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Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 17866

IMPLEMENTATION COMPLETION REPORT

BOLIVIA

EASTERN LOWLANDS: NATURAL RESOURCE MANAGEMENTAND AGRICULTURAL PRODUCTION PROJECT

Credit 2119-BO

May 13, 1998

Environmentally and Socially Sustainable DevelopmentLatin America and the Caribbean 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 withoutWorld Bank authorization.

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CURRENCY EQUIVALENTS(As of April 20, 1998)

Currency Unit = Bolivianos (BOB)BOB 5.47 US$1.0

FISCAL YEAR: January 1 -December 31

LIST OF ABBREVIATIONS

CAO - Camara Agropecuaria del OrienteCIAT - Tropical Agriculture Research CenterCIMA - International Environmental CommitteeCORDECRUZ - Corporaci6n de Desarrollo de Santa CruzKfW - Kreditanstallt fur Wieder AujbauICR - Implementation Completion ReportINRA - Instituto Nacional de Reforma AgrariaNAFIBO - Nacional Financiera BolivianaNGO - Non Governmental OrganizationPLUS - Land Use Plan

Vice President: Shahid Javed BurkiDirector, Country Management Unit: Isabel GuerreroDirector, Sector Management Unit: Maritta Koch-WeserTask Manager: Matthew A.. McMahon

FOR OFFICIAL USE ONLYIMPLEMENTATION COMPLETION REPORT

BOLIVIA


(Credit 2119-BO)

TABLE OF CONTENTS

Page No.

Preface ....................................................... iEvaluation Summary ....................................................... ii

PART I: PROJECT IMPLEMENTATION ASSESSMEN'T

Introduction ....................................................... 1A. Project Objectives ........................................................ 1B. Achievement of Project Objectives .......................... .................. 3C. Implementation Record and Major Factors Affecting the Project..... 6D. Project Sustainability ....................................................... 7E. Bank Performance ....................................................... 7F. Borrower Performance ....................................................... 8G Assessment of Outcome ....................................................... 8H. Key Lessons Learned ....................................................... 9I. Future Operation ....................................................... 10

PART II: STATISTICAL ANNEXES

Table 1: Summary of Assessments .................................................... 12Table 2: Related Bank Loans/Credits ................................................ 13Table 3: Project Timetable ....................................................... 14Table 4: Credit Disbursements: Estimated and Actual .......................... 15Table 5: Key Project Indicators ....................................................... 16Table 6: Studies Included in Project .................................................. 18Table 7: Status of Covenant Compliance ............................................ 21Table 8(a):Project Costs .. 24Table 8(a):Project.Costs........................................................ 2Table 8(b):Project Financing ....................................................... 25Table 9: Economic Budget - Investment Costs .................................... 26Table 10: Bank Resources: Staff Inputs .............................................. 27Table 11: Bank Resources: Missions .................................................. 28Table 12: Status of Credit 2119-BO .................................................... 29

PART III: APPENDICES

Appendix A: Aide Memoire from Completion Mission ............................. 31Appendix B: Borrowers Summary Report ............................................ 37

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 withoutWorld Bank authorization.


BOLIVIA


(Credit 2119-BO)

Preface

This is the Implementation Completion Report (ICR) for the Eastern Lowlands:Natural Resource Management and Agricultural Production Project in Bolivia, for whichCredit 2119-BO in the amount of SDR 26.5 million (US$35.0 million) was approved onMarch 29, 1990 and made effective on January 7, 1991.

The credit was closed on December 31, 1997, one and one half years later than theoriginal closing date. Final disbursement took place on January 6, 1998, at which timethere was a balance of US$2.371million. The final balance to be cancelled will be knownwhen the Special Account has been recovered.

The ICR was prepared by Matthew McMahon of the Environmentally and SociallySustainable Development Unit of the Latin America and the Caribbean Regional Office,assisted by H.J. Nissenbaum (consultant) and Marlyn Caluag and Gladys Sakata(LCSES). The report was reviewed by Messrs./Mmes. Wiens, Werbrouck (LCSES),Crown (LCOQE), Nguyen (LOADR), Laver (LEGLA) and Bateman (LCC6C).

Preparation of the ICR began during the Bank's supervision mission of September1997 and was advanced during the Bank's completion mission of January 1998. TheBorrower has reviewed the report and its contribution to the ICR is contained inAppendix B.


BOLIVIA


(Credit 2119-BO)

EVALUATION SUMMARY

Introduction

1. In the late 1980s, the Bolivian Government requested IDA assistance to accelerategrowth in the country's agricultural sector. Agricultural outpult had sharply diminished inthe previous decade. Sector growth for 1980-87 period was -1.3 percent, while cropyields apart from soybeans had not significantly increased. At the same time, theGovernment's "New Economic Policy" launched in 1985 had set a landmark in macromanagement and stabilized the economy--but it had not reactivated growth.

2. The project objectives were to: (a) assist in the long-term development of theEastern Lowlands through the preparation and implementation of a land-use plan (PLUS)for the region; (b) increase over a five year period the production of profitableagricultural commodities, and strengthen the balance of payments position of Bolivia byincreasing annual exports of soybeans by about 200,000 tons, and substituting annuallyfor about 30,000 tons of wheat imports; (c) develop the technology and creditmechanisms to increase and sustain agriculture productivity; (d) improve the existingrural roads and storage infrastructure; (e) introduce market pricing of public lands; and (f)support the Ayoreos in the demarcation of their land and improve their living conditions,and assist the Chiquitanos in the demarcation of their tribal land.

3. These were risky undertakings as the Lowlands had not yet established sustainedagricultural development. In the decade preceding the project, the area sown to soybeans,which was the main crop of expansion in the area, rose from 41,000 ha in 1981 to171,000 ha in 1990, of which almost 80 percent was taken from forested land. Whilemost of this land was suitable for cultivation, it was feared at that time if expansioncontinued it would be done without regard for soil capability or appropriate management.Simultaneously, oil, gas, and timber development had increased with negligible attentionto natural resource sustainability. In addition to these problems, there were other projectuncertainties stemming from conflicts between these trends and indigenous tribes' landrights, which kindled serious disputes.

4. Suitably thus, the project objectives also called for measures to ensure the morerational use of Santa Cruz's natural resources. The project set out to develop the longterm land use plan and to cause natural resource management interests to be integratedinto agricultural investment decisions. It also set out to demarcate lands for theindigenous communities and to develop technology for sustainable agriculture and creditmechanisms for small farmers as well as address the issue of the pricing of public lands.

Achievement of Project Objectives

5. Preparation and Implementation of the Land Use Plan (PLUS) All activitiesrelated to this objective were successfully completed and a the Land Use Plan has beenissued. As a result, a 1995 decree established the land use plan as Santa Cruz's territorialstandard and instrument for governing land usage and its sustainable development. Theproject component (financed by KfW of Germany) also set up the technical office nowempowered to monitor the plan's implementation, and prepared it legally and technicallyto do so.

6. IncreasedAgricultural Production and Exports Bolivia's real annual agriculturalgrowth since 1987 of 1.5 percent has been strongly influenced by the expandedproduction in the Eastern Lowlands, the most salient features of which are as follows:between 1990 and 1996, agricultural exports from Santa Cruz increased 400 percent; thegross value of the Department's agricultural output rose from US$350 million to US$685million during the period 1990-96. It has been estimated that 37 percent of the increasedoutput could be credited to the project, producing US$115 million in annual returns.Assuming these increases are maintained through year 2009, the project's future IERRwas projected at 36 percent, twice that forecast in the SAR.

7. Development of Credit and Technology Mechanisms The credit componentfailed to contribute significantly through the extension of only 221 subloans, comprisingabout 16 percent of the anticipated number. Small farmers especially had great difficultyaccessing project funds because of collateral problems (smallholders' rural land was notaccepted for guarantees) and the intermediaries' reluctance to lend to them. Later on, thecredit component was halted while the Central Bank of Bolivia was setting up a secondtier bank, Nacional Financiera Boliviana (NAFIBO) to manage foreign credit lines.When this latter bank did come into existence, it did not agree with the Bank's conditionsto assume responsibility for the Project portfolio, and as a result, a large share of theseresources were cancelled.

8. In the technology area The Centro de Investigaciones Agropecuarias Tropicales(CIAT) contributed by producing new varieties and technological packages suitable tothe region, as well as their promulgation. Specifically, its new varieties and its work onwindbreaks, alternative tillage techniques and integrated pest management for thedifferent crop rotations were widely adopted. CIAT's work doubled the number ofsoybean varieties adapted to the area, as well as adapting varieties of wheat, cotton andrice to the conditions of Santa Cruz. The Project also supported extension activities ofseven producer associations with great success in extending new knowledge to theirmembers.

9. . Improvement of Rural Roads Road improvements under the project surpassedplanned levels. Thanks to unit cost savings, and the reallocation of more credit resources,some 410 km have been upgraded and better maintained, over a third more than the initialgoal.

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10. Introduce Market Pricing of Public Lands In 1992 the project assigned funds toa commission which overhauled all land legislation. These activities funded by theproject, led to the passage of the Agrarian Reform Law, which established market pricing;and the preparation of a Land Administration Project which is now being funded by theBank (Cr. 2742-BO).

11. Indigenous Component The objectives of the indigenous peoples componentwere achieved by the demarcation of approximately 250,000 has. of land, and theinstallation of schools and medical clinics in the communities.

12. Municipal Strengthening Development Plans were prepared for severalmunicipalities and roads designs were prepared for several provinces. A ruraldevelopment plan was also prepared for the indigenous cormmunities of San Jose deChiquitos and Robore.

Implementation Experience and Results

13. Project iimplementation was satisfactory despite some problems in the earlier partof the project as it took eight months to declare the Credit effective. In the case of theagriculture credit line, difficulties with the Central Bank surfaced immediately about themeans of setting interest rates and the creation of the planned "risk fund." There werealso problems in reconciling the project's credit scheme with the Central Bank's auctionsystem. These problems caused the public banks which dealt with small farmers to beconsistently outbid for access to funds.

14. Project implementation was most strained in the indigenous groups component.In this case, the Bank found itself in the position of trying to negotiate disputes betweencompeting factions, different Indian tribes, disparate NGOs,, and others. Fortunately, asatisfactory compromise was finally worked out, which took a lot of supervision effortfrom the Bank.

15. In the wake of these problems, a 1993 Bank midterm review missionrecommended refocusing of the project. Its recommendations led to accelerating the paceof, and expanding the scope of the PLUS and the indigenous peoples components, and tonew activities aimed at social development, assisting small farmers and povertyalleviation. These new directions largely governed the remainder of project activity untilits close.

16. Prospects for sustainability are good with the establishment of the Land Use Planand its technical office, CIAT's achievements in the area of technology generation, theproducer associations' extension initiatives, the assumption of road maintenance by themunicipalities, and the demarcation of indigenous groups' lands. This is furtherstrengthened by Forestry and Environmental Protection laws' stipulation that risky areaswhich have been deteriorating, especially national parks and biological reserves, must beshielded from commercial development. In addition, the Bank funded National LandAdministration Project is moving to improve the legal and regulatory framework for landuse, restructure the public agencies responsible for enforcement and establish a legalcadaster to secure property rights.

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17. The Bank's performance in this project is rated as satisfactory. The Bank'sinvolvement increased the Government's awareness of environmental problems inBolivia and helped mobilize the resources for their solution. Several economic and sectorreports completed before the project, called attention to the high rate of natural resourceusage nationwide. These reports and the accompanying dialogue, together with thisproject, were very constructive in helping to advance policies and instruments enhancingmore sustainable development of the area. Similarly the Bank's presence helped civicsociety in Santa Cruz focus on the issue of indigenous lands. Although this was a veryconflictive issue, the Bank's leadership helped to amalgamate the efforts of oftenopposing factions. The Bank also led a dialogue on such issues as the future financing ofagricultural research and extension, and land pricing policies which led to the creation ofthe land reform institute (INRA), which in turn developed the Agrarian Reform Law.Conversely, the failure to establish sufficiently firm and agreed machinery for agriculturecredit was a negative feature.

18. The Borrower's performance was satisfactory. The project unit, led by an ableproject director performed well, following the Mid-Term Review, in reviving theindigenous peoples component and guiding its improvements to greater success witheffective participatory methods.The project unit was also very effective in theidentification and implementation of road improvements in marginalized ruralcommunities. CORDECRUZ, the initial implementing agency, always gave strongsupport to the technology generation and extension aspects of the project and as a result,before its dissolution, it set up a trust fund of US$10 million to support the activities ofCIAT. However, the Central Bank was not very agile towards helping make Credit 2119-BO monies competitive in the market or in carrying out agreed studies.

19. The project's outcome is rated as satisfactory, by having achieved itsdevelopment objectives of: (a) initiating the long-term, rational management of theEastern Lowlands natural resource base; (b) developing the technology to increaseagricultural productivity on a sustainable basis; (c) improving rural infrastructure in theEastern Lowlands; (d) improving the living conditions of the Ayoreo indigenous groupand helping to demarcate indigenous lands. Its accomplishments also helped improvethe balance of payments and trade accounts. This export expansion was badly neededwhile Bolivia was trying to escape from its grave economic crisis.

Key Lessons Learned:

20. The main lessons were that:

(a) It is important for the Bank to bring issues of the environment, ethnicity orgender to the development dialogue in countries where these issues are stillnot on the agenda. In the case of the Eastem Lowlands Project, IDA's role inintroducing environmental and indigenous concerns into the developmentdialogue in Santa Cruz was crucial. At the time of project preparation theGOB's objective was to expand production for increased exports. In thesubsequent dialogue this objective was tempered by the identification ofenvironmental and indigenous concems, which led to the development of theLand Use Plan and the demarcation of the indigenous lands.

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(b) It is important for the Bank to explore other channels in civil society to solvedevelopmental or social problems. This was important in the IndigenousComponent where IDA's persistence and patience in resolving the issues paidoff. This was an extremely conflictive issue, that required several years tosolve but which IDA considered to be very important. Working closely withcivil society i.e. beneficiaries, NGOs, churches etc., finally led to a solutionof the crisis. IDA insisting on a declared "bottoim line" result helped in thissense.

(c) Mid-term reviews can be very useful when the problems are clearly identifiedby both the Borrower and the Bank. In this case, the mid-term review wasvery beneficial, as the problems were clearly identified and the scope of therestructuring was judicious. This restructuring led to a refocussing on the"public good" issues that needed to be financed to accompany the privatelyfinanced development that was going on in the project area, i.e. improvementof roads into small farmer areas, increased research and extension onsustainable practices, and renewal of commitment to indigenous issues.

(d) It is difficult to support a decentralized project, or a component of thatproject, from a centralized agency. Putting a credit component through theCentral Bank didn't work for the small farmers as there wasn't enoughconcern and information in such a central institution as to their needs, andthere was never sufficient agreement between the Central Bank of Boliviaand IDA on the mechanisms which were needed to reach the small farmers.There should have been a more aggressive dialogue between these twoentities, and this was symptomatic of having responsibility in La Paz for thesolution of problems in Santa Cruz. This split responsibility hindered thedevelopment of the project to some extent.

(e) This problem for decentralized projects, and which the Bank may encountermore in the future as it gets involved in such projects was illustrated by thefact that many basic policy issues, which needed to be discussed in thecontext of the project, were neglected since the Project Implementation Unitin Santa Cruz was distanced from the relevant Ministries in La Paz.Therefore, timely resolution of some issues was neglected and often had tobe done by IDA supervision missions.


BOLIVIA

EASTERN LOWLANDS NATURAL RESOURCE MANAGEMENTAND AGRICULTURAL PRODUCTION PROJECT

CREDIT 2119-BO

PART I: PROJECT IMPLEMENTATION ASSESSMENT

Introduction

21. In the late 1980s, the Bolivian Government requested IDA assistance to accelerategrowth in the country's agricultural sector. Agricultural output had sharply diminished inthe previous decade. Sector growth for 1980-87 period was -1.3 percent, while cropyields apart from soybeans had not significantly increased. At the same time, the "NewEconomic Policy" launched in 1985 had set a landmark in macro management andstabilized the economy--but it had not reactivated growth.

22. The Government and the Bank therefore agreed that Bolivia's adjustment programneeded to address underlying agricultural sector constraints. Among others actions, itwas decided to place priority on the development of the Eastern Lowlands, perceived ashaving the country's largest and most promising untapped agricultural potential, and withthe possibility of increasing agricultural exports.

A. Project Objectives

23. The project had an ambitious range of goals. The objectives were to: (a) assist inthe long-term development of the Eastern Lowlands through the preparation andimplementation of a land-use plan (PLUS) for the region; the plan would give dueconsideration to the future sustainable expansion of agricultural production in anenvironmentally-sound way; (b) increase over a five year period the production ofprofitable agricultural commodities, and strengthen the balance of payments position ofBolivia by increasing annual exports of soybeans by about 200,000 tons, and substitutingannually for about 30,000 tons of wheat imports; (c) develop the technology and creditmechanisms to increase and sustain agricultural productivity, thereby raising familyincome of small farmers; (d) improve the existing rural roads and storage infrastructure;(e) introduce market pricing of public lands; and (f) to support the Ayoreos in thedemarcation of their land and improve their living conditions, and assisting theChiquitanos in the demarcation of their tribal land. The project consisted of thefollowing components: (a) natural resource planning and management; (b) credit foragricultural production and marketing; (c) agricultural research; (d) agriculturalextension; (e) rural road improvement and maintenance; (f) assistance to indigenouspeople and demarcation of their lands; and (g) administrative support.

24. These objectives appropriately reflected the evidence that Bolivia's thenunsatisfactory economic growth was partly due to a prolonged decline in its accumulation

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of capital stock. Private investment had been quite low and public funds poorly allocatedand inefficiently used. The project thus focused on exploiting the unused land resourcesin the Lowlands in a sustainable manner, while taking into account the needs of theindigenous groups in the area.

25. There were considerable uncertainties and risks attached to these undertakings.The Lowlands had not yet established an agriculture that was sustainable and consistentwith the rational exploitation of its resources. Its producers confronted high transportcosts to ports over 2,000 km away, leading to low margins and consequent exploitation ofthe existing soil resources, and had limited access to technology for sustainableagriculture. Further, the Government's distribution of state lands in the 1970s, and thecontinuing abundance of cheap (sometimes free) land contributed to farmers' reliance onthe expansion of area for output increases, instead of developing more efficientproduction practices.

26. In the decade preceding the project, the area sown to soybeans, which was themain crop of expansion in the area, rose from 41,000 ha in 1981 to 171,000 ha in 1990,of which almost 80 percent was taken from forested land. While most of this land wassuitable for cultivation, it was feared at the time that if expansion continued it would bedone without regard for soil capability or appropriate management. Simultaneously, oil,gas, and timber development had increased with negligible attention to natural resourcesustainability. In addition to these problems, there were other project uncertaintiesstemming from conflicts between these trends and indigenous tribes' land rights, whichkindled serious disputes.

27. Suitably thus, the project objectives also called for measures to ensure the morerational use of Santa Cruz's natural resources. The project set out to develop the longterm land use plan and to cause natural resource managemenl interests to be integratedinto agricultural investment decisions. The development of ihis plan (PLUS) was apioneering effort in Latin America.

28. The credit component was focussed on agricultural activities that were based onsuitable production plans and agronomic conditions. It completely excluded aid for landclearance. However, agricultural producers continued to have easy access to substantialcommercial bank funds and other financing sources, for expansion activities.

29. The project's policy environment, at the time of preparation, also bears noting.Originally, the overriding production-minded focus of the Government and the Bank wason cushioning declining mineral and hydrocarbon earnings, lessening import dependencefor vital foodstuffs, boosting non-traditional exports and other balance of payments-related issues. Within the Bank moreover, the focus of sector assistance was then onregional development, with secondary regard for environmental and like interests.

30. Later policy changes in both institutions substantially altered these settings. TheBank's priorities shifted to more direct poverty reduction and environmental protection,together with greater local cormnunity involvement. On the Government's part, thepolicy changes included the decentralization of political authority and public

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administration, along with the undertaking of popular participation and greater respect forethnic identities. These new paradigms contributed to a refocusing of the project.

31. In May 1993 a Mid-Term Review was conducted to review the problems, andthere were many, that the project was encountering. Taking into account the new policyenvironment both in Bolivia and the Bank, and the problems that needed to be solved inthe project, the Review team recommended to restructure the project and to reallocatefunds from the credit component to other categories. These changes were confirmedthrough an amendment to the Credit Agreement. The changes in the amendment were asfollows: (a) a restructuring of the research and extension to reflect the concern withsmall farmers and sustainable agriculture, and an increased reliance of the private sector(farmers associations) for implementation; (b) increase rural road improvement andrehabilitation, focussing on small farmer areas; (c) addition of a micro-regional andmunicipal strengthening component to address the needs of poor communities andstrengthen their ability to implement the Popular Participation Law; (d) increaseresources for the component of the Comision Nacional de Reordenamiento TerritorialSobre Uso del Suelo y Tenencia de la Tierra (CNRT) to allow it to complete its programof addressing land issues and to prepare a project for IDA financing.

B. Achievement of Project Objectives

32. Preparation and Implementation of the Land Use Plan (PLUS) All activitiesrelated to this objective were successfully completed and the Land Use Plan has beenissued. The soils investigations provide the technical basis for orienting crop productiontowards the most suitable areas, and for preventing irrational exploitation, with theissuance of certificates of soil suitability. Studies of protected zones and forest areas,including the Noel Kempf Mercado National Park, identified the reforms needed for theirpreservation and sustainable development. As a result, a 1995 decree firmly establishedthe land use plan as Santa Cruz's territorial standard and instrument for governing landusage and its sustainable development. The project component (financed by KfW ofGermany) also set up the technical office now empowered to monitor the plan'simplementation, and prepared it legally and technically to do so. Twenty municipalitiesreceived PLUS maps and training in resource management and its regulatory framework.This work will continue at the local level.

33. IncreasedAgricultural Production and Exports Bolivia's real annual agriculturalgrowth since 1987 of 1.5 percent has been strongly influenced by the expandedproduction in the Eastern Lowlands, the most salient features of which are as follows:

* between 1990 and 1996, agricultural exports from Santa Cruz increased 400percent;

* the gross value of the Department's agricultural output rose from US$350million to US$685 million during the period 1990-96;

between 1990 and 1997, the value of its summer soybean crop increased fromUS$33.7 million to US$168.3 million; winter soybean, from US$9.5 million to25.3 million, wheat, from US$10.1 million to US28.1 milllion; sunflower, from

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US$1.9 million to US$26.9 million; cotton, from US$3 million to US$73.2million; rice, from US$33.2 million to US$63.6 million; corn, from US$6.6million to US$37.4 million; and sorghum, from US$3.3 million to US$6.9million.

In one way or another all of the above crops were affected by activities of the project.Other statistics on the Lowlands' performance are shown in Table 5.

34. Consultants who assessed these increases, concluded that 37 percent of the eightcrops' increased output could be credited to the project, producing US$115 million annualreturns. These were led by earnings from summer soybean (whose 1995/96 productionlevel was eight times that of 1986/87's), followed primarily by cotton, wheat and corn.Assuming these increases are maintained through the year 2009, the project's future IERRwas projected at 36 percent, twice that forecast in the SAR.

35. These figures reflect Santa Cruz's rapid development based on a somewhatdiversified, capital-intensive agricultural sector. This development has resulted fromimprovements in the enabling macroeconomic environment vwhich has encouragedprivate investment. Among the principal factors, as well as the Project's involvement,were; the GOB's new floating exchange regime, attractive world market prices,expanding Andean Pact markets for soybeans, and inexpensive land costs. The Project'scontribution in the area of increasing production resulted from; (a) improvements in roadsaccessing market sites and main trunk roads; (b) results from the Tropical AgricultureResearch Center's (CIAT) agricultural research program, and (c) a similarly expandedextension program.

36. Between 1990 and 1997, the Department's cultivated area multiplied almostthreefold, increasing from 375,000 ha to 1,085,000 ha. This was mainly for soybeanproduction. whose cultivation area increased 20 percent yearly and is now nearing500,000 ha. In the process unfortunately, deforestation increased considerably, e.g.,almost one million ha between 1989 and 1996. These actions far exceeded expectations,e.g., the project plan forecast only 25,000 ha of new land clearance in the expansion zoneover five years.

37. Development of Credit and Technology Mechanisms The credit componentfailed to contribute significantly through the extension of only 221 subloans, comprisingabout 16 percent of the anticipated number. However, this component did provide timelyrelief from the severe 1991/92 floods though. Small farmers especially had greatdifficulty accessing project funds because of collateral probleims (smallholders' rural landwas not accepted for guarantees) and the intermediaries' reluctance to lend to them.Overall however, Santa Cruz farmers readily obtained other commercial bank loans andothers funds during this period of great liquidity, while colonization scheme producers(Japanese and Mennonites) are reported to have been self-finenced. Later on, the creditcomponent was halted while the Central Bank of Bolivia was setting up a second tierbank, Nacional Financiera Boliviana (NAFIBO) to manage foreign credit lines. Whenthis latter bank, did come into existence it did not agree with ihe Bank's conditions toassume responsibility for the Project portfolio and as a result, a large share of theseresources were cancelled.

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38. In the technology area, CIAT contributed by producing new varieties andtechnological packages suitable to the region, as well as their promulgation. Specifically,its new varieties and its work on windbreaks, alternative tillage techniques and integratedpest management for the different crop rotations were widely adopted. CIArs workdoubled the number of soybean varieties adapted to the area, as well as the adaptationvarieties of wheat, cotton and rice to the conditions of Santa Cruz.

39. The Center's technology transfer department also helped to give it a moreadaptive research orientation. Because of this, the results of the research program werecommunicated to a much wider range of producers and extensionists than ever before.The Project also supported extension activities of seven producer associations with greatsuccess in extending new knowledge to their members. Much of these activities are nowbeing financed by the associations.

40. The international environmental committee which reviewed the project during itsterm commended CIAT for its contributions towards the higher outputs achieved, and forpersuading Santa Cruz farmers to adopt less destructive soil management practices. Also,with project financing, CIAT was restructured to carry out more multidisciplinary work,augmented its staff considerably and prepared a 1997-2001 business plan.

41. Improvement ofRural Roads Road improvements under the project surpassedplanned levels. Thanks to unit cost savings, and the reallocation of more credit resources,some 410 km have been upgraded and better maintained, over a third more than the initialgoal. A consultant study has calculated that each US$1 invested in roads producedUS$409 of returns, due to reduced transport time. The 1993 reprogramming of the creditfreed up funds which permitted the addition of road improvements in small farmer zones.The municipalities have now responsibility for the future maintenance of these roads.

42. Introduce Market Pricing of Public Lands Initially, there was very slowprogress in getting the Government to fulfil its undertakings to set market pricing forpublic land. Finally, in 1992, the government imposed a moratorium on furtherconcessions and project funds were assigned to a commission which overhauled all landlegislation. These activities funded by the project, led to the passage of the AgrarianReform Law, which established market pricing and the preparation of a LandAdministration Project which is now being funded by the Bank (Cr. 2742-BO). Theinternational environmental committee (CIMA) considered that the new law's market andtax provisions are favorable signs for more efficient future land investments.

43. Indigenous Component The objectives of the indigenous peoples componentwere achieved by the demarcation of approximately 250,000 of land, and the installationof schools and medical clinics in the communities. The demarcation of the lands hasbeen the first step in ensuring Indian land ownership rights. Furthermore, much of thelegal work needed for titling of these lands was financed under the project and these titlesare now being adjudicated by the Instituto Nacional de ReformaAgraria (INRA). Whatwas achieved in this component was no mean feat, in view of the complexity of the landissues, and the highly polarized, conflictive social environment, as well as the toughphysical environment in which the demarcation took place.

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44. Municipal Strengthening Development Plans were prepared for severalmunicipalities such as Pailon, Warnes, Concepcion, Minero and El Puente among others.Roads designs were prepared for the provinces of Cordillera, Warnes, Obispo Sanistevan,Sara, Ichilo, Florida and Chiquitos. A rural development plan was also prepared for theindigenous communities of San Jose de Chiquitos and Robore.

C. Implementation Record and Major FactorsAffecting the Project

45. Project implementation was late in starting and delayed in some components overthe period. It took eight months to declare the Credit effective, and there were bouts ofinactivity subsequently. There were counterpart funding shortages and repeated instancesof project staff turnover after changes in central government political power. Both causedinstability in project execution.

46. In the case of the agriculture credit line, difficulties with the Central Banksurfaced immediately about the means of setting interest rates and the creation of theplanned "risk fund." There were also problems in reconciling the project's credit schemewith the Central Bank's auction system. These problems caused the public bank whichdealt with small farmers to be consistently outbid for access to funds. In addition, someof the project assumptions were undone by unforeseen financial sector developments,including the change from Central Bank on-lending to second tier arrangements, whichfroze the credit resources for two years. Ultimately, the bulk of Credit 2119-BO fundsassigned to farmer credit was reallocated to other ends.

47. Project implementation was most strained in the indigenous peoples component.In it, the Bank found itself in the position of trying to negotiate disputes betweencompeting factions; different Indian tribes, NGOs, and others. Fortunately, a satisfactorycompromise was finally worked out, which took a lot of supervision effort from theBank.

48. In the wake of many problems, a 1993 Bank midterm review missionrecommended the considerable refocusing of the project. Its recommendations led toaccelerating the pace of, and expanding the scope of the PLUS and the indigenouspeoples components, and to new activities aimed at social development, assisting smallfarmers and poverty alleviation. These new directions largely governed the remainder ofproject activity umtil its close. They prompted improvements in the Ayoreo tribe'seducation, health and housing conditions, road upgrading in. smallholder areas, thestrengthening of municipalities' planning instruments, and microregional pre-investmentstudies. But the parallel attempt to create new agriculture credit machinery foundered,for the reasons mentioned above. From that point on, project implementation was muchimproved and proceeded towards achieving its development objectives.

7

D. Project Sustainability

49. The establishment of the Land Use Plan and its technical office, CIATsachievements in the area of technology generation, the producer associations' extensioninitiatives, the assumption of road maintenance by the municipalities, and thedemarcation of indigenous peoples' lands should ensure project sustainability. So do thenew Forestry and Environmental Protection laws' stipulations that risky areas which havebeen deteriorating, especially national parks and biological reserves, must be shieldedfrom commercial development. In addition, the Bank funded National LandAdministration Project is moving to improve the legal and regulatory framework for landuse, restructure the public agencies responsible for enforcement and establish a legalcadaster to secure property rights. Because of the Bank's presence, there has been adiscussion and an increased awareness of environmental and indigenous issues among theofficial and the farming communities, as well as many other sectors of civil society inSanta Cruz. Such an awareness will be important in guaranteeing support for these issues.

50. Further, the devolution of responsibilities for natural resource protection to themunicipal level should increase local regard for suitable environmental safeguards.However, the local Govermnents appear to be concentrating first more on social demandsand infrastructure problems. They also have limited administrative expertise, which theIDA financed Rural Communities Development Project (Cr. 2772-BO) is trying tobolster, as well as supplement through support of NGOs.

E. Bank Performance

51. The Bank's performance in this project is rated as satisfactory. The Bank'sinvolvement increased the Government's awareness of environmental problems inBolivia and helped mobilize the resources for their solution. Several economic and sectorreports completed before the project, called attention to the high rate of natural resourceusage nationwide, and its direct bearing on economic stability and poverty. Later reportsstressed resource management issues and constraints, and included useful analyses ofthese problems in the Lowlands. These reports and the accompanying dialogue, togetherwith this project, were very constructive in helping to advance policies and instrumentsenhancing more sustainable development of the area.

52. Similarly the Bank's presence helped civic society in Santa Cruz focus on theissue of indigenous lands. Although this was a very conflictive issue, the Bank'sleadership helped to amalgamate the efforts of often opposing factions i.e. government,indigenous organizations, NGOs, farmers associations and churches, together to solve theproblem of demarcation. This required much effort on the part of the Bank, and becauseof this, these components were only finalized in the last years of the project.

53. The Bank also led a dialogue on the future financing of agricultural research andextension. As a result of this CIAT has produced a institutional development plan for thenext five years, and which has been discussed and agreed upon with the regionalauthorities and the Camara Agricola del Oriente (CAO), the leading farmers organizationin Santa Cruz. This discussion and agreement should lead to greater stability in thisorganization.

8

54. The Bank can also be credited with helping to bring about advances in landpolicies that promote more efficient resource usage, the prevention of further abuses ofthe land distribution system. Intensive, constructive supervision led to the creation of theland intervention institute (INRA) which developed the Agrarian Reform Law.

55. Conversely, the failure to establish sufficiently firm and agreed machinery foragriculture credit represented a less positive aspect of the Bank's performance. This wasespecially disapointing since small producers in particular had long been unable to obtaintimely and reasonable credit. It was also clear during project preparation, that an IDBloan with similar Lowlands goals was then troubled by difficulties with the Central Bankover the arrangements and procedures for channeling such credit. Yet the very samedifficulties surfaced in this project.

E Borrower Performance

56. The Borrower's performance was satisfactory. The Govemnment participantswarrant commendation on several counts. The project unit, led by an able projectdirector performed well in reviving the indigenous peoples component and guiding itsimprovements to greater success with effective participatory methods. It incidentallyreceived the able support of missionaries assisting the Indian groups.

57. The project unit was also very effective in the identification and implementationof road improvements in marginalized rural communities. Tnhis poverty focus has led tothe Project been seen in very favorable light in Santa Cruz.

58. The Corporacion de Desarrollo de Santa Cruz (CORDECRUZ), the initialimplementing agency, always gave strong support to the technology generation andextension aspects of the project and as a result, before its dissolution, it set up a trust fundof US$10 million to support the activities of CIAT.

59. In addition, both the Bank and the Government were party to the failure to reachagreement on a formula to correct the errant farmer credit component. Moreover, theCentral Bank was not very agile towards helping make Credit 2119-BO moniescompetitive in the market or in carrying out agreed studies.

G Assessment of Outcome

60. The project's outcome is rated as satisfactory, by having achieved itsdevelopment objectives of: (a) initiating the long-term, rational management of theEastern Lowlands natural resource base; (b) developing the technology to increaseagricultural productivity on a sustainable basis; (c) improving rural infrastructure in theEastern Lowlands; (d) improving the living conditions of the Ayoreo indigenous groupand helping to demarcate indigenous lands. Its accomplishments also helped improvethe balance of payments and trade accounts. This export expansion was badly neededwhile Bolivia was trying to escape from its grave economic crisis.

61. The project could be deemed a success as laying the foundation for the futuresustainable development of the agriculture sector in Santa C'ruz. Along with substantial

9

Bank sector work, and in collaboration with the effective KfW assistance, it wasinstrumental in Bolivia's adoption of new concepts and strategies to improve themanagement of its natural resources. This was no small contribution to a country withconsiderable ecological fragility, sensitive connections between population and naturalresources, and conflict between renewable resource management and economicdevelopment concerns. Moreover, the Lowlands had traditionally been erroneouslyviewed as having virtually unlimited carrying capacity, and its environmental constraintshad not been fully recognized. Thus, the project with its Land Use Plan, new conservationtechnologies, and indigenous lands demarcation, may yet be pivotal for Bolivia's longterm development.

62. It is possible that this project was prepared too late in terms of the pace ofdevelopment in the Eastern Lowlands. The project was limited to a perceived first phasefor documenting land suitability and usage data combined with other actions to establishprerequisites for full scale development. But the record shows that considerableadditional land clearing occurred during the project, than what was originally forecast.Thus, the project could be criticized for being short-sighted as to the overall rate andscale of development in the project area.

63. However, the information base required for a more comprehensive check onLowlands exploitation did not exist before the project. The issues of land tenure andindigenous groups' claims had not then been fully examined, and doing so would haveonly caused further delay. Also, it was difficult to anticipate the extent of newimmigration to, and investment in Santa Cruz, and of the positive reactions to the GOB'sreforms.

H. Key Lessons Learned

64. The main lessons were that:

(a) It is important for the Bank to bring issues of the environment, ethnicity orgender to the development dialogue in countries where these issues are stillnot on the agenda. In the case of the Eastern Lowlands Project, IDA's role inintroducing environmental and indigenous concerns into the developmentdialogue in Santa Cruz was crucial. At the time of project preparation theGOBs objective was to expand production for increased exports. In thesubsequent dialogue this objective was tempered by the identification ofenvironmental and indigenous concerns, which led to the development of theLand Use Plan and the demarcation of the indigenous lands.

(b) It is important for the Bank to explore other channels in civil society to solvedevelopmental or social problems. This was important in the IndigenousComponent where IDA's persistence and patience in resolving the issues paidoff. This was an extremely conflictive issue, that required several years tosolve but which IDA considered to be very important. Working closely withcivil society i.e. beneficiaries, NGOs, churches etc., finally led to a solutionof the crisis. IDA insisting on a declared "bottom line" result helped in thissense.

10

(c) Mid-term reviews can be very useful when the problems are clearly identifiedby both the Borrower and the Bank. In this case, the mid-term review wasvery beneficial, as the problems were clearly identified and the scope of therestructuring was judicious. This restructuring led to a refocussing on the"public good" issues that needed to be financed to accompany the privatelyfinanced development that was going on in the project area, i.e. improvementof roads into small farmer areas, increased research and extension onsustainable practices, and renewal of commitment to indigenous issues.

(d) It is difficult to support a decentralized project, or a component of thatproject, from a centralized agency. Putting a credit component through theCentral Bank didn't work for the small farmers as there wasn't enoughconcern and information in such a central institution as to their needs, andthere was never sufficient agreement between the Central Bank of Boliviaand IDA on the mechanisms which were needed to reach the small farmers.There should have been a more aggressive dialogue between these twoentities, and this was symptomatic of having responsibility in La Paz for thesolution of problems in Santa Cruz. This split responsibility hindered thedevelopment of the project to some extent.

(e) This problem for decentralized projects, and which the Bank may encountermore in the future as it gets involved in such projects was illustrated by thefact that many basic policy issues, which needed to be discussed in thecontext of the project, were neglected since the Project Implementation Unitin Santa Cruz was distanced from the relevant Ministries in La Paz.Therefore, timely resolution of some issues was neglected and often had tobe done by IDA supervision missions.

L. Future Operation

65. The Government through the Prefectura of Santa Cruz has demonstrated itscommitment to extending the Land Use Plan (PLUS) and roads components of theproject in the future, using 1998 funds. The Prefectura of Santa Cruz is also supportingCIAT and the Endowment Fund has been maintained for this purpose. The Land Use Planis being used at the municipal level in the design of municipal plans. This is being furthersupported by the rural communities development projects. The titling of the indigenouslands is in the hands of INRA.

PART II: STATISTICAL ANNEXES

12

Table 1: Summary of Assessments

A. Achievement of objectives Substantial Partial Negligible Not____ ___ ____ ___ ____ ___ ____ ___ ___ ____ ___ _ __ ___ ____ _ _ ____ ___ ___ A pp licab le

Macro Policies X

Sector Policies X

Financial Objectives X

Institutional Development X

Physical Objectives X

Poverty Reduction X

Gender Issues X

Other social Objectives X

Environmental Objectives X

Public Sector Management X

Private Sector Development X

NGO Involvement X

B. Project Sustainability Likely Unilikely Uncertain

xC. Bank Performance Highly Satisfactory Deficient

Satisfactory

Identification X

Preparation Assistance X

Appraisal X

Supervision X

D. Borrower Performance Highly Satisfactory DeficientSatisfactory

Preparation X

Implementation X

Covenant Compliance X

Operation (if applicable)

E. Assessment of Outcome Highly Satisfactory Unsatisfactory HighlySatisfactory Unsatisfactory

x

13

Table 2: Related Bank Loans/Credits

Loan/Credit Title Purpose Year of Statusapproval

Preceding operationsCompleted

CR. 0933 Altiplano rural 1979 Audit issuedDevelopment December 1988

Following operations

Cr. 2216 Agricultural 1991 ActiveTechnologyDevelopment

____ ___ ___ ____ ___ _ _ Project _Cr. 2322 Agricultural 1992 Closed on Dec

Export 31, 1997DevelopmentProject

Cr. 2742 Land 1995 ActiveAdministrationProject

Cr. 2772 Rural 1996 ActiveCommunitiesDevelopment

._____ _____ _____ ___ _ Project

14

Table 3: Project Timetable

Steps in Project Date Planned Date ActualCycle

Identification April 1988 March 1988

Preparation July 1988 1988-89

Appraisal June 1989 June 12-26, 1989Negotiations January 1990 January 22-25, 1990Board Presentation April 15, 1990 March 29, 1990Signing July 1990 May 7, 1990Effectiveness August 7, 1990 January 7, 1991Midterm Review _ May 2-23, 1993

Loan Closing June 30, 1996 December 31, 1997

15

Table 4: Credit Disbursements: Estimated and Actual(US$ millions)

FYs 90 91 92 93 94 95 96 97 98

Appraisal .5 3.0 4.6 4.9 5.6 5.3 6.3 4.8 0EstimateActual 0 1.5 2.6 11.7 2.8 1.3 3.1 3.2 2.7

Actual as% of 0 .5 .6 2.4 .5 .2 .5 .7 -

Estimate _

Date of Final Disbursement: January 6, 1998.

Original Amount: 35.0Total Disbursed: 29.1Total Cancelled: 5.1Total Undisbursed: 3.2

16

TaLble 5: Key Project Indicators

National Level 1990 1996/97

- gross agricultural product (US$ 636.5 1,002millions)

- agricultural share of GDP 13.1% 13.3%- agricultural exports ($m) 237.5 399.3- agricultural share of total exports 25.2% 34.0%

Santa Cruz Department- gross agricultural product value ($m) 350.4 684.9- agricultural share of total exports 10.9% 20.5%- summer soybean output (000 tons) 194 990- winter soybean output (000 tons) 55 149- sorghum output (000 tons) 36 72- corn output (000 tons) 57 356- wheat output (000 tons) 49 168- sunflower output (000 tons) 12 168- rice output (000 tons) 183 265- cotton output (000 tons) 2 39- soybean output ($m) 43.2 193.6- cotton output ($m) 3 0 73.2- sunflower output ($m) 1.9 26.9- corn output ($m) 6.6 37.4- wheat output ($m) 10.1 28.1- rice output ($m) 33.2 63.6

17

Table 5: Key Project Indicators (continued)

- elaboration of land use plan Completed regional 1:250,000 scale mapfor 65% of Santa Cruz and 20 city maps.

- aroecological zoning All Santa Cruz covered on 1:250,000 scale- forest monitoring surveys 2 of scheduled 3 surveys completed.- soil mapping survey Completed- forest reserves & natural parks

- parks consolidated and operating All four planned- reserve consolidated and operating The one planned- plans prepared for biological reserves The two planned

- deforestation for farming in project area:- 1990 forecast of future clearing: 17,000 24,413 Km2 cleared

Km2-- proportion of total deforestation (forecast: 6.4%

4.6%)- proportion of farmers practicing crop rotation 83.5%- roads improved and better maintained 410 Km- increase in % of farmers letting soils rest fallow 20.3%over 1991-97- credit beneficiaries 221- project-financed volume of credit ($m) 12.1- expansion of agricultural research infrastructure Canada Larga center completed- research training 82 extension agents, 200 farmers- extension activities of producer associations:

- ANAPO 20% of farmers practicing direct sowing;l ___________________________________________ 80% using certified seed

- FEGASACRUZ 65% of cattlemen practicing parturition;reduction of periods in slaughterhouse to34 months; average gain in cattle weight to

_ 186 Kg- FENCA 9% of rice growers using certified seed- ADEPA 20% of farmers using certified seed; better

cotton fiber quality; returns increased to10.61 qq/ha (compared to projected 9.93qq/ha)

- ADEPLE improved milk quality- ASOPROF New, more profitable kidney bean varieties

introduced- ASHOFRUT New, more profitable technological

packages introduced for pineapple,tomatoes, strawberries

- indigenous groups component:- land measured in four Ayoreo cornmunities 243,974 ha- health and education facility improvements investments in clinics and schools in nine

communities

18

Table 6: Studies Included in Project

Study Purpose Status Impact

Soil Capability Establish the Suitability Completed Provided technical basisStudies of Selected of Available Land for for orienting cropAreas Sustainable Agricultural production towards

Development most suitable areas andvice versa

Forest cover Study Establish the Status of CompletedForest Cover before theinitiation of investments

Region-wide survey Examine extent of Completed Provided Forestryof forest cover forest coverage and industry with useful

clearance guidance. A 1994 studyalso showed increasedland clearance activity

Agroecological To assess the potential Completed Provided a basis forzoning and and constraints of key more precise area

zoning and sectors and resources, mapping. In 1994,mapping of SC and to demarcate 1:1,000,000 scale mapsDepartment on a protected areas were completed for1:250,000 scale, Cotoca and San Jose.and analytical and Helped direct farmers tofield studies desirable cultivation

areas.Demarcation of To meet the Completed Provided the basis for

Lands in the prerequisites for land more definitivetitling assurances of landAyoreos and ownership rights, and

Chiquitano greater protectioncommunities _ against incursions.

Completion of To upgrade capability Dropped because ofCORDECRUZ's of main project changes inorganizational study implementation institutional

responsibilitieswhich amendedCORDECRUZ'stasks

CIAT sudies on soil To find ways of Partly completed.drainage, increasing crop yields incompaction and areas of adequate soils

rehabilitation____ _I

19

Table 6: Studies Included in Project (continued)

Surveys of health, To determine their Completed, Identified areas forsanitation, status and the substantially (by NGOs) developmenteducation and requirements for investments.

remedial measurespotable waterconditions in theAyoreoscommunitiesStudy of future To define measures for Completed Provided the materialCIAT strategy and putting CIAT on a more CIAT is using forits business plan self-sustaining basis soliciting resources

after project completion from possiblefinancing sources.

Study on improving To improve commercial Completed A plan was developedsmall farmers' bank lending in ways based on the study

designed to overcome but the Governmentaccess to the obstacle for small and the Bank failed toagricultural credit farmers agree on its

imnlementation. *

Study on regional To enable rural Completed Municipalities Sand municipal municipalities to obtained plans and

develop natural pre-investmentdevelopment resources development studies seeking

plans and programs in financing ofneedy sectors development

requirements.Study on advances To help PLUS' Completed Identified prioritiesof land clearing in technical office monitor for local officials,the project area and land uses in high risk new forestry andfoe projest area and areas, and identify lands superintendentsforest reserves priorities for more on work to be done.

extensive regulatoryactivity within thesezones

Protected areas To strengthen their Completed Identified wildlife(national parks and management, partly to areas and

help compensate for recommendedforest reserves) further forest clearance protective measures

in Santa Cruz for national parksconsistent with LandUse Plan.

* In a parallel development, the 1995 Central Bank Law led to the creation of "La Nacional Financiera Boliviana, Sociedad An6nima Mixta"which aimed to address agricultural credit supply problems.

20

Table 6: Studies Included in Project (continued)

Lands of Indigenous To delineate their areas, Completed Identified the areas

Peoples ascertain the groups' occupied, defined thoseterritorial and settlement to be designated aspatterns, resource uses, reserves or receiveetc. in order to define other special legaltheir component of status.Land Use Plan

Forestry To define opportunities Completed Identified policy andfor expanding foreign institutional changes forexchange earnings from transforming Santaforestry, needed policy Cruz's forestry industryand institutional compatible withreforms, technical sustainablerequirements for development.environmentally soundharvesting of forest

____________________ _ _products_

Livestock To examine the Completed Provideddevelopment potential recommendationsof Santa Cruz's especially for growth oflivestock industry, and small scale cattleexplore ways of raising.increasing productionwithout significant

i_______________________ deforestation _

Water resources To examine volume of Completed Identified capacity offresh water resources, established surface andexamine potential for subterranean waterirrigating existing resources to meetfarmland, and water industrial and otherquality problems domestic consumption,

irrigation and powergeneration requirements

El Vallecito To examine the Completed Provided the basis for

agricultural development needs of the post-1994 projectresearch statioi the Gabriel Rend investments in El

Moreno's agriculture Vallecito, whichexperiment station (El included strengtheningVallecito) in order to its biotechnology labexpand the project's and irrigation network.agricultural researchobjectives for greaterattention to'campesino" farmers'needs. .

21

Table 7 : Status of Covenant Compliance

Description of Covenant Status* CommentsGovernment to submit legislation requiring CD Ultimately fulfilledmarket pricing of public lands (except for by 1996 Agrarianindigenous communities and small farmers) by Reform Law.December 31, 1990Government to charge market prices for public CD The aforementionedlands it sells or otherwise disposes of, beginning law fixes a pricingDecember 31, 1991 mechanism based on

supply and demand.Government to establish an environmental C The internationalcommittee to independently assess progress committee providedduring the project in achieving the rational long- timely, usefulterm development of the lowlands, and to criticism andreview the outcome of its reports with IDA suggestions.

Government to prepare and adopt a Land Use CDPlan for the project area by December 31, 1991Government to ensure that plans for the project CP Contributed toarea's development are prepared and creation of Santaimplemented in accordance with the Plan's Cruz departmentregulations office to monitor

Plan compliance. In1995 Santa Cruz putinto effect norms foradministering thePlan.

Until an agreed Land Use Plan is adopted, no C Cerificates of soilfinancial institution managed by the Central suitability requiredBank would provide official agricultural credit since fall of 1992for land clearing in the Eastern Lowlands unless but this had littlethe prospective borrower presented an approved effect due to smallon-farm soil study (and an approved farm plan amount of suchfor farms over 1 00ha.) credit. Other funds

remained availableI____ _____ _ for land clearing.

22

Table 7: Status of Legal Covenants (continued)

IDA credit would be limited to agricultural C Implemented butdevelopment to areas determined to be suitable had little impactfor cultivation, and where production has due to small use oftraditionally taken place or expansion has started IDA credit line.and infrastructure is availableThe Central Bank to constitute a "risk fund" by NC "Risk Fund"June 30, 1990 with agreed terms and conditions proposal was

absorbed intobroaderassessment andrealignment ofdevelopmentlending institutions

Government to complete soil studies for two CPselected areas and the first region-wide surveyof forest cover prior to disbursement of any Cr.2119 funds for the agricultural credit componentGovernment to carry out area-wide and forest CP 1994 surveycover surveys in the project area by December compared satellite31, 1991 and December 31, 1994 respectively images of forest

cover withm ___________________________________ __ c 1992/93 im ages.

Govermnent to carry out partial forest cover CPsurveys in the project area by December 31,1992 and December 31, 1994CORDECRUZ and Producer Associations to C In 1995 the SCemploy extension agents Department

replacedCORDECRUZ.The former'sNatural ResourcesDepartment wasupgraded. Some50 extensionagents wereemployed.

23

Table 7: Status of Legal Covenants (continued)

CORDECRUZ to furnish annual operating plans C The SCfor road improvement and maintenance for the Departnentfollowing year by March 31 annually replaced

CORDECRUZand met theobligation.

Government to provide adequate counterpart CPfinancing for the project's annual budget .promptly as needed, and cause CORDECRUZ,CIAT and producer associations to provide theircontributions on scheduleCIDOB to carry out the indigenous peoples CD Revised to install acomponent of the project different

organizationalarrangement.

* C=complied with; CD=complied with after delay; CP=complied with partially; NC=not complied with.

24

Table 8 (a): Project Costs (US$ millions)

Project Components Appraisal Estimate Actual Costs

Natural Resource Mngmt 6.0 6.0Production Credit 31.0 12.8Agric. Research 2.6 3.0Agric. Extension 3.8 3.6Rural Roads 9.4 10.7Indigenous Peoples 1.0 0.8Agrarian Reform 0 1.7Strengthening Municipalities 0 1.0Project Preparation 0.5 0.7Administrative Support 0.3 2.2TOTAL 54.6 42.5

25

Table 8 (b): Project Financing(US$ millions)

Project Components SAR Estimates Final FinancingIDA Gov't German IDA Gov't German

Gov't Gov't

Natural Resource Mngmt 0.31 5.65 1.80 4.16Production Credit 24.61 6.36 10.90 1.90Agric. Research 1.91 0.73 1.74 1.30Agric. Extension 2.96 0.87 1.60 2.00Rural Roads 3.77 5.65 6.58 4.10Indigenous Peoples 0.97 0.05 0.75 0.08Agrarian Reform 0.53 0.02 0.56 0.10Strengthening Municipalities 0.26 0.01 1.17 1.00 _

Project Preparation 0 0 1.60 0.16Administrative Support 0 0 0.95 0.05

TOTAL 35.00 14.00 5.65 25.85 12.49 4.161 ~~54.64 42.50O

26

Table 9: Economic Budget- Investment Costs(in 1996 constant US$ millions)

Project Years1 2 3 4 5 6 7 8 Tolals

Project Preparation 608 - - - - - - 608

Project Research - 385 750 453 370 616 538 213 3.324Extension (UPRA) - 220 140 76 80 - - - 516Extension (CIAT) - 379 212 278 292 423 287 186 2.058Natural Resources - 1.891 1.571 1.426 1.722 1.322 1.153 670 9.755Roads - 241 1.401 1.130 1.120 2.501 2.833 1.380 10,606Credit - - 8.665 4.315 - - - - 12.980

Project Support - 128 96 134 202 127 202 177 1.064Strengthening - - - - - - 11 774 785

Governments I_ Land Reform - - - - - 283 291 228 802

Total Costs 608 3.244 12.834 7.812 3.786 5.272 5.316 3.628 42.498

27

Table 10: Bank Resources: Staff Inputs

Negotiationsthrough Board

Fiscal Year Preparatio Appraisal Approval Supervision Completion Totaln

Staffweeks

1987 1.4 1.41988 43.2 43.21989 106.0 12.1 118.11990 18.1 6.5 5.0 29.61991 22.6 22.61992 19.9 19.91993 46.5 46.51994 35.2 35.21995 30.8 30.81996 19.7 19.71997 11.7 11.71998 2.9 2.9

TOTAL 150.6 30.2 6.5 194.3 381.6

Uss,ooo

1987 3.4 3.41988 24.8 15.0 24.81989 154.6 24.9 179.51990 41.2 11.3 67.51991 57.9 57.91992 60.7 60.71993 120.9 120.91994 93.4 93.41995 76.7 76.71996 63.8 63.81997 40.7 40.71998 15.0 19.0 19.0

TOTAL 182.8 6.1 544.4 808.3

28

Table 1: Bank Resources: Missions

Performance Rating

Stage of Mionth/Year No. of Days in Specialized Staff Skills lmpl. Status Dev :ype orProject Cycle Persons Field Represented Objectives Pr-oblems

Through Aug-87 _ I 21 export zone expert" na Na na -Appraisal Sep-87 2 21 sociologistlagronomist na na na

Oct-87 1 14 Agric. Economist na na naMar-88 5 14 Economist/Agronomist/ na na na

Financial AnalystApr-88 1 14 Consultant na na naAug-88 7 21 Land Use and Remote na na na

Sensing Specialist/AgmolAnthropologistNat Res/Env/Financial Analyst/Cartographer

Sep-88 1 6 Economist na na naNov-88 1 S Consultant (NGO) na na naMar-89 S 14 Economist/Cartographer/Fin na na na

Analyst/Agronomist

Appraisal Jun-89 7 14 Economist/Fin Analyst/ na na nathrough Board Env/Roads SpecApproval Sep-89 1 5 Economist na na na

Supervision Dec-90 3 7 Economist, Anthropologist 2 2 Compliancewl ]LegalCovenantsProcurementProgressFinancialPeriForm ance

Apr-91 1 7 Financial Analyst 2 2 TrainingtStudiesProgress

May/ 3 10 Economist Anthropologist I I StudiesJun-91 Agricultural Progress

Mar-92 1 5 Agriculturist I I

Jul-92 1 5 Anthropologist al

b/ Oct-92 I 5 Environmental Specialist a/

May 93 7 11 Environmental Specialist 3 3 EnvironmentalFinancial Specialist, Research AspectsAgriculture Specialist, PortfolioManager

March 94 1 7 Natural Resource Spec. a/

Oct-94 3 10 Natural Resource SpecAgriculturist, Oper Asst

Jul-95 1 11 Agriculturist S S

a/ No Fonn 590 update.b/ Mid-term review.

29

Table 12: Status for Credit 2119-BO

As of 14-APR-1998

D iso 1a y Anmtrs n X> R

Disb Officer: NGUYEN, THAO LE Task Manager: OICMAHON, MATTIEW A.Disb .nalvst: 1RINCKIHAUS, Managing LCSES

CARMEN Division:Sector: Environmene Loan Tvpe: Stndard IDA

|Currenc: R Restrictions: Disbursements Allowed

Amounts in USD DateOriginal Principal 35,000,000.00 Approval 29-MALR-1990

Disbursed 29.108.020.39 Signing 07-.AG Y-1990

% Disbursed 77.84 Effective 0 7-JA.N- I 991Cancelled 5.101.600.00 Closing 31-DEC-1997

I;ndisbursed 3.174,138.96 Latest DisblRefund/Recov 06-JAN- 1998Committed 0.00 Last Cancellation 16-AUG- 1996

Free 3,174,138.96Pipeline Application 0.00

PART III: APPENDICES

Appendix A

Proyecto de Desarrollo Agropecuario "Tierras Bajas del Este"Financiado por: BMAiDA, KFW, GOSIERNODirecci6n: Av. Omar Ch4vez Ortfz esq. cl Pozo

Casilla Ng 3512 * Telfs.: 33-9973 - 33-8952 * Fax (591) 3-33-3365Santa Cruz de la Sierra- Bolivia

AYUDA MEMORIAMISION DE SUPERVISION AL PROYECTO TIERRAS BAJAS DEL ESTE

(CREDITO 2119-BO)Realizada del 19 al 24 de Enero de 1998

Introducci6n

1. En el presente documento se resumen las observaciones y comentarios de laMisi6n del Banco Mundial/ Asociaci6n Internacional para el Desarrollo(BM/IDA), que visit6 Santa Cruz del 19 al 24 de enero de 1998. La Misi6nestuvo dirigida por el Sr. Matthew McMahon, Supervisor del Proyecto y el Sr.Herman Nissenbaum, Consultor del BM/IDA. Este documento contiene losacuerdos e inforrnes recibidos por la Misi6n y las entidades ejecutoras delProyecto por las acciones desarrolladas durante la ejecuci6n del mismo, elcual ha cerrado sus actividades el 31-12-97.

1.1 La Misi6n ha sostenido reuniones de informaci6n con diferentes entidadesregionales y nacionales vinculadas a la ejecuci6n del Proyecto (Prefectodel Departamento de Santa Cruz y su equipo de colaboradores, CamaraAgropecuaria del Oriente y los Subsectores Agropecuarios, Centro deInvestigaci6n Agricola Tropical - CIAT, OT-PLUS, Componente Vial,CIDOB, asi como con el Ing. Carlos Roca (Secretario de la CIMA,Comisi6n Internacional del Medio Ambiente).

1.2 Asimismo, la Misi6n en compafnia del Director de la U.P. sobrevol6 elarea de expansi6n del Proyecto y la zona del norte integrado delDepartamento de Santa Cruz para verificar y supervisar el avance fisico yel impacto general despues de la ejecuci6n del Proyecto.

Analisis de eiecuci6n de acciones acordadas durante la ulfima Misi6n deSupervisi6n

2. Durante la Misi6n anterior, fueron acordadas acciones cuya ejecuci6n fue lasiguiente:

2.1 La U.P. notific6 y consigui6 que la Prefectura del Departamento, realice eldesembolso de los recursos de contraparte para la implementaci6n de lasoficinas de la OT-PLUS . (ver anexo 1).

Appendix A 32 Page 2

Proyecto de Desarrollo Agropecuario "Tierras Bajas del Este"Financiado por: BM/IDA, KFW, GOBIERNODirecci6n: Av. Omar Ch;Ivez Ortiz esq. c/ Pozo

Casilla N2 3512 - Tells.: 33-9973 - 33-8952 * Fax (591) 3-33-3365Santa Cruz de la Sierra- Bolivia

2.2 La U.P. envi6 al Banco Mundial/IDA, un Plan de acciones sobre como losmunicipios que fueron beneficiados con estudios de pre-inversi6n puedenutilizar estos estudios, para apoyar el Fortalecimiento Regional yMunicipal. (ver anexo 2).

2.3 La U.P. gestion6 ante Is Prefectura y reiter6 la necesidad de realizar unaauditoria tecnica complementaria con respecto a los gastos efectuadospor el Componente Indigena durante los afos 1992 y 1993. (anexo 3).

2.4 Se ha firmado un Convenio interinstitucional con la Prefectura delDepartamento, en el cual la Prefectura se compromete asignar el montode $us. 177.349.- con el prop6sito de que la Unidad de Proyecto contirniefuncionando hasta la conclusi6n total de sus actividades administrativas yde evaluaci6n por parte del Banco Mundial/IDA. (ver anexo 4).

2.5 La U.P. contrat6 los servicios de la firma auditora Berthin Amengual yAsociados, a objeto de que se inicie el trabajo de auditoria externacorrespondiente a los estados financieros correspondientes a la gesti6n1997. (se envi6 contrato).

2.6 Entre el 28 al 30 de octubre de 1997, la U.P. Ilev6 adelante un Seminario -Taller sobre los "Impacto Econ6mico de los Componentes deInvestigacid6n y Extensi6n en la Producci6n Agricola' el cual tuvo cornoexpositor al Dr. Guillermo Donoso de la Universidad Cat6lica de Chile,conjuntamente con reconocidos catedraticos de la Universidad Privada deSanta Cruz de la Sierra.

AVANCE EN LA EJECUCION DEL PROYECTO

AnMlisis General

3.1 En fecha 09 de junio de 1997, el Banco Mundial/IDA comunic6 la ampliaci6nde fecha de cierre del Proyecto la cual ha sido lijada hasta el 31 de Diciembrede 1997. El monto actual del Credito luego de la Octava enmienda alConvenio, es de SDR. 23.0 millones.At 3.2 La ejecuci6n financiera del Proyecto al 31 de diciembre de 1997, se estima enUS$.42.7 millones, lo que equivale a un 78.g % del costo original estimado delProyecto (US$. 54.6). Al 31 de diciembre de 1997, la ejecuci6n del Proyectofue de el 76 %

Appendix A 33Page 3

Proyecto de Desarrollo Agropecuario "Tierras Bajas del Este"Financiado por: BMIIDA, KFW, GOBIERNODirecci6n: Av. Omar Chavez Ortfz esq. c/ Pozo

&v<; *IAJASiiO0 / Casilla N2 3512 * Telfs.: 33-9973 - 33-E952 * Fax (591) 3-33-336S5Santa Cruz de la Sierra - Bolivia

3.3 Los desembolsos del Credito 2119-BO al 31 de diciembre de 1997,alcanzaron a SDR 20.6 lo que equivale a un 77.73 % del monto original delCredito (SDR 26.5 millones). Al 31 de diciembre de 1997, la ejecuci6n fue del78%. Excluyendo al Componente de Credito que estaba bajo laresponsabilidad del Banco Central de Bolivia, la ejecuci6n de loscomponentes del Proyecto a cargo de la U.P., seria del orden de 95 %.

RECONOCIMIENTO DE GASTOS EFECTUADOS HASTA ANTES DE LAFECHA DE CIERRE DE DESEMBOLSOS

3.4 Como consecuencia de la falta de fondos en la cuenta especial al 31-12-97, laPrefectura del Departamento, deveng6 los montos que se detallan (ver anexo5) para el pago por el avance fisico efectivo que realizaron las empresas queconstruyen los accesos "C" del Componente Vial, por un total de Sus.609.131.30. Se acord6 que el Banco analizarc la posibilidad de reembolsar el60 % equivalentes a $us. 365.478.76, cuando el Proyecto provea unacontabilidad satisfactoria de los montos que quedan por desembolsar.

ACTIVIDADES PARA LA CONTINUACION DEL PROYECTO

lnvestigaci6n - Extensi6n

4. El CIAT, debe continuar con sus esfuerzos de conseguir la implementaci6n dedel Plan de Negocios que fue desarrollado con financiamiento del Proyecto.Entre las actividades que tienen planificadas se encuentra contemplada larealizaci6n de un Seminario con los sectores publicos y privados para discutireste Plan de Negocios y su financiamiento. En otro orden de cosas el CIAT,esta trabajando con programas de capacitaci6n de recursos humanos,sostenibilidad financiera y fortalecimiento gerencial.

Fortalecimiento Recional v MuniciDal

5. La Direcci6n de Fortalecimiento Municipal de la Prefectura, ha disefiado yestructurado un programa dirigido a promover el fortalecimiento uniforme de

ZC los 43 municipios rurales del Departamento de Santa Cruz. De la misma forma,esta preparando una metodologia de transferencia y capacitaci6n de


Proyecto de Desarrollo Agropecuario "Tierras Bajas del Este"4.S, * -X. -N,@ Financiado por: BM/IDA. KFW, GOBIERNO

Direccidn: Av. Omar ChAvez Ortfz esq. el PozoCasila N2 3512 * Tells.: 33-9973 -33-8952 * Fax (591) 3-33-3365

Santa Cruz de la Sierra - Bolivia

los recursos humanos de las diferentes municipalidades y proponiendo unmodelo de coordinaci6n interinstitucional entre el poder ejecutivodepartamental y otras instituciones publicas y privadas para lograr un mayorapoyo a los municipios.

Componente Indiaena

6. Habiendo el Proyecto cumptido con todos los requisitos necesarios dedelimitaron y demarcaci6n fisica de las tierras destinadas a las etniasAyoreas, por un total de 243,974 Has. y luego de haber presentado al INFAlas carpetas correspondientes para iniciar el trdmite de titulaci6n.Actualmente, mediante la Resoluci6n de Inmovilizaci6n No. RAI-TCO-0010 elINRA ha establecido la inmovilizaci6n de las tierras solicitadas, hasta lograrsu titulaci6n. En consecuencia, es responsabilidad de la Prefectura delDepartamento y del INRA, seguir las gestiones que correspondan para lograrla titulaci6n definitiva de estas tierras, las mismas que seran concedidas a Ilacomunidades ayoreas.

Comwonente Vial

7. La Misi6n ha sido informada que la construcci6n de los seis tramos caminerosen ejecuci6n, tienen un avance del 90%, por lo que la Prefectura delDepartamento debe asumir los costo de financiamiento que demanden suconclusi6n.

Recursos Naturales OT-PLUS

8. La Misi6n ha sido informada que la implementaci6n de las oficinas de la OT-PLUS con financiamiento del Proyecto, ha sido cumplida de acuerdo a Joprogramado.

La OT-PLUS como responsable del cumplimiento, control y seguimiento delPlan de Uso de Suelo ha preparado y esta Ilevando adelante un plan detrabajo de divulgaci6n e informaci6n sobre las re( las de intervenci6n y de usode suelos en sus diferentes categorias, con el prop6sito de que en lasA.t Provincias del Departamento se puedan cumplir con las medidas deconservaci6n y aprovechamiento del suelo, necesarias para evitar el deteriorode su capacidad productiva.

k~ O

Appendcx A 35 Page 5

Proyecto de Desarrollo Agropecuario "Tierras Bajas del Este"Financiado por: BMIIDA, KFW, GOBIERNODirecci6n: Av. Omar Chhvez Ortiz esq. cl Pozo

Casilla Ng 3512 * Tells.: 33-9973 - 33-8952 * Fax (591) 3-33-3365Santa Cruz de la Sierra - Bolivia

INFORME DE CIERRE DEL PROYECTO

9. Durante el curso de la Misi6n el Banco y la Unidad de Proyecto, analizaron eintercambiaron opiniones sobre los estudios de evaluaci6n preparados por losconsultores. Los estudios analizados fueron los siguientes:

* Impacto Econ6mico de lnvestigaci6n y Extensi6n, realizado por el Dr.Guillermo Donoso.

* Impacto de la lnvestigaci6n y Extensi6n realizada por CIAT, con elfinanciamiento del Proyecto Tierras Bajas del Este.

* Informe Final del Proyecto Tierras Bajas del Este, realizado por elconsultor Juan Morelli.

* Informe de la Comisi6n Internacional del Medio Ambiente (CIMA) sobre elimpacto ambiental del Proyecto.

. Plan de Ejecuci6n de los Estudios de Fortalecimiento Regional yMunicipal.

* Impacto Econ6mico de los Caminos Construidos con financiamiento delCr6dito 211 9-BO.

* Estudio de Monitoreo de Recursos Naturales.

La Misi6n del Banco y la Unidad de Proyecto, acordaron que estos reportespresentan informaci6n y analisis objetivos que pueden ser utilizados en laelaboraci6n del Reporte Final.

Ademas, la Misi6n del Banco y la Unidad de Proyecto, revisaron y discutieronlos logros del Proyecto y sus consecuencias. De la misma manera,consensuaron que aunque no todos los objetivos originales fueronalcanzados, el Proyecto si logr6 una parte significativa de estos. Tambien selograron la mayoria de los objetivos que fueron acordados durante la revisi6nde Medio Termino. La Misi6n, tambien tuvo la oportunidad de entrevistarsecon varias personas vinculadas al sector agropecuario, las mismas queemitieron opiniones favorables respecto al impacto del proyecto.

kk)\,


Proyecto de Desarrollo Agropecuario "Tierras Bajas del Este"Financiado por: 8MIDA, KFW, GOBIERNODirecci6n: Av. Omar ChAvez Ortfz esq. cl Pozo

Casilla Ng 3512 * Telfs.: 33-9973 -33-8952 * Fax (591) 3-33-3365Santa Cruz de la Sierra - Bolivia

A su vez el Prefecto del Departamento, asi como la Unidad de Proyecto,indicaron su satisfacci6n con lo que se ha logrado y dieron a conocer a laMisi6n, que estos logros sirven para futuros avances en el desarrollo racionaly sostenible de las tierras bajas del este. De igual forma indicaron que laPrefectura del Departamento, tiene presupuestado la continuidad de, lasactividades del Proyecto. Tambien dieron a conocer sus intenciones a laMisi6n del Banco, de preparar un nuevo Proyecto para su financiamiento.

La Unidad de Proyecto, ayud6 a la Misi6n del Banco en la preparaci6n de lainformaci6n basica para el Reporte Final. Se acord6 que la Unidad ilba a-mandar al Banco antes de marzo 30 de 1998, su contribuci6n al reporte -

Matthew McMahon Zvonko tko ic FleigCOORDINADOR BANCO MUNDIAL PRETD ARTAMENTO

Ky 4gmelfinge 6wis Ernesto Hurtado PazDITOR DE ROLLO DIRECTOR EJECUTIVO

STENIBLE Y MEDIO//AMBIENTE

Appendix B

RESUMEN EJECUTIVO

DEL

PROYECTO TIERRAS BAJAS DEL ESTE

1. INTRODUCCION

El Proyecto Tierras Bajas del Este (PTBE) fue disenado para asistir al desarrolloregional, procurando su sostenibilidad en el largo plazo y la preservaci6n de los recursosnaturales. Los componentes incluidos fueron: (i) Planificaci6n y manejo de los recursosnaturales, (ii) Credito para producci6n y comercializaci6n agricola, (iii) Investigaci6n, (iv)Extensi6n agricola, (v) Mejoramiento y mantenimiento de caminos, (vi) Protecci6n ydesarrollo de pueblos indigenas, y (vii) Soporte administrativo. Se asistiria tambien, en laintroducci6n de un sistema de fijaci6n de precios de las tierras fiscaies basado en elmercado. El proyecto asistiria a la expansi6n sostenible de exportaciones de 200.000 tonde soya, sustituci6n de importaciones de unas 30.000 ton de trigo y soporte tecnico parala expansion de otros cultivos. Otros beneficios esperados eran la preparacion del plan deuso de suelos, incluyendo zonificaci6n agroecol6gica, mapeo y estudios de suelos eidentificacion de areas de reservas y parques naturales para preservaci6n de la flora yfauna. Asimismo, se apoyaria la introducci6n de nuevas tecnologias para agricultores desubsistencia y comerciales; se protegeria el ambiente cultural de los indigenas "ayoreos",mejorando sus niveles de vida; y se demarcaria sus tierras tribales y las de los"chiquitanos".

Mediante Ley No. 1170 del 04-07-90, fue aprobado el convenio de creditodestinado a financiar el Proyecto Lowlands, ( Tierras bajas del Este).

El 21-08090 el MACA emite la Resoluci6n Ministerial 06-90 creando la C.E.R.Comisi6n Ejecutiva Regional del Proyecto Tierras Bajas del Este, la misma que delegasus funciones a la Unidad del Proyecto establecida como una Unidad de Coordinaci6n yMonitoreo con responsabilidades y atribuciones acordes a tal fin.

Durante el periodo de implementaci6n del proyecto (1990-97) el Departamento deSanta Cruz demostro ser una de las regiones mas dinamicas de la Amazonia,confirmando su preponderante rol como motor de la economia nacional. La fronteraagricola productiva ha cuadruplicado las tierras en producci6n;

En este proceso, el proyecto Tierras Bajas del Este tuvo un rol preponderante paraencauzar el desarrollo sobre bases sostenibles.

Los objetivos del proyecto fueron:

38

Appendix B Page 2

i) Encauzar el desarrollo de largo plazo sobre bases racionales mediante lapreparaci6n e implementaci6n de un plan de uso de los recursos de la regicn,procurando mecanismos para dirigir y monitorear la expansi6n de la producci6Snagricola ya iniciada espontaneamente,ii) Aumerntar la producci6n de productos rentables para fortalecer la ba!anzacomercial del pais aumentando exportaciones y sustituyendo importaciones.iii) Desarrollo tecnol6gico y de mecanismos crediticios para incrementar laproductividad agricola comercial y el nivel de ingresos de agricultores desubsistencia, mediante investigaci6n, extensi6n y facilitar el acceso al credito,iv) Mejoramiento de la infraestructura vial y de almacenamiento de cranos,v) Introducci6n de politicas de fijaci6n de precios de tierras fiscales en base almercado para su uso mas eficiente y para reducir el acaparamiento especulativo, yvi) Apoyar a los grupos indigenas "ayoreos" y chicluitanos en sus esfuerzos pa-ademarcar sus tierras tribales y mejorar sus condiciones de vida.

El proyecto estuvo en general bien disenado para encauzar un procEso cledesarrollo muy dinamico, impulsado por un sector privado pujante. pero que se perfilabaen forma desordenada. Sus diversos componentes procuraban fortalecer los servicios cleapoyo indispensables para aumentar la producci6n y productividad, pero dando n,fasis ala planificaci6n, orientaci6n y control del uso de los recursos naturaies.

Durante el periodo de implementaci6n del proyecto (1990-97), el Departamento deSC demostr6 ser una de las regiones mas dinamicas de la Amazonia, confirmando supreponderante rol como motor de la economia nacional. El PBI departamental creci6 entre1989 y 1996 a una tasa de 7.8% a.a., frente a un crecimiento del PBI del resto del pais de3% a.a.. La participacion del producto agropecuario en el PSI departamental se estimaque pas6 del 18% al 30% en el periodo. El notable crecimiento del producto sectorialcruceno viene teniendo tambi6n un impacto substancial en el balance comercial del pais.Entre 1988 y 1996 las exportaciones nacionales crecieron de US$600 a USS1.187millones (98%), mientras que las exportaciones de origen agropecuario del DSC pasaronde USS2 a US$185 millones (656%). Los sectores agropecuario y agroindustrial dErlDepartamento de Santa Cruz son responsables del 15.6% de las exportaciones totales,cuando en 1988 aportaban el 4.1%. Adicionalmente, ia producci6n agropecuariasubstitutiva de exportaciones fue tambien notable, como lo ilustra e! valor de producci6nde trigo que pas6 de USS2 millones a US$15 millones (650% de incremento).

La causa principal de este crecimiento sectorial, tal como se preveia, se bas6fundamentalmente en la ampliacion de la frontera agricola. Entre 1989 y 1996 el area bajacultivos agricolas pas6 de unas 500.000 ha a rnas de 1.300.000 ha, incrementandose enun 16.5% anual hasta 1994 y un 6% en 1995 y 1996. La superficie cultivada de soja crecica una tasa sostenida del 20% anual superando actualmente las 500.000 ha.

LOGROS ALCANZADOS

El proyecto alcanz6 buena parte de los objetivos buscados, superando en algunoscasos las metas esperadas, al haberse: (i) completado la planificacion y elaboraci6n delPlan de Uso del Suelo (PLUS) del Departamento, constituyendo una herramienta valiosa[para encauzar el desarrollo regional, (ii) apoyado el desarrollo de la producci6n agricolacuyo crecimiento super6 en mas de seis veces las metas del proyecto tanto en relaci6n ala producci6n y exportaciones de soya, como a la sustituci6n de importaciones de trigo,mejorando substancialmente la posicion de la Balanza Comercial del pais; (iii) contribuidc

39Appendix B Page 3

a desarrollar nuevos mecanismos de generaci6n y transferencia de tecnologias parasustentar el desarrollo sectorial; (iv) mejorado substancialmente la infraestructura decaminos para la interconexi6n y transporte de insumos, productos y servicios en zonas demayor potencial productivo; (v) apoyado a los indigenas chiquitanos y a los grupos de"ayoreos" en sus esfuerzos para demarcar sus tierras comunitarias y en el caso de losayoreos, mejorar sus condiciones de vida; (vi) contribuido a crear el marco juridico-institucional y la normativa indispensable a nivel nacional, para lograr un uso eficiente ysostenible de los recursos naturales, frenar la especulaci6n y controlar la explotaci6n ysostenibilidad de los recursos.

El componente de recursos naturales alcanz6 la mayor parte de sus objetivos,aunque requiriendo mas tiempo del previsto originalmente. El PLUS, que es elinstrumento tenico-normativo del ordenamiento territorial que delimita espaciosgeograficos y asigna usos al suelo para optimar el beneficio que este proporciona,manteniendo el uso y manejo sostenible de sus recursos naturales renovables, fueelaborado y puesto en vigencia mediante decreto supremo en setiembre de 1995. En sugestaci6n, hubo una amplia participaci6n de las fuerzas vivas del Departamento a travesde una comisi6n sectorial, lo cual facilit6 el proceso de apropiaci6n del instrumento parasu efectiva viabilizaci6n. Se elaboraron ademas, PLUS Municipales con sus mapastematicos, siendo presentados en todos los casos a autoridades y fuerzas vivasmunicipales, al igual que en zonas de conflicto para evitar que se continue afectando losrecursos naturaies.

La Oficina Tecnica (OT-PLUS), actualmente dependencia de ia Direcci6n deDesarrollo Social de la Prefectura del Departamento, viene profundizando el Plan en las.reas de mayor presi6n, monitoreando el uso del suelo, [as areas de reserva y losincendios forestales a pesar de fuertes limitaciones oresupuestales. Se vienemonitoreando el respeto al PLUS con el apoyo de la exigencia legal de la ficha ambiental,que ante situaciones de hecho, concede plazos de hasta 5 anros para la adecuaci6n a lasnormas establecidas. El Plan es ademas, un instrumento de consulta para los agricultoresque siguen ampliando la frontera agricola. Asimismo, se han delimitado 500.000 ha detierras indigenas, aunque sin llegar a solucionar su tenencia legal, actualmente en manosdel INRA.

El componente vial fue ejecutado en forma satisfactoria, e introduciendoselealgunas modificaciones para adecuarlo mejor a sus objetivos, ha generado un tremendoimpacto econ6mico para la regi6n, mejorando caminos existentes en lugar de realizarnuevas aperturas: y ampliando hacia el Este los accesos, al demostrar el PLUS que elarea tiene una excelente aptitud de uso agricola en esa sub-regi6n, mayor a la estimadaoriginalmente (1 mill6n de ha en lugar de 500.000 ha); el mejoramiento de accesos aareas de pequenos agricultores, etc.. Con las enmiendas aprobadas, se reasignaronfondos inmovilizados de la categoria de credito para ampliar estas obras, en especial enel area integrada para favorecer a bolsones de pequenos agricultores, con lo que alculminar las obras, se habra construido unos 470 Km de caminos vecinales.

Este Componente resulto ser el mayor impulsor del desarrollo Nacional, por cuantola habilitaci6n, mantenimiento y/o construcci6n de tramos viales que se haninterconectado a las troncales; han facilitado el transito constante de y hasta las zonaspotenciales y de producci6n, estimulando de manera determinante la expansi6n de iafrontera agricola, con un notable incremento de la superficie dedicada a cultivos

40

Appendix B Page 4

industriales como la soya, el algod6n y el girasol principalmente, que han generado unimpacto econ6mico trascendental.

Las actividades del componente indigena han estado dirigidas fundamentalmentea las comunidades ayoreas, dejando en manos del componente de recursos naturales ladelimitaci6n de las tierras de indigenas chiquitanos. Las acciones desarrolladasincluyeron: (i) En el area de la salud: educaci6n en medicina preventiva, dotaci6n demedicamentos, campahas de vacunaci6n, construcci6n de postas sanitarias, suequipamiento, construcci6n de letrinas, perforaci6n de pozos para agua potable, etc.; (ii)En el area de educaci6n: refacci6n y construcci6n de escuelas. capacitaci6n de maestros,dotaci6n de pupitres y materiales de ensenanza; y (iii) como otras actividades: dotaci6n decalaminas y clavos para viviendas, mejoramiento de accesos camineros en doscomunidades, construcci6n de un puente, dotaci6n e instalaci6n de equipos decomunicaci6n, capacitaci6n agro productiva, etc.. Asimismo, se encar6 la delimitaci6n ydemarcaci6n fisica de sus tierras (242.000 ha y unos 480 km. de perimetro trabajado). Delas once comunidades cuyas tierras se delimitarian, solamente se complet6 lademarcaci6n de seis.

Ante la necesidad de crear un mecanismo de fijaci6n de precios de las tierrasfiscales a objeto de promover un uso mas eficiente y reducir su acaparamientoespeculativo, el proyecto incorpor6 mediante la enmienda correspondiente, elcomponente de Intervenci6n de Reforma Agraria para la realizaci6n de estudiosconducentes al ordenamiento de la tenencia y dotaci6n de tierras. Este proceso culmin6 afines de 1996 con la promulgaci6n de la Ley INRA, la que entre otras cosas determina lafijaci6n de precios de la tierra en base a mecanismos de oferta y demanda, de los quequeda excluido el pequeno campesino, al que se le puede dotar 50 ha en forma gratuita.

El proyecto tambien desarroll6 otras actividades de importancia para elcumplimiento de sus objetivos, que incluyeron: (i) La planificaci6n microregional paralos municipios de Warnes y Pail6n, (ii) Estudios de Fortalecimiento Municipal para laadministraci6n racional de los recursos municipales, funci6n delegada por las Leyes deParticipacion Popular, INRA y Forestal, (iii) Diseino final de ingenieria de caminosvecinales destinados a favorecer a pequenlos agricultores de siete provincias, totalizandomas de 480 km. (iv) Proyecto piloto de desarrollo rural de comunidades indigenaspara las microregiones de San Jose de Chiquitos y Robore.

La lnvestigaci6n Agricola realizada por el Componente Investigaci6n ha jugadoun papel importante para la regi6n, observandose que la difusi6n de tecnologia validadapor el CIAT y asimilada por los Productores a traves de la Transferencia Tecnol6gica hacomenzado a dar frutos en la Productividad Agropecuaria de la Regi6n.

Para la ejecuci6n de este Componente quecl6 como responsable el Centro deInvestigaci6n Agricola Tropical (CIAT), Instituci6n que fue reestructurada comoconsecuencia de su fusi6n con ia Unidad de Programas Rurales y Agropecuarios deCORDECRUZ (UPRA), y consolid6 el apoyo financiero de CORDECRUZ de 300.000$us./ano, mas los rendimientos de un Fondo de Fideicomiso de 10.000.000 $us., quegeneraria aproximadamente 900.000 $us./aflo a los que se sumaron los recursosprovenientes del Proyecto "Tierras Bajas del Este" para una ejecucion masdinamicamente de los programas de este Componente.

41

Appendix B Page 5

Un sub-programa de este Componente estuvo a cargo del Instituto deInvestigaciones Agricolas 'El Vallecito", dependiente de la Universidad Aut6noma GabrielRene Moreno.

El Objetivo Primordial de este componente fue procurar que los ProductoresAgropecuarios del Departamento dispongan de tecnologia para aumentar la producci6ny productividad

El objetivo especifico de los Organismos Ejecutores era que los investigadores-ytransferencistas del CIAT y del Instituto de Investigaciones Agricolas 'El Vallecito"transfieran de manera coordinada paquetes de tecnologias adecuadas a productores,recibiendo retroinformaci6n para futuras investigaciones y mejoramiento de equipos en lassiguientes areas:

IBRD 21886451 To San Raion, I

Ls Toncos

BOL1VIA

NATURAL RESOURCE MANAGEMENTAND

AGRICULTURAL PRODUCTION PROJECT

RURAL ROAD COMPONENTS: A

RECONSTRUCTIONREHABILITATIONMAINTENANCE

RAILWAYSEXISTING PAVED ROAD

EXISTING UNPAVED ROADS

,i/* t !5 10 KILOMETERS

e / /

Q f | e -?, ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~BRA;ZIL-'I~~~~~~~~~~~~~~~~~~~~~~~~~~~~l

To San Jose

4sh Pailon 30'

October 1989

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