Project of cooperative administration strenghtening [i.e. strengthening], OPG-515-[0]248 : mid-term evaluation

The project is implemented by Agricultural Cooperative Development International (ACDI). The evaluation covers the period 3/89- 5/91. The project's first 15 months were severely hampered by a reduction in the level of technical effort, the lack of TA in coffee renovation credit, distractions in solving problems with FEDECOOP, and delays in contracting local staff. This delay has been partially overcome by the dedication and hard work of the staff. Except for the efforts (now completed) of the external advisor in coffee credit, project resources have been well used. Output targets for the first 2 years have been surpassed in nearly every respect except for supervision and recuperation of funds disbursed for coffee renovation credit and financial stability of the cooperatives. The delinquency problem is especially vexing; of the 7 participating FEDECOOP cooperatives, 3 are in serious financial difficulty and the others are close behind. ACDI should continue the studies, already underway, aimed at resolving this problem. In general, ACDI has correctly selected clients on the basis of their potential impact in nontraditional exports and the desires of the Boards of Directors to introduce important changes in their business philosophy. Tangible benefits of the project include the construction of a coffee processing plant for COOPEATENAS and a contract with ASOFRUPAC for the sale of mangoes through BANACOL. International training has given good results. It is still too early to assess the effects of coffee cooperative training, since it was oriented not only to improving skills but also to changing attitudes and instilling a businesslike mentality. Technical materials prepared on the subjects of budgets, financial analysis, and the preparation and evaluation of projects are of good quality. ACDI relations with UNIBANC, COPISA, and USAID are good, and have so improved with FEDECOOP that ACDI technical staff are now comfortable supporting changes recommended at the highest administrative levels. This situation opens up enormous prospects for the project. It is likely that, as a result of project delays, funds allocated for credit will not be fully utilized. Alternatives uses should be sought. (Author abstract, modified)