2000 Project Evaluation Results
Prepared by the UNCDF Evaluation Unit

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Eritrea

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I. Basic Project Data

Project Numbers:	ERI/92/C01, ERI/92/01, ERI/94/01
Type of Evaluation:	Ex-post
Project Title:	Semhar Fisheries Rehabilitation Project
UN Cooperating Organization:	UNDP
Government Executing Agency:	Ministry of Fisheries
Sector:	Agriculture
Sub-sector:	Fisheries
Date Project Approved:	1992
Date Project Began:	1992
Date Project Ended:	2000
Date Project Evaluated:	January/February 2001
UNCDF Budget:	US$     4,030,475
Gov't. Budget:	832,564
UNDP Budget:	4,076,354
Total Budget:	US $ 8,633,329
Actual UNCDF Expenditures:	$4,029,945

 

II. Background

In the 1950s, Eritrea had an estimated output of 25,000 metric tonnes of fish, involving a large number of fishermen. Much of the production was along the southern part of the coastline between Assab and Ti'o and was destined for industrial feed production in Italy as well as for human consumption in Sri Lanka. The closure of the Suez Canal in 1967 and the ensuing political instability brought the fisheries sector to a halt.

UNDP, UNCDF and FAO were providing technical assistance in Assab under the Ethiopian political regime from 1986 up to 1991. After independence, the authority for fisheries in the Provisional Government of Eritrea (PGE) became the Department of Marine Resources and Inland Fisheries (DMRIF). Starting from an almost totally de-capitalized fisheries sector after independence, the PGE aimed to revitalize the once productive sector as a means of bringing back into the mainstream those areas that had long been economically dissociated from the rest of the country. The PGE through the DMRIF requested a joint UNDP/CDF/FAO effort to shift the geographical focus of rehabilitation of the sector from Assab to the Massawa/Dahlak axis.

Consequently, the Semhar Fisheries Rehabilitation project was formulated in June 1992 and approved by the end of 1992. In April 1993, before the project got underway, the suspended UNDP/UNCDF/FAO projects in Assab were reactivated and the remaining funds were placed under the project. In 1995, a second project, the Capacity Building for the National Marine Resources Programme (ERI/94/001), was started with the assistance of UNDP to complement the development effort and to strengthen Ministry of Fisheries and Marine Resource's capacity to utilize and build upon the infrastructure activities. This is a joint evaluation of both the Semhar Fisheries Rehabilitation project and the Capacity Building project.

III. The Project

1. Semhar Rehabilitation Project

Development Objectives

1. Improve the incomes and quality of life of the fishing communities, for whom fishing is the sole economic activity;
   
2. Increase the supply of fish, a valuable source of protein, at least to the urban areas, where the nutritional status in general is below desirable standards;
   
3. Generate foreign exchange by promoting export of those fish or marine products for which no domestic market exists;
   
4. Support and strengthen national fisheries institutions in the public and private sectors to promote self-sufficiency in national fisheries management.

Immediate Objectives

1. Rehabilitation of the fleet to support fish production by ensuring an adequate supply of scarce fishery inputs.
   
2. Improvement of fish landing and distribution by providing a range of services to the Massawa / Dahlak artisanal fishing industry.
   
3. Improvement of social infrastructure to improve standards of living in the fishing villages (on the Dahlak Islands).
   
4. Strengthening of the Fisheries Department (now the Ministry of Fisheries) by establishing a Project Implementation Unit (PIU) within the Department.

The expected outputs of the Semhar Project were:

1. Rehabilitated fishing fleet: At project completion the total number of vessels in the Dahlak / Massawa gillnet and handline fisheries' would have increased from 70 to about 85.
   
2. Increased employment: The number of active vessel owners increased through the project from 70 to 85, while the number of crewmen employed would rise from 350 to almost 500. Approximately 40 new jobs would also be created in the fish distribution and retail trade.
   
3. Increased Income: Mean annual crewmen's income would rise as a result of the project from an estimated $1,400 to $2,200 (in local currency).
   
4. Strengthened fishermen's association: By the end of the project period, the association would be expected to have evolved into fully independent entities, capable of managing their own finances and of making their own investment decisions in the future.
   
5. Improved availability of fish on the domestic market: The supply of fresh reef and large pelagic fish to domestic markets in Massawa and Asmara would be expected to increase from about 600 tonnes per year to about 1,100 tonnes.
   
6. Increase export earnings: The value of fish products (mostly dried shark and shark fins) to be exported is expected to exceed US$ 1.3 million per annum

2. Capacity Building Project

Development Objectives

1. Develop programme planning, managerial, monitoring and coordinating capacity and to ensure the effectiveness of key Ministry functions.
   
2. Develop fisheries research and coastal environment assessment and monitoring capacity to ensure long-term sustainability in the exploitation and conservation of the resource base;
   
3. Strengthen marine resources related institutions in their capabilities of promoting, coordinating and monitoring an expanded but carefully planned and managed sustained development of the marine resources sector;
   
4. Develop training and extension services through on-the-job training, formal classroom skill development and the development of government extension workers to assist fishermen to improve the technical and economic effectiveness of their work;
   
5. Develop a core of effective and control capacity for ensuring compliance with fisheries and environmental regulations.

Immediate Objectives

1. Re-structuring of the Ministry planning and coordination functions to make it fully operational.
   
2. Establishment of a statistics and information network, including databases, and documentation facilities.
   
3. Designing management policy frameworks and strategies for small-scale and industrial fisheries, including licensing and other access arrangements.

The expected outputs of the project were:

1. A streamlined and re-organized Ministry of Fisheries (previously known as Ministry of Marine Resources).
   
2. Fully trained personnel to undertake such activities as project planning and design, sector long-term planning; co-ordination of externally funded activities; co-ordination with other ministries; statistics, monitoring and evaluation; environmental research; and assessment and administration.
   
3. Fully trained personnel to run branch offices involving programme and project management, technical assistance to fisher folk, new project development and administration
   
4. Establishment and operation of a Credit Scheme, which is one of the main functions of the co-operatives

IV. Findings

Assessment of project design

Neither project benefited from the application of the Logical Framework Approach at the design stage. As a result, as evident from the above, there was some confusion between outputs and objectives articulated in the projects. Some of the assumptions in project design were faulty. The project overestimated the potential size of the domestic market instead of focusing on the export market earlier which might have enhanced foreign income generation. Another faulty assumption was the local capacity for boat-building and repair. As it turned out, the tradition of boat building was never really well established and many of those engaged in boat building and repair had left or, if returned, had different working arrangements with boat owners. In addition, all inputs for boat repair and building had to be imported at considerable cost.

Results

As a result of the border conflict, many able-bodied young Eritreans in the Ministry of Fisheries as well as in fishing communities were drafted into the National Service, taking away important expertise and labour during the years 1999 and 2000. Despite this, the level of accomplishments of the project is surprisingly high. Although there were delays, most of the project outputs were delivered.

The Semhar Project resulted in the construction and rehabilitation of landing facilities, slipways, cold store ice plants, machinery and spare parts, and building space for office and retail stores. Project funds were used to buy refrigerated trucks as well as boats, engines, nets and other gear for fishermen. A boatyard in Massawa with workshops for refurbishment, repair and maintenance of boats was also set up. A revolving fund was set up with a line of credit to help fishermen purchase their inputs. However, this has to be re-enforced with a new infusion of capital along with more rigorous managerial assistance, perhaps in the form of a TA project. Care must be taken here to ensure that the current state of low repayment brought about by the border conflict does not foster a mindset of open-ended dependence. A more focused TA project targeting co-operatives may answer this need.

Though the co-operatives have recently been proclaimed legal entities that can engage in the full range of fisheries activities, as opposed to just harvesting, they have yet to be used for bargaining clout for collective purchasing. Fishermen providing premium grade fish for export should not be operating on thin margins in the face of monopsonistic pricing. If the co-operatives develop their marketing networks, at least within the country, then their acquired skills can be used to expand sales directly to the regional market, and not through fishing companies.

Impact

These two projects had a profoundly positive impact on the development of the fisheries sector in Eritrea from their inception to their completion. The projects' impact can be seen at all levels - community, regional and national. Landings have increased from about 300 metric tonnes in 1993 to 1400 metric tonnes in 2000. Starting with an almost totally decimated industry, the sector now provides employment for 3000 workers and their families. The quality of fish has improved to the point where exports and royalties are earning the Eritrean Government much needed foreign currency. However, although much has been achieved, there remains room for improvement, especially regarding infrastructure in the villages.

The dependence on the Yemen market makes progress in the sector vulnerable. During the Hanish Islands conflict, there was glut of fish in Eritrea and ex-vessel prices were so depressed that fishermen were unable to meet their payments to the revolving fund. The financial sustainability of various project components appear to be uneven. The refrigeration company, REFCO, is a candidate for divestiture as it is in a good position to be profitable and self-sustaining. REFCO enjoys a near monopoly on supplying refrigeration repair and maintenance services throughout the sector. The Massawa Boat Yard, in contrast, is not a good candidate for divestiture as it suffers from a lack of skilled labour and managerial skills, most of the machinery is past its useful life and the general appearance of the yard is that of a run-down facility. The Massawa Boat Yard can play an important role if it is twinned with the joint venture Harena Boat Yard as a repair and maintenance facility. One of the mission's observations is that despite the stated policy and efforts to encourage the artisanal sector, there appears to be a shift towards favouring the industrial component; more of the catch that goes through the Massawa Fisheries Centre is caught by industrial trawlers than by artisanal fishermen.

V. Recommendations

The management of fisheries in Eritrea is based on a model of public ownership and government regulation consistent with long-term sustainability. Whereas this is applied with a fair degree of rigour, the catch of Yemeni boats operating in Eritrean waters goes unreported. The long-term implications of this are likely resource depletion and a shift towards less desirable species composition or size distribution.

The FAO's Code on Conduct for Responsible Fishing should be adopted and enforced and, as an operating condition, foreign trawlers may be asked to submit to a Vessel Monitoring System (VMS). Another approach to avoid the twin problems of biological over-exploitation and economic over-capitalization in the fisheries sector is to adopt a régime of management based on property rights. This can take any number of forms ranging from territorial use rights in fisheries (TURF) to Vessel Quotas and Individual Transferable Quotas (ITQs).

The fisheries cooperatives should undertake ancillary business activities, like provision of consumer items and related ventures (e.g. ecotourism, ornamental fish collecting for sale to the international marine aquarium trade, etc.) rather than merely providing fishing labour.

VI. Lessons learned

Project Design

More effort could be spent at the design stage to clearly define and articulate objectives and outcomes through the LFA. This is not to advocate a rote application of the methodology, but for a genuine engagement of stakeholders.

Channels of clear communication have to be established and maintained early in the process of project design. There appeared to be a disparity between the expectations of the Ministry of Fisheries as the implementing agency and the CTA and his interpretation of his TOR.

Project monitoring and evaluation need to be fully integrated into the project, to ensure adaptive management. Key performance indicators (KPI's) have to be identified for each of the expected outputs and means for their verification.

Capacity Building

The level of technical expertise on the part of assigned staff of a project should be closely assessed. An alternative way to build capacity through a TA project is to adopt a workshop format that is prepared in advance and repeated at various times and locations. Another strategy currently developed and applied by FAO's Fisheries Industry and Technology is a course in distance learning that is tailored for fisheries officers stationed away from the centre. This self-paced distance-learning course offers participants an opportunity to build their expertise in a variety to disciplines and practical skills.

Fisheries Cooperative Societies as target for Community Development

If future assistance is to be informed and inspired by UNCDF's document "Taking Risks", then the fisheries co-operative societies in Eritrea offer a perfect target for community-based development.

VII. The Evaluation Team

• Elie Moussalli - Fisheries Expert (QED Associates; Team Leader)
• Mr Tesfay Haile - Fisheries Expert