Liberia - Fourth Education Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 4010-LBR STAFF APPRAISAL REPORT REPUBLIC OF LIBERIA FOURTH EDUCATION PROJECT November 16, 1982 Projects Department Western Africa Regional Office Education Division 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 Currency Unit = Liberian dollar US$1.00 = 1.00 Liberian dollar (US $ is legal tender in Liberia) FISCAL YEAR July 1 - June 30  FOR OFFICIAL USE ONLY LIBERIA STAFF APPRAISAL REPORT FOURTH EDUCATION PROJECT TABLE OF CONTENTS Page No. Glossary Basic Data I. INTRODUCTION .............................................. 1 II. THE EDUCATION AND TRAINING SECTOR ......................... 1 A. Social and Economic Background ....................... 1 Population ........................................... 1 The Economy .......................................... 2 The National Development Plan ........................ 2 Economic Prospects .................................... 3 The Structure of Employment .......................... 3 B. The Education System ................................. 4 Structure ............................................ 4 Organization ......................................... 4 Main Issues in Education ............................. 4 C. The Government's Strategy for the Sector .... ......... 8 External Efficiency ..................... 8 Planning and Administration of the Education System 8 Access . .............................................. 9 Internal Efficiency and Quality ...................... 9 The Costs and Financing of Education .... ............. 9 D. The Bank Group's Role and Other External Assistance .. 9 Previous-Bank Group Assistance ....................... 9 Bank Group's Strategy for Assistance to Education .... 12 in Liberia Other External Assistance ............................ 12 III. THE PROJECT ....................... ........................ 13 A. Project Summary ...................................... 13 B. Project Components ............................ 13 C. Project Description .................... 15 Educational Planning and Administration and Preparation of Future Projects ..................... 15 Tests and Measurements ................................ 16 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 (cont'd) Page No. Textbook Procurement and Distribution ........... 16 Teacher Training and Upgrading .18 Educational Supervision .............................. 20 School Construction, Equipping, and Furnishing ....... 20 VTC/AITB .................................... 21 Commercial Training ............. . 21 IV. PROJECT COST AND FINANCING PLAN . . . 22 Cost of the Project ........ . ... 22 Financiing Plan ....................................... 25 Project Recurrent Costs ..... . 27 V. PROJECT IMPLEMENTATION ............................. 28 Project Preparation ............................ . 28 Project Management ...... ............................. 28 Working Funds ................................ 29 Specialist Services and Fellowships ................. . 29 Sites ................................................ 30 Procurement ............ . ... 30 Disbursements ............................ 30 Accounts and Audits ................... . ... 31 Evaluation .................................... 31 VI. PROJECT BENEFITS AND RISKS . . .............................. 32 Benefits ............................................. 32 Risks ................................................ 32 VII. AGREEMENTS REACHED AND RECOMMENDATIONS .. ....... 33 Annexes 1. Comparative Education Indicators 2. Structure of the Education System 3. Education Pyramid 4. Cost Summary Table 5. Financing Plan by Project Component and Category of Expenditure 6. Summary of Specialist Services 7. Summary of Fellowships 8. Implementation Schedule 9. Schedule of Disbursements 10. List of Documents in the Project File MAP IBRD No. 16544 This report is based on the findings of an appraisal mission that visited Liberia from March 1 to 12, 1982. The mission members were R. Skolnik (economist), J.C. Laederach (architect), and M. Carroll (consultant on textbooks).  - iii - GLOSSARY ADB - African Development Bank AITB - Agricultural and Industrial Training Bureau CBDTC - Commercial, Business and Domestic Training Center FTI - Forestry Training Institute IEL - Improved Efficiency of Learning Project KRTTI - Kakata Rural Teacher Training Institute LIPA - Liberian Institute of Public Administration MOE - Ministry of Education MPEA - Ministry of Planning and Economic Affairs MYS - Ministry of Youth and Sports PIU - Project Implementation Unit of Ministry of Education STC - Science and Technology Center VTC - Monrovia Vocational Training Center WAEC - West African Examinations Council ZRTTI - Zorzor Rural Teacher Training Institute   - iv - LIBERIA BASIC DATA (1980) Land area 111,369 km. Population 1.86 million GNP per capita US$520 Life expectancy at birth 48 years Literacy Rate 30% Educational Enrollments Level Total Females as % of Total Enrollment Ratio Preprimary 80,215 42 - Primary 147,217 35 52 Lower secondary 32,073 29 26 Upper secondary 19,602 27 17 University 3,987 - - Teaching Staff Level Total Student/Teacher Ratio Preprimary/primary 6,473 35/1 Lower secondary 1,497 21/1 Upper secondary 1,129 17/1 Educational Finance Central Government recurrent expenditures on education (including the Ministry of Education, polytechnical college and two universities) as % of GNP 4.6 as % of total Government recurrent expenditures 19.6   I. INTRODUCTION 1.01 The Bank Group has already financed three education projects in Liberia, and the Bank Group and Liberia have carried out an intensive policy dialogue over the last decade. This dialogue has been especially active since 1979 when the Bank Group carried out a review of education and training in Liberia with the Government and issued an education sector memorandum (Report Number 2620a-LBR, dated November 16, 1979). The Government and the Bank Group discussed that memorandum in detail and those discussions served as the basis for (a) a number of important policy measures taken by the Government in recent years; and, (b) the identification of the proposed project. The Government and the Bank Group also reviewed the sector memorandum with other agencies assisting in the development of human resources in Liberia as a basis for identifying co-financing for the proposed project. The above matters are discussed in greater detail below but they are raised here to provide a clearer context for understanding the origins of the Project. II. THE EDUCATION AND TRAINING SECTOR A. Social and Economic Background Population 2.01 Liberia has a rapidly growing population, estimated at 1.86 million in 1980, with about 42% of the population below age 15. The annual growth rate averages 3.3% overall and 8% in urban areas, where about 30% of the people live. The population is concentrated in the area around Monrovia and in a broad belt extending from Montserrado County northeast to the border with Guinea. 2.02 A small proportion of Liberians are descendants of immigrants of African descent who came from the Western Hemisphere in the 19th century and settled mostly along the Liberian coast. Most of the population are from indigenous tribes; the Kpelle, Bassa, Gio, Kru, Mano and Grebo are numerically the most important and together make up about 70% of the total population. 2.03 Sixteen local languages, from three major linguistic groups, are spoken in Liberia, and multilingualism is common. English is the official language. The majority of the people practice traditional African religions. Christianity and Islam, each practiced by 10-15% of the population, are the predominant non-African religions. 2.04 The health and nutrition of the Liberian population is about the same as in other West African countries, which makes it among the worst in the world. Life expectancy at birth averages 48 years.  -2- The Economy 2.05 The modern sector in Liberia generates about 85% of total GDP and is characterized by enclave industries producing almost exclusively for export. The largest modern sector activities are iron ore mining, which contributes about 30% of GDP, and large-scale production of rubber, which contributes about 5% of GDP. Forestry is also important, generating about 4% of GDP. 2.06 The traditional sector is dominated by subsistence agriculture, which supports about 60% of the population but contributes only about 15% of GDP. This sector has little physical infrastructure or access to capital or improved agricultural inputs. Besides rubber production, the principal crops grown in Liberia are rice, oil palm, coffee, and cocoa. 2.07 From about 1964 to 1970, the average annual real growth rate of the Liberian economy was about 6.4%, which was largely a result of the growth of output of iron ore and rubber. However, from 1970 to 1974 the growth rate declined to about 4.2% and from 1974 to 1978 to less than 1%, largely reflecting a decline in the growth of output of these products. Following the change of Government in April 1980, economic growth was again set back and real GDP is reported to have declined by 4.7% in 1980 and 5.0% in 1981. 2.08 Average per capita income in 1981 was about US$540. Income distri- bution is highly skewed, with 5% of the households receiving about 60% of total private income. The National Development Plan 2.09 The First National Development Plan (1976-80) proposed the following long-term objectives for Liberia's socio-economic development: (a) diversifi- cation of production, (b) dispersion of sustainable socio-economic activities throughout the country, (c) greater involvement of Liberians in development activities, and (d) equitable distribution of the benefits of economic growth. Performance under this Plan fell short of expectations: investment was below the original target and one-fourth of total expenditure during the Plan period was for facilities and buildings for the Organization of African Unity (OAU) conference, which was not included in the original Plan. 2.10 The new Government, which assumed power in April, 1980, reaffirmed the broad objectives of the First National Development Plan and began work on a program of public investment covering the period 1982-86. The main thrust of the Government's present economic policy is to expand the country's produc- tive capacity, especially in agriculture, and to ensure that benefits from economic growth and development are enjoyed by an increasing number of Liberians. The Government is also giving high priority to investments in human resources, which are likely to account for about 20% of the proposed investments in the new Plan.  -3- Economic Prospects 2.11 The Government's financial position deteriorated dramatically over the last two years, mainly because of unrestrained Government spending during a period of declining revenues from iron ore. At the same time, the cost of implementing projects in the 1976-80 development plan increased from about US$415 million to US$585 million, and the Government was forced to postpone allocations for several projects. It has also entered into several agreements with the International Monetary Fund and has twice received debt relief from the Paris Club. 2.12 In the next few years, the Government will need to reduce its recurrent expenditures and will depend heavily on external borrowing to finance its capital budget. The medium-term economic prospects for Liberia are clearly dependent on the strength of world demand for Liberia's main exports, and on the Government continuing over the next few years to imple- ment a number of recently adopted adjustment policies. These include: reducing the size of the budgetary deficit, restraining new commercial borrowing, mobilizing greater savings, attracting new foreign investment, maintaining an open economy, and improving overall economic management. Although Liberia has very severe short-term liquidity problems, restoration of economic growth should be possible if the Government continues to follow the course outlined above. The Structure of Employment 2.13 About 60% of the population depends for its livelihood on sub- sistence agriculture. The number of people in wage employment or who are self-employed totals about 150,000. There is little reliable data on the number working in the informal sector or on those who are unemployed. 2.14 The largest wage-employing sector is monetary agriculture, forestry and fishing, which employs about 51,000 people, or 34% of total monetary sector employment. The majority of those employed are rubber-tappers working for concessionnaires and locally owned large farms. The Government employs about 26,000 people, equal to 17% of total monetary sector employment. The mining sector provides work for about 14,000 people, who make up 9% of total monetary sector employment and work almost exclusively for concessionnaires. 2.15 There are about 6,100 registered expatriate workers, representing 4% of monetary sector employment. About 70% of these workers are in mana- gerial, professional and technical occupations, The number of unregistered alien workers is estimated to be more than 30,000, but there is little informa- tion on their employment. 2.16 In terms of occupational classification, about 15,000 people are engaged in managerial, professional, and technical occupations other than teaching, and 9,000 are teachers. About 60,000 are clerical, sales or service workers. Of the more than 300,000 people employed as agricultural or production workers, about 15,000 are skilled and 45,000 are semi-skilled workers.  -4- B. The Education System Structure (see Annex 2) 2.17 The formal education system in Liberia offers one or two years of pre-primary education and six years of primary education, followed by three years of lower secondary and three years of upper secondary education. Most university-level programs require four years of study. Agricultural, voca- tional and technical training programs are of varying duration and are offered at lower, middle and upper levels. Organization 2.18 The Ministry of Education (MOE) is responsible for the operation of the pre-primary, primary and secondary school programs. The MOE also oversees two rural teacher training institutes, a polytechnical institute and several vocational training programs. The University of Liberia and Cuttington University College, both autonomous institutions, are responsbile for their own university-level education. The Ministry of Youth and Sports (MYS) plays an important role in the operation of lower- and middle-level vocational training. The Agricultural and Industrial Training Bureau (AITB) is responsi- ble for coordinating the training conducted by various public and private institutions. 2.19 Under the authority of the appropriate Government agency, conces- sions, proprietary groups, and non-governmental organizations provide education and training of all types and at all levels. About 35% of the primary school places, 40% of the lower secondary places and 45% of the upper secondary places are privately operated. Several vocational training programs and Cuttington University College are private also. The Government generally provides financial assistance to privately operated educational programs and the cost of doing this is considerably less than if the Government were to fully finance those programs itself. Main Issues in Education 2.20 The Government has made substantial progress during the past two decades in improving access to education and in establishing education and training programs to meet priority manpower requirements. From 1968 to 1980 for example, enrollments in pre-primaryand primary schools increased from 120,000 to 228,000 and lower and upper secondary school enrollments increased from 13,000 to 52,000. These are equal to average annual growth rates of 6% at the primary and 12% at the secondary level. In addition, the Government tripled the annual output of trained primary school teachers, established agricultural training programs for lower- and middle-level personnel, and set up vocational and technical training programs for all levels. 2.21 Establishing a wider base for education and training, however, is only a first step in meeting the demand for literate and skilled manpower in the 1980s and beyond. Despite the tremendous growth in enrollments, the gross enrollment ratio at the primary level is only about 52%. Furthermore,  the education system is highly inefficient and characterized by low-quality institutions unable to produce sufficient numbers of qualified graduates in key manpower areas. 2.22 Thus, the main issue facing the education system is how the Govern- ment, in this period of financial constraints, can improve the efficiency and quality of the system while simultaneously continuing to expand access to primary education. This issue is broken down into its major components and discussed below. 2.23 External efficiency. There are three main problems concerning the external efficiency of the education and training system in Liberia. First, Liberia will not be able to raise the income levels of rural people signifi- cantly without raising their level of knowledge and their skills; hence, the rural population needs to have better access to basic education. Second, the quality of education and training programs has been low, and, partly as a result, the productivity of Liberian workers is generally much lower than desirable. Thus, there is a pressing need to upgrade the quality of many education and training programs. This is particularly true for a number of middle-level service occupations such as clerical, secretarial, and book- keeping work, and for industrial craft skills such as carpentry, masonry, electrical, and plumbing work. While the education system produces a suffi- cient number of graduates per year to meet employer demand in all of these areas, the quality of the graduates is lower than that required by many employers who either hire the graduates for a lower level job than that for which they were trained, or hire expatriate workers for the required position. Finally, the education system does not produce enough graduates to meet the demand for some specific skills. This is especially true in the professional fields of engineering, medicine, and secondary school teaching. 2.24 Planning and administration of the education system. In recent years the Government has considerably improved the planning and administra- tion of the education system. Under three Bank Group assisted education projects, for example, educational, university, and manpower planning units were established and then strengthened. In addition, the MOE was reorganized, many operating procedures were improved, and numerous MOE staff were upgraded in administration, accounting and procurement, as well as in a variety of technical areas related to the Ministry's role. Finally, the Government recently established the AITB (para. 2.18) to coordinate training activities. 2.25 The base from which these improvements were made, however, was extremely weak and further improvements in a number of areas is a prerequisite for improving the quality and efficiency of the education system. First, the Government needs to better coordinate educational planning and manpower planning. The Ministry of Planning is not yet playing the role intended for it in manpower planning and, as a result, there is room for improving the collection and analysis of manpower data, the linking of proposed investments with manpower requirements, and the monitoring and evaluation of investments in education and training. Second, the MOE still has a number of important weaknesses in its work in general administration, accounting, and personnel administration which hamper its efficient achievement of educational objec- tives.  -6- 2.26 Access to education. As mentioned in para. 2.21, the gross primary school enrollment ratio is only about 52%, which is below the average for West Africa. Moreover, access to education varies widely; for example, the primary school enrollment ratio ranges from 30% in Bong CouniLy to more than 60% in three other counties. Although there are no formal barriers to school- ing for girls, their enrollment ratios are disproportionately low at all educational levels, declining relatively as one moves to the higher levels and into rural areas. Girls constitute less than 40% of total primary school enrollments and only about 25% of primary school enrollments in most rural areas. In addition, girls make up only about 30% of total secondary school enrollments. 2.27 Between 1969 and 1979, enrollments in lower secondary education increased at an average annual rate of 12%, and the progression rate from primary to lower secondary school is now about 75%. Both of these rates are very high by West African standards and very high in light of the Government's financial capacity. Hence, it might be more equitable and efficient to slow the growth of enrolLments in secondary education and to use a relatively larger share of the MOE's resources to expand primary education. It might also be more efficient to direct a larger share of the resources allocated to secondary education toward qualitative improvements rather than toward the expansion of secondary education. 2.28 Quality and internal efficiency. The internal efficiency and quality of the formal education system are low. For each group of 1,000 students who enter pre-primary school, only about 600 reach Grade 1, 250 reach Grade 6, 175 reach Grade 9, and 90 graduate from upper secondary school. More than half of those who enter pre-primary school leave before acquiring basic literacy. The low efficiency of the system is reflected not only in wastage but also in the extent to which remedial programs are offered at every level; this is particularly true in mathematics and science. 2.29 A major cause of the low quality of education is the lack of text- books, educational equipment, and other teaching materials. More than 60% of the students have no textbooks of any kind. In addition, fewer than 15% of the students have access to laboratory equipment for science or expendable materials for industrial arts. Finally, throughout Liberia, there are schools without adequate school furniture and simple equipment such as blackboards, chalk, erasers, and audio-visual teaching materials. 2.30 Under the Second Education Project (Loan 1266T-LBR), the Government has begun to improve its capacity for developing and printing educational materials, but so far few new materials have been put into use. This is primarily because of the Government's difficulty, until recently, in resolving policy issues relating to textbooks, such as the role of private publishers and printers, means of selecting texts, and a financing plan for a textbook program. In addition, the Government was unable to establish a textbook procurement and distribution system or a program for training teachers how to use textbooks.  2.31 Another factor contributing to the low quality of education is the shortage of well trained teachers. Although the annual output of trained teachers for the primary level has increased over the past few years to about 250, the present output is about 100 less per year than the number required to sustain a 5% rate of growth of enrollments at the primary level, as the Government plans. In addition, the Government has not been able to establish an effective in-service program to upgrade teachers. About 30% of the primary school teachers have not completed secondary school and only about 30% of all primary teachers have had pedagogical training. Furthermore, qualified primary and secondary school teachers are unevenly distributed; about 50% of those who have had pedagogical training are teaching in Monrovia. 2.32 Improving the system of educational supervision is also important, especially in view of the poor qualifications of the teaching staff and the general lack of textbooks. The Government has made a start in this direction under the second project by creating a new supervision framework based on three geographical regions, but supervisory staff are still centralized in Monrovia, with little logistical support for field staff, and there are not enough trained supervisors for staffing a decentralized supervision network. 2.33 The Government, under the Second Education Project, did upgrade the staff of the Testing Division of the MOE. However, in recent years, the Liberian Branch of the West African Examinations Council (WAEC) has taken over the work of that division, and other testing and evaluation work, as well. WAEC lacks the equipment, materials and staff necessary to work effectively, and further improvements in educational testing will require linking the pre- paration of examinations more closely with curriculum development, strength- ening the work of the Liberian Branch of the WAEC, and providing teachers with better training in testing and evaluation procedures. 2.34 Education cost and financing. In terms of the costs and financing of education, the Government is following a number of sound policies. First, there is a long tradition in Liberia of encouraging private sector participa- tion in education and training (para. 2.19). Second, Government has always asked parents to contribute to publicly supported education through the provision of land for schools, the payment of modest school fees (recently eliminated), and payment for textbooks, uniforms, and copybooks. Third, the Government has tried over the last few years to to reduce excessive public subsidies per student at some private institutions, to allocate foreign fellowships more closely in line with manpower requirements and the ability of students to pay for their own education, and to introduce additional cost recovery mechanisms into the education and training system. 2.35 Despite these positive measures, a number of cost and financing issues continue to confront the education sector. First, the Government has not provided sufficient recurrent financing to publicly-assisted education and training programs. The Government's recurrent expenditures on education over the last decade have been low relative to the expenditures of other West African countries and have averaged about 14% of total Government recurrent expenditure and 3% of GNP. Second, funding for textbooks, equipment and other teaching materials has been inadequate, averaging only about 2% and 2.5%,  -8- respectively, of the recurrent unit cost of primary and secondary education. Finally, the relatively low public expenditure on education is heavily biased toward post-secondary education, to which about 25% of the total public expenditure on education has been allocated over the past few years. While even some of the post-secondary programs lack adequate *financing, this pattern of expenditure is not consistent with the priority the Government has assigned to other areas of education and training. C. The Government's Strategy for the Sector 2.36 The Government's strategy for education and training is set out in the First National Development Plan (para. 2.09) and the National Educa- tion Plan (1978-90). The Government aims to focus on (a) qualitative improve- ments, (b) the development of vocational and technical education to meet key manpower requirements, (c) the strengthening of educational planning and administration, and (d) the expansion of primary education. The specific objectives of the Government's educational policy and the means by which it seeks to realize those objectives are noted below and related to the issues discussed in paragraphs 2.20 to 2.35, above. External Efficiency 2.37 The Government plans to improve external efficiency primarily by improving the quality of education and training programs, by upgrading teachers, and by providing educational materials. The Government would address quality issues for the primary level mainly through the proposed project and for the secondary level through a program it is now developing. In regard to manpower requirements at the middle level, the Government will'selectively expand enrollments in key areas and put more emphasis on science and technology in general education. Government will also try to make several newly established institutions for industrial training fully operational and consolidate and upgrade publicly supported commercial training, the last part of the training system in need of reorganization. These aims would also be addressed through the proposed proj'ect. The Government is financing largely on its own a university development program which focuses on improving the efficiency'of the university and on critical manpower needs at the higher levels for science, engineering, medicine and education. The proposed project, however, would help the university to plan the next phase of development of its teacher education programs. Planning and Administration of the Education System 2.38 The Government plans to continue strengthening manpower planning in conjunction with UNDP/ILO assistance with manpower and demographic survey work. It would also improve manpower planning and the operation of skill training programs by mobilizing the newly created AITB more fully through the proposed project (para. 2.18). The Government also hopes, through the proposed project, to improve the institutional capacity of the MOE by strengthening its work in planning, administration, and'educational supervision.  -9- Access 2.39 The Government plans to continue increasing access to primary education as rapidly as feasible, while aiming at a growth rate of enrollment of about 5% per year. On the one hand, the Government will finance a modest school construction program, such as the one that would be included in the proposed project. On the other hand, the Government will continue to encourage private school building efforts. The Government will address issues of regional and sexual equity by focusing expansion efforts in those areas of the country which are the least well served. The Government plans to slow the rate of expansion of secondary education. Internal Efficiency and Quality 2.40 The Government will make a concerted effort to improve the quality of education and training programs in order to improve internal as well as external efficiency. In addition to taking the measures noted in para. 2.37, the Government, through the proposed project, will strengthen the educational inspectorate and the educational examinations system. The Government will also begin in the next school year to eliminate publicly supported preprimary education, which has proved to be highly inefficient. The Costs and Financing of Education 2.41 The Government plans to continue the measures it has begun recently to bring private education subsidies per student more closely in line with public education subsidies per student (para. 2.34). It also intends, partly through the proposed project, to: (a) continue mobilizing community participa- tion in school building and maintenance; (b) establish new cost recovery methods throughout the education and training system; (c) lower the unit costs of facilities and educational materials by improving their design and/or the means by which the Government procures them. Taken together, these measures are expected to increase the financial resources available to the Government for education, and to reduce the costs to the public of future education investments. D. The Bank Group's Role and Other External Assistance Previous Bank Group Assistance 2.42 Over the past decade, the Bank Group has been the largest supplier of funds for education and training in Liberia, providing US$17.5 million for the three education projects undertaken so far (para. 1.01), and more than US$10.0 million for project-related training. The three education projects aimed broadly at (a) improving the Government's capacity for planning and administering manpower development; (b) improving access to education in rural areas through the construction of primary schools in those areas and through an adult education program; (c) improving the quality of education through  - 10 - assistance for curriculum development, educational publications, testing and evaluation, and teacher training; and (d) making education and training more relevant to the country's manpower requirements through support for expanded training in agricultural, forestry and vocational skills. 2.43 The First Education Project was financed by Credit 305-LBR for US$7.2 million, which became effective in November 1972 and was closed on December 31, 1979. The main objectives of the project were to construct, furnish and equip two diversified secondary schools and a college of agricul- ture at the University of Liberia, and to expand, equip, and furnish a teacher training institute. The project also aimed at developing the Government's capacity for educational, university, and manpower planning, project manage- ment, and secondary school administration. 2.44 The Project Performance Audit (Report No. 3345, dated February 25, 1981) concluded that the project met most of its enrollment objectives and has had a positive impact on the development of manpower and educational planning and project management. These objectives were accomplished with a cost overrun of about 6% and a time overrun of about 40%. 2.45 On the less positive side, the project-financed facilities were constructed to a lower standard than planned at appraisal due to unanticipated cost increases. In addition, while the secondary schools constructed under the project are operating high quality general education programs, they are not effectively carrying out the vocational and agricultural programs which they planned. This is primarily due to changing and unclear objectives of the practical streams and weak links between curricula for those streams and the rest of the education system. 2.46 The Second Education Project is being financed by Loan 1266T-LBR for US$4.0 million, which became effective in July 1976. The project was completed by the revised Loan Closing Date of August 31, 1982, about two years behind schedule. The main components of the project are (a) the con- struction, equipping and furnishing of 40 primary schools in rural areas; (b) the expansion of a teacher training institute; and (c) institutional development in curriculum development and textbook preparation, educational planning and administration, testing, and adult education. 2.47 The project has achieved most of its physical objectives. The teacher training institute was expanded as planned, and 38 of the primary schools were built, the smaller number due to higher than anticipated costs. In addition, the technical assistance and fellowship programs have been fully implemented and as a result the MOE has been reorganized and its planning, curriculum development, administration and project management capabilities improved. 2.48 The project, however, has been less successful than planned in three important ways. First, the primary schools are not making use of the special facilities provided for "practical subjects" and are not generally serving as a base for adult education, both of which were intended initially.  - 11 - Second, the impact of the project on the administrative capacity of the MOE, while substantial, has been less than intended due to a lack of coordination between the fellowship and technical assistance programs and a failure to spread the results of the work of the technical assistance specialists more widely in the MOE. Finally, the textbook component was not fully implemented due to continuous shifts in Government policy and failure to deal with some policy questions until recently (para. 2.30). 2.49 The Third Education Project is financed by Loan 1417-LBR for US$6.3 million, which became effective in July 1977. The project is expected to be completed by the revised Loan Closing Date of December 31, 1983, about two years behind schedule. The main objectives of the project are: (a) to establish science and technology centers (STCs) at four secondary schools, (b) to establish a new Forestry Training Institute (FTI), (c) to establish a new Vocational Training Center (VTC), and (d) to establish an Agricultural and Industrial Training Bureau (AITB). 2.50 Most project elements have been implemented satisfactorily, although with delays of one to two years caused largely by late construction site changes and financial difficulties faced by the Government during the past year. The AITB, the FTI and the VTC are operating and three of the four science centers will be ready to operate over the next few months. The construction of the fourth STC was delayed considerably by site problems but it should be ready to operate fully at the beginning of the next school year in March 1983. The FTI component, in particular, has been fully implemented and the institute is already achieving most of the objectives which were set for it. 2.51 The main problems facing the project are that the AITB and the VTC will not be fully operational by the end of the project. The main reasons for this are that: (a) the initial contractor for the VTC and AITB defaulted; (b) the subcontractor for the VTC who was to finish the civil works suffered financial losses as a result of the 1980 coup and took much longer than planned to complete his work; (c) the supplier for the VTC sent used equipment to Liberia which was not specified, instead of new equipment as specified; and (d) technical assistance specialists, who were recruited in accordance with the initial progress of civil works and the supply of equipment, were forced by the problems which arose to help the Government deal with the above issues instead of being able to help get the institutions operating as planned. Hence, the AITB and VTC need additional assistance if they are to meet the objectives set for them under the Third Education Project. 2.52 Overall, the three education projects have aided the development of education and training in Liberia considerably. They have had a positive impact on enrollments in the areas they have addressed. They have also had a substantial impact on developing the technical and administrative capacity of the MOE, and on helping Liberia to address manpower requirements at all levels, particularly in the fields of education, agriculture, forestry and industrial skills. Furthermore, the implementation time for these projects has been about 25% less than for comparable projects elsewhere in West Africa. The experience gained in implementing the projects also points out a number of  - 12 - lessons: (a) given the narrow base from which it has started, the institu- tional development of the education system will require long-term assistance; (b) any attempt to establish a textbook scheme will have to be based on a comprehensive program and should not depend on the MOE for printing services; (c) education projects can best be implemented through decentralized manage- ment through normal agency channels with the Project Implementation Unit (PIU) coordinating all financing, procurement, and accounting activities. Bank Group's Strategy for Assistance to Education in Liberia 2.53 Over the long term, the Bank Group should provide further assistance for institutional development, qualitative improvements at all educational levels, the expansion of access to primary education, and the strengthening of middle-level and professional programs, such as those providing commercial, industrial, agricultural and teacher training. Since this assistance over the next decade will be in the context of severe fiscal constraints, the Bank should give high priority to improvements in efficiency. 2.54 Over the short term, the Bank Group's assistance should focus on improving the quality and efficiency of education and training programs and on continuing to support a sustainable growth rate in primary school enrollments. With enrollments at all levels of education and training having increased enormously during the past 20 years, the success of the education system now depends primarily on the Government's making its education and training programs more efficient. Other External Assistance 2.55 In addition to the World Bank, USAID, the EEC, and the African Development Bank (ADB) have also provided substantial financing for manpower development in Liberia. USAID is financing a pilot project aimed at develop- ing low-cost instructional materials and training para-professional primary school teachers. USAID is also financing important training programs in the agricultural and health fields. The ADB is financing a project to develop lower secondary education in the rural areas of southeastern Liberia. The EEC is financing the development of a technical college and project-related training in a number of sectors. 2.56 Non-governmental aid agencies have also been active in assisting manpower development in Liberia. For example, construction teams working under CARE built the rural primary schools financed by the Second Education Project and CARE also made an important financial contribution to that project.  - 13 - III. THE PROJECT A. Project Summary 3.01 The proposed project aims at consolidating the outcomes of the three previous Bank Group assisted education projects and helping the Government implement the next phase of a sound development program for education and training. The main objectives of the project would be to assist in strength- ening the administration of education, improving the quality and efficiency of primary education, expanding access to primary education, and making key parts of the publicly supported skill training network fully operational. 3.02 The accomplish these objectives, the project would finance: (a) an institutional development program for the MOE and the West African Examinations Council; (b) the procurement and sale of about 1.9 million low-cost textbooks to primary school students during the life of the project; (c) the upgrading of about 2,250 primary school teachers and the strengthening of the university department of education; (d) the strengthening of the educational inspectorate and the construction of three regional education centers; (e) the establishment of 6,624 primary school places; (f) the furnishing and equipping of 180 existing primary school classrooms; (g) the strengthening of the AITB and VTC; and (h) the consolidation of three existing training centers into a new 215-place commercial training center. B. Project Components 3.03 The project would be implemented during the six-year period 1983-88, and would consist of the following components: Part I: Institutional Development (a) Educational planning and administration and preparation of future projects. Technical assistance, auditing services, fellowships, equipment, vehicles, and operating costs to strengthen the MOE's capacity for educational planning, administration, project prepara- tion and project management; and  - 14 - (b) Tests and measurements. Technical assistance, fellowships, equip- ment and vehicles to strengthen the Liberian branch of the West African Examinations Council (WAEC). Part II: Primary School Development (a) Textbook procurement and distribution. Technical assistance, fellowships, office equipment and furniture, and the purchase of textbooks and transportation services to execute a textbook program for the primary level; (b) Teacher training and upgrading. Technical services provided by the two universities in Liberia to upgrade about 2,250 primary school teachers. To help the University of Liberia to better carry out its teacher training work, the project would finance equipment and pedagogical materials, fellowships, and technical assistance for the University's Department of Education; (c) Educational supervision. Technical assistance and fellowships to strengthen the school inspectorate. The project would also finance the construction, furnishing, and equipping of three regional education centers and related costs of construction supervision; and -(d) School construction, furnishing and equipping. Construction, furnishing, and equipping of about 24 new primary schools in rural areas and the related costs of construction supervision. The project would also finance the furnishing and equipping of about 30 existing primary schools which are now without adequate furniture or equipment. Part III: Skill Training (a) AITB and VTC. The project would finance technical assistance to strengthen the AITB. To make the VTC fully operational, the project would finance some minor civil works, technical assistance, and consumable teaching materials; and (b) Commercial training. Architectural fees, construction, equipment, furniture, technical assistance, and fellowships to establish a new 215-place commercial training center in Monrovia.  - 15 - C. Project Description I. Institutional Development Educational Planning and Administration and Preparation of Future Projects 3.04 To assist in further strengthening the work of the MOE in educa- tional planning and administration, in project preparation, and in project management, this project would finance: office equipment, vehicles, 10.5 staff-years of technical assistance, 24 staff-years of fellowships, the cost of local consultant services to carry out about 20 training workshops, auditing services, and operating costs related to project management. This component follows up on the institutional development component of the Second Education Project (paras. 2.46-2.48). 3.05 A project-financed specialist in educational administration (4.5 staff-years) would help the MOE to improve its record-keeping and operating procedures, particularly for accounting, procurement and personnel management. The specialist would also assist the MOE in coordinating the technical assis- tance and fellowship programs. In addition, a project-financed team of consultants from the University of Liberia and a project-financed specialist in training would help the MOE to organize and conduct, over a three year period, about 20 workshops to train staff in improved operating methods in these critical fields. This in-service training would be complemented by 14 staff-years of fellowships in accounting, procurement and personnel management. 3.06 The specialists in administration and training, with the help of the university consultants would also assist in strengthening the MOE's planning bureau and would conduct workshops to improve MOE work in school location planning, cost analysis, and evaluation. The project would also finance 4 staff-years of fellowships for two MOE staff in fields related to educational planning. 3.07 To facilitate the operation of the workshop program, the Government gave assurances during negotiations that it would furnish to IDA for review by March 31 of each project year (a) a list of proposed workshop topics, course outlines, and participants for the following school year, and (b) an evaluation of the workshops conducted during the preceding 12 months. 3.08 The MOE needs equipment to satisfactorily maintain planning, accounting, and personnel information on a satisfactory basis. To address this need, the project would finance the purchase of accounting equipment and a microcomputer. A project-financed specialist in microcomputer applications (3 staff-years) would help the MOE to further improve its record-keeping and to establish a computerized information system for educational planning and administration. The project would also finance 6 staff-years of fellowships in fields related to computing for four persons who would work with the MOE Planning Bureau after their return from training.  - 16 - 3.09 To improve the administration of education projects, the project would also finance the work of independent auditors who would assist the PIU in establishing accounts for the proposed project and improving PIU accounting practices and would also carry out five annual audits. The project would also finance office equipment and vehicles for the PIU and some of the operating costs associated with the management of the project. To assist in developing future education projects, the project would finance 2 staff-years of services of educational and architectural specialists. Tests and Measurements 3.10 The project would finance equipment, about 2.5 staff-years of tech- nical assistance, and about 8 staff-years of fellowships to strengthen the Liberian branch of the West African Examinations Council (para. 2.33). To improve the quality of the teaching force, some of this assistance would be directed toward developing an examination which would be used to recruit teachers. To help the MOE to identify educational priorities, the Council would also assess the results of the secondary school entrance and leaving examinations by school and region during the project. II. Primary School Development Textbook Procurement and Distribution 3.11 To establish a national textbook program for the primary grades, the project would finance the procurement of textbooks and related teachers' editions, the cost of transporting the books to sales agents, office equip- ment and materials, 3 staff-years of technical assistance, and 6 staff-years of fellowships. The program would be carried out in two parts: (a) a pilot phase from July 1, 1982 until April 1983; and (b) a four-year implementation phase aimed at establishing an ongoing national textbook program by the end of the project. 3.12 The textbook program's aim will be to provide low-cost textbooks which conform to the Liberian curriculum. The program would be implemented along the following lines: (a) The Government would invite publishers to submit textbook proposals for specific grades and subjects which meet a set of minimum criteria described in the invitation; (b) In accordance with these criteria, the Textbook Committee would pre-qualify publishers on the basis of textbook proposals they submit; (c) The Government would then procure textbooks for particular subjects and grades on the basis of international competitive bidding among the pre-qualified publishers; (d) The textbooks would be sold at a set price through commercial agents representing the MOE in all counties in Liberia, in numbers proportionate to each county's share of total primary school enrollments;  - 17 - (e) The sales price would be set at the cost of the book to the Govern- ment plus about 25 cents; (f) The program would ultimately be self-financing: all revenues would be put into a special interest-bearing account from which the next round of textbooks would be purchased; and (g) The stock and flow of textbooks and funds would be audited independently twice each year. 3.13 During the program's pilot phase, the Government aims to sell about 110,000 textbooks for English, mathematics, and social studies to about 30% of the students in Grades 1-3. The Government would purchase books for the pilot phase only by negotiating prices with the publishers of books which the Textbook Committee has selected from the approved Government book list. All other aspects of the pilot phase would be as noted in (d) to (f) above. 3.14 During the implementation phase of the program, the Government plans to procure and sell inexpensive editions of about 1.8 million existing textbooks to students in Grades 1-6 for English, mathematics, science, social studies and reading. This represents one book per subject each year for about 66% of all students attending primary school. Given the fact that a market in used books will probably develop, almost all primary students should be able to buy either a new or used book by the end of the project for their five key subjects, at a cost per book of 50-75% less than the cost of the few books available now. The total value of textbooks purchased under the project would be about US$3.5 million, including contingencies. 3.15 Since the program would be set up on a self-financing basis and the number of textbooks purchased would increase each year, the project includes about US$2.1 million for purchase by the Government of textbooks during the pilot phase and during the first three years of the implementation phase. The Government's textbook fund would finance the cost of purchasing textbooks thereafter from the revenues it has collected. 3.16 The MOE has already appointed a Textbook Committee (para. 3.12). To carry out the day to day operation of the textbook program, the Government has established a textbook office within the MOE and has staffed it with a qualified local textbook officer and an accountant. The project financed specialist (2 staff-years) began his work in Liberia in September, 1982 under PPF financing and will assist the textbook officer in carrying out the procure- ment process, arranging purchase and distribution, maintaining accounts for the textbook program, and monitoring the operation of the program. The project would also finance 1 staff-year of consultant services to be spread out over the last three years of the project. The purpose of these con- sultancies would be to help the MOE to follow up further on the above textbook program areas of operation. The project would also finance 4 staff-years of fellowships to train local staff in textbook publishing and related areas and 2 staff-years of fellowships to train one MOE staff member in curriculum development.  - 18 - 3.17 In view of the lack of experience in Liberia with the operation of a textbook program and the desire to create a self-financing scheme, the Government gave assurances during negotiations that it would: (a) estab- lish by January 1, 1983 for the textbook fund a special interest bearing account in a bank acceptable to IDA, and would review with IDA the mechanisms for operating the textbook fund; and (b) furnish to IDA by June 30 and December 31 of each project year independent audits of the use of funds and textbooks for the program. The audits would be carried out twice a year since most books will be sold at the beginning of the first and second semesters. The IDA credit would finance the audit fees. 3.18 As noted earlier (para. 2.55), USAID is financing a pilot project (Improved Efficiency of Learning - IEL) in the development of programmed learning materials. These materials will be prepared for Grades 1 to 6 over the next two years and then evaluated in comparison with other materials. The Government, USAID, and IDA will work closely together to examine the extent to which IEL materials are shown over time to be cost-effective as the main materials or as supplementary materials for Grades 1 to 6. In the meantime, the Government, through the proposed IDA project, would establish a system of textbook procurement and teacher training that could be used with a variety of learning materials the Government might purchase or develop over the next decade, including IEL, if that should be the case. Teacher Training and Upgrading 3.19. The project would finance the upgrading of about 2,250 primary school teachers, equal to about 35% of the total number of primary school teachers, and help to establish an institutional arrangement within the MOE for continuous in-service teacher training. The upgrading courses would be conducted at the four institutions in Liberia where teachers are trained: the University of Liberia, Cuttington University College, and the Kakata and Zorzor Rural Teacher Training Institutes (KRTTI and ZRTTI). Each university would be responsible for its own courses and for the courses which would be held at the teacher training institute closest to it. The MOE would negotiate contracts with the two universities for delivery of the training services, which would be financed under the project. 3.20 In consultation with the MOE, a team of educators from the above institutions would prepare detailed programs of study based on a curriculum for in-service teacher training which the MOE produced in 1980. Special attention would be given to the use of textbooks. Educational supervisors would participate in all of the in-service courses to ensure more relevant training and to promote improved relations between the inspectorate and the teaching corps.  - 19 - 3.21 The courses would be offered for two months each year, during the long school vacation, with total outputs over a four-year period, as follows: Minimum Qualifications Exit Total Institution for Entry Certificate Output University of Liberia Lower secondary "B" 210 Cuttington University Upper secondary "B" 420 College KRTTI Lower secondary "C" 560 ZRTTI Upper secondary "C" 1,060 To encourage broad participation in the programs, the participants would be given free room and board, a weekly stipend of $7, and a travel allowance for one trip to and from their teaching post. The cost of these incentives would be included in the contract for delivery of the training programs. 3.22 To allow the University of Liberia to play a more effective role in pre-service and in-service education of teachers for both primary and secondary schools, the project would finance pedagogical materials, 26 staff-years of fellowships, and 1 staff-year of technical assistance for the University's Department of Education (W.V.S. Tubman Teachers' College). The fellowships would be used to train four university staff members to the Ph.D. level and two to the M.A. level. In addition, the University would recruit five prospec- tive staff members and train them to the M.A. level. The university plans to use these fellowships, therefore, as a basis for increasing the number of staff of the Department of Education from 15 to 20 and the number of students in that department from about 300 to 400. 3.23 The provision of pedagogical materials would allow the University to improve its training programs in primary and secondary education and would complement the training materials purchased by the University under the First and Third Education Projects (Cr. 305-LBR and Ln. 1417-LBR). The project- financed specialist (1 staff-year) would be a university facilities planner. He would help the University of Liberia to review in light of present economic constraints its long range development plan which was produced under the First Education Project (para. 2.43). He would also help to review plans for program development and relate them to future needs for facilities at the new University of Liberia campus in Fendell, particularly facilities for the Department of Education. 3.24 To assist the MOE to better plan and execute teacher training programs in the future, the project would finance 6 staff-years of fellowships to train three MOE staff to the M.A. level in teacher education and guidance.  - 20 - Educational Supervision 3.25 To help strengthen the school inspectorate, the proiect would finance the construction, furnishing and equipping of three ragional education centers and would also provide equipment, 1 staff-year of specialist services and 16 staff-years of fellowships. The fellowships would be used to upgrade eight of the present county and district school supervisors through courses offered at the M.A. level. The project-financed specialist in educational supervision would assist in reviewing the organization and operations of the inspectorate. In addition, at least two of the workshops included in the MOE institution-building component (paras. 3.04-3.09) would aim at upgrading the performance of the inspectorate staff. 3.26 One regional educational center would be constructed in each of the three educational supervision regions which were established under the Second Education Project. They would assist the MOE in decentralizing some of its administrative and supervisory functions. The centers would have office space for the Regional Chief Supervisor, a District Officer, a County Officer, and staff responsible for statistics, personnel and procurement. A Regional Materials Center which has been assisted by UNICEF and the U.S. Peace Corps and which is developing simple learning materials such as audio-visual aids, would also be housed in each center. Finally, each center would have a small conference room where supervisors would conduct regular works'hops for school principals and teachers. The Division of Educational Facilities of the MOE (DEF) is designing the centers and would supervise their construction. The project would finance the cost of this work, including office supplies, vehicles for site supervision, and the salaries of clerks of works. School Construction, Equipping and Furnishing 3.27 The project would finance the construction, equipping and furnishing of 24 primary schoo:Ls. Taking account of lessons from the Second Education Project (paras. 2.47-2.48), each school would have six classrooms of 46 places each (a total of 276 places), a storage room, a principal's office, an outdoor kitchen, and two outdoor toilets. 3.28 The Government plans over time to: (a) replace dilapidated primary schools; (b) replace expensive rented facilities with permanent school buildings; (c) increase access to primary schools; and (d) equalize access to primary education throughout Liberia. To assist in addressing these objec- tives, 19 of the schools, with 5,244 pupil places, would replace rented or dilapidated structures which now house about 4,000 pupils. Five schools, with 1,380 places, would be built in areas where there is now no primary school. Project-financed schools would be built in rural areas of each county in numbers proportionate to each county's share of primary school enrollment. This component would allow primary school enrollment to grow by about 2,600, or about 1%. The project would finance a total of 6,624 student places, equal to about 3% of the present number of primary school places.  - 21 - 3.29 The schools would be built by private contractors. However, as in the second project, the communities in which the schools are to be built would provide at least 25 acres for the school site and its garden and would also be responsible for clearing the site and maintaining the school on a regular basis. The DEF has designed the schools and would supervise their construction and the project would finance this supervision work, including office materials, vehicles, and the salaries of clerks of works. 3.30 The project would also finance the furnishing and equipping of about 30 existing schools which are also located in rural areas. Furniture and equipment would be provided to schools that have adequate buildings but lack satisfactory furniture and equipment. III. Skill Training VTC/AITB 3.31 VTC. The project would finance minor civil works, a stock of con- sumable materials, 3.5 staff-years of technical assistance, and 2 staff-years of fellowships to make the Vocational Training Center financed under the Third Education Project fully operational (para. 2.51). The civil works include the fencing of the VTC/AITB campus and the installation of security bars on windows. Project-financed specialists in apprenticeship programs and in electrical training (18 staff-months each) would assist VTC staff in launching the center's program of study. A project-financed equipment specialist would make two visits of three months each to assist in improving the VTC's capacity to install, operate and maintain equipment. The project-financed fellowships would upgrade four VTC assistant instructors who are not yet formally trained in their field. The project would also finance the consumable materials required for the center's full operation during the life of the project. 3.32 AITB. To assist in strengthening the AITB (para. 2.49) the project would finance 36 staff-months of technical assistance. One specialist in job analysis and trade testing, (18 staff-months) one in supervisory training (6 staff-months), and one in agricultural training (1 staff-year) would help the AITB to launch its activities in these areas. The project would also finance a modest amount of office equipment and materials and technical books for the AITB. Commercial Training 3.33 The project would finance architectural fees, construction, furni- ture, equipment, vehicles, 5.5 staff-years of technical assistance and about 6 staff-years of fellowships to establish a new 215-place Clerical Business and Domestic Training Center (CBDTC) in Monrovia. The center would consoli- date the activities of three publicly supported training centers which operate low quality and extremely inefficient programs in inadequate and rented facilities. The new center would be under the authority of the Ministry of Youths and Sports which will work closely with the Liberian Institute of Public Administration in its operation.  - 22 - 3.34 The CBDTC would offer both pre-employment and in-service training in the following occupations: cooking and housekeeping, bookkeeping, accountancy, and clerical and secretarial work. Courses offered by the domestic section would be 10 months in duration and oriented toward making students with a Grade 9 education more literate and employable as cooks and housekeepers in the service sector. The program would build upon a program that the M4YS has been conducting successfully for the past few years in one of the centers to be consolidated into the new center. Courses offered by the clerical and business section would comprise one to two years of training and would serve both the public and private sectors. The center would initially operate only in the mornings, but afternoon and evening courses would be added after the main program has been well-established. The initial enrollments and annual output of the center would be as follows: Field of Study Enrollments Annual Output Clerical 135 65 Bookkeeping 40 24 Domestic Studies 40 36 3.35 To assist in establishing the new center, the project would finance: (a) an expert in business and clerical training for 3 staff-years; (b) an expert in domestic studies for 2 staff-years; and (c) a specialist in office practice for .5 staff-years. About 4 staff-years of fellowships would be used to train four Liberians as instructors of clerical, business and domestic science subjects, 2 staff-years of training would be used to upgrade 8 senior teachers of the CBDTC who already have suitable formal training, and 3 staff- months of study tours would be used to upgrade the three center administrators. 3.36 To help recover some of the costs of the commercial training program, students from the private sector would pay fees commensurate with those charged by privately operated training centers. The.Government gave assurances during negotiations that it would submit to IDA by June 30, 1983 a proposed fee structure for the new center and proposals for handling and accounting for the fees. The Government also gave assurances during negotiations that it would: (a) cease to operate commercial and domestic science courses at the Eugenia Simpson School, the National Clerical Training Center, and the Commercial and Domestic Training Center when the new CBDTC is ready to operate; and (b) transfer sufficient staff from the other centers to the CBDTC to carry out effectively its training programs. IV. PROJECT COSTS AND FINANCING PLAN Cost of the Project 4.01 The net-of-tax cost of the project is estimated at US$25.1 million, with a foreign exchange component of US$18.6 million. The breakdown of cost by project component is summarized below and shown in detail in Annex 4. The Government would waive all identifiable taxes and duties on project-related goods and services.  - 23 - ESTIMATED COST BY PROJECT COMPONENT (In US$ million) (1 US$ = 1 Liberian $) % OF COMPONENT LOCAL FOREIGN TOTAL BASE COST I. INSTITUTIONAL DEVELOPMENT Planning and Administration 0.7 2.6 3.3 17 Tests and Measurement 0.1 0.6 0.7 3 II. PRIMARY SCHOOL DEVELOPMENT Textbook Procurement and Distribution 0.1 2.8 2.9 15 Teacher Training 0.2 1.9 2.1 11 Educational Supervision 0.3 0.8 1.1 5 School Construction and Furnishing 2.5 3.3 5.8 29 III. SKILL TRAINING AITB/VTC 0.2 1.1 1.3 7 Commercial Training 0.7 1.8 2.5 13 TOTAL BASE COST 4.8 14.9 19.7 100 Physical Contingencies 0.4 0.7 1.1 6 Price Increases 1.3 3.0 4.3 22 TOTAL PROJECT COST 6.5 18.6 25.1 128 4.02 The estimated costs by category of expenditure are shown below and are given in greater detail in Annex 4.  - 24 - ESTIMATED COST BY CATEGORY OF EXPENDITURE (In US$ million) (1 US$ = 1 Liberian $) % of Base Category of Expenditure Local Foreign Total Cost Civil Works 3.2 2.6 5.8 29 Furniture 0.2 1.3 1.5 7 Equipment 0.1 1.4 1.5 8 Professional Fees 0.1 0.1 0.2 1 Technical Assistance 0.8 5.0 5.8 29 Fellowships 0.0 2.1 2.1 11 Textbooks 0.0 2.1 2.1 11 Operating Costs 0.4 0.3 0.7 4 Base Cost 4.8 14.9 19.7 100 Physical Contingencies 0.4 0.7 1.1 6 Price Increases 1.3 3.0 4.3 22 Total Project Cost 6.5 18.6 25.1 - 4.03 The base cost estimates for civil works are for December 1982. These estimates are based on the unit cost of construction contracts in 1981 for similar buildings. The estimated base cost of new construction, furniture and equipment.to be financed under the project is shown below:  - 25 - Base Cost for Civil Works (US$) Cost per Cost per Type of Construction Square Foot Pupil Place Regional Education Centers 35.00 - Primary Schools 25.75 518.00 Commercial Training Center 36.00 3,883.00 Base Cost for Furniture and Equipment (US$) Type of Institution Furniture per Student Equipment per Student Primary School 50.00 8.00 Commercial Training Center 637.00 1,130.00 These base costs for construction, furniture and equipment are comparable to those for similar institutions in the rest of the region. The net-of-tax base cost of technical assistance is estimated at US$10,500 per staff-month, including salary, allowances and overhead, and is based on recent recruitment experience of the Government and international organizations. 4.04 The project includes contingency allowances of 10% for civil works, furniture, textbooks and equipment. The overall allowance for price escala- tion is about 22% of base cost plus physical contingencies. This is calculated on the basis of the following annual price increases over the project imple- mentation period, for all expenditure categories: 1983 1984 1985 1986 1987 1988 Local Costs 12 10 9 8 8 8 Foreign Costs 8 7.5 7 6 6 6 4.05 The estimated foreign exchange component of US$18.6 million repre- sents about 74% of the total net-of-tax project cost of US25.1 million. As a percentage of total costs this has been calculated as follows: civil works and professional fees, 45%; equipment and furniture, 90%; textbooks, 100%, technical assistance, 85%; fellowships, 100%, and operating costs, 30%. Financing Plan 4.06 An IDA credit of Special Drawing Rights 12.6 million (US$13.5 million) and a grant of 9 million ADB Units of Account (about US$9.8 million equivalent) from the African Development Bank would finance the project in parallel, as shown below.  - 26 - Financing Plan 1/ (In US$ million) (1 US$ = 1 Liberian $) Component Total Cost IDA ADB Government Institutional 4.0 2.8 0.4 0.8 Development Primary School Development 11.6 4.6 6.8 0.2 Skill Training 4.1 3.4 - 0.6 Total Base Cost 19.7 10.8 7.2 1.6 Physical Contingencies 1.1 0.4 0.7 0.1 Price Contingencies 4.3 2.3 1.9 0.1 Grand Total 25.1 13.5 9.8 1.8 Foreign Exchange 18.6 12.1 6.2 0.3 4.07 Under this financing plan, IDA would provide SDR 12.6 million (US$ 13.5 million) toward financing the following components: planning and administration, including auditing but not including any other assistance for the PIU; tests and measurement; textbook procurement and distribution; teacher training; AITB/VTC; and commercial training. 4.08 The African Development Bank would provide 9 million ADB Units of Account (about US$9.8 million equivalent) to finance the education supervision component, the school construction and furnishing component, and assistance for project management. 4.09 The proposed IDA credit of SDR 12.6 million (US$13.5 million) would finance about 54% of the total net-of-tax cost of the project. The credit would finance 100% of the foreign exchange costs and 35% of the local costs of the components which IDA is financing. The total external financing would cover about 93% of the total net-of-tax cost of the project. The Government would provide US$1.8 million, equal to about 7% of the total net-of-tax cost of the project. 1/ See Financing Plan by project items in Annex 5.  - 27 - Project Recurrent Costs 4.10 The project-assisted programs, at full operation in 1988, would add about US$.8 million per year in 1981 US dollars to the Government's annual recurrent budget. This would be equal to about 1.5% of the total 1981-1982 Government recurrent budget for the Ministry of Education, the University of Liberia, and the Ministry of Youth and Sports. The breakdown of these costs would be as follows: Estimated Net Incremental Recurrent Costs by Component (In US$ Thousands) Incremental Recurrent Costs Per Year Component at Full Operation Planning and Administration 100 Tests and Measurement 15 Textbook Procurement and Distribution 100 Teacher Training 0 Educational Supervision 150 School Construction and Furnishing 400 AITB/VTC 0 Commercial Training 0 Total 765 4.11 The impact of the project on future recurrent expenditures would be relatively small for several reasons. First, the project would not directly produce any increase in recurrent expenditures for the VTC and AITB over that which was to result from the Third Education Project. Second the teacher upgrading program would produce additional costs only to the extent which Government continues the program after the project. Third, the university is stabilizing its recurrent budget and any growth in enrollment in the Depart- ment of Education would largely be offset by a reduction in enrollments in other departments. Fourth, the Government would recover most of the cost of the textbook program from students. Finally, the consolidation of three highly inefficient commercial training centers into the new CBDTC and the collection of student fees would produce a small savings each year for publicly supported commercial training. 4.12 The project should also lead over the long term to economies in the use of funds through improvement of MOE administration and planning. In addition, establishing mechanisms for cost recovery through the operation of the textbook program and the commercial training center should help to set a foundation for other cost recovery mechanisms and to increase the revenues available for education and training in Liberia. 4.13 Given the likely short-term and long-term impacts of the project on recurrent expenditures, the Government should be able to provide the recurrent funds which will be required to operate project-financed institutions satisfac- torily. To ensure that adequate budgets are provided, the Government, during  - 28 - negotiations, gave assurances that it would furnish to IDA by June 15 of each project year the proposed recurrent budget for primary education, the textbook program, the AITB, the VTC, and the CBDTC. V. PROJECT IMPLEMENTATION Project Preparation 5.01 Project preparation is being financed by PPF advances totalling $800,000 and is very advanced. The Government's Project Preparation and Coordinating Committee prepared the educational programs for the project with the assistance of private consultants and ILO specialists. MOE architects are carrying out architectural work for the project-financed primary schools and regional centers. A private consultant-architect is preparing designs for the commercial training center. 5.02 The Government has prepared educational specifications for all project components, bidding documents for primary school construction and for the regional education centers, and sketch designs for the commercial training center. The Government had already received bids for the construction of primary schools and the ADB has approved the proposed contract awards. Construction of the schools should begin in December 1982, when the ADB loan, which has already been approved by the ADB Board, should become effective. The Government has also prepared detailed equipment lists for each project component and signed a contract for the technical assistance to the MOE. The pilot textbook scheme began in October, 1982 and the leader of the team of specialists who will work with the MOE and the textbook specialist have started their assignments under PPF financing. In addition, several MOE staff who will return to work in key project areas began fellowship training in September, 1982. Project management arrangements are fully in place. 5.03 Bidding documents will be ready prior to credit effectiveness for all project-financed construction. This construction should be completed by mid-1987. Candidates for the first year of the fellowship and technical assistance programs have already been identified, and specialist services and fellowships would continue to the middle of 1988. The Closing Date of the IDA credit would be December 31, 1988. Project Management 5.04 The MOE, the MYS and the University of Liberia would manage their own components of the project, in the manner used satisfactorily to implement the Third Education Project. The Deputy Minister of Education for Planning and Development would be responsible for the MOE components, the Deputy Director of the MYS for Training would oversee the MYS components, and the Vice President for Administration of the University would oversee the Univer- sity's components.  - 29 - 5.05 The project would be coordinated on a day-to-day basis by the Project Implementation Unit (PIU) in the Ministry of Education, which has successfully managed the three previous Bank-assisted projects and the pre- vious project assisted by ADB. The PIU is headed by a Project Director and has a Deputy Director for Accounting and a Deputy Director for Procurement. The PIU would be responsible for liaison with IDA, project accounting, and coordinating the implementation of the construction, procurement, technical assistance and fellowship programs. 5.06 The PIU would be responsible for purposes of this project, to the inter-agency Project Coordinating Committee (para. 5.01), which the Government established in 1980 to prepare the proposed project. The Committee has oversight and advisory roles. The Committee is headed by the Deputy Minister of Planning and is composed of the Project Director, the Deputy Minister of Education, the Deputy Director of the MYS, the Vice President of the Univer- sity, and the Director of Educational Facilities of the MOE. Working Funds 5.07 To facilitate project management, the Government would establish for the project a working fund of US$200,000 in the National Bank of Liberia, to be called the "Project Account." The fund would be used to finance small project-related expenses and the Government's share of counterpart funds for the project. The Government and IDA should agree during negotiations on the detailed procedures for operating the fund. In addition, establishment of the fund would be a condition of effectiveness of the IDA credit and the Government gave assurances during negotiations that it would replenish the fund on a quarterly basis. 5.08 A working fund of US$300,000 financed from the IDA credit to be called the "IDA Special Account," would also be established in the National Bank of Liberia to finance goods and services purchased locally. The Govern- ment would open this fund as a condition of effectiveness. The fund would be operated along the lines of funds established for other projects in Liberia, and IDA and the Government agreed during negotiations on procedures for its operation. One of this fund's goals is to reduce the amount of time required to pay contractors and suppliers and, thereby, to reduce prices. Contractors and suppliers would be asked in bidding documents to discount invoices paid within 30 days. Specialist Services and Fellowships 5.09 The project would finance a total of about 29.5 staff-years of technical assistance and 102 staff-years of fellowships. During negotiations the Government gave assurances that it would: (a) appoint technical assis- tance specialists whose qualifications, experience and terms of reference are acceptable to IDA; and (b) award fellowships for programs acceptable to IDA to suitably qualified candidates who will serve at least two years in the positions for which they were trained.  - 30 - Sites 5.10 The Government has legal title to the site of the commercial training center and the regional educational centers. The Government has selected the sites for the project-financed primary schools and is in the process of signing contracts with the communities involved concerning their providing 25 acres for the schools and clearing the sites. Contracts have been signed so far for more than half of the sites. To avoid electrical and water connection problems which have occurred in previous projects, the Government will furnish evidence to IDA that there is an adequate supply of water and electricity at the CBDTC site as a condition of disbursement. Procurement 5.11 Civil works valued at US$1.35 million and furniture and equipment valued at US$0.9 million would be procured on the basis of international competitive bidding in accordance with IDA's guidelines. Furniture and equipment which cannot be grouped into packages of at least US$75,000 equiva- lent, or which are not suitable for international competitive bidding would be procured in accordance with local competitive bidding procedures acceptable to IDA. For items va:Lued below US$15,000 and for which potential suppliers are limited, bids would be obtained by inviting quotations from at least three reliable suppliers whenever possible. The total value of items procured by these methods would not exceed US$300,000. For all contracts estimated to cost the equivalent of US$100,000 or more, IDA would review bidding and bid evaluation documents before the contracts are awarded. This would be about 90% of the total number of contracts to be financed by IDA. Technical assis- tance specialists would be recruited in accordance with Bank Group guidelines issued in August 1981. Domestic 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 taxes, whichever is lower. 5.12 The Government would procure textbooks valued at about US$100,000 for the pilot program by negotiating with the publishers of texts the Government has selected from the MOE-approved book list (para 3.13). The Government would procure textbooks during the implementation phase valued at about US$2.0 million through international competitive bidding from among pre-qualified publishers (para. 3.14). 5.13 The Government would procure goods and services financed by the ADB in accordance with the relevant guidelines of that agency. Disbursements 5.14 The proceeds of the IDA credit would be disbursed against the items to be financed as follows: (a) 70% of total expenditures for civil works, architectural fees, and furniture US$1,000,000; (b) 100% of total expenditures for textbooks, textbook distribution, and equipment US$3,400,000;  - 31 - (c) 90% of total expenditures for technical assistance and fellowships US$6,300,000; (d) 100% of the initial deposit in the Special Account US$300,000; (e) 100% of the withdrawn PPF funds US$800,000; (f) the unallocated amount would be US$1,700,000. 5.15 Disbursements have been estimated on the basis of the schedule of implementation summarized in Annex 8, taking into account the time Government is likely to need to prepare and process withdrawal applications. The disbursements profile (Annex 9) also reflects country-wide experience in Liberia and region-wide experience with education projects in West Africa. All disbursements from the credit account would be fully documented. Accounts and Audits 5.16 The Project Implementation Unit would establish accounts for the project, in accordance with internationally accepted accounting procedures. To help strengthen the PIU's accounting work, the IDA credit would finance: (a) technical assistance from an independent auditing firm prior to credit effectiveness to assist the Government in establishing a suitable accounting system for the project; (b) annual audits by an independent auditing firm; and (c) additional periodic technical assistance to the project accountant as a follow-up to the annual audit (para. 3.09). During negotiations the Government gave assurances that: (a) the project accounts would be audited by independent auditors acceptable to IDA, and the audits would be conducted annually in accordance with appropriate auditing principles consistently applied; (b) the audit reports would be of such detail as IDA may reasonably request, and will include the auditors' opinions on the project accounts; (c) it would provide IDA with such other relevant information concerning the account and the audit as IDA may reasonably request; and (d) the accounts and audit reports would be submitted to IDA for review within six months of the close of the Government's fiscal year. As noted earlier, the Government would also submit to IDA separate audits of the textbook program twice a year (para. 3.17). Evaluation 5.17 The Project Director would submit quarterly progress reports to IDA. Given the importance of the textbook component and the lack of experience with textbooks in Liberia, the Government gave assurances during negotiations that it would (a) submit to IDA by August 31 of each project year, an annual report eveluating the implementation of the textbook program; and (b) submit to IDA by December 31, 1987 an evaluation of the impact of the textbook program on the educational achievements of primary students, carried out in accordance with a research design satisfactory to IDA. The Bureau of Planning of the MOE would be responsible for this evaluation and the specialists working with MOE  - 32 - and the WAEC will assist the Government in carrying out these activities. Finally, the Government gave assurances during negotiations that it would submit a project completion report to IDA within six months of the completion date of the project. VI. PROJECT BENEFITS AND RISKS Benefits 6.01 Improving the quality of primary education, teacher education and commercial training and expanding access to primary education would yield important economic benefits over the long term including: (a) improved worker productivity; (b) availability of an increased number of skilled workers to meet priority manpower requirements; and (c) greater opportunities for employ- ment and self-employment among graduates. In addition, improvement of the quality of primary education and commercial training would increase the efficiency of these types of education and training by reducing dropout and repetition rates, which would lead to lower costs per graduate. Finally, the project is important in economic terms because it would assist the Government in establishing cost-recovery mechanisms for several education and training programs. 6.02 The main educational benefits of the project would be an increase in the numbers of qualified primary school teachers and in the number of textbooks in use in the education system. The project would upgrade the qualifications of about 2,250 primary teachers, and increase the number of books available for the primary level each year from about 20,000 to 400,000. Another important benefit of the project would be the improvement of about 4,000 primary school places and an increase in the number of primary school places by 1,380. The project would also improve considerably the quality of commercial training in Liberia. 6.03 The project should have a positive effect on women and on the rural poor. First, the increase in the number of places in primary schools in rural areas will encourage an increase in the enrollment of women and the rural poor at the primary level. Second, the poor, for the first time in Liberia, will have access to affordable textbooks for primary education. Third, a large portion of CBDTC students will be women, and the training offered by the CBDTC should considerably improve their prospects for employment. Risks 6.04 The main technical risk to the project is that the lack of experience in using textbooks may hamper the successful implementation of the textbook scheme. A related risk is that the educational supervision and teacher training components may not be sufficiently coordinated with the textbook component and therefore these investments may not have their desired impact. These risks have been addressed by ensuring that each component has been prepared in detail prior to appraisal and by ensuring that project design  - 33 - takes into account the lessons of previous Bank-assisted education projects in Liberia. Potential problems would also be addressed through the use of technical assistance specialists in a few key areas related to the above components. VII. AGREEMENTS REACHED AND RECOMMENDATIONS 7.01 During negotiations, the Government gave assurances that: (a) it wouid furnish to IDA for review by March 31 of each project year (i) a list of proposed workshop topics, course outlines and participants for the following school year, and (ii) an evaluation of the workshops conducted during the preceding 12 months (para. 3.07); (b) it would establish by January 1, 1983 a special interest bearing account for the textbook fund in a bank acceptable to IDA and would review with IDA the mechanisms for operating the textbook fund (para. 3.17); (c) it would furnish to IDA by June 30 and December 31 of each project year independent audits of the use of funds and textbooks for the textbook program (para. 3.17); (d) it would furnish to IDA by January 30, 1983, a proposed fee structure for the CBDTC as well as proposals for handling and accounting for the fees (para. 3.36); (e) it would (i) cease to operate commercial and domestic courses at the Eugenia Simpson School, the National Clerical Training Center and the Commercial and Domestic Training Center when the new CBDTC is ready to operate; and (ii) transfer sufficient staff to the new center from the old ones to carry out effectively the CBDTC train- ing programs (para. 3.36); (f) it would furnish to IDA by June 15 of each project year the proposed recurrent budget for primary education, the textbook program, the VTC, the AITB, and the CBDTC (para. 4.13). (g) it would replenish the project working fund on a quarterly basis (para. 5.07); (h) it would (i) appoint technical assistance specialists whose qualifi- cations, experience and terms of reference are acceptable to IDA; and (ii) award fellowships to suitably qualified candidates for programs of study acceptable to IDA who will serve at least two years in the positions for which they were trained (para. 5.09);  - 34 - (i) the project accounts would be audited by independent auditors acceptable to IDA and the audits would be conducted annually in accordance with appropriate auditing principles consistently applied and submitted to IDA for review within six months of the close of the Government's fiscal year (para. 5.16); (j) it would (i) furnish to IDA by August 31 of each project year an annual report on the implementation of the textbook program in the preceeding school year; (ii) furnish to IDA by December 31, 1987 an evaluation of the impact of the textbook program, carried out in accordance with a research design satisfactory to IDA (para. 5.17); and (k) it would furnish to IDA, within six months of the project's completion date, a completion report on the entire project (para 5.17). 7.02 As conditions of effectiveness of the IDA credit, the Government should have (a) established the Project Account, (para. 5.07), and should have (b) established the IDA Special Account (para. 5.08). 7.03 As a condition of disbursement for civil works for the CBDTC the Government should have furnished evidence to IDA that there is an adequate supply of water and electricity at the CBDTC site (para. 5.10). 7.04 Subject to the above conditions and assurances, the project con- stitutes a suitable basis for the proposed IDA credit of SDR 12.6 million (US$13.5 million) to the Republic of Liberia.  -35- Page 1 of 2 OCTOBER.25, 1982- * . 1 ~ ~ :CENTRAL:I 1 1 * , .~~~~~~ GOVT.: I I II: I I EXP. ON? I IPRI. 'RECURRENT' ISEC. * ~~~~~~~~~EOU. AS: EDUCATION ;LITER- PRI. ICOMPLE- :STU- SUNIT COSTtPROGRESS-: SEC. :STU- IHIGHER: * . . .5~~~~: TTL, RECURRENT lACY IENROLLITION IDENTSIPRIM. ED.? ION RATE :ENROLL?DENTS:ENROLL: GNP/ I BNOP ?CENTRAL:EXP ALLOCATED: RATE :RATIO IRATE FORIPER :88 I GNP/:FROM PRI. IRATIO :PER :RATIO &ASEIPOP' :CAPITA: DEVOTED: GOVT. I TO: 1(3 OF I NET :PRI.SCH. :TEACH- CAPITA :TO SEC. I NET :TEACH- GROSS: YRIMILLS.? (US$11 TO EDU.: ESP. IF'RI. SEC. HI.?ADULTS): (Z1 :CYCLE(ZIIER (3: ) I (01 :ER 1 0 U(1979):(1979): I !(1976) I I (1) (2): (3) I (4)I (51 (6> 1)7) 1(8) 1(911 (10) I (11) I(12) 1(13) 1(14) DIEVELOP'ED COUNTRIES AUSTRALIA 80 14.6 8,870 6.38 1.4.6