Ex-post Evaluation

1-1 Background of the Project

The agriculture stands out, within the national development program, as one of the prioritary areas and efficient agricultural production is hereby mentioned, stressing out the establishment of agricultural infrastructures and the diversification of the production. The Ñeembucú Department is located south of Paraguay and 80% of the producers is made up of small producers with less than 20Ha in tenancy. This Department is located within a triangular zone made up by the joining of the Paraguay river, that runs across the country in north-south direction, and the Paraná river that runs across the country in east-west direction, and has been suffering damages due to the overflowing of these rivers. In particular, during the overflow that took place in 1983, it suffered a great deal of damage, such as the overflow of most of the farming lands, roads cuts, among other damages, and later, approximately half of the lands became overflowed, thus turning difficult the life standards of the small producers and affecting also their production.
Under these conditions, the Government of Paraguay has requested an integral technical cooperation that embraces both the productive and social infrastructures, through the participation of the community, having it as a development model for the small producers of the southern region of Pilar, where 80% of the producers are small producers (less than 20Ha in tenancy).
At the moment of the final evaluation in the fifth year, it has been decided its extension for 1,8 years, since the technical sustainability has not been assured in 1999

2. Project Overview

(1) Overall Goal

To improve the life standards of the small producers in the southern region of Pilar.

(2) Project Purpose

To strenghten the technical and organizational capacity of the Ministry of Agriculture and Livestock, and of the small producers of the project's zone, to achieve a continuous sustainable farming development through the improvement in the handling of drainage, soil impovement, improvement of the farming techniques, diversification of the exploitation modality, among others.

(3) Outputs

1. (Elaborate the drainage handling program): The counterpart learns the skills and techniques related to the elaboration of the drainage handling program, through the collection and analysis of data at the project's zone, and through the elaboration of the drainage handling program.

2. (Set up an infrastructures model for the drainage handling): The counterpart learns the suitable techniques, and its efficient exploitation method, for the planning, design and construction of infrastructures of drainage that may be built and maintained at communitary level through the participation of the producers, through the construction of drainage handling infrastructure and equipping of farming lands such as the demonstration parcels at the model zone.

3. (Create an maintenance system of the drainage channel through the participation of the benefitiaries): The counterpart learns the way to improve the techniques to increase the productivity at the projet's zone through the analysis of suitable items and variety, possibility of alternate items, diversificación of the farming system, improvement of the farming techniques, suitable techniques for soil improvement.

4 (Improve and strengthen the extension activities to introduce the diversified exploitation modalities and the improved techniques): The counterpart and the extensionists obtain the capacity to be able to spread, in a efficient and effective way, the improved techniques and the diversified exploitation modalities, through training and capacitation to extensionists, key producers, demonstration of the improved exploitation modalities at the model farms, orientation and establishment of producers organizations, information campaign, among others.

(4) Imputs (Moment of the Evaluation)

Japanese Side:

Paraguay side:

3-1 Summary of Evaluation Result

The following score was scaled of one to five.

(1) Impact (average 3.6 points)

1) (Drainage channel and environment 3 points)
> Positive Aspect: With the creation of water channels and drainage channels it was possible to achieve 39% of the producers of the project's zone to recover their lands. Besides, since the humid soil zones were removed, the influence on livestock and damage to crops was reduced, and the return of the producers, who were forced to abandon their lands during the overflow, which caused an increase of the farming inhabitants at the project's zone, took place. The number of farms that built sanitary installations (bathrooms) has increased. (4 points).
> Negative Aspect: Since the habitat for aquatic birds was reduced, the population of fishes, wild birds and wild animals was reduced. The work related to the construction of ponds for livestock has increased, since the waters were displaced.

2) (Infrastructures, such as roads 3 points)
> Positive Aspect: With the opening of the road that runs across the center of the project's area (that joins Pilar and General Díaz), the transport of farming products was nimbled and the freight cost was drastically reduced. The enrollment index at schools and universities of the city of Pilar has drastically increased (prior to the beginning of the project it was not possible to go from their homes to school due to the distance). With the progress of the electrification of the communities, the health care system has improved, and the stay of young people has increased. (4 points)
> Negative Aspect: Due to the construction of roads, the number of illegal hunters increased. (2 points)

3) (Farming & Livestock Industry and Production Techniques 4 points)
> Positive Aspect: The yield of manioc and sweet potato per Ha increased. 40% of the producers that are subject of study are looking to cultivate organic sugar cane that offers high incomes. They use green manure for soil conservation purposes.
Regarding the milk producers, the quality of milk and cheese increased, and the production volume has increased as well as a result of the genetic improvement through the artificial insemination. (4 points)
> Negative Aspect: Nothing in particular.

4) (Organization System 4 points)
> Positive Aspect: 30% of the producers of the project's area have created stocking and delivery committees, and carry out the collective stocking and delivery. Just as a reference, the collective stocking and delivery outside the project's area reaches only 5%. (3 points)
> Negative Aspect: Nothing in particular.

5) (Other items such as human resources training, among others 3.5 points)
> The producers who are financially well, have studied the water channel and drainage construction techniques, and are carrying out the simple infrastructures by themselves through the FUDEÑE.

(2) Sustainability (Average 3.4 points)

1) (Policy 4 points)
The administration policy of the DERMASUR (MAG) office has not changed since the end of the project, and it continues to be as one of the prioritary issues.

2) (Organization and System 3,5 points)
Despite the State Budget, which is the source of the project's administrative resources, is facing a hard situation, the DERMASUR signed an agreement with the Department's Government and Municipalities to be able to pay the hiring of working men, fuel, spare parts for heavy machinery, with the budgets of the Department's Government, the Municipalities and in part by the FUDEÑE. In the future, it will be necessary to strengthen the committees of the zone's producers in order to be able to create an organization to be in charge of cleaning the channel periodically.

3) (Heavy Machinery, human resources 3,5 points)
The wearing of the heavy machinery is drastic, and most of the equipments have surpassed 6000 hours of use, therefore, it is very important to carry out the maintenance service. However, there are excellent mechanics and working men at the DERMASUR's own workshop, thus, technically there is no inconvenience. But, since most of the workshop's officers are hired, it represents an uncertainty factor. Regarding the people who work at the civil works, since they were officers from the moment of the end of the project, technically they have no problems.

4) (Environment 3,5 points)
There are many requests for the construction of drainage channels inside and outside the project's area, but there is a limitation regarding the elaboration of the program for new constructions. A basic study should be carried out for the future as well as an "Environmental Impact Study".

5) (Production Techniques 3,5 points)
After the end of the project, the DERMASUR has continued its orientation, with which it achieved the establishment of beekeepers and milk producers, thus creating an organized sales network. On the other hand, the sugar cane production is increasing through the organical cultivation method.

3-2 Factors that have promoted project

(1) In regard to the plan's content

• None

(2) In regard to the execution process

• In regard to the equipments, a complete equipment was supplied, such as the heavy machinery (backdiggers, bulldozers, motor graders, among others) for the transfer of the works construction techniques, such as water channels and drainage channels, thanks to which it has been possible to carry out the civil works in a smooth way.
• There is a repairing workshop of the DERMASUR located in the center of the project's area, and there are capable working men and mechanics. On the other hand, the fact that the spare parts can be bought in the in a simple and cheap way in the neighbouring countries (Brazilian products), has allowed to carry out the maintenance service of the heavy machinery and to continue with the works.
• The FUDEÑE was created at the end period of the project, based on the needs of the area, which turned into the driving force for the continuation of the DERMASUR project
• The counterparts who learned the construction techniques of infrastructures such as the drainage channel and the roads, continued carrying out the extension works, after the end of the project.
• The zone producers (small producers) have incorporated beekeeping and milk production, and adopted an organized stocking and delivery system, which has helped to increase the efficiency.
• The management of agricultural extension of the MAG in Pilar became part of the project, which produced a high result that may cover from the area regarding the construction to the area of orientation for the diversification of the modalities of exploitation.

3-3 Problems and factors that were notorious

(1) In regard to the plan's content

• Due to the generalized lack of budget in the country, the transfer of the Ministry (MAG) is unstable and causes inconveniences, however, the civil works continue thanks to the support of the FUDEÑE, the Municipality and the Department's Government.
• It is hard to carry out the coordination between the FUDEÑE, the Department's Government and the diverse Municipalities, and in particular, between the MAG and the FUDEÑE, a disagreement took place, nevertheless, it is foreseen to sign an agreement to promote the DERMASUR among all the linked institutions, elaborating a new agreement acuerdo that contains the lessons learned from failures in the past.

(2) In regard to the execution process

• The zone inhabitants request new civil works (channels and roads) without considering the impact caused on the environment, however, the staff related to the DERMARSUR executes the civil works from the acquired experiences at the model zone, and pursuant to the result of the study on the environmental impact.
• The use time of most of the heavy machinery for the works (backdiggers, bulldozers, motor graders, among others) has surpassed 6000 hours, and have reached their life-span, however, with the effort of the capable officers of the DERMASUR, it will be possible to continue using the heavy machinery for a while through the change of the spare parts.
• The Agricultural Research Management (ARM) and the Management of Agricultural Extension (DEAG), despite concerning to the same Ministry than the DERMASUR project (coordinated by the Planning General Management) were not able to coordinate their activities, however, there were no particular inconveniences at the project's site, since both for the ARM as well as for the DEAG, it was clear that the DERMASUR was in charge of the coordination.
• Despite establishing the beekeeping production and the milk production, there is no stocking and delivery center, however, they are creating the organization to be able to carry out the collective stocking and delivery, as well as the creation of committees by the zone's inhabitants.

3-4 Conclusion

(1) Impact:

With the overflow of the farming lands produced by the great overflow of 1983, roads cuts occurred and many of the producers were forced to abandon their lands. However, with the creation of drainage channels, roads were constructed (that joins Pilar with Gral. Díaz) and lands were recovered, thanks to which the number of producers returning to their lands has increased. The drainage handling techniques that were transferred during the execution period of the project were learned by the counterpart staff. The fact that the 147.8 km long channel constructed during the project's period was extended in 88.7 km with the own help of the Paraguayan part, makes us think that "the drainage infrastructure handling techniques" were satisfactorily transferred.
On the other hand, in regard to the diversification of the exploitation modalities, the number of beekeeping producing farms, milk producing farms, has increased, and lately, the introduction of the organic sugar cane cultivation has begun.

(2) Sustainability:

The bottleneck for the promotion of the DERMASUR project is the lack of operational resources, however it continues with the works through the support of the FUDEÑE, which was created at the end period of the project, 10 Municipalities, the Government of the Ñeembucú Department as well as through the support of the zone's producers.
On the other hand, there are mechanics and working men at the workshop of DERMASUR who work from the beginning of the project, and the fact that most of the equipments are still operational, makes us think that the operation of this workshop is of great relevance.

3-5 Recommendations

• It is important to create a system that will allow to settle in a safe way the costs of human resources and the administrative costs of the MAG's yearly budget, and therefore, regarding the political aspect, it will be important to create the way in order that the Ministry of Finance can understand the relevance of this project.
• The Department's Government and the Municipalities should include the operation cost in their yearly budget.
• Regarding the extension of the project's area, the civil works should be executed carrying out a previous study of the channel, a social/economical study, and an environmental impact study.
• To consider the incorporation of the credit system for the producers, as part of the support to the small producers.
• This project should be executed together both by the public and private sector.

(2) Recommendations to the JICA

• In case of project that incorporates infrastructure works at large scale, it is necessary to carry out a study on the environmental impact at the time of its design, and not just on the social and economical impact.

3-6 Lessons Learned

1) Executing the consideration of the environmental impact at the beginning of the project, this proyect, which is facing a constant extension, may alleviate the negative impacts to the environment with a broad vision.

2) In order to promote "the participation of the inhabitants" after the end of the project, it is necessary that the project achieves results at short term and visible, such as the case of the social and economical improvement through the construction of the channel.

3) It is necessary to analyze the number and volume of the equipments to be supplied, considering the cost of maintenance after the end of the project.

4) In order to assure the sustainability through the "participation of the inhabitants" after the end of the project, it is necessary to incorporate from the beginning of the project to the large producers who count with a financial capacity (to solve costs), and not just to the small producers.

3-7 Subsequent assistance State

1) During the H15 fiscal year, the spare parts for heavy machinery were supplied for the amount of US$50,000.00 as a project of subsequent assistance. (Executed in March of the H16 fiscal year).

2) In October of the past year, arrived the senior volunteer for heavy machinery for the workshop of the DERMASUR. (Dispatch period: October of the H15 fiscal year to October of the H16 fiscal year).