Commodity systems project

Evaluation covers the period 3/78-7/81 and is based on site visits, document review, and interviews with A.I.D. and CRG personnel. Although all the components of the project have suffered from the inability of the CRG and the Central Bank (BCCR) to provide adequate counterpart funds, USAID/CR has, since a special evaluation in 11/80, worked to improve implementation by creating a special account (SA) for channeling loan funds. Training in farm recordkeeping and budgeting for 4,000 farmers has been slow and difficult but should improve with the establishment of the SA and the purchase of l0 motorcycles. To comply with GCR restrictions, overseas training has been abandoned in favor of local workshops and courses. Short- and medium-term lending did not begin until 1981 and has since been impeded by the BCCR"s failure to reimburse banks for fear of violating liquidity limits imposed by the International Monetary Fund. As a result, the credit program will likely be transferred to the Banco Nacional, pending approval from AID/W. The project"s implementation unit has not been sufficiently forceful due to a lack of personnel, coordination, lines of responsibility, and aggressive leadership. The marketing unit has lacked manpower (especially for field data collection) and vehicles (due to arrive in 8/81). There has, however, been a marked improvement in research -- an agro-industrial module for processing tilapia in Turrialba is being installed, bids are being solicited for a mobile fruit and vegetable processing plant, experiment stations have completed necessary construction, and work on the Turrialba wood processing plant will begin soon. It is recommended that Annex I of the Project Loan Agreement be revised regarding CRG contributions and reallocation of A.I.D. funds among project components, and that the credit instruction manual be changed to reflect the shift in the credit program to the Banco Nacional and to resolve issues regarding eligibility criteria and target areas.