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.