Philippines - Fourth Education Project

Document of _ The World Bank FOR OFFICIAL USE ONLY Report No. 120 7-c-PH STAFF PROJECT REPORT FOURTH EDUCATION PROJECT IN THE REPUBLIC OF THE PHILIPPINES February 10, 1977 Education Projects Division East Asia and Pacific Region 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 EQUIVALENT US$1.00 = Pesos 7.499 Pesos 1,000 = US$133.35 MEASURES 1 m 2 1.09 yd 1 m22 = 10.76 sq ft 1 km2 = 0.38 sq mi 1 ha = 2.47 acres FISCAL YEAR January 1 - December 31  PHILIPPINES FOR OFFICIAL USE ONLY STAFF PROJECT REPORT FOURTH EDUCATION PROJECT TABLE OF CONTENTS Page No. BASIC DATA GLOSSARY SUMMARY AND CONCLUSIONS ................... . ................... i - xii I. AGRICULTURAL DEVELOPMENT STRATEGY AND IMPLICATIONS FOR EDUCATION AND TRAINING ........................... 1 Development Pattern and Strategy .... .............. 1 Implications for Education and Training: Manpower Resources .............................. 2 II. AGRICULTURAL EDUCATION AND TRAINING .................... 6 Overview .......................................... 6 Agricultural Education System ................... 7 Forestry Education .............................. 9 Animal Science Education ..... ................... 10 Veterinary Education ............. .. ....... 11 Regional Agricultnral Education in Visayas ...... 12 Non-Formal Agricultural Training ........ ........ 14 Education Financing ...................... 15 Assessment of Government Policies and Programs ... 15 Bank Lending Strategy in Education . ............... 17 III. THE PROJECT ............................................ 18 Objectives and Scope .. ............................ 18 Project Components ... ............................. 19 UPLB /1 College of Forestry .... ............. 19 UPLB Department of Animal Science .... ........ 20 UP College of Veterinary Medicine . ........... 21 Staff Development at the UPLB . ............... 21 Visayas State College of Agriculture .... ..... 23 Philippine Training Centers for Rural Development ................................ 24 Project Management Support ..... .............. 27 Feasibility and Industrial Policy Studies .... 28 Monitoring and Evaluation ................... 28 /1 UPLB: University of the Philippines (UP) at Los Banos. Thi document has a rtricted distribution and may be used by recipients only in the performance of their oflkicl dutier. Its contents may not otherwise be disclosed without World Bank authorization.  TABLE OF CONTENTS (Continued) 2- Page No. IV. PROJECT COST, FINANCING, IMPLEMENTATION AND DISBURSEMENTS 29 Cost of the Project ............... . 29 Project Financing . . ..................... . . 33 Implementation . .........................34 Disbursements .........................o.o. 36 V. BENEFITS AND RISKS ..................................... 37 Benefits ......................... ................. 37 Risks .. ............... ......... 38 VI. AGREEMENTS REACHED AND RECOMMENDATIONS ........ - ....... 39 VII. RELATED DOCUMENTS AND DATA AVAILABLE IN THE PROJECiT FILE 40 ANNEXES: 1. Comparative Education Indicators 2. General Agricultural and Forestry Manpower Demand/Supply - 1976-1985 3. Livestock Sector Manpower Demand/Supply 1976-1985 4. Agricultural Manpower Demand/Supply in the Visayas - 1976-1985 5. Total Expenditure on Education by Source, 1973-75 6. Technical Panel for Agricultural Education - Terms of Reference Dated January 10, 1977 7. Project Institutions - Present and Projected Enrollment/Output 8. Technical Assistance Programs 9. Summary of Project Costs by Project Items 10. Implementation Schedule 11. Disbursements Schedule CHARTS 1. Education Pyramid, 1975 - World Bank 16904 2. Structure of the Formal System of Education - World Bank 16905 3. Organization Chart of EDPITAF - World Bank 16872 MAP Location of Project Institutions This report is based on the findings of a mission which visited the Philip- pines during January/February 1976, composed of Messrs. M.H. You (economist and mission leader), O.P. Gautam (agricultural educator), S. Sigurdsson (architect), Miss R. Johnson (Y.P. economist), Messrs. K. Hansson (agricul- tural extension - consultant), J. Marr (fisheries - consultant), G. McClymont (veterinary medicine/animal science - consultant), and H. Hilmi (FAO - consultant) who joined the mission during the final ten days.  APPRAISAL OF A FOURTH EDUCATION PROJECT IN THE PHILIPPINES BASIC DATA (1974) Population Estimated total 41.4 million Annual growth rate 3.0% Average density 140 per km2 Rural Population Estimated total 30.0 million Percentage of total population 71% Number of farming households 2.3 million Engaged in farming 19.5 million Engaged in fishing and forestry 1.9 million Other rural activities 8.6 million Rural Elementary School Enrollment Aged 7-12 100% Agricultural Secondary Enrollment as Percentage of Total Secondary Enrollment 2% Agricultural College Enrollment as Percentage of Total College Enrollment 4% Expenclitures on Education by Source US$ Million % National government 268 67 Local government 38 10 Student fees 93 23 399 100 Total National Government Expenditure for Education as a Percentage of Total Government Expenditure 11.6% Total Public and Private Education Expenditure as a Percentage of GNP 2.8%   GLOSSARY BAEx - Bureau of Agricultural Extension BAI - Bureau of Animal Industry BFD - Bureau of Forest Development BPI - Bureau of Plant Industry CLSU - Central Luzon State University CMU - Central Mindanao University DAR - Department of Agrarian Reform DEC - Department of Education and Culture DLGCD - Department of Local Government and Community Development EDPITA'F - Educational Development Projects Implementing Task Force FORI - Forest Research Institute NEDA - National Economic Development Authority NFAC - National Food and Agriculture Council NGB - National Governing Board NMIC - National Meat Inspection Commission PCARR - Philippine Council for Agriculture and Resources Research PTC-RD - Philippine Training Centers for Rural Development NTC - National Rural Training Center RTC - Regional Rural Training Center FTC - Farmer Training Center RAC - Regional Advisory Council UPCVM - University of the Philippines College of Veterinary Medicine UPLB - University of the Philippines at Los Banos UPLB-CA - University of the Philippines at Los Banos, College of Agriculture UPLB-CF - University of the Philippines at Los Banos, College of Forestry UPLB-DAS - University of the Philippines at Los Banos, Department of Animal Science VISCA - Visayas State College of Agriculture   REPUBLIC OF THE PHILIPPINES APPRAISAL OF THE FOURTH EDUCATION PROJECT SUMMARY AND CONCLUSIONS The Role of Agricultural Education in the Philippines 1. Agriculture is the predominant sector in the Philippines economy accounting for approximately one-fourth of the gross national product, over one-half of total employment and about three-quarters of export earnings. Current Government investment programs in the agriculture sector emphasize: (a) increased production of staple and commercial crops through expansion of irrigation, increased use of fertilizer and other inputs, and improvement in extension and other services to farmers; (b) development of forest resources and wood products for export; and (c) increased production of livestock and fisheries to reduce imports and raise local nutrition levels. A key con- straint to the accomplishment of these goals is the serious lack of well trained agricultural manpower. The agricultural education system has in the past failed to respond adequately to requirements of employers for com- petent specialists and has produced graduates who tend to be poorly trained and ill-prepared for future employment. Although progress has been made in improving some areas of higher agricultural education, better qualified high-level specialists in veterinary medicine and both high and middle-level specialists in forestry and animal science are required by Government agen- cies and private industry. In-service training of existing field staff is needed in support of the Government food production programs to increase the effectiveness of the extension services. Existing inservice training programs have proved inadequate in making up for the deficiencies of past training of practicing extension workers. There are also not enough farmer training programs to disseminate technology effectively. Such programs need to be expanded and improved to complement the work of extension services and to benefit many farmers not yet reached by the extension services. Agricultural Education System 2. Agricultural education constitutes a small portion of the total education system in the Philippines. Enrollments, however, have increased substantially over the past decade, and there has been a proliferation of agricultural institutions. This rapid growth, accompanied by financial con- straints and an inadequate number of well-trained teaching staff, has led to instruction which is generally of low quality. As a result, graduates at all levels tend to be poorly trained and have difficulty in qualifying for employment in their respective fields. To respond more adequately to development needs, the agricultural education system requires: (a) conso- lidation to allow better allocation of resources to improve the quality of selected institutions with high potential; (b) improvement of the quality and relevance of technician training; and (c) creation of institutionalized systems of rnonformal education.  - ii - S. At the higher level, enrollments have increased by almost eight times from 4,000 in 1964 to about 31,000 in 1974; the number of graduates has only increased by less than three times to about 3,000. There are cur- rently 46 colleges giving degree courses in general agriculture, 18 in for- estry, 21 in animal science, and 4 in veterinary medicine. Most of these _Ts3tiutions share the common problems of curricula that are often outdated, lack of well-qualified staff and insufficient facilities and equipment. These problems, coupled with poor student preparation at the secondary level, nonselective admissions policies, and high teacher-student ratios, have generally resulted in low internal efficiency. Many graduates fail to meet minimum requirements for employment as professionals in their fields. With- in the agricultural education system, the University of the Philippines (UP) offers the best quality instruction, and its graduates are preferred by the public and private sectors. In particular, the Colleges of Agriculture and Forestry and the Department of Animal Science at Los Banos, and the College of Veterinary Medicine at Diliman are recognized as the chief sources of qualified graduate-level manpower and technical advice in these areas. How- ever, the UP College of Agriculture needs further staff development to strengthen its graduate programs. The College of Forestry and Department of Animal Science both require additional physical facilities and equipment and improvements in staff quality. The UP College of Veterinary Medicine at Diliman needs to be relocated at Los Banos where better physical facilities and the needed closer physical and academic relationship with the Department of Animal Science can be provided. Although strong regional agricultural colleges are being established in Luzon and Mindanao, a similar regional college needs to be developed in the Visayas, one of the most important and poorest regions of the country. Higher education in the Visayas is offered by eight institutions, most of which are substandard. Of the eight, the Visayas State College of Agriculture (VISCA) has the highest potential for development into a service-oriented regional college of agriculture. To perform this role, however, VISCA needs staff development, physical facil- ities, and equipment. 4. At the post secondary level, 63 schools enroll about 4,000 and graduate about 600 technicians each year in poultry or pig husbandry, farm mechanics, and forestry. At present, no middle-level training is given in animal disease and protection, but the Government plans to start such a program in the near future. In general, most of the schools lack qualified teachers, facilities and equipment, and both internal efficiency and output are low. Originally conceived as terminal courses with emphasis on prac- tical training, two-year diploma courses have largely become a means of college entry for those who do not qualify for direct admissions. 5. Systematic and coordinated programs for effective training of extension workers and farmers have not yet been developed in the Philippines. In-service training is currently conducted separately by about 15 employing agencies. These courses (three days to nine months duration) are generally on an ad hoc basis and have weak curricula and little follow-up to evaluate effectiveness. There is little coordination between agencies; this tends to result in duplication of efforts. Four residential farmer training centers,  - iii - each experimenting with a different methodology, are in operation and seem to be effective although results are still under study. Various agencies are conducting nonresidential farmer training using demonstration farms and radio programs. These training programs are designed to identify and develop farmer leaders who, through the demonstration of better standards of crop and animal husbandry on their own farms, would complement the efforts of the extension services. On completion of the training program, they would serve as village-level contacts for the extension service. Government Strategy for Development of Agricultural Education 6. The GoveLnment has developed a strategy for the rationalization and improvement of agricultural education. Central to the strategy is the Technical Panel for Agricultural Education in the Department of Education and Culture which the Government set up in January 1977 to assist the Secretary of Education in formulating overall policies and in coordinating development plans in the subsector. One of the primary functions of the Technical Panel is to assess agricultural institutions and to establish an effective accreditation system as a basis for central budgetary allocations. The goal is to phase out substandard schools and colleges and thereby allo- cate scarce resources for the upgrading of selected agricultural institutions with high potential. The Government has agreed to maintain the Technical Panel with terms of reference and composition acceptable to the Bank; the Panel would be assisted by a full time Secretariat which would be fully staffed by March 31, 1978 (para 3.03). The organization of the agricul- tural education system would be comprised of: (a) apex institutions at the national level to serve as centers of excellence in the fields of agriculture, forestry, fisheries, and animal sciences/veterinary medicine; (b) one agri- cultural college with high standards in each of the three major regions (Luzon, Mindanao, and Visayas), around which selected colleges and agricul- tural high schools would be clustered to serve as vocational/technical training or nonformal education centers; (c) experimental agricultural high schools to improve the relevance of secondary education to rural needs; (d) post secondary two-year technician training programs to provide practical skills in various disciplines of agriculture to those not pursuing four-year degrees; and (e) effective systems of training extension workers and farmer leaders in support of food production programs. Bank Lending Strategy for Development of Agricultural Education 7. The Bank first began to support agricultural education in 1964, when a loan of $6.0 million (Loan 393-PH) was made to assist in financing the development program of the University of the Philippines at Los Banos- College of Agriculture (UPLB-CA). Although the project was completed three years behind schedule in May 1973 because of delays in the provision of budgetary funds, substantial progress was made under the project in helping UPLB-CA become a national center with excellence in agricultural education. Further assistance is, however, needed for the UPLB staff development pro- gram so that it can develop its forestry and animal sciences programs.  - iv - These subjects did not receive assistance under the First Education Project and have remained comparatively less developed. Under the Second Education Project (Credit 349-PH, signed in 1973), development of the regional agricul- tural colleges in Luzon and Mindanao began, and 13 experimental agricultural high schools and 6 barrio development high schools were established as a step toward increasing the relevance of secondary education through emphasis on practical training. This project is being implemented successfully. The Third Education Project (Loan 1224T-PH, dated April 8, 1976) for textbook development for primary and secondary schools is progressing satisfactorily. The proposed project is designed to help the Government implement its longer term programs for the development of agricultural education. 8. The lessons learned from implementation of the First Education Project have been taken into account in the design of the proposed project: (a) the Project Performance Audit Report (Sec. 75-516, July 30, 1975) had reported that most of the buildings constructed under the project were too scattered due to the desire of the University authorities to have the new buildings near the then existing ones, and due to lack of adequate coordi- nation between the various consultant architects. The report concluded that a more integrated layout would have been less costly and would have allowed greater efficiency in the future growth of the University. The proposed project takes these points into account and the new construction at Los Banos is planned in accordance with a recently adopted campus plan. Furthermore, the proposed regional college for the Visayas has engaged a master planner and consulting architects to prepare an integrated master campus plan and physical plans; (b) the audit report also referred to the proliferation of agricultural education, inadequate utilization of resources and low quality of agricultural education. The Government has now established a Technical Panel, referred to in paragraph 6 above, to help maintain educational stand- ards of the existing institutions and to regulate the development of agri- cultural education and training; and (c) in order for UPLB to improve its staff retention, the above report advocates better incentives, mainly in the form of further educational opportunities. The University has prepared staff development programs, including post doctoral programs, to upgrade staff quality and also to provide incentives for its staff to remain at UPLB. The Project Objectives 9. The main objective of the project is to increase the supply of well-qualified agricultural manpower needed to implement important agricul- tural development programs in crops, forestry, and livestock. The project would assist in the implementation of the Government's education development strategy in the following key areas: (a) strengthening staff development at the University of the Philippines at Los Banos, particularly in the College of Forestry and the Department of Animal Science; (b) establishing strong centers of national excellence at Los Banos in forestry, animal science, and  veterinary medicine; (c) establishing a strong regional college of agricul- ture in the Visayas, a region not covered by the second project; and (d) creating a national system of in-service training for practicing agri- cultural extension workers and other rural development staff and pilot pro- grams designed to test various methods of training farmer leaders. The project would help the Government achieve a better balance among disciplines (agriculture, forestry, animal husbandry, and veterinary medicine), among regions (Visayas, Luzon, and Mindanao), and between formal and nonformal agricultural education. Background 10. The project proposal was prepared by the Government with the assistance of UNESCO and appraised by a Bank mission during January/February 1976. A follow-up appraisal mission visited the Philippines in November 1976. Negotiations were held in Washington in January 1977. The Philippine dele- gation was led by His Excellency Eduardo Z. Romualdez, Ambassador to the United States and the Honorable Juan L. Manuel, Secretary of the Department of Education and Culture. Project Description 11. The proposed project would consist of: (a) Civil works, procurement of furniture and equipment, and the provision of technical assistance for the College of Forestry and the Department of Animal Science of the UPLB; the College of Veterinary Medicine at Diliman, which will be moved to UPLB; the Visayas State College of Agriculture; the Philippine Training Centers for Rural Development (PTC-RD) (one national and five regional training centers and six farmer training centers); and (b) Technical assistance: fellowships to strengthen the technical and management capability of the staff of (i) the Education Development Projects Implementing Task Force (EDPITAF), (ii) the Secretariat of the National Governing Board for PTC-RD, which will be responsible for implementing an important part of the project, and (iii) the Technical Panel in the Department of Education and Culture; and specialist services to assist (i) EDPITAF in carrying out feasiblity studies for future education projects, and (ii) the Philippine Center for Economic Development (PCED) in conducting industrial policy studies.  - vi - Pe ' g':~ Features of the Project 12. University of the Philippines at Los Banos, College of Forestry (UPL3-CF) (US3.2 million). 1/ The primary objective of the proposed project component is to develop the UPLB-CF as a center of national excellence fo- forestry education and training so as to ensure a continuous supply of better trained foresters, wood scientists, and technologists needed by Government agencies and private industry and to strengthen forestry research programs. Assistance would be provided for improvement of physical facil- ities and equipment, as well as for upgrading the staff through overseas fellowship programs. The enrollment would increase from 415 to 890 by 1981. Particular attention would be given to strengthening the newly established Department of Wood Science and Technology because of its potential contri- butions to the wood-processing industry. Some 30 additional staff required for the planned enrollment increase would be recruited primarily from among the College's own post-graduates. 13. University of the Philippines at Los Banos, Department of Animal Science (UPLB-DAS) (US$4.4 million). The proposed project would enable the UPLB-DAS to increase the quantity and improve the quality of graduates who are in high demand for government, private industry, teaching, and research positions. As part of the Government's higher education develop- ment strategy, the DAS would be upgraded as a national center. The pro- posed project would provide physical facilities and equipment. The staff and curricula would be strengthened through overseas training in fields closely related to livestock development, such as reproductive physiology, meat science, and animal by-products utilization. The UPLB-DAS will be closely linked physically and functionally with the relocated College of Veterinary Medicine (UPCVM). The proposed component will enable DAS to increase the enrollment from 200 to 390 by 1981 and to expand its function of teaching students from other faculties of UPLB from about 1,000 to 2,000 students. 14. University of the Philippines, College of Veterinary Medicine (UPCVM) (US$3.9 million). The project would provide for a planned reloca- tion of the UPCVM from Diliman campus near Manila to Los Banos and provide for expansion of enrollment and improvement in the quality of teaching, research, and extension programs of the UPCVM. The Government strategy to upgrade the UPCVM as a national center would be supported through the proposed provision of physical facilities which would be closely related to the facilities and equipment being provided for UPLB-DAS, Overseas fellowships and specialists' services would be provided to assist in staff development. The enrollment would be increased from 260 to 400 by 1981. The 15 additional staff members required for the expansion would be recruited mostly from the College's own post-graduate program. A two-year animal science technician training program for 220 students would be established jointly by the relocated UPCVM and the UPLB-DAS. I/ Figures in parentheses are the estimated total cost of the individual components, net of contingencies.  - vii - 15. Staff Development at the UPLB (US$2.5 million). As indicated in the preceding paragraphs, the proposed project would make substantial pro- vision for strengthening staff capability in teaching, research, and exten- sion. Staff development is a major aspect of the UPLB's long-term develop- ment plan emphasizing expansion and quality improvement of graduate training programs in development-oriented fields. This would reduce dependency on foreign training in the future, particularly at the doctorate level, and would further reinforce the role of the UPLB as the major source of trained agricultural manpower and technical advice to other colleges and government agencies. The proposed project would finance a total of about 200 man-years cf overseas fellowships for UPLB staff in fields of specialization for which training is not presently offered in the Philippines. In order to help en- sure that the foreign fellowship training is relevant to Philippine cir- cumstances, wherever possible, the fellows would be encouraged to return to UPLB to do thesis research after completion of the necessary classwork abroad. Government regulations stipulate that, after completing their doc- toral degrees, each fellowship recipient must teach at the U-niver-siLy for a period equivalent to two and one half times the man-years the recipient spent abroad. The Government had agreed to provide local fellowships for about 220 UP:LB teachers for doctoral and master degree studies in the Philippines (para 3.13). The proposed staff development program, including local fellowships, would raise the proportion of doctoral degree holders from 26% at present to about 40% by 1981. In particular, it would enable the University to commence teaching in new fields important to agricultural development in the Philippines, e.g., wood engineering and forest products utilization, hydrogeology, post-harvest physiology, biophysics, ecology, and aerial photogrammetry. 16. Visayas State College of Agriculture (VISCA) (US$12.7 million). The main objectives of the proposed assistance to VISCA located in Baybay, Leyte, are to: (a) develop VISCA into a regional center of excellence in agricultural education, research, and extension; (b) train competent agri- cultural specialists, teachers, technicians and extension workers to meet regional requirements; (c) promote research activity and the development of extension methodology appropriate for the region; and (d) enable VISCA to disseminate research results and new technology through extension training, radio programs, and publications. The proposed project would help finance necessary physical facilities, equipment, and overseas fellowships (85 man- years) and specialists' services (4 man-years) for curriculum developmenlt. Under the project, enrollment would increase from 950 to 1,500 students. To support the planned increases in enrollment, research and extension activities, the number of staff would need to be increased from 135 to 200. To help ensure that VISCA develops an adequately trained teaching staff, the Government would train about 25 teachers of VISCA in domestic PhD programs and 70 in domestic masters programs. The majority of this staff would be trained at UPLB. During the project implementation period, VISCA would submit its annual development program to the Bank for comments and would obtain the approval of the Technical Panel for Agricultural Education before new fields of study are added or its enrollment is expanded beyond 1,500 students (para 3.17). This would help ensure the orderly and rational development of VISCA's program.  - viii - 17. Philippine Training Centers for Rural Development (PTC-RD) (US$6.3 million). The proposed investment in PTC-RD would enable the Government to develop a national system for in-service training of field extension workers and farmer leaders in support of the national food production and rural de- velopment programs. Under the project, a National Training Center (NTC) (US$1.0 million), five Regional Training Centers (RTCs) (US$2.5 million), and six Farmer Training Centers (FTCs) (US$2.0 million), would be constructed and equipped. The NTC would develop training programs and materials for the RTCs, train staff and evaluate programs. The functions of the RTCs, to be established at five agricultural colleges in key areas, would be to (a) de- velop training courses to meet local needs, (b) provide in-service training to field staff involved in rural development work, and (c) to supply feed- back for research on agriculture and other problems encountered in the rural development process. The in-service training would be for about 450 rural development workers per course or about 3,600 a year. By 1981, about 70% of the estimated total number of workers would have been trained by the five RTCs. Courses, which would last about one month, would be designed to meet the specific needs of each region and participating Government agencies. Programs would cover crop production, animal breeding and husbandry, plant protection and rural communications. About 60% of the trainees would be extension workers from the Department of Agriculture. The balance of trainees would come from the Departments of Natural Resources, Agrarian Re- form and Local Government and Community Development. The 40 trainers re- quired would be selected from senior line agency staff with field experience. 18. The main objective of the FTCs is to assist the Government in developing a pilot scheme for training farmer leaders through short courses on agricultural technology and management, aimed at achieving increased food production and rural incomes. Courses, which will be of about a week's dura- tion, will be commodity-oriented, would teach up-to-date farm production technology, and would concentrate on communication skills and managerial as- pects of agricultural and rural development programs. A total of 45,000 farmer leaders would be trained at the FTCs during the five-year implement- ation. On their return to the villages, these farmer leaders, with assistance from local extension agents and FTC staff, would establish demonstration farm plots and train farmers from the surrounding areas, thus multiplying benefits of the training. Bank financing would be provided for simple physical facil- ities and equipment, mainly at existing demonstration stations operated by the Department of Agriculture. The trainers needed would be recruited mainly from the Department of Agriculture and would be given necessary training at the proposed NTC. If the proposed pilot scheme is successful, the Govern- ment plans eventually to establish an FTC in each of the 73 provinces in the Philippines. The project would also provide equipment and materials (US$0.8 million) to the Bureau of Agricultural Extension units in the service areas of the six FTCs to facilitate back-up support by extension personnel to FTC- trained farmer leaders and to establish a mode of extension service operations that takes fullest advantage of the village-level contacts established through the farmer leader training. The National Governing Board (NGB), which includes representatives of the agencies concerned with agriculture and rural develop- ment, would be responsible for policy and program formulation for the National,  - ix - Regional and Farmer Training Centers. The NGB would send to the Bank for comments its annual operational plans for the different training centers (para 3.27). 19. Project Management Support (US$0.1 million). Seven man-years of fellowships and study tours would be financed under the project to strengthen staff capability of the Rural Development Section of the Education Implement- ing Task Force (EDPITAF), the project implementation unit. The objective is to develop a core of staff capable of formulating and executing plans in agricultural and rural education and training. Two man-years of fellowships would also be provided to strengthen the staff capability of the Technical Panel for Agricultural Education. 20. Feasibility and Industrial Policy Studies ($USO.4 million). Four and one half years of advisory services would be financed to assist EDPITAF in carrying out feasibility studies for a number of future development projects. At the recquest of the Government and as a part of its efforts to improve its research capabilities in economic policy areas, two years of advisory services would be f'inanced to assist the Philippine Center of Economic Development in conducting a workshop and studies on industrial policy. Project Cost and Financing 21. The total project cost is estimated at US$45.3 million equivalent. This includes a physical contingency of 7% of base cost estimates and an overall price contingency amounting to about 27% of project costs (including physical contingency) to take into account the expected rates of international and domestic inflation. Base costs per man-year of specialists' services and overseas f'ellowships are based on the following: US$55,000 for specialists; US$15,000 for study tour; US$12,000 for doctoral fellowships; and US$10,000 for masters' degree fellowships. The proposed loan would finance the foreign exchange component of the project, estimated at US$25.0 million, or 55% of the total project cost. The balance would be financed from Government budgetary resources. Expenditures for professional services and fellowships incurred after May 1, 1976 are recommended for retroactive financing up to a maximum of US$450,000; these expenditures were necessary to ensure the timely preparation of the project and to initiate the staff development program. Project Implementation 22. The project implementing unit, EDPITAF, in the Department of Educa- tion and Culture, currently in charge of implementing the Second and Third Education Projects, would be responsible for project administration, procure- ment, financial control and liaison with the Bank. The teaching programs of the National and Regional Training Centers and the Farmer Training Centers would be the responsibility of a Secretariat of the National Governing Board in the Department of Agriculture. Key staff of the Secretariat have been appointed and prospective trainers for regional rural training and farmer training centers have been selected and given a two-week orientation training.  x Spe^f-iz cra