Project design, municipal development fund, markets, regional development fund

and focused on subprojects (SP"s) in three cross-cutting areas - markets and other income-producing ventures, roads, and schools. The management and institutional aspects of all the projects were also assessed. In general, schools and roads, which comprise the bulk of SP"s, are meeting targets for completion. Most markets and other income-generating SP"s, on the other hand, are not developing the level of income necessary to make them financially sustainable, nor are they always meeting health and environmental objectives. Moreover, most municipalities may not be able to fully repay their loans for construction of markets, which in some cases are overbuilt in terms of current needs. It is recommended that the markets SP be discontinued. The smaller rural markets scheduled for construction in 1989 and 1990 did not fall within the purview of the evaluation. As the result of recent political events, the ESF Secretariat has suffered from discontinuous leadership and unclear objectives. It lacks a mechanism to monitor loan repayments and has not transferred technology for complex construction projects to local governments. Nonetheless, the Secretariat has recognized these problems and developed plans which, if implemented, would enhance its capacity. For their part, local governments should be granted greater authority for SP management and contracting.