Liberia - Second Education Project

Report No. 1036b-LBR FILE COPY Appraisal of a Second Education Project Liberia May 13, 1976 Western Africa Education Projects Department FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US $ 1.00 = L $ 1.00 MEASURES AND EQUIVALENTS 1 square foot (sq.ft.) = 0.092 square meter FISCAL YEAR Before 1976: January 1 to December 31 Af'ter June 30, 1976: July I to June 30  FOR OFFICIAL USE ONLY LIBERIA APPRAISAL OF A SECOND EDUCATION PROJECT TABLE OF CONTENTS Page No. ACRONYMS USED BASIC DATA SUMMARY AND CONCLUSIONS . . . .i-iv I. INTRODUCTION . . . . . . . . . . . . . . . 1 . . . I II. SOCIO-ECONOMIC SETTING . . . . . . . . . 1 . . . . . I A. General . . . . . . 1 . . . . . . . B. Manpower . . 2 . . . . . . . . . . . . . . . . 2 III. THE EDUCATION SECTOR . . . . . . . . . . . . . . . 3 IV. THE PROJECT . . . . . . . . . . . . . . . . . . . . 9 A. Summary . . . . . . . . . . . . . . . . . . . 9 B. Project Composition . . . . . . . . . . . . . l1 C. Project Costs - Financing . . . . . . . . . . . 15 V. IMPLEMENTATION . . . . . . . . . . . . . . . . . . . 17 VI. AGREEMENTS REACHED AND RECOMMENDATIONS . . . . . . . 21 This report is based on findings of an appraisal mission that visited Liberia in November, 1975. The mission consisted of Messrs. R. Romain (general educator), W. Cooper (technical educator) and G. Hadjicostas (civil engineer). This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Table of Contents (Continued) Annex 1 Comparative Education Indicators Annex 2 Manpower in Liberia Annex 3 Outline of the Liberian Education System: its Development Requirements and its Financing Annex 4 (a) Project Cost Summary Annex 4 (b) Contingency Allowances Annex 4 (c) Price Contingencies Assumptions Annex 4 (d) IBRD Financing by Major Category of Expenditure Annex 4 (e) Estimated Cost by Project Component and Category Annex 5 Summary of Specialist Services and Fellowship Program and Base Line Cost Calculations Annex 6 Implementation Schedule Annex 7 Schedule of Disbursements Annex 8 Disbursements by Major Category of Expenditure MAP IBRD 12137  ACROiYMS USLD CARE - Cooperative for American Relief Everywhere EFO - Educational Facilities Office (Ministry of Education) LAMCO - Liberian-American Mining Company LSVTC - Liberian-Swedish Vocational Training Center, Yekepa MCSS - Monrovia Consolidated School System PIU - Project Implementation Unit (Ministry of Education) ZRTTI - Zorzor Rural Teacher Training Institute   LIBERIA BASIC DATA General Land area 110,940 km2 Population (1974): 1,501,000 % urban 29% (urban = community of more than 2,000 persons) Population annual growth rate (1962-74): 3.3% Urban annual population growth rate (1962-74) 7.6% Labor force growth rate (1962-74):3.1% (6.19% urban; 2.2% rural) Education 1. Enrollments (1974): Number Female (a) Elementary 149,687 (35.5) Junior High 18,105 (25.2) Senior High 8,321 (23.2) (b) Total Secondary 26,426 (24.6) (c) Technical/Vocational 1,087 (16.0) (d) Teacher Training (Primary) 424 (19.6) (e) Higher Education Local - University of Liberia 1,384 Cuttington College 353 Total 1,737 Foreign (on Government scholarships) 125 Total 1,862 2. Teachers (1974): Number Female Qualified Elementary 3,818 30.3 23.1 Secondary 1,308 14.2 67.3 Teacher Training 41 30.0 n.a. 3. Education Finance (1974): Public Education Expenditure per capita $ 8.8 Per pupil Elementary Education $ 28 Per pupil Secondary Education $ 98 Per pupil Technical/Vocational $ 442 Per pupil Teacher Training $ 817 Per pupil University $1,400 Percent of Current Government Expenditure 13.9 devoted to Education (1974) Percent of GNP devoted to Education (Public 2.7 Expenditures only)   LIBERIA APPRAISAL OF A SECOND EDUCATION PROJECT SUMMARY AND CONCLUSIONS i. This report appraises a second education project for Liberia, for which a Third Window Loan of US$4.0 million is proposed. ii. The First Education Project (Credit 305-LBR signed in May 1972) is providing US$7.2 million for (a) constructing, furnishing and equipping two rural multilateral secondary schools, extensions to a rural primary teacher training institute, and a new college of Agriculture and Forestry; (b) equip- ment for science education and technical teacher training; and (c) technical. assistance for manpower and educational planning, project administration, technical teacher training and secondary education,and fellowships for educational and manpower planning. Physical implementation proceeded slowly until December 1975 owing to late selection of architectural consultants and to delays in completing satisfactory designs and bidding procedures for civil works. However, the first of the construction contracts has been awarded and the project's planning component is proceeding satisfactorily. iii. The proposed second education project would provide US$4.0 million to assist in (a) increasing adult literacy and primary education in rural areas under a community schools program; (b) strengthening education admi- nistration and planning; (c) preparing projects in vocational training and forest ranger training; (d) evaluating the community schools program; and (e) determining the feasibility of radio for formal and non-formal education. iv. The proposed project would be implemented over the period 1976- 79 and would assist the Ministry of Education in (a) improving the access to education for rural children and adults; (b) improving the quality and expanding the output of trained primary school teachers, particularly women; and (c) strengthening education administration and planning. The proposed project would also assist in the preparation of future invest- ments in vocational and forest ranger training to meet two of Liberia's most urgent training needs. It would therefore reinforce first project objectives in regard to teacher training and educational planning, and increase the capacity of the Ministry of Education to manage and develop the education system. v. Specifically, the project would: (a) Support the ongoing community schools program of primary school improvement and adult literacy by: (i) providing 12,000 school places (of which 4,000 would be additional) in the six relatively disadvantaged counties of Lofa, Bong, Cape Mount, Nimba, Montserrado (outside of Monrovia) and Grand Bassa;  - ii - (ii) expanding and improving the Zorzor Rural Teacher Training Institute to accelerate the output of better trained teachers and to raise the female proportion of the national output from 20% to 30%; (iii) providing transport, equipmen% technical assistance and training to strengthen the adult education (literacy) services; and (iv) evaluating the community schools program, its implementation problems and success in achieving objectives. (b) Strengthen the central administration of the Ministry of Education by financing staff training, expertise and related equipment, supplies and vehicles for: (i) reforming administrative organization and methods, systems and procedures; (ii) establishing viable units for curriculum development and textbook production and strengthening the educational testing service; and (iii) finalizing a long-range education plan, preparing a feasibility study of educational radio broadcasting, and strengthening project implementation. (c) Support the preparatory measures being adopted for establishing centers to train craftsmen and forest rangers by financing architectural studies, training and planning expertise. vi. Project Administration. The Project Implementation Unit (PIU) established for the first project within the Ministry of Education would be rer- ponsible for project implementation; thus exploiting the successful experience it has already gained in Bank/IDA project implementation procedures. The PIU would be assisted by staff in the Government ministries and agencies concerned with the second project. The Ministry of Education would nominate and assign liaison responsibilities to officials responsible for the primary school building program, primary teacher training, adult education, research, central administration, curriculum development, educational testing, publications and educational planning. The Ministry of Labor, Youth and Sports and the Ministry of Planning and Economic Affairs would also assign officials to be responsible for liaison on vocational training and the Ministry of Agriculture would do the same for forest ranger training. Their responsibilities would include professional judgments, quality control and integration of the project with on-going activities. One accountant and one procurement specialist trained under the project would be assigned to the PIU. The PIU would be staffed by (i) a Director whose qualifications, experience and terms and conditions of employment are satisfactory to the Bank, (ii) two deputy directors, (iii) an architect, {iv) an accountant, (v) a procurement specialist, and (vi) support staff. The Project Director would be responsible for:  - iii - (a) general supervision of all aspects of implementation of the second project; (b) coordination with the units/agencies/ministries involved in the second project to ensure timely implementation; (c) supervision of technical assistance personnel and evaluation of their effectiveness in achieving required objectives; and (d) collection and preparation of data for an evaluation of the project. vii. The total cost of the project, net of taxes and customs duties, is estimated at US$5.4 million with a foreign exchange component equivalent to the proposed loan of US$4.0 million,or 74% of the total cost. The cost estimates for the Zorzor Rural Teacher Training Institute are based on building prices and transport costs prevailing in Monrovia in November 1975, updated to April 1976. The primary schools cost estimates are based on an analysis of the costs experienced by CARE for the construction of such schools in its 1974-76 construction program. The estimated base line cost (April 1976), net of taxes per square meter of gross area, is: primary schools, US$60; staff houses, US$150; boarding accommodation, US$200; and workshops, US$160. Monrovia was taken as a reference point and appropriate cost adjustment factors have been applied, depending upon the location of the project institutions. These unit costs compare favorably with those of neighboring countries, particularly in the case of primary schools. Site development of about 20% of the construction costs has been included in the case of ZT,TTI, while for the primary schools no allowance for site develop- ment has been incorporated in the building costs because the communities will provide prepared sites. The cost of furniture, equipment and vehicles has been estimated on the basis of provisional lists and November 1975 prices adjusted to April 1976. The cost of technical assistance totaling 28 man- years is estimated to average about US$40,000 per man-year (of which US$27,000 is estimated to be for salaries). These costs are based on the most recent experience of ILO, Unesco and the Government in recruiting technical assistance personnel for Liberia. viii. Procurement. Civil works for the teacher training institute amounting to US$300,000, furniture valued at US$609,000, and equipment valued at US$742,000 would be procured on the basis of international compe- titive bidding in accordance with the Bank's guidelines. The renovation of two staff houses for the ZRTTI staff (US$34,000) and minor works for adapting and a r-coreitioning the publications unit (US$50,000) would be undertaken on force account by the ZRTTI staff and by the Ministry of Public Works, respectively. Furniture, equiprent, vehicles and other items which cannot be grouped in packages of at lea,.t ILS$5G,OfO equivalent each or which are not suitable for international comlpetitive bidding may be procured on the basis of quotations in accordance with local procedtures acceptable to the Bank. Local manufacturers of furniture and eauipment would be allowed a preferential margin of 15% of the c.i.f. price of competing imports or the total applicable customs duties and irport taxes, whichever is lower.  - iv - ix. The Government plans to construct the 100 primary school units, valued at US$1.74 million, using CARE as its executing agent. This arrange- ment would ensure continuity between the ongoing 1974-76 primary school program, under which CARE has successfully constructed 35 such schools for the Government, and the primary school component of the project. CARE, whose costs are 50% of those quoted by commercial contractors for comparable buildings, has proved itself to be efficient in this type of construction; it offers its services and experience to stimulate local self-help and its expertise and a financial contribution of US$25,000 to train villagers in basic construction skills. CARE would employ and train local personnel in building management, particularly site supervision, procurement, and mobilization of community support; Government would employ such persons on satisfactory completion of their assignments. These provisions will be included in an agreement between the Government and CARE, a draft of which was discussed during negotiations and which also includes provisions for: (a) a revolving fund, established and funded by the Government, to prefinance CARE's operations; (b) the phasing of the construction program; (c) the establishing and review of costs; (d) the maintenance of records by CARE on community participat-on. The agreement will be acceptable to the Bank. x. Disbursements. The funds from the loan account would be disbursed as follows: (a) 45% of civil works expenditures; (b) (i) 100% of foreign expenditures for directly imported furniture and equipment; (ii) 80% of expenditures for locally procured furriture, and 75% of expenditures for locally procured equiprent: (c) 70% of expenditures for consultants' services; (d) 80% of expenditures for technical assistance; (e) 100% of foreign expenditures for fellowships. US$0.7 million would be unallocated. All dilsbursements would he made against satisfactory docurentation. Any funds remainling undisbursed at the completion of the project would be cancelled. The project is expected tc be completed in about three years after the signing of the Loan Agreement. xi. The proposed project constitutes a suitable basis for a Third Window Loan of US$4.0 million for a period of 25 years, including a seven-year grace period.  LIBERIA APPRAISAL OF A SECOND EDUCATION PROJECT I. INTRODUCTION 1.01 The First Education Project (Credit 305-LBR signed in May 1972) is providing US$7.2 million for (a) constructing, furnishing and equipping two rural multilateral secondary schools, extensions to a rural primary teacher training institute, and a new college of Agriculture and Forestry; (b) equip- ment for science education and technical teacher training; and (c) technical assistance for manpower and educational planning, project administration, technical teacher training and secondary education, and fellowships for educational and manpower planning. Physical implementation proceeded slowly until December 1975 owing to late selection of architectural consultants and to delays in completing satisfactory designs and bidding procedures for civil works. However, the first of the construction contracts has been awarded and the project's planning component is proceeding satisfactorily. 1.02 The proposed second education project would provide US$4.0 million to assist in (a) increasing adult literacy and primary education in rural areas under a community schools program; (b) strengthening education adminis- tration and planning; (c) preparing projects in vocational training and forest ranger training; (d) evaluating the community schools program; and (e) deter- mining the feasibility of radio for formal and non-formal education. 1.03 The project was identified by Bank missions that visited Liberia in April 1974 and November 1974, and was prepared jointly by the Bank, Unesco and the Government. The appraisal mission, which visited Liberia in November 1975, comprised Messrs. R. Romain (general educator), G. Hadjicostas (civil engineer) and W. Cooper (technical educator) and was joined by Mr. G. Abdi (Loan Officer). II. SOCIO-ECONOMIC SETTING A. General 2.01 Liberia is a small country in terms of both area (111,000 km ) and population (1.5 million, growing at about 3.3% annually). Per capita GDP is about US$333 and the annual growth rate in the economy over the past two decades has been about 7%. The economy depends heavily on the GDP contribu- tion of and employment in foreign enclaves, which contribute 42% of GDP (iron ore 30%, rubber 9%, forestry 3%) but provide a livelihood for only 8%o of the population. Subsistence agriculture accounts for about 25% of GDP and sup- ports 70% of the population. Trading at 10%, transportation at 7% and manufac- turing at 5% account for most of the remainder of GDP. The non-enclave private sector is characterized hy small-scale economic activities; there are only about 100 enterprises which employ over 20 persons.  -2- 2.02 The urban elite -- the professional and managerial class which constitutes only 5% of the population -- receives about 60% of the country's total income. The remaining urban and other modern sector (concessions) employment provides 15% of the country's income for 24% of its population. However, the most urgent problem in Liberia is that the remaining 71% of the population receives only 25% of the country's income. Over a million people live in families whose per capita incomes are less than US$110. These low incomes are due to low productivity, especially in the rural areas where the population has not had adequate access to schools, health clinics and agricultural extension work. It is this larger group of people with low incomes -- "the under-employed" -- who are the intended beneficiaries of the Government's proposed Drogram for decentrelization and rural development. More jobs and better public services in the rural areas will be required to improve the productivity and incomes of rural dwellers. 2.03 Unemployment has become a serious problem in Liberia in recent years, particularly in Monrovia. A 1974 survey revealed that of the estimated 120,000 in the over-15 age group, 68,000 were in the labor force and 14,000 (21%) of them were unemployed and actively seeking work. While this survey data almost certainly overstates the problem of unemployment because it does not distinguish between those who find work at frequent intervals and those who are unable to do so, the problem exists. If urban drift continues at previous rates, the problem of open urban unemployment will persist, particu- larly among secondary school leavers whose expectations as to type of job and level of income may not be met by the economy, which is producing jobs at a slower rate than the growth of secondary school leavers. Special measures will therefore be introduced (para. 3.04) to improve the relationship between the education and training system and the employment world. B. Manpower 2.04 The education and training system is not producing sufficient Liberians with the technical, managerial and administrative skills to man the economy at current levels of activity. At the same time the Government's development plans, particularly for the long neglected rural areas of the country, are severely constrained by the small supply of trained manpower and by weak local public sector administration. A start has been made under the first education project to determine manpower needs as a basis for planning in education and training. Early results of this work show that Liberia's education and training facilities are inadequate in terms of the quality of output and the types and capacity of training and education provided. Man- power planning work is continuing and as more detailed information becomes available it will be possible to quantify training needs more accurately than at present (Annex 2). 2.05 The shortfall of Liberians to manage the economy has been compen- sated for over the past decade by technical assistance, the cost of which has averaged about US$8 per Liberian per year. This technical assistance has been concerned primarily with manning the economy rather than with training Liberian replacements, andi Liberia is likely to remain dependent upon technical assistance on an extensive scale for many years. There is  -3- room for improvement in planning the efficient use of the available technical assistance and in relating technical assistance programs more directly to training Liberians to man the economy. Such measures would include a more positive approach to supporting education and training projects within Liberia and, on the part of both Government and technical assistance person- nel, greater attention to counterpart training and fellowship schemes. The project described in this report combines these approaches. 2.06 In its plans for manpower development the Government is particularly concerned with training Liberians for public and private sector management and in skills that will bring immediate benefits, notably those associated with exploiting the country's mineral and forestry resources. This approach is sound as much of the known natural resources could be exhausted over the next 10 to 20 years and thereafter the growth of the economy will depend more than ever on efficient management, particularly on the managers' ability to conceive and establish new industries. 2.07 In pursuit of a rational manpower development policy, the Govern- ment has: (a) established a manpower planning unit within the Ministry of Planning and Economic Affairs which is developing essential statistical reporting and evaluation systems; (b) created a Civil Service Agency through which it has inaugurated a program of public sector job classification, an examination of the civil service structure, and a review of the entire structure of public sector remuneration with a view to establishing a public service career with an effective and equitable system of incentives; and (c) established an Institute of Public Administration for purposes of upgrading middle and upper-level manpower in the public sector by offering training courses and by providing consult- ing and advisory services to Government ministries in a variety of subject areas. III. THE EDUCATION SECTOR Background 3.01 The education sector suffers from a markedly uneven geographical distribution of school places, inappropriate courses and weaknesses in administration and planning. Public and private investment in educational facilities was traditionally concentrated in Monrovia and the southeastern counties of Sino and Maryland. Despite prog-ress achieved over the past decade in expanding education to the remote areas of the country, the  -4- six northwestern counties (excluding Monrovia) still have average primary enrollment ratios of 40%,compared with the average of over 70% for Monrovia and the southeastern counties. At the secondary level, the divergence is most marked between Monrovia and the rest of the country: 40% of the 1974 candidates for the grade 9 national examination and 62% of the grade 12 candidates came from schools in Monrovia,which has only 15% of the population. Out of the 1974 education budget,rural public primary and secondary pupils cost US$23 and US$95, respectively, compared with US$54 and US$103, res- pectively, for Monrovia public school pupils. Girls constitute 36% of enrollment at primary level and 25% at secondary level. At primary level the educational standards are low because of the poor quality of school buildings, the shortage and unsuitability of books and other teaching materials, the high percentage (77%) of underqualified or unqualified teachers and the unsuitability of the curriculum. At secondary level, laboratories and practical-subject rooms are generally lacking or ill- equipped. At both primary and secondary levels,less than 3% of the budgetary allocation is spent on materials and equipment (Annex 3). 3.02 In December 1975 the Government established a National Council for Vocational and Technical Education and Training to: (a) plan, coordinate and set policy for all Liberian public and private sector programs of vocational training, technical education and industrial skills training; (b) formulate guidelines and procedures for institutions operating vocational and technical education and training programs; (c) recommend the allocation of funds for training programs; and (d) establish vocational training standards, testing procedures and criteria for certification. This important step, which places responsibility for vocational training in the Ministry of Labor, should clarify the differentiation between vocational training and technical education. The Council will oversee the creation of an apprenticeship system for which legislation is being prepared, and will include representatives from the Ministries of Planning and Economic Affairs, Labor, Youth and Sports, Education, and Agriculture, as well as from the labor unions and employers. 3.03 The Ministry of Education is responsible for primary, secondary and technical education. It suffers from (a) problems of organizational structure, (b) a shortage of well-qualified staff, (c) an inadequate budget- ary allocation, especially in regard to supplies, and (d) a shortage of vehicles for essential staff field work and transport of supplies. The over- all Ministry budget of about US$13.3 million in 1974 was equal to 14% of the national budget and 2.7% of GDP -- a relationship which is low relative to that in other developing countries. The bulk of the budget is used to pay staff salaries both in schools and in the administration. In 1975 the sub- sectoral breakdown of the recurrent budget was as follows: central administration, 16.7%; primary education, 28%; primary teacher training, 5.6%; secondary education, 16.2%; vocational/technical education, 11.8%; higher education, 19.3%; and adult literacy, 0.6%. Miscellaneous subventions accounted for the remaining 1.7%. The relative allocations for primary education and literacy are lower than in most other West African countries.  -5- Development Strategy 3.04 The main outlines of the Government's development policy for the sector are indicated in several recent actions. The Educational Planning Unit, with assistance from experts provided under the First Education Project, has prepared a draft 10-Year Plan. In 1972, a national conference on curri- cula was held which gave some targets for qualitative changes. A develop- ment plan for the University of Liberia has been drawn up under the first project and published. A community schools program and a rural teacher training improvement program are being implemented under a UNDP financed project, which has received support from UNICEF. The principal new dimensions to the Government's education strategy are: (a) the assumption of greater central government responsibility for the provision of buildings, furniture, books, equipment, trained teachers and an appropriate curriculum for primary schools; (b) closer links between secondary schools and the labor market; (c) establishment of a management system for vocational training which would ensure its relevance and responsiveness to the labor market; (d) provision of increased opportunities for literacy among adults as part of a broad national effort to improve rural productivity and living standards; (e) training of middle-level forestry staff; and (f) major improvements in the administrative and central educational services. 3.05 At primary level, a community schools program is being implemented to improve education in rural areas. This program provides improved physical facilities for primary schools that can also serve as literacy centers in the evening. The basic construction units (2,250 sq.ft.) are capable of accommodating about 120 pupils; they are of simple modular design with movable partitions, providing flexibility in classroom size and space utili- zation. The units are built with cement blocks manufactured on the site and with plain metal roof sheeting on termite-proof timbers. Construction and maintenance lend themselves to self-help labor where available. The Government has already provided places for 12,000 pupils under this program. To participate in the program, rural communities should comprise at least 500 persons, be relatively deprived educationally and be willing to provide a cleared site and at least 25 acres of agricultural land with easy access for vehicles. Through this program, the Government plans to raise the national  -6- enrollment ratio for the 6-11 age group from 63% in 1974 to about 82% by 1985 (including improved ratios for girls) by concentrating on the north- western half of the country. To increase the output of suitably qualified teachers, particularly women, the residential facilities for female students will be expanded and the training course will be (a) changed from a three- year post grade 9 to a one-year post grade 12 course at one of the two teacher training institutes, and (b) oriented toward rural activities. 3.06 At the secondary level, the Government plans to continue its policy of introducing more science and practical subjects and will evaluate the impact of the two multilateral schools financed under the First Education Project. As an exploratory arrangement, the Government plans to introduce a technology course and home economics at lower secondary level with a view to broadening lower secondary curricula so that the grade 9 output can be better prepared to enter careers after suitable apprenticeships or further training. At the senior high school level (grades 10-12) graduation requirements will include a wider range of subjects and be brought more in line with the standards of the other English-speaking West African countries. A slightly reduced enrollment growth rate is expected at this level for the next ten years, with most public investment for growth concentrated in rural areas. Improvements will be made in examinations which will stimulate greater use of practical- subject rooms. The Teachers College of the University will be strengthened to coordinate with the specialized University departments, such as Science and Technology and Liberal Arts, in producing secondary school teachers in various disciplines. 3.07 The Ministry of Education, in cooperation with the National Council for Vocational and Technical Education and Training, will undertake detailed planning for each institution offering technical education, particularly the Booker Washington Institute and the proposed Harper Technical College. Emphasis will be placed on developing links with private and public employers and use will be made of the tracer studies on graduates of technical education programs which are being compiled by the manpower planning unit. Technical aptitude testing will be introduced to assist in career guidance in secondary and technical education. 3.08 The Government plans to establish a center for vocational training in Monrovia to offer basic training and skill upgrading courses in the elec- trical, mechanical and building trades. This center will be located in the industrial park and will be a minimum-sized center providing about 200 places in the following trades: machine shop, sheet metal, welding, auto repair, electrical installation, refrigeration/air-conditioning, electro;tics/radic, carpentry/joinery, plumbing/pipe-fitting and bricklaying/masonry. WThile its justification is based on the skill upgrading needs of existing small indus- tries in Monrovia which are unable to provide the quality of training needed, the center would be expanded to meet additional needs as necessary. Pre- liminary forecasts by the manpower planning unit are that additional skilled personnel needed between 1974 and 1982 in the above fields will exceed 6,200, which is well beyond the capacity of existing private and public sector  training programs. It is expected that the entering level of apprentices would eventually be that of a new type of grade 9 graduate (para. 3.06). 3.09 The FAQ/World Bank Cooperative Program is helping the Government to prepare a program to improve its forest administration, the success of which depends on a sufficiency of appropriately trained forest rangers. In 1974, within the framework of their Mano River Union Agreement for mutual cooperation, Liberia and Sierra Leone agreed that forest ranger training should be under- taken in Sierra Leone. However, in the light of the problems and delays in establishing a suitable center in Sierra Leone and the need for Liberia to proceed early with forest ranger training, the Union has postponed indefinitely the idea of establishing its own center. Consequently, the Government of Liberia, anxious to improve its supervision of forest exploitation, revenue collection and administration of concession contracts, has decided to establish a training center to begin meeting its need for additional forest rangers, estimated at 400 by 1980. 3.10 In adult education, the central problem is that in the age group 15 years and above more than 85% of the women and 60% of the men, principally in rural areas, are illiterate. Between 1971 and 1974 the Ministry of Education established, with some UNDP and UNICEF assistance, 24 village evening literacy centers in community schools staffed by part-time instructors, supplied with free instructional materials and serving 600 adults. By 1976 the number of centers is expected to reach 60. The objective of the literacy program is to make the adults more receptive to the educational efforts of other ministries such as Agriculture, Health and Community Development, thus improving their living standards. For effectively supporting these centers, trained adult education supervisors (one for each county), will be provided with transport and audio-visual materials, thus serving as both administrators and educational resource personnel. 3.11 In higher education, the Government is reviewing the UniversJtv of Liberia's development plans in terms of manpower and cost implications. The issues are (a) the feasibility of moving the main campus out of Monrovia, and (b) a choice between consolidation on the one hand and expansion in t'e number as well as the range of disciplines offered on the other hand. The administrative services of the University are being strengthened under the First Education Project. 3.12 To cope with its increasing responsibilities, the Ministry of Education intends to revise its organizational structure and its procedures for financial and personnel administration and for procurement and distri- bution of educational supplies. To lead the system toward greater relevance and higher standards, it will increase its work on curriculum development, educational testing and the production of teaching materials. Efforts tc revise curricula have suffered from a lack of full-time and specialized staff.  - 8 - The testing and examinations service has not been able to influence examinations decisively because of a lack of transport for staff field work and insufficient qualified staff. Efforts to provide cheap, suitable textbooks have proved unsuccessful: first, a rental scheme failed because of rapid physical deteri- oration and loss of books; and second, the establishment of two separate units for preparing and printing books has suffered from insufficient capital and recurrent financing and from poor organization. The Ministry has therefore decided to (a) establish a full-time curriculum development unit for con- tinuous revision of curricula, (b) strengthen the testing services, and (c) establish a single publications unit to produce inexpensive textbooks with assured sources of financing. 3.13 The Government's strategy combines a modest expansion of facilities with project preparation and planning for the period 1976-80. During this period it plans to continue to expand the community schools program (para.3.05), strengthen the Ministry of Education, establish more scientific and practical programs at the lower and upper secondary levels and in primary teacher training, expand vocational training, and establish a vocational training center. As a basis for future development it would (a) evaluate the community schools program and, later on, the new types of secondary schools and the vocational training center; (b) examine the feasibility of radio in the context of formal and non-formal education; and (c) develop priorities and projects to expand education and training facilities. Role of the Project 3.14 The second education project would assist the Government in (a) supporting the on-going community schools program (paras. 3.05, 3.10, 4.02- 4.06); (b) strengthening the central administration and planning of the Ministry of Education (paras. 3.12, 4.07-4.10); and (c) supporting the measures being adopted to reorganize vocational training and to establish centers to train craftsmen and forest rangers (paras. 3.02, 3.08, 3.09, 4.12 and 4.13). 3.15 The project is modest and aims only at reducing the unequal distri- bution of educational opportunities and establishing a sound basis for future education and training development. Its scope and aims take into account the manpower available to implement and run the education system and the Government's ability to meet recurrent costs. Its pre-investment and plan- ning activities would lay the basis for more ambitious investments in the future to deal with the serious deficiencies of the sector (paras. 3.01, 3.03).  - 9 - IV. THE PROJECT A. Summary 4.01 The proposed project would be implemented over the period 1976-79 and comprises: (a) Assistance to a community schools program, including: (i) construction, furnishing and equipping of 100 prinary school units in about 50 villages and the expansion and improvement of a rural teacher training institute; 10 man-years of technical assistance and 12 man-years of fellowships in primary teacher training; (ii) 2 man-years of technical assistance, 10 man-years of fellowships and equipment to establish an efficient administrative system for adult education; and (iii) 2-1/2 man-years of specialist services, equipment and supplies to evaluate the program. (b) Strengthening of the Ministry of Education, including: (i) minor works for preparing a building for textbook production; and (ii) 14-1/2 man-years of technical assistance, 12 man-years of specialist services, 25 man-years of fellowships, equipment and supplies to effect administrative reform and improve curriculum development, testing, textbook production, planning and project administration, and a feasibility study on educational broadcasting. (c) Preparation of future projects, including: (i) 1-1/2 man-years of technical assistance for vocational planning and 4 man-years of fellowships for training forest ranger trainers, and (ii) funds for architectutal studies and design work on two training centers -- one for tradesmen and craftsmen, the other for forest rangers.  - 10 - B. Project Composition Community Schools Program 4.02 Primary School Units. The project would finance the construction, furniture, and equipment for 100 primary school units (para. 3.05), in the counties of Bong, Lofa, Cape Mount, Grand Bassa , Montserrado and Nimba, pro- viding 12,000 places (of which 4,000 would be additional). The sites have been selected using the criteria outlined in para. 3.05 and agreed by the Bank. Ownership of the sites will remain with the communities in accordance with current practice, which has proved satisfactory. Construction cost estimates include the full cost of labor and materials. The architectural designs would be based on drawings for existing units that are being modified in line with suggestions from the Bank. During negotiations, assurances were obtained from the Government that final and working drawings for primary school units will be satisfactory to the Bank. 4.03 The Government wishes to employ the Cooperative for American Relief Everywhere (CARE) as its executing agent for the construction of these units. CARE, a non-profit corporation which has successfully constructed 35 community schools for the Government under its on-going 1974-76 construction program, aims to build up a local capability for implementing this construction program and to develop and encourage self-help and private or community initiatives at the village level. As an incentive to community effort, the value of any contributions made by the community toward the construction of the school in the form of labor or materials would be assessed and an equivalent value of textbooks and other school supplies (normally provided by parents) would be supplied to the individual schools concerned. CARE would also make a contri- bution of not less than US$25,000 to train villagers in basic construction skills. A draft contract between the Government and CARE was reviewed during negotiations (para. 5.06). 4.04 Primary Teacher Training. For the Zorzor Rural Teacher Training Institute (ZRTTI), the project would finance construction, furniture, 2 vehicles, equipment, 10 man-years of technical assistance and 12 man-years of fellowships. Construction would comprise a new 70-place women's hostel, 3 new staff houses, renovation of 2 staff houses and the demonstration school, a new agricultural workshop, improvements/extensions to teaching spaces (for home economics, arts and crafts, biology/agricultural science) and improvement to water and electricity supply. Boarding capacity would be increased from 240 to 310 and enrollment from 300 to 370. The Government would recruit 5 teachers financed under the project by direct hire under two-year contracts in the fields of adult education, language arts, science, educational psychology and mathematics. These teachers would replace departing volunteer bilateral aid staff (US Peace Corps, UK Volunteer Service Overseas) until Liberian staff can be trained. The Institute would establish an extension service to (a) coordinate with satellite primary schools in which its students would do practice teaching, and (b) set up a tracer system on all graduates which will show both where  - 11 - they go and, in the case of those teaching in primary schools, how they per- form as teachers in the light of their training. The Institute would finalize the curriculum for the new one-year post grade 12 course to replace the three- year post grade 9 course and would incorporate adult education techniques in this curriculum. The organization and functioning of the extension service would be reviewed with the Bank within two years of loan signing, and the detailed curriculum would be satisfactory to the Bank. For the new buildings (hostel, staff houses ard agricultural workshop) the approved first project designs would be adapted by the first project consultants, who would also supervise construction. Retroactive financing of about US$10,000 is recom- mended for work carried out by the consultants between negotiations and loan signing. 4.05 Adult Education. The project would finance 2 man-years of technical assistance, 10 man-years of fellowships, and 10 vehicles to strengthen the adult education service and to support the administration of literacy centers in each of Liberia's nine counties (para. 3.10). The Ministry of Education's Publications Unit would provide audio-visual materials for the literacy program. Classes would be held in existing community schools as well as in those to be buiit urder this project, and would be taught by primary school teachers sup- ported by traveling supervisors trained under the project. The adult education specialist would assist in (a) establishing administrative organization and methods for the supervision and guidance of the literacy centers; (b) preparing detailed plans for the growth of the centers; (c) preparing suitable teaching materials and basic literacy tests; (d) evaluating the program; and (e) train- ing local staff. A trained adult education supervisor would be assigned to each county. 4.06 Evaluation. The project would finance the evaluation of the entire community schools program by providing office equipment and supplies, and a vehicle and fuel for field work, which will be undertaken by the Research Division of the Ministry of Education in cooperation with other relevant agencies such as the Educational Facilities Office, the University and ZRTTI. The aim would be to monitor in particular (a) the effectiveness of the new one-year teacher training program; (b) the efficiency and impact of the design of the primary school units; (c) the socio-economic profile of communities in relation to the success of the community school and self-help concept; and (d) thelin- guistic ccoitext of the literacy program. To assist in refining the design and mectodology of evaluation and in analyzing data, the project would finance the services of specialists in education, sociology and linguistics. The terms of reference and timetable of the evaluation have been agreed between the Govern- ment and the Bank. The evaluation report would be reviewed with the Bank within three years of loan signing. Strengthening the Miristry of Education 4.07 Administrative Reform. The project would finance 4 man-years of technical assistance to assist the Ministry of Education in conducting a  - 12 - thorough review of its structure, organization, procedures and methods of operation; 2 man-years for a Ministry of Education staff member to assist in the review; 3 man-years of fellowships for training two persons in account- ancy/business management; 10 man-months of fellowships for training two persons in procurement techniques; two vans for improving the distribution of supplies to the community schools; and office equipment for establishing a personnel records system. The Institute of Public Administration would employ the specialists and relay to the Ministry the following specified services: (a) analysis of the responsibilities (terms of reference) and operations of the Ministry; (b) assessment of the optimal organizational arrangements and staff positions required for discharging these responsibilities; (c) an inventory of staff resources within the Ministry, its projected growth and attrition, and staff development requirements; (d) identification of improved methods and systems of operation, particularly in the fields of personnel and financial administration, and the initiation of staff into these new systems; (e) preparation of an implementation plan, including identification of legislative, policy and budgetary requirements for imple- menting the reorganization and reforms, and a comprehensive draft of an education law and regulations as well as operational manuals; (f) identification and preparation of projects for administrative improvement. Agreement has been reached between the Government and the Bank on the nature, scope and timing of the Institute's services to the Ministry. The Ministry of Education would assign a member of the staff of the Ministry to work with the Institute team on the study. The Government and the Bank would review the findings and recommendations of the specialists' work and consult on the introduction of measures for improving administration. 4.08 Curriculum, Testing, Publications. The project would finance: (a) Technical assistance totaling 6 man-years (1.5 man-years for a curriculum development coordinator, 6 man-months for a technology syllabus specialist, and 2 man-years each for a testing specialist and a publications specialist);  - 13 - (b) Fellowships totaling 16 man-years for training Liberians (3 man- years to train 3 curriculum developers, 4 to train 2 technology teachers, 3 to train 3 staff members as testing specialists, and 6 to train editorial staff, a book production manager, typesetters, photographers and equipment maintenance staff); (c) Equipment and supplies for publications and four vehicles for staff field work and transport of publications supplies and materials; (d) Minor works for the adaptation and air-conditioning of the publications building; (e) Salaries of specialists in syllabus and textbook preparation to expedite the programs in those fields. 4.09 The specialist in curriculum development would assist in coordi- nating this task and in establishing methods of operating the curriculum development unit. The specialist in technology would prepare a syllabus for grades 7 - 9 and advise on technological orientation at other levels. The specialist in testing would assist in developing the testing and examination programs of the Ministry, in particular assisting in (a) devising appropriate test batteries for basic literacy and primary education, (b) improving the grade 9 and grade 12 national examinations to reflect new directions of the curriculum, and (c) developing pre-testing and selection of test items and the analysis of and research on test results. The specialist in publications would assist in planning, programming and coordinating the activities of the publications unit. Assurances were obtained during negotiations that within one year of loan signing, the Government will prepare and discuss with the Bank a detailed program for textbook production for the succeeding three-year period and that arrangements satisfactory to the Bank will be made by December 31, 1976, for (a) the operation of a replenishment fund with assured sources of financing for renewal of printing and production supplies and equipment, and (b) the distribution of books. 4.10 Educational Planning. The project would finance 27 man-months of technical assistance, including specialists in educational planning (12 months), technical education (12 months) and educational radio broadcasting (3 months). The project would also finance 5 man-years of fellowships to train three Liberians in educational planning. The educational planner would coordinate the finalizing of the draft long-range plan prepared under the First Education Project. The technical education planner would plan the dexelcpment of the technical education system in cooperation with the vocational planning specialist (para. 4.12) and undertake detailed planning for all technical education courses and institutions. The terms of reference of the educational broadcasting feasibility study have been agreed between the Government and the Bank.  - 14 - 4.11 Project Administration. The project would provide 6 man-months of technical assistance to finance a deputy project director to assist the project director in implementing the first and second education projects. This would be an extension of an existing position financed under the first project. The project would also finance 24 man-months of technical assistance for an architect to assist in (a) the design and implementation of the con- struction and furnishing of the primary school units, (b) educational planning, and (c) the planning and programming of the maintenance requirements of the Ministry of Education. Retroactive financing of about US$30,000 is recommended for the period from January 1, 1976 to loan signing to cover the cost of the architect to complete primary school designs. Preparation of Future Projects 4.12 Vocational Training. The project would finance 18 man-months for a specialist in vocational planning to assist the Government in (a) establishing a national system of vocational training under the newly created National Council for Vocational and Technical Education and Training, (b) planning suitable programs for the training and upgrading of skilled workers, and (c) finalizing plans and adapting equipment lists for a vocational training center. The terms of reference have been agreed among ILO, the Government and the Bank. Retroactive financing of about us$20,000 for the period March 1, 1976 to loan signing is recommended. The project would also finance the preparation, by January 1977, of preliminary designs and advanced cost estimates for the vocational training center. The PIU would prepare an architectural brief by July 1976 to expedite the design work. 4.13 Forest Ranger Training. The project would finance (a) 4 man-years of fellowships to train two Liberians in forest ranger training techniques, and (b) architectural services for preparing preliminary designs for a forest ranger training center. During negotiations, assurances were obtained from the Government that it will exchange views with the Bank on a schedule to strengthen its forest administration, including institutional improvements and related training of forest rangers.  - 15 - C. Project Costs - Financing 4.14 The cost of the project is estimated at US$5,4 million, net of taxes and customs duties. The distribution of project costs by major category of expenditure is given in Annex 4(a), and the breakdown by project item is summarized as follows: Project Cost Summary (US$ million) % of Base Local Foreign Taxes Total Cost (net of taxes) Project Item A. Community Schools Program 0.86 1.83 0.71 3.40 63.8 (a) 100 modular primary school units 0.65 1.08 0.55 2.28 42.8 (b) Improvements and expansion of 0.17 0.53 0.13 0.83 15.6 Zorzor Rural Teacher Training :nstitute (c) Adult Education Service 0.03 0.19 0.02 0.24 4.5 (d) Evaluation 0.01 0.03 0.01 0.05 0.9 B. Ministryf Education 0.23 1.30 0 .-1 1.71 32.1 (a) Administrative Reorganization 0.05 0.23 0.02 0.30 5.6 (b) Curriculum - Testing - 0.15 0.93 0.14 1.22 22.9 Publications - Planning (c) Project Administration 0.03 0.14 0.02 0.19 3.6 C. Preparation of Future Projects 0.05 0.16 0.01 0.22 4.1 (a) Vocational Training 0.04 0.12 0.01 0.17 3.2 (b) Forest Ranger Training 0.01 0.04 - 0.05 0.9 Base Cost Estimate 1.14 3.29 0.9(i 5.3` 100.0 Physical Contingencies 0.03 0.07 0,03 0.13 2.4 Expected Price Increases 0.26 0.64 0.21 1.11 20.3 Expected Cost of Project 1.43 4.00 1-14 6.57 123.2  - 16 - 4.15 The cost estimates for the Zorzor Rural Teacher Training Institute are based on building pr:ices and transport costs prevailing in Monrovia in November 1975, updated to April 1976. The primary schools cost estimates are based on an analysis of the costs experienced by CARE for the construction of such schools in its 1974-76 construction program (para. 4.03). The estimated base line cost (April 1976), net of taxes per square meter of gross area. is: primary schools, US$60; staff houses, US$150; boarding accommodation, US$200; and workshops, US$160. Monrovia was taken as a reference point and appropriate cost adjustment factors have been applied depending upon the location of the project institutions. These unit costs compare favorably with those of neighboring countries, particularly in the case of primary schools. Site development of about 20% of the construction costs has been included in the case of ZRTTI, while for the primary schools no allowance for site development has been incorporated in the building costs because the communities will provide prepared sites (para. 3.05). The cost of furniture, equipment and vehicles has been estimated on the basis of provisional lists and November 1975 prices adjusted to April 1976. The cost of technical assistance, totaling 28 man-years, is estimated to average about US$40,000 per man-year (of which US$27,003 is estimated to be for salaries). These costs are based on the m-ost recent experience of ILO, Unesco and the Government in recruiting technical assistance personnel for Liberia. 4.16 The cost oF t-e project, net of taxes, by major category of expenditure is as follows: (US$ million) Local Foreign Total of Total Civil Works 0.65 0.98 1.63 36.8 Architects' Fees 0.04 0.09 0.13 2.9 Furriture 0.14 0.32 0.46 10.4 qui-ment 0.06E 0.55 0.61 13.8 Scecialist Services 0.25 0.94 1.19 26.9 Fellowships . 0.41 0.41 9.2 Ease Line Cost 1.14 3.29 4.43 100.00 Physical Contingencies 0.07 0.1C 2.3 Expected Price Increases 0.26 0.64 0.90 2C.3 Total Project Cost 1.43 4.00 5.43 122.6 4.17 Contingencies. The cost of the project includes an allowance for physical contingencies of 10% for c:ivil works and professional services for the primary teacher training institute. For the primary schools the physical contingency allowance is 5%; this is lower than for other project construct- ion because the design incorporates the experience of earlier corstruction of these schools. For office and school equipment an allowance of 5% is made for physical contingencies. The allowance for local and foreign price escalation is estimated to be about 20% of the base cost estimate plus physical contingencies. Details of contingency and price escalation calcu- lations are in Annexes 4(b) and 4(c)).  - 17 - 4.18 Foreign Exchange Component. The foreign exchange component amounts to about US$4.0 million, or 74% of the total projecct cost of US$5.4 million, net of taxes. This has been calculated as follows: civil works, 60%; fur- niture, 70%; equipment, 90%; professional fees, 70%; technical assistance 88% and fellowships, 100%. Local currency expenditure would amount to approxi- mately US$1.4 million, or 26% of the total project cost. Financing the Project 4.19 The proposed loan would finance the project's foreign exchange costs,and the balance of the project costs would be financed by the Government. Retroactive financing is recommended up to a maximum of US$60,000 to cover: (a) architectural consultant fees for ZRTTI (US$10,000 - para. 4.04); (b) the services of an educational architect, for the period January 1, 1976 to loan signing (US$30,000 - para. 4.11); (c) the services of a vocational training planner for the period March 1, 1976 to loan signing (US$20,000 - para. 4.12). Project Recurrent Costs 4.20 By full development in 1983, the project would increase recurrent expenditures of the Ministry of Education by about US$400,000 (1976 terms), accounting for about 1.3% of the Ministry's budget for that year. The annual per student costs at ZRTTI would remain the same at US$930, the greater economies of scale being offset by needed improvements in services. V. IMPLEMENTATION 5.01 Project Administration. The Project Implementation Unit (PIU) est:ablished for the first project within the Ministry of Education would be responsible for project implementation, thus exploiting the successful experience it has already gained in Bank/IDA project implementtation pro- cedures. The PIU would be assisted by staff in the Government ministries and agencies concerned with the second project. The Ministry of Education would nominate and assign liaison responsibilities to officials responsible for the primary school building program, primary teacher training, adult education, research, central administration, curriculum development, educational testing, publications and educational planning. The Ministry of Labor, Youth and Sports and the Ministry of Planning and Economic Affairs would also assign officials to be responsible for liaison on vocational training, and the Ministry of Agriculture would do the same for forest ranger training. Their responsibilities would include professional judgments, quality control and integration of the project with on-going activities. One  - 18 - accountant and one procurement specialist trained under the project would be assigned to the PIU. Assurances were obtained from the Government during negotiations that the PIU will be staffed by (i) a Director whose qualifi- cations, experience and terms and conditions of employment are satisfactory to the Bank, (ii) two deputy directors, (iii) an architect, (iv) an account- art, (v) a procurement specialist, and (vi) support staff. The Project Director would be responsible for: (a) general supervision of all aspects of implementation of the second project; (b) coordination with the units/agencies/ministries involved in the second project to ensure timely implementation; (c) supervision of technical assistance personnel and evaluation of their effectiveness in achieving required objectives; and (d) collection ana preparation of data for an evaluation of the project. 5.02 Ar.. architect acceptable to the Bank has been appointed for the design and supervision of primary school construction. The Government has almost completed arrangements to appoint architects acceptable to the Bank for the design of ZRTTI,and has initiated its search for architects to pre- pare preliminary designs for the vocational training center and the forest ranger training center (paras. 4.04, 4.12 and 4.13). 5.03 Specialist Services and Fellowships. The specialist services component of the project includes technical assistance, as follows: (a) 48 man-months for the Institute of Public Administration, to be recruited by that Institute; (b) 18 man-months in vocational planning for the Ministry of Planning; (c) 120 man-months for teacher trainers to serve at ZRTTI, to be recruited by the Ministry of Education; (d) 153 man-months to be recruited by the Ministry of Education for its units, as follows: Division of Adult Education (24), Bureau of Planning and Research (51), Division of Curriculum Development (24), Publications Unit (24), Division of Testing (24) and PIU (6) (Annex 5).  - 19 - Technical assistance personnel, under terms of reference that have been agreed between the Government and the Bank, would be required to train local counter- part personnel. The project would also finance Liberian specialists to evaluate the community schools program (30 man-months), assist in adminis- trative reform (24 man-months) and prepare syllabi (48 man-months) and text- books (72 man-months). Most of these specialists wcu.ld be seconded from their regular positions to work on the project. During negotiations, assurances were obtained from the Government that it will: (a) employ, as specialists and technical assistance personnel, persons whose qualifications, experience and terms and conditions of employment are acceptable to the Bank; (b) award fellowships to suitably qualified persons, enroll them in training programs approved by the Bank, provide an appropriate budget and positions to absorb the trained personnel, and require them to serve at least two years in the positions for which they were trained. 5.04 Sites. The sites for all project primary school units have been selected by the Government according to criteria agreed with the Bank (para. 4.02). The sites for all works at ZRTTI already belong to the Ministry of Education. 5.05 Procurement. Civil works for the teacher training institute amounting to US$300,000, furniture valued at US$609,000, and equipment valued at US$742,000 would be procured on the basis of international competitive bidding in accordance with the Bank's guidelines. The renovation of two staff houses for the ZRTTI staff (US$34,000) and minor works for adapting and air-conditioning the publications unit (US$50,000) would be undertaken on force account by the ZRTTI staff and by the Ministry of Public Works, respectively. Furniture, equipment, vehicles and other items which cannot be grouped in packages of at least US$50,000 equivalent each, or which are not suitable for international competitive bidding, may be procured on the basis of quotations in accordance with local procedures acceptable to the Bank. Local manufacturers of furniture and equipment would be allowed a preferential margin of 15% of the c.i.f. price of competing imports or the total applicable customs duties and import taxes, whichever is lower. 5.06 The Government plans to construct the 100 primary school units, valued at US$1.74 million, using CARE as its executing agent (para. 4.03). This arrangement would ensure continuity between the on-going 1974-76 primary schools program, under which CARE has successfully constructed 35 such schools for the Government, and the primary school component of the project. CARE, whose costs are 50% of those quoted by commercial contractors for comparable buildings, has proved itself to be efficient in this type of construction; it offers its services and experience to stimulate local self- help and its expertise and a financial contribution of US$25,000 to train  - 20 - villagers in basic construction skills. CARE would employ and train local personnel in building management, particularly site supervision, procurement, and mobilization of community support; Government would employ such persons on satisfactory completion of their training assignments. These provisions will be included in an agreement between the Government and CARE, a draft of which was discussed during negotiations and which also includes provisions for: (a) a revolving fund, established and funded by the Government, to prefinance CARE's operations; (b) the phasing of the construction program; (c) the establishing and review of costs; (d) the maintenance of records by CARE on community participation. During negotiations, assurances were obtained from the Government that the agreement will be acceptable to the Bank. 5.07 Disbursements. The funds from the loan account would be disbursed as follows: (a) 45% of civil works expenditures; (b) (i) 100% of foreign expenditures for directly imported furniture and equipment; (ii) 80% of expenditures for locally procured furniture and 75% of expenditures for locally procured equipment; (c) 70% of expenditures for consultants' services; (d) 80% of expenditures for technical assistance; (e) 100% of foreign expenditures for fellowships. US$0.7 million would be unallocated. All disbursements would be made against satisfactory documentation. Any funds remaining undisbursed at the completion of the project would be cancelled. An implementation schedule and estimates of disbursements are at Annexes 6-8.  - 21 - VI. AGREEMENTS PEACHED AND RECOMMENDATIONS 6.01 During loan negotiations, assurances were obtained from the Government that: (a) final and working drawings for the primary school units (para. 4.02) and the contract for the construction of these units (paras. 4.03 and 5.06) will be satisfactory to the Bank; (b) the Government will prepare and review with the Bank, within one year of loan signing, a plan for the production of textbooks for the succeeding three-year period and, by December 31, 1976, will make arrangements satisfactory to the Bank for (i) the operation of a replenishment fund with assured scurces of financing for :_reT7ral of printing and production supplies and equipment, and (ii) the distribution of books (para. 4.09); (c) it will exchange views with the Bank on a schedule of measures to strengthen its forest administration, including institu- tional improvements and related training of forest rangers (para. 4.13); (d) the PIU will be staffed by (i) a Project Director whose qualifications, experience and terms and conditions of employment will be satisfactory to the Bank, (ii) two Deputy Project Directors, (iii) a Project Architect, (iv) a Project Accountant, (v) a Project Procurement Specialist,and (vi) suFport staff (para. 5.01); (e) it will employ, as specialists and technical assistance personnel, persons whose qualifications, experience, and terms and conditions of employment are acceptable to the Bank (para. 5.03); (f) it will award fellowships to suitably qualified persons, enroll them in training programs approved by the Bank, provide an appropriate budget and positions to absorb the trained personnel, and require them to serve at least two years in the positions for which thev were trained (pera.5.03). 6.02 Retroactive financing is recommended for (a) US$10,000 for work carried out by the consultants between negotiations and loan signing for the primary teacher training component (para. 4.04); (b) US$30,000 for an architect to complete designs for the primary schools between January 1, 1976 and loan signing (para. 4.11); and (c) US$20,000 for a vocational training specialist betweern March 1, 1976 and loan signing (para. 4.12).  - 22 - 6.03 On the basis of the above assurances, the proposed project consti- tutes a suitable basis for a Third Window Loan of US$4.0 million for a period of 25 years, including a seven-year grace period.  COMPARATrVE EDUCAT)IUN INDI1C0TORS 4NNEX m.ssszsuusushhu:ssuaun~~~..:nsuzz Page 1 of 2 C JANUARY 9, 2976 I * 2 I I 2 I I I I 2 2 I 2 2 I I i GNP9/ 2 I GNP 23 TDTAL1% OF PUBSLIC I I I IPRI, IAV.PRI. 2 I iSEC i I I 2CAPCTA2 !IEVOTE02PU9LIC I EDUCATION oLITER- 2tPRI, ,CONPLE- iSTU- 9SCH.TEACH42P9RnGESS.I SEC. 3STU- 2 I I I AT 2 TO E0U.t FXP. I RECLIRRENT mOOT 2ENROLL2TIUN IDENTS2OALARY INI)OON RATE *ENRULL2OENTOeINGH4EQU 2 0'ARKETt CPilBL2C2OEVOTED:EXP ALLDCAED: RATE :QATIO IRATE FORPIPER IRELATIDN 2FIOOm PRIaRATOO IPE9 IENRnLL: I POOP. iPRICES: EXP. 2 TO 2 TDOg I(% OF I NFI tPA130.2CH. 0E0CH TO 0.NP/ 2)20 SFC. 2 NFT t2EACH. RAT11, 093(0003 2 3 (391)2 04LYI I EOU. 11P92* SEC. .41.:AnULTS)c 23) iCYCLECOIER I CAPITA I (31 I (1) 2ER I (5) I I I I2 I 2 2I I I I I I 2 2 I I (I) to (2) 2 (3) I (A) 2 ( I (61 2I(7) 2 (A) 2 (9) (10) I (tI) 2(12) 1(13) 2(10) 2 AUS-TRIA 73 7.SC 2,AIoc 4.3 9.9 070 250 200 99 9A 93 26 2.0 99 5t t9 A,00 CAW460 72 21I. 8 0, 040 7 .7 29,4 30 39 19 99 99 991 20 2 .0 99 82 27 9.00 GERMANY F.REP.72 62I.6b 1 3,59)0 0.2 10.2 .. 74** Pep 99 92 99 33 . .. 99 91 22 17.0000 JAPAN 72 1016.90 2,5230C 0.3 P0.7 39 39 22 99 990 99C 25C 2 .0 (99 900D 20C 2S. 0)0D 4E2.H00LA050 72 23.1 7,90) 9*5 Iq.IG 32 05