PROBLEMS ARISING FROM IMPLEMENTING AID"S ECONOMIC ASSISTANCE IN BENIN

IT CONSISTED OF: (1) $22.9 MILLION IN LOANS TO HELP FINANCE THE COTONOU BRIDGE AND DAM AND THE PARAKOU-MALANVILLE ROAD, AND ENGINEERING SERVICES FOR THE DAM; (2) $397,000 OF FOOD ASSISTANCE UNDER P.L. 480 TITLE II. AUDIT WAS CONDUCTED IN BENIN BY REVIEWING RECORDS, INTERVIEWING AID AND GOB OFFICIALS AND INSPECTING FACILITIES. THE BRIDGE AND DAM ARE NEARLY COMPLETE AND ARE SATISFACTORY EXCEPT FOR THE DAM SLUICE GATES (NOT AID-FINANCED) WHICH HAVE NOT BEEN OPERATIVE SINCE FALL 1978. MONITORING PROBLEMS, WHICH WERE FOUND IN ALL PROJECTS EXAMINED, INCLUDED THE GOB"S FAILURE TO PROVIDE A MAINTENANCE PLAN REQUIRED BY THE LOAN AGREEMENT (WHICH MIGHT HAVE ENABLED THE DAM PROBLEM TO BE RECOGNIZED AND SOLVED). THESE AND OTHER PROBLEMS MIGHT HAVE BEEN AVOIDED HAD AID PREPARED ANNUAL PES"S. LACK OF STAFF WAS CITED AS THE REASON FOR NOT PREPARING THE EVALUATION. FUNDS AND THE TIME NECESSARY TO CONTRACT WITH AN EVALUATION FIRM MAY DELAY AN EVALUATION UNTIL FY80. THE AID PORTION OF THE PARAKOU-MALANVILLE ROAD WAS COMPLETED IN FEBRUARY 1977 AND ITS CONSTRUCTION IS SATISFACTORY. HOWEVER, THE GOB DID NOT INSURE THAT TRUCKS WERE WEIGHED NOR DID THEY KEEP RECORDS ON WEIGHT LIMIT VIOLATIONS; AID HAS NOW REQUESTED THAT THE GOB INSTITUTE SUCH CONTROLS. ALSO, THE GOB HAS NOT PROVIDED, NOR HAS AID REQUESTED, A REQUIRED ANNUAL OPERATIONS REPORT OR ROAD MAINTENANCE PLAN. IT IS RECOMMENDED THAT THE GOB PROVIDE THE REPORT AND THAT THE PLANS BE OBTAINED. TITLE II COMMODITIES BEGAN TO ARRIVE IN 1978 BUT THE GOB, UNWILLING TO ACKNOWLEDGE NEED, DID NOT ALLOW DISTRIBUTION UNTIL 1979. THIS DELAY LED TO INFESTATION OF THE BULGAR AND SORGHUM WITH WEEVILS AND RODENTS. THE ONLY MONITORING BY AID HAS BEEN TO INSURE THAT THE COOPERATING SPONSOR-CATHOLIC RELIEF SERVICE (CRS)-PREPARES ITS ANNUAL ESTIMATE OF REQUIREMENTS. THE LAST PROGRAM EVALUATION WAS IN 1972. (AID REPORTS THAT THERE ARE NOW REGULAR VISITS FROM A FOOD FOR PEACE OFFICER.) IT IS ALSO RECOMMENDED THAT AID AND CRS PREPARE AN AGREEMENT ON THE EXTENT AND FREQUENCY OF INTERNAL REVIEWS OF THE TITLE II PROGRAM.