CABEI INTEGRATION FUND (LOAN COMPLETION REVIEW AND REPORT)

Evaluation methodology is not indicated. Terminal Disbursement Date (TDD) was extended twice, to 3/31/76 and to 6/30/76, to permit subproject completion. Loan agreement was amended l0/21/70 to permit procurement from Code 940 countries and to exclude CA Member Countries for loan purposes; and amended 4/10/74 to delete the paragraph on security assignment and add an article on CABEI"s obligation to AID. Loan funds were used to finance construction and engineering supervision on 15 highways, one airport, an Atlantic Coast inland waterway, and two highway signal projects, all of which are complete. Construction of the Gotera/Perquin Highway in El Salvador, however, is only 80% complete due to heavy rains and contractor"s need to do other Government of El Salvador priority work. Completion is not expected before 6/30/77. To avoid a further TDD extension, it was agreed to transfer $1.1 million in construction completed under Loan 014 to Loan 008. A report on each subproject is contained in CABEI"s final report of 6/76. CABEI has fully complied with the Loan Agreement, including the special covenants on a $40 million guarantee by member countries of CABEI borrowings and on export diversification and tourism. SIECA and CABEI jointly financed "CA Manual of Maintenance of Highways" and also produced manuals on regional highway signs and signals and on loan control and vehicle dimensions. ROCAP and CABEI are currently conducting an ex-post benefit/cost analysis (scheduled for completion in 11/76) on several roads constructed under the program, with stress on their development impact. No problems are foreseen with CABEI"s compliance with post-disbursement period covenants. ROCAP will monitor loan amortization and will periodically report to AID/W on progress of the uncompleted subproject.