Singapore - Second Education Project

FILE COPY DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Report No. 203a-SI APPRAISAL OF A SECOND EDUCATION PROJECT IN THE REPUBLIC OF SINGAPORE January 17, 1974 Education Projects Division Asia This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  CURRENCY EQUIVALENTS* Currency Unit = Singapore dollar (SS) US$1 = S$ 2.30 S$ 1 = USS0.43 S$ 1,000,000 = US$434,700 MEASURES I m2 3.28 ft 1 m 2 10.76 sq ft 1 km2 0.38 sq mi 1 hectare = 2.47 acres Fiscal Year April 1 - March 31 *From June 20, 1973 the Singapore dollar has been allowed to float in relation to the US dollar. Since then the average exchange rate has been S$ 2.30 = US$1.00. The previous rate was SS 2.54 = US$1.00.  REPUBLIC OF SINGAPORF APPRAISAL OF A SECOND EDUCATION PROJECT (The University of Singapore) TABLE OF CONTENTS Page No. BASIC DATA SUMMIARY AND CONCLUSIONS ................. .................. i-iii I. INTRODUCTION ......................................... 1 II. ECONOMIC DEVELOPMENT AND MANPOWER NEEDS .... .......... 1 Background ...................................... 1 Manpower Requirements ........................... 2 III. TIE EDUCATION AND TRAINING SECTOR .................... 3 Evaluation of the System ........................ 3 Development of University Education .... ......... 4 Education Finance ............................... 7 IV. THE PROJECT .......................................... 7 General Features ................................ 7 Project Items ................................... 8 Staff and Staff Development ..................... 9 Cost of the Project ............................. 10 V. IMPLEMENTATION AND DISBURSEMENT ...................... 14 Implementation .................................. 14 Project Monitoring Indicators .... ............... 15 Disbursement ............ . . 15 VI. BENEFITS AND JUSTIFICATION ........................... 16 VII. AGREEMENTS REACHED AND RECOMMENDATION .... ............ 17 This report is based on the findings of an appraisal mission which visited Singapore in March - April, 1973. The mission consisted of Messrs. S.Z. Sung (technical educator), D.H. Lewis (architect), M.H. You (economist), and J.C. McKelvey (medical education specialist, consultant).  -2- A?2PFNDIX Education and Training ANNEXES 1. Comparative Education Indicators 2. Enrollment by Level of Education 1965-1983 3. Graduate Teacher Requirements 1973-1983 4. Public Expenditure on Education by Purpose 1967-1973 5. Summary of Estimated Project Costs 6. Contingency Allowances 7. Forecast of Disbursement 8. Loan and Project Summary CHARTS 1. Administrative Structure of the Ministry of Education, 1973 2. Structure of Education System, 1973 3. Education Pyramid, 1972 4. Academic and Administrative Structure of the University of Singapore, 1973 5. Implementation, Expenditure and Disbursement Schedule MAP  SINGAPORE BASIC DATA 1972 General 2 Area 226 sq mi (586 km ) Population (December, 1972) 2.15 million Population Density 9,500 per sq mi Labor Force (est.) 751,000 Fducation Enrollment in primary schools (grades 1-6) 354,800 As a percentage of 6-11 years age group 107%* Enrollment in secondary schools (grades 7-10) 147,200 As a percentage of 12-15 years age group 63%* Enrollment in pre-university classes (grades 11-12) 14,100 As a percentage of 16-17 years age group 13%* /1 Enrollment in post-secondary institutions 13,800- As a percentage of 18-21 years age group 7.1%* Enrollment in universities 7,800 As a percentage of the 18-21 years age group 4%* Total public expenditure on education S$ 230 million As a percentage of total government expenditure 11.5% As a percentage of GDP 3.1% Total public expenditure on university education S$ 26 million As a percentage of total public expenditure on education 11.3% * Includes over-age and under-age students. /1 Includes enrollment in university but excludes: 740 during 5th year and above at tertiary level, 550 at Teachers' Training College (course structure being changed) 5,840 at Vocational and Technical Institute (duration of courses varying).   REPUBLIC OF SINGAPORE APPRAISAL OF A SECOND EDUCATION PROJECT (The University of Singapore) SUMMARY AND CONCLUSIONS i. This report appraises a second education project in Singapore for which a Bank Loan of US$19.5 million is proposed. ii. The education and training system of Singapore is well-developed and has been responsive to the changing needs of a rapidly expanding economy. About two-thirds of the relevant age group are enrolled in secondary schools and some 4% of the relevant age group attend university courses. Shortages of professional manpower are, however, becoming acute and may soon constrain the growth of manufacturing and the development of social services. A serious drawback in developing university education is that the University of Singapore has much outmoded facilities dispersed at four different sites, all located in highly congested central areas of the city. In order to expand enrollment and improve the quality of instruction and research, the Government has decided to relocate the University. The first phase of this relocation comprises the Faculty of Engineering, the Faculty of Architecture and the School of Accountancy and Business Administration and is being assisted under Loan 802-SI of 1972. The second phase, comprising the relo- cation of the Faculties of Science, Arts and Social Sciences and Law and the School of Pharmacy as a department in the Faculty of Science, would be helped by the proposed second project. The third phase, planned for 1977 and com- prising the Faculties of Medicine and Dentistry, would complete the reloca- tion of the University. iii. The proposed project would consist of: (a) construction of, and provision of furniture and equipment for, the Faculties of Science, Arts and Social Sciences and Law, together with administrative, boarding and other supporting facilities; and (b) professional fees for coordination of the campus master plan and building design and the employment of consultants for specialist engineering services. iv. As a result of the relocation, the capacity of the University would increase from about 5,200 to 7,500 students and the distribution of enrollment would be altered to better meet expected manpower needs for economists, engineers, scientists and health personnel. Two-thirds of the students would be in professional courses and 17% in arts and social sciences, including economics and secondary teacher education. v. The first project was designed to help meet manpower needs in the fields of engineering, architecture, accountancy and business administration. The second project would also aim at meeting specific requirements for  - ii - professionals. The Faculty of Science would double its output to provide for secondary school teachers and to supply managers and scientists neces- sary to industrial development; and an expanded supply of economists, business lawyers and legal assistants would be available to meet the needs of commerce and industry. Overall enrollment expansion of the University would be about 4% p.a. during 1973-83, slightly higher than the growth of the relevant age group; emphasis would be primarily on improvement of the quality of instruction and research. With the relocation of the four existing campuses on one site, buildings would be more functional and equipment modernized, academic interaction between students in different faculties would be improved, staff and facilities would be better utilized and duplication of courses would be eliminated. vi. The University of Singapore Development Unit, which is supervising implementation of the first project, would also be responsible for imple- menting the second project. The architectural staff of this Unit would design all buildings. Supporting engineering services by local consultants would be used for all construction work. vii. Contracts for construction and for the procurement of furniture and equipment would be awarded on the basis of international competitive bidding in accordance with Bank Guidelines. It is expected that construc- tion and most furniture contracts would be awarded to local firms and that most equipment would be imported. Preferred domestic manufacturers of furniture and equipment would be allowed a margin of preference equal to the existing duties applicable to competing imports or 15% of the c.i.f. price, whichever is the lower. At present, however, it is the practice of the Singapore Government not to charge duties on imports for educational purposes. viii. The project would be completed in about six years from the effective date of the Loan Agreement, including defects liability periods. Construction would be completed in about five years. ix. The total project cost is estimated at US$42 million equivalent including contingency allowances of US$11.8 million equivalent or about 39% of the basic project cost to meet unforeseen events and price in- creases. These costs, though comparatively high, are based on recent cost trends in Singapore and take due account of the Government program to check inflationary pressures. The proposed financial plan provides for Bank financing of the estimated foreign exchange component of US$19 million and also the local currency portion of the ex-factory cost of furniture and equipment likely to be procured locally, which amount is estimated at US$0.5 million equivalent. The proposed loan of US$19.5 million, equivalent to 46% of total project cost, would be disbursed to meet (a) 100% of the c.i.f. cost of directly imported furniture and equipment; (b) 85% of the total expenditure on imported but locally procured furniture and equipment; (c) 95% of total ex-factory costs of locally manufactured furniture and equip- ment;(d) 100% of the foreign costs of foreign campus planning and specialist  - iii - engineering consultancy services; and (e) 42% of the cost of construction and site development and of local engineering consultancy services. x. The proposed project is suitable as a basis for a loan of US$19.5 million equivalent to the Republic of Singapore for a term of 20 years including a six-year grace period.   REPUBLIC OF SINGAPORE APPRAISAL OF A SECOND EDUCATION PROJECT (The University of Singapore) I. INTRODUCTION 1.01 In 1972, the Bank extended a loan of USS9.5 million (Loan 802-SI) to assist in the implementation of the first phase of the University of Singapore development plan. This first project is supporting the relocation of the University from four scattered campuses to one new and more suitable site and includes the Faculty of Engineering, the Faculty of Architecture and the School of Accountancy and Business Administration. The proposed second project would assist the transfer of the Faculties of Science, Arts and Social Sciences and Law, and the School of Pharmacy as a department in the Faculty of Science to the new site. It would comprise the construction and equipping of these Faculties together with supporting facilities. The total cost of the proposed project is estimated at US$42 million equivalent and the foreign exchange component at US$19 million. 1.02 The proposed project was appraised in March/April, 1973, by a mission comprising Messrs. S. Z. Sung (technical educator), D. H. Lewis (architect), M. H. You (economist) and J. C. McKelvey (medical education specialist, consultant). II. ECONOMIC DEVELOPMENT AND MANPOWER NEEDS Background 2.01 Singapore, an island republic situated at the southern tip of the Malay Peninsula, has long been one of the most important commercial and financial centers in South East Asia. It is, in fact, an urban island with only 20% of its 226 square miles cultivated. With a population slightly exceeding 2 million and comprising about 76% Chinese, 15% Malays and 9% Indians, Pakistanis and others, Singapore is one of the world's most densely populated countries (9,500 persons per sq mi). A vigorous population control program has reduced annual population growth from 2.5% in 1965 to 1.7% in 1972. 2.02 Lacking land, natural resources and sizeable domestic markets, in the 1960s Singapore invested heavily in labor-intensive industries and social services, such as public housing, health and education. Since its separation from Malaysia in 1965, Singapore's GDP has increased at an average rate of just under 14% p.a. and GDP per capita reached about USS1,200 in 1972, the highest of any developing country in Asia. Industrial output increased four-fold between 1966-72. The increment in manufacturing value added accounted for one-third of GDP growth in 1972, making manu- facturing the leading sector of the economy. Entrepot trade, once the dominant sector, has been eclipsed in importance by industry. In short, Singapore is changing from a predominantly trading center into a predomi- nantly industrial one.  -2- 2.03 Several factors have made Singapore highly attractive for foreign investment, namely: (a) a stable, pragmatic administration; (b) an indus- trious, well-educated labor force; (c) a strategic geographical location; (d) excellent communication and transport infrastructure; (e) well developed facilities for banking and commerce; and (f) various investment incentives. The number as well as the size of manufacturing firms has steadily increased. The value of new investment commitments by foreign (USA, Japan, UK, Germany) and joint ventures in the early 1970s exceed total foreign investments made in the 1960s. The Jurong Industrial Estate is already reaching its planned capacity of 470 firms and 70,000 employment well ahead of schedule. Recent investment emphasizes the development of sophisticated export goods (elec- tronics, precision instruments, etc.) and oil processing. 2.04 The Government is currently reviewing plans for public sector investment over the next five years and its program is not yet available. However, a number of recent documents state clearly the Government's objectives along with the policies to support their attainment. The industrial development policy aims at maximizing productivity and making optimum use of scarce labor by encouraging the establishment of skill- intensive export industries. As an integral part of this policy, the Government is becoming increasingly selective in the new industries it encourages to come into the country. In the social sectors, the Government aims at improving the welfare of a population living in an increasingly more urbanized and industrialized city-state. This is to be achieved by providing adequate educational, housing and health facilities and by improving mass transport and pollution control. As the attainment of these objectives requires price stability, the Government is concerned with the necessity to check inflationary pressures; although in recent years the cost-of-living index has grown by no more than 37 p.a., over the period 1967-72, wages for unskilled labor have increased by 8% p.a. and construc- tion costs by over 10% p.a. 2.05 Bank staff projections indicated that in 1983 about 40-45% of GDP will derive from manufacturing, an increasingly sophisticated sector which will be responsible for US$2 billion equivalent of exports. This growth pattern needs to be supported by increased skills, especially at the professional level, in order to maintain Singapore's comparative advantages in the world market. Additional manpower is also needed to extend social services more evenly. Manpower Requirements 2.06 Singapore's labor force has increased by 4.6% annually since 1966, reaching 751,000 in 1972, or 35% of the total population. 1/ As a result of rapid growth, labor surpluses (e.g., over 8.7% of the labor force was unemployed in 1965) were transformed into labor shortages in the 1/ Size of labor force is determined by assuming the following partici- pation rates of age group, 15-64 years: 55.4% in 1966 and 58.4% in 1972.  early 1970s. Furthermore, the distribution of employment by economic sector has dramatically changed with manufacturing now absorbing 25% of total employment as against some 15% in the early 1960s. Increased sophistication of industry has required a rapid expansion of employment of professional and technical workers: recently, the number of jobs in these categories has grown by about 14% p.a. in the private sector. Skill shortages have appeared at all levels and have caused inflationary pressures (para 2.04). The Government has therefore relaxed its immigration policy: work permits issued to foreigners have increased from 4,500 in 1968 to some 100,000 1/ in 1972. However, most of the immigrants are unskilled and semi-skilled workers from neighboring countries and therefore the shortages have been alleviated only at those levels of employment. 2.07 There are no official government estimates of employment growth bv sector and occupation up to the early 1980s. A Bank staff projection indicates that GDP in real terms will grow by some 11% p.a., and total employment is likely to reach one million by 1983. Manufacturing is expected to absorb about 33% of total employment and the service sectors some 60%. Employment of professional and technical manpower is likely to increase from 49,600 in 1972 to 140,000 in 1983 to support industrial development and the expansion of social services. 2.08 The manpower estimates made by the Ministry of Education and the Economic Research Center of the Universitv of Singapore indicate that over the next decade 250 science graduates p.a. would be needed annually to provide teachers for the secondary schools. An additional 500 science graduates would be required annually by private companies, the government service and other statutory bodies in both managerial and research capacity. Research is of great importance to ensure that rapid industrial growth will not be associated with high social costs and damage to the environment. This is particularly urgent in view of the emphasis on oil and petrochemical manufacturing and of the need to adopt waste-free and pollution-free production processes. III. THE EDUCATION AND TRAINING SECTOR Evaluation of the System 3.01 Singapore's education and training system has been adapted well to structural changes in the economy but further development is required at the university level to satisfy socio-economic needs. Schools enroll virtually all the relevant primary school age population (6-11), and 1/ Unofficial estimate. 2/ The education and training system is described in the Appendix and the basic data are given in Annexes 1-2 and Charts 1-4.  -4- nearly two thirds of the lower secondary age students (12-15) with 13% at upper secondary level and 4% at university level. Population and enrollments in the primary age group have been declining since 1969 and are expected to begin declining for the secondary age group by 1978 (Annex 2). Free of pressure to expand enrollments at the lower levels, the Government's policy is to: (a) improve the quality and practical relevance of secondary education; (b) expand out-of-school education; (c) expand post-secondary technician training; and (d) develop university education. 3.02 To improve the content of general education, curricula have been updated, wide use made of modern teaching nethods such as educational television, and centralized workshops have been established at the lower secondary level to provide pre-vocational courses. The general and tech- nical streams at upper secondary level have been recently merged to give all students a more balanced instruction including practical subjects. However, full benefit from these changes is hampered by the inadequate qualification of about half of the secondary school teachers (Annex 3). Government policy for quality improvement includes the exclusive employment of graduate teachers for grades 9-12 by 1983. 3.03 To complement vocational training and to reduce the shortages of skilled workers, the Government has encouraged private companies to conduct accelerated in-plant training schemes. Beginning in 1973, this skill training is being coordinated by an Industrial Training Board. An Adult Education Board organizes evening classes to teach skills in short supply and to prepare workers for promotion. 3.04 Requirements for technicians are being met by an expanded program assisted by the Asian Development Bank and UNDP. As a result of these developments, the three institutions concerned, the Singapore Polytechnic, Ngee Ann Technical College and the Singapore Technical Institute, are expected to enroll 11,500 students in 1983 compared with 7,600 in 1973. 3.05 Past developments in university education have been modest as compared with expansion and improvement at the other levels. Expansion at university level is needed, not only to meet manpower requirements (paras 2.06-2.08) but also to improve access to higher education and pro- fessional employment. Qualitatively, whilst at the other levels programs have been modernized and collaboration among institutions and between the education system and industry has been made more effective, the two univer- sities of the country have not fully coordinated their course offerings. Their facilities occupy as many as five different campuses and present premises, particularly those for the sciences, are not, in general, suitable to the higher education standards required in an industrialized country at Singapore's level of development. Development of University Education 3.06 Singapore has two universities: the public University of Singapore (enrollment 5,200) and the private but publicly assisted Nanyang University (enrollment 2,600). The University of Singapore gives a com- prehensive range of courses in seven Faculties and four Schools and uses  - 5 - English as language of instruction while Nanyang University has three Faculties and the courses are taught mainly in the Chinese language. Development of the two universities is coordinated by government senior officials who are members of the governing councils of both institutions. This method of coordination has not been fully effective in the past (para 3.05) but is now improving. Overall enrollment has increased from 5,000 in 1965 to 7,800 in 1973 (Annex 2) and is planned to reach some 11,500 in the early eighties. Within this context the University of Singapore will develop as the principal center of higher learning and research and give emphasis to professional courses representing two-thirds of its enrollment, while Nanyang University will emphasize humanities, Chinese studies and commerce, courses which account for 60% of its student body. 3.07 The University of Singapore presently suffers from its physical dispersion among campuses at four different sites. The main campus at Bukit Timah 1/ contains the Faculties of Law, Arts and Social Sciences, Physical Sciences and the School of Accountancy and Business Administration. The Faculty of Engineering is temporarily housed at the Polytechnic; the Faculty of Architecture is temporarily accommodated in leased premises. The Faculties of Medicine, Dentistry and the School of Pharmacy occupy premises adjacent to Outram Road General Hospital. This separation has caused dup- lication of courses, has prevented interdisciplinary contact between students in different faculties and has adversely affected utilization of staff and facilities. None of the four existing sites is capable of accommodating the entire university. 3.08 The Government has therefore decided to consolidate and expand the university on a 425-acre site at Kent Ridge. The quantitative plan for the relocation and development of the University is summarized in the following table: 1/ The main Bukit Timah campus covers 130 acres in a relatively central and high cost residential area of the city. However, existing build- ings (35-40 years old) occupy about two-thirds of the only high ground available on this site. The remainder is low-lying flat land subject to flood during the heavy rains and is too soft to support heavy construction. Thus, the site is not adequate for university expansion.  -6- University of Singapore Development Plan Enrollment / Staff Faculties/Schools 1972/73 1982/83 1972/73 1982/83 Accountancy and Business Administration 910 1,060 22 48 Architecture and Building 290 340 22 40 Arts and Social Science 860 1,200 86 95 Dentistry 170 230 18 25 Engineering 930 1,790 63 120 Law 390 550 23 35 Medicine/b 580 690 104 122 Pharmacy- 70 - 9 - Science 550 1,300 74 100 Total 4,750 7,160 421 585 /a Undergraduates only. /b Becomes a department in the Faculty of Science under the second phase development plan. Source: The University of Singapore and Bank staff estimates. This plan will allow undergraduate enrollments to expand by some 4% p.a. to reach about 7,200 students in 1983. The distribution of enrollments by subject in 1983 would be altered to approximate more closely to the expected manpower needs for scientists (para 2.08) and health personnel. The projected distribu- tion of enrollments indicates about two thirds in professional studies and 17% in arts and social sciences. 3.09 Detailed plans for the Nanyang University are still under prepara- tion but government projections indicate that the enrollment of this Univer- sity would reach 4,000 students in 1983 (Annex 2). Because of the uncertainty concerning the Nanyang University expansion and the effect that this might have on the proposed project, agreement was reached with the Government during negotiations that the Bank would be supplied with any higher education development plan which the Government may propose within the next five years. 3.10 The plans for relocation of the University of Singapore are sound. The site, about ten miles from the city center, is between the Jurong Industrial Estate (para 2.03) and the city's commercial districts. Public transport is available and mass transit will be routed nearby. There are plans to make productive use of the space vacated by the relocation. The Polytechnic campus of the Engineering Faculty will revert to the Singapore Port Authority. The lease for the architecture campus will be terminated. The Ministry of Finance is currently studying ways to use the Bukit Timah campus.  -7- Education Finance 3.11 Although total public expenditures in education increased by 47% from S$ 156 million in 1967 to S$ 230 million in 1972/73 (Annex 4), there was a decline in the share of education in national expenditure. During this period, public expenditure on education as a percentage of GDP fell from 4.2% to 3.1% and as a percentage of Government budget from about 23% to 12%. These declines, however, were the result of more rapid growth in GDP (14% p.a.) and government expenditures (21% p.a.) than education expenditures (8% p.a.) and did not imply an erosion in the quality of education. Average expenditure per student increased by 5% p.a. in real terms over the period. 3.12 In accordance with the priority assigned to development of the University of Singapore the share of total education recurrent expenditure devoted to the University, which increased slightly from 8.1% in 1967 to 8.6% in 1972/73, is expected to increase to about 15% in 1983. Allowing for enrollment and quality increases, total recurrent expenditure is expected to reach S$ 88 million in 1983, of which about 13% would be met from student fees and 85% from Government revenues. IV. THE PROJECT General Features 4.01 A master plan has been prepared with UNDP assistance for relocat- ing and expanding the University of Singapore on Kent Ridge. This master plan establishes a framework for the long-term development of the University, phases investment programs in its support and provides guidelines for the design of buildings. The proposed project would assist the second phase of the relocation of the University and would consist of the following items:  -8- (a) construction, furnishing and equipping of 1983 Number of Annual Places Output (i) Faculty of Science including the /1 Biological Sciences Center; 1,700 - 320 -2 (ii) Faculty of Arts and Social Sciences; 1,200 290 (iii) Faculty of Law; 550 110 (iv) Additional administrative and communal premises including central lecture theaters; and n.a. n.a. (v) Residential premises (a) Boarding places 300 n.a. (b) Staff apartments 6 n.a. units (b) professional services including the fee for coordinating campus plan-architectural design. /1 Includes about 400 student places specifically provided for six pre-clinical departments included in the Center. /2 Represents 300 scientists and 20 pharmacists. Prject Items 4.02 The Facuilty of Science, which now enrolls less than 600 students in eight departments, would absorb the School of Pharmacy as a department and double its enrollment to 1,300; annual output would reach about 320 including 20 pharmacists in the early 1980s. This output, together with an estimated annual output of 400 from Nanyang University, would approximate to forecast requirements (para 2.08). The Faculty of Science has a service function for the rest of the University as it conducts courses for students in humanities, engineering, architecture, medicine, dentistry and pharmacy. As a part of the Faculty, the Biological Sciences Center includes also the pre-clinical departments of the Faculties of Dentistry and Medicine; its facilities would be shared with the Faculties of Dentistry and Medicine. The present School of Pharmacy with 70 students and about 15 graduates a year is the smallest section in the University. It supplies not only pharmacists but also chemists for the new pharmaceutical and nutrition industry in Singapore. Its capacity would be increased by 40% to 100 and the output to 20 p.a.  - 9 - 4.03 In addition to the required lecture rooms and other teaching spaces, this item would include about US$1.2 million equivalent for equip- ment to modernize laboratory teaching and research (para 3.05). Emphasis would be placed on chemistry and physics in support of the developing petrochemical and electronics industries. 4.04 The Faculty of Arts and Social Sciences, which comprises twelve denartments, provides basic courses to other departments and trains its own students in fields such as mathematics, languages, area studies, and econo- mics and statistics. Enrollment in the Faculty (860 in 1972) is expected to increase by about 50% by 1983 in order to meet projected needs in teaching, government, commerce and industry. The proposed project would provide the lecture theaters, tutorial/seminar rooms, furniture and equip- ment (mainly audio-visual teaching aids) for about 1,200 students (about 17% of the total enrollment). 4.05 The Faculty of Law enrolls 400 and graduates 75 students annually. Curricula emphasize international, maritime, industrial and labor law and the professionals trained in the Faculty are much in demand in commerce and manufacturing. Demand is expected to increase as a result of the increase in the size otf the firms operating in Singapore. The project would support a modest expansion of the Faculty to 550 students with an annual output of about 110. 4.06 The supporting facilities would include common teaching and administrative premises, boarding places, recreational services and a multipurpose hall to be used for examinations and meetings. The number of lecture theaters, tutorial and seminar rooms provided for common use by all Faculties is based on optimum utilization by the whole university. Labora- tories and special rooms would be provided within the various faculties and schools. An additional 300 boarding places to the 900 provided under the first project would be included to allow most students an opportunity of living in the university for one year. Six apartments for supervisory staff would be provided as a part of the boarding facilities. Staff and Staff Development 4.07 The development plan for the university requires an increase in teaching staff from 420 to 585 by 1983 in order to maintain a student/staff ratio of 12:1. The staff attrition rate has been 10% p.a. during the past four years, the principal reason being the level of salaries compared with the private sector. The University has recently increased its salary scales and, to improve further its competitive position, it is reviewing its recruitment procedures and in-service training schemes. Australia, Japan, New Zealand, the United Kingdom and bilateral agencies such as the Ford Foundation are providing fellowships and experts to the University.  - 10 - Cost of the Project 4.08 The total cost of the project, based on reasonable schedules and standards of accommodation, is estimated at US$42 million. The breakdown by component items given in Annex 5 is summarized below: % of Singapore Dollars U.S. Dollars Total (millions) (millions) Project Local Foreign Total Local Foreign Total Cost Physical Facilities 1. Campus Plan - Architectural Design Coordination 0.06 0.26 0.32 0.03 0.11 0.14 0.3 2. Physical Facilities including construction, site development, furniture equipment and consultancy services: a) Fac. of Science 17.51 15.98 33.49 7.61 6.95 14.56 34.6 b) Fac. of Arts and Social Sciences 3.16 2.61 5.77 1.37 1.14 2.51 6.0 c) Fac. of Law 1.88 1.46 3.34 0.82 0.63 1.45 3.5 d) Central Lecture premises 1.02 0.84 1.86 0.44 0.37 0.81 1.9 e) Administrative and Communal premises 11.08 8.55 19.63 4.82 3.72 8.54 20.4 f) Residential premises 2.87 2.18 5.05 1.25 0.94 2.19 5.2 Subtotal 37.52 31.62 69.14 16.31 13.75 30.06 71.6 3. Contingencies: a) Physical 3.76 3.19 6.95 1.63 1.39 3.02 7.2 b) Price Increase 11.56 8.63 20.19 5.03 3.75 8.78 20.9 Subtotal 15.32 11.82 27.14 6.66 5.14 11.80 28.1 TOTAL 52.90 43.70 96.60 23.00 19.00 42.00 100.0  - 11 - 4.09 The estimated cost by various categories of expenditure is given below: % of Singapore Dollars U.S. Dollars Total % of (millions) (millions) Project Foreign Local Foreign Total Local Foreign Total Cost Exchange 1. Construction a) Buildings i) Academic & Communal 25.44 18.42 43.86 11.06 8.01 19.07 45.4 42 ii) Students' Hostels 1.84 1.33 3.17 0.80 0.58 1.38 3.3 42 iii) Staff Apartments 0.29 0.20 0.49 0.12 0.09 0.21 0.5 42 Subtotal, Buildings 27.57 19.95 47.52 11.98 8.68 20.66 49.2 42 b) Site Devel- opment 6.89 4.99 11.88 3.00 2.17 5.17 12.3 42 c) Professional Fees (Campus plan coordina- tion and for- eign and local eng. consult- ants) 1.44 0.58 2.02 0.63 0.25 0.88 2.1 28.1 Subtotal, Construc- tion 35.90 25.52 61.42 15.61 11.10 26.71 63.6 41.5 2. Furniture 1.09 1.09 2.18 0.47 0.47 0.94 2.2 50 3. Equipment 0.59 5.27 5.86 0.26 2.29 2.55 6.1 90 4. Contingencies a) Physical 3.76 3.19 6.95 1.63 1.39 3.02 7.2 45.9 b) Price Increase 11.56 8.63 20.19 5.03 3.75 8.78 20.9 42.7 Subtotal, Contin- gencies 15.32 11.82 27.14 6.66 5.14 11.80 28.1 43.5 TOTAL 52.90 43.70 96.60 23.00 19.00 42.00 100.0  - 12 - 4.10 Unit building costs, which average US$23.25 per sq ft for academic and communal facilities and US$18.30 for boarding facilities, are in line with the cost of recent construction of similar facilities in Singapore. Consultancy costs include provision for continuing guidance by a campus plan coordinator and specialist engineering services in support of architectural design which would be carried out by the University of Singapore Development Unit architects. 4.11 Furniture and equipment cost estimates are based on the loan request prepared by the University authorities as reviewed during appraisal. Detailed lists would be prepared during the building design stage and reviewed by the Bank before procurement. Cost estimates for furniture and equipment do not include import duties and taxes as educational materials are at present exempted from all duties and taxes. 4.12 The foreign exchange component of US$19 million equivalent, representing 45% of total project cost, has been calculated as follows: construction and site development, 42%; furniture, 50%; equipment, 90%; foreign consultancy services, 80%; and local consultancy services, 10%. 4.13 Construction costs, which had increased by about 1% per month during 1971-1972, rose about 50% in the first nine months of 1973 due to sharp increases in the cost of materials and labor. The rate of escalation has now fallen to about 2% per month and, while this rate is expected to slow down further by mid-1974, it seems unlikely to fall below 8% per annum in the foreseeable future. The contingency allowance included in the project cost estimate therefore provides for price increases which, (a) in the case of construction costs and related professional fees, cover an initial increase of about 2% per month until mid-1974 and thereafter increases of 7-1/2% p.a. for foreign exchange costs and 8-1/2% for local costs and (b), in the case of equipment and furniture, cover increases of 7-1/2% p.a. for foreign exchange costs and 8-1/2% for local costs. The contingency allowance also includes a factor for unforeseen events, equal to 10% of estimated costs for all project elements. The contingency allowance, 28% of the total project cost and 39% of the basic cost before adding contin- gencies, while comparatively high in comparison with previous figures, is considered reasonable under present conditions. Annex 6 indicates the computation.  - 13 - 4.14 Estimated costs per student place, excluding contingency allowances and professional fees, are as follows: Costs per Student Place or Living Unit in US$ Sq ft per Site Type of Student Place Develop- Build- Furni- Equip- Facilities or Living Unit ment ings ture ment Total Academic, Admin. and Communal 225 1,300 5,230 250 720 7,500 Students' Hostels 215 970 3,885 240 105 5,200 Staff Apartments 1,850 8,500 34,000 - - 42,500 These unit costs are not comparable with facilities in other Bank Group- financed education projects due to differences in levels, lengths, complex- ity and specialization of courses. In addition, space and equipment require- ments for the pre-clinical training included in the Faculty of Science are particularly high. Unit costs for the first education project in Singapore were estimated at US$3,800 for academic and communal facilities and $2,600 for boarding facilities at 1971 prices and exchange rates. The higher unit costs in the second project are due to cost escalation (para 2.04), the change in the exchange rates (+ 22.5%), the greater proportion of facilities requiring higher unit building and equipment costs and the higher proportion of supporting facilities required for the complete relocation of the University. 4.15 Financial Plan. The proposed Bank Loan would finance the total estimated foreign exchange component of US$19 million and also the local currency portion of the ex-factory cost of furniture and equipment which may be procured locally after international competitive bidding which amount is estimated at US$0.5 million equivalent. The balance of the estimated local currency cost of the project (US$22.5 million equivalent) can be met by the Government without curtailing expenditure for other activities and without overburdening the education budget. 4.16 The recurrent cost of the Faculties included in the second project is estimated to increase from S$ 6.3 million in 1973 to about S$ 24.3 million in 1983. The additional S$ 18.0 million would amount to about 20% of the projected university budget for 1982/83 and to about 3.1% of all public recurrent education expenditures in the same year.  - 14 - V. IMPLEMENTATION AND DISBURSEMENT Implementation 5.01 Execution of the Project. In view of the complexities in site development and the relative sophistication of the facilities required, the proposed project would take about six years to complete including defects liability periods following construction (Chart 5). 5.02 Administration. The University of Singapore Development Unit (USDU) has been competently organizing and controlling the implementation of the first project. During negotiations, the Government provided assurances that the USDU would be maintained for the full period of second project implementation with an establishment commensurate with its efficient operation, including a project director and a project architect with quali- fications and experience acceptable to the Government and the Bank. 5.03 The unit would be responsible for the financial and administrative control of the project and its proper execution, including: (a) liaison and coordination with the campus planner whose consultancy contract would be extended as necessary under the provisions of the project; (b) the design of all project buildings in accordance with the campus master plan and the preparation of construction drawings and documents; (c) the engagement, briefing and coordination of engineering consultants; (d) the preparation of master lists of furniture and equipment; (e) the organization of inter- national competitive bidding for civil works, furniture and equipment; (f) the supervision of construction and procurement; (g) coordination with Ministries and other Agencies concerned with the project; (h) liaison with the Bank; and (i) the preparation of withdrawal applications. 5.04 Project Design Services. The master plan for the physical develop- ment of the university provides a framework for the related disposition of faculties, schools and departments on the new site and flexible archi- tectiural guidelines for the design of buildings. With guidance from the campus planner, USDU architects would design all premises but would need consultant services for structural, electrical and specialist engineering design. 5.05 Construction. Construction contracts would be awarded on the basis of international competitive bidding by pre-qualified contractors in ac- cordance with Bank Guidelines. It is expected that contracts will be awarded to local firms as the country has a competitive construction industry. 5.06 Procurement of Furniture and Equipment. Contracts for the supply of furniture and equipment would be awarded on the basis of international competitive bidding in accordance with Bank Guidelines. Preferred domestic manufacturers would be accorded a preferential margin of 15% of the c.i.f. price of competing imports or the rate of customs duty applicable, whichever is the lower. It is expected that most furniture contracts would  - 15 - be awarded to local manufacturers and equipment contracts to foreign suppliers. Singapore does not participate in any regional arrangement which gives preferential import duties to certain foreign suppliers. 5.07 Maintenance. The allocation for maintenance of University build- ings has been adequate in recent years, amounting to 6%-10% of the University budget. Project Monitoring Indicators 5.08 It was agreed during negotiations that, during the project implementation period and for five years thereafter, the Project Unit would collect each year and furnish to the Bank the following indicators to serve for project monitoring and as an evaluation mechanism: (a) the enrollment figure at the beginning of each academic year by Faculties and Schools, to serve as a quantitative indicator; (b) th2 number of graduates in each Faculty or School in comparison to the original intake, to serve as an internal efficiency indicator; (c) the number of graduates employed from each Faculty or School within six months after graduation, to serve as an external productivity indicator; and (d) the number of applicants (first choice only) against the number of intake in each Faculty or School to show the trends of demand for places in that Faculty or School. Disbursement 5.09 The proposed loan of US$19.5 million would finance the estimated foreign exchange component (US$19 million) of the total project cost and the local currency portion of the ex-factory cost of furniture and equipment which may be procured locally after international competitive bidding (para 5.06). It would be disbursed to meet: (a) 100% of the c.i.f. cost of directly imported furniture and equipment; (b) 85% of the total expenditure on imported but locally procured furniture and equipment; (c) 95% of total ex-factory costs of locally manufactured furniture and equipment; (d) 100% of the foreign exchange costs of foreign campus planning and architectural consultancy services; and  - 16 - (e) 42% of the total cost of construction and site develop- ment and of local engineering consultancy services, this percentage representing the average foreign exchange component. The percentage of (e) above would be adjusted as necessary to spread dis- bursement over the estimated project implementation period of about six- and-a-half years (Chart 5). The schedule of estimated disbursement is given in Annex 7. VI. BENEFITS AND JUSTIFICATION 6.01 The University of Singapore is the country's principal source of high level manpower. The proposed second loan would further assist its relocation, consolidation and expansion which was started with Bank support under Loan 802-SI. The relocation is necessary to overcome existing physical constraints on expansion. The consolidation is required to improve educational quality, management and economy. The expansion is needed to supply the high level manpower that is important to the success of Singapore's development strategy. 6.02 The second phase would contribute to increasing the supply of professional manpower in needed areas such as economics, law, and science, including science teaching. Specifically, the second project would meet the following manpower requirements in the early 1980s: (a) 40% of the scientists needed by government, commerce and industry (para 2.08); and (b) 40% of the graduate teachers needed to improve the quality of secondary education (paras 2.08 and 3.02). 6.03 Equally important, the second project would help build a stronger institution by integrating the previously dispersed Faculties and School of the University. Academic integration would broaden the scope and improve the quality of instruction. Physical integration would facilitate adminis- trative efficiency and would promote economies in the use of facilities and staff. In particular, if the University had to continue to operate on four separate campuses, there would be a need for 20%-30% more common facilities than provided on the integrated site. 6.04 In short, the proposed second project is justified on the basis of its contribution to satisfying needs for professional manpower, its contribution to institution building and its contribution to economies of operation.  - 17 - VII. AGREEMENTS REACHED AND RECOMMENDATION 7.01 During negotiations, agreement was reached on the following principal points: (a) the provision to the Bank of any higher educational development plan proposed within the next five years (para 3.09); and (b) data on the enrollment of students and the employment of graduates (para 5.08). 7.02 The proposed project constitutes a suitable basis for a Bank loan of US$19.5 million equivalent to the Republic of Singapore for a term of 20 years including a six-year grace period.   APPENDIX Page 1 REPUBLIC OF SINGAPORE APPRAISAL OF A SECOND EDUCATION PROJECT (The University of Singapore) Education and Training The System 1. Education and training in Singapore (Charts 1 and 2) has recently undergone major changes to meet manpower needs in commerce and industry and support the expansion of social services. As noted in paras. 3.01 and 3.02 of the main report, curricula and teaching lmethods have been updated at various levels of education. Enrollment in technical schools has expanded very rapidly and out-of-school programs have been encouraged and coordinated. In addition, the four language streams (English, Chinese, Malay and Tamil) are being e:li.;nated in order to fully integrate the education system. Administration and Planning 2. Education planning and administration are divided among several ministries. The Ministry of Education (Chart 1) is responsible for adminis- tration and formulation of education policy. The Ministry of Science and Technology administers the Singapore Polytechnic as well as the University of Singapore. The Ministry of Culture coordinates the Government's ETV programs and the Ministry of Law and National Development is in charge of an agricultural training scheme. The supervision of schools is carried out mainly by an inspectorate under the direction of the Chief Inspector of Schools of the Ministry of Education. A research and planning unit in the same Ministry assists qualitative improvements by conducting educational research and updating continuously curricula, evaluation and promotion procedures. 3. The structure of education (Chart 2) consists of six years of primary education betwqeen the ages of 6 and 11 and four years of secondary education between 12 and 15 which may be followed by either 2 years of pre- university and then three or more years of university education or three years in technical institutions. Enrollment ratios fall sharply from about 63% at the secondary level to about 13% in the pre-university classes (Chart 3) and some 85% of the age group at 16 and 17 join the labor force. For this group, the technical content in the secondary school curriculum for boys (carried out in centralized workshops) and the commercial content for girls play an important role in preparing students for employment in industry and commerce. 4. Primary education is free but not compulsory. The enrollment ratio increased from 90% in 1970 to 107% in 1972 (Chart 3) due to repeaters in the last grade of primary schools. As a result, the progression rate from primary to secondary schools dropped from 77% in 1970 to less than 60%  APPENDIX Page 2 in 1972. Those who do not enter secondary school join the labor force after an intermediate period in vocational institutes. The number of qualified teachers in primary schools is increasing and reached about 85% of the 10,800 teachers in 1972. Class sizes will be reduced from 38 in 1972 to 35 by 1978 but the ratio of 1.27 teachers per class will be maintained. The quality of primary education is good. The curriculum is also suitable for those who proceed to vocational institutes and then join the labor force instead of secondary education. 5. Secondary education enrollment at about 180,000 in 1973 (Annex 2) will slightly decrease to 176,000 by 1983 to maintain approximately the present enrollment ratio. Of the 7,000 teachers, only about 30% are university graduates. The Government's policy is to achieve 100% university graduate teachers for grades 9-12 and to reduce class size from about 38 to 30 by 1983. The number of teachers per class will remain at 1.6. It is estimated that more than 5,000 university graduates will have to be recruited as teachers before 1983 (Annex 3). 6. Enrollment in pre-university classes is estimated at about 15,000 in 1973 (Annex 2). The curriculum, previously designed for university preparation only, is being modified by granting more elective subjects to benefit those who terminate at this level. These classes are being removed from secondary schools where they are now located and concentrated in junior colleges to improve the utilization of staff and facilities. Quantitatively, the enrollment ratio of about 13% will be slightly increased to provide an adequate number of qualified candidates for the two universities. 7. Training of primary school teachers at the level of grades 11 and 12 has been replaced by courses at post-secondary level (grades 13 and 14) to improve quality. This measure is feasible because primary enrollment is expected to decrease from 350,000 at present to 300,000 in 1978 and then slightly increase to 320,000 in 1983; therefore the number of primary school teachers required for the next ten years (about 2,000) is small. The courses are conducted in the newly established Institute of Education which runs a two-year full-time post-HSC 1/ course for primary and lower secondary (grades 7 and 8) school teachers, and a one-year post-graduate course for degree holders to teach at grade 9 and above. Technical teacher training is carried out in the Singapore Technical Institute. 8. Apart from the two universities and the Institute of Education (para 7), there are three technical institutions at the post-secondary level: the Singapore Polytechnic is mainly responsible for training senior technicians, the Ngee Ann Technical College, for both senior and junior technicians; and the Singapore Technical Institute, for junior technicians and advanced craftsmen. The three institutions will expand 1/ HSC - Higher School Certificate, a certificate awarded to those successful at an examination at the end of the pre-university courses or grade 12.  APPENDIX Page 3 from 7,600 students in 1973 to 11,500 by 1983 and their annual output of about 4,000 technicians should meet the need of sub-professionals in the eighties. 9. The Adult Education Board and the Industrial Training Board (established in April, 1973) are responsible for non-formal education and skill training. Apprenticeship schemes are developing slowly. Development of Higher Education 10. The development of university education in Singapore started in the fifties and accelerated in the sixties, due partly to the change from a colony to a sovereign state with increasing needs for manpower at graduate level and partly to new demands arising from structural changes in the economy. Total enrollment in the two universities in Singapore has reached 7,800 in 1973 and is planned at 11,500 in 1983 with an annual growth rate of some 4%. This modest rate of expansion is a result, not of financial constraints, but of prudent government policy based on cautious manpower projections. Within the planned total increase in capacity of 3,700 in 10 years, engineering accounts for the largest share, about 25%. 11. Higlier education institutions in Singapore are selective in their admission procedures. University candidates for undergraduate programs must hold a Higher School Certificate (IISC) and pass an entrance examination. This applies also for candidates coming from neighboring countries. For higher degrees, IIaster's candidates normally hold a Bachelor's degree and demonstrate ability to research; Ph.D candidates have either a Master's degreq (Arts or Science) or a professional degree in medicine or dentistry. Diploma level institutions accept students who, as a minimum, have passed the School Certificate Examination (SCE) 1/. 12. Responsibility for higher education is shared between two ministries. The Ministry of Education is responsible for Nanyang University, teacher training and two technical colleges; the Ministry of Science and Technology administers the University of Singapore and the Polytechnic. Although there is no national coordinating agency for higher education, the various minis- tries are relating the expansion of higher education to manpower requirements. 13. Nanyang University first recruited students in 1956 and was established by Government Act in 1959. Enrollment has now reached 2,600 in three faculties, namely, arts, science and commerce. Its ten-year development plan has not yet been decided upon by the University Council. However, total enrollment in 1983 as projected by the Ministry of Education is 4,000. 1/ An examination given at the end of Grade 10.  APPENDIX Page 4 14. The University of Singapore (Chart 4), established in 1962, offers undergraduate programs, graduate studies and diploma courses at seven faculties (Arts and Social Sciences, Law, Science, Medicine, Dentistry, Engineering and Architecture), four schools (Pharmacy, Accountancy and Business Administration, Post-Graduate Medical Studies and Post-Graduate Dental Studies) and three centers (Biological Sciences, Economic Research and Language). The Institute of Southeast Asian Studies, the Unesco Regional Institute for Higher Education and Development and the Unesco Regional Marine Biology Center are also located within the University complex. Enrollment reached 5,200 in 1973. Present Government policy is to limit further quantitative expansion except in engineering and science for which a faster growth is needed to meet the requirements of industry and the teaching force. Total enrollment is expected to reach 7,500 in 1983 (Annex 2) including about 300 graduate students. The 420 full-time teaching staff which gives a teacher-student ratio of 1:12 is estimated to increase to 580 by 1983 to maintain the present teacher-student ratio. 15. The Faculty of Science has eight departments (Anatomy 1/, Bio- chemistry 1/, Botany, Chemistry, Mathematics 2/, Physics, Physiology 1/ and Zoology) and offers eight programs, namely, Biology, Applied Biology, Pure Mathematics, Applied Mathematics, Chemistry, Applied Chemistry, Physics and Applied Physics. The curricula are strongly oriented to industrial needs. Servicing other Faculties/Schools is a major function of this Faculty, mainly through its Biological Sciences Center for the Faculties of Medicine and Dentistry and School of Pharmacy. The quality of the courses would be improved with additional equipment. All staff are well qualified. 16. The Faculty of Medicine has thirteen pre-clinical and clinical departments, namely, Anatomy, Biochemistry, Physiology, Bacteriology, Parasitology, Pharmacology, Pathology, Social Medicine and Public Health, Medicine, Paediatrics, Orthopaedic Surgery, Surgery and Obstetrics and Gynaecology. The duration of the course is five years of which the first two are for pre-clinical courses and the latter three for clinical subjects. A low teacher-student ratio of 1 to 6 will be maintained due to the specialized nature of the courses. Staff shortages for Surgery courses are being met by part-time lecturers. 17. There are three specialized departments in the Faculty of Dentistry, namely, Operative Dentistry, Prosthetic Dentistry and Oral Surgery. Much of the dental equipment is obsolete and requires replacement. The teacher-student ratio of 1:9 will be maintained and is reasonable for dental courses. 1/ Common with the Faculty of Medicine. 2/ Common with the Faculty of Arts and Social Sciences. However the Applied Mathematics course offered by the Science Faculty is not in common with the Statistics course offered by the Arts and Social Sciences Faculty.  APPENDIX Page 5 18. The School of Pharmacy, the smallest unit in the University, would become a department in the Faculty of Science with a planned enrollment of 100 by 1983. The course offered meets the needs of retail pharmacy, hospital pharmacy and the pharmaceutical industry. Teacher-student ratio will be 1:10 by 1983, slightly below the average of 1:12 for the University due to the nature of the course. 19. The Faculty of Arts and Social Sciences has twelve departments (Chinese Studies, Economics and Statistics, English Language and Literature, Geography, History, Malay Studies, Mathematics, Music, Philosophy, Political Science, Social Work and Sociology) and offers fourteen programs and servicing functions to other Faculties. The Economics and Statistics Department is the largest. This Faculty uses the facilities of the Language Center and works closely with the Economic Research Center. Staff are well qualified. 20. The Faculty of Law has one department, the Law Department. Emphasis is on such subjects as International Business Transactions, Commercial Transactions, Conveyancing, Public International Law, Labour Law, Shipping Law Banking and Negotiable Instruments and Industrial Relations. Staff shortages force the Faculty to depend heavily on part-time staff. However, this arrangement is satisfactory since courses are taught by practitioners who are up-to-date on realistic issues. 21. Appraisal Report No. PE-38a contains information on the Faculties/Schools included in the first project. Education Finance 22. The Government finances not only public education but also the "aided schools" 1/ in meeting virtually all recurrent expenditures and part of capital expenditure. During 1967-72, the public education expenditure increased at 8.3% annually as compared with 21.5% annual increase in total government expenditures; consequently, the share of education in the government budget decreased from 23% to 11.5%. During the same period, public education expenditure as a percentage of GDP fell from 4.2% to 3.1%, mainly due to the faster growth of GDP (13.9% p.a.), in comparison with growth of the education sector. These declining percentages, however, did not imply deterioration in the quality of education. 23. The share of secondary and higher education in recurrent expenditure increased during 1967-72 as expansion of primary enrollment fell. This trend will accelerate as primary enrollment further declines due to the family planning program (Annex 2). 24. In 1972, the Government began to revise the terms and conditions of employment in the Education Service to bring teachers' remuneration 1/ Mission and private schools receiving government financial assistance for teachers' salaries are "aided schools".  APPENDIX Page 6 closer to salaries in the private sector. Following this revision, large scale upgrading and promotion exercises for principals and teachers were launched and are now nearing completion. Consequently, teachers' salaries in Singapore will be near the highest in Asia. 25. The budgets of the two universities are both controlled by the Ministry of Finance. The Nanyang budget, after its Council's approval, is examined by the Ministry of Education while that of the University of Singapore is reviewed by the Ministry of Science and Technology. Governed by an economy-minded university development policy, high priority usually is given to production-oriented departments and the budget presented by each faculty or school normally is thoroughly scrutinized before it reaches the Ministry of Finance. 26. The Government approved SS 33.2 million recurrent expenditures for the two universities for FY 1973/74, representing 12.8% of the total recurrent education expenditure and a 16% increase from the previous year. About 80% of the total recurrent expenditures for the two universities (S$ 27 million) are appropriated to the University of Singapore. Approxi- mately 85% of the recurrent expenditure for Nanyang University is provided by the Government. 27. Fees, as a source of university revenue, are relatively small, and contribute only 13% to the university budget. Each student pays S$ 500-600 tuition fee yearly, depending on fields of study. The University proposes no significant increase in tuition fees in the foreseeable future. Recurrent cost per student averages S$ 4,500.  44- 4. - . . - . 44 .44444 444444 .444444.444444.444 4 4 .444.4.4 . . .4 .4.4 .4 -4- 4- - - - 8.8~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~~I 44 8~~~~~~~~~~~ Z-- . ... ....~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~8 4 44 4 4 4 4 0 4 44 4 4 44  w e *  SINGAPORE tnrol3.mntby Level of IEducati-on 1965-1S?33 Actual Projected Ti Inceae Iincreasa Grades 9 197 19eT 1965 - 73 1973 - 83 X ~~~~~e7 PRIMARY (TOTAL) 1-6 362,672 366,881 349,000 298,600 317,800 -3.8 -8.9 SECONDARY (TOTAL) (115,929) (151,558) (179,000)(e)(202,200) (176,000) (54.4) (-1.y) (a) General 7-10 96,112 128,541 158,000 174,800 148.,700 57.3 -5.9 Technical c)7-10 4,359 4,373(b) (c) Vocational post- 8,709 8,417 6,ooo 6,500 7,000 -31.1 16 7 primary Pre-University I1-12 6,749 10,227 15,000 _20,900 20,300 122 35.3 POST-SECONDARY (TOTAL) (10,092) (11,797) (15,940) (20,700) (23,900) (57.9) (49.9) University of Singapore 13+ 2,870 4,559 5,226 6,300 7,500 82.1 39.7 Nanyang University 13+ 2 126 2 040 2,596 3 200 4 000 22.1 54.1 SUB-TOTAL lT1 Polytechnic 11-13 2,335 3,295 5,764 7,500 8,000 147 38.8 Ngee Ann Technical College 11-13 893 529 1,185 2,000 2,50o 32.7 111 Singapore Technical Institute 11-12 - 152 622 800 1 000 n.a. 60.1 SUB-TOTAL 3,5 3 7 ,571 10,3000 (d) Teachers Training College 13+ 1,868 1,222 547 900 l,lQO0 -70.7 101 TOTAL (ALL LEvELS) 488,693 530,236 543,940 521,500 517,900 11.3 -4.8 (a) Includes Sec. I & II comprehensive, excludes Pre-University (b) Does not include Tech. I & II (c) Vocational Schools/Vocational Institutes/Industrial Training Centers (d) Full Time equivalent (3 part tirme r- full time student), (e) Estimated Source: Ministry of Education, Singapore June, 1973   ANNEX 3 SINGAPORE Graduate Teacher Requirements 1973-1983 1973 1983 Total Secondary Enrollment 173,000 169,0ao Secondary I-II (grades 7-8) 87,000 77,000 Secondary III-IV and pre-univ. courses (grades 9-12) 86,000 92,000 Class size 38 30 Teachers per class 1.6 1.6 Graduate teachers required for Secondary I-II (10% of teachers are graduates) 370 410 Secondary III-IV and pre-univ. courses 3,600 4,880 (all are graduates) TOTAL 3,970 5,290 Stock of graduate teachers in 1973 2,100 Present deficit 1,870 Additional teachers needed by 1983 for smaller class size 1,320 for attrition at 5% p.a.l/ for 10 years on the average graduate teaching force of 3,700 1,850 TOTAL 1/ The high attrition rate is due to the comparatively more attractive re- muneration in commerce and industry. Source: Ministry of Education, Singapore June, 1973   SINGAPORE Public Expenditure on Education by Purpose 1967-1973 (In Millions of Singapore Dollars) Pinancial Year 1967 1968 1969170 1970/71 1971172 1972173 Analvsis of Current Exuasditure (15 months) Percentage Distribution Annuai Growth Purpose Current Capital Current Capital Current Capital Ourrent Capital Current Capital Current Capital 1967 1972/73 Rate (lj 67-?2/73 1. Primary Education 68 4 72 1 93 1 77 80 - 92 1 50,4 43.8 6.2 11. Secondary Education (Total) 42 15 48 3 62 7 55 7 58 S 69 6 31.1 32.8 10.4 Comprised of:- (a) General (38) (14) (45) (3) (49) (2) (41) (1) (45) (3) (50) (4) (28.1) (23.8) (5.7) (b) Technical/Vocationsl (4) (1) (3) (-) (13) (5) (14) (6) (13) (5) (19) (2) (3.0) (9.0) (36.5) II1. Post-Secondary (Total) 7 1 7 4 13 10 11 - 16 3 17 8 5.2 8.1 19.4 Comprised of:- (a) General (4) (_) (4) (1) (6) (-) (4) (-) (5) (3) (6) (4) (3.0) (2.9) (8.5) (b) Technical (1) (-) (1) (3) (4) (9) (4) (-) (8) (-) (8) (4) (0.7) (3.8) (52.0) (c) Teacher Training (2) (1) (2) (-) (3) (1) (3) (-) (3) (-) (3) (-) (1.5) (1.4) (8.5) IV. University (Total) 12 - 13 1 19 - 19 3 21 2 23 3 8.8 11.0 13.9 of which:- (a) Nanyang University (1) (-) (2) (1) (4) (-) (4) (-) (4) (-) (5) (1) (0.7) (2.4) (38.0) (b) University of Singapore (11) (-) (11) (-) (15) (.3 (15) (3) (17) (2) (18) (2) (8.1) (8.6) (10.4) V. Adult Education 2 - 2 - 1 - 1 - 1 - 2 - 1.5 1.0 - VI. Administration and Otherl/ 4 1 5 2 11 1 11 1 11 - 7 2 3.0 3.3 11.9 Sub-Total 135 21 147 11 199 19 174 11 187 13 210 20 100.0 100.0 9.2 Total Public Expenditure on Ed. 156 158 218 185 200 230 1/ Includes Bursaries and Scholarships, ETV, Extra Curricular Activities and Administration. Source: Ministry of Finance June, 1973   S I N G A P O R E UNIVERSITY OF SINCAPORE - SECOND PHASE RELOCATION AND DEVELOPMENT Summary of Estimated Costs (in '000 of Singapore Dollars) Cost of Consultants' Services Total Costs Costs of Total. Site Dev. Building Furniture Equipment Physical Foreign Local Sing. $ US$* Project Item Costs Costs Costs Costs Facilities Consultants Consultants ('OO0) ('OO0) 1. Campus Plan/Architectural Design Coordination . _ _ _ _ 310 _ 310 135 2. Academic & Communal Facilities a) Faculty of Science (incl. pre-clinical departments and School of Pharmacy) 5,555 22,225 625 4,285 32,690 103 697 33,490 14,561 b) Faculty of Arts and Socisl Science 995 3,970 245 420 5,630 18 125 5,773 2,510 c) Faculty of Law 600 2,413 115 140 3,268 10 62 3,340 1,452 d) Central Lecture Premises 325 1,300 55 140 1,820 6 39 1,865 811 e) Admin. and Communal Premises 3,490 13,957 940 730 19.117 61 452 19,630 8,535 Sub-Total: Academic and Communal 10,965 43,865 1,980 5,715 62,525 203 1,375 64,103 27,871 3. Students4 Hostels 793 3,172 195 145 4,305 15 100 4,420 1,922 4. Staff Apartments 122 488 - - 610 2 15 627 272 PROJECT TOTAL, S$('O00) 11,880 47,525 2,175 5,860 67,440 530 1,490 69,460 - EXCLUDING CONTINGENCIES US$(W000)* 5,165 20,663 946 2,548 29,322 230 648 - 30,200 Foreign Exchange) % ) 42% 4 2% 507e 907. 46.4% 807 10% 45.97 45.9% CONTINGENCIES % 40.7%. 40. 7% 27.22% 26.2% 39% 40.33% 41. 27 39 7% 39% S$( 000) 4,839 19,354 590 1,530 26,313 213 614 27,140 - US$( 000)* 2,104 8,415 256 665 11,440 93 267 - 11,800 Foreign Exchange % 41.17, 41.1% 47.7% 89.1% 447 79.67, 9.87% 43. 57 43.55% PROJECT TOTAL, S$('000) 16,719 66,879 2,765 7,390 93,453 743 2,104 96,600 - INCLUDING CONTINGENCIES US$('000)* 7,269 29,078 1,202 3,213 40,762 323 915 - 42,000 FOREIGN EXCHANGE COMPONENT % 41. 7% 41. 77 49.5% 89.8% 45.7% 79.9% 9.9% - 45.2% US$(O000)* 3,034 12,136 595 2,886 18,651 258 91 - 19,000- > * Currency equivalent: US$ 1.00 - Sing. $ 2,30. DHLewis:jp  8IUGA1oEI SlVU1T or S4;rAin "cs - OXCOID PUASE ELOCATIOO AM) D EnLR Wr Cootinojc?y Alaots (totho.,oowdo of U8 0.51...) FOREIGN COOULTAIT LOCAL (7.00ULTASIS SITS DOmIINT C0l8T11C090U 7 NUTE rn(or RoOtflulCtio.) (C ..troctloO) t 0 T A L 1h al Vo.o1o Total Loaal Foreign Total Local Foreign Total Local oetlg Tlotal ot a. For.is. Total Lncal Fo-L8n Total ot.c! Fro.lgt Tot.l TOTAL FOOJC1 BCTST rXCLtLt n esT00V4CtLS 2,995.7 2.169.3 5,165.0 11,984.5 B,678.5 20,6b3.0 473.0 473.0 946.0 254.8 2,293.2 2,548.0 46.0 164.0 230.o 583.2 64,8 6U4.0 16,357.2 13,042.8 30,200.0 1 of total H1 47, 10L0 58g 4*n 1005 507. 050 50 102 902 1002 207 807. IOOt 901 I0 l05 54. 17 45.98 5005 CO513XCIE0zs (a) AllmOCm... for 0rob ble Fri.. letr.ases (1) % 31.37.i' 302t 30.75% 31.3%' 3*7Y/ 50.7S% 153%AI 167./ m 18.51'/ IU/Al 16.35 31.3.1/ 305!' 30.3Z 31.321/ 30.2/ 31.2X 30D.g7 37.15 29.1t (ti) Anout 939.7 647.8 1.547s5 3.759.0 2,589.7 6,348.7 A6.7 74.7 I1b.4 46.7 363.5 410.2 14.4 55.6 70.0 162.5 19.7 201.2 5,029.0 3,751.0 8,780 0 (b) Allnq,ne for nftor**... Factor. (t) 1 l0 10x 10ax lL 107 IOX 10% 10% 102 105 ta 107. 107. IOt 105 105. 10 0 102 L% 105 (i1) Amoout 799.6 216.9 516.5 1.1885 867.8 2,066.3 47.3 67.3 94.6 25.5 229.3 254.8 4.6 18.4 23.0 58.3 6.5 64.8 1.633.6 1,386.2 3,020.0 (tS Total Coot iqoaty All-mteo (1) 1 41.31 40t *0.753 61.35 607. 40.75% 28.S2 267 27.21. 28.57. 26. 26.27 41.3X 40 40.32 41.37. 40?. 41.2 40.85 37.1X 39.12 (it) A nt I.239.3 64.7 2,106.0 4,957.5 3,457.5 8.415.0 134.0 122.0 256.0 72.2 592.8 665.0 19.0 74.0 93.0 240.8 26.2 267.0 6,662.8 5.137.2 11,800.0 7 ofl 0.1 5s8.93 41.17. IOD2 s8.91 *1.12 100 S2.3t 4.7. 5001 10.97 89.17. I00% 20.4% 79.67. 1007 90.2X 9.87. 100 58.52 43.il. 10m TOtAL MU3M COST INCLS.I 0 COTI5uJ IC08S 4,23S.0 3,034.0 7,269.0 16.942.0 12,136.0 29,078.0 607.0 s95.0 1,202.0 327.0 2,886.0 3,213.0 65.0 256.0 123.0 824.0 91.0 915.0 23,000.0 19,000.0 42,000o. lof Total 38.3 41.75% 1002 58.31 41.7.n 100T 80.57 49.57. 10 10.27. $9.85 300 20.12 79.97. 1001 90.17. 9.97. loot 64.8n 45.n7 1002 o 3/ CprLStos (a) 2 per month tt1 idd-1974i; *A (b5 8.51 Per aUoC tho..efter. / COMPrialog (a) 2% Per Month until "ud-1974; Nd (b) .7.S2 po aoonn thoc*aftr. 31 8.5n per an,%. 41 7.52, pr oovo.  Annex 7 S I N O A P O R E UNIVERSM OF SING1APOR3 - SECOND PHASE ELOCATION AND DtVELOPMEWIr ORECAST OF DISBURSEMENT DISBURSEMENT lNDISBURSED QUARTERLY CUMULATIVE BALANCES Impleiment7tion { U$__U$_ Qaarter- l000 US$ 1 S S 1~ ~~~ _ _ 19,5oo 100 FIRST 2 60 o, 60 0.3 19,h40. 99.7 YEAR 3 110 o.f 170 0.9 19,330 99.1 4 360 1.8 530 2.7 18,970 97 3 1 550 2.8 1,080 5.5 18,420 94.5 2 750 3.9 1,830 9.4 17,670 90.6 SECOND rEAR 3 910 4.7 2,740 14.1 16,760 85.9 41 1,160 5.9 3,900 20.0 15,600 80.0 1 1,200 6.1 5,100 26.1 14,400 73.9 THIRD ? 1,205 6.2 6,305 32.3 13,195 67.7 YEAR 3 1,320 h.8 7,625 39.1 11,875 60.o 4 1,385 7.1 9,010 46.2 10,490 53.8 1 1,700 8.7 10,710 54.9 8,790 45.1 2 1,685 8.7 12,395 63.6 7,105 36.4 YKkR 3 1,620 8.3 14,015 71.9 5,L485 28.1 4 1,240 6.3 15,255 78.2 4,?45 21.8 1 995 5.1 16,250 83.3 3,250 16.7 FIFTH 2 970 5.0 17,220 88.3 ?,280 11.7 YEAR 3 800 4.1 18,020 92.14 1,480 7.6 4 735 3.8 18,755 96.? 745 3.8 1 28O 1.14 19,035 97.6 465 2..4 SIXTH 2 190 1.0 19,225 98.6 275 1.4 YEAR 3 115 0.6 19,340 99.? 160 0.8 _4 80 0.14 19,420 99.6 80 0.4 SEV74 1 80 o.14 19,500o 1i - YEA?. 2 TOTAL 19,500 100% . _ _ g Fron estimated date of loan effectiveness. DWLewis sjp   ANNEX 8 Page 1 REPUBLIC OF SINGAPORE Second Education Project Loan and Project Summary Borrower: The Republic of Singapore Amount: A loan of US$ 19.5 million equivalent. The proposed loan would finance 46.1$ of the total c08t of the seoond education project. Terms and Conditions: The loan would be for a term of 20 years including a six year grace period. The interest rate would be at 73% per annum. Project: The project would provide for the second phase development of the University of Singapore: a) construction, furnishing and equipping of: (i) Faculty of Science including the Biological Science Center; (ii) Faculty of Arts and Social Sciences; (iii) Faculty of Law; (iv) Additional administrative and communal premises, including central lecture theaters; (v) Residential premises (300 boarding places, 6 staff apartments); and b) professional services including the fee for coordinating campus plan with architectural design.  ANNEX 8 Page 2 'r,timatpi Project Cost, US$(million) 1. Faculty of Science 14.56 2. Faculty of Arts and Social. Sciences 2.51 3. Faculty of Law 1.45 14. AdrininLtrative and comunal premises (including central lecture premises) 9.35 5. Residential promises 2.19 A. Carpus Plan-Architectural Design Coordination 0.14 7. Contingencies Unforeseen events 3.02 Price increase 8.78 Total Project Cost 42.00 Category of Expenditure: 1. Construction including site development 25.83 2. Furniture 0.94 3. Equipment 2.55 1l. Professional- services o.88 5. Contingencies Unforeseen events 3.02 Price increases 8.78 Total Project Cost 42.o0 Financing: Bank 19.50 %vrernxn ent 22.50 Total Project Cost 42.00  ANN3EX 8 Page 3 Procurement Arrangements: Construction, furniture and equipment would be procured in accordance with the Bank's guidelines. International comoetitive bidding by pre-qua7ified contractors for construc- tion contracts. International competitive bidding for furniture and equipment. A preference margin of 15% over the c.i.f. price of competing imports or the applicable custom duty whichever is the lower would be applied in the comparison of bids. -Estimated US$(mil lion) Disbursement FY7O FY75 FY76 FY77 YY75 FY79 FY80 Total Yearly - 1.08 4.02 5.61 5.54 2.78 0.47 19.5o Cumulative - 1.08 5.10 10.71 16.25 19.03 19.50   CHART 1 SINGAPORE MINISTRY OF EDUCATION - ADMINISTRATIVE STRUCTURE 1973 Minister for Education Minister of State Parliamentary Secretary Permanent Secretary/Administration | Permanent Secretary/Director of Education Deputy Secretary Deputy Directors Finance & Development Dpt ietr Principal Deputy Secretary Deputy Secretary A Accountant (Establishment) (General Administration) FUNCTIONS FUNCTIONS I I Finance & Accounts Educational Legislation Curricula & Syllabuses School Inspection Planning & Development Publicity & Liaison Examinations Special Education Establishment Extracurricular Activities Statistics Bursaries & Scholarships Educational Television Teaching Aids Liaison with Tertiary Insti- Guidance & Placement Liaison with tutions & Statutory Boards Research Regional and under the Ministry of Education International Supplies & Stores Bodies (UNESCO, Publications SEAMEO) General Administration INSTITUTIONSN I I I I I I I I Kindergartens Primary Junior Secondary Centralised Tertiary Institu- Industrial Adult Private Schools Colleges Schools Workshops tions, Institute Training Educa- Schools of Education & Board tion Institute of Board S.E. Asian Studies Source: Ministry of Education, Singapore April, 1973 World Bank - 7703   SINGAPORE STRUCTURE OF THE EDUCATION SYSTEM, 1973 1/ ELEMENTARY SECONDARY __ POST SECONDARY AND ^ DUCATION EDUCATION UNIVERSITY EDUCATION TEACHER TRAINING 13 1 (3 Years if part-time) (V. Year if part time) LOWER CYCLE UPPER CYCLE ARCHITECTURE, El ;INEERINGi, ACCOUNTING & BUSINESS ADMiNISTRATION, SCIENCE, ARTS & SOCIAL SCIENCES, GRADES COMMON GENEHAL-2 PRE UNIVERSITY DENTISTRY, PHARMACY, MEDICINE AND LAW. Pass Honours TEC H N I CA L Degree Degree O Major examination TECHNICIAN TRAiNING a PSLE: Primary School Leaving Exam. b SC: School Certificate c HSC: Higher School Certificate Certificate o Diploma o Degree ARTISAN AGES: LABOR MARKET 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1/ Includes only the formal system 2/ The general and technical streams have been integrated, but students may have general or technical bias. 3/ Courses of 3 and 6 months or 1-2 years April, 1973 World Bank - 7701   SINGAPORE EDUCATION PYRAMID 1972 Total Enrollment & Enrollment Ratio Both Sexes Tertiary 4 1,000 300 13,800 3 2100,000 0 7.1% 2 2,900