Audit of the PVC pipe drainage project

Audit report covers the period 6/15/76-10/22/81 and is based on site visits, a review of project documents and financial records, and interviews with USAID/E, Egyptian Public Authority for Drainage Projects (EPADP), and contract officials. As of 4/30/81, the drainage network, scheduled for completion by 1981, covered only 2.6% of the target area with over 40% of project funds expended. Implementation delays resulted from shortfalls in planned EPADP and World Bank (WB) pipe production; EPADP contractors falling behind scheduled installation; and a delay in GOE procurement of installation materials. These delays resulted in the exposure of 1,549 miles of unused pipe to wind and sand deterioration at the project"s manufacturing plants because of inadequate storage facilities. Pipe production was virtually stopped in the second quarter of 1981. Because farmers continued to irrigate crops waterlogging, soil salinity, and reduced crop yields of over 30% resulted. GOE has rescheduled the project completion date for 7/84, but has not communicated the details to USAID/E. Although the evaluation plan called for comprehensive, yearly evaluations (including one of the training component) by the project manager (PM) and close cooperation with WB officials, neither was accomplished. The recommendations the PM did make were not implemented by GOE and when contacted for a collaborative evaluation WB officials were evasive. Auditors recommend that USAID/E: establish a project review board with GOE and WB; reschedule inputs to agree with GOE"s new project schedule; instruct GOE to determine the shelf-life of pipe equipment and polyvinyl chloride resin ($157,000 worth of the latter has been contaminated in storage) and arrange for proper storage; arrange with GOE to complete the audit and reconcile it to A.I.D. records; review the status of the nine A.I.D. forklifts -- if they remain unused by GOE, arrange for their final disposition; require GOE to log its use of the A.I.D. automobile and review the log to ensure that the car has GOE tags and is used only on project business; with GOE, ensure that workers use health protection gear.