The CDP-1 had three funding components, which determined priority sectors or thematic areas, as follows:

1. Small Scale Community Initiatives (SSCI)

The geographical coverage for this component was mainly the urban and rural areas in high potential regions.  Priority Sectors within this component included:

• Health, i.e., rehabilitation, extension, water supply, sanitation and equipping of rural and urban health centres. Limited construction of new health centres would be considered where applicable; 
• Education, i.e., rehabilitation, extension, water supply, sanitation and equipping of primary schools.  Limited rehabilitative support in secondary schools would be considered where applicable;
• Water and Sanitation, i.e.,
  • in rural areas, rehabilitation of simple and technologically appropriate water supply systems, such as wells, bore-holes, dams, etc.; and
  • in urban areas, rehabilitation and expansion of community based water supply systems;
• Economic Infrastructure, i.e.,
  • in rural areas, small community feeder roads rehabilitation, rural bridges and crossings, small markets, rehabilitation and expansion of community based irrigation systems, community based livestock handling/ marketing and veterinary systems; and
  • in urban areas, market rehabilitation and construction, waste disposal and recycling, and small peri-urban road rehabilitation;
• Environmental Conservation, i.e., community soil conservation efforts, renewable energy sources, tree nurseries and reforestation; and
• Basic Facilities, i.e., support of displaced persons in accordance with the 1996 SDD paper.

2. ASAL Community Initiatives (ASALCI)

The geographical coverage for this component was low potential regions designated as ASAL areas.  The priority sectors under this component included:

• Water Supply, i.e., rainwater harvesting structures, well rehabilitation and protection, water troughs, water tanks, hand pumps, small dam rehabilitation and di-silting, borehole rehabilitation, and limited sinking of new boreholes;
• Livestock and Animal Health, i.e., marketing infrastructures, holding grounds, animal traction, village marketing and auction yards, livestock handling facilities and community based animal drug stores; and
• Environmental Protection, i.e., reforestation and tree nurseries.

3. Community Wildlife Initiatives (CWI)

Activities under this component targeted communities caught up in the bio-diversity/human conflict wrangle.  Priority activities included:

• Social development Component, i.e., basic social services in education, health, water supply, sanitation and basic economic infrastructure with tangible links to wildlife and natural resource conservation; and
• Micro Enterprise Component, i.e., focusing on tourism related activities, consumptive wildlife utilisation (such as game ranching and farming) and other wildlife related services and facilities.