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World Bank Document Document of The World Bank FOR OFFICIAL USE ONIY Public Disclosure Authorized Report No. 7543 PROJECT PERFORMANCE AUDIT REPORT Public Disclosure Authorized YEMEN ARAB REPUBLIC TIHAMA DEVELOPMENT PROJECTS II AND IV (CREDITS 805-YAR AND 978-YAR) DECEMBER 22, 1988 Public Disclosure Authorized Operations Evaluation Department Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only Inthe performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. GLOSSARY OF ABBREVIATIONS CACB - Co-operative Agricultural Credit Bank CPO - Central Planning Organization CARS - Central Agricultural Research Station CHTC - Central High Tendering Committee DCA - Development Credit Agreement DHV - DHV Counsulting Engineers , ECWA - Economic Commission for West aia EEC - European Economic Community ERR - Economic Rate of Return FAOCP - Food and Agriculture Organization of the United Nations/World Bank Cooperative Program GDP - Gross Domestic Proudet GNP - Gross National Product ICA - International Advisory Company ICB - International Competitive Bidding IDA - International Development Association KFAED - Kuwait Fund for Arab Economic-Development LDA - Local Development Association LRD - Land Resources Division of (0DM) HAF - Ministry of Agriculture and Fisheries M&E - Monitoring and Evaluation OED - Operations Evaluation Department ODM - Overseas Development Ministry (UK) O&M - Operation and Maintenance PCR - Project Completion Report PPAM - Project Performance Audit Memorandum PPAR - Project Performance Audit Report SAR - Staff Appraisal Report TDA - Tihama Development Authority TDPII - Tihama Development Project II TDPIV - Tihama Development Project IV UNDP - United Nations Development Program YAR - Yemen Arab Republic THE YMAEN ARAB REPUBLIC FISCAL YEAR July 1 - June 30 OFFICIAL USE ONLY THE WORLD SANK FOR Washington. D.C. 20433 U.S.A. Oice of orectw-eneral Operatimn Ivaluatie December 22, 1988 MEMORANDUM TO THE EXT.CUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Performance Audit Report on the Yemen Arab Republic Tihama Development Projects II and IV (Credits 805-YAR and 978-YAR) Attached, for information, is a copy of a report entitled "Project Performance Audit Report on Yemen Arab Republic Tihama Development Projects II and IV (Credits 805-YAR and 978-YAR)" 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 oficial duties. Its contents may not otherwise be disclosed without World Bank authorization. PROJECT PERFO14ANCE AUDIT REPORT YEMEN PlAB REPUBLIC TIHAMA DEVELOPMENT PROJECTS II AND IV (CREDITS 805-YAR and 978-YAR) Table of Contents Page No. PREFACE .... ........ .... *.. ........ .. ...... ............. I BASIC DATA SHEET ............ .............. ......... .#..... t i EVALUATION SUMMARY ......... .. ... ............. .. ............... viii PROJECT PERFORMANCE AUDIT MEMORANDUM I. Introduction .......... *................................. 1 II. The Development of the Tihama ........................... 2 III. The Wadi Zabid Experience ............... o................. 4 IV. Project Evolution, Definition, and Design ............... 7 V. Project Implementatiovn ......... ... ... .. ......... ..... 14 VI. Project Economics ........... o.................. 16 VII. Project Sustainability .............. ........ .. .......... 20 VIII. Lessons ........... 0... .... f......t o.......... .. ....... 23 PROJECT COMPLETION REPORT I. Highlights .............................................. 29 II. Introduction .............00....................0........... 31 III. Project Implementation ................... .. ........ .t. 31 IV. Origin, Preparation and Justification .................... 32 V. Tihama Development Project II .. *................... 33 VI. Tihama Development Project IV ......................... 35 VII. Economic Analysis ... oo* ......... ......... .......... 39 VIII. Institutional Performance ................................. 39 IX. Lessons Learned ..*.** .......... * ........ ........ 42 ATTACHMENTS 1. Comments from Borrower ............... .. ............. ............ 45 2. Comments from Region ............... .......... ........ ........ 53 3. Comments from Royal Netherlands Embassy - Sanaa ............... 57 4. Comments from Kuwait Fund for Arab Economic Development ....... 58 MAP 0........... ......... ............. ... ..... IBRD 20964 This document has a restricted distribution and may be used by r" ipients only in the performance of their olfcial duties. Its contents may not otherwise be disclosed without World Bnk authorization. 11 PROJECT PERFORMANCE AUDIT REPORT YEMEN ARAB REPUBLIC TIHAMA DEVELOPMENT PROJECTS II AND IV (CREDITS 805-YAR and 978-YAR) PREFAC F 1. This is the report of the performance audit of the Tihama Development Projects II and IV in the Yemen Arab Republic. The first project was partially financed by an IDA Credit of $10.5 millions and was approved by the Board in May 1978. The Credit was closed in June 1986 and was fully disbursed. The latter project was partially financed by an IDA credit of $5.5 million and was approved by the Board in January 1980. The credit was also closed in June 1986 and was fully disbursed. 2. The Project Performance Audit Report (PPAR) consists of: (i) an Evaluation Summary and a Project Performance Audit Memorandum (PPAM), prepared by the Operations Evaluation Department (OED) and; (ii) a Project Completion Report (PCR), dated March 26, 1987, prepared by the staff of the Europe, Middle East and North Africa Regional Office. 3. OED has reviewod the PCR against the President's Report, the Staff Appraisal Report (SAR), the Minutes of the Executive Director's Meeting at which the project was approved, and Bank files and documents related to the project. An OED mission visited the YAR in January 1988 to examine facilities and equipment and discuss the project with government officials. Available Bank staff and consultants, who were associated with or knowledgeable about the project, were also interviewed. 4. Following standard procedures, OED sent copies of the draft PPAR to the Government, cofinanciers and executing agencies for comments. The comments received from the Borrower are reproduced as Attachment I to the PPAR. The EMENA Region submitted comments too lengthy to be fully reflected in footnotes and are reproduced as Attachment II. Comments received from the Government of the Netherlands are included as Attachment III while those received from the Kuwait Fund for Arab Economic Development are reproduced in Attachment IV. Many of the comments represent useful qualifications and extensions of the PPAM and are accepted as such. With some the Audit is in disagreement and notes to this effect are made either in the margin (Attachment I) or as footnotes (Attachment II). PROJECT PERFORMANCE AUDIT REPORT YEMEN ARAB REPUBLIC TIRAMA DEVELOPMENT PROJECT II (CREDIT 805-YAR) BASIC DATA SHEET KEY PROJECT DATA Actual as % Appraisal Actual/ of Appraisal Item Estimate Forecast Estimate Total Project Cost (US$ million) 39.5 41.0 96 Cost Overrun (%) - 4 Credit Amount (US$ million) 10.5 10.5 100 Disbursed (US$ million) 10.5 10.5 100 bate of Effectiveness 09178 03179 Date Project Completion 06184 06/86 Time overrun (%) - 26 Economic Rate of Return (%) 23 Greater than 10%/1 CUMULATIVE ESTIMATED AND ACTUAL DISBURSEMENTS FY79 FY80 FY81 FY82 FY83 FY84 FY85 FY86 Estimated 1.5 4.2 7.0 9.5 10.5 10.5 10.5 10.5 Actual 0.0 0.0 3.6 6.3 7.8 8.6 9.5 10.5 Actual/Est.(%) - - 51 66 74 82 90 100 PROJECT DATES Item Orikinal Plan Actual or Reestimate First Mention in Files 03/76 Appraisal 09/77 09/77 Negotiations 04/78 04/78 Board Approval 05/78 05/78 Closing 06/84 06/86 11 See para 51 page 19 of the PPAM for an explanation. iv STAFF INPUTS (staff weeks) FY74/76 FY77 FY78 FY79 FY80 Y81 F2 FY83 Pre-Appraisal 0.9 33.8 5.6 Appraisal 57.7 Negotiations 4.1 Supervision 3.3 10.1 9.0 8.8 19.5 Other 0.7 0.1 2.8 - -. 2 0.3 Total 1.6 33.8 70.2 .3.3 10.1 9.2 9.1 19.5 FY84 FY85 FY86 FY87 Total Pre-Appraisal 40.3 Appraisal 57.7 Negotiations 4.1 Supervision 9.9 8.8 14.1 3.0 86.6 Other 0.1 4.2 Total 9.9 8.8 14.3 3.0 192.7 MISSION DATA Date No. of Specializations/2 Performance (mo/yrj. Persons Represented Rating Appraisal TDPII 9/77 3 EI'A/Ec N.A. Supervision TDPIV 12/78 1 A 1/- Appraisal 2/79 5 E/A/L/2Ec Supervision I 11/79 2 E/A 1/1 Supervision II 6/80 3 E/A/Ec 1/2 Supervision III 2/81 5 A/C/E/F/T 1/2 Supervision IV 12/81 2 A/E 2/1 Supervision V 9/82 3 E/Ec/A 2/1 Supervision VI 5/83 3 E/A/C 2/1 Supervision VII 11/83 3 E/A/C 211 Supervision VIII 11/84 3 E/A/C 2/1 /2 A=Agronomist, E-Engineer, Ec-Economist, L=Livestock Specialist, C=Credit Specialist; T=Training Specialist. v OTHER PROJECT DATA Borrower: The Yemen Arab Republic Executing Agencies: The Tihama Development Authority and The Agricultural Credit Fund Follow-on Projects: Tihama Development Project III, Credit 880-YAR, 1979. Tibama Development Project IV, Credit 978-YAR, 1979. Tihama V Regional Agricultural Development Project, Credit 1667-YAR, 1986. Fiscal Year of Borrower: July 1 - June 30 vi PROJECT PERFORMANCE AUDIT REPORT YEMEN ARAB REPUBLIC TIHAMA DEVELOPMENT PROJECT IV (CREDIT 978-YAR) BASIC DATA SHEET KEY PROJECT DATA Actual as % Appraisal Actual/ Item of Appraisal Estimate Forecast Estimate Total Project Cost (US$ million) 20.8 22.0 Cost Overrun 94 (%) - Credit 6 Amount (US$ million) 5.5 Disbursed 5.5 100 (US$ million) 5.5 Date of Effectiveness 5.5 100 08/80 04/81 Date Project Completion 06/85 06/86 Time overrun (%) - 7 Economic Rate of Return (%) 17 Less than 5 %/3 CUMULATIVE ESTIMATED AND ACTUAL DISBURSEMENTS FY80 FY81 FY82 FY83 FY84 FY85 FY86 Actual Estimate (US$ million) 0.1 0.9 2.9 Actual 4.8 5.5 5.5 5.5 (US$ million) 0.0 0.0 Actual/Est.(%) 0.6 2.2 3.3 4.6 5.5 - - 21 46 60 84 100 PROJECT DATES Item Original Plan Actual or Reestimate First Mention in Files 03/76 Appraisal 09/77 Negotiations 02/79 11/79 11/79 Board Approval 01/80 Closing 01/80 06/85 06/86 /3 See paras 50, 51, and 52 of the PPAM for an explanation.
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