Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 16682

IMPLEMENTATION COMPLETION REPORT

BANGLADESH

THIRD FISHERIES PROJECT(Credit 2146-BD)

June 12, 1997

Agriculture and Natural Resources DivisionCountry Department ISouth Asia Region

This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed without

World Bank authorization.

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CURRENCY EQUIVALENTS

Currency unit Taka (Tk)At Appraisal (March 1990): Tk 32.27 = US$1.00Currently (June 1997): Tk 43.65 = US$1.00

WEIGHTS AND MEASURES

1 meter (m) = 1.1 yards1 hectare (ha) = 2.47 acresI metric ton (m ton) = 2,205 pounds1 kilogram (1 kg) = 2.205

FISCAL YEAR OF BORROWER

July I - June 30

ABBREVIATIONS AND ACRONYMS

BWDB - Bangladesh Water Development BoardBMCs - Beel Management CommitteesDOF - Department of FisheriesERR - Economic Rate of ReturnFRI - Fisheries Research InstituteFAO/CP - Food and Agriculture Organization/Cooperative ProgramGOB - Government of BangladeshICR - Implementation Completion ReportIDA - International Development AssociationMTA - Management Technical AssistanceMTR - Mid-term ReviewMOFL - Ministry of Fisheries and LivestockNFMP - New Fisheries Management PolicyNGO - Non-governmental OrganizationO&M - Operation and MaintenanceODA - Overseas Development AdministrationSAR - Staff Appraisal ReportSTA - Social and Technical AssistanceTFP - Third Fisheries ProjectUNDP - United Nations Development Program

Vice President :Mieko NishimizuActing Director :Fakhruddin AhmedDivision Chief/Manager :Ridwan AliStaff Member :Benson Ateng

IMPLEMENTATION COMPLETION REPORT

,BANGLADESH FOR OFFICIAL USE ONLY

THIRD FISHERIES PROJECT(Credit 2146-BD)

Table of ContentsPage No.

PREFACE .u....................i

EVALUATION SUMMARY ......................................... iii

PART I - PROJECT IMPLEMENTATION ASSESSMENT

A. Statement/Evaluation of Objectives ......................................... IB. Achievement of Objectives ......................................... 2C. Major Factors Affecting the Project .......................................... 6D. Project Sustainability .... 6.....................................6E. Bank Performance .......................................... 7F. Borrower Performance .......................................... 9G. Assessment of Outcome .......................................... 0H. Future Operation ......................................... 101. Key Lessons Learned .......................................... 11

PART II- STATISTICAL TABLES

Table I Summary of Assessments .12Table 2 Related Bank Loans/Credits .13Table 3 Project Timetable .14Table 4 Loan/Credit Disbursements: Cumulative, Estimated and Actual .15Table 5 Key Indicators for Project Implementation .16Table 6 Key Indicators for Project Operation .16Table 7 Studies Included in Project .17Table 8A Project Costs .......................................... 19Table 8B Project Financing ......................................... 19Table 9 Economic Costs and Benefits ......................................... 20Table 10 Status of Legal Covenants ......................................... 21Table 11 Compliance with Operational Manual Statements ............. ............................ 24Table 12 Bank Resources: Staff Inputs ......................................... 24Table 13 Bank Resources: Missions ......................................... 25

APPENDICES

A. Mission's Aide-Memoire ......................................... 26B. Borrower's Evaluation ......................................... 39

MAM: IBRD No. 21887

This document has a restricted distribution and may be used by recipients only in theperformnance of their official duties. Its contents may not otherwise be disclosed withoutWorld Bank authorization.

ii

IMPLEMENTATION COMPLETION REPORT

BANGLADESH

THIRD FISHERIES PROJECT(Credit 2146-BD)

Preface

This is the Implementation Completion Report (ICR) for the Third Fisheries Project in Bangladesh,for which Credit 2146-BD in the amount of SDR34.6 million equivalent was approved on May 29, 1990and made effective on January 8, 1991.

The credit was closed on December 31, 1996 (original date) except the civil works category thatwas extended to March 31, 1997. SDR 22 million was canceled from the credit on January 27, 1996 atthe Borrower's request. Final disbursement is expected to take place on July 31, 1997, at which time anyundisbursed amount will be canceled. Cofinancing for the project was provided by ODA and UNDP,with grants of about US$4 million equivalent from each.

The ICR was prepared by a mission led by Benson Ateng (SAIAN) of the South Asia Regionand reviewed by Messrs. Ridwan Ali, Division Chief, and Henry Gassner, Acting Project Advisor.Comments received from the Borrower and cofinanciers were incorporated into the final version.

Preparation of this ICR was begun during the Bank's final supervision/completion mission forthis purpose in November/December 1996. It is based on material in the project file. The Borrowercontributed to preparation of the ICR by commenting on the draft ICR and preparing its own evaluationof the project. A copy of the Aide Memoire of the final supervision/completion mission and theBorrower's completion report are attached as Appendices A and B, respectively.

Mission members also included Messrs. Imtiazuddin Ahmad, Ronald Zweig, Lars Soeftestad (IDA); andIan Payne (ODA-funded consultant).

IMPLEMENTATION COMPLETION REPORT

BANGLADESH

THIRD FISHERIES PROJECT(Credit 2146-BD)

Evaluation Summary

Introducto

i. Third Fisheries Project (TFP) was in response to the Government's request to IDA to assist infinancing fisheries development in Western Bangladesh. IDA's operations in the sector started in the mid-seventies with the Oxbow Lakes Fishery Project (Cr. 0890) followed by Shrimp Culture Project (Cr. 1651).TFP incorporated lessons learned from previous projects. It also benefited from the findings of fisheriessector reviews carried out by IDA in 1983 and 1990. The project focused on stocking floodplains withfingerlings, developing infrastructure for coastal shrimp culture, advancing other fisheries activities,improving fisheries institutions, promoting fisheries research, and providing technical assistance andtraining.

Prject Obectives

ii. OiJectives: TFP supported a wide range of objectives (para 1):

(1) Increasing the incomes of fishing families, particularly of the poor. and producing fish and shrimp fordomestic consumption and export through: (i) improving floodplain fisheries management andpromoting aquaculture, (ii) making improvements in public infrastructure (improved polderembankments, sluices and foot bridges over water channels) on poldered land already under shrimpculture, (iii) assistance to under-privileged groups including women and assisting small land owners togo into shrimp production themselves rather than lease their land to the rich for shrimp farning, and (iv)carrying out of other fisheries development activities, including studies and provision of extensionservices at the District and Upazila levels for fresh water shrimp production and other fisheries activitiesin ponds, lakes, rivers, and minor floodplains.

(2) Supporting the fisheries development program in the West (the proiect area) with emphasis onprivate sector participation through involving the private sector in fingerling production and floodplainstocking.

(3) Accelerating the expansion of fish production in the floodplains through: (i) stocking of floodplainswith fingerlings, (ii) better fisheries management, and (iii) carrying out research projects, includingecological assessment, fish food, fish disease, fishing gear in floodplains, and catch effort parameters incoastal fisheries.

(4) Strengthening sectoral institutions through: (i) logistical support and technical assistance to theDepartment of Fisheries (DOF), including on-the-job, in-service, and overseas training in managementand fisheries related areas, and construction and rehabilitation of office and training facilities and(ii) technical assistance to DOF, Fisheries Research Institute (FRI), and Bangladesh Water DevelopmentBoard (BWDB) for carrying out technical and socio-economic studies, organizing shrimp farmers andfishers.

iviii. Special covenants or agreements: These included provision of substantial technical assistanceand reliance on the private sector to alleviate possible delays in implementation which may arise fromfailures in management; intensive monitoring; and studies which would enable the formulation of a viablecost recovery policy. There was also a special cost recovery covenant and an agreement to divest somepublic sector fish seed farms (para 26 ).

iv. Evaluation: The objectives were mutually supporting, clear, realistic and important forBangladesh, a country that depends on fisheries for 80% of animal protein intake and 7% of total proteinsupplies and 11% of export earnings. They reflected the Government's and the Bank's developmentstrategy for the fisheries sector -- increased fish production with particular emphasis on povertyalleviation and on export potential. Project design recognized the declining resources of the floodplainfisheries and instituted measures to reverse the situation. Research funded under the project had directbenefits. The project was designed to redress some of the environmental problems and address someenvironmental concerns in both floodplain fisheries and coastal shrimp culture. It also gave recognitionto under-privileged groups including women. While the project was complex and demanding for theimplementing agencies, the need for institutional strengthening was recognized and technical assistanceprograms were provided for in the design (paras 2, 3).

Implementation Experience and Results

v. Achievement of obiectives: Most of the objectives were achieved, albeit on a smaller scalethan originally envisaged; the ratings range from partial to substantial:

(1) Achievement of the objective of increasing the incomes of fishing families, particularly of the poor,was mixed. Reports indicate that all sections of the community benefited from the floodplains componentof the project. Initially, there was some inequity in the distribution of benefits with a high percentage notgoing to the targeted rural poor. However, following the mid-term review (MTR), with the introductionof NGOs, cancellation of leases giving fishing rights to more powerful segments of the community, andintroduction of taxation of "kuas" (pits which diverted floodplain fish to the landowners), there areindications of significant improvement in the distribution of benefits (para 4, 8).

(2) Production target for the floodplains fisheries was substantially achieved. An average of eight-compared to the ten-fold increase in stocked species production indicated in the Staff Appraisal Report(SAR) was regularly attained. The project has demonstrated the technical, financial, and economicfeasibility of floodplain stocking with fingerlings. While the 43,500 ha of floodplains stocked in 1996was 43.5% of SAR target, it was 72.5% of revised target established during the MTR. The shortfall wasdue to non-availability of the minimum floodplain area prescribed in the SAR, implementation delaysdue to late recruitment of NGOs in the floodplain areas, environmental factors, and delays inimplementation of the New Fisheries Management Policy. Re-estimated average economic rate of return(ERR) for this component is nearly 40% (compared to an average ERR of over 100% in the SAR). Thedifference is explained by the higher fingerling costs than anticipated at the time of appraisal (settling ataround Tk 84/kg compared to SAR figure of Tk 45/kg), poor performance of silver carp (dropped in1994), poor performance of Haiti Beel (dropped in 1994), 1992 drought, increase in NGO costs, andreduced stocking area. Increase in shrimp production is yet to be realized since implementation startedlate and construction of shrimp infrastructure is not yet completed. However, about 10,400 ha ofshrimp/rice culture farms of the planned 13,000 ha were taken up under the project. There has been anoverall shift toward small landowners actively taking up shrimp farming with the overall percentage ofleasing to outsiders down from 66% to 47%, with active involvement of owners up from 34% to 53%.Projected incremental benefits with completion of infrastructure and anticipated reduction of shrimpdisease within one year show the re-estimated ERR still to be at least 20% which is comparable to theSAR estimate. Results of the Other Fisheries component have been mixed. Some sub-projects workedwell with clear ownership by the beneficiaries, helping to assure sustainability, while others are notsucceeding as well due to technical and social problems which can be attributed in part to DOF's lack of

v

required experience in dealing with the social complexities of such initiatives during the early stage.DOF officers have gained experience in preparing, planning and implementing projects with socio-economic objectives through direct interaction with women's groups (paras 5-8, 14).

(3) The objective of supporting the fisheries development program in the West (the proiect area) withemphasis on private sector participation has been substantially achieved through involving the privatesector in fingerling production and floodplain stocking. During the project, some 2,600 mt of stockedfingerlings were supplied by contractors to the floodplains. Overall, contractors delivered over 80% oftheir contractual obligations and showed progressively improved performance by attaining 95% in 1995.Fingerling quality was assured by DOF inspection procedures (para 9).

(4) The objective of accelerating the expansion of fish production in the floodplains has beensubstantially achieved through stocking of floodplains with fingerlings, better fisheries management, andcarrying out of research projects. Stocking has accelerated production of stocked species. Observedincrease in production of non-stocked species is attributed in part to better management of floodplainfisheries. Despite a slow start, the research objectives were achieved, and the results were applied byDOF to project operations. A major activity included support to FRI to conduct targeted applied researchon availability of fish food, impact of gear selectivity on stocked species and fish diseases. Disseminationof research findings at the fishing community level has been achieved through extension and productionand circulation of simple booklets in the national language (para 10).

(5) Achievement of the objective of strengthening sectoral institutions has been satisfactory. Thesubstantial management element of this project, particularly via the ODA-funded Management TechnicalAssistance (MTA) component, laid emphasis on improved project management capacity within DOF,particularly in the fields of procurement, contract management, and intensive monitoring. Over theduration of the project, there were increasing numbers of women fisheries officers operating at fieldlevel, facilitating provision of technical assistance to women fishers. Further, MTA has beeninstrumental in creating innovative enhancement in DOF's administrative capacity at the local level. Anunusual feature was the equal emphasis on regional as well as central capacity. Regional DOF staffgained confidence in using a computerized stocking management system, and introduction of the systemgreatly assisted production monitoring, record keeping, and timely reporting. Similar gains were madecentrally, but overall capacity for coordination and information management at all levels still requiresstrengthening. UNDP-funded Social and Technical Assistance (STA) was valuable in the areas ofproduction monitoring, research, shrimp farm planning, and social activities by NGOs (paras 11-12).

vi. Sustainability: Success of the project in achieving its major objectives is already manifest.However, the probability that the project will maintain the achievements is uncertain. For example,sustainability of the achievements of the floodplain stocking component is contingent upon continued NGOsupport and Government stocking until the beneficiaries have developed the capacity to do so themselves.The Government has initiated an evaluation of the public stocking of floodplains and has indicated thatcontinuation of the public stocking program would depend on the outcome of the evaluation. Innovationsdeveloped on a pilot scale in the later years of the project, to increase self-management by floodplainfisheries groups and operation and maintenance (O&M) responsibility by groups of shrimp beneficiariespoint a way to improved sustainability. A planned follow-on project is expected to continue and/or expandsome of the activities under the project (TFP was conceived as the first in a series of sector-wide fisheriesprojects planned for IDA support). This is expected to enhance the probability that the project will maintainthe achievements already generated (paras 17-19).

vii. Financing and implementation timetables: The IDA credit of SDR34.6 million wassupplemented by an ODA grant of US$4.3 million for management technical assistance and a UNDP grantof US$4.2 million for social and technical assistance. SDR22 million was canceled from IDA credit onJanuary 27, 1996 at the Borrower's request. This was due to (i) an over-estimate of area suitable forstocking under the Floodplain Fisheries Component (para 14); (ii) an innovative re-design of the Coastal

viShrimp Culture Component that resulted in substantial cost savings; (iii) a 20% shortfall in the planned areaof shrimp farms to be developed (para 15); and (iv) exchange rate changes substantially increasing the Takaequivalent of the SDR (para 13). The IDA credit closed on December 31, 1996 as planned except for thecivil works category that was extended to March 31, 1997 to allow for completion of construction of aFisheries Academy and for correction of some problems in shrimp infrastructure (Tables 3, 4, 10). Thedeadline for receipt of withdrawal applications for this category is July 31, 1997, at which time anyundisbursed amount from the current balance of US$2.7 million equivalent (SDRI .96) will be canceled.

viii. Key factors affecting achievement of major objectives: The project's achievements weremainly due to the Government's commitment to the objectives of the project, intensive NGO involvement,and good cooperation between the donors, the Government and NGOs. Flexibility by the Borrower and theBank in adjusting project design in the light of experience gained in the course of implementationcontributed significantly to the success. Negative factors included less than anticipated availability offloodplains of the minimum size prescribed in the SAR. There were also delays in appointing NGOs in thefloodplain areas. Environmental factors also reduced the area stocked with Halti Beel dropped from theprogram because of low productivity and the expected stocking of Beel Dakatia prevented due to lack ofsufficient water. The shortfall in shrimp area developed was due to a late start as a result of delays inappointment by BWDB of the design consultants. In addition, a highly virulent white spot shrimpdisease outbreak in early 1996 had a devastating effect on shrimp production. A major, innovative re-design of the component to reduce land acquisition through optimizing the use of existing canals in thearea increased benefits of this component. The shortfall in achieving the objectives of other fisheriescomponent was due to lack of experience among DOF officers to formulate acceptable proposalsrequired by the project with an emphasis upon poverty alleviation (paras 14-16).

ix. Bank and Borrower Performance: The Bank is rated satisfactory for identification, deficientfor preparation and appraisal, and satisfactory for supervision (paras 20-24, Table 1.C), while the Borroweris rated satisfactory on preparation and implementation and deficient for covenant compliance (paras 25-28,Table I.D). The Borrower and the Bank succeeded in adjusting the project during implementation toovercome some deficiencies in preparation and appraisal.

x. Outcome: The project's outcome was satisfactoIr in view of achievement of most of its majorobjectives (para 28). In addition, the re-estimated ERR is about 40% and 20% for the floodplain and shrimpcomponents.

Summary of Findings, Future Operations. and Key Lessons Learned

xi. Findin.gs: A number of findings stand out (paras 4-12): (1) The operation proved that it istechnically, financially, and economically feasible for Bangladesh to enhance floodplain fisheriesproduction through stocking the floodplains with fingerlings and that with better management, productionof non-stocked species can also increase. (2) The operation proved that power structures and fishingpatterns that have been in place for many years cannot be changed overnight. However, empowerment ofthe fishermen through NGO motivation and group formation can enable them to stand up to the strongersegments of the community for their fishing rights. (3) Implementation of the shrimp component showedthat it is possible for small and medium scale landowners to produce shrimp economically throughimproved extensive and more environmentally appropriate methods, and that, with some ingenuity, it isfeasible to design some projects to avoid or minimize land acquisition which is a major cause of projectimplementation delays in Bangladesh. (4) The failure to involve beneficiaries of the shrimp componentfrom the initial stages and planning for their involvement in O&M, is expected to make cost recovery moredifficult. (5) The operation confirmed that it is feasible to involve women in some fishing activities inBangladesh.

xii. Future operations: In the final phase of the project a series of participatory workshops, for thefloodplain component, which included representatives of all stakeholder groups, were held to arrive at a

viimutually agreed master work plan for sustainable stocking into the future. This is a 29 step action plan forco-management, including technical, organizational and licensing procedures. The key element is the fullyrepresentative Beel Management Committees (BMCs) which already exist in the project stocking areas.Fishermen and NGOs are already included in the stocking and checking procedures and all decisions aremade through the BMCs. The plan lays out the rules and responsibilities of all parties into the future,including increased contributions by its beneficiaries of the stocking process. Plans are underway tointroduce beneficiary group responsibility for O&M of shrimp infrastructure. There are plans for FR] tocontinue its inland fisheries research initiated under the project. FRI staff and operating costs may becovered by the revenue budget or by contract research financing from the IDA-assisted AgriculturalResearch Management Project. In the case of Other Fisheries component, DOF plans to continue providingtechnical guidance to the ongoing sub-projects as part of their regular extension duties in the project areas.

xiii. Lessons: Five main lessons were learned: (1) Stakeholders (including beneficiaries) should beinvolved from the planning stage of the project; (2) Mechanisms for cost recovery and/or sharing should beagreed with all concerned during project preparation; (3) NGOs are more effective than public sectoragencies in motivation and formation of beneficiary groups. Involvement of NGOs, particularly localNGOs, for the floodplain component proved to be a very effective way of mobilizing and organizing thebeneficiaries into groups to help them take advantage of increased value of a common property resource;(4) Adjustments in project design during implementation can play an important role in achieving success.These adjustments included reductions in project size, increased roles for NGOs, changes in floodplainstocking patterns, development of a community-based floodplain management program, which basicallyevolved in the course of project implementation, and development of a more effective shrimp infrastructureprogram, based on existing canals, instead of land acquisition; and (5) Untested concepts, such as stockingopen water bodies and other fisheries programs, should be tried out first at a pilot level. (para 33).

IMPLEMENTATION COMPLETION REPORT

BANGLADESH

THIRD FISHERIES PROJECT(Credit 2146-BD)

PART I - Project Implementation Assessment

Proect Identiy

Name: THIRD FISHERIES PROJECTCredit: Cr. 2146-BD

RVP Unit: South AsiaCountry: BANGLADESH

Sector: Agriculture and Natural Resources Operations DivisionSub-sector: Fisheries

Bakground

A. Statement/Evaluation of Objectives

1. The project was designed to support a sectoral development process aiming at:

(a) increasing the incomes of fishing families, particularly of the poor. and producing fish and shrimp fordomestic consumption and export through:

- improving floodplain fisheries management and promoting aquaculture,

* making improvements in public infrastructure (improved polder embankments, sluices andfoot bridges over water channels) on poldered land already under shrimp culture,

* assistance to under-privileged groups including women and assisting small land owners togo into shrimp production themselves rather than lease their land to the rich for shrimpfarming, and

* carrying out of other fisheries development activities, including studies and provision ofextension services at the District and Upazila levels for fresh water shrimp production andother fisheries activities in ponds, lakes, rivers, and minor floodplains;

(b) supporting the fisheries development program in the West (the proiect area) with emphasis onprivate sector participation through:

* involving the private sector in fingerling production and floodplain stocking;

(c) accelerating the expansion of fish production in the floodplains through:

* stocking of floodplains with fingerlings,

2* better fisheries management, and

* carrying out (by Fisheries Research Institute) research projects, including ecologicalassessment, fish food, fish disease, fishing gear in floodplains, and catch effort parametersin coastal fisheries; and

(d) strengthening sectoral institutions through:

* logistical support and technical assistance to the Department of Fisheries (DOF), includingon-the-job, in-service, and overseas training in management and fisheries related areas, andconstruction and rehabilitation of office and training facilities,

* technical assistance to DOF, Fisheries Research Institute (FRI), and Bangladesh WaterDevelopment Board (BWDB) for carrying out technical and socio-economic studies,organizing shrimp farmers and fishers, and

* revitalized fisheries administration.

2. Though many, these objectives were clear, realistic and important for Bangladesh. Theyappeared important for a country that depends on fisheries for 80% of animal protein intake and 7% oftotal protein supply, and 11% of export earnings. They reflected the Government's and the Bank'sdevelopment strategy for the fisheries sector -- increased fish production with particular emphasis onpoverty alleviation and on export potential. For subsistence part-time fishermen, fish is often the onlysource of protein, essential minerals, and vitamins through open access fishing from the decliningresources of floodplain fisheries. A concerted and systematic effort was therefore needed to acceleratethe development and realization of the country's potential fisheries resources in a sustainable manner.The objective of sustainable development was implied but not stated explicitly

3. The project design recognized the declining resources of the floodplain fisheries and institutedmeasures to reverse the situation. Research funded under the project had direct benefits. The projectwas designed to redress some of the environmental problems and address environmental concerns in bothfloodplain fisheries and coastal shrimp culture. It also supported under-privileged groups includingwomen. While the project was complex and demanding for the implementing agencies, the need forinstitutional strengthening was recognized and technical assistance programs were provided for in thedesign. Emphasis on regional management was appropriate. Quantifiable performance indicators wereuseful for tracking the project's performance. A system for monitoring and evaluation was provided andused in fine-tuning the rates, size, and species composition of fingerling stocking. The project was alsoprescriptive, for example with regard to stocking procedures and cost recovery rates, without giving therationale for the prescriptions. The scale of the floodplain stocking component, which employedpreviously untested concepts, should have been sized as a pilot. Project design was, however, flexibleand made it possible to make adjustments in the course of project implementation.

B. Achievement of Objectives

4. Performance on increasing incomes of fishermen, particularly of the poor fishermen, has beenmixed. A number of socio-economic surveys have been undertaken to ascertain how benefits have in factbeen distributed. Difficulties of defining and identifying the various target groups as well as measuring

3quantitatively how much each group benefited not withstanding, reports2 indicate that all sections of thecommunity benefited from the project. Initially, there was some inequity in the distribution of benefitswith a high percentage not going to the targeted rural poor. The problem was identified in the course ofproject implementation (some social impact and participatory analysis had been done during projectpreparation, but the Bank's emphasis on these issues was not as strong as it is now) and actions were takenduring Mid-term Review (MTR) to address the problem. A decision was made to introduce more NGOsinto the floodplain stocking activities. There were, however, long delays in contracting the NGOs who didnot start work until November 1995. However, with NGO intervention in later years, there are indicationsof significant improvement in the distribution of benefits. Other actions to improve distribution of benefitsincluded cancellation of leases that gave fishing rights to the more powerful segments of society,introduction of the New Fisheries Management Policy (NFMP) which improved direct access to floodplainfisheries by the bonafide fishing community and which based fishing license fees on capacity and efficiencyof fishing gear, and treated "kuas" (fish pits) as fishing gear subject to taxation. However, cancellation ofleases does not in itself ensure access to the water body by landless fishermen and other disadvantagedgroups. The NGOs proved effective in organizing the target groups to improve access. The above strategychallenged the existing power structures and fishing patterns that have been in place for many years andsucceeded in improving access to all interest groups.

5. The objective of increasing fish production through stocking and better management offloodplaina has been substantially achieved. A total incremental production of 20,000 mt of stocked fishwere produced. An average of eight- compared to the ten-fold increase in stocked species productionindicated in the Staff Appraisal Report (SAR) was regularly attained.3 The continuous evaluation andmodification of the stocked species mixture used proved a significant factor in attaining the sustainedhigh incremental production. The non-stocked species' diversity and productivity were found to keeppace or exceed the baseline condition. The project has demonstrated the technical, financial, andeconomic feasibility of floodplain stocking with fingerlings. While the 43,500 ha of floodplains stockedin 1996 was 43.5% of SAR target, it was 72.5% of revised target established during the MTR. Theshortfall was largely due to less than anticipated availability of the minimum floodplain area prescribedin the SAR (para 14). Re-estimated average economic rate of return (ERR) for this component is nearly40% (compared to an average ERR of over 100% in the SAR). The difference is explained by the higherfingerling costs than anticipated at the time of appraisal (settling at around Tk 84/kg compared to SARfigure of Tk 45/kg), poor performance of silver carp (dropped in 1994), poor performance of Halti Beel(dropped in 1994), 1992 drought, increase in NGO costs, and reduced stocking area. However, despitethe lower than projected figure, the 40% average ERR is well above the opportunity cost of capital (12%)in Bangladesh.

6. The obiective of increasing shrimp production and export through making improvements inpublic infrastructure on poldered land already under shrimp culture is being achieved. About 10,400 haof shrimp/rice culture farms of the planned 13,000 ha in the SAR were taken up under the project. Theshortfall in area developed was due to a late start as a result of delays in appointment by BWDB of thedesign consultants. A major, innovative re-design of the component to reduce land acquisition throughoptimizing the use of existing canals in the area made this component more cost effective, simplifiedinfrastructure requirements, and reduced environmental impacts of polder development by returning theecological condition closer to that which existed prior to embankment construction.

7. The objective of providing assistance to under-privileged groups and assisting small landowners to go into shrimp production themselves rather than lease their land to the rich for shrimpfaniing is being achieved. Available data indicate that for the polders developed under the project, there

2Such reports include studies conducted by Bangladesh Centre for Advanced Studies, Food Consumption Study,Socio-economic Studies, and Progress Reports prepared by the project NGOs.

3 Independent scientific monitoring was done by consultants (BCEOM/BCAS). The Mid-term Review verifiedthe methodology. DOF subsequently monitored the data based on a tested system.

4has been an overall shift toward small landowners actively taking up shrimp farming with the overallpercentage of leasing to outsiders down from 66% to 47%, with active involvement of owners up from34% to 53%. Some landowners also lease to neighboring land owners. For organization andmanagement of the project areas, the NGO assisted in forming Block and Sluice Gate ManagementCommittees. Overall, the amount of extension information on improved shrimp culture andenvironmental management (harvest of shrimp to allow timely planting of rice; selective collection ofshrimp seed and conservation of other species) provided to the farmers increased as a result of the NGO'sefforts in disseminating information provided by the DOF. Increases in shrimp production have not yetbeen achieved due to many of the infrastructure elements having not yet been completed, andBangladesh shrimp farms being adversely affected since early 1996 by a highly virulent white spotshrimp disease. However the projected incremental benefits are expected to show an ERR of at least20%, which is comparable to the SAR estimate, provided the planned infrastructure is completed and theimpact of shrimp disease is reduced as anticipated.

8. The objective of increasing the incomes, particularly of the poorer fishermen through carryingout of Other Fisheries development activities (including studies and provision of extension services atthe District and Upazila levels for freshwater shrimp production and other fisheries activities in ponds,lakes. rivers, and minor floodplains) has been partially achieved. The SAR objectives of this pilotcomponent were to initiate 55 sub-projects, concerning private sector promotion of pond culture, minorfloodplain, river, and freshwater shrimp culture development. These sub-projects were to be formulatedwith the assistance of Thana Fisheries Officers with the objective of providing employmentopportunities primarily for groups of landless women. Of the 55 sub-project target, 32 were appraisedand mostly implemented satisfactorily. DOF narrowed the scope of the component to pond culturedevelopment, including in some instances polyculture of freshwater prawns and integration withlivestock, due to DOF's greater experience with pond culture techniques. One clear advancement as aresult of the component has been the improvement of and experience gained by the DOF officers toprepare, plan and implement projects with these objectives through direct interaction with women'sgroups. The results of the component's implementation have been mixed. Some sub-projects workedwell with clear ownership by the beneficiaries, helping to assure sustainability. Others have notsucceeded as well due to technical and social problems which can be attributed in part to DOF's lack ofrequired experience in dealing with the social complexities of such initiatives during the early stage. Inaddition, as part of DOF's extension program, financial management training for the beneficiary groupsneeded to be provided, as part of sub-project preparation activities, to assure that there is advanceknowledge and acceptance of how the benefits would be distributed. There are examples of the diffusionof demonstrated technologies such as the fish drying project at Chanda now being replicated at MollerBeel. The ERR was not re-estimated for this component due to scarcity of data.

9. The SAR objective of successfully involving the private sector in fisheries has been substantiallyachieved in the floodplain stocking component. During the project, some 2,600 mt of stocked fingerlingswere supplied by contractors to the floodplains. Overall, contractors delivered over 80% of theircontractual obligations and showed progressively improved performance by attaining 95% in 1995.Fingerling quality was assured by DOF inspection procedures as required by the project. A highaccountability at stocking was achieved through the first three years by an internationally-recognizedlocal certification firm, which was subsequently replaced with an independent checking systemincorporating fishers and NGOs.

10. The objective of accelerating the expansion of fish production in the floodplains throughstocking with fingerlings, better fisheries management and research proiects has been substantiallyachieved. Stocking has increased production of stocked and non-stocked species. Observed increase inproduction of non-stocked species is attributed in part to better management of floodplain fisheries.Despite a slow start, the research objectives were achieved, and the results were applied by DOF toproject operations. A major activity included support to FRI to conduct targeted applied research onavailability of fish food, impact of gear selectivity on stocked species and fish diseases in stocked

5floodplains. Dissemination of research findings at the fishing community level has been achievedthrough extension and production and circulation of simple booklets in the national language. Thedissemination program should continue if the impact is to be sustained. Beyond the original objectives,FRI has produced a preliminary categorization of floodplains by production potential with modifiedstocking procedures appropriate to each category, which is an essential step for any future stockingassessments. The fish hatchery at Shantahar, which was transferred from DOF to FRI, has beensuccessfully converted into an effective research station for inland fisheries.

11. The objective of strengthening sectoral institutions has been satisfactorily achieved. Thesubstantial management element of this project, particularly via the ODA-funded Management TechnicalAssistance (MTA) component, laid emphasis on improved project management capacity within DOF,particularly in the fields of procurement, contract management, and intensive monitoring. Further, MTAwas instrumental in creating innovative enhancement in DOF's technical and administrative capacity atthe local level. An unusual feature was the equal emphasis on regional as well as central capacity.Regional DOF staff gained confidence in using a computerized stocking management system, andintroduction of the system greatly assisted production monitoring, record keeping, and timely reporting.Similar gains were made centrally, but overall capacity for coordination and information management atall levels still requires strengthening. Over the duration of the project, there were increasing numbers ofwomen fisheries officers working on the project. Increasing numbers are operating at field level (ThanaFisheries Officer). UNDP-funded Social and Technical Assistance (STA) was valuable in the areas ofproduction monitoring, research, shrimp farm planning and social activities by NGOs. In the earlystages, there were performance problems with STA senior management which were rectified by changesin personnel. Evaluation of training by a Government committee found the overall performance to besatisfactory.

12. The primary objective of the NGO involvement was to assist DOF with organization of thefishing communities to improve their capacity to understand and participate more fully in the floodplainstocking program. The NGO intervention combined with the implementation of the NFMP has had aradical effect in the ability of the fishing groups to organize themselves, take advantage of increasedbenefits, and contribute to cost recovery. The use of group bank accounts and the willingness of DOF toissue licenses against bank receipts in some cases has increased transparency and provided a futuremechanism for savings to be accumulated for community stocking. There have, therefore, been increasedgains in several dimensions at the regional level. The project has also assisted DOF in successfullycompleting the construction and rehabilitation of office and training facilities in a number of districts.

13. Following the MTR and at the Borrower's request, SDR22 million was canceled from the Crediteffective January 27, 1996. This was due to (i) an over-estimate of area suitable for stocking under theFloodplain Fisheries Component (para 14); (ii) an innovative re-design of the Coastal Shrimp CultureComponent that resulted in substantial cost savings; (iii) a 20% shortfall in the planned area of shrimp farmsto be developed (para 15); and (iv) exchange rate changes substantially increasing the Taka equivalent ofthe SDR. Revised project costs are about US$30 million equivalent (Table 8B). About US$15.32 millionequivalent (SDR1O.64 million) has been disbursed from the IDA credit, with about US$0.4 million moreexpected to be disbursed. About US$8.6 million equivalent have been provided by ODA and UNDP(US$4.3 million each). The construction of a Fisheries Academy had not been completed at the project'sscheduled closing date of December 31, 1996. In addition, there was a need to correct some of the shrimpinfrastructure. The closing date for disbursement from the civil works category was therefore extended toMarch 31, 1997 to allow for completion of these two components. The deadline for receipt of withdrawalapplications for this category is July 31, 1997. Thereafter, any undisbursed amount from the currentbalance of US$2.7 million equivalent (SDRI .96) will be canceled.

6C. Major Factors Affecting the Project

14. The SAR recommended that the minimum area of floodplain to be stocked should be 5,000 ha.This turned out to be impractical since DOF could not identify enough floodplains of that size. Theminimum floodplain area was subsequently reduced to 1,000 ha at the MTR. Total target area to bestocked was revised from 100,000 ha to 60,000 ha at the MTR. According to DOF figures, the maximumarea stocked in any one year during the project period was 43,500 ha. Other factors also contributed tothe inability to achieve the original target area. There were implementation delays due to laterecruitment of NGOs in the floodplain areas. However, greater NGO involvement in the later yearsgreatly enhanced performance of the floodplain component. Environmental factors also reduced the areastocked with Haiti Beel dropped from the program because of low productivity and the expected stockingof Beel Dakatia was prevented by lack of sufficient water. Delays in implementation of the NFMPwhich required transfer of fishing rights from the Ministry of Land to the Ministry of Fisheries andLivestock (MOFL) was another factor resulting in some floodplains not being stocked at all in someyears. DOF also had difficulty in identifying beels of the necessary area even when the minimum areawas reduced to 1,000 ha. A major drought in 1992/93 also had adverse effects on production.

15. About 10,400 ha of shrimp/rice culture farms of the planned 13,000 ha in the SAR were taken upunder the project. The shortfall in area developed was due to a late start as a result of delays inappointment by BWDB of the design consultants. In addition, a highly virulent white spot shrimpdisease outbreak in early 1996 had a devastating effect on shrimp production. A major, innovative re-design of the component to reduce land acquisition through optimizing the use of existing canals in thearea increased the benefit of this component.

16. The shortfall in achieving the objectives of Other Fisheries component was due to: (a) a late startof the component; (b) the complexities of formulating sustainable sub-projects oriented toward povertyalleviation among the rural poor; and (c) lack of experience among DOF officers in formulatingacceptable proposals required by the project with an emphasis upon poverty alleviation.

D. Project Sustainability

17. The sustainability of the floodplain stocking component and the shrimp culture developmentprogram is dependent on continued action by various Government agencies and NGOs and continuedprogress by beneficiary groups. While appropriate plans have been made, sustainability must still be ratedas uncertain until they are carried out. To ensure the sustainability of the stocking component, continuedNGO support and fingerling stocking of the floodplains by the Government, until the beneficiaries havedeveloped the capacity to do so themselves, will be required. In the absence of NGO support, there wouldbe strong likelihood that the necessary group participation would not continue, resulting in inequities in thedistribution of benefits. UNDP has agreed in principle to extend NGO support by a year up to December31, 1997. It is expected that, subsequently, the NGOs will provide support from their own sources. TheGovernment has initiated an evaluation of the public stocking of floodplains and has indicated its intentionto continue the public stocking program if the outcome of the evaluation is favorable.

18 A number of specific actions being taken by DOF and BWDB need to be completed as part ofthe ongoing development of the shrimp culture component to assure the component achieves itsobjectives and becomes sustainable. The actions include: (a) cancellation of leases of public canals inthe project area; (b) acquisition of some land for the construction of new water supply channels;(c) revision of the Government Act concerning cost recovery; (d) extension of NGO (CARITAS) supportthrough December 31, 1997; (e) formulation of an action plan for turning over the operation andmaintenance responsibilities to the beneficiaries and the provision of training and an operational manualfor these facilities; (f) repair of any defects in water management structures constructed under the

7project; and (g) continued efforts by the DOF to encourage farmers to take up environmentally soundshrimp culture practices to help minimize the prevalence and impact of shrimp diseases. From otherexperience in the region, the impact of white spot shrimp disease has been shown to decline in recentyears in part due to the application of environmentally sound shrimp farming management practices.DOF and BWDB, per their respective responsibilities, would provide the resources necessary toaccomplish the above noted actions, without which it is likely that the benefits of the investments to datewould not be sustained.

19. The sustainability of the sub-projects under Other Fisheries component is highly dependent uponthe technical soundness of the schemes, the technical know-how of the groups, the term of lease for thewater areas operated by the groups, and the organization and cohesiveness of and the financialmanagement of the groups. In cases where a sound footing has been achieved for each of the above,there is a strong likelihood that the respective sub-project would be sustainable. For others, withoutthese attributes, the prospects for their continued operation are slim, with some already having ceasedoperation. DOF plans to continue providing technical guidance to the ongoing sub-projects as part oftheir regular extension duties in the project areas. Since the Third Fisheries Project was conceived as thefirst in a series of sector-wide fisheries projects planned for IDA support in Bangladesh (SAR, para 3.06), aplanned follow-on project is expected to continue and/or expand some of the activities under the project.This is expected to enhance the probability that the project will maintain the achievements alreadygenerated.

E. Bank Performance

20. The Bank assisted the Government in identifying and preparing the project. One strength of theBank's performance lay in considerable staff continuity, both at the resident mission and at headquarters,during the different phases (identification, preparation, appraisal, and supervision) of the project. Thequality of performance, however, varied at different stages of the project.

21. Identification is rated satisfactory. The project was innovative and consistent with theGovernment's development strategy/priorities and with the Bank's strategy for the country. It provided aninnovative way of compensating for the negative impacts of past flood control and road projects on thefisheries sector given that there was little previous world-wide experience in floodplain stock enhancement.The project also reflected the Government's and Bank's development strategy for the fisheries sector --increased fish production, including programs designed for subsistence fishing families to assist inpoverty alleviation. Another positive aspect of the project was its flexibility that made it possible tomake adjustments in the course of implementation. Project identification was done by FAO/CP.

22. Preparation should be rated as deficient. The Bank assisted the Government in designing theproject with respect to technical, financial, economic, and institutional aspects. Quality and quantity ofBank staff and consultants was satisfactory. Skills mix was appropriate and there was staff continuity. Theproject reflected lessons learned from the Bank's experience in the sector, especially the Shrimp CultureProject. The Bank also carried out a major sector work in the fisheries sector about the same time that theproject was being prepared. The project benefited from preliminary findings of the sector work. However,there were some significant aspects of the project that could have been prepared better. For example, itshould have been determined during preparation that there were not enough floodplains of the sizesassumed in the SAR in the project area. This is one of the factors that contributed to cost over-estimates.Also, there was inadequate consideration of how the area of a floodplain was to be defined -- was it to be afully inundated area in an average rainfall year or the area having water depth of more than one meter for aperiod of four months? Untested concepts such as stocking open water bodies with fingerlings should havestarted at a pilot level. A problem with the project design has been the lack of adequate experience tojustify the proposed stocking procedures and the species mixture given. However, this was overcome bythe project's flexibility which made it possible to modify species mixture used, based on experience and

8relative performance. Some social impact, participatory, and environmental analysis was done duringproject preparation, but the Bank's emphasis on these issues was not as strong as it is now. Under theshrimp component, the project envisaged that farmers would voluntarily give their land for excavation ofchannels. This turned out to be unrealistic. During project implementation, a revised, innovative design --use of existing natural tidal channels which were blocked by the embankments -- was developed. Thedifficulty of cost recovery for stocking and the need for NGO support for the floodplain component wereunderestimated. Some stakeholders, especially beneficiaries of the floodplain stocking and shrimp culture,were not involved from the planning stages. They should have been made aware of planned cost recoveryfrom the start and the project design should have included group organization for progressive responsibilityfor operations of the floodplain component and O&M of shrimp infrastructure.

23. Appraisal should also be rated as deficient. The SAR provided a clear definition of the project' sobjectives, examined the incentives that would make the project function as planned, consideredenvironment- and poverty-related factors, established the criteria for monitoring the project's performanceduring implementation, and documented the assumptions, methodology, and results of the project'sfinancial and economic evaluation, and risk analysis. Fisheries institutions were also evaluated. Theinsistence of the Bank on intensive monitoring of production allowed a proper evaluation of the costeffectiveness of what was, in effect, a new technology. The provision for an independent certificationcompany to monitor delivery of procured fingerlings at the point of arrival, was a major feature in ensuringa high degree of accountability within the procurement element of the project. Coordination with otherdonors was very good. There were, however, some significant aspects of the project that could have beenappraised better. Many of the problems that were inadequately addressed during preparation should havebeen uncovered during appraisal, including the over-optimistic estimates of availability of floodplains of theprescribed minimum size, and the problems of cost recovery without greater efforts at group formation.While the need to strengthen sectoral capacity was identified and provided for in the project, it seems thatthe appraisal of the capacity of responsible agencies to implement the project as designed was not adequate.The capacity of DOF was not adequately assessed with respect to implementing the Other Fisheries

component of the project. In the end the component had to be limited to pond culture development,including in some instances polyculture of freshwater prawns and integration with livestock.

24. Supervision is judged as satisfactoIr. It is a good example of proactive supervision leading toadjustments in project design, which helped to overcome deficiencies in preparation and appraisal. Thisincluded introduction of an improved design for the shrimp component, adjustments in the floodplains to becovered and the stocking patterns, introduction of an enhanced role for NGOs, progressive revisions of thecost recovery arrangements, and reduction in the project size to more realistic levels. Implementationprogress was reported in detail, problems carefully assessed and help given to the Government to resolvethem, and great flexibility shown in finding ways to modify the project concept and design in light ofexperience gained in the course of implementation. The Bank and the cofinanciers (ODA and UNDP) haverun well staffed supervision missions, and mission findings and recommendations have had a positiveeffect on the progress and direction of the project. The Bank maintained continuity in the staffing ofsupervision missions. Composition of the missions in terms of skill mix was also good. The average lengthof the missions was three weeks which appears reasonable given the nature of the project. In addition, theresident mission, which managed the supervision task, maintained close contact with the implementingagencies between supervision missions. Detailed terms of reference were prepared for each mission.Performance ratings given in Supervision Form 590 are consistent with the project's outcome. The Bank,implementing agencies, and cofinanciers successfully worked together in supervising projectimplementation. The provision by ODA of a fisheries specialist to all Bank supervision missions was anexcellent example of agency cooperation towards the efficient running of the project. UNDP participated insome supervision missions and provided support to IDA during the implementation phase of the project. Inaddition, the Bank maintained close cooperation with other donors providing support to the sector.

9F. Borrower Performance

25. On balance, allowing for the complexity of the project, the Borrower's performance may be judgedas satisfactory. Major agencies of the Borrower involved in the project included the MOEL, DOF, BWDB,and FRI. The Government demonstrated commitment and support to the project at all stages. Counterpartfunds were released on a timely basis. Delay in appointment of design consultants by BWDB was one ofthe causes of delay in implementing the shrimp component. The Borrower and the Bank share the blamefor not involving the beneficiaries from the initial stages and making them aware of their obligations.

26. The Borrower generally complied with the major credit covenants. However, the covenants oncost recovery have not been met, due in part to deficiencies in the design of the cost recoverymechanism. In addition, the Borrower did not divest all the fish seed farms as agreed. By July 1, 1994,collections for floodplains stocking, based on the leasing system for water bodies, were about 3.8 percentof stocking costs against a target of 20%. A Government Floodplain Cost Recovery Committeedeveloped a cost recovery program which required replacing the leasing system by the licensing systemfrom the 1995 stocking season. Further, NGOs were recruited to motivate beneficiaries to stock andmanage floodplains themselves. The initial results have been encouraging with estimated 1996collections of about 30% of the costs (the 7/95 target). Further, to attain real sustainability, NGOs areassisting beneficiaries to undertake stocking themselves. The initial results are encouraging. However,the full impact of this arrangement will require NGO support and stocking by the Government until thebeneficiaries can themselves stock the floodplains. It has been agreed that NGO support will continue upto December 31, 1997. The covenant relating to shrimp culture cost recovery required full recovery ofcapital and O&M costs through an export tax on shrimp and direct levy on beneficiaries. IDA,subsequently, agreed that recovery would be limited to O&M costs through a direct levy onbeneficiaries. The rationale for IDA's agreement was that the covenant, which provides for an export taxon all shrimp exporters (not just the beneficiaries), creates an anti-export bias and would be contrary toBank's current economic advice. Further, the revised approach of full O&M recovery was similar to thatadopted for IDA assisted irrigation projects in Bangladesh. Under the project, O&M charges would notbe due until January 1998. However, based upon experience under irrigation projects the recoveryproposals require further modification. The current plan is to develop a model whereby the beneficiarieswill be responsible for collection of fees and using the fees for handling O&M responsibilitiesthemselves. The model will be in line with the one being developed under the IDA-assisted SystemsRehabilitation Project. It has been agreed in principle that the cost recovery covenant will be amended toinclude only O&M costs and to reflect the principles of the new model described above. The ICRmission discussed and agreed with BWDB that the BWDB would send a formal request (throughEconomic Relations Division) to the Bank to amend the cost recovery covenant for the shrimp farmingcomponent. The request for amendment has not yet been received by the Bank.

27. The Government has been committed to intensive monitoring of all fish species in stockedfloodplains in order to allow a detailed evaluation of the program. DOF has successfully taken overmonitoring of existing and new floodplains from the consultants. However, transfer of procurement andcontractual procedures from the MTA consultant to DOF has not been adequately accomplished becausea counterpart officer was not consistently assigned to work with the consultant during the consultant'sengagement.

28. There was continuity in senior staff assigned to work on the project. However, a shortcoming ofthe outcome of the institutional support was the transfer or departure of a small proportion of trainedstaff from the project. These staff changes contributed to some loss of consistency and progress withproject implementation.

10G. Assessment of Outcome

29. The project's outcome is rated satisfactory in view of achievement of most of its major objectives asdescribed in Section B above and summarized below, albeit at a smaller scale than had been originallyenvisaged. In addition, the re-estimated ERR is 40% for the floodplain component (compared to an averageof over 100% at appraisal) and 20% for the shrimp component (comparable to the estimate at appraisal).Benefits include:

* increased incomes for fishing families (even though distribution is not as targeted towardthe rural poor as originally intended);

* considerable increase in fish production through stocking and better management offloodplains;

* increased availability to poor subsistence fisher families of floodplain fisheries, whichprovide the main source of protein in their diets;

* development of shrimp infrastructure program, based on existing canals, instead of landacquisition;

* providing assistance to under-privileged groups including women and assisting small landowners to go into shrimp production themselves rather than lease their land to the rich forshrimp farming;

* demonstrating the viability of more environmentally appropriate shrimp productionmethods and of the feasibility of shrimp farming by small landowners;

- support to women groups under other fisheries component;

- successfully incorporating the private sector in fisheries development program;

* carrying out successful fisheries research with practical application;

e empowerment of the beneficiaries through NGO involvement; and

* strengthening sectoral institutions.

H. Future Operation

30. Significant organization of beneficiaries has been achieved by DOF and the NGOs, and some costrecovery has been achieved for the floodplain component. The increased NGO intervention andimplementation of New Fisheries Management Policy as a pre-condition for stocking, following the MTR,were essential elements in this achievement. In the final phase of the project, a series of participatoryworkshops, which included all stakeholders, were held to arrive at a mutually agreed master work plan forsustainable floodplains stocking into the future. This is a 29 step action plan for co-management, includingtechnical, organizational and licensing procedures. The key element is the fully representative BeelManagement Committees (BMCs) which already exist in the project stocking areas. Fishermen and NGOsare already included in the stocking and checking procedures, and all decisions are made through theBMCs. The plan lays out the rules and responsibilities of all parties, including increased contributions bybeneficiaries of the stocking process. It is based on existing developments within the project area. In 1996,over Tk 2 million was collected in license fees with indications that Tk 3 million would be contributed bythe end of the following season. In addition, over 8 mt of fingerlings have been provided by the licensees

11themselves. The prospect of beel-side fingerling ponds managed by the beneficiaries to contribute tostocking is being developed. The NGOs are to be supported for a further year by UNDP. The MOFL hasindicated that it will produce a plan for continued, complementary public sector stocking in order that thegains achieved can be sustained. The prospects for the project outcomes to be continued and sustained aregood.

31. There are plans for FRI to continue its inland fisheries research initiated under the project. FRIstaff and operating costs may be covered by the revenue budget. If this is not feasible, FRI should prepareand submit a proposal for contract research financing from the IDA-assisted Agricultural ResearchManagement Project which includes support for fisheries research.

32. DOF and BWDB are planning a number of actions to complete construction of shrimpinfrastructure and to provide the necessary resources to do it. Revised cost recovery mechanisms are beingput in place (see para 26). In the case of Other Fisheries component, DOF plans to continue providingtechnical guidance to the ongoing sub-projects as part of its regular extension duties in the project areas.

I. Key Lessons Learned

33. Following are five key lessons learned:

(i) Stakeholders (including beneficiaries) should be involved from the identification stage of the project.

(ii) Mechanisms for cost recovery and/or sharing should be agreed with all concerned during projectpreparation. The beneficiaries of the floodplain component should have been made aware of cost recoveryfrom the start. In fact, they should have been involved in developing mechanisms for progressively takingover O&M responsibilities and designing required cost recovery arrangements.

(iii) NGOs are more effective than public sector agencies in motivation and formation of beneficiarygroups. Involvement of NGOs, particularly local NGOs, for the floodplain component generally proved tobe a very effective way of mobilizing and organizing the beneficiaries into groups to help them takeadvantage of increased value of a common property resource.

(iv) Proactive supervision leading to adjustments in project design during implementation can play animportant role in achieving a successful outcome. These adjustments included reduction in project size,increased roles for NGOs, changes in floodplain stocking patterns, development of a community-basedfloodplain management program, which basically evolved in the course of project implementation, anddevelopment of a shrimp infrastructure program based on existing canals, instead of land acquisition.

(v) Untested concepts, such as stocking open water bodies and other fisheries programs, should be tried outfirst at a pilot level.

12IMPLEMENTATION COMPLETION REPORT

BANGLADESH

THIRD FISHERIES PROJECT(Credit 2146-BD)

Part II - Statistical Tables

Table 1: Summara Assessments

A. Achievement of Objectives Substantial Partial Negligible Not Applicalhk

Macroeconomic Policies El EIJ al [X]Sector Policies E [X] El OFinancial Objectives E [X] El ElInstitutional Development [X] E E EPhysical Objectives E [X] El EPoverty Reduction al [X] El OGender Concerns [X] O E EOther Social Objectives C [X] EEnvironmental Objectives E [XI O EPublic Sector Management E El [X]Private Sector Development [XI E E EOther (specify) n o E E

B. Project Sustainability Likely Unlikely UncertainE E [X]

HighlyC. Bank Performance Satisfacorv Satisfactory Deficient

Identification E [X] EPreparation Assistance El E [X]Appraisal El E [X]Supervision El [X] El

HighlyD. Borrower Performance Satisfactory Satisfactory Deficient

Preparation E [X] IImplementation E [X] ICovenant Compliance El [X]Operation (if applicable) E [X] E

Highly HighE. Assessment of Outcome Satisfactory Satisfactory Unsatisfactory Unsatisfactory

El [X] l E

13Table 2: Related Bank Loans/Credits

Loan/Credit Title Purpose Year of Approval T Status

Preceding OperationsKarnafuli Irrigation Correct adverse effects 1976 Closed December 31,Project (C605) had a on inland fisheries from 1984fisheries sub-project flood control, drainage,

and irrigation projectsthrough aquaculture

_ based fishery.Rural Development I Rehabilitation derelict 1976 Closed December 1981.Project (C63 1) ponds, organization of

Thana fisherycooperatives, trainingand technical assistance.

Oxbow Lakes Fishery Develop underexploited 1979 Closed June 30, 1986Project (C890) oxbow lakes to increase

fish production, improvefishermen's incomes andfinance hatchery andfingerling rearingfacilities for six lakes.

Shrimp Culture Project Improve shrimp culture January 14, 1986 Closed October 31, 1993(C 1651) within polders located in

the eastern Cox's Bazararea.

Following OperationsFourth Fisheries Project Increase fish production Not yet approved . Under preparation

in a sustainable manner

14Table 3: Project Timetable

Steps in Project Cycle | Date Planned | Date Actual/Latest Estimate

Identification' April/May 1985 April 15, 1988

2 October/November 1988 November 21, 1988PreparationAppraisal April 1989 October 1989Negotiations October 1989 April 9-13, 1990Board Presentation December 1989 May 20, 1990

Signing June 8, 1990Effectiveness July 1990 January 8, 1991

Midterm Review Not Planned January 15, 1994

Project Completion December31, 1996 Dec. 31, 1996; March 31, 1997 |

Loan/Credit Closing April 30, 1996 April 30, 1997; July 31, 19974

I Carried out by FAO/CP2 Carried out by FAO/CP3 Extended Completion Date for civil works, Category (1)4Extended Closing Date for civil works, Category (1)

15

Table 4: Loan/Credit Disbursements: Cumulative. Estimated and Actual(US$ million)

FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98

Appraisal Estimate 1.86 3.96 9.57 16.16 23.66 31.08 34.56 34.56(Cumulative)

Actual (Cumulative) 0.57 1.83 2.98 4.78 6.91 8.96 15.32Actual as % of Estimate 30.65 46.21 31.14 29.58 29.21 28.83 44.33(Cumulative)

Revised Estimate 0.62 2.02 3.35 5.37 7.87 11.12 12.55 12.60(Cumulative)

Actual as % of Revised 91.94 90.59 88.96 89.01 87.80 80.58 122.07Estimate (Cumulative)Date of Final Disbursement July 31, 1997(Expected)

16

Table 5: Key Indicators for Project Implementation

1. Key implementation indicators in SAR Appraisal Target Actual1. FLOODPLAIN FISHERIES

(a) Area Stocked ('000 ha) 100 44.9(b) Cost of Stocking (include. 67 421

contingencies) (US$/ha)(c) Weight Increase (Times) 10 6.7 - 10.82

2. COASTAL SHRIMP CULTURE(a) Construction of Public Infrastructure in

Polders 13 10.43i) Area covered ('000 ha) 1,377 5964lii) Cost (including contingencies) (US$/ha) 120 --

iii) Incremental Yield of Exportable Shrimp(kg/ha) l

3. OTHER FISHERIES (no.) 55 324. INSTITUTIONAL SUPPORT

(a) Vehicles 44 44(b) Motorcycles 118 118(c) Speed Boats 4 4(d) Computers 25 25

i) Cost recovery on FPL (status) Complete 100%ii) Hatchery divestment (status) Complete 100%

5. RESEARCH STUDIES"(a) Fish Food Availability (% completed) 100 95(b) Fish Disease (% completed) 100 90(c) Fish Gear Selectivity (% completed) 100 95

11. Modified indicators Mid-term Review Target1. Floodplain Fisheries (Area stocked, '000 ha) 60 432. Shrimp Area Covered ('000 ha) 10.4 10.4

1. Estimate, Floodplain area varies from year to year based on hydrological factors.2. Annual average (excluding 1992 which was a drought year. Some beels shared weight increases as high

as 15 times.3. Due to project implementation delays, physical target was reduced to 10,400 ha.4. Low cost design for infrastructure works evolved during implementation phase.5. Will be available after completion of works and use of facilities.6. Target and achievement are measured in terms of duration of the studies.

Table 6: Key Indicators for Project Operation

I. Key operating indicators in Estimated ActualSAR/Presidents Report

Not Applicable

17Table 7: Studies Included in Project

Purpose as definedStudy at appraisal/redefined Status Impact of study

Under UNDP assisted STA program1. Methodology of Production Use in monitoring of fish Completed Methodology helped to

monitoring, 1992 Production from floodplains develop existing monitoringand could ascertain impact of

__________________________ stocking2. Hydrology of 3 floodplains-- Use in the selection of Helped to select criteria as

-Halti. BSKB & Chanda, floodplains and evaluation of well as floodplains for1993 & 1994 stocking program stocking

3. Lease holder study. 1995 Use in cost recovery Helpful for cost recoveryplanning & other related study and other relatedissues aspects

4. Socio-Economic (pre & To evaluate stocking of Helpful for evaluation ofPost) Study in the selected floodplains socio-economic status offloodplains area, 1995 fishers of stocked area (Pre

and Post).5. Flood Consumption (Pre &

Post) Study in the stockedfloodplain area, 1995

6. New floodplain Planning. To use for floodplain Helpful for selection of1993, 1994 selection for stocking floodplains

7. Organization of Fishermen, To know institutional status1994 of fishers in the project area

8. Study of Cost Recovery in To help formulate Govt. Used in the preparation ofstocked floodplains, 1993 Policy on Cost recovery in Govt. Policy on cost recovery

stocked floodplains in stocked floodplains9. Divestment of DOF's Fish to know surplus production Helpful for preparing Govt.

Seed Farms. 1993 of fish seeds and under use Policy of divestment of Govt.of Govt. man Fish Seed Farmspower/resources

10. Study on Minor Floodplains. To know status of minor Undertook package program1993 floodplains of project areas based on study findings

II. Research areas/fields Identification of research Conducted need basedparticularly in floodplain fields and working out their researchstocking program, 1992-93 methodology

12. Role of Women/involvement To identify areas of women .. Helpful for involving womenof women in TFP activities, involvement in the project in different package program1993 of other fisheries development

13. Detailed Planning and To work out low cost & Helpful for dosing feasibleoutline design for Brackish easily operated and socially low cost water infrastructures.water Shrimp culture acceptable waterInfrastructures. (6 reports), infrastructures.1992-95

14. Caritas study on land tenure To know rate of involvement Used in evaluationsurvey of Brackish water of land owner/small farmershrimp culture project under in shrimp cultivation (pre &TFP post project period)

15. Caritas study on socio- To know changes in theeconomic impact of Brackish socio-economy ofwater shrimp culture in the beneficiaries groupproject area

16 Research areas/fields. Identification f research Used research findings forparticularly in floodplain fields and working out their preparing stocking programstocking program. 1992 methodology

18

17. Shrimp Culture & Understand social & UsedEnvironment in Coastal technical problems recommendations/suggestionsRegion, BIDS, 1993 in the project activitiesUnder ODA assisted MTA Program

1. Nursery operators and To know fingerling Useful for preparingfingerling production in the production status in the area procurement plan

I project area, 19922. The 1992 Fingerling To evaluate procurement Used for future Program

Stocking Program, 1992 plan3. Women in Fisheries For involving Women in Used recommendations for

Projects--Other Fisheries, Fisheries development involving women's package1995 program

4. Project Beneficiaries under To identify/categorizeThird Fisheries Project, 1993 beneficiaries of the project

5. Creating Community Awareness about TFP DOF personnel became awareawareness within the Dept. of TFP activitiesof Fisheries, 1992 1

6. The monitoring of escaping Prepare species mix Planning of stocking refinedfingerlings, 1992, 1993 in TFP area

19Table 8A: Project Costs

Appraisal estimate (US$ million) Actual/latest estimate (US$ million)Local Foreign Local Foreign

Item costs costs Total costs costs Total1. Floodplain 12.2 1.4 13.6 5.5 5.5Fisheries2. Coastal 8.5 4.4 12.9 6.2 6.2Shrimp Culture3. Other 1.9 0.1 2.0 0.1 0.1Fisheries l

4. Institutional 7.5 2.3 9.9 8.2 1.1 9.3Support5. Research 0.6 0.2 0.8 0.7 0.2 0.96. Technical 3.1 3.9 6.9 8.0 8.0Assistance7. Physical 2.8 0.7 3.5Contingencies ______l8. Price 10.2 2.8 13.0contingenciesTOTAL 46.9 15.8 62.7 20.7 9.3 30.0

Table 8B: Project Financing

| Appraisal estimate (US$ million) Actual/latest estimate (US$ million)Local Foreign Local Foreign

Source costs costs Total costs costs TotalIDA 33.5 11. 44.6 14.4 1.3 15.7

ODA 1.4 2.9 4.3 0.7 3.6 4.3

UNDP 2.4 1.8 4.2 4.3 4.3

GOB 9.6 0.0 9.6 5.7 5.7

TOTAL 46.9 15.8 62.7 21.3 8.7 30.0

20Table 9: Economic Costs and Benefits

Assumptions Costs Benefits(a) Floodplain Stocking Component: (a) Floodplain Stocking Component: (a) Floodplain Stocking Component:The main assumptions are: The major costs included in the analysis The main quantifiable benefit is

are: incremental catch of stocked species.(i) stocking density; (ii) stocking costs areactuals until 1996 and the forecast (i) The cost of fingerlings stocked;stocking quantity and price are the (ii) fishermen's cost (consisting of laboraverage for the rates for 1995 and 1996: and equipment),(iii) fishermen's costs are based on frame (iii) DOF administration costs; andsurvey data on actual gear ownership and (iv) supervision costs.participation in fishing. together withlocal estimates of gear costs. These werechecked for consistency before usingthem in the analysis: (iv) DOF costs arebased on staffing, vehicles and equipment(such as computers) usage by the projectas reflected in quarterly reports. The costsare allocated to the stocking directlyaccording to the number of stockingpoints: (v) NGO and other supervisioncosts are taken directly from STA andUNDP support budgets and from thedirect cost of fishermen's contribution tostocking: and (vi) incremental catch usesactuals until 1995/96 and the average ofthe last two full years data for futureforecasts.

(b) Shrimp Component: The (b) Shrimp Component: The major (b) Shrimp Component: The mainassumptions are: costs included in the analysis are: quantifiable benefit is shrimp output

(i) the area under shrimp will remain (i) civil works (infrastructure);constant and there will be no change (ii) equipment;between shrimp only and shrimp with (iii) O&M civil works/equipment;paddy farming; (ii) inputs will increase as (iv) on farm investment;DOF's extension messages are accepted (v) shrimp juveniles;by farmers; (iii) yields will increase as a (vi) fertilizer and feed;result of the inputs, through improved (vii) land preparation;monitoring and control and as the farmers (viii) labor; andbecome experienced in managing water (ix) lost rice value (where shrimp replacesflows: (iv) prices of inputs and outputs rice).will not change in real term (there hadbeen a drop in input prices following thedisease problems in early 1996. but it isassumed that this will be temporary andthat prices will return to a long-termaverage within the next season): (v) therewill be no benefit from this componentuntil 1998 and full benefits will take threeyears to be achieved. A 20 year projectlife is assumed: (vi) DOF will continue toprovide support to farmers aftercompletion of the structures: and (vii)Caritas will continue to support farmersfor two years and any support thereafterwill be self-financing.

21Table 10: Status of Lpal Covenants

Original RevisedCovenant Present Fulfillment Fulfillment

Agreement Section type Status Date Date Description of Covenant CommentsArticle IV Section 4.01 1 C Borrower shall furnish audit reports. -

including separate opinions on expendituresmade on the basis of SOE, from Departmentof Fisheries (DOF), Fisheries ResearchInstitute (FRI) and Bangladesh WaterDevelopment Board (BWDB), not later thannine months after the end of the financial

______ ______ _____ ______ _____ year.

Schedule 4.01 10 C Borrower shall initially stock Chanda. Halti was initially stocked, along with(a) BSKB and Haiti floodplains Chanda and BSKB, but was subsequently

dropped because it was economically not____________________________________ viable.

Schedule 4.01 10 C Borrower shall, after completion of the For the 1996 stocking program, 41,500 ha of(b) initial stocking, select other floodplains floodplains (41% of the SAR target and 73%

of the revised target) were stocked.Schedule 4.02 10 C Borrower shall ensure that the concerned oc(a) population in the shrimp polders has agreed

to participate in the carrying out of theinfrastructure works

Schedule 4.02 10 C Before building sluices, Borrower shall(b) ensure that relevant shrimp farmers have

agreed to develop the related channels andl____________ ____________ _____________ __________________ secondary em bankmentsSchedulc 4.02 10 C Borrowcr shall initially carry out(c) infrastructure works in polders 5 and 23,

and thereafter carry out works in additionalpolders

Schedule 4.03 10 C Borrower shall select Other Fisheries(a) Development activities in accordance with

criteria acceptable to IDASchedule 4.03 10 C Borrower shall ensure that a substantial(b) portion of the expenditurcs for Other

Fisheries projects be used for activitiesrelated to women in lisheries development

Schedule 4.04 I0 C Borrower shall furnishi to IDA the plans for(a) the construction and rehabilitation of DOF's

training facilitiesSchedule 4.04 10 C Borrower shall furnish to IDA the ainual(b) budget plans for the DOF hcadquarters units,

other than the Project Coordination Ceil

22Schedule 4.05 10 C Borrower shall furnish to IDA for approval(a) the plans for the FRI field stationSchedule 4.05 10 C 12/11/1991 Borrower shall transfer a DOF fish seed(b) farm to FRISchedule 4.06 5 C 06/30/1991 Borrower shall transfer the extension staff

assigned to the implementation of theShrimp Culture Project (Credit 1651 -BD) tothe implementation of the Project

Schedule 4.07 5 C Borrower shall provide adequate officespace to technical assistance staff

Schedule 4.08 5 CD 07/01/1992 02/02/1993 Borrower shall establish an interministerial(a) committee on divestment of public fish seed

farmsSchedule 4.08 5 CD 03/01/1993 08/27/1993 Borrower shall furnish to IDA, for its The committee identified eight of fifty farms(b) comments, the recommendations of the for divestment.

committeeSchedule 4.08 5 C Borrower shall thereafter, implement, in Some seed farms have been divested.(c) accordance with a time schedule agreed

with IDA, the recommendations ofcommittee

Schedule 4.09 5 C 10/31/1990 Borrower shall staff the Coordination Cell(a) in DOF in a manner satisfactory to IDASchedule 4.09 5 C 10/31/1990 Borrower shall staff the DOF Divisional(b) Offices in a manner satisfactory to IDASchedule 4.10 2 CD 12/31/1990 Borrower shall enact legislation to ensure Borrower enacted a law in 1992, and framed(a) full cost recovery (investment and O&M) of rules in 1991, which IDA endorsed, that

shrimp culture infrastructure works within a require recovery of O&M costs. 'I'he rules20-year period are not yet applicable to project investments

but, based upon experience of similar rules in

irrigation cost recovery, are no longerconsidered appropriate. It has been agreed,in principle, that the covenant would beamended to specify the role DOF staff, and toinvolve beneficiaries in collection of fees andO&M. (In line with the Guidelines forPeople's Participation being framed under theIDA assisted Systems Rehabilitation Project.)

Schedule4.10 2 NYD Borrower shall, thereafter make biennial --(b) adjustments to the chargesSchedule 4.10 2 NYD 09/30/1993 Borrower shall review the effectiveness of See Schedule 4.10(a).(c) the measures and furnish to IDA proposals

for improvements to such measuresSchedule 4.10 2 NYD 06/30/1994 Borrower shall carryout the proposed See Schedule 4.10(a).(d) improvements

23Schedule 4.1 1 02 CD Borrower shall furnish to IDA for comments By July 1, 1994, collections, based on the(a) a draft policy paper on cost recovery of leasing system for water bodies, were about

stocking in floodplains, including measures 3.8 percent. A Government Floodplain Costof achieving at least a 20% recovery of Recovery Committee developed a costannual public stocking before 7/1/94 and at recovery program which required replacingleast 30% before 7/1/95 the leasing system by the licensing system

from the 1995 stocking season. Initial resultshave been encouraging with the July 1995target achieved in 1996. Further NGOs wererecruited to motivate beneficiaries to stockand manage floodplains themselves. If overtime beneficiaries could be induced toundertake stocking, cost recovery wouldbecome a non-issue.

Schedule 4.11 02 CD 06/30/1994 Borrower shall, by June 30, 1994, carry out See Schedule 4.11(a)(b) the policySchedule 4.12 05 CD 12/31/1992 Borrower shall establish an Inter-ministerial l

Committee for Cost Recovery in Fisheries(including Shrimp Culture)

Covenant types. Present status

[ = Accounts/audits 8 = Indigenous people C = covenant complied with2 = Financial pcrfortmance/revenue 9 = Monitoring, review. and reporting CD = complied with aHter delay

generation from beneficiaries3 = Flow and utilization of project 10 = Project implementation not covered CP = complied with partially

funds by categories I -94 = Counterpart funding I = Sectoral or cross-sectoral budgetary or NC = not complied with

other resource allocation5 = Management aspects of the 12 = Sectoral or cross-sectoral policy/ NYD = Not yet duc

project or executing agenicy regulatory/institutional action6 = Environmental covenants 13 = Other7 Involuntary resettlement

24Table 11: Compliance with Operational Manual Statements

Statement number and title I Describe and comment on lack of compliance

No deviation from applicable Operational Manual Statements observed

Table 12: Bank Resources: Staff Inputs

Planned Revised ActualStage of

project cycle Weeks US$000 Weeks US$000 Weeks US$000Preparation to appraisal N/A N/A N/A N/A 69.5 125.1Appraisal N/A N/A N/A N/A 43.6 76.8Negotiations through N/A N/A N/A N/A 3.5 8.7

Board approvalSupervision N/A N/A N/A N/A 159.2 267.6Completion N/A N/A N/A N/A 16.1 32.1TOTAL N/A N/A N/A N/A 291.9 510.3

25Table 13: Bank Resources: Missions

.___________________ .________ .________ _________ Perform ance ratingSpecialized Implemen- Develop-

Month/ Number Days in staff skills tation ment Types ofStage of project cycle year of persons field represented status objectives problems

Through appraisalAppraisal through October 89 6 26 ECN, FNA.Board approval IMS, FPF, - -

ENW._AQC_

Supervision Dec 90 6 10 ECN, FNA. 2 1 LCDBO,

WID, FRS,FRM

August 91 4 21 FNA, 2 1 LC, PMDBO,

WID, FRSFeb 92 2 21 FNA, FRS 2 1 LC

Nov 92 3 18 FNA, FRS, 2 2 ID, LCDBO

May 93 6 20 FNA, FRS, 3 3 ID, LC, PPDBO,WID,

AQC, ENCOct 93 5 9 FNA, FRS, 3 3 PP, LC

WID,AQC, ENC

Jan 94 4 24 FNA, FRS, 3 3 DB, LC, IDAQC, ECN

Jan 95 5 15 FNA, FRS, U S LCAQC,

DBO, ATPDec 95 6 51 FNA, FRS, S S DO, LC,

AQC, ATP, SSPENC, DBO

Oct 96 3 30 FNA, ENC, S S LC. SSP_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _D B O _ _ _ _ _ _ _

Completion Nov 96 5 25 FNA, FRS, = =AQC,

Total EN T

Key:AGR : AgricUlturalist DB : Distribution of BenefitsATP : Anthropologist DO : Disease OuitbreakAQC : AqucUlturalist ID : lImpleinentation Delays (Shrimp Component)DBO : DisbIursement Officer LC : Compliance with Legal CovenantsECN : Economist FP : Financial PerfonnanceENW : Water Engineer PP : Produiction PerfonnanceENC : Civil Engineer PR : Procurement ProgressFNA : Financial Analyst PM : Project Management PerformanceFPF : Floodplain Fisheries Specialist SSP Saistainability of Floodplain Stocking ProgramFRM : Fisheries Monitoring SpecialistFRS : Fisheries SpecialistIMS : Institutional Management SpecialistOPN : Operations AssistantWID : Women in Development Specialist

A/ Caried out by FAO/CPh/ Mission cut-short due to political unrest in the country.

Appendix A

IMPLEMENTATION COMPLETION REPORT

BANGLADESH

THIRD FISHERIES PROJECT(Credit 2146-BD)

Mission's Aide-Memoire

I. An IDA Implementation Completion Report (ICR) mission comprising Benson Ateng,Imtiazuddin Ahmad, Ronald Zweig, Lars Soeftestad (IDA), and Ian Payne (ODA-funded consultant)took place during November 24 to December 19, 1996 to discuss the implementation and operation ofthe Third Fisheries Project (TFP), which will close on December 31, 1996, with Government ofBangladesh (GOB) officials, ODA (a co-financier), participating Non-Government Organizations(NGOs), and beneficiaries. An earlier draft of this Aide Memoire was shared with UNDP, another co-financier, whose comments have been incorporated in this version. The mission held detaileddiscussions with each of the implementing agencies -- Department of Fisheries (DOF), FisheriesResearch Institute (FRI) and Bangladesh Water Development Board (BWDB) -- on the progress made inimplementing their respective parts of the TFP, and on the need for their subsequent participation inpreparing the GOB's Evaluation of Project Implementation as an appendix to the ICR. The mission alsomet a wide range of beneficiaries from floodplain, shrimp, and other fisheries components of the projectduring field visits. The mission wishes to record its appreciation of each agency's very helpfulcooperation. A number of reports on the progress of TFP's implementation were made available to themission.

2. This Aide Memoire summarizes the views of the mission, GOB, implementing agenciesincluding participating NGOs, and co-financiers on project implementation and operation, includingoperational plans. Attached to it is a revised IDA TFP Supervision Mission Aide Memoire which wasdiscussed at a wrap-up meeting chaired by the Ministry of Fisheries and Livestock (MOFL) Secretary onNovember 24, 1996. The missions' recommendations are subject to review and endorsement by IDAmanagement. The mission also provided advice and support to the implementing agencies for preparingtheir own contribution to the ICR. This Aide Memoire was discussed at a wrap-up meeting chaired byMr. Md. Badre Alam, Joint Secretary of MOFL, on December 19, 1996 and includes the decisions takenand the views expressed at that meeting. Since the more detailed views of the Bank and GOB will becontained in their respective sections of the Report, the mission felt that this Aide Memoire could bestfacilitate that process by focusing mainly on the following key aspects:

(a) project objectives/scope;(b) completion status;(c) Borrower's compliance with DCA covenants;(d) salient successes/failures of the project;(e) plans for the project's future operation/sustainability; and(f) next steps in the Bank's and GOB's ICR preparation.

27 Appendix A

A. Project Objectives/Scope

3. The main objectives of the project are: (a) increasing incomes, particularly of the poor, and fishproduction for domestic consumption and export; (b) supporting the fisheries development program inthe West with emphasis on private sector participation; (c) accelerating the expansion of fish productionin the floodplains; and (d) strengthening sectoral institutions. The four major components include:(a) floodplain fisheries, involving the stocking of floodplains; (b) coastal shrimp culture, makingimprovements in public infrastructure on poldered land already under shrimp culture; (c) other fisheries,including finance packages for a variety of Upazila- and District-level programs; and (d) institutionalsupport, financing facilities and incremental operational costs of DOF and BWDB related to the aboveinvestments. The project is currently rated satisfactory in terms of both development objectives andimplementation progress.

B. Completion Status

4. Most project components have been completed as adjusted during the Mid-term Review inJanuary/February 1994. However, some civil works are yet to be completed in the case of shrimpinfrastructure and construction of the Fisheries Academy and the District Fisheries Office in Nagoan.The start of the shrimp infrastructure works was delayed by two years. Further recent delays are due to adecision to stop work to get an independent evaluation of the adequacy of the quality of some of thecompleted infrastructure before transfer to the beneficiaries for operation and maintenance. Works to becompleted include the completion and repair of sluice gates, the deepening and widening of some watersupply and drainage canals, and the realignment of some short canal sections, as needed for ample waterflow. BWDB plans to correct any defects identified by the evaluation and complete remaining civilworks within three months. Completion of the Fisheries Academy was delayed because the contractorshad not received timely payments from DOF due to non-approval status of the revised Project Proforma.DOF and the contractors estimate that the remaining works can be completed by March 31, 1997. The

Ministry of Fisheries and Livestock (MOFL), DOF, and BWDB discussed with the mission the need toextend the closing date for these components to March 31, 1997. The mission advised the MOFL and theBWDB each to send a formal request for extension of the DCA category for civil works for thesecomponents through the Economic Relations Division (ERD) to the Bank before the closing date ofDecember 31, 1996. The mission recommends that the BWDB complete the tasks concerningamendment of the cost recovery covenant for the shrimp culture component discussed in paragraph 5.

C. Compliance with DCA Covenants

5. The Borrower generally complied with the DCA's covenants. There is, however, one covenantconcerning floodplain cost recovery, which has been only partially met due to the rate of fee collectionnot meeting the specified schedule, and another on shrimp culture cost recovery, which requiresamendment. The mission discussed and agreed with BWDB that the BWDB would send a formalrequest (through ERD) to the Bank by December 31, 1996 to amend the cost recovery covenant for theshrimp farming component, as explained in paragraph 23 of the Attachment.

28 Appendix A

D. Salient Successes/Failures

6. Floodplain Component. The fingerling stocking program could only achieve 72% of the revisedMid-term Review target of 60,000 ha for major floodplain stocking in part due to a lack of suitablefloodplains exceeding 5,000 ha each as proscribed in the Staff Appraisal Report (SAR), the transfer ofthe leasing system to licensing of fishing rights from the Ministry of Land (MOL) to the MOFL, anddifficulties in recruiting competent NGOs in the floodplain areas. However, the project hasdemonstrated the technical, financial, and economic feasibility of floodplain stocking with fingerlings.A total incremental production of 20,000 mt of stocked fish were produced; and in all cases withappropriate stocking densities, the non-stocked species' diversity and productivity were found to keeppace or exceed the baseline condition. The most significant achievement was to show that the ten-foldincrease in stocked species production indicated in the SAR was regularly attained. The achievement ofthis target underpins the viability of the procedure and the economic performance; preliminary resultsshow that the average economic rate of return is nearly 40%. The continuous evaluation andmodification of the stocked species mixture used proved a significant factor in attaining the sustainedhigh incremental production.

7. The SAR objective of successfully incorporating the private sector has been achieved. Duringthe project, some 2,600 mt of stocked fingerlings were supplied by contractors to the floodplains.Overall, contractors delivered over 80% of their contractual obligations and showed progressivelyimproved performance by attaining 95% in 1995. Fingerling quality was assured by DOF inspectionprocedures. A high accountability at stocking was achieved through the first 3 years by an internationalcertification company, which was subsequently replaced with an independent checking systemincorporating fishers and NGOs. However, transfer of procurement and contractual procedures from theManagement Technical Assistance (MTA) consultant to DOF has not been adequately accomplished,because a counterpart officer was not consistently assigned to work with the consultant during theconsultant's engagement.

8. The GOB has been committed to intensive monitoring of all fishes in stocked floodplains inorder to allow a detailed evaluation of the program. DOF has successfully taken over monitoring ofexisting and new floodplains from the consultants.

9. Despite a slow start, the research objectives were achieved, and the results were applied by DOFto project operations. Dissemination of research findings at the fishing community level has beenachieved through extension and production and circulation of simple booklets in the national language.Beyond the original objectives, FRI has produced a preliminary categorization of floodplains byproduction type with modified stocking procedures appropriate to each category, which is an essentialstep for any future stocking assessments. The fish hatchery at Shantahar, which was transferred fromDOF to FRI, has been successfully converted into an effective research station for inland fisheries.

10. The primary objective of the NGO involvement was to assist DOF with organization of thefishing communities to improve their capacity to understand and participate more fully in the floodplainstocking program. The NGO intervention itself has had a radical effect in many instances on the abilityof the fishing groups to organize themselves to take advantage of increased benefits and has alsofacilitated cost recovery. The transfer of leases from the MOL to the MOFL was an essential precursorto this, for it allowed the issuance of fishing licenses as proscribed under the New Fisheries ManagementPolicy. The use of group bank accounts and the willingness of DOF to issue licenses against bankreceipts as demonstrated for some floodplains has increased transparency and provided a futuremechanism for savings to be accumulated for community stocking.

29 Appendix A

11. Concerning social benefits of the floodplain stocking program, results achieved include:increased awareness of improved inland fisheries management and group organization at the local level.Initially, there was some inequity in the distribution of benefits with a high percentage not going to thetargeted rural poor; however, with NGO intervention in later years, there has been significantimprovement in the distribution of benefits.

12. Shrimp Culture Component. About 10,400 ha of shrimp/rice culture farms of the planned13,000 ha in the SAR were taken up under the project. The shortfall in area developed was due to a latestart as a result of delays in appointment by BWDB of the design consultants and major, innovative re-design of the component to reduce land acquisition through optimizing the use of existing canals in thearea. The re-design was also more cost effective, simplified infrastructure requirements, and reducedenvironmental impacts of polder development by returning the ecological condition closer to that whichexisted prior to embankment construction. The available data indicate that for the polders developedunder the project, there has been an overall shift toward small landowners actively taking up shrimpfarming with the overall percentage of leasing to outsiders down from 66% to 47%, with activeinvolvement of owners up from 34% to 53%. Some landowners also lease to neighboring land owners.For organization and management of the project areas, the NGO assisted in forming Block and SluiceGate Management Committees. Overall, the amount of extension information of improved shrimpculture and environmental management (harvest of shrimp to allow timely planting of rice; selectivecollection of shrimp seed and conservation of other species) provided to the farmers increased as a resultof the NGO's efforts in disseminating information provided by the DOF. Although little has beenachieved to date to show incremental increases in shrimp production due to many of the infrastructureelements not yet completed, in addition to Bangladesh shrimp farms being adversely affected since early1996 by a highly virulent white spot shrimp disease, projected incremental benefits with completion ofinfrastructure and anticipated reduction of shrimp disease within one year show the ERR still to be atleast 20%.

13. Other Fisheries Component. The SAR objectives of this pilot component were to initiate 55 sub-projects, concerning private sector promotion of pond culture, minor floodplain, river, and freshwatershrimp culture development. These sub-projects were to be formulated with the assistance of ThanaFisheries Officers toward providing employment opportunities primarily for groups of landless women.There was also scope for applied research initiatives to be included. Of the 55 sub-project target, 32were appraised and mostly implemented satisfactorily. The reasons for the shortfall in number are dueto: (a) a late start of the component; (b) the complexities of formulating sustainable sub-projectsoriented toward poverty alleviation among the rural poor; and (c) lack of experience among DOF officersto formulate acceptable proposals required by the project with an emphasis upon poverty alleviation.DOF narrowed the scope of the component to pond culture development, including in some instancespolyculture of freshwater prawns and integration with livestock, due to DOF's greater experience withpond culture techniques. One clear advancement as a result of the component, however, has been theimprovement of and experience gained by the DOF officers to prepare, plan and implement projects withthese objectives through direct interaction with women's groups. The results of the component'simplementation have been mixed. Some sub-projects worked well with clear ownership by thebeneficiaries, helping to assure sustainability, and others not succeeding as well due to technical andsocial problems which can be attributed in part to DOF's lack of required capacity with the socialcomplexities of such initiatives during the early stage. In addition, as part of DOF's extension program,financial management training for the beneficiary groups needs to be provided, as part of sub-projectpreparation activities to assure that there is advance knowledge and acceptance of how the benefits

30 Appendix A

would be distributed. There are examples of the diffusion of improved technologies as demonstrated bythe fish drying project at Chanda now being replicated at Moller Bee].

14. Institutional Development Component. The substantial management element of this project,particularly via the ODA funded MTA component, laid emphasis on improved management capacitywithin DOF, particularly in the fields of procurement, contract management and intensive monitoring.An unusual feature was the equal emphasis on regional as well as central capacity. Regional DOF staffgained confidence in using a computerized stocking management system, and introduction of the systemgreatly assisted production monitoring, record keeping, and timely reporting. Similar gains were madecentrally, but overall capacity for coordination and informnation management at all levels still requiresstrengthening. Over the duration of the project, there were increasing numbers of women fisheriesofficers working on the project. Increasing numbers are operating at field level [Thana Fisheries Officer(TFO)I.

15. Technical Assistance (TA) Component. The overall performance of TA provided by the UNDP-funded Support Technical Assistance (STA) consultancy executed by IDA and the ODA-fundedManagement Technical Assistance (MTA) consultants was satisfactory. STA support was valuable in theareas of production monitoring, fish disease, shrimp farm planning and social activities by NGOs. MTAsupport has been valuable in the areas of floodplain stocking management and production monitoring.Further, MTA has been instrumental in creating innovative enhancement in DOF's technical andadministrative capacity at the local level. In the early stages, there were performance problems withSTA senior management which were rectified by changes in personnel. Evaluation of training by a GOBcommittee found the overall performance to be satisfactory. A shortcoming of the outcome was thetransfer or departure of a small proportion of trained staff from the project. These staff changescontributed to some loss of consistency and progress with project implementation.

E. Future Operation/Sustainability

16. Floodplain Component. Significant organization of beneficiaries has been undertaken by DOFand the NGOs, and cost recovery has been initiated. A series of participatory workshops that included allcategories of stakeholders have been held to arrive at a mutually agreed master work plan for sustainablefingerling stocking under the project. This sequential action plan which involves co-managementincludes technical, organizational and licensing procedures. The key element is fully representative BeelManagement Committees which now exist for each floodplain. The plan is in Bangla and is possessedby stakeholders at all levels. The plan lays out the rules and responsibilities of all parties, includingincreased contributions by its beneficiaries to the stocking process. Originally, DOF produced apreliminary plan for continued GOB fingerling stocking with progressive annual reduction until it isphased out in 2002. The difference would be made up by increasing the contributions from beneficiaries.Accordingly, over 8 mt of fingerlings have been provided to date by the beneficiaries themselves.However, to assure sustainability, public stocking of the floodplains taken up under the project would berequired until the respective fishing communities have gained the capacity to stock fingerlings throughtheir own means. Continued NGO support needs to be provided up to December 31, 1997 as discussedin paragraph 10 of the Attachment. The mission's view is that without NGO support and continuedGOB fingerling stocking (until the beneficiaries themselves have the capacity to do this by themselves)of the floodplains taken up under the project, there is strong likelihood that required group participationwould not continue, resulting in inequities in the distribution of benefits away from the poor fishingcommunities, and the organization and effectiveness of the floodplain program achieved to date wouldfail. At the wrap-up meeting, it was agreed that the DOF would formulate by December 27, 1996 adetailed, time-bound action plan for continued involvement of NGOs and fingerling stocking in the

31 Appendix A

floodplains taken up under the project. This plan involves submitting a formal request through ERD toUNDP to extend the ProDoc to allow NGO involvement to continue through December 31, 1997. Toprepare for the eventuality that an extension on the basis of the ProDoc is not feasible, MOFL will alsoimmediately begin the preparation of a TAPP for this work to be financed by UNDP. Concurrently,immediate steps would be required to prepare tender documents for fingerling stocking in July/August1997. These steps would take place while a summary evaluation as suggested by ECNEC of thefingerling stocking program is being conducted and would be completed by January 31, 1997.

17. FRI will continue research initiated under the project. It was recommended at the wrap-upmeeting that during 1997, FRI will continue its related inland fisheries research, provided their staff andoperating costs can be covered by the revenue budget. If this is not feasible, FRI should prepare andsubmit a proposal for contract research financing from the IDA-assisted Agriculture ResearchManagement Project.

18. Shrimp Culture Component. A number of specific actions being taken by DOF and BWDBneeds to be completed as part of the ongoing development of the component to assure the componentachieves its objectives and becomes sustainable. The actions include: (a) cancellation of leases of publiccanals in the project area; (b) acquisition of some land for the construction of new water supply channels;(c) revision of the Government Act conceming cost recovery as discussed in paragraph 5; (d) extensionof NGO (CARITAS) support through December 31, 1997 (See paragraph 13 of the Attachment); (e)formulation of an action plan for turning over the operation and maintenance responsibilities and theprovision of training and an operational manual for these facilities to the beneficiaries; (f) repair of anydefects in water management structures constructed under the project; and (g) continued efforts by theDOF to encourage farmers to take up environmentally sound shrimp culture practices to help minimizethe prevalence and impact of shrimp diseases. From other experience in the region, the impact of whitespot shrimp disease has been shown to decline in recent years in part due to the application ofenvironmentally sound shrimp farming management practices. The mission recommended and it wasagreed at the wrap-up meeting that the DOF and BWDB, per their respective responsibilities, wouldprovide the resources necessary to accomplish the above noted actions, without which it is likely that thebenefits of the investments to date will not be achieved.

19. Other Fisheries Component. DOF recognizes that the sustainability of these sub-projects ishighly dependent upon the technical soundness of the schemes, the technical know-how of the groups,the term of lease for the water areas operated by the groups, and the organization and cohesiveness ofand the financial management of the groups. In cases where a sound footing has been achieved for eachof the above, there is a strong likelihood that the respective sub-project would be sustainable. For others,without these attributes, the prospects for their continued operation are slim, with some already havingceased operation. DOF plans to continue providing technical guidance to the ongoing sub-projects aspart of their regular extension duties in the project areas.

F. Next Steps in ICR Preparation

20. The Bank will prepare and submit to GOB and co-financiers a draft ICR within 2-3 months afterthe ICR mission for comment. The mission recommends that GOB and co-financiers' comments on theBank's draft ICR be sent to the Bank within one month of receiving the report. DOF should beresponsible for coordinating all of GOB's comments. The comments will be incorporated before the ICRis issued.

32 Appendix A

21. GOB will prepare its own evaluation report on the project which should be submitted to the Bankwithin three months from January 1, 1997. A summary is required if the report is longer than 10 pages.GOB's evaluation report/summary, to be attached unedited to the ICR, should include:

(a) an assessment of the project objectives, design, implementation, and operation experience;

(b) an evaluation of GOB's own performance during the evolution and implementation of theproject, with special emphasis on lessons learned that may be relevant in the future; and

(c) an evaluation of the performance of the Bank and co-financiers during the evolution andimplementation of the project, including the effectiveness of the relationship among theBorrower, the Bank, and co-financiers, with special emphasis on lessons learned.

The report should also include a plan for the operation phase of the project as well as performanceindicators to be used to monitor operations and development impact.

Attachment

BANGLADESHTHIRD FISHERIES PROJECT. CREDIT 2146-BD

IDA SUPERVISION MISSION- OCTOBER 1996

AIDE-MEMOIRE

Introduction

I . Messrs. 1. Ahmad, S. A. M. Rafiquzzaman and M. Sayeed (IDA) carried out a supervision of theproject. Mr. Jan Weijenberg, Head, Agriculture and Natural Resources Unit, RMB, participated in fieldvisits and key meetings with the implementing agencies. As explained in IDA's letter of September 26,1996 to the Government, this mission focused on actions needed for completion of remaining projectactivities and preparatory works for the supervision and Implementation Completion Review (ICR)missions, which will be conducted from November 24, 1996 to December 19, 1996. The mission wishesto thank the staff of the Department of Fisheries (DOF), Fisheries Research Institute (FRI), BangladeshWater Development Board (BWDB), and Management Technical Assistance (MTA) Consultants fortheir cooperation. This aide-memoire records the findings and recommendations of the mission.

Summary

2. The overall status of the project has considerably improved compared to that reported by theIDA Mid-term Review Mission (MTR) in early 1994. However, because of initial delays, the physicalprogress of the three main project components--- stocking of floodplains, development of shrimpculture infrastructure, and promotion of Other Fisheries (OF) activities--- remains below the StaffAppraisal Report (SAR) targets. During the 1996 stocking program, 43,500 ha of floodplains (43% ofthe SAR target and 73% of the revised target) have been stocked compared to 24,000 ha in 1994.Implementation of the shrimp culture component, which was delayed by about two years due to late startof infrastructure works, has improved. The revised physical target is 10,400 ha, or 80% of the SARtarget. Implementation of the OF component, which was also delayed, started from late 1994. At present32 OF activities are in operation, or 58% of the SAR target. At the wrap-up meeting, the MOFL/DOFmentioned that deficiencies in project design was one of the reasons for non achievement of the SARtargets. The mission informed that the December 1996 ICR mission would analyze the design issue.

3. The project currently faces two issues: sustainability of the floodplain stocking program (para 8),and poor construction quality of some of the shrimp sluices constructed under the supervision of BWDB(para 12). To address the first issue, the mission recommends that the NGO contracts, which arefinanced under the IDA-executed and UNDP-funded TA component, be extended by a year toDecember 31,1997 to allow them to continue the recently initiated sustainability activities, thepreliminary results of which are encouraging. To address the second issue, at the request of IDA, theMinistry of Water Resources (MOWR) has constituted an independent committee to examine the poorquality of sluices and to recommend corrective measures. On December 14, 1996, BWDB informed IDAthat the committee submitted its report on December 4 and that the MOWR would act on it shortly.

Actions Taken Since Last IDA Mission in May 1996

4. DOF, in collaboration with MTA, NGOs and beneficiaries, has evaluated the gearlicensing/NGO programs and has prepared a workplan for sustainable fingerling stocking program.

34 Appendix A

5. MOFL and DOF closely monitored the impact of measures, prescribed by DOF, to prevent thespread of the shrimp disease (para 14).

6. Consultants, in collaboration with BWDB and beneficiaries, have prepared a cost recoverymanual. However, the manual needs to be revised (para 15).

Floodplain Stocking Component

7. Viability of Stocking Program. The stocking program is technically and economically viable.Overall, fish production continues to increase. The latest fish production data show that stocked fishharvested increased ten times the weight of fingerlings stocked. According to MTA, the ERR for asample of eight stocked floodplains is 38%, ranging from 29% to 122%. It has been agreed thatMTA/DOF will estimate the ERR for all 23 stocked floodplains and the results will be made availableto the ICR mission

8. The sustainability of the stocking program has yet to be established. Originally, the sustainabilitywas thought to be guaranteed when Government could recover the costs of stocking through a leasingsystem, in 1995 changed to a licensing system following the agreements reached during the 1994 MTRmission (para 23). Subsequently, it was realized that real sustainability can only be attained once thebeneficiaries are in a position to manage the floodplains and contact for restocking. This approach isnow being piloted with the assistance of NGOs, which, due to procedural delays, were appointed late lastyear only. However, despite these delays, a start has been made with the 1996 stocking program intransferring the management and financing of stocking programs from the Government to thebeneficiaries. First, with the formation of Floodplain Management Committees, there has been fargreater involvement of the local community, including poor fishermen, in terms of release andconservation of fingerlings. Second, although still less than targeted, more fingerlings were contributedby the beneficiaries than in any previous year--over 6 mt. in Rajshahi division and 2.3 mt. in Khulnadivision. Third, a much more thorough and equitable gear licensing system has been introduced this yearand, although final results will not be available before December 31, 1996, there is optimism that therewill be a significant increase in amounts collected.

9. The above is only a start and needs to be sustained to ensure that beneficiaries will indeed beable to take control of floodplain fisheries management. However, DOF have neither the resources northe necessary skills to sustain such a program. The mission, thus , strongly urges the Government toextend the NGO contracts by a year to December 31, 1997. The mission wishes to point out that theGovernment would find the experience gained during the extended period helpful in designing asustainable stocking program under the proposed IDA and other donor- assisted Fisheries SectorInvestment Project.

10. Extension of NGO Contract. At a meeting held in the MOFL on October 28, 1996 to reviewthe UNDP-funded TA component, both UNDP and IDA in principle endorsed such an extension. It wasadded that NGOs should start making plans now as to how floodplain fisheries management activitiescould be incorporated into their regular programs. Further, NGOs should also aim at graduallywithdrawing their support services so that local communities could eventually manage the floodplainsthemselves. The MOFL and other Government representatives indicated that extension of NGOactivities by a year to December 31, 1997 would be a problem since the project, based on the ADP, willclose on June 30, 1997 and as such will not be able to handle funds beyond that period. IDA clarifiedthat payments to NGOs would not be a problem since, IDA, as the executing agency for the UNDP TA,would be able to do so directly, as is now being done. UNDP indicated at the meeting that there is a

35 Appendix A

precedent that a TA supported by UNDP continued after closing of the investment part of that project. Inresponse to a request by MOFL to support the NGO activities under a new project, UNDP indicated that,besides administrative problems, there would be a discontinuity of the NGO program.

11. The MOFL decided at the meeting that the current TA activities would close on December 31,1996, as scheduled, and that the NGOs would be requested to immediately submit a proposal onsustainability of the stocking program ,as referred to in para 8, for consideration by the Government. TheMOFL, however, did not clarify the source of financing the NGO activities. At a meeting held onNovember 5 at DOF, it was agreed that the NGOs would submit their proposals by November 20. Themission urges MOFL/DOF to review the proposals and to request UNDP for funding the new activitiesfor a year under the ongoing TA. It was agreed that DOF would submit the proposals to the MOFL byNovember 30. DOF has received the proposals and now plans to submit those to the MOFL by December19.

Shrimp Culture Component

12. Status of Infrastructure Facilities. The facilities are expected to be fully functional from thenext shrimp season in March 1997. The remaining works are reexcavation of canal sections andrectification of some of the sluices. The reexcavation works have been hampered ,in some cases ,due toleasing out of khas (govemment -owned) canal sections to shrimp farmers by the Ministry of Land(MOL). The mission has been informed by DOF that the MOFL has recently requested the MOL tocancel such leases. The mission requests MOFL/MOL to expedite the process. Regarding rectificationof sluices, the independent review team, constituted by the MOWR, submitted its report to the MOWRon December 4, 1996 (para 3).

13. Extension of Caritas Contract. The mission recommends that, given the delays incommencement of infrastructure works, the support initiated by Caritas be continued for another year toDecember 31, 1997. This includes formation of Block Committees and Sluice Committees, motivationof small farmers to go for shrimp farming themselves instead of leasing out their land to outsiders, whoare reported to be the ones mainly responsible for social and environmental problems, and assisting thebeneficiaries in operation and management of structures. The initial results of Caritas' support areencouraging--Committees have been formed and the number of small farmers involved in shrimp culturehas increased. However, to consolidate and sustain Caritas' work, their contract needs to be extended fora year. At a meeting held at the MOFL on October 28, 1996, UNDP indicated that it would considerfunding Caritas' work provided the suggestions made by the 1994 GOB/UNDP/IDA Mid-termEvaluation Mission to provide support to landless and women's groups in shrimp culture activities areincorporated in Caritas' extended contract. It was agreed that, by December 15, 1996, DOF wouldsubmit a proposal to MOFL for consideration. This action is pending.

14. Status of Shrimp Disease. As reported by the IDA May 1996 supervision mission, the shrimpculture program of the 1996 season (January-July) was hampered due to the outbreak of a shrimp diseasecaused by the so called China Virus. DOF and MTA consultants preliminary estimates indicates that theproduction loss is 55%, or 1.0 million kgs. of shrimp worth US $ 6.8 million. The mission recommendsthat the estimate be updated before the ICR mission. There is no treatment for this virus. Prevention isthe only method. The project has issued posters/leaflets alerting farmers about preventive measures andhas conducted training/awareness programs. As a national response to this problem, the MOFL/DOF hasinitiated a series of training programs in the shrimp growing areas of the country.

36 Appendix A

15. Status of Cost Recovery. The shrimp culture cost recovery covenant (Section 10 of theDevelopment Credit Agreement, DCA), which requires recovery of investment and O&M costs ofshrimp culture civil works from the beneficiaries within a 20-year period, needs to be amended. In 1993,the Government framed rules, which IDA endorsed, that require recovering of O&M costs only to beginone year after completion of works and harvest of shrimp. Under the project, the first O&M charges areexpected to be due in May 1997. However for the sustainability of the program, during the IDA May1996 supervision mission, it was agreed that the BWDB consultants would be requested to develop acost recovery model whereby the beneficiaries would be responsible for collection of fees and O&M.The consultants have submitted a draft, which generally indicates the role of beneficiaries in terms ofO&M. It should also indicate mechanisms for collection of fees by beneficiaries. The missionrecommends that the draft be revised to include the latter, and that, in doing so, the consultants take intoaccount the cost recovery model piloted in one of the sub-projects (Karnaphuli Irrigation Project) underthe IDA-assisted Systems Rehabilitation Project. It was agreed that BWDB would revise the draft (para16).

16. Since the implementation of the new model will take time the mission recommends that (a)MOWR/BWDB send, through ERD, a request to IDA to amend the cost recovery covenant so thatcollections could start from May 1997 based on the Government's 1993 decision, and (b) submit anaction plan showing the various steps needed to initiate collections. The mission would like toemphasize that the action plan should also cover areas supported under the IDA-assisted Shrimp CultureProject, which closed in 1993. The Government's decision also applies to this Project, which had asimilar cost recovery covenant. On December 14, 1996, BWDB convened a follow up meeting on costrecovery. IDA and DOF participated at the meeting. BWDB informed that implementation of the 1993cost recovery rules (para 15) has not been satisfactory mainly due to three factors: first, BWDB does nothave adequate field staff for assessment and collection, second, the rules do not provide for involvementof DOF staff, which is needed to assist BWDB on technical matters, and third, the rules do not providefor consultations with beneficiaries at all stages of construction. BWDB recommended that the rules berevised to specify the role of DOF staff, and to involve beneficiaries in collection of fees and O&M. ByDecember 19, 1996 BWDB would submit a proposal to IDA to amend the DCA cost recovery covenantto include only O&M costs and to allow beneficiaries' participation in collection and O&M.

Other Fisheries(OF) Component

17. At present 30 of activities, including 16 involving groups of landless women, are in operation.At present, a committee, comprising representatives of DOF, FRI, and MTA, is evaluating theperformance of the OF activities and its report will be made available to the ICR mission. The missionvisited a landless women's group in Khulna engaged in fresh water shrimp and fish culture. Thebeneficiaries informed the mission that their shrimp harvest was unsatisfactory because of widespreadmortality, reportedly caused by a disease. The beneficiaries complained that they had not received anytechnical advice from DOF as to how to address the problem. They decided that, in future, they would gofor fish culture only. The mission is concerned at DOF's lack of response to the needs of thebeneficiaries. The mission recommends that, by November 20, 1996, DOF examine the issue and , inconsultation with the beneficiaries, restructure the activity so that beneficiaries can financially sustain it.At the wrap -up meeting DOF confirmed that action has been taken.

37 Appendix A

Divestment of DOF Fish Seed Farms (FSF)

18. On October 30, 1996, DOF informed IDA that the MOFL had approved the lowest responsivebids for six out of the eight FSFs which would be divested based on long term lease. At the wrap- upmeeting DOF confirmed that work orders had been issued for the six FSFs. Of the two remaining FSFs,no tender was received for one, and the rate for the other was rejected. The MOFL has requested DOF toarrange retender for the remaining two FSFs. The mission requests MOFL/DOF to award the bids and toarrange retender by November 20, 1996.

DOF Civil Works

19. The mission visited Savar to review the construction works of the DOF Training Academy. Theworks have been planned for completion by December 15, 1996. The mission estimates that substantialworks will be completed by the Credit closing date. The reason for the delay is that the contractors hadnot received timely payments from DOF due to non approval status of the revised Project Proforma (PP).However, this issue has been resolved as the PP has been recently approved. The remaining works will

be completed using Government resources. The mission observed that the quality of concrete works inthe columns and beams, in terms of line, grade, and surface finish, was not satisfactory. On November12, 1996, DOF informed IDA that they had instructed the contractor to rectify the defects and that,pending rectification by the contractor and certification by the supervision consultants, no paymentwould be made to the contractor. The mission reguests that a status report be submitted to IDA byNovember 20, 1996. The MOFL mentioned that, by December 15, 1996, it would submit ( through ERD)a request to IDA to extend the civil works category of the Credit by three months to complete theremaining civil works of the Training Academy. Further, a similar request would be made to completethe remaining shrimp culture civil works (para 12). IDA has received requests from MOFL and MOWR.A request from ERD is awaited.

Project Accounts and Audits

20. In collaboration with the implementing agencies, the mission estimates that, by the Creditclosing date, out of the revised Credit amount of US $ 18.2 million equivalent, US $ 15.6 millionequivalent will be utilized. IDA will cancel the unutilized amount after final disbursement of withdrawalapplications received before April 30, 1997 (reference IDA's letter of September 24, 1996).

21. The FY 96 audit reports will be due for submission to IDA on March 31, 1997. The Directorateof Audit, Foreign Aided Projects has initiated the audit of project accounts and expects to submit thedraft reports to the implementing agencies for comments by December 31, 1996. The missionrecommends that the implementing agencies submit their comments on the draft reports expeditiouslyso that the final reports are submitted to IDA by the due date.

Implementation Completion Report (ICR)

22. The policy of the Bank is to evaluate completed projects, and it requires borrowers also to do so.The ICR is prepared by a completion mission, which generally constitutes the final supervision prior to

the closing date of the credit (para 1). The ICR is distributed to the Bank's Board not later than sixmonths after the closing date. The borrower prepares and makes available to the Bank its own evaluationreport on the project's execution and initial operation, cost and benefits, the Bank's and borrower'sperformance of their respective obligations under the credit. A summary of this report (or the full reportif it is ten pages or less) is annexed unedited to the ICR. The borrower also (a) adopts a plan acceptable

38 Appendix A

to the Bank for the operational phase of the project and (b) assists the Bank in ICR preparation. Themission has shared with DOF and MTA the format of the ICR and agreed with them on the types ofreports to be made available to the [CR mission by the implementing agencies (reference MTA's letter ofOctober 21, 1996).

Status of Legal Covenants

23. The project is generally in compliance with the legal covenants. There is, however, onecovenant, which has been partially met, and one which will require an amendment. The first covenantconcerns the recovery of public cost of stocking. Schedule 4, Para 10 of the DCA stipulates 30%recovery of public cost of stocking by July 1, 1995. Collections in the past, based on the leasing systemand without assistance from NGOs, have been minimal --less than 4%. With the introduction of thecommunity-based licensing system , contributions in kind by beneficiaries ,and the involvement ofNGOs from the 1996 stocking season, collections by December 31, 1996 are expected to be close to 30%(para 8). The second covenant concerns the recovery of investment and O&M costs of shrimp culturecivil works from the beneficiaries. The covenant will have to be amended to reflect recovery of O&Mcosts only ( para 15).

Performance of Technical Assistance (TA)

24. The overall performance of TA provided by Support Technical Assistance (STA) consultants,funded under the UNDP component executed by IDA, and by the Management Technical Assistanceconsultants, funded by ODA, was satisfactory. STA support was valuable in the areas of productionmonitoring, fish disease, shrimp farm planning and social activities by NGOs. MTA support has beenvaluable in the areas of floodplain stocking management and production monitoring. Further, MTA hasbeen instrumental in creating innovative enhancement in DOF capacity at the local level. In the earlystages there were problems with STA senior management which were rectified by changes in personnel.

25. Evaluation of training by a GOB committee found the overall performance to be satisfactory.The mission endorses this. A shortcoming of the outcome was the transfer or departure of a smallproportion of trained staff from the project.

Appendix-B

IMPLEMENTATION COMPLETION REPORT

BANGLADESH

THIRD FISHERIES PROJECT(Credit 2146-BD)

Borrower's Evaluation

PROJECT REVIEW FROM BORROWER'S PERSPECTIVE

A. IDA Performance:

1. Project Objectives: It had a wide range of objective of which main ones are as follows:

(1) Increasing the income particularly of the poor, and producing fish and shrimp for domesticconsumption and export through: (i) improving floodplain fisheries management and promotingaquaculture, (ii) making improvements in public infrastructure (improved polder embankments,sluices and foot bridges over water channels) on poldered land already under shrimp culture, (iii)assistance to under-privileged groups including women and assisting small land owners to gointo shrimp production themselves rather than lease their land to the rich for shrimp farming, and(iv) carrying out of other fisheries development activities; studies and provision of extensionservices at the District and Thana levels for fresh water shrimp production and other fisheriesactivities in ponds, lakes rivers and minor floodplains.

(2) Supporting the fisheries development program in the West (the project area) withemphasis on private sector participation through involving the private sector in fingerlingproduction and floodplain stocking.

(3) Accelerating the expansion of fish production in the floodplains through: (i) stocking offloodplains with fingerlings, (ii) better fisheries management, and (iii) carrying out researchprojects, including ecological assessment of fish food, food, fish disease, fishing gear infloodplains, and catch effort parameters in coastal fisheries.

(4) Strengthening sectoral institutions through: (i) logistical support and technical assistanceto the Department of Fisheries (DOF), including on-the-job, in-service, and overseas training inmanagement and fisheries related areas, and construction and rehabilitation of office and trainingfacilities and (ii) technical assistance to DOF, Fisheries Research Institute (FRI), andBangladesh Water Development Board (BWDB) for carrying out technical and socio-economic,studies, organizing shrimp farmers and fishers.

2. Design and Implementation: IDA mission, in consultation with GOB Officials, rightlyidentified 3 directly production oriented components-Floodplain Fisheries Development throughfingerling stocking, Development of Coastal Shrimp Culture and Other Fisheries Developmentand 3 supporting institutional strengthening components. Project was a very complex one

40 Appendix B

considering its (i) new and untested component of floodplain fisheries development, (ii) newapproach for undertaking different package programmes of innovative nature / ideas to beconceived, planned and implemented locally (Thana/District level) involving local destitutetarget group and (iii) new concept for using beneficiaries group's own land, instead of acquiringland by the government and low cost design for coastal shrimp culture infrastructure. There wasno programme for sustaining floodplain stocking programme, in general, except a cost recoverycovenant / provision. An annual target of 100,000 ha floodplains to be stocked with fingerlingsfrom 3rd year of stocking under the project was unrealistic considering its new and untested fieldof interventions and institutional weakness and complexity. Money allocated for other fisheriesdevelopment was too high in consideration of its new approach of implementation and lack ofany implementation guideline. Flexibility in project execution was limited and restricted, tosome extent.

2. Monitoring and Supervision: Monitoring and supervision by the Bank was excellent.Regular monitoring and effective support and flexible and positive attitude of the Bank, the RMBin particular, along with the efforts of executing agencies, lead the project to success, althoughthe project was very complex in nature, realising the flaws of project design and complexity ofimplementation the Bank agreed to change some criteria and relaxed some conditions of theproject in some cases. In spite of Bank's efforts, however, the implementation had slowed downand target of area coverage and amount of money earmarked to be spent could not be achieveddue to some design flaws and rigidity on some issues like cost recovery covenant, defined projectarea and likewise. Half yearly supervision by the Bank was helpful to detect and overcomeconstraints and shortcomings of implementation. Joint midterm review of the project inDecember, 1994 by the Bank, two other Cofinanciers (UNDP & ODA) and the GOB couldprovide fruitful guidelines in order to overcome some outstanding problem and to take somedecision emphasising on quality but not quantity of work or achievement of the project such ascancellation of huge surplus loan money, appointment of NGOs in stocked floodplain area inorder to continue and sustain achievement and result of project activities. Earlier deployments ofNGOs in stocked floodplain areas could help sustain stocking programme by way of transferringwhole management of stocking programme by the target group.

B. Borrowers Performance: There was no prior arrangement for bringing Govt. ownedwater estates (Jalmohals) of floodplains to be stocked under the project. But due to continuousefforts made by the executing agency and rapid actions taken by the Govt. the project couldachieve substantial progress in expanding stocking programme up to 43,500 in the last year ofthe project. The set target of stocking floodplains of 100,000 ha could not be achieved due tocountry's complicated and cumbersome procedure for acquiring water estates (Jalmohals) for thepurpose. Because of careful efforts, the project could achieve qualitative change and progress interms of per ha incremental fish production, incremental income of fishers and fish intake instocked area. Although there was unusual delay in starting the activities under "Other FisheriesDevelopment" component due to absence of any implementation guideline and procedure theproject could effectively demonstrate some sustainable progress in the form of self sustainedfisheries activities by some downtrodden/destitute groups one half of which is women. Within arecord period of time the Fisheries Training Academy has been constructed and established.Target fisher community, belonging the lowest strata of our society contributed to and shared in

41 Appendix B

the stocking cost, which is completely new in fisheries subsector. Although recovery has notbeen achieved at desired level but it is a good example in our social context.

C. Relation between the Bank and the Borrower: Relation between the Bank and the GOBwas excellent and very helpful for project implementation.

D. Performance of Cofinanciers: Co-operation and assistance of two Cofinanciers - theUNDP & the ODA (British), was excellent and very helpful in project management, training inundertaking some useful studies, research monitoring including some other support services.

E. Key lessons learned: As mentioned in the draft ICR/96 by the World Bank (I).Additional one lesson - Development Programme for floodplain fisheries should includemeasures for both mitigation and compensation, either combined or individual. Mitigationmeasures should be given more emphasis and priority.

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Report No.: 16682Type: ICR