Rwanda - Mutara Agricultural Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 3520 PROJECT PERFORMANCE AUDIT REPORT RWANDA: MUTARA AGRICULTURAL DEVELOPMENT PROJECT (CREDIT 439-RW) June 2 4 , 1 9 8 1 Operations Evaluation Department I 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. I  FOR OFFICIAL USE ONLY WEIGHTS AND MEASURES 1 m e t e r (m) = 1.1 y a r d s 1 k i l o m e t e r (km) - 0.62 m i l e s 1 hectare (ha) = 2.47 a c r e s ABBREVIATIONS CIDA - Canadian I n t e r n a t i o n a l Development Agency ISAR - I n s t i t u t de r e c h e r c h e agronomique du Rwanda ODAM = Off i c e du Developpement A g r i c o l e du Mutara ( t h e o r i g i n a l name f o r OVAPAM) OVAPAM = O f f i c e pour l a V a l o r i s a t i o n P a s t o r a l e e t A g r i c o l e du Mutara This document has a restricted distribution and may be used by recipients only in the performance of duties. Its contents may not otherwise be disclosed without World Bank authorization.  PROJECT PERFORMANCE AUDIT REPORT RWANDA: MUTARA AGRICULTURAL DEVELOPMENT PROJECT (CREDIT 439-RW) TABLE OF CONTENTS P a g e No. Preface ........................................................... i Basic D a t a S h e e t.................................................. ii Highlights ............................. ........................... iii PROJECT PERFORMANCE AUDIT MEMORANDUM I. SUMMARY ................................................. 1 11. MAIN ISSUES ............................................. 4 A. I n s t i t u t i o n a l and O r g a n i z a t i o n a l A s p e c t s ............ 4 B. The S u c c e s s o f t h e Group Ranch S u b - p r o j e c t .......... 6 C. Slow P r o g r e s s i n A g r i c u l t u r a l P r o d u c t i o n ............ 7 D. Lack o f C o o r d i n a t i o n Amoag E x t e r n a l Assistance Agencies ............................... 8 Annex: Borrower's Comments ........................................ 1Oa ATTACFIMENT: PROJECT COMPLETION REPORT INTRODUCTION ............................................ PROJECT IDENTIFICATION, PREPARATION AND APPRAISAL A. P r o j e c t I d e n t i f i c a t i o n and P r e p a r a t i o n .............. B. C. P r o j e c t A p p r a i s a l and A p p r o v a l P r o j e c t O b j e c t i v e s and D e s c r i p t i o n ...................... .................. PROJECT IMPLEMENTATION A. .................................... P r o j e c t Start-Up ................................ . A c h i e v e m e n t s t o Date B AGRICULTURAL IMPACT ..................................... PROJECT BENEFITS ......................... e.............. VI. INSTITUTIONAL ASPECTS ......a. em......................... VII. BANK PERFORMANCE .......................................a VIII . CONCLUSION, FUTURE ASPECTS AND OUTSTANDING ISSUES ....... Tables Annex 1 Map  PROJECT PERFORMANCE AUDIT REPORT RWANDA: MUTARA AGRICULTURAL DEVELOPMENT PROJECT (CREDIT 439-RW) T h i s i s a performance a u d i t of t h e Mutara A g r i c u l t u r a l Development P r o j e c t f o r which C r e d i t 439-RW was approved i n November 1973 i n t h e sum of USS3.8 m i l l i o n and c l o s e d f u l l y d i s b u r s e d i n December 1979. The a u d i t r e p o r t c o n s i s t s of a p r o j e c t c o m p l e t i o n r e p o r t (PCR) d a t e d August 1 3 , 1980. The PCR was p r e p a r e d by t h e E a s t A f r i c a Regional O f f i c e i n J a n u a r y - F e b r u a r y 1978 when a Phase I1 p r o j e c t was a p p r a i s e d , and was finalized a f t e r t h e project's closing date. An OED m i s s i o n v i s i t e d Rwanda i n J a n u a r y 1981. D i s c u s s i o n s were h e l d w i t h o f f i c i a l s of t h e M i n i s t r y of A g r i c u l t u r e , t h e M i n i s t r y o f F i n a n c e s and t h e P r o j e c t A u t h o r i t y . The i n f o r m a t i o n s o b t a i n e d d u r i n g t h e m i s s i o n were used t o t e s t t h e v a l i d i t y of t h e c o n c l u s i o n s o f t h e PCR. The a u d i t memorandum i s based on t h e mission's d i s c u s s i o n s , on i n t e r v i e w s w i t h Bank s t a f f , and on a r e v i e w of t h e A p p r a i s a l Report (No. PA 112b) d a t e d October 1 9 , 1 9 7 3 , t h e P r e s i d e n t ' s R e p o r t (No. 1 3 3 1 RW) o f October 25, 1 9 7 3 , t h e C r e d i t Agreement d a t e d November 29, 1973, t h e PCR, and c o r r e s p o n - d e n c e w i t h Borrower and i n t e r n a l Bank memoranda on p r o j e c t i s s u e s c o n t a i n e d i n r e l e v a n t Bank f i l e s . A copy of t h e d r a f t r e p o r t was s e n t t o t h e Borrower f o r comments on A p r i l 2 8 , 1981. Comments r e c e i v e d from t h e D i r e c t o r o f t h e P r o j e c t A u t h o r i t y are i n Annex of t h e PPAM. Suggested changes have been i n t r o d u c e d o r d i f f e r e n t views footnoted. The a u d i t f i n d s t h a t t h e PCR c o v e r s a d e q u a t e l y t h e p r o j e c t ' s s a l i e n t f e a t u r e s and t h e PPAM g e n e r a l l y a g r e e s w i t h t h e c o n c l u s i o n s . I n addition t o summarizing t h e o b j e c t i v e s and r e s u l t s of t h e p r o j e c t , t h e PPAM expands upon some i s s u e s b e c a u s e of t h e i r i m p o r t a n c e t o t h i s as w e l l a s o t h e r a g r i c u l t u r a l development p r o j e c t s I n t h e same r e g i o n . The v a l u a b l e a s s i s t a n c e p r o v i d e d by t h e Government o f Rwanda and t h e p r o j e c t s t a f f met d u r i n g t h e p r e p a r a t i o n o f t h i s r e p o r t i s g r a t e f u l l y acknowledged.  PROJECT PERFORMANCE AUDIT BASIC DATA SHEET RWANDA: MUTARA AGRICULTURAL DEVELOPMENT PROJECT (CREDIT 439-RW) KEY PROJECT DATA Actual o r Actual a s X Appraisal Estimated of A p p r a i s a l Estimate Actual Estimate P r o j e c t Costs (US$ m i l l i o n ) 4.3 4.3h look 3.8 3.8 C r e d i t Amount (US$ m i l l i o n ) Date Board Approval 03/21/72 11/06/73 100 - Date E f f e c t i v e n e s s 03/04/74 09/05/74 Date P h y s i c a l Component Completed 06/30/79 06/30/79 P r o p o r t i o n then Completed ( % ) 100 looh C l o s i n g Date 12/31/79 12/04/79 Economic P a t e of Return ( % > 12.5 Mrginal Number of Family B e n e f i c i a r i e s 5,700 8,975 CUMULATIVE DISBURSEMENTS - FY75 - FY76 - FY77 - FY78 A p p r a i s a l E s t i m a t e (US$ m i l l i o n ) 1.7 2.2 2.9 3.3 Actual (US$ m i l l i o n ) .3 1.0 1.6 2.6 A c t u a l a s % of e s t i m a t e 18 45 55 79 Date of F i n a l Disbursement-12/04/79 MISSION DATA Date No. of Manweeks Performance Types of Mission M o n t h / ~ e a r Persons i n Field ati in& =& problem& 10166 - - - - Identification I I d e n t i f i c a t i o n I1 11/68 - - - - Preparation I 04/69 3 7.2 - - - P r e p a r a t i o n I1 10170 2 6.0 - P r e p a r a t i o n 111 03/71 1 1.6 - - Appraisal 06/71 5 21.0 - - Appraisal F o l l o r u p 10171 4 4.8 1.4 - - - - Follow-up 05/72 1 Follow-up 10172 1 1.4 - - Follorup 05/73 2 2.8 - - Follow-up 08/73 2 2.8 - - Supervision I 03/74 2 2.4 2 - S u p e r v i s i o n I1 02/75 2 2.4 3 2 S u p e r v i s i o n I11 08/75 2 3.2 3 3 Supervision I V 11/75 3 6.0 1 1 (Review Mission) Supervision V 03/76 3.0 2 2 Supervision V I 10176 1.2 2 2 Supervision V I I 03/77 2.8 2 2 S u p e r v i s i o n VIII 09/77 1.4 2 2 Completion 1-2/78 7.6 - - Supervision I X 12/78 1.6 2 2 Supervision X 09/79 2.4 3 3 Supervision X I 12/79 -1.4 2 2 Total OTHER PROJECT DATA Borrower Republic o f Rwanda Executing Agency OVAPAM F i s c a l Year of Borrower - January 1 December 31 Name of Currency Ruandese F r a n c (RF) Currency Exchange Rate A p p r a i s a l Year Average (1973) US$ 1.00 -- RE 83 I n t e r v e n i n g Years Average (1974-77) Completion Year Average (1978) F o l l o r o n Project US$ 1.00 US$ 1.00 - RF 92 RF 91.91 Mutara A g r i c u l t u r a l 6 L i v e s t o c k Development P r o j e c t - Phase I1 C r e d i t Number Cr .937-RW Amount (US$ m i l l i o n ) 8.75 Date Board Approval J u l y 1 3 , 1979 - /a - /b P r o j e c t was s c a l e d down. - 1 problem-free o r minor problems, 2 - moderate problems, 3 - major Id -- problems. - 1 improving, 2 = s t a t i o n a r y , 3 -- deteriorating. - - F. - (1' financial, M delays. managerial, T technical. E economic, P political,  PROJECT PERFORMANCE AUDIT REPORT RWANDA: MUTARA AGRICULTURAL DEVELOPMENT PROJECT (CREDIT 439-RW) HIGHLIGHTS The p r o j e c t , w h i c h was t h e f i r s t Bank i n v o l v e m e n t i n Rwanda's a g r i c u l t u r a l s e c t o r , aimed a t t h e s e t t l e m e n t of a b o u t 9,000 farming f a m i l i e s on i n d i v i d u a l p l o t s o f a b o u t 2 ha and of a b o u t 1 , 0 0 0 p a s t o r a l i s t f a m i l i e s on 63 r a n c h e s , a s w e l l a s t h e e s t a b l i s h m e n t of management and p r o j e c t - r e l a t e d extension services. C o n t r a r y t o t h e i n s t i t u t i o n a l system under which similar s e t t l e m e n t schemes had been e s t a b l i s h e d i n t h e p a s t , t h e p r o j e c t was t o be implemented by a n i n d e p e n d e n t p a r a s t a t a l d e v e l o p m e n t a g e n c y , t o b e f i n a n c e d m a i n l y from f e e s p a i d by t h e b e n e f i c i a r i e s . P r o j e c t i m p l e m e n t a t i o n e n c o u n t e r e d s e r i o u s d i f f i c u l t i e s and d e l a y s m o s t l y because f a r m e r s and p a s t o r a l i s t s r e f u s e d t o s i g n s e t t l e m e n t c o n t r a c t s and s t a r t e d s q u a t t i n g i n t h e p r o j e c t a r e a s i n c e o t h e r s i m i l a r p r o j e c t s d i d n o t l e v y a s e t t l e m e n t f e e from p a r t i c i p a n t s . _-Whgp.the p r i n c i p l e of c o s t reecsvery t o g e t h e r w i t h t h e p r o j e c t a u t h o r i t y c s autonomy was f i n a l l y abolished, p r o j - e c t i m p l e m e n t a t i o n proceeded r e a s o n a b l y w e l l and ~e!_f;~aent-,nas properly , ) o r g a n i z e d . Although t h e p r o j e c t ' s economic r a t e of r e t u r n i s a t b e s t m a r g i n a l ' + a s a g a i n s t a n a p p r a i s a l e s t i m a t e o f 12.52, i t s s o c i a l impact i s c o n s i d e r a b l e . The f o l l o w i n g p o i n t s may be o f s p e c i a l i n t e r e s t : J- i n s u f f i c i e n t a t t e n t i o n was p a i d t o p r i o r e x p e r i e n c e o f o t h e r a g e n c i e s w i t h s i m i l a r p r o j e c t s i n t h e c o u n t r y (PPAM, p a r a s . 13-18 and PCR, p a r a s . 1 8 , 22, 23 and 7 2 ) ; - e n c o u r a g i n g t h e e s t a b l i s h m e n t of autonomous p r o j e c t u n i t s f o r a s i n g l e p r o j e c t and a s t r i c t l y l i m i t e d p e r i o d c a u s e s problems (PPAM, p a r a s . 13-18) ; - c o s t r e c o v e r y from a p o p u l a t i o n segment t h a t b e l o n g s t o t h e p o o r e s t , i s d i f f i c u l t e s p e c i a l l y i f s i m i l a r programs a r e f r e e o f c h a r g e (PPAM, p a r a s . 13-18 and PCR, p a r a . 8 7 ) ; - t h e t e c h n i c a l package recommended f o r t h e Group Ranch o p e r a t i o n proved s u c c e s s f u l b u t had o n l y a l i m i t e d impact on agricu&&1' p r o d u c t i o n (PPAM, p a r a s . 19-23 and PCR, p a r a s . 50-52 and 61-63); and - l a c k of c o o r d i n a t i o n among e x t e r n a l a s s i s t a n c e a g e n c i e s l e d t o d i f f i c u l t i e s and p o i n t s t o t h e need f o r b e t t e r p l a n n i n g (PPAM, p a r a s . 24-29).  PROJECT PERFORMANCE AUDIT MEMORANDUM RWANDA: MUTARA AGRICULTURAL DEVELOPMENT PROJECT (CREDIT 439-RW) Background 1. Rwanda i s one of t h e s m a l l e s t (26,340 km2) and most d e n s e l y popu- l a t e d (184 i n h a b i t a n t s / k m 2 ) c o u n t r i e s i n A f r i c a . A g r i c u l t u r e i s Rwanda's most i m p o r t a n t r e s o u r c e and c o n t r i b u t e s 44% of GNP, a c c o u n t s f o r 87% of e x p o r t e a r n i n g s and s u p p o r t s 95% of i t s 5 m i l l i o n p e o p l e . I n view of i t s a l r e a d y h i g h p o p u l a t i o n d e n s i t y , and because p o p u l a t i o n i s i n c r e a s i n g a t t h e r a t e of 2.9% p e r annum, s h o r t a g e of l a n d i s one of Rwanda's g r e a t e s t c o n s t r a i n t s t o a g r i c u l t u r a l development. S i n c e 1953, and i n o r d e r t o a c h i e v e p r o p e r l a n d u s e , t h e Government h a s a d o p t e d a q u i t e s u c c e s s f u l a n d l o w - c o s t t y p e o f s e t t l e m e n t scheme c a l l e d "paysannat" whereby f a r m e r s a r e i s s u e d i n d i v i d u a l p l o t s of a b o u t 2 ha i n p e r p e t u a l and i n h e r i t a b l e u s u f r u c t ( s i n c e a l l l a n d belong t o t h e s t a t e ) . The p l o t s a r e s i t e d on e i t h e r s i d e of r o a d s which f o l l o w t h e c o u n t o u r l i n e s around t h e h i l l s . The Government p r o v i d e s minimum b a s i c s e r v i c e s s u c h a s w a t e r s u p p l y , s c h o o l s and d i s p e n s a r i e s , a s w e l l a s r e l a t i v e l y i n t e n s i v e extension s e r v i c e s while b e n e f i c i a r i e s a r e responsible f o r c l e a r i n g t h e i r p l o t s and p l a n t i n g a n t i - e r o s i o n hedges. About 95% of t h e c u l t i v a t e d l a n d i s u s u a l l y p l a n t e d w i t h food c r o p s ( m a i n l y bananas, sorghum, p e a s a n d m a n i o c ) a n d 5% w i t h c o m m e r c i a l c r o p s , m o s t l y c o f f e e . When t h e Government approached t h e Bank i n mid-1967 f o r a s s i s t a n c e w i t h some of t h e a g r i c u l t u r a l p r o j e c t s l i s t e d i n i t s Development P l a n f o r 1967-72, about 20,000 f a m i l i e s had a l r e a d y been s e t t l e d i n Rwanda by t h e M i n i s t r y of A g r i c u l t u r e and L i v e s t o c k under a dozen of Paysannats' schemes, a number of which had been p a r t l y f i n a n c e d by t h e European Development Fund (EDF). P r o j e c t Design 2. The p r o j e c t was t h e f i r s t Bank involvement i n Rwanda's a g r i c u l t u r a l sector. I t was i d e n t i f i e d i n 1968, and p r e p a r e d i n 1969-71, by t h e FAO~IBRD C o o p e r a t i v e Program. The Mutara r e g i o n had been s e l e c t e d by t h e Government f o r l i v e s t o c k and a g r i c u l t u r a l development a s i t was a t t h a t t i m e r e l a t i v e l y u n u s e d and l i t t l e p o p u l a t e d . The i d e n t i f i c a t i o n m i s s i o n h a d p r e p a r e d a p r o j e c t w i t h two major components: ( i ) a s e t t l e m e n t scheme ( p a y s a n n a t ) f o r 4,250 f a r m e r s on a b o u t 12,000 ha, i n c l u d i n g t h e r e c l a m a t i o n of marshland a l o n g a r i v e r and ( i i ) a 33,000 ha c o o p e r a t i v e r a n c h f o r beef p r o d u c t i o n . The a p p r a i s a l m i s s i o n ( J u n e 1971) i n t r o d u c e d two i m p o r t a n t changes i n p r o j e c t d e s i g n by d e l e t i n g t h e m a r s h l a n d r e c l a m a t i o n c o m p o n e n t , w h i c h was f o u n d uneconomic, and r e d e s i g n i n g t h e l i v e s t o c k component towards t h e development of group r a n c h e s based on communal g r a z i n g r i g h t s i n s t e a d of one l a r g e coopera- t i v e r a n c h which was found t o p r e s e n t s e r i o u s t e c h n i c a l and m a n a g e r i a l r i s k s . 1/ - Adapted from t h e PCR. 3. The a p p r a i s a l m i s s i o n a l s o proposed t h a t a n i n d e p e n d e n t p a r a s t a t a l development a g e n c y ( " o f f i c e " ) be e s t a b l i s h e d t o implement t h e p r o j e c t . The o f f i c e was t o be managed by a n e x p a t r i a t e team and i t s f i n a n c i a l r e s o u r c e s were t o come b o t h from e x t e r n a l f i n a n c i n g ( d u r i n g t h e development p e r i o d ) and fees paid by t h e b e n e f i c i a r i e s . 4. The c r e d i t was s u c c e s s f u l l y n e g o t i a t e d i n J a n u a r y 1972 b u t t h e Government l a t e r o b j e c t e d t o c r e a t i n g t h e autonomous o f f i c e and proposed t h a t t h e M i n i s t r y o f A g r i c u l t u r e and L i v e s t o c k b e r e s p o n s i b l e f o r p r o j e c t e x e c u t i o n and s i g n a c o n t r a c t w i t h a c o n s u l t i n g f i r m a s t h i s was t h e c u r r e n t p r a c t i c e f o r o t h e r p r o j e c t s i n Rwanda. The Bank r e j e c t e d t h e Government's p r o p o s a l and no p r o g r e s s was made o n t h i s i s s u e u n t i l May 1 9 7 3 when t h e Bank s e n t a p o s t - a p p r a i s a l m i s s i o n t o Rwanda and s u c c e e d e d i n c o n v i n c i n g t h e Government t o e s t a b l i s h t h e O f f i c e d e V a l o r i s a t i o n P a s t o r a l e e t A g r i c o l e du Mutara (OVAPAM). S i n c e meanwhile p r o j e c t c o s t s had i n c r e a s e d , t h e m i s s i o n somewhat r e d u c e d t h e p r o j e c t s c o p e and r e - e s t i m a t e d p r o j e c t c o s t a t USS4.3 m i l l i o n i n s t e a d o f USS3.7 m i l l i o n . 5. A s a p p r o v e d by t h e Board i n November 1 9 7 3 , t h e p r o j e c t c o n s i s t e d o f : ( i ) a P a y s a n n a t sub-project'-on a b o u t 1 2 , 0 0 0 h a , i n c l u d i n g c o n s t r u c t i o n of r o a d s , w a t e r s u p p l y and c r o p s t o r a g e f a c i l i t i e s , ( i i ) a r a n c h s u b - p r o j e c t o n a b o u t 3 1 , 0 0 0 ha i n c l u d i n g t h e development of 1 2 0 r a n c h e s and t h e c o n s t r u c t i o n of r o a d s and v e t e r i n a r y i n f r a s t r u c t u r e , ( i i i ) t h e development o f a b u l l b r e e d i n g r a n c h , ( i v ) a t s e t s e f l y e r a d i c a t i o n program and ( v ) t h e e s t a b l i s h - ment o f management and p r o j e c t - r e l a t e d g e n e r a l and e x t e n s i o n s e r v i c e s . The I D A c r e d i t (USS3.8 m i l l i o n ) was e x p e c t e d t o f i n a n c e a l l t h e f o r e i g n exchange c o s t s and 77% of l o c a l c o s t s . OVAPAM was ( i ) t o be managed by a n e x p a t r i a t e p r o j e c t d i r e c t o r and ( i i ) t o have a Board of D i r e c t o r s made u p o f r e p r e s e n t a - t i v e s from s e v e r a l m i n i s t r i e s . B e n e f i c i a r i e s were t o be s e l e c t e d by a com- m i t t e e c h a i r e d by t h e P r e f e c t and t o pay f e e s f o r s e t t l e m e n t ( f a r m e r s ) o r g r a z i n g and v e t e r i n a r y s e r v i c e s ( p a s t o r a l i s t s ) . P r o j e c t Implementation 6. From t h e s t a r t , p r o j e c t i m p l e m e n t a t i o n e n c o u n t e r e d s e r i o u s d i f f i c u l - t i e s . P r o j e c t e f f e c t i v e n e s s was d e l a y e d u n t i l September 1 9 7 4 , m a i n l y b e c a u s e of d i f f i c u l t i e s i n r e c r u i t i n g a c o n s u l t i n g f i r m t o supply e x p a t r i a t e s t a f f , p a r t i c u l a r l y t h e p r o j e c t d i r e c t o r . I n a d d i t i o n , t h e P r e s i d e n t i a l D e c r e e which e s t a b l i s h e d OVAPAM c r e a t e d t h e p o s i t i o n o f D i r e c t o r o f OVAPAM t o which a Rwandese n a t i o n a l was a p p o i n t e d a l t h o u g h t h e e x p a t r i a t e p r o j e c t d i r e c t o r was expected t o f i l l t h i s p o s i t i o n . The r e s u l t i n g c o n f l i c t o f r e s p o n s i b l i t y plagued p r o j e c t implementation through completion. I n a d d i t i o n , b e c a u s e of t h e s c a r c i t y o f q u a l i f i e d a g r i c u l t u r a l s t a f f i n Rwanda, o n l y a few of t h e t e c h n i c i a n s r e q u i r e d were s e c o n d e d by t h e M i n i s t r y o f A g r i c u l t u r e . 7. Because of rumors t h a t a development scheme w a s e n v i s a g e d i n t h e Mutara R e g i o n , i m m i g r a t i o n f l o w was much h i g h e r t h a n e x p e c t e d : t h e p o p u l a t i o n o f t h e p r o j e c t a r e a i n c r e a s e d from a n e s t i m a t e d 3 , 0 0 0 f a m i l i e s i n 1 9 7 1 t o 7,500 i n 1974 and 9 , 0 0 0 i n 1976. C a t t l e numbers a l s o i n c r e a s e d by 15% r e s u l t - i n g i n o v e r - s t o c k i n g and o v e r - g r a z i n g . Farmers and p a s t o r a l i s t s r e f u s e d s i g n i n g s e t t l e m e n t c o n t r a c t s as they could not s e e t h e j u s t i f i c a t i o n f o r paying s e t t l e m e n t and g r a z i n g f e e s s i n c e no b e n e f i c i a r y u n d e r o t h e r paysannat programs had t o pay such f e e s . Farmers s t a r t e d s e t t l i n g i n a n a n a r c h i c way i n t h e p r o j e c t a r e a w h i l e a l a r g e number of p a s t o r a l i s t s l e f t t h e a r e a f o r Uganda. 8. Meanwhile, t o p o g r a p h i c s u r v e y s r e v e a l e d t h a t t h e p r o j e c t area was s m a l l e r t h a n a n t i c i p a t e d ; moreover 6,000 h a of marshlands were earmarked by t h e Government f o r a n i r r i g a t i o n p r o j e c t t o be f i n a n c e d by CID&/. In the c o u r s e of 1976, however, t h e p r o j e c t a r e a w a s e x t e n d e d by some 14,250 h a which were t a k e n o u t of t h e Akagera Hunting Reserve. The t o t a l p r o j e c t a r e a was t h u s extended from t h e i n i t i a l 45,000 h a t o 51,250 h a , of which 27,850 h a were t o b e a l l o c a t e d f o r g r o u p r a n c h e s and 23,400 h a f o r t h e Paysannat. 9. A f t e r one y e a r of p r o j e c t i m p l e m e n t a t i o n , i t became a p p a r e n t t h a t t o t a l p r o j e c t c o s t e s t i m a t e s had i n c r e a s e d by 64% e q u i v a l e n t (80% i n Rw. F r a n c s ) b e c a u s e of i n a d e q u a t e p r i c e c o n t i n g e n c i e s , o m i s s i o n of some i t e m s i n t h e a p p r a i s a l e s t i m a t e s and u n d e r e s t i m a t i o n of t h e c o s t of t h e water s u p p l y scheme. An in-depth r e v i e w m i s s i o n took p l a c e a t t h e end of 1975 and recom- mended ( i ) a r e d u c t i o n of p r o j e c t s c o p e and t h e d e f e r r a l of some components ( p a r t i c u l a r l y water s u p p l y ) t o a second-phase p r o j e c t , ( i i ) a r e d u c t i o n of t h e p r o j e c t p e r i o d from 5 t o 3-112 y e a r s t o keep t h e p r o j e c t w i t h i n t h e l i m i t s o f a v a i l a b l e f u n d s and ( i i i ) t h e a b o l i s h m e n t of s e t t l e m e n t and g r a z i n g f e e s . Government endorsed t h e m i s s i o n recommendations i n J u l y 1976 and changes i n t h e p r o j e c t d e s c r i p t i o n were r e f l e c t e d i n a n amendment t o t h e C r e d i t Agreement d a t e d J a n u a r y 1978. 10. Following t h e review m i s s i o n , p r o j e c t implementation proceeded reasonably w e l l . Because of t h e i m m i g r a t i o n f l o w , a uniform 2 h a p l o t - s i z e was adopted f o r t h e Paysannat i n s t e a d of t h e 2.5 h a recommended a t a p p r a i s a l , r e s u l t i n g i n t h e s e t t l e m e n t of 7 , 9 3 1 f a r m i n g f a m i l i e s compared w i t h 4,300 e s t i m a t e d a t a p p r a i s a l . About 1 , 0 0 0 p a s t o r a l i s t f a m i l i e s were i n s t a l l e d on 6 3 r a n c h e s (compared w i t h 1,400 f a m i l i e s and 1 2 0 r a n c h e s e s t i m a t e d a t a p p r a i s a l ) . A t o t a l o f 750 k m of f e e d e r r o a d s (80% above a p p r a i s a l e s t i m a t e d ) was con- structed. The b r e e d i n g r a n c h was e s t a b l i s h e d . OVAPAM's i n f r a s t r u c t u r e i n c l u d i n g 47 h o u s e s , 2 warehouses, workshops, o f f i c e s , d i p p i n g t a n k s and v e t e r i n a r y d i s p e n s a r i e s w a s b u i l t i n t h e p r o j e c t a r e a and i n N y a g a t a r e , t h e O V A P AM Headquarters. A f t e r some d e l a y s i n a p p o i n t i n g q u a l i f i e d Rwandese n a t i o n a l s , t h e Government f i l l e d m o s t o f OVAPAM's p o s i t i o n s i n 1 9 7 6 a n d t h e r e a f t e r . A s t a f f t r a i n i n g program was o r g a n i z e d . 11. During t h e p r o j e c t p e r i o d , p l o t d e m a r c a t i o n and a l l o c a t i o n , a s w e l l a s c o n s t r u c t i o n of i n f r a s t r u c t u r e , p r e v a i l e d o v e r o t h e r works. Agricultural e x t e n s i o n s e r v i c e s remained l i m i t e d , b u t a n i m a l p r o d u c t i o n and v e t e r i n a r y programs which s t a r t e d i n l a t e 1977 were s u c c e s s f u l i n i n t r o d u c i n g p a s t u r e r o t a t i o n , d i p p i n g and v a c c i n a t i o n . The t s e t s e e r a d i c a t i o n program, based on a s t u d y c a r r i e d o u t i n 1975, was completed ( i t s e f f i c i e n c y i s s t i l l d o u b t f u l ) . 11 - Canadian t e c h n i c a l and f i n a n c i n g agency. A s m a l l marketing program w a s i n i t i a t e d i n 1977 b u t f e l l s h o r t of expecta- tions. Disbursements were completed i n December 1979, a few weeks ahead of t h e c l o s i n g d a t e expected a t a p p r a i s a l . A l t h o u g h t h e p r o j e c t s c o p e was s u b s t a n t i a l l y reduced, p r o j e c t c o s t s amounted t o USS4.3 m i l l i o n o r roughly what was a n t i c i p a t e d a t a p p r a i s a l . P r o j e c t Impact 12. I t is d i f f i c u l t t o e s t i m a t e t h e p r o j e c t ' s economic impact s i n c e ( i ) f a r m e r s would p r o b a b l y have s e t t l e d (and s t a r t e d s e t t l i n g ) i n t h e Mutara a r e a , even w i t h o u t p r o j e c t , ( i i ) o n l y 60% of t h e a t t r i b u t e d l a n d i s now c u l t i v a t e d and ( i i i ) i n c r e a s e s i n p r o d u c t i v i t y of l i v e s t o c k have n o t y e t o f f s e t m i g r a t i o n of some 15,000 c a t t l e t o Uganda and S o u t h e r n Rwanda. Moreover, t h e main c r o p s c u l t i v a t e d under t h e p r o j e c t a r e t r a d i t i o n a l s u b s i s t e n c e c r o p s and c u l t i v a t i o n t e c h n i q u e s have n o t y e t improved. _- A s m a l l e r a r e a t h a n e n v i s a g e d has been found s u i t a b l e f o r c o f f e e p r o d u c t i o n ; groundnuts and o t h e r c a s h c r o p s have n o t y e t s t a r t e d on a commercial b a s i s . As a r e s u l t , the pr~je_g_t.-~seconom riact e of r e t u r n i s a t b e s t m a r g i n a l and i t s impact i s a t p r e s e n t much more s o c i a l t h a n economic; s e t t l e m e n t h a s been p r o p e r l y o r g a n i z e d d e s p i t e extreme d i f f i - c u l t i e s due t o t h e remoteness of t h e area and t o p o t e n t i a l c o n f l i c t s between d i f f e r e n t e t h n i c groups. S e c u r i t y and p r o d u c t i o n c a p i t a l assets have been g i v e n t o a b o u t 9,000 farming and p a s t o r a l i s t f a m i l i e s , a l t h o u g h some d i s p a r i - t i e s e x i s t between groups of f a r m e r s and between f a r m e r s and p a s t o r a l i s t s . The l a c k of s o c i a l i n f r a s t r u c t u r e ( h e a l t h and e d u c a t i o n f a c i l i t i e s and w a t e r s u p p l y ) , which i s d e e p l y r e s e n t e d by t h e p o p u l a t i o n , i s expected t o be s o l v e d under t h e Mutara A g r i c u l t u r a l & L i v e s t o c k Development P r o j e c t - Phase I1 ( C r e d i t 937-RW) which was s i g n e d i n J u l y 1979. The Phase I1 P r o j e c t i s a l s o e x p e c t e d t o promote farm development t e c h n i q u e s , i n t e n s i f i e d animal produc- t i o n , and marketing i n t h e a r e a covered by t h e Phase I P r o j e c t a s w e l l as t o e x t e n d t h e Paysannat o v e r a n o t h e r 10,000 ha. 11. MAIN ISSUES A. I n s t i t u t i o n a l and O r g a n i z a t i o n a l Aspects 13. The p r o j e c t i l l u s t r a t e s : 'b ( a t h e Bank's i n s u f f i c i e n t a t t e n t i o n t o p r i o r e x p e r i e n c e o f o t h e r a g e n c i e s w i t h s i m i l a r p r o j e c t s i n t h e c o u n t r y ; '@f t h e danger of encouraging t h e e s t a b l i s h m e n t of autonomous p r o j e c t u n i t s f o r a s i n g l e p r o j e c t and a s t r i c t l y l i m i t e d p e r i o d ; ( c ) t h e g r e a t d i f f i c u l t y of r e c o v e r i n g from a p o p u l a t i o n group t h a t i s among t h e p o o r e s t , any of t h e project c o s t s incurred. 14. T h i s p r o j e c t was t h e Bank's f i r s t v e n t u r e i n t h e a g r i c u l t u r e s e c t o r of Rwanda. A t t h e t i m e , t h e Bank had o n l y a l i m i t e d knowledge of t h e c o u n t r y and of t h e a g r i c u l t u r a l s e c t o r i n p a r t i c u l a r . N e v e r t h e l e s s , Rwanda's a g r i c u l - t u r a l development had begun l o n g b e f o r e t h e Bank became i n t e r e s t e d : the paysannats had been i n t r o d u c e d by t h e B e l g i a n a d m i n i s t r a t i o n and c o n t i n u e d a f t e r independence w i t h t h e h e l p o f v a r i o u s s o u r c e s of e x t e r n a l f i n a n c i n g ( n o t a b l y t h e Europea-I Development Fund). Some 20,000 r u r a l f a m i l i e s had a l r e a d y been s e t t l e d , o r were b e i n g s e t t l e d , on a b o u t 36,000 h e c t a r e s . Work had been done by p r o j e c t u n i t s composed of e x p a t r i a t e s and Rwandese p e r s o n n e l , under t h e M i n i s t r y of A g r i c u l t u r e ' s r e s p o n s i b i l i t y . These p r o j e c t u n i t s had a s p e c i a l budget funded by t h e t e c h n i c a l a s s i s t a n c e agency d u r i n g t h e e n t i r e period of e x e c u t i o n . T e c h n i c a l a s s i s t a n c e was reduced g r a d u a l l y a s l o c a l t e c h n i c i a n s of t h e M i n i s t r y of A g r i c u l t u r e were t r a i n e d . Although t h e p r i n - c i p l e o f f i n a n c i a l c o n t r i b u t i o n s by t h e b e n e f i t t i n g f a r m e r s had l o n g been e n v i s a g e d by Government, s u c h c o n t r i b u t i o n s had n e v e r a c t u a l l y been c o l l e c t e d . 15. The Bank i g n o r e d t h e i n s t i t u t i o n a l s y s t e m under which t h e p a y s a n n a t s / had been e s t a b l i s h e d i n t h e p a s t . R a t h e r t h a n t a k i n g a d v a n t a g e of t h e e x p e r i - e n c e a l r e a d y g a i n e d by t h e c o u n t r y and by o t h e r f i n a n c i n g i n s t i t u t i o n s , o r e v e n a d a p t i n g i t t o t h e Mutara r e g i o n , t h e Bank i n t r o d u c e d a c o m p l e t e l y new type of p r o j e c t o r g a n i z a t i o n : t h a t of a n autonomous " o f f i c e " u n d e r t h e a u t h o r i t y o f a C o o r d i n a t i o n Committee w i t h members from s e v e r a l m i n i s t r i e s . T h i s o f f i c e had t o p r o v i d e f o r i t s own f i n a n c i a l autonomy by a c t i n g a s sub- borrower of Bank f u n d s and by r e c o v e r i n g c o n t r i b u t i o n s from b e n e f i c i a r i e s . I t s d i r e c t o r was t o be a n e x p a t r i a t e , a s s i s t e d by f i v e e x p a t r i a t e t e c h n i c i a n s and a Rwandese d e p u t y d i r e c t o r f o r t h e i m p l e m e n t a t i o n of t h e paysannat sub- proj e c t . 16. A f t e r a g r e e i n g t o t h i s i n n o v a t i v e f o r m u l a , t h e Rwandese Government changed i t s p o s i t i o n sometime a f t e r t h e c r e d i t n e g o t i a t i o n s , a s k i n g t h e Bank t o r e t a i n t h e i n s t i t u t i o n a l system i n e f f e c t f o r t h e o t h e r paysannats a l s o f o r t h i s p r o j e c t and t o f o r e g o t h e e s t a b l i s h m e n t o f a n autonomous agency o p e r a t i n g a s a commercial u n d e r t a k i n g . T h i s r e v e r s a l was d i c t a t e d by two main con- siderations: ( i ) t h e f e a r t h a t i n v i e w o f p a s t e x p e r i e n c e , i t would b e i m p o s s i b l e t o c o l l e c t c o n t r i b u t i o n s and t h e r e f o r e t h e o f f i c e b e l e d t o bank- r u p t c y ; and ( i i ) t h e f e e l i n g t h a t t h e e s t a b l i s h m e n t of a n i n d e p e n d e n t o f f i c e e n t i r e l y u n d e r t h e c o n t r o l o f e x p a t r i a t e s might become a f o r e i g n e n c l a v e d i f f i c u l t t o control. The Bank's u n w i l l i n g n e s s t o a l t e r i t s p o s i t i o n h a s l e d t o a n impasse of some 1 8 months; however, t h e Government u l t i m a t e l y a g r e e d t o t h e e s t a b l i s h m e n t of O VAPA M and a p p o i n t e d a Rwandese d i r e c t o r f o r t h e new o f f i c e w i t h terms of r e f e r e n c e i d e n t i c a l t o t h o s e of t h e e x p a t r i a t e p r o j e c t director. I n d o i n g s o , t h e Government c r e a t e d a p a r a l l e l command s t r u c t u r e w i t h a d v e r s e c o n s e q u e n c e s f o r t h e p r o j e c t . - 1/ 1/ - The R e g i o n a l M i s s i o n i n E a s t e r n A f r i c a n o t e s t h a t t h e p r e s e n c e of a d i r e c t o r of O V A PAM and a P r o j e c t D i r e c t o r w i t h TORS l a r g e l y s i m i l a r and o v e r l a p p i n g f u n c t i o n s c o n t i n u e s t o s e v e r e l y h a n d i c a p t h e Mutara Phase I1 Project. The o p p o r t u n i t y t o s o l v e t h e i s s u e was missed a t a p p r a i s a l and c h a n g i n g s i t u a t i o n now p r o v e s t o be d i f f i c u l t s i n c e d i r e c t o r s o f p a r a s t a - t a l a g e n c i e s a r e a p p o i n t e d and removed o n l y by t h e P r e s i d e n t o f The Republic. 17. The harmful e f f e c t s of t h e poor i n s t i t u t i o n a l concept o f t h e p r o j e c t and o f t h e d e l a y i n p u t t i n g i t s o r g a n i z a t i o n i n p l a c e were n o t l o n g i n appear- i n g : ( a ) t h e massive i n f l u x of people l u r e d by t h e rumor t h a t a new paysannat was going t o be e s t a b l i s h e d , and t h e r i s k of c o n f l i c t w i t h t h e stockmen who had been t h e t r a d i t i o n a l o c c u p a n t s of t h e r e g i o n ; ( b ) t h e r e f u s a l by f a r m e r s t o pay s e t t l e m e n t f e e s and t h e subsequent u n c o n t r o l l e d o c c u p a t i o n of l a n d ; and ( c ) t h e exodus of stockmen belonging t o c e r t a i n t r i b e s t o Uganda. The o n l y way i n which t h i s dangerous s i t u a t i o n c o u l d be p a r t l y defused was t o e l i m i n a t e t h e s e t t l e m e n t and g r a z i n g f e e s a s t h e y were hampering a p r o p e r l y organized s e t t l e m e n t of p a r t i c i p a n t s and t h e r e f o r e t o abandon t h e autonomy p r i n c i p l e of O V A PA . M 18. Though i t s r a i s o n d ' e t r e had been l o s t , t h e o f f i c e c o n t i n u e d t o e x i s t ; i n r e t r o s p e c t , i t s e x i s t e n c e was c o s t l y t o t h e p r o j e c t . Indeed, t h e e s t a b l i s h m e n t o f t h i s o f f i c e i n Nyagatare r e q u i r e d a s u b s t a n t i a l i n f r a s t r u c - ture. Housing, workshops and o f f i c e s had been envisaged a t a p p r a i s a l of t h e project. But t h e s e proved more c o s t l y and more numerous t h a n planned, and more time t h a n a n t i c i p a t e d was needed t o c o n s t r u c t them because o f t h e remote- n e s s of t h e p r o j e c t a r e a and t h e problems i n o b t a i n i n g c o n s t r u c t i o n m a t e r i a l s . The a d m i n i s t r a t i v e and t e c h n i c a l s u p p o r t s t a f f a l s o i n c r e a s e d s u b s t a n t i a l l y during the p r o j e c t period. Looking a t t h e a c t u a l c o s t s of t h e p r o j e c t upon i t s completion, the mission f i n d s t h a t ( i ) O VAPAM b u i l d i n g s and p e r s o n n e l , i n c l u d i n g t e c h n i c a l a s s i s t a n c e , accounted f o r 84% of t h e t o t a l c o s t w h i l e t h e remaining 16% r e p r e s e n t e d d i r e c t l y p r o d u c t i v e e x p e n d i t u r e s such a s t h e e s t a b - l i s h m e n t of t h e paysannat and t h e r a n c h e s ; ( i i ) a l t h o u g h t h e p r o j e c t was implemented w i t h an a v e r a g e of 60 O VAPA M employees, t h a t o f f i c e now h a s a permanent s t a f f of 190. A t t h e end of t h e p r o j e c t t h e t o t a l c o s t ( e x p r e s s e d i n 1980 Rwandese f r a n c s ) p e r f a m i l y i n s t a l l e d w a s about RF 40,000 (US$435 e q u i v a l e n t ) compared t o about RF 35,000 ( ~ ~ $ 3 8 0 L /f)o r p a y s a n n a t s e s t a b l i s h e d through o t h e r e x t e r n a l financing. P h a s e I1 of t h e p r o j e c t w h i c h m a i n l y aims a t promoting a g r i c u l t u r a l and l i v e s t o c k development i n t h e same a r e a a s Mutara I , w i l l a p p r e c i a b l y r a i s e t h e c o s t p e r f a m i l y i n s t a l l e d . Like any i n s t i t u t i o n e s t a b l i s h e d w i t h a l i m i t e d purpose and d u r a t i o n , O VAPAM w i l l have t o a d d r e s s two key problems: ( a ) how t o keep from expanding i t s s t a f f and i n f r a s t r u c t u r e above t h e l e v e l r e q u i r e d f o r t h e p r o j e c t t h a t i t manages, and ( b ) how t o p r o v i d e f o r i t s i n t e g r a t i o n i n o r i t s smooth replacement by e x i s t - ing i n s t i t u t i o n s . B. The Success of t h e Group Ranch Sub-project 19. The group ranch was t h e most r i s k y p r o j e c t component s i n c e (i) no p r e v i o u s e x p e r i e n c e e x i s t e d i n Rwanda and ( i i ) l i v e s t o c k owners, m o s t l y T u t s i s and Bahimas were t r a d i t i o n a l l y semi-nomadic and l i t t l e i n c l i n e d t o a c c e p t 1/ - These amounts do not i n c l u d e e x p e n d i t u r e s f o r t h e s o c i a l i n f r a s t r u c t u r e ( w a t e r s u p p l y , h e a l t h s e r v i c e s and s c h o o l s ) of t h e p a y s a n n a t s , but do i n c l u d e t e c h n i c a l s u p e r v i s i o n , e x t e n s i o n s e r v i c e s and f o r e i g n a s s i s t a n c e . organized ranching. A s proposed by government and F A O / ~ - ~ - ~ s b - p r o i e c t was JuS t o c r e a t e a 33.000 _ha--c-o.o&tive r a n c h on t h e assumption t h a t p a s t o r a l i s t s would a c c e p t exchanging i n d i v i d u a l ownership of t h e i r c a t t l e f o r s h a r e s i n t h e c o o p e r a t i v e r a n c h and a c u l t i v a t i o n p l o t i n t h e p .r o j e c t a r e a . a his p r o p o s a l ky_-tG-, - was found t o t a l , ~ y n n = g & ' tiics a p p r a i s a l m i s s i o n which regl&4 the cooper_ative _ _ r a n c h b a s _._ ic c.....--,- o n c e p t by . , deve lo . . . p ~ c n t of g r o u p . r a n c h e s ..-based on communal _ . . ._,_.. graz..i. n .. ._ . r i . .g g. . h. . I. t"s Such a s y s t e m , which had proved s u c c e s s f u l on a l i m i t e d s c a l e i n Kenya, c o n s i s t e d of s e t t l i n g a c e r t a i n number of p a s t o r a l i s t f a m i l i e s on a d e l i n e a t e d r a n c h , e a c h group r a n c h b e n e f i t t i n g from e x c l u s i v e p a s t u r e r i g h t s , v e t e r i n a r y s e r v i c e s and p l o t s f o r c u l t i v a t i o n ( 1 . 5 ha p e r family). 20. Under t h e p r o j e c t , a b o u t 1 , 0 0 0 f a m i l i e s have been i n s t a l l e d on 63 r a n c h e s , (16 f a m i l i e s p e r r a n c h on a v e r a g e ) c o v e r i n g about 28,000 ha. The a v e r a g e r a n c h a r e a i s 440 h a w i t h a herd of 250 c a t t l e . Surprisingly, given t h e p a s t semi-nomadic way of l i f e of t h e l i v e s t o c k owners, t h e s e t t l e m e n t and r a n c h a l l o c a t i o n w e y g a i r l y w e l l a c c e p t e d by t h e b e n e f i c i a r i e s . A sizeable number of t h e r a n c h g r o u p s have s t a r t e d p a s t u r e r o t a t i o n ; t h e v e t e r i n a r y program c o n s i s t i n g o f r e g u l a r d i p p i n g and v a c c i n a t i o n i s q u i t e s u c c e s s f u l , and v e t e r i n a r y f e e s a r e a c t u a l l y c o l l e c t e d ; p a s t u r e improvement and marketing programs s t a r t e d under t h e Phase I1 p r o j e c t ; a l t h o u g h a g r i c u l t u r e was n o t a common p r a c t i c e among r a n c h b e n e f i c i a r i e s , t h e y have s t a r t e d c u l t i v a t i n g food crops. The l i v e s t o c k program's impact i s s t i l l d i f f i c u l t t o measure b u t t h e f o l l o w i n g p o s i t i v e e f f e c r s are worthwhile mentioning : the-a_ rateeeof C-- - c a l v e s decr.eased: from 50% t o a b o u t 20%, w h i l e t h e c u l l i n g r a t e i n c r e a s k s u b s t a n t i a l l y . Overstocking i s d e c l i n i n g , and t h e subsequent d e t e r i o r a t i o n of t h e r a n g e h a s been a r r e s t e d . 21. I f one t r i e s t o d i s c e r n t h e e l e m e n t s of s u c c e s s of t h e g r o u p r a n c h s u b - p r o j e c t , t h r e e seem t o dominate: ( i ) t r a d i t i o n a l g r a z i n g r i g h t s of t h e p a s t o r a l communities have been p r o p e r 1 y a p p r e c i a t e d and w e l l r e s p e c t e d ; ( i i ) t h e t e c h n i c a l package was a d e q u a t e l y d e s i g n e d and proved a p p e a l i n g t o p a s t o r - a l i s t s and ( i i i ) t h e p r o j e c t t u r n e d o u t t o be t h e main s h i e l d of p a s t o r a l i s t s a g a i n s t i m m i g r a t i o n and a n a r c h i c l a n d o c c u p a t i o n by f a r m e r s . There i s no d o u b t , and p a s t o r a l i s t s p r o b a b l y understand i t , t h a t w i t h t h e i n c r e a s i n g p o p u l a t i o n p r e s s u r e on l a n d i n Rwanda, l i v e s t o c k owners have l i t t l e chance t o s u r v i v e u n l e s s t h e y i n t e n s i f y t h e i r a n i m a l p r o d u c t i o n methods and s t a r t c u l t i v a t i n g p a r t of t h e i r p l o t s . C. Slow P r o g r e s s i n A g r i c u l t u r a l P r o d u c t i o n 22. I n c o n t r a s t w i t h t h e group r a n c h s u b - p r o j e c t , farm development has been l e s s s u c c e s s f u l s o f a r . A f t e r f i v e y e a r s of p r o j e c t implementation, and d e s p i t e a r e d u c t i o n of farm s i z e s from 2.5 h a t o 2 h a due t o p o p u l a t i o n p r e s - s u r e , o n l y 60% of t h e a t t r i b u t e d l a n d i s c u l t i v a t e d ; t h e a r e a under c a s h c r o p s remains f a r below p r o j e c t i o n s , and c u l t i v a t i o n t e c h n i q u e s of t r a d i t i o n a l s u b s i s t e n c e c r o p s have not y e t improved. T h i s shortcoming c a n be p a r t l y a t t r i b u t e d t o t h e f a c t t h a t d u r i n g t h e f i r s t p r o j e c t y e a r s c o n s t r u c t i o n of houses and l a n d c l e a r i n g have p r e v a i l e d o v e r farming i n t e n s i f i c a t i o n . The on-going r a n g e improvement program a l s o employs about 500 l a b o r e r s ; most of them a r e paysannat s e t t l e r s . However, t h e c u r r e n t low cropping i n t e n s i t y and farming technology remain d i s a p p o i n t i n g . 23. T h r e e main f a c t o r s a p p e a r t o a f f e c t p r o g r e s s a d v e r s e l y i n t h e paysannat: ( i ) a h i g h r i s k a v e r s i o n of s m a l l f a n n e r s who a r e t r a d i t i o n a l l y o r i e n t e d towards s u b s i s t e n c e c r o p s , ( i i ) t h e l a c k of a p p l i e d a g r i c u l t u r a l r e s e a r c h f o r new c r o p s and c r o p p i n g t e c h n i q u e s i n t h e p r o j e c t a r e a and ( i i i ) t h e . absence _ of a n a p p e a l i n g t e c h n i c a l package t o be extended t o f a--- rmers s i n c e t h e most p r o d u C € - i v e i n p u t s [ f e r t i l i z e r s , p e s t i c i d e s , d r a f t a n i m a l s ) i r e not a v a i l a b l e i n Rwanda o r cannot b e a p p l i e d l / i n t h e p r o j e c t a r e a . The o n l y t e c h n i c a l package t h a t i s proposed t o f a r m e r s , i n c l u d i n g minor improve- ments of t r a d i t i o n a l cropping p a t t e r n , s m a l l e r o s i o n c o n t r o l works and e s t a b - l i s h m e n t of compost p i t s , h a s a l i m i t e d impact on y i e l d s and c r o p production. Moreover, a l t h o u g h about two t h i r d s of t h e farm work i s c a r r i e d o u t by women, e x t e n s i o n s e r v i c e s a r e o n l y d e a l i n g w i t h t h e men and t h e r e f o r e have l i t t l e impact on farming t e c h n i q u e s . I n such a c o n t e x t , p r o g r e s s i n a g r i c u l t u r a l production a p p e a r s t o o f f e r l i t t l e p r o s p e c t i n t h e n e a r f u t u r e u n l e s s a n a t t r a c t i v e and m a r k e t a b l e c a s h c r o p i s o f f e r e d t o f a r m e r s and t h e e x t e n s i o n s e r v i c e i s reorganized. D. Lack of C o o r d i n a t i o n among E x t e r n a l A s s i s t a n c e Agencies 24. Rwanda i s one of t h e p o o r e s t c o u n t r i e s i n A f r i c a , which has made i t t h e f o c u s of a s s i s t a n c e from many s o u r c e s . The r e s u l t h a s been a c e r - t a i n amount of c o m p e t i t i o n among l e n d e r s , which w h i l e p e r m i t t i n g a n o v e r a l l i n c r e a s e i n e x t e r n a l f i n a n c i n g , a l s o had a d v e r s e e f f e c t s . The m u l t i p l i c i t y of p r o j e c t s too of t e n l e a d s t o d u p l i c a t i o n o r t o c o n f l i c t i n g o b j e c t i v e s , which means t h a t s c a r c e r e s o u r c e s a r e wasted. Moreover, management of t h e d i v e r s e s t r u c t u r e s e s t a b l i s h e d f o r t h e d i f f e r e n t p r o j e c t s sooner o r l a t e r p l a c e s a heavy burden on t h e n a t i o n a l budget. Even though i t h a s been implemented i n a d i s t a n t and c o m p a r a t i v e l y i s o l a t e d r e g i o n , t h e Mutara p r o j e c t h a s n o t escaped t h i s t y p e of problem. Competing O b j e c t i v e s of Various Mutara P r o j e c t s 25. D u r i n g p r o j e c t a p p r a i s a l , t h e Bank d r o p p e d t h e d e v e l o p m e n t o f marshlands which would have e n t a i l e d high c o s t s and was n o t economically justifiable. It w a s suggested t h a t under t h e p r o j e c t such l a n d s would be used f o r g r a z i n g d u r i n g t h e d r y season. Nonetheless, i n 1975 t h e Rwandese Government approached CIDA, which drew up a p r o j e c t f o r i r r i g a t e d p l o t s i n t h e s e lowlands and t h e Canadian p r o j e c t i s now a n e n c l a v e w i t h i n t h e World Bank p r o j e c t . P l a n s c a l l f o r t h e e x t e n s i o n of t h e s e i r r i g a t e d a r e a s i n a subsequent s t a g e . T h i s w i l l mean a n end t o g r a z i n g d u r i n g t h e d r y s e a s o n and t h e l o s s of a c c e s s t o t h e r i v e r , which i s t h e o n l y s o u r c e of water f o r p a r t of the herds. 1/ - The Government's p o l i c y i s t o p r o h i b i t import o f f e r t i l i z e r s . Use of p e s t i c i d e s i n t h e p r o j e c t a r e a i s r e s t r i c t e d by poor water a v a i l a b i l i t y . 26. There a r e o t h e r c a s e s of u n c o o r d i n a t e d a c t i v i t i e s . I n 1976, a t o b a c c o d r y e r was b u i l t w i t h B e l g i a n f i n a n c i a l a s s i s t a n c e n e a r Nyagatare. Tobacco p r o d u c t i o n had n o t been contemplated w i t h i n t h e paysannat framework and t h e r e f o r e t h e d r y e r h a s n e v e r been u s e d . l / I n 1973, p a r t of t h e p r o j e c t zone was handed o v e r t o t h e United N a t i o n s High Commission f o r Refugees f o r t h e s e t t l e m e n t of Barundi r e f u g e e s on a p a y s a n n a t . The U N provided a w a t e r s u p p l y s y s t e m t o c a t e r f o r t h e r e f u g e e s ' b a s i c needs. During t h e implementa- t i o n of t h e Mutara p r o j e c t , O VA PA M assumed r e s p o n s i b i l i t y f o r t h e Barundi paysannat. However, no f i n a n c i a l r e s o u r c e s were e v e r provided f o r t h e main- t e n a n c e of t h e w a t e r s u p p l y system. A s a r e s u l t , a f t e r o n l y a few y e a r s t h e s u p p l y s y s t e m i s no l o n g e r o p e r a t i o n a l . The p r o j e c t f a c e s s i m i l a r d i f f i c u l - t i e s i n the future. An a n i m a l husbandry r e s e a r c h c e n t e r and some s m a l l - s c a l e a g r o i n d u s t r i a l p r o j e c t s have been planned w i t h o u t s t u d y of t h e i r p o s s i b l e i n t e g r a t i o n / s u p p o r t of t h e Bank p r o j e c t , which i s t h e o n l y p r o d u c t i v e b a s e of the region. T h i s l a c k of c o o r d i n a t i o n may w e l l l e a d t o t h e c o n s t r u c t i o n of f a c i l i t i e s t h a t w i l l remain unused and t o t h e u l t i m a t e f a i l u r e o f t h e s e new projects. D u ~ l i c a t i o nof E f f o r t s 27. A c a s e i n p o i n t i s a m a r k e t i n g s u r v e y which was implemented under the project. The C a n a d i a n p r o j e c t was a l s o c o n d u c t i n g l o c a l s u r v e y s o n t r a d i t i o n a l m a r k e t i n g c h a n n e l s and p r i c e s , however, w i t h o u t i n f o r m i n g O V A P A M of t h e r e s u l t s , and w h i l e O V A PAM was c a r r y i n g o u t s u r v e y s of t h e same k i n d . Moreover, OPROVI&/ was s t u d y i n g f a c i l i t i e s r e q u i r e d f o r a n a t i o n a l p o l i c y of r e g u l a t i n g markets and was e n c o u n t e r i n g g r e a t d i f f i c u l t y i n c o o r d i n a t i n g t h e a c t i v i t i e s of t h e v a r i o u s f o r e i g n a s s i s t a n c e programs. 28. Nyagatare i s a s m a l l v i l l a g e emerging t h r o u g h t h e e s t a b l i s h m e n t of t h e management o f f i c e s f o r t h e Mutara p r o j e c t (OVAPAM) and t h e Canadian pro- ject. I n t h i s i s o l a t e d p l a c e , where t h e r e had never been any i n f r a s t r u c t u r e b e f o r e , i t i s s u r p r i s i n g t o f i n d , s i d e by s i d e , two g a s o l i n e s t a t i o n s , two e l e c t r i c pumps, two e l e c t r i c i t y g e n e r a t i n g p l a n t s and two machine s h o p s , which u s e d i f f e r e n t equipment and r e q u i r e d o u b l e maintenance. The Need f o r Master P l a n s 29. While c o m p e t i t i o n among v a r i o u s s o u r c e s of f o r e i g n a i d i s p o s i t i v e i n s o f a r a s i t p e r m i t s a n i n c r e a s e d f l o w of f i n a n c i a l r e s o u r c e s , i t demands, on t h e p a r t of t h e Rwandese Government, a p l a n n i n g e f f o r t a t b o t h t h e n a t i o n a l and t h e r e g i o n a l l e v e l s . A t p r e s e n t , because of t h e country's i n a d e q u a t e a d m i n i s t r a t i v e c a p a c i t y , t h e p r o j e c t o f f i c i a l s a s s i g n e d by f o r e i g n a i d agen- c i e s q u i t e o f t e n u s u r p t h e p l a c e of government a g e n c i e s i n f i e l d s which never- t h e l e s s should remain t h e purview of Government: r u r a l development, w a t e r 1/ The P r o j e c t A u t h o r i t y s t a t e s t h a t t h e tobacco d r y e r w a s a l s o i l l - c o n s t . r u c t e d . 2/ - O f f i c e N a t i o n a l pour l e Developpement e t l a C o m m e r c i a l i s a t i o n d e s Pro- d u i t s V i v r i e r s e t d e l a P r o d u c t i o n Animale. (The n a t i o n a l o r g a n i z a t i o n f o r m a r k e t i n g a g r i c u l t u r a l and l i v e s t o c k p r o d u c t i o n ) . supply, social infrastructure, marketing, etc. For the Mutara region, the Bank did not suggest to the Government a master plan for regional development and no financing of a plan by the Mutara projects (I or 11) had ever been con- templated. In the mission's view, s~icha master plan would have made it pos- sible to specify medium and long-term objectives, the projects that would be feasible and the resources needed for their implementation and coordination.l/ - 1/ The Regional Mission in Eastern Africa notes that (i) since early 1981, cooperation of Bank and CIDA has considerably improved and (ii) the preparation of a master plan for the whole Mutara region is now contem- plated by the Government with CIDArs assistance.  ANNEX BORROWER'S COMMENTS (translated i n t o English) TELEX NO. 2 4 8 4 2 3 INDEVAS - WASHINGTON ATTENTION MR. S. KAPUR NO. 329/C.02/81. FOLLOWING YOUR LETTER APRIL 28, 1 9 8 1 RELATED TO PROJECT PER- FORMANCE ALIDIT OVAPAM PHASE I,W E WISH TO MAKE FOLLOWING OBSERVATIONS: PAGE 1. POPULATION DENSITY 1 8 4 INHABITANTS~KM~ INSTEAD OF 144. PAGE 17. DESIGN OF RUKOMO TOBACCO DRYER SIMILAR TO THAT OF KARAMA DRYER BUT THE LATTER WAS ILL-CONSTRUCTED. PAGE 19. READ 1,000 RANCH GROUP FAMILIES AND NOT 10,000. PAGE 23. ALL GENERAL SERVICES INCLUDING OVAPAM AND PROJECT MANAGERS HAVE NOW BEEN ESTABLISHED I N NYAGATARE. PAGE 29. WITH RESPECT BENEFICIARIES REPORT STATES THAT SOME DISPARITIES EXIST BETWEEN ETHNIC GROUPS. WE POINT OUT THAT EVEN TODAY BENEFI- CIARIES OF GROUP RANCH ARE PRIVILEGED BECAUSE THEY RECEIVED BOTH GRAZING RIGHTS AND CULTIVATION PLOT. BOTH HUTU AND TUTSI ETHNIC GROUPS HAVE BENEFITTED FROM GROUP RANCHES AND OFTEN SHARE ONE SINGLE RANCH. I F HIMAS ARE FOUND I N SOME RANCHES THIS I S DUE TO 3;CidLOGICAL HABITS THAT I T WOULD HAVE BEEN INAPPROPRIATE TO BREAK ABRUPTLY. RANCHES SETTLED AT END OF PROJECT (MUSHELI AREA I N 'ARTICULAR) WERE ESTABLISHED ON LAND EARMARKED TO PROJECT ONLY I N 1 9 7 6 AND NOT FOR ETHNIC REASONS. ECONOMIC TRANSACTIONS BETWEEN OVAPAM AREA AND UGANDA ARE NORMAL SINCE POPULATION HAVE H.AD TRADITIONAL TRADE AND FAMILY RELATIONS FOR LONGTIME ACROSS BOUNDARIES. HENCE I T WOULD HAVE BEEN INAPPROPRIATE TO INTERFERE WITH SUCH TRADITIONAL RELATIONSHIP. FINALLY WITH RESPECT BARUNDI REFUGEES OVAPAM MADE EFFORTS TO IMPROVE RELATIONS BETWEEN BARUNDI 'AND RWANDESE FARMERS. BARUNDI EXTENSION STAFF WERE APPOINTED REGULAR STAFF AS SOON AS THEY COMPLIED WITH NATIONAL REGULATIONS. TRUSTING THAT ABOVE COMMENTS WILL HAVE YOUR BEST ATTENTION I N FINAL REPORT YOURS SINCERELY, OVAPAM'S DIRECTOR  ATTACHMENT RWANDA MUTARA - AGRICULTURAL DEVELOPMENT PROJECT PHASE I - CREDIT 439-RW 1/ PROJECT COMPLETION REPORT - I. INTRODUCTION 1. A g r i c u l t u r e i s Rwanda's most i m p o r t a n t s i n g l e r e s o u r c e . It con- t r i b u t e d 44% of G NP i n 1978, accounted f o r more t h a n 85% of e x p o r t earn- i n g s , and s u p p o r t e d over 95% of i t s 5.0 m i l l i o n people. Shortage of l a n d i s one of Rwanda's g r e a t e s t c o n s t r a i n t s t o a g r i c u l t u r a l development. Under t h e p r e s s u r e of p o p u l a t i o n growth (2.9% p . a . ) , more and more m a r g i n a l l a n d s are b e i n g p u t i n t o c u l t i v a t i o n , r e s u l t i n g i n a c c e l e r a t i n g e r o s i o n and s o i l f e r t i l i t y d e c l i n e . About 95% of t h e c u l t i v a t e d a r e a i s p l a n t e d w i t h food c r o p s , and 5% w i t h commercial c r o p s ; i n a d d i t i o n about 5-6000 ha a r e under n a t u r a l p a s t u r e s used f o r e x t e n s i v e c a t t l e r e a r i n g . Bananas, sorghum, beans, p e a s , sweet p o t a t o e s , maize, groundnuts and manioc a r e t h e most i m p o r t a n t food c r o p s , and c o f f e e , t e a , pyrethrum and cinchona t h e most i m p o r t a n t commercial c r o p s . Rwanda has a c h r o n i c d e f i c i t o f f o o d s t u f f s p a r t l y met through i m p o r t s and v a r i o u s food-aids. 2. To d a t e , t h e Bank Group t o t a l involvement i n t h e a g r i c u l t u r a l s e c t o r amounts t o USS28.35 m i l l i o n . The Mutara A g r i c u l t u r a l Development Project - C r e d i t 439-RW, approved i n 1973 f o r USS3.8 m i l l i o n , was t h e f i r s t c r e d i t made t o Rwanda f o r t h e s e c t o r . A Cinchona Development P r o j e c t - C r e d i t 656-RW was approved i n 1976 f o r USS1.8 m i l l i o n , and t h e Bugesera/ - G i s a k a / ~ i g o n g oP r o j e c t C r e d i t 668-RW was approved i n 1977 f o r USS14.0 m i l l i o n . The Mutara A g r i c u l t u r a l and L i v e s t o c k Development Project-Phase I1 - C r e d i t 937-RW w a s approved i n 1979 f o r USS8.75 m i l l i o n . 3. The Mutara A g r i c u l t u r a l Development P r o j e c t a r e a i s l o c a t e d i n t h e n o r t h e a s t e r n c o r n e r of Rwanda, bordered by Uganda, Tanzania, and t h e Akagera N a t i o n a l Park. Government p r e s e n t e d t h e P r o j e c t as p a r t of i t s development program d e t a i l e d i n t h e 1967-1972 P l a n . P r o j e c t p r e p a r a t i o n and f o r m u l a t i o n took a p a r t i c u l a r l y l o n g t i m e , i n p a r t because t h i s w a s t h e f i r s t IDA-assisted p r o j e c t . P r o c e s s i n g t o Board p r e s e n t a t i o n w a s f u r t h e r complicated by t h e r e l a t i v e weakness of t h e M i n i s t r y of A g r i c u l t u r e and t h e Coup d'Etat of J u l y 1973 which r e s u l t e d ' i n a change i n Government. T h i s completion r e p o r t i s based on a review of p r o j e c t f i l e s and documentation, i n t e r v i e w s w i t h Bank s t a f f and t h e f i n d i n g s of a m i s s i o n which v i s i t e d Rwanda i n J a n u a r y 1978, p r i o r t o t h e a p p r a i s a l of t h e Phase I1 p r o j e c t . The m i s s i o n was composed of D. Lallement and H. Marticou. The d a t a c o l l e c t e d were updated on t h e b a s i s of t h e f i n d i n g s of t h e l a s t P r o j e c t S u p e r v i s i o n m i s s i o n (RMEA) which took p l a c e i n September 1979, followed up by a s h o r t f i e l d v i s i t by D. L a l l e m e n t , i n December 1979. 1/ - The completion r e p o r t , a a t e a August i3%, was prepared 5p the E a s t A f r i c a Regional O f f i c e .  11. PROJECT IDENTIFICATION, PREPARATION, AND APPRAISAL A. P r o j e c t I d e n t i f i c a t i o n and P r e p a r a t i o n Identification: 1966-1968 4. The P r o j e c t was f i r s t brought t o t h e Bank's a t t e n t i o n by an i d e n t i - f i c a t i o n mission from t h e FAO/IBRD Cooperative Program (CP) which v i s i t e d Rwanda i n October 1966 i n o r d e r to: "examine t h e p r o j e c t s and schemes of t h e Rwanda Government f o r t h e development of a g r i c u l t u r e , l i v e s t o c k and f o r e s t r y , and i d e n t i f y t h o s e l i k e l y t o be s u i t a b l e f o r i n t e r n a t i o n a l f i n a n c i a l a s s i s t - ance." Of t h e t h r e e p r o j e c t p o s s i b i l i t i e s p r e s e n t e d by Government t o t h e mission: t e a , marshland reclamation, and l i v e s t o c k development i n Mutara, t h e mission found t h e l a t t e r most a t t r a c t i v e . However, f u l l p r o j e c t i d e n t i - f i c a t i o n r e q u i r e d a n o t h e r v i s i t t o Rwanda by a mission from the.FAO/IBRD c o o p e r a t i v e program, which took p l a c e i n November 1968. 5. The Mutara r e g i o n had been s e l e c t e d by Government f o r l i v e s t o c k development a s i t was covered w i t h savannahs, and was a t t h e t i m e r e l a t i v e l y unused, mostly because of t s e - t s e f l y i n f e s t a t i o n . However, Government had not y e t c l e a r l y d e f i n e d t h e approach they would l i k e t o t a k e f o r l i v e s t o c k development. S e v e r a l i d e a s were p r e s e n t e d t o t h e v a r i o u s i d e n t i f i c a t i o n missions. I n i t i a l l y , i t was suggested t h a t t h e p r o j e c t include: ( i ) t h e development of a breeding herd on about 20,000 ha; ( i i ) t h e development of a s t e e r - f a t t e n i n g o p e r a t i o n (no h e c t a r a g e mentioned); and ( i i i ) t h e development of a c a t t l e breeding c e n t e r based on improved l o c a l breeds provided by t h e I n s t i t u t d e s S c i e n c e s Agronomiques de Rwanda (ISAR), t h e Rwandese a g r i c u l t u r a l r e s e a r c h i n s t i t u t i o n . . L a t e r , Government thought of perhaps g i v i n g a wider r e g i o n a l development o b j e c t i v e t o t h e p r o j e c t , and i n c l u d i n g both crop and l i v e s t o c k development. The o b j e c t i v e s presented t o t h e 1968 i d e n t i f i c a t i o n mission were ( a ) t o produce beef f o r import s u b s t i t u t i o n ; ( b ) t o a l l e v i a t e t h e demographic p r e s s u r e from t h e surrounding r e g i o n s , which manifested i t s e l f by p r o g r e s s i v e encroachments on t h e a d j a c e n t N a t i ~ n a l Park and t h e Hunting Reserve, and t h e range land; and ( c ) t o i n c r e a s e t h e production of e d i b l e o i l s . These o b j e c t i v e s were t o be achieved through t h r e e s e p a r a t e p r o j e c t s : ( i ) a mixed farming, "Paysannat" 11 p r o j e c t on 15,200 ha, i n t h e southwest of t h e region, which would i n c l u d e t f a d i t i o n a l foodcrops and groundnuts c u l t i v a - t i o n , and small s t o c k breeding; d r a f t oxen would be used f o r ploughing; ( i i ) t h r e e c o o p e r a t i v e l i v e s t o c k farms of about 6,500 ha each w i t h 4,100 head of c a t t l e and 300 p a s t o r a l f a m i l i e s per farm; and ( i i i ) a c e n t r a l beef c a t t l e f a t t e n i n g farm on about 3,500 ha, which would a l s o provide improved breeding animals, e x t e n s i o n , v e t e r i n a r y , and marketing s e r v i c e s . "Paysannat" i s a type of organized s e t t l e m e n t p r i n c i p a l l y found i n t h e former Belgian-administered a r e a s of Rwanda, Burundi, and Z a i r e . I n Rwanda, Paysannat schemes normally a r e l a i d o u t along contour l i n e s , w i t h each farmer r e c e i v i n g a p l o t of about 2 ha. Paysannat farmers a r e bound by a c o n t r a c t s e t t i n g o u t requirements of t h e i r p a r t i c i p a t i o n , and schemes normally a r e provided w i t h r e l a t i v e l y i n t e n s i v e e x t e n s i o n s e r v i c e s f o r a mandated cropping p a t t e r n and r e l a t i v e l y good s o c i a l s e r v i c e s , n o t a b l y water. 6 Other a r e a s o f u n c e r t a i n t y i n Government's t h i n k i n g i n c l u d e d pos- s i b l e o r g a n i z a t i o n and management a r r a n g e m e n t s and f i n a n c i n g . They were e x p l o r i n g v a r i o u s i d e a s : i m p l e m e n t a t i o n r e s p o n s i b i l i t y c o u l d be e n t r u s t e d t o a mixed company, a p r i v a t e e n t e r p r i s e , o r a state-owned company. To t h e 1968 i d e n t i f i c a t i o n m i s s i o n , t h e y i n d i c a t e d t h a t t h e proposed p r o j e c t would be implemented by t h e Government ( R e g i e ) and run by a manager who would r e p o r t t o a Government Council s p o n s o r e d by t h e M i n i s t r y of A g r i c u l t u r e and L i v e s t o c k . They were n o t s u r e a t t h a t t i m e whether t h e y wanted t o s e c u r e World Bank financing f o r a g r i c u l t u r a l projects. N e v e r t h e l e s s , Government approached t h e Bank Group i n mid-1967 f o r a s s i s t a n c e w i t h some of t h e a g r i c u l t u r a l p r o j e c t s l i s t e d i n t h e Development P l a n f o r 1967-1972. 7. The t h i n k i n g w i t h i n t h e FAO/IBRD c o o p e r a t i v e program was a l s o e v o l v i n g d u r i n g t h i s i d e n t i f i c a t i o n p e r i o d . A t f i r s t t h e y recommended a f o c u s on l i v e s t o c k development and t h a t e f f o r t s be l i m i t e d t o one p r o j e c t given the s c a r c i t y of l o c a l s t a f f . I n 1967, t h e y t h o u g h t t h a t t h e y s h o u l d p e r h a p s l o o k f o r a "package p r o j e c t " , which would i n c l u d e c o f f e e r e h a b i l i t a - t i o n , marshland r e c l a m a t i o n , and l i v e s t o c k development, on t h e g r o u n d s t h a t a l i v e s t o c k p r o j e c t a l o n e might b e t o o s m a l l t o be s u i t a b l e f o r Bank f i n a n c - ing. F i n a l l y , t h e 1968 m i s s i o n recommended a c c e p t a n c e t h e l a t e s t Government proposal a s the b a s i s f o r preparing a p r o j e c t . P r e p a r a t i o n 1969-1971 8 The FA0 /IBRD C o o p e r a t i v e Program was r e s p o n s i b l e f o r p r o j e c t prep- a r a t i o n . Some of t h e u n c e r t a i n t i e s i n p r o j e c t d e s i g n e x p e r i e n c e d d u r i n g i d e n t i f i c a t i o n p e r s i s t e d t h r o u g h p r e p a r a t i o n . Three p r e p a r a t i o n m i s s i o n s v i s i t e d Rwanda i n A p r i l 1969, October 1970, and March 1971. The f i r s t m i s s i o n ' s r e p o r t was s u b m i t t e d i n J u l y 1969. The m i s s i o n had p r e p a r e d a p r o j e c t w i t h two major components: a s e t t l e m e n t scheme ( p a y s a n n a t ) f o r about 4,250 f a r m e r s , i n c l u d i n g t h e r e c l a m a t i o n of t h e m a r s h l a n d s a l o n g t h e Kagitumba r i v e r , and a 33,000 ha c o o p e r a t i v e r a n c h f o r beef p r o d u c t i o n . The two com- p o n e n t s w e r e , however, t o t a l l y i n t e r - r e l a t e d a s some of t h e b e n e f i c i a r i e s o f t h e s e t t l e m e n t scheme would be t h e l i v e s t o c k owners o f t h e a r e a who would f o r e g o t h e i r l i v e s t o c k ownership t o t h e c o o p e r a t i v e ranch i n exchange f o r a "share". The d e s c r i p t i o n o f t h e p r o j e c t o b j e c t i v e s , components, and b e n e f i t s i n t h i s p r e p a r a t i o n r e p o r t a r e e s s e n t i a l l y t h e same a s t h e o n e s p r e s e n t e d i n what became t h e f i n a l p r e p a r a t i o n r e p o r t ( p a r a s . 11-14). The r e p o r t concluded t h a t Government was t o submit t h e p r o j e c t t o t h e Bank i n September o r October o f 1969, a l t h o u g h s e v e r a l e l e m e n t s were m i s s i n g from t h e p r o j e c t p r e p a r a t i o n , i n p a r t i c u l a r : s o c i o l o g i c a l s t u d i e s t o i n d i c a t e t h e l i k e l y p a r t i c i p a t i o n of p o t e n t i a l b e n e f i c i a r i e s , a t e c h n i c a l a n a l y s i s of t h e Kagitumba v a l l e y d r a i n a g e , and a water s u p p l y s t u d y f o r t h e r a n c h e s . 9 Bank s t a f f ' s i n i t i a l r e a c t i o n t o t h e d r a f t FAOIIBRD p r e p a r a t i o n r e p o r t was mixed. The p r o j e c t ' s o v e r a l l o b j e c t i v e s and approach were found b a s i c a l l y sound b u t d o u b t s were e x p r e s s e d on s e v e r a l a s p e c t s , namely l a n d t e n u r e , and t h e p o s s i b l e c o n f l i c t between a c o n t r o l l e d r a n c h i n g o r g a n i z a t i o n and l i v e s t o c k ownership, s t o c k i d e n t i f i c a t i o n and l i m i t a t i o n . The Bank t h e r e f o r e recommended t h a t p r e p a r a t i o n be pursued but t h a t p o l i c y s t a t e m e n t s should be o b t a i n e d from Government on c a t t l e ownership, and i n d i c a t i o n s on l i v e s t o c k owners' a c c e p t a n c e of t h e proposed ranching system; t h e Bank a l s o r e q u e s t e d complementary s t u d i e s on t h e marshland development and on beef marketing. These q u e s t i o n s were c l e a r e d up d u r i n g t h e f o l l o w i n g two pre- p a r a t i o n m i s s i o n s . A s o c i o l o g i c a l s u r v e y was c a r r i e d o u t by t h e Government and t h e r e s u l t s were made a v a i l a b l e t o t h e a p p r a i s a l m i s s i o n . The marshland r e c l a m a t i o n p r o p o s a l was s u p p o r t e d by a s t u d y c a r r i e d out by t h e c o n s u l t i n g f i r m IFAGRARIA, which a l s o i n c l u d e d t h e i r r i g a t i o n of t h e reclaimed l a n d s . Government agreed t o l i m i t t h e component t o t h e d r a i n a g e of t h e marshlands a s t h e r e were s e r i o u s d o u b t s a s t o t h e economic v i a b i l i t y of t h e scheme; no t e c h n i c a l r e s e r v a t i o n s were p r e s e n t e d . 10. I n c o n c l u s i o n , i t a p p e a r s t h a t p r o j e c t i d e n t i f i c a t i o n and prepara- t i o n was a g r o p i n g phase b o t h f o r Government and f o r t h e Bank a s t o t h e approach t o be taken f o r t h e development o f t h e Mutara a r e a . The p r o j e c t evolved from a "pure" l i v e s t o c k p r o j e c t , t o a l i v e s t o c k and crop development project . The l i v e s t o c k component i t s e l f evolved from a p a s t o r a l development p r o j e c t t o a p i l o t b r e e d i n g j f a t t e n i n g c e n t e r , t o a p r o j e c t w i t h t h r e e Govern- ment r a n c h e s , and f i n a l l y t o o n l y one l a r g e Government ranch. The c r o p development component was d e s i g n e d a l o n g t h e l i n e s of an organized s e t t l e m e n t scheme ( P a y s a n n a t ) , a system a l r e a d y a p p l i e d i n o t h e r p a r t s of t h e c o u n t r y . The P r o j e c t P r o p o s a l 11. The f i n a l p r o j e c t p r e p a r a t i o n r e p o r t proposed a Mixed-Farming ( a g r o - p a s t o r a l ) Development P r o j e c t i n Mutara. The major p r o j e c t o b j e c t i v e s were t o develop t h e r a n c h i n g p o t e n t i a l of t h e a r e a , r e s e t t l e t h e a r e a f a r m e r s o r s e t t l e new ones, and p r o t e c t tile wrildlife r e s e r v e s (tht: S c a g e r a N a t i o n a l Park and t h e Hunting Reserve) from u n c o n t r o l l e d spontaneous s e t t l e m e n t . The p r o j e c t would c o n s i s t of two major components: ( i ) a 33,000 ha c o o p e r a t i v e r a n c h , i n c l u d i n g some c u l t i v a t i o n p l o t s , and ( i i ) a 8,500 ha s e t t l e m e n t scheme ( p a y s a n n a t ) , i n c l u d i n g t h e r e c l a m a t i o n of 4,000 ha of marshland. The M i n i s t r y of A g r i c u l t u r e would be r e s p o n s i b l e f o r t h e o v e r a l l p r o j e c t imple- m e n t a t i o n . A P r o j e c t Board would be r e s p o n s i b l e f o r t h e l o a n / c r e d i t manage- ment, and f o r t h e p r o j e c t budget a p p r o v a l . An e x p a t r i a t e l i v e s t o c k s p e c i a l i s t would be t h e p r o j e c t manager, and d i r e c t o r s and d e p u t y - d i r e c t o r s would be a p p o i n t e d f o r t h e ranch and paysannat s u b - p r o j e c t s . 12. The r e p o r t d e s c r i b e d t h e p r o j e c t b e n e f i t s f i r s t i n terms of i t s d i r e c t e f f e c t s : f o r t h e ranch s u b - p r o j e c t , s u b s t i t u t i o n f o r imports by i n c r e a s e d p r o d u c t i o n of q u a l i t y beef (912 t o n s a y e a r , a t f u l l development a f t e r t h r e e y e a r s ) , and f o r e i g n exchange s a v i n g s (RF 80 m i l l i o n a y e a r a t f u l l development); f o r t h e paysannat s u b - p r o j e c t , t h e s e t t l e m e n t o f 4,250 f a m i l i e s , i n c r e m e n t a l a g r i c u l t u r a l p r o d u c t i o n (RF 94 m i l l i o n a y e a r a t f u l l development a f t e r t h r e e y e a r s ) , and i n c r e a s e d f a m i l y income. It a l s o d e s c r i b e d t h e p r o j - e c t b e n e f i t s i n t e r m s of i t s i n d i r e c t e f f e c t s such a s t h e p r e v e n t i o n of t h e r a p i d d e t e r i o r a t i o n of t h e a g r i c u l t u r a l and ranching p o t e n t i a l of t h e r e g i o n , t h e p r o t e c t i o n a g a i n s t s e t t l e m e n t of t h e n a t u r a l r e s e r v e s , and t h e i n t r o d u c - t i o n of commercial beef r a n c h i n g i n t h e c o u n t r y , which could be r e p l i c a t e d i n other p a r t s of the country. 13. The b a s i c concept of t h e p r o j e c t p r o p o s a l was t h a t e x i s t i n g Mutara f a r m e r s o r immigrants from o t h e r r e g i o n s o f Rwanda -- most of whom owned c a t t l e , would exchange t h e ownership o f t h e i r c a t t l e f o r s h a r e s i n t h e c o o p e r a t i v e r a n c h , and f o r a c u l t i v a t i o n p l o t i n t h e ranch o r i n t h e P a y s a n n a t . I n t h r e e l f o u r y e a r s 11, some 4,250 farm f a m i l i e s would be s e t t l e d i n t h e P a y s a n n a t , t h e b a s i c i n f r a s t r u c t u r e developed ( r o a d s ) , , and c r e d i t p r o v i d e d ; t h e main farm a c t i v i t i e s would be s u b s i s t e n c e c r o p s , b u t a l s o c o f f e e and groundnut c u l t i v a t i o n . During t h e p r o j e c t p e r i o d , under t h e Ranch sub-component, t h e b a s i c r a n c h herd ( a b o u t 16,000 head n e t of s a l e s ) would be e s t a b l i s h e d , and an a d d i t i o n a l 1,500 f a m i l i e s s e t t l e d . B y y e a r 12, t h e herd would be b u i l t up t o 30,000 h e a d , t h e e s t i m a t e d maximum c a r r y i n g c a p a c i t y o f t h e r a n c h . A whole system had been d e v i s e d f o r t h e v a l u a t i o n of c a t t l e and s h a r e s ( f o r t h e compensation f o r n i n e y e a r s t o c a t t l e owners f o r t h e c a t t l e income f o r e g o n e ) , and f o r t h e d i s t r i b u t i o n of b e n e f i t s from t h e c o o p e r a t i v e . Former c a t t l e owners c o u l d p r o v i d e some l a b o r f o r t h e ranch i t s e l f w h i l e t h e i r p l o t s would be m e c h a n i c a l l y t i l l e d g i v e n t h e i r l i m i t e d e x p e r i e n c e w i t h c r o p cultivation. 14. The r e p o r t , skimmed over one a s p e c t of t h e s i t u a t i o n which became a c r u c i a l i s s u e e a r l y i n implementation ( s e e p a r a . 34): what would be done w i t h 115 Bahima (on e t h n i c group of N i l o t i c o r i g i n w i t h a s t r o n g p a s t o r a l t r a d i t i o n ) f a m i l i e s and t h e i r 10,000 head of c a t t l e , r e p r e s e n t i n g a b o u t one t h i r d of t h e r e g i o n a l h e r d . The r e p o r t p l a i n l y s t a t e d t h a t t h e Bahima's p a r t i c i p a t i o n t o t h e p r o j e c t was most u n l i k e l y a s "they a r e g e n e r a l l y r e l u c t a n t t o a c c e p t measures t h a t a f f e c t t h e i r t r a d i t i o n a l nomadic way of l i f e " , and t h a t t h e y would t h e m s e l v e s d e c i d e t o l e a v e Rwanda t o go m a i n l y t o Uganda; however, t h e y would n o t b e e v i c t e d , a s t h e i r e x p e r i e n c e as l i v e s t o c k r a i s e r s would be most u s e f u l and t h e i r c a t t l e were of good v a l u e . They would be o f f e r e d j o b s on t h e c o o p e r a t i v e ranch. There is no c l e a r r e c o r d a s t o t h e t r e a t m e n t of t h i s i s s u e by t h e s t a f f and t h e Government d u r i n g p r e p a r a t i o n o r appraisal. 15- Bank s t a f f d i d n o t have a chance t o comment on t h e f i n a l p r e p a r a - t i o n r e p o r t a s t h e c o p i e s s e n t t o Washington a r r i v e d a f t e r t h e a p p r a i s a l m i s s i o n ' s d e p a r t u r e f o r Rwanda; a copy of t h e f i n a l p r e p a r a t i o n r e p o r t was handed t o t h e m i s s i o n upon i t s a r r i v a l i n Rwanda. However, t h e s t a f f was a l r e a d y w e l l a c q u a i n t e d w i t h t h e p r o j e c t p r o p o s a l , and a l l complementary i n f o r m a t i o n needed -- land t e n u r e , m a r k e t i n g , b e n e f i c i a r i e s p a r t i c i p a t i o n , and marshland r e c l a m a t i o n -- had been p r e p a r e d and a l r e a d y c i r c u l a t e d a s a supplementary r e p o r t t o t h e 1969 p r e p a r a t i o n r e p o r t , b e f o r e b e i n g i n c o r p o r a t e d into the f i n a l preparation report. Except f o r t h e marshland r e c l a m a t i o n component, t h e s t a f f f e l t f a i r l y c o n f i d e n t t h a t t h e p r o j e c t was s u f f i c i e n t l y prepared. B. P r o j e c t A p p r a i s a l and Approval Appraisal 16 An o f f i c i a l r e q u e s t f o r Bank/IDA f i n a n c i n g f o r t h e p r o j e c t was r e c e i v e d i n June, 1971. B y then, t h e a p p r a i s a l mission w a s a l r e a d y i n 11 - I n c o n s i s t e n c i e s i n the r e p o r t . Rwanda. The m i s s i o n i n c l u d e d two s t a f f members from h e a d q u a r t e r s ( a n econo- m i s t and a f i n a n c i a l a n a l y s t ) , a s t a f f member from R M E A (an a g r i c u l t u r a l i s t ) , and two c o n s u l t a n t s ( a l i v e s t o c k s p e c i a l i s t and a d r a i n a g e s p e c i a l i s t ) . On t h e i r way t o Rwanda, t h e m i s s i o n had a f u l l b r i e f i n g i n Rome w i t h t h e s t a f f of t h e IBRD/FAO C o o p e r a t i v e Program and w i t h IFAGRARIA, t h e c o n s u l t i n g f i r m which had p r e p a r e d t h e marshland r e c l a m a t i o n component. 17. The a p p r a i s a l m i s s i o n proposed two major changes i n t h e p r o j e c t d e s i g n from what had been proposed i n t h e p r e p a r a t i o n r e p o r t : (i) t o d e l e t e t h e marshland d r a i n a g e / r e c l a m a t i o n component which was found u n j u s t i f i e d on b o t h economic and tech- n i c a l grounds; t h e m i s s i o n d i d n o t e x c l u d e d r a i n a g e and i r r i g a t i o n a t a l a t e r d a t e when more knowledge of hydrology and of t h e p r o d u c t i v e p o t e n t i a l of t h e l a n d s would have been gained; and (ii) t o r e d e s i g n t h e l i v e s t o c k component: i n s t e a d of d e v e l o p i n g one l a r g e c o o p e r a t i v e r a n c h which would n o t be f i n a n c i a l l y v i a b l e and would p r e s e n t s e r i o u s m a n a g e r i a l and tech- n i c a l r i s k s , t h e m i s s i o n recommended t h e development of group r a n c h e s based on communal g r a z i n g r i g h t s . 18. The a p p r a i s a l m i s s i o n a l s o proposed d i f f e r e n t p r o j e c t o r g a n i z a t i o n and management arrangements; i n s t e a d of h a v i n g t h e Minis t r y of A g r i c u l t u r e and L i v e s t o c k and a P r o j e c t Board r e s p o n s i b l e f o r p r o j e c t implementation, t h e a p p r a i s a l m i s s i o n proposed t h a t a n independent development agency w i t h t h e regime of o f f i c e ( p a r a s t a t a l company) be e s t a b l i s h e d , r e s p o n s i b l e t o a n i n t e r m i n i s t e r i a l board. The O f f i c e du Developpement A g r i c o l e du Mutara - ODAM was t o be managed by a n e x p a t r i a t e p r o j e c t d i r e c t o r a s s i s t e d by e x p a t r i a t e and local staff . The e x p a t r i a t e t e c h n i c i a n s would be r e c r u i t e d through a c o n s u l t - i n g f i r m . The company's f i n a n c i a l r e s o u r c e s would c o n s i s t of e x t e r n a l f i n a n c - i n g d u r i n g t h e development p e r i o d , and f e e s t h a t b e n e f i c i a r i e s would pay b o t h f o r s e t t l e m e n t and g r a z i n g r i g h t s and f o r v e t e r i n a r y s e r v i c e s . The m i s s i o n argued t h a t o t h e r p r o j e c t s i n t h e c o u n t r y were b e i n g implemented w i t h s i m i l a r i n s t i t u t i o n a l arrangements. 19. These changes were f u l l y d i s c u s s e d w i t h Government d u r i n g a p p r a i s a l , e x c e p t f o r t h e r e d e s i g n of t h e r a n c h i n g component s i n c e t h e m i s s i o n had n o t completed i t s a n a l y s i s i n t h e f i e l d . These changes were f u r t h e r d i s c u s s e d d u r i n g t h e f i r s t p o s t - a p p r a i s a l m i s s i o n , which l e d t h e s t a f f t o conclude t h a t "Government a c c e p t e d t h e recommendations i n t o t o , and e x p r e s s e d p l e a s u r e w i t h t h e shape of t h e p r o j e c t a s i t was p r e s e n t e d , and a p p e a r s e a g e r t o c a r r y i t out. " 20. Before n e g o t i a t i o n s , t h r e e p r i n c i p a l q u e s t i o n s were r a i s e d w i t h i n t h e Bank: ( a ) t h e proposed f i n a n c i n g arrangements; ( b ) t h e e f f i c i e n c y of t h e proposed t s e - t s e e r a d i c a t i o n method ( s p r a y i n g and bush c l e a r i n g ) ; and ( c ) t h e l a c k of economic e v a l u a t i o n of t h e Paysannat e x p e r i e n c e . The f i r s t q u e s t i o n a l o n e drew s u b s t a n t i a l a t t e n t i o n . The m i s s i o n had recommended t h a t I D A f i n a n c e USS3.0 m i l l i o n , 88% of p r o j e c t c o s t s ( e s t i m a t e d a t USS3.4 m i l l i o n ) , and t o on-lend USS2.2 m i l l i o n t o ODAM f o r 50 y e a r s , a t 1.75% p.a.; f i n a n c i n g f o r t h e t e c h n i c a l s t a f f would be passed on t o ODAM as a g r a n t from t h e Government. A s p e c i a l Loan Committee Meeting approved IDA'S s h a r e of f i n a n c i n g but concluded t h a t t h e on-lending t e r m s t o ODAM s h o u l d be a l t e r e d t o i n t e r e s t f r e e , and a m a t u r i t y of 35 y e a r s i n c l u d i n g 5 y e a r s of g r a c e . Following a d e v a l u a t i o n of t h e Rwandese F r a n c i n l a t e 1971, p r o j e c t c o s t s i n c r e a s e d t o USS3.7 m i l l i o n ; t h e Loan Committee s u b s e q u e n t l y a g r e e d t o i n c r e a s e . I D A c s f i n a n c i n g t o USS3.3 m i l l i o n o r 89% of p r o j e c t c o s t s . Negotiations 21. The C r e d i t was n e g o t i a t e d i n l a t e J a n u a r y 1972. The main i s s u e s were ( a ) t h e Government's f i n a n c i a l o b l i g a t i o n s t o ODAM, namely t h a t Government s h o u l d p r o v i d e ODAM a n n u a l l y w i t h a n amount e q u a l t o t h e a g g r e g a t e of t h e f e e s unpaid by b e n e f i c i a r i e s ; ( b ) t h e payment of f e e s by b e n e f i c i a r i e s ; and ( c ) t h e income t a x exemption f o r e x p a t r i a t e s t a f f , and t h e import d u t y exemption f o r p r o j e c t goods. Government argued t h a t a p r o v i s i o n s t i p u l a t i n g ( a ) would be a d i s i n c e n t i v e f o r ODAM t o c o l l e c t f e e s from b e n e f i c i a r i e s . Agreement w a s r e a c h e d on a new wording which s t a t e d t h e Government's f i n a n c i a l o b l i g a t i o n s t o ODAM i n broader terms ( i . e . " t o meet such e x p e n d i t u r e s because of f o r c e m a j e u r e , no c o l l e c t i o n of f e e s o r any o t h e r c a u s e " ) . Agreement was a l s o reached on t h e o t h e r p o i n t s e x c e p t on t h e import t a x exemption f o r p r o j e c t goods; disbursement p e r c e n t a g e s were reduced a c c o r d i n g l y . 22. I n s p i t e of t h e s e a p p a r e n t l y s u c c e s s f u l n e g o t i a t i o n s , a p e r i o d of almost two y e a r s ( J a n u a r y 1972 - November 1973) e l a p s e d between n e g o t i a t i o n s and Board P r e s e n t a t i o n . Following n e g o t i a t i o n s , Government confirmed t h e i r agreement t o t h e Development C r e d i t Agreement e x c e p t t o t h e s e c t i o n s on ODAM, and t o t h e S i d e L e t t e r s . Government was o b j e c t i n g t o c r e a t i n g by law a p a r a s t a t a l company r e s p o n s i b l e f o r p r o j e c t implementation; t h e y proposed, i n s t e a d , t o s i g n a n agreement between Government and a c o n s u l t i n g f i r m , a s was t h e " c u r r e n t p r a c t i c e " f o r o t h e r p r o j e c t s under implementation i n Rwanda. T h i s came as a s u r p r i s e t o t h e Bank a s a t no time d u r i n g n e g o t i a t i o n s had t h e Government r a i s e d s u c h o b j e c t i o n s ; t h e y had even brought a l o n g a d r a f t law c r e a t i n g ODAM. 23. Bank s t a f f r e j e c t e d t h e Government's p r o p o s a l on t h e ground t h a t ( i ) a c o n s u l t i n g f i r m a s a p r i v a t e f o r e i g n group, would n o t have t h e r e q u i r e d a u t h o r i t y t o perform such f u n c t i o n s as c o l l e c t i n g f e e s , marketing t h e i r p r o d u c t s , borrowing from t h e C e n t r a l Bank, h i r i n g and f i r i n g p e r s o n n e l , a l l o c a t i n g p l o t s , e t c . , and t o make d e c i s i o n s o r o b t a i n them r a p i d l y from Government; ( i i ) i t would n o t have s u f f i c i e n t autonomy; and ( i i i ) t h a t i t was n o t c o n s i s t e n t w i t h t h e Bank's o b j e c t i v e s of d e v e l o p i n g i n s t i t u t i o n s and e x p e r t i s e i n t h e c o u n t r y . No p r o g r e s s was made on t h i s i s s u e u n t i l about May 1973, i n s p i t e of two a d d i t i o n a l p o s t - a p p r a i s a l m i s s i o n s , a s b o t h Government and t h e Bank remained f i r m on t h e i r r e s p e c t i v e p o s i t i o n s . The Bank f i n a l l y proposed t o send a n o t h e r m i s s i o n t o d i s c u s s any p r o p o s a l Government might have. The m i s s i o n took p l a c e i n May 1973. The Government's p r o p o s a l which was found a c c e p t a b l e by I D A was b a s i c a l l y t h e same a s IDA'S o r i g i n a l p r o p o s a l , except t h a t t h e name of t h e proposed p r o j e c t implementation agency was changed from ODAM t o OVAPAM, O f f i c e de V a l o r i s a t i o n P a s t o r a l e e t Agricole du Mutara; O VA PAM would be e s t a b l i s h e d by P r e s i d e n t i a l Decree i n s t e a d of by law. Follow- i n g t h e coup d'Etat of J u l y 1973, a f i f t h p o s t - a p p r a i s a l mission v i s i t e d Rwanda i n August 1973. The new Government endorsed t h e previous Government's position. 24. Meanwhile, p r o j e c t c o s t s had i n c r e a s e d . The penultimate post- a p p r a i s a l mission somewhat reduced t h e P r o j e c t a r e a from 48,000 ha t o 45,000 ha, and t h e scope of ranching development from 133 t o 120 ranches (para. 27); t h e mission a l s o re-estimated p r o j e c t c o s t s a t USS4.3 m i l l i o n i n s t e a d of USS3.7 m i l l i o n , and recommended a c r e d i t of USS3.8 m i l l i o n i n s t e a d of USS3.3 m i l l i o n . The Government was a l s o preparing two o t h e r p r o j e c t s which would be l i k e l y t o have an impact on t h e p r o j e c t : a marshland development p r o j e c t w i t h 11, and a tourism p r o j e c t w i t h Belgian a s s i s t a n c e . Canadian a s s i s t a n c e - 25. The C r e d i t was approved by t h e Board on November 6 , 1973. The Board's a t t e n t i o n focussed e s s e n t i a l l y on ( i ) t h e impact of t h e p r o j e c t incremental c o f f e e production -- e s t i m a t e d a t 140 tons a year; ( i i ) IDA'S f i n a n c i n g a s percentage of t o t a l c o s t -- 88%; and ( i i i ) t h e cause of delay s i n c e n e g o t i a t i o n . On t h e l a t t e r p o i n t , t h e Board supported t h e s t a f f ' s p o s i t i o n i n r e s i s t i n g t h e Government's proposal t o c o n t r a c t p r o j e c t imple- mentation t o f o r e i g n c o n s u l t a n t s i n view of t h e n a t u r e of t h e p r o j e c t . The C r e d i t was signed on November 29, 1973. C. P r o j e c t O b j e c t i v e s and D e s c r i p t i o n Project Objectives 26. A s d e s c r i b e d i n t h e A p p r a i s a l Report d a t e d October 19, 1973, t h e p r o j e c t o b j e c t i v e s were t o develop Mutara l a n d s f o r crop and l i v e s t o c k production. A f o u r t h of t h e p r o j e c t a r e a would be developed a s small farms under i n t e n s i v e crop production, and t h e balance as l a r g e r u n i t s f o r groups of cattlemen. Crop production i n c r e a s e s would be o b t a i n e d from i n t r o d u c i n g b e t t e r c u l t i v a t i o n techniques and a s p e c i f i c crop r o t a t i o n system, from plant- i n g a n t i - e r o s i o n hedges t o limit s o i l e r o s i o n , and from u s i n g s e l e c t e d seeds and t o o l s . An i n c r e a s e i n beef production would be o b t a i n e d through: ( a ) t h e implementation of a v e t e r i n a r y program, i n c l u d i n g dipping t o c o n t r o l p a r a s i t i c d i s e a s e s , v a c c i n a t i o n s , and t r e a t m e n t s a g a i n s t h e l m i n t h i a s i s ; ( b ) t h e c u l l i n g of unproductive c a t t l e ; ( c ) g e n e t i c improvement by i n t r o d u c i n g improved b u l l s ; ( d ) p a s t u r e improvement; and ( e ) t s e - t s e f l y e r a d i c a t i o n . 11 - A f t e r IDA turned down t h e marshland development component, t h e Government of Rwanda turned t o o t h e r donors. Canada f i n a l l y agreed t o f i n a n c e p a r t of t h e p r o j e c t but i t r a n i n t o major implementation d i f f i c u l t i e s . Project Description 27. The p r o j e c t was t o s u p p o r t , o v e r a f i v e - y e a r p e r i o d , t h e o r g a n i z e d s e t t l e m e n t of 5,700 f a m i l i e s on about 45,000 h e c t a r e s , and t o develop t h e l a n d s of t h a t a r e a . The p r o j e c t would c o n s i s t o f : (a) a paysannat s u b - p r o j e c t on about 12,000 l a , i n c l u d i n g t h e p l a n n i n g of 4,300 p l o t s , t h e c o n s t r u c t i o n of t r a n s p o r t i n f r a s t r u c t u r e (mainly r o a d s and b r i d g e s ) , of s e r v i c e i n f r a s t r u c t u r e ( m a i n l y p o t a b l e w a t e r s u l p l y and c r o p s t o r a g e f a c i l i t i e s ) , and t h e p r o v i s i o n c f t e c h n i c a l 1 extension services ; (b) a group r a n c h s u b - p r o j e c t on about 31,000 h a , i n c l u d i n g t h e d e m a r c a t i o n and development of 120 r a n c h e s , t h e con- s t r u c t i o n of t r a n s p o r t ( r o a d s ) and v e t e r i n a r y ( d i p s and d i s p e n s a r i e s , and marketing-holding grounds) i n f r a s t r u c - t u r e , and t h e p r o v i s i o n of t e c h n i c a l / e x t e n s i o n s e r v i c e s ; (c) t h e development of a b u l l b r e e d i n g r a n c h ; (d) a tse-tse f l y e r a d i c a t i o n program; and (e) t h e e s t a b l i s h m e n t of management and p r o j e c t - r e l a t e d general services. 28 T o t a l p r o j e c t c o s t s were e s t i m a t e d a t USS4.3 m i l l i o n (RF 356.2 m i l l i o n ) of which 88% were t o be f i n a n c e d by IDA, 6% by Government, and 6 % by p a r t i c i p a n t s . The I D A c r e d i t would be used t o f i n a n c e a l l t h e f o r e i g n exchange c o s t s , and 77% of l o c a l c o s t s . USS2.7 m i l l i o n o u t of USS3.8 m i l l i o n of t h e I D A c r e d i t , was t o be o n - l e n t t o O V AP AM by Government, i n t e r e s t f r e e , w i t h a 35 y e a r m a t u r i t y i n c l u d i n g f i v e y e a r s I I g~ race. T e c h n i c a l s t a f f were t o b e seconded t o O V AP A M from Government a t no c h a r g e . 29. The p r o j e c t was t o be implemented by t h e O f f i c e de V a l o r i s a t i o n P a s t o r a l e e t A g r i c o l e du Mutara - OVAPAM, a p a r a s t a t a l o r g a n i z a t i o n which was t o be e s t a b l i s h e d by l e g i s l a t i o n ( t h a t i s by P r e s i d e n t i a l Decree, p a r a . 23). O VA PAM would p r o v i d e p r o j e c t management, e x t e n s i o n s e r v i c e s and m a r k e t i n g . An e x p a t r i a t e p r o j e c t d i r e c t o r was t o be OVAPMl's s e n i o r exe- c u t i v e ; he was t o be a t t h e same time t h e d i r e c t o r of t h e Paysannat sub- p r o j e c t . He was t o be a s s i s t e d by a n e x p a t r i a t e ranch manager, and a Rwandese Paysannat deputy-manager, an e x p a t r i a t e m a r k e t i n g o f f i c e r , an e x p a t r i a t e c h i e f development o f f i c e r ( c o n s t r u c t i o n s u p e r i n t e n d e n t ) f o r t h e f i r s t t h r e e y e a r s , a n e x p a t r i a t e c h i e f a c c o u n t a n t , and an e x p a t r i a t e mechanic. O VA PAM was t o have a Board of D i r e c t o r s made up of r e p r e s e n t a t i v e s from s e v e r a l m i n i s t r i e s , t h e N a t i o n a l Bank, t h e p r o j e c t d i r e c t o r , and r e p r e s e n t a t i v e s of the beneficiaries. 30 P r o j e c t b e n e f i c i a r i e s were t o be s e l e c t e d by a committee c h a i r e d by t h e P r e f e c t of t h e Byumba P r e f e c t u r e ( i n which t h e p r o j e c t a r e a was l o c a t e d ) . T r a d i t i o n a l s e l e c t i o n c r i t e r i a were t o be used: landlessness, physical f i t n e s s , and good r e p u t e . P a s t o r a l i s t s and f a r m e r s a l r e a d y i n t h e a r e a were t o b e g i v e n p r i o r i t y i n t h e s e l e c t i o n of b e n e f i c i a r i e s . B e n e f i c i a r i e s were t o keep t h e ownership o f t h e i r c a t t l e , and p a s t o r a l i s t s were t o be accommodated i n t h e r a n c h i n g s u b p r o j e c t , r e g a r d l e s s of h e r d numbers. The b e n e f i c i a r i e s were t o e n t e r a s a p p r o p r i a t e i n t o t h r e e t y p e s of c o n t r a c t u a l arrangements: (a) a plot u s u f r u c t agreement w i t h O V A PA M s i m i l a r t o t h a t of a l l "paysannats;" ( b ) a p a r t n e r s h i p agreement between group r a n c h members; and ( c ) an agreement between t h e p a r t n e r s h i p and OVAPAM. The c o n t r a c t s w i t h O V APAM stipulated t h a t b e n e f i c i a r i e s would have t o f o l l o w t h e t e c h n i c a l recommendations of OVAPAM's e x t e n s i o n s e r v i c e . A l l b e n e f i c i a r i e s were t o pay O VAPAM ( a ) an a n n u a l s e t t l e m e n t f e e of RF200 f o r t h e f i r s t two y e a r s o f s e t t l e m e n t , and RF1,200 t h e r e a f t e r ; (b) an annual v e t e r i n a r y f e e of RF265 p e r head of c a t t l e ; and ( c ) group ranch b e n e f i c i a r i e s were t o pay a g r a z i n g f e e of RF450 p e r A.U. L/ 111. PROJECT IMPLEMENTATION A. Project Start-up Effectiveness 31 Four c o n d i t i o n s o f e f f e c t i v e n e s s had been e s t a b l i s h e d : (a) the e s t a b l i s h m e n t of OVA P A M by P r e s i d e n t i a l Decree; (b) t h e r a t i f i c a t i o n of t h e S u b s i d i a r y Agreement between Government and OVAPAM; ( c ) t h e payment by Government of i t s c o n t r i b u t i o n of US$100,000 f o r t h e p r o j e c t working c a p i t a l . fund; and ( d ) t h e employment of t h e p r o j e c t d i r e c t o r and t h e c h i e f development officer 32 P r o j e c t e f f e c t i v e n e s s , o r i g i n a l l y scheduled f o r March 4, 1974 was delayed s i x months t o September 1974, mainly because of d i f f i c u l t i e s w i t h t h e r e c r u i t m e n t of a c o n s u l t i n g f i r m t o s u p p l y e x p a t r i a t e s t a f f f o r t h e p o s i t i o n s o f p r o j e c t d i r e c t o r and c h i e f development o f f i c e r ( p a r a . 33 below). The o t h e r c o n d i t i o n s were a l s o met a f t e r some d e l a y . O VA PAM was e s t a b l i s h e d by P r e s i d e n t i a l Decree No. 50/12 of March 4, 1974; t h e s u b s i d i a r y agreement was r a t i f i e d and t h e Government c o n t r i b u t i o n p a i d by May 17, 1974. 33 T e c h n i c a l s e r v i c e s f o r p r o j e c t management were t o be r e c r u i t e d through a c o n s u l t i n g f i r m . Eleven f i r m s s u b m i t t e d o f f e r s , of which o n l y one was d i s q u a l i f i e d a s i t d i d n o t have e x p e r i e n c e i n t h e f i e l d of r u r a l development. In the s e l e c t i o n process R MEA r a i s e d strong o b j e c t i o n s to' t h e f i r m which t h e Government was recommending, i n l a r g e p a r t because it was t h e cheapest; R M E A ' o b j e c t i o n s were e s s e n t i a l l y on t h e q u a l i f i c a t i o n s o f t h e s s t a f f proposed by t h e f i r m . The f i r m i n q u e s t i o n was f i n a l l y s e l e c t e d . However, v a r i o u s d e l a y s t o o k p l a c e i n f i n a l i z i n g t h e c o n t r a c t , w i t h t h e r e s u l t t h a t t h e p r o j e c t d i r e c t o r o r i g i n a l l y p r e s e n t e d was r e p l a c e d by a n o t h e r c a n d i d a t e . The c o n t r a c t w i t h t h e c o n s u l t i n g f i r m s e l e c t e d by government approved by IDA was s i g n e d i n mid-August, and t h e p r o j e c t d i r e c t o r a r r i v e d i n Rwanda a t t h e end of September 1974, t e n months a f t e r Board a p p r o v a l . - 1/ A.U. = animal u n i t , i . e . one o r more animals ( i n c l u d i n g f r a c t i o n s t h e r e o f ) e q u i v a l e n t t o a weaned bovine i n terms of f e e d i n t a k e . P r o j e c t Start-up (1974-1975) 34 From t h e s t a r t , P r o j e c t implementation encountered v e r y s e r i o u s d i f f i c u l t i e s , t h e most i m p o r t a n t of which a r e summarized below: (i) Management. The P r e s i d e n t i a l Decree which e s t a b l i s h e d O V A PA M c r e a t e d t h e p o s i t i o n of D i r e c t o r of OVAPAM, t o which a Rwandese n a t i o n a l was a p p o i n t e d , a l t h o u g h t h e a p p r a i s a l r e p o r t had envisaged t h a t t h e " p r o j e c t d i r e c t o r would be OVAPAM's s e n i o r e x e c u t i v e " and would be " r e c r u i t e d abroad." The terms of r e f e r e n c e f o r t h e D i r e c t o r of O V A P AM were d e f i n e d i n t h e e x a c t same t e r m s a s t h e terms of r e f e r e n c e d e f i n e d i n t h e A p p r a i s a l Report f o r t h e p r o j e c t d i r e c t o r . T h i s i n e v i t a b l y l e d t o a s i t u a t i o n i n which one p o s i t i o n was f i l l e d by two i n d i v i d u a l s w i t h s i m i l a r i f n o t i d e n t i c a l terms of r e f e r e n c e . Although IDA does n o t appear t o have r e a c t e d o f f i c i a l l y t o t h i s s i t u a t i o n p r i o r t o d e c l a r i n g c r e d i t e f f e c t i v e n e s s , t h e management i s s u e was r a i s e d i n t h e v e r y f i r s t p r o g r e s s r e p o r t s , a t t h e m e e t i n g s of OVAPAM's Board of D i r e c t o r s , and by a l l IDA s u p e r v i s i o n m i s s i o n s , i n c l u d i n g t h e in-depth Review Mission ( p a r a 3 6 ) . N o c o n c r e t e p r o p o s a l was e v e r made t o c l e a r l y d i s t i n g u i s h t h e r e s p e c t i v e terms of r e f e r e n c e of OVAPAM's D i r e c t o r and t h e p r o j e c t d i r e c t o r . Although t h i s i s s u e was one of t h e major i s s u e s t o be addressed by t h e Review Mission, no s t r o n g recommendation was made t o s o l v e i t ( p a r a . 38). I n r e t r o s p e c t , i t a p p e a r s t h a t t h i s p a r t i c u l a r s i t u a t i o n was a symptom of t h e v e r y complex i s s u e of t e c h n i c a l a s s i s t a n c e i n Rwanda, and t h a t a t t h e time t h e Government was perhaps n o t v e r y w e l l equipped t o f i n d a s o l u t i o n . A f t e r d i s c u s s i n g t h e i s s u e w i t h s t a f f members i n v o l v e d , i t a p p e a r s t h a t Government even r e f u s e d t o d i s c u s s t h e m a t t e r c o n c r e t e l y w i t h s e v e r a l s u p e r v i s i o n m i s s i o n s . However, t h e r e s u l t i n g c o n f l i c t of r e s p o n s i b i l i t y and d e c i s i o n making power between t h e d i r e c t o r of O V A PA M and t h e p r o j e c t d i r e c t o r plagued p r o j e c t implementation almost through t o t h e completion of t h e p r o j e c t (para 7 1 ) . (ii) Changes i n t h e Data Base s i n c e A p p r a i s a l . The f i r s t p o p u l a t i o n and l i v e s t o c k c e n s u s undertaken by t h e p r o j e c t managers r e v e a l e d t h a t t h e p r o j e c t a r e a was much more d e n s e l y s e t t l e d t h a n a t t h e time of t h e p r o j e c t a p p r a i s a l . I n l a t e 1974, about 7,500 f a m i l i e s and 34,700 head of c a t t l e were counted a s compared t o 3,000 and 30,500 mentioned r e s p e c t i v e l y i n t h e A p p r a i s a l Report. These f i g u r e s included t h e 1,500 f a m i l i e s of Barundi r e f u g e e s L/ who were - 1/ Following t h e 1972 e v e n t s i n Burundi, a s p a r t of Government e f f o r t s t o improve r e l a t i o n s w i t h i t s n e i g h b o r s , Rwanda agreed t o r e s e t t l e Barundi r e f u g e e s away from t h e Rwanda-Bunrundi border ; 1,500 f a m i l i e s were s e t t l e d i n t h e Mutara a r e a i n a paysannat scheme i n i t i a l l y a d m i n i s t e r e d through t h e UN High Commission f o r r e f u g e e s . R e s p o n s i b i l i t y f o r p r o v i s i o n of s e r v i c e s was l a t e r t r a n s f e r r e d t o O VA PA M .  being i n s t a l l e d i n t h e Paysannat under t h e a u s p i c e s of t h e United Nations High Commission f o r Refugees t o whom a p a r t of t h e p r o j e c t a r e a had been a l l o c a t e d . The r e s o u r c e b a s e a l s o appeared t o b e s u b s t a n t i a l l y d i f f e r e n t from what had been a p p r a i s e d , i n p a r t i c u l a r i n t h e r a n c h i n g zone. Due t o t h e r a p i d d e t e r i o r a t i o n of t h e range from o v e r - s t o c k i n g and w e r g r a z i n g i t was t h e n e s t i m a t e d t h a t t h e a v e r a g e c a r r y i n g c a p a c i t y of t h e r a n c h i n g zone had d e c l i n e d from an a v e r a g e of 1.3 ha/A.U. mentioned a t a p p r a i s a l , t o 2.5-3 ha/A.U. (iii) Chanpes i n t h e P r o j e c t Area. The o r i g i n a l a r e a earmarked f o r development had been e s t i m a t e d a t 45,000 h a . Topo- g r a p h i c a l s u r v e y s , however, r e v e a l e d t h a t t h e a r e a was o f o n l y 42,000 h a , a s p a r t of t h e a r e a had been added t o t h e adjacent hunting reserve. I n a d d i t i o n , t h e 6,000 ha of marshlands, which t h e a p p r a i s a l had i d e n t i f i e d a s s u i t a b l e f o r d r y s e a s o n g r a z i n g , were earmarked f o r development i n 1975 under a CIDA-financed p r o j e c t ( p a r a s . 1 7 and 24) and would no l o n g e r be a v a i l a b l e f o r d r y s e a s o n g r a z i n g f o r t h e Group r a n c h e s . The Group ranch a r e a was t h e r e f o r e l i k e l y t o be reduced from 31,000 ha t o 23-25,000 h a , which would make it v i r t u a l l y impossible t o reach t h e p r o j e c t o b j e c t i v e s , e s p e c i a l l y i n l i g h t of t h e h i g h e r t h a n expected c a t t l e p o p u l a t i o n . (iv) S t a f f i n g C o n s t r a i n t s . Given t h e g e n e r a l s c a r c i t y o f q u a l i f i e d a g r i c u l t u r a l s t a f f i n Rwanda and t h e h i g h demand f o r new g r a d u a t e s , none o f t h e Rwandese s e n i o r s t a f f envisaged a t a p p r a i s a l ( a v e t e - r i n a r i a n , an a g r i c u l t u r a l e n g i n e e r , and a n a c c o u n t a n t ) were appointed t o t h e P r o j e c t d u r i n g t h e f i r s t two y e a r s of p r o j e c t implementation and o n l y a few of t h e middie l e v e i t e c h n i c i a n s r e q u i r e d were seconded t o t h e p r o j e c t from t h e M i n i s t r y o f Agri- c u l t u r e and L i v e s t o c k . Even lower l e v e l t e c h n i c a l s t a f f such a s s u r v e y o r s were hard t o Eind. As a r e s u l t , t h e t a s k o f t h e expat- r i a t e team was made even more d i f f i c u l t , i n p a r t i c u l a r i n t h e f i e l d of communications w i t h t h e p o p u l a t i o n ( s e e (v) below). (v) Poor Communications between P r o j e c t S t a f f and B e n e f i c i a r i e s . T h i s was perhaps t h e most c r i t i c a l i s s u e . I n i t i a l l y , p r o j e c t s t a f f made a v e r y poor j o b of e x p l a i n i n g t h e p r o j e c t o b j e c t i v e s t o t h e p o p u l a t i o n a l r e a d y l i v i n g i n t h e a r e a . They p r e s e n t e d t h e p r o j e c t a s a "take i t o r leave it" a l t e r n a t i v e : e i t h e r t h e y would a c c e p t t h e v a r i o u s c o n t r a c t s , pay t h e f e e s , and d e s t o c k , o r t h e y would have t o l e a v e t h e Mutara a r e a a l t o g e t h e r . Farmers and p a s t o r a l i s t s became a f r a i d t h a t t h e Government was coming t o t a k e t h e i r c a t t l e and a l l t h e i r money; t h e y could n o t s e e t h e j u s t i f i c a t i o n f o r paying i n s t a l l a t i o n f e e s s i n c e no b e n e f i c i a r y under o t h e r Government p r o j e c t s had t o pay such f e e s ; and t h e y c o u l d n o t s e e t h e j u s t i f i c a t i o n f o r paying v e t e r i n a r y and g r a z i n g f e e s , s i n c e t h e y were a l r e a d y paying a c a t t l e t a x . R e a c t i o n s v a r i e d a c c o r d i n g t o t h e e t h n i c background of t h e p o p u l a t i o n : Hutu f a r m e r s were t r y i n g t o a c q u i r e c a t t l e  i n o r d e r t o be e l i g i b l e f o r p a r t i c i p a t i o n i n Group Ranches, w h i l e T u t s i p a s t o r a l i s t s were v e r y s u s p i c i o u s , and Bahimas were l i t e r a l l y h o s t i l e . The most t a n g i b l e consequences of t h e s e poor communications were t h a t a ) a l a r g e number of p a s t o r a l i s t s l e f t t h e a r e a f o r Uganda; and b) O VAPA M had a v e r y h a r d t i m e g a i n i n g t h e c o n f i d e n c e of t h e b e n e f i c i a r i e s , and w i t h o u t such c o n f i d e n c e , i t proved v e r y d i f f i c u l t t o implement t h e p r o j e c t technical proposals (vi) C o s t I n c r e a s e s . A f t e r o n e y e a r of p r o j e c t i m p l e m e n t a t i o n , t o t a l c o s t e s t i m a t e s i n Rwandese F r a n c s had i n c r e a s e d by 80%, and t h e U S d o l l a r c o s t e q u i v a l e n t by 64%. The m a j o r i n c r e a s e s by component were a s foLlows : g e n e r a l s e r v i c e s 62%; Group Ranches and Paysannat 210%, and Breeding Ranch 134%. Although no d e t a i l e d e x p l a n a t i o n was p r o v i d e d by t h e p r o j e c t management, i t a p p e a r e d t h a t t h e s e c o s t i n c r e a s e s were due t o : ( a ) a g e n e r a l i n c r e a s e i n c o s t s o f most p r o j e c t goods ( v e h i c l e s , equipment, s t a f f ) which was n o t f u l l y c o v e r e d by t h e Bank's t h e n s t a n d a r d p r i c e c o n t i n g e n c y p r o c e d u r e s ; ( b ) t h e a d d i t i o n of s e v e r a l i t e m s o m i t t e d i n t h e a p p r a i s a l e s t i m a t e s : some h o u s i n g and o f f i c e f a c i l i t i e s , b r i d g e c o n s t r u c t i o n , and some v e h i c l e s ; and ( c ) t h e u n d e r e s t i m a t i o n of some c o s t s , namely t h e w a t e r s u p p l y scheme. Because of t h i s c o s t i n c r e a s e , i t was e s t i m a t e d t h a t IDA f u n d s would be e x h a u s t e d by June 1977 and t h a t t h e r e f o r e some of t h e p r o j e c t o b j e c t i v e s s h o u l d be reduced. 35 I t became obvious i n t h e c o u r s e o f 1975 t h a t l i t t l e p r o g r e s s was b e i n g made w i t h p r o j e c t i m p l e m e n t a t i o n . The p r o j e c t was s e l e c t e d i n t h e f a l l of 1975 f o r t h e SVP Problem P r o j e c t Review. An in-depth r e v i e w m i s s i o n was o r g a n i z e d t o r e v i e w and r e v i s e t h e p r o j e c t a t t h e end of 1975. Project Revisions 36 An in-depth r e v i e w m i s s i o n l e d by RMEA w i t h p a r t i c i p a t i o n from head- q u a r t e r s , t o o k p l a c e i n November/December of 1975. The main o b j e c t i v e s were t o ( a ) modify t h e p r o j e c t a s a r e s u l t of changed c i r c u m s t a n c e s : h i g h e r popu- l a t i o n d e n s i t y , change i n p r o j e c t a r e a , p r o j e c t c o s t i n c r e a s e ; ( b ) e s t a b l i s h c o o r d i n a t i o n w i t h t h e CIDA-financed marshland development p r o j e c t ; and ( c ) r e v i e w t h e p r o j e c t management i s s u e . 37- The main f i n d i n g s and recommendations of t h e r e v i e w were: (a) t h e p r o j e c t s c o p e s h o u l d be reduced and c e r t a i n components e l i m i n a t e d . T h i s would e n t a i l : a r e d u c t i o n i n t h e p r o j e c t a r e a from 45,000 ha t o 32,000 h a t h r o u g h a r e d u c t i o n i n t h e r a n c h i n g a r e a ; a r e d u c t i o n i n t h e number of group r a n c h e s t o be developed from 120 t o 70; a r e d u c t i o n i n t h e number of d i p p i n g t a n k s t o b e b u i l t o r r e n o v a t e d from 15 t o 10; t h e d e f e r a l of t h e c o n s t r u c t i o n of c e r t a i n b r i d g e s and of t h e p r o v i s i o n of p o t a b l e d r i n k i n g w a t e r ; and t h e d e l e t i o n of t h e n a t i o n a l t s e - t s e f l y e r a d i c a t i o n survey;  (b) t h e p r o j e c t p e r i o d would be reduced from f i v e t o t h r e e and a h a l f y e a r s i n o r d e r t o keep t h e p r o j e c t w i t h i n t h e l i m i t s of t h e a v a i l a b l e f i n a n c i n g ; (c) t h e s e t t l e m e n t and g r a z i n g f e e s o r i g i n a l l y proposed should be e l i m i n a t e d a s t h e y were hampering r e c r u i t m e n t and s e t t l e m e n t o f p a r t i c i p a n t . I n s t e a d a f l e x i b l e system should b e i n t r o d u c e d and kept under c o n s t a n t review; and (d) t h e p o s s i b i l i t y of a second-phase p r o j e c t t o c o n s o l i d a t e t h e achievements of t h e f i r s t phase and t o implement t h e d e f e r r e d p r o j e c t components should be c o n s i d e r e d . 38 The r e v i e w m i s s i o n ' s recommendations p r i n c i p a l l y a d d r e s s e d t h e p r o j e c t c o s t and f i n a n c i n g i s s u e . Other i s s u e s , such a s t h e r e c r u i t m e n t of b e n e f i c i a r i e s were addressed t o some e x t e n t , w h i l e t h e o t h e r i s s u e s b a s i c a l l y remained pending. No s p e c i f i c recommendation was made on p r o j e c t o r g a n i z a t i o n and management except t h a t t h e p r o j e c t d i r e c t o r should move t o t h e p r o j e c t a r e a , and t h a t OVAPAM's D i r e c t o r should s t a y i n K i g a l i , t o c o o r d i n a t e w i t h o t h e r Government i n s t i t u t i o n s . The review m i s s i o n d i d n o t e x p l i c i t l y acknowledge t h e d e f a c t o s i t u a t i o n of having two d i r e c t o r s , OVAPAM's d i r e c t o r and t h e p r o j e c t d i r e c t o r , w i t h s i m i l a r terms of r e f e r e n c e nor d i d i t propose new terms of r e f e r e n c e f o r each of them. Regarding t h e CIDA-Marshland Development P r o j e c t , t h e r e v i e w s i m p l y recommended t h a t i t b e p l a c e d under t h e c o n t r o l of O V A PA M , w i t h OVAPAM's d i r e c t o r e n s u r i n g c o o r d i n a t i o n w i t h t h e IDA-£ inanced p r o j e c t . The review r e p o r t d i d n o t s p e c i f i c a l l y s t a t e whether t h i s was an a c c e p t a b l e s o l u t i o n f o r t h e Canadians. Verbal a s s u r a n c e s were o b t a i n e d from t h e Government t h a t t h e development of t h e two p r o j e c t s would not c o n f l i c t w i t h each o t h e r , b u t t h i s i s n o t w r i t t e n i n any document. There were no s u b s t a n t i a l changes e i t h e r i n t h e t e c h n i c a l approach t o t h e p r o j e c t o r i n t h e p r o d u c t i o n o b j e c t i v e s ; tobacco was proposed a s a new cash c r o p , and i t was recommended t h a t r a n c h development b e based more on t h e s o c i a l environ- ment of t h e r a n c h e s t h a n had s o f a r been t h e c a s e . It i s n o t c l e a r a t a l l , however, w i t h such a d r a s t i c r e d u c t i o n i n t h e p r o j e c t a r e a , how s i m i l a r p r o d u c t i o n o b j e c t i v e s could be maintained. The Review Mission's recommendations were t r a n s m i t t e d t o Government i n March 1976. The i s s u e of c a t t l e o v e r p o p u l a t i o n was r a t h e r c u r s o r i l y t r e a t e d : "it a p p e a r s n e c e s s a r y t h a t a l l s u r p l u s s t o c k l e a v e t h e p r o j e c t area", with no i n d i c a t i o n of where they were supposed t o go. The Government endorsed t h e mission's recommendations i n J u l y 1976, w i t h t h e e x c e p t i o n o f : a ) d e f e r r i n g t h e c o n s t r u c t i o n of b r i d g e s f o r which f i n a n c i n g from t h e German b i l a t e r a l a s s i s t a n c e was o b t a i n e d ; and b ) r e f e r r i n g t o t h e CIDA f i n a n c e d p r o j e c t . The o t h e r changes i n t h e p r o j e c t d e s c r i p t i o n were r e f l e c t e d i n an amendment t o t h e C r e d i t Agreement d a t e d J a n u a r y 16, 1978- 39 Following t h e review m i s s i o n , p r o j e c t implementation continued r e l a t i v e l y u n e v e n t f u l l y u n t i l t h e completion of agreed a c t i v i t i e s and t h e e x h a u s t i o n of c r e d i t funds i n mid-1979, a t which p o i n t a t r a n s i t i o n t o Phase I1 p r o j e c t a c t i v i t i e s began. It was i n c r e a s i n g l y a p p a r e n t t h a t t h e p r o j e c t s t a f f focused most of t h e i r time and energy on t h e development of i n f r a s t r u c - t u r e , b u t i n doing so t h e y overcame many o r g a n i z a t i o n a l and l o g i s t i c a l problems which had r e s u l t e d i n d e l a y s i n t h e e a r l y y e a r s . The development of a g r i c u l - t u r a l s e r v i c e s p r o g r e s s e d v e r y s l o w l y and i t was c l e a r t h a t t h e s t a f f i n v o l v e d had no e f f e c t i v e f a r m i n g s y s t e m w e l l a d a p t e d t o t h e a r e a t o e x t e n d . The p a y s a n n a t scheme i m p l e m e n t a t i o n was c o m p l i c a t e d by a c o n t i n u i n g d e b a t e w i t h i n t h e Government on t h e d e s i r a b i l i t y of " v i l l a g i z a t i o n " , b u t i n t h e Mutare scheme t h e f a r m e r s w e r e r e s e t t l e d a l o n g t h e l i n e s of c l a s s i c p a y s a n n a t orga- n i z a t i o n , i n t e r m s of a l l o c a t i o n of p l o t s , a l t h o u g h some v i l l a g e s were a l s o e s t a b l i s h e d a s c e n t e r s f o r s e r v i c e s and a c t i v i t i e s . The OVAPAM d i r e c t o r and t h e p r o j e c t d i r e c t o r worked o u t a d e - f a c t o d i v i s i o n of r e s p o n s i b i l i t i e s which s a t i s f i e d no-one c o m p l e t e l y , b u t which e n a b l e d p r o j e c t i m p l e m e n t a t i o n t o p r o c e e d w i t h a minimum of f r i c t i o n a n d d u p l i c a t i o n of e f f o r t . B. Achievements t o D a t e The P r o j e c t Area (Map 13886) 40. I n s p i t e of t h e Government's d e c i s i o n t o r e d u c e t h e p r o j e c t a r e a a s agreed during t h e review mission, they i n f a c t i n c r e a s e d i t i n t h e course o f 1976 by some 9 , 2 5 0 h a which were t a k e n o u t of t h e H u n t i n g R e s e r v e ; a n a d d i t i o n a l 5,000 h a , t a k e n o u t of t h e H u n t i n g R e s e r v e , were set a s i d e a s a m i l i t a r y r a n c h . The p r o j e c t a r e a was t h e r e f o r e e x t e n d e d t o a t o t a l o f 51,250 h a , o f which 27,850 h a were f i n a l l y a l l o c a t e d f o r g r o u p r a n c h development, and 23,400 h a f o r t h e P a y s a n n a t . Paysannat Sub-Project 41. P h y s i c a l e x e c u t i o n . The P a y s a n n a t i s m o s t l y l o c a t e d i n t h e s o u t h - e a s t e r n p a r t of t h e p r o j e c t a r e a , w i t h o n l y one s m a l l s e c t o r i n t h e n o r t h e r n part. It h a s b e e n o r g a n i z e d i n t o f i v e e x t e n s i o n s e c t o r s , o f which f o u r a r e l o c a t e d i n t h e s o u t h 11 a n d o n e i n t h e n o r t h . 21 Due t o a n i m m i g r a t i o n f l o w much h i g h e r t h a n e x p e c t e d , t h e number of p l o t s d e m a r c a t e d a s of J u l y 1979 was 7 , 9 7 1 3 / ( 2 , 2 5 6 i n Rukomo s e c t o r , 1,952 i n Karama s e c t o r , 1 , 8 6 0 i n Mukama s e c t o r , 1 , 1 5 0 i n Shonga s e c t o r , a n d 753 i n Nyabishongwezi s e c t o r ) . Out of t h e 7 , 9 7 1 p l o t s , 7 , 3 0 4 had been a l l o c a t e d t o f a r m e r s , a b o u t 60 g i v e n o v e r t o non-farming a c t i v i t i e s (communal w o o d l o t s o r g r a z i n g ) , and 291 were b e i n g allocated. I n a d d i t i o n , 31 v i l l a g e s have been e s t a b l i s h e d . A u n i f o r m 2.0 h a p l o t - s i z e was a d o p t e d a s compared t o t h e a p p r a i s a l recommendation of 2.5 h a f o r 75% of t h e p l o t s , and 2.0 h a f o r t h e r e m a i n d e r , o n which c o f f e e was t o b e grown. P l o t s i z e was s t a n d a r d i z e d f o l l o w i n g a p p r a i s a l f o r two main r e a s o n s : ( i ) more f a r m e r s had t o be s e t t l e d ; and ( i i ) t h e c o n d i t i o n s a r e n o t met f o r c o f f e e growing i n t h e Mutara r e g i o n . The f i g u r e s on p l o t numbers i n c l u d e t h e 942 p l o t s a l l o c a t e d t o B a r u n d i r e f u g e e s who were s e t t l e d i n 1974 u n d e r t h e a u t h o r i t y of t h e UN High Commission f o r r e f u g e e s , and who a r e now u n d e r t h e r e s p o n s i b i l i t y of OVAPAM's e x t e n s i o n s e r v i c e s . The f o l l o w i n g i n f r a s t r u c t u r e was c o n s t r u c t e d : 11 - Rukomo, Karama, Mukama, and Shonga. - 21 Nyabishongwezi: t h i s s e c t o r was c r e a t e d when t h e p r o j e c t a r e a was e x t e n d e d i n 1976. - 31 A t o t a l 8 , 0 7 1 p l o t s c o u l d b e d e f i n e d w i t h i n t h e Land a r e a a v a i l a b l e .  - Roads. A t o t a l of 750 km of f e e d e r r o a d s were c o n s t r u c t e d , i . e . , 80% above t h e a p p r a i s a l e s t i m a t e of 400 km. - Housing. With t h e e x c e p t i o n of two houses f o r s u b - s e c t o r c h i e f s i n t h e new n o r t h e r n s e c t o r of Nyabishongwezi, a l l t h e s t a f f houses e n v i s a g e d a t a p p r a i s a l were c o n s t r u c t e d d u r i n g t h e p r o j e c t p e r i o d . - Produce Warehouses. Two warehouses (of a b o u t 600 c u b i c meter g r o s s s t o r a g e c a p a c i t y ) were c o n s t r u c t e d , i n s t e a d of t h e t h r e e planned a t a p p r a i s a l . One was b u i l t a t Rukomo (Paysannat h e a d q u a r t e r s ) , and one a t Karama. Major m i s t a k e s were made, however, i n t h e d e s i g n and c o n s t r u c t i o n of t h e l a t t e r w i t h t h e r e s u l t t h a t i t c a n n o t be used; a n i n v e s t i g a t i o n i s being c a r r i e d o u t on t h e r e s p e c t i v e r e s p o n s i b i l i t i e s of O VAPA M and t h e c o n t r a c t o r s , and t o d e f i n e a f u t u r e c o u r s e of a c t i o n . The manioc m i l l and c o f f e e pro- c e s s i n g p l a n t e n v i s a g e d a t a p p r a i s a l were d e l e t e d from t h e p r o j e c t d u r i n g implementation, a s no l o n g e r j u s t i f i e d . - E i g h t e e n n u r s e r i e s have been e s t a b l i s h e d p r o v i d i n g mainly e u c a l y p t u s and f r u i t t r e e s , and s e t a r i a clumps f o r t h e development of a n t i - e r o s i o n hedges. 218 ha have been a f f o r e s t e d w i t h e u c a l y p t u s . - A 1 5 ha s e e d and f r u i t t r e e m u l t i p l i c a t i o n c e n t e r h a s been developed s i n c e March 1979. T h i s was n o t e n v i s a g e d a t a p p r a i s a l . I t w i l l s e r v e f o r a p p l i e d r e s e a r c h , d e m o n s t r a t i o n , and t r a i n i n g p u r p o s e s . 42. S t a f f i n g . Delays i n a p p o i n t i n g q u a l i f i e d Rwandese n a t i o n a l s handi- capped t h e implementation of t h e s u b - p r o j e c t . The p o s i t i o n of Paysannat Sub-project d i r e c t o r envisaged a t a p p r a i s a l was n o t f i l l e d u n t i l October 1977, when a Rwandese agronomist was a p p o i n ~ e d . The t h r e e s e c t o r c h i e f p o s i t i o n s e n v i s a g e d were f i l l e d by middle l e v e l (A2) agronomists. One was p o s t e d a t Rukomo i n J a n u a r y 1975 and a c t e d a s P a y s a n n a t d i r e c t o r f o r about two and a h a l f y e a r s ; two o t h e r s e c t o r c h i e f s were a p p o i n t e d i n t h e second h a l f of 1976 a t Karama and Mukama. The s e c t o r c h i e f f o r Shonga w a s a p p o i n t e d i n 1978. Out of t h e 13 p o s i t i o n s of s u b - s e c t o r c h i e f s ( i n c l u d i n g t h e new s e c t o r of Nyabwishongwezi), 1 0 were f i l l e d , most of them i n February 1976. No v e t e r i n a r y a s s i s t a n t was e v e r r e c r u i t e d f o r t h e Pay s a n n a t . 43. T r a i n i n g . Apart from t h e m i d d l e - l e v e l (A2) a g r o n o m i s t s t r a i n e d i n a g r i c u l t u r a l s c h o o l s , t h e r e s t of t h e s t a f f had no r e a l t e c h n i c a l o r v o c a t i o n a l t r a i n i n g a t t h e time they were r e c r u i t e d . P r i o r t o October 1977, t h e a c t i n g Paysannat Sub-project d i r e c t o r t r i e d t o g i v e them a minimum t r a i n i n g ; he d e v i s e d t h e c u r r i c u l u m and o r g a n i z e d t h e c l a s s e s h i m s e l f , r e c e i v i n g l i t t l e a s s i s t a n c e o r guidance from t h e p r o j e c t management, t h e M i n i s t r y of A g r i c u l t u r e , o r t h e M i n i s t r y of E d u c a t i o n . One of t h e f i r s t t a s k s of t h e s u b - p r o j e c t d i r e c t o r , upon h i s a r r i v a l , was t o o r g a n i z e a sound s t a f f t r a i n i n g program, which i s s t i l l on-going. The m u l t i p l i c a t i o n c e n t e r e s t a b l i s h e d i s being used a s a t r a i n i n g ground f o r e x t e n s i o n s t a f f and f a r m e r s as w e l l . 44 E x t e n s i o n themes. During t h e f i r s t f o u r y e a r s of p r o j e c t imple- m e n t a t i o n , p l o t d e m a r c a t i o n and a l l o c a t i o n and i n f r a s t r u c t u r e development p r e v a i l e d over e x t e n s i o n work. A s a r e s u l t t h e p r o j e c t b e n e f i c i a r i e s g e n e r a l l y m a i n t a i n e d t h e i r t r a d i t i o n a l farming p r a c t i c e s , i n s p i t e of t h e t e c h n i c a l s t i p u l a t i o n s of t h e i r c o n t r a c t s ( p a r a . 30) which i n c l u d e d p l a n t i n g a n t i - e r o s i o n hedges and r e s p e c t i n g a c e r t a i n cropping p a t t e r n . E s t a b l i s h m e n t of compost p i t s was t h e o n l y theme commonly promoted a l t h o u g h p r o p e r t e c h n i c a l norms and follow-up were n o t p r o v i d e d . A s a r e s u l t , a t b e s t 25% of t h e 3,700 compost p i t s r e g i s t e r e d by t h e e x t e n s i o n s t a f f q u a l i f i e d a s s u c h , t h e o t h e r s b e i n g mere g a r b a g e p i t s . During t h e l a s t y e a r of p r o j e c t i m p l e m e n t a t i o n , t h e major e x t e n s i o n themes promoted were: ( i ) s o i l c o n s e r v a t i o n by c o n t o u r p l a n t i n g of s e t a r i a ; ( i i ) improved husbandry o f t r a d i t i o n a l f o o d c r o p s w i t h p a r t i c u l a r emphasis on t i m e l y p l a n t i n g , weeding, and m u l t i p l e i q t e r c r o p p i n g ; and more r e c e n t l y , ( i i i ) p l a n t i n g of f r u i t trees and a d o p t i o n of s e l e c t e d s e e d s , t h e s e b e i n g made a v a i l a b l e by O V A P AM from t h e m u l t i p l i c a t i o n c e n t e r . The q u a l i t y o f t h e s o - c a l l e d s e l e c t e d s e e d s i s somewhat d u b i o u s ; however, t h i s is a major problem i n Rwanda which must b e a d d r e s s e d a t t h e l e v e l of t h e M i n i s t r y of A g r i c u l t u r e . Group Ranch Sub-project 45. Ranch E s t a b l i s h m e n t . The s u b - p r o j e c t h a s been o r g a n i z e d i n t o f o u r s e c t o r s . The d i s t r i b u t i o n of t h e a r e a , o f t h e p a r t i c i p a n t s , and of t h e c a t t l e i s g i v e n below: No. of No. of No. of Average Average No. Average No. Ranches Parti- Head of Ranch of C a t t l e of F a r t i c i - Area cipants/aCattle Area Per pants per Sectors (ha ) (ha Ranch Ranch .I ,. , . Nyagatare 6,607 17 271 5,528 388 32 5 15,94 Rwempasha 7,013 17 285 5,488 4 12 322 16,77 Tabagwe 7,387 16 263 6,047 461 378 16,43 Musheli 6,809 13 185 4,964 52 4 382 14,23 T o t a l 27,816 63 1,004 22,027 - 442 - 350 15,95 / For t h e most p a r t f a m i l y u n i t s . These d a t a i n c l u d e 62 " i l l e g a l " f a m i l i e s and t h e i r c a t t l e most of whom moved back i n t o t h e Mutara a r e a from Uganda a s a r e s u l t of t h e p o l i t i c a l t r o u b l e s i n Uganda L/; some of t h e s e f a m i l i e s had moved o u t of Mutara a t t h e b e g i n n i n g of t h e P r o j e c t i m p l e m e n t a t i o n p e r i o d ( p a r a . 46). 1/ - These 62 f a m i l i e s were r e l o c a t e d a t t h e end of 1979 i n t o an e x t e n s i o n of t h e Group Ranch a r e a g r a n t e d by t h e P r e s i d e n t t o OVAPP from t h e Hunting Reserve. 46. These f i g u r e s of a c t u a l r e s u l t s d i f f e r s u b s t a n t i a l l y from t h e a p p r a i s a l e s t i m a t e s . About 1,000 f a m i l i e s have been i n s t a l l e d a s compared t o 1,440 envisaged; t h e a v e r a g e r a n c h a r e a i s 440 ha i n s t e a d of 240; t h e a v e r a g e herd i n c l u d e s 350 head i n s t e a d of 230; t h e a v e r a g e s t o c k i n g r a t e is 2 ha/A.U. r a t h e r than 1.3 ha/A.U., and t h e a v e r a g e number of b e n e f i c i a r i e s i s 16 i n s t e a d of 12. The main r e a s o n s f o r t h e s e d i f f e r e n c e s a r e t h e f o l l o w i n g : (i) most f a m i l i e s w i t h less t h a n t h e r e q u i r e d minimum number of c a t t l e have been i n s t a l l e d i n t h e P a y s a n n a t , w i t h t h e r e s u l t t h a t t h e r e a r e a t p r e s e n t about 1,000 head of c a t t l e i n t h e Paysannat and 17,000 g o a t s and sheep; (ii) many p a s t o r a l i s t f a m i l i e s , m o s t l y T u t s i s and a few Bahimas, l e f t t h e .Mutara a r e a f o r Uganda d u r i n g t h e e a r l y p e r i o d of p r o j e c t implementation (1974-mid-1975), because of poor communications w i t h t h e P r o j e c t management ( p a r a 34); (iii) t h e c a r r y i n g c a p a c i t y of t h e rangeland i s lower t h a n e s t i m a t e d a t a p p r a i s a l . However, i n o r d e r t o i n s t a l l a s many p a s t o r a l f a m i l i e s a s p o s s i b l e , t h e P r o j e c t Management team decided a r b i t r a r i l y t o a l l o c a t e 2 ha/A.U., even though on some r a n c h e s t h e s t o c k i n g r a t e should have been no more than 3-3.5 ha/A.U. (iv) t h e P r o j e c t Management team d i d make an e f f o r t , e s p e c i a l l y s i n c e 1976/1977, t o r e s p e c t t h e t r a d i t i o n a l g r a z i n g r i g h t s o f t h e p a s t o r a l f a m i l i e s and t o keep t h e communi- t i e s u n d i v i d e d , w i t h t h e r e s u l t t h a t fewer r a n c h e s have been e s t a b l i s h e d b u t w i t h more f a m i l i e s and more head of c a t t l e per ranch. 47- I n f r a s t r u c t u r e . A l l t h e i n f r a s t r u c t u r e works planned f o r develop- ment a t a p p r a i s a l o r agreed w i t h t h e Review Mission have been completed and a r e o p e r a t i o n a l . S t a f f h o u s i n g and v e t e r i n a r y i n f r a s t r u c t u r e a r e summarized below: S t a f f Houses Veterinary I n f r a s t r u c t u r e Sector Sector Sub-sector Veterinary Dispensaries Dipping Tanks Nyagatare 1 - 2 Rwempa sha 1 - 2 Tabagwe 1 - 2 Musheli - 1 - 1 - 2 Total - 4 - 1 - 8 - 8 I n a d d i t i o n , about 405 km of f e e d e r r o a d s were b u i l t a s compared t o 150 km estimated a t appraisal. 48. A few d i f f e r e n c e s w i t h t h e a p p r a i s a l e s t i m a t e s must be p o i n t e d o u t : t h e d e l e t i o n of two d i p p i n g t a n k s from t h e c o n s t r u c t i o n program was a g r e e d t o by t h e 1975 Review Mission. Only one lower l e v e l (Ah) v e t e r i n a r y a s s i s t a n t house was b u i l t i n s t e a d of s i x a s t h e o t h e r v e t e r i n a r y a s s i s t a n t s were re- c r u i t e d among p a s t o r a l f a m i l i e s and t h e r e f o r e had t h e i r houses on t h e r a n c h e s . The v e t e r i n a r y d i s p e n s a r i e s b u i l t under t h e P r o j e c t , however, had n o t been i n c l u d e d i n t h e a p p r a i s a l e s t i m a t e s . 49. S t a f f i n g . An e x p a t r i a t e v e t e r i n a r i a n was a p p o i n t e d d i r e c t o r of t h e Group Ranch s u b - p r o j e c t . H e was d i s m i s s e d and r e p l a c e d by a n o t h e r expa- t r i a t e v e t e r i n a r i a n i n l a t e 1976, because of d i s a g r e e m e n t s w i t h i n t h e p r o j e c t management team on t h e t e c h n i c a l - approach t o P r o j e c t implementation. A Rwandese v e t e r i n a r i a n was a p p o i n t e d d e p u t y d i r e c t o r i n l a t e 1976. Four v e t e r i n a r y t e c h n i c i a n s (A2) have been a p p o i n t e d a s s e c t o r c h i e f s , and f o u r lower l e v e l (A4) v e t e r i n a r y a s s i s t a n t s were r e c r u i t e d . An a d d i t i o n a l 16 c a n d i d a t e s were t r a i n e d a s lower l e v e l (A4) v e t e r i n a r y a s s i s t a n t s b u t o n l y 12 of them were permanently r e c r u i t e d by OVAPAM a s s u b - s e c t o r c h i e f s upon c o m p l e t i o n of t h e i r t r a i n i n g program. 50. Animal P r o d u c t i o n Program. T h i s program was o n l y i n i t i a t e d i n l a t e 1977. The a p p r a i s a l had e n v i s a g e d t h a t l i v e - h e d g e paddocking would be estab- l i s h e d on t h e - group r a n c h e s s o t h a t p a s t o r a l i s t s c o u l d p r a c t i c e p a s t u r e r o t a t i o n . P l a n t a t i o n of Euphorbia hedges was i n i t i a t e d o n l y on t h e r a n c h e s f i r s t i n s t a l l e d , b u t t h e r e i s l i t t l e e v i d e n c e t h a t p a s t o r a l i s t s have a c t u a l l y s t a r t e d p r a c t i s i n g some p a s t u r e r o t a t i o n . L i t t l e a c t i o n w a s u n d e r t a k e n f o r p a s t u r e improvement o r weed c o n t r o l , u n t i l t h e end of t h e P r o j e c t p e r i o d . The d e g r e e of i n f e s t a t i o n of p a s t u r e s by a weed c a l l e d - Cympopogon - - Afronardus a p p e a r s t o have been c o n s i d e r a b l y u n d e r e s t i m a t e d a t a p p r a i s a l which only - - e n v i s a g e d t h a t t h e P r o j e c t management would e n s u r e t h a t r a n c h e r s c l e a r e d t h e weeds. 51. V e t e r i n a r y Program - To d a t e , t h i s i s p e r h a p s t h e most s u c c e s s f u l p a r t of t h e e x t e n s i o n work i n t h e s u b - p r o j e c t . T h e r e i s now a r e g u l a r d i p p i n g program whereby a l l c a t t l e a r e dipped a t l e a s t once a week. The P r o j e c t management team e s t i m a t e s t h a t i t h a s r e a c h e d 95% p a r t i c i p a t i o n . The P r o j e c t s t a f f h a s a l s o u n d e r t a k e n s u c c e s s f u l v a c c i n a t i o n campaigns a g a i n s t a n t h r a x and treatments against helminthiasis. 52. D e s t o c k i n g - The a p p r a i s a l i m p l i c i t l y acknowledged t h a t about 2,500 a n i m a l s (on t h e b a s i s of 1968 d a t a ) would l e a v e t h e a r e a , 11 s i n c e 28,000 were t o be i n s t a l l e d , and 3 0 , 5 0 0 were a l r e a d y i n t h e a r e a . ow ever, no d e s t o c k i n g program was c l e a r l y f o r m u l a t e d . I t was assumed t h a t "where t h e r a n c h c a r r y i n g c a p a c i t y would be exceeded and t h e h e r d would n o t i n c l u d e mature steers o r c a t t l e ready f o r c u l l i n g , d e s t o c k i n g would be e f f e c t e d p r o p o r t i o n a t e l y t o t h e g r a z i n g r i g h t of each group member e x c e p t t h a t no member would be f o r c e d t o d e s t o c k b e f o r e h e would a t t a i n h i s minimum a s s i g n e d g r a z i n g r i g h t of 6 A.U." 1/ The p r e p a r a t i o n r e p o r t mentioned b l u n t l y t h a t 1 0 , 0 0 0 head would l e a v e t h e a r e a "spontaneously." The need f o r a d e s t o c k i n g program became a l l t h e more a c u t e when t h e 1974 s t u d y c a r r i e d o u t under t h e P r o j e c t r e v e a l e d t h a t t h e c a t t l e numbered 34,700 head, and t h e maximum s t o c k i n g r a t e a s a f u n c t i o n of t h e lower c a r r y i n g c a p a c i t y ( p a r a 46 ( i i i ) was 16,000 head. Up t o 15,000 head of c a t t l e d i d l e a v e t h e P r o j e c t a r e a i n 1974 and 1975. The P r o j e c t Management team f o r c e d c a t t l e owners n o t o r i g i n a z i n g from t h e Mutara Region t o l e a v e f o r t h e few o t h e r p a r t s of Rwanda where g r a z i n g was s t i l l a v a i l a b l e (namely i n t h e Bugesera r e g i o n and i n G i s e n y i P r e f e c t u r e ) . Other c a t t l e owners l e f t o u t of f e a r , m o s t l y f o r Uganda, b u t have been t r i c k l i n g back i n t o t h e Mutara a r e a s i n c e e a r l y 1977. S i n c e t h e n , a b o u t 1 , 5 0 0 head have been d e s t o c k e d b u t o v e r a l l h e r d numbers have i n c r e a s e d w i t h t h e i n f l u x of p a s t o r a l f a m i l i e s from Uganda. 53. Breeding Ranch - T h i s P r o j e c t component a t t r a c t e d a l o t of a t t e n t i o n from t h e e x p a t r i a t e r a n c h d i r e c t o r i n t h e l a s t y e a r and a h a l f of P r o j e c t implementation. I n view o f h i s i n a b i l i t y t o communicate w i t h t h e p a s t o r a l i s t s , and h i s poor r e l a t i o n s w i t h h i s Rwandese d e p u t y , t h i s provided a s t r a i g h t f o r - ward d i v i s i o n of l a b o r w i t h t h e Rwandese v e t e r i n a r i a n . He s u p e r v i s e d t h e development of t h e r a n c h on 674 ha i n s t e a d of t h e 480 ha e n v i s a g e d a t a p p r a i s a l , i n c l u d e d b u i l d i n g t h e b a s i c i n f r a s t r u c t u r e ( a house f o r t h e r a n c h a s s i s t a n t (A2), a d i p p i n g t a n k , a n i g h t k r a a l , a w a i t i n g k r a a l on t h e p a r t of t h e r a n c h which w i l l e v e n t u a l l y be s e t a s i d e a s a h o l d i n g ground), t h e d e l i - m i t a t i o n of t h e r a n c h b o u n d a r i e s w i t h Euphorbia, some weed e r a d i c a t i o n , and a p a s t u r e e x p e r i m e n t a t i o n f i e l d on 10 ha of l a n d . The l a t t e r a c t i v i t y was r a t h e r p o o r l y planned and of l i t t l e use: S e t a r i a , Tripsacum, S t y l o s a n t h e s , Desmodium, and M e l i n i s were seeded a s p u r e c r o p s , i n a zone c l o s e t o t h e r i v e r where c o n d i t i o n s were much b e t t e r t h a n on t h e a v e r a g e ranch. I n a d d i t i o n no p r o p e r m o n i t o r i n g of e s t a b l i s h m e n t r a t e o r y i e l d s was p o s s i b l e , as t h e e x p e r i - m e n t a t i o n f i e l d proved t o b e t h e w i l d l i f e ' s d e l i g h t : most of t h e s e improved g r a s s e s were grazed by hippopotamuses and a n t i l o p e s b e f o r e any measurements c o u l d be made. The p r o j e c t management a l s o s t a r t e d a b r e e d i n g h e r d . I n t h e c o u r s e of t h e Phase I p r o j e c t , two g e n e t i c improvement programs were succes- s i v e l y e l a b o r a t e d , b o t h w i t h t h e o b j e c t i v e of o b t a i n i n g 112 Ankole-Sahiwal c a t t l e . The f i r s t one was based on a r t i f i c i a l i n s e m i n a t i o n (AI) of dams from t h e Paysannat and from t h e r a n c h e s w i t h Sahiwal f r o z e n semen imported from Kenya. The a d v a n t a g e of A 1 was t o avoid t h e i m p o r t a t i o n of Sahiwal b u l l s which a r e v e r y s e n s i t i v e t o E a s t Coast Fever ( E C F ) . T h i s program w a s abandoned f o r p r a c t i c a l r e a s o n s , namely, t h e l a c k of e x p e r i e n c e w i t h A 1 i n Rwanda. The second program was t o c o n s i s t of i m p o r t i n g p u r e Sahiwal b u l l s and h e i f e r s from Kenya t o produce pure-bred s i r e s on t h e b r e e d i n g r a n c h f o r d i s t r i b u t i o n i n b u l l i n g c e n t e r s i n t h e Paysannat and i n t h e r a n c h e s . T h i s program d i d n o t s t a r t a t a l l , because of Kenya's i n i t i a l r e s t r i c t i o n s on Sahiwal e x p o r t s and t h e e x t r e m e l y h i g h t r a n s p o r t c o s t s . The b r e e d i n g and maintenance of h i g h l y f r a g i l e a n i m a l s i n a s t i l l r a t h e r p r e c a r i o u s animal h e a l t h environment i s a l s o very r i s k y . The a p p r a i s a l m i s s i o n had o n l y e n v i s a g e d p r o d u c t i o n of c r o s s - b r e d Sahiwal x Ankole c a t t l e , f o r d i s t r i b u t i o n i n t h e r e s t of t h e P r o j e c t . The r a n c h herd c u r r e n t l y (December 1979) c o n s i s t s of a b o u t 200 head; t h e m a j o r i t y of t h e c a t t l e i s Ankole c a t t l e bought l o c a l l y b u t q u a l i f y i n g f o r a b r e e d i n g herd. A few s i r e s were bought from ISAR. 54. T s e - t s e - A t s e - t s e e r a d i c a t i o n s t u d y was c a r r i e d o u t by ISAR i n 1975. I t i d e n t i f i e d 2,900 ha i n t h e P r o j e c t a r e a where t h e t s e i t s e f l y h a b i t a t should be d e s t r o y e d , of which 1,600 ha were i n t h e r a n c h i n g zone, and 1,300 h a i n t h e P a y s a n n a t . The t e c h n i q u e i n i t i a l l y used by t h e P r o j e c t s t a f f c o n s i s t e d of s p r a y i n g a c c a c i a t r e e s up t o 4 m i n h e i g h t w i t h d i e l d r i n , and c l e a r i n g bushes. The works were h a l t e d f o r about a y e a r when t h e Tourism Department complained t h a t d i e l d r i n s p r a y i n g was a f f e c t i n g w i l d l i f e . T h e r e a f t e r , t h e a u t h o r i z a t i o n was g r a n t e d t o c o n t i n u e , and t h e program was v i r t u a l l y completed i n t h e group r a n c h e s : 1 , 4 5 0 ha were c l e a r e d , of which 500 ha i n t h e b r e e d i n g r a n c h and 950 h a o n t h e r a n c h e s . I n t h e P a y s a n n a t , e r a d i c a t i o n i s done by t h e p a r t i c i p a n t s themselves when c l e a r i n g t h e l a n d a f t e r s e t t l e m e n t . The e f f i c i e n c y of t h e program i s s t i l l under review, i n p a r t i c u l a r where t r e e s o r bushes were stumped and a r e growing again. 55. General Services - OVAPAM i n i t i a l l y established headquarters i n K i g a l i w h i l e o f f i c e and t h e houses were b e i n g b u i l t i n t h e P r o j e c t a r e a a t Nyagatare. Even though t h e s e f a c i l i t i e s were completed by mid-1978, t h e a c c o u n t i n g s e r v i c e s and OVAPAM's d i r e c t o r remained i n K i g a l i u n t i l t h e end of t h e P r o j e c t p e r i o d ; t h i s had been a g r e e d by t h e Review Mission, a l t h o u g h i t i s now a p p a r e n t t h a t t h e d e c i s i o n had a n e g a t i v e e f f e c t o n t h e management of t h e Project. - 1/ 56. Marketing - The a p p r a i s a l m i s s i o n had recommended t h e r e c r u i t m e n t o f a m a r k e t i n g s p e c i a l i s t who would be r e s p o n s i b l e f o r o r g a n i z i n g c a t t l e and c r o p marketing f o r t h e P r o j e c t . I n i t i a l l y , h i s r e c r u i t m e n t was d e f e r r e d , w i t h t h e Bank's agreement, as t h i s was n o t a p r i o r i t y a c t i o n i n view of o t h e r p r i o r i t y a c t i v i t i e s , such a s p l o t and r a n c h a l l o c a t i o n , p a r t i c i p a n t s ' i n s t a l - l a t i o n , and i n f r a s t r u c t u r e development. However, a f t e r 1977, v a r i o u s I D A s u p e r v i s i o n m i s s i o n s recommended h i s r e c r u i t m e n t t o t h e Government and t o t h e P r o j e c t Management team, b u t no a c t i o n was t a k e n u n t i l t h e end of t h e P r o j e c t period 2 / . N o c a t t l e marketing a c t i o n w a s u n d e r t a k e n e x c e p t f o r r e p a i r i n g f a c i l i t i e s a t t h e Nyagatare market. A s m a l l c r o p m a r k e t i n g program was i n i t i a t e d i n 1977. While t h e 1977 program, which c o n s i s t e d of t h e purchase of maize and beans, amounted t o RF 277,000, t h e 1978 program appeared as a d i s a s t e r i n May 1978: a b o u t 1 0 0 t o n s of maize had been purchased but no market was found. O VAPA M had no f u n d s r e a d y t o pay t h e f a r m e r s and suspended p u r c h a s e s f o r s e v e r a l weeks, l e a v i n g f a r m e r s d i s a p p o i n t e d . F i n a l l y , i t was i m p r o p e r l y s t o r e d , and r i s k s of l o s s e s were h i g h i f no immediate a c t i o n was t a k e n . The volume of a g r i c u l t u r a l produce marketed i n 1979 i n c r e a s e d sub- s t a n t i a l l y , and amounted t o RF 2.5 m i l l i o n . High c o l l e c t i o n and t r a n s p o r t a - t i o n c o s t s and l i m i t e d market o u t l e t s remained t h e two major c o n s t r a i n t s . O V A PA M s t a r t e d r e t a i l i n g sorghum f l o u r i n K i g a l i , b u t t h e p r o f i t a b i l i t y of t h i s a c t i v i t y i s doubtful. 1/ - The P r o j e c t A u t h o r i t y n o t e s t h a t a l l g e n e r a l s e r v i c e s , i n c l u d i n g P r o j e c t management, have now been e s t a b l i s h e d i n Nyagatare. 2/ - During t h e a p p r a i s a l of t h e Phase I1 p r o j e c t i n May 1978, i t was a g r e e d t o i n c l u d e t h e p o s i t i o n of t h e m a r k e t i n g s p e c i a l i s t i n t h e t e c h n i c a l a s s i s t a n c e team f o r t h e Phase I1 p r o j e c t . Project Costs 57 P r o j e c t c o s t s a r e now e s t i m a t e d amounted RF 395.0 m i l l i o n (USS4.3 m i l l i o n ) or r o u g h l y what was a n t i c i p a t e d a t a p p r a i s a l . D e t a i l s a r e g i v e n i n T a b l e 1. However, t h e s e p r o j e c t c o s t s were f o r a s u b s t a n t i a l l y reduced p r o j e c t and v i r t u a l l y a l l u n i t c o s t s were h i g h e r than e x p e c t e d . Delays i n implementation and h i g h e r t h a n e x p e c t e d i n f l a t i o n r a t e s a l s o r e s u l t e d i n i n c r e a s e d p r o j e c t c o s t s . P a r t s of p r o j e c t investment w i l l b e c a r r i e d o u t , w i t h some m o d i f i c a t i o n s , under t h e Phase I1 P r o j e c t . Disbursements 58 Disbursements were completed on December 4, 1979, i .e., a few weeks ahead of t h e c l o s i n g d a t e e s t i m a t e d a t a p p r a i s a l (December 31, 1979). Disbursements were much slower t h a n e n v i s a g e d a t a p p r a i s a l d u r i n g t h e f i r s t t h r e e y e a r s of t h e P r o j e c t implementation, l a r g e l y r e f l e c t i n g d e l a y s i n t h e implementation s c h e d u l e . The a c t u a l s c h e d u l e of d i s b u r s e m e n t s compared t o a p p r a i s a l e s t i m a t e s i s a t t a c h e d a s Table 2. Procurement 59. The Development C r e d i t Agreement s t i p u l a t e d t h a t a l l goods and s e r v i c e s f o r amounts above US$20,000 would be procured through i n t e r n a t i o n a l c o m p e t i t i v e b i d d i n g , and i t e m s between US$2,000 and US$20,000 would be ten- dered among l o c a l s u p p l i e r s . Government made s i n c e r e a t t e m p t s t o i n v i t e I C B f o r t h e procurement o f v e h i c l e s and equipment a t t h e b e g i n n i n g of t h e P r o j e c t p e r i o d , b u t was u n s u c c e s s f u l , m o s t l y b e c a u s e of t h e g e o g r a p h i c a l i n s u l a t i o n of Rwanda. It was t h e r e f o r e agreed i n t h e c o u r s e of s u p e r v i s i o n t h a t a l l goods could be procured t h r o u g h l o c a l shopping. A l l t h e c o n s t r u c t i o n works were executed by f o r c e a c c o u n t . Compliance w i t h major c o v e n a n t s 60. The major c o v e n a n t s of t h e Development C r e d i t Agreement d a t e d November 29, 1973 and amended i n J a n u a r y 1978 were complied w i t h . A note- worthy f e a t u r e of t h e p r o j e c t was t h a t i t proved u n r e a l i s t i c t o r e c o v e r f e e s from p r o j e c t b e n e f i c i a r i e s as i n i t i a l l y i n t e n d e d , and t h e covenant i n c o s t r e c o v e r y was t h u s s u b s t a n t i a l l y modified. A summary of c o v e n a n t s w i t h n o t e s on compliance is g i v e n a s Annex 1. IV. AGRICULTURAL IMPACT Crop P r o d u c t i o n 61 It i s p a r t i c u l a r l y d i f f i c u l t t o e s t i m a t e a c c u r a t e l y t h e impact of t h e p r o j e c t on a g r i c u l t u r a l p r o d u c t i o n i n t h e Mutare a r e a , s i n c e no s y s t e m a t i c e f f o r t was made d u r i n g p r o j e c t implementation t o monitor farm developments and c o I l e c t i n f o r m a t i o n on t h e p a r t i c i p a n t s ' p r e - p r o j e c t a c t i v i t i e s . When p l o t s were a l l o c a t e d i n t h e Paysannat, few farmers were given t h e p l o t ( o r even p a r t of t h e p l o t ) which they had p r e v i o u s l y occupied. Many farmers came from o t h e r r e g i o n s than t h e Mutara. A s a r e s u l t , most of them had t o c l e a r t h e land p r i o r t o c u l t i v a t i o n . I n t h e absence of any r e l i a b l e s t a t i s t i c a l d a t a con- cerning t h e a c t i v i t i e s of newcomers b e f o r e they s e t t l e d i n t h e Mutara a r e a , i t is n o t easy t o e v a l u a t e what they would have produced i f t h e p r o j e c t had not been implemented. I n a l l l i k e l i h o o d , farmers s e t t l e d i n t h e Paysannat would have continued some farming a c t i v i t y . I n a d d i t i o n , f u l l c u l t i v a t i o n of a p l o t cannot be c a r r i e d , o u t i n t h e f i r s t y e a r a f t e r s e t t l e m e n t because of o t h e r t a s k s i n a d d i t i o n t o land c l e a r a n c e , such a s house c o n s t r u c t i o n . A t t h e time of a p p r a i s a l of t h e second phase of t h e Mutara P r o j e c t (May 1978), t h e P r o j e c t Management team e s t i m a t e d t h a t , a f t e r t h r e e y e a r s of p r o j e c t implementation, only about 45% of t h e a t t r i b u t e d l a n d was c u l t i v a t e d , which r e p r e s e n t e d about 0.60 h e c t a r e s per farm, s i g n i f i c a n t l y lower than t h e nationwide average. Since most farmers were c u l t i v a t i n g somewhere e l s e i n t h e Mutara o r i n Rwanda b e f o r e j o i n i n g t h e p r o j e c t , t h e p r o d u c t i o n of most of t h e s e t t l e r s a t p r e s e n t may w e l l be t h e same o r even l e s s t h a n i t would have been without t h e p r o j e c t , although given i n t e n s i v e p r e s s u r e on l a n d i n Rwanda i t i s d i f f i c u l t t o d e t e r - mine w i t h accuracy a "with" and "without" p r o j e c t comparison. I t can be e s t i m a t e d t h a t an a d d i t i o n a l 0.20-0.30 ha a r e put i n t o c u l t i v a t i o n each year. The r e s u l t s of a survey c a r r i e d o u t i n 1979, on 20% of t h e p l o t s i n t h e Paysannat, gave t h e following d i s t r i b u t i o n of land u s e , and a r e compared t o d a t a c o l l e c t e d i n 1978: - 11 1978 1979 Crop X of t o t a l X of t o t a l (ha) cultivated (ha) cultivated Banana 0.29 Beans 0.30 Sorghum 0.20 Maize 0.25 Cassava 0.15 Sweet P o t a t o e s 0.10 G r oundnu t s 0.03 Soya neg . Total Fallow Grand T o t a l 2.00 2 .OO - 11 - The r e l i a b i l i t y of t h e s e d a t a i s somewhat d o u b t f u l , p a r t i c u l a r l y s i n c e intercropping i s generally practised. 62. The main c r o p s c u l t i v a t e d under t h e p r o j e c t a r e t h e s u b s i s t e n c e c r o p s mentioned above. A major d i f f e r e n c e between t h e p r e s e n t s i t u a t i o n and a p p r a i s a l e s t i m a t e s i s t h a t a s m a l l e r a r e a t h a n e n v i s a g e d h a s proved t o be s u i t a b l e f o r c o f f e e c u l t i v a t i o n : 500 ha p e r h a p s i n s t e a d of 2,000 h a , and i t h a s s o f a r h a r d l y s t a r t e d . Groundnut c u l t i v a t i o n h a s n o t y e t s t a r t e d on a commercial b a s i s . The Review Report had mentioned t o b a c c o a s a n a l t e r n a t i v e c a s h c r o p . The M i n i s t r y o f A g r i c u l t u r e i n f a c t s t a r t e d d e v e l o p i n g a t o b a c c o p r o j e c t i n t h e Mutara a r e a , and a p o o r l y planned n u r s e r y f o r V i r g i n i a tobacco was e s t a b l i s h e d i n t h e P a y s a n n a t , and a d r y e r was b u i l t . However, V i r g i n i a tobacco i s v e r y d e l i c a t e and r e q u i r e s warm a i r d r y i n g , and t h e r e i s no f u e l a v a i l a b l e t o r u n such a d r y i n g f a c i l i t y . The f u t u r e of t h i s t o b a c c o project is doubtful. Livestock Production 63. It i s e q u a l l y d i f f i c u l t t o assess t h e p r o j e c t impact on l i v e s t o c k production. The o v e r a l l h e r d of t h e Mutara a r e a d e c l i n e d i n t o t a l s i z e d u r i n g t h e p r o j e c t p e r i o d , ( a s d i d Rwanda's n a t i o n a l h e r d by a n e s t i m a t e d 1 0 , 0 0 0 h e a d ) . An e s t i m a t e d 10,000 head were t a k e n t o Uganda, and a n a d d i t i o n a l 5,000 head went t o o t h e r p a r t s of t h e c o u n t r y , p r i n c i p a l l y t o t h e Bugesera and t o t h e Gishwati a r e a s . Although t h e d e p a r t u r e of 15,000 head r e l i e v e d t h e o v e r s t o c k i n g s i t u a t i o n , t h e r a n c h i n g a r e a i s s t i l l o v e r s t o c k e d . It c a n n o t be s p e c u l a t e d t h e r e f o r e t h a t an i n c r e a s e i n p r o d u c t i v i t y of t h e remaining herd h a s r e s u l t e d from t h e d e p a r t u r e of some c a t t l e . I t i s d o u b t f u l t h a t o v e r a l l beef p r o d u c t i o n h a s even remained c o n s t a n t . V. PROJECT BENEFITS Economic B e n e f i t s 64. The economic a n a l y s i s of t h e Mutara p r o j e c t p r e s e n t s s e v e r a l complex f e a t u r e s which r e n d e r computation of a meaningful r a t e of r e t u r n a t t h i s s t a g e particularly difficult. F i r s t , i t i s d i f f i c u l t t o d e f i n e i n c r e m e n t a l produc- t i o n a t t r i b u t a b l e t o p r o j e c t i n v e s t m e n t s . Farmers would p r o b a b l y have s e t t l e d t h e p r o j e c t a r e a i n t i m e , w i t h o r w i t h o u t t h e p r o j e c t , and t h e y c e r t a i n l y began t o do s o b e f o r e any i n v e s t m e n t s began; t h e r e i s some e v i d e n c e , however, t h a t f a r m e r s began t o s e t t l e s i m p l e because of rumors t h a t a development scheme was e n v i s a g e d . F u r t h e r , f a r m e r s who s e t t l e d had p r e v i o u s l y c u l t i v a t e d l a n d e l s e w h e r e and t h e i r p r o d u c t i o n i n t h e new area might simply have sub- s t i t u t e d f o r p r o d u c t i o n e l s e w h e r e : however, s i n c e p r e s s u r e on l a n d i s s o i n t e n s e i t seems p r o b a b l e t h a t new f a r m e r s took up any s l a c k i n c u l t i v a t i o n i n a r e a s t h e s e t t l e r s came from, s o t h a t t h e i r p r o d u c t i o n p r o b a b l y d o e s r e p r e s e n t a n a b s o l u t e i n c r e a s e f o r Rwanda. It i s even p o s s i b l e t h a t t h e i r d e p a r t u r e eased p r e s s u r e on l a n d t h u s a r r e s t i n g a d e c l i n e i n s o i l f e r t i l i t y a s s o c i a t e d w i t h o v e r l y i n t e n s i v e c u l t i v a t i o n . Second, t h e p r o j e c t i s c l e a r l y o n l y t h e b e g i n n i n g of a long-term development program, and i t i s hazardous t o a s s i g n b e n e f i t s t o a s i n g l e p a r t of t h a t program. Nevertheless, i f the following r e l a t i v e l y p e s s i m i s t i c assumptions a r e a p p l i e d , and i f t h e p r o j e c t i s viewed a s a n i s o l a t e d program, t h e economic r a t e of r e t u r n would p r o b a b l y be n e g a t i v e o r a t b e s t m a r g i n a l . Without t h e p r o j e c t , s e t t l e m e n t of t h e Mutara a r e a would a l m o s t c e r t a i n l y have t a k e n p l a c e anyway, s i n c e i t had a l r e a d y s t a r t e d , when p r o j e c t implementation was i n i t i a t e d ( p a r a 6 1 ) . With t h e p r o j e c t , t h e s e t t l e - ment has been o r g a n i z e d and f a r m e r s w i l l p r o g r e s s i v e l y p u t t h e l a n d i n t o c u l t i v a t i o n , a s t h e y would have w i t h o u t t h e p r o j e c t . S i n c e l i t t l e e x t e n s i o n work was undertaken i n t h e Paysannat d u r i n g t h e f i r s t f o u r y e a r s of p r o j e c t implementation, i t i s r e a s o n a b l e t o assume t h a t t h e m a j o r i t y of t h e f a r m e r s simply c o n t i n u e d t o p r a c t i c e t h e i r t r a d i t i o n a l c u l t i v a t i o n t e c h n i q u e s , r e s u l t - i n g i n reduced f a l l o w , d e c l i n i n g s o i l f e r t i l i t y and i n c r e a s e d e r o s i o n . On t h e Group r a n c h e s , t h e p r o g r e s s i v e d e t e r i o r a t i o n of t h e range from o v e r g r a z i n g and weed e s t a b l i s h m e n t probably caused about 7,000 h a t o be t a k e n o u t of p r o d u c t i o n , and a t l e a s t 10,000 head of c a t t l e were moved o u t of t h e Mutara a r e a . The animal h e a l t h improvements due t o t h e P r o j e c t v e t e r i n a r y program would n o t compensate f o r d e c r e a s i n g c a t t l e numbers and a v e r a g e herd produc- tivity. It can be c o n c l u d e d , t h e r e f o r e , t h a t no i n c r e m e n t a l p r o d u c t i o n w i l l r e s u l t from t h e p r o j e c t i n v e s t m e n t s a l o n e ; however, a l l t h e i n f r a s t r u c t u r e developed and s t a f f t r a i n e d were i n d i s p e n s a b l e f o r t h e Phase I1 p r o j e c t . The a p p r a i s a l of t h e Phase I1 p r o j e c t e s t i m a t e d t h e i n c r e m e n t a l economic r a t e of r e t u r n a t 14%, and 7% i f t h e c o s t s of t h e Phase I P r o j e c t were i n c l u d e d ( T a b l e 4 ) . A d d i t i o n a l economic b e n e f i t s would be t h e p r e s e r v a t i o n of t h e w i l d l i f e r e s o u r c e s i n t h e N a t i o n a l P a r k , which might b r i n g f o r e i g n exchange t o Rwanda i f i n v e s t m e n t s i n t o u r i s m a r e made. Participants' Benefits 65. The p r o j e c t h a s c l e a r l y had a v e r y mixed impact o n t h e p o p u l a t i o n of t h e Mutara. Among t h e n e g a t i v e a s p e c t s , one must mention t h e d e p a r t u r e of a s u b s t a n t i a l number of p a s t o r a l f a m i l i e s t o Uganda, whether because they f e a r e d ~ o v e r n m e n t ' s i n t e r v e n t i o n i n t h e a r e a , o r because they r e f u s e d t o p a r t i c i p a t e i n t h e p r o j e c t . With t h e d e p a r t u r e of t h e s e f a m i l i e s , Rwanda l o s t an i m p o r t a n t s h a r e of i t s r e g i o n a l c a t t l e herd; i t i s u n f o r t u n a t e t h a t g r e a t e r e f f o r t s were n o t made t o f i n d a s o l u t i o n which would have made i t p o s s i b l e f o r Rwanda t o r e t a i n t h i s p r o d u c t i v e c a p i t a l . Among t h e p o s i t i v e a s p e c t s , one must mention t h a t e v e n i f l i t t l e i n c r e a s e i n p r o d u c t i o n o r c a s h income h a s y e t t a k e n p l a c e , t h e e s t a b l i s h m e n t of t h e Paysannat and of t h e Group Ranches has g i v e n s e c u r i t y and a p r o d u c t i v e c a p i t a l a s s e t t o a s i g n i - f i c a n t number of farm and p a s t o r a l f a m i l i e s . L a n d l e s s f a r m e r s , o r f a r m e r s w i t h v e r y i n s e c u r e l a n d r i g h t s now have u s u f r u c t r i g h t s on a 2-ha p l o t which t h e i r d e s c e n d e n t s c a n i n h e r i t . The same a p p l i e s f o r p a s t o r a l f a m i l i e s i n s t a l l e d w i t h i n t h e Group Ranches, who were p r e v i o u s l y i n a p o t e n t i a l l y c o n f l i c t i n g s i t u a t i o n w i t h f a r m e r s . I n t h e f u t u r e , i t c a n a l s o be a n t i c i p a t e d t h a t t h e Paysannat and t h e Group r a n c h e s w i l l be a f a v o r a b l e environment t o promote improved farming and c a t t l e r e a r i n g t e c h n i q u e s . 66. The p r o j e c t , however, h a s r a i s e d s e v e r a l i s s u e s which have n o t y e t been r e s o l v e d . A f i r s t i s s u e i s t h e o p t i o n a l l a n d u s e and development per- s p e c t i v e f o r t h e a r e a . Given t h e s c a r c i t y of l a n d i n Rwanda and t h e growing p o p u l a t i o n p r e s s u r e , i t i s h i g h l y l i k e l y t h a t i n t h e long-term a l l l a n d s u i t a b l e f o r c r o p c u l t i v a t i o n w i l l be c u l t i v a t e d . Consequently, i t i s most u n l i k e l y t h a t e x t e n s i v e l i v e s t o c k r a i s i n g can be maintained a s such. P a r t o f t h e r a n c h i n g a r e a has some p o t e n t i a l f o r c r o p development; w i t h p o p u l a t i o n growth and i n c r e a s i n g p r e s s u r e on l a n d , i t c a n be expected t h a t new farm f a m i l i e s w i l l move t o t h e Mutara a r e a . T h i s i s a s o u r c e of p o t e n t i a l con- f l i c t which OVAPAMOs management w i l l need t o keep m o n i t o r i n g . I f l i v e s t o c k p r o d u c t i o n i s t o be m a i n t a i n e d i n t h e Mutara a r e a , i t w i l l need t o be i n t e n - s i f i e d i n order t o f r e e progressively a l l t h e land p o t e n t i a l l y s u i t a b l e f o r c u l t i v a t i o n . While t h e Akagera P a r k h a s r e p o r t e d l y l i t t l e s u i t a b l e l a n d f o r c r o p c u l t i v a t i o n , t h e Hunting R e s e r v e may be a n a r e a which w i l l need t o be made a v a i l a b l e p r o g r e s s i v e l y f o r s e t t l e m e n t , whether f o r f a r m i n g o r l i v e s t o c k r a i s i n g . A s t e p i n t h a t d i r e c t i o n was t a k e n by t h e Government I n October 1979, when 6,000 h a were t a k e n from t h e Hunting Reserve and a l l o c a t e d t o O V A PA M f o r development. 67. Another i s s u e i s t h e d i s t r i b u t i o n of p r o j e c t b e n e f i t s . Dispari- t i e s e x i s t between f a r m e r s who were e s t a b l i s h e d i n t h e Mutara b e f o r e t h e p r o j e c t and newcomers. Among b e n e f i c i a r i e s of t h e P a y s a n n a t , i t h a s been n o t i c e d t h a t t h e Mutara f a r m e r s who were r e s e t t l e d have a b o u t h a l f t h e l a n d o r less t h a n t h e y used t o c u l t i v a t e ( 2 h a v e r s u s 4 o r 5 ) . Newcomers, who m o s t l y came from t h e North ( R u h e n g e r i ) , have on t h e c o n t r a r y e i t h e r s o l d t h e l a n d which t h e y c u l t i v a t e d e l s e w h e r e f o r a c o m f o r t a b l e sum of money o r k e p t i t and e n t r u s t e d i t t o a f a m i l y member o r f r i e n d from whom t h e y c o n t i n u e t o draw s u b s t a n t i a l b e n e f i t s . I n a d d i t i o n , some b e n e f i c i a r i e s have -- d e f a c t o received s e v e r a l p l o t s when b r i n g i n g two o r t h r e e wives o r o t h e r members o f t h e i r f a m i l i e s ( o f t e n through b r i b e r y ) . Among t h e b e n e f i c i a r i e s o f Group r a n c h e s i n e q u a l i t i e s e x i s t i n t h e d i s t r i b u t i o n of c a t t l e between f a m i l i e s w i t h i n a r a n c h . Some came i n w i t h t h e minimum of f i v e head of c a t t l e w h i l e o t h e r s came w i t h one hundred o r more, i n s p i t e o f t h e p r o j e c t r e g u l a t i o n s which s t i p u l a t e d t h a t any one f a m i l y c a n n o t own more t h a n 45% of t h e t o t a l r a n c h herd. I n e q u a l i t i e s e x i s t between r a n c h e s , a s some have much b e t t e r p a s t u r e s t h a n o t h e r s . F i n a l l y , t h e r e a r e some t r i b a l i n e q u a l i t i e s between Bahima and W a t u t s i p a s t o r a l i s t s , as t h e m a j o r i t y o f t h e p a s t o r a l i s t s who l e f t t h e Mutara ( r e p o r t e d l y because t h e y had n o t been i n s t a l l e d t h e r e t r a d i t i o n a l l y ) were Watutsi. I n e q u a l i t i e s a l s o e x i s t between t h e Paysannat and t h e Group Ranch b e n e f i c i a r i e s a s t h e former r e c e i v e 2 h a p e r f a m i l y w h i l e t h e l a t t e r r e c e i v e 1 / 2 h a o f a r a b l e l a n d p e r f a m i l y p l u s 2 ha p e r animal u n i t , w i t h a minimum of 5 a n i m a l u n i t p e r f a m i l y , o r a t o t a l of 11-1/2 h a p e r f a m i l y . F i n a l l y , i t a p p e a r s t h a t p a r t i c i p a n t s i n t h e p r o j e c t a r e r a t h e r p r i v i l e g e d as compared t o o t h e r f a r m e r s i n t h e c o u n t r y i f o n l y comparing t h e minimum farm s i z e : 2 ha compared t o t h e a v e r a g e farm s i z e i n Rwanda of 1 . 3 ha. 68. More d i f f i c u l t i s s u e s such as e t h n i c i t y have a l s o t o be a d d r e s s e d . Every e f f o r t i s made by t h e Rwanda Government t o d i s c o u r a g e c o n s i d e r a t i o n s of e t h n i c i t y i n t h e implementation of development p r o j e c t s b u t t h e s e con- siderations continue to play a s i g n i f i c a n t r o l e i n the project area. Ethniti- c i t y i m p l i e s , o r i s t h o u g h t t o imply, a measure of o c c u p a t i o n a l s p e c i a l i z a t i o n . Hima and T u t s i e l e m e n t s have been excluded from t h e Paysannat s i n c e t h e y a r e t r a d i t i o n a l l y t h o u g h t o f a s p a s t o r a l i s t s . These two e t h n i c g r o u p s a l s o appear t o have been g e n e r a l l y d i s a d v a n t a g e d i n r e l a t i o n t o t h e Hutu i n t h e o v e r a l l d i s t r i b u t i o n of p a s t u r e l a n d and i n t h e i r a c c e s s t o s o c i a l s e r v i c e s , a s t h e i r r a n c h e s have been t h e l a s t t o be i n s t a l l e d . 1/ E t h n i c t i e s a l s o e x p l a i n t h e e x i s t e n c e of s o c i a l and economic networks c e n t e r e d on Uganda. W i t h i n t h e p r o j e c t a r e a , economic t r a n s a c t i o n s which c o u l d t a k e p l a c e between t h e r a n c h e s and t h e Paysannat o r between t h e n a t i o n a l c e n t e r and t h e p e r i p h e r y , i n f a c t 1/ - The P r o j e c t A u t h o r i t y p o i n t s o u t t h a t : ( i ) t h e b e n e f i c i a r i e s o f t h e group r a n c h are p r i v i l e g e d compared t o f a r m e r s , ( i i ) b o t h Hutu and T u t s i e t h n i c groups have b e n e f i t t e d from group r a n c h e s and ( i i i ) t h e Himas were a t r a d i t i o n a l p a s t o r a l i s t group i n t h e p r o j e c t a r e a . t a k e p l a c e a c r o s s n a t i o n a l boundaries. 11 Within t h e Paysannat, some t e n s i o n s a l s o e x i s t , namely between Banyarwanda farmers and Barundi r e f u g e e s . The p r o j e c t management i t s e l f a p p e a r s t o have taken u n f a i r a t t i t u d e s towards Barundi r e f u g e e s , keeping Barundi e x t e n s i o n s t a f f on a d a i l y pay b a s i s i n s t e a d of g i v i n g them a c o n t r a c t , o r f i r i n g Barundi l a b o r without good j u s t i f i c a t i o n . The resentment a g a i n s t Barundi r e f u g e e s was a l s o f e l t among l o c a l and c e n t r a l administrative authorities. - 21 VI. INSTITUTIONAL ASPECTS 69. According t o t h e a p p r a i s a l r e p o r t , t h e p r o j e c t was t o be implemented by t h e O f f i c e de V a l o r i s a t i o n P a s t o r a l e e t A g r i c o l e du Mutara (OVAPAM), under t h e umbrella of t h e M i n i s t r y of A g r i c u l t u r e and Livestock. The o f f i c e was t o have a Board of D i r e c t o r s c o n s i s t i n g of r e p r e s e n t a t i v e s of v a r i o u s m i n i s t r i e s and of t h e b e n e f i c i a r i e s . A B e n e f i c i a r y Committee was t o be r e s p o n s i b l e f o r p l o t and ranch a l l o c a t i o n . A s s i s t a n c e w i t h P r o j e c t manage- ment was t o be provided by a team of f i v e t e c h n i c i a n s r e c r u i t e d through a c o n s u l t i n g firm. 70. OVAPAM - The O f f i c e d e V a l o r i s a t i o n P a s t o r a l e et A g r i c o l e du Mutara was c r e a t e d by P r e s i d e n t i a l Decree No. 50 of March 4 , 1974, a s a p a r a s t a t a l o r g a n i z a t i o n r e s p o n s i b l e f o r t h e implementation of t h e IDA-financed Mutara P r o j e c t under t h e umbrella of t h e M i n i s t r y of A g r i c u l t u r e and Livestock. It i s a d m i n i s t e r e d by a Board of D i r e c t o r s , which d e l e g a t e s day t o day managerial r e s p o n s i b i l i t y t o a d i r e c t o r . The Board of D i r e c t o r s i n c l u d e s r e p r e s e n t a t i v e s from t h e M i n i s t r i e s of A g r i c u l t u r e and L i v e s t o c k , Finance, P l a n n i n g , S o c i a l A f f a i r s and I n t e r i o r , from t h e N a t i o n a l Bank, and t h e Byumba P r e f e c t . The Board was i n i t i a l l y c h a i r e d by t h e S e c r e t a r y General of A g r i c u l t u r e who l a t e r appointed t h e D i r e c t o r of t h e Rural Engineering Departiuent i n h i s p l a c e . O VA PA M i n i t i a l l y c o n s i s t e d of t h e General S e r v i c e s ( S e c r e t a r i a t and Accounting S e c t i o n ) Department l o c a t e d i n K i g a l i , and s e p a r a t e u n i t s f o r t h e two sub- p r o j e c t s : t h e Paysannat sub-project and t h e Group Ranch sub-project. Project h e a d q u a r t e r s were b u i l t i n Nyagatare, and were p a r t l y used by t h e p r o j e c t management team and o t h e r s u p p o r t s t a f f (topography, draughtsman, g a r a g e , etc.). 71. O n t h e whole, OVAPAM's performance has n o t been v e r y s a t i s f a c t o r y . The Board of D i r e c t o r s met v e r y i r r e g u l a r l y . The managerial s t a r t - u p d i f f i - c u l t i e s ( p a r a . 34) l a s t e d throughout t h e p r o j e c t implementation p e r i o d even though both OVAPAMOs D i r e c t o r and t h e P r o j e c t Manager made s e r i o u s e f f o r t s t o work t o g e t h e r . One major d e f i c i e n c y i n p r o j e c t management h a s been t h e l a c k of c a r e f u l planning of p r o j e c t a c t i v i t i e s , and t h e l a c k of adequate and timely 11 - The P r o j e c t A u t h o r i t y n o t e s t h a t s i n c e economic t r a n s a c t i o n s a c r o s s t h e border a r e due t o e t h n i c t i e s , i t would have been i n a p p r o p r i a t e t o i n t e r f e r e w i t h such a t r a d i t i o n a l r e l a t i o n s h i p . 21 - The P r o j e c t A u t h o r i t y p o i n t s out t h a t : (i) an e f f o r t was made t o improve r e l a t i o n s between Banyarwanda farmers and Barundi r e f u g e e s and ( i i ) t h a t Barundi e x t e n s i o n s t a f f were appointed a s r e g u l a r s t a f f a s soon a s they complied w i t h immigration laws. budgets. Annual budgets were prepared on t h e b a s i s of v e r y rough p h y s i c a l and c o s t e s t i m a t e s , and were approved by t h e Board of D i r e c t o r s s e v e r a l months a f t e r t h e beginning of t h e f i s c a l y e a r . F i n a n c i a l management was e q u a l l y poor: no budget monitoring o r e s t i m a t e d cash flows were e v e r done; t h e a c c o u n t s were k e p t up-to-date, v e r i f i e d by t h e Government's General acc.ountant, but were never a u d i t e d by independent a u d i t o r s . P e r s o n n e l management h a s a l s o been v e r y poor. S t a f f were r e c r u i t e d , a p p o i n t e d , t r a n s f e r r e d w i t h i n t h e p r o j e c t a r e a by OVAPAM's d i r e c t o r w i t h o u t c o n s u l t a t i o n w i t h t h e p r o j e c t management team. Many d i s p a r i t i e s e x i s t e d i n t h e t r e a t m e n t of s t a f f members. Some were r e c r u i t e d and a p p o i n t e d t o t h e p r o j e c t by t h e M i n i s t r y of Agricul- t u r e , o t h e r s were d i r e c t l y r e c r u i t e d by OVA PA M and g i v e n a c o n t r a c t , o t h e r s were r e c r u i t e d by O VAPAM b u t p a i d on a d a i l y b a s i s ; f i n a l l y some s t a f f members were r e c r u i t e d by t h e Communes and a p p o i n t e d t o t h e p r o j e c t but remained under t h e communal p a y r o l l a t a s u b s t a n t i a l l y lower s a l a r y t h a n OVAPAM's s t a f f . S t a f f members' c o m p l a i n t s were o f t e n v o i c e d i n f r o n t of I D A s u p e r v i s i o n m i s s i o n s , but no s t e p s were e v e r t a k e n by OVAPAM's management t o remedy t h i s situation. 72. OVAPAM's performance a s t h e p a r a s t a t a l o r g a n i z a t i o n i t was i n t e n d e d t o be h a s g e n e r a l l y been poor. It proved i n c a p a b l e of f i n d i n g s o l u t i o n s t o i t s m a n a g e r i a l problems and h a s n o t been a b l e t o g e n e r a t e revenues. I t s f i n a n c i a l r e s o u r c e s were t o come from f e e s paid by b e n e f i c i a r i e s . T h i s proposed system had t o be abandoned d u r i n g implementation because i t became c l e a r t h a t proposed f e e s were t o o h i g h and t h a t b o t h farmers and r a n c h e r s would r e s i s t paying f e e s u n t i l t h e y were convinced t h a t b e n e f i t s would r e s u l t and t h a t t h e f e e s were c o n s i s t e n t w i t h p r a c t i c e s elsewhere i n Rwanda ( p a r a 3 8 ) . OVAPAM's f i n a n c i a l r e s o u r c e s have t h e r e f o r e m o s t l y c o n s i s t e d of t h e Government's c o n t r i b u t i o n , I D A reimbursements, and Bank o v e r d r a f t s . Details a r e g i v e n i n Table 3 . I n r e t r o s p e c t , i t a p p e a r s t h a t t h e managerial and f i n a n c i a l arrangements proposed a t a p p r a i s a l were n o t v e r y r e a l i s t i c g i v e n c o n d i t i o n s i n t h e Mutara a r e a and i n Rwanda, were g e n e r a l l y . 73. B e n e f i c i a r i e s Committee - T h i s committee was e s t a b l i s h e d t o d e c i d e on t h e a l l o c a t i o n of p l o t s and Group Ranches t o b e n e f i c i a r i e s . It was c h a i r e d by t h e Byumba P r e f e c t , and included t h e Mayors (Burgomesters) of t h e Muvumba and Ngarama Communes, a s w e l l a s r e p r e s e n t a t i v e s of O V APA M and t h e benefi- c i a r i e s . T h i s committee f u n c t i o n e d v e r y i n a d e q u a t e l y . I n s t e a d of meeting r e g u l a r l y t o review a l l c a s e s , i t d e l e g a t e d i t s r e s p o n s i b i l i t y t o OVAPAM p e r s o n n e l , meeting s p o r a d i c a l l y o n l y t o review c a s e s under l i t i g a t i o n ; t h e committee e x e r t e d b a s i c a l l y no c o n t r o l over OVAPAM's p l o t a l l o c a t i o n s , a l t h o u g h many a b u s e s have been r e p o r t e d . 74. Consultants' Performance - The e x p a t r i a t e management team c o n s i s t e d of a - p r o-j e c t / P a y s a n n a t D i r e c t o r , a v e t e r i n a r i a n / G r o u p Ranch d i r e c t o r , a c o n s t r u c t i o n s p e c i a l i s t , a mechanic, and a n a c c o u n t a n t . S e v e r a l s t a f f i n g problems took p l a c e w i t h i n t h e management team: the Project Director ini- t i a l l y proposed by t h e c o n s u l t a n t f i r m t o which t h e t e c h n i c a l a s s i s t a n c e c o n t r a c t was awarded w a s changed u n i l a t e r a l l y by t h e f i r m because of d e l a y s i n o b t a i n i n g a p p r o v a l from Government and i n f i n a l i z i n g t h e c o n t r a c t . The f i r s t a c c o u n t a n t r e s i g n e d a f t e r a month and h i s replacement d i d n o t a r r i v e u n t i l A p r i l 1975; t h e v e t e r i n a r i a n had t o be r e p l a c e d a f t e r a y e a r and a h a l f w i t h t h e p r o j e c t ( p a r a . 4 9 ) . The marketing s p e c i a l i s t was n e v e r r e c r u i t e d . A t f i r s t h i s r e c r u i t m e n t was found Dremature, b u t a f t e r 1977 I D A s t a f f k e p t p r e s s i n g f o r h i s r e c r u i t m e n t ; no a c t i o n was e v e r t a k e n by OVAPAM's management o r by t h e Government p r i o r t o t h e completion of t h e p r o j e c t . 75 P e r f o r m a n c e of t h e management team h a s n o t b e e n n o t a b l y good, and was s i g n i f i c a n t l y hampered by t h e i r p o o r r e l a t i o n s w i t h t h e Rwandese s t a f f . Because of t h e f r i c t i o n s w i t h OVAPAM's D i r e c t o r , t h e P r o j e c t d i r e c t o r a d m i t t e d t o t h e m i s s i o n t h a t he had d e f a c t o r e f u s e d t o assume h i s f u n c t i o n a s P a y s a n n a t d i r e c t o r ; i n s t e a d he l e t t h e m i d d l e l e v e l (A2) a g r o n o m i s t a p p o i n t e d i n t e r i m - d e p u t y P a y s a n n a t d i r e c t o r d o most o f t h e p l a n n i n g and i m p l e m e n t a t i o n o f t h e P a y s a n n a t s u b p r o j e c t u n t i l t h e a r r i v a l of t h e P a y s a n n a t d i r e c t o r ( p a r a 4 2 ) . The s e c o n d v e t e r i n a r i a n a p p o i n t e d had no p r e v i o u s e x p e r i e n c e i n t r o p i c a l v e t e r i n a r y m e d i c i n e and a n i m a l h u s b a n d r v , and h i s e f f i c i e n c y was f u r t h e r l i m i t e d by h i s p o o r command of t h e F r e n c h l a n g u a g e . i n a d d i t i o n t o t h e m a n a g e r i a l d e f i c i e n c i e s r e l a t e d i n p a r a . 7 1 a b o v e , major d e f i c i e n c i e s were a p p a r e n t i n t h e d i s t r i b u t i o n of r e s p o n s i b i l i t i e s w i t h i n t h e t e c h n i c a l a s s i s t a n c e team. The P r o j e c t D i r e c t o r , t h e i n f r a s t r u c t u r e s p e c i a l i s t , t h e a c c o u n t a n t , a n d e v e n t h e mechanic a p p e a r e d t o have o v e r l a p p i n g f u n c t i o n s , s p e c i f i c a l l y w i t h r e s p e c t t o t h e p r o c u r e m e n t o f n a t e r i a l s . Most o f t h e P r o j e c t Manager's work seems t o have f o c u s s e d on i n f r a s t r u c t u r e development. I n f a c t , a l l c i v i l works a r e e x t r e m e l y w e l l d o n e . 76 The c o n s u l t a n t s ' c o n t r i b u t i o n i n t r a i n i n g c o u n t e r p a r t s t a f f was l i m i t e d . One m a j o r p r o b l e m was o f c o u r s e t h a t Rwandese n a t i o n a l s o f t h e c a l i b e r t o t a k e over m a n a g e r i a l r e s p o n s i b i l i t i e s were n o t a s s i g n e d t o t h e p r o j e c t from t h e v e r y b e g i n n i n g . However, e v e n when s u c h s t a f f were a p p o i n t e d , t h e y c o u l d n o t b e t r a i n e d by t h e t e c h n i c a l a s s i s t a n t s i n t h e a r e a i n which t h e y most needed t r a i n i n g , i . e . , work p l a n n i n g , program b u d g e t i n g , and s t a f f management s i n c e t h e s e were t h e w e a k e s t a r e a s o f t h e t e c h n i c a l a s s i s t a n t s themselves. F o r t u n a t e l y , t h e Rwandese t e c h n i c a l o f f i c e r s who became s u b - p r o j e c t d i r e c t o r s d u r i n g t h e l a s t y e a r of P r o j e c t i m p l e m e n t a t i o n a r e b o t h v e r y c o m p e t e n t t e c h n i c i a n s , and were c a p a b l e of c a r r y i n g o u t a m a j o r work program on t h e i r own i n i t i a t i v e . The c o n s u l t a n t s a l s o d i d l i m i t e d work i n t r a i n i n g m i d d l e and lower l e v e l t e c h n i c a l s t a f f , and a g a i n t h e y were c o n s t r a i n e d i n t h e i r p e r f o r m a n c e by t h e i r l a c k o f knowledge of t h e F r e n c h language. 77- I n c r i t i c i z i n g t h e p e r f o r m a n c e of t h e c o n s u l t a n t s , however, i t must b e acknowledged, t h a t t h e t a s k was d i f f i c u l t . The management's team i n a b i l i t y t o communicate i n t h e v e r n a c u l a r l i m i t e d t h e i r c h a n c e s o f b e i n g e f f e c t i v e on t h e ground b e c a u s e a l a r g e s h a r e of t h e work was s o c i o l o g i c a l i n n a t u r e . It i s a l s o u n l i k e l y , t h a t i f t h e y had n o t b e e n r e c r u i t e d t o p r o v i d e p r o j e c t management s e r v i c e s , t h e p r o j e c t would n e v e r have g o t t e n o f f t h e g r o u n d , a s 0VAPAM's d i r e c t o r had n e i t h e r m a n a g e r i a l e x p e r i e n c e o r a p t i t u d e . Finally, it must b e n o t e d t h a t t h e u s e o f t e c h n i c a l a s s i s t a n c e is a v e r y s e n s i t i v e i s s u e i n Rwanda. The Government r e c o g n i z e s t h e need f o r i t , b u t t h e y r e s e n t i t s c o s t , and do n o t a l w a y s s t i p u l a t e c l e a r l y what t h e y e x p e c t from t h e e x p a t r i a t e t e c h n i c i a n s who p a r t i c i p a t e i n p r o j e c t i m p l e m e n t a t i o n . I n t h i s c a s e , i t was o b v i o u s t h a t a t f i r s t t h e r e w e r e no Rwandese n a t i o n a l s t o b e a s s i g n e d t o t h e m a n a g e r i a l p o s i t i o n s ; u n f o r t u n a t e l y , t h e Government was n o t s t r i c t enough i n t h e s e l e c t i o n of t h e e x p a t r i a t e c a n d i d a t e s . A l s o , t h e c o n s u l t a n t s r e c e i v e d v e r y l i t t l e s u p p o r t from t h e i r f i r m head o f f i c e i n t r y i n g t o f i n d s o l u t i o n s t o t h e c o n t i n u i n g and c r u c i a l i s s u e o f d i s t r i b u t i o n of r e s p o n s i b i l i t i e s between t h e P r o j e c t Manager and OVAPAM's d i r e c t o r . 78 C o n t r a c t u a l Arrangements - According t o t h e Appraisal Report par- t i c i p a n t s i n t h e Paysannat o r i n t h e Group Ranches were t o e n t e r i n t o t h r e e types of c o n t r a c t u a l arrangements (para. 30). However, o n l y one type of c o n t r a c t was i n f a c t implemented: t h e s e t t l e m e n t c o n t r a c t between t h e bene- f i c i a r y of a Group Ranch o r of t h e Paysannat and OVAPAM. These c o n t r a c t s i n i t i a l l y caused s i g n i f i c a n t d i s c o n t e n t among p o t e n t i a l p a r t i c i p a n t s i n the P r o j e c t , p a r t l y because of s u s p i c i o n towards a w r i t t e n c o n t r a c t when most of them were i l l i t e r a t e , and a l s o because of t h e proposed f e e s ; t h e c l a u s e on t h e l a t t e r was l a t e r taken out. OVAPAM's a d m i n i s t r a t i o n of t h e c o n t r a c t s l e f t much t o be d e s i r e d . T h e o r e t i c a l l y , t h e y a r e signed by t h e b e n e f i c i a r y and t h e Bourgmestre of t h e i n t e r e s t e d Commune. In f a c t , some have been signed by OVAPAM's d i r e c t o r , o t h e r s by t h e sub-project d i r e c t o r , and o t h e r s by s e c t o r c h i e f s . Contracts a r e improperly f i l e d , and copies cannot always be found. I t i s d o u b t f u l , t h e r e f o r e , t h a t t h e s e c o n t r a c t s can e a s i l y be used a s l e g a l documents i n the event of d i s p u t e s . VII. BANK PERFORMANCE 79. The p r o j e c t was t h e f i r s t Bank group p r o j e c t i n support of t h e a g r i c u l t u r a l s e c t o r in Rwanda. This p a r t l y e x p l a i n s some of t h e d i f f i c u l t i e s which a f f e c t e d t h e p r o j e c t from i d e n t i f i c a t i o n throughout implementation. The Bank's knowledge of Rwanda's a g r i c u l t u r a l s e c t o r was perhaps too l i m i t e d a t t h e time, s i n c e no s e c t o r work had y e t been undertaken, except i n the context of t h e 1968 economic mission. I n r e t r o s p e c t , i t appears t h a t the Bank had d i f f i c u l t i e s i n e s t a b l i s h i n g an e f f e c t i v e dialogue with t h e Government. This was r e f l e c t e d a t a l l s t a g e s of p r o j e c t l i f e . It is hard t o understand, f o r example, how t h e l i v e s t o c k development concept changed so much throughout t h e period of i d e n t i f i c a t i o n and p r e p a r a t i o n , and again a t a p p r a i s a l , even though t h e p r o j e c t had been prepared by t h e IBRD/FAO Cooperative Program. Even two y e a r s a f t e r t h e beginning of p r o j e c t implementation, Government i n d i c a t e d t o v i s i t i n g Bank s t a f f members t h a t t h e concept of group ranches had been imposed t o them by t h e Bank. In r e t r o s p e c t , i t appears t h a t t h e a p p r a i s a l mission recommendation was a p p r o p r i a t e , and now t h e concept of group ranches appears w e l l accepted and may have caused some p o s i t i v e changes i n t h e Mutara a r e a (para 65). 80 The a p p r a i s a l mission's proposed p r o j e c t o r g a n i z a t i o n and manage- ment proposals have n o t , i n r e t r o s p e c t , proved t o be an e f f e c t i v e response t o t h e Rwandese s i t u a t i o n , and t h e long delay i n reaching agreement on i n s t i t u t i o n a ' arrangements f o r p r o j e c t implementation proved c o s t l y f o r t h e p r o j e c t and did not r e f l e c t well on t h e Bank's understanding of the Rwandese Government's preoccupations. It seems t h a t n o t enough c o n s i d e r a t i o n was given by t h e Bank t o t h e country's previous experience, a s Government had indeed e n t r u s t e d p r o j e c t implementation r e s p o n s i b i l i t y t o c o n s u l t i n g firms. The "office" approach was c e r t a i n l y n o t more s u c c e s s f u l i n developing l o c a l c a p a c i t y , which was t h e a p p r a i s a l ' s l e g i t i m a t e preoccupation, than the Government's proposal. It is u n f o r t u n a t e t h a t 18 months were l o s t , simply because no dialogue could be e s t a b l i s h e d between t h e Bank and Government. A workable s o l u t i o n involving r e l i a n c e on e x i s t i n g i n s t i t u t i o n s could probably have been developed and might well have proved more e f f e c t i v e . 81 D i f f i c u l t d i a l o g u e between t h e iiank and Government seeas t o have p r e v a i l e d d u r i n g t h e e a r l y y e a r s of i m p l e m e n t a t i o n . Although t h e d i a l o g u e h a s improved s i n c e t h e Review M i s s i o n , i t a p p e a r s t h a t t h e m i s s i o n d i d n o t a d e q u a t e l y a d d r e s s some of t h e o u t s t a n d i n g i s s u e s which had prompted t h e Bank's management t o send t h e m i s s i o n . A s a r e s u l t , i s s u e s such a s t h e p r o j e c t management, t h e o v e r l a p w i t h t h e Canadian marshland development p r o j e c t , and c a t t l e d e s t o c k i n g remained pending t h r o u g h o u t p r o j e c t implementa- t i o n o r were p a r t i a l l y r e s o l v e d on an ad hoc b a s i s o v e r t h e y e a r s . I n estab- l i s h i n g a n e f f e c t i v e d i a l o g u e w i t h t h e Government, t h e t e c h n i c a l a s s i s t a n c e i s s u e h a s been a major s t u m b l i n g b l o c k . While r e c o g n i z i n g t h e need f o r t e c h n i c a l a s s i s t a n c e , t h e Government h a s had a g e n e r a l l y n e g a t i v e a t t i t u d e towards t e c h n i c a l a s s i s t a n c e , which was p a r t i c u l a r l y a c u t e w i t h r e s p e c t t o t h e Mutara p r o j e c t . It even caused t h e Government t o deny t h a t t h e r e was a fundamental management i s s u e i n t h e p r o j e c t which had n o t h i n g t o do w i t h technical assistance. 82 The Government and t h e Rwandese p r o j e c t s t a f f have made some p o s i t i v e comments on t h e p r o g r e s s a c h i e v e d i n t h e i r r e l a t i o n w i t h t h e Bank. They have mentioned, however, t h a t s u p e r v i s i o n m i s s i o n s a r e g e n e r a l l y t o o s h o r t , t a k e too much t i m e t o r e p o r t t o Government, and do n o t r e p o r t back s u f f i c i e n t l y t o t h e p r o j e c t s t a f f t h e m s e l v e s . They a l s o mentioned t h a t s u p e r v i s i o n m i s s i o n s l i m i t t h e m s e l v e s t o o o f t e n t o c r i t i c i z i n g what t h e p r o j e c t u n i t d o e s b u t do n o t make enough c o n c r e t e s u g g e s t i o n s f o r improvement. F i n a l l y , t h e y mentioned t h a t t h e f r e q u e n t changes i n t h e s t a f f i n g of t h e m i s s i o n s hampers c o n t i n u i t y i n t h e d i a l o g u e . T h i s p r o j e c t a l s o i l l u s t r a t e d t h e d i f f i c u l t i e s f o r t h e Bank t o e s t a b l i s h a n e f f e c t i v e d i a l o g u e i n a d i f f i c u l t c o u n t r y which c a n r e s u l t from h a v i n g t h e s u p e r v i s i o n r e s p o n s i b i l i t y assumed by a f i e l d o f f i c e r a t h e r than by headquarters. In r e t r o s p e c t , i t appears t h a t s i n c e l i t t l e s e c t o r work had been done by t h e Bank p r i o r t o t h i s p r o j e c t , h e a d q u a r t e r s c o u l d have made a more p o s i t i v e c o n t r i b u t i o n t o a s s i s t t h e f i e l d o f f i c e s o l v e t h e p r o j e c t i s s u e s , and t o d i s c u s s w i t h t h e Government some of t h e b a s i c s e c t o r a l i s s u e s had t h e r e been more d i r e c t c o n t a c t s w i t h t h e Govern- ment a s c a n be e s t a b l i s h e d t h r o u g h s u p e r v i s i o n . VIII. CONCLUSION, WTURE ASPECTS AND OUTSTANDING ISSUES Conclusion 83. The i m p l e m e n t a t i o n of t h e f i r s t Mutara A g r i c u l t u r a l Development P r o j e c t , C r e d i t 439-RW t o o k p l a c e i n a v e r y d i f f i c u l t c o n t e x t , c e r t a i n l y more d i f f i c u l t and complex t h a n had been e n v i s a g e d a t a p p r a i s a l . Even though t h e p r o j e c t d i d n o t y i e l d t h e e x p e c t e d impact on a g r i c u l t u r a l p r o d u c t i o n , s u b s t a n t i a l achievements have been r e a l i z e d , and t h e p r o j e c t i n v e s t m e n t s , m o s t l y i n terms of i n f r a s t r u c t u r e development, e x p e r i e n c e a c q u i r e d by Rwandese s t a f f , and s o c i a l change, a r e i m p o r t a n t f o u n d a t i o n s f o r t h e f u r t h e r development o f t h e Mutara a r e a . In r e t r o s p e c t , however, one can q u e s t i o n t h e approach t a k e n by t h e Bank f o r p r o j e c t p r e p a r a t i o n and p r o j e c t d e s i g n . A s d e s c r i b e d i n Chapter 11, p r o j e c t p r e p a r a t i o n was v e r y d i f f i c u l t . L i t t l e s e c t o r a l knowledge was t h e n a v a i l a b l e t o t h e Bank, and a t t h e time t h e Government had no c l e a r l y d e f i n e d s e c t o r a l o b j e c t i v e s o r s t r a t e g y . I n t h i s c o n t e x t , i t can b e q u e s t i o n e d whether t h e FAO-CP program was t h e most e f f e c t i v e v e h i c l e f o r p r o j e c t p r e p a r a t i o n , o r whether a g r e a t e r and more d i r e c t involvement from h e a d q u a r t e r s d u r i n g p r e p a r a t i o n w i t h t h e o b j e c t i v e of b u i l d i n g - u p o u r s e c t o r a l d i a l o g u e would n o t have been more e f f e c t i v e . 84 S e v e r a l q u e s t i o n s c a n a l s o be r a i s e d r e g a r d i n g s e v e r a l a s p e c t s of p r o j e c t d e s i g n . I n p a r t i c u l a r t h e p r o j e c t was c l e a r l y a n e n c l a v e type of o p e r a t i o n , and was d e s i g n e d a s a one t i m e investment r a t h e r than a s p a r t of a long-term i n v e s t m e n t program. In r e t r o s p e c t , i t appears t h a t the r e g i o n a l - e n c l a v e type approach was p r o b a b l y t h e o n l y f e a s i b l e one a t t h e t i m e , w h i l e p h a s i n g p r o j e c t s a s p a r t of a n i n v e s t m e n t program o v e r a l o n g e r t i m e frame was n o t a s y e t e x p l i c i t l y p a r t o f t h e Bank's approach. Yet, i t a p p e a r s r e t r o s p e c t t h a t more emphasis s h o u l d have been p l a c e d on t r y i n g t o c a s t t h e p r o j e c t a s p a r t of a development s t r a t e g y f o r t h e Mutara r e g i o n r a t h e r t h a n p r o c e e d i n g w i t h t h e p a r t i a l development of t h e r e g i o n i n i s o l a t i o n of i t s o t h e r land resources. I t is r e c o g n i z e d , however, t h a t s u c h s t r a t e g i c t h i n k i n g w i t h t h e Government of Rwanda was, and s t i l l i s , e x t r e m e l y d i f f i c u l t , i n view of t h e f a c t t h a t q u e s t i o n s r e l a t e d t o l a n d use a r e t r e a t e d a t t h e h i g h e s t l e v e l s of Government w i t h o u t much c o o r d i n a t i o n w i t h t h e t e c h n i c a l ministries. It can a l s o b e q u e s t i o n e d whether t h e Group r a n c h and Paysannat approach l e d t o an o p t i m a l p r o j e c t d e s i g n . The a p p r a i s a l team made an e f f o r t t o b a s e i t s recommendations on what e x i s t e d e i t h e r i n Rwanda f o r t h e Paysannat, o r i n n e i g h b o r i n g c o u n t r i e s f o r Group r a n c h e s . The Paysannat approach was q u e s t i o n e d w i t h i n t h e Bank d u r i n g p r o j e c t p r o c e s s i n g , and s t i l l i s today. It is f a r from c e r t a i n t h a t t h i s approach y i e l d s h i g h e r economic b e n e f i t s t h a n a d i f f e r e n t approach t o e x t e n s i o n which would emphasize t h e development o f i n p u t s , e x t e n s i o n t e c h n i q u e s , and d i r e c t c o n t a c t s w i t h f a r m e r s , r a t h e r t h a n t h e o r g a n i z e d s e t t l e m e n t of f a r m e r s and t h e development of i n f r a s t r u c t u r e a s a p r e r e q u i s i t e f o r developing extension s e r v i c e s . In a c o u n t r y l i k e Rwanda where d i s t a n c e s a r e s m a l l , t h e p o p u l a t i o n d e n s i t y v e r y h i g h , and t h e p o p u l a t i o n e x t r e m e l y dynamic i n d e v e l o p i n g such i n f r a s t r u c t u r e a s f e e d e r r o a d s w i t h i t s own r e s o u r c e s , t h e Paysannat approach d o e s n o t a p p e a r t o b e c o s t e f f i c i e n t . The Group r a n c h approach was b e i n g developed i n Kenya i n t h e l a t e s i x t i e s . Although t h e Rwanda c o n t e x t was c o m p l e t e l y d i f f e r e n t , i t a p p e a r s t o d a y t h a t t h e a p p r a i s a l m i s s i o n was c e r t a i n l y j u s t i f i e d i n r e j e c t i n g t h e p r o p o s a l of a c o o p e r a t i v e r a n c h a s proposed i n t h e p r e p a r a t i o n r e p o r t . The p r o j e c t management team d i d implement t h i s component w i t h a g r e a t d e a l of p r a c t i c a l s e n s e , and f o r t h e time b e i n g t h e y seem t o work r e a s o n a b l y w e l l . It i s d o u b t f u l , however, t h a t such r a n c h e s w i l l be v i a b l e i n t h e l o n g t e r m b e c a u s e o f p o p u l a t i o n p r e s s u r e ( p a r a 88). 85. F i n a l l y , q u e s t i o n s can be r a i s e d r e g a r d i n g t h e a p p r a i s a l d e s i g n of i n s t i t u t i o n a l a r r a n g e m e n t s f o r P r o j e c t implementation. A s mentioned i n Chapter V I , O V A P A M h a s n o t been v e r y s u c c e s s f u l t o d a t e , from t h e m a n a g e r i a l , t e c h n i c a l and f i n a n c i a l p o i n t s of view. F i r s t l y , i t can be q u e s t i o n e d whether a system d e s i g n e d w i t h i n t h e e x t e n s i o n s e r v i c e s of t h e M i n i s t r y o f A g r i c u l t u r e and L i v e s t o c k would n o t have been more e f f i c i e n t . However, s i t u a t i o n s change r a p i d l y i n Rwanda, and i t i s v e r y d i f f i c u l t t o a s s e s s s u c h i s s u e s i n r e t r o s p e c t . Secondly, i t c a n b e q u e s t i o n e d whether t h e whole q u e s t i o n of t e c h n i c a l a s s i s t a n c e was t r e a t e d a d e q u a t e l y . T e c h n i c a l a s s i s t a n c e f o r p r o j e c t implementation was undoubtedly n e c e s s a r y . However, t h e Bank s h o u l d have been aware t h a t t h e new Rwandese Government was l i a b l e t o b e e x t r e m e l y s e n s i t i v e t o a p r o p o s a l of having a n e x p a t r i a t e a s s e n i o r manager of a p a r a s t a t a l company w h i l e one of t h e o b j e c t i v e s f o r e s t a b l i s h i n g such p a r a s t a t a l companies was t o i n c r e a s e t h e Rwandese c o n t r o l of l o c a l i n s t i t u t i o n s * I n a d d i t i o n , s i n c e t h e f i e l d work e s p e c i a l l y f o r t h e Group Ranches r e q u i r e d d i r e c t communications w i t h t h e p o p u l a t i o n , t h e r e f o r e i n t h e v e r r i a c u l a r , t h e n e c e s s i t y of h a v i n g Rwandese m a n a g e r i a l s t a f f from t h e p r o j e c t s t a r t s h o u l d have been r e c o g n i z e d . F i n a l l y , t h e a p p r a i s a l m i s s i o n was aware t h a t no Rwandese s t a f f were i m m e d i a t e l y a v a i l a b l e t o f i l l t h e c o u n t e r p a r t p o s i t i o n s ; n o t much t r a i n i n g impact s h o u l d have t h e r e f o r e been e x p e c t e d from t h e t e c h n i c a l assistants. 86 During i m p l e m e n t a t i o n , two major i s s u e s came up which w a r r a n t some d i s c u s s i o n . F i r s t , t h e i s s u e of f i n a n c i n g c o s t o v e r r u n s . I t can be q u e s t i o n e d whether i t would n o t have been p r e f e r a b l e f o r t h e r e v i e w m i s s i o n ( p a r a s 37-38) t o recommend a r e d u c t i o n i n d i s b u r s e m e n t p e r c e n t a g e s r a t h e r t h a n a r e d u c t i o n i n p r o j e c t s c o p e . Because of t h e Government's i n a b i l i t y t o f i n a n c e a h i g h e r p r o p o r t i o n of p r o j e c t c o s t s o u t o f i t s own r e s o u r c e s , t h e Bank f o c u s s e d on t h e r e d u c t i o n of p r o j e c t s c o p e , i n o r d e r t o r e s t r u c t u r e t h e p r o j e c t w i t h i n t h e a v a i l a b l e f i n a n c i n g . Although t h e change i n t h e p r o j e c t d e s c r i p t i o n d i d r e d u c e a c c o r d i n g l y some of t h e p r o j e c t o b j e c t i v e s , namely with r e s p e c t t o t h e p r o v i s i o n of water supply t o p r o j e c t b e n e f i c i a r i e s , i t a p p e a r s i n r e t r o s p e c t t o have e n t a i l e d some p o s i t i v e r e s u l t s . More s p e c i f i c - a l l y , t h e p r o j e c t management a p p e a r e d t o be more c a r e f u l a b o u t t h e u t i l i z a t i o n o f t h e r e m a i n i n g f i n a n c i n g , and managed t o d e v e l o p i n f r a s t r u c t u r e f o r a g r e a t e r a r e a t h a n o r i g i n a l l y e n v i s a g e d , and t o i n s t a l l a g r e a t e r number o f families. I n a d d i t i o n , i t proved w o r t h w h i l e t o have a second t e c h n i c a l l o o k a t t h e w a t e r s u p p l y component, which was i n t h e c o n t e x t o f t h e p r e p a r a t i o n and follow-up o f t h e second p r o j e c t , and look f o r more c o s t and r e s o u r c e e f f e c t i v e solutions. 87 The q u e s t i o n of c o s t r e c o v e r y was a l s o d e b a t e d d u r i n g p r o j e c t imple- m e n t a t i o n . The a p p r a i s a l had d e s i g n e d a system of f e e s which b e n e f i c i a r i e s were t o pay t o O VA P A M ( p a r a 30); t h e s e f e e s were t o b e OVAPAM's p r i n c i p a l s o u r c e of r e v e n u e s a f t e r t h e p r o j e c t i n v e s t m e n t p e r i o d . While t h i s s y s t e m f i t t e d p e r f e c t l y t h e Bank's c o s t r e c o v e r y p o l i c y f o r p u b l i c s e c t o r p r o j e c t s , i t proved t o b e i m p o s s i b l e t o implement. It was even a major o b s t a c l e t o t h e r e c r u i t m e n t of b e n e f i c i a r i e s i n t h e e a r l y y e a r s o f p r o j e c t i m p l e m e n t a t i o n , up t o t h e p o i n t t h a t t h e Bank a g r e e d w i t h t h e Government t o abandon i t a l t o g e t h e r . B e n e f i c i a r i e s ' r e s i s t a n c e t o paying t h e proposed f e e s was m o s t l y due t o t h e f a c t t h a t no s u c h s y s t e m had been i n t r o d u c e d i n s i m i l a r p u b l i c s e c t o r p r o j e c t s i n Rwanda. T h i s i s s u e a l s o l e d t h e Bank t o c o n c l u d e w i t h t h e Government t h a t O V A PA M a s p u b l i c agency p r o v i d i n g e x t e n s i o n s e r v i c e s c o u l d n o t b e s e l f - financing . F u t u r e P r o s p e c t s and O u t s t a n d i n g I s s u e s 88 A Mutara A g r i c u l t u r a l and L i v e s t o c k Development P r o j e c t , Phase 11, was a p p r a i s e d i n May 1978 and was p r e s e n t e d t o t h e E x e c u t i v e D i r e c t o r s i n J u n e 1979. The second p h a s e p r o j e c t i s viewed a s p a r t of a development program f o r t h e Mutara r e g i o n o v e r t h e n e x t 10 t o 15 y e a r s o r l o n g e r . The emphasis o f t h i s p r o j e c t i s on e x t e n s i o n r a t h e r t h a n on i n f r a s t r u c t u r e development s i n c e t h e n e c e s s a r y i n f r a s t r u c t u r e works a r e v i r t u a l l y complete; a n e x c e p t i o n , i s , t h e p r o v i s i o n o f w a t e r s u p p l y which was c a r r i e d o v e r from t h e f i r s t p r o j e c t . The p r o j e c t i s t o promote farm development t e c h n i q u e s which aim a t p r e s e r v i n g t h e p r o d u c t i o n p o t e n t i a l of t h e Mutara a r e a , and p o s s i b l y improve farm p r o d u c t i v i t y . The a c c e n t i s put on s o i l p r o t e c t i o n and c o n s e r v a t i o n measures a s p r e r e q u i s i t e s t o t h e i n t r o d u c t i o n of improved farm i n p u t s . I n a d d i t i o n , t h e p r o j e c t i s t o emphasize p a s t u r e and animal p r o d u c t i o n improvements i n t h e Group r a n c h e s . There i s no doubt however, t h a t t h e proposed e x t e n s i o n themes c a n o n l y b r i n g temporary s o l u t i o n s t o t h e development problems o f t h e Mutara a r e a . With t h e i n c r e a s i n g p o p u l a t i o n p r e s s u r e on l a n d , new methods and t e c h n i q u e s t o i n t e n s i f y t h e p r o d u c t i o n system w i l l need t o b e d e v i s e d . I f a l i v e s t o c k a c t i v i t y i s t o m a i n t a i n e d i n t h e Mutara, l i v e s t o c k owners w i l l need t o i n t e n s i f y t h e i r animal p r o d u c t i o n methods, a s e x t e n s i v e l i v e s t o c k r a i s i n g seems doomed t o d i s a p p e a r . T h i s i s s u e i s e x t r e m e l y complex and w i l l need t o be c l o s e l y f o l l o w e d d u r i n g p r o j e c t implementation a s i t i n v o l v e s t h e d e s i g n of t e c h n i c a l packages which c a n be adopted by p r o j e c t p a r t i c i p a n t s a t a g i v e n time. 89 OVAPA M h a s been m a i n t a i n e d a s t h e p r o j e c t i m p l e m e n t a t i o n agency. T h i s was a complex i s s u e d i s c u s s e d a t l e n g t h d u r i n g t h e a p p r a i s a l and p o s t - a p p r a i s a l m i s s i o n s , and w i t h i n t h e Government and t h e Bank. During a p p r a i s a l , t h e Government informed I D A t h a t t h e y wanted t o e l i m i n a t e O V APAM and t o p l a c e t h e p r o j e c t under t h e r e s p o n s i b i l i t y o f a P r o j e c t U n i t w i t h i n t h e M i n i s t r y of A g r i c u l t u r e and L i v e s t o c k . I n s p i t e of t h i s , during t h e post-appraisal m i s s i o n , t h e y informed I D A of t h e Government's d e c i s i o n t o m a i n t a i n OVAPAM. T h i s was a t y p i c a l c a s e when much f l e x i b i l i t y and u n d e r s t a n d i n g were r e q u i r e d from IDA, u n t i l t h e Government had made up t h e i r mind on arrangements f o r p r o j e c t i m p l e m e n t a t i o n . S p e c i a l e f f o r t s were made t o o b t a i n from t h e Government c l e a r terms of r e f e r e n c e f o r t h e v a r i o u s m a n a g e r i a l p o s i t i o n s , whether occupied by e x p a t r i a t e s o r by Rwandese t e c h n i c i a n s . It is too e a r l y i n p r o j e c t implementation t o s e e whether some improvements have been a c h i e v e d a s compared t o t h e f i r s t p r o j e c t . A major d i f f e r e n c e w i t h t h e f i r s t p r o j e c t i s t h a t q u i t e competent Rwandese t e c h n i c i a n s a r e a v a i l a b l e from t h e s t a r t of t h e project. O VAPA M is n o t e x p e c t e d t o b e a p r o f i t a b l e o p e r a t i o n under t h e second p r o j e c t , a s i t i s p r o v i d i n g e x t e n s i o n s e r v i c e s which a r e n o r m a l l y funded o u t of g e n e r a l t a x e s and f o r which i t i s n o t r e a l i s t i c t o e x p e c t P r o j e c t b e n e f i c i a r i e s t o pay. O VAPA M w i l l n o t be expected t h e r e f o r e , t o be o p e r a t i n g a s a p a r a s t a t a l company. T h i s i s s u e should a l s o be c l o s e l y monitored d u r i n g p r o j e c t implementation i n r e l a t i o n t o o t h e r i s s u e s such a s c o s t r e c o v e r y f o r s e r v i c e s such a s v e t e r i n a r y t r e a t m e n t s . 90 Long-term s o l u t i o n s f o r t h e development of t h e Mutara a r e a have n o t y e t been found, n o r have t h e y been found f o r Rwanda a s a whole. However, t h e Bank's d i a l o g u e w i t h t h e Government of Rwanda i n t h e a g r i c u l t u r a l s e c t o r h a s improved s u b s t a n t i a l l y . The i s s u e s r a i s e d a r e e x t r e m e l y complex, and some of them such a s p o p u l a t i o n growth, l a n d a l l o c a t i o n , e x t e n s i o n s e r v i c e s and c o s t r e c o v e r y r e a c h f a r beyond t h e a g r i c u l t u r a l s e c t o r per s e e S u s t a i n e d e f f o r t s and i m a g i n a t i v e s o l u t i o n s w i l l be r e q u i r e d t o s o l v e such i s s u e s . There a r e n e v e r t h e l e s s v i s i b l e s i g n s o f improvement i n p r o j e c t implementation and i n t h e Government's commitment t o working w i t h t h e Bank i n t h e a g r i c u l t u r a l s e c t o r . I t c a n be concluded t h e r e f o r e t h a t t h e implementation of t h e f i r s t Mutara P r o j e c t , a l t h o u g h hampered by major d i f f i c u l t i e s , was a p o s i t i v e i n s t r u m e n t f o r t h e Bank and t h e Government i n d e v e l o p i n g a s e c t o r a l d i a l o g u e and work r e l a t i o n s h i p .  019 962 rn 11C.6 926'2 2S1'9 129'1 m *9 591 CO Z 911'1 19s 9% 1 It mama3 I u 1 a w ~ . l 0 rmqao 11.39 1 . - . n d W 1U...Ill*S w1aa.a r o j warall IS.^ .loo1 P h-ll(u* '..I*lq.A r r n a r u w pum I u v m ~ .maanaamsrju~ WL' I 2bO'Z OSZ' 1 bb1'9 581'1 CPs 001.2 MS KO* 99(  Table /Tableau 2 RWANDA MUTARA AGRICULTURAL DEVELOPMENT PROJECT ( C r e d i t 4 39-RW) Completion Report Diebureement Estimates (US$ M i l l i o n ) Cumulative Cumulative Cumulative Quarter Appraisal Review Mission Actual and X Estimates Estimates Present (2) (3) (1 (2) Estimates (3) June 30, 1974 September 30, 1974 December 31, 1974 March 31, 1975 June 30, 1975 September 30, 1975 December 31, 1975 March 31, 1976 June 30, 1976 September 30, 1976 December 31, 1976 March 31, 1977 June 30, 1977 September 30, 1977 December 31, 1977 March 31, 1978 June 30, 1978 September 30, 1978 December 31, 1978 March 31, 1979 June 30, 1979 September 30, 1979 December 4, 1979 * Actual  RWANDA MUTARA AGRICULTURAL DEVELOPMENT PROJECT - PHASE I - CREDIT 439-RW P r o j e c t Completion Report OVAPAM - Cash Flow (FRW'OOO) Expenditures Investments Operating c o s t s Total 5,750 37,173 44,274 39,735 87,429 Short-term l o a n - 73 70 70 65 Advances/debtors 2 36 1,168 2,003 3,535 10,343 Total 5,986 38,414 46,347 43,340 97,837 C r e d i t o r s a t b e g i n n i n g of y e a r - 4,628 4,042 3,973 3,918 Total 5,986 43,042 50,389 47,313 101,755 Balance : Cash Bank account Income : Government c o n t r i b u t i o n 9,284 - - 5,000 5,000 IDA reimbursement - 30,952 44,745 39,181 81,077 S a l e s : Marketing - - 127 - - Settlemnt fee - - - - - Grazing f e e - - - - - Veterinary treatments - - 74 - - Sundries - - 316 - - Total 9,284 38,878 45,376 44,382 89,137 Deb t o r s beginning of y e a r - 2 36 1,241 2,073 3,605 Financed from: Bank o v e r d r a f t - 4,042 331 1,649 1,991 Sundry c r e d i t o r s 4,628 - 3,642 2,269 12,666 Total 4,628 4,042 3,973 3,918 14,657 Balance 7,926 114 201 3,060 5,644  m I =a aaa ?tt?i t 5 ? a tr a 7 a 2 8 I?S ; =a 2 2 3 aa ; a m f it ?I * - f 5 t ?< ? ?< t : - a - 1 S S S -231 = 8 * : >a a3a , :;; :% : . 5 ? y- - <? ? t a ~ $ 4 = # a s aaa2a , 3f22" a , a t s a s '' 5 % -? 1st -7 ? = a s ; ? =a-a Idt?" a t a 7 s " a s: x 2;;; - I m . . - a- a aaaaa :-.*?r a * 1.: 1 di t ? I ==a-f i $ 2% 2 =a a f aa =a a ? t . t.f= *I * t % ?. : i?: ? ?$ ' ! t . - - a .. - S 8 t 33 a2a ' ?21?t ---a- a $ . : ? -. 8 71 f 3 3% t? f Z8XE t 23aaa . t ? t I??<' 9% ? i t a ' ztm-:: s : I : 2aL qa I ??dl?.:?-. -. a- I-- n a z s ?.? t g! g t.: ;a , f ;; aazz I - aaaa -- -!qy*i --ray t d 3 : 1? #$g t ?? r < z z s i f*gf ii s - =- : -??%tt . t : : ' , z l...I s €5 -a?': -a=> . . a I?*** , -.- .-" La, i i s 5 3 . 53 i i i - ?? y t a . L - -ax= :t . -?<ti.: a ?? -J 2% t t * - 10-.~.s-a t E ~ ')a>= I - ? -. ? .- T I tt a r r - t Z f i t ?? t 1 = X ~ Z aaaa ?t?$t f Z 2 r:--8 s a r a? - 35 2 : Z? . .s s 1 -  - 49 - ANNEX 1 RWANDA MLI T ARA AGRICULTURAL DEVELOPMENT PROJECT - CREDIT 439-RW Completion R e p o r t Compliance w i t h Covenants 1. Not complied w i t h S e c t i o n 3.10 Provides f o r c o l l e c t i o n of grazing Grazing and farming f e e s were a b o l i s h e d and farming f e e s , and f o r payment by Government i n August 1975. V e t e r i n a r y by c a t t l e h e r d e r s o f v e t e r i n a r y f e e s are a c t u a l l y c o l l e c t e d , b u t n o t fees, including for dipping f o r t h e u s e of d i p p i n g t a n k s , a l t h o u g h materials. i n t h e o r y t h e y a r e due. 2. T o t a l l y o r s u b s t a n t i a l l y complied w i t h S e c t i o n 3.01 Government t o provide OVAPAM w i t h S u b s t a n t i a l l y complied w i t h b u t US$50,000 t h e n e c e s s a r y f u n d s and f a c i l i t i e s . c o u n t e r p a r t funds remain t o be p a i d . S e c t i o n 3.02 (b) OVAPAM t o be managed by a board of Complied w i t h . By s t o p p i n g c o n s t r u c t i o n directors. o f a sawmill, t h e Board h a s shown t h a t i t a c t u a l l y e x e r t s some e f f e c t i v e c o n t r o l . S e c t i o n 3.03 Proceeds of IDA c r e d i t , up t o Complied w i t h b u t O VAPAM n e v e r had a n y US$2.7 m i l l i o n , t o b e r e l e n t t o s i z e a b l e revenues and c a n n o t r e p a y t h e OVAPAM through a s u b s i d i a r y l o a n loan. agreement. S e c t i o n 3.04 Provide O V APAM with a Project S u b s t a n t i a l l y complied w i t h , b u t ( i ) t h e D i r e c t o r , t o s e r v e a s OVAPAM' s e x p a t r i a t e P r o j e c t D i r e c t o r was never s e n i o r e x e c u t i v e , and a t e c h n i c a l t h e s e n i o r e x e c u t i v e of OVAPAM, which h a s a s s i s t a n c e team a c c e p t a b l e t o IDA, been a s o u r c e o f c o n f l i c t , ( i i ) no tech- and q u a l i f i e d c o u n t e r p a r t s t o t h e n i c a l a s s i s t a n c e wasprovided between t h e expatriates . d e p a r t u r e ,end August 1979, o f t h e P r o j e c t D i r e c t o r and t h e a r r i v a l , p r o b a b l y mid 1980 o f t h e t e c h n i c a l a s s i s t a n c e team f o r Phase 11; and ( i i i ) some b u t n o t a l l c o u n t e r p a r t s are qualified . S e c t i o n 3.07 Establishing a Beneficiaries' Complied w i t h . Commit t e e .  KAGERA NATIONAL PARK HUNTING RESERVE