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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 13089 PERFORMANCE AUDIT REPORT REPUBLIC OF THE MALDIVES SECOND FISHERIES PROJECT (CREDIT 1320- MAL) Public Disclosure Authorized AND REPUBLIC OF YEMEN FISHERIES DEVELOPMENT PROJECT (CREDIT 1025-YAR) THIRD FISHERIES DEVELOPMENT PROJECT (CREDIT 1274-YDR) Public Disclosure Authorized MAY 27, 1994 Public Disclosure Authorized Operations Evaluation Department This document has a restricted distribution 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. ACRONYMS AND ABBREVIATIONS AE - Agriculture Economist AFESD - Arab Fund for Economic and Social Development CACB - Cooperative and Agricultural Credit Bank FAO/CP - Food and Agriculture Organization/Cooperative Program DANIDA - Danish International Development Agency DMP - Dhekunuge Masgathumuge Project DOF - Department of Fisheries EEC - European Economic Community FAO - Food and Agriculture Organization FMDC - Fisheries Manpower Development Center FPID - Fisheries Project Implementation Department FTPP - Felivaru Tuna Processing Plant GCDFR - General Corporation for Development of Fish Resources GOM - Government of Maldives GOY - Government of Yemen GRP - Glass Reinforced Plastic IDA - International Development Agency IFAD - International Fund for Agricultural Development KV - Kilovolt MENA - Middle East and North Africa Region MFW - Ministry of Fish Wealth MNC - Maldives Nippon Corporation MOA - Ministry of Agriculture MOF - Ministry of Fisheries MSY - Maximum Sustainable Yield NCFM - National Corporation for Fish Marketing OED - Operations Evaluation Department OPEC - Organization of Petroleum Exporting Countries PAR - Performance Audit Report PCFW - Public Corporation for Fish Wealth PCRs - Project Completion Reports PDRY - People's Democratic Republic of Yemen PIU - Project Implementation Unit PPAM - Project Performance Audit Memorandum ROY - Republic of Yemen SDR - Special Drawing Rights STO - State Trading Organization TA - Technical Assistance UNDP - United Nations Development Project GLOSSARY Demersal - Fish found near the bottom of the sea Dhoni - Traditional fishing boat, Maldives Houris - Traditional Yemeni fishing boats Mariculture - Salt water agriculture Masdhoani - Plural of masdhoni Masdhoni - Traditional boat for tuna fishing, Maldives Pelagic - Of the ocean surface on the open sea, as distinguished from coastal waters Sambuks - Traditional Yemeni fishing boats Skipjack - Tuna species, a major food source for Maldivian people FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Offte of Direator-Gwenal Opeation Evaluation May 27, 1994 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT Subject: Performance Audit Report on THE REPUBLIC OF THE MALDIVES - Second Fisheries Project (Cr.1320-MAL) THE REPUBLIC OF YEMEN - Fisheries Development Project (Cr.1025-YAR) and Third Fisheries Development Project (Cr. 1274-YDR) Attached is the Performance Audit Report on the Republic of the Maldives-Second Fisheries Project (Cr. 1320-MAL), and the Republic of Yemen-Fisheries Development Project (Cr. 1025-YAR) and Third Fisheries Development Project (Cr. 1274-YDR) prepared by the Operations Evaluation Department. Although implemented in different ecological conditions, these three projects provide implementation experience on how marketing and credit support to artisanal fishermen can be decentralized, and vessels and land facilities improved. The PAR confirms that the projects had satisfactory outcomes. Institutional achievements were substantial in the Maldives Second Fisheries and Yemen Third Fisheries, the two projects for which sustainability is likely. Fish production did increase in the three projects, and the PAR noted that improvements in marketing, credit, and mechanized vessels are more likely to succeed when the fishermen are involved and their concerns taken into account. Delays due to procurement and contracting complexities occurred in all cases soon after effectiveness, a problem which shows the need for training and supervision support on procurement issues at the beginning of implementation. The PAR supports the Bank 1982 Sector Policy Paper on Fishery Development, which calls for countries to monitor the supply of natural resources and regulate their use. The PAR confirms that IDA should systematically assess the Borrower's capacity to monitor natural resources at appraisal and during supervision, and should provide support in coordination with other development agencies as appropriate. Attachment This document has a restricted distribution 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. 护 产 FOR OFFICIAL USE ONLY PERFORMANCE AUDIT REPORT REPUBLIC OF THE MALDIVES Second Fisheries Project (Credit 1320-MAL) REPUBLIC OF YEMEN Fisheries Development Project (Credit 1025-YAR) Third Fisheries Development Project (Credit 1274-YDR) TABLE OF CONTENTS Page No. Preface ......... ... ... ... .. .. ... .... ... .... ................ i Basic D ata Sheets ................................................. iii Evaluation Summary ............................................... ix I.BACKGROUND ............................................... I A udit Context .............................................. I 11. THE PROJECTS .............................................. I A. Republic of the Maldives: Second Fisheries Project (Cr. 1320-MAL) ............ 1 Project Background ........................................... I Project D esign .............................................. 2 Project Implementation ......................................... 3 Project Results .............................................. 4 Evaluation Findings and Issues .................................... 6 B. Republic of Yemen: Fisheries Development Project (Cr. 1025-YAR) ............ 9 Project Background ........................................... 9 Project D esign .............................................. 9 Project Implementation ......................................... 10 Project Results .............................................. 11 Evaluation findings and Issues .................................... 12 C. Republic of Yemen: Third Fisheries Development Project (Cr. 1274-YDR) ........ 15 Project Background ........................................... 15 Project D esign .............................................. 15 Project Implementation ......................................... 16 Project Results .............................................. 16 Evaluation Findings and Issues .................................... 17 III. OVERALL FINDINGS AND ISSUES ................................. 20 Fisheries Resources ........................................... 20 Fisheries Project Administration ................................... 20 1 "This report was prepared by Josette Murphy (Task Manager) and C.E.Patrick Watson (Consultant), who audited the projects in July and August 1993. Carl& Sarmiento provided the administrative support.' This document has a restricted distribution and may be official duties. Its contents may not otherwise be disclosedused without by recipients World onlyBank in authorization. the performance ofole'r Fish Marketing . ............................................. 21 Fisheries Credit ............................................. 21 Fishing Vessels ............................................. 22 Table 1: Republic of the Maldives - Second Fisheries Project Summary of Fisheries Statistics; Project Area, 1987-1992 ................ 23 Table 2: Republic of the Maldives - Second Fisheries Project Felivaru Tuna-Processing Plant - Raw Material Supplies Summary of Fish Purchases (Metric Tons) ......................... 23 Table 3: Republic of the Maldives: Second Fisheries Prices Average Annual World Skipjack Tuna Project ....................... 24 Table 4: Republic of Yemen: Fisheries Development Project Summary of Fishing Fleet Statistics .............................. 24 Table 5: Republic of Yemen: Fisheries Development Project GCDFR Revenue from Hodeidah Auction Fish Market .................. 25 Table 6: Republic of Yemen: Fisheries Development Project ROY - Red Sea Coastal Fish Landings ............................ 25 Table 7: Republic of Yemen: Third Fisheries Development Project Gulf of Aden Fish Production 1980-1990 .......................... 26 ANNEX - Comments from the Republic of the Maldives Ministry of Fisheries and Agriculture .......................... 27 Ministry of Finance and Treasury ............................ 28 MAPS Republic of the Maldives: IBRD 16116R, IBRD 16117R and IBRD 16832 Republic of Yemen: IBRD 14788R PERFORMANCE AUDIT REPORT REPUBLIC OF THE MALDIVES Second Fisheries Project (Credit 1320-MAL) REPUBLIC OF YEMEN Fisheries Development Project (Credit 1025-YAR) Third Fisheries Development Project (Credit 1274-YDR) PREFACE This is a Performance Audit Report (PAR) for a cluster of three fisheries projects: the Republic of the Maldives Second Fisheries Project (Credit 1320-MAL), and the Republic of Yemen Fisheries Development (Credit 1025-YAR) and Third Fisheries Development Projects (Credit 1274-YDR). Each of these projects focus on the artisanal fishing sector, and they include interventions in fish marketing, provision of credit for fishing fleet mechanization, and new vessel construction. Although they were implemented in different ecological
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