RURAL DEVELOPMENT PROGRAM

Only 18% of loan disbursed to date due to difficulties in meeting conditions precedent to disbursement, delays in acquisition of technical assistance, procedural delays associated with evaluation plan, and problems in publishing the MAG"s budget. Loan implementation has accelerated. With assistance from Practical Concepts, Inc. INFOCOOP is working on subproject development for some $3 million. MAG is budgeting for and planning loan-financed TA activities. Eight projects-by-campaign have begun, and USAID is reviewing plans for eight new projects. The National Agricultural Council has not prepared annual plans, and is probably in no position to exercise coordinating authority over the implementing agencies. Lack of attention to loan by previous Minister and changeovers in key GOCR and USAID staff further hindered implementation. Cooperatives which have received loans have significantly increased sales of such inputs as fertilizers, seeds, sprays, and equipment to members. Coops receiving processing loans have built new plants and increased sales of their products. Recommendations include revision of project logical framework, merging of three credit components (production, marketing/processing, and working capital), and closer coordination of AID and GOCR agencies.