Regional rail systems support project : Mozambique component

Interim evaluation covers the period 1988-7/94. Since the 10/91 evaluation and the status report of 3/93, there has been significant improvement in both financial and locomotive tractive areas. However, there are still problems to overcome. Project management initiates major activities without consistent discussion with the CFM. Also, lack of donor coordination often leads to overlaps and conflict in strategies. The financial/accounting advisors and CFM often do not function in step with each other. CFM is slow to take action on the advisors" suggestions, and will change them to the point of diminishing their effectiveness. CFM line managers seem to want to improve matters, but middle management does not appear willing to lobby top management for change. All remaining TA should be incorporated into CFM"s day-to-day line operations, and advisors be given supervisory authority over operations and staff. Installation of the computerized central accounting system should be complete by 6/1/94. Budget and cost accounting systems have been introduced, but their usefulness is hampered by a lack of historical data. There is a serious lack of appreciation from top CFM management of the need to develop accurate financial data. TA should continue at a reduced level so that accurate data can be maintained for use in the World Bank"s Maputo Corridor Revitalization Project. Because the level of railroad traffic is low and should remain so for the next 2-3 years, there is an excess capacity of locomotive power. The technical/managerial level of CFM"s work force is capable of performing maintenance and repair of the U-20C locomotives without TA, which should therefore not be extended. Project experience teaches that railway and other transport projects should include managerial reform and structural innovation as major factors both for efficient use of USAID resources during the course of the project and for post-project sustainability. In its final years, the project (both in Mozambique and elsewhere in southern Africa) will be spending significantly less on engineering components and more on operational, structural, and marketing efficiency.