SPECIAL EVALUATION REPORT; ZAMBIA PROGRAM LOAN 690-H-004

A SECONDARY OBJECTIVE WAS TO PROVIDE OVERALL SUPPORT TO THE ZAMBIAN ECONOMY WHICH HAD BEEN EXPERIENCING DECLINING GDP. AS A QUICK POLITICAL ACTION, THE LOAN WAS A SUCCESS. WHEN THE LOAN WAS PROPOSED, ZAMBIA WAS DESPERATE FOR FOREIGN EXCHANGE. BY THE TIME THE GOVERNMENT OF ZAMBIA GOT ORGANIZED AND COULD SPEND IT, THERE WAS MUCH LESS NEED FOR THE MONEY. THE LOAN DID NOT ACHIEVE ITS ORIGINAL OBJECTIVE OF RAPID DISBURSEMENTS. THE LOAN PAPER ANTICIPATED THAT ALL DISBURSEMENTS WOULD BE COMPLETED BY THE END OF 1974. ACTUAL DISBURSEMENT LAGGED MUCH BEHIND THIS TARGET. THE LOAN TERMINAL DISBURSEMENT DATE WAS 3/31/76. A FINAL EVALUATION CONCERN IS THE SUITABILITY AND APPROPRIATENESS OF THE COMMODITIES FINANCED. THE LOAN WAS DESIGNED TO MEET A TRANSPORT EMERGENCY. ALL OF THE ITMES FINANCED WERE DIRECTLY RELATED TO ZAMBIA'S TRANSPORT NEEDS. THE EVALUATORS SUMMARIZED THE HISTORY OF THE LOAN IMPLEMENTATON AND DISCUSSED A REPORT ABOUT THE LOAN ISSUED NOVERMBER 28, 1975, BY THE INSPECTOR GENERAL OF FOREIGN ASSISTANCE QUESTIONING WHETHER AID SHOULD HAVE FINANCED EXPORT-IMPORT BANK TYPE COMMODITIES AND WHETHER LOAN FINANCED DRIVER TRAINING SIMULATORS CONTAINED INELIGIBLE COMPONENTS.