Peru - Higher Agricultural Education Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 3940b-PE PERU STAFF APPRAISAL REPORT OF A HIGHER AGRICULTURAL EDUCATION PROJECT October 4, 1982 Regional Projects Department Latin America and the Caribbean Regional Office 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 (as of February 28, 1982) Currency Unit = Sol Peruano (S/) US$1 = S/550 S/1 = US$0.001818 S/1,000,000 = US$1,818 WEIGHTS AND MEASURES 1 hectare (ha) = 10,000 m2 = 2.47 acres 100 hectares = 1 square kilometer (km2)=0.39 square miles 1 kilogram (kg) = 2.2 pounds 1,060 kilograms = 1 metric ton = 0.98 long ton I liter (1) = 0.26 gallons ABREVIATIONS NAU = National Agrarian University INIPA = National Institute for Agricultural Extension and Research ESEP = Higher School for Professional Education CEB = Basic Education Center GOVERNMENT OF PERU Fiscal Year January 1 to December 31 Academic Year April to riid-December PERU FOR OFFICIAL USE ONLY STAFF APPRAISAL REPORT HIGHER AGRICULTURAL EDUCATION PROJECT Table of Contents Page No I. DEVELOPMENT OBJECTIVES OF HIGHER AGRICULTURAL EDUCATION ... I II. THE HIGHER AGRICULTURAL EDUCATION SYSTEM ................. 3 Overview ............................................. 3 Enrollments ......... ..... ........ .................. 3 Teachers ............................................. 5 Facilities and Equipment ................... 5 Research ............................................. 5 Main Problems of Higher Agricultural Education ....... 5 Strategy for the Development of Higher Agricultural Education .......................................... 8 The National Agrarian University (NAU) ................ 9 Bank Participation in Peru's Education Investment .... 12 III. THE PROJECT ............................................... 13 objectives .............. ....... . . . . . . . ..... 13 Project Components ................................ 14 IV. COST ESTIMATES, FINANCING, AND IMPLEMENTATION OF THE PROJECT 20 Cost Estimates ................. ........... .. ....... 20 Project Financing ... ..... ......... . ................ 23 Project Implementation ............................... 25 V. BENEFITS AND RISKS ........................................ 29 Benefits ............................................. 29 Risks ................................................ 29 VI. AGREEMENTS REACHED AND RECOMMENDATIONS ................. 30 ANNEXES 1. Comparative Education Indicators 2. Location of Public and Private Universities 3. Organizational Chart of NAU 4. Selected Documents Available in the Project File MAP This report is based on the findings of an appraisal mission that visited Peru in March-April 1982. The mission consisted of Messrs. S. Apergis (senior economist, mission leader), A. Magnen (agricultural educator, UNESCO) and I. Matallana (architect, consultant). A contribution was also made by Mr. C. Garces (higher agricultural education specialist, consultant) who joined an earlier preappraisal mission. 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.  I. DEVELOPMENT OBJECTIVES OF HIGHER AGRICULTURAL EDUCATION 1.01 Agricultural production stagnated and dependence on food imports increased in Peru in the past decade. 1/ In order to reverse this situation and neutralize its negative effects (increasing nutritional deficiencies, restricted supplies of raw materials to local industries, deteriorating balance of payments), the government is trying to implement a multi-faceted agricultural development strategy, the main elements of which are (i) investment in agricultural infrastructure such as irrigation works and access roads; (ii) price and other incentives to farmers to increase production within a broad framework of increasing private initiative and decreasing government intervention; (iii) rebuilding the badly neglected extension service and expanding and improving research activities by means of the new National Institute for Agricultural Research and Promotion (INIPA). 1.02 The availability of high quality professionals in agriculture- related occupations is an important element for successful implementation of this strategy. The need for this type of personnel is manifest in the following areas. (a) Cooperative Farms: The Agrarian Reform is practically complete. However, the staff of the resulting 2,000 collective farms of one type or another, e.g., production cooperatives, service coopera- tives,communal lands,lack management capacity and technical expertise in agricultural practices and marketing to the detri- ment of production and income. (b) Private Farms: A number of private farms remain after the imple- mentation of the Agrarian Reform, whose size is large enough to fully occupy and adequately remunerate a professional-farmer. Given the extent of the Agrarian Reform and the large size of rural to urban migration in the past decade, an accurate measure- ment will have to await the Agricultural Census scheduled for next year. Preliminary indications are that their number is in excess of 5,000. The political climate for operation and growth of these farms is hospitable at the moment, in large part because of the problems faced by cooperative farms and the ensuing short supply of agricultural products. (c) Research: The differences in climate, topography, and hydro- graphic conditions between Peru and the countries that tradi- tionally engage in basic research and produce improved agricul- tural inputs call for a strenuous effort for experimenting and adapting these inputs to local conditions. Responsibility for this falls on INIPA, research groups specialized by product, and those Universities offering relatively strong agricultural programs. 1/ PERU: Major Development Policy Issues and Recommendations, (2 vols.), The World Bank, April 1981. - 2 - (d) Agricultural Extension: The vital mechanism for transmitting research results to individual farmers and rural communities was practically destroyed during the 1970s. Current efforts to rebuild it are also taking into account the potential contribu- tion of extension agents in (i) providing feedback to researchers about "real world" problems in adopting innovations, (ii) secur- ing and distributing agricultural credit and (iii) improving marketing arrangements. The adopted model is that of Training and Visit, which emphasizes feedback reactions to researchers and, therefore, calls for significant numbers of high level supervisors and subject-matter specialists. (e) Public Administration: Demand in this area is for replacing retiring personnel with new entrants of higher qualifications, thus raising the average level of administrators in terms of technical expertise and management capacity, and for post- graduate studies of existing personnel, especially in agri- cultural economics and management courses. (f) Agriculture-Related Activities: These include the National Agri- cultural Bank and other banks offering agricultural credit; com- mercial firms selling agricultural inputs; and, to a lesser extent, firms and organizations involved in marketing of agri- cultural products. Contacts with knowledgeable people indicate that increased technical and economic sophistication of profes- sionals occupied in these activities is an important element of success for the renewed efforts to revitalize agriculture. (g) University Teaching: The majority of teachers in agricultural programs offered by universities need upgrading in basic knowl- edge and research ability. To achieve rapid results, emphasis should be placed on upgrading existing teachers, mainly by means of post-graduate studies at the M.Sc. level. 1.03 Approximate average annual demand of high quality professionals in the above areas over the next decade is estimated as follows: Table 1.1 Re- Total Average Net place- Incr. Annual Total Total Increase ment Demand Demand Source of Demand 1990 a/ 1980 b/ 1980-1990 1980-1990 1980-1990 Cooperative Farms 2,500 1,100 Private Farms 3,500 2,500 Research 500 300 Extension 1,000 200 Public Adminstr. 1,500 1,500 Agr.Related.Bus. 1,000 600 Univ.Teaching 1,000 800 Total 11,000 7,000 4,000 1,000 5,000 500 a/ Mission estimates b/ Adjusted figures from College of Engineers records. - 3 - The table is based on the expectation that the rise in quality of profes- sionals employed in agriculture-related jobs in 1990 (to affect about 40% of the projected stock at the time) will be achieved through increased sup- ply of high-level people, and at the same time policy measures facilitating employment for these people (e.g. greater profit incentives for successful farmers, strict selection of public sector employees). About 20% of pro- jected annual demand, i.e., about 100 persons, should be graduates of post-graduate programs for filling more demanding positions, especially in the areas of research, extension, public administration and university teaching. II. THE HIGHER AGRICULTURAL EDUCATION SYSTEM Overview 2.01 The Peruvian university system includes 37 universities (25 public and 12 private) 14 of which are located in Lima (Annex 2). Agricultural programs / are offered at present by 16 universities and fisheries programs by 7 universities (all public). Agricultural (including fisheries) programs and their enrollments are evenly distributed all over the country and Lima is in fact underrepresented in relation to its population. Graduate agricultural studies are offered only by the National Agrarian University (NAU), and they are limited to about 1% of all students. Enrollments 2.02 During the 1970s enrollments in agricultural and fisheries programs increased, respectively, at 15% and 25% per annum, i.e., much faster than those of total university enrollments that increased from 109,000 in 1970 to 223,000 in 1979, or at a rate of 8.6%. Enrollments in agricultural programs grew much more slowly, however, at NAU and the San Marcos University (Table 2.1). In 1979, agricultural and fisheries studies made up about 9% of total university enrollments. 2.03 The average percentage of students graduating from agricultural studies five years after entry is 35%. Variation around this average, however, is high ranging from 59% for the San Marcos Univesity and 48% for NAU, to 23% for the Technical University of Cajamarca and 13% for the University of Ica. The total number of graduates increased from about 800 in 1978 to about 1,200 in 1981, exclusively as the result of past growth in enrollments. 2/ In this report, agricultural programs include: agronomy, agricultural engineering, forestry, food industries, animal husbandry, veterinary medicine and related post-graduate programs. The report does not include the new agronomy programs of the Universities of San Martin (Tarapoto), Pucallpa, and San Agustin (Arequipa), established in 1980 and 1981. Table 2.1 Enrollments in Universitv Agricultural and FishorieR Progroms Average Average agric. enrollments programs Enrollment growth in Date Enrollments enrollment in fisheries agricultural in agric growth Fisheries programs Sumbers of Name of the University Head- programs programs 1970-79 peograms 1970-79 agricultural (Universidad Nacional...) Suarters established 1970 1979 % R.a. 1970 1979 % o.a. Programs Agraria Lima 1902 1,441-11 2,682-11 7.2 56 383 24 6 Mayor de San Marcos Lima 1946 256 423 5.7 1 San Antonio Abad Cusco 1956 400 1,228 13.3 2 San Luis Gonzaga Icea 1961 321 1,304 16.9 58 4811 27 3 Del Centro del Peru Huancaya 1960 410 1,409 14.7 4 San Cristobal do Huamanga Ayacucho 1960 132 743 21 1 Do la Amazonia Perunna Iquitoes 1963 188 803 17.5 3 Teenica del Altiplano Puna 1962 203 1,392 24 2 Tecnica de Piura Piura 1962 201 1,177 22 - 7183 Tecnica do Cajamarca Cajamarca 1963 109 1,320 32 2 Pedro Ruiz Callo Lambayeqys 1960 377 2,108 21 4 Hermilio Valdivan Euanuco 1964 96 503 20 1 Agraria de la SElva Tingo Maria 1964 144 575 16.6 3 Daniel Alcides Carrion Cerro de Pasco 1974 - 614 . 1 De Tacna TAcna 1979 - 96 . - 228 2 De Ancash Huarez 1979 - 104 1 Federico Villareal Lima 138 331 10.2 Teenica de Callao Lima 77 967 32 J.F.S. Carrion Huacho 115 288 10.7 TOTAL 4,278 16,481 15.5 444 3,403 25 % Agraria 33.7 6.3 12.6 11.1 ALL UNTV. EXCEPT AGRARZA 2,837 13,799 18 388 3,020 26 / Including post-graduate students (59 in 1970, 217 in 1978, 181 in 1979) Source of data: Comision Nacional Interuniversitaria (CONAI) -5- Teachers 2.04 The teaching staff shows considerable quantitative and qualitative variations from one program to the other. The student-teacher ratio varied from 12 at NAU to 40 3/ at other universities with 70% of the programs showing a ratio above 20. Given the considerable needs for practical instruction in agriculture, these figures prove a shortage of teaching staff in all programs except NAU and the Universidad Agraria de la Selva. The dearth of teaching staff is compounded by the insufficient qualifications of teachers: the percentage of those with an advanced degree is under 20% in all programs except NAU (40%) and the Technical University of Piura (45%). Facilities and Equipment 2.05 Agricultural and fisheries university programs also vary widely in availability of facilities and equipment necessary for teaching and research. Several agricultural programs have only one tractor, which is totally inadequate for the practical training of students. Some laboratory equipment has been provided by external cooperation projects, including the large program of equipment purchases from Hungary in 1972 whose implementation, however, is still not completed. Research 2.06 In 1978 universities provided 42% of the financial resources and 67% of the human resources used in agricultural research, and an even higher proportion of the research staff holding an advanced degree. Many of the achievements of agricultural research and development in Peru are products of universities' efforts. The contribution of universities to agricultural research is very unevenly distributed, however. NAU and the veterinary medicine program of the San Marcos University account for most of these achievements. Furthermore, in the 1980 budget, NAU and San Marcos provided 60% of the total amount devoted to agricultural research while eight universities had an appropriation of less than US$80,000 each for this purpose. In most agricultural programs research consists almost entirely of undergraduate theses, while staff members devote almost all their time to teaching because of high student/teacher ratios, limited number of teachers with advanced degrees and lack of research funds. External funding for research purposes naturally goes to the few universities which have good capability in this field. Main Problems of Higher Agricultural Education 2.07 Poor quality of academic programs. Apart from a handful of universities, prominent among which is NAU, the quality of agricultural programs is unsatisfactory. Table 2.2 summarizes the opinions of Peruvian professors and other professionals regarding program quality, which were corroborated during visits by Bank staff to several universities. The 3/ Taking into account only the teaching staff attached to agricultural or fisheries departments. - 6 - major factor producing poor program quality, and therefore poor quality of graduates, has been rapid enrollment growth (para. 2.02) not matched by the required increases in human, material and financial resources. 2.08 The number of available teachers is inadequate, and their dearth is compounded by insufficient qualifications (para. 2.04). Insufficient budgetary allocations have been responsible for this situation, further aggravated by rapid recruitment of administrative and auxiliary personnel at the expense of teaching positions. The task of available teachers is rendered more difficult also by university facilities and equipment which are generally inadequate to meet the needs of present enrollments, since few universities have been able to finance substantial investments during the 1970s (para. 2.05). Table 2.2 Opinions of Peruvian Professionals and Bank Staff on Program Quality by University Program Quality Program Good Fair Mediocre Poor Agronomy NAU Lima UPRG Lambayeque USCH Ayacucho All Others UT Piura UMV Huanuco UT Cajamarca UAS Tingo Maria UAP Iquitos Agricultural Engineering NAU Lima UPRG Lambayeque U Ancash (starting) Food NAU Lima All Others Industries Animal NAU Lima UPRG Lambayeque UT Piura All Others Husbandry UAP Iquitos Forestry NAU Lima UAP Iquitos UC Huancayo UAS Tingo Maria Veterinary N.U. San Medicine Marcos USLG Ica Lima UPRG Lambayeque Fisheries NAU Lima UT Callao All Others U.F. Villareal Lima - 7- 2.09 Agricultural curricula, although often inspired by NAU's programs, vary widely in the required courses and in the elective areas. In general, the shortage of properly trained and experienced staff and suitable facilities and equipment results in agricultural courses with a highly theoretical content and little exposure of students to practical problems. In addition agricultural programs do not offer quality courses in the social sciences, especially economics, resulting in their failure to produce well grounded graduates with management capacity. 2.10 Another factor of poor quality is the unsatisfactory academic level of new entrants, in spite of restricted admission to universities-- 22% of applicants were admitted in 1978--and of coaching of applicants in private preparatory courses. 2.11 Excessive growth of enrollments and graduates. The social demand for higher education 4/ exerts a strong pressure on university author- ities, sometimes through forceful actions; and universities have not always made proper use of their autonomy to determine the maximum number of admis- sions according to available resources. During the 1970s the government tried to control the expansion of universities, but those efforts were frustrated and universities succeeded in preserving their autonomy. The resulting rapid increase in enrollments and graduates has had other nega- tive effects in addition to keeping low and/or lowering the quality of graduates. Unemployment of graduates has been pushed upwards, at least in the short run. The longer run outcome is an unnecessary rise of education norms in middle agriculture-related occupations and/or a loss of trained professionals to other occupations, resulting in waste of resources for university education. As mentioned in para 2.02, only NAU and the San Marcos University veterinary medicine program have been able to hold enrollment growth down to manageable levels. 2.12 Weak Research Activities. With the exceptions of NAU and San Marcos, Peruvian universities do not function as sources of new knowledge in the agricultural fields. The 1980 budget of the Peruvian university system devoted only 5.6% of their recurrent budget to research. The two major reasons are excessive enrollments and financial constraints. Because of these, university staff generally have a high teaching workload and can devote little time to research. Furthermore, only NAU and San Marcos received in the past massive assistance from abroad, which created new attitudes towards basic and applied research, and receive at present significant external funding for their research activities. As a result, the students of all but these two universities are deprived of the creative environment that research activities generate, courses and textbooks are usually copied from other institutions, much of the academic program is irrelevant to Peruvian problems, and the contribution of the great majority of agricultural programs to the solution of the problems of Peruvian agriculture is minimal. 4/ The number of applicants increased by 17.4% during 1970-1975 and by 9.7% during 1975-1980. - 8 - 2.13 Insufficient Financing. Financial resources available to public universities offering agricultural programs are adequate in the case of only two, San Marcos and NAU, which could spend above US$1,600 per student in 1980 to cover recurrent costs; the average for all others was US$390. Allocations for capital investment were equally limited. Only three universities (NAU, Agraria de la Selva, and Ancash) were allocated US$50 or more per student, while the average for all universities was about US$15. 5/. These limitations are especially severe in the case of agri- cultural programs,because their capital and recurrent cost requirements are higher than average. Yet, in the case of the great majority of universi- ties (other than NAU) in which the agricultural program is only one among many, limited overall budgets apparently result in resource allocations among academic departments roughly proportional to number of students. Resources available per student for covering recurrent costs in agricul- tural programs were just 30 percent above the already clearly inadequate average availability for all students in multi-discipline universities. (The veterinary medicine program at San Marcos is a striking exception to this rule, probably because of pressuces on the part of outside contrib- utors, national and international, whose support is critical for maintain- ing acquired quality levels). Strategy for the Development of Higher Agricultural Education 2.14 Availability of high quality professionals is essential for revitalizing the agricultural sector jn Peru (paras. 1.02-1.03). At present, 19 universities are turning out approximately 1,200 graduates per year from their agricultural and fisheries programs, or between two and three times the number of high level personnel needed to fill key positions (Table 1.1). However, with the exception of few cases in certain areas or specific products (Table 2.2), the quality of graduates from 18 of these universities is well below satisfactory standards for high level manager- ial,technical, research and teaching positions. This has been the combined result of exploding enrollments and limited availability of public funds for universities. 2.15 The one exception to this disappointing picture of low quality and excessive numbers is NAU (and the San Marcos program for veterinary medicine), which has been able to keep enrollment and graduate growth at low rates, and obtain much higher public funding per student than the average agricultural program. Consequently, it has maintained the quality of teaching at acceptable levels, and has assigned enough professors to research activities to produce both relevant academic programs and improved agricultural inputs and products. Furthermore, it has the only agricul- tural program offering urgently needed graduate studies. Therefore, NAU appears to be the only feasible alternative at present for providing the required high level staff. 5/ Figures for capital investment allocations must be used with care due to the bunching of capital investmient over time. But longer time series of capital expenditures and direct observarion of physical facilities still confirm the general picture of inadequate capital budgets. - 9 - 2.16 Over the longer run, the present or future governments should seriously consider taking the politically painful decis!,on of supporting two or three regional universities, at the expense of tne rest, in order to raise their teaching/research capabilities in agriculture-related areas. The obvious benefits from creating a strong, even if limited, regional network of agricultural faculties would be relevance in teaching and research obtained from close contact with problems (ecological, climatic, agronomical, social, economic) of the surrounding communities; and the contribution that a prestigious university could make to advancing regional development. Even if such a decision were taken immediately, however, the current need to rely on NAU to provide high level staff for teaching and research would remain, given the long period it takes to develop good quality university programs. 2.17 NAU, although superior to other universities offering similar programs, suffers from several deficiencies in its academic facilities and study programs which have lowered somewhat the quality of its teaching and research in recent years, and whose perpetuation would imperil the con- tinued supply of good quality professionals. The following section explores these problems. The National Agrarian University (NAU) 2.18 NAU, similarly to other universities, is governed by the Peruvian University Law No. 17347, which determines its administrative structure (Annex 3). This Law also specifies that the univesity's objectives are training of professionals, research, educational extension (proyeccion social), and production of goods and services. 2.19 The academic program. NAU's fields of study, enrollments and graduates are shown in Table 2.3. The quality of courses is generally satisfactory and much better than in other universities' agricultural programs. Nevertheless, the practical application of knowledge in professional activities is deficient (with few exceptions such as horticulture) because NAU, in line with most higher agricultural education institutions, has adopted the criterion of preparing professionals as scientists and researchers. 2.20 Another aspect where courses are unsatisfactory is insufficient orientation towards rural development. Technical courses are excessively centered on technology designed for mechanized or commercial agriculture, and tend to neglect analyses of the technological environment of poor farmers. Furthermore, course content in the social sciences, particularly economics, does not provide agricultural students with sufficient understanding of the socio-economic factors determining the development of agriculture nor with the ability to manage people and other resources. And courses in communication and extension offered at present are mostly theoretical and do not lead to a better understanding between professionals and small farmers. - 10 - Table 2.3 National Agrarian University - Applicants, New Entrants, Total Enrollment by Program, and Graduates 1970-1980 Enrollments growth rates Academic p.a. Programs 1970 1975 1980 1981 1970-75 1975-81 Aplicants 1,900 2,190 2,883 New Entrants 414 479 613 Enrollment Total 2,088 3,035 3,585 3,611 7.8 2.9 Agronomy 516 484 677 704 -1.0 6.4 Sciences 48 181 220 195 30.4 1.2 Forestry 51 195 330 317 30.8 8.4 Economics 88 373 420 421 33.5 2.0 Ag.Engineering 331 413 492 466 4.5 2.0 Anml.Husbandry 338 462 512 545 6.5 2.8 Fisheries 56 367 350 315 45.6 -2.6 Food Industries 146 371 385 422 20.5 2.2 Sociology 55 4 - - General Studies 400 - - - Post Graduate 59 185 196 226 25.7 3.4 BS Graduates ... '196 422 MS Graduates ... ... 47 Source: National Agrarian University . = meaningless ...- no data. available - - nil 2.21 NAU is aware of these weaknesses and their rectification is among the objectives of the revision of curricula started in July 1981. Part of the strategy toward this objective is to utilize four former haciendas expropriated in the process of the agrarian reform and donated to NAU by the state, and one farm purchased by NAU, to establish Regional Development Institutes in three natural regions of Peru: the Coast (Canete) the Sierra (Jauja) and the Selva, or eastern lowlands (Satipo, San Ramon and Tarapoto). In the future, all undergraduate students in agronomy, animal husbandry, forestry, agricultural engineering and fisheries would spend before graduation one semester in these Institutes in order to gain expe- rience in field practices, rural development and agricultural extension, provided that financing of the necessary investments in buildings and equipment in each of these Institutes becomes available. The Institutes lack completely at present the necessary structures for the projected functions of teaching of last-year undergraduate students, initial multi- plication of improved inputs, and extension services to the surrounding professional and farming communities. Their potential to finance their own operations is very good, provided that fixed capital can be provided through outside financing. Currently, the Institutes operate only as farms producing at low levels, and their work, force is housed in the dilapidated hacienda buildings. - 11 - 2.22 NAU's graduate program, the only one in Peru in agricultural fields, is of primary importance given current efforts to revitalize the agricultural sector (paras. 1.01-1.03), and especially the government's plans to rebuild the state research and extension service. Yet, an examination of 50 M.Sc. theses presented in the period 1978-1980 reveals that the emphasis has been on scientific research rather than on problems of importance for socio-economic development. The answer to this important question of relevance of university studies to current efforts to improve the performance of the agricultural sector seems to be twofold within the actual context at NAU: first, the level of the entire economics depart- ment, but especially of the agricultural economics graduate program, should be raised sufficiently to create a better understanding among students and professors in other disciplines of the role of professionals working in agriculture in contributing to the solution of socio-economic problems originating in this sector, and of the analytical tools available for this task. Second, increasing numbers of economics graduate students and teachers should be included in the program of working visits to the Regional Development Institutes to familiarize them with actual economic problems encountered in the field. 2.23 Research. NAU is the most developed agricultural research insti- tution in Peru. Research activities provide adequate support at present to the educational program, but they will have to be reinforced to cope with a projected increase of graduate students. Many research activities have been carried out outside the central campus, usually in rented land located at appropriate ecological zones of the country. Further development of research efforts could be facilitated in the context of the Regional Development Institutes when their proposed teaching and research facilities are built. At that stage, research could be organized more effectively and systematically, and its results could be tested under actual conditions facing farmers. 2.24 Extension. Through its educational extension directorate (Direccion de Proyeccion Social) NAU offers various services to the agri- culture sector. During recent years these have included technical assis- tance and training services to several agricultural cooperatives under an agreement signed with the Ministry of Agriculture. NAU also offers every year about 160 short courses for agricultural technicians and profes- sionals, and organizes international courses in cooperation with various foreign and international organizations. Following the recent government decision to rebuild the national extension service in the context of INIPA, NAU's role in this area should be concentrated mostly in training INIPA's scientific and extension personnel, and in promoting the adoption of its research products through INIPA channels. 2.25 NAU Resources. In pursuing its objectives, NAU faces constraints with regard to teacher quality, buildings, and equipment, in addition to problems of course content and orientation, and lack of appropriately located land for research purposes mentioned in the previous paragraphs. 2.26 About 100 professors left the university in the face of mounting problems facing higher education during the 1970s, and the proportion of professors with advanced degrees fell from 46% in 1975 to 40% in 1981. As a result, the present qualifications of the teaching and research staff, - 12 - although superior than in other universities, are inadequate, in particular for implementing the planned expansion of the graduate program and develop- ing much needed basic and applied research activities. It is therefore necessary to step up the staff development program, through which teaching staff members are sent overseas on leave with pay for post-graduate train- ing at the M.Sc. and Ph.D. levels. Due to the shortage of public revenue and foreign exchange, NAU has depended so far entirely on foreign scholar- ships, which finance at present the upgrading of an average six teachers annually, i.e., only 1.5% of the teaching staff. 2.27 In 1974 a severe earthquake destroyed NAU's classroom buildings and many research facilities, seriously damaged the library and disabled the four blocks of professors' offices. Most of the buildings still stand- ing had to be evacuated and temporary installations, which are still in use, put up. Teachers and students have had to squeeze in inadequate accommodations to the detriment of the quality and effectiveness of teach- ing and research. Furthermore, some scientific equipment is left unused because of lack of space. Modest allocations in the 1981 and 1982 budgets enabled NAU to start repairing the library and the professors' offices. But no allocations are in view for rebuilding the classroom buildings and the research facilities, and building necessary additional laboratories and offices. This situation is in part the result of the expectation, until 1981, that IDB would participate in financing the rebuilding of the campus, and in part the result of the extremely severe economic and fiscal crisis of 1975-1980, from which the country has not yet recovered. 2.28 NAU has been able to provide its academic departments and research programs with a fair amount of modern equipment, through donations by various international sources and bilateral agreements of the Peruvian government for equipment purchase. The value of equipment thus obtained in the last two years amounts to about US$2 million. However, it constitutes only a limited percentage of the amount needed to adequately equip the academic and research areas in the central campus, and the Regional Development Institutes. Bank Participation in Peru's Education Investment 2.29 Participation has been limited so far to one project (Loan 949-PE, US$24 million), completed in June 1982, after 2.5 years' delay. The main causes of this delay were the absence of a project unit during the first two years of the project, changes of Ministers of Education, and shortages of counterpart funds, particularly during 1976--1978. The project's objective has been to assist the government in implementing the education reform introduced in 1972, through the construction of 12 ESEPs (Escuelas Superiores de Educacion Profesional) and 26 CEBs (Centros de Educacion Basica), institutions considered as the principal building blocks of the 1972 reform, and provisgi-on of the technical assistance necessary for project implementation and overall sector development. ESEPs and CEBs were meant to introduce work oriented curricula to many cities and towns outside Lima, usually limited to traditional modes of instruction. Problems encountered during project implementation include weak administration of the project unit, delays in the definition of ESEP curricula, bureaucratic procedures blocking the use of funds allocated for technical assistance, - 13 - and a political decision to abandon at least parts of the 1972 reform. It should be noted however that, according to the thinking of the new government, the ESEPs play an important role as they will be used as technical junior colleges for training post-secondary level technicians. The CEBs seem to fit equally well within the proposed new organizational structure. 2.30 In view of past neglect of investment in education and training, the Bank is now considering an expanded lending program encompassing various priority areas. A project providing increased coverage of primary education in rural and poor urban areas was appraised in July 1982. Another composite project providing for expanded facilities and improved quality and relevance of training to a number of important vocational training agencies will be pre-appraised in October 1982. In the critical agricultural sector, the Bank has already approved a project for building up the capacity of INIPA in both the research and extension areas. The proposed project would help in the implementation of the INIPA project by supplying and upgrading the required high level personnel. III. THE PROJECT Objectives 3.01 The proposed project aims at increasing the contribution of NAU's study programs and research activities to efforts for accelerating the development of the agricultural sector. This objective is to be achieved by: (a) improving the quality of instruction and raising the practical orientation and management skills of undergraduate and graduate students through: (i) rebuilding, repair, expansion and equipping of teaching and research facilities at the central campus for 4,500 undergraduate and 500 graduate students; (ii) provision of scholarships for post-graduate studies abroad of teachers (about 40 at the M.Sc. and 20 at the Ph.D. level); (iii) construction and equipping of facilities in 4 of the farms donated to NAU by the state, in the Costa, Sierra and Selva regions (necessary for regular operation of the 3 Regional Development Institutes) for practical instruction of students in their final year and research by teachers of the technical and socio-economic problems of each region; (iv) overhaul of the graduate program in agricultural economics (including teacher positions and quality, course structure, library facilities and practical research), and strengthening of economics and business courses offered to undergraduates; - 14 - (b) upgrading professionals already working in agricultural extension, research, public administration and university teaching through specialized studies at NAU leading to the M.Sc. degree; and (c) contributing directly to applied research and innovation in agriculture through: (i) rehabilitation and expansion of research facilities in the central campus; (ii) post-graduate studies abroad of teachers/researchers; (iii) applied research of teachers/researchers in the 5 NAU farms, on regional technical and socio-economic problems; (iv) initial multiplication in the 5 NAU farms of improved products developed by NAU's teachers/researchers. Project Components 3.02 Rehabilitation/Expansion of Central Campus. (Approximate cost US$19.1 million, net of contingencies). Structures in the teaching and research areas of the La Molina campus, heavily damaged by the 1974 earth- quake, would be rebuilt, repaired and/or ex anded according to a master plan prepared by a consulting consortium. E/ An important characteristic of this master plan is the relocation of academic facilities by discipline nuclei. The majority of buildings included in the project would be new ones for replacing the temporary classrooms and laboratories in which classes have been given since 1974, and the research facilities put out of use by the earthquake. Two large laboratory blocks and part of the academic nucleus for animal husbandry, slightly or moderately damaged, would be remodelled and repaired. In addition to buildings, civil works financed by the project would include circulation roads, landscaping and a sewer network. Buildings in the administration area would be left in their present state (which, although not satisfactory, does not present immediate safety risks). Also two office blocks damaged by the earthquake, which the mission considers should be demolished and rebuilt but the university authorities, with the advice of a local consulting firm, consider safe enough to be repaired only, would be rehabilitated with NAU's own resources. 3.03 Upon completion of the proposed project, the rehabilitated campus would have teaching facilities (classrooms and laboratories) for about 4,500 undergraduate and 500 graduate students, with the following composi- tion by study area (Table 3.1). 6/ An examination of the architectural and engineering plans by the Bank, with the assistance of an outside consultant, indicates that they are designed to resist seismic forces at least equal to those that hit the campus in 1974. A few recommendations for minor modifications have been agreed to by NAU. - 15 - Table 3.1 NAU Enrollments Long-Run 1981 1987 (Around 1995) Undergraduate 3,385 3,770 4,500 Agronomy 704 1,000 Agricultural Engineering 466 700 Animal Sciences 545 700 Fisheries 315 400 Food Processing 422 500 Forestry 317 500 Basic Science 195 300 Economics and Planning 421 400 Graduate 226 330 500 Total 3,611 4,100 5,000 Undergraduate enrollments will grow very slowly (about 2% per annum), well below the expected growth of total university enrollments, Lima's popula- tion, or even the total population. This plan reflects estimates that quality, rather than volume of output, is the critical problem for univer- sity agricultural programs (projected numbers of graduates from NAU only are expected to cover at least two thirds of total demand). An assurance was provided during negotiations that NAU's total enrollments will grow at an average rate per annum not exceeding 2% between 1982 and 1988. The basis for estimating the rate of growth is total enrollments at NAU in the academic year 1981. Graduate enrollments,on the other hand, will grow by about 8% per annum, to meet the projected increased demand for profes- sionals with higher qualifications for managerial, teaching, research, and supervisory technical positions. A large part of the demand for graduate studies is expected to be for upgrading professionals already working through studies leading to the M.Sc. degree (para. 3.01 (b)). 3.04 The proposed project would also provide new buildings for the entire research area with the exception of facilities for research in cereals and the plants for milk and feedstuff processing, which are adequate in their present state. 3.05 Equipment and furniture for both teaching and research areas would be included in the project. The library would also be enriched with additional books, periodicals, and necessary equipment. The project would fill needs for new ,and also would replace existing, equipment which is worn out and/or obsolete. Equipment included in the project would be additional to expected donations from bilateral sources (Canada for forestry, Japan for fisheries, U.S.A. in various areas), and to government commitments to purchase equipment for NAU through official loans (Spain for books, E. Germany for optical instruments), which amount to about US$2 million. 3.06 The modern, safer, better equipped and less cramped buildings included in the project should enable the University to improve the quality of its teaching and research at the central campus as follows: - 16 - (a) students should receive more effective instruction in the new classrooms and more intensive practical classes in the new laboratories 7/; (b) teachers should become more effective, because of more adequate space and equipment, and also because of the expected rise in their morale from working in a safer and more congenial environment; (c) the organization of the new campus by discipline nuclei should increase the interaction between teachers-researchers in the same discipline and, therefore, teaching effectiveness and research productivity; and (d) provision of additional facilities in the research area would allow NAU teachers/researchers and graduate students to resume more systematic and fruitful research in potatoes, cotton, native fruits, vegetables, chickens, pigs, cows, sheep, rabbits and other small animals, popular diets, and pastures. 3.07 Facilities for Research and Instruction in NAU's Regional Development Institutes (Approximate cost US$3.7million). The project would provide facilities (buildings and equipment) in three of the four farms donated to NAU by the state, at Canete in the Costa, Jauja in the Sierra, and Satipo in the Selva 8/, as well as in the farm purchased by NAU at Tarapoto. The facilities would enable NAU to (a) offer practical instruction to undergraduates in their last year in a wide variety of products and under different ecological conditions; (b) provide experi- mental capacity to graduate students and professors (for exploring both technical and socio-economic problems characterizing the three main regions of Peru); (c) initially multiply improved products developed by NAU research for sale principally to farmers-entrepreneurs specialized in the reproduction and dissemination of such improved products to large numbers of producers; and (d) offer extension courses and demonstrate modern tech- niques in operation to employees of specialized private and public organi- zations and services, managers of cooperatives, and local farmers. 3.08 Undergraduates included in this program would be from the fields of agronomy, animal husbandry, forestry, agricultural engineering and fisheries (para. 2.21). They and their professors from the central campus 7/ Classroom and office space proposed in the project is comfortably adequate only for the student population projected for 1987. Long-run expansion, even though very slow, will probably require additional space, to be provided according to the existing masterplans. Laboratories, on the other hand, should be sufficient to accommmodate the projected student body for the longer run too. 8/ The fourth farm, at San Ramon in the Selva, would be further developed with NAU's own resources and would be used principally for short extension and demonstration courses, multiplication of improved products, and research work. - 17 - would spend two months each in Canete, 9/ Jauja and Satipo, for a total of six months before graduation. Instruction in the Institutes would be offered on the basis of existing curricula, although it is expected that curricula would be eventually modified to reflect experience under the new teaching conditions. 3.09 This plan would permit NAU to develop the potential of the valuable lands donated by the state, which have been grossly underutilized so far, to the benefit of the agricultural sector in the short (extension and demonstration), medium (research work, multiplication of improved products) and long (improvement in the technical and managerial capacity of NAU's graduates) term. More narrowly, but importantly for the functioning of the University, development of the Canete site which lies only about 50 miles away from the central campus, would permit the transfer of NAU's cow herd 10/ there, while the milk processing plant would continue to operate in the central campus. 3.10 The bulk of physical investment in buildings and equipment would take place in Jauja and Satipo, allowing adequate living conditions in the Sierra and Selva regions during the two months that each group of students in their last year of studies are expected to stay in each region. Practical instruction in Canete (reflecting the ecological conditions of the Costa), on the other hand, would be achieved through daily bus trips from the central campus, thus rendering unnecessary significant investment in classrooms and laboratories, which would be already available in the central campus. Consequently, investment requirements there would be limited. The same is true of Tarapoto, where proposed physical investment would consist of a few structures and limited equipment necessary for research and extension courses in animal husbandry and pasture cultivation. 3.11 An important feature of this plan, whose feasibility has been shown to the Bank's satisfaction, is that the operating expenses of the Regional Development Institutes, functioning in all five farms, would be covered by the sale of improved products. Therefore, the establishment and full-scale operation of the Regional Development Institutes would not add to the University's recurrent budget, despite their significant contribu- tion to improved teaching and research. 3.12 Teacher Upgrading (Approximate cost US$2.3 million). The project would include an accelerated program of teacher upgrading, in order to offset the loss of leading teachers/researchers during the difficult period of the 1970s and to further improve the quality of NAU's teaching body. This program would finance studies abroad for about 20 teachers for Ph.D. degrees, 40 teachers for M.Sc. degrees, and 60 teachers for short (1-4 months) upgrading courses. Teachers receiving support for studies abroad would be obligated, under NAU regulations, to return to the University and remain for a period at least twice as long as the duration of their studies 9/ See, however, para. 3.10. 10/ Which is becoming an increasing problem because of hygiene and water availability considerations, following the rapid advance of urban developments around the central campus. - 18 - abroad. This particular type of "bonding" arrangement cannot be considered airtight, especially since the demand for first-rate professionals from sources outside the University is always strong, under any economic condi- tions. However, even if some "losses" (i.e., transfer of high-level teachers-researchers to alternative uses) occur, the combination of legal obligation and the recently improved teaching conditions (diminished student unrest, improved relations between the government and the universi- ties) should ensure for the most part the success of the proposed program for upgrading the quality of NAU's teachers. 3.13 The teachers participating in this program would be selected from 19 (out of a total of 23) academic departments offering courses in NAU. The criteria for selecting teaching positions and academic departments for fellowships abroad are (a) planned expansion of post-graduate studies in each area (only teachers with M.Sc. and/or Ph.D. degrees are allowed to teach graduate courses); (b) priority research areas for NAU; and (c) need to fill vacancies in those departments that have suffered the heaviest losses of highly qualified personnel in the past. During negotiations, an assurance was provided that selection of participants to the program would be on the basis of the above criteria. 3.14 The proposed teacher upgrading program would be additional to ongoing studies of a number of teachers and bilateral agreements already concluded in this area. The number of teachers by academic department benefiting from these arrangements is shown in Table 3.2. When teachers under these agreements and the proposed project have returned to the University, NAU will have about 150 teachers with M.Sc. degrees and 90 teachers with Ph.D. degrees. 11/ These numbers represent about 30% and 18%, respectively, of the projected teaching force and correspond fairly closely to the pyramidal distribution that NAU has traditionally sought for its teaching force regarding formal qualifications. The rationale for this particular distribution derives from analysis of functional needs for teachers and researchers at various levels of responsibility and seniority. 3.15 At the peak of the program (academic year 1984-1985), about 15% of NAU's teachers would be abroad on higher degree scholarships or short upgrading trips. Although this high percentage of absentee teachers can be expected to constrain to some extent NAU's teaching and researchactiv- ities, it is lower than in a similar period of intensive teacher upgrading in the past (when about 20% of the teacher force were studying abroad). The experience from that earlier period showed that, despite the strain, the University continued to function effectively. It should be noted in this connection that NAU's rules obligate remaining teachers to assume the teaching and research burden of colleagues studying abroad, and this system has served NAU well so far in its efforts to raise the teaching and research capacity of its professional workforce. As a consequence, the proposed upgrading program would not imply an increase in NAU's recurrent budget, even temporarily. 11/ Or probably slightly less if the net movement out of the University and into other jobs continues to some extent in the future (para. 3.12). - 19 - Table 3.2 Sources of Upgrading Prograss Projected Teachers with Proposed IBRD Graduate Degree % Teachers Academic Project Other Total 1988 with Graduate Department M.Sc. Ph.D M.Sc. Ph.D. M.Sc. Ph.D. M.Sc. Ph.D. Degrees Biology 1 2 3 1 5 8 43 Human Resources 3 1 4 10 10 67 Rural Construction 1 2 1 2 3 2 28 Economics & Planning 2 1 3 2 5 3 14 5 51 Statistics 3 3 5 0 31 Physics & Meteorol. 1 1 2 9 1 40 Plant Technology 4 4 2 1 6 5 18 12 81 Horticulture 2 2 2 2 8 3 73 Forestry Industries 3 1 3 1 5 1 33 Forestry Management 2 3 2 3 4 5 37 Mathematics 1 0 3 Agric. Mechaniz. 3 1 3 1 7 1 57 Nutrition 2 1 1 2 3 3 11 4 71 Fisheries 2 2 4 0 33 Animal Husbandry 2 2 4 1 6 3 16 5 81 Chenistry I 2 1 2 4 5 35 Soil & Water Resources 4 2 4 2 9 5 67 Plant Pathology 1 1 2 1 3 5 5 100 Entonology 2 1 3 1 6 54 Soils & Fertilizer 1 2 3 5 11 84 Food Technology 3 1 2 3 3 7 3 38 Fishing Technology 2 2 2 0 9 Animal Hygiene 2 1 30 Total 37 19 19 21 56 40 155 93 49 a/ Through various international, bilateral and multilateral agreements, the most significant of which (in terms of training inputs) are the Peru-Canada forestry program, and the Peru-U.S. small ruminants and research/extension programs. 3.16 Expert Services (Approximate cost US$0.2 million). The project would finance the services of about two high level specialists, hired by NAU according to terms of reference agreed upon with the Bank, for reorga- nizing (in collaboration with the economics and planning department and University authorities) the agricultural economics study area at the graduate school level. Reorganization would involve redesigning (where necessary) the study program, teacher upgrading through postgraduate studies, and (if necessary) hiring new personnel. Contracting by NAU of at least one of these specialists would be a condition of presentation of the proposed project to the Board of Directors. The specialists would also suggest appropriate ways for increasing the effectiveness of economics and business courses offered to undergraduate students in all study areas. During negotiations the Government gave assurances that reports of the specialists would be delivered to the Bank for comment within 30 days after their receipt by NAU. Basic objectives guiding the reorganization of the agricultural economics curriculum would be (a) practical relevance of the program and (b) ability for applied socio-economic research. - 20 - 3.17 The project would also finance limited support of the economics and planning department on the part of a reputable foreign University if, as is probable, the contracted specialists recommend it. Support would be concentrated in curriculum design, appropriate bibliography for courses included in the program, and short visits of NAU professors of the economics and planning department. IV. COST ESTIMATES, FINANCING, AND IMPLEMENTATION OF THE PROJECT Cost Estimates 4.01 Investment Cost. The total cost of the project is estimated at S/42,400 million or about US$34.8 million equivalent. 12/ The estimated total cost and foreign exchange component by main project items are summarized below: Table 4.1 ESTIMATED COST BY PROJECT COMPONENT % of Base- S/ Million US$ Million line Project Component Local Foreign Total Local Foreign Total Cost 1. Rehabilitation and expansion of central campus (a) Academic Area 6498 2902 9400 9.72 4.36 14.08 54.9 (b) Research Area 1303 1057 3360 3.44 1.59 5.03 19.6 2. Regional Develop- ment Institutes 1600 904 2504 2.39 1.35 3.74 14.6 3. Teacher Upgrading 1531 1531 2.29 2.29 8.9 4. Reorg.Agr.Econ.Prog. 8 132 140 0.01 0.20 0.21 0.8 5. Project Coordination 146 28 174 0.22 0.04 0.26 1.0 Baseline Cost a/ 10555 6554 17109 15.78 9.83 25.61 100.0 Contingencies: (a) Physical 1056 655 1711 1.58 0.98 2.56 (b) Price 13944 9634 23578 3.82 2.77 6.59 Subtotal 15000 10289 25289 5.40 3.75 9.15 TOTAL PROJECT COST 25555 16843 42398 21.18 13.58 34.76 a/ Baseline cost estimates are based on February 28,1982 prices and exchange rates (S 550 = US$1). They have been projected to end-August, 1982 on the basis of current rates of inflation in Peru and in world markets (para 4.04). 12/ These estimates include sales taxes for materials incorporated in civil works, in an amount calculated at US$1.4 million. NAU is exempted from import duties as well as sales taxes for purchases of imported items sold locally. - 21 - 4.02 Estimated project cost by category of expenditure is summarized as follows: Table 4.2 ESTIMATED COST BY EXPENDITURE CATEGORY S/ Million US$ Million Local Foreign Total Local Foreign Total Structures a/ 8614 2157 10771 12.88 3.22 16.10 Internal Roads, Landscaping 563 139 702 0.84 0.21 1.05 Professional Fees 703 34 737 1.05 0.05 1.10 Furniture 257 175 432 0.38 0.26 0.64 Equipment 264 2358 2622 0.40 3.56 3.96 Teachers Studies Abroad 1531 1531 2.29 2.29 Expert Services 8 132 140 0.01 0.20 0.21 Project Coordination 146 28 174 0.22 0.04 0.26 Base Costs 10555 6554 17109 15.78 9.83 25.61 Contingencies - physical 1056 655 1711 1.58 0.98 2.56 - price 13944 9634, 23578 3.82 2.77 6.59 Total Proj.Costs 25555 16843 42398 21.18 13.58 34.76 61% 39% 100% a/ Includes site works. 4.03 Basis for Cost Estimates. Construction costs for new, and repairing and remodelling of existing, academic buildings, for buildings of the research area, for the Regional Institutes, and for campus roads and landscaping have been based on: final plans 13/, construction specifica- tions, quantities of work, price unit analyses and budgets for construction prepared by a consulting firm in 1977, and up-dated to February 28, 1982. Professional fees for design modification, preparation of bidding docu- ments, advice in contract awards and construction supervision have been estimated at 6% of the cost of the buildings plus the cost of circulation roads and landscaping at the central campus, and at 9% of the cost of buildings at the Regional Development Institutes. Furniture costs for loose furniture, have been estimated by the University on the basis of prices offered in the local market. Equipment costs have been estimated by the University project preparation team on the basis of equipment lists drawn up by the respective Academic Departments and price estimates contained in foreign manufacturers' price catalogs. Teacher training costs are based on estimated tuition fees in U.S. and Western European universi- ties, current cost of air travel, and expected duration of studies. For 13/ It has been agreed with NAU that final designs for the Institutes will be modified to conform to more economical standards of space per user (which have been agreed upon between NAU and the Bank). Final plans for the buildings of the central campus, which under the proposed project would accommodate 5,000 students instead of 9,000 proposed in the initial master plan, have been consolidated to allow more accurate offers by participating firms in the bidding for civil works. - 22 - a Ph.D. student/professor the total cost is placed at US$43,000, and for an M.Sc. student at US$29,000. Expert services are estimated to cost on the average US$8,000 per specialist7month. 4.04 Contingency allowances have been added to the base cost estimates as follows: (i) Physical Contingencies: 10% for all items included in the Project. This percentage is justified for civil works, despite the existence of final designs, for the following reasons: (a) the high percentage of repairs and remodelling, for which standard physical contingencies are above 20%; (b) soil surveys at a level of detail probably not completely satisfactory; and (c) the need to consolidate final plans initially made for larger facilities. (ii) Price Contingencies: For both the local and foreign exchange components of the items included in the project, the estimated dollar inflation from January 1, 1982 to December 31, 1987 is shown in Table 4.3. Inflation in terms of the Sol has been estimated by the Peru Programs Division as follows: for 1982 60%, 1983 40%, 1984 25%, 1985 (and beyond) 20%. Variations of the exchange rate are assumed to compensate for the difference between the local and international inflation rates. Table 4.3 EXPECTED PERCENTAGE PRICE INCREASES DURING IMPLEMENTATION 1982 1983 1984 1985 1986 1987 Construction a/ 8 8 7.5 7 6 5 Professional Fees 8 8 7.5 7 6 5 Equipment b/ 10 8 8 8 8 7 Furniture 8 8 7.5 7 6 5 Teacher Training b/ 8 7 7 7 7 6 Expert Services b/ 8 7 7 7 7 6 Project Coordination b/ 8 7 7 7 7 6 a/ Includes site works, internal roads and landscaping. b/ Price increase projections for equipment are based upon those derived by a Bank study which makes a periodic in-depth review of price increase projections by major international education equipment suppliers from several countries. Also, prices of personal services other than professional fees are expected to rise slightly faster than the cost of construction, as recovery succeeds the present period of economic crisis. 4.05 The Foreign Exchange Component is estimated at US$13.1 million representing some 39% of the total project cost, and has been calculated on the basis of the following percentages of foreign exchange over total cost: (i) construction, internal roads and landscaping, 20%; (ii) professional fees, 5%; (iii) furniture, 40%; (iv) equipment, 90%; (v) expert services, 95%; (vi) teacher studies abroad, 100%; and (vii) project coordination, 15%. - 23 - 4.06 Recurrent Costs. After being completed in 1988, the project would generate additional recurrent expenditures on the order of US$1.9 million per year at 1981 prices (the operational budget is expected to increase from US$9.7 million in 1981 to US$11.6 million in 1988). The major components of the increase in recurrent expenditures are teacher salaries for US$0.3 million (to accommodate the proposed modest increase in enrollments), consumable materials for US$1.1 million, and utilities for US$0.2 million. The number of administrative and auxiliary personnel is planned to remain unchanged on balance because of a relative oversupply of, especially auxiliary, personnel. These increases in recurrent expenditures (which should be covered by increased appropriations to NAU by Congress as part of the annual budget approval exercise) include about 20% of projected operating costs for the Regional Development Institutes. As mentioned in para. 3.11, the costs of operation of the Institutes (estimated at about US$0.5 million by 1988, at 1981 prices) are expected to be covered by the net income from sales of improved products and by payments for services offered to participants in extension courses, etc. Sales of products so far have been more than sufficient to cover the Institutes' cost of oper- ation at present levels. The estimate that a part of the Institutes' operating expenses will have to be covered by NAU's regular budget is a conservative one. Probably, income generated by the Institutes' products and services for which a price will be charged will be more than enough to cover projected operating costs. Project Financing 4.07 Financing. The total project cost of US$34.76 million would be financed as follows: (a) the proposed Bank loan of US$17.3 million would finance about 49% of total project costs 14/ (100% of foreign costs and about 16% of local costs), as well as a front-end fee of about US$250,000;and (b) the Government would finance about 51% of total project costs, equivalent to about 84% of local costs. NAU has agreed to contribute US$ million equivalent towards financing these costs. The proposed financing of local costs with loan proceeds is justified by the importance of the project for the development of the agricultural sector, and the current balance-of-payments difficulties faced by Peru. To facilitate project execution before the proposed loan would be effective, it is recommended that up to US$0.25 million of retroactive financing be made available for expenditures after April 1, 1982 on designs (para 4.03, footnote) and other preliminary stages of civil works; teacher upgrading; expert services; and project coordination. 4.08 Disbursement Plan. The proposed loan is expected to be disbursed over a period of about six years (January 1, 1983 to December 31, 1988) against fully documented withdrawal applications, 15/ to cover: 14/ The loan would finance about 50% of total project costs net of taxes. 15/ Disbursements for repairs and remodelling for existing buildings at the central campus, which will be done by NAU through direct administration, will be made against statements of expenditures. - 24 - (a) 35% of total expenditures for civil works plus related professional fees; (b) 100% of foreign expenditures for directly imported equipment and furniture, including installation costs where applicable; (c) 80% of total expenditures for locally procured equipment and furniture; (d) 100% of total expenditures for teachers studies abroad and expert services; (e) 100% of total costs for foreign travel and per diem, and 40% for salaries, for project coordination. 4.09 The estimated schedule of disbursements, based on the implementa- tion schedule (Table 4.5) by calendar and IBRD fiscal years, is shown in Table 4.4. Table 4.4 ESTIMATED DISBURSEMENT SCHEDULE (US$ million) Accumulated Undisbursed IBRD Disbursements Disbursements Balance CY Sem FY Sem Expenditures Amount % Amount % Amount % 1982 II 1983 I 0.40 0.00 0.0 0.00 0.0 17.30 100.0 1983 I II 1.00 0.50 2.9 0.50 2.9 16.80 97.1 II 1984 I 2.00 0.90 5.2 1.40 8.1 15.90 91.9 1984 I II 4.00 1.60 9.2 3.00 17.3 14.30 82.7 II 1985 I 5.20 1.90 11.0 4.90 28.3 12.40 71.7 1985 I II 4.00 2.60 15.0 7.50 43.3 9.80 56.7 II 1986 I 5.20 2.00 11.6 9.50 54.9 7.80 45.1 1986 I II 4.00 2.60 15.0 12.10 69.9 5.20 30.1 II 1987- I 4.00 2.00 11.6 14.10 81.5 3.20 18.5 1987 I II 2.40 1.80 10.4 15.90 91.9 1.40 8.1 II 1988 I 1.70 0.70 4.1 16.60 96.0 0.70 4.0 1988 I II 1.10 0.40 2.0 17.00 98.0 0.30 2.0 II 1989 I 0.30 2.0 17.30 100.0 0.00 0.0 Total 35.00 17.30 '100.0 4.10 The estimated disbursement period of 6 years is about four fifths as long as that expected for the ongoing education project (Loan 949-PE), completed in mid-82. The shorter implementation period for the proposed project is considered feasible on the basis of: (a) more readily available and dedicated high-quality administrative and supervisory personnel in NAU than has been the case with Loan 949-PE; (b) advanced stage of project preparation; and (c) the less complex nature of the proposed project. - 25 - Project Implementation 4.11 Project Administration. Overall project implementation will be the responsibility of NAU. The Rector of the University has nominated a NAU professor directly responsible to him, whose qualifications are accept- able to the Bank and who will be freed from his teaching and research duties in order to work full-time to coordinate and monitor the execution of all activities required for project implementation. This coordinator will be assisted by a bi-lingual secretary. An assurance was provided during negotiations that the position of project coordinator will be filled at all times during project execution and that the person nominated will possess qualifications acceptable to the Bank. Responsibility for various project aspects would be distributed as follows: (a) The Academic Departments (each one in its own field), which have been responsible for the preparation of lists and technical specifications for equipment and furniture, would also assume responsibility, subject to approval by the Rector, for (i) the review and analysis of the bids for procurement, and supervision of delivery and installation, of equipment and furniture, and (ii) selection of candidates for the teacher training program. (b) NAU's Tendering Committee would be responsible for: (i) procurement of equipment and furniture and (ii) procurement of civil works. The Directorate of Accounting and Finance would provide logistical support to the Tendering Committee, and it would also have responsibility for project accounting and preparation of requests for disbursements and reimbursements to be submitted to IBRD. (c) A consulting firm, under contract with NAU, has been responsible for preparing the basis for prequalification of building contractors and the bidding documents for construction. The same or a different consulting firm would review and analyze the bids for construction, and would supervise the construction of new facilities, and the remodelling and repair of existing ones. During negotiations, the government provided an assurance that the consulting firm staff supervising the construction of project facilities would possess professional qualifications and experience in antiseismic construction in conformity with terms of reference acceptable to the Bank. These arrangements are considered satisfactory for successful project execution, especially in view of the fact that NAU possesses experienced and well qualified staff in the units charged with project administration. 4.12 Implementation Schedule. The project is expected to be imple- mented in six years. The construction, furnishing and equipping of facil- ities in the central campus and the Regional Institutes, the teacher upgrading program, and the reorganization of the agricultural econamics program are scheduled to be completed by June 30, 1988. This scheduling is considered within NAU's capacity and would serve as the basis for monitor- ing project implementation. Expected accumulated completion rates are shown in Table 4.5. The Closing Date for the proposed loan would be December 31, 1988, to allow sufficient time for submission and processing of final withdrawal applications. - 26 - Table 4.5 IMPLEMENTATION SCHEDULE Accumulated Percentage Completed by Calendar Year and Semester 1982 1983 1984 1985 1986 1987 1988 Item 2 1 2 1 2 12 1 2 12 Civil Works Site selection and acquisition 100 Preliminary Plans 100 Final Plans 100 Prequalification of Contractors 100 Bidding Documents 100 Award of Contracts: (a) Internal Roads, Landscaping 70 90 100 (b) Structures 10 26 40 65 75 90 100 Construction: (a) Internal Roads, Landscaping 20 40 60 80 90 100 (b) Structures 10 25 50 60 70 80 85 95 100 Furniture and Equipment Lists, Specifications, Bidding Documents 50 100 Award of contracts 10 25 50 70 80 90 100 Installation 10 25 50 60 70 80 90 100 Teachers Studies Abroad 3 16 42 73 80 90 100 Expert Services 12 37 62 87 100 4.13 Procurement. Civil works including internal roads and landscap- ing, for a total of US$17.1 million (base costs) would involve 5 sites in 5 departments. Copies of titles to legal ownership by NAU for all sites have been delivered to the Bank. Peru's construction industry is well developed and competitive with international bidders. Furthermore, repairs of classrooms and laboratories which contain equipment and in which classes are delivered will require above ordinary care in construction and supervision. Consequently, civil works contracts for new buildings would be awarded on the basis of local competitive bidding (LCB) under bidding procedures which are acceptable to the Bank and do not preclude foreign contractors from participating in the bidding, except for individual contracts for the central campus whose: estimated value exceeded US$1 million, which would be awarded on the basis of ICB. During negotiations NAU agreed that it will package individual civil works bids to the maximum extent permitted by the need to allow continued operation of the campus during the conetruction period. Repairs and remodelling would be done under direct administration by NAU. Under these arrangements, it is expected that about US$15.0 million worth of civil works will be awarded under ICB procedures. Recommended contract awards for civil works of more than US$500,000 would be presented to the Bank for prior review. For contracts of less than US$500,000, NAU would keep bid evaluations and contracts for ex post review by Bank staff during project supervision. - 27 - 4.14 Equipment and furniture, of a total value of about US$4.4 million (base costs), would be procured mainly through ICB. Equipment lists including specifications and bidding documents were presented to the Bank for review and approval during negotiations. Equipment items would be packaged to the extent possible to permit bulk procurement. Equipment packages in excess of US$200,000 would be procured through ICB. Packages of US$20,000 to US$200,000, up to a total of US$500,000, would be procured through local procedures which are satisfactory to the Bank. Items or groups of items costing less than US$20,000, of an aggregate value up to US$200,000, for which ICB or LCB would not be practical, would be procured through local shopping. In all cases of local procurement, most items would be foreign made. Under the above procedures, about 85% of equipment would be procured through ICB, 10% through LCB, and 5% through local shopping. 4.15 Recommended contract awards for equipment of more than US$200,000 would be presented to the Bank for prior review. For contracts of less than US$200,000, NAU would keep bid evaluations and contracts available for ex post review by Bank staff during project supervision. In comparing local and foreign bids, local manufacturers would be given a margin of preference equal to the prevailing import duty rate or 15% of CIF costs of imported goods, whichever were lower. Manufacturers from countries of the Cartagena Agreement other than Peru would be given a margin of preference over other foreign manufacturers equal to the difference in import duties charged by Peru or 15% of CIF costs of imported goods, whichever were lower. 4.16 Auditing. NAU, like all other universities in Peru, is subject to auditing by the office of the General Auditor (Contralor General). The general practice is for the General Auditor to delegate authority to an auditing team working in, and paid by, each university but formally consid- ered as employed by the General Auditor's Office. In addition, external control is exercised through infrequent visits (on the average, once every two years) by auditing teams from the General Auditor's Office and, some- times, the Ministry of Education as well. This practice is generally adequate for project purposes. During negotiations the Government gave assurances that either (i) the General Auditor's office will from now on send external auditing teams to NAU on a regular basis (at least once a year) or (ii) external auditing would be done annually by a certified auditing firm. Under either arrangement, a copy of the audit report would be given to the Bank. 4.17 Monitoring. Effective monitoring is essential for satisfactory project implementation, and the proposed arrangements indicate that moni- toring effectiveness will be achieved. By assigning the task of project coordinator to one of its professors, NAU has guaranteed competence, intensive interest for the fate of the project, and absence of significant friction between the various NAU units participating in project execution. Civil works progress will be monitored by a private firm specialized in this area, in close collaboration with the project coordinator and, through him, the NAU Directorate in charge of procurement. The timing of procurement for furniture and equipment, as a function of progress in civil works, will be monitored by the project coordinator, and suppliers' com- pliance with specifications by the respective Academic Departments and the - 28 - Directors of the Regional Development Institutes. Selection of teachers for studies abroad would be made by the respective Academic Departments; the timing and location for each nominee would be jointly decided by the Rector, the project coordinator, and the Department Chairman; and re-integration of teachers completing their studies would be up to the Departments, under the supervision of the Rector. Monitoring of progress in reorganizing the agricultural economics program and improving the quality of economics courses would be included in the terms of reference (to be agreed upon between NAU and the Bank by negotiations) of the specialist(s) contracted for advising NAU on such reorganization. The Bank could contribute to effective monitoring by staffing supervision missions with the necessary personnel (educators familiar with the operation of agricultural universities and, occasionally, an economist with an agricul- tural economics background). 4.18 Evaluation. Because of long gestation periods, the effects of the proposed project on teaching and research quality, and even more on the development of the agricultural sector, can be evaluated only tentatively, and then only with regard to few components, during project execution. Even so, it will be of interest to assess those effects of the project that can be measured, or at least inferred, by the time the project is com- pleted. Such effects can probably be studied in the areas of: (a) utilization of physical space and equipment, especially in class- rooms and laboratories, as a result of design and equipment procurement plans; (b) adequacy and utilization of library facilities; (c) operation of the Regional Development Institutes; (d) teacher upgrading and utilization (initial stages); and (e) reorganization of the agricultural economics program, and of general economics courses. Evaluation of the effects of the project in these areas could be carried out mostly by NAU professors. During negotiations, an assurance was obtained that NAU would carry out evaluation of the effects of the project previously described, according to a plan. and timetable agreed upon with the Bank by June 30, 1983. For topic (e), the consultant(s) could be recontracted towards the later stages of the project, to help with evalua- tion. The Bank could contribute to this limited evaluation effort if, in addition to the standard completion mission, it scheduled and staffed its supervision missions so as to respond to the need for evaluation and support NAU staff in their efforts. - 29 - V. BENEFITS AND RISKS Benefits 5.01 The ultimate benefit of the proposed project would be to raise Peruvian farmers' productivity and incomes in the medium and long run. This benefit would come about through: (a) The graduation of professionals, at both the undergraduate and graduate levels, better prepared technically and with increased managerial skills, who would take up positions of increased responsibility in (i) agriculture-related public offices, (ii) the research and extension institute (INIPA), (iii) manage- ment of farm cooperatives and private farms, (iv) agriculture- related commercial, manufacturing and banking enterprises, and (v) agricultural programs of Peruvian universities. (b) The strengthening of research (both basic and applied) activities at NAU and the dissemination of the products of such research through NAU students, collaborative agreements with INIPA, and initial commercial production at the Regional Development Institutes. 5.02 The distributive effects of the project should be also positive. It is probable that investment in higher education has negative immediate distributive effects when compared, for example, with investment in rural primary education. But the expected further benefit of raising farmers' incomes (as well as the standard of living of poor urban groups through lower food prices) should have stronger distributive effects than the relative increase of professionals, who are paid more highly than less skilled occupational groups. Risks 5.03 One identifiable special risk of the project would be a strong earthquake causing heavy damage to project facilities, as happened in 1974 when several buildings in the central campus had just been completed. The appraisal mission was satisfied that buildings constructed according to current structural designs should withstand earthquakes at least as strong as the one in 1974. Additional safeguards would be (a) to include at appropriate times in supervision missions a structural engineer, rather than an architect, for more effective supervision of civil works; and (b) an assurance that supervision of civil works would be done by profes- sionals highly qualified and experienced in antiseismic construction. 5.04 A second risk is that the government may not provide continued, and expanded, financial support to NAU's operations in the future. However, as the government has provided such support at adequate levels in the past in the midst of a grave economic and fiscal crisis, and given that the present government strongly supports the proposed project, this risk may not be large. - 30 - VI. AGREEMENTS REACHED AND RECOMENDATIONS 6.01 During negotiations the Government has provided assurances that: (a) NAU's total undergraduate enrollments would grow at an average rate per annum not exceeding 2% between 1982 and 1988. The basis for estimating the rate of growth is total enrollments at NAU in the academic year 1981 (para. 3.03); (b) The selection of participants to the program of teacher studies abroad would be on the basis of criteria agreed upon with the Bank (para. 3.13); (c) Reports prepared by the specialists contracted for the reorganization of the agricultural economics program would be delivered for comment to the Bank within 30 days after their receipt by NAU (para. 3.16); (d) The position of project coordinator will be filled at all times during project execution and the person nominated will possess qualifications acceptable to the Bank (para. 4.11); (e) The consulting firm staff supervising the construction of project facilities should possess professional qualifications and experience in antiseismic construction in conformity with terms of reference acceptable to the Bank (para. 4.11(c)); (f) A report by an external auditing team (either from the General Auditor's office or from a private certified auditing team) would be prepared annually and, together with NAU's certified financial statements, would be forwarded to the Bank for its review and comments within 6 months after the end of the fiscal year (para. 4.16); and (g) NAU staff would evaluate project effects according to a timetable to be agreed upon with the Bank by June 30, 1983 (para. 4.18). 6.02 Contracting of at least one specialist on reorganizing the agri- cultural economics and economics area of studies would be a condition of Board presentation (para. 3.16). 6.03 Up to US$0.25 million of retroactive financing should be made available for expenditures on the preparatory stages of civil works, initiating the teacher upgrading program, and contracting expert services (para. 4.07). 6.04 Subject to the above conditions, the proposed project constitutes a suitable basis for a Bank loan to the Government of Peru of US$17.3 mil- lion equivalent, with a term of 17 years including a grace period of 4 years. - 31 - PERU ANNEX I HIGHER AGRICULTURAL EDUCATION PROJECT Page 1 of 2 Comparative Education Indicators September 29, 1982 :CENTRAL: I I GOVT. I :EKP. ON: :PRI. :RECURRENT: S E.C. :EDU. AS: EDUCATION ILITER- P PRI. ICOMPLE- ISTU- :UNIT COST:PROGRESS-: SEC. ST0- :HIGHE k: t% TTL. : RECURRENT :ACY IENROLL:TION 'DENTS:PRIM. ED.:ION RATE :ENROLL:DENTS:ENROLL: GNP/ : % GNP :CENTRAL:EXP ALLOCATED: RATE IRATID :RATE FDR:PER :AS X GNP/!FROM PR.I.:RATID :PER ZRATIL0 BASE:POP. :CAPITA: DEVOTED: GOVT. I TO: :(% OF I NET :PRI.SCH.:TEACH- CAPITA :TO SEC. NET !TLACH- GRD;SS YR:MILLS.: (US$): TO EDUi.: EXP. IPRI. SEC. HI.IADULTS)l (%) ICYCLE(%)!ER I (%) I (I ) R I F %) * (1979):(1979): 1 !(1976)1 ! (1) : (2) : (3) ! (4) : (5) 1 (6) : (7) : (9) : (9) : (10) : (11) : (12) !(13) Zt14) : DEVELOPED COUNTRIES AUSTRALIA S0 14.6 8,870 6.3A 14.6 ------ --- 1OA 103X 100 21 - 99 73 13 20.90 CANADA 81 23.7 9,650A 7.7A 1B.5AY 30A? 34A? 23A? 99 106X 100 21 19.9A? 100 92X 1B 2?.601 GERMANY, F.R. 79 61.4 12.220 4.6 9.9A --- ---- --- --- 89A 1OA --- ---- 100A 944 --- 12.10A NETHERLANDS 79 14.1 11,084 7.9 5.1 20 35 25 99' 96 95 1B 15.3 99 82 13 12.40 NEW ZEALAND sD 3.2 6,081 5.5W 13.4 37 31 28 99 100 100 24 11.6 100 82 15 25.B0X* SWEDEN 79 8.3 12,863 9.0 18.2 31 10 10 99A 99X 100 1BA 19.9 100 79K IOAY 36.bOAY EASTERN AFRICA BOTSWANA 80 0.8B 7200 6.3P 19.3 46 28 15 358 94 74 32 22.0 33** 20 18 1.50 BURUNDI 81 4.2 235 2.8BW 19.0 42 35 23 25 28X 35 37 22.6 12 3X 17 1.00 CDMOROS 80 0.48 260 6.5W 25.4 40 28 14 --- 99X 65 45 16.0 58 21X 30 1.40 DJIBOUTI 81 0.3 460 5.4 10.8 60 40 ... 10 32 --- 41 --- 60 8 19 0.50 ETHIOPIA 80 31.08 130 2.2P 11.1A 52 32 14A 15 38 --- 59 18.0 --- 9 41A 5.10 KENYA 79 15.3 390 5.9W 1B.0B 71 15 14 45 92 74 40 15.8 41 19 28 1.00 LESOTHO sD 1.3 410P 4.3P 21.0 51 24 25 52 64 61 49 4.0 64 17 21 0.90 MADAGASCAR 77 8.5 330 4.0W 24.0 53 28 19 50 94BX 33 558 8.0 38 14 23 3.10BY MALAWI 81 6.1B 23DB 3.4 10.28 38 14 25 258 62 23 65 5.8 12 4 21 0.40 MAURITIUS 79 0.9 1,0808 6.8Y 17.58 50 26 6 --- 82Y 99 20BY 19.5' 90 738XY 278Y 1.568 RWANDA 80 5.08 20DB 3.2 21.3 62 17 11 238 57X 62 40 14.0 6 4K 13 0.40 SOMALIA 78 3.B 185A 2.0W 11.0 55 10 21 50B 268Y --- 278 20.4 53B 4BX 16B 1.00 SUDAN 7B 17.9 450 4.5W 19.9 4B 36 16 20B 509K 74 358 46.7 33 16bX 19B 1.07Y SWAZILAND 7B 0.5 650 7.1W 12.2 36 33 18 658 808Y 49A 35BY 7.7 66A 33BXY 20A 2.00 TANZANIA 80 18.5 260 5.9 17.7 47 10 16 79B 98B 87 21 11.0 19B 3 20A 0.018 UGANDA 80 12.68 300B --- 16.1 238 37B 208 48 54K 61 34 --- 17 5 23 0.60 ZAIRE 7B 27.5 210A 6.0 22,0 49 26 25 15 84Y 44 42X --- 41 13X 27 1.108EY ZAMBIA 80 5.78 5668 4.5P 11.1 48 23 22 448 95 80 4B 12.9 19 16 22 1.50 ZIMBABWE 81 7.78 70D 5.1 19.5 62 32 6 448 90 55 39 20.0 8s 15 23 0.50 WESTERN AFRICA BENIN 79 3.4B 320B 6.5W 35.0 43 21 5 11B 42 30 46 14.0 30 11 43 1.00Y CAMEROON 78 8.2 590 2.9Y 16.0Y 33A 43A 2DA --- 74Y 45A SOY 11.8A 20A 14Y 26 1.30Y C.A.R. 79 2.2 280 3.BAY 20.6AY --- --- --- --- --- --- 6SAY --- 0.70AY CHAD 76 4.4 120 2.4BWY 21.7B --- --- --- 15 25Y --- 77 --- 3XY 21 0.20Y CONGO (B) 76 1.5 670 9.DAWY 27.7AY ------ ---------- --- 56BY --- 30 --- 43BY 4.OOAY GABON 77 0.6 3,420 3.7BY 8.4Y --- --- ------ --- --- --- 46BY --- --- --- 19BY 2.80AY GAMBIA 77 0.6 220 3.3AW 6.5B 46 25A 6A 108 408Y 90A 27BY 44.7A 40 128XY 17 --- GHANA 76 11.3 400 4.0Y 15.58 --- --- --- --- 718XY --- 27BY --- --- 36BXY 21 -- GUINEA 77 5.3 270 4.3BP 20.08 30A 31A 30A 20 348XY 168 398 31.1? 868 15BXY 24 5.10BY IVORY COAST 81 8.2B 1,0708 10.0 45.0 33 46 13 30B 60 86 43 26.0 47 15AXY 26 1.90AY LIBERIA 80 1.9 520 4.6 19.6 43 23 24 30 52 32 35 20.0 76 22 20 2.90 MALI 77 6.7B 1808 4.28 21.78 45A 37A iA 10 288XY --- 438Y --- 50A 6X --- 0.90BY MAURITANIA 78 1.68 3208 5.5 16.9 33 43 25 178 32 60 44 52.0 30 9 25 0.37 NIGER 79 5.2 300 4.3AY 16.6AY 52A 43A 5A 8 17 56A 41A 38.7A 40 2 248 0.20Y NIGERIA 77 82.6 910 4.1Y 9.6 ----- --------- --- --- --- --- 10XY 25 0.17Y SENEGAL 77 5.5 450 5.0 23.0 46 34 20 10 348XY --- 43BY --- 20 10 21 2.20BY SIERRA LEONE 77 3.4 250 4.08 16.08 ---- --- --- 158 37X --- 35 25.08 84 15X 22 0.60BY TOGO 7B 2.4 400 6.50W 26.50 30A 28A 21A 18 74 40 548Y 38.0 52 32BXY 4BB 1.609Y UPPER VOLTA 78 5.6 180 3.OAW 1P.3AY 31 16 32 --- 15BY 23 538Y 52.5? 19 38KY 25 0.02Y LATIN AMERICA AND THE CARIBBEAN ARGENTINA 78 27.3 2,210 2.7 10.9 43A 31A I8A 938 89 52 17 --- 87 31 8 23.00 BAHAMAS 79 0.2 2,770 5.7 19.1 36 36 11 93B 99 97 24 --- 97 75 19 --- BARBADOS 78 0.2 2,680 B.5AWY 22.1A 43A 31A 16A 998 100Y 99A 27Y 19.9A 99A 7BY 20Y --- BOLIVIA so 5.4 550 4.1AY 30.SA --- --- --- 63 74Y --- 20Y --- --- 15Y --- 12.60Y BRAZIL 79 116.5 1,770 3.8 6.2 51 --- 14 76 73AY --- 23AY 4.5B 618 15AY 14AY 12.628 CHILE 76 10.9 1,890 3.2BY 13.08 --- --- --- --- 119BXY --- 34BY --- --- 55BXY 20BY 11.90BY COLOMBIA 80 26.78 1,1808 3.3 25.0 35 20 20 818 78 36 32 6.6 --- 47 20 10.02AY COSTA RICA 80 2.2B 1810B 8.4 31.1 40 27 33 90 93 77 33 5.5 77 40 27 14.00 CUBA 78 9.8 --- 8.0 11.0 --- --- --- 96 112BXY 98 1BBY --- 9B 71BXY 15 19.02BY DOMINICAN REP 78 S.3 1,030 2.1Y 13.9Y --- --- --- 67 --- --- --- --- --- --- --- --- ECUADOR 80 8.48 1,110 6.OP 36.7 45 31 16 81 105 --- 36 12.6 86 47 16 29.00 EL SALVADOR 77 4.4 640 3,4BY 23.1BY 64 8 27 62 82XY 32 39 --- 41 26BXY 27BY 7.90BY GUATEMALA 78 6.8 1,010 1.7AY 12.68-- --- ----- --- 6VBXY --- 35BY --- 69 15BXY 198Y 5.50Y GUYANA 76 0.B 630 8,1by 13.BBY --- --- ----- --- 99BXY --- 32BY --- --- 59BXY --- 3.00BY HAITI 80 5.08 230 3.4VW 7.9AY 65 9 6 23B 50 20 41 19.0 62A 4A 27 0.80 HONDURAS 7B 3.6 520 3.58Y 14.3BY 62A IA 19A 60 89BXY 30A 41BY 12.SA 6BA 21XY 19 8.00Y JAMAICA 80 2.1 1,110 6.5 13.7 37 43 20 90 98 98 40 2.3 95 81 22 8.00 MEXICO 80 65.5 1,880 4.7 17.OA 46 39 15 92 98 53 44 9.5 86 56 17 10.30 NICARAGUA 78 2.6B 6108 3.0BW 14.08 --- --- ------ 90B 85BX 24 37B --- --- 26BX 308 --- PANAMA 78 1.88 1,550B 5.58WY 21.8BY 42A 13A 13 828 958Y --- 25BY 11.6 85A 50BY 27BY 20.40BY PARAGUAY 79 3.0 1,140 1,4W 14.2 42 17 20 84 83 32 2B 3.1R 76 22 12 0.70 PERU 80 16.6 1,000 3.6 14.3 53 is 19 80 83 56 39 9.8 89 39 22 14.40Y TRINIDAD I T. 77 1.1 3,910 4.BBY 8.8BY 48 32 20 95 98 91 30 10.5' 49 62 24 --- URUGUAY 78 2.9 2,500 2.5 9.48 --- --- --- 94 105BK --- 248 --- --- 64BX --- 17.80AY VENEZUELA 7B 14.4 3,440 5,1Y 18.98 --- --- --- 82 106BX --- 28 --- --- 3BBX 17 21.10Y - 32 - 110HR tRSLTURA 26CATION PRO1ECT A. 7.o 3 Compar,0:v. Educa66on Indientcrn Sep2tam.v 29, 1982 DOV 1TkA l i Ii 1 l I EX . N: PRI IRECURRLN1 i IBE I l 1 11EDi . A62 EDUCATION 11Ek- PRI. 1COMPLE- :ST2- 1üN9l C4ST1PRD3RESS-1 SE1. !STU- 1ED1161k1 :9< TTL. I RTir2N RATE :E,NROLL;51NENL I I IMP/ I % NPý :CENTRALIEXPCALLECATEID' RATE IRTIO ýRATE FRPER IAg ; P/iFROM PRI,.:RATIO ý,PERCMRATIC | tEP6 CAPITAi DEVOEL1 ILI2 2R19 I T y( :F i NE RI,.CH;1TEACH. CAPITA 12 SE. 1 !T9AC- NeR,P, YR EL. ) ( tS. TO E.,1 EX. 9PR2. SEC. AISAULTS)I (1) :CYeLE2C)1ER x i (X) iFR :(x) :1(99)6979 976 i I I 4 (n I 6 I (7 l 9) 1 LO I L 1 ) ý 3 ;c ) EAST ASIA AND THE FPACIFZCC CHINA 79 9Fl.< 260 3,3 6,6 29 34 27Y 66 9.1 64 27 1.0 a3 47 19 2.63 2ND2NE2IA 62 142.9 370 3.1 9.1AW 66 39 -- 32B 94AK 66 34 1.4 44 241 6 2.229 K2REA 7« 37.6 2.222 2.?BW L7.46Y 35 29 36 93 p600Y 94 48 - - 91 696Y 396 1.46B MALAYSI'A 64 24.26 2,4606 1.2 22.0 39 32 23 636 96X 94 26 - 4 61 27 3.70 pAÅp4A N.U. 79 2.9 760 1.4w 16.4W -- - ------29 73 32 1.1 - 6461 23 PHILIPPINES 79 46.3B 690 2.2W 14.0 64 36*** - - 759 54 6t. 31 7.1 9 55 36 2140 sIN9AP9RE 62 2.4 4.420 2.? 6.7 39 41 16 64 92 92 31 H.U 96 5 23 6.10 22L392N 2BL. 60 0.2 462 4.2PW 12.0 A 41 34 2 -- 60 6< 26 -- 31. 1E THAILAND 62 47.36 723 3,4 20.9 19 12 13 66 96 - 2? 9.3 59 26 22 4.00 SOUTH ASIA BANCLADELSH 79 92.36 901 1.P. 0.1AY 51 1 7 20 22B 63Y5 --- 3 .6 - 414 23 2.43 ,NDiiA ? 6'9.6 210 2.9Y 9.9W1 - 36 79x - 4 · 29X - - 6.30AY NEPPIL 6 14.36 1429 2,4 9.9 2 16 36 29 66X 30 39A --- 64 14X 2DA 2.OdAY 9AMSTAN 79 79.7 27" 20wy S. Ly 39 26 27 24 6 X 6D 49 6.1 I1 229 60 6.00 EUROPE, MIDULEI LAST AND NORTH AFhICA AF29HANITAN 79 12.1 --- 2.7 3.? 4Ž 2P <1 12 312Y 69 3?" -- 9Ž 6 226Y 1.22DY AL2,RIA 7v 14.3 2?7?0 3.6W 17.6 346 269 229 3 H3Y 49 3? 7.01 129 29Ž 26 3.92Y E[YPI 7H 36.9 500 5.5PW6 6.9 31 31, 6 44 746X DO1 346 9. 83. 4?bK 266 1th,00 IREEE 76 9.3 4.140 2,6W 069 37 26 21 - 97"Y - 46 6. -- 790X 27py l7,620 I-AN 79 36.9 . . .?A 14.1AY - ------ 5 12 32A -- -- 44AX 34A 4,9DAY IRAU 79 12.6 7.710 .3AY 6,9AY -- -- I- -- 12 -- 2 --- 466Y 29A 9.30AY IRELAND 6 3.46 4,490 6.3AY 11.AY - ---- 9 93 94 29 - - 98 Bl 14 11.20 J2RDAN 79 2.2 22 4.3w 7.2 19 44 12 726 97X 85 32 7.2 94 44X 20 14.20 LEBAN N 79 2.3 - B.6ASY--- --- 96X -- 19 -- --- 46X --- 27.90Ay MOR9CC2 60 19.S 740 6.3AW 17.A 36 44 20 26 56AY 35 39 29.7 40 25X 21 4.20 OMAN 79 0.9 3,530 3.7AWy 4.9AY - -- - - 45A - 23A -- --- 7X 9 -- P9RTU0AL 7? 9.66 2.1019 4.D 15.4 41 21 1 72 92y 62 19 --- 75 32Y 236 10.BOY R2MAN1A 70 22.1 2.232 3,9by 6.2 -- --- 98 1069 -- 6 23 -- 96 649x 26B 10.60Y SPAI2 76 37.2 4,922 2.1Y 26,6 ---- --- 941Y --- 296 --- --- 67Y --- 24.10BY 2YR1A 76 8.6 1,173 4.4P 1.3 39 25 26 ba 87Y 641 35B --- 62 41BY 21B 12.60 TUNISIA 79 6.4 1,130 7.P 29.0 42 39 16 626 1241 62 396 12.B 32 32X 34 6.00 TURKEY 79 4.3 1,341 3.69WY 26.6 -- -- -- 3 60 0A --- - 3DA --- --- 41X 27 7.07AY YEMEN A.k. 61 6.a 420 2.2PW 12.0 94 7 7 21B 37 11A 36Y 67.0 6s 3 23 1.10 YEMEN P..R . 62 1.9 424 6.0 10.5 63 14 9 401 65 13 24 22.4 81 22 16 2.52 SUMMARY FDR DEVELUPINr ONTIS NumBER OF couNTRIE1: 20 94 69 67 65 745 57 60 91 56 66 48 83 94 9942E: (1.4- (2.0- (9- (7- (- (8- (15- (12- :27- <1.2- 46- 12- <6- (8.01 12.0) 45.0) 94) 46< 36: 99: 15) 99) 77) 67.0) 99) 61) 461 29.0) QUARTILES3 UPPERN: 5.6 19.9 52 32 21 81 94 63 41 20 84 52 23 10.6 MEDIAN6 4,0 1.4 43 28 19 60 63 61 35 12 60 22 20 3.1 LOWER 1 3.0 10.S 37 27 14 23 13 39 29 7 39 14 19 1.2 3UARTILE. DEVIATIN 1.3 4.7 7.4 B,7 3.5 28.9 20,4 21.0 6.2 6.2 22.5 19.2 2.0 4.8 MEAN9 4.4 15.9 41 27 16 412 73 61 36 16 59 32 23 3.2 STANDARD DEV:ATION1 1.0 7,4 12 10 7 30 26 21 21 14 27 24 7 1,7 MEDIAN9 4.0 15.4 43 28 19 50 83 61 31 12 60 22 22 2,9 SYMPOLSI FCOTMCTEql --DATUM UWAVAILAELE A =DATUM PRIDR TD BABE YEAR ..MAGNItTUDE NILO NEULIBIBLE B AU DERECIMT THAN BASE YEAýR T DATUM DUE 5TILNABLEN =C1iTRRENTORE PRICEB * INCLU OES PrARkT -TI ME STUDIENTS PFl Grip ** CUMBINMED, WITh PR IM ARY D : NCLýUDES FOREZDN AID **COMBIND WITmH OHG.ER R =CENTRAL c, UERNIiMENMT ONLY q MIN"STRY OF EDUCNtION (MOE) ONLY T •MDE AND STATE GOVERNMENMT ONLI-y u6 2 EKCLIDE CENTRAL 21ENM _ Nt v IMC LUDES PIVA TE EXPENDITUR PR V92N2 0 21419 3299914 6 PUBLIC EKPENDiTE 0NLY x INCLUDE a OER-AGE STUDERTE, y= UNESC SURCES SOURCESI C3LUMNS 1 AND 2: WRLD BANK ATLAS R IBRD MISSIDNS. CLUMNS 3 TI) 142 IBRD MISSIN2 AN/DR UNESC STATISTICAL ŽEAR632K. CDMPARATIVE EDUCATION DATA ARE USEFUL IN THE EVALUATION [)F VARIDUS EDUCATIDN SYSTEMS AND ANALYSIS OF RELATIVE STAGEIS OF EDUCATIONAL DEVELOPMENT BETWEEN VA RIDDUS CDULINT RIEB HDOWE VER, ON THE BASE,IS C F T HE PRESENT DATA, CROSS-NA TI ONAL Co MP,ARISON BH OU LD BE A PPROACHED WITH M REAT CAUITION. DAT PR EENTED IN TH E ÅABDV3E TABSLE MAVE BEEN CD0LLECTED LARGELY BY BANK MISSIONS FRgOM o V ERN ME NT SD0URCE f THE RAINDr AREI BTFF E5rTMAATES O R DA TA FRIM UN ESCOG EFFDRTSHAV E BEN MADE T STANDUARDIZEl DEF IN ITIOCNS ADý WITHIN Li mItg, TO CHECX THE ACCURACY DF THE DATA.S NEVERTHELESS, BUCH DAT A AEINTILLHIMPERFECT IN SEEVERA RERPECT-S AN MTE BANKNIS WORK ING TOIIMPROVECTHEM PROGRESSIVELY ON THE DC cAIN DF ITS5 OPERATIONAL WoRK. IN THE U SE OF THEE PDATA, THE FDLLDWING GUALIFICATIONS SHDULD BE IEPT IN (t) "IEDUCATION- AS DEFINEID IN THE TASLE INCLUDES ALL EDUCATION AND TRAINING, BOTH FORMAL AND NON-FORMAL. (2) "PRIMARY" EDUCATION REFERS TO EDUCATIDN AT THE FIRST LEVEL AND 'SECONDARY;.FDUCATION REFERS3 TO ALL EDUCATION AT THE BECONDARY LEVEL, REGARDLESS OF TYPE (E.1. GENERALr TECHNICAL, AORIZCULTURAL) (3) 'LZTERACY RATES' (CDL,6>MARENOFTEN,OBTAINED FRD CDUNTRY,CENSUSES. INMMANYCCOUNTRIES THEY ARE ONLY APPROXIMATIONS AND I T IS DDU BTIFUL TH AT AN UNIFORM DEFINITION DF "LIMTERATE HAS BEEN ;DLLD ED C NSISTEI,T LY . (4) "PUBLIC EXPENDITURE IN EDUCATION' (COLS. 4 AND 5) REFERS TO AL.L CAP1TAL AND RECURREMT EXPENDITURES DEVOTEDI TO ED,UCATIDN B3Y PUBL IC AND UUASI-_PUBýLIC AGEI,CIES. (5) "ENROLL.MENT RATIOS" (COLEI. 7,g12CANDG14),REFERBTO,SCHOD., YEAR AND ANE.THE.PERCENTAOE OF ELI0ISLE CHILDREN ENRDLLED FULL--TIME 1IN THE APPROPRZATE SCHHCOL> PUBLIC AND PRIVATE By LEVEL. TKEY ARE O3FTEN 5SBJECT TO A 91IDE MARGiNt OF ERROR I N'THE DEVEL.3PING COUNTRIES OWIN 0 TD V ARIATIONS IN THE ACCURADY D2F 9 ASIC D'A TA (IE A1E-SPEC IFIC fPPU LA4TION AND ENRkDL LMENTS). JENR oLLMENT FIOURIES FEUENTLY AR E HIHE THAN THE NUMBER OF ST UDENTS ACTULL IN SCHOOL.. VER- rED TUDENTS WHOSE INCLUSID IS I N DICATED BY F DOQC,TES AL Se CAN INFLATE. THE RATIOS. - 33 - PE RU ANNEX 2 HIGHER AGRICULTURAL EDUCATION PROJECT LOCATION OF PUBLIC AND PRIVATE UNIVERSITIES TARAPOTO: U.N. de IQUITOS: U.N. de la Amazonia San Mar in (A) Peruana (A F,L) CAJAMARCA: U.N. Tecnica de C jamarca (A V) PUCALLPA; U.N. dL Pucallpa PIURA: U. P. de A(A) Piura U.N. Tecnica de Piura T Selva (A L Z) CHICLAYO: U.N. de La - HUANUCO: U.N. Herillo bayeque Pedro Ruiz Gallo Valdizan (A) (A G V Z)CERDEPSO TRUJILO; UN. deU.N. Daniel Alcides Carrion (Z), TRUJILLO: U.N. de Trujil o N d a HUANCAYO: U.N. del Centro del HUARAZ: U.N. de Acash (G)Zj HUACHO: U.N. Jose Faustino Sanchez Am Carrion (P) AYACUCHO: U.N. San Cristobal de AHuamanga (A) A: U.p Victor Andres Public Universities Blud U.N. Mayor de San Mar- cos (V) U.N. de Ingenieria U.N. Agraria (A F G L P Z) uis Gon U.N. Federico Villareal (P) zaga (A P V CUSCO: U.N. San Antonio U.N. de Educacion Abad (A Z) U.N. Tecnica de Callao (P) Private Universities P.U. Catolica del Peru U.P. Peruana Cayetano Heredia PUNO: U.N. Tecnica del U.P. del Pacifico AREQUIPA: U.N. de San Altiplano (A V) U.P. de Lima U.P. San Martin de Porres Agustin (A) U.P. Femenina del Sagrado Corazon U.P. Inca Garsilaso de la Vega U.P. Ricardo Palma TACNA U.N. de Tacna (L P) AREQUIPA: U.T. Catolica Santa Maria A PUBLIC UNIVERSI7Y' PRIVATE UNIVERSITY U UNIVERSITY' OFFERING AGRICULTURAL AND/OR FISHERIES PRODGRAM A = Agronomy G ,Agricultural Engineering V = Veterinary Medicine F Fisheries F = Forestry L = Food Processing Z = Animal Husbandry  & * L 「님’- し電戸f - 35 ANNEX 4 PERU HIGHER AGRICULTURAL EDUCATION PROJECT SELECTED DOCUMENTS AVAILABLE IN THE PROJECT FILE A. General Reports and Studies on the Sector Al - Educaci6n: Contribuci6n al desarrollo socio-econ6mico, UNESCO, 1978. A2 - Estudio de bass del sistema de investigaci6n, educaci6n y extension agricola, Min. de Agric. INIA, 1979 (2 vols). A3 - Plan Operativo 1980-81 del sistema nacional de la universidad Peruana, CONUP 1980. A - Proyecciones de empleo por ocupaciones, INIDE 1980. B. General Re2orts and Studies on the Project R1 - Peru - Project Paper, Agricultural Research. Extension and Education, USAID, 1980. B2 - Proyecto de inversion "Universidad para el desarrollo", Universidad Nacional Agraria (Resumen), 1980. C. Selected Working Papers C1 Peru: Major Development Policy Issues and Recommendations (2 vols), The World Bank, 1981. C2 Analysis of the Structure and Operations of the National Agrarian Univeristy, Carlos Garc's, 1982. C3 The National Agrarian University in the Context of Higher Agricultural Education in Peru, A. Magnen, 1981-82. C4 Universidad Peruana, poblacio'n matriculada, CONUP, 1978. C5- Programas, grados y t1tulos segun universidades, CONUP, 1979. C6 - Borrador de documentos de trabajo, I. Matallana, 1982. C7 - Recommended space reprogramming for IRDs, 1. Matallana, 1981. C8 - Proposed Project Timetable, UNA, 1982. C9 - Convenios suscritos por la UNA, UNA, 1981. CIO - Plan of La Molina Campus at Present, 1981. C11 - Project Working Papers.  IBRD) 16499 TUMBES '0 76° LQUITOS(- 72- JL 1982 PERU 4- HIGHER AGRICULTURAL EDUCATION PROJECT PURA CHACHAPOYAS MOYOBAMBA CHPCLAYOi op~ CAJAMARCA B R A Z l L 88 TRUJILLO PUCALLPA Trlgo Mario HUARAZ HUANUCO CERRO DE PASCO San Ramon ou -1°LIMA 1- HUANCAYO ò PUERTO MALDONA HUANCAVELICA, S. Vicerte de Cañete9 AYACUCHO JZCO ABANCAY Central NAU Campus Regional DeveIopment lstilutes ]CA NAU Regional Development Inst,tute (Outside Prciect) Unversity offering Agricultural and /or Fisheries Program - ~Rivers Cprl Nat.onal Capita[ re Deportmrent Captols 0 Other Towns Deoar-ment Broundres \ - --- International Boundartes pLr, - < 16°- AREQUIPA KILOMETERS - 1 100 200 300 This aphas be repad bth e World Baks staff tedclnator the conen,,ce boundOnesshown6 on thi map do not irnply, on the bar of the World bank 6n-ts ffibatres. any judgms onrth roaegal statos of any tertory orany endorsamenor O 80° 76° 'HLE i 68°