AUDIT REPORT : USOM THAILAND WATER RESOURCES PROJECTS-POTABLE WATER PROJECT NO. 493-11-521-186, LABOR INTENSIVE WATER RESOURCES PROJECT NO. 493-11-120-206

THE PURPOSE OF THE POTABLE WATER PROJECT WAS TO DEVELOP THE CAPACITY IN THE MINISTRY OF PUBLIC HEALTH (MPH) TO PLAN, DESIGN, CONSTRUCT, AND MAINTAIN A NETWORK OF POTABLE WATER SYSTEMS IN THE ACCELERATED RURAL DEVELOPMENT PROVINCES. AUDIT NOTES THAT MPH EFFORTS TO SUSTAIN THE POTABLE WATER PROGRAM SINCE THE PHASE-OUT OF US ASSISTANCE HAVE BEEN UNSATISFACTORY. MAINTENANCE AND REPAIR PROBLEMS STEMMING FROM A SHORTAGE OF MECHANICS, INSUFFICIENT OPERATING FUNDS AND INADEQUATE SUPPORT BY VILLAGERS HAVE CONTRIBUTED TO THIS SITUATION.AS A RESULT, NUMEROUS WATER TREATMENT PLANTS WERE INOPERATIVE, HINDERING THE PROJECT OBJECTIVE TO PROVIDE VILLAGERS WITH POTABLE WATER. IN ADDITION, LEGAL PROBLEMS WITH PAYMENT OF SALES COMMISSION, RTG FUNDING LIMITATIONS AND MPH PRACTICES HAVE HAMPERED THE USAGE OF AID COMMODITIES TOTALING $629,894. PURPOSE OF LABOR INTENSIVE WATER PROJECT WAS TO ASSIST THE RTG IN STIMULATING THE ECONOMY OF NE THAILAND BY PROVIDING IRRIGATION WATER TO FARMERS AND EMPLOYMENT TO LOCAL LABORERS. AUDIT NOTES THAT IT IS UNLIKELY THAT THE PROJECT WILL MEET ITS GOAL OF CONSTRUCTING 12 AND REHABILITATIONG 18 RESERVORS, EMPLOYING 8300 LABORERS, BY 12/31/72. LACK OF RTG BUDGETARY SUPPORT HAS CONTRIBUTED TO THIS CONDITION. IN ADDITION, ABSENCE OF COORDINATION, LACK OF MONITORING AND SHORTAGE OF A SOIL ENGINEER HAVE CONTRIBUTED TO INEFFECTIVE USE OF PROJECT COMMODITIES VALUED AT $292,350. IT IS RECOMMENDED THAT USAID URGE RTG TO SUFFICIENTLY BUDGET FOR CONSTRUCTION AND REHABILITATION OF RESERVOIRS. IT IS ALSO RECOMMENDED THAT USAID REVIEW WITH RTG USE OF IRRIGATION EQUIPMENT AND DETERMINE IF EQUIPMENT CAN BE TRANSFERRED TO AN AREA WHERE IT WOULD BE USED MORE EFFECTIVELY.