Project evaluations : Mahaweli Basin development project, phase I (project no. 383-0056 -- mid-term evaluation); Mahaweli Basin development project, phase II (project no. 383-0073 -- mid-term evaluation); Mahaweli sector support loan (project no. 383-0078 -- end-of-project evaluation)

Special evaluation covers the period 6/80-6/85 and is based on document review, site visits, and interviews with GSL and USAID/SL personnel and with beneficiaries. Although progress has been slower and costs higher than expected, implementation compares favorably with similar complex undertakings elsewhere in the region. While the GSL continues to give high priority to the AMP, the program remains heavily dependent on continued donor support. Construction of main and branch canals in System B of the AMP is on target, with adequate funds available for these activities; claim and arbitration demands by the contractor, due to civil strife, may deplete these resources, however. Downstream infrastructure development in System B is falling short of target, with logistics, rather than funds, the main constraint; it is unlikely that distribution and drainage canals will be in place when the main and branch canals are completed. Also, the need to establish an appropriate settler recruitment policy before introducing large numbers of new arrivals, and to review development approaches on the more marginal soils of System B, may require adjustment of the rate of development. Most settlers in Zones 1 and 5 are living at subsistence level, with less than 20% of irrigable paddy area cultivated and less than 10% irrigated. The Sector Support Loan (3830078) has contributed significantly to AMP downstream activities, but would have had greater impact on increasing U.S. exports if more information had been available to the GSL on U.S. products and marketing procedures. The reimbursement rate under the loan was slowed initially by a number of factors, most of which are remediable. More attention needs to be given to consolidating gains in all AMP systems in order to accelerate crop production and income benefits through improved operation and maintenance of infrastructure and improved pricing, storage, marketing, and related facilities for farmers. These and other issues are addressed in recommendations.