Agricultural feeder roads

Audit report covers the period 4/76-3/83 and is based on document review, discussions with appropriate officials, and site visits. Due to a deficient project design (specifically, substandard road design), lengthy equipment procurement delays, and lack of coordination between technical assistance (TA) and corresponding project work, the project was redesigned in 5/79 with a focus on developing the TPTC"s ability to plan, manage, and implement rural road construction. To this end, a TA team has assisted the TPTC"s Programming Unit and Organization/Methods and Administration/Accounting Services; improved the TPTC"s organizational structure; prepared operational budgets and key job descriptions; helped prepare a methodology for conducting transport project feasibility studies; and begun work on establishing a TPTC transport economic analysis capability. The project redesign also upgraded road standards, resulting in a cost increase of over $7 million and a reduction in the amount of road to be reconstructed to 341 km; to date, only 317 km have been completed and the project completion date has consequently been extended to 9/30/83. Several other problem areas are noted in the report. A TPTC Equipment Leasing Service (SLELC) with some $1 million in AID-financed equipment was established early in the project, but most equipment has been used less than 10% of the time and some pieces not at all. Cumbersome GOH procedures for disbursing counterpart funds delayed the purchase of fuel, lubricants, and spare parts needed to maintain equipment, causing construction delays and cost increases. In other areas, the SLELC sold $17,375 worth of spare parts without USAID/H approval; A.I.D. funds were used to pay approximately $18,400 in taxes on gasoline which should have been duty-free; the GOH did not submit shipping statements showing compliance with grant requirements for U.S. transport of project goods; and the SLELC"s financial statements were not audited as required. Five recommendations address the above-noted problems.