Audit report on the resource conservation and utilization project in Nepal

Audit report covers the period 5/80-7/83; is based on document review, site visits, and interviews with project officials; and incorporates findings from a 2/83 special evaluation. While the project is achieving some of its goals (nurseries, plantations, terraces, the demarcation of forests, buildings, solar water heaters, and improved stoves and livestock are being provided), it is unlikely to have significant impact in the target areas, which are large and relatively barren. Also, neither women nor villagers have participated to the extent planned. There are no women (vs. 10% targeted) in the project"s university-level certificate program (due perhaps partly to a delay in opening the new Pokhara campus, which was to accomodate half of the certificate candidates), nor have any women received basic education grants; women hired by the project have been paid less than their male counterparts. The role of villagers in the project has not yet been defined; thus, a signficant manpower resource has been neglected. Moreover, misunderstanding of the project"s purpose and scope is widespread among villagers, and project activities are not always consonant with villagers" priority needs. While 11 project-funded, long-term trainees have returned to Nepal, 7 have been assigned to work on other projects. Construction of buildings, water and irrigation systems, and mini-hydros is behind schedule; more realistic targets for job completion and cost are needed. In addition, it is unclear whether monies provided to the Local Resource Conservation Coordination Fund - designed to stimulate farmer interest in converting land to environmentally sound uses - have been used as intended. Contractor performance has generally been adequate, but due to the management structure of their counterparts" agencies, contractor specialists have lacked the authority to accomplish their objectives. Contractor reporting has not been timely - USAID/N failed to stipulate adequate criteria in this regard - and improvements are needed in commodity and local currency control. Eleven recommendations, key among them that the project scope be reassessed, are made.