Documentof The World Bank
FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No.: 20015-YEM
IMPLEMENTATION COMPLETION REPORT Public Disclosure Authorized REPUBLIC OF YEMEN
FOURTH FISHERIES DEVELOPMENT PROJECT
(Credit 2265-YEM)
Public Disclosure Authorized March 6, 2000
Rural Development, Water and Environment Department Middle East and North Africa Region Public Disclosure Authorized
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. CURRENCY EQUIVALENTS
Currency Unit - Yemeni Rial (YR)
Official Rate Market Rate April 1991 US$1 =YR 12 US$1 =YR 29 October 1994 US$ 1 = YR 50 US$ 1 = YR 103 October 1995 US$ I= YR 90 US$ I = YR 112 December 1996 US$ 1 = YR 100 US$ 1 = YR 126 December 1997 US$ 1 = YR 131 US$ 1 = YR 131 June 1998 US$ 1 = YR 135 US$ 1 = YR 135 December 1999 US$ 1 = YR 150 US$ 1 = YR 155
ABBREVIATIONSAND ACRONYMS
CACB Cooperative and Agriculture Credit Bank CFC Coastal Fisheries Corporation EER Economic Rate of Return FACP Food Aid Counterpart Fund FAO/CP Food and Agriculture Organization/WorldBank Cooperative Programme FFDP Fourth Fisheries Development Project FSAC Financial Sector Adjustment Credit GOY Government of Yemen ICR Implementation Completion Report IDA International Development Association IFAD International Fund for Agricultural Development MFW Ministry of Fish Wealth MSRRI Marine Science and Resources Research Institute MSY Maximum Sustainable Yield MTR Mid-Term Review NCSFM National Corporation for Services and Fish Marketing O&M Operation and Maintenance PDRY People's Democratic Republic of Yemen PIPER Portfolio Implementation Performance Review PIU Project Implementation Unit PSC Project SteeTingCommittee QCL Quality Control Laboratory ROY Republic of Yemen SAR Staff Appraisal Report SCF Standard Conversion Factor WB World Bank WID Women in Development
FISCAL YEAR OF BORROWER January 1 - December 31
Vice President: Kemal Dervi§ Country Director: Inder Sud Sector Director: Doris Koehn Sector Manager: Petros A;lilu Team Leader: Tijan M. Sallah FOR OFFICIAL USE ONLY
IMPLEMENTATIONCOMPLETION REPORT
REPUBLIC OF YEMEN FOURTH FISHERIES DEVELOPMENTPROJECT (CREDIT 2265-YEM)
TABLE OF CONTENTS Page No. PREFACE
EVALUATION SUMMARY ...... i-vii
PART I: PROJECT IMPLEMENTATIONASSESSMENT ...... 1 A. Introduction.1 B. Project Objectives and Design.1 C. Achievement of Objectives .2 D. Project Implementation .6 E. Project Sustainability .7 F. IDA Performance .7 G. Borrower Performance .7 H. Assessment of Outcome .8 I. Future Operation .8 J. Key Lessons Leamed .8
PART II: STATISTICAL TABLES...... 10 Table 1: Summary of Assessments.11 Table 2: Related IDA Credits.13 Table 3: Project Timetable.14 Table 4: IDA Credit Disbursements: Cumulative, Estimated and Actual. 14 Table 4A: Disbursements from the European Union (EU) Grant .15 Table 4B Disbursements from the IFAD Loan .15 Table 5: Key Indicators for Project Implementation.16 Table 6: Key Indicators for Project Operation.18 Table 7: Studies Included in Project.18 Table 8A: Project Costs. 20 Table 8B: Project Financing.20 Table 9: Economic Costs and Benefits.21 Table 10: Status of Legal Covenants.22 Table 11: Compliance with Operational Manual Statements.23 Table 12: IDA Resources: Staff Inputs.23 Table 13: IDA Resources: Missions. 24
ANNEXES
A. Mission's Memorandum of Understanding B. Financial and Economic Re-Evaluation C. Project Review From Borrower's Perspective D. Comments from Govemment
MAP: IBRD 30309
This documenthas a restricteddistribution and maybe usedby recipientsonly in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
IMPLEMENTATIONCOMPLETION REPORT
REPUBLIC OF YEMEN
FOURTH FISHERIES DEVELOPMENTPROJECT (Credit 2265-YEM)
Preface
This is the Implementation Completion Report (ICR) for the Fourth Fisheries Development Project (FFDP), for which IDA Credit 2265-YEM in the amount of SDR 9.4 million (US$13.2 million equivalent) was approved on June 13, 1991 and became effective on July 30, 1992.
The Credit was closed on June 30, 1999, and the IFAD and IDA special account balances are being recovered. Upon recovery of the special account balances, it is estimated that total disbursement from the IDA Credit will be about SDR 5.8 million (US$8.0 million equivalent). A total of about SDR 3.6 million (US$5.2 million equivalent) will be cancelled from the IDA Credit. Cofinancing for the project in the amount of US$26.6 million included an IFAD loan of US$6.5 million, a grant of US$16.3 million from the EU and a Government of Yemen (GOY) contribution of US$3.8 million.
The draft ICR was prepared by an FAO/CP mission', on behalf of MNSRE Department of the Middle East and North Africa Region, on the basis of initial discussions in Washington with Mr. T. Sallah (Senior Economist, MNSRE), the Task Team Leader, and with GOY authorities and related implementing agencies during a mission from June 24 to July 7, 1999. The report is also based on material gathered from project files, supervision reports, various project related studies, findings from field investigations and discussions with Bank staff, project consultants, contractors and beneficiaries. The ICR was reviewed by Messrs./Mmes. T. Sallah (TTL), G. Van Santen (Senior Fisheries Specialist-Consultant),T. Sinha (Yemen Cluster Coordinator), T. Kolan (Portfolio Manager), P. Aklilu (Sector Manager) and S. Darghouth (Sector Manager) who provided helpful comments which are reflected in this report. The Borrower, through the PIU, contributed to the preparation of the ICR by: (i) participating in the ICR mission; (ii) preparing "Borrowers Contribution to the ICR;" (iii) providing data and substantive comments on the ICR mission's Memorandum of Understanding (Annex A); and (iv) contributing to the statistical information and recalculation of the ERR.
Food and Agriculture Organization and World Bank Cooperative Programrnme.Mr. R. Suppa was the leader of the ICR mission.
IMPLEMENTATIONCOMPLETION REPORT
REPUBLIC OF YEMEN
FOURTH FISHERIES DEVELOPMENTPROJECT (Credit 2265-YEM)
EVALUATION SUMMARY
Introduction
1. The project was designed to address constraints defined in the 1989 Fisheries Sector Survey of Yemen, i.e., in particular, to increase the role of the private sector in fisheries, including marketing, while encouraging privatization of cooperatively owned small-scale fishing boats and village fishing facilities. The project was to help reduce the role of the public corporations in fish production and marketing, expand the local distribution of fish, and promote high-value fish exports. IDA had previously supported four fisheries projects in Yemen (three in the South and one in the North). The Fourth Fisheries Development Project (FFDP) was the fifth project in the fisheries sector, and IDA appraised it in November 1989 in response to GOY's request. The project was appraised at a total cost of US$39.8 million, and a foreign exchange component of US$31.8 million. The cofinancing included an IDA credit of US$13.2 million, an IFAD loan of US$6.5 million, an EU grant of US$16.3 million, and GOY's contribution of US$3.8 million.
2. After unification of North (capitalist) and South Yemen (socialist), the economy of South Yemen still contained elements of a directed economy. In that environment of state control, the project made determined efforts to help liberalize fish marketing and promote the development of small-scale fisheries and private cooperatives.
Project Objectives and Design
3. The main objectives of the project were to: (i) expand fish catches and improve processing, for both local consumption and export; (ii) improve the efficiency of the domestic and export marketing of fish, notably through investments, policy changes and adjustments in the institutional performance of cooperatives; (iii) improve the assessment and management of the fish resources; and (iv) help improve the position of women in fishing communities. Project objectives were quite realistic, except for the Women in Development (WID) component, which was ambitious and therefore had to be scaled down to a few pilot villages.
4. To achieve these objectives, the project was designed to provide for: (i) construction of basic facilities for fish handling in seven villages to improve fish processing and construction of roads to improve access and the efficiency of domestic and export marketing; (ii) inputs and equipment in the form of intermediate technology vessels, construction material for fishing boats, outboard engines, fishing gear, and a fleet of insulated and refrigerated trucks and plastic boxes to help increase fish catches and improve fish processing; (iii) technical assistance for the Coastal Fisheries Corporation (CFC) and cooperatives of the Ministry of Fish Wealth (MFW) to improve the management of fish resources; (iv) strengthening of the Marine Science and Resources Research Institute (MSRRI) in fish stock assessment to improve the ii management of fish resources; and (v) services for women in fishing communities to help improve their economic status.
5. Overall, the project outcome was satisfactory. One could argue for a different rating in view of the partial achievements under some components. However, the project's impact on beneficiary incomes and on privatization of the sector are a better measure of its success. At the time of Credit closure, the project had contributed to growth in the size of the artisanal fleet and the number of fishermen, which tripled since 1992, and to growth in catches which have at least doubled (from 11,524 tons to 20,736 tons annually in just the six cooperatives/societiesparticipating in the project). This rapid expansion is the result of two major project-related factors: (i) project investments in infrastructure and a successful, albeit subsidized, fisheries credit program operated by CACB; and (ii) a number of policy changes since unification, creating private boat ownership, liberalized fish marketing, and privatization of public fish preservation services. A non-project related factor, however, was the influx of retumees after the Gulf War, who also fuelled investment in fisheries.
Implementation Experience and Results
6. The project and credit agreements for the FFDP were approved by IDA's Board on June 13, 1991, became effective on July 30, 1992, and the IDA Credit closed on June 30, 1999. A PIU, under MFW, established under earlier IDA-financed projects had overall responsibility for project implementation. Except for a hiatus in 1995 -1996, when the entire PIUi staff was replaced by the top management from MFW (see implementation details in paras. 21-23), achievement of development objectives and implementation progress was satisfactory. By credit closure, the project had several significant achievements on many fronts (see paras. 5, 20), benefiting many artisanal fisherfolk. Summaries of the implementationexperience by project component, are described below.
7. Village Fisheries Facilities (EU Financed). The Staff Appraisal Report (SAR) envisaged provision of specific village facilities (fish receiving sheds, iceplants, ice stores, chilled stores, generator houses and generators) to seven fishing villages: Mukalla, Shihr, Diss/Al Hami, Al-Qarn, Qusaeyr, Musainah and Sayhut, all in Hadramaut and Al-Mahrah govemorates. These facilities would comprise a minimum package of one ice maker, one ice store, and one chill store per village. The project substantially achieved the appraisal targets under this component (see Part II, Table 5, and Annex B, Table 1). Six facilities were constructed in six villages (against the SAR target of seven facilities in seven villages), and all were completed by mid-1997 and at a high standard of construction. The village of Qusaeyr was excluded as construction of the facilities there was discovered to be prohibitively costly, given its remote location and its relatively lower fish landings.
8. To ensure cost recovery and sustainability, the project rented the facilities to the cooperatives/ societies over a trial period to ensure that they had the required capabilities to manage them. The facilities were thereafter sold to them. At the time of Credit closure, only two (Mukalla and Shihr) out of the six cooperatives/societies had satisfactorily met the requirements, and the PIU sold the facilities to them in September 1999. For the remaining four facilities rented to Musainah, Al-Diss, Sayhut, and Al-Qam cooperatives/societies, plans are underway to sell the facilities after the cooperatives/societies have fulfilled the preconditions for sale. These facilities, whether rented or owned, are contributing to reducing losses in fish catch and improving fish processing.
9. Fokum-Ras Imran Road (IDA Financed). The SAR envisaged the construction of a 14.2 km asphalt road between the fisheries facilities of Fokum and Ras Irnran to facilitate transport of fish to Aden. This component was fully achieved, despite delays in implementation. The construction of the road (14.2 km) and its extension (2.5 km) wvascompleted. The extension enabled the road to reach the existing fisheries facilities, including the iceplants, which were built under the IDA-assisted Third Fisheries Project iii
(Cr. 1274-YDR). Following disagreement between GOY and IDA on contract award recommendation and expiration of bid validity, IDA agreed to a rebidding with final contract award to the lowest evaluated responsive bidder. The road has now been completed with about 27 percent increase in cost, due to redesign, extension and widening. This road is helping improve the efficiency of domestic marketing of fish, by facilitating fish traders' access to village fish auctions and fishermen access to markets in Aden
10. Outboard Engines and Gear (IDA and IFAD Financed). The SAR envisaged the provision of 320 glass reinforced plastic boats, 50 wooden sambuks, 4 intermediate technology vessels, 2,400 outboard engines and fishing gear to the fishing community. The project partially achieved its appraisal targets in this regard. Most of the fishing equipment and inputs were cancelled because macroeconomic reforms enabled the private sector to supply them. Only the outboard and inboard engines and fishing gear were procured because their procurement had started prior to the reforms. Seventeen hundred outboard engines were procured ( less than the 2,400 units envisaged in the SAR, due to an increase in unit costs), of which 79 percent (all the Yamaha engines), were successfully purchased by fishermen due to large demand,. The only units that remained unsold were the 340 Selva engines (against the 350 units procured) for which there was little demand. The PTIU,which is still operating with EU financing, is making arrangements for CACB to take possession and sell them at a discount. For the inboard engines, 20 were procured: one was sold to a fisherman and 19 were issued to the army under the instruction of the top management of MFW. As for the fishing gear of US$2.1 million procured in 1994, except for US$0.9 million worth of gear stolen during the Civil War, all was immediately sold. The inboard and outboard engines and fishing gear distributed to the fishermen have been contributing to expanding fish catches for both local consumption and exports.
11. Fisheries Credit Component (IDA and IFAD Indirectly Financed). The SAR envisaged the establishment of a revolving fund in CACB totaling US$3 million equivalent, using local currency generated from the sale, on cash terms, of project procured equipment/items, e.g., outboard engines. CACB was to manage this credit scheme on behalf of the MFW for a fee. An international expert was to help with implementation of the credit scheme. This component was partially achieved. In September 1999, the revolving fund in CACB received a deposit of YR 203 million (or about US$ 2.7 million equivalent, converted at the prevailing exchange rate at the time of the deposit), corning from proceeds of the sale of procured equipment. All of these funds were utilized as credit to over 1,873 fishermen. The fisheries credit component continues to provide needed finances for the purchase of equipment by fishermen, and has therefore contributedto increased fish catches. Its implementation was rated successful in the early years with high average recovery rates (above 90 percent) for credit extended. In recent years though, the average recovery rate has fallen to 68 percent owing to poor follow up. This has been due to lack of agreement between the top management of MFW and the CACB on recommended follow-up actions. The new management at CACB is continuing the credit scheme and evaluating options on how best to improve recovery.
12. Women Development Centers (IFAD Financed). The SAR envisaged construction of a small clothing factory to be run by an existing sewing cooperative, and rehabilitation or construction of a total of 20 community development centers. It was also envisaged that education and extension experts, both internationally recruited, would be hired to design adult and vocational education programs to benefit women in fishing villages. This component was partially achieved as it was considered too ambitious and complex, and on the basis of advice from a Women in Development (WID) consultant and IDA's agreement, GOY decided to concentrate on a pilot in three fishing villages: Fokum, Imran and Shuqra were identified to build the women's training centers. The three centers were completed at a modest cost, using mostly local building materials. Contractors handed them over to the PIU in June 1999, and PIU is working out cost-sharing arrangements with the female beneficiaries in these villages to ensure that the facilities are equipped and utilized. These facilities will help uplift the knowledge and skills of women iv in these fishing villages, thereby improving their positions and creating opportunities for gainful employment.
13. Al-Qarn Asphalt Road and Electrical Distribution Network in Al-Qarn and Musainah (EU Financed). The SAR envisaged improvements under the project of the 4.5 km of the existing 8.8 km Al- Qam Road and 1.75 km Musainah Road connectingthem to the Mukalla-Sayhut main road. This was fully achieved. Additional funds were made available under the EU's Food Aid Counterpart Funds (FACF) to finance the construction of the entire 9.0 km access road with asphalt, linking Al-Qam to the Mukalla- Sayhut main road. The completed road will significantly improve the domestic marketing of fish in this area. With EU financing, the fishing villages of Al-Qarn and Al-Musainah have also had two electrical generators installed for the entire village, including power distribution lines. The operation and maintenance (O&M) cost of the generators will be met by both the cooperatives and the villages, and the PIU has concluded an agreement with beneficiaries regarding O&M responsibilities for the generators and the power distribution system.
14. Other Small Civil Works (IDA and IFAD Financed). Additional civil works completed under the project included auction yards in Shuqra, Burum, Bir Ali and Al-Salif, and the construction of the Fokum and Shuqra asphalt access roads of 1.6 km and 1.3 km respectively. The four auction yards were handed over to the respective cooperatives in mid July 1999. Although not envisaged in the SAR, in view of the unused funds from the cancelled equipment imports referred to in para. 9, under the project GOY requested and IDA agreed on the use of US$1 million on priority fisheries infrastructure consistent with project development objectives and implementablebefore Credit closure. Similarly, from the unused funds in the IFAD loan, IFAD also approved the construction and equipment upgrading of the only Quality Control Laboratory (QCL) in the country located in Aden. The construction of the additional wing of the QCL was completed and handed over to the PIU in July 1999. The procurement and installation of the laboratory equipment and furniture under the project was also completed. The upgrading of the QCL has created a major asset, contributing significantly to enhancing Yemen's capacity to control fish quality especially for exports in an increasingly quality conscious and demanding export environment.
15. Technical Assistance (TA) and Training (EU/IFAD Financed). The SAR envisaged provision of technical assistance to build regulatory and legal capacity in MFW, to develop a framework for future investment,to monitor the effects of the ongoing liberalization, to carry out studies for the marine fisheries sub-sector, to help with design of tender documents and construction supervision, and to engage in promotional activities such as assisting cooperatives, private fishermen and traders, and NCFM in marketing. This component was partially achieved. The first problem was that the TA activities planned were not adequate to achieve the capacity building and fish stock assessment/managementobjectives. The second problem was that the performance of project consultants ranged from satisfactory to poor. For example, the "Fisheries Sector Review," which was an input into the IDA-prepared "Fisheries Strategy Note" and the report "Fish Stock Assessment" were considered satisfactory. However, the report by consultants on "Financial Re-appraisal of Fish Receiving Centers" was not fully satisfactory. The report on "Fish Stock Assessment" was unfortunately only completed at the time of Credit closure, but it will be a very useful document for improving the management of fish resources. All together, a total of 441 person/months (p/ms) of TA were financed under the project, slightly above the SAR estimate of 416 p/ms (see details in Annex B, Table 2). The TA input on cooperative, management and fisheries credit was substantial and positive, but that for stock assessment and women's development was too little too late. The TA input for fisheries policy and planning was only partially utilized experiencing high and frequent turnover, resulting in diminished effectiveness. In fact, the EU-financed Mid-Term Review (MTR) report noted that the TA input should have had substantial impact on institutional development, but somehow proved less so because many assignments were too short to have much effect. The security situation in Yemen sometimes enforced premature evacuation of experts and, in some cases, the experts were incompatible with their tasks or recurrent support was not provided. The mixed quality of the results from V the TA suggested that, in some cases, it is essential to have an experienced PIU with autonomy from MFW to properly manage performance.
16. Project Outcomes and Economic and Financial Re-evaluation. The project reached most of its physical targets (see Annex B, Table 12). The shortcomings were capacity building and fish stock assessment and management. It achieved its objective of increasing fish catches (although the incremental annual fish landings of 9,200 tons were below the 11,000 tons envisaged in the SAR) and raising incomes of project beneficiaries (financial rates of return range from 30-55 percent, depending on the size of the production unit) (see Appendix B, Tables 10-11). Financial returns on investment undertaken by the boat owners are in line with SAR estimates, and clearly indicate the financial viability of artisanal fishing operations in Yemen. The project developed a strong, independent private small-scale fishing and marketing sector, improving, at the same time, the financial position of the benefiting cooperatives/ societies. The actual cost of the project is estimated at US$29.4 million (Part II, Table 8A) or about 74 percent of the original appraisal estimate. The overall ERR for the project is re-calculated at 15.4 percent (see Appendix B, Table 19) which, although considered satisfactory, is below the ERR of 31 percent envisaged at appraisal. This lower rate is due to the less than expected increases of annual fish landings (perhaps due to increasing fishing pressures) and delays experienced in project implementation.
Major Factors Affecting the Project
17. Both factors internal and external to the GOY's control affected the project. For factors under GOY's control, following IDA's Board approval in June 1991, the IDA credit and IFAD loan became effective a year later due to GOY delays in meeting the conditions of effectiveness in establishing a satisfactory PIU and opening two special accounts. After this slow start, implementation picked up and continued satisfactorily until 1995, then slowed down for two years. It picked up again after 1997 until Credit closure. During the entire project implementationperiod, however, GOY did not provide adequate counterpart funding, despite the continued attempts of IDA/EU/IFADjoint supervision missions to resolve this issue. Eventually, EU helped by providing a grant through the Food Aid Counterpart Funds (FACF) to meet the funding shortfall. GOY actions that also negatively impacted on project implementation was removal of the entire PIU staff by the top management of MFW. During this period (1995 and 1996), project implementationwas unsatisfactory. However, in 1997 the project experienced a major boost when GOY made changes in the top management of MFW, which turned out to be highly supportive of the project, and which restored some of the competent staff of the PIU. The revamped PIU proved highly effective in steering the project, and major successes were achieved within a limited period, and the project was able to make up for some of the lost time.
18. The project also suffered from factors outside GOY's control. These included the Gulf War in 1991 and the Yemeni Civil War in 1994. Both wars heightened domestic insecurity and caused some social dislocations. Furthermore, some periodic social unrest hampered project implementation as it resulted in lack of security for project officers in the field.
19. Overall, IDA performance during project implementation was satisfactory. In fact, IDA surmounted enormous difficulties to steer project implementation in the right direction. GOY performance was mixed: satisfactory in the early years of the project, unsatisfactory at midpoint, and satisfactory in the final years of implementationwhen the PIU stepped up its efforts considerably to bring all components to a satisfactory close. GOY was disappointed by IDA's refusal to extend the credit closing date. IDA's position was that the project had already been eight years in the portfolio, and the activities proposed for the extension period were outside the original project scope and would therefore require a new appraisal. vi
Future Operation
20. GOY submitted a request in 1998 for a follow-on fisheries project. IDA's position was to prepare a strategic review of the fisheries sector before considering further investment support. This has led to the preparation of the Fisheries Strategy Note, prepared jointly with GOY, utilizing findings from field consultations and the EU-financed Fisheries Sector Review as basis. The Strategy Note is expected to be discussed at a joint workshop between GOY and the donors, and is planned for May 2000. It recommends future emphasis on stock management and on efforts to improve quality and marketing.
21. To ensure sustainability, GOY has embarked on efforts first to rent and, if some basic preconditions of proper management are met, then to sell the village infrastructure facilities to the benefiting cooperative/society. This approach would help ensure cost recovery, beneficiary accountability, and infrastructure sustainability. The first villages to own their facilities, Mukalla and Shihr cooperatives/societies, have demonstrated that this approach works, and are utilizing and managing their facilities effectively. MFW/PIU are also working out cost-sharing arrangements with benefiting women in Fokum, Imran, and Shuqra to ensure that the women's training centers are well utilized and maintained. The causes for concern are the access roads, for which sustainability is uncertain due to adequate GOY funding for maintenance of feeder roads, and the declining recovery rate in the fisheries credit program which needs to be reversed to ensure sustainability.
Summary of Key Lessons Learned
22. The key lessons learned from the project are the following:
(a) Sustainability of village infrastructure facilities requires securing beneficiary commitment to contributing not only to the capital costs but also to financing O&M costs. Under the project, the successful privatization of two village facilities by first renting, and then transferring ownership to the benefiting cooperatives/societies, has been the right approach. Renting first allowed PIU to evaluate state of readiness before final ownership transfer. Four village facilities are still under rental but expected to be transferred to the beneficiaries shortly.
(b) Expanding fish production requires commitment to improving resource management. This project, and its four predecessors, concentrated mainly (and quite successfully) on expanding fish production. There is a danger, however, that this success may lead to overexploitation of fish resources, which, if not addressed through building better regulatory and resource management capacities, could become self-defeating.
(c) Reduced PIU autonomy through MFW involvement in the day-to-day running of project activities can have detrimental effects on implementation. Under the project, especially during the period 1995 and 1996, PIU was unable to make project decisions because the MFW refused to support its role. Had this hiatus not taken place, the project would have been completed sooner and with all funds fully disbursed.
(d) Donor cooperation in developing a common approach to implementation was crucial to guaranteeing project survival and eventual success. Under this project, the united approach of the Bank, EU and EFAD allowed a common position on implementation and policy matters and enhanced donor leverage on supervision, especially since EU funds were grant financed. Also, donor flexibility and quick response to changes in the project environment and project needs allowed, in some cases, for switching of project resources to other more appropriate purposes. vii
(e) Ensuring a proper fit between project objectives and activities is essential. The project showed that addressing capacity building and stock assessment/management objectives with technical studies is not adequate to ensure success.
(f) (Contractingall TA under a project to a single firm can have significant advantages but it can also have distinct disadvantages for the client, as was the case in this project, because the single firm contract allowed little room to change the TA experts in cases of unacceptable performance.
IMPLEMENTATIONCOMPLETION REPORT
REPUBLIC OF YEMEN
FOURTH FISHERIES DEVELOPMENTPROJECT (Credit 2265-YEM)
PART I: PROJECT IMPLEMENTATIONASSESSMENT
A. Introduction
1. The project was designed in the late 1980s to address a number of constraints defined in the Fisheries Sector Survey (1989), in'particular, gradually increasing the role of the private sector in fisheries, including marketing, while encouraging the privatization of cooperatively owned small-scale fishing boats and village fishing facilities. Strong emphasis was on high value fish for export, as well as expanding local distribution of fish and gradually reducing the role of the public corporations. IDA had previously assisted in the financing of three fisheries projects in South Yemen and one in North Yemen. In response to the GOY's request for continuing support to the traditional fishing sub-sector, IDA appraised the FFDP in November 1989. The total cost of the project was appraised at US$39.8 million, with a foreign exchange component of US$31.8 million. The cofinancing arrangement included an IDA credit of US$13.2 million, an IFAD loan of US$6.5 million, an EU grant of US$16.3 million, and GOY's contribution of US$3.8 million.
2. During project design, the Government of South Yemen or the Peoples Democratic Republic of Yemen (PDRY) had a planned economy while that of North Yemen or the Yemen Arab Republic (YAR) had a traditional market economy. After unification in May 1990, GOY initiated more market-oriented policies, but the economy of the South still contained elements of a directed economy. In this environment of state control, the project made determined efforts to help liberalize fish marketing and promote the development of small-scale fisheries and cooperatives.
B. Project Objectives and Design
3. The main objectives of the project were to: (i) expand fish catches and improve processing, for both local consumption and export; (ii) improve the efficiency of the domestic and export marketing of fish, notably through investments, policy changes and adjustments in the institutional performance of cooperatives; (iii) improve the assessment and management of the fish resources; and (iv) help improve the position of women in fishing communities. Project objectives were quite realistic, except for the WID component, which was ambitious and therefore had to be scaled down to a few pilot villages.
4. To achieve these objectives, the project was designed to provide for: (i) construction of basic facilities for fish handling in seven villages to improve fish processing and of roads to improve access and the efficiency of domestic and export marketing; (ii) inputs and equipment in the form of intermediate technology vessels, construction material for fishing boats, outboard engines, fishing gear, and a fleet of insulated and refrigerated tucks and plastic boxes to help increase fish catches and improve fish processing; (iii) technical assistance for the Coastal Fisheries Corporation (CFC) and cooperatives of the Ministry of Fish Wealth (MFW) to improve the management of fish resources; (iv) strengthening of the Marine Science and Resources Research Institute (MSSRI) in fish stock assessment to improve the 2 Implementation Completion Report management of fish resources; and (v) services for women in fishing communities to help improve their economic status.
5. Overall, the project outcome was satisfactory. One could argue for a different rating in view of the partial achievements under some components. However, the project's impact on beneficiary incomes and on privatization of the sector are a better measure of its success. At the time of the Credit closure, the project had contributed to growth in the size of the artisanal fleet and the number of fishermen, which tripled since 1992, and to growth in catches which have at least doubled (from 11,524 tons to 20,736 tons annually in just the six cooperatives/societies participating in the project). This rapid expansion is the result of two major project-related factors: (i) project investments in infrastructure and a successful, albeit subsidized, fisheries credit program operated by CACB; and (ii) a number of policy changes since unification, creating private boat ownership, liberalized fish marketing, and privatization of public fish preservation services. A non-project related factor, however, was the influx of returnees after the Gulf War, which also fuelled investment in fisheries.
C. Achievement of Objectives
Implementation Experience and Results
6. The project and credit agreements for the FFDP were approved by IDA's Board on June 13,1991 and became effective on July 30,1992. The project was to implemented over a period of seven years from the date of effectiveness, with a Credit closing date of June 30,1999. A PIU, under MFW, established under earlier IDA-financed projects had overall responsibility for project implementation. The project initially suffered from start-up delays, but implementation was satisfactory. From 1995-1997, the entire PIU staff was replaced by the top management from MFW, resulting in major delays in procurement processing and unsatisfactory implementation. However, because of further changes in the top management of MFW and improvements in PIU staffing, project implementation improved considerably from 1997 onwards and closed satisfactorily. Hence, at the time of Credit closure, the overall achievement of development objectives and implementation progress were satisfactory, and the project had several significant achievements on many fronts (see paras. 5, 16, 24), benefiting many artisanal fisherfolk (see implementation details in paras. 17-20). Summaries of the implementation experience by project component are described below.
7. Village Fisheries Facilities (EU Financed). The Staff Appraisal Report (SAR) envisaged provision of specific village facilities (fish receiving sheds, iceplants, ice stores, chilled stores, generator houses and generators) to seven fishing villages: Mukalla, Shihr, Diss/Al Hami, Al-Qarn, Qusaeyr, Musainah and Sayhut, all in Hadramaut and Al-Mahrah govemorates. These facilities would comprise a minimum package of one ice maker, one ice store, and one chill store per village. The project substantially achieved the appraisal targets under this component (see Part II, Table 5, and Annex B, Table 1). Six facilities were constructed in six villages (against the SAR target of seven facilities in seven villages), and all were completed by mid-1997. The village of Qusaeyr was excluded as construction of its facilities were discovered to be prohibitively costly, given its remote location and the relatively lower fish landings there.
8. To ensure cost recovery and sustainability, the project devised an innovative scheme to initially rent the village facilities to the local cooperatives and societies over a trial period to ensure that they have the financial and technical capabilities necessary to operate and manage them. Once PIU/MFW were convinced that these requirements were satisfactorily met, arrangements were made to sell the facilities to the local cooperatives/societies. At the time of Credit closure, only two (Mukalla and Shihr) out of the six cooperatives/societieswere fully compliant in successfully managing the facilities and paying the required rent up to date. As a result, the PIU sold the facilities to them in September 1999. For the remaining four Implementation CompletionReport 3 facilities, however, PIU is still renting them to the cooperatives/societies of Musainah, Al-Diss, Sayhut, and Al-Qam with plans underway for eventual handing over after these cooperatives/societies have improved their financial and technical capacities. These facilities, whether rented or owned, are contributing to reducing losses in fish catch and improving fish processing.
9. Fokum-Ras Imran Road (IDA Financed). The SAR envisaged the construction of a 14.2 km asphalt road between the fisheries facilities of Fokum and Ras hnran to facilitate transport of fish to Aden. This component was fully achieved, despite delays in implementation. The construction of the road and its extension (2.5 km) was completed. The extension enabled the road to reach the existing fisheries projects' facilities, including the iceplants, which were built under the IDA-assisted Third Fisheries Project (Cr. 1274-YDR). The delays experienced in the construction of the road were due to disagreement between GOY and IDA on the bid evaluations and contract award recommendation. Following the MTR and expiration of bid validity, IDA agreed to a rebidding with final contract award to the lowest evaluated responsive bidder. The road has now been completed with about 27 percent increase in cost, due to extension of its length, redesign due to changes in the soil profile, and a widening of the road width by 1 meter. This road is helping improve the efficiency of domestic marketing of fish, by facilitating fish traders' access to these fishing villages and fishermen access to markets in Aden.
10. Outboard Engines and Gear (IDA and IFAD Financed). The SAR envisaged the provision of 320 glass reinforced plastic boats, 50 wooden sambuks, 4 intermediate technology vessels, 2,400 outboard engines and fishing gear to the fishing community. The project partially achieved its appraisal targets in this regard. Most of the fishing equipment and inputs were cancelled because the private sector was supplying them due to successful macroeconomic reforms in Yemen. Only the outboard and inboard engines, fishing gear and spare parts were procured by the project because the bidding process for them started prior to the reforms. Seventeenhundred outboard engines were procured (less than the 2,400 units envisaged in the SAR, due to an increase in unit costs), of which 79 percent (all the Yamaha engines), due to large demand, were successfully purchased by fishermen. The only outboard engine units that remained unsold were the 340 Selva engines (against the 350 units procured) for which there was little demand. The PIU, which is still operating with EU financing, is making arrangements for CACB to take possession of them and help with their distribution at a price slightly below procurement cost. For the inboard engines, 20 were procured (one was sold to a fishermen and 19 were issued to the army under the instruction of the top management of MFW). As for the fishing gear (nets, lines, hooks, ropes, twine, etc.), about US$2.1 million in value was procured in 1994 and some of it was immediately sold. However, during the Civil War, the remaining gear, worth about US$0.9 million, was stolen. The second batch of fishing gear, worth US$85,000, was ordered in August 1995 and consisted of experimental gear and equipment specified by the TA fishing gear specialist. They were in stock and were being handed over to CACB with the Selva engines. The inboard and outboard engines and fishing gear distributed to the fishermen have contributed to expanding fish catches for both local consumption and exports.
11. Fisheries Credit Component (IDA and IFAD Indirectly Financed). The SAR envisaged the establishment of a revolving fund under the project in CACB totaling US$3 million equivalent, using local currency generated from the sale, on cash terms, of project procured equipment/items (e.g., outboard engines). CACB was to manage this credit scheme as a trustee on behalf of MFW for a fee. International TA was to support the monitoring and implementation of the credit scheme. This component was partially achieved. In September 1999, the revolving fund in CACB received a deposit of YR 203 million (or about US$2.7 million equivalent, converted at the prevailing exchange rate at the time of the deposit), coming from proceeds of the sale of procured equipment, including spare parts. All of these funds were utilized as credit to over 1,873 fishermen. CACB managed the credit scheme for a fee of 2.5 percent on top of the interest (7 percent) charged to borrowers. The fisheries credit component has, and continues to provide, needed finances for the purchase of equipment by fishermen, and has therefore contributed to increased fish catches. Its implementation was rated successful in the early years with high 4 Implementation Completion Report average recovery rates (above 90 percent) for credit extended. However, in recent years, the average recovery rate has fallen to 68 percent. The recovery rate has been particularly low for the CACB branches of Aden and Shuqra because of poor follow-up. This started during the period 1995 and 1996 when the top management of MFW failed to cooperate with the management of CACB on recommended actions to improve cost recovery. This resulted in non-procurement of needed vehicles for credit follow-up by the CACB fisheries credit officials. This hampered the highly effective field administration of the fisheries credit which relied on periodic follow-up and group guarantee and enforcement. Furthermore, MFW then refused to deposit the agreed proceeds from the sale of equipment into the CACB special fund and temporarily deprived the credit scheme of needed funds. CACB stepped in occasionally with its own funds. Recently, the new management of CACB and the new management of MFW have been cooperating closely. CACB is continuing the credit scheme and evaluating options on how best to implement actions to boost credit recovery. It is anticipated that these actions will help increase the recovery rate.
12. Women Development Centers (IFAD Financed). The SAR envisaged construction of a small clothing factory to be run by an existing sewing cooperative, and rehabilitation or construction of a total of 20 community development centers. It was also envisaged that an education and training consultant and an extension coordinator, both internationally recruited, would be hired to survey, design and coordinate with on-going training programs to provide adult education (e.g., literacy, home economics, primary health) and vocational education (animal husbandry, fish processing, accounting, etc.) programs to benefit women in fishing villages. This component has been partially achieved. It was considered too ambitious and complex by the PIU, the WID consultant and the IDA supervision mission of March 1998. On the basis of the consultant's advice and IDA's agreement, GOY decided to concentrate on a pilot in three fishing villages. The WID consultant surveyed and identified specific sites for the construction of the pilot women training centers after consultation with fisherwomen in Fokum, Imran and Shuqra. The three centers have been completed using mostly local building materials. Contractors handed them over to the PIU in June 1999, and PIU is working out cost-sharing arrangements with the female beneficiaries in these villages to ensure that the facilities are equipped and utilized. These facilities will help uplift the knowledge and skills of women in these fishing villages, thereby improving their positions and creating opportunities for them to be gainfully employed. This redefined pilot-scale component is expected to provide valuable experience for any future women's training component in fishing villages.
13. Al-Qarn Asphalt Road and Electrical Distribution Network in Al-Qarn and Musainah (EU Financed). The SAR envisaged improvements under the project of 4.5 km of the existing 8.8 km Al-Qarn Road and 1.75 km Musainah Road connecting them to the main road running between Mukalla and Sayhut. This was fully achieved. Additional funds were made available under the EU's Food Aid Counterpart Funds (FACF) to finance the construction of the entire 9.0 km access road with asphalt, linking Al-Qam to the Mukalla-Sayhut main road. Fishermen have greatly appreciated the decision to implement the entire road which will facilitate fish traders' access to village landing sites and attend fish auctions, and for fishermen to transport fish to large local markets such as Mukalla. Thus, the completed road will significantly improve the domestic marketing of fish in this area. Under EU financing, the fishing villages of Al-Qarn (resident population of about 800), and Al-Musainah (resident population of about 2,000), have had two electrical generators installed for the entire village, including power distribution lines. The total operation and maintenance (O&M) cost of the generators will be met by both the cooperatives and the villages, and the PIU has concluded an agreement with beneficiaries regarding O&M responsibilities for the generators and the power distribution system.
14. Other Small Civil Works (IDA and IFAD Financed). Additional civil works completed under the project included auction yards in Shuqra, Burum, Bir Ali and Al-Salif, and the construction of the Fokum and Shuqra asphalt access roads of 1.6 km and 1.3 km respectively. The four auction yards were handed over to the respective cooperatives by mid July 1999. Although not envisaged in the SAR, in view Implementation CompletionReport 5 of the unused funds from the cancelled equipment imports (referred to in para. 10) under the project, GOY requested and IDA agreed on the use of some of about US$1 million on priority fisheries infrastructure consistent with project development objectives and implementable before Credit closure. Similarly, from the unused funds in the IFAD loan, IFAD approved the construction and equipment upgrading of the only Quality Control Laboratory (QCL) in the country located in Aden. The construction of the additional wing of the QCL was completed and handed over to the PIU in July 1999. The procurement and installation of the laboratory equipment and furniture under the project was also completed. The upgrading of the QCL has created a major asset, contributing significantly to enhancing Yemen's capacity to control fish quality especially for exports in an increasingly quality conscious and demanding export environment.
15. Technical Assistance (TA) and Training (EU/IFAD-Financed). The SAR envisaged provision of TA to build regulatory and legal capacity in MFW, to develop a framework for future investment, to monitor the effects of the ongoing liberalization, to carry out studies for the marine fisheries sub-sector, to help with design of tender documents and construction supervision, and to engage in promotional activities such as assisting cooperatives, private fishermen and traders, and NCFM in marketing. This component was only partially achieved. A review of the planned TA reveals that even if it had been carried out as planned, it would not have gone far towards achieving the project's objectives of capacity building and fish stock assessment and management. These goals require more sustained and deeper interventions. The second flaw was that even within the planned TA, the performance of project consultants ranged from satisfactory to poor. For example, the "Fisheries Sector Review," which was an input into the IDA-prepared "Fisheries Strategy Note" and the recent report "Fish Stock Assessment" were considered satisfactory. However, the report by consultants on "Financial Re-Appraisal of Fish Receiving Centers" was not fully satisfactory. The report on "Fish Stock Assessment" was unfortunately completed around the time of Credit closure, but it will be a very useful document for improving the management of fish resources. Altogether, a total of 441 person/months (p/ins) of TA were financed under the project, slightly above the SAR estimate of 416 p/ms (see details in Annex B, Table 2). The TA addressed four institutional development areas: (i) cooperatives and credit, (ii) research (stock assessment and environmental protection), (iii) fisheries policy and planning, and (iv) women's development. Under (i) cooperatives and credit, the TA contributed positively, providing training to staff of fisheries cooperatives on cooperative management at the Aden Cooperative Training Institute and to branch staffs of CACB on appraisal of fisheries credit. Under (ii) research (stock assessment and environmental protection), the TA input was fragmented as to purpose, timing and personnel to have any lasting impact. No less than five stock assessment experts came for short periods without any serious contribution. Only at the time of Credit closure did a fish stock assessment expert arrive who produced the aforementioned useful report. Under (iii) fisheries policy and planning, the fisheries sector adviser (TA), produced a Sector Review, including a proposal on reorganization of MFW, and a new draft Fisheries Law. The Sector Review was recently updated, but no action was taken on proposals for reorganization of MFW or adoption of the new draft of the Fisheries Law. Under (iv) women's development, substantial delays were experienced recruiting the TA, which arrived just before Credit closure. Overall, the TA was largely contracted by the EU to a single experienced fisheries firm, creating little basis for competition and for attraction of more diversified experts to the project. The TA experienced high and frequent turnover, carried out studies with recommendations which were not acted upon and some of the TA had problems with the top management of MFW. In fact, the EU-financed MTR report noted that the impact of the TA input on institutional development should have been substantial but proved much less than expected because many of the assignments were too short to have much effect. In some cases, this was because security problems enforced premature evacuation and in others, incompatibility or lack of recurrent support were the cause. The mixed quality of the results from the TA suggested that it is essential to have an experienced PIU with autonomy to properly manage the TA. 6 Implementation CompletionReport
16. Project Outcomes and Economic and Financial Re-evaluation. The project reached most of its physical targets (see Annex B, Table 12; Part II, Table 5). However, it did not achieve its institution- building goals related to MFW, particularly in the area of fish stock assessment and management. Its goal of improving the position of women was also too ambitious in view of predominant attitudes. It nevertheless achieved its objective of increasing fish catches (although the incremental annual fish landings of 9,200 tons were below the 11,000 tons envisaged in the SAR) and raising incomes of project beneficiaries (financial rates of return range from 30-55 percent, depending on the size of the production unit) (see Appendix B, Tables 10-11). Financial returns on investment undertaken by the boat owners are in line with SAR estimates, and clearly indicate the financial viability of artisanal fishing operations in Yemen. The project developed a strong, independent, private small-scale fishing and marketing sector, improving at the same time the financial position of the benefiting cooperatives/societies. The actual cost of the project is estimated at US$29.4 million (Part II, Table 8A) or about 74 percent of appraisal estimate. The overall ERR for the project is re-calculated at 15.4 percent (see Appendix B, Table 19) which although considered satisfactory, is below the ERR of 31 percent envisaged at appraisal. This lower rate is due to the less-than-expected increases of annual fish landings (perhaps due to increasing fishing pressures) and delays experienced in project implementation.
D. Project Implementation
Major Factors Affecting the Project
17. These can be divided into those under GOY's control and those beyond of GOY's control. For factors under GOY's control: Following IDA's Board approval in June 1991, the IDA Credit and IFAD loan became effective a year later due to GOY delays in meeting the conditions of effectiveness in establishing a satisfactory PIU and opening two special accounts. After a slow start, implementation picked up and continued satisfactorily until 1995, then slowed down for two years. It picked up again after 1997 until Credit closure. During the entire project implementation period, however, GOY did not provide adequate counterpart funding, despite the continued attempts of IDA/EU/IFAD joint supervision missions to resolve this issue. Eventually, EU helped by providing a grant through the Food Aid Counterpart Funds to meet the shortfall.
18. Another major factor under GOY control that negatively impacted on project implementationwas the removal of the entire PIU staff by the top management of MFW. During this period (1995 and 1996), the project implementation became unsatisfactory.
19. With GOY's and IDA's conviction that the project was worth salvaging, the project experienced a major boost when changes in the top management of MFW took place in 1997. This turned out to be highly supportive of the project and changed project management, including returning some of the previous experienced staff to the PIU. The revamped PI1 proved highly effective in steering the project ahead, and major successes were achieved within a limited period and the project was able to make up for some of the lost time.
20. The project also suffered from factors outside of GOY's control. These include the Gulf War in 1991 and the Yemeni Civil War in 1994. Both wars heightened domestic insecurity and caused some social dislocations. Furthermore, some periodic social unrest hampered project implementation as it resulted in lack of security for project officers in the field. Overall, despite these difficulties, the project was able to surmount the obstacles and reach a satisfactory close. Implementation Completion Report _ 7
E. Project Sustainability
21. To date, the project has made successful transfers in two fishing villages by ensuring that village facilities built under the project are first rented to the intended beneficiaries and, after careful evaluation of their successful management, were sold to the benefiting cooperatives/societies. The infrastructure facilities are well-built and will likely be sustainable, because the project ensured that there was adequate technical, financial and management capacity among the beneficiaries before they were handed over. For other infrastructure works, such as the access roads, sustainability is uncertain as it depends on GOY's provision of adequate funds for feeder road maintenance which in turn depends on the GOY's funding priorities. Sustainability of the credit component is also uncertain because it depends on CACB reversing the declining recovery rate. As for the WID centers, PIU is working out cost-sharing arrangements with the benefiting women in these villages to ensure that the facilities are well-utilized and maintained. The EU, which is continuing to finance the operations of the PIU, has recently approved a program of financial assistance to improve and consolidate on the results so far achieved under the project, which may help build local capacities and promote sustainability. The PIU has a 12-month work plan which started after the IDA Credit has closed on June 30, 1999. An amount of Euro 450,000 (US$461,000 equivalent) was approved by the EU to implement the program envisaged in the work plan.
F. IDA Performance
22. IDA's performance in the project is rated satisfactory. IDA supported GOY's request and participated in project identification and preparation, as did FAO/CP. IDA carried out the appraisal of the project because it was consistent with GOY's strategy and IDA's commitment to support Yemen's development efforts in the fisheries sector. IDA, together with its EU/IFAD cofinancing partners, exercised great flexibility and quick response to changes in the project environment, which allowed for the switching of project resources to more appropriate purposes. IDA carried out 13 project supervision missions, including a joint IDA/EU/IFAD MTR mission in February 1997 (MFW was not prepared for the MTR which was originally scheduled in 1995). The role of IDA and its cofinancing partners, who during supervision ensured continued support, was particularly beneficial to the survival of the project, despite unexpected policy changes and changes in the top management of MFW. Since this was an unusually difficult project dealing with difficult circumstances of capacity weaknesses in MFW, the IDA task team surmounted several obstacles and supported the project to satisfactory completion. IDA's task team never lost sight of the project's potential to benefit small-scale fishermen (see para. 23). GOY was disappointed by IDA's refusal to extend the Credit closing date. IDA's position was that the project had already been eight years in the portfolio, and the activities proposed for the extension period were outside the original project scope and would therefore require a new appraisal.
G. Borrower Performance
23. The Borrower's overall performance was satisfactory. In project preparation, the Borrower performed fully satisfactorily; its performance in implementation was partially satisfactory. The project experienced start-up delays because the Borrower did not establish a PIU and open the project special accounts in the time envisaged. Between 1992-1995,Borrower perfornance was satisfactory. However, between 1995-1996, due to changes introduced in the top management of the MFW, project implementation slowed down considerably and Borrower performance was unsatisfactory. With further improvements in the management of MFW and PIU in 1997, project implementation experienced a tremendous boost and the adverse policy actions taken in 1995 and 1996 were reversed. Borrower performance was again satisfactory. The revamped PIU resumed its previous effective role, project procurement was expedited, and cooperatives were allowed to resume their function in the project. As a result, the project regained its successes. Borrower's compliance with accounting, financial reporting, 8 Implementation Completion Report auditing, procurement and progress reporting requirements was generally satisfactory. Borrower compliance with legal covenants in the Development Credit Agreement was also satisfactory.
H. Assessment of Outcome
24. Considering the achievements of the various project components, the overall project outcome is considered satisfactory. The project reached most of its physical targets (see Annex B, Table 12). However, it made only negligible contributions to WID and institution building goals, particularly in fish stock assessment and management. It achieved its objectives of increasing fish catches (although the incremental annual fish landings of 9,200 tons were below the 11,000 tons envisaged in the SAR) and raising incomes of project beneficiaries (financial rates of return range from 30-55 percent depending on size of production unit) (Annex B, Appendix B, Tables 10-11). A strong, independent, private, small- scale fishing and marketing sector was developed, improving at the same time the financial position of the cooperatives/societiesparticipating in the project. This has caused private small-scale fishing to expand at a pace which is probably unique in the world. A rapid switch towards private marketing coincided with the expansion of traditional small-scale fisheries along the Red Sea and the Gulf of Aden coasts. This success was also made possible by the supply of boats and equipment (e.g., outboard engines) for small- scale fisheries supported by the Credit component implemented by CACB. The construction of village facilities, such as the ice plants, under the EU-financed infrastructure component has helped improve fish processing and reduce losses due to spoilage. The access roads built contribute to improving the efficiency of domestic and export marketing by facilitating the access of traders to fish auctions. The pilot WID centers will help upgrade the skills of women in the fishing villages of Fokum, Imran and Shuqra and create opportunities for them to improve their economic position. With ice availability and the rapid growth of private fish marketing, fish is now available in most inland cities where it was not available in the past.
I. Future Operation
25. GOY submitted a request in 1998 for a follow-on fisheries project. IDA's position was to prepare a strategic review of the fisheries sector before considering further investment support. This has led to the preparation of the Fisheries Strategy Note, prepared jointly with GOY, utilizing findings from field consultations and the EU-financed Fisheries Sector Review as basis. The Strategy Note is expected to be discussed at a joint workshop between GOY and the donors, and planned for May 2000. The two key recommendations of the Note are that a future operation should concentrate on fish stock management to maintain catch levels and, consistent with this, expanded production should be de-emphasized in favor of improved quality, marketing, and value-added activities.
J. Key Lessons Learned
26. The key lessons learned from the project are the following:
(a) Sustainability of village infrastructure facilities requires securing beneficiary commitment to contributing not only to the capital costs but also to financing O&M costs. Under the project, the successful privatization of two village facilities by first renting them and then transferring ownership to the benefiting cooperatives/societies,has been the right approach. Rental arrangements provided a basis for PIU to evaluate the technical, financial and administrative capacity of the benefiting cooperatives/societies and their state of readiness before final ownership transfer. There are now four village facilities that are still under rental but expected to be transferred to the beneficiaries shortly. Implementation Completion Report 9
(b) Expanding fish production requires commitment to improving resource management. This project, and the four fisheries development projects previously implemented concentrated mainly on expanding fish production and were generally successful at this. There is a danger however that this success may lead to overexploitation of fish resources which, if not addressed through the development of better regulatory and resource management capacities, could become self defeating.
(c) Reduced PIU autonomy through MFW involvement in the day-to-day running of project activities can have detrimental effects on implementation. Under the project, especially during the period 1995 and 1996, PIU was unable to make project decisions because MFW refused to support its role. Had this hiatus not taken place, the project would have been completed sooner and with all funds fully disbursed.
(d) Donor cooperation in developing a common approach to implementation was crucial to guaranteeing project survival and eventual success. Under this project, the united approach of the Bank, EU and IFAD allowed a common position on implementation and policy matters and enhanced donor leverage on supervision, especially since EU funds were grant financed. Also, donor flexibility and quick response to changes in the project environment and project needs, in some cases allowed for switching of project resources to other more appropriate purposes.
(e) Ensuring a proper fit between project objectives and activities is essential. The project showed that addressing capacity building and stock assessment/ management objectives with technical studies is not adequateto ensure success.
(f) Contracting all TA under a project to a single firm can have significant advantages but it can also have distinct disadvantages for the client, as was the case in this project, because the single firm contract allowed little room to change the TA experts in cases of unacceptable performance. 10 Implementation Completion Report
IMPLEMENTATIONCOMPLETION REPORT
REPUBLIC OF YEMEN FOURTH FISHERIES DEVELOPMENTPROJECT (CREDIT 2265-YEM)
PART II: STATISTICAL TABLES
Table 1: Summary of Assessments Table 2: Related IDA Credits Table 3: Project Timetable Table 4: IDA Credit Disbursements: Cumulative, Estimated and Actual Table 4A: Disbursements from the European Union (EU) Grant Table 4B: Disbursements from the IFAD Loan Table 5: Key Indicators for Project Implementation Table 6: Key hidicators for Project Operation Table 7: Studies Included in Project Table 8A: Project Costs Table 8B: Project Financing Table 9: Economic Costs and Benefits Table 10: Status of Legal Covenants Table 11: Compliance with Operational Manual Statements Table 12: IDA Resources: Staff Inputs Table 13: IDA Resources: Missions
ANNEXES
A. Mission's Memorandum of Understanding B. Financial and Economic Re-Evaluation C. Project Review from Borrower's Perspective D. Comments from Government Implementation CompletionReport 1]
PART II: STATISTICALTABLES
Table 1: Summaryof Assessments
A. Achievementof objectives Substantial Partial Negligible Not Applicable
Macro policies A F
Sector policies F 7 m E
Financialobjectives m L
Institutionaldevelopment 7 FT]
Physical objectives
Poverty reduction z F
Gender issues El W
Other social objectives EZ
Environmentalobjectives FTI
Public sector management FT]
Private sector development(coop.)
Other (specify) K]
B. Project sustainability Likely Unlikely Uncertain
Highly C. Bank performance Satisfactory Satisfactory Deficient
Identification [ Fl0
Preparationassistance ] K] K
Appraisal EDK]
Supervision FEK] 12 Implementation Completion Report
Highly D. Borrower performance Satisfactorv Satisfactorv Deficient Preparation [_ ] LEg] Implementation [ E E Covenantcompliance I E[ Z Operation (if applicable) [I
E. Assessment of outcome Satisfactory Satisfactory Unsatisfactory unsatisfactorv Implementation Completion Report 13
Table 2: RelatedIDA Credits
Loan/credittitle Purpose Year of approval Status
First FisheriesProject Provision of 100 traditionalboats 1973 Closed lCr. 370 - YDR) (sambuks) and constructionof a small (Cr.l 370- YDR) receiving station and coldstorefacilities (An IDA at Mukalla. supplementary credit was approved in 1975).
Second FisheriesProject To finance the constructionof a 1979 Closed l Cr 932 - YDR) fishery/generalpurpose harbourin (Cr. 932 - YDR) Nishtun, including a fish processing and storage complex, village facilities, fishing vessels and outboardengines, and technicalassistance.
FisheriesDevelopment Provisionof credit facilities to artisanal 1980 Closed Project fishermen for the purchase of traditional l(Cr 1025 - YAR) fishing vessels, impact of marine (Cr. 1025 - YAR) enginesand modem vessels, and the constructionof an artisanal fishing port and related facilities in Hodeidah, as well as for the constructionof fish processing facilitiesin Khawbah.
Third Fisheries Establishinga FisheriesManpower 1982 Closed DevelopmentProject DevelopmentCenter to provide training (Cr. 1274 - YDR) in marine engineering,navigation and fish processingtechnology; managementtraining for government fisheriespersonnel. Provide fish receiving stations,engine maintenance and net repair facilitiesin five fishing communities. 14 Implementation Completion Report Table 3: Project Timetable
Steps in project cycle Date planned Date actual/
______1~ Llatest estim ate Identificationa1 December, 1987 Preparationb/ December, 1988 Appraisal September, 1989 November, 1989 Post Appraisal March 1990 Negotiationsc/ June 11-15, 1990 Post Negotiationsdl March 11-14, 1991 Board Approval September 18, 1990 May8,1991 June 13, 1991 Signing June 20, 1991 Effectivenesse! October22, 1991 March 31, 1992 July30, 1992 June 30, 1992 Midterm review June30, 1994 April 17-24, 1996 February 14, 1997 Project completion December31, 1998 December 31, 1998 Loan closing June 30, 1999 June 30, 1999
Jointly by IDA and FAO/CP. b! Carried out by FAO/CP. Site investigations and technical preparation of shore and marine facilities were carried out under FAO/CP assistance during September/October1988. HHeld in Washington. d/ Post negotiation mission held in Brussels. e/ IFAD: declared loan effective as of July 30, 1992 (Agreementdated April 2, 1991).
Table 4: IDA Credit Disbursements: Cumulative, Estimated and Actual (US$ million)
Fiscal Appraisal Actual as % of Year Estimate Actual Cumulative Estimate 1993 0.4a' 0.2 0.2 50 1994 1.9 2.3 2.6 121 1995 4.6 1.0 3.6 22 1996 7.0 1.6 5.2 23 1997 9.3 0.7 5.9 8 1998 11.6 0.4 6.3 3 1999 13.0 0.9 7.2 7 2000 13.2 0.8 8.0 6
Date of Final Disbursement: November 30, 1999
Cancellationb/
a/ PPF advance of US$ 350,000. bs An estimated US$ 5.2 million will be cancelled. Implementation Completion Report 15
Table 4A: Disbursements from the European Union (EU) Grant
Year Amount (Euro) 1992 954,172 1993 448,613 1994 472,187 1995 3,284,193 1996 3,247,410 1997 4,116,562 1998 100,938 1999 196,714
TOTAL 12,820,789
Balance: 13,900,000 Euro - 12,820,789 Euro = 1,079,211 Euro
ExpendituresBy Category Amount (Euro) Civil Works 9,341,948 Equipment 135,881 Consultant 3,342,960
TOTAL 12,820,789
NOTE: 1995-1997: 1 Euro = 1.15 USD on average.
Table 4B: Disbursements from the IFAD Loan
Fiscal Amount Year (US$) 1994 1,752,064 1995 5,169,628 1996 109,276 1997 194,176 1998 86,937 1999 250,075 2000 89,643
TOTAL 7,651,799a;
a/ The discrepancy between the sum of the actual disbursements per year and the original IFAD loan (expressed as US$6.5 million based on the prevailing exchange rate then) came from fluctuations in the SDR value. 16 Implementation Completion Report Table 5: Key Indicators for Project Implementation
Key ImplementationIndicators SAR Actual Remarks in SARIPresident's Report Estimate l A. Village and Fish Processing Facilities Civil Works - Fish Receiving Sheds 5 units; 1,100rn 2 6 units; 1,250 m2 l - CooperativeOffices/Store 2 units; 206 in2 6 units; 206 m2 Of which about 60 m2 for offices and 146 m2 for stores. - Engine Workshops 5 units; 310 mr 2 Provided under Japanese bilateral assistance (total of six). Container full equipped put in place in Mukalla and Shihr in the project area, as well as in Bir Ali, Al- Hudaida, Ahwar and Shuqra outside the project area. - Boat Repair Area 5 units; 760 m2 Funds not available because of underestimateof costs. 2 - Vehicle Shade I unit; 207 m - Not required. - AccessRoads Fokum-RasImran 15 km 15 km Completed asphalted. Al Quarn 4.5 km 9.6 km financed under By June 99, 3.2 km EU's Food Aid Counter asphalted.The remainder Part (FACF) completedby Oct. 99. Fokum Branch Road - 1.8 km Completedasphalted. Shuqra Branch Road - 1.1 km Completedasphalted. Musainah 1.75 km - Detailed designs were not submitted in time. IDA cancelled this component. - ElectricalInstallation 6 sites 6 sites Completed. - Fresh Water Supply 5 sites 4 sites In Shihr both fresh and sea water supply. - Sea Water Supply 2 sites 3 sites - Sewerage 6 sites 6 sites - Fish Market Rehabilitation I site (Mukalla) - New fish market built by the Municipalityof Mukalla. - Fiberglass ConstructionYard One unit at CFC - Not needed. At the same time four private boat builders are now operating in Hadramaut. - Staff Housing I site; 110 mr 2 Not needed as built by NCFM for their staff 2 - Fencing I site; 370 m ... Not done at project completion. However EU funds are still availablefor this activity.Works expected to be completedby end 99. Equipment - Ice Plant One unit 15 tons/day 8 units Each 10 tons/day capacity in Musainah (2 units each in Shihr and Musainah). - Ice Store 4 units 8 units Each 10 tons/day capacity (2 units each in Shihr and Musainah). - Chill Store 5 units 6 units 5 tons capacity for fish, plus ice. Implementation CompletionReport 17
Table 5: Key Indicatorsfor ProjectImplementation (Continued)
Key implementationindicators SAR Actual Remarks in SARI President'sReport Estimate - Generator 3 sites 5 units Three for the fisheries facility and 2 extra (of 239 kW capacity) for electric supplyto the village in Musainahand in Al-Qam.
B. TransportFacilities - InsulatedVehicles (5-8 tons) 16 Cancelled at MTR as the pnvate - RefrigeratedTrucks (10 tons) 6 sector was independentlyable to procure these kinds of vehicles. - Workshops Equipment/Machinery n.a. n.a.
C. FishingVessels and Gear - GRP Boat (7.6 m) Not directly implementedby the - GRP Boat (9.4 m) project. However, fishermen l320 { { were able to procure fiberglass 320 ... boats of different types themselves through either credit or proper financialresources. - Wooden Sambuks (14 m) 50 ... Same as above. Currently, fiberglass sambuks are replacing the wooden ones. - IntermediateTech. Vessels 4 - Cancelled.Donors realized that (18-20 m) the CFC could not dedicate the time required for this activity, jeopardisingthe economic financialviability of the IntermediateTech. Vessels. -Outboard Engines 15 HP A total of 1,700outboard 25 HP { 2,400 { 1,700 enginesprocured and 922 40 HP actually sold as of 30 June 1999. - Fishing Gear Various Types VariousTypes To be procured for the CFC. - Lobster Traps 12,000 - The CFC component was drasticallyreduced and this sub- component also cancelled.
D. Credit - MFW RevolvingFund US$ 3.0 million US$ 3.0 million
E. Fish Stock Assessment - Field Surveys Coastal Habitat Coastal Habitat Completed. - Habitat Survey Aden Harbor Aden Harbor Completed. - Hodeidah Research Centre/Branch Upgrading ... Cancelled because included under the GEF programme.
F. Training - Initial Training See Appendix B, Table 3
G. TechnicalAssistancea' 416 Staffmonths 441 Staff months a/ See Appendix B, Table 2 for details. 18 Implementation Completion Report Table 6: Key Indicators for Project Operation
1. Key operating indicators in E SARlPresident'sReport Estimated Actual Not identifiedat Appraisal.
Table 7: Studies Included in Project
Purpose as defined Study at appraisal/redefined Status Impact of study
I. MonitoringControl and Improvementand Completed The report recommendedto decide Surveillance(MCS) management of the Fisheries on a common approach to improve (EU).a Sector in Yemen through MCS and requested the donors of increased MCS. the FFDP Project to reallocate remaining funds for it. No action. GOY proposed other uses for the funds. 2. The Role of MFW, and To reorganize the duties of Completed Proposed staffing structure of the the Organisational the MFW. MFW administrationand general Structure and Staffing department. GOY to review Necessary to Carry out proposals. No action taken. that Role (EU).a 3. Report on the Operation To review and provide advice Completed Intermediate technology vessels of Intermediate on the management and dropped from the project because of Technology Fishing operation of the vessels. findings. Vessels by Coastal Fisheries Corporation (EU).a 4. Marine Resources State of the cuttlefish fishery Completed Recommended to lirnit fishing effort SituationReports in Yemen. to 2,000 fishingdays/year to catch (EU).a up to 2,000 ton/year. Not implemented. 5. Activitiesof the Fisheries To help establishingan Completed Very poor technical report. No StatisticsDepartment, efficient Data Base System action by the MFW. MFW, and for the MFW. Recommendationsfor Improvement (EU).a 6. Coastal Habitat Survey of To assess the state of Completed Follow-up the recommended the Gulf of Aden (Phase I) biodiversityand human actions. (Appr.) (EU).b impacts on the coastal and marine habitats and ecosystems of the Socotra Archipelago. 7. Coastal Habitat Survey of Completed The result of the study has allowed the Gulf of Aden, Final an assessment of the existing and Report (Phase I) Socotra potential resource/userconflicts that Archipelago(Appr.) threaten the archipelago's marine (EU). biodiversity.
Not included in SAR. b' Included in SAR. Implementation CompletionReport 19
Table 7: Studies Included in Project (Continued)
Purpose as defined Study at appraisal/redefined Status Impact of study 8. FinancialRe-appraisal Re-appraisingthe Completed MFW/PIU did not agree with of Fish Receiving expectedperfonnance of proposed recommendationon Centres (EU).a/ the Fish Receiving Centres the basis of poor technical and propose financial quality. arrangementfor those emnbarkingsuitable changeson their management. 9. Analytical and Assessing current financial Completed Helped to decide on the hand- Evaluatory Report on position of each over operation (good and well the Conditionsof the cooperative/society received report). Fisheries Co-operatives carried out by local and Societiesin consultants. Hadramautand Al- Mahara Govemorates (EU).a/ 10. Progress Report on the Prepare the basis for the Completed Recommendationsimplemented. Consultancy for the WID componentunder WID Project FisheriesIV. (UTF/YEM/008/YEM) (IFAD).a/ 11. Fish Stock Evaluation Included a two-phase Completed Being implemented.Findings to ConsultancyReport programme.During the be presented at the May 2000 (IFAD).al first phase, a quick FisheriesStrategy Workshop. assessmentwould be carried out on the basis of data currentlyavailable. The second phase to satisfy future stock assessmentrequirements, covering design and implementationof a new catch statistics system and a long-term stock assessmentprogranmne. 12. Fisheries Sector Reviewing and updating Completed Recommendationsnot accepted Review (EU).a/ the fisheries subsector by the PIU and the reports need situation carried out in to be revised by the consultants. 1993. a/ Not included in SAR. 20 Implementation Completion Report
Table 8A: Project Costs
Appraisal estimate (US$M) Actual/latest estimate (US$M) Local Foreign Total Local Foreign Total costs costs costs costs Item 1. Civil Worksa/ 3.9 6.4 10.3 n.a. n.a. 15.7 2. Machinery & Equipmentb/ 0.2 3.8 4.0 n.a. n.a. 0.9 3. Fishing Vessels and Gear 2.0 16.5 18.5 n.a. n.a. 6.5 4. Consultant & TA 1.9 5.1 7.0 n.a. n.a. 6.3 TOTAL 8.0 31.8 39.8 4.2 25.2 29.4 al Including roads. b/ Including vehicles.
Table 8B: Project Financing
Appraisal estimate (US$M) Actual/latest estimate (US$M) Local Foreign Total Local Foreign Total costs costs costsa costsSal Source IBRD/IDA 0.8 12.4 13.2 0.5 7.7 8.2 IFAD 0.5 6.0 6.5 0.3 4.1 4.4 EU 2.9 13.4 16.3 2.9 13.4 16.3 Domestic contribution 3.8 - 3.8 0.5 - 0.5 TOTAL 8.0 31.8 39.8 4.2 25.2 29.4
Mission's estimates. Implementation Completion Report 21
Table 9: Economic Costs and Benefits
Unit SAR Estimates | ICR Estimates
A. Project Beneficiaries No. 3,500 910a' B. IncrementalAnnual Fish Landings Tons 11,000 9,200 C. FinancialRates of Returnb' - GRP 7.6 meters % 46 3 - GRP 9.4 meters % 44 3 - Sambuk % 56 n.a. - Intermediate Technology Vessels % 24 n.a. - Production Unit of Six Boats % n.a. 55 D. EconomicRate of Returnb - Project as a Whole % 31.0 15.4 - Road Component % 13.0 17.5 - Intermediate Technology Vessels % 15.0 n.a.
a/ Only boat owners (with an average of 3 fishermen per boat, making it a total of 2,730 fishermen) . b/ Financial and Economic Rates of Return. Ex-post financial rates of return have been estimated for Models A and B on the basis of assumptions presented in Appendix B, Tables 10 and 11. Financial returns on investment undertaken by the boat owners and including the capital cost of boats, outboard engines any years have been assessed at 55% and 30% for the "Production Unit of Six Boats" and the "Single Boat Fishing Operation" respectively. These values, in line with SAR estimates, clearly indicate the financial viability of artisanal fishing operations in Yemen. The overall ERR for the project is estimated at 15.4% (Appendix B, Table 19) which, although considered satisfactory, is well below the ERR of 31% assessed at appraisal. Major factor that have negatively affected the economic impact of the project include less than expected increases of annual fish landings, i.e. about 20% below the SAR estimate and the longer project implementation period. A separate economic analysis has been carried out for the road component and the relative ERR has been assessed at 17.5%, i.e. 4.5 points above the SAR estimate. Details on both the ex-post financial and economic analysis are presented in Appendix B. 22 Implementation Completion Report Table 10: Status of Legal Covenants
Original Revised Covenant Present fulfillment fulfillment Description of Agreement Section class status date date covenant Comments Cr. 22650 2.02(b) 01 C - Borrower to open Special Account. In compliance 3.02(a) 05 C - - Borrower to maintainPIJU satisfactory to In compliance IDA. 3.02(b) 05 C 09/30/1993 - PIU to appoint Accountant, Procurement In compliance Officer and Engineer satisfactory to IDA. 3.02(c) 05 C - - GOY to appoint Steering Committee. In compliance 3.03(a) 10 C - GOY to adequately consultwith In compliance cooperativesconceming design and financial implications of village facilities prior to signing constructioncontract. 3.03(b) 03 C - - Facilitiesunder Part A of the Project In compliance (exceptthose constituting infrastructure)to be transferredto co-ops on terms satisfactoryto IDA. 3.04(a) 10 C - GOY to initiate hire-purchase scheme for In compliance cooperativelyowned vessels. 3.04(b) 02 CP - - GOY to improve financialposition of Ongoing fisheries cooperatives. 3.07(a) 03 C - - MFW to open Special Fund with CACB In compliance satisfactoryto IDA. 3.07(b) 02 C - - MFW to make special depositto Special In compliance Fund to compensate impact of negative real interestrate and inflation. 3.08(a) 09 C - - Provide a Quarterly Report. In compliance 3.08(b) 09 CD 06/30/1994 - Provide InterimReport. In compliance 4.01(b) 01 NC 06/30/1994 - Provide unaudited copy of audit of MFW, IDA agreed CFC is CFC and MSRRI by April of each year, no longer requiredto and audited copy in September. provide audit reports.
Status: C - Compliedwith SOON - ComplianceExpected in Reasonably Short Time CD - Complianceafter Delay CP - Complied with Partially NC - Not Compliedwith NYD - Not Yet Due
Covenant Class 1. Accounts/audit 2. Financial performance/generaterevenue from beneficiaries 3. Flow and utilization of Project funds 4. Counterpart funding 5. Management aspects of the Project or of its executing agency 6. Environmentalcovenants 7. Involuntary resettlement 8. Indigenous people 9. Monitoring,review and reporting 10. Implementation 11. Sectoral or cross-sectoralbudgetary or other resource allocation 12. Sectoral or cross-sectoralregulatory/institutional action 13. Other Implementation Completion Report 23
Table 11: Compliancewith OperationalManual Statements
Statement number and title I Describe and comment on lack of compliance
No deviationfrom applicableoperational statements observed.
Table 12: IDA Resources: Staff Inputs
Stage of Planned Revised Actual project cycle Weeks US$'000 Weeks US$'OOO Weeks US$'000 Through Appraisal 145.1 181.7 Appraisal-Board 20,2 62.1
Board- Effectiveness | Supervision 149.0 468.7 Completion 6.0 27.0 TOTAL n.a. n.a. n.a. n.a. 320.3 739.5 24 Implementation CompletionReport
Table 13: IDA Resources: Missions
Performance rating
Stage of Number Specialized Implemen- Develop- project cycle Month/ of Days in staff skills tation ment Types of year persons field represented' status objectives problems'
Identification" November 1987 4 21 FS, CE, NA, MS
Preparationr December 1988 6 19 FS, E, FA, CE, TS, NA
Appraisal November 1989 8 n.a. IS, HRS, TC, FA, FE, FC, CE, NA
Post Unification December 1990 1 n.a. E Discussion
Supervision:
1 June 1991 3 n.a. E, IS,NA I
2 July 1992 2 11 E, FE 2 1 SP
3 June 1993d' 1+2 7 FE, FS, A 2 1 F, C, M, L
4 April 1994 I - FE 2 2 F, C, P
5 March1995 2 13 FE,E S S F,C,M,P
6 November 1995 2 8 E, FE U S P, T, TA, F, M, E
7 April 1996" 2+2 8 E, FE, FS, A U U P, T, TA, E
8 (MTR) February 1997d' 2+2 12 E, FE, A, FS U U P, M, C, F
9 July 1997"' 3+3 8 E,FE,PO,A,FS,E S S T, SA
10 Feb./March 1998d' 2+1 12 E, PO, PC S S T, SA
11 September 1998 2 1 E, FE S S T, SA
12 Oct./Nov. 1998 3 10 E, FE, FS S S T, SA
13 May 1999 2 10 E, PO S S T,SA
ICR" June/July 1999 1 14 E S S
P: Procurement Progress; F: Financial Performance; T: Training Progress; E: Environmental Aspects; TA: Technical Assistance; M: Management; S: Satisfactory; U/3: Unsatisfactory; L: Legal Covenant; SP: Studies Progress; C: Counterpart Funds; SA: Fish Stock Assessment. bl E: Economnist; FA: Financial Analyst; FE: Fisheries Economist; F: Fisheries Specialist; NA: Naval Architect; IS: Institutional Specialist; HRS: Human Resources Specialist; TS: Transport Specialist; CE: Civil Engineer; MS: Marketing Specialist; A: Administrator EU; PO: Project Officer; PC: Project Controller (IFAD).
C/ Carried out by FAO/CP. d The mission comprised members from the EU and IFAD.
The mission comprised members from the EU and FAO. ANNEX A
IMPLEMENTATION COMPLETION REPORT
REPUBLIC OF YEMEN
FOURTH FISHERIES DEVELOPMENT PROJECT
(CREDIT 2265-YEM)
MISSION'S MEMORANDUM OF UNDERSTANDING REPUBLIC OF YEMEN
FOURTH FISHERIES DEVELOPMENTPROJECT (CREDIT 2265-YEM)
MISSION'S MEMORANDUM OF UNDERSTANDING
LMPLEMENTATIONCOMPLETION MISSION JUNE 23 TO JULY 8, 1999
A. INTRODUCTION
1. A World Bank (WB)/FAO/CP mission led by Mr. R. Suppa (Economist) visited Yemen from June 23 to July 8, 1999 for the preparation of the ICR for the above project. The mission held meetings in Sana'a with Mr. Abdul Rahman Tarmoum, Vice Minister of Planning and Development (MOPD), Dr. Abdul Bari Fakhri, Assistant Deputy Minister of Fish Wealth (MFW), Mr. Rainer Fruend, Representative of the European Union (EU) in Yemen, Mr. Mohammed Othman, DG, Credit Section of the Cooperative and Agricultural Credit Bank (CACB), and Mr. Naji Abu-Hatim, Project Officer of the WB Resident Mission. Before leaving Sana'a, the mission held debriefing meetings with Mr. S. Mahdi, FAO Representative and Mr. G. Brizzi, WB Resident Representative in Yemen.
2. After its arrival in Mukalla and together with staff of the PIll, the mission visited the fishing villages of Mukalla, Shihr, Diss Al-Hami Al-Qam, Quaseyer and Musainah. It met with the chairmen of the cooperatives and societies of these villages and recorded the appreciation of the fishermen for the village facilities constructed under the project. This included the electrical distribution networks in Musainah and Al-Qam expected to be inaugurated in early July 1999. Discussions were held with the contractor and supervisor of the ongoing construction of the road connecting Al-Qam with the main road. The mission also had the opportunity of following the preliminary negotiations between the PIU and related cooperative/society for the privatization of the fisheries village facilities in Shihr and Mukalla. Intensive working sessions were held in Aden with the PTU staff and visits were made to the completed women training centers in Imran, Fokum and Shuqra, as well as to the newly completed Fokum-hnran Road also expected to be inaugurated in early July 1999.
3. The mission acknowledges the cooperation and courtesy extended by GOY and its agencies. Special thanks and appreciation are due to Dr. Omar Awadh Subeih, Director-General of the PIU and his staff, for providing comprehensive data and elaborating the project's performance and progress. The mission also wishes to express its gratitude to Mr. S. Mahdi and the staff from FAO/CP for the support received during its stay in Yemen. Preliminary impressions and findings of the mission are presented below and are subject to modification following detailed analysis.
B. BACKGROUND
4. The project was desigped in the late 1980s to address a number of constraints defined in the Fisheries Sector Survey published in 1989. Identified in November 1987, the preparation of the project started in December 1988 within the context of extensive sector dialogue between IDA and the Government of ex-PDRY. The project was appraised in November 1989, prior to the unification of the two Yemen Republics, which took place in May 1990. Subsequently, an IDA mission visited the Republic of Yemen (ROY) in December 1990, to assess the changes which had taken place in the fisheries sector as a result of unification. Although some minor changes were made to the project's design and to the implementation arrangements, the overall concept, objective and scale of the project remained unchanged continuingto focus on the sector's requirements on the southern coast of Yemen.
5. The main objectives of the project were to: (i) expand fish catches and improve processing, for both local consumption and export; (ii) improve the efficiency of the domestic and export marketing of fish, notably through investments, policy changes and adjustments in the institutional performance of cooperatives; (iii) improve the assessment and management of the fish resources; and (iv) help improve the position of women in fishing communities.
6. To achieve these objectives, the project was designed to provide for: (i) construction of primary facilities for fish handling in seven villages and of a road between two fishing villages to improve access; (ii) import of intermediate technology vessels, construction material for fishing boats, outboard engines and fishing gear, and a fleet of insulated and refrigerated trucks and plastic boxes for fish marketing; (iii) technical assistance for the Coastal Fisheries Corporation (CFC), the National Corporation for Services and Fish Marketing (NCSFM), cooperatives and MFW; (iv) strengthening MSRRI fish stock assessment and resource management program and environmental research capability; and (v) services for women in fishing communities.
7. The total cost of the project, to be implemented over a period of seven years, was estimated at US$39.8 million, with a foreign exchange component of US$31.8 million. The cofinancing arrangement included an IDA credit of US$13.2 million, a loan from IFAD of US$6.5 million, a grant from the EU of US$16.3 million, and GOY's contribution of US$3.8 million.
8. IDA had financed three fisheries projects in Southern Yemen and one in Northern Yemen. In response to GOY's request for continuing support to the traditional fishing subsector, 1DA carried out a review of the ex-PDRY fisheries sector which led to considerable discussions with GOY on sector development policies and issues. The FFDP was essentially a follow-up to the prior IDA-financed projects providing this time adequate support to the on-going sector adjustment process and, in particular, to the institutional development in the artisanal fisheries sector. While the earlier IDA-financed projects focussed on the development of the fisheries villages along the western part of the country's southern coast, the FFDP was designed to finance village facilities along the eastern part of the coast, with the aim of providing assistance to the poorer sections of the fishing community, with special emphasis on improving the position of women to alleviate their social and economic constraints.
C. IMPLEMENTATIONEXPERIENCE
General
9. The project experienced some modifications in relation to its original appraised design. Most important, the Quaseyr site was dropped in 1995 following a negotiation with the contractor to reduce the contract price to a figure within the budget. The Project Steering Committee (PSC) decided in 1994 to cancel the construction of the foreseen 320 GRP boats to be handled by the Coastal Fisheries Corporation (CFC) because of the emerging private sector capable of importing the required material. The construction of the 50 wooden sambuks was also cancelled because this activity is currently well operated by some private boat builders in the project area. The intermediate technology vessels were not introduced. The PSC, although recognizing the utility of the activity, cancelled the component on the assumption that the CFC would not be able to operate these vessels efficiently and therefore complete the program -3- successfully. The transport facilities component was cancelled at MTR realizing that, during the course of the early years of the project, private traders became independently capable of procuring these kind of vehicles. Finally, the rehabilitation of the fish market in Mukalla was dropped following the decision of the municipality to grant the construction of a new fish market to the private sector.
10. The WB Country Portfolio Performance Review, dated October 1996 rated the project as unsatisfactory because only 40% of the available funds had been disbursed over a period of five years. However, since early 1997 (IDA supervision mission, Memorandum of Understanding dated February 24, 1997) the project, in relation to its development objectives, has remained satisfactory. The same applies to the physical implementation progress ratings and in particular to the village and fish processing, and the fishing vessels and gear components of the project. The training and the fish stock assessment components remained seriously delayed but are now expected to be completed under IDA financing. However, at its completion, the implementation of the project as a whole is rated satisfactory. Details on the implementationexperience by project component, is described below.
Village Fisheries Facilities
11. The construction of the village facilities including fish receiving sheds, ice plants, stores and chilled stores were completed by mid 1997. The mission was pleased that these facilities financed by the EU have all been finally handed over, on a rental basis, to the intended beneficiaries i.e., the cooperatives and societies, after assessment of their administrative, financial and technical capabilities to operate and manage the facilities was confirtned. However, GOY agencies are still assisting some cooperatives/ societies in their management. This is the case of less competent cooperatives/societies in Al-Musaynah and Al-Sayhut which are temporarily managed by NCSFM and CFC. At the same time, the cooperatives/societiesof Al-Mukalla and Al-Shihr have been very successful in managing their activities and are currently negotiating with the PIU the complete privatization of their respective village facilities. This process is expected to be successfully concluded by the end of 1999.
Fokum-Ras Imran Road
12. The construction of the Fokum-Ras Imran Road, which was initiated in 1998, has been completed for its total length or 16.7 km, and includes the extension road of 1.8 km. This allows access to the village of Fokum where fisheries facilities, including an ice plant, were built under the IDA-assisted Third Fisheries Project (Cr. 1274-YDR).As this extension was not foreseen at appraisal, IDA was pleased to provide its "no-objection" to implementation. Final payments for both the main road and the Fokum extension have been made by the PIU at a total cost of US$2.64 million, or about 27% more than appraisal estimate. The cost increase is attributable to the need for new design to incorporate modifications to the original one carried out ten years earlier i.e., large sections of loose soils which required unforeseen soil stabilization treatments, and wider width of the road from 6m to 7m. It is expected that the road would be inaugurated in early July 1999. -4 -
Outboard Engines and Gear
13. The sale of the remaining outboard engines to the fisheries cooperatives and societies continue satisfactorily because of the strong demand from fishermen. Concern remains about the distribution of the 25 HP (Selva) engines for which fishermen in the project area have clearly indicated their reluctance to procure. It seems, however, that these engines would be more suitable in the Red Sea area and the PIU is actively exploring this possibility by distributing some of these engines to selected fishermen on a trial basis. The following shows the status of distribution of the outboard engines to date:
OutboardEngine UnitPrice Number Numberin Type (YR) j Imported Number Sold stock 15 HP Yamaha 123,678 1,250 815 435 40 HP Yamaha 245,298 100 100 -- 25 HP Selva 152,380 350 7 343
14. The possibility of appropriately disposing of the remaining stock of engines and gear was discussed with the PrU and the mission was informed that after the last IDA supervision mission, the PIU took action to investigate whether CACB seriously intended to take possession. CACB replied proposing the following solutions; (i) acquisition of the 15 HP Yamaha engines with a reduction of 25% of the value to cover expenses; (ii) acquisition of the engines with a reduction of 35% of their value allowing CACB to deposit the money obtained from the sale in the PIU special account; and, (iii) acquiring the Selva engines on behalf of the PLU charging, at the same time, for storage and insurance before retaining 25% of the value of the equipment to cover expenses. The PIU has now called for a meeting with MFW, IDA, EU and MOPD to take a decision on the CACB proposals. This meeting is expected to take place before the end of July 1999.
15. As to funds collected as of June 1999 from the sale of equipment, including spare parts, the following amounts have been deposited into CACB's special account:
EquipmentSold RevenueCollected (YR'000y 40 HP Yamahaengines 24,530 15 HP Yamahaengines 100,798 25 HP Selvaengines 914 Spareparts 17,579 Fishinggears 14,570
Total 158,391
Fisheries Credit Component
16. The fisheries credit component continues to provide needed finances for the purchase of equipment by fishermen. The MFW/PTU has already deposited the proceeds from the sale of this equipment, mainly outboard engines, collected as of June 1999 into CACB's special fund. To date, the amount of funds deposited is about YR 224 million or US$2.6 equivalent using the relative exchange rates at the time of transaction. As of March 1999, CACB issued 1,873 loans for a total amount of YR 374 - 5 - million. The overall Loan recovery rate is currently estimated at 68%, which is relatively low if compared with the 91% average loan recovery rate recorded in 1992.
Women Development Centers
17. To uplift the educational level of rural women and create job opportunities by acquiring the necessary knowledge and skills, the construction of a small clothing factory and the rehabilitation/ construction of a total of twenty community development centers was foreseen at appraisal. This program was considered too ambitious by the IDA supervision mission of March 1998 given the complexity of the task and, on the advice of a WID consultant, it was decided to reduce the program to allow the construction of only three of these centers at Fokum, Imran and Shuqra. The construction is now completed and these centers were handed over by the contractor to the PIU on June 18, 1999.
Other Small Civil Works
18. With the aim of utilizing remaining project funds under Category I, and to meet urgent meets of fishermen within and outside the project area, both IDA and IFAD decided in May 1998 to finance the construction of additional civil works including auction yards in Shuqra and Burum (IDA) and in Bir Ali and Al-Salif (IFAD). Furthermore, while IDA approved the construction of the Fokum and Shuqra asphalt roads of 1.6 km and 1.3 km respectively, IFAD approved the construction of the Quality Control Laboratory (QCL) in Aden, as well as the auction yards in Bir Ali and in Burum. The construction of the four auction yards has been completed and these facilities are expected to be handed over to the respective cooperative by mid July 1999. As indicated previously, the branch road to reach the village of Fokum has been completed as well as the Shuqra road. The final lengths of these roads are 1.8 km and 1.1 km respectively (para. 12). The QCL is at its final stage of construction and is expected to be handed over to the PIU in early July 1999. The installation of the relative laboratory equipment and furniture, both already procured, will be completed by the end of July 1999.
Al-Qarn Asphalt Road and Electrical Distribution Network in Al-Qarn and Musaynah
19. The Al-Qarn road, as envisaged at appraisal, was supposed to cover a length of 4.5 km and have a compacted gravel surface. In response to the PIU's request to the EU Delegation in Sana'a, it was agreed in May 1998 to finance the construction of a total 9.6 km separating Al-Qarn from the main road Mukalla-Sayhut. For this purpose, additional funds were made available under the EU's Food Aid Counter Part (FACP) programming the overall construction work in two phases. The first, corresponding to 3.2 km, was completed in March 1998. The construction of the remaining 6.4 km, foreseen under the second phase started in May 1999 and is expected to be completed by November 1999. Fishermen have greatly appreciated the decision to implement the overall road project as this will facilitate access for the fish traders to reach the village landing sites where the auction yards are located.
20. The fishing villages of Al-Qam and Al-Musaynah, with a population of 600 and 3,500 respectively, have received, under EU financing, electrical generators (installed) including power distribution lines. These generators have a capacity of 239 kw each. Villagers have already covered about 10% of the available capacity. However, the O&M costs of the generators will be met by both the cooperatives and the villages. - 6 -
D. ACTUAL PROJECT COST AND DISBURSEMENT
21. Actual project cost is estimated at US$28.4 million or about 71% of the appraisal estimate. Final overall disbursement includes an IDA credit of US$8.0 million, an IFAD loan of US$6.5 million, a grant from the EU of US$16.3 million and GOY's contribution equivalent to US$3.8 million. With regard to the IDA credit, final disbursement rate has reached 62% of the original amount.
E. ENVIRONMENTAL IMPACT
22. The preparation of an environmental assessment was not required at appraisal as the project was classified in environmental screening Category B, in line with the provision set in Operational Directive 4.00. However, the various cooperatives that took over project activities at village level were able to implement measures to protect the environment as agreed by the Bank and GOY at negotiations. These include collection of refuse such as fish heads and guts for burial in suitable areas. The same is applied to any waste (i.e., oil) from boats and engine rooms as waste is collected and incinerated. Other hazardous waste like old batteries, paints, oil rags, etc, are currently collected and transported to a disposal site.
23. To avoid exploitation of fish resources, MSRRI is continuously monitoring catch and fishing effort data. Furthermore, under the TA component and with IFAD financing, a Fish Stock Evaluation has been completed and its recommendations and proposals will be followed up by MFW. EU has recently approved the expansion of its funding (US$0.5 million) to allow MSRRI to carry out stock assessment and survey design (Section G). The IDA supervision mission of October/November 1998 specifically points out the extreme urgency of MSRRI obtaining broad assessments of the state of selected fish stocks, in view of the apparent over fishing of these stocks.
F. PROJECT OUTCOME
24. Taking into consideration the state of actual implementation of the various project components, overall project outcome is presently considered as satisfactory. However, project results can only be precisely quantified when the mission will return to FAO-Rome to carry out the detailed ex-post economic and financial analysis. Relevant data on incremental fish landings to be attributed to the project are being finalized by the PIU and are expected to be available to the mission before its departure to Rome.
G. PROJECT SUSTAINABILITY
25. Project sustainability may be defined in terms of physical works constructed, economic activities supported and management capability of institutions. Infrastructure works, including roads and electrical distribution network, were well designed and constructed on a sound technical basis. The same would apply to the various village facilities, the women development centers, and the QCL. Preliminary analysis of the fishing activities at fishermen level indicates that both the economic and financial viability would be assured throughout the project life. The hand over of the village facilities to the respective cooperatives/societies that have demonstrated their administrative, financial and technical capability to operate and manage these facilities is one of the most important elements to assure future success. Finally, as described in section H, MFW has confirmed its commitment to play an important role in actively participating in all possible programs to support the fisheries sector in the future, in line with its mandate. As described in para. 26, the EU has recently approved a program of financial assistance looking at improving and consolidating the result to date under the project. For these reasons, the project sustainability is rated as likely. -7 -
H. FUTURE OUTLOOK
26. During the last IDA supervision mission, a copy of the draft Fisheries Strategy Note was given to the Minister of MFW and his key staff for final review and to provide comments before finalizatio. The IDA mission also informed the Minister of MFW of IDA's plan to rally GOY and other donors including the EU, IFAD, and FAO active in Yemen's fisheries, around the recommendations of the draft Strategy Note to agree on directions for future development assistance to the fisheries sector. As a result of the Minister's Resolution, a preparation committee was established and held its first meeting in Sana'a on June 13, 1999 during which the PIU was instructed to contact key staff of MFW to assist in reviewing the Strategy Note and in preparing a document on the future role of the fisheries sector in Yemen which would be presented at a workshop with donor participation.
27. The PITJhas in hand a work plan for a of 12-monthperiod starting June 30, 1999 after closure of the Credit. The specific objectives of the work plan are: (i) to introduce and consolidate at a sustainable level, O&M of the six village facilities sites; (ii) to strengthen public and private Fisheries Products Quality Control Services with the aim of promoting investments in the fisheries sector and to enhance the quality of Yemen fisheries products, both in domestic and foreign markets; (iii) to support the development and implementation of concepts designed to protect coastal fishing and spawning grounds as well as enhance the research capacity of MSRRI in Aden; and (iv) to assist GOY in formulating and subscribing to a long-term sustainable fisheries sector strategy. The program, estimated at about EURO 450,000 (US$461,000 equivalent), has recently been approved by the EU and implementation is being initiated.
1. KEY LESSONS LEARNED
28. The key lessons learned from the project are the following:
(a) Delays in approval of submissions could have been avoided if more delegation of real authority were given to the PIU to play a more active and decisive role in all project activities.
(b) Technical continuity during supervision was beneficial to the project to the point that it allowed the project to survive. The same IDA staff was maintained and was never involved in matters external to the project.
(c) Under this project, the presence of different cofinanciers was also very beneficial in the sense that cofinancing arrangement allowed the independent implementation of specific project components. For example, the EU was able to continue disbursing while implementation of its respective components progressed, in spite of the fact that some delays were experienced during the implementation of other components.
(d) In retrospect, considering the overall satisfactory rating of the project, IDA did well to continue its support of the project in spite of the unexpected policy changes. Undesirable changes at political level are often taken by IDA as an excuse to suspend disbursement.
(e) The project was very well prepared, capitalizing on the implementation experience derived from the previous fisheries projects and on the active participation of GOY, cooperatives, and fishermen during project design. It has, however, proven essential that proper consultation, although sometime expensive, should be provided. - 8 -
(f) When TA is required, an early and continued evaluation is necessary in the event that consultants need to be replaced. Unfortunately, this was not necessary under the project.
(g) To staff the PIU with highly competent personnel was essential for achieving the satisfactory standard of overall project implementation.
(h) Continued support from MFW to PIll was essential to expedite project implementation. However, the project lost two years due to lack of support from MFW.
(i) Close coordination between donors was key to the project's success in ensuring that joint concerted messages were passed on the Borrower.
J. FOLLOW-UP
29. The mission discussed with the PLU about the preparation of the ICR viewing the implementation experience from the Borrower's perspective. In line with IDA guidelines, the Borrower's ICR may be incorporated in IDA's ICR but should not exceed ten pages. The mission will return to Rome on July 8, 1999. During the following three weeks, it will prepare the draft ICR that will be sent to IDA by the end of July 1999.
Date: 3 July, 1999
R. Suppa Dr. Omar A. Subeih FAO/CPEconomist Director General(PMU) MissionLeader Fourth Fisheries DevelopmentProject ANNEX B
IMPLEMENTATION COMPLETION REPORT
REPUBLIC OF YEMEN
FOURTH FISHERIES DEVELOPMENT PROJECT
(CREDIT 2265-YEM)
FINANCIAL AND ECONOMIC RE-EVALUATION IMPLEMENTATIONCOMPLETION REPORT
REPUBLIC OF YEMEN
FOURTH FISHERIES DEVELOPMENTPROJECT (CREDIT 2265-YEM)
FINANCIAL AND ECONOMIC RE-EVALUATION
FINANCIAL BENEFITS
General
1. An ex-post financial analysis has been carried out to assess the achievement of the stated objectives of the project. At appraisal, the financial analysis was carried out for the different types of boats and vessels proposed under the project and included two GRP boat models (7.6 m and 9.4 m), one Sambuk model and one model representing Intermediate Technology Vessel operation. As indicated in the text (Part I, para. 7), the wooden Sambuk boats and the Intermediate Technology Vessels were never introduced. On the contrary, GRP boats, mainly of 9.4 m, were introduced equipped with outboard engines of 15 HP and/or 40 HP. To estimate the annual income for fishermen, two different fishing operations have been analysed, corresponding to (i) a production unit of six GRP boats, and (ii) a single boat fishing unit. These two models represent the vast majority of the types of fishing activities in the project area.
Production Unit of Six GRP Boats
2. As analysed in detail in Table 8, this model represents a typical fishing operation based on a unit of six boats, all equipped with outboard engines, operating over 100 fishing days per year and with an average fish catch of 2.5 tons/day based on the following daily catches:
4.5 tons/day for 30 days = 135 tons 2.5 tons/day for 20 days = 50 tons 1.5 tons/day for 30 days = 45 tons 1.0 ton/day for 20 days = 20 tons Total 100 days = 250 tons
3. Total gross value of the annual fish landings is estimated at YR 16,250,000 taking into account an average price of fish of YR 65/kg on the basis of the following assumptions:
50 tons (20% of total category I fish landing) @ YR 120/kg 150 tons (60% of total category II fish landing) @ YR 60/kg 50 tons (20% of total category III fish landing) @YR 25/kg 2
Single Boat Fishing Operation
4. The single boat fishing operation is based on one GRP boat equipped with a 15 HP outboard engine. This activity, analyzed in detail in Table 9, is carried out over a total of 120 fishing days per year and the average fish landing is estimated at 200 kg/day. The fish catch composition is estimated to include 40% of first category fish, 40% of second category fish and 20% of third category fish. Average fish price is set at YR 77/kg on the assumption that, as indicated above, relative prices for first, second and third category fish are YR 120/kg, YR 60/kg and YR 25/kg respectively. On this basis, the gross value of the annual fish catch is estimated at YR 1,848,000/unit. Estimated Fishermen's Net Income
5. On the basis of the above, the average net annual income for fishermen is estimated at YR 2,018/fishing day and YR 1,163/fishing day for the "Production Unit of Six Boats" and "Single Boat Fishing Operation" models respectively. Detailed calculations are presented in Tables 8 and 9 and are summarisedbelow:
Production Unit Single Boat of Six Boats FishingOperation
A. Gross Value of Fish Landings - Fishing Days (No.) 100 120 - Average Fish Landings (Tons/Fishing Day) 2.5 0.2 - Total Annual Catch (Tons) 250 24 - Average Fish Prices (YRlKg) 65 77 - Estimated Gross Value of Annual Fish Landings (YR'000) 16,250 1,848
B. Operating Costs (YR'000) 6,564 1,150
C. Net IncomeBefore Labour (YR'000) 9,686 698
D. Labour(YR'000) 7,265 419
E. Net Income After Labour (YR'000) 2,421 279
F. Number of Fishermen per Unit 36 3
G. Net Income per Fisherman - Per Year (YR'000) 201.8 139.5 - Per Fishing Day (YR) 2,018 1,163
Financial Rates of Return
6. Ex-post financial rates of return have been estimated for Models A and B on the basis of assumptions presented in Tables 10 and 11. Financial returns on investmnentundertaken by the boat owners and including the capital cost of boats, outboard engines and the years of operation have been assessed at 55% and 30% for the "Production Unit of Six Boats" and the "Single Boat Fishing Operation" respectively. These values, in line with SAR estimates, clearly indicate the financial viability of artisanal fishing operations in Yemen. 3
Economic Benefits
Economic Re-evaluation
7. The economic analysis for the project as a whole as well as, separately, for the road component was carried out at appraisal. The main assumptions underlying the ex-post analysis and the methodologyfollowed are described below:
(a) Benefits. The main project benefits materialized in the form of incremental fish landings estimated at 9,200 tons/year are indicated in Table 12, where details on fish landings by cooperatives/societies for the "without" and "with" project situations are given. The estimated gross value of annual incremental fish landings in economic terms is estimated at US$6.2 million/yr (Table 18). Benefits that would derive from the 26.7 km of roads constructed under the project are estimated to reach YR 1.5 million at full development (in year 2008) (Table 13), on the assumption that the running costs of vehicles would reduce by 10% and considering a total traffic count of 4,500 vehicles per year.
(b) Standard Conversion Factor (SCF). Following the approach used at appraisal, a SCF of 0.67 has been used to convert local financial costs of non-traded items into border price terms, in order to reflect the prevailing distortions in the economy.
(c) Investment Costs. The investment costs of all project components, other than the auction yards built outside the project area and the Women Development Centers whose direct economic benefits are difficult to quantify (Table 5), were included in the overall project ERR calculation. These include the investment costs of the road component. The local costs were adjusted by applying a SCF of 0.67.
(d) Prices. Fresh fish prices, which includes first, second and third category qualities of fish, are based on Freight on Board Aden (FOB) export prices of selected species (Table 14). This is based on adjustment from Cost, Insurance and Freight (CIF) prices by deducting sea transport or related freight charges and insurance to arrive at FOB border prices at Aden port. Prices are further adjusted by adequately converting to reflect relative prices of frozen fish (Table 16) and by deducting harbor and handling charges in Aden, freezing, storage and cleaning, and local transport and icing to arrive at the economic price for fish landed on the beach (Table 15).
(e) Operating Costs. Operating costs including labour have been estimated on the basis of financial costs as presented for Models A and B (Tables 8 and 9) and multiplied by the SCF of 0.67.
8. On the basis of the above assumptions, the overall ERR for the project is estimated at 15.4% (Table 19) which although considered satisfactory, is well below the ERR of 31% assessed at appraisal. The major factors that have negatively affected the economic impact of the project include less than expected increases of annual fish landings, i.e., about 20% below the SAR estimate and the longer project implementationperiod. A separate economic analysis has been carried out for the road component and the related ERR has been assessed at 17.5% in line with the SAR estimate.
World Bank User P:\!units\mnsre\tijan\yemen\revFishlCR-AppB-TextF.doc 03/01/00 9:53 AM REI'UBLIC' OF YEMEN: FOLHrthFisheries Development Project Ann1iex13: Financialand EcoInom11icRe-evaltiation
Table 1. Summary of Refrigeration Units Established Under the Project
Site No. | Site } Descri tion } No. : Ca acity Ter erature 1 Mukalla Ice Maker I 10 tons per day FW Ice Store I 10 tons -6C t IC Chill Store 1 5 tons fish, plus ice IC ± IC
2 Shihr Ice Maker 2 10 tons per day FW Ice Store 2 10 tons -6C ± IC Chill Store 1 5 tons fish, plus ice IC ± IC
3 Diss/AI Hami Ice Maker I 10 tons per day FW Ice Store I 10 tons -6C ± IC Chill Store 1 5 tons fish, plus ice IC ± IC
4 Al Quam Ice Maker I 10 tons per day SW Ice Store I 10 tons -6C ± IC Chill Store 1 5 tons fish, plus ice IC ± IC
5 Musaynah Ice Maker 2 10 tons per day SW Ice Store 2 10 tons -6C ± IC Chill Store 1 5 tons fish, plus ice IC ± IC
6 Sayhut Ice Maker I 10 tons per day SW Ice Store I 10 tons -6C ± IC Chill Store 1 5 tons fish, plus ice IC ± IC
Notes: 1. Water temperature to ice makers assumed to be 35C. 2. Ambient air-conditions 43C db and 30C wb. 3. Capacity/Product load figures do not include heat going through the structure or infiltration. 4. All units are 20 ft containerized units.
FW = Fresh Water - SW = Saline Water but all units to be capable of operating with saline water. All ice stores contain lOt flake Ice, 5
REPUBLIC OF YEMEN: Fourth Fisheries Development Project Annex B: Financial and Economic Re-evaluation
Table 2. Summary of TechnicalAssistance
SAR Estimates | Actual ...... months).(staff.
Ministry of Fisheries Fisheries Sector Advisor 24 24 Marine Fisheries Consultants 18 18 Sub-total 42 42
Supportfor Fishery Cooperatives/Credit FisheriesCooperative/Credit Expert 30 48
Fish Stock Management Stock Assessment Specialist 30 30 Consultants 12 12 EnvironmentalScientists 8 8 Sub-total 50 50
Developmentof Women in Fisheries ExpatriateCoordinator 24 12
ProjectDesign, Technical Assistance ProjectCoordinator 60 60 Naval Architect: Boat Design 12 3 Naval Architect: Boat Procurement 3 5 Fishing Gear Consultant 6 7 ConsultingEngineers: Design 24 36 ConsultingEngineers: Constr. Superv. 129 160 NCFM: ManagementAdvisor 18 Auditorsfor NCFM, CFC and PIU 18 18 (only for PIU) Sub-total 270 289
TOTAL 416 441 RlUI' IC' 0 YIEMEN: Fourli-tlFishieries Developilmelit plroject Amiex13: F`illanlcialanid lEconomic Re-evaluation
Table 3. Training Program Actually Implemented
Core Course Content Number No. of No . of No. of Core Course Content Numtfr People No. of Courses Trainees Where Courses Course as Foreseen at Appraisal Cooperatives Cooperative Trainees During During Were Given/Remarks Days
A. Training for Cooperative Members and Employees 1. Initial Trainrilig Senior Management Coop. Organization & Management 6 2 12 1 12 PIu - Mukalla 14 Stat. and Plan. Officers Statistics and Planning Accounts Cancelled Lack of interest Accounts Officers Accounting 10 2 20 2 40 Coop. Instit., Aden + FMPC 40 - Cooperative Members Principles of Cooperation & Credit Cancelled Lack of interest 2. Refreshier Courses Drivers Fish Handling and Transport Cancelled Stat. and Plan. Officers Statistics and Planning Accounts Cancelled { Lack of funds Accounts Officers Accounting Cancelled ( fromnGOY B. Training for Processing Facilities Staff 1. Initial Trainrilng Refrigeration Mechanics Refrigeration 6 3 18 1 18 Fishing Facilities 42 Vehicle Mechanics Motor Vehicle Repairs Cancelled Provided outside project Marine Engine Mechanics Inboard and Outboard Eng. Repairs 10 2 20 1 20 Fishing Facilities 40 Cold Room Supervisors Fish Handling and Storage Cancelled { Lack of funds Skippers, Fishermen Post-harvest Care of Catch Cancelled from GOY Electric 6 I 6 1 6 Fishing Facilities 12 Gensets 3 2 6 1 6 Fishing Facilities 12 2. Refresher Courses Drivers Fish Handling and Transport Cancelled Lack of funds from GOY Refrigeration Mechanics Refrigeration 6 3 18 1 18 Fishing Facilities 42 Vehicle Mechanics Motor Vehicle Repairs Cancelled Marine Engine Mechanics Inboard and Outboard Eng. Repairs Cancelled { Lack of funds Cold Room Supervisors Fish Handling and Storage Cancelled t from GOY C. Trg. of Naval Architect Training in Naval Architecture Cancelled No request from Coops. D. Computer Training MSRRC, PIU, CALB, MFW and 5 7 35 1 35 Private Institutes 120 FMDC Staff Not foreseen at appraisal E. MSRRI Scientists Training in Marine Res. Assess. 2 2 1 2 Abroad 2 years F. Study Tours Cooperatives in Other Countries Cancelled No request from Coops. MSRRC (Short Course) 4 4 1 4 12 months PIU (Short Course) 2 2 i 2 2 months TOTAL 12 163 REI'UII, OF YFMFN: FourithFisheries Developmeiet lPr-oject Appendix 13: Financial and Economic Re-evaluation
Table 4. Total Project Costs by Category and by Year
9819 oa 92199 I 9419 9619 FinacngAenyCteoy ...... (U $ t o s n s A. IDA 757 1,830 2,587 - - - 1. Civil Works - - 564 65 168 - - - - - 331 2. Equipment - - 4,327 - 2,100 139 1,435 653 3. Outboard Engines - 44 460 43 130 - 13 13 4. Consultant&TA - 217 - - 240 - - - - 5. PPF - 240 8,178 600 1,500 834 770 1,874' Sub-total 457 2,143
B. IFAD - , b 1,300 - - - - - 1 3 00 1.Civil Works - 83 201 284 - - - - 2. Equipment - - 2,130 1,721 114 15 280 - 3. Outboard Engines - - 29 677 43 127 - - 262 4. L. Market & TA - 216 4,391 241 15 280 345 1,530 Sub-total 216 1,764
C. EU - 528 11,437 - - 3,510 3,267 4,132 1. Civil Works - 66 101 - - - 35 - 2. Equipment - - 903 4,762 530 364 542 662 118 3.TA& Engineering 1,118 525 16,300d 3,874 3,809 4,829 118 1,497c Sub-total 1,118 525 530
D. GOY's Contribution 42 197 100 339 - - - - - 1. Civil Works 7 4 29 - - 10 8 2. Salaries & Allowances - - 131 16 46 20 21 4 3. GeneralExpenses - 8 16 499 16 56 70 225 108 Sub-total 8 16 29,368 4,731 5,380 6,013 1,458 5,009 TOTAL 1,118 1,206 4,453
date as "committed". a Including US$ 0.9 million to be spent after the closing (US$0.2 million). Al-Maredah (US$0.5 million), Arqha/Hawra (US$0.3 million) and in Musaynah b Including an amount of US$1.0 million for water supply works in Bab c Estimated disbursement up to December 31, 1999. d Equivalent to ECU 13.9 million. 8
REPUBLIC OF YEMEN: Fourth Fisheries Development Project Annex B: Financial and Economic Re-evaluation
Table 5. Detailed Investment Costs to be Excluded from the Economic Analysis
Sub-component 1999 (US$) 1) Auction Yardsa - Bir Ali 38,000 - Shoqura 39,806 - Burum 31,105 - Al Salif 37,474 Sub-total 146,385
2) Women Development Centres - Fokum 50,872 - Imran 50,481 - Shoqura 58,310 Sub-total 159,663
TOTAL 306,048
Representing civil works executed outside the project area. RIPUBLIC OF YEMEN: Fourth FisheriesDevelopment Project Annex B: Financialand Economic Re-evaluation
Table 6. Estimated Project Cost by Components'
Actual SAR Total IDA IFAD EU GOY Total Components IDA |IFAD EU OY ...... milion...... US$.rni
0.9 11.0 2.6 1.0 11.4 0.3 15.3 A. Village and Fish. Process. Fac. 2.1 - 7.9 0.1 1.8 0.6 0.3 0.1 - 1.0 B. Transport Facilities + Equipment 1.7 - - 1.3 18.5 4.3 2.1 - - 6.4 C. Fishing Vessels and Gear 8.1 5.3 3.8 - 1.3 - - 1.3 - 1.3 D. Fish Stock Management - - 1.3 0.1 0.2 0.6 - 0.1 - E. Training 0.4 - - 0.1 1.0 - 0.3 - - 0.3 F. Development of Women in Fish. Com. - 0.9 - xo - 4.2 0.7 0.6 3.5 - 4.8 G. Technical Assistance 0.9 - 3.3 - 0.3 - - - - - H. Market Promotion - 0.3 - 1.2 1.2 - - - 0.2 0.2 I. Operating Costs - - - 29.4 3.8 . 39.8 8.2 4.4 16.3 0.5 TOTAL 13.2 6.5 16.3
a See Table 4 for details. b SAR: Annex 11 (page 80). c Included under TA. Rl l'UBLIC OF YEMEN: Fouth lFislheries DevelopmentProject Appendix B: Financial anidEconomnic Ite-evaluation
Table 7. Total Project Cost in Constant 1999 Terms for Economic Analysis
Years Consumer Pricea Deflators Investment Investment Index (1995= 100) in Current Termsb in Constant 1999 Terms ...... (US$'000).
1992 92.1 1.17 1,118 1,308 1993 94.8 1.14 1,206 1,375 1994 97.3 1.11 4,453 4,943 1995 100.0 1.08 4,731 5,109 1996 102.9 1.05 5,380 5,649 1997 105.3 1.03 6,013 6,193 1998 107.0 1.01 1,458 1,473 1999 108.0 1.00 4,703e 4,703
a IMF: Intemational Financial Statistics - July 1999. b See Table 4 for details and excluding investment costs as indicated in Table 5. Excluding civil works executed outside project area and the cost of the Women Development Centres estimated at US$306,048 as detailed in Table 5. I'
REPUBLIC OF YEMEN: Fourth FisheriesDevelopment Project Annex B: Financial and Economic Re-evaluation
Table 8. Boat Model A - ProductionUnit of Six Boats Estimated Net Income
A. Gross Value of Fish Landings - Fishing Days (No.) 100 -Average Landings(Tons/Fishing Day) 2.5 - Total Annual Catch (Tons/yr)a 250 - Average Fish Price (YR/Kg) b 65 - EstimatedGross Value of Annual Fish Landings (YR) 16,250,000
B. OperatingCosts - CooperativeCharges (8% of Sales) 1,300,000 - Fuel: 10 gallons/boat/fishingday @YR 160/gall. 960,000 - Oil: 2 cans ( YR 200/fishingday 40,000 - Food: 400 YR/fisherman/dayx 36 fishermene 1,444,000 - Engine Spare Parts LS (@ YR 10,000/yr/enginex 6) 60,000 - Net Maintenance(@ YR 12,000/yrx 6) 72,000 - Engine Maintenance(@ YR 5,000/yr/enginex 6) 30,000 -Boat Maintenanceand Replacement(@ YR 20,000/yrx 6) 120,000 - Net Replacement(@ YR 300,000/yr)d 300,000 - Transport of Fish' 1,625,000 - EngineReplacement (15 HP)' 300,000 - Contingencies(5% of above) 313,000
Total OperatingCosts 6,564,000
C. Net Income/UnitBefore Labour 9,686,000
D. Labour (6 fishermen/boat= 36 fishermen @ YR 201,792/yr) 7,264,512
E. Net Income/UnitAfter Labour (C-D) 2,421,488
F. Net Income per Fisherman YR 9,686,000 + 48 = YR 201,792/year or YR 2,018/fishingday
a Assuming: 4.5 tons/dayfor 30 days = 135 tons 2.5 tons/dayfor 20 days = 50 tons 1.5 tons/dayfor 30 days = 45 tons 1.0 ton/dayfor 20 days = 20 tons Total: 100days 250 tons b Assuming: 50 tons (20% of total fish landings)@ YR 120/kg (firstcategory) 150 tons (60% of total fish landings)( YR 60/kg (secondcategory) 50 tons (20% of total fish landings)( YR 25/kg (thirdcategory) C Basedon a crew of 6 fishermen/boatand a total of six boats. d Averageannual replacement cost assuming5 yrs life and a capitalcost of YR 1,500,000. Fromdifferent landing sites to auctionfloor estimatedas follows:40% of the catch, i.e. 100 tons; 25% of the valueof the fish. f Averageannual replacement cost assuming3 yrslife and a capital costof YR 150,000/engine. 12
REPUBLIC OF YEMEN: Fourth Fisheries Development Project Appendix B: Financial and Economic Re-evaluation
Table 9. Boat Model B - Single Boat Fishing Operation
A. Gross Value of Fish Landings - Fishing Days (No.) 120 - Average Landings (Tons/Fishing Day) 0.2 - Total Annual Catch (Tons/yr)a 24 - Average Fish Price (YR/Kg)b 77 - Estimated Gross Value of Annual Fish Landings (YR) 1,848,000
B. OperatingCosts (YR) - Cooperative Charges (8% of Sales) 147,840 - Fuel: 25 gallons/trip ( YR 160/gallon x 120 days 480,000 - Oil: 3 cans ( YR 200/fishing day x 120 days 72,000 - Food: 400 YR/fisherman/day x 3 fishermned 64,000 - Engine Spare Parts 10,000 - Net Maintenance (@ YR 1,000/month) 12,000 - Engine Maintenance 5,000 - Boat Maintenance and Replacement (@ YR 20,000/yr) 20,000 - Net Replacement 50,000 - Transport of Fishd 184,800 - Engine Replacemente 50,000 - Contingencies (5% of above) 54,780
Total OperatingCosts 1,150,420
C. Net Income/UnitBefore Labour (YR) 697,580
D. Labour (3 fishernen/boat ( YR 139,516/fishernan/yr) 418,548
E. Net Income/Unit After Labour (YR) (C-D) 279,032
F. Net Income per Fishermanf YR 697,580 -5 = YR 139,516/year or YR 1,163/fishingday
a Assuming:20% of first categoryfish, 40% of secondcategory fish and 20% of third categoryfish. b Assuming: 9.6 tons (40% of total fish landing) YR 120kg; 9.6 tons (40% of total fish landing) @YR 60/kg; 4.8 tons (20% of total fish landing) @ YR 25/kg. c Average of 3 fishermen per boat. d From different landing sites to auction floor estimated as follows: 40% of the catch, i.e., 9.6 tons; 25% of the value of the fish. Average annual replacement cost assuming 3 yrs life and a cost of YR 150,000 per 15 HP outboard engine. Assuming a crew of 3 fishermen and 2 shares for the boat. 13
REPUBLIC OF YEMEN: Fourth Fisheries Development Project Appendix B: Financial and Economic Re-evaluation
Table 10. Boat Model A - Production Unit of Six Boatsa Financial Rate of Return
| yrl | yr2 yr3 yr4-10 ...... (YR'000) .
A. Gross Value of Fish Landings 16,250 16,250 16,250 16,250
B. Operating Costsb 13,829 13,829 13.829 13.829
C. Net Income 2,421 2,421 2,421 2,421
D. Investment Costs - Boats 1,320 - - - - Engines 900 - - - - Gear 4 500- - Total Investment Costs 6,720 - - -
E. Net Cash Flow (4,299) 2,421 2,421 2,421
Financial Rate of Return: 55%
a Detailedanalysis for estimatingthe grossvalue of fish landingsand operatingcosts is givenin Table 8 b Includingannual replacementcosts forboats, enginesand gearsas indicatedin Table 8. 14
REPUBLIC OF YEMEN: Fourth Fisheries Development Project Appendix B: Financial and Economic Re-evaluation
Table 11. Boat Model B - Single Boat Fishing Operationa FinancialRate of Return
yr 1 l yr 2 r3 yr 4 -10 ...... (YR'000)...(YR'00
A. Gross Value of Fish Landings 1,848 1,848 1,848 1,848
B. Operating Costsb 1.569 1.569 1 569 1,569
C. Net Income 279 279 279 279
D. InvestmentCosts - Boats 220 - - - - Engines 150 - - - - Gear 750 - - - Total Investment Costs 1,120 - - -
E. Net Cash Flow (841) 279 279 279
FinancialRate of Return: 30%
a Detailed analysis for estimating the gross value of fish landings and operating costs is given in Table 9. b Including annual replacement costs for boats, engines and gears as indicated in Table 9. REPtUB3liCOF YEMI N: FouI'thFisheries DevelopmentProject Aninex n: inianicialaid Economic Re-evaluationi
Table 12. Total Fish Landings Without and With Project
Cooperative/ Without Project (1989) With Project (1998) Incremental Fishermen No. of Boats Fish Landing Cooperative/Society No. of Boats Fish Landing Fish Landings Society (No.) . (Tons) No. Tons) (Tons)
Mukalla 247 n.a. 1,697 1,900 950 7,430 5,733
Shihr 450 n.a. 3,524 2,433 1,000 5,837 2,313
Al Hami {349 {n.a. {2,363 { 1,100 { 465 { 816 - 1,547 Al Quarn
Quaseyr 369 n.a. 2,566 2,418 463 5,672 3,106
Sayhut 280 n.a. 1,374 191 102 981 - 393
Total 1,695 11,524 8,042 2,980 20,736 9,212
Source: PIU. 16
REPUBLICOF YEMEN:Fourth Fisheries Development Project AnnexB: Financialand EconomicRe-evaluation
Table 13. Economic Calculation for the Reads Component
Year j Investment Regular Reduced ance Costs'a IMaintenance Costsb Vehicles Costsc ...... ( $9 0 ......
1998 9 31 d - (931)
1999 2 ,2 9 5 d 50 - (2,345) 2000 - 180 100 (80) 2001 - 180 200 20 2002 - 180 400 220 2003 - 180 600 420 2004 - 180 800 620 2005 - 180 1,000 820 2006 - 180 1,200 1,020 2007 - 180 1,400 1,220 2008-2022 - 180 1,500 1,320
Economic Rate of Return: 17.5%
a Including: ...... (US$) . 1998 1999 Total - Al Quam 9.6 km (Proj. IV) 266,815 479,315 746,130 - Fokum-RasInran 14.2km 757,000 1,550,150 2,307,150 - Fokum Branch Road 1.8 km - 333,706 333,706 - ShoquraBranch Road 1.1km - 186.734 186.734 Total in Current Terms 1,023,815 2,549,905 3,573,720 Total in Constant 1999 Pricesd 1,034,053 2,549,905 b Basedon US$ 10,000/km/yrfor a total of 26.7 km of roadsand multipliedby a SCF of 0.67. c Based on a reduction of about 10% of total annual vehicles running costs estimated at US$ 5,000/yr/vehicle before the construction of the roads and on a total car traffic of 4,500 vehicles per year. The SCF of 0.67 has been applied. See deflectorsin Table 7. d An SCF of 0.67 has been applied to the local cost portion estimated at 30%. 17
REPUBLIC OF YEMEN: Fourth Fisheries Development Project Appendix B: Financial and Economic Re-evaluation
Table 14. EuropeanSelected Fish Prices: Frozen Fisha
US$/Kg Origin
Cuttle Fish 1.70 Spain; CIF whole
Squid 2.40 Spain; CIF bulk
Hake 1.30 Eastern Europe/Italy;CIF
YellowfinTuna 1.20 Italy; CIF 1.14 Spain; CIF 1.20 France; CIF
Skipjack 0.65 France; CIF 0.59 Spain; CIF
SpanishMackerel 1.60 France; CIF whole gutted 1.50 Italy; CIF
Mackerel 0.85 East; CIF 0.53-0.82 Poland; CIF 0.62 Bulgaria; CIF
Sardines 0.68 East; FOB 0.30 0.47
Barracuda 0.50 Spain; CIF
a Source: FAO Globefish & Infofish Trade News; July 15, 1999. 18
REPUBLIC OF YEMEN: Fourth Fisheries Development Project Appendix B: Financial and Economic Re-evaluation
Table 15. Calculationof EconomicBeach Landing Prices for Fish First, Second and Third Grades
Projected World Market Price (See Table 12) US$ X (Average, US$/ton, for frozenproducts)
Ocean Freight and Insurance US$ 90
Freight on Board Aden US$ X-90
Port Charges, Aden US$ 20
Freezingand Storage, Aden US$ 100
Transport to Aden US$ 40
Receptor and Icing USs 30
Total GOY Costs US$ 190
Beach Landing Price US$ X-280 19
REPUBLICOF YEMEN:Fourth FisheriesDevelopment Project AppendixB: Financialand EconomicRe-evaluation
Table 16. EstimatedEconomic Prices of Fish
EuropeanCIF a Cost to Move EconomnicPrice Fish by Category ReferencePrice Fish from GOY to (US$/ton) Euro Market US$/ton YR/Kg (US$/ton) 1stGrade - Squid/CuttleFish 2,050 280 - Croaker/SpanishMackerel 1,000 280 - Hake 1.300 280 Average 1,450 280 1,170 181
2 ,d Grade - Skipjack 650 280 - Yellowfin Tuna 1,200 280 - Indian Mackerel 700 280 Average 850 280 570 88
3rd Grade - Barracuda 500 280 - Sardines 480 280 - Sharks' 490c 280 Average 490 280 210 33
See Table 12. b See Table 13. c Consideredas non traded but including value of sharkfins and thereforeprice estimatedat US$730/tonand convertedinto economicvalue by applyingan SCF of 0.67. 20
REPUBLIC OF YEMEN: Fourth Fisheries Development Project Appendix B: Financial and Economic Re-evaluation
Table 17. Estimated Operating Costs in Economic Terms for Total Incremental Fish Landing
A. Total Incremental Fish Landing per Year
(i) Production from Units of Six Boats 4,606 tons/yr (ii) Production from Single Boats 4,606 tons/yr
Total 9,212 tons/yr
B. Operating Costs per Kg of Fish
(i) Boat Model A - ProductionUnit of Six Boatsa YR 37.1/kg (ii) Boat Model B - Single Boatb YR 43.8/kg
C. Total Fleet Operating Costs
(i) Units of Six Boats 1,102,468 US$ (ii) Single Boats 1,301,566 US$
Total 2,404,034 US$
a Based on production costs given in Table 8 and applying an SCF of 0.67. b Based on production costs given in Table 9 and applying an SCF of 0.67. 21
REPU8LIC OF YEMEN: Fourth Fisheries Development Project Appendix B: Financial and Economic Re-evaluation
Table 18. Estimated Gross Value of Annual Incremental Fish Landings in Economic Terms
A. Annual IncrementalProject Fish Landings by Categorya
- IstCategory 30% 2,763,600 kg - 2nd Category - Mainly Tuna 50% 4,606,000kg - 3rd Category - Sharks-Sardines 20% 1.842,400kg
Total 9,212,000 kg
B. Economic Prices of Fish by Categoryb
- IstCategory 1.17 US$/kg or 181 YR/kg - 2nd Category 0.57 US$/kg or 88 YR/kg - 3rd Category 0.21 US$/kg or 33 YR/kg
C. Total Gross Value of Annual Incremental Fish Landings
- 1stCategory 3,233,412 US$ - 2nd Category 2,625,420 US$
- 3 rd Category 386904 US$ Total 6,245,736US$
a See Table 10. It is assumed that the catch composition of total fish landing equally represents production units of six boats and single boat fishing operations as indicated in Table 15. b See Table 14. 22
REPUBLICOF YEMEN:Fourth FisheriesDevelopment Project AppendixB: Financialand EconomicRe-evaluation
Table 19. EconomicRe-evaluation
Costs Benefits Years Investment Fish Production Road Regular Reduced _ Gross Value of Balance Costs, 0 erating Costs Maintenance Costsb Vehicles Costs' Fish Landings'
1992 1,177 - - - - (1,177) 1993 1,238 - - - - (1,238) 1994 4,449 420 - - 1,250 (3,619) 1995 4,629 720 - - 1,870 (3,479) 1996 5,084 1,200 - 3,120 (3,164) 1997 5,574 1,680 - 4,370 (2,884) 1998 1,326 2,160 - - 5,620 2,134 1999 4,233 2,404 50 - 6,246 (441) 2000 - 2,404 180 100 6,246 3,762 2001 - 2,404 180 200 6,246 3,862 2002 - 2,404 180 400 6,246 4,062 2003 - 2,404 180 600 6,246 4,262 2004 - 2,404 180 800 6,246 4,462 2005 - 2,404 180 1,000 6,246 4,662 2006 - 2,404 180 1,200 6,246 4,862 2007 - 2,404 180 1,400 6,246 5,062 2008-2016 - 2,404 180 1,500 6,246 5,162
Economic Rate of Return: 15.4%
a See Table 7. An SCF of 0.67 has been applied to the local cost portion estimated at 30%. b See Table I 1. c See Table 14. ANNEX C
IMPLEMENTATION COMPLETION REPORT
REPUBLIC OF YEMEN
FOURTH FISHERIES DEVELOPMENT PROJECT
(CREDIT 2265-YEM)
PROJECT REVIEW FROM BORROWER'S PERSPECTIVE
FROM : Qaiser&HabeebaKHAN PHONE NO. 263315 Jan. 22 2000 02:40PM P9 FROM Qai. . -ser&HabeebaKHRN 1-ULRTMI'ISrn~~~~~~~~~~~~~~~R1Es '~le02
PROJECT REVIEW FROM BORROWER'S PERSPECTIVE
Sumwarv Of 1Iem-enstation ComWletoin Renart: t
I. Thic project components were rnainly implcmented in Aden governorare and in thd coastal fish landing areas of the southenm govemorates at shuqra Abyan, Bir Ali ghabwa, Hadranri, Seihoot AL- Mahm and at Al- Salif in Hodeida.
2. As fishery is one of the major profession in terms of national resource wcalth anrd economyr as well as enploymeat, Realizing the importanoc the government of the Rcpublic of Yarnen decided and launched, a massive development program for the fishery sector as a profitable and conmnercial proposition with tlhe suppont and assistance's of UDA and other co-financijg agencies IrAD and the EC.
This project is the follow- up project of the three carlier projects prinrity financed by MDA to comnplete the earlicr phases of infrastructure and institutional development in the artisinal scetor in the south -
Board Approval June 13^ 1991. iffccrive Date July 30h 1992. Project Completion Dccernbez 3 10 199S. Loan Close Date IDA Original Jane 30 1999. Current June 3 0ih 1990,
-3.Sorce Of Fina.nce The total cost of the project ( to be iaplemnented over a period of saven ycars ) was estimated at US S 39.8 million, with foreig_ exchangc conponent of US S; 3 1. milliown. The co- financinFg arrangement included an IDA credit of US S: 13.2 million, a loan fl-am IWAD of US S: 6.5 million, a grant from the EU of 'USS: 16.3million and a government contribution of US S. 3-8 million .
Statemnt Evaluation: 3 A. Objectives fXhe main objectives of the project wcre:- ) pxand fish catches and improve processing. for both local consumption and export.
ii) Improve the efticiency of domnestic and cxport marketing of fish, notably through investment, policy changes and adjusancuts in the institutional perforantoe of co- operatives.
iii) Improvc The asscssmem and 3anagsrnent of fish rcsources in XOY warcrs: and
iv) Help improve the position of woman in fishinS conirxiunities.
4. Pr-oiect CoQeRtS included =-
i) The construction. Furnishing anid equipping of primary facilities for handling, preserving end distributioo of fish in six villages In Mu]ck7aJi1 Al- Shehr, Al- qarn. Al- llami, Al- Musain'a in Hadramout governorate and in Seihoot Al- Nlhra goveremorwe;
l aROMeeaiaKHANabe PHONENO.: 263315 Jan. 22 2000 02:41PM P10 FROM1 Qais.erS¢HaebKR .1TFITE o
ii) The construction of asphalt roads i:e. The FoqumRas- Imran Road 14.9 km, Foqum Branch Road 1 .km ini Aden governorate, and Shiuqra Brancb Road I . 1 km in Abyan governorate, as w'rl1 as the Al- qarn access road 9km in liadramour governorare; and
iii) The cowtruction of Auction yards i:e at Shuqra Abyan governorate. Biwum Hadzaouw -overaorate, Bir Ali Shabwa governorate and at Al Salif Al- Hodeida governorate;
iv) Import of outboard engincs, spare parts and fishing gear;
v) Technical assistance for P1T1,MSRRC, lThe co-operatives and societies, and the MEW,
6t) The enhancement of t4c MSRPC'a fish stock assesinem -and resource management proWsm and cnvironinental restarch capability as well as overseas MSC fellowship fbr one MSRRC sientist and local wo'rksbop zraining's forMSR.RC staffT
vii) Services to women in the fishing communities. including the uonswuction of community development centers in three 'rillaaes at Foqum Ran Itnran villges in Aden governorte and at Shuqra village in Abyan govemoraze, as well as the implementation of adult educatiou and vocational training programs, and the creation of income earning opportunities for women.
2 B Evaluation Of Obictives:
i) The construction of the village facdiities including fish recoiving sheds, ice plants, stoems and chilled stores were comspleted by mid- I9S97 under The ESU financing and are all built at a high standard of conafraction. Generally during early 199x all six fishery filcilities were eIntcd to correrponding societies? c:o-operatives and or other instiustonsfortrial before privatization i;e the Mukalla facility to the join venture betwvee MUklla co-operative and rhe society, Shchr ciity also to the joint venture between Shehr co-operative and society. Al - Hami facility to Al- Haii o-operative, Al- Qarn facility o Al- Qan co- operative Musaina,a facility to NCSFM which defiLitely failed due to the management incapability and therefore during Sept 1999 the Musain-'a facility was rented to the Mlusaina'a society, and in the similar case Seihoot facility was also priorily rented to CFC and due to managernent incapability therefore dluring November 1999 the Seihoor facility had to be rented to the corresponding village co-operativC.
The village fisherics facilities in Mukalla and shehr have, now beea handed- over to corTespondLng co- operaivel society ( Joint Venture) and privatization agreenemns for ownersbip with the PI were signed on September 6^ 1999ofterhecassessmentoftheir administrative, financial audttchical capabilitiestooperateand managoeh faclities. he capital costs of producive elements wreapportioned ovarapeiod of20year.sasabasis for assessing annual payments and thesc werc flurher divided by twelve to establish montddy installments. Howevcr concetne works ihaplamented forT rho Mukalla and shchr facilities are still in condition, ice plants are also in fill operation sucon floors arc welt utilized, and equipmnot still in good order and each of the Join venure instutions above have been veny successful in managing their activities. The Mukalla and Shehr faiities dgffi -. >,_operate at a good capacity utilization of 75 % and 80 % respctively . Musaina'a 60 Ye ws sigs of improvement under the new manauement of The local society which took *gff during Sept 1999. Al- HarE 45 V which started operaxons only in April 1999 and 7p a ;ntsone of the lower volurme lauding sites wit reliance on shark and lobster -7 s and docs better than epxeced. M.1-Qar30". and Seihoat 1% ¶4 for rarionsof
2 FROM : Qaiser&HabeebaKHRN PHONE NO. : 263315 Jan. 22 2003 02:33PM P1
t9101~ *oo 13:46 rIA 2415072 FLSHER12S WU4JRT
bath locasions (lower volumvq ancd reliance nn lobster, shas3c and sardines fishries) facility oper2tors there. are preseatly ConCeatrAtLDg efforts ti- bcaefit towards the sell of ice to other fish lIdinS arcas tir-18 to hettcx improvc their sites op-rating results. The re-payrnent schedules establis*hd for shehr and Mukalla operators, wbich assumed ownership ofthe sitcs from October 1' 1999. need to be adhered to. A request by Mukalla operators to defer repayment in order to pursue new inYtvstrment projects is not acceptable , given the good operating result of this site.
Old lease payment axrears of 'NCSFM ( Musaina'a) and CFC( seihoot ) have yet to be scrtled. New lease paymcnt arrears since October 1999 developed with the Dis co- operative ( Al- Qarn), Al- H4amico- operative. and Sehoot co-operative to wlich the PIT is following up the outstanding payments, The PTU is regularly receiving lease payments from the Musaina' . cility recently rented to them witb effect from October 1999.
il) 1basdCanstructians I Fop um Rag Imira Road ) :
a) The constructiox of The Foquum - Ras Imraa Road 14.9hu initiated in 1998 after a ddlay of more than four years on account of extended and repeated rebidding oft he conract, The contracm was finally awarded to tie lowest evaluated bidder Ms. Sheba General contractors in The total bid cost for USD: 1 7SS,00 and has successfully achieved its compietion during Juane 1909 in the total actual coat of USD: 2,316,169.64 incorporating additional costs for the need of a new road design to the original one carried out trin years earlier, in liAe with practical changes at large sections on ground which required un-foreseen soil stabiization t-eatmeirns, and the widening of tho full road length from 6m to 7nm width,
b) The Foqum branch road I.Skm initiatcd during February 1009 has also achieved its successful completion during Junc 1999. With IDA's no-objection the conutact was awarded to the already established contractor in the area implementing the Foqumn Raslrnran road for a bid amount for USD: 320,974.00 and covered the final actual total construction cost anounting to USrD: 33I,147.00. Both above roads are constructed at a high standard of construction under the required engineering Specifications and nntaerials used supervised and approved by consuhants under technical supervision agreement provided by the Ministry of constraction, Housing
c) Shuara Branch R_ad Abvaw Governorate:
The construction of the shuqra bnucob road also acbieved its completion during June 1999 which commenced early in march 1999. The conmta was awarded to the independent department undcr the ministry of construction the OCRB for a bid cost of USD: 162,000 for construction and completion of asphalt for i.lkm road connecting from main higliway Aden- Mukelle road passing through Aaqra vilLage, so the fisheries facility built as shuqr& under Third Fisheries Project fUnded by IDA. The road is also constuted at a high standard ofconsucumion supe-rised by a qualified engineer appointed by the PIU.
d) Al- Oarm Access Road:
Undcer the EU FACF account, Phase I ofthe Jkrn Al- Qarn road was completed during May 199s at a total con.4ruction cost amounting to WR:46 milion under contrzt agreement ~ signed bcLween the Ministry of Fish Wealdi Head Office Sansaa and the implementing 74 a ctor Ms. Arabian Eterprise Company. Phase n of the Al- Qam road which rises of 6krcs commenced impiementation iU May 1999 awarded to the lowest - F , s biddei Ma. Bin Malda Cuiporation fox xhe tutas cunatruction cost of YR S5 t~~~~~~~ FROM : QaiSer&HabeebaKHRN PHONE NO. : 263315 Jan. 22 2000 02:34PM P2
1.9/01 00 13:48 F£X 2451°72 FUIURTH FISHER1ES ItoLE
Million and is in inm advanctd Ciourse cif consruction expected to be completed in January
e) Construction Of Auction Yards:-
With refLncc to tbe proposed proposals rmade to the fimding agency's for the itilizarion of the remaining finds under the projects savings, Both IDA and EFAD approved in May 1908 Zo include additional divil works compont- under category I of the IDA credit Agreement and LFAD Loan to meet the urgent needs of fishetmcn within and outsidc the project arca for the construction of Auction Yards in some fish lanLding sites at four different villages, Funding percentages by IDA and FAD were endorsed ro cover 90 percent insead of 75 for aIl civil works componen±s and fcllowing MDA's procuremcnt procedures, conuartss were awarded to the lowest evaluated successfiul contrastctors for implementations and the activ-iiies were duly concluded within the projects close date dated not later than June 1999 in the actual constiuction costs as follows:-
Shuqra Vili,e ( AbyanL Govemoratc ) Auction Yard YX: 6.946,940.00
Burum VilDaSg ( ladramnout Governiorate) Aucetion Yard YS: 5,014,S97.96
Bir- Ali Village ( Shabwa Governorate) Auction Yard. Y\P S,864,735.00 I L- Salif Village ( AI-Iodeida Governorate) Auction Yard YR: 5.813,652.00
All A-aeti-oz yartdlstare satisfactorily implemented in accordance wirh the specified engineering specifications and rcemqirewients duly supervisedo y-p;.' cc.4 by. PIU and the auction yards are already handed- over to the correVponding village society's and or co- operatives who are successfully operating and managing their work as required.
f) Imrort Of Outboad lVnineg, F,6lare P2rts & Fighidl Gear:-
The sale of tie ISHP and 40 HP outboard engines to the fisheries co-operatives and societies wgas comnplcted saisfiwsonly because oftthe stron, denand for Yamaha en:ines by rhe fishermen. Frorn the total quantity of 3400 outboard engines procured by the project, Ornly 72% of them have been sold becausc of tbe rmainug unold tock comprising of 340 Selva engines and the looted quanrtity of 600nos 15/40 -P YaTnaha engines looed during the civil svar of 1994. The PTU has already raised a proposal during sept 1999 to His lxccllency The Minister of Fish wealth for consideration to allow the sale of unsold balance of 34ONas Selva engines at a reduced cost of 30%:Poof the onginal cost which todate has not received positive approval . Thc pmject also procured 20Nos inboard engines of thenm only one number was duly zold to fishermon and l9nos were issued to the Army undcr instruction ofthe former Ministerof-Fish wesith. The present MinisterofFish wealth is personally following to solve and recover the cost of 19 inboard engines from the army authority . There prevails unsold balance stock of Fish gears and spare parts in the ttal amount of YR: 100,S00.000 and the total amount deposited in the CACB special account from Ehe proc2eds of the sale of outboard engines and gear sil sept 1999is YR: 203.2 Million which using the pvvaiIin.g exrhange rate at the timc of coU ection is equivalent to USD: 2.66 Million iA FROM QaiiserHabeebaKHAN PHONENO. : 263315 Jan. 22 2000 02:35PM P3
19/01 00 13:46 FAX 24507; FOtLRik FISUFRIES LtJub
g) Technta Assu.tanee:-
The perforrtwnce of project conmiltants under the £tU mranwranged from vcry sad un- satitfacAory. During the projects life generally, Lhe prncct did not beuefit in t .9"' tcchaical zsaner from nmost of the un- qualified expests fecrited and sup pli consultant to work with the project in Yemen paricularly with the expert supplied fo r co- operative staff gmiagemont training componeat. The initial fair services rendered by the Manne Research AdvisorsW expcrts also got affected due to the in- substanTial short term durarion assignment contracts fior the experts. The report produced by consultanrts oan recommendations for improvement of the activities of thie fisheries staTistics was considered poorly prepared. Similarly. recommendations on financial Re- appraisal of fish recciving centVers and a fishcric- sector review were rcected by the PITU due to the reports poor preparation technically which was finally accepted during Dec, 1999 incorporating major recom=ended c=g"s anLdcom;ents raised by the PIU aad from th}eEU.
h) Electricity Network comooncnt:-
netuder the E tie RIesraeialso cOncIuQeGCeuy aum: 1V UtVotl eMe cosC for YR: 35,156,206 ntracted to Ms. Flectrical contracting officc (ECO) Mukallah, supexvised by a PIltJ appointed electrical engineer during implementation. The power nctwork is fiunctional supplying power az required for the benefit of the fishermen commurities at the above two villages established at an hr supply operating routine per day.
i) EnIhaSucueIt Of The MSRRC In The Fish Stock Assessment Ability, Resource 14aenent,MSC F_Qqal~p& IAWTrii"sI-
Under the TFAD Lcian 269-YR proceeds, The Ministry of Fish wealth Yemen signed UTF/ 0081 YEM agreement with FAO Yemn for the provision of teclnical assistance for the project in the Stock Assessment comnponen, Workshop Training's and MSC Fellowship for the MSRRC as well as the assistance in providing consultant for the women in Development component for thc Fishery sector. The first mission of tbe fish stock evaluation consualtany focussed in the cxamination of saveral aspcets of the fisheries resources, available data processing and analyzation whenever the situation allowed. From the key fish stocks, it has been possible to estimate the ectual total allowabic anniial catch for Cutle fish. Rock Lobsters arnd a tcntative assessment of the Demaral fish species in the Red Sea and the gulf of Aden. The sccond consultation mission was devoted to
1) The implementaion of a stock study program for the Red -ea shrimp fishery ineluding fil colction of statistics arid biological data from landings in two sites, Hodeida for catches mainly taken from the southern fishing arca and Salif for the northern area catches.
2) The Organization of a two weeks training %;ourse on statistics and biological data for dynaLnic studies of commeroially important species, to wbich twevcl officers from the Marine Sciences Resources Resoarch. cente:r and saveal MFW slam from statistics Dcparment participated in the course.
3) The, preparation of a comprehensive proposal for the collection of scaistical and biological fisheries data at the national Lval ixcluding stafEiS cstimation and costs implication.
S FROM : Qaiser&HabeebaKHRN PHONE NO. : 263315 Jan. 22 2000 02:36PM P4 19/01 *00 13:4t FAX12a5072 POtLTll FISUERIES lo7
Thc third consultadion mit"ion is expqcted to tke place in Februm.y 2000 to which updating skills is required for the MSRRC acicnrists and it iS thorefore plannedfor the expected third flAssion's phase to organize a second trea7inng oourse that vwill be devoted to the dta. analysis.
Only one MSRRC scientist successfhlly undertook the MSC fellowship at the Bangor University in The united kingdom under the UTFI008/ YEM agreement withFAO in the Marine Environment studies funded under EFAD.
The projec% dcvoted all efforts to have the strengthening ofthc MSRRC scienxists skills, in the stock assessment tasks and improve the technical knowledge and ability for the fishery sector development which will be put into practice thus to keep the status records ofthe fisheries resouresca MSY and the corntrol of fishery resources in the Yemen wazars violated by the Licenxsd foreign industrial fishing tie basis of which can be used for the continuarion of futurc follow- up projects for the fisheries Devclopment sectr Yemen.
j) Women In Devel_grnent CeMPOneui
Under Eh(etE/ 00S YSM agreemeat with FAO for the provision of the WID consultaWt for the project funded under the IFAD Loan 269-YI, The aproved WID expert Dr. Ruda M. Saloh completed her first mission work on 22 Apinl 9098wvhich focussed at the three fishery villares at Foqurn, PLas- rnran in Aden govcrnorate and shuqra in. Abyan governorate and submitted a final field survey report with rocommendation to have the constructon ofthe training centers at cach of the three above nillages, procure traing cquipts, the training of women treiners in such areas 85 skill development, health and nutrition tip s, and implemeat a pilot proSrana with some cost sharing fiom beneficiaries.
The consultants reco cmoendatioizShasve ben implemented in phases and first, through the IDA procurement proedures. the three WID centeor at each village was duly completed in tEie at fairly modest costs and with high quality standards of constructions and already handed over to the PIU :- 1- The Foqum village center building YR:7,630,86S.23 2- The Ras-lmraz village center building YR, 7,572,21S.S6 3- The shuqravillage center buitding YP1. 8,731,169.38
The second mission of the WMD consultant will take place in Feb.2000 which will be devoted to trainin; wonen trainers in such areas as skill development, Health and nutiton tips, and implement a pilot training program Proaurement of ftirniture's and equipping ealrl village center with triniAg equipment is also successfitly achieved in time and the cosc of furziture's procured for each center is valued at YR: 700,000 and cost ofequipmant's for each center is also valued at USD: I ZOOO. The PTU will undewak the supevisionl over the temporawy operation of the throc WID centers for tlhe temporary period of one year in the astnpts to try the ability ofthc futur user of the centers.
k) Central Quality Control Laboracory :- in the ovemll objective to imnprove current practices in the fishery products quality control in Ycrnen both at the leveCl of thc cOMpCtcnt authority aDd at theIlVel oflicensed xporter required to mcet the icernational standards and the EC requiremns, and to facilitate access fr the markcting of Yemen fish products abroad, The MFW decided to hxve the -shmrent of a new central quality control section tor th 1MFW in Aden. The N(FW support to inplement the constriction ofthe new central quality control sciaon ry building In Adan undir the WtAD loan t69 savinas Which has Suocessafilly FROM : Qaiser&HabeebaKHAN PHONE NO. : 263315 Jan. 22 2000 02:37PM P5 IJUL tUu ±.3:sb kVA.L .VIouI. VVLn±L VIVJJ.AiUO
achieved its completiun before projects close date before Jun1 3 0'h 1999 constructed within the MFW Aden office br9nch comnplex at . tota actual construction cost incurred fr YR: 10,495,611 40 chemical martcrials and equipment's were also procurcd under IFAD loan savings in the Lotua cost of USD: a30,000. Chemical matcrials are satisfactorily received and equipment's installed in good working renditions and already the laboratory is fincrioning. in anothcr arrangement TA services will have to be received for the projCEt under the. EU grant workplan for Jaxiuary to Dec 1999 for tho provision of TA expets to train MFW srtaf ability and the strenghening of fishery products qLuality contol systems in the dcvclopmcnt of HACCP plans.
T) PP-ocurement Of Spare Part IDingaE,auinmenr' s & Vehicles Per MSRRC:-
The procurement of spare parts to renovate the research vessel M.V Dotafa and procurement of Diving and laboratory equipment's as well as four wheel drive pick- up vehicles for the MSP.RC to be used for the stock assessment section have all been received and handod- over to the MSRRC in the total cost for USD: 200,000. Upon the receipt of thcse, the MSRRC have now startcd to imprcve the fSsheries srudics and researob activitics.
mn) Maior Factors that Affected The Project; -
The project fiully agrees with the pigen points of major factors indicated in the donors ICR. rcport being resons th;lt affectedl the project implementations during its early stages.
n) Pro c-t SustainAbitv :-
Infrastructure works, includinG roads aad electrical distribution network were well designed and oon40ncted on a aound tochnicil basis. The erah;p aLid han - over of the village facilitics to the respective co-operatives / socicties is one ofthe most important elements to "ssure fulture project sustarnability . The MFW is conunitted to play an important role in actively participating in g1l possible progmnauz to support the fisheries sector in the future in linc with its mandate. The RU has recently approved a program of the financial assistance by cxtcnding the EU grant validity until Dec, 2000 to improve and consoldate tihe results so for achieved under the project and to continue the use of unused finds.
0) Bank Perforwance:-
TDA was direcly involved in the project identification, preparation and supervision which werc caried out by the government with the assi&tance of the FAOI CP . co-financing donors supported the govemments project preparation effort because it wa2s consistent With the government strateSy to continue to sutpport the development of the fisheries sector. MA's performance in project idaetification, preparation, supervision and appraisal assistaioe is rated vcry satirsctoly. The role of IDA which during supervision ensured continued support was pasticularly beneficial to the survival of the project in spite of the un- expected policy changes and by exercising patienee and focussing on out comes for the poor even under the most difficult of circumstances. In view of this, the role of IDA during supervision is rated highly satisfactory.
Irad FROM : Qaiser&HabeebaKHAN PHONE NO. : 263315 Jan. 22 2000 02:38PM P6 19'01 oO 13.48 FAX 245072 FOUa FISlERIES 0
p) Kc Lessons Learnmed
The key lessons lcarned from the project arc tho followings:-
1) His Excellency The MPFW Ministers decision to staff the PIU in 1997 with highly co±npetet professional was essential for aciuieving the momcntum and satisfactory standard of ovcrall project implementation.
2) The sucocssful privatization of several villagc facilitics provides an example which can be followed by other fisherice co-operatives/ societies in the country. The project has demonstrated lhe impinTavoe of combining the dcevlopmcnt of wall dcsigned physical facilities with substantial investments in capacity building as preconditions for succcssf4l privatization .
;) The four fisheries dcvclopmcnt projects, so far imnplecxmn±cd, mainly concentrated on ecxpaadlng fish production and have been 5cncrally successful in this. There is a danger, however that success, if not well managed leads to uncduc pressure on the resources which, if notSuressed throu,gh the de-elopment ofbettcrrceulatozy capacities, Could become self- defeatings.
4) Under this proiwct. the pTcseacc of sveral cofinanciers proved to be rersy benefcil in the sense that cofinancina arrmngeinents allowed thc irmplemcntation of specific project components independentiy For example, Thc EU, because of the projects success achieved, and therefore not experiencing MPW intczdhrece, was aole to positively ecxtend the grant financing till Deeambor 2000 thus to allow the implementation of new additional conmpo-nents i.e. the TA servioes for the centrai Quality control Laboratory ad T/A fior thc maintenance ofthe fisheries facilities.
5) it retrospect and considcring the overall satisfactory rating of the project, MA did well to continue to support the project inspite of the unexpected policy and project mansgement changes. Usually, Undesirable chbangs at political Level can influence IDA to slow or evcn stop disbursement.
6) When T/A is provided, continuing evauiation is necessary to decide as carly as possible, if and vhen consuhnts are to be replaced. UnfortunatcIy, since much of the T/A in this projew was SU- financed and contracted out To one fiu«, there was Little scope to evaluate and chRnne rho T/A provided, as circumstances would have required. Hcowever the T/A provided was spotty and discontinuous, even disruptive and LTcked a sustained core.
7) Close co-ordination between donors was a key to the projects success in ensuring that Joint agreed positions on major issues were conveyed to the borrower.
S) The support of the doors ( IDA, IPAD and the EU) and the Ministry of planning, which co- operated dlosely during impl.mentation, was particuiarly beneficial to the project.
8 ANNEX D
IMPLEMENTATION COMPLETION REPORT
REPUBLIC OF YEMEN
FOURTH FISHERIES DEVELOPMENT PROJECT
(CREDIT 2265-YEM)
COMMENTS FROM GOVERNMENT
FROM : AL-TUAHI TELECOMMUNATIONCENTR PHONENO. 205eBB JAN. 11 2000 07:30PM PI
MINISTRYOF FISHWEALTH ; 6,5> 3j
I;ourthFisheries Development Project . .1) ) _g.9tJ ,,9_._4 P.O. Box No. 1299 Tawahi r oj d Tel. No. 245058 't o" A vA Fax: 245072 via.v : Lsoa
Tawahi- ADEN ;Re o - 4p1 .0 II ~Republicof Yemen Ref 1tlS./9tp g|Q/£/1 e§ ... ~~~~~~~~~...... 1
Date: .C . ff2...... Fax: 001-202-4776391 orOO1.202-4 7 7137 4
To; TheIBRD/ IDA Headquarters Washington DC 20433UJSA.
From: IV FisheriesDevelopment Project (QIU) MFW Aden, Yemen. Attn: Ms. DonisKoehrn, Director MNSRE Division.
CopiesTo: H.E.Mr. AhmedMusaed Hussein, Minister MFW (ROY) Sana'a Fax: 268588. Mr. AbdulRahman Tarmoutn, Vice Minister MOPD (ROY) Sana'aFax:01 -250109. Mr.Petros Aklilu Sector Manager Rural Development Agriculture Fisheries Fax: 001-202-4771374 Mr.Tijan M. Salah, TaskTeam Leader FFDP Rural Development Agriculture, Fisheries Fax: 001-202-4771374. Mr.Naji Abu-Hatem, Sr. OperationsOfficer The Resident Mission(ROY) Sana'a Fax: 967-1-413709.
Subject;IV FisheriesDevelopment Project ( PIU)MFW, Yemen. LDACR- 2265- M, IFA) loan269-VY AndThe EU GrantALA_-9122. Having reviewedthe ICR dated. November3rd 1999 in respectof the above,We wouldlike to informyou that the report generally represents an accurate and fair assessment of the implementationstage of the projectand thereforehave attached herewith the borrowerscomnments to the ICR.
Overall projectoutcome is consideredsatisfactory and the closeco- ordinationbetween donors was the key to the projects success realized in the developmentof fisheriessector in Yementhus to furtherachieve the improvementof the sociallif e and national economy.
We wouldlike to extendour thanksto you and appreciationto IDAand the MNSRE staffand to the joint co-financiersIFAD and the EU for the close co- operationand assistancegiven to the fisheriessector in achieving its role of servingthe rual fisheriescommunities along the Yemen coastal areas in different governorates.
Regards
Dr. Omar A. Subei j Sr. ResearchOffcc DirectorGeneral FDA
MAP SECTION
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