Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 4838 Public Disclosure Authorized PROJECT COMPLETION REPORT ETHIOPIA SECOND WOLAITA AGRICULTURAL DEVELOPMENT PROJECT CREDIT 486-ET December 19, 1983 Public Disclosure Authorized Eastern Africa Public Disclosure Authorized Regional Office This document has a restricted distribution and may he used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Name of Currency Ethiopian Birr Year: Appraisal US 1 = 2.07 Birr Intervening US$ 1 = 2.07 Birr Completion US$ 1 = 2.07 Birr WEIGHTS AND MEASURES (Metric System) 1 hectare (ha) = 2.47 acres (ac) I acre 0.405 ha 1 Kilogram (kg) 2.2 pounds (lb) 1 qUilltdl 100 kg ABBREVIATIONS AI = Artificial Insemination AIDB = Agricultural and Industrial Developmnent Bank AIMS = Agricultural Inputs Marketing Service AMC = Agricultural Marketing Corporation CBD = Coffee Berry Disease CMC = Cooperative Marketing Center CPSC = Central Planning Supreme Council lCA - Development Creelit Agreement EPID = Extension and Project Implementation Departmer.t FY = Fiscal Year (Ethiiopian April 8 - April 7) COE = Government of Ethiopia IDA - Initernational Development Association MOA = Ministry of Agriculture MP1' = MSinimum Package Program PA = Peasant Association MOF = Ministry of Finance PCR = Project Completion Report PEBCU = Planning Evaluation anid Budget Control Unit (in WADU) PPAR = Project Performance Audit Report RMEA = Regional Mission in Easterri Africa (of the tWorld Bank) SOE = Statement of Expenditure SLA = Subsidiary Loan Agreement T&V = Training and Visit (system of extension) WADP-I = Wolaita AgricuLltural Development Project I WADP-II = Wolaita Agricu-ltural Development Project II WADU = Wolaita Agricuiltural Development Unit WFCU - Wolamo (Wolaita) Farners Cooperative Union FOR OFFICIALUSE ONLY ETHIOPIA SSCOND WOLAITA AGRICULTURAL DEVELOPMENT PROJECT (CREDIT 486-ET) PROJECT COMPLETIONREPORT Table of Contents Page No. Preface ...... .. i Basic Data Sheet ................... ii Highlights .......... ............. iii I.~BACKGROUND ............................ 1 Agricultural Sector ........................ 1 Project Background .. ................... ........ 2 II. PROJECT FORMULATION ....................... 2 - Identification and Preparation . 2 - Objectives and Project Concept ............ 3 - Credit Appraisal, Negotiations and Effectiveness ............................. 3 - Project Components 4 III. IMPLEMENTATION ............ .. 6 - Annual Crop Production ... 6 - Coffee Production ........................... 7 - Livestock Production . .. 7 - Soil Conservation ................ *....... 8 - Infrastructure .. ..... 8 - Cooperatives.. 8 - Management. 8 - Studies ........... *. .... 6..* 9 IV. PROJECT COSTS, FINANCING, PROCUREMENT AND ACCOUNTING 10 - Local Funding .11 - IDA Funding . 12 -Procurement ............ 0...... .12 - Accounting ........................... 12 V. INSTITUTIONAL PERFORMANCE........ 13 - Performance of the Borrower ..................... 13 - Project Management and Staffing ........... 13 - Cooperative Development and Credit .... ..........15 - Infrastructural Development ..... ................16 -- Road Maintenance ...... ...............................16 - Settlement Schemes ...o........................ * 16 - Accounts and Audits .. 17 This document has a restricteddistribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Content Page No. VI. PROJECT BENEFITS, FINANCIAL AND ECONOMIC ANALYSIS.... 17 - Evaluation ................ .. ,. * 17 - A-nnual Cropo ......... 18 - Coffee **. *. .a.* . .*,***. * .*I*...... *. 19 - Livestock ................... ......... 19 - Soil Conservation .... ... ... 20 - Non-quantifiable Benefits ..... 20 - Management . ...*., .... .. ... .. .. ... ..... ... ... O. *. 21. - Financial Analysis ... ....... 21 - Economic Analysis ..................... ........ .. 23 VII. BANK PERFORMANCE ....................... ........... 24 - Identification and Appraisal ..................... 24 - Project Supervisions ................ ............ 26 - Performance of Consultants ....................... 27 Viii. CONCLUSIONS . ......... 27 ANNEXES Annex 1 Key Indicators of Project Implementation and Performance Annex 2 Calculations of Agricultural Impact and Financial Analysis Annex 3 Disbursements Annex 4 Performance Covenants Table 1 Implementation Schedule Map IBRD 10951 First Project Area and Existing Roads ) )Maps pre- Map IBRD 10952 Farming Zones and Administration Boundaries)pared at )appraisal Map IBRD 10953 Prepared Roads and Market Centers ) - i - ETHIOPIA SECOND WOLAITA AGRICULTURAL DEVELOPMENT PROJECT (CREDIT 486-ET) PROJECT COMPLETION REPORT PREFACE This is the Project Completion Report (PCR) for the Second Wolaita Agricultural Development Project in Ethiopia, for which Credit 486-ET was approved in June 1974 for the sum of US$12.0 million. The Credit closing date was extended from June 30, 1980 to December 31, 1981 hut not beyond. A final disbursement was made on December 10, 1982 and a balance of US$379,585 was cancelled effective that date. The PCR was prepared by a Project Officer in the Bank's Regional Mission in Eastern Africa (RMEA) and a consultant. The PCR is based on the Government's Project Completion Report for the Project and on a review of all relevant reports, correspondence and project documents. Government's PCR was the work of an external consultant who visited the Project area and Addis Ababa for about six weeks. Available Bank-staff previously associated with project supervision offered their comments, and additional comments from the Northern Agriculture Division of the Eastern Africa Regional Projects Department were incorporated in the final report, submitted to OED on August 31, 1983. The assistance provided by the Government of Ethiopia and that of project staff in Soddo is gratefully acknowledged. The project was not selected for audit by OED and the PCR was sent to the Borrower on October 3, 1983 for comments; however, none were received. - ii. - SCO3ND iWILAITA AGRICUJ.tRAL. DVLOaPHENt PfOOJECT (CoRDII 486-f?) P7kloJC omoHPiRiIOb REPORT BASIC DATA SHeET tfiY PKIBC _A Appratiel ACtL or Acteal es 2 EApecta'Cion currelnt CEiuats of AppraisaL Estimte1 Total Project Cost (US) million) 17.3 17.9 V 103X Credit Acournt (1S) tellion) 12.0 12.0 1002 Datc Phyaiol Components C*ompleted 6/g0 Incooplete it Proportion Completsd by b.ove dote (2) 1000 9b% economic Rate of WeLrtrp (2) 17t Financial Porforesnco toatitotisnql Pe.f-saae _ Unsatiafsotcry 4/ PROJSCT DAEYs- Or igissl Plan Reviinoes Actal I Firat Mention in Pile. or Timetable Follno na Project rovernmentf' Application Follov-on Project Negotiattion, t-10/6/74 0 8-13/6/74 Board Approvv1 25/6J74 0 25/b/74 Credit Aftrereont Date 2S/6/74 0 26/6/74 lfectiv-oeno Dote ./ 30/9174 5 4/6/7S Closing D,e. 30/6/SO I 31/12/81 CVMULiATIV' DIISBUSEeNTS- FY75 FY76 PY71 fY78 IY79 FPYO F'Y81 FY82 FY83 Appraisal Rstiuste (Us0$ nillion) 1 4 3.8 5.3 7.3 9. 7 12.0 - - - Attual (US$ willion) - 1.0 2.2 4.2 5.7 6.8 9.0 9.8 11 .6 Actual as Percentage of Eatineate - 26 42 55 59 57 75 82 97 Oijbersed as ot 10/12/82) USi1 .62 million Cancelled ian at 10/12/82) Us$0.38 toillion 115510N DATA Sent Month/ No. of Day. in Specoiral iono PerforaAnce Types or Item by Year Fersons Fi.ld Seprpacnted 6/ Bating 7/ Trend _/ Problems 9/ Identiifcation - -OS/72 lo/ Preparation 1973 _- _ _ _ _ Appraisal HQ BSIIlf 3 4 27 S,n,e,f - - - Total 27 Pre-cffeCti,eness II/ RMEA 11/74 1 4 a 3 - F,P Soper..si.un I RMEA 05175 1 tO e 2 2 M,F,O Soperv{aio I I RM4EA 11/75 2 S * i 2 1 H,PFO S.parvi.i.n III R1WA 06/76 Ro infoemation S.perviio YITV IWEA 12/76 1 8 a 2 3 M,F,P OSperviaion V ItMEA 05177 1 6 a 2 2 M4,p 3oporvialos VI RMEA 01/78 2 a *,e 2 1 M,T.F Supervisio VII 1vMEA 06/78 2 10 e,2 3 M,T,P Supervision VIII RIEA OZ/79 3 5 e,a,e 2 2 iMT Supervision IX RM'dA 11/79 1 5 * 2 I P,T Supervision X ilMEA 07/80 2 5 e,. 2 1 MNT Supervision XI OiUEA 02181 1 9 a 2 3 M,T,F Sopervi.ioe XII U4MEA 11/81 I 5 a 2 3 M,T,F Total DO Techoical/Other 4ioaioes Acountets and Audito ItMEA 07/81 1 5 Accesous and Auditv RHEA 11/81 1 2 PIR 12/ iWEA 12/78 2 4 PIR 3MBEA 11/79 1 5 OTHER PROJEiCT DAIrA Borr.ser Provisinoal Wi'itary Covernoment of Ethiopia Execotiog Age0cy 13/ Wolaita Agricaltural Developeost Unit Fiscal Year of Borroner July 7 - July 6 Preceding Projoct N.o.. Wolseno Agrscuitur.l D-enlepopsot Project Laon Nursber 169-ST Amount (USossillior) 3.5 Loan Agreement Dtet 11/26/69 Fol Iov-on Project L4 / None 1/ Estimated Direct Costs - See Chapter IV. 2/ Some water supplien remain to be cempleted and crop/Iivestock production targets ent achieved. 3/ Inadequote finaneill recording. management ond control. un .tisfsctory accounta and delays in audits. 4/ Higb curnover of senior and middle level staff and key StL! ' vacanciCe; inadeq.ate support and direction fron Ministry ol AgrlceIturc 5/ There ocre eccne.ionmt of offectiveo.on dOta, producing a delay of 9 months fr.o original. 6/ a - Agnlctslturesiisctnonomiet; e 'ageioltor1l f - linansi aByat; tl i - engineer. 7/ 1 -problen free or minor problems; 2 - moderate problems; 3 - major problems. 8/ 1 itmproving; 2 - atatlonary; 3 ' deteriorating. 9/ F -Firncial; P = Political; 0 other (in this case taff'rg probleno related to txibal unrest), N - Managerial; T - Technical . l0/ NuringT i Pervision of preceding