The project performance assessment of the Rural Development Programme for Mountainous and Highland Areas focused on agricultural production, small infrastructure and project management. After facing great challenges in the implementation process between 2001-2007, IFAD suspended its loan and redesigned the project around a single component (small infrastructure). This was key in ensuring a successful implementation during the subsequent phase (2008-2011), fostering the renovation and construction of 63 kilometres of community road and 14 bridges in mountainous areas, which improved general accessibility and quality of life for local beneficiaries. At the same time, this project performance assessment highlighted the presence of serious sustainability issues, together with little evidence as regards to the project’s impact on farm productivity and household incomes.