ICRR 10581 Report Number : ICRR10581 ICR Review Operations Evaluation Department 1. Project Data : Date Posted : 05/17/2000 PROJ ID : P008065 OEDID: OEDID : C2248 Appraisal Actual Project Name : Agricultural US$M ) Project Costs (US$M) 4.3 2.6 development support project Country : St. Kitts & Nevis Loan/ US$M ) Loan /Credit (US$M) 3.0 2.5 Sector, Major Sect .: Agro-Industry & US$M ) Cofinancing (US$M) 0.8 0.0 Marketing, Agriculture L/C Number : C2248; L3332 FY ) Board Approval (FY) 91 Partners involved : UNDP, FAO Closing Date 06/30/1999 06/30/1999 Prepared by : Reviewed by : Group Manager : Group : John R. Heath Alain A. Barbu Gregory K. Ingram OEDST 2. Project Objectives and Components a. Objectives The project aimed "to improve the pace and diversity of St . Kitts and Nevis's agricultural development through (i) changes in the incentive framework, aimed at providing security of land ownership and migrant labor to work in agriculture (particularly sugar); (ii) improvement in agricultural support services and the Government's agricultural planning capacity; and (iii) major changes in the operation of the state -run sugar industry, including its divestiture in the second year of the project " b. Components Technical assistance for agricultural development (including leasehold titling, cadastral mapping, land surveying, extension and agricultural planning ) and the sugar industry (including interim management and preparation for divestiture). c. Comments on Project Cost, Financing and Dates None 3. Achievement of Relevant Objectives : Overall, the project did not meet its objectives . However, (i) a Land Development Act introduced 35-year renewable leases, replacing one-year leases for farm land; ii) the provision of vehicles and communications equipment helped increase the outreach of agricultural extension; and (iii) management of the sugar industry improved during the first two years of implementation----but it was not divested as planned . 4. Significant Outcomes /Impacts : The sugar industry cash flow broke even in 1992 ("for the first time in many years") owing to tighter financial management; but this upturn was shortlived . The organization and management study led to more efficient organization of the Department of Agriculture and the Land Development Corporation . 5. Significant Shortcomings (including non -compliance with safeguard policies ): Project identification and design were seriously flawed . There was little demand for long-term leases (only 12 were issued), mainly because tenants felt secure under the previous tenure arrangements, and because they perceived the cost (they would have to pay for boundary surveying ) as too high in relation to the expected return . There was no expansion of the cultivated area, or crop diversification (away from sugar). There were few appropriate crop technology packages available . Tenants derived much of their income off -farm and showed little interest in agricultural development. No agreement was reached on divesiture of the sugar industry . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Unsatisfactory Highly Unsatisfactory Design of this project failed to take account of country priorities and outcome was therefore doomed from the start . Institutional Dev .: Partial Modest Same rating, different terminology Sustainability : Unlikely Unlikely Bank Performance : Deficient Highly Unsatisfactory Same rating, different terminology Borrower Perf .: Deficient Highly Unsatisfactory Same rating, different terminology Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : (a) Need for full stakeholder participation at the identification and design phase to ensure that project is relevant to client needs. (b) Need for an effective monitoring and evaluation system . 8. Audit Recommended? Yes No 9. Comments on Quality of ICR : A very concise and soundly argued ICR, covering all relevant issues .