Evaluation of the provincial enterprise development (PED) project (521-0223)

The evaluation covers the period 6/91-12/94; the project was suspended a few months after its inception and reactivated in 7/92. The HDF is operating branches in four provincial centers, and a fifth provincial office is being launched; satellite offices are being set up to improve outreach. HDF made approximately 294 loans in 1992/93, of which 121 were made by provincial offices. In 1993/94, the number of loans increased to 375, of which 271 were made by the provincial offices. The loans, which ranged from $200 to $3,570, supported small and micro enterprises such as bakeries, grocery stores, soft drink and food distributors, restaurants, furniture makers, tailors, and auto repair shops; 30% of HDF's clients have been women. The quality of HDF's portfolio has improved from a year ago, with the number of performing loans and their aggregate value improving from 60% of the total to 75%, and the number and value of both non-performing and un-collectible loans decreasing significantly. In addition, 5 baseline studies have been completed and 3 are planned for the coming year. On the negative side, losses on loans are still high and represent one-tenth of the portfolio value. The rate of recovery and rate of return have been uneconomically low. The target of 10,000 new jobs has proven unrealistic. Most of HDF's administrative procedural files have gradually become obsolete. The organization now functions informally, without official documentation of specifically defined roles and responsibilities and clear organizational structure. Nonetheless, long-term planning is important to HDF, and a new 5-year strategic plan is being contemplated. Considering the weakness of the Haitian economy and the country's political and social crises, the performance of HDF's staff has been impressive. HDF is still unquestionably the primary microlending institution in Haiti. A 2-year extension is recommended to make up for the time lost during the project suspension.