Bicol integrated area development II (Bula-Minalabac land consolidation)

Special evaluation covers the period 6/81-7/82 and is based on document review, site visits, and interviews with USAID/P and Government of the Philippines (GOP) officials. Progress has improved considerably in the last year. Of eight relevant preconditions set by USAID/P in 6/81 for possible extension of the Project Assistance Completion Date (PACD), seven, including timely GOP budget allocations and satisfactory implementation of the revised irrigation and drainage infrastructure construction schedule, have been or are being met. Nevertheless, the emphasis on farmer organizational development and training remains basically unchanged, casting doubt on the long-term sustainability of project benefits. This seems due to the priority placed on construction by the Project Management Office (PMO) in response to USAID/P's threat to deobligate a large percentage of the loan unless dramatic progress occurred during the next 12 months, and the PMO's continuing need for technical assistance in the area of farmer development - assistance which was not provided. The eighth precondition, regarding the GOP's mechanism for financing and administering the completed irrigation system, is under discussion. An unresolved key issue is the proportion of total system costs farmers will be required to pay and the amount of the irrigation fee. It is recommended that the GOP decide on this issue by 11/30/82. Twenty-eight other recommendations are made, the most important of which are that USAID/P approve the PACD extension to 12/31/83; assign a specific USAID/P staff member to assist and monitor the project's institutional development component; and approve, upon GOP request, the use of project funds for additional short-term consultants to help the PMO design an effective strategy to organize and provide water management training to the Irrigators' Associations. The PMO should design such a strategy with the help of USAID/P-funded consultants and at least three additional PMO full-time staff members, and should be restructured to provide for a smooth transition to the project's operational phase.