[{"bbox": [351, 77, 506, 104], "category": "Page-header", "text": "Project modality"}, {"bbox": [72, 118, 303, 144], "category": "Section-header", "text": "# Summary of the Action"}, {"bbox": [84, 150, 208, 173], "category": "Section-header", "text": "## SUMMARY"}, {"bbox": [84, 188, 1135, 241], "category": "Text", "text": "Proposed Action in the framework of the new approach to remaining MIP 2014-2020 development cooperation funds (EUR 33 M) in El Salvador to be implemented through indirect and direct management."}, {"bbox": [84, 253, 1135, 439], "category": "Text", "text": "The Commission Implementing Decision C(2020) 7429 of 22 October 2020 foresaw a €31 million budget support component added to the 2016 Decision C(2016)8379 of 13.12.2016 in order to support the Government with the immediate socioeconomic needs arising from the Covid-19 pandemic. The complementary measures package rose to €16.025 million, including the €4 million from the original decision C(2016)8379 of 13.12.2016; €10.025 million for a Women's Economic Empowerment component through Indirect Management with AECID and finally an additional €2 million for technical assistance to the Ministry of Finance, the Court of Auditors and to further the definition of a new Social Policy (Decision C(2020) 7429 of 22 October 2020)."}, {"bbox": [84, 451, 1135, 586], "category": "Text", "text": "The circumstances in El Salvador however deteriorated progressively since the adoption of the Decision in 2020 leading to a negative assessment on all budget support eligibility criteria. The assessment remains that it is highly unlikely that eligibility criteria will be fulfilled in the course of 2021. The allocation of additional funds toward a budget support component can therefore not be justified in light of this assessment, rendering the signature of a Financing Agreement impossible in the configuration proposed in 2020."}, {"bbox": [84, 596, 1135, 730], "category": "Text", "text": "In recognition that the viability to make use of the budget support instrument is currently not assured, while also maintaining the importance to safeguard the commitment of funds for El Salvador in light of the escalating needs in the country, this addendum consequently proposes to move the entire budget support package (€31million) and the additional €2 million for Technical Assistance under complementary measures from Decision C(2020) 7429 of 22 October 2020 to other implementation modalities through eight initiatives that are summarized as follows:"}, {"bbox": [84, 742, 395, 768], "category": "Section-header", "text": "### Component 1: Digital Economy"}, {"bbox": [121, 780, 1135, 865], "category": "List-item", "text": "* Digital Connectivity - Indirect management- Contribution Agreement with international organization, Member State organization/financial institution or, possibly, blending/guarantee implementation modality (EUR 6 M)"}, {"bbox": [84, 877, 1135, 985], "category": "Text", "text": "The objective is to increase the access of the citizens of El Salvador to broadband and increase its potential to provide the continuity of public services, in particular as regards educational, social and tourism facilities. Investment in digital infrastructure will focus also on fair and competitive procurement procedures and safeguards against corruption."}, {"bbox": [84, 996, 1135, 1154], "category": "Text", "text": "It contributes to addressing one of the critical issues hampering the country's economic and social growth, which has become more evident as the pandemic evolved. The action will be a part of the \"Digital Jobs\" TEI. The potential contribution to increasing productivity, job creation, diminish educational gaps, and enhanced economic opportunities fits the MIP 2014-2020 sector 2 criteria and, at the same time, creates a bridge to the new MIP. We would team up with our partners in a programme fully aligned with the MIP 2021-2027 priority area 1: digital transformation."}, {"bbox": [121, 1167, 1135, 1224], "category": "List-item", "text": "* Supporting the development of an innovative MICRO, SMALL AND MEDIUM SIZED ENTERPRISES (MSME) sector – Direct Management grant (EUR 3M)"}, {"bbox": [84, 1234, 1135, 1368], "category": "Text", "text": "The objective is to expand support services for Micro and Small Enterprises fostering digital transformation, strengthen industrial innovation, technological development, collaboration in competitive production chains and quality certification. The creative and artistic sector will be specifically targeted. This will complement existing services to MSMEs as foreseen in the government's Digital Agenda component on competitiveness. It will also form part of the TEI on digital jobs, as it will promote youth entrepreneurship to exploit digital opportunities."}, {"bbox": [84, 1458, 506, 1484], "category": "Section-header", "text": "### Component 2: Good Financial Governance"}, {"bbox": [121, 1495, 1135, 1550], "category": "List-item", "text": "* Good Financial Governance- Indirect Management- Contribution Agreement with a Member State Organisation (EUR 6 M)"}, {"bbox": [602, 1615, 629, 1639], "category": "Page-footer", "text": "[4]"}]