Oncho freed areas village development fund

Evaluation covers the period 1/78-12/81 and is based on document review and site visits. The project has failed to achieve most of its targets. Only 35 of a planned 200 loans have been made; 12 are pending. The loans, expected to average $5,000, have averaged only $2,800 and have been mainly for income generating and labor saving purposes rather than for agricultural and nutritional activities as envisaged. The major constraint on VDF lending has been the slow growth of the resettlement program, which is being implemented by the Volta Valley Authority (AVV). Training and information activities have also been deficient. Only 50-70 persons, compared to a planned 230, have been trained in such activities as grain mill operation, weaving, and accounting. Village leaders and extension workers have, however, been provided training in management and basic accounting. Training of AVV personnel in management, planning, computer programming, and staffing has not been accomplished at all. As a result, the AVV is not ready to assume management of the VDF. In addition, a planned formal management information system has not been established, although a computerized loan accounting system will be in place in 1/82. The limited nature of project inputs and outputs results from the lack of a long-term technical advisor, from project management"s decision to gear activities to the slow resettlement rate, and from unrealistic assumptions in the project paper. However, loan activity has increased markedly since 10/80. To extend the project 1 year past its scheduled end in 12/81 without increasing its output level would require only minimal financial and management commitments and would allow an orderly phase-out. Action decisions are to: (1) extend the project for 1 year; (2) forego further external evaluations; (3) revise the project agreement, implementation plan, and budget to reflect the low level of project activities; (4) consider implementing an information system to monitor and evaluate the project"s financial progress; (5) prepare the AVV to assume all project activities by 12/82; and (6) clear outstanding local currency advances.