Project assistance completion report : northern zone infrastructure development, implementing agency -- Ministry of Planning and Economic Policy, Costa Rica

The three major project activities were road improvement, community development, and land titling/purchasing. The information in this report is mostly drawn from a 2/87 evaluation. Project start-up was delayed until 3/84, due mainly to the Government of Costa Rica's adherence to the letter of the law regarding formal ratification of the loan agreement. As a result, targets were not fully met. Only 103.7 km of roads were upgraded, compared to 152 km targeted, and of these, 22.7 were financed through P.L. 480, not the project. The shortfall in road improvement was due partly to a change in specifications and hence higher costs. Community development activities were more successful. The project supported 31 existing Development Associations and helped to form 21 more, for a total of 52, covering virtually 100% of the project area. Construction of community infrastructure included 3 classrooms, a community center, two meeting centers, a health center, and a water system. In addition, six agricultural projects were undertaken, including establishment of windbreaks and plantings of cocoa, cardamom, black pepper, vanilla, and maraguya. The land purchase component, implemented by the Agrarian Development Institute (IDA), succeeded in helping small and medium sized farmers (i.e., those owning less than 100 ha) to secure legal land titles. IDA purchased 4,291 ha with P.L. 480 funds, and created 12 new asentamientos from this land, with an estimated capacity of 548 families. Between 340 and 370 of the plots were occupied and/or being worked as of 1/87. As for farmers who already had topographic plans, 117 titles were registered and awarded as of 1/87, 5 others were ready for registry, and 65 were in the field inspection phase. Property censuses were underway (as of 11/86) in 2 of the 5 zones targeted for this activity. The project design did not expect actual economic development to occur and in fact there seems to have been no noticeable change, or even the beginnings of progress in such crucial development areas as income or unemployment reduction. There are some signs (as of 2/87) of incipient new economic activity, but signs of an economic take-off are notable for their absence. A Phase II project, focusing on production, has been recommended. The project delays should serve to remind future projects to allow ample time for formal ratification of loan agreements, and not to expect any real action until this process is completed.