The project aimed to increase agriculture productivity on the outer islands, thereby reducing income disparities with other island groups in the country, and to stimulate agriculture exports.
Project objectives were to be achieved by
- improving the agricultural extension services provided to the outer islands by the Ministry of Agriculture and Forestry
- increasing and sustaining agriculture production systems on the two northern islands (collectively known as the Niuas) and the island of 'Eua, and improving the standards of living of agricultural households on these islands through a community-based and integrated approach
- providing market support and development assistance to the farmers of the Niuas and 'Eua
- providing the infrastructure and support that these islands require for integrated agriculture development and a reasonable quality of life.
Summary of findings
This evaluation rated the project as unsuccessful, which is a substantial downgrade of the project completion report assessment of successful. The Project is assessed as less relevant, less effective, inefficient, and less likely to be sustainable.
Although the objectives were well founded on national social and economic needs, as well as the Government's policy and ADB's strategy for Tonga, the evaluation concluded that the large expenditures on infrastructure-the telephone system in particular-were never were going to have a significant impact on agriculture exports or household incomes in the Niuas, especially when the project did not address the key issue of transportation.
The project has put a considerable financial burden on the Government without producing any sustainable economic returns.
The project completion report stated the project produced significant beneficial changes in the lives of the target populations. The evaluation disagreed, and little evidence was seen to support this statement. Household incomes, agriculture production, and agriculture exports have changed little in the Niuas since the formulation of the project. Although the island of 'Eua has benefited from increased agricultural opportunities (given its much more favorable location), these were not due to the project.
The evaluation did not consider that the project had any impact on reducing inter-island income disparities.
Further, the two technical assistance grants attached to the project were rated as successful and partly successful respectively. The performance of both ADB and the Government were rated as less than satisfactory.