6Iual ,S Unclassified AGENCY for INTERNATIONAL DEVELOPMENT 1
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JANMASSI7IED - UNITED STATES INTERNATIONAL DEVELOPMENT COOPERATION AGENCY AGENCY FOR INTERNATIONAL DEVELOPMENT Washington,. D. C. 20523 PANAM4A PROJECT PAPER INTEGRATED RURAL DEVELOPMENT - SONA 'Loan Number:525-T-046 T T /-T Project Number:525-0186 6iual ,s UNcLASSIFIED AGENCY FOR INTERNATIONAL DEVELOPMENT 1. TRANSACTION CODE DOCUMENT PROJECT DATA SHEET AC C AC- -Add Change13 Amendment Number CODE 2. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _D -Delete 2. COUNTRY/ENTITY 3. PROJECT NUMBER Panama I525-0186 - 4. BUREAU/OFFICE 5.PROJECT TITLE (maximum 40 characters) LAC __0 _ "integrated Rural Development - Sona 6. PROJECT ASSISTANCE COMPLETION DATE (PACD) 7. ESTIMATED DATE OF OBLIGATION (Under 'B' below, enter 1, Z 3, or4) 1017131118161 A.Intil y 7 8J B.Quantczj c.m FilY LLIB 8.COSTS ($000 OR EQUI'VALENT $1 = J A. FUNDING SOURCE FIRST FY 7 B. FX -UFE OF PROJECT C. L/C D. Total L.FX F. LIC G. Total AID Appropriated Total (Grant) ( )( )( )( ) ____ (_ (Loan) (2,500 ) ( 7,800 ) (9,700 ) (2,500 ) (7.800 ) (9.700 Other 11. U.S. 12. Host Country 9,996 9,996 9,996 9.996 Other Donor(s) TOTAL S _ 2,500 17,176 19,696 2.500 17.176 19.696 9. SCHEDULE OF AID FUNDING (SOOO) A.BPR.R A Y C. PRIMARY A. APPR PTRIMARY TEC. E M U TA P O E CODE D. OBLIGATIONS TO DATE F.AMOUNT APPROVED F. LIFE OF PROJECT PRIATN PURPOSE T . ETHIS CODE ACTION 1.Gra 42. Loan1. Grant 2.Loan 1.Grant 2.Loan 1.Grant 2. Loan (1) FN 200 230 9,700 (2) 9,700 (4) TOTALS --f- 9,700 9,700 10. SECONDARY TECHNICAL CODES (maximum!I codes of 3 positionsI each) I I IL SECONDARY PURPOSE CODE 12. SPECIAL CONCERNS CODES (maximum 7codes of 4positions each) A.Cd BS I R/AG III B.Amount 2 000 500 13. PROJECT PURPOSE (maximum 480 characters) To create an institutional capacity within the Government of Panama to plan " and implement integrated rural development projects and establish the first integrated rural development project in the District of Sona. 14. SCHEDULED EVALUATIONS 15. SOURCE/ORIGIN OF GOODS AND SERVICES ItrmMMY8[ 1 M]Y81 1JM M 1 YY 1 o InterimY 10181816 FMa Io I82 08811l 941 Lown 0 Other(Specif) _____ 16. AMENDMENTS/NATURE OF CHANGE PROPOSED (This ispae I of a LLYpage PP Amendment) Reprogramming of loan funds to coincide with moving project impact area from the District of Tonosi to the District of Sena. Some program components were changed. signature1.8_4DATE '01'0 DOCUMENT RECEIVED 17. APPROVED IN AID/W, OR FOR AID/Wi DOCU. MENTS, DATE OF DISTRIBUTION BY Til-Ms D rDaeSge __________ DD Y M IDD YY 1 AID 1330.4 (8-79) ] 61 1 8 1 1 1 . I __ I INTEGRATED RURAL DEVELOPMENT PROJECT PAPER TABLE OF CONTENTS Face Sheet Page PART I - Summary and Recommendations i A. Recommendations i B. Project Summary i C. Summary Financial Plan iv D. Project Redesign Group v PART II - Project Background 1 A. Lessons Learned From Tonosi 1 1. The Design of Tonosi 1 2. Lack of Participation 2 3. Land Redistribution 2 4. Interinstitutional Conflict 3 B. Sona: Project Setting and Profile of Beneficiaries 3 1. Natural Resources of the Area 3 2. Human Resources of the Area 5 3. Land Tenure 6 4. Farming Systems 7 5. Infrastructure 8 6. Profile of Beneficiaries 8 PART III- Project Description 11 A. Planning and Administration i 1. Institutional Structure ii 2. Structure for Beneficiary Participation 14 3. Information System 16 4. Monitoring Project Activities 18 5. Evaluation of Project Activities ."18 B. Agricultural Development 19 1. Farm Services 19 a.) Constraints 19 b.) GOP Response 19 1. T.A. Model 19 2. Training 22 3. Support Services 23 4. Applied Research/Field Demonstrations 23 2. Credit 24 a.) The Agricultural Development Bank (BDA) 24 b.) BDA - Sona 24 c.) BDA - Sona - IRD 25 d.) Agricultural Credit 26 3. Agro-Industry 29 a.) Constraints 29 b.) GOP Response 29 c.) Institution Building 30 4. Rural Roads 32 Page C. Social Services 33 1. Health 33 a.) Cons traints 33 b.) GOP Response 33 1. Environmental Sanitation Activities 34 2. Health Care Activities 34 2. Education 35 a.)constraints 35 b.) GOP Response 35 1, Construction 35 2. Literacy 36 3. Non-Formal Education 36 3. Housing 37 a. Background 37 L. Description 37 2. Major Constraints 37 3. GOP Response 37 b.) Component Description 38 1. Objectives 38 2. Activity Criteria 38 3. Housing Solutions 39 4. Support Activities 41 5. Component Inputs 41 6. Beneficiaries 41 PART IV- Project Analyses 42 A. Social Soundness Analysis 42 B. Technical Feasibility of Agricultural Component 44 C. Technical Feasibility of Livestock Component 46 D. Economic Analysis 47 PART V - Annexes A. Issues Cable B. Draft Authorization C. (Lessons Lear-ed from Tonosi) moved to project background D. Log Frame E. Evaluation and Implementation Plan F. Financial Plan by Component G. Economic Analysis H. Social Soundness Analysis I. Technical Analysis: Agriculture Component J. Technical Analysis: Livestock/Forestry Component K. Technical Analysis: Rural Roads L. Initial Environmental Examination UNITED sr;" INTERNATION AL DFV'.LCP1AEJT CC,- "?ATION .GENCY AG;:.:'CY FOR IN"TERNATI')JAL DEVELk, PMEfT VASHI'GTON DC 21,T23 PROJECT AUTHORIZATION AND REQ.UEST FOR ALLOTMENT OF FUNDS (Amendment No. I) Name of Country: Panama Name of Project: Integrated Rural Development Number of Project: 525-0186 1. Pursuant to Section 103 of the Foreign Assistance Act of 1961, as amended, the Integrated Rural Development project for Panama was authorized in a Project Autho rization and Request for Allotment of Funds ("PAF11) dated September 28, 1977. The PAF is hereby amended as follows: a. Section 2.c. of the PAF is hereby deleted in its entirety and the following new section 2.c. is hereby added to the PAF: "c. Except as otherwise agreed in writing by A.I.D., prior to the issuance of any commitment documents or any disbursements under the Loan other than for technical assistance, the Cooperating Country shall furnish to A.I.D. in form and substance satisfactory to A.I.D.: (i) Evidence of the establishment of the National Coordination Office in the M_;.nistr," of Planning, and that key personnel have been assigned to the Office. (ii) Evidence of the establishment of the National Executive Committee, composed of the Ministers of Planning and Political Economy, Agricultural Development, Education, Health and Public Works and Housing, which Committee shall function to provide overall integrated rural development strategy and policy. (iii) Evidence of the establishment of a local coordination office in Sona under the M,4.inistry of Planning, and that key personnel have been assigned to the office." b. Section 2.d. of the PAF is hereby deleted in its entirety, and the folloving new Section 2.d. is hereby added to the PAF: "d. Except as otherwise agreed in writing by A.I.D., prior to the issuance of any commitment documents or any disbursements under the Loan to finance agricultural or livestock credit, the Cooperating Country shall furnish to A.I.D., in form and substance satisfactory to A.I.D.: (i) Evidence of the establishment of a rotating credit fund in the Ag ricultural Development Bank, operating regulations for such fund and evidence that sufficient capital is in the rotating credit fund to initiate credit operations. ,,IVit'.,OF'w'• BEST tV, (ii) An implementation plan for the Agricultural and Livestock Credit Comoonent and for the Farm Services Component which details the time phased development of each Component, and explains the operational relationship between them. (iii) Evidence of the establishment of criteria and procedures to insure that credit for cattle and fencing will be provided only to farmers who will undertake or have undertaken pasture improve ment." c. Section 2.e. of the PAF is hereby deleted in its entirety, and the following new Section 2.e. is hereby added to the PAF: "e. Except as otherwise agreed in writing by A.I.D., prior to the issuance of any commitment documents or disbursements under the Loan to finance the Special Fund For Agribusiness Feasibility Studies and Credit, the Cooperating Country shall furnish to A.I.D., in form and substance satis factory to A.I.D., a model scope of work for the agribusiness feasibility studies which shall include an examination of potential environmental impacts, a study of alternative ownership structures and a study of alternative sources of financing." d. Section 2.f. of the PAF is hereby deleted in its entirety and the following new Section 2.f. is hereby added to the PAF: "f. The Cooperating Country shall covenant that, unless otherwise agreed in writing by A.I.D., during the life of the Project all reflows of Project credit funds will be used in the Sona area for the same purpcses for which the credit funds were originally made available." e. Section 2.h. of the PAF is hereby deleted in its entirety. f. Section 2.i. of the PAF is hereby re-lettered 2.h. and Section 2.j. is hereby re-lettered Section 2.i. 2. Except as expressly amended or modified hereby, the PAP remains in full force and effect. Acting Assistant Administrator Bureau for Latin Am'erica and the CafribfIean Date Clearances: ,/ GC/LAC:BVeret: .! dqte )./w LAC/CEN:1mLuken: 1;,, datei%J LAC/DR:MBrown: date GC/LAC:D A,3 Jams:jlo:7/16/8:x29183 Summary f ,;: ;ondatioln A. ReloLmmendations' The proposed project was designed by a joint GOP-AID design team with the assistance of private consulting firms and International Research Institutions (CATIE and IICA).