Mexico - Fifth and Sixth Agricultural and Livestock Credit Projects

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 4240 PROJECT COMPLETION REPORT MEXICO FIFTH AND SIXTH AGRICULTURAL CREDIT PROJECTS (Loans 1217-ME and 1569-ME) December 28, 1982 Projects Department Latin America and Caribbean Regional Office 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.   FOR OFFICIAL USE ONLY MEXICO PROJECTS' COMPLETION REPORT FIFTH AND SIXTH AGRICULTURAL CREDIT PROJECTS Loans 1217-ME and 1569-ME Table of Contents Page No. PREFACE ..... i BASIC DATA SHEETS ........... ..................................... ii-iii HIGHLIGHTS ........................................................ iv-v I. BACKGROUND .................................................. 1 II. FORMULATION ................................................. 2 Preparation and Design ...................................... 2 Objectives and Description .................................. 3 Cost and Financing .......................................... 3 Sublending Terms ............................................ 3 III. IMPLEMENTATION .............................................. 4 Reallocation of Funds ....................................... 4 Project Costs and Financing ................................. 4 Disbursements ............................................... 5 Sublending Terms and Conditions ............................. 5 Number, Average Size, and Beneficiaries of Subloans ......... 6 Regional Distribution of Rediscounts ........................ 7 Crop and Livestock Program .................................. 7 Agroindustries Program ...................................... 7 Technical Services ................. ........................ 8 Monitoring and Evaluation ................................... 8 Consultants' Services ....................................... 9 Compliance with Loan Conditions ............................. 9 Accounts and Audit .......................................... 10 Reporting Requirements ...................................... 10 IV. PROJECT IMPACT .............................................. 10 Technical Services .......................................... 10 Yields Production and Project Output ........................ 11 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.  Page No. Financial and Economic Returns .............................. 13 Future Strategies ........................................... 14 V. INSTITUTIONAL PERFORMANCE ................................... 14 Financial Position of FEFA .................................. 14 Program of Rediscounts ...................................... 15 Fund Substitution ........................................... 15 Source of Funds ............................................. 15 Technical Services .......................................... 16 Public Banks ................................................ 16 Organization and Management ................................. 17 Monitoring and Evaluation ................................... 17 VI. BANK PERFORMANCE ............................................ 17 VII. CONCLUSIONS ................................................. 18 Tables 1-19 ANNEX I ANNEX II MAP No. IBRD 11789R.  PROJECTS COMPLETION REPORT MEXICO - AGRICULTURAL CREDIT PROJECTS LOANS 1217-ME AND 1569-ME (FIRA V AND VI) PREFACE This is the Project Completion Report (PCR) of the Fifth and Sixth Agricultural Credit Projects executed by the FIRA trust funds in Mexico. The Fifth Credit was completely disbursed in May 1979, as envisaged during appraisal while the Sixth Credit was fully disbursed in June 1981, nine months ahead of schedule. The PCR was prepared by the Latin America and Caribbean Region - Agriculture Division 4; a country visit by project staff taking place in May, 1982. The PCR is based on the Borrower's background information, the Staff Appraisal Reports (961-ME and 1968-ME), the President's Reports dated February 18, 1976, and May 3, 1978, respectively, the Loan, Project and Guarantee Agreements dated March 11, 1976, and September 27, 1978. Supervision reports, correspondence with the Borrower and internal Bank memoranda on project issues as contained in relevant Bank files have also been reviewed. A copy of the draft report was sent on October 20, 1982, to FIRA, NAFINSA and SHCP. Comments have been received from both FIRA and NAFINSA and are attached as Annexes I and II. While in general we agree with the comments of FIRA and NAFINSA, we have the following observations on NAFINSA's letter: (a) Contributions by Beneficiaries, Page 4 - The requirement for sub-borrowers to contribute some capital of their own to investments financed by FIRA was in most instances fulfilled. The reference in para 3.30 of the Completion Report refers only to the fact that there were some instances of non- compliance; (b) Participation by NAFINSA, Page 4 - NAFINSA was always sent copies of letters written after each supervision, summarizing all the issues and major points. Announcements to FIRA of each supervision mission was also routinely copied to NAFINSA. In a letter dated February 22, 1982, the Bank advised NAFINSA of the completion mission for FIRA V and VI, requesting their active participation in the completion exercise. However, NAFINSA did not participate in the post-evaluation exercise or in the final wrap-up meeting in the field.   PROJECT COMPLETION REPORT Page No. ii FIFTH AGRICULTURE LIVESTOCK CREDIT PROJECT BASIC DATA SHEET - LOAN 1217-ME KEY PROJECT DATA Appraisal Actual or Actual as X of Estimate Estimated Actual Appraisal Estimate Project Costs (US$million) 413.3 477.6 115.6 Credit Amouct (US$million) 125.0 125.0 100.0 Date Board Approval 03/76 03/11/76 - Date Effectiveness 08/30/76 08/30/76 Date Physical Components Completed n.a. n.a. n.a. Proportion then Completed n.a. n.a. n.a. Closing Date 01/01/80 01/01/80 Economic Rate of Return 20-42% 34% Financial Rate of Return 14.3-29.8% 11-69X Number of Direct Beneficiaries 46,000 families 145,000 1/ - Number of Credit Beneficiaries 7,371 17,835 242X CUMULATIVE DISBURSEHENTS FY76 FY77 FY78 FY79 FY80 Appraisal Estimate (USS