Review of selected agriculture sector projects; Regional Development Office/Caribbean

Audit report covers the period 3/78-5/85 and is based on review of project files, procedures, and selected field activities and on interviews with officials from RDO/C and from regional and local implementing institutions. The 3 projects being managed directly by RDO/C are generally proceeding well, although not without problems. Caribbean Agricultural Extension, Phase II (5380068) is developing extension services in 8 countries and in selected regional support institutions, but quantitative goals will probably not be attained in any area. St. Lucia Agriculture Structural Adjustment"s (5380090) land survey and registration component is working well; however, marketing promotion has not been initiated, as the Government has not drawn up a marketing strategy, and no banana replanting activities (apparently unneeded) have been undertaken. The automated information system for the Banana Growers" Association has been completed only in part, and even that part has not functioned well; a commitment from the Association to use the system should be a prerequisite to further project support. In Farming Systems Research and Development (5380099), by contrast, the Caribbean Agricultural Research and Development Institute (CARDI) has, as of 9/84, performed 35 exploratory experiments (vs. 24 planned), 17 on-farm tests (vs. 8 planned), and all 6 planned on-farm technology validations. CARDI"s accounting system is generally sound, but some help is needed to better control A.I.D. funds and given CARDI"s poor financial condition the project is not self-sustaining. Under Regional Agribusiness Development (5380010), the Caribbean Development Bank has made 11 subloans worth $6.4 million. Of the 6 subloans examined, however, 2 are not viable: the subloan to provide production credit to sugar farmers in St. Vincent suffers from serious internal control problems and should be suspended, while the subloan to the Citrus Growers Association in Dominica has gone unused due to growers" inability to market produce profitably. A third subloan, to build a sugar factory in St. Vincent, was a mistake: the factory is poorly managed and heavily indebted. Finally, RDO/C"s cash advances have not complied with A.I.D. requirements, and in some cases RDO/C project officers did not know whether counterpart contributions had been made.