to find an amicable solution between them, the Ministry in charge of Local Government and the Ministry of Finance and Economic Planning shall come together to recommend a joint solution to the dispute.
Article 10: Language
The drafting language of this MoU is English
Article 11: Coming into force
This MoU shall come into force on the date of its signature by all parties.
Done at Gicumbi on ………/………./2015
For Umurenge SACCO For The District
BYIRINGIRO Fidèle
Executive Secretary of
Gicumbi District
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