Documentof The World Bank FOROMCIAL USE ONLY Public Disclosure Authorized RePoitNo. 6966 Public Disclosure Authorized PROJECT COMPLETION REPORT GREECE EVROS DEVELOPMENT PROJECT LN. 1457-GR Public Disclosure Authorized October 14, 1987 Public Disclosure Authorized Agriculture Operations Country Department IV Europe, Middle East and North Africa Region dwhesk bm a ViieteddISebmot and may be Wedby ripietsony inthe ped.nunce of thai,oelal dutItm Uts cautentsmay noteebuiwh be disclosewithoust world Bank autheulzatlo. ABBREVIATIONS ABG - Agricultural Bank of Oreece DR - Drachma DEPO - Evros Development Project Office ERR - Economic Rate of Return ETVA - Hellenic Industrial Development Bank KYDEP - Central Organization for the Management of Agricultural Products PCR - Project Completion Report THEWOULD BANK Washington.D.C. 20433 U.SA Offieof DMI,.cttGwtai C'Postion.Ieatvawt Lctober 14, 1987 MEMORANDUMTO THE EXECUTIVEDIRECTORS AND THE PRESIDENT SUBJECTs Project CompletionReport on Greece Evros DevelopmentProject (Loan 1457-GR) Attachedt for information,is a copy of a report entitled 'Project CompletionReport on Greece Evros DevelopmentProject (Loan 1457-GR)lprepared by the Borrower,together with an OverviewMemorandum by the Europe,Middle East and North Africa RegionalOffice. Further evaluationof this project by the OperationsEvaluation Department has not been made. Attachment Thi docunnt has^"sftted distribution nd may be oW byre piattonlyi thed ptrfonmue of theirofcial duti Its contentsmy not otherwisebe dicose withoutWorld Bank authoration. 7o0 OFFICIALU ONLY PROJECTCOMPLETION REPORT GREECE- EVROS DEVELOPMENTPROJECT (LOAN 1457-GR) Table of Contents Page No. Preface ...... ................ i Basic Data Sheet .ii. EvaluationSunmmary . iii PROJECTCvMPLETION OVERVIEW MEMORANDUM . I*Introduction . 1 II. ProjectProcessing . *. ...... ... .. .. .. 3 III. ProjectImplementation . 6 IV. ProjectImpact . 11 V. InstitutionalPerformance .... .............. 13 VI. Conclusionsand LessonsLearned . 15 ANNE.X1- Tables to OverviewMemorandujm MANiNX2 - Commentsfrom Borrower PROJECTCOMPLETION REPORT (Borrower). Introduction....... 16 ProjectIdentification, Preparation, and Appraisal. 6 Project Implementation.... ..... .. ..... ...... 14 OperatingPerformance ...................... 26 Costs,Benefits, and EconomicPost Evaluation . 28 InstitutionalPerformance and Devtlopment . 40 Conclusions. ...... 0* . .. 46 Map IBRD 12749R1 Thh documenthas a restricteddistribution and may be used by recipientsonly in the performae of theif officialduties. Its contents mauynot otherwisebe disclosedwithout World Bank authodzation. (i) PROJECTCOMPLETION REPORT GREECE EVROS DEVELOPMENTPROJECT (LN. 1457-GR) PREFACE This is the ProjectCompletion Report (PCR)of the Evros Development Projectin Greecefor which Loan 1457-GRin the amount of US$35.0milliun was approvedon June 14, 1977. The Loan was closedon December31, 1985, three years behind schedule;an unusedbalance of US$3.9million was cancelled. The date of final disbursementwas July 22, 1985. The PCR was preparedby the Borrower'sMinistry of NationalEc:onomy. A ProjectPerformance Overview Memorandum was preparedby the Europe,Middle East and North Africa RegionalOffice (followinga mission to Greece in May of 1986). The PCR and OverviewMemorandum are based in part on a revievof the Staff AppraisalReport (No. 1547-GR)dated May 20, 1977, the President's Report (No. P-2096-GR)dated June 1, 1977, the Loan Agreementof June 27, 1977,correspondence with the Borrower,internal Bank memorandaon project issuesas containedin relevantBank files,as well as interviewswith officialsboth in the Bank and in Greecewho have be3enassociated with the project. A copy of the draft reportwas sent to the Borroweron July 15, 1987 for comments. Commentsreceived from RegionalDevelopment Service of Central Macedoniahave been incorporatedand are attachedas Annex 2 of the Project CompletionOverview Memorandum. This projecthas not been subjectedto an audit by OED. (ii) twes AZVILPWN POOJIc? Wpr'aisOl Actualor Actualas S of KUY PROJECTDATA ActualoLtpd crat aita Total Project Costs (US$Sillion) 1.1 71.2 8S LOan#_Mt (USMlllie) 35.0 3t.0 100 Disbursed (U41S1Millio) 3.0 1.1 S Cancelled (USIMillion) 3.9--tl Oatese0r Approval 6/14/17 LoanAgreint Oate 6/27/77 Oate Effectiveness 10/25/71 10/19/76 400tl Date Physical Coempoentscupleted 06/82 12/85 170zh ProportionThen Completed(1I Ica 100 Closingdate 12/31181 12/31/85 1s4ab teonmic Rate of Return 151 1t 13 108 - en Sior-tly ProdqctiveCponents 16 18 11% Institutional Performace C40d Technlce' Performance Satisfactory Nua*r of Sire:t Beneficiaries (fauilies) 34.500 30,500 hS tAFf tINPUT/S E2 £126 £1Z2 £E3 £129 E1 £3 EM E£3 E13 E° U3 IUK Preappraissl S.0 120.9 2S. - IS 2 -- -- 97.6 -- - 97.6 Appraisal 9.0 Negotiations - 9.0 Supervision -- -- 0.3 4.1 20.5 35.5 19.3 17.1 10.2 9.9 5.3 2.1 124.3 Other - -- 1.7 -- -- -- -- 1.7 TOTAL s.0 120.9 133.9 4.1 20.5 3.S 19.3 17.1 10.2 9.9 5.3 2.1 383.8 1U*ULATIVEDIBURSIMLNTS E12 E12 E11 EY1I £I3 EW E18 £X3 E Appraisal EstimAte (US$Sillion) 2.S 11.1 21.0 28.S 33.S 3T.0 - - - Actual (USS"illion) - 0.2 3.1 6.0 a.0 11.2 20.6 27.2 31.1 Actual as S of Estimate 1.8 14.8 21.1 23.9 32.0 5S.9 77.7 8.9 Otte of final Osbursewnt July 22. 1985 - _______ ______ ______ _.---- I Specialize- Perfor- tStIWZAL A oate No. of Man days lion Rep. esn- mance types of No/Yr Persons In field tat ionU Rating"a Trend/ Problems/a Idcntitication 1I/7t 4 92 .C.A, G Preparation O6/76 2 14 Pre-appraisel 10/76 8 Appraisal - (in twe parts 11/76 a 03/77) 03/77 8 12S .f.A.F Supervision 1 09/77 2 8 CIE 1 2 iI 03/78 1 3 C1 2 lit 09/ a 18 CE. 1 2 *Iv 12/78 3 24 A.S,F 1 2 * V 03/79 1 6 A I2 VI 08/79 I 10 1 2 1 VIt 10/79 1 13 A 2 3 PT VIIl 12/79 1 6 A 2 1 PT tX 05/80 3 31 CG..A 2 I T * X 11/80 1 13 ~~~ 2 ~ ~I ~ ~~~~~A xi 12/80 1 7 a 2 2 TP XIt 03/82 2 20 C t 2 2 IPO XIII 10/02 t 8 t 2 1 tPO a XIV 07/03 I 17 I I VP a XV 12/83 I 12 5 I I TF a 10/84 1 6 A I I V a XVIVItI 03/U 2 A.A 1 2 t Subtotal TOTAL. *THU-R0J1ECT DATA BS0ramr: Hellenicstate £awlLaauin..aeec: Ministry Ot CQ*rdina&tien--subSeq4etlyMinistry of NationalEconomy fisafl Year of Borrower: January1 to Ofember31 ff4M$.aL_.iZUTA=g(Abbreviation) Orachna(Or) GurrnarEtehngoRat. AppraisalYea Average 1S$1.00a B9,36,5 InterveningYears Average (avg. 1911-62) US$1.00* Or 62.0 CompletionYear Average(1985) Us$1.00* Or 137.2 EAllow-9nflPriAe: None LA US$3.0million cancelled On 03/26/84;1)55863.066 cancelled an 07/22/O5. Lb Calulated in terms 0t monthSfreem date of Board approval. LE Input aS staff weeks. SourCe: World Bank Planningand Budgeting Oepartmaant. /Li A Agriculturalist tincludes forestry specialist); 5 a Irrigation tlgneoi r; C gEonomist; * Procuremnt Specialist; F - RoadEngineer;6 o Livestock Specialist. j Ia Problem-freeor miner problWaS;I2 aModrate proble: antdI * Major problems. /f1 Imparoving;2 * Stationery.and 3 a Deterioratintg. La F * Financial; I a "Mangerial; I a Technical;P a Political;and 0 a Other. (iii) PROJECT COMPLETIONREPORT GREECE EVROSDEVELOPMENT PROJECT (LOAN 1457-GR) Evaluation Summnar Introduction 1. The Evros Development Project was the thirteenth loan to Greece by the Bank and the fourth in the agricultural sector--the other three were for irrigation development. Greece graduated from Bank borrowing in 1979. Objectives 2. The Evros Development Project, which is located in the north-east corner of the country, was the first occasion that the Bank had funded a regional development project in Greece. The project, which was multisectoral, was designed to complement and coordinate Government's on-going development in the region and provide a model for integrated development which could be replicated elsewhere in the country. The project was broadly focused on improving the quality of life, raising incomes of beneficiaries to reduce regional income disparities, and upgrading the institutional framework. Project components included financing the expansion of a sugar beet factory, irrigation, flood control, roads, support for extension and research, forest exploitation and reforestation, technical schools and social infrastructure. linplementation Experience 3. The project, estimated to cost about US81.0 million was appraised in March 1977, and the Bank loan for US35.0 million signed on June 27, 1977 became effective on October 19, 1978--the delays being caused by a change in Government, which occurred in late 1977, resulting in delays in ratification of the Loan Agreement. Despite these early delays and the effect of inflation and fall in the value of the drachma (Drs) relative to the US dollar, the project has successfully achieved its objectives. The project closing date was extended four times to December 31, 1984. Although the loan account was left open until June 30, 1985, US$3.8 million of the Loan had to be cancelled. Most sub component objectives had, however, been either attained or exceeded by then. Internal inflation substantially exceeded appraisal expectations and as a result total project costs were Drs 6,091 million as against appraisal expectations of Drs 2,960 million--i.e., an increase of 106%, exacerbated by delays in executing the flood protection works, the largest project component. However, on account of the drachma falling against the dollar over tue life of the project, total costs in dollar terms were 122 less than appraisal expectations. (iv) Results 4. The economicrate of returnof all the directlyproductive components is 18% comparedto an appraisalestimate of 16%; inclusiveof social infrastructurecomponents and all other projectcosts, the rate of return is 131 comparedto the appraisalestimate of 121. The floodprotection and irrigationcomponent shows a rate of returnof only 3% as against 14X estimatedat appraisal.