PROJECT DEVELOPMENT GRANT 1

Project identifies, analyzes, and prepares for implementation, high priority development projects in agriculture, rural development, and related areas. Evaluation was internally produced by Mission. Although the planned project implementation schedule has been delayed for over a year, project is now moving ahead satisfactorily. Two of the major studies are underway and contracts for the other two are in the formal stages of negotiation. It is expected that each of these 4 studies in rural irrigation, integrative land and water use, rural roads, and rural industries will result in the development of AID funds for projects benefiting small farmers, labor-intensive agricultural productivity, and the rural poor. Estimations are that the 4 proposed Host Country Contracts (HCC"s) will be completed 2 years behind schedule. Delays have occurred since the mission overestimated the Bangladesh Government (BDG"s) expertise to develop proposals and negotiate contracts with contracting firms. This lack of expertise in the government to do its own negotiating has resulted in AID needing to spend a great deal of time doing this for the BDG. Since Mission"s planning schedules for HCC"s were overly optimistic and have delayed project"s progress, team feels the pro"s and con"s of the development of HCC"s for Bangladesh should be reconsidered. Likewise, the inappropriate use of US vehicles in rural Bangladesh caused team to recommend a set of standard specifications for vehicles which have been developed and approved so source waivers may be obtained quickly in future projects. Disputes within the BDG concerning which Ministries did not have funds earmarked for budget expenditures has delayed commodity port clearance. Team feels that an all donor approach should be considered in which the Ministry receiving the goods pays their duty.