Colombia - Second Caqueta Rural Settlement Project

ac Of The World Bank FOR OFFICIAL USE ONLY Re1t Nob 5385 PROJECT COHPLETION REPORT COLOMBIA CAQUETA RURAL SETTLEMENT PROJECT (PHASE II) LOAN 1118-CO December 26, 1984 Projects Department Latin America and the Caribbean Regional Office This document has a restricted distributin and may be used by recipients oly in the performance of their officil dues. Its eontents nmy not othrwise be dislosed without World Bank astoiation.  Currene,y US$1 Pesos flnO Peso Col$ = US$0.01 Weights and Measures Metric System . meter (m) = 39.37 inches 1 kilometer (km) 0.62 miles 1 Hectare (ha) = 2.47 acres 1 square kilometer (km2) = 0.386 square miles 1 kilogram (kg) = 2.205 pounds I ton (t) - 2,205.0 pounds I liter (1) = 0.264 gallons Abbreviations CAJA AGRARIA = Agricultural Credit, Industrial and IMining Ban.k CAMINOS VECINALES = Rural Roads Agency CECORA = Cooperative Development Center of Agrarian Reform Ltd. CIAT = International Center for Tropical Agriculture COOPERAGRO = Agricultural Cooperative of Caqueta HIMAT = Colombian Institute for Hydrology, Meteorology and Land Improvement ICA = Colombian Agricultural Research Institute IDEMA = Agricultural Marketing Institute INDERENA = Institute of Natural Resources INCORA = Institute of Agrarian Reform USAID = United States Agency for International Development  FOR OFFICIAL USE ONLY COLOMBIA CAQUETA RURAL SETTLEMENT PROJECT (PHASE II) (Loan 1118-CO) PROJECT COMPLETION REPORT TABLE OF CONTENTS Page No. Preface ...................i Basic Data Sheet ...................ii Highlights ............iii I. INTRODUCTION ...... ..................................... 1 II. BACKGROUND .............. .. 1 III. PROJECT FORMTULATION ....... ................. ............... 1 IV. THE PROJECT ....................... ................. 3 A. Project Objectives and Description ................. 3 V . PROJECT IMPLEMENTATION ..... ............................. 4 A. Key Events ........................................... 4 B. Implementation Problems ... . 4 C. Components ........................................... 5 D. Procurement ....... ............................... 9 E. Project Costs and Financing .......................... 9 F. Disbursements ...... .................................. 10 G. Compliance with Loan Covenants ....................... 10 VI. AGRICULTURAL AND ECONOMIC IMPACT ..... ............ it A. Agricultural Impact .................................. 11 B. Environmental Impact of Project Settlement Process on Soil Conservation ............................... 13 C. Economnic Impact ...................................... 14 VII. INSTITUTIONAL PERFORMANCE ................................ 15 A. INCORA ............................................... 15 B. Other Implementing Agencies .......................... 15 VIII. BANK PERFORMANCE .................... ..................... 16 IX. THE PROJECT AND CIVIL DISORDER ........................... 16 K. LESSONS LEARNED ....... .............. ..................... 17 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 (CONT'D) Page No. ANNEXES 1. Allocation of Loan Funds ................................. 19 2. Revised Physical Targets ...... .. .... .. .... 20 3. Amended Loan Agreement ................................... 21 4. Project Cost .............*.............................. 23 5. Distribution of Farm Size, 1982 ...............*...e..* 24 6. Economic Cash Flow ................. .......**..........c 25 7. Comments Received from the Colombian Agricultural Research Institute .............................. 26 8. Comments Received from the Borrower's Rural Roads Agency . 27 9. Comments Received from the Borrower's Institute of Agrarian Reform ............................... .0... 28 MAP IBRD 11000 (P.P.A.)  COLOMBIA CAQUETA- RURAL SETTLEMENT PROJECT (PHASE II) (Loan 1118-CO) PROJECT COMPLETION REPORT p~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Preface The loan, US$19.5 million, was approved by the Board on May 22, 1975, signed 3n June 2, 1975, and became effective on April 1, 1976. The original Closing Date was expected to be October 31, 1979, but was ultimately extended to December 31, 1982. The final disbursement was made on June 1, 1983, at which time US$1.0 million was also cancelled. The Project Completion Report (PCR) was prepared by the Bank's Latin America and the Caribbean Regional Office. Because of civil disorders in Colombia it was not possible to visit the project area during preparation of the report. Data sources for this report were the Staff Appraisal Report, the President's Report, the Loan Agreement, the Project Completion Report prepared by INCORA (Institute of Agrarian Reform), Bank supervision reports, correspondence with the Borrower, and internal Bank memoranda on project issues as contained in relevant Bank files. A copy of the draft report was sent to the Borrower on September 11, 1984. Comments received from the Colombian Agricultural Research Institute and the Borrower's Rural Roads Agency and Institute of Agrarian Reform are in Annexes 7-9 respectively. This project has not been subjected to an audit by OED.  CWLMiIA CACtUErA mueAL SETTLDENTf FDJKT CP44SE Ii) (Lou't 115E 18-COtD11 asic Doat sheet Appraisal Actual or Ac-tua as S ot Key Project Dat Estimate Estimte Acua Aoaraisal Estl_tA Total Project Costs (toSS *111 .) 37.1 40.4 t09 Lam Amount (l55l m I llon. 19.5 19iL 100 - DisburSed - 18.5 - Cancel d - .0 - Dat Board lovaI - 05r22zn5 Vat. of Etftctlnnss 1002/75 04101/76 Closing Date 10/31/79 12131/2 Econmic Rat ot Return S 15.6 1 ao _mer of Direct BeticIarIes 2.850