AUDIT REPORT RURAL ACCESS ROAD I AND RURAL ACCESS ROADS II

EVALUATION WAS CONDUCTED THROUGH DISCUSSIONS, REVIEW OF PROJECT RECORDS, AND FIELD TRIPS TO PROJECT AREAS. OVERALL, THE EVALUATORS CONCLUDED THAT BOTH PROJECTS WERE DESIGNED WELL. SEVERAL PROBLEMS AND SHORTFALLS WERE NOTED, HOWEVER. THE RURAL ROADS I PROJECT HAS BEEN IMPLEMENTED MUCH SLOWER THAN PLANNED. DELAYS HAVE OCCURRED IN THE ROAD SELECTION PROCESS BECAUSE THE NATIONAL ROADS SERVICE (SNC) HAS NOT PREPARED ENOUGH FEASIBILITY STUDIES. THE CONSTRUCTION OF ROADS IS BEHIND SCHEDULE BECAUSE OF DELAYS IN EQUIPMENT PROCUREMENT, SHORTAGE OF CEMENT, EQUIPMENT DOWN TIME, LACK OF VOLUNTARY LABOR, AND DELAYS IN THE CONSTRUCTION OF SMALL STRUCTURES. THE EXPERIMENTAL PROGRAM HAS MOVED SLOWLY BECAUSE SNC HAS NOT GIVEN IT A HIGH PRIORITY. NUMEROUS WEAKNESSES WERE DETECTED IN SNC MANAGEMENT. THE REVIEW AND APPROVAL PROCEDURES ESTABLISHED FOR THE SELECTION OF ROAD PROJECTS HAVE NOT BEEN FOLLOWED. HAND TOOLS HAVE BEEN PURCHASED IN EXCESS ON NEEDS, AND LOAN-FINANCED EXPLOSIVES HAVE BEEN USED FOR NON PROJECT PURPOSES. ALSO, CASH ADVANCES HAVE NOT BEEN LIQUIDATED PROMPTLY AND INELIGIBLE COSTS MAY HAVE BEEN FINANCED UNDER THE LOAN. SNC SALARIES ARE TOO LOW TO ATTRACT AND RETAIN QUALIFIED EMPLOYEES AND THE INDEPENDENT AUDIT OF SNC BOOKS AND RECORDS DID NOT COMPLY WITH AID SCOPE REQUIREMENTS. TWO GOVT OF BOLIVIA INSTITUTIONS HAVE NOT SUPPORTED THE PROJECT AS REQUIRED BY AGREEMENTS SIGNED WITH SNC BECAUSE OF INSUFFICIENT BUDGETARY SUPPORT AND COOPERATION. THIS HAS CONTRIBUTED TO DELAY IN PROJECT IMPLEMENTATION. EVALUATORS CONCLUDED THAT USAID WILL HAVE TO MONITOR THE PROJECT MORE CLOSELY TO IDENTIFY AND/OR CORRECT PROBLEMS ON A MORE TIMELY BASIS. THIS WOULD INCLUDE ENSURING THAT PROJECT REVIEW AND APPROVAL PROCEDURES ARE BEING FOLLOWED; THAT NCDS IS PROVIDING EFFECTIVE PROMOTION TO THE PROJECT; THAT THE PROJECT SELECTION PROCESS IS PROCEEDING AS PLANNED; AND THAT TRIP REPORTS DOCUMENT SIGNIFICANT PROBLEMS.