International Development Grant

Private Sector Development for the Department of Sololá

Project Number: CA-3-A032311002

Status: Closed

Country/Region:

Guatemala 100.00%

Maximum Contribution: $10,119,231.00

Start Date: October 29, 2008

End Date: December 31, 2015

Duration: 7.2 years

Project Description

The purpose of this project is to improve living conditions and to increase the average income of 30 000 families in the Department of Sololá one of Guatemala's poorest indigenous regions. The project has three main objectives: (i) It aims to build the institutional capacities of local government authorities. The goal is to enable authorities to develop and implement economic development plans as well as public and private investment strategies; (ii) The project aims to increase the production and productivity of coffee fruit and vegetable producers and to develop their marketing strategy. The goal is to ensure and diversify annual production and expand the producers' national and international markets; and (iii) The project aims to professionalize local technical and financial institutions and to equip them with technical and financial support programs for micro businesses and small businesses in the Department of Sololá.

Progress & Results Achieved

Results achieved as of the project end include: (1) Improved efficiency of agricultural chains: (i) 2 888 producers (1332 coffee producers and 1556 horticulture producers) have improved their coffee and vegetable production through the use of better techniques resulting in an increase of 87% in productivity for coffee and 25% for horticulture; producers who have introduced parcels of vegetables within their coffee plantations have seen noticeable growth in additional income. (2) Public and private investment: (ii) the project leveraged $3 million in public-private investments in infrastructure for economic development; (iii) 2 municipalities have incorporated economic investments in their public development plans that are also integrating gender equality aspects; (iv) technical personnel were trained in economic development in 12 municipalities; (v) pre-investment studies for water treatment plants were conducted in three municipalities and technical and financial support was provided to the construction of a wholesaler market in Sololá municipality. (3) Tourism and job creation: (vi) the project contributed to a 15% growth in tourist numbers to Sololá; (vii) 18 organizations improved their capacity to develop a community-based network to provide essential services for tourists economically benefitting 344 persons; (vii) a total of 2075 people (56% of which are women) received training in tourism development through the Guatemalan Tourism Institute. (4) Business administration: (viii) 1 729 small entrepreneurs (83% women) were trained in such sectors as agriculture coffee vegetable honey textile handicraft and tourism of which 700 have received financial services for developing or growing their businesses resulting in 1 484 jobs created (above the target of 1000); (ix) a youth entrepreneurial system involving business planning access to credit skills training and coaching during the first months of business operations was implemented whereby 244

Key Information

Executing Agency:
Consortium SOCODEVI / CECI Universite of Sherbrooke

Reporting Organization:
Global Affairs Canada

Program:
NGM Americas

Last Modified:
September 19, 2025

Development Classifications

DAC Sector:

Food crop production 20%
Rural development 60%
Non-agricultural alternative development 20%

Aid Type: Donor country personnel

Collaboration: Bilateral

Finance Type: Aid grant excluding debt reorganisation

Selection Mechanism:
Pre-APP

Policy Markers
Level 1 Gender equality
Level 1 Participatory development and good governance
Major Funding (>$1M)
Budget Breakdown
2008-04-01 to 2009-03-31 $10,119,231 CAD
Geographic Information
000";Budget Type:Original;Start Date:2009-04-01;End Date:2010-03-31;Value Date:2008-10-29;Value:"$1
Reference ID: 600