Tanzania - Fisheries Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 5136 PROJECT COMPLETION REPORT TA-ZANIA FISEERIES DEVELOPMENT PROJECT (CREDIT 652-TA) June 18, 1984 Eastern Africa Regional Office This document h2s a restricted distribution and may be used by recipients only in the performance of their offidal duties. Its contents may not otherwise be disclosed without World Bank authorization.  ABBREVIATIONS CPS Central Projects Staff (now OPS) DANIDA Danish International Development Agency DCA Development Credit Agreement DDC = District Development Corporation ICB International Competitive Bidding KILIMO Ministry of Agriculture MNR = Ministry of Natural Resources NCCO National Cold Chain Organisation NORAD Norwegian Agency for International Development OED = Operations Evaluation Department ODA = Overseas Development Authority PCR Project Completion Report PCU = Project Coordination Unit RIDEP Rural Integrated Development Project RME& = Regional Mission in Eastern Africa SAR = Staff Appraisal Report TAFICO = Tanzania Fisheries Corporation TRDB = Tanzania Rural Development Bank  FOR OFFICUIL USE ONLY TANZANIA FISHERIES DEVELOPMENT PROJECT (Credit 652-TA) PROJECT CC0IPLETION REPORT TABLE OF CONTENTS Page No. Preface .................... i Basic Data Sheet ................ .......... ii Highlights .............. 06*000...** ... .... iii 1. Background .................,,........................... 1 II. Project Formlain u................... 4 III. The Project.....0 .....**.. 8 IV. Iplmepato e........................ 10 V. Project Impac.......... 19 VI. Institutional Perfornancee................. ...... 20 VII. IDA Performzance ...... 9... o....-.... . ...... 22 VIII. Conclusions ....... 0*.. .......... **..** .......*... 23 MAP 11795 - Tanzania Fisheries Development I This document has a restricted distnbution 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 - TANZANIA FISHERIES DEVELOPMENT PROJECT (Credit 652-TA) PROJECT COMPLETION REPORT PREFACE This is the project completion report (PCR) for the Fisheries Development Project, for which Credit 952-TA was approved in July 1976 for the sum of US$9 million. IDA indicated its willingness in September 1981 to extend the closing date of December 31, 1981 to June 30, 1984, subject to several satisfactory steps in project implementation; but these were not achieved and the credit account was closed on September 13, 1983; USS4.82 million was cancelled at that time. This PCR was prepared by the Eastern Africa Projects Department, Southern Agriculture Division, in July 1983. The PCR was prepared on the basis of information available in the EAP Department. The sources of information for the PCR were: Appraisal Report No. 963a-TA dated March 8, 1976; President's Report July 12, 1976; supervision reports, correspondence with the Borrower and internal Bank memoranda as contained in relevant Bank files. The PCR was received by OED on October 18, 1983. The Project was not selected for audit by OED and the PCR was sent to the Borrower for comment on April 13, 1984; however, no comments were received.  - 11 - MVEIL - lP lMm 1zAMm mm.a rfedlt 652.O) IWIC DM Suzr Acbal ar Abaa _ 2 Appndid Estimated ao Appmis Pm 47: e^ Pn.eca COt (Us {M1) IL4 5.B 47 cm_t lMt( gIESll) 9.0 4.2 47 Date &wd Apprtul 07/01/76 * Dote B odsw (0711276 1Dot Efciine 10112176 lkte Rjmo3 G _poc G-pltd Mb/30/8 I31/8 - sar prtly 1iralI ftzportia lhin Coileted (2) 100"/;lINb/;lOw/ 39:Obl;ZIP/ * T iDae i 9//83 Em c Rote aE Renm CZ) 27 p ly Mctw rdl Fi s w Rave of heir. (2) 2E/.Ze1.Z3c/ r1A Uy mgp1w nid huziztiul Perfofen Amte poW Tedudal Perfaone A pOW CMUME DISOLFS09M ~~~~~~~FY77 FMX, FM7 F 18 FMt F111 FMn App-d Eate (I5E a.1Um) 1.2 4.2 -9 = AcauL (US$-"i tm) 04 0.2 0.6 1.5 2.7 3.3 4.2 _ala Z of Esdumre 8 5 9 19 30 - - rhz ot Pinal D Jswmi 5126m MilSS1 l WA H - day. arfI m mm l1p of ua lm .aH cf ID in field d d T Tree frebIjZ iitet1fka ff1c~p..-im f bf 4 40 N/A Ap*_1md M175 4 128 FA (2) F 72) SIttot a 168 SI _V1s UI 1/76 2 35 FA r 2 - - SqevlBInM2 06/ 2 18 FA r 2 2 n Sqmersimu3 10/7l I 1. 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T/ I - rzrodz; 2- Z=.Uer3. ad 3 - Der1matm. 1 f - r pI.I; n - Ibmhexa; T - Teutl P - PoliFimam ad 0- Odm. W/ Doe- c tcd.e project prpim d-w lf de Co -. tSinir aIr ewfid  - il - TANZANIA FISHERIES DEVELOPMENT PROJECT (Credit 652-TA) PROJECT COMPLETION REPORT HIGHLIGHTS 1. The Fisheries Development Project, approved by the Baord in 1976, was designed to support the establishment and development of commercial fisheries at selected centres, improve fishing techniques and marketing data and provide the basis for fisheries development in the traditional sector by supporting a Dilot fisheries program for Ujamaa villages on Lake Tanganyika. 2. Except for partial initiation of commercial fisheries and the Ujamaa pilot program and collection of some marketing data, none of the project objectives have been achieved to date. Major problems (including some which should have been resolved during appraisal and negotiations) were encountered in implementing the project. Implementation of lake Fisheries component was frustrated by numerous complications, e.g., difficulties encountered in the establishment and management of a joint venture company (paras 4.03 and 4.06), and the type and design of boats to be provided under the project (paras 4.04 and 4.05). This component was dropped in the fifth project year (para 4.06). Only two of three coastal centres were established with some onshore facilities financed under the project (para 4.08). Establishment of a third commercial centre (at Mtwara) was not proceeded with because of uncertainty about fish resource potential. Delivery of 10 boats (30 were originally planned) ordered for the coastal centres started close to the original Project Closing Date (December 1981); however, no significant fishing operations had commenced as of the last supervision mission in October 1982 (para 4.11). Investment programs for the 5 approved Ujamaa villages (20 villages were included in the project) had not been completeA as of October 1982 (paras 4.13 and 4.14). The Lake Transport program was not implemented because of adequacy of alternate facilities provided by the Government (para 4.15). The Marketing Study was completed after the original Project Closing Date of December 1981 (para 4.16) while the Pollution Study did not get off the ground (para 4.17). Many changes to perceived technical assistance needs were made during implementation to fit project requirements (para 4.18, 4.19 and 4.20). 3. Pending final accounting, total project costs are estimated at about US$5.8 million compared to the SAR's estimate of US$12.4 million. No financial results are available to make meaningful comparison with the projections made at project appraisal or a re-evaluation of the rates of return, though the latter have most probably been negative. Accounting and project reporting were poor during most of the implementation period.  -iv - 4. The only apparent project success was the training provided by technical assistance personnel to the staff of coastal centres and fishermen in the villages. The principal weaknessess were the lack of attention given to progress in physical implementation of the project, poor accounting and project implementation reporting, and weak cooperation from the Tanzania Fisheries Corporation (TAFICO), one of the key institutions involved in the project implementation. IDA performance in retrospect has been weak (PCR Chapter VII). Four main lessons were learned: (a) country capability (institutional, manpower, financial and physical resources) is key to successful project implementation and in designing projects particular attention should be given to resource availability; (b) the basic institutional framework required for project implementation should be present and not left to be developed during implementation (e.g. creation of commercial fishing centres); Cc) common understandings on important issues should be established prior to or during negotiations and appropriately reflected (e.g., type and design of boats, establishment of a new commercial centre at Kigoma, location of marine fishing centres); (d) pertinent data having significant impact on project scope and design should be developed prior to project implementation (e.g., fish resource potential at Mtwara and market study).  TANZANIA FISHERIES DEVELOPMENT PROJECT (Credit 652-TA) PROJECT COMPLETION REPORT I. BACKGROUND 1.01 General. Agriculture is the dominant sector in the Tanzanian economy. It contributes 85Z to export earnings, accounts for 40% of GDP and supports 90% of the population. Since the early 1970s the agricultural sector has experienced a severe decline and the agricultural surplus needed to support development in other sectors has fallen drastically. To what extent this development is the result of drought and external factors beyond the control of the Government and to what extent these external factors have precipitated a crisis which stems from economic policies and other internal problems and shortcomings is a central and debatable question for both the Government and the donor community 1/. 1.02 In the 1960s and early 1970s Tanzania underwent a reassessment of its development objectives and strategies. The Arusha Declaration of 1967 and related policy statements reaffirmed Tanzania's commitment to a socialist society and identified the Ujamaa village as a means of effecting self-reliance and a community approach to development. To accomplish these goals, the Arusha Declaration emphasized that the state, with guidance from the Party, should play a leading role, especially in the creation of appropriate institutions. The government emphasized an approach to rural development which on one hand transformed the organization of peasant agriculture through village formation (Ujamaa) and, on the other hand, brought about an increasing degree of Government intervention in the sector and in the supporting services for agriculture. These institutional changes altered the framework and organization within which agricultural production would occur. Among the critical changes were the villagization (Ujauaa) schemes and the decentralization of Government whereby regional authories were given control over Government programs and the distribution of services within their regions. 1.03 Ujamaa Village. The Ujamaa village was seen as a vehicle for providing economies of scale in delivering inputs and social services, which would improve the lives of rural people. The ultimate objective was that Ujamaa villages become multipurpose cooperative societies with powers to own land and borrow. Most villages have been formed by physical resettlement. The precise pattern of development within each Ujamaa village has been left to the villages themselves to decide, and Ujamaa development has varied considerably among regions. The extent of collective activity also varies among villages, ranging from a predominantly communal or block farm approach to one which continues traditional individual family farms with a small communal venture for 1/ Tanzania Agricultural Sector Report, August 19, 1983.  - 2 - cash. On the one hand, there has been some dissatisfaction and opposition to Ujamaa, particularly by farmers in areas where proximity to plantings and personal stewardship of assets were disrupted. On the other hand, the process has been accompanied by notable achievements in the broadening of health and education services. 1.04 Decentralization. Under the reorganization of government carried out in 1972, the regional and district administrations were made directly responsible for most aspects of rural development. The regions were authorized to prepare and implement their own development programs, and were given a high degree of autonomy in regional administration. However, the Prime Minister's Office has continued to provide overall policy direction, assistance in preparing their development programs, and coordination in regional plans and budgets. Significant developments resulting from the decentralization exercise have been: the transfer of extension staff administration to the regional authorities (while Ministry of Agriculture (KILIMO) and Ministry of Natural Resources (MNR) maintain control over the technical aspects of extension); and the scattering of scarce skilled personnel throughout regional offices. 1.05 Parastatals. Official policy dictated an increased Government Intervention in the means of production, marketing and distribution of agricultural products. The specialized narketing boards were, thus, transformed into parastatal crop authorities with wider functions and responsibilities. The Intended role for the parastatals was to function as a countervailing force to private middlemen, but after their establishment they were soon given monopoly control over major crops. The structure, organization and operations of parastatals vary, but generally the tendency has been to expand their role into production, extension services, financing, licencing, grading, processing, importing and exporting the primary products. The rapid increase in the number of parastatals and their expanded role combined with the low level of skilled and experienced manpower available in the country has resulted In inadequate staffing of key posts and weak management and persistent financial weakness. 1.06 Manpower Constraints. Lack of experienced and skilled manpower has clearly been one of the major constraints in Tanzania's development process. Available manpower resourcefs have been grossly inadequate for the overly ambitious and often redundant or overlapping roles assigned to the parastatals. Africanization of civil service has further increased the competition and demand for the limited number of skilled people within the country. The Fisheries Sub-Sector 1.07 Tanzania has substantial fish resources in the territorial waters of Lakes Tanganyika and Victoria as -well as limited resources available from the coastal inshore waters of the Indian Ocean. At the time of project development the need to exploit these resources was being felt. Government had formulated a long-term fisheries development plan and had charged the Fisheries Division of the Ministry of Natural Resources with Its implementation. As a part of this effort studies were carried out under a UNDP/FAO project in the Kigoma region to assess the standing stocks and potential sustainable annual yield from the Tanzanian part of Lake  - 3 - Tanganyika and it was expected that similar investigations in other areas of the country would be undertaken with UNDP, FAD and bilateral support. 1.08 Fishing in Tanzania is carried out by two distinct groups; commercial operators using motorized vessels and traditional fishermen who account for about 90% of the production. Commercial fisheries are generally organized in small companies, most of which are owned by regional and district development corporations.2/ Traditional fishermen living along the coast and near the various inland lakes usually also cultivate small subsistance farm plots. 1.09 About 25% of total fish production comes from marine fishing, and 75Z from inland lakes and other fresh water sources. The marine fish are generally sold fresh, while inland production Is sold both fresh and dried. Market expansion especially for lake fisheries is limited by the distances from the landing points to the major consumer centres; access to certain lake areas by road is almost totally lacking, and rail facilities likewise are inadequate. Between 5% and 10% of total production is commercially marketed. Both the wholesale and retail trade are almost entirely in the hands of private traders, although some wholesaling of fresh fish is carried out by the parastatal organizations, National Cold Chain Organization (NCCO) and Tanzania Fisheries Corporation (TAFICO). 1.10 Government services to the fisheries sub-sector are the responsibility of the Fisheries Division of the Ministry of Natural Resources. This Division administers an extension service organized on a regional and district level, with policy direction and technical support provided by the Ministry. The regional fisheries staff are headed by a Regional Fisheries Development Officer; he supervises District Fisheries Officers who have under them Field Officers, Assistant Field Officers, and Field Assistants. The extension service operates a few mobile fishing units 3/ on the major lakes; these units are used to demonstrate improved fishing techniques and to train local fishermen in their use. 1.11 Tanzania Fisheries Corporation was established in 1974 as a parastatal with responsibility for the support and development of commercial fishing. At the time of appraisal it was expected that TAFICO would assume responsibility for Government boat building and net making programs; 4, TAFICO then operated four large and several smaller boat building yards. The larger yards were considered to be capable of constructing boats of 10-15 meters, and there were plans to expand these facilities. Lack of wood-working machinery and workshop equipment and the * small number of skilled craftsmen and mechanics available were identified at appraisal as the main factors inhibiting the expansion of boat building capacity. It was expected that TAFICO would not undertake large scale 2/ The District Development Corporation (DDC) was introduced in the mid-1960's as the local counterpart of the centrally organized parastatals. A DDC is a limited liability company and is the commercial wing of the District Development and Planning Committee. Its objectives are to stimulate commercial activity in the District by participation in business enterprises. 3/ Each unit consists of a net and gear specialist, an engine operator mechanic, two fishermen and a team leader. 4/ There are no significant privately owned boatyards.  - 4 - fishing operations on its own 5/ but would participate jointly with District Development Corporations or other interested parties. 1.12 At the time of appraisal a number of research and training efforts under the auspices of the Fisheries Division were underway, some of them receiving considerable assistance from bilateral donors. A fisheries training program for Field Officers was being carried out at Kunduchi. A vocational training institute at Mbegani supported by NORAD was expected to be operational shortly. Some on-the-job training was provided at TAFICO boatyards. The Fisheries Division had also initiated a number of research progiams and pilot studies. Research stations had been established at Lake Victoria (assisted by Netherlands Development Aid) and at Lake Tanganyika (assisted by UNDP/FAO). 1.13 The Tanzania Rural Development Bank (TRDB), created in 1971, has responsibility for agricultural credit. TRDB is intended to operate as a reasonably independent institution and has been used as the credit channel for a number of IDA credits. Under the project TRDB was assigned an important role in the choice of villages under the Ujamaa village fisheries program in addition to its role as a credit vehicle for other project components. Credit control within TRDB has been weak due to lack of experienced and qualified staff at all levels. However, at the time of appraisal TRDB, with additional technical assistance and recruitment of local staff, was expected to develop adequate capacity to prepare large-scale credit projects suitable for external financing. II. PROJECT FORMULATION Identification and Preparation 2.01 During an RHEA agricultural identification mission in December 1972, a number of project possibilities were proposed and discussed. Included in these proposals was a possible fisheries development project. As proposed by the Fisheries Division the project would include: (i) development of Dar es Salaam, Mtwara and Tanga as deep water ports; (ii) expansion of the local boat building industry; and (iii) development of inland fisheries, of which part of the Lake Tanganyika fisheries would be Included in the Kigoma Regional Development Project. 2.02 In September/October 1973, a Norwegian consulting firm completed its investigation, financed by NORAD, of prospects for a possible IDA financed fisheries project. The firm, which had been originally engaged by NORAD to investigate a range of possible NORAD financed projects, undertook an effort at identification of a project for IDA support at IDA's request. As a general conclusion, the consulting firm recommended against any IDA investment in any project preparation at that time as it did not find any suitable investment opportunities. The consultants' recommendation was based on the following major findings: 5/ Because of its responsibility for the development of shrimp fishing on the coast, TAFICO's involvement in fishing activities with bilaterally provided vessels was not completely ruled out.  - 5 - - a comprehensive boat-building program which was given top priority by the Government, was likely to go ahead without IDA funds; - except for Lake Victoris and partly Lake TangNnyika, the resource knowledge was highly limited to determine with any certainty the eventual size of the needed new fleet and the associated financial commitment; likewise, the size of future investment in fish receiving stations, ice machinery, e etc., could not be determined until extensive fishing trials were undertaken. The consultants, however, concluded that in about 2-3 years time, if the natural resources base proves to be promising, there might well be a need for IDA involvement in boat-building, processing and distribution facilities. 2.03 Subsequent IDA missions questioned the consultants' recommendation on the basis that they had paid very little attention to the identification of a possible project and suggested a second opinion before deciding on a posture. In response to continued Government lnterest in IDA investment in the fisheries sector, a IDA identification mission visited Tanzania in June 1974 and reached agreement on the broad outline of a possible fisheries project. The three sub-projects proposed for further identification and preparation were: (i) the development of commercial shrimp industry primarily for export; (ii) the development of Lake Victoria fisheries primarily at village level through credit to assist in mechanization of small scale fisheries, better fish handling and processing methods and provision of marketing inErastructure; and (iii) the development of small scale commercial fisheries on the northern part of Lake Tanganyika through credit for boat building equipment, motorized vessels, fishing gear and improvements in fish handling and transportation facilities. 2.04 The preparation report, prepared by staff of TAFICO and the Fisheries Division assisted by two UNDP advisors, was received in the Bank in January 1975. It included the following major components: (i) five coastal fishing centres with ten 10 m boats each to catch table fish and prawns; (ii) five fishing centres at Lake Victoria to catch haplochromis 6/; (iii) two fishing centres at Lake Tanganyika to catch dagaa 7/; and (iv) provision of technical services. Each request for fishing centres included a substantial element of road construction costs. Overall cost of the project was estimated at USS 20 million of which about USS 4.5 million was for roads. 6/ A small honey fish coamon to some of the larger lakes, particularly Lake Victoria, of Tanzania. 7/ Dagaa is the local name for a small sardine like fish found in Lake Tanganyika.  -6 - Appraisal, Negotiations and Board Approval 2.05 The appraisal mission visited Tanzania from June 9 to July 6, 1975. Prior to its departure no major issues were raised by the mission. 2.06 In the Issues Paper dated July 31, 1975, the mission indicated that the MNR was weak and there was a lack of coordination between the Ministry and the regional offices on fisheries development plans, and that TAFIC0 had not yet developed into a fully operational parastatal. For these reasons the mission recommended what was considered to be a simple project design though even it required technical assistance. The paper also pointed out the apparent lack of coordination between the donor community and the Government in the support to the fisheries sector. The Decision Meeting was held on August 8, 1975, and it was agreed to go ahead with the appraisal report on the basis of the following major project components: (i) Coastal Fisheries. The number of fishing centres to be reduced from 5 to 3; 'ii) Lake Tanganyika. Only one fishing centre to be included; (iii) A Ujamaa Component. This component was not in the preparation report but was identified by the mission 8/; (iv) Research and Investigation. A marketing survey to assess market potential, prices and logistics for Lake Tanganyika and Lake Victoria production. gv) Lake Victoria. This component was dropped by the Appraisal Mission because at that time no effective research in the catch rates of haplochromis had been done; 8/ The component would mainly comprise 100 8m-boats and fishing gear to cover about 10X of the Ujamaa fishermen operating on Lake Tanganyika. Marketing of the dried fish produced by village catches would be done by lake transport, consisting of 2 tugs and 4 barges and would be operated by the Kigoma Joint Venture Co. to be formed under the Project. The CPS representatives at the Decision Meeting cautioned that a full-scale investment for the Ujamaa component might be premature for the following reasons: (i) in the Kigoma Rural Development Project approved in August 1974 a similar component had to be substantially reduced; (ii) pilot tests with the new type of boat should be conducted before a decision to go ahead with the component; (iii) further studies were needed to firm up marketing arrangements and the impact of increased production on prices; (iv) lack of knowledge even on the part of government officials, about how villages actually function made it impossible to make detailed assumptions about village-level organization and operations; and (v) a full scale investment project should not proceed until the results of the ongoing Kigoma-based UNDP Project were available. The meeting, stating that the SAR adequately reflected a flexible and experimental approach, agreed that this component should proceed with a close review of its size.  -7- (vi) Technical Assistance. A coordinating technical officer each for MNR and TAFICO and specific technical assistance for each of the project components. Project costs were estimated to be US$ 13.1 million (this estimate was subsequently revised to US$ 12.4 million) of which US$ 9 million would be financed by IDA. 2.07 The Loan Committee approved the project in January 1976 subject to the following modifications: (i) the establishment of the Project Coordination Comittee to be a condition of effectiveness; and (ii) the detailed implementation program to be agreed during negotiations rather than to be submitted to the Association within 3 months of credit effectiveness as initially proposed in the SAR. 2.08 Negotiations took place from February 23 - 26, 1976. The main points discussed and agreed were: - coordinating functions of the project to be executed by the Director of Fisheries in MWR rather than by the General Manager of TAFICO as provided in the draft DCA; - recruitment of the four most critical technical experts to remain as conditions of disbursemeat for the respective parts of the project and the remaining five to be recruited by December 31, 1976; - the Tanzanian delegation expressed great concern over consultation, 'every 12 months or more often-, with IDA on prices paid for dried dagaa by the Kigoma joint venture company to the Ujamaa producers. After considerable discussion the Tanzania delegation accepted the clause but insisted and obtained agreement on consultations to take place from time to time;- - retroactive financing of up to US$ 75,000 for expenditure on technical services, housing and vehicles; - establishment of Project Coordinating Committee to be a condition of effectiveness; also a detailed implementation schedule was agreed; - possible combination of the two proposed coastal centres at Pangani and Bagamoyo was mentioned by the Tanzania delegation and the IDA delegation indicated no problem in principle with such a proposal. Government approval of the negotiated documents was received by IDA on March 27, 1976. 2.09 The Executive Directors approved the Project on July 1, 1976. The record of the Board discussions, which deal with three Tanzanian projects presented to the Board that day, make no mention of specific issues being raised concerning the Fisheries Development Project. The  - 8 - legal documents were signed on July 12, 1976. The conditions of effectiveness having been met, the project was declared effective on October 12, 1976. III. THE PROJECT Project Description 3.01 The Project included the following components: (a) Three Fishing Centres to be established along the coast. The exact location was left to be determined by the local District Development Corporations and TAFICO (the shareholders in the joint venture). Each centre was to be provided with ten 10 m fishing boats equipped with 45 h.p. engines and fishing gear. The type of boat recommended was a standard FAO V-bottom design which appeared to be well suited for the conditions found along the coast and powerful enough to bandle the recommended 16.8 m FAO designed trawl 9/. Other investments included an ice store, vehicles, equip-ment, a workshop for routine maintenance and repairs, and several pre-fabricated buildings. Proposed fixed investment was considered an absolute mininum specifically designed to facilitate easy transfer of the centres to other locations along the coast if fishing prospects were to prove better there. (b) A Permanent Fishing Centre on Lake Tanganyika at Kigoma was to be established and provided with ten commercial purse seining 101 units, each consistirg of one 12 m locally-built wooden boat powered by a 80 h.p. diesel engine, five small light boats, fishing nets and other gear. Other investments included covered drying racks, cold storage facilities, vehicles, equipment and buildings. (c) A Ujamaa Pilot Fisheries Program was tc be first initiated in a few villages near Kigoma and gradually expanded to other Ujamaa villages as experience was gained. Credit was to be provided through TRDB to participating village organizations for the purchase of about five standard FAO-designed small boats powered by 10 h.p. inboard engines and equipped with nets and other fishing gear. If lift net fishing techniques proved successful, then TRDB credits could also be provided for this fishing method on the basis of satisfactory technical and financial projections. The fish caught would be dried on shore on covered drying racks financed under the project, and then transported either by truck or over the lake to Kigoma. Technical assistance was included to teach the villagers how to operate and maintain the boats, nets and other fishing gear required. 9/ A large conical net dragged along the sea bed or at pre-determined mid-water depths to gather fish. 10/ A fishing method using a net which, when set to surround a fish shoal, hangs vertically in the water and is then 'pursed' by dra-wing the footrope and bottom of the net together.  - 9 - Cd) Lake transport facilities to transport dagaa to Kigoma and basic supplies to Ujamaa villages were to include two tugs and four barges (25 a long) made of steel. Provision was made to consider other types of lake transport if further study indicated that they would be more suitable. (e) A two-year Market Study would be undertaken to assess the market prospects for increased production of both fresh and dried fish from Lake Tanganyika and would also include a small component to examine potential catch rates and market prospects for haplochromis from Lake Victoria. (f) A study to investigate the effects of increasing levels of chemical pollution on the life cycle of fish in Lake Tanganyika would be undertaken. (g) Technical Assistance to be provided within both the Ministry of Natural Resources and TAFICO would consist of 9 internationally recruited staff, and the incremental staffing as follows: (1) Ministry of Natural Resources Ci) a Manager to assist in the overall coordination and planning of project activities, and to oversee project monitoring and evaluation; (ii) one Fisheries Specialist to train extension personnel on Lake Tanganyika and to supervise the training of Ujamaa fishermen by the training staff. Funds were also provided for salaries of extension staff, equipment and supplies for three mobile fishing units to assist in this task; (2) TAFICO (i) a Manager to assist in the overall planning and execution of the development of the various fishing centres; (ii) one Master Fisherman and one Marine Engineer to assist in developing plans for marine fishing and to give technical support to the three coastal fishing centres; (iii) one Master Fisherman, one Marine Engineer and one Refrigeration Engineer to provide technical support for the fishing centre and the lake transport facilities to be established on Lake Tanganyika; (iv) one Assistant to the Manager of the Kigoma joint venture company to help with the overall planning and coordination of the enterprise.  - 10 - Financing 3.02 The financing of Project costs was to be as follows: US$ million Z IDA 9.0 72 Government 2.2 18 Joint Venture and Ujamaa 1.2 10 Organization and Management 3.03 The Ministry of Natural Resources was to have overall responsibility for all project activities; a Coordinating Committee (comprising the Director of Fisheries in MNR, the General Manager of TAFICO, the two specialist managers to be provided under the project to TAFICO and the Ministry, the General Manager of TRDB, representatives from the Prime Minister's Office and from the External Finance Division of the Treasury and the relevant Regional Development Directors) was to be established to provide policy guidelines. 3.04 The Director of Fisheries was to serve as Project Coordinator. The fishing centres were each to be managed by a joint venture company formed by TAFICO and the relevant District Development Corporation. The Ujamaa program was to be managed by TRDB in conjunction with the regional fishing extension service and the lake transport facilities were to be owned and operated by the joint venture company to be established at ICigoma. The market study was to be carried out under the direction of the Ministry of Natural Resources. Terms of reference for the pollution study were to be prepared by the Ministry of Natural Resources; however; the responsibility for the actual study was not specified. Project Benefits 3.05 The major benefit from the Project was to be increased production of both fresh and dried fish resulting in increased fish consumption in many rural areas where nutritional levels were low, as well as the opening up of new urban markets for this low cost, high protein food. Another important benefit was to be the development and demonstration of more sophisticated fishing techniques at the village level, thus enabling fishermen to better exploit an existing but underutilized resource. The provision of transport facilities on Lake Tanganyika was expected to open up more remote areas of the lake shore to trade, allow better access to extension and other personnel and provide a convenient marketing channel for village production. IV. IMPLEMENTATION 4.01 Execution of the Project was disappointing. The Lake Tanganyika fishing component, after nearly 5 years of unsuccessful attempts to get it off the ground, had to be dropped because it was concluded by IDA that the local management without continued external assistance would not be able to sustain it. Operations of marine fishing centres were also delayed by more  - 11 - than five years (none of the boats started operating prior to the original Project Closing Date); only two of the proposed three centres were allowed to proceed as commercial ventures because there was considerable uncertainty about fish catch rates at the third location (Mtwara) and only 10 of the 30 proposed boats were constructed. The Ujamaa village component suffered serious snags (see paras 4.13 and 4.14) and had to be reduced to 5 villages (compared with 20 villages originally proposed). Because of the development of alternate facilities the Lake Transport component was dropped. The market study, which was completed after the original Project Closing Date, did not contain any useful marketing proposals while the pollution study did not get off the ground. Implementation of Technical Assistance program proved to be a confusing exercise because of partly overlapping assistance provided by various donors and because extensive modifications were required to original proposals to fit the project needs. 4.02 Effectiveness. There were two conditions of effectiveness, i.e.: (a) execution of a subsidiary !can agreement between the Government and TRDB; and (b) establishment of the Project Coordinating Committee. Both these conditions were met within three months of signing. A condition of credit disbursement for each component was that the principal technical service personnel for that component had been recruited on terms and conditions acceptable to IDA. This condition was met prior to disbursement against each respective component. Lake Fisheries 4.03 Establishment of a fishing center at Kigoma proved extremely difficult. Regional Authorities objected to the formation of a new joint venture company (there is no record of whether regional authorities agreement to the establishment of a new company was obtained at appraisal and if so why they subsequently changed their mind). This problem was resolved by an agreement to use Uvuvi Kigoma (an existing fishing enterprise partially owned by the District Development Corporation) as the commercial center under the project. Subsequently TAFICO acquired majority shareholding as called for under the project in Uvuvi Kigoma; and some existing shore facilities, which had been constructed by the regional authorities were transferred to the company. Later on, at IDA's suggestion, Uvuvi Kigoma's shareholding was restructured and TAFICO's ownership was reduced to 12.5% (this action was taken to reduce the perceived negative consequences of TAFICO interventions in the affairs of the local company, see para 6.02). 4.04 A serious disagreement on the type and design of boats for lake fisheries also arose. The Tanzanians argued that the wooden boats recommended in the SAR would not be appropriate and instead proposed steel boats which were considered more durable. This proposal was followed up by submission of design for steel boats. The proposed change represented a major departure from the Project appraisal concept. However, IDA accepted the idea of steel boats, but expressed serious reservations on the design proposed because it was considered too sophisticated. Subsequently, with minor modifications, a new design prepared by the naval architect attached to the Tanzania Railways Corporation was agreed to.  - 12 - 4.05 Switching over to steel boats meant that the boats would have to be procured internationally as there was no steel boat building capability within Tanzania. IDA suggested that designs, specifications and tender documents should be prepared by a reputable firm of consultants, but TAFICO insisted that these could be prepared locally without outside help. The drawings and draft documents which took TAFICO several months to prepare required major revisions. A revised version took additional three months to prepare and three more months were required for IDA to review and comment on the tender documents (a consultant was engaged by IDA for this purpose). Invitation to bid was sent out in May 1979 (30 months after effectiveness). Evaluation of bids was completed in November 1979 by outside consultants retained for this purpose. Since all the bids were more than three times the appraisal estimate for comparable wooden boats originally included in the project, the coordinating committee rejected all the bids with IDA's concurrence and decided on international shopping. !DA approved international shopping because it was felt that reasonable (lower) quotations could be obtained from a large number of suppliers for either steel or fibre glass hulls of the type which were normally constructed by the suppliers matching the general requirements of the project. The services of consultants hired to evaluate bids were extended to assist in international shopping. This exercise was completed in August 1980. The lowest responsive bidder-s quotation of US$205,000 per unit was 35% higher than the estimated cost of comparable wooden boat unit. However, it was calculated that these units even at this price level would be financially viable. 4.06 Before order for the construction of boats could be placed, other problems surfaced. In late 1980, it became evident that the management of Uvuvi Kigoma would have to be upgraded if the fishing centre were to operate satisfactorily. At that time it was also felt that technical assistance should be in place promptly and, therefore, IDA indicated that unless the technical assistance agreement with the Crown Agents to provide technical assistance personnel for Kigoma as well as coastal centres, which had been stalled for some time because of a dispute on withholding tax was finalised (see para 4.20), it would not agree to the procurement of steel boats for Kigoma centre. It was also proposed by IDA that a cancellation clause be included in the purchase agreement for boats (at a cost of 15% of the cancelled amount to be financed by IDA) as a hedge against the new management of Uvuvi Kigoma not proving itself competent. Under the proposed arrangement based on the performance of the new management a firm decision would be taken following delivery of first three boats in August 1981 (some concern was expressed within the Bank on the feasibility of IDA financing the cancellation cost on the basis of a cancellation clause between the Borrower and supplier). In May 1981, the supervision mission (which also visited Kigoma) reported that the conditions imposed by IDA for going ahead with the procurement of boats had largely been met in as much as the technical assistance agreement with the Crown Agents had been signed and a new General Manager of Uvuvi Kigoma was recently appointed. The mission also stated that although an evaluation of the new General Manager's performance at that time was not feasible because he had been in the job only a few days; however, his qualifications and previous management experience gave him a fair chance of doing reasonably well in his new assignment. The mission also recommended financing under the Project an internationally recruited Chief Accountant at Kigoma (because it  - 13 - was considered unlikely that a suitable person for this position could be found locally) and development of a training program for the employees of fishing centres to be financed under the Project. Subject to these conditions being met and injection of reasonable equity capital in Uvuvi Kigoma, it was recommended that the Closing Date should be extended to June 30, 1984, and the contract for purchase of boats should be finalised. However, after considerable In-house deliberations, IDA decided not to extend the Closing Date for this component and this was communicated to the Borrower in September 1981. The main reasons against the extension of this component were: (i) poor track record of the project, (ii) generally poor parastatal performance in Tanzania, (iii) a realization that fishing required above average entrepreneurship, which parastatals were not capable of providing, to be commercially viable, and (iv) concern that once the technical assistance personnel to be provided under the Project were withdrawn the management of the fishing centre would be unable to carry on the business satisfactorily. 4.07 In early 1978 IDA agreed to finance out of the Project funds rehabilitation of three old purse seine boats owned by Uvuvi Kigoma to speed up Project operations pending the acquisition of boats provided under the project. It was expected that the relatively straightforward rehabilitation would be carried out without much problem and delay. However, only one boat was repaired satisfactorily and it has operated intermittently since late 1979. The two remaining boats did not become operational because the engines installed were of wrong size and the other corrective work was not in line with the technical specifications. Coastal Centers 4.08 Numerous difficulties were encountered in the establishment of coastal centres. Site identification, legal incorporation, recruitment of staff and finalization of investment plans took much longer than anticipated. Three sites (Bagamoyo, Nyamisati and Mtwara) were chosen for the coastal centres. Compared to the development of the other two locations, establishment of a centre at Bagamoyo was relatively problem free. Lack of interest on the part of district authorities, shortage of water supply, absence of an all weather approach road, and difficulties in recruitment of staff delayed the proper establishment of a centre at Nyamisati until 1981 (at one point because of serious problems encountered it was proposed to shift the centre to another location). Establishment of a commercial centre at Mtwara was abandoned in 1980 because of uncertainty about fish resources and instead a research effort to determine resource potential. was agreed upon. This program was to be conducted under the supervision of an ODA expert attached to Mtwara RIDEP. 4.09 Disagreements on the recommended design for coastal boats and TAFICO boatyard capacity to construct project boats were encountered in the early phase of project implementation. A consultant was sent to Tanzania in March 1978 by IDA to look Into these problems. This visit resulted in resolution of disagreement on boat design. However, the consultant concluded that existing TAFICO boatyards would not be capable of meeting project needs and orders for some of the boats would have to be placed on other boatyards. Following the approval of investment plans by TRDB for the coastal centres orders for 6 boats were placed with Mikindani boatyard  - 14 - (owned by TAFICO) and 4 boats were ordered from Pangani boatyard (owned by the district authorities) in 1978 and early 1979. The remaining 20 coastal boats to have been provided under the project were not ordered. 4.10 Periodically reported progress by the earlier supervision missions on the construction of boats is quite confusing. In June 1978, it was reported that & boats would be ready by early 1979. In October 1978 it was observed that while the boat building program was proceeding in a technically acceptable way, the completion timetable was several months slower than expected due to delay in procurement of engines from outside the country. In February 1979 it was anticipated t-'at all, boats would be completed within six months. In September 1979, 8 boats were reported to be virtually complete and expected to be fitted with engines by year end. The engines were received in early 1980 and at that time 7 boats were reported to be ready while the remaining three were under construction. In March 1980, doubts were expressed regarding TAFICO's ability to install the engines. This problem was overcome by arranging for a NORAD expert attached to the Mbegani Fisheries Institute and a U.K. Marine Engineer attached to the Tanzania Harbors Authority to supervise installation. In October 1980, the position appeared to be that hulls for all the 10 boats were nearly complete but the fittings were in various stages of installation. At that time it was also observed that TAFICO had been very slow in the construction of boats due to poor management and inadequate release of funds to the boatyards to permit them to procure the necessary materials 1I/. In May 1981, the supervision mission was informed that lack of materials and power outages were preventing the boatyards from completing the construction. The Permanent Secretary of Ministry of Natural Resources promised to take personal interest in the matter and a delivery schedule for the boats was agreed upon. In accordance with this schedule all the boats were to be delivered by April 1982. The mission was also informed that since the time of ordering boats the cost of materials had gone up substantially and it would be unrealistic to expect the boatyards to absorb these costs. After reviewing a detailed proposal by the Ministry, IDA agreed to an escalation of about 50X in the contract price to be paid at the time of delivery. Two boats were delivered in October 1981, one of which had major structural and mechanical defects. Corrective work to make this boat seaworthy was carried out in early 1982 (the cost of repairs was paid by the Ministry). By June 1982, as minimal progress had been made in the delivery of boats (at that time only 3 boats had been delivered), the supervision mission informed the Ministry that unless substantial progress in the delivery of boats was made by September 30, 1982 (at least 8 boats were to be delivered by that date) the Project Closing Date (which IDA had informally agreed in September 1981, to extend except for the lake fisheries component) would not be extended. As this condition was not satisfied by the agreed date (by early October 1982, only 5 boats had been delivered), IDA informed the Government of its decision not to extend the Project Closing Date. 4.11 At the time of last supervision (October 1982) work had been completed at Bagauaoyo and Nyamisati on the rehabilitation of some existing shore facilities, e.g., offices, godowns, ice plant and cold storage. Four houses for expatriate staff and transport equipment provided under the Project had also been procured. 11/ It is worth noting that both boatyards had been paid almost 100% of the price in advance.  - 15- Ujamaa Village Program 4.12 Identification of the first four villages to participate in the Ujamaa pilot scheme was not done until 1978. The first loan under this program was approved in late 1978. In the meantime a master fisherman was appointed to head the mobile fishing unit and the fishing villages to receive craining had been selected in mid 1977. Fishing trials with improved beach seine units 12/ were carried out in early 1978 and proved quite successful. The expatriate Master Fisherman successfully demonstrated the effective use of the mobile fishing units 13/ in the villages. In mid-1978, the outbreak of cholera led the local authorities to close all village fishing for a few months and this caused some delay in the implementation of this component. 4.13 In February 1978, lack of coordination between the local authorities, the Fisheries Division and TRDB was noticed by the supervision mission as having led to some confusion with investment plans being prepared for certain villages by TRDB which proved to be unacceptable to the local authorities. To safeguard against repetition of this problem a coordinating committee was established in Kigoma (representing the regional and district administrations and TRDB and to be chaired by the Regional Fisheries Officer) to identify villages for participation in the program. In August 1979, the supervision mission reported that the committee had significant impact on speeding up the program as evidenced by TRDB's approval of financial plans of two more villages. This optimism about the effectiveness of the committee was, however, shortlived; in March 1980, the supervision mission observed that despite the establishment of a project coordinating committee in Kigoma to speed up identification, no further villages have been identified and 5 approved villages have not started fishing operations. The lack of progress was partly attributed to overlapping responsibilities for procurement of materials. Action was taken to overcome this problem, and it was agreed that henceforth the Project Coordinating Unit (PCU) in consultation with the villages and TRDB would prepare detailed lists of items to be procured and TRDB would restrict itself to direct payment and monitoring the implementation of the investment plans and assuring that correct procurement procedures were being followed. 4.14 This component suffered a further setback when almost the entire shipment of netting and a few outboard engines was stolen. Despite the difficulties encountered the earlier supervision missions repeatedly expressed optimism about the success of this component. In May 1981, the supervision mission reported that disbursements in respect of 5 approved villages were only 30% of the investment plans and the investment plans for 7 more villages were at various stages of preparation. At that time the main problems affecting this program were identified as: (a) lack of proper management in the villages; (b) lack of boat building and other materials; and (c) insufficient technical assistance to the villages by divisional fisheries and TRDB staff. 12/ Consist of a small boat and a net and two teams of fishermen who pull the net on to the beach. 13/ Complete fishing units which traveled from village to village for the purpose of training local fishermen.  - 16 - To speed up implementation it was agreed that by August 1981 TRDB would complete a survey of the needs of participating villages. The mission, however, was skeptical about the outcome of the survey and the prospect of a significant improvement in the implementation of this program and recommended that the component be reduced to 12 villages. A survey was indeed completed by TRDB in August 1981, but no action was taken to assist the villages in dealing with the problems identified. Because virtually no progress had been made in the year following the survey, the supervision mission in Hay 1982 recommended further reduction in the component to the already five participating villages. At the time it was decided to close the project (October 1982) none of the investment programs in respect of the 5 villages had been completed. Lake Transport 4.15 This component did not get off the ground. At the time the Project was appraised, there was virtually no suitable transport facility in Lake Tanganyika. However, an old steamer "Laemba- was being repaired slowly. Because of the uncertainty of this boat becoming operative and to facilitate village fishermen to take their fish catch to the markets, a lake transport component was included in the project. As -Laemba' started operations before any action in introducing transport facilities could be taken, this component was dropped. Market Study 4.16 Difficulties were experienced in the recruitment of a suitable person to conduct the study. A fish marketing expert who was expected to start work on the marketing study, declined the offer in April 1978 and it was not until early 1979 that an expatriate marketing economist was recruited through FAD. A contract was also signed in mid 1979 with the University of Dar-es-Salaam to conduct a household survey of fish consump-tion in the Dar-es-Salaam area. By early 1980, the Dar-es-Salaam household survey was completed and data processing was commenced. Thereafter a similar exercise was undertaken for the Kigoma region. The overall study was completed in early 1982. While it contained some useful recent data on fish production, prices and consumption, it was considered to be of limited value to the original project objective, because it did not contain any useful proposal for marketing incremental fish catch under the project. However, since the scope of the project had been so drastically reduced, in particular the elimination of Kigoma as a major production center which the study was intended to support, the study shortcomings were not expected to have any serious bearing on the scaled-down Project. Pollution Study 4.17 In October 1978, MNR reported that a suitable person had been located in Mwanza to carry out the study. The pollution expert was to supervise the study while analyses were to be conducted by the Tropical Institute in London. In August 1979, the study was reported to be proceeding satisfactorily. Six months later, however, it was reported that the first supply of chemicals had evaporated due to inadequate storage facilities and another shipment had been ordered. These chemicals were subsequently reported to have been procured but the study was not completed.  - 17 - Technical Assistance 4.18 During the first year of project implementation it was noted that TAFICO's non-IDA activities placed a heavy burden on its management which prevented the institution from managing the technical assistance component effectively. To overcome this problem the responsibility for technical assistance was shifted to the office of Director of Fisheries in the Ministry of Natural Resources. Further complications and the need for adjustments in the implementation of this component arose because of the overlapping technical assistance provided under bilateral aid; at one time seven of the planned nine technical assistance personnel under the project were reported to be financed by bilateral aid. This situation largely resulted from lack of coordination with other providers particularly at project appraisal. DANIDA, in December 1978, decided to withdraw technical assistance. This action was dictated by DANIDA's concern that the Kigoma Centre was not making any progress. 4.19 Significant changes were required in the planned technical assistance to TAFICO and the fishing centres. The position of manager at TAFIC0 headquarters to assist in the overall planning and execution of the development of the fishing centres was abolished to reduce TAFICO's participation in the establishment of the fishing companies. This action was considered necessary because of TAFICO's inability to play a constructive role in project implementation (see para 6.02). To assist TAFICO to improve its financial management, IDA agreed in 1978 to the recruitment of an expatriate Financial Manager funded under the project. The incumbent, however, proved to be ineffective and IDA in January 1980 stopped financing his salary out of the project funds. About half-way through project implementation it was realized that the choice of sites for coastal centres made it impractical to effectively provide centralized (Dar-es-Salaam based) technical assistance as envisaged at appraisal. For this reason and because the long delay in the establishment of coastal centres was considered to warrant full-time technical assistance for each coastal centre even under the most favourable circumstances, it was decided to provide one Master Fisherman and a marine engineer for each of the commercial centres. Eventually technical assistance personnel for only two coastal centres (Bagamoyo and Nyamisati) were recruited; no technical assistance personnel were recruited for the third centre at Mtwara because of the decision not to proceed with the development of a commercial centre at this location. 4.20 Finalization of technical assistance arrangements were unduly delayed. Proposals for technical assistance were not invited until 1979. Crown Agents (UK) were chosen in December 1979 in preference to 3 other organizations who had responded to the Government's invitation to provide one Master Fisherman and one marine engineer each for Kigoma, Bagamoyo and Nyamisati; and a Management Adviser and Fish Processing Expert for the Kigoma Centre. For Kigoma the position of Management Adviser was included at the request of the Borrower. The Fish Processing Expert was intended to replace the refrigeration engineer included in the project. Because of the decision not to extend the closing date for the Kigoma component the intended technical assistance personnel for the centre were not recruited. The finalization of agreement with the Crown Agents was delayed by about another year mainly due to the Government of Tanzania's insistance on  - 18 - subjecting the payments under the agreement to withholding tax. Ihis problem was satisfactorily resolved and the four technical assistance personnel for Bagamoyo and Nyamisati coastal centres started arriving in Tanzania In mid-1981. Reporting 4.21 The Project Coordination Unit, when established, issued progress reports, although at irregular intervals. The contents of these reports were not always accurate. Accounts and Audit 4.22 The accounting and auditing covenant called for audited financial statements of TAFICO and the fishing centers to be submitted yearly. During the course of project implementation, only TAFICO's audited accounts for financial year 1977 were submitted. Project accounts were not properly maintained by PCU in respect of technical assistance. Although TRDB maintained separate accounts in respect of the fishing centers and Ujamaa villages, many discrepancies were noted therein. Procurement 4.23 The prescribed procedures required boat engines, equipment and vehicles to be procured through ICB with a local preference margin of 15% or the existing rate of import duties whichever was lower. Civil works and boats were to be procured under Government's normal competitive bidding procedures. Because of the likely lack of competitiveness in the boat building industry, which is largely Government controlled, it was expected that contracts for construction of boats would be negotiated. As anticipated, the contracts for construction of 10 wooden boats for coastal centers were given to two public sector boatyards. Switching over to steel boats for Kigoma centre necessitated ICB (and subsequently international shopping) because there was no steel boat building capacity in the country. Preparation of bid documents for steel boats was delayed by nearly a year because TAFICO did not have the requisite expertise for preparing detailed specifications and tender documents. Procurement of coastal boat engines, workship tools, and vehicles was handled through ICB without any major problem. 4.24 Technical assistance personnel (provided by the Crown Agents) were recruited after evaluation of 4 proposals. Some minor items (mostly household equipment for Technical Assistance personnel) which were not available locally were procured through the Crown Agents. Costs 4.25 The project costs were originally estimated to be US$ 12.4 million of which IDA was to contribute US$ 9 million and the balance was to be provided by the Government, joint venture companies and Ujamaa villages. Because of many fluctuations in the scope of the project (mainly  - 19 - due to delay in implementation) costs were revised several times. Pending a detailed final accounting, project costs as at end of June 1983 were estimated at US$ 5.8 million. The IDA disbursements (planned and actual) are as follows: Disbursements Planned vs. Actual Amount of the Amounts Category Credit Allocated Disbursed (USS) (USS) (1) Sub-loans 5,000,000 1,115,796.20 (2) Technical Services: Remuneration, housing and vehicles 3,000,000 3,061,896.42 (3) Unallocated 1_000_000_ - Totals 9,000,000 4,177,692.62 Disbursement and Funding 4.26 Five entities were involved in disbursement of project funds, i.e., IDA, Government, IAFICO, Regional Authorities and Ujamaa villages. The Project had a very poor disbursement record. Cumulative disbursements as of the original Closing Date (December 1981) were about a third of the credit amount and the total amount disbursed was USS 4.2 million or about 47% of the credit amount of USS 9 million. Some delays were experienced in the receipt of Government contributions. TAFICO and Regional Authorities did not fully contribute their respective shares towards the equity capital of fishing centres. Performance of Consultants 4.27 Except for the Financial Manager, TAFIC0, and the economist retained for the marketing study, performance of consultants was satisfactory. Consultants employed initially to evaluate bids for steel boats and subsequently retained to assist ir international shopping exercise did an excellent job. Similarly, technical assistance persornel provided under the contract with the Crown Agents performed well. The expatriate Project Manager located within TAFICO initially and MHR later and the master fishermen engaged to train Ujamaa villages also performed generally well.  -20- V. PROJECT IMPACT 5.01 Ihe project aimed at the development of commercial fisheries at 3 selected sites along the coast and one on Lake Tangayika, to improve fishing techniques and marketing cata and provide the basis for fisheries development in the traditional sector by supporting a pilot fisheries program for Ujamaa villages on Lake Tanganyika. Any meaningful comparison of actual performance vs aims is difficult because to date the project impact has been almost nil as the various project components are either not operational or have only recently started operating. 5.02 Fishing Operations. For the coastal centres only 3 out of 30 boats were delivered about two months prior to the original Credit Closing Date and none of them was operational. At the time of last supervision (October 1982) some commercial fishing activity had started at Bagamoyo but the records available were too sketchy to derive any meaningful conclusions. As of September 1981, when the decision not to extend the Kigoma fisheries component was communicated to GOT, no project related activities h&d coumenced and out of the three old boats which were repaired with the use of project funds only one boat had operated intermittently. The Ujamaa village program did not proceed beyond the five villages approved in 1978179. As of October 1982, fishing operations had not started in any of the villages. 5.03 Economic Rate of Return. At appraisal the overall project economic rate of return was calculated at 27%; 22% for the coastal ceatres, 28Z for the lake fisheries including transport facili.ies and 30% for the Ujamaa villages. As none of the components have operated on a meaningful scale, calculation of updated rates of retura is not possible. However, given the delays in execution, costs i.-curred to date, and lack of demonstrated production increases, it is probably safe to assume that the rates of return have been negative. VI. INSTITUTIONAL PERFORMANCE 6.01 The overall performance of the various agencies involved in project implementation has been unsatisfactory. TAFICO, while not a direct recipient of funds under the project, was intended to play a major role in the ownership and establishment of the ccmmercial fishing centers. The Project proposals also called for participation by the relevant District Development Corporations in the ownership of joint venture companies and provide necessary support and assistance in establishment of physical infrastructure. The Ujamaa villages program was to be managed by TRDB in conjunction with the regional fisheries extension service. The Ministry of Natural Resources was to have the overall responsibility for zll project activities and in this role was to be assisted by a coordinating committee. The Ministry was also charged with the responsibility for carrying out the marketing study.  - 21 - 6.02 TAFICO. At appraisal, TAFICO had not developed into a fully operational parastatal. As time passed it became evident that it was a weak organization, suffered from poor umnagement and was ill-equipped to handle its assigned role. The other business related problems of TAFIC0 progressively overwhelmed its nagement to the extent that it lost what- ever ability it had to start with to play a constructive role in the implementation of the project. However, because of TAFICO's central role in the fisheries sector, the separation of its problems from the project proved to be a slow process. When a new General Manager of TAFICO was appointed in 1977 it was hoped that this change would result in improvement in the management of the corporation. With this expectation and to support TAFICO in improving its financial management IDA agreed to finance the appointment of a Financial Manager out of project funds. Ihese remedies, however, proved ineffective and eventually it was decided to restrict TAFICO's role within the project to its participation in Joint Venture companies and that only as a shareholder with no operational responsibilities. 6.03 MRDB were given an important role in project implementation. Firstly, they were designated to review and approve investment plans for the commercial fishing centres to ensure their financial viability and provide necessary financing for implementation of these plans. Secondly, they were charged with the responsibility for the selection of villages to participate in the Ujemaa villages' program. This function was to be undertaken by TRDB in cooperation with the regional authorities in general and Regional Fisheries Officer in particular. In evaluating the investment proposals for the fishing centres, 7RDB's performace was reasonabaly satisfactory; however, delays were experienced in releasing funds. IRDB's handling of Ujamaa village program was marred by delays in identification of villages, lack of cooperation/coordination with the Regional Fisheries Officer and lack of assistance to participating villages in implementation -of investment programs. As a result, as of the original project closing date, only five villages (compared with appraisal estimate of 20) were participating in this program and none of the villages had actually started fishing operations. Difficulties also arose as a result of TRDB's involving themselves in procurement matters; this problem was resolved during regular project supervision.. IRDB did not maintain accurate accounting records of project funds. 6.04 The Ministry of Natural Resources was given the overall responsibility for all project activities with the Director of Fisheries serving as project coordinator. The Ministry was to be assisted by a coordinating committee. It Is difficult to assess what positive impact, if any, the committee had on project implementation. The lack of cooperation and coordination between involved organizations and agencies persisted throughout the project period. The Committee and the Ministry demonstrated almost complete helplessness in influencing and expediting the construction of boats for the coastal centres. They were also ineffective in getting the Government to release funds on a timely basis and were unable to assure timely funding of fishing centres by TAFICO, Regional Authorities and TRDB. Frequent changes in the position of manager of Project Coordination Unit created discontinuity; altogether 4 different persons (2 expatriates and 2 locally recruited persons) filled this position.  - 22 - VII. IDA PERFOkiA