Audit of USAID/Egypt"s monitoring of the private sector commodity import program

Audit covers the period from the 12/94 interim evaluation (PD-ABK-483) through 3/95. USAID/E has responded appropriately to evaluation recommendations to increase program utilization and develop improved procedures for assessing program impact. To increase the former, USAID/E negotiated with the government to increase ceilings on fund utilization by traders and large producers, raise the interest rates that banks are allowed to retain, and extend the interest-free grace period from 6 to 9 months for traders importing capital equipment. The Mission has also enhanced program marketing, by hosting a trade fair in Alexandria which attracted 1,000 prospective program users and promoting the program through personal contacts with importers, bankers, and the business community. As a result, the number of program transactions rose from 374 to 583, the average transaction increased from $228,000 to $304,000, and the total value of program imports rose from $85 million to $177 million between FYs 1994 and 1995. To improve assessment of program relevance and impact, USAID/E has included PRCIP under its Strategic Objective No. 2, which is designed to measure the increase in private sector investment and trade. In the view of the auditors, these actions have satisfactorily addressed the evaluation"s recommendations, and have helped to ensure that the program achieves the expected results. Finally, USAID/E"s monitoring of PRCIP"s arrival and receipt systems provides reasonable assurance that commodities received are used as intended.