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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 5061 PROJFrT PERFORMANCE AUDIT REPORT Public Disclosure Authorized YEMEN ARAB REPUBLIC SOUTHERN UPIANDS RURAL DEVELOPMENT PROJECT (CREDIT 545-YAR) Public Disclosure Authorized APRIL 26, 1984 Public Disclosure Authorized Operations Evaluation Department This document has a restricted distribution and my be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. WEIGHTS AND MEASURES (metric systems) 1 meter (m) = 3.28 feet 1 kilometer (km) = 0.62 miles I hectare (ha) = 2.47 acres 1 metric ton (ton) = 2,205 pounds ABBREVIATIONS YAR - Yemen Arab Republic ACB - Agricultural Credit Bank ACF - Agricultural Credit Fund ADB - Abu Dhabi Fund CARS - Central Agriculture Research Station CPO - Central Planning Organization CYDA - Confederation of Yemeni Development Associations ECWA - (United Nations) Economic Commission for West Africa ERR - economic rate of return FAO/CP - Food and Agriculture Organization (FAO)-IBRD Cooperative Program GCC - Governorates Coordinating Council GDP - Gross Domestic Product GNP - Gross National Product IBRD - International Bank for Reconstruction and Development ICB - International Competitive Bidding IDA - International Development Association IFAD - International Fund for Agricultural Development LDA - Local Development Association M&E - Monitoring and Evaluation MOH - Ministry of Health OED - Operations Evaluation Department PCO - Project Completion Overview PCR - Project Completion Report SURDPI - First Southern Uplands Rural Development Project SURDPII - Second Uplands Rural Development Project SURDU - Southern Uplands Rural Development Unit TDA - Tihama Development Authority UNDP - United Nations Development Programme VDC - Village Development Committee VWS - Village Water Supply Systems WHO - World Health Organization YAR - Yemen Arab Republic YBAEP - Yemeni-British Agriculture Engineering Project FOR OFFICIAL USE ONLY PROJECT PERLORMANCE AUDIT REPORT YEMEN ARAB REPUBLIC SOUTHERN UPLANDS RURAL DEVELOPMENT PROJECT (CREDIT 545-YAR) TABLE OF CONTENTS Page No. Preface ............................................. i Basic Data Sheet ................................. ii Highlights ............................... ........... iii PROJECT PERFORMANCE AUDIT MEMORANDUM I. SUMMARY .............................. ................ 1 II. ISSUES .............................................. 5 A. Institution-Building, Project Staff and Training 5 B. Measurement of Project Benefits ............... ... 6 IDA OVERVIEW OF THE PROJECT COMPLETION REPORT .... ............. 9 PROJECT COMPLETION REPORT I. SumDmary ........ o..................o...........................21 II. Background .... o...........o... .. o....................... .. 23 III. Formulation............................. 24 IV. Implementation.......................... 26 V. Project Impact ..................o...... ...... ..... 42 VI. Institutional Performance and Development ........ .o...57 VII. Project Benefits........................... 70 VIII. Economic Analysis . .. ..................... 89 IX. Constraints and Issues .... .......... ....... 93 X. Conclusions ............................................ 97 Annexes 1. Number of Villages in Project Area .................... 98 2. Summary of Farm Survey .................. ................ 99 3. Summary Results of ECWA Study on Land Tenure.........101 4. List of Contracts ............. ................ 104 5. Village Water Supply Schemes...... ............ ..... 110 6. Development of Health and Education .................... 112 7. Economic Analysis .................... 114 8. Main Results of the Agriculture Census ............... 116 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. TABLE OF CONTENTS (cat'd.) Page No. Annexes (Cont'd.) 9. Plant Protection ...................................... 117 10. Horticulture 118U........................................ IaRD 17511 (PPA) - 1 - PROJECT PERFORMANCE AUDIT REPORT YEMEN ARAB REPUBLIC SOUTHERN UPLANDS RURAL DEVELOPMENT PROJECT (CREDIT 545-YAR) PREFACE This is a performance audit of the Yemen Arab Republic Southern Uplands Rural Development Project, for which Credit 545-YAR in the amount of US$10.0 million was approved on May 6, 1975 under the special procedure. The Credit was fully disbursed and closed on March 31, 1982, without delay. The final disbursement was made on June 10, 1982. The Project was followed by Southern Uplands Rural Development Project II, which was partially financed by Credit 1067-YAR in the amount oi US$17.0 million, and was approved on September 16, 1980. This audit consists of a memorandum prepared by the Operations Evaluation Department (OED), a Project Completion Overview (PCO), and a Project Completion Report (PCR). The PCO, of June 30, 1983, was prepared by the Europe, Middle East and North Africa Regional Office and the PCR, dated December 1982, was prepared by Southern Uplands Rural Development Unit (SURDU) of the Ministry of Agriculture and Fisheries. The audit memorandum is based on a review of the Appraisal Report (No. 617-YAR) dated April 4, 1975, the President's Report (P-1497-YAR) of April 17, 1975, and the Development Credit Agreement dated May 13, 1975, together with information obtained from a review of project issues as contained in relevant Bank files and interviews with Bank staff who have been associated with the project. An OED mission which visited Yemen Arab Republic in July-August 1983 held discussions with Government and project officials and beneficiaries and reviewed project investments and programs. These interviews and observations also contributed to the conclusions of the audit as contained in the audit memorandum. The audit suggested some technical changes in the PCO and PCR which were accepted and have been included therein. On the basis of the above procedure, the audit concludes that the PCO and PCR together generally provide an adequate accounting of the project's background, implementation and impact. However, the audit elaborates on the problems of institution- building and measurement of project benefits which are important for current or possible future rural development projects to be supported by Bank/IDA financing in the Yemen Arab Republic as well as other countries. Copies of the draft version of this report were sent to the Borrower and cofinancier on January 4, 1984 for comments; however, none were received. OED acknowledges the valuable assistance and information provided to the audit mission by Government and project officials and beneficiaries which contributed significantly to the compilation and conclusions of this report. PROJECT PERPDRANCE AUDIT REPORT EMEN ARAB REPUBLIC SOUTHERN UPLANDS RURAL EELDPMENT PROJECT (CREDIT 545-TAR) BASIC DATA SHERT KEY PROJECT DATA Appraisal Actual or Actual as Z of Item Estimate Estimated Actual Appraisal Estimate Total Project Costs (USS million) 23.2 24.1 104 Credit Amount (US$ million) 10.0 10.0 100 Cofinancing (Abu Dhabi Fund) (US$ million) 10.0 10.4 104 Date Board Approval - 05/06/75 - Date Effectiveness 12/31/75 01/27/76 Date Physical Components to be Completed 09/30/81 12/30/61 - Months to Physical Completion 75 78 104 Closing Date 03/31/62 03/31/62 - Economic Rate of Return (M) 19 15 a - Institutional Performance - Satisfactory - Financial Performance Satisfactory - Beneficiaries 21,000 farm families 50,000 farm families CUMULATIVE DISBURSEMENTS FT76 FT77 FM78 FY79 FY80 161 FT82 Appraisal estimate (US$ million) 0.55 1.95 4.20 6.25 8.05 9.65 10.00 Actual (US$ million) - 0.27 2.45 4.33 6.44 8.80 10.00 Actual as Z of estimate - 14 58 69 60 91 100 Date of Final Disbursement: March 31, 1982 MISSION DATA Month/ No. of Mandays Performance Specialization Types of Mission Year Persons in Field Rating /b Represented /c Trend Id Problems Is Identification 05/73 3 36 If - - - Preparation 09/73 5 112 7- - - - Appraisal 04/74 5 150 - a.c,d.e,f - Subtotal 9 298 Supervision 1 10/75 3 18 1 a,c.f 2 u Supervision II 06/76 3 39 3 a,c,f 3 a.f.o Supervision III 10/76 4 52 3 a.c.d.f 2 a.f,o Supervision 1 03/77 3 27 3 c.e,f 1 a.,o Supervision V 06/77 3 21 2 c,e 1 3sf Supervision VI 11/77 2 9 2 c.e 1 3sf Supervision VII 06/78 3 6 2 c.d,f 1 s.f Supervision VIII 12/78 2 10 2 c.d.f 1 a.f Supervision IX 10/79 5 26 2 b,c,d,f 3 X,f Supervision 1 06/80 3 15 2 c.e.f 1 .f Supervision UI 02/81 4 13 2 a,c.d.f 1 f Supervision II 10/81 2 7 2 d,e 1 f Subtotal 37 245 Total 46 543 OTHER PROJECT DATA Borrower Yemen Arab Republic Executing Agency Ministry of Agriculture/Soutbrn Uplands Rural Development Unit (SURDU) Fiscal Year July 1-June 30, changed to January 1-December 30 on January 1. 1961 Same of Currency (abbreviation) Yemeni Sals (Yrla) Currency Exchange Rates: Appraisal Year Average 1975 US$1.00 - Yrls 4.50 Intervening Years Average 1976-1981 US$1.00 - Trls 4.50 Completion Year Average 1982 USS1.00 - Yrls 4.50 Follow-on Project Name Second Southern Uplands Rural Development Project Credit Number 1067-TAR. Credit Amount (US$ million) 17.0 Date Board Approval November 4, 1980 la See PPAM, para. 18. T 1 - Problem-free or Minor problems; 2 - Moderate problems TF a - Credit Specialist; b - Livestock Specialist; c - Agriculturist; 4 - Engineer; e - Agr. Econ.; f - Other. /d 1 - Improving; 2 - Stationary; 3 - Deteroratig To- a - managerial; f - financial;