Ghana - Agricultural Services Rehabilitation Project

 Agricultural services rehabilitation project Report No: ; Type: Report/Evaluation Memorandum ; Country: Ghana; Region: Africa; Sector: Agricultural Extension; Major Sector: Agriculture; ProjectID: P000881 December 27, 1995 Ghana: Agricultural Services Rehabilitation Project (Credit 1801-GH) The Ghana Agricultural Services Rehabilitation project, supported by Credit 1801-GH, for US$17 million, was approved in FY87 and cofinanced by the African Development Bank, Kreditanstalt fur Wiedaraufbau and the United Nations Development Programme. The Implementation Completion Report (ICR) prepared by the Africa Regional Office provides a clear and comprehensive account of the project and a good description of plans for the project's future operation. The Borrower's full report on the implementation and achievements of the project is annexed to the ICR. The objectives of the project were: first, to strengthen the institutions responsible for the formulation and implementation of agricultural policies and programs; and, second, to improve public sector services to agriculture. The three principal components were (i) strengthening of the Ministry of Food and Agriculture's (MOFA) capacity for policy formulation, planning and monitoring and evaluation; (ii) the implementation of policy reforms including privatization and removal of subsidies on production inputs; and (iii) the improvement of research, extension and irrigation services. To help fulfill its objectives, the project provided hardware (civil works, vehicles and equipment), software (technical assistance and training) and operating expenses. The project was comprehensive and designed to assist the Borrower translate its Economic Recovery Program, launched in April 1983, into a coherent program-n of agricultural recovery. It was successful in this objective and succeeded in revitalizing MOFA and realizing several policy reform targets. Distribution of fertilizer was privatized, the subsidy eliminated and full cost-recovery established for veterinary drugs. Success in improving agricultural support services was variable, as might be expected in a single project. The studies program was successful, producing the Medium Term Agricultural Development Strategy, the National Agricultural Research Review and the National Environmental Action Plan which provided the basis for the development of a portfolio of six follow-on projects in the agricultural sector. The Operations Evaluation Department (OED) agrees with the ICR in rating project outcome as satisfactory. The sustainability of the project is rated as likely, particularly, since many of the services continue to benefit from follow- on projects. The planning and management capacity of MOFA and associated agencies has been strengthened considerably, and OED agrees with the ICR rating of institutional development as substantial. In accord with the ICR, the performance of both the borrower and the Bank is rated as satisfactory. Lessons stemming from the implementation of this project include: (i) institutional development takes time and requires continuity of support and, in most cases, should not be combined from the outset with intensive investment; and (ii) project implementation or coordination units (PCU) are usually critical for effective project implementation by institutions inexperienced in managing Bank projects; if necessary, PCUs should be established prior to project start-up with PPF support. An audit is planned.