Niger - Small Rural Development Operations Project

 ICRR 10275 Report Number : ICRR10275 ICR Review Operations Evaluation Department 1. Project Data : OEDID: OEDID : C1890 Project ID : P001963 Project Name : Small Rural Development Operations Project Country : Niger Sector : Institutional Development L/C Number : Cr. 1890-NIR Partners involved : Swiss Development Corporation Prepared by : Ridley Nelson, OEDST Reviewed by : Laurie Effron, OEDCR Group Manager : Alain Barbu Date Posted : 03/19/1999 2. Project Objectives, Financing, Costs and Components : Total Project Costs: US$17.5 m; IDA Financing US$9.3 m (SDR 7.1 m), Swiss Development Corporation (SDC) US$7.58 m. Main objectives : 1. To be the first phase of a program to support Small Rural Operations (SROs); 2. To develop local capacity to prepare, appraise, execute, and evaluate SROs with local participation; 3. To strengthen provincial and district technical services to provide support to SROs . Main components : A. small rural development operations (investments in bottomland development, small irrigated farming, fruit trees, soil conservation, water harvesting ); B. extension; C. training; D. organization of beneficiaries; E . studies surveys and consultant services . 3. Achievement of Relevant Objectives : Most objectives achieved, although some doubts about whether the institutional capacity established is robust enough - needs follow-up and consolidation. Local capacity developed . technical services strengthened . Objectives of investment component largely achieved, over 80% success rate in terms of SROs still operating . 4. Significant Achievements : Institutions strengthened. Processes tested and established . Implementation experience well documented and lessons spread to other projects . 88 SROs financed (11 abandoned). About 30,000 families benefited with significant income increases . 2,200 farming units owned and operated by women's groups . Positive impact on food security. Decentralized financial systems achieved . Some success with functional literacy related to the project groups, 45 libraries and 25 printing presses financed by villagers themselves . Initiation of some Savings and Loan Associations, an innovation to project design proposed by SDC . 5. Significant Shortcomings : Reimbursements into Development Fund were low . Problems with land tenure disputes . Ownership of Development Fund not clear. Farmers needed to be empowered more clearly to manage, legal status of fund needed, rules for account operation too complex . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Substantial Substantial Sustainability : Uncertain Uncertain Bank Performance : Satisfactory Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : 1. Operations designed to develop local capacity and a participatory culture require a long learning curve and therefore a long-term commitment. 2. Clarity with respect to costs and benefits, legal protection, and simple operating procedures are important for ensuring ownership and credibility in small rural development operations . 3. Decentralized financial management at the local community level is central to successful implementation of participatory approaches. 4. Investments in community-based agricultural enterprises call for prior resolution of any outstanding land tenure constraints . 8. Audit Recommended? Yes No Why? Because it is a useful case of an early completed decentralized fund aimed at poverty alleviation and has important design and sustainability questions with broader application . Could make a useful case study for s staff training module. 9. Comments on Quality of ICR : Satisfactory ICR, clear description of project, good input by borrower . However, the Future Operations section is supposed to address the future operation of the investments not future Bank operations of the same type .