Thailand land settlement project has made progress but some subprojects require better mission monitoring

Audit report covers the period 9/79-3/83 and is based on document review, interviews with RTG and USAID/T officials, and site visits. After a 2-year start-up delay, steady progress has been made in extension activities and road construction. At the time of the audit, 63 extension agents, 378 farm leaders, and 1,886 pilot farmers were involved in project activities; agricultural demonstrations were underway in all 8 settlements; 7,404 (of a targeted 25,000) farmers had been issued land certificates by the RTG; and as of 6/83, 26 soil and water conservation subprojects were operating in 7 settlements. However, none of the 5 water subproject sites visited had been constructed according to specifications. Water runoff tanks were mislocated at all 5 sites; in the 3 villages where rain runoff tanks were constructed, only 8 of 31 tanks could hold water. Specifically, in Bam Thung Bo village, 8 tanks were mislocated with respect to their downspouts, leaving some tanks empty; in Nong No village, faucets did not lock as required; the pond in Khok Sung Yai village has no catchment area - and thus will probably never fill - and is dangerously steep-sided; and the pond in Sa Kut, intended for drinking water, was not enclosed and has been contaminated and eroded by water buffalo. USAID/T engineers failed to participate in final site inspections carried out by the RTG Department of Public Works (DPW). In addition, water and road construction sites were not selected according to original needs critera - 8 of 33 sites actually had surplus water for drinking, household, and livestock use and only 1 site was deficient in all 3 areas. Similarly, the new road built at Ubonrat has been barely used. It is recommended that: no further payments be made to the RTG without written assurance that the above problems will be corrected; USAID/T participate in the construction acceptance and certification process; and results of a planned 1984 evaluation be used in establishing criteria for future water and road subprojects in Thailand. It is suggested that the Mission closely monitor DPW engineering supervisory and inspection efforts.