Estonia - Agriculture Project
Project ratings are as follows: Project outcome is rates highly satisfactory; sustainability is likely, institutional development impact is high; Bank performance is satisfactory; and Borrower performance is also satisfactory. Experience with this project confirms a number of OED lessons: (a)... Full Description »
Project ratings are as follows: Project outcome is rates highly satisfactory; sustainability is likely, institutional development impact is high; Bank performance is satisfactory; and Borrower performance is also satisfactory. Experience with this project confirms a number of OED lessons: (a) Effective operational linkages between related project components help improve project outcomes. The aim of the farm drainage rehabilitation component was to bring flooded land back into farm production. In addition, drainage rehabilitation was also used successfully to promote privatization by requiring recipients of drainage assistance to cross-comply with the privatization objectives under land reform. Farmers had to buy or sign long-term lease agreements on state-owned land in the drainage area and had to accept responsibility for future drainage costs. Setting these conditions established a " give and take " approach, which ensured that farmers both contributed and were committed to the drainage objectives and to the privatization objectives under land reform. This served to advance more than one objective with the same investment of resources under the project. (b) A private sector delivery system for extension services can be an effective alternative to public sector delivery, provided that there are appropriate incentives, firtancia1 controls, and audit procedures. In this case, private delivery (1) allowed swift implementation, (2) avoided the future costs of having to dismantle a public delivery system after having met transition requirements, (3) contributed to developing a base of private sector expertise to meet the long-term aim of having the market provide certain extension services on a user-pay basis, (4) recognized the private sector ' s capacity for providing a diversity of extension expertise, and (5) respected the preferences of farmers for less government involvement in their business affairs. (c) In identifying projects for development assistance, the Bank should pay close attention to those where the borrower is likely to take strong ownership, responsibility and control of the project, because such conditions contribute significantly to achieving positive project outcomes. The Estonian Agriculture Project is an excellent example where the borrower possessed a strong desire to own the project from the beginning to the end. This contributed greatly to a project likely to generate highly positive benefits for the Estonian agricultural and rural economies. Based on the Estonia example, indicators to look for in identifying a borrower likely to take and maintain ownership and responsibility include (1) a strong sense of policy direction when entering into discussions with the Bank; (2) already taking steps within its means toward realization of the policy direction; and (3) exhibiting a desire to disengage from the Bank ' s assistance as soon as possible. Each of these indicators was very much in evidence with respect to the Estonia project.
Content Type : Reports , Doc Sub Category : Project Performance Assessment Report , Country : Estonia
June 28, 2004