Mexico - Integrated Rural Development Project

DPocut of The World Bank FOR OMCAuL USE ONLY Repat No. 5760 PROJECT PERFORMANCE AUDIT REPORT MEXICO: INTEGRATED RURAL DEVELOPMENT PROJECT PAPALOAPAN BASIN (LOAN 1053-ME) June 28, 1985 Operations Evaluation Department Tis doouaemt ba a ruesdctd durlbtdes and mmy be ad by ncpIents aly la the pezfonuace Of thir oWn dales It actate my t ehderwie be discod witht World Dak xuhoczten  ABBREVIATIONS CISSA - Building and Engineering Commission of the Secretariate of Health/Comision Constructora e Ingenieria de la Secretaria de Salubridad y Asistencia CAPFCE - Administrative Committee of the Federal School Construction Program/Comite Administrador del Programa Federal de Construccion de Escuelas CFE - Federal Electricity Commission/Comision Federal de Electricidad CONASUPO - National Company for Popular Subsistence FAO/CP - FAO/World Bank Cooperative Program IDB - Inter-American Development Bank INIA - National Institute of Agricultural Research/Instituto .Nacional de Investigaciones Agricolas NAFINSA - Nacional Financiera, S.A. PIDER - Investment Program for Rural Development/Programa de Inversion para el Desarrollo Rural PLAMEPA - Land Improvement Plan/Plan de Mejoramiento Parcelario PLANPA - Papaloapan Plan/Plan Papaloapan SARH - Ministry of Agriculture and Hydraulic Resources/Secretaria de Agricultura y Recursos Hidraulicos SHCP - Ministry of Finance/Secretaria de Hacienda y Credito Publico CURRENCY EQUIVALENTS US$1.00 = Mex$150.00 Mex$1.00 = USs0.015 WEIGHTS AND MEASURES 1 hectare (ha) = 10,000 m2 = 2.47 acres 1 kilometer (km) 0.62 miles 1 square kilometer (km2) 0.39 sq. miles = 100 ha 1 kilogram (kg) 2.20 pounds I liter (1) 0.26 gallons 1,000 kg = I metric ton (MT) 0.98 long ton FISCAL YEAR January 1 - December 31  FOI OMFCUL u ONLY PROECT PERFORMANCE AUDIT REPORT MEXICO: INTEGRD RURAL DEVELOPHENT PROJECT YAPALOAPAN BASIN (Loan 1053-MK) TABLE OF CONTENTS Page No. Preface ..............................................e.eeee@eee. i Basic Data Sheet ...........L...oeg**................e..e............ ii Highlights ............ ............ iLI PROJECT PERFORMANCE AUDIT MEMRANDUM Io SUIQARY I........ .........................c........* 1 Background .........................................seseges......e . 1 The Project .............. eesge.g.geeegeeeggsgeee....... 1 Project Implementation ....... e.... g.............. 2 Project Impact .,ee.ee..eg.e.e.............. .............. 4 II. MAIN FINDINGS *...............eegeeggegggeegegee. 5 Project Design ..g.eesees..egeesg.e.ggesee*ee@e eee......... 6 Project Organization and Interagency Coordination .... ..... 8 Rate of Return Calculation ....eesge ......... see............ 10 Comments from the Borrower ..c .......... ...........ge....... 13 PROJECT COMPLETION REPORT I. Introduction ......g.e.. gg..... e.eeeeseee..e 21 II. Project Formelation ............................... 21 III. Implementation .... .... ...... .................. 23 IV. Economic and Agricultural Impact . 30 V. Institutional Performace .... eec s e......... ..e 31 VI. Bank Performance ...........egeee....ecseseesececec 31 VII. Conclusions and Recommdations ......egeeee.e....e....g 32 Annexes Maps: IBRD Nos. 11078 11001 their ofticil datie t1s co1ut my no: otow be _ckmd witout WWld U _a  PROJECT PERFORMANCE AUDIT REPORT MEXICO: INTEGRATED RURAL DEVELOPMENT PROJECT PAPALOAPAN BASIN (LOAN 1053-ME) PREFACE This is a performance audit of the Integrated Rural Development Project Papaloapan Basin in Mexico, for which Loan 1053-ME, in the amount of US$50.0 million, was approved in October 1974 and closed on December 1982, after cancellation of US$24.0 million. The audit report consists of a project performance audit memorandum (PPAM) prepared by the Operations Evaluation Department (OED) and a Project Completion Report (PCR) dated April 23, 1984. The PCR was prepared by the Latin America and the Caribbean Regional Office following a country visit in July 1983 and based upon a completion report prepared by the Pa-,loapan Comr mission, the project executing agency. The PPAM is based on a review of the Appraisal Report (No. 527-ME) dated September 23, 1974, the President's Report dated October 16, 1974, the Loan Agreement dated November 15, 1974, and the PCR; correspondence with the Borrower and internal Bank memoranda on project issues as contained in relevant Bank files have been consulted, and Bank staff associated with the project have been interviewed. An OED mission visited Mexico in January 1985. Discussions were held with officials of the Secretariat of Agriculture and Water Resources (SARH), the Secretariat of Finances, NAFINSA, the government-authorized channel for foreign loans, and the Papaloapan Commission. A field trip to visit the project area and the participating farmers was undertaken and the information obtained during the mission was used to test the validity of the conclusions of the PCR. The audit finds that the PCR covers adequately the project's salient features, and the PPAM generally agrees with the conclusions. In addition to summarizing the project's objectives and results, the PPAM expands upon some of the project's most important issues: the complexity of the design, insufficient preparation and the institutional problems because of their importance to this as well as to other integrated rural development projects. The draft report was sent to the Borrower on April 15, 1985 for their comment. Those received from the Ministry of Finance prepared with other cooperating agencies concerned, are attached as Annex I of the PPAM. The valuable assistance provided by the Government of Mexico and the project staff met during the preparation of this report is gratefully acknowledged.  nmmfpaouuc f Nal uic DA1A NviW 1113RAM MR wig. ,h wnuwr wjr rAggLOAPa uaszu (tam*3 1053-I1) laic DATA-Mm KU narUCY DATA Appraia Actual or Actual of I of Clct_mto rosiaesi Actu".l Ausralel _cl.ts Project Costs CMSS mlI..) 1- 128.5 69.96 51 L.ose Aomat 50.0 26.0 /b 52 DOte Nord Approval 10i2 ,7' ont t ffectivemwe 01/27175 oncr Physteil Congnats Comleced 12/31179 06/2093- roprtis thbe coepleted C) - 70 Closing Date 06/30160 o230132 Uconowic late of ltbe (ZC) 65 20 Fin del Rate of NAture CZ) 26-100 mmber of Drect kueficLarias IC 974e700 564.350 Ss Smber of Credit 8oeetLclarie nU.. 25.00 na.&. CUMLATIVE DISUUESIIET FY75 Ff76 P77 W7 79 13 FMl Fz FM Apraisal o" tlat. (USS .ll11.n) 0 5.76 14.26 24.93 37.06 50.0 - icvised EItsice (USS milLion) Id 0 0 3.10 4.50 6.50 1Z.90 17.00 23J0 29.00 Act-al (CS millon) 0 0 3.10 4.50 6.52 12.77 15.39 23.85 28.00 Actual an of revl_ad *otim_e 0 0 100 100 100 9 Los 1DO 90 ODte otf nal DiJbnrseeet: October 4. 1963 Priencpal repald to Septenbr 15, 1983 - DSS3.1 Jilloe MISSIOII DATA Kontbh go. of Steffdays Speciel.itSoms Ferfosmce Type of 1lalion Tear Fereons to Fild epresented /a Rating If Trend Problem tb Identificatlon 04/72 3 84 b.e.i Preperacion 06173 2 68 e.g. Appraisal 11/73 5 165 a.c.d.e.8 Supervision 1 02/75 2 2D *.h 1 2 - Supervlsion 11 07/75 3 39 d.*.g 2 2 I.T Supervision III 02/76 3 36 a.0.f 2 2 F.T Supervlison IV 09176 2 20 d.f Z 2 F.M Supervsion V /i 02/77 1 8 f n.S. n.e. n_. Supervialon I 03/77 2 26 *f 2 2 F.1 Supervision VI1 Li 09/77 2 a d.r 2 1 11 Superwision VIII 07/75 3 33 d.e.f 2 3 F.P." Supervtiion IX tk 06/79 2 6 b.f n.&. n.S. *a.m Supervision X 7k 09179 1 3 f n.S. nU.. n.&. Supervision Xl 12/79 Z 20 f.g 2 1 N, Superviion XII 06/80 3 27 d.f., 2 1 M SupervIsion XIII /1 07/60 1 9 a . . n.S. *.e. Supervision XIV 02/81 I 17 g 2 I N.P Supervision XV 1I/61 1 6 g 3 2 1.P.0 Supervician XVI 07/82 1 11 g 3 2 F.* P CoeplecLou 07/83 1 10 TOTAL (SPY1) 622 OTHER P10ECT DATA Borrower NAIINSA (!Icional Finencira. S.A.) Eaecuting Agency Papalospan CoiniAaon/Go.islan del ftp.l.apen Sam of Currency (abbreviatio) Mexican Peso 00S Currency Exchange Reese Appraisal Year Average USS1.00 - !$xS12.5 Interv r ng Years Averag 9S51.00 - MsgS19.5 Coeplecion Yer Average tl#Sl.O - NzS53.0 FollOW-on Projec lone a The final project coat wa. chaged on the basis of a Presndantial _ _nrandu, subi tted to ctb Ward for aprowal on a no objectlon bas. /a USS24.0 million were cancelled ac Borower's requet. tc Aggregate ninbers *ae sthwn in Table 3.1. 7d After cancellation of USS21.0 IOillon (Supervision Report dated August 10. 1982). 1f a - gronneist; b - agricultura econolist; c - credit specilist; d - agriculturit; a - .conadst: t - civil engnseor: g - Irrigtion engineer; b - financial analyst; I - loan officer. If I - problem free or stnor problem; 2 sodera-e problem; and 3 - major problem. 1i I - Siwrowing; 2 - satioeary: and - decerioratins. /h F - Fliancial; M - Manaderial: T *- snticel. P - PlltSical: and 0 * Other. 71