Chad - Education Rehabilitation Project

Documnent of The World Bank FOR OFFiCIAL USE ONLY /50- Report No. P-4810-CD MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 16.2 MILLION TO THE REPUBLIC OF CHAD FOR AN EDUCATION REHABILITATION PROJECT July 14, 1988 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = CFA Francs (CFAP) US$ - CFAF 290.1 (May 31, 1988) CFAF 1 Million US$ 3,447.09 MEASURES 1 m 1.09 yd. 1 m2 10.76 sq. ft. 1 km2 0.38 sq. mi. ABBREVIATIONS AND ACRONYMS AfDB African Development Bank (Banque Africaine de Developpement) AFVP Association Frangaise des Volontaires du Progres (French Association of Volunteers for Progress APE Association des Parents d'Eleves (Parents' Association) EDP European Development Fund FAC Fonds d'Aide et de Cooperation (French Development Agency) PRC Financial Rehabilitation Credit (Credit de Rehabilitation Financiere) HEN Ministire de l'Education Nationale (Ministry of National Education NGO Non-Governmental Organization FISCAL YEAR SCHOOL YEAR January 1 - December 31 October - July  FOR OMCIAL USE ONLY REPUBLIC OF CHAD EDUCATION REHABILITATION PROJECT CREDIT AND PROJECT SUMMARY :k Borrower: The Republic of Chad Beneficiary: Ministry of Education Amount: SDR 16.2 million (US$22.0 million equivalent) Terms: Standard, with 40 years maturity Onlending Te-ms: Not applicable Financing Plan: Government: US$1.4 million Local communities: US$1.8 million (in kind) IDA: US$22.0 million TOTAL: US$25.2 million Economic Rate of Return: Not applicable. Staff Appraisal Report: Report No. 7244-CD Map: IBRD 20901 This document has a restricted distribution and may be used by recipients only in the perfommanc. of their official duties. Its contents may not otherwise be disclosed without World Bank authorizat.3j  HEHORANDUH AND RECOMMENDATION OF THE PRESIDERi OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF CHAD FOR AN EDUCATION REHABILITATION PROJECT 1. The following memorandum and recommendation on a proposed Development Credit to the Republic of Chad for SDR 16.2 million (US$22.0 million equivalent) is submitted for approval. The proposed credit would be on standard IDA terms with 40 years maturity and would help finance the rehabilitation of primar" education and of the education sector's institutions. f 2. Back2round. Despite the destruction and disruption brought about by the war, including interruption of Government support, local community and donor initiatives have allowed Chad to maintain minimal educational activities, in both Government and community-built and managed "spcztaneous" schools (about 1,320 and 480 schools, respectively, of which 13S are for girls). In 1987, the gross primary enrollment ratio was a low 45% (about 28% of the enrollment is girls), but demand remains high, with enrollments having grown by 7% per annum over the past three years. The sector is severely underfinanced: it is allocated about 11, but actually receives only about 7% (1987) of Government's total recurrent budget which has been affected by the decline in. cotton prices; of this, salaries absorb about 96%, leaving only 4% for pedagogic inputs and materials; even then teachers, as most civil servants, are paid at only 60% of their 1967 salary base, and with lengthy delays. To partially compensate for this, the local communities (mostly in the form of Parents' Associations, or APEs) have been financing all primary school construction and maintenance on a self.,help basis, and have been recruiting and paying some 2,500 so- called "supplementary" teachers (45% of the teaching corps); this represents a contribution in cash and in kind equivalent to about 25% of public expenditures for education in 1987. The APEs are a driving force in the sector, but sustaining their effort will require financial and technical support, and the somewhat anarchic nature of their development raises questions of quality. There is a potential for structural distortion, but this has been limited by fiscal constraints, which have prevented growth beyond primary education. The Government's most urgent priorities are rehabilitation of primary education and the formulation of a global, long-term human resource development strategy. 3. Three readily identifiable issues should be addressed urgently. The first concerns the sector's underfinancing and the need to ensure the sustainability and increase the productivity of investments made by the communities. The second is the poor learning environment in primary education, which results in low internal efficiency and quality (it takes 16 pupil-years of instruction, versus a theoretical six, to produce a primary education graduate). This is due to extreme resource constraints (both public and private), which have led to (a) a dilapidated physical er.vironment, in which about 40% of the schools require replacement and 60% rehabilitation, school furniture is lacking, and the average student/teacher ratio is 60/1; (b) a dearth of textbooks and classroom supplies (1 set per 9 students); (c) large scale reliance on 2,500 'supplementary" teachers, only 200 of whom have completed lower secondary education, and none of whom have received professional training or professional incentives; and (d) insufficient teacher supervision and support by the inspectorates. The third issue is the Ministry of Education's (MEN) weak capacity to plan and manage the sector's financial, human and physical resources. 4. Rationale for IDA involvement. Given the low level of human resource development in Chad, education is a high priority, and the proposed project would be  2 part of a concerted effort (AfDB, EDF, FAC, NG0s) to restore acceptable operating conditions in the sector. It would complement and implement at the sectoral level elements of the adjustment program to be undertaken under IDA's Financial Rehabilitation Credit (FRC), while creating the basis for long-term sustainable growth. IDA's ivolvement has resulted in the initi,l definition of a policy and institutional framework which should accelerate rehabilitation and lay a solid foundation for balanced development. The approach developed with the Chadian authorities is realistic and has already served as a vehicle for aid coordination, especially with France, the major bilateral donor. Finally, the project is providing a model on which a series of repeater projects could be based, possibly financed by other donors, to further the process of physical and institutional rehabilitation while an IDA-financed, policy-based sector operation is envisaged for FY92. 5. Proiect oblectives. The project is designed to initiate a long-term process of rehabilitation of the education sector. It would assist the Government to (a) adopt appropriate policies; (b) rehabilitate primary education by restoring to minimal acceptable standards the physical schooling environment in two zones (four regions) and learning conditions countrywide; and (c) rehabilitate sectoral management and planning for a more effective allocation and use of scarce educational resources. The project would meet the most obvious and urgent needs, building on the dynamics born out of the war's exceptional circumstances -- the APE movement -- while giving MEN the means to carry out its planning, regulatory and support role, without mortgaging future options. 6. Prolect description. In order to meet the above objectives the project would help the Government to: (a) develop and implement an education strategy aimed at increasing the resources available to the sector, and allocating them appropriately, avoiding the emergence of major distortions; (b) rehabilitate primary education by (i) supporting a program of community-based school reconstruction/rehabilitation and equipping of 1,000 existing classrooms; (ii) providing about 600,000 basic primary textbooks and in-service training for about 1,750 of the more qualified supplementary teachers; and (iii) strengthening teacher supervision and support including training of 600 school directors; and (c) rehabilitate sectoral management by (i) reinforcing national capacities in the critical areas of budget preparation and implementation (including procedures to ensure regular salary payments to education staff), personnel management, planning and policy formulation; and (ii) strengthening the recently established National Directorate for Education Projects to ensure timely and efficient implementation. 7. The project, to be implemented over a six year period, would finance civil works, furniture, equipment, pedagogic materials, training, specialist services, and selected incremental costs. Its total cost is estimated at US$25.2 million equivalent, with a foreign exchange component of US$19.2 million (76%). A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement, and the disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Chad are given in Schedules C and D, respectively, followed by a map of the country. The Staff Appraisal Report, No 7244-CD, dated July 14, 1988, is also attached. 8. AMreed actions. The Government has agreed on the principle of joint Annual Reviews aimed at assessing performance during the previous year, approving a work program for the following project year (PY) and gradually specifying a policy framework for the sector, as detailed sector work becomes available. This would include (a) reviewing, on the basis of agreed trends and annually determined targets,  3 the level and structure of the recurrent budget with a view to increasing education's share (now 11%) in Government's total recurrent budget, and within the sectoral budget, protecting the share of primary education (now 51%) and raising the share of non-salary expenditures (now 4%); (b) monitoring, on the basis of target zones (i) teacher recruitment and promotion so as to contain the growth of the salary element of the budget, and (ii) the number of new entrants into secondary general and non-scientific higher education, in an effort to orient students toward the streams and disciplines for which there is a market demand; and (c) agreeing on a rolling three-year investment program for the education sector. Tne Government has also agreed to prepare and implement a scheme, acceptable to IDA, to ensure regular payment of education personnel salaries (at 60% of 1967 salary levels), and to formulate a global human resource strategy. A condition of effectiveness would be signing of the contract for the internationally recruited Educator and the arrival in-post of the Project Administrator. Conditions of disbursement would be (i) for tlhe primary school construction component, the signing of a contract with a volunteer association to support the implementation of the primary school construction program, and (ii) for the Study Fund (Category 7), the approval by the Association of each activity proposed by the Government for financing under this Fund. 9. Benefits. Developing a partnership between the APEs and the Government for the rehabilitation of primary education would provide a new impetus for sectoral development without placing excessive pressure on an already overstrained Government budget. Restoration of acceptable quality standards in primary education would have a favorable impact on pupil achievements and internal efficiency at all levels of education and eventually on l1"or productivity. The formulation and implementation of a strategy involving sound policy principles, a well-coordinated investment plan and a realistic institution-building program would set the stage for balanced development and long-term, sustainable growth. 10. Risks. The risk that the war now localized in the northern part of the country outside the project area might intensify, drawing more resources toward the military effort, is common to all Chad operations. Two risks ~aore closely related to the proposed project concern (i) possible demobilization of the local communities, if a sudden influx of resources leads to centralizing tendencies in the Government; and (ii) limited absorptive capacities of MEN and of the local communities, which are also solicited by other externally financed projects. The project design is expected to reduce these risks, through shared managerial and financial roles between the Government and the local communities, rigorous criteria for access to and control of project funds, capacity reinforcement, and careful monitoring. 11. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Barber B. Conable President Attachments Washington, D.C. July 14, 1988  4 Schedule A REPUBLIC OF CHAD EDUCATION REHABILITATION PROJECT ESTIMATED COSTS AND FINANCING PLAN Estimated Costs i Local Foreign Total ------(USS million)------ 1. Rehabilitation of Primary Education: (a) Support to Community Initiative for the reconstruction/rehabilitation and equipping) of about 1000 classrooms 2.3 7.2 9.5 (b) Provision of textbooks, teacher training and supervision 2.6 4.9 7.5 Sub-total 4.9 12.1 17.0 2. Rehabilitation of Sector Management and Planning Capacities: (a) Strengthening MEN's capacities to plan and manage resource use 0.2 1.4 1.6 (b) Project directorate 0.1 2.5 2.6 Sub-total 0.3 3.9 4.2 Total Base Costs 5.1 16.0 21.1 Physical Contingencies 0.2 1.2 1.4 Price Contingencies 0.7 2.0 2.7 Sub-total 0.9 3.2 4.1 Total Prolect Costs 6.0 19.2 25.2 CZ== i Net of taxes and duties, of which the project is exempt. Financing Plan Local Foreign Total -----(US$ million)- IDA 3.9 18.1 22.0 Government 0.6 0.8 1.4 Local Communities (in kind) 1.5 0.3 1.8 TOTAL 6.0 19.2 25.2 Notes Totals may not add up due to rounding.  5 Schedule B REPUBLIC OF CHAD Page 1 of 2 EDUCATION REHABILITATION PROJECT PROCUREMENT METHOD AND DISBURSiMENTS Procurement Method NO CATEGORY OF EXPENDITURE ICB LCB OTHER N/A TOTAL COST _________----- (US$ million)------------------ 1. Civil Works a. General contracts - 1.37 - - 1.37 (Parts A, B1, B3) - (1.37) - - (1-37) b. Building materials 4.46 0.19 0.10 - 4.75 (Part A) (4.46) (0.19) (0.10) - (4.75) c. Community inputs - - - 1.76 * 1.76 (Part A) - - - (0.00) (0.00) 2. Furniture and non Pedagogical Equipment 2.25 0.60 0.20 - 3.05 (Parts A, B, C, D) (2.25) (0.60) (0.20) - (3.05) 3. Pedagogical Material a. Textbooks - - 2.96 - 2.96 (Part B1) - - (2.96) - (2.96) b. Pedagogical equipment 0.14 - - - 0.14 (Parts A, B) (0.14) - - - (0.14) 4. Specialist Services and Study Fund a. International and local specialists - - - 4.58 4.58 (Parts A, B, C, D) - - - (4.58) (4.58) b. Volunteers - - - 0.64 0.64 (Part A) - - - (0.00) (0.00) 5. Training and Fellowships - - - 2.86 2.86 (Parts A, B, C, D) - - - (2.57) (2.57) 6. Operating Costs - - - 3.10 3.10 (Parts A, B, C, D) - - (2.60) (2.60) TOTAL COSTS 6.85 2.16 3.26 12.94 25.21 TOTAL FINANCED BY IDA (6.85) (2.16) (3.26) (9.75) (22.02) NOTE: Capital letters and figures in parentheses show the respective components and amounts financed by the IDA credit. * Local communities' contributions for the school construction program. Part A: Support to Community Initiatives; Part B: Improving quality and efficiency; (Part B1: Provision of textbooks; Part B2: Teacher Training; Part B3: Inspectorates); Part C: Strengthening management and planning capacity of MEN; Part D: Project directorate.  6 Schoiule B Page 2 of 2 Disbursements Go t. eRorv Amount X 'US$ million) 1. Civil works contracts 5.6 100% (of expenditures) 2. Furniture and non- pedagogical equipment 2.8 1002 (of expenditures) 3. Pedagogical materials 2.8 100% (of expenditures) 4. Specialist services 3.5 100% (of expenditures) 5. Training and fellowships 2.4 1002 (of expenditures) 6. Operating costs 2.3 85% (of expenditures) 7. Study fund .3 100% (of expenditures) C. PPF .575 9. Unallocated 1.725 Total 22.0 U= Estimated IDA Disbursements: IDA Fiscal Year 1989 1990 1991 1992 1993 1994 --------------(US$ millions)--------- Annual: 5.7 4.4 4.7 3.8 3.4 - Cumulative: 5.7 10.1 14.8 18.6 22.0 22.0  7 .chedule C REPUBLIC OF CUAD EDUCAIION REBABILITATION PROJECT TI1ETABLK 0 KEY PROJECT PROCESSING EVENTS (a) Time taken to prepares 10 months (b) Prepared byt Government with UNESCOICP Assistance (c) First IDA missions July 1987 (d) Appraisal missions February 1988 (e) Negotiations: June 5-15, 1988 (f) Planned Date of Effectiveness: November 1988 (g) List of Relevant PCR and First and Second PPARIs Education Projects (PCR dated March 30, 1979) (PPAR No. 2616 dated July 31, 1979)  8 Schedule D THE STATUS OF BANX GROUP OPERATIONS IN CHAD A. STATEMENT OF IDA CREDITS t As of April 30, 1988 ) Amount in US$ million (less cancellations) al Credit No. Fiscal Year Purpose IDA cl Undisbursed 2 credits have been cancelled and fully repaid bI 12 credits have been fully disbursed 43.59 Cr.489-1 1976 Sategui-Deressia Irrigation Supplement 8.00 0.05 Cr.811 1978 Third Educ4,tion 8.30 3.56 Cr.1716 1986 Cotton Program 15.00 8.09 Cr.1728 1986 Highway Maintenance 20.00 17.34 Cr.1775 1987 Agriculture Sector Rehabilitation 17.40 17.68 Cr.1872 1988 Economic and Financial Management di 12.80 13.84 Cr.1901 1988 Road Reconstruction di 47.00 47.62 TOTAL 172.09 108.18 of which has been repaid 1.98 Total now held by IDA 170.11 Amount sold 5.08 of which repaid 5.08 Total undisbursed 108.18 a/ Prior to exchange adjustments. bI The Second Livestock (USS 11.5) and Third Highway (US$ 7.6) Projects were cancelled before becoming effective, on October 16, 1980. Supplemental credits were approved for the First and Second Education Projects and for the Sategui-Deressia Project. cl Credit No.1716 and higher are denominated in SDRs and are shown in US$ equivalent based on exchange rates in effect at the time of negotiations. dl Not yet effective. B. STATEMENT OF IFC INVESTMENTS Chad is not a member of IFC.  2;r IS~~~~~~~ERO 20901 * ~~~~CHAD \ EDUCATION REHABILITATION PROJECT PROJET DE REHABILITATION DE L'EDUCATION PROJECt REGIONAL SUPPORT CENTERS ; B Y A * cENreS DOAPPU REGIONAUX ICAR) L I rwoffrt_ , PRLMARY TEACHER TRAINING COttEES ECOLES NORMALES DINsnTrurEURs (ENI) A REGIONAL IN-SERVICE TRAINING CENTERS - CENTRES REGtONUt DE rMATION / REGIONAL PRIMREY EDUCATION o INSPECTORATES I INSPECtIONS PRINOPALES DE t t ~~~~~NSETON GE LESEEMENTAflff L VkSEIGAEMRIV ELRMENTAIE (IPRE PRIVARY EDUCAtION INSPECTORATES 0 tNSbnONS O DE LNSaGNEMENr ELEMENTAIRE ME) O @ Q~.~ PEECURSPREFECTRE CITAT BORKOU - ENNED/ - rIBESTI Of F.tIX DE PrV sC I 6 NATIONAL CMtAt PREFECtURE BOUNDARIES FAYA-LARGEAU LuWES Df PDE fECTURES | t300 INtERNATIONAL BOUNDARIES I FAONREs NTNAtES ; O 100 200n ItmOllTERS | 0. * - r.'.fmm thS .jflg s4.a.I I N *_ 4 -'* - - c_ - na .a o.m 8. KEIK A N E M /5 A\ As 0gl 0 ) SUDAN \ \ / 7 J O ~~~~~U A D D AI NIGERIA CHARI v- / ( BAGURIMI GU E RA MAY.S00ALAMAT A ~~~~TANOJILE 0 A~~ .r/ C A 15A M MOA L gX AU E. I O OA 0 / AFRICAN E r 1 o. ROOAE P ' CEN AL CH A E.LGO0 NIGERIAFRCA * ~~~~~~~~~~~REPUBLIC .- FIA