Republic of Armenia: North West agricultural services project - IOE
Republic of Armenia: North West agricultural services project
The findings, recommendations and follow-up actions from the Completion Evaluation of the North West Agricultural Services Project that have been agreed by the members of the Core Learning Partnership created to guide the evaluation are described below .
Only some farmers using water from schemes rehabilitated through NWASP are fully aware of the roles and responsibilities of the various parties involved in the delivery and use of water. As a result, there are misunderstandings that could undermine future relationships between water users, water supply companies and the Government of Armenia (GOA). These could block the potential gains for Government and for water users from decentralised irrigation management by water user associations.
Recommendation. Fully transparent information on the ways that water fees are set and allocated among concerned agencies should be made available to all water users through water user associations.
Follow-up
-
GOA will support repeated widespread dissemination of clear information to water user associations on water user fees and the role and responsibilities of various parties in fee collection and use. The Center for Technical Assistance to Water Users Organisations (CTA, established within the ASP framework), on behalf of the Ministry of Agriculture (MOA) will propose and collaborate with the relevant agencies of the State Water Management Committee to implement this recommendation.
The long run sustainability of rehabilitated irrigation schemes will depend on the sustainability of arrangements for covering their operation and maintenance. To plan sustainable long-term arrangements the GOA needs to know the true cost to the Armenian economy and to the Armenian Government of the operation and maintenance of on-farm, secondary and main schemes.
Recommendation. A study of the cost of water delivery should be immediately undertaken, and the results of this study should be disseminated to all interested parties.
Recommendation. Appropriate amendments should then be made to the Water Code providing special conditions for water tariff definition with approval by Parliament on an annual basis.
Follow-up
-
MOA should present a proposal to GOA to immediately undertake a study, by an independent organisation, of the cost of water delivery in a cross-section of irrigation schemes. This process should provide for the involvement of interested national stakeholders.
-
Should GOA agree to this proposal, IFAD will seek to assist GOA in mobilising grant funds to finance such a study.
Recommendation. On the basis of the results of the study there should be a: (i) review of government policies on water fees and on the allocation of investment resources to irrigation infrastructure; (ii) review the capacity, on a regional basis, to cover costs of irrigation; and (iii) examine the abilities of individual farmers to pay water charges.
Follow-up
-
MOA will present a proposal to GOA to review policies of water tariff definition and investment in irrigation infrastructure on the basis of the water study.
-
IFAD will review ASP design and implementation in light of study findings.
-
MOA will present a proposal to GOA for a transparent methodology of water tariff calculation.
Grassroots organisations have demonstrated the capacity to undertake civil works at acceptable technical standards at low cost and in short time periods.
Recommendation. Current policies regarding use of loan funds for civil works should be changed to allow water user associations to supervise and undertake rehabilitation of their own schemes with technical backstopping and monitoring by concerned agencies and ASP.
Recommendation. In order to enhance the development and sustainability of water users organisations, the rules and regulations governing irrigation water supply and use should be revised to provide for equal legal rights for both contractual parties (supplier and user).
Recommendation. The Ministry of Agriculture should review irrigation norms on a regional and crop-specific basis.
Follow-up
-
ASP and concerned implementing agencies will consider more flexible arrangements for the implementation of civil works by grassroots organisations on irrigation schemes under their responsibility.
-
MOA will present a proposal to GOA to prepare new rules for water supply and use involving all interested parties so as to ensure equal rights and responsibilities.
-
MOA should review irrigation norms in a participatory manner and present revised norms for approval by GOA.
Conservative banking practices led to good performance by ACBA that provide it with a sound basis as a sustainable financial institution working in the rural sector. However, due to collateral requirements, needs for credit and other financial services among the rural poor are still largely unmet by ACBA.
Recommendation. New approaches to providing financial services (also including credit unions and clubs) to borrowers without collateral should be tested.
Follow-up
-
GOA, with IFAD assistance, will review potential new approaches to financial services delivery in the ASP framework.
Recommendation. ACBA should consider the potential to use real estate to help meet collateral requirements.
Recommendation. ACBA should consider reviewing the loan timing process, taking into account the agricultural production cycle as well as giving more consideration to the individual needs and requirements of borrowers.
Follow-up
-
ASP, in collaboration with ACBA, will review policies for the use of real estate to help meet collateral requirements, the loan timing process and increased attention to the requirements of individual borrowers.
There was disagreement about advantages and disadvantages of imported versus local seed varieties. This prevented farmers and others from having the possibility to select the most appropriate certified seed varieties.
Recommendation. Widespread easily understandable information about the benefits of using imported and locally produced certified seed should be made available to farmers and seed producers.
Recommendation. Seed producers should be involved in helping to select varieties for testing, eventual reproduction and certification.
Follow-up
-
MOA extension and seed certification services will disseminate clear information about the uses, availability and benefits of certified seeds.
Some seed grower groups in Lori worked together to source new seed for trials and to produce second generation seed and to market it.
Recommendation. Grassroots seed producer organisations, based on the models of Vardablur and Amrakits, in Lori should be initiated at district level in each marz to allow growers to share technical and market information. Participants in these organisations should have access to the necessary land, technical skills and financial resources to be successfully involved in seed production activities.
Follow-up
-
MOA will explore ways of supporting collaboration among farmers in seed production and marketing in the future. It will consider the possibility of working with Seed Producers Associations for this purpose.
Community development activities such as the rehabilitation of drinking water systems were successful and well regarded by beneficiaries. Yet changes were made during the implementation of NWASP whereby lending to entrepreneurs was adopted to generate economic activity and employment as a means of achieving community development. This brings about an effective shift from creation of public goods (where access is not restricted and direct beneficiaries are numerous) to creation of private goods (where access is restricted and direct beneficiaries are relatively few). It not only narrowed the range of NWASP beneficiaries, but it also reduced project outreach to women that the component was designed to help.
Recommendation. The approach to the use of grant financing to reduce poverty through community development should be reviewed and broadened, with gender impact in mind. If communities wish to focus on employment generation, for example, a range of activities such as training and assistance to entrepreneurs in preparing business plans, accessing formal institutions, or investing remittances could be considered.
Follow-up
-
Following one year of ASP implementation, IFAD will conduct a detailed review of the proposed approach for community economic projects to be implemented through Aniv Foundation. On the basis of these results, IFAD will decide whether to continue the approach.
Grassroots organisations such as the civic action groups, water user associations and village associations were very good mechanisms for widespread people's involvement and ownership of government investment activities in local communities. They offer a very promising means for ensuring sustainable benefit streams from investments and for communities to help themselves develop and take on other tasks in future.
Recommendation. The NWASP model of developing and supporting grassroots organisations to assess people's priorities, plan, and implement activities should be used wherever possible. Local NGOs could be assigned the responsibility for working with projects to develop these grassroots organisations.
Follow-up
-
MOA will present a proposal to Government to support the development of grassroots organisations in implementation of future public sector investments for development of goods and services provided by the public sector.
-
GOA and IFAD will consider the potential role for local NGO's in developing grassroots organisations.
In many cases, farmers were not clear about project objectives, the relationship between various project activities and the connection between the project and normal government programmes.
Recommendation. All projects should include communications programmes to provide target groups with information they need to understand project objectives and activities. Widespread information campaigns should start during project design and continue throughout implementation.
Follow-up
GOA and IFAD will conduct widespread information campaigns explaining project objectives, activities and institutional arrangements in simple terms that can be easily understood
The IFAD loan for the NWSAP project was disbursed ahead of schedule and most project targets have been fully achieved, if not surpassed. For this reason IFAD is considering closing this project. However, the evaluation found that the grassroots organisations needed to sustain the benefits from new services and newly rehabilitated infrastructure are not yet fully developed.
Recommendation. The impact and effectiveness of NWASP activities should be monitored up to the original planned completion date of December 2002. This should focus on the performance and sustainability of the grassroots organisations created through NWASP.
Follow-Up
-
In the context of the ASP, GOA will also follow activities of grassroots organisations in NWASP communities, with a view to incorporate information and lessons learned about their performance in planning and implementation of ASP.
-
In the context of ASP, IFAD and GOA will plan the phasing of physical works and services to more closely match the development of community organisations and institutions that will be expected to manage them.
IFAD direct supervision of loans
No system has been created within IFAD that responds to the concerns of IFAD governing bodies that IFAD monitor the costs of direct supervision.
Recommendation. There should be a monitoring system to analyse financial and human resource costs to IFAD of direct supervision.
Follow-up
-
The IFAD Task Force on Direct Supervision will work with the IFAD Controller to set up a system for monitoring costs.
Knowledge acquired by IFAD staff and consultants during the direct supervision of NWASP was not captured or explicitly shared with others.
Recommendation. There should be explicit ways of sharing, within IFAD the knowledge that it acquires through direct supervision.
Follow-up
-
The IFAD Task Force on Direct Supervision will devise a way for individuals who are involved in direct supervision to share the knowledge they acquire and exchange views with others.
Concentration of all effective decision-making power concerning the lending strategy, project designs, project supervision, project monitoring, approval of disbursements and approval of amendments in one person leads to time saving in information gathering, decision making and action. However, no single perspective is without some limitation.
Recommendation. A system of checks and balances should be created whereby responsibility for design, supervision, monitoring, and approval processes are shared rather than vested in a single staff member as at present.
Follow-up
-
In the context of the general review of the project cycle, IFAD Management will consider the possible advantages of sharing responsibilities for design and implementation of directly supervised projects within IFAD.