US assistance to private and voluntary organizations in the Philippines, fiscal years 1980-1982; report of a program evaluation

and Philippine PVO's to design and implement subprojects (SP's) benefitting the rural poor. Special evaluation covers FY 1980-82 and is based on document review, site visits, and interviews with project personnel and beneficiaries. The project has achieved most of its output targets and has demonstrated the soundness of the co-financing approach and the ability of PVO's to promote rural development. A follow-on project is strongly recommended. Against a target of 20-30, 21 SP proposals of the 57 submitted have been approved and 15 more are being considered; 75% of the SP's are in line with host government and USAID/P development priorities. Most of the 11 SP's visited were attaining their goals despite unrealistic project design, lack of local government support and community participation, and difficulties in sustaining the SP beyond the grant period. Direct and indirect beneficiaries of 19 of the SP's are estimated at almost half a million. Peace Corps Volunteers have played positive roles in two SP's. The project's disbursal rate is only 21%, however, due partly to poor planning by PVO's. While only 7 of a targeted 10-20 U.S. PVO's have received grants, they received 66% of the $4.644 million expended, 23% going to The Asia Foundation (TAF) alone. The evaluation team vindicates continued support for this controversial PVO, although at reduced amounts. Six Philippine PVO's, the maximum number targeted, have received grants. USAID/P's maximum flexibility attitude to reviewing SP proposals and making funding decisions has caused confusion among PVO's and project committee members. To rectify this situation, USAID/P should: clearly state SP criteria; determine whether its intention is to assist PVO's or advance its own country strategy; review SP proposals within 60 days; have a committee formally review SP proposals with a PVO representative after visiting the SP site and vote whether or not to recommend the SP to the Director; encourage PVO's to submit simpler and shorter-term proposals with a greater chance for immediate impact and to consider incremental funding for larger projects; streamline procedures for registering Philippine PVO's and advancing funds; and intensify technical assistance and training efforts to PVO's. Standard and specified procedures should improve efficiency and reduce staff workloads.