Colombia - Integrated Rural Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 6807 PROJECT COMPLETION REPORT COLOMBIA INTEGRATED RURAL DEVELOPMENT PROJECT (LOAN 1352-CO) May 29, 1987 Projects Department Latin America and the 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.  CURRENCY EQUIVALENT Currency Unit = Colombian Peso -C$ US$1 C$ 33 - SAR US$1 C$ 100 - Complntion WEIGHTS AND MEASURES Metric System ACRONYMS Caja - Caja de Credito Agrario, Industrial y Minero (Agricultural, Industrial and Mining Credit Bank) Cavecinales - Fondo Nacional de Caminos Vecinales (National Fund for Rural Roads) CECORA - Central de Cooperativas de la Reforma Agraria Ltda. (Union of Agrarian Reform Cooperatives) ClDA - Canadian International Development Agency CIE - Centro de Investigaciones Economicas (Center for Economic Investigation) DNP - Departamento Nacional de Planeacion (National Planning Department) DRI - Desarrollo Rural Integrado (Integrated Rural Development) ICA - Instituto Colombiano Agropecuario (Colombian Agricultural Institute) !CBF - Instituto Colombiano de Bienestar Familiar (Colombian Institute for Family Welfare) ICCE - Instituto Colombiano de Construcciones Escolares (Colombian Institute for School Buildings) ICEL - Instituto Colombiano de Energia Electrica (Colombian Institute for Electric Power) IDB - Inter-American Development Bank INDERENA - Instituto de los Recursos Naturales Renovables y del Medio Ambiente (Institute for Renewable Natural Resources and the Environment) INS - Instituto Nacional de Salud (National Institute of Health) MINED - Ministerio de Educacion Nacional (Ministry of Education) MINSALUD - Ministerio de Salud Publica (Ministry of Public Health) PAN - Plan Nacional de Alimentacion y Nutricion (National Food and Nutrition Plan) SENA - Servicio Nacional de Aprendizaje (National Apprenticeship Service) FISCAL YEAR January 1 - December 31  FOR OFFCIAL USE ONLY THE WORLD BANK Washington. D.C. 20433 U.S.A. Office ad OioCu.wu) Opastam tvatIm May 29, L-bl MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Colombia Integrated Rural Development Project (Loan 1352-CO) Attached, for information, is a copy of a report entitled "Project Completion Report on Colombia Integrated Rural Development Project (Loan 1352-CO)" prepared by the Latin America and the Caribbean Regional Office. Further evaluation of this project by the Operations Evaluation Department has not been made. Attachment Ram K. Chopra for Yves Rovani This document has a restricted distribution and may be used by recipients only in the performance of their oMcial duties. Its contents may not otherwise be disclosed without World Bank authoriation.  FOR OMCIAL USE ONLY COLOMBIA INTEGRATED RURAL DEVELOPMENT PROJECT PROJECT COMPLETION REPORT Table of Contents Page No. BAC .. DATA.HEET................................................... ii BASIC DATA SHEET ... .. .*~.*9.t . .. .... . ... . ii EVALUATION SUMMARY ................................ iv I. INTRODUCTION ........................ 1 II* PROJECT FORMULATION.R M UL.o...... . 2 A. Indentification/Preparation and Appraisal..................* 2 B. Negotiations and Board Approval........................ 2 C. Project Objectives and Componentsm on.......e nts............ 2 D. Project Cost and Financinga n c i ng................. e..... 3 III. IMPLEMENTATION..** ..... 3 A. Implementation Schedule............... .......... * ......e 3 B. Implementation of Project CGmponents.mponents.......... 3 C. Cost Estimate...........9... ....... 9 Do Disbursement.......................... ........... ..*..... 10 E Pocrmn ......e**@@X*v***v@@ 11 H. Organization, Monitoring and Evaluation.................... 12 I. Compliance with Loan Covenants.......****..-.. .**.*. ..*..*- 13 IV. INSTITUTIONAL PERFORMANCE..................e...................... 13 V. ROLE OF THE BANK......................................... 14 VI. PROJECT IMPACT.*................. 14 VII. SUMMARY AND LESSONS LEARNED. ........................ ...... 16 ANNEX 1 - Key Indicators ANNEX 2 - Major Effects of DRI Program ANNEX 3 - Incremental Volume and Value of Production ANNEX 4 - Rionegro Survey - Farm %ncomes and Spending ANNEX 5 - Project Farm Income MAP IBRD 12202 R 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.  COLOMBIA INTECRATED RURAL DEVELOPMENT PROJECT (Loan 1352-CO) PROJECT COMPLETION REPORT PREFACE This is the Completion Report on the Integrated Rural Development Project in Colombia (Loan 1352-CO), for which a loan of US$52.0 million was approved in December 1976. The legal documents were signed on January 7, 1977, and the project became effective on August 26, 1977. The original Closing Date for the loan was December 31, 1982. Two extensions were granted and the final Closing Date was September 30, 1984. However, disbursements were authorized through May 1985. Almost the full US$52.0 million of the loan was disbursed and an amount of US$42,031 was cancelled on May 20, 1985. As part of a major Government initiative to improve living condi- tions in rural areas as well as the quality of nutrition, the Integrated Rural Development Prcgram (DRI) and the Nati(Aal Food ane Nutrition Plan (PAN) were created. In this framework, the project was the first Integrated Rural Development Project in Colombia. It focused on improving the income of about 40,000 farmers with less than 20 ha and the living conditions of about 150,000 rural inhabitants of some of the poorest areas in three regions of the Andes. The emphasis of this project was to (i) increase farm incomes throug) technical assistance, training, credit and marketing services; (ii) improve infrastructure: roads, electric power and water supply; and (iii) improve social infrastructure, in particular education and health services. This report was prepared by Agriculture Division A of the Latin America and the Caribbean Regional Office on the basis of a country visit in February 1986 and Completion Reports prepared by the Ministry of Agriculture's Directorate General for the DRI/PAN program (DRI/PAN), deli- vered to the Bank on October 10, 1985 and one by Caja delivered to the Bank on August 8, 1985. Other sources of information for the Completion Report were: the Appraisal Report No. 1212-CO dated November 12, 1976; the Project Loan Agreement dated January 7, 1977; a 1984 project completion survey in a sample area in the Bank's No. 3 project region, Antioquia, entitled: "Evaluation of the Socio-economic Impact in the District of Rionegro" by the Center for Economic Investigations (CIE) of the University of Antioquia, contracted by the project management; supervision reports; correspondence with the Borrower; and internal Bank memoranda as contained in relevant Bank files. A copy of the draft report was sent to the Borrower for comments. No comments have been received. This project has not been subjected to an audit by OED.  - ii - QXAI4BIA mDRn 1WIAL EVELM PRSE (Loan 1352-M) PROJECT CaN=CNf(1 REgF BASIC DAMA KEY PRtJECr DATA Actual or Actual as a % Appraisal Estimated of Appraisal Estinute Actual Estimate Project Cost (US$ million) 131.0 146.7 112 lIan Anammt (US$ million) 52.0 52.0 100 Date Board Approval - 12/23/76 - Date Effectiveness 04/28/77 08/26/77 a/ Closing Date 12/31/82 0730/84 rf Project Implemmitaticm Priod C/ 68 85 125 Eommizc Rate of Return (%) 22 16 73 FinxdRateo l Of trn 19 (57) -96 (23) Institutio PlPexfornunce Good Mi4xed ItiWbe o Direct Beneficiary FamLlies 40$, 000 38509 aJILATIVE DISBURSEMENT FY FY78 FY79 FY80 FY81 FY82 FY83 FY84 FY85 Appraisal Estimate (US$ mIllion) 0.4 9.0 22.0 34.3 45.1 51.5 52.0 52.0 52.0 Actual (US$ mellion) 0 2.0 8.6 21.5 28.7 41.3 45.0 47.5 52.0 Actual as a % of Estimate 0 22 39 63 64 80 87 91 100 Date of Final Disbursement May 20, 1985 Amount Caicelled US$42,031.05 (05/20/85) STAFF INPUCS_ FY74 FY75 FY76 FY77 FY78 FY79 FY80 FY81 FY82 FY83 FY84 FY85 FY86 TUTAL Preappraisal 45.9 48.2 94.9 1.2 190.2 Appraisal 133.0 13.6 146.6 Negotiation 19.5 19.5 Supervision 9.? 48.8 57.1 44.5 28.3 18.9 12.7 20.1 5.4 16.9 262.0 Other 1.4 1.0 0.1 0.2 2.7 Total (SW) 45.9 48.2 229.3 44.6 48.9 57.1 44.5 28.3 18.9 12.7 20.3 5.4 16.9 621.0 == === == == = === a/ Four months delay. b ty-t e montbs delay. c/ 1lziber of mDntbs froa effectiveness to closing date. bters between parentheses indicate te average rate of return for the nine farm models in the SAR. and overall financial rate of return in the actual situation. e/ Satisfactory for S A, ICA, Caja, Cavecinales, ICEL, INS, IC(E, DNP. Unsatisfactory for CEORA, ItDE , MinEd, MinSalud. f/ Source: LCIJ.. xneludes both field and office wrk at Headquarters.  - iii - BASIC DATA (Cok.'d) MISSIaN DATA Date No. of Staff/Days Specializations Performance Types of Mission (Hb/Yr) Persons in Field 8/ Represented b/ RatingiS/ C rend d/ Problem Identification 1 09/73 4 129 a,bsc,d Identification 2 05/74 3 20 a,b,c Preparation 1 11/74 2 56 a,c Preparation 2 12/74 2 30 d Preperation 3 03/75 1 51 Preparation 4 04/75 2 10 a,c Preparation 5 05/75 3 63 b,c,k Preparation 6 10/75 8 156 3a,b,f,d Appraissl 02/76 13 294 phb bWd,2f, Supervision 1 01/77 2 18 a,i 1 2 Supervision 2 05/77 2 18 a,d 2 2 FM 9upervision 3 11/77 8 a,d,f,2g,h,m,n 2 1 M alpervision 4 02/78 4 27 a,d,e,h 2 I MF Supervision ) U(J/I I 14 zg,m zFD 9 pervisicn b W //b8 4 z a,d,t,j z I M Sipervision 7 l 10/78 3 32 a,d,k 2 1 Supervlsion t / 01179 5 30 dg,h,i,m gnervision 9 W /79 33z a,c,f 2 1 PM 9upervision 1U / 09/79 3 45 a,c,k Z 1 Sujpervision 11 ' 1/80 4 40 a,d,e,h 2 1 P 9bupervision 1Z w U/8U 5 13 a,b,Zc,j Z I F SpervisIon 13 Ub/81 3 31 za,c Z 1 F Supervisin 14 11/81 3 Z6 a,e,i 2 2 F Supervision 15 11/8Z 6 25 a,c,d,e,g,h 2 F supervisionlb W1i83 z 12 c,J 2 Z HF Supervision 17 OQ/84 3 18 a,c,i 2 2 MF Supervision 18 e 03/84 1 4 d Supervision 19 M/ 06/84 3 8 c,2i Supervision 20 10/84 1 7 c 2 1 MF TOMEAL Supervision 1,241 GUFR PFMDECr DATA Borrower Republic of Colocmba Executirg Agencies - National Planndng EeFartmmnt (DNP) - (olotman Agricultural Institute (ICM) - Agricultural, Industrial. and M[ndng CFedit Baik (Caja) - National Apprenticesb4j' Service (SENA) - National Fund for lbral baxds (Cavecinales) - M1nistry of Baalth (MmSaid) - National Institute of Halith (INS) - Ministry ot bducation (Mlin -d) - Colombdan Institute for Schlol Buildings (IDC) - Oolombian Institute tor Electric FPwer (ICEL) - Union ot Agrarian Retonn Oboperatives (WEWNA) - Institute tor Reneawble Resources and the Enviroment (INDEEK) Fiscal Year - January 1 to December 31 Nam of QCrency - Colatb:an peso - C$ (brrency Exchange Rate: Appraisal Year Average -LUS- C$ 33 Intervening Years Wlighted Average US1 56.75 Completion Year Average (1984) a1 100 Nlas Project: Integrated Rural De1o