Honduras - Guayape Regional Development Project

Damgst The World Bank FOR OMCIL USE ONLY Report No. 6274 PROJECT COMPLETION REPORT HONDURAS GUAYAPE REGIONAL DEVELOPMENT PROJECT (LOAN 1576-HO) June 23, 1986 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 .ontents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUJIVALENT Name of Currency (Abbreviation) - Lempira (L) Currency Exchange Rate: Appraisal year average US$1.00 - L 2.00 Intervening years average 3 US$1.00 = L 2.00 Completion year average (1984) 3 US$1.00 - L 2.00 WEIGHTS AND MEASURES Metric System and 1 Manzana = 0.7 hectares (ha) ACRONYMS BANADESA - Banco Nacional de Desarrollo Agricola (National Development Bank - ex BANAFOM) DARNO - Direccion Agricola Regional Nor Oriental del Ministerio de Recursos Naturales (Agricultural Directorate for the North East Region of the Ministry of Natural Resources) IHMA - Instituto Hondureno de Mercadeo Agricola (Agricultural Marketing Institute) INA - Instituto Nacional Agrario (National Agrarian Institute) MRN - Ministerio de Recursos Naturales (Ministry of Natural Resources) PROMECA - Programa de Mecanizacion Agricola (Agricultural Mechanization Program) SECOPT - Secretaria de Comunicaciones, Obras Publicas y Transporte (Ministry of Public Works, Communications and Transportation) REPUBLIC OF HONDURAS FISCAL YEAR January 1 - December 31 AGRICULTURAL YEAR May to April  F01 OFFCIAL Uh ONLY THE WORLD BANK Washington. D.C. 20433 U.S.A. .~ ~~~~~~~~~~~~UA Offkc Of 0iv.ctav-G4NWra Opaan vaiItIan June 23, 1986 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report: Honduras Guayape Regional Development Project (Loan 1576-HO) Attached, for information, is a copy of a report-entitled "'Project Completion Report: Honduras - Guayape Regional Development Project (Loan L576-HO)" prepared by the Latin America and the Caribbean Regional Office. Under the modified system for project performance auditing, further evaluation of this project by the Operations Evaluation Department has not been made. Yves Rovani by Otto Maiss Attachment This document has a restricted distribution and may be used by recipients only in the performance of theiir ofNcial dutie& Its contents may not otherwiw be disclosed without World Bsank authorizFtioni.  FOR OFFICIAL USE ONLY HONDURAS GUAYAPE REGIONAL DEVELOPMENT PROJECT PROJECT COMPLETION REPORT Table of Contents Page No. PREFACE . ........ 1 BASIC DATA ii EVALUATION SUMAARYR...... ........ . iv I. INTRODUCTION .1....... . . .. *.. * ..... . . a .... ..... .... I II. PR -JECT FORMULATION..000**o*&*ooo*o*Oooooo 2 A. Identification/Preparation and Appraisarais.sl ... .......... 2 B. Negotiations and Board Approval............o................ 2 C. Project Objectives and Components..............e...... 2 D. Project Cost and Financing.cn*...... ... ...... ......... . 2 III. IMPLEMENTATION .................. 2 A. Implementation Schedule. hdl.................................. 3 B. Implementation of Project Components....................... 3 C. Cost Estimate ............................................. 6 D. Dis smu r s e m e n 8 E. Procuremente............................e................... 8 F. pRe p o r t i n 9 G. Auditing... 9 H. Compliance with Loan Covenantsve n a n ts....................... 9 IV. INSTITUTIONAL PERFORMANCE 0..............10 V. ROLE OF THE BANK....A..... *.*...... 11 VI. AGRICULTURAL IMPACT...........se.... 11 VII. SUMMARY AND LESSONS LEARND 13...........13 ANNEX 1 - Performance Indicators 15-16 ATTACHMENT I - Borrower Comments (from BANADESA)..................17-21 ATTACHMENT II - Borrower Comments (from SECOPT)C................... 22 ATTACHMENT III - Borrower Commenta (from ML., 23 Map IBRD 19740 This document has a restricted distribution and may be used by ecipients only in the performance of their officl dutis. Its contents may not othrwis be disclosed without World Dank authodrtin.  HONDURAS GUAYAPE REGIONAL DEVELOPMENT PROJECT (Ln. 1576-HO) PROJECT COMPLETION REPORT PREFACE This is the Completion Report on the Guayape Regional Development Project in Honduras (loan 1576-HO), for which a loan of US$10.5 million was approved tn May 1978. The legal documents were signed on June 16, 1978 and the project became effective on December 18, 1978. The original Closing Date for the loan was April 30, 1983. Two extensions were granted, and the final Closing Date was December 31, 1984. An amount of US$177,459.29 was cancelled effective on Septertber 19, 1985. The project is the fourth agricultural project financed by the Bank in Honduras. The three previous prtjects were: The Livestock Development Project (Credit 179-HO), financed by a 1970 credit of US$2.6 million, was completed in January 1975; the Second Livestock Development Project (Credit 434-HO), financed by a 1973 credit of US$6.6 million, was completed in December 1979; and the Agricultural Credit Project (Credit 628-vl), financed by a 1976 credit of US$14.0 million, was completed in June 1983. Those projects focused on country-wide credit for medium- and long-scale farms while the emphasis of this fourth project was on credit and support services for small farms in the Guayape Valley. This report was prepared by Agriculture Division A of the Latin America and the Caribbean Regional Office on the basis of country visits in May 1984 and and September 1985 and a Completion Report prepared by the Agricultural Directorate for the North East Region (DARNO) of the Honduran Ministry of Natural Resources (MRN) delivered to the Bank on October 2, 1985. Other sources of information for the Completion Report were: the Appraisal Report No. 1953-HO dated May 5, 1978; the Project Loan Agreement No. 1576-HO dated June 16, 1978; supervision reports; correspondence with Borrower; and internal Bank memoranda, as contained in relevant Bank files. Following a review by OED, it was decided not to audit the project, and the PCR was sent to the Borrower for comments on April 17, 1986. Comments received have been attached to the report.  - M - YWREGIONAL rVUDM W (lon 1576-M) BASIC DM KEY PWT DTA Actualor Actualasa% Appraisal Fatimted of Appasis Estlmte Actul EstIMte * Project cost (US$ zmi ) 14.6 13.6 93 Uoan A t (US minion) 10.5 0.3 Date Board Approval - 05/23/78 - MEO11 Msanggi WY/JUI/ 1Z/i11/t54 f - l?roject EDFie ; Fernar C7 55 72 U - Ecoivnic Rate of Return (Z) 21 17 81 YinanciaL Rate ot r eurn (z) m-'.3X: l=sulame I pertoroEnce -too M Mun t CMI4L&ATIVE D1IJRSMENI FY79 FY80 FY81 FY82 FY83 FY84 FY85 Appraisal estiamte (US$ nIlloni) 1.3 4.1 7.0 9.4 10.5 10.5 10.5 Actual (US$ nd.llinn) 0.9 1.3 2.9 5.3 7.2 9.0 10.3 tual as a % of estitmte 69 32 41 56 69 86 98 Date of final disbursemeunt Septeber 19, 1985 Anunt canoelled IU$177,459.29 (09/19/85) a/ Three mxath8 delay. 1 nty =ndw delay. c/ Nunber of nDnths fran effectiveness to closing date. dV Taking idW-points of appraisal and actual ranges. 8/ Satisfactory for DAmND; usat