Issues assessment for the USAID/Government of El Salvador water management project (project no. 519-0303)

Evaluation covers the period 8/85-12/87. The evaluation identified several constraints to project success. First, there is a crucial need for more B.Sc. and vocational level irrigation technicians. Although the National School of Agriculture (ENA) has the facilities to provide the training, it is not legally able to grant B.Sc. degrees; an amendment to its charter enabling it to grant B.Sc. degrees is essential. In addition, ENA staff have not been able to go abroad for advanced training, as planned, as their salaries are not continued while they are away. It also appears that ENA is experiencing financial problems which could negatively affect the project. Second, management of the credit component could be improved. CORPREX, a cooperative comprised mostly of irrigation equipment suppliers, was formed by the project to manage the loan portfolio, but after 2 years the incorporation process is still unfinished. Moreover, the prospect of irrigation equipment suppliers controlling loan funds earmarked for irrigation equipment raises the possibility of conflict of interest. FUSADES has in effect been managing the credit component, and should continue to do so, while CORPREX could play a role in promoting irrigation and training farmers. Proposals that FUSADES use loan funds to expand its private sector activities and be permitted to invest in operations funded by the project should be resisted, since they would compromise FUSADES' standing as a nonprofit development institution. Other recommendations are, inter alia, to: encourage FUSADES to finance as many projects as can qualify and to solicit proposals from other areas of the country; increase the amount of credit available for packing and processing plants; provide incentives to increase equipment suppliers' participation; remove restrictions on financing for furrow irrigation; and take steps to upgrade agricultural research capacity. Lessons learned are as follows. (1) It takes much more time to change cropping patterns than was allotted; future, similar projects should be funded for at least 8 years. (2) Farmer interest waned during the 2 years between project approval and the arrival of advisors; TA should be provided rapidly and continuously. (3) Public and private sector cooperation is essential, and has only recently been achieved in this project. The Mission must work continuously to ensure good relations. (4) Due to the high turnover among Salvadoran officials, many times key government officals did not know about the project. USAID/ES should stand ready to provide new officials with copies of project documents. (5) One person at the Mission should remain in charge of the project for at least 4 years to ensure continuity of administration.