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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 6245 Public Disclosure Authorized PROJECT PERFORMANCE AUDIT REPORT BOTSWANA SECOND LIVESTOCK DEVELOPMENT PROJECT (LOAN 1497-BT) Public Disclosure Authorized June 13, 1986 Public Disclosure Authorized Operations Evaluation Department This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ABBREVIATIONS AMA - Agricultural K.,Lagement Associations APRU - Animal Production Research Unit BLDC - Botswana Livestock Development Corporation BMC - Botswana Meat Corporation CGC - Communal Grazing Cell CGU - Communal Grazing Unit DAH - Department of Animal Health DWA - Department of Water Affairs EDF - European Development Fund ERR - Economic Rate of Return FA0 - Food and Agriculture Organization FMD - Foot and Mouth Disease GOB - Government of Botswana ILCA - International Livestock Center for Africa LP1 - (First) Livestock Development Proje.:t (Credit 325-BT) LP2 - Second Livestock Development Project (Loan 1497-BT) LPCU - Livestock Project Coordinating Unit - LPMU - Livestock Project Management Unit LUPAGS - Land Use Planning Advisory Groups MOA - Ministry of Agriculture M&E - Monitoring and Evaluation MFDP - Ministry of Finance and Development Planning NDB - National Development Bank NLMLP - National Land Management and Livestock Project NTRP - National Trek Route Policy OED - Operations Evaluation Department PC - Project Coordinator PCR - Project Completion Report PMU - Project Management Unit PPAM - Project Performance Audit Report PSC - Project Steering Committee REU - Ranch Extension Unit RMTC - Ranch Management Training Center RSU - Rural Sociology Unit SIDA - Swedish International Development Association TGLP - Tribal Grazing Land Policy CURRENCY EQUIVALENTS Name of Currency (Abbreviation) Pula (P) Currency Exchange Rate: Appraisal Year Average US$1.00 = P 0.83 Intervening Years Average US$1.00 = P 0.97 Completion Year Average US$1.00 = P 1.28 FISCAL YEAR BORROWER January 1 - December 31 ONLY THE WORLD BANK FOR OFFICIAL USE Washington, D.C. 20433 U.S.A. Office f Oirector-Cwal Operations aluation June 13, 1986 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT Subject: Project Performance Audit Report Botswana Second Livestock Development Project (Loan 1497-BT) Attached, for information is a copy of a report entitled "Project Performance Audit Report on Botswana Second Livestock Development Project (Loan 1497-BT)" prepared by the Operations Evaluation Department. Attachment This document has a restricted distribution and may be used by recipients only in the performance of their offcial duties. Its contents may not otherwise be disclosed without World Bank authorization. FOR OFFICIAL USE ONLY PROJECT PERFORMANCE AUDIT REPORT BOTSWANA SECOND LIVESTOCK DEVELOPMENT PROJECT (LOAN 1497-BT) TABLE OF CONTENTS Page No. Preface *** ******* ******* ********* ******** * Basic Data Sheet ............................ *************........ 11 Evaluation Summary *..........................................o.* iv PROJECT PERFORMANCE AUDIT MEMORANDUM I. PROJECT SUMMARY ................ 1I.............. Project Description 1I.............................. Project Implementation ............................. 3 Projectblts ......................................... 6 II. ASSESSMENT OF PROJECT IMPACT AND RATIOALE ............... 8 ANNEXES: 1. Geographical Distribution of Project Sites ................... 13 2. Project Achievements **************************************** 14 3. Follow-up Project ************************************ 16 Regional Transmittal Memo ..... *****************************... 21 PROJECT COMPLETION REPORT I Background ............................................... 27 II. Project Formulation *********** * *e****** 27 111. Project Implementation *************************** 33 IV. The Impact of Management on Project Achievement .......... 41 V. Agricultural Impact *********************************** 44 VI. Tribal Grazing Land Policy ............................... 48 VII. Changes in Repeater Projects ............................. 49 VIII. Bank Performance ****************************************. 51 X1. Conclusion *********************************************** 52 Mas: IBRD No. 12825R Second Livestock Development Project IBRD No. 12824 Soil, and Transportation Network IBRD No. 18766 National Land Management and Livestock Project This drcument has a restricted distribution and may be used by recipients only in the performance of th. i official duties. its contents may not otherwise be disclosed without World Bank authorization. - i - PROJECT PERFORMANCE AUDIT REPORT BOTSWANA SECOND LIVESTOCK DEVELOPMENT PROJECT (LOAN 1497-BT) PREFACE This is a project performance audit on the Botswana Second Livestock Project for which Loan 1497-BT was approved in December 1977 in the amount of US$6.5 million and was declared effective November 1978. The Loan closed June 30, 1984 after one year's postponement with an undisbursed balance of US$.48 million which was cancelled in March 1985. The project was also cofinanced by the European Development Fund (EDF) for US$0.3 million and the International Livestock Center for Africa (ILCA) for US$1.26 million. The audit report consists of a Project Performance Audit Memorandum (PPAM) prepared by the Operations Evaluation Department (OED) and a Project Completion Report (PCR) prepared in July/August 1985 by the Ministry of Agriculture (MOA), Government of Botswana. The PCR was submitted to OED by the Region on February 25, 1986. The Region is in broad agreement with the PCR but has made two comments, one regarding lessons learned and one regarding benefits. The Region's transmittal memorandum has therefore been appended to the PPAK and immediately precedes the PCR. The PPAM is based on the Appraisal Report (No. 1630-BT dated October 31, 1977), the President's Report (No. P-2140a-BT dated October 31, 1977) and the Loan Agreement of December 30, 1977. Bank files on the project, including corresponding with the Borrower, were fully consulted and Bank staff associated with the project were interviewed. In addition, an audit mission visited Botswana in November 1985 to discuss the project with officials of MOA (which was the executing agency) and with staffs of the Project Management Unit (PMU), the Animal Production Research Unit (APRU), the Ranch Extension Unit (REU), the Rural Sociology Unit (RSU), and the National Development Bank (NDB), all of which played important roles in implementing the project's principal components. The audit finds the PCR detailed and accurate in its description of project achievements and shortcomings, and the audit generally supports its principal findings. The audit concludes that quantifiable benefits under the project mnst be considered highly conjectural at this time and they would be, in any event, extremely low, resulting in an ERR Thich would in all probability be inconsequential. On the other hand, the audit is convinced that the physical, institutional, training and technical assistance achieve- ments under the project were sufficiently significant in their own right to justify the project, particularly taking account of the novel and innovative nature of the complex local land reform efforts which the project was - ii - designed to support. The audit highlights the many difficulties which have surfaced in the last ten years during which Government has promoted its land reform policies, particularly those at the farm level, and concludes that the future will be painstakingly difficult with a slow direct benefit buildup and low anticipated ERR in the early stages. The draft report was sent to the Borrower for comments on March 21, 1986. However, none has been received. The audit mirsion wishes to thank the staff of the Government of Botswana, MOA, PMU and NDB for the valuable assistance and support they pro- vided during its visit to Botswana. - l1 - PR0t80 RA~ AUD2T#P8RT 80T85ANA 8800 LIVEST?CKDIV8LOI'MENT 110JECT (i0AN 1497-8T) sAdIC DATA8m1u? _~Y9AAPAJTCT Actual or Actual as 8 Appralal etiaated of Appraisal Istisate Atual ___i__ate Total Projact Cont (US8 aillion) 1.4 8.1 60 ton aount (08 willto) 6.5 6.02 93 Cotiancing EDP 0.3 ILCA 1.26 Date ~tyica o nponets CoMpleted 06/83 06/84 120 Proportion Th~n Complated <1) 100 80 Eteolc Rate of Return (8> 13 0 Finaneial Perfornance fair Marginal inosttutional 9erfor~ance Satiafattory Satisfactory 8TAOKINPU18 (staff eek) Yfis 7176 'n7 Me78 Mr79 VM8 Fu8l 118 1781 118 MS Total Ideatiftcation/Preparation 5.7 19.1 3.4 4.0 34.2 Appratsal 45.1 7.0 52.1 Negotiation 7.8 7.8 sopervicon 7 0 101å 7.5 12 9 16 1 1.6 6 4.0 76.1 Total T71T Ift, flå rt ifv ffIr TE12 1 f w CI~IULATIVEDIBUR~81 Ts Appråtsal ~tiaate (U88 gillion) 0.04 1.25 2.23 4.00 6.00 6.50 - Actual (Us$ million) 0 0.03 0.37 0.90 1.60 3.28 6.02 Actunt a %of Ratimte 0 2.4 16 23 27 81 93 Date of Ftnal DIGbursemat March 7, 198$ POJ&CTS DATM1 Original Estinate Revisons AtUa Firat Neatioed In fil* or Timetable 01175 Government equest 11/76 eottations 11/77 Date 8oard Approval 12/06/77 Date Siging 12/30/77 Datt afteetivenese 03/30/78 11/28/78 Clostg Date 06/30/83 06/30/84 mission DATA Date mo. of Specialteationm Perforance Types of mission (Go./yr) P ons K ~ epreseanted /b Rating /e Trend/d Probles/e d*ntifieation 01/75 2 7 Preparation - - Apprattal 01/77 4 50 l uS(2),FA total Supervitson 1 04/78 2 6 L8,6 2 3 K Supervicion 2 09/78 1 2 L8 2 1 N