PROJECT LUWU EVALUATION STUDY

Evaluation covers the period 1/1/75-2/29/80 and is based on a 4-month onsite review. Even though only 34% of the project funds have been disbursed, the project is already having a positive impact on Luwu small farmers. Growth rates of 17.5% for food production, 18.6% for food exports, 12.5% for food consumption per capita, and 12.6% for net income per food farmers have been attained. Because of contracting and project design problems, the project will extend over 6 years rather than 4. While project outputs are generally progressing well, the road improvement and the farmer cooperative centers (FCC's) have suffered from under-planning and under-budgeting. The FCC's have been expanded more than 10 times that originally planned, and the road rehabilitation plan was completely redesigned. Also, the multi-sectoral nature of the project -- which requires one ministry to coordinate the activities of other ministries -- created some management difficulties for the government. However, an effective system of project coordination has evolved. Recommendations include the following: (1) Despite cost overruns, all the subprojects should be completed. (2) Project focus should shift to agricultural intensification programs. (3) A coordinating project treasurer from the Ministry of Finance should be appointed. (4) Subproject treasurers should be made responsibile for bringing requests for reimbursement and related documentation up to date and should include complete analysis of expenditures in their reports. (5) Subproject managers should be required to submit detailed progress reports. (6) USAID should inform the project management of changes in the CAP with regard to outputs and inputs. (7) Studies outlining future POM (planning, operations, and maintenance) programs should be prepared for all subprojects. (8) Similar multi-sectoral development projects should be implemented in other areas of Indonesia. (9) Evaluations should be continued on an annual basis.