Annual loan review and evaluation - loan 527-L-055

PURPOSE OF PROJ WAS TO RECONSTRUCT AND DEVELOP INFRASTRUCTURE, UTILITIES, AND HOUSING IN THE ZONE AFFECTED BY THE MAY 1970 EARTHQUAKE. EVAL METHODOLOGY UNSPECIFIED. 2OF THE 67 PROJS PLANNED, 56 WERE UNDER CONSTRUCTION OR WERE COMPLETED AT TIME OF EVAL. THIS INCLUDES ALL SELF-HELP HOUSING PROJECTS, THE WATER & SEWER PROJS IN BOTH THE EARTHQUAKE & FLOOD ZONES, ALL LOCAL SERVICE ELECTRICITY PROJS IN CHIMBOTE, AND PORTIONS OF THE HIGH TENSION ELECTRIC PROGRAM IN CHIMBOTE. THE 8 LOW TENSION ELECTRIFICATION PROJS IN TRUJILLO WERE IN THE BIDDING STAGE; CONSTRUCTION ON TWO BASIC INFRASTRUCTURE ELECTRIF PROJS IN CHIMBOTE AND ONE HIGH TENSION SYSTEM IN TRUJILLO WAS EXPECTED TO COMMENSE SOON AFTER THIS EVAL. THERE WERE SEVERAL FACTORS WHICH APPEARED TO BE IMPEDING THE TIMELY COMPLETION OF THIS PROJ. DELINQUNET GOP COUNTERPART FUNDING DISBURSEMENTS AND A CLUMSY VALORIZATION PROCESS RESULTED IN ERRATIC CASH FLOW. THERE WERE WORK STOPPAGES DUE TO LABOR DISPUTES & NON-PAYMENT OF WAGES. UNFORSESEN FIELD CONDITIONS NECESSITATED SOME REDESIGN WORK. AN INITIAL DELAY WAS EXPERIENCED BECAUSE OF THE NEED FOR EXTENDED NEGOTIATIONS BETWEEN THE PARTICIPATING AGENCIES OVER THE TERMS OF THE IMPLEMENTATION AGREEMENTS. IN OCTOBER 1976,USAID DISCONTINUED DISBURSEMENTS OF FUNDING IN RESPONSE TO THE ABOVEMENTIONED DIFFICULTIES WHICH OBTAINING COUNTERPART GOP FUNDNG. IN ORDER TO INSURE THE COMPLETION OF SEVERAL PROJS WHICH WERE UNDERWAY AT TIME OF EVAL,IT IS RECOMMENDED THAT EITHER AID RECOMMENCE ITS SHARE OF THE FUNDING IN THE HOPE THAT THE GOP WILL EVENTUALLY PROVIDE ITS SHARE,OR,MORE PREFERABLY,THAT THE TDD BE EXTENDED WITH SIMULTANEOUS FUNDING AGREEMENTS ENFORCED. THIS EVAL INCLUDES SEVERAL TABLES WHICH CONTAIN INFORMATION ON: CONSTRUCTION PERIODS -- SELECTED COMPLETED PROJS; PROJECT COMPLETIONS BY QUARTER; AND DATES AND LISTS OF PROJECT ACTIONS.