MEMORANDUM OF AREA AUDITOR GENERAL FOR LATIN AMERICA OF GRANT FOR BRAZILIAN UNIVERSITY TO UNIVERSITY AGRICULTURAL EDUCATION AND LOAN FOR HIGHER AGRICULTURAL EDUCATION IN BRAZIL.

GRANT HAS ACHIEVED PURPOSE OF PROVIDING INSTITUTIONAL BASE FOR FUTURE PROGRAMS BY ESTABLISHING AT LEVEL OF MINISTRY, WHICH HAS WELCOMED THE IDEA, A MECHANISM FOR PLANNING, IMPLEMENTING INTER-UNIVERSITY ASSISTANCE. OTHER OUTPUTS IN ACCORD WITH GRANT PURPOSE HAVE BEEN: RECEPTION OF FELLOWSHIPS, LONG AND SHORT TERM TECHNICAL ASSISTANCE BY SCHOOLS, SCHOOL AWARENESS OF NEED FOR ADVANCED TRAINING AND SELF-EVALUATION PROCESS. TWO UNDERGRADUATE AGRICULTURAL COLLEGES IN N/NE HAVE RECEIVED TECHNICAL ASSISTANCE FROM BRAZILIAN GRADUATE SCHOOLS AT BRAZILIAN EXPENSE. THOUGH ONLY 1 OF 2 LONG-TERM TECHNICAL AIDS (OHIO STATE U) HAS BECOME AVAILABLE, HIS EXCELLENCE HAS PROVEN SUFFICIENT. US HAS DISBURSED $80,000 OF $120,000 OBLIGATED FUNDS, WITH $30,000 SOON TO BE DEOBLIGATED. IMPLEMENTATION OF LOAN, WHICH WAS SIGNED 1/30/74 AND EXPIRES 6/30/78, IS BEHIND SCHEDULE DUE TO MINISTRY DELAYS IN MEETING DISBURSEMENT CONDITIONS. SITUATION IS NOW IMPROVING AND MINISTRY HAS BEGUN ACTION TO ESTABLISH DESIRED MECHANISM. SIX GRADUATE CENTERS HAVE BEEN SELECTED AND ARE IN PROCESS OF IMPLEMENTING PLANS TO AID 6 UNDERGRADUATE SCHOOLS. MICHIGAN STATE U HAS BEEN CONTRACTED TO PROVIDE US TECHNICAL AID. TO DATE ONLY $9,953 OF COMMITTED $1,200,000 HAS BEEN DISBURSED. OVERALL LOAN AGREEMENT IS FOR CONTRIBUTION OF US $7.6 MILLION,BRAZIL $8.3 MILLION. DIFFICULTY HAS BEEN ENCOUNTERED IN COMPLETING PARTICIPANT TRAINING DUE TO PROJECT SLIPPAGES. USAID ISNOW WORKING ON THIS PROBLEM. ANOTHER PROBLEM HAS BEEN MISUNDERSTANDING OF GRANT PROJECT BY SOME SCHOOL OFFICIALS. THIS WAS TO BE SOLVED BY TRIPARTITE AGREEMENT BETWEEN MINISTRY AND PARTICIPATING SCHOOLS, BUT WAS NOT. FORTUNATELY, SUCH AGREEMENTS ARE PROVIDED FOR IN RECENTLY ADOPTED LOAN PROCEDURES.