Cameroon - Educational and Vocational Training Project

Documen of The World Bank FOR OMCIAL USE ONLY RhIsit No. P-4281-0C REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN OF US$30.1 MILLION TO THE REPUBLIC OF CAMEROON FOR AN EDUCATIONAL AND VOCATIONAL TRAINING PROJECT April 10, 1986 This I ban a rolcted Eh1ibadom md may be _ed by ree*dlb guy in the pegfo,nee of thM oda dude It eoat my ma oherwe be dislsd withot Wedd fak hghedon.  CURRENCY EQUIVALENTS Currency Unit = CFA Franc (CFAF) US$1.0 = CFAF 385 CFAF 1 million = US$2,595 WEIGHTS AND MEASURES Metric British/US Equivalent 1 meter = 3.28 feet (ft) 1 kilometer (km) = 0.62 miles 1 square kilometer (kM2) = 0.39 square miles ABBREVIATIONS AND ACRONYMS CENAFOP - National Center for Adult Vocational Training ("Centre national de formation professionnelle continue") CET - Lower Secondary Technical School ("Collage d'enseignement technique") CETI - Industrial CET ("CET industriel") CETIC - Industrial and Commercial CET ("CET industriel et commercial") CETIF - Female Occupations CET ("CET metiers feminins") CFPR - Accelerated Vocational Training Center ("Centre de Formation Professionnelle Rapide") DEPM - Directorate of Primary and Maternal Education ("Direction de 1'enseignement primaire et maternel") DETP - Directorate of Technical and Professional Education ("Direction de l'enseignement technique et professionnel") DMOFP - Directorate of Manpower, Vocational Training and Projects ("Direction de la main-d'oeuvre, de la formation professionnelle et des Projets") DPE - Education Projects Directorate ("Direction des projets dducation") DPFP - Vocational Training Project Directorate ("Direction du projet de formation professionnelle") DPOS - Educational Planning Division ("Division de la planification et de l'orientation scolaires") ENIA - Primary Teacher College ("Ecole normale d'instituteurs adjoints") ENS - Secondary Teacher College ("Ecole normale superieure") ENSET - Technical Teacher Training School ("Ecole normale superieure de l'enseignement technique") FED - European Development Fund ("Fonds Europeen de Developpement") f IPAR - Curriculum Development Center ("Institut de pedagogie appliquee a vocation rurale") KESRS - Ministry of Higher Education and Scientific Research ("Ministere de l'enseignement superieur et de la recherche scientifique") MINEDUC - Ministry of National Education ("Ministere de l'Education Nationale"). MTPS - Ministry of Labor and Social Welfare ("Ministare du travail et de la prevoyance sociale") FISCAL YEAR SCHOOL YEAR July 1 - June 30 September - June  FOR OMCLCIL USE ONLY CAMEROON EDUCATIONAL AND VOCATIONAL TRAINING PROJECT LOAN AND PROJECT SUMMARY Borrower: Republic of Cameroon Beneficiaries: Ministry of National Education Ministry of Labor and Social Welfare Loan Amount: US$30.1 million equivalent, of which US$22 million for the Ministry of Education, and US$8.1 million for the Ministry of Labor. Terms: 20 years, including 5 years grace, at the standard variable rate. Project Description: The major cbjectives of the project are to: 1. Improve the quality of primary and technical secondary education through: (a) Increasing the number of qualified primary school teachers by (i) constructing new facilities for three existing primary teachers colleges (total of 600 places) that would serve as regional centers for pre- and in-service training; and (ii) preparing proposals for improving the efficiency and reducing the costs of primary teacher training; (b) Upgrading the practical skills of lower and upper secondary technical school graduates by rehabilitating and reequipping training facilities at 10 secondary technical schools, as part of a strategy to improve technical education, including technical teacher training; (c) Improx'-g the management of education through assistance to: (i the Educational Planning Division for improved plan=ing and management of resources; (ii) the Directorate of Technical and Professional Education to strengthen planning capacity and techalcal school administratiLn, and to carry out pre-investment studies for the rehabilitation of three other secondary technical schools and for development of a maintenance system for technical and science equipment; and (iii) the Education Projects Directorate to strengthen its capacity for project preparation and implementation. This document hss 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.  2. Increase the relevance of the vocatlonal training system to tbe-labor arket through: (a) Sunporttng the-development of the National Center for Adult Vocational Training by improving existing courses, introducing ew courses, implementing a staff development program (training and upgrading); and equipping the* Center's new workshops; (b) Improving the mBaagemnt of vocational training by str ngthening the capablities of the Directorate of Manpower, Vocational Training and Projects for (1) manpower planning and the management of training resources, (ii) project preparation and implementation. and (iii) the carrying out of pre-investment studies for the creation of eight vocational training centers.- development of an apprenticeship system, and creation of an Office of Manpower and Continuous Training.  Su7mmary of Project Cost Estimate - (net of taxes and- duties) a/ -- % of .. .Local Foreign. Total Base Costs -.: - .-US U Slin.. 1. Improving the quality of primary and technical secondary education (a) Primary Teachers Colleges> 12.4 .. 7.1 19.5. 41 (b) Secondary Technical Schools 3.9 6.7 .-.10.6 22 (c) Management of Education 1.1 4.5 5.6 12 Subtotal 17.4 18.3 35.7 75 2. Improving the relevance of vocational training (a) National Center for Adult T Vocational Training (CENAFOP) 3.8 5.3 9.1 19 (b) Management of Vocational Training 0.5 2.1 2.6 6 Subtotal 4.3 7.4 11.7 25 Total Base Costs 21.7 25.7 47.4 100 Physical ContIngencies 1.6 1.6 3.2 7 Price Contingencies 5.3 5.3 10.6 22 Total Project Costs 28.6 32.6 61.2 129 Finencing Plan IBRD - 30.1 30.1 49 Government 28.6 2.5 31.1 51 Total 28.6 32.6 61.2 100 Estimated Loan Disbursement: IBRD Fiscal Year 1987 1988 1989 1990 1991 1992 1993 -US$ milliono - Annual 0.4 1.6 4.0 6.0 7.0 8.0 3.1 Cumulative 0.4 2.0 6.0 12.0 19.0 27.0 30.1 a/ Of which the project would be exempted.  Economic Rate of Return: Not applicable Benefits and Risks: By improving the quality of primary education, secondary technical education, and vocational training, the project would help to meet some of the most urgent needs for qualified manpower of an expanding economy. For the longer term, it would strengthen the planning, policymaking and management capabilities of the Ministries of National Education and of Labor and Social Welfare, and it would contribute to reinforcing the links between education, training and employment. These measures would assist, in the future, in the preparation of sound investment programs and in their efficient implementation-two considerations that will become increasingly critical as Ca-eroon's oil revenues decline. The main risk of the project, in light of past Bank Group experience in the sector, is that of implementation difficulties resulting from veak institutions. To reduce this risk, special attention has been given to the units, within the two involved technical ministries, charged with Implementing the project: the Education Projects Directorate in MINEDUC would be strengthened and the Directorate of Manpower, Vocational Training and Projects in MIPS reinforced, and each Directorate would be provided with appropriate staff and technical assistance under the project. To ensure timely posting of the technical assistance personnel, a condition of loan effectiveness would be the signing of their contracts. To ensure that the technical assistance will create a local capability rather than substitute for it, the staff development program would be closely monitored. The second risk-rapid deterioration of the new equipment for the secondary technical schools-would be addressed through the development of a maintenance system. Appraisal Report: No. 5519-CM MAP: IBRD 18815 WAZDC March 1985  INTERNATIONAL BANK FOR RECOYSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF CAMEROON FOR AN EDUCATIONAL AND VOCATIONAL TRAINING PROJECT 1. *I submit the following report and recommendation on a proposed loan to the Republic of Cameroon for the equivalent of US$30.1 million to help finance an Educational and Vocational Training Project. The loan would have a term of 20 years, including a 5-year grace period, at the standard variable interest rate. US$22 million of its proceeds would be made available to the Ministry of National Education (MINEDUC) and US$8.1 million, to the Ministry of Labor and Social Welfare (MTPS). PART I. THE ECONOMY 2. A report entitled "United Republic of Cameroon-Economic Memorandum" (Report No. 2877-CM), was distributed to the Executive Directors on April 30, 1980. Since then, several economic and sector missions have visited Cameroon, the most recent one in February, 1986. Their major findings, including preliminary work on the changed oil reserve situation, are incorporated in the following paragraphs. Annex I provides basic country data. BI^souE_nd 3. Cameroon is one of Africa's most diverse countries, with a wide variety of climatic and ecological zones, ethnic groups, languages, and traditional cultures. It has an estimated population of 10 million (1985) and covers an area of 475,000 kM2. The overall density is low, but there are several densely-populated regions in the west and the extreme north. The main centers of population and economic activity are widely separated, making the development and maintenance of an adequate transportation network vital but also costly. Cameroon's main opportunities for development lie in the expansion of agricultural, livestock and forestry production; and the processing of agricultural and forestry products for domestic consumption and export. Cameroon became an oil producer in 1978 and total production is estimated at 8 million tons for 1985. Most of the oil is exported as crude; only about 1.2 million tons are refined in Cameroon, to meet domestic demand. 4. Basically an agricultural economy at independence in 1960, Cameroon has experienced rapid rural-urban migration; over one-third of the population now lives in the cities. Douala, the major industrial center and port, has an estimated population of about one million; Yaounde, the capital, is the second largest city, with an estimated 500,000 residents. Apart from these two large cities, several otner urban areas of significant size play important roles in the economies of the various regions. 5. The stated development philosopy of the Government of Cameroon is "communitarian liberalism" , characterized by five-year indicative investment plans and a mixture of private and public ownership. Market forces are tempered by extensive Government regulation in areas such as price control,  -2- investment, interest rates and credit allocation, the latter under the framework of the franc zone system for equatorial Africa. In general, the Government's macroeconomic policies have been prudent and Cameroon's GNP per capita (US$800 in 1983) is one of the highest in Sub-Saharan Africa. In line with the Government's emphasis on balanced iLogional development and strong central authority, the country has enjoyed exceptional economic and social stability and the surge in oil revenues coming at the beginning of the decade was handled without major economic disruptions. 6. The past few years have been a period of transition. In November 1982, after almost 25 years in power, President Ahmadou Ahidjo resigned and his constitutional successor, Prime Minister Paul Biya, becAme President. President Biya consolidated his power in September 1983 when he was elected president of the sole political party and in January 1984 when he was confirmed as President of Cameroon in a naticial election. However, the country was shaken in April 1984 when a group of soldiers launched an unsuccessful coup attempt. Over the past two years, Mr. Biya has promised a more democratic style of government, more rigor in the management of public funds and greater social justice. The new Government is committed to economic liberalization, although still within the context of "communitarian liberalism". It has also endorsed the objectives of preserving a strong agricultural base, maintaining food self-sufficiency, and building up social and transport infrastructure. It has expressed strong interest in improving the efficiency of state enterprises, including, in some cases, through privatization, and is planning substantial changes in its financial system. Economic and Social Developments 7. In recent years Cameroon has registered a remarkable overall economic and financial performance. Growth averaged 6.9 percent per annum in the second half of the 1970s and is estimated at about 9.1 percent per annum for the first half of the 1980s. Fixed investment, which was only 10 percent of GDP in the early 1960s grew to an average of about 20 percent in the second half of the 1970s and to an estimated 25 percent in 1985 while remaining in line with the country's absorptive capacity. Domestic savings have been more than sufficient to finance domestic investment since the end of the 1970s. While this performance has been attributable largely to the rapid expansion of crude oil production and exports which started in 1979/80, the fact that Cameroon managed to accumulate substantial overseas balances at the same time attests to a prudence, rare among oil-exporting countries, in keeping public spending within reasonable bounds. Recourse to external borrowing has been limited and the debt service ratio has consistently remained around the 10 percent level. 8. The good overall economic and financial performance of Cameroon hides, however, a number of structural problems. Export crops have not performed particularly well over the past five years because of deteriorating terms of trade for the producers and the migration of the younger rural population to the cities. Manufacturing growth took place through the impetus of some protection and through the establishment of an inefficient public enterprise sector accounting for about 7% of GDP which represents an increasing burden on the budget. The financial sector is relatively underdeveloped and does not have the capability to intermediate efficiently public savings to private investors or to mobilize private savings, especially in preparation for  - 3 - the post-oil era. Although part of the government oil revenue has been saved, an Increasing portion has been used to finance rapidly growing recurrent expenditures, an expansion of agricultural support programs, including input subsidies, and increased assistance to ailing industrial public enterprises, including the servicing of their debts. 9. Steady progress has been made in the well-being of the population over the past two decades; however, much remains to be done in the social sectors. Enrollments increased considerably at all levels of the educational system, but its quality and efficiency deteriorated. Health-related indicators - are on the low side, considering Cameroon's overall level of economic development. Life expectancy at birth is a low 53 years, the result of a high infant mortality rate due to inadequate health coverage, poor access to water supply, lack of sanitation services in crowded urban areas and poor nutrition and health practices. 10. In 1981, about 40 percent of the rural population was considered to live in absolute poverty, i.e., with an annual per capita income of less than US$105. This may in part explain the heavy rural out-migration to Yaounde and Douala, where average incomes are considerably higher than in the countryside in part fueled by the expenditure of increasing oil revenues giving rise to expectations of formal sector employment under favorable conditions. In fact, conditions in these cities are not much more favorable: one quarter of their population is classified as absolutely poor. Development Prospects and Issues 11. The basic problem to which Cameroon must address itself in the near future is the recent sharp downturn in oil prices. Lower world prices have reduced the reserves which can be profitably exploited. Thus Cameroon must face a situation where it must absorb, within a period of a few years, not only a 15% cut in GDP, but a 45% drop in current revenues and a 50% cut in exports of goods and services as well. Fortunately, because of its cautious behavior in the past and large financial savings, Cameroon is relatively well-placed to deal with the new situation. Moreover, industry is dependent upon imported inputs so that a compression of imports will not meaningfully harm domestic industry and employment. Per capita private consumption has been growing rapidly in real terms so that some reduction will not necessarily represent a hardship. However, while Cameroon is in a privileged situation with its presently relatively small external debt, its borrowing capacity is in itself limited by the prospects for declining export receipts. 12. Essentially, Cameroon's adjustment to the new situation will have to be largely twofold: (a) measures aimed at reducing private and public consumption and, to a substantial extent, domestic investments, and (b) measures reorienting the economy toward exports. With respect to the first, private consumption growth should be slowed through fiscal and other measures. Simultaneously, current public expenditures, which considerably outstripped nominal GDP growth during the oil era, must be restrained, and non-essential investments curtailed. While most of these measures would tend to offset the losses to the budget of oil revenues, if they are well-designed they should also bring about a lowering of real wages and a depreciation of the real exchange rate, which in turn will tend to redress the trade balance. However,  -4- far reaching actions for the stimulation of exports must also be undertaken. In particular, producer prices of export crops must be raised substantially in real terms if the nearly stagnant sector is to revive sufficiently to play its role in offsetting the balance of payments impact of the drop of oil exports. Such measures would have to be associated with increased attention to the institutional support of the agriculture sector. Moreover, incentives will also be required for the increased orientation of industrial incentives toward exports, among others through tax and tariff reform. Finally, financial sector reforms in the longer run will be necessary if the financial system is to mobilize adequate private financial savings and intermediate their flow into more productive investments than is now the case. 13. In the longer term, the major issue is to cope with a fast-expanding population. Although its growth rate, currently estimated at 3.2 percent p.a. is not unco,mon in the regional context, it is accelerating, and Cameroon's population is expected to nearly double in 22 years. The urban population would triple to 9 million. Providing meaningful employment opportunities to a sharply expanding urban labor force is and will remain a major challenge for the Cameroonian authorities. At present only 22 percent of the labor force is employed outside agriculture, 9 percent in industry and 13 percent in services. If large-scale unemployment is to be avoided in cities, by the year 2000 about 2 million jobs would have to be added to the existing 750,000 outside agriculture. External Borrowing and Creditworthiness 14. Total public external debt outstanding and disbursed rose from US$371 million at the end of 1976 to US$1.7 billinn at the end of 1984. Debt service payments rose from US$39 million in 1976 to US$221 million in 1984, while exports increased from US$700 million in 1976 to about US$2.5 billion in 1984. However, Cameroon's traditionally modest reliance on external financing has been followed, during the oil era of increased financial independence, by diminished recourse to external borrowing and some prepayment of foreign loans. Gross disbursements against public and publicly guaranteed external borrowing have dropped from a peak of US$564 million in 1980 to US$182 million in 1984. Net transfers have fallen from a peak of US$389 million in 1979 to minus US$40 million in 1984, when debt service payments exceeded gross disbursements. Rising interest rates, a hardening of average loan terms and the appreciation of the dollar increased Cameroon's debt service ratio somewhat in the early 1980s. Increased borrowing will be required in the second half of the decade to compensate for declining oil revenues. However, the debt service ratio appears likely to remain below 15 percent for the rest of the decade. Cameroon is fundamentally creditworthy. PART II. BANK GROUP OPERATIONS IN CAMEROON 15. Bank and IDA commitments in Cameroon as of September 30, 1985, amounted to US$954 million equivalent and covered 47 projects: 22 in agri- culture, 15 in transportation, 3 in education, 3 in public utilities, 1 small- and medium-scale enterprise project, 2 technical assistance projects and 1  -5- urban project (Annex II). Transport and agriculture account respectively for about 50 percent and 38 percent of these commitments. IFC had invested in eight enterprises, with total net loan/equity commitments of US$10.9 million. 16. Performance in project implementation is, on average, good in the transport sector, mixed in agriculture and mediocre in other sectors. The Government has generally shown wlllingness to collaborate with the Bank in finding solutions, but implementation delays and setbacks have occurred, notably over the last year in the wake of recent political changes. In particular, the overall disbursement rate, which used to compare favorably with that of most other countries, has slowed down due to administrative bottlenecks, notably in the central procurement agency. Technical assistance is being arranged to help streamline procurement procedures. 17. The Bank"s initial investment strategy in Cameroon was to support the Government's development effotts in three main directions: (a) strengthening and extending the road and rail trunk systems and improving the port of Douala; (b) raising agricultural output and exports; and (c) improving education. Until 1975, apart from one water supply project, Bank lending was concentrated entirely in the transport, agriculture and education sectors. Since 1975, Bank lending has diversified into forestry, small- and medium-scale industry, urban development, technical assistance and telecommunications. For the immediate future, projects are being prepared in agriculture to support Government's objectives of increasing smallholders' productivity and improving the quality of rural life; in transport to upgrade, expand and maintain the network; in urban development to build up the local governments' capabilities to cope with fast growth; in education/manpower trainin to meet the rapidly increasing skill requirements of the economy; and in health, to promote services in rural areas. 18. Faced with a decline of its oil revenues, the Government of Cameroon would like the Bank to maintain an active assistance program as (a) a way of ensuring a smooth and continued flow of resources for development; (b) a vehicle for technical assistance in project design and implementation; (c) a guarantee of impartiality in providing guidance; and (d) a source of advice for policy reform. The rationale underlying the Bank's program lies in the need to meet the country's increased and more complex requirements for development assistance. To ensure productive use of its oil revenues and prepare for the post-oil era, Government must make critical decisions concerning the size and composition of the domestic investment program and the removal of the major development bottlenecks. The Bank's major objectives are to strengthen Government policy making, investment planning and implementing capabilities; promote private intitiatives and reduce the role of the parapublic sector in the economy; develop the country's human resource base; and Improve the living conditions of low-income groups. 19. To reach its objectives the Bank will increasingly use sectoral approaches combining lending, intensified economic and sector work and technical assistance to the central and technical ministries. The Bank is in the process of discussing with Government several strategy papers for the major sectors with a view to reaching broad agreement on a macroeconomic and sectoral policy framework. This dialogue should pave the way for a more sectoral approach to lending in support of well-defined Government programs. Key topics  - 6 - for discussion will be the role of the public enterprise sector, trade liberalization and pricing policies, the pace and pattern of resource development, skilled manpower constraints and needs, and administrative reform. Although the Government is eager to move toward sectoral approaches, differences of opinion on their content might delay their formulation and implementation; nevertheless, the nature of the Bank's involvement is expected to shift toward fewer but larger sectoral operations. 20. Disbursements of official development assistance during the second half of the 1960s amounted to about US$45 million a year, mostly in the form of grants. France provided most of the assistance. In the 1970s, foreign aid increased to about US$90 million a year, with only one-fifth in the form of grants. Bank and IDA financing amounted to about 23 percent of total disbursements and the Bank Group became the major source of public assistance. Cofinancing has been featured in 25 of the 47 Bank-financed projects and is being actively sought for several projects under consideration to improve aid coordination and support a gradual shift to private financing. 21. In 1984, disbursements from private sources accounted for 10 percent of total disbursements under public debt, down from 61 percent in 1982. Public external debt outstanding and disbursed as of December 31, 1984, amounted to US$1.7 billion, 15 percent of which was in the form of Bank loans and 13 percent in IDA credits. Bank loans in 1984 accounted for 12.6 percent of public external debt service and IDA credits for 0.1 percent. By end-1985, Bank loans and IDA credits were projected to account for about 26 percent of debt outstanding and about 14 percent of debt service. PART III. THE EDUCATION AND TRAINING SECTOR A. The Education and Training System 22. The inadequacy of the education system in providing basic literacy and numeracy, combined with limited opportunities for technical and vocational training, has led to severe deficits in skilled manDower and to low labor productivity. Especially severe are the shortages of technically trained manpower for the fast-growing industrial sector, with the secondary technical schools' output providing only about 25 percent of that sector's estimated annual requirements. Unless action is taken, this situation is likely to deteriorate further, since the population of 10 million (in 1985), growing at 3.2 percent per annum, is expected to nearly double in 22 years. 23. This is uot due to a lack of Government's effort: at the primary level alone, between 1960 and 1984 the number of children attending school quadrupled to about 1.6 million, bringing the total net enrollment ratio to 78 percent. The Government has made considerable progress in establishing and delivering public school services, increasing their share from about 33 to 65 percent of total enrollment at the primary level. As a result, Cameroon ranks very high in quantitative terms as compared with other African countries. However, the effort has stretched the education system's capabilities beyond its limit and has adversely affected the quality of instruction. For reasons explained in paragraph 25, internal efficiency is low at all educational  levels, and the training provided does not adequately prepare students to either meet the needs of the labor market or to move to higher levels. 24. Structure and organization. As a legacy of colonial times, the general education structure in Cameroon follows the English pattern in the West and Northwest Provinces, and the French pattern in the eight other provinces. The Ministry of National Education (MINEDUC) is responsible for all levels of the formal system except post-secondary education, which falls under the recently created Ministry of Higher Education and Scientific Research (MESRS). MINEDUC has centralized decisionmaking in Yaounde and delegated operational responsibilities to its directorates and its Educational Planning Division (DPOS). The latter, and the Directorate of Technical and Professional Education (DETP) have key roles in formulating the Government's sectoral policies, and planning and managing the development of education. Responsibility for vocational training and skill upgrading rests with the Ministry of Labor and Social Welfare (MTPS) and its Directorate of Manpower, Vocational Training and Projects (DMOFP). B. Government Strategy for Educational Development 25. In the Fifth Development Plan (1981-86), the Government emphasized human resource development, increasing the share of education in the national investment budget to 8.8 percent (from 5 percent in the Fourth Plan), for a total of US$565 million. Although the Plan lacked a sound analysis of investment and reform priorities as well as a comprehensive development strategy for the sector, the Government's de facto sectoral priorities were to: (a) expand and improve the quality of technical education and vocational training as rapidly as possible to alleviate the severe manpower constraints that are hampering the economy; (b) expand and improve the quality of primary education to achieve universality by the end of the century; and (c) strengthen the planning end management capabilities of the key sectoral institutions to improve resource use and remove absorptive capacity bottlenecks. These priorities have guided the design of the proposed project. While data and analysis for supporting them are still limited, the social demand for education is so strong, the shortages of qualified manpower so pervasive, and the constraints on implementation so severe, that there is little doubt that these sectoral objectives are sound from an equity as well as an efficiency viewpoint. This has been confirmed by a recently completed survey of the Education and Training sector, prepared by Government and the UNESCO/Bank Cooperative Program, under Bank financing. Beginning in April 1985, the survey has served as a basis for wide-ranging tripartite sectoral discussions, including Bank/UNESCO assistance to preparation of the Sixth Plan (1986-91). Early indications are that the emerging strategy will pursue the same objectives. However, under the Sixth Plan, special emphasis will be given to the linkage between education and employment. To what extent these objectives can be achieved will largely depend on the Government's ability to improve the planning and implementing capabilities of the responsible institutions.  -8- C. The Issues 26. The survey just mentioned thoroughly analyzed a number of issues, including: (a) deficiencies in the quality and output of primary and technical secondary education; (b) the inadequacy of the vocational training system in meeting the modern sector's requirements for skilled workers; and (c) the lack of a strong institutional framework for strategic thinking, policy analysis, investment planning and management of the sector. These three critical constraints would be the focus of this project; others, such as the costs and financing of education and manpower issues would also be partly tackled but require further study and would be addressed under subsequent projects. L. Quality of Primary and Technical Secondary Education 27. Primary education. At the primary level, the low quality of education is the major deficiency. Over the 1977-84 period, enrollments have grown at an average rate of 4.5 percent p.a. to total about 1.6 million (45 percent girls) with net ratios ranging from 70 percent to 100 percent (except in the northern provinces, with about 30 percent). However, this has not been matched by improvements in internal efficiency: about 50 percent of the students enrolled in Grade 1 drop out before completing primary education; of the remaining students, only 60 percent pass the primary certification examination. The low quality of primary education is attributable mainly to the relatively small number of qualified teachers. According to official estimates, in 1981/82 only 40 percent of the teaching force of 28.600 could be considered as qualified. This results from the low output of the primary teacher training system. The present training capacity, providing an annual output of 1,500 teachers, would only meet about 60 percent of estimated needs based on the projected primary enrollment growth (1989/90), with a 1:50 teacher/student ratio. The capacity to provide pre- and in-service trainfng is severely constrained by (a) inadequate physical facilities, largely in a state of disrepair; (b) deficiencies in the teacher training programs, which have been too theoretical and lacking in software support (textbooks, teaching aids and educational materials); and (c) weakness in the management of human resources, as the administrative and teaching staff is adequate in numbers but could be used more efficiently. 28. In order to address these constraints, the Government is undertaking a series of actions. On the institutional side, these include: (a) reorganization of the MINEDUC's Directorate of Primary and ?iaternal Education, with a new service in charge of primary teacher training; (b) the revision of primary school curricula; and (c) a comprehensive primary teacher development program covering pre- and in-service training, development of teaching methodologies, a library system, teachers guides and other aids, curricula improvement, administrative restructuring of the primary teachers colleges (ENIAs), and a review of the system's organization and management. On the physical facilities side, the Government's plans include: (a) the rehabilitation of five traditional ENIAs in the North and Northwest Provinces; and (b) the construction/equipping of new facilities for three ENIAs, which are located in the provinces with the highest primary education enrollments and presently are housed in very inadequate buildings. This program is expected to improve the quality and efficiency of primary teacher training and increase the total capacity to about 70 percent of estimated requirements. Prepared by the  Bank and the United States Agency for International Development (USAID). it is being supported by a USAID loan-cum-grant of about US$29 million, approved in November 1984. The Bank would finance under the proposed project the construction and equipment of the three ENIAs ((b) above) and a study on ways to improve the efficiency and reduce the costs of the teacher training system. 29. Secondary technical schools do not produce practically trained gradu- ates in sufficient numbers, despite the rapid growth of enrollments (9.5 percent p.a. on average between 1977 and 1984). In 1981/82, about 54,000 students were enrolled, 45,000 in lower secondary technical schools (CETs) and 9,000 in upper secondary technical schools ("Lycees techniques"). Industrial enrollments represent only about 39 percent of the total in the CETs and about 12 percent in the Lycees. Although curricula provide for a reasonable balance between theoretical and practical courses, the teaching of the latter suffers from structural deficiencies in the school workshops, the scarcity and poor condition of equipment and inadequate maintenance, and an insufficiently qualified teaching cadre. As a result, dropout rates are high (about 32 percent for the lower and 75 percent for the upper secondary level) and success rates in final examinations are low (about 18 and 26 percent). Consequently, the system has a consistently low output of qualified graduates: about 2,000 for the CETs (75 percent in industrial disciplines) and about 500 for the Lycees (20 percent, or about 100, in industrial disciplines). Moreover, the profiles of graduates do not match the needs of the modern sector. 30. In order to address these constraints, the Government proposes a number of measures, including: (a) the rehabilitation of the training facili- ties in the older schools; (b) the development of a purchase and maintenance system for technical and science equipment; (c) the strengthening of school administration and of the planning and management capabilities of the central institutions responsible for technical education; and (d) the training and upgrading of the technical teaching cadre. This program is expected to improve efficiency, increase the output of graduates and better prepare them to meet the demand for industrial skills; it would also contribute to reducing the wastage of resources. The first three measures would form part of the proposed project (para. 42). Technical teacher training would be addressed under a separate Bank project under preparation, which would support the Technical Teacher Training School (ENSET) in Douala. 31. Planning and management of education. The central institutions responsible for planning and managing the Government's educational development effort need strengthening. The low quality of primary education stems largely from management deficiencies and the lack of local capability to analyze investment and reform priorities and prepare comprehensive plans to improve internal efficiency. Similar deficiencies explain the inability of the secondary technical schools to meet an expanding economy's qualitative and quantitative requirements for technically qualified personnel. The Ministry of National Education (MINEDUC) is handicapped by the unreliability of its data base, a shortage of qualified educational planners and statisticians, and the lack of staff development opportunities. The functions of its Educational Planning Division (DPOS) are limited to administering an annual statistical questionnaire, compiling the data manually, and estimating recurrent budgets. Its Directorate for Technical and Professional Education (DETP) , already overburdened with the task of managing the existing schools, is also expected  - 10 - to plan and manage more efficiently the rapidly expanding and diversifying technical education subsector. Finally, MINEDUC's Education Projects Directorate (DPE) also needs to build up its capacity to prepare, implement and evaluate an increasing number of projects. The project would address these weaknesses through an integrated training and technical assistance program (paras. 43-46). 32. Costs and financing. The financial implications of the Government's planned expansion and improvement of primary and technical secondary education have not yet been fully analyzed. A number of problems are involved. First, appropriations for the sector, representing 8.2 percent of total investment budget and 15.6 percent of total recurrent budget, are insufficient in view of the economy's needs. In particular, the recurrent budget has not increased in line with investment and is overwhelmingly absorbed by salaries and fellowships (90 percent), while only about 2 percent is devoted to such essential inputs as learning materials and school maintenance. This, combined with the employment of unqualified teachers and the self-financing of the private schools (36 percent of primary and 54 percent of secondary school enrollments), explains the comparatively low per-student cost. However, cost efficiency is low, posing a second problem. Two other related problems are the weak absorptive capacity of the system, as evidenced by the underutilization of planned expenditures in the past (43.4 percent under the Third Plan and 47 percent under the Fourth Plan), and the upcoming exhaustion of oil revenues, (around 1995), which will sharpen the need for rigorous investment and current expenditure prioritization. These issues would be addressed, for the short term, by including in the Government's contribution, adequate provision for recurrent costs, reflecting increased appropriations for non-salary inputs (para. 59); for the longer term, by: (a) introducing measures to improve the cost-efficiency of primary education (para. 40); (b) developing a financial planning mechanism based on recommendations made in the sector survey (paras. 25 and 44); and (c) creating a permanent capacity for sound investment planning and analysis, and cost-efficient use of scarce resources (paras. 43-46 and 48). 2. Relevance of the Vocational Training System to the Labor Market 33. The vocational training subsector faces the dual challenge of expand- ing its training and skill upgrading capacity and improving the quality of the training to make it more relevant to employers' needs. First, since some 12,000 modern jobs are to be created annually during the 1980s, there is a need for additional manpower in the form of well- qualified graduates of the technical schools. Second, since about two-thirds of the manpower employed in the modern sector (totalling about 430,000 in 1981) did not attain the primary level certificate, training remains essential to upgrade the skills of present labor and keep those of future employees current. However, the inadequacy of the vocational training/skill upgrading system, combined with the inefficiency and poor quality of the secondary technical education, is a major cause for the low level of skills throughout the work force. The system, under the authority of the Ministry of Labor and Social Welfare, comprises only the semi- autonomous National Center for Adult Vocational Training (CENAFOP), with 250 student places, and the five accelerated vocational training centers (CFPRs), with a total capacity of about 300 trainees, of whom only 25 are enrolled in industrial disciplines.  - 11 - 34. The Government is giving high priority to remedying this shortfall in skilled workers, particularly by providing short vocational training programs for the large number of young school leavers and by systematically upgrading the skills of existing industrial labor. CENAFOP's role has become increasingly important in light of the growing shortages of qualified lower- and middle manpower. Long before the center was fully operational (it was established in 1981 under Credit 320-CM), it was recognized that its industrial training requirements had been underestimated. Therefore, the Government has begun to expand and reorganize CENAFOP's facilities and to diversify the course offerings. But a staff development program is needed to enable the Center to improve the relevance of existing courses and introduce new ones adapted to an increasingly complex industrial sector. Moreover, CENAFOP has newly built workshops which are not yet adequately organized and equipped to provide training in the most needed specializations (auto-mechanics, metal work, air- conditioning/refrigeration, electricity and electronics, general and maintenance mechanics). For the CFPRs, a thorough study is called for to assess the needs for renovation and for expansion of the network. These activities would be undertaken under the project (paras. 47-49). 35. Planning and management of vocational training. Within the Ministry of Labor and Social Welfare, the capacity of the recently reorganized Director- ate of Manpower, Vocational Training and Projects does not match its growing responsibilities. Its Manpower Sub-Directorate is expected to monitor the labor market and the economy's quantitative and qualitative manpower needs, and the Vocational Training Sub-Directorate, to assess overall requirements for training and skill upgrading, or to plan, coordinate and manage the expansion and improvement of the vocational training network. However, both are understaffed and lack the data base, capability and training opportunities to perform efficiently. Therefore, the project would reinforce DMOFP's capacity for evaluating investment priorities on the basis of the modern sector's man- power needs, and for planning and managing training resources, conducting manpower surveys and pre-investment studies, and preparing and implementing projects (para. 48). D. The Bank Group's Role in Educational Development 36. The Bank group has financed three projects in the education sector in Cameroon (totalling about US$38 million). The emphasis of these operations has been on: (a) improving the quality of general education by supporting teacher training, and (b) making the education and training system more responsive to the needs of the modern sector by supporting the diversification of general secondary education and the establishment of employer-supported training programs. The First Education Project (Cr. 161-CM for US$11.7 million, signed in September 1969 and closed on June 30, 1979; PPAR No. 2368 dated February 12, 1979) and the Second Education Project (Cr. 320-CM for US$9.0 million, signed in June 1972 and closed on June 30, 1982; PPAR No. 4900 dated January 20, 1984) supported primary teacher training, general and technical secondary education, and skill upgrading for industry. The Third Education Project (Loan 1245T-CM for US$17.0 million, signed in July 1976 and closed on December 31, 1984; PPAR under preparation) emphasized agricultural and technical education. Implementation of these three projects has been mediocre. They contributed to increasing the capacity and regional distribution of primary and secondary education. Physical targets generally were met, albeit with considerable  - 12 - delays and cost overruns, but at the expense of the pedagogical objectives, which as a result were largely not reached. Insufficient preparation of the technical assistance programs, recruitment delays and inadequate monitoring adversely affected the effectiveness of those programs. In light of the lessons learned from these operations, the proposed project emphasizes institution building, aiming at establishing a strong sectoral planning capability, ensuring that the implementing directorates receive appropriate support and staff, and bringing the processing of architectural designs, engineering, and technical assistance contracts to an advanced stage prior to project finalisation. 37. Human resource development is a key element in the Bank's strategy for Cameroon and the proposed project represents an important step toward formulating and implementing a broad-based program in this area. The Bank's major concern is to help the country use its oil revenues productively and to prepare for the post-oil era. In line with Government's priorities (para. 24) Bank support to the sector focuses on the alleviation of critical manpower bottlenecks, quality improvement of the education/training system at all levels to raise labor productivity, and the strengthening of sectoral planning and implementing institutions in order to prepare future sectoral development in the context of a rapidly growing population. This new emphasis on institution- building constitutes the main rationale for Bank involvement in the proposed project, a cornerstone for the Bank strategy in the sector. Another project is being prepared to improve technical teacher training, through assistance to the ENSET (para. 29). A coherent strategy to further expand and strengthen the system, and to deal with its financing issues, is being developed on the basis of a comprehensive program of studies. Improved sector knowledge and policy dialogue, as well as the strengthened institutional capacity, are expected to create adequate conditioxis for preparing a series of projects that will be better designed, organized and managed. 38. Donor coordination. Several donors actively support the Government's human resource development programs. USAID is principally involved in primary education (para. 27); the Canadian International Development Agency (CIDA) focuses on technical secondary and vocational training, and the French "Fonds d'Aide et de Cooperation" (FAC) intervenes at various levels of the system. However, until recently, Government has tended to deal with each donor separately. Therefore, in the absence of cofinancing arrangements, during preparation close contacts were maintained with these donors to avoid duplication of efforts, and implementation arrangements provide for systematic coordination. For the future, the sector survey is becoming a reference document for various sources of assistance, and the definition of a long-term strategy integrating investment, reform and training is expected to help the Government to coordinate and manage more efficiently donor interventions on the basis of their comparative advantages. PART IV. THE PROJECT A. Project Objectives and Description 39. The project has two major objectives: to improve the quality of primary and technical secondary education; and to increase the relevance of the  - 13 - vocational training system to the labor market. In order to achieve the first objective, the project would: (a) Increase the number of qualified primary school teachers by constructing and equipping new facilities for three primary teachers colleges (ENIAs) and by preparing proposals for improving the efficiency and reducing the costs of primary teacher training; (b) upgrade the practical skills of lover and upper secondary technical school graduates by rehabilitating training facilities at 10 secondary technical schools; and (c) improve the planning and management of the education system through strengthening the capabilities of the key units in the Ministry of National Education. 40. In order to achieve the second objective-increasing the relevance of the vocational training system to the labor market-the project would: (a) support the development of the CENAFOP by improving existing courses, introducing new courses, implementing a staff development program, and equipping the Center's new workshops; and (b) improve manpower planning and the management of vocational training by strengthening the Directorate of Manpower, Vocational Training and Projects (DMOFP) in the Ministry of Labor and Social Welfare (NIPS). The project was appraised in May 1984. Negotiations were held in Washington from January 27 to 31, 1986. The Cameroonian delegation was led by Mr. Okouda, Deputy Director of Economic and Technical Cooperation in the Ministry of Plan. Details of the project are contained in the Staff Appraisal Report which is being circulated separately; its main features are highlighted in the Loan and Project Summary, supplemented by Annex III. 1. Improving the Quality of Primary and Technical Secondary Education 41. To improve the quality of primary education, the project would: (a) construct and equip new facilities for three ENIAs (no expansion involved) each with 200 places; their sites were chosen and the new facilities were designed to accommodate the more practical, rural-oriented training course to be offered to selected junior secondary school certificate holders and to serve as regional resource centers for teacher training and upgrading; and (b) assist the Directorate of Primary and Maternal Education (DEPH) in conducting a study to prepare proposals for improving the efficiency and reducing the costs of primary teacher training. These proposals would be reviewed with the Bank, implemented initially at the three ENIAs and further developed nationally. Curricula would be gradually improved by regionally based Cameroonian-USAID teams, with inputs from a Bank-financed education specialist in DPE. The USAID program would also develop teacher training software, for which a doubling of the operating budget of the three Bank-financed ENIAs has been included in the project (para. 59). 42. The project would finance (a) construction, architectural fees, furniture and equipment for the three ENIAs; and (b) 12 staffmonths of consultant services for assisting the DEPM in the primary teacher training study. To ensure that the new ENIA facilities will be operated with optimal efficiency, Government agreed to implement the study's agreed upon proposals when the three ENIAs open. To ensure close coordination with the USAID-financed program, the Government also agreed to submit to the Bank an annual progress report on that program; this report would serve as a basis for exchange of views leading to an agreement on the proposed new teacher training  - 14 - programs by PY3 and their implementation in the Bank-financed facilities within 12 months thereafter. 43. To improve the quality of instruction in secondary technical education, the project would support the Government's plans to renovate and maintain existing workshops and equipment (para. 29). It would rehabilitate and reequip training facilities in 10 schools, totalling more than 6,000 students. This program would be similar to one completed for six technical colleges with the support of the European Development Fund (FED). A maintenance program would be introduced. Since outputs in industrial disciplines at the upper secondary technical level are especially limited, support to the largest industrial lycees, located in the most industrialized area of Cameroon, would also be provided. The project would finance civil works (minor repairs and utilities), the provision of new equipment in all 10 schools, and structural extensions in two schools. The financial plan includes provision by the Government of adequate recurrent funds (para. 59). 44. Management of education. To increase the overall efficiency of the education system, the project would strengthen MINEDUC's institutional capacity with respect to: (a) data collection and analysis, policy formulation, educational planning and programming; (b) budgeting, planning and management (including maintenance) of the technical education subsector; and (c) project preparation, implementation and evaluation. To this end, MINEDUC's Educational Planning Division (DPOS), Directorate of Technical and Professional Education (DETP), and Education Projects Directorate (DPE) would be substantially reinforced, a capacity to carry out studies would be created, and a staff deve'lopment program would be carried out by a team of national and expatriate specialists (paras. 53-54). This would be achieved through a program integrating specialist and consultant services, fellowships abroad and local seminars, as described below. 45. DPOS would follow-up on the sector survey (para. 25) with specific studies and would develop a system to ensure the timely processing of pedagogical, administrative and financial data. The surveys would serve as a vehicle for the staff development program, which would involve all levels of MINEDUC's planning staff. A specialist in education finance would develop procedures to improve budget preparation, with particular emphasis on recurrent expenditures. The project would finance 96 staffmonths of specialist and consultant services, 103 staffmonths of fellowships for professional staff, and 128 staffmonths of local seminars for planning and statistical support staff, as well as furniture and equipment for DPOS. 46. The capabilities of DETP would be reinforced to provide (a) data on technical school facilities and staff; (b) a system for evaluating existing courses and a methodology for continuous instructor training and upgrading; (c) mechanisms to strengthen the tehnical education-employment linkage; (d) a capacity for resource planning/management; (e) a preinvestment study for new training facilities in three secondary technical schools; (f) the effective operation of a newly created maintenance unit with four local specialists to implement a maintenance program; and (e) a preinvestment study for a permanent purchasing/maintenance system for technical and science equipment. The project would finance equipment as well as 102 staffmonths of specialist and consultant services and 102 staffmonths of fellowships. The appointment of four local  - 15 - specialists to constitute the core staff of the maintenance unit would be a condition of loan effectiveness. 47. DPE, which is responsible for the implementation of this component and for the preparation of future education projects, would be reorganized and strengthened with additional staff and technical assistance. To assist DPE in carrying out its nationwide responsibilities, the project would finance equip- ment as well as 180 staffmonths of specialist and consultant services and 6 staffmonths of fellowships. To ensure the timely start-up of the project with a stronger DPE, effectiveness would be conditional upon signing of a decree structuring and expanding the Directorate, and its staffing with qualified and experienced personnel in sufficient numbers. A draft decree was reviewed during negotiation and found satisfactory. Details on the technical assistance recruitment procedures are given in paragraph 54. The following table gives a summary of the specialist services and fellowship training inputs to be provided to MINEDUC. Sumrzy of Specialist Services and FellashiptipTralnrg nirts for the Minzstry of Natiwal Fductikm Cm I) (in staffmnths) Prnmry and Matemal Tech. & Prof. Fduwatigal Fuwaticm Fdration Fdlcation pannng Projects Directorate Directorate Divisi ae ()DR (DEIP) am) Om Specialists _a/ 72 60 1 cciatants 13 36 24 FetIn.shipis - 102 103 6 Tlcal Seinars - 128 aJ Discusasd in para. 41. 2. Increasing the Relevance of the Vocational Training System 48. Support for development of CENAFOP. The project would support the National Center for Adult Vocational Training (CENAFOP) (paras. 32-33), helping it to: (a) make its training more relevant to the needs of local industry and employers by improving the training staff's ability to ident- ify new skill requirements and to translate them into appropriate courses; (b) equip its new workshops; and (c) lead the development of a national network of vocational training centers. This involves: (a) promoting a closer participation of employers in the management of CENAFOP and in the design and implementation of its programs; (b) assisting in the improvement of existing vocational training centers and in creating new ones; (c)  - 16 - proposing training programs for the trainers in other centers; and (d) contributing to the development of norms and regulations for the vocational training subsector. In addition to equipment, the project would finance 213 staffmonths of specialist and consultant services for staff training and the development of training programs and methodology, and 128 staffmonths of fellowships for CENAFOP's staff development program (para. 33). 49. Management of vocational training. The project would provide assistance to the Directorate of Manpower, Vocational Training and Projects (DMOFP) in the Ministry of Labor and Social Welfare (MTPS) to strengthen its planning capacity and the management of training resources. In order to develop capabilities for assessing the country's skilled manpower needs, formulating a comprehensive strategy for the subsector, and improving its linkages with the labor market, the project would concentrate on three key areas: (a) DMOFP's Manpower Sub-Directorate would be reorganized and staffed to undertake manpower surveys and establish a permanent data base; (b) the Vocational Training Sub-Directorate would be reinforced in the areas of planning, curricula and staff development, institutional management and performance evaluation; and (c) DMOFP would be reinforced to support these activities and to initiate and supervise a series of preinvestment studies, and to prepare and implement projects. The studies would provide the rationale for the rehabilitation of existing CFPRs (para. 32) and the establishment of eight additional CFPRs, the development of an apprenticeship system, and the creation and initial operation of an autonomous Office of Manpower and Continuous Training, with a view to eventually undertaking a free-standing vocational training project under Bank financing. 50. The project would finance 144 staffmonths of specialist and consultant services to conduct on-the-job training for DMOFP staff, organize surveys, and carry out preinvestment studies, as well as 137 staffmonths of fellowships for DMOFP staff. Furniture and equipment would be provided. The table below gives a summary of the specialist services and fellowship/training inputs to be provided for the MTPS component. S&mrxy of Specialst Sendces and FeI=#bIp/Tra1n#g Inpts for the MIistry of Labor and Social Wlfare OMES) (in staffimoths) National Ceoter for MnpNer. Vocatitcal Trafiing Adult Vocatimal Trainig and Projects Directorate (CmNAE) O E) Spec2iaist 174 9 Caisultant 39 48 FellUcvhips 128 137 51. To equip DMOFP to play an expanded role, in 1985, Government assigned full responsibility to the Directorate for implementing the MIPS component and reinforced it by the creation of a Project Unit. Details on  - 17 - the technical assistance recruitment procedures are given in paragraph 54. A condition of loan effectiveness would be the appointment of a competent local accountant for the financial section of the Project Unit. B. Project Cost and Financing Plan 52. The total project cost (net of taxes and duties) is estimated at US$61.2 million equivalent, with a foreign exchange component of US$32.6 million equivalent, or 53 percent of the total cost. Base cost estimates are in end-1985 prices. Government intends to exempt the project from taxes on construction, equipment and services; since the residual taxes would be negligible, they have been excluded from cost calculations. Government did not opt for cofinancing of the project. Therefore, the proposed Bank loan of US$30.1 million equivalent would finance the estimated foreign costs (except for recurrent expenditures). It would be for 20 years, including a five-year grace period at the standard variable rate. The Government would finance the remaining US$31.1 million equivalent. C. Project Implementation 1. Management and Institution Building 53. Project management. To facilitate administrattive and financial procedures and to build up strong project monitoring and evaluation capabilities, the MINEDUC component would be managed by the existing Education Projects Directorate (DPE) (strengthened to cope with this component's complexity), and the MTPS component would be managed by the Directorate of Manpower, Vocational Training and Projects, also to be strengthened. 54. Institution building. In order to build up a permanent national capability in educational planning and management, the project features an integrated staff development program, comprising 62.2 staffyears of technical assistance, 39.6 staffyears of fellowships and 10.7 staffyears of local seminars. Although large in absolute amounts, this program should be viewed in relative terms: the technical assistance would be deployed within six key institutions under two very large ministries and over a five-year period. It is deemed to represent the critical mass necessary to provide the institutional momentum required if the Government is to achieve its ambitious but fully justified plans for the sector. The technical assistance personnel would not substitute for local specialists; rather, they would work in integrated teams headed by Cameroonians, acting as catalysts in a process combining on-the-job and formal training, developing methodologies and procedures. It is expected that by the end of project implementation the institutions concerned could be largely self-reliant, as a dynamic process will have been generated. At the same time, implement- ation delays and cost overruns would be minimized, resulting in substantial savings. To ensure that the technical assistance focuses on activities fully in line with the project staff development objectives: (a) DPE and DMOFP will submit to the Bank for its review and approval semi-annual training programs for their respective components; and (b) the candidates  - 18 - for the fellowship program will be approved by the Bank, and upon successful completion of their studies will be employed for a minimum of two years in the positions for vhich they have been trained. 55. To create a synergy and ensure maximum impact from the start, selection procedures for internationally recruited personnel, and detailed arrangements for the fellowship program have been agreed. In order to simplify and accelerate the process, a lm4ited number of consulting firms were approached of the three; draft umbrella-contracts (one each for MINEDUC, MTPS and CENAFOP) two have already been reviewed by the Bank and found acceptable. A condition of loan effectiveness would be the employment of these firms and the selection of candidates for the thiee key posts, i.e a project manager for the Education Projects Directorate in MINEDUC, one for the Directorate of Manpower, Vocational Training and Projects in MTPS, and a specialist in methodology for CENAFOP.  - 19 - 2. Procurement 56. The procurement arrangeen8ts are summarized in the table below. Amuts an! Mds of Prociuint (US$ mlllS) X0~~~~~~~M d 1D (Aim i In parentuses fxdicaft amot of lE rkie1i t IB Othber tal COAs civil wnio 19.6 ~ 3.4 - - 23.0 (5.9) (1.0) (-) (6.9) Ard2lftecturst Fees 0.7 C 0.7 (-) (-) (-) (-) *@d@-S09-ntase ~12.2 # 3.0/ l.0v/ 16.2 (9.8) (2.4) (0.8) (13.0) SpWsat Sevl -- 10.1 10.1 (-) (-) (8.5) (8.5) Traimidz 1.8 h 1.8 -) (-) ~~~~~~(1.7) (1.7 PCZent costs 9.4 i/ 9.4 TotlI CAts 31.8 6.4 23.0 61.2 (15.7) (3-.4) Q&. L&A at LviL works for the aee tge vauld be oul th I bt-l ..i * ae ( wrd) gwrdl to Icrd Ek h . b/ LIMmt LOM amaam 1 d dboeols s o mld be promwed thV00z IMAl C.pstite liMing I=CB) pM W A m actable to the Bsek, aim it is dmly that b t alzely In tbe cimtxy wol b:d. c/ Site tly of ys afrde in 198 ai 1984 after local -~~~~~~dd w* - part finm:d ui e ti sec) d/ I bssact with a value in exs of M$10,000 ual Ibe3 accoriiBng to Woirld Bmk Qdddtnoe. QsFfyfyn dsmcnt s ul od riva preernce in bild emibntion,of 5 t or the hyxzt d,, uFbdoejr i8s^ el Catrats valed at betwnm $50,00 a!nd1 000 wud be mw&d di mogla 1LB fatmd acceptdble to the hlk, '4th a i6$3 ud1Um* =aum. f/_Xs belaw i$,0 D in valse auuebeped y ;wt qetcfrom at inst H rmenllible sumi-e sbeamm n olWm aU S$IilwemnLV aelI ab 2apps atbe nEuiad Iimng the Qdde3lis for tbe E s! e Useof r-h*eltYms aWo rts ldnu. b/ abrsi (akot 39.7 ul) w=d be pzed follouuingt ti 1 mioy salaries asormdM acquitd twuig replr Nervmemut pnxcmres.  - 20 - 57. Bidding packages for civil works valued at more than US$1.0 million equivalent and bidding packages for goods valued at more than US$100,000 equivalent would be subject to the Bank's prior review of the procurement documents. This would result in the coverage of the three major contracts of the 13 civil works contracts (about 85 percent of their total value), and of about 75 percent of the total value of the contracts for goods. Smaller packages would be subject to random post-reviews by the Bank after contract award. 3. Disbursements 58. The proposed Bank loan is expected to be disbursed over a period of seven years as follows: Alo3aticn and Disxrmeint Categries for Bank lom % of Estimsted Total Padplents Cost to be Disbursed Item _M_EUC MIPS Total from the Bank lDm Civil Wbrks 6.3 - 6.3 30 Equip -t/9ZDirnluz 9.1 2.7 11.8 80 Sp~fiaIsct Servces 4.0 3.8 7.8 85 Training Abroad 0.7 0.9 1.6 100 lnallocated 1.9 0.7 2.6 Total 22.0 8.1 30.1 49 59. All disbursements from the Bank Loan account would be fully documented, except for contracts valued at less than US$10,000 equivalent, for which expenses would be made against certified statements of expendi- tures. Documentation would be retained for review by Bank supervision missions and project auditors. In order to expedite disbursements. two revolving funds, one for MINEDUC (US$0.3 million) and the other for MTPS (US$0.2 million) would be establisbed ia Special Accounts to be opened in a commercial bank authorized to deal in foreign transactions. They could be used for all categories of expenditures. Detailed description of methods to be used in making payment out of the Special Accounts have been agreed upon. The Special Accounts would be replenished on a monthly basis, or when reduced by a third, whichever comes first. They would be audited in accordance with provisions of the Loan Agreement. No direct payment applications for less than US$20,000 equivalent would be submitted to the Bank. The disbursement profile has been estimated on the basis of the general profile for Cameroon (IBRD and IDA), modified by the disbursement profile of the Third Education Project.  - 21 - 4. Recurrent Cost Implications 60. The project's annua? incremental recurrent costs would amount to about US$7.3 million (without contingencies), with the following main items: (a) for the three primary teachers colleges, about US$0.3 million, representing more than a doubling of non-salary recurrent costs to about 7 percent of total recurrent costs; there would be no other incremental costs, since administrative and teaching staff would be transferred from existing colleges; (b) for the secondary technical schools, about US$2 million for operation and maintenance of the new facilities and equipment financed under the preject; this would represent a 3.5 percent increase over the total 1983/84 recurrent budget for the technical secondary schools network; and (c) for CENAFOP, about US$3.6 million to ensure proper operation of the workshops and payment of additional salaries; this would represent a 65 percent increase over the center's 1984/85 recurrent budget and is largely attributable to expansion in progress outside the proposed project. The remaining recurrent costs (US$1.4 million) would concern maintenance and planning. Adequate provision has beaen included in the Government's contribution to cover these costs. 5. Auditing and Reporting 61. For each component for which they are responsible, the Education Projects Directorate (MINEDUC) and the Directorate of Manpower, Vocational Training and Projects (MTPS) would maintain separate accounts for the Bank loan and for the Government's counterpart financing. During negotiations, the Government gave assurances that (a) all project accounts will be audited annually by auditors acceptable to the Bank; (b) the Government will submit the accounts and the auditors' reports to the Bank within six months of the close of the Government's fiscal year; and (c) the reports of the auditors will be of such scope and in such detail as the Bank might reasonab'y request. Audit fees would be f4tanced by the Government. To facilitate close monitoring of the prnject, the Education Projects Directorate and the Directorate of Manpower, Vocational Training and Projects would submit to the Bank, for each component for which they are responsible: (a) semi-annual progress reports; and (b) within six months of the Closing Date, a final report on the implementation experience and project outcome. D. Project Benefits and Risks 62. Benefits. The project is expected to produce both short- and long-term benefits. By improving the quality of primary education, secondary technical education and vocational training, it would help to meet some of the most urgent needs for qualified manpower of an expanding economy while raising the efficiency of existing institutions. It would also contribute to increasing labor productiv