A Document of the International Fund for Agricultural Development Republic of Armenia North West Agricultural Services Project Completion Evaluation Report December 2001 Report No. 1226-AM ii REPUBLIC OF ARMENIA NORTH WEST AGRICULTURAL SERVICES PROJECT (NWASP) (AM – 455) COMPLETION EVALUATION TABLE OF CONTENTS Abbreviations and Acronyms, Units, Fiscal Year, Currency Units Agreement at Completion Point i Map of project area vii Project Summary ix Executive Summary xi I. Introduction...................................................................................................................................................................1 A. Context for the Evaluation......................................................................................................... 1 B. The Project Plan ....................................................................................................................... 2 C. Target Group ............................................................................................................................ 2 D. Project Objectives..................................................................................................................... 2 E. Expected Effects and Assumptions............................................................................................. 4 II. Implementation Context..............................................................................................................................................6 III. Project Performance and Impact...............................................................................................................................7 A. Community Development.......................................................................................................... 8 B. Irrigation Rehabilitation and Water Management ...................................................................... 11 C. Rural Credit............................................................................................................................ 14 D. Agricultural and Livestock Development - Seed Production Services ......................................... 19 E. Agricultural and Livestock Development – Animal Health......................................................... 22 F. Project Coordination ............................................................................................................... 22 G. Financial and Economic Analysis............................................................................................. 24 H. Impact of Assumptions on Project Implementation and Outcomes.............................................. 24 IV. Direct Supervision......................................................................................................................................................26 A. Background............................................................................................................................ 26 B. Experience of Direct Supervision on NWASP........................................................................... 26 C. Costs...................................................................................................................................... 29 V. Summary Findings To Key Questions ....................................................................................................................30 VI. Recommendations ......................................................................................................................................................36 VII. Background, Rationale and Focus...........................................................................................................................41 VIII. Objectives, Key Questions, Expected Outputs, Expected Outcomes .................................................................41 IX. Partners Involved.......................................................................................................................................................42 X. The Evaluation Process.............................................................................................................................................43 XI. Work Plan....................................................................................................................................................................45 1 Introduction.................................................................................................................................................................55 XII. Presentations of Field Evaluation Teams ...............................................................................................................55 D. Seed Production...................................................................................................................... 55 E. Rural Credit............................................................................................................................ 56 F. Evaluation of Irrigation Rehabilitation and Water Management Activities .................................. 57 G. Community Development........................................................................................................ 58 XIII. Preliminary Report of Evaluation By Mission Leader ........................................................................................58 H. Impact of Project on Poor Farmers (as in Project Goal).............................................................. 58 I. Implementation of Project Principles........................................................................................ 59 J. Impediments to Project Effectiveness ....................................................................................... 59 K. Issues in Project Components................................................................................................... 59 L. Preliminary Thoughts on Issues To Consider for Future Projects/Activities................................. 60 LIST OF TABLES Table 1:Summary of Evaluation Team Assessments of Project Activities in 32 Project Communities 7 Table 2: SHEN Activities by Marz (to end of March 2001) 8 Table 3: Further Activities of CAGs by Marz (to end of 03/2001) 10 Table 4: ACBA loans disbursements 1998 - 2000 15 Table 5: Overdue Loans – ACBA Lending Programme 17 Table 6: Production of Cereal Seed and Potato Tubers 19 Table 7: ATG Input Credit Programme 20 Table 8: Planned and Actual Project Expenditure to end of March 2001 23 Table 9: Performance of Direct Supervision on NWASP against IFAD Indicators 27 Table 10: Average Total Supervision Costs per project, per year 29 Table 11: Communities and Clients Benefiting from NWASP 30 Table 12: Achievement indicators 32 LIST OF APPENDICES APPENDIX 1: Approach Paper APPENDIX 2: Summary of Outcomes of Evaluation LIST OF ANNEXES ANNEX 1: Field evaluation process ANNEX 2: Brief history and major events ANNEX 3: Evaluation of direct supervision of NWASP ANNEX 4: Summary of project expenditure ANNEX 5: Evaluation of project, IFAD project management, IFAD supervision and completion evaluation team ANNEX 6: Participants’ Comments on Evaluation ABBREVIATIONS AND ACRONYMS ACBA Agricultural Co-operative Bank of Armenia ADC Agribusiness Development Centre (supported by USAID) ASP Agricultural Services Project (new IFAD project following on from NWASP) ASIF Armenian Social Infrastructure Fund (funded by World Bank loan) ATG Armenian Technology Group ATGF Armenian Technology Group Foundation (a new organization based on ATG BCR benefit: cost ratio CAG civic action group CEM Completion Evaluation Mission CI Co-operating Institutions CLP Core Learning Partnership (part of IFAD evaluation framework) DSI Direct supervision by IFAD FET Field evaluation team of farmers and implementing agency staff used in the participatory evaluation FFW Food For Work GOA Government of Armenia IFAD International Fund for Agricultural Development IDP Irrigation Development Project IRP Irrigation Rehabilitation Project M&E Monitoring and Evaluation MIS Management Information System MOF Ministry of Finance MOFA Ministry of Food and Agriculture MTR Mid-Term Review NGO Non governmental organization NWASP North-West Agricultural Services Project O&M operations and maintenance PCC Project Coordinating Committee PCU Project Co-ordination Unit PIU Project Implementation Unit SAR Social Assessment Report prepared as part of IDP SME small – medium enterprise SPSA Seed Producers Support Association SSE small scale enterprises UNOPS United Nations Office for Project Services USD United States dollar UWUA Union of water users’ associations VA village association (for implementing credit activities) VAC village association committee VCL village council leader WUA water user’s association UNITS kg kilograms ha hectares m3 cubic metres FISCAL YEAR 1 January to 31 December CURRENCY UNITS Currency = dram (ARD) USD 1 = ARD 545 AGREEMENT AT COMPLETION POINT REPUBLIC OF ARMENIA NORTH WEST AGRICULTURAL SERVICES PROJECT (455-AM) AGREEMENT AT COMPLETION POINT The findings, recommendations and follow-up actions from the Completion Evaluation of the North West Agricultural Services Project that have been agreed by the members of the Core Learning Partnership created to guide the evaluation are described below1. IRRIGATION REHABILITATION 1. Only some farmers using water from schemes rehabilitated through NWASP are fully aware of the roles and responsibilities of the various parties involved in the delivery and