Project evaluation : resources for village production and income project

Special evaluation covers the period 8/80-9/83 and is based on document review, site visits, and interviews with Tanzania Rural Development Bank (TRDB) and USAID/T staff and with project beneficiaries. A series of delays have hampered the project: the TRDB's computer system is two and a half years behind schedule. Also, as a result of the Tanzanian default on a scheduled repayment of earlier development loans, A.I.D. was required to halt further loans. Manufacturing and village food processing are only slightly behind schedule and individual units are proving more socially and economically beneficial than estimated. If readjustments are made for start-up delays of one to two and a half years, TRDB progress is nearly on schedule. Detailed description, planning, and scheduling for individual outputs should be emphasized. Because Phase II has been eliminated, TRDB needs to make sound proposals to international donors for financing future programs. Specific recommendations respecting TRDB operations include: to prepare a policy and procedures manual; to upgrade economic research/planning capacity to prepare proposals for international donor financing; to reconcile existing loan accounts; to transfer accounts and records transferred to a new computer and loans in critical default to a collection account; to improve management; to prepare a plan for undertaking the newly assigned cooperative banking function; to create an internal audit and credit review system; to review and revise record keeping guidance for head, regional and district offices; to prepare a training plan to meet the institutional needs for undertaking a large array of improved procedures and large volume of businesses; to develop/implement plans for transfer of the input distribution functions and for disposal of inventory; and to close specialized facilities/accounts.