Djibouti - Manpower and Education Development Project

Document of The World Bank FOR OFFICIAL USE ONLY G a o to - RC) V 1eport No. 8065-DJI STAFF APPRAISAL REPORT REPUBLIC OF DJIBOUTI MANPOWER AND EDUCATION DEVELOPMENT PROJECT NOVEMBER 17, 1989 Population and Human Resources Operations Division South Central and Indian Ocean Department, Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Currency Eauivalents Currency Unit Fr .c Djibouti (FD) US$1 - FD 176.83 FD 100 e USS 0.56 Measures Metric British/US Equivalent 1 meter (m.) . 3.28 feet 1 square meter (sq m.i) 10.76 square feet 1 kilometer (1 km.) 0.62 mile 1 square kilometer (sq km) 0.39 sq. mile Glossary and Abbreviations AfDF African Development Fund (Fonds Africain de Ddveloppement) BaccalaurAat Upper Secondary School Diploma BEPC Brevet d'Etudes du Premier Cycle (Lower Secondary School Certificate) BEP Brevet d'Enseignement Professionnel (Vocational Training Diploma) CAP Certificat d'Aptitude Professionnelle (Vocational Training Certificate) CEP Certificat d'Etudes Primaires (Primary Education Certificate) CNFE Conseil National de la Formation et de l'Emploi (National Council for Training and Employment ,&!TE) CRIPEN Centre de Recherche, d'Information et de Production de l'Education Nationale (National Center for Education Research, Information and Production) DGEN Direction Gendrale de l'Education Nationale (National Education General Directorate) FED Fonds Europeen de Developpemnent (European Development Fund EDF) LEP Lycee d'Enseignement Professionnel (Vocational Training School) LIC Lycee Industriel et Commercial (Upper Secondary Industrial and Commercial Lycee) MEN Ministare de i'Education Nationale (Ministry of National Education) MFEN Ministbre des Finances et de l'Economie Nationale (Ministry of Finance and National Economy) MTPUL Ministere des Travaux Publics, de l'Urbanisme et du Logement (Ministry of Public Works, Urban Planning and Housing) MTPS Ministare du Travail et de la Prevoyance Sociale (Ministry of Labour and Welfare) PTP Project Task Force Groupe de Coordiatation du Projet SNE Service National de l'Emploi (National Service for Employment) SOE Statement of Expenditures (Etat certifie de depenses) SPE Service de la Planification de l'Education (Service for Educational Planning) UNDP Programme des Nations-Unies pour le D6veloppement (PNUD) (United Nations Development Program - UNDP) Fiscal Year School Year January 1st - December 31 October - June  FOR OFmFCIAL USE ONLY DJIBOUTI MANPOWER AND EDUCATION DEVELOPMENT PROJECT TABLE OF CONTENTS PaRe DOCUMENTS IN PROJECT FILE CREDIT AND PROJECT SUMMARY I. INTRODUCTION ..................................................... 1 II. THE EDUCATION AND TRAINING SECTOR .. . 1 A. General Characteristics . . . 1 B. Sectoral Issues ............................................... 2 1. Coordination of vocational training with the labor market 2 2. Access to education . . . 3 3. Quality of education ... 3 4. Educational management .... . 5 5. Financial constraints . . . 5 C. The Government's sectoral strategy and investment program .....6 D. The Bank Group's Role ............ 8 III. THE PROJECT A. Project Objectives and Description .... 8 1. Coordination of vocational training . . 8 2 . Access to education ....... ..................... 9 3. Quality of education . . . 9 4. Educational management . . . 10 5. Costs and financing ..................................... . 11 B. Project Costs and Financing . . . 12 1. Project costs . .. 12 2. Project financing . . . 15 C. Project Management and Implementation . . 15 1. Procurement .............................................. 17 2. Special account . . . 18 3. Accounting, auditir.g, reporting . . 18 4. Disbursements . . . 18 IV. PROJECT BENEFITS AND RISKS ....................................... 19 V. AGREEMENTS REACHED AND RECOMMENDATIONS ........................... 19 This report is based on the findings of an appraisal mission that visited Djibouti in May-June 1989. The mission members were Messrs. Djamalddine Rouag (Mission leader, Sr. Education Planner), Edmond de Gaiffier (Sr. Economist), Alain Papineau (Architect) and Andre Berruer (Educator/ Consultant). This report was prepared by Mr. Rouag with contributions of Mr. Papineau and edited by Mrs. Whitney Watriss. Mmes. Duchesne, Ryckebusch and Vaselopulos assisted with the preparation of the report. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Table of Contents (continued) ANNEXES 1-1 Basic Data Sheet 2-1 Socio-economic Background 2-2 Overview of the Education and Training System 2-3 Organization chart of MEN and MTPS 2-4 Information on the management of the labor market 2-5 Status of Languages of Instruction 2-6 List and Status of cost reduction measures 3-1 Project Summary Accounts 3-2 Project Implementation Schedule 3-3 List of Specialist Services and Training 3-4 Schedule of disbursement Maps IBRD No. 21906  DJIBOUTI MANPOW'ER AND EDUCATION DEVELOPMENT PROJECT DOCUMENTS IN PROJECT FILE REF NO. DOCUMENTS ---------------------------------------------------------------__---------- 1. Ministare de l'Education Nadionale; Statistiques scolaires 1987-88 et 1988-89/ Ministry of National Education. Educational Statistics 1987- 88 and 1988-89. 2. Ministare de l'Education Nationale; Preparation du plan quinquennal de devt ppement de l'education: Elements de strategie, de methodoiogie et de calcul du plan, fevrier 1988I Ministry of National Education; Preparation of the education five year plan: Strategy, methodology and computation, February 1988. 3. Ministare de l'Education Nationale; Projet de plan quinquennal de l'education, fevrier 1988/ Ministry of National Education; Draft of the education five year plan, February 1988. 4. Minist&re de l'Education Nationale; Deuxihme projet Oducation. RequAte du Gouvernement de la Republique de Djibouti I la Banque Mondiale, Mars 1988/ Ministry of National Education, Second Education Project: Government of Djibouti request to the World Bank; March 1988. I 5. Unesco: Republique de Djibouti: Education formation et emploi, I et II, Juin 1988/ Unesco; Republic of Djibouti; Education, Training and Employment I and II, June 1988. 6. Renforcement du service national de l'emploi/Strengthening of the national service for employment (working paper), June 1989. 7. Conseil National de la Formation et de l'Emploi/National Council for training and employment (working paper), June 1989. 8. Programme de construction d'ecoles primaires/ Primary schools construction program (working paper), June 1989. 9. Centre de Recherche, d'Inforaation et de Production de l'Education nationale/ National Center for education research, information and production (working paper), June 1989. 10. Inspections primaires/ Primary education inspectorates (working paper) June 1989.  11. Planification et administration/ planning and management (working paper) June 1989. 12. Gestion du projet/ Project management (working paper) June 1989. 13. Servicua architecturaux, construction et passation des marches/ Architectural services, construction and procurement (working paper), June 1989. 14. Fonds Africain de Ddveloppement: Rapport d'4valuation du projet de lycde industriel et commercial; fevrJer 1989/ African Development Funds appraisal report of the industrial and commercial lycee, February 1989.  DJIBOUTI MANPOWER AND EDUCATION DEVELOPMENT PROJECT STAFF APPRAISAL REPORT Credit and Proiect Summary Borrower: Republic of Djibouti Beneficiaries: Ministry of National Education (MEN) Ministry of Labor and Welfare (MTPS) Prime Ministry Amounts SDR 4.6 million (US$5.82 million equivalent) Terms: Standard with 40 years maturity Proiect Description: Objectives: The objectives of the project are to: (a) improve the coordination of vocational training in relation to labour market patterns; (b) increase access to primary education; (c) upgrade the relevance and quality of education at the primary and lower secondary levels; and (d) improve the mAnagement capazity of the Ministry of National Education while reducing costs and better allocating resources Components: (a) Coordination of Vocational Training. Improve the technical capacities of the National Service for Employment and establish a National Council for Training and Employment. (b) Access to Primary Education. Establish three primary schools in Djibouti-City and one in Ali Sabieh, with a double-shift enrollment capacity of 4,500 students. (c) Quality of Education. Establish a National Center for Educational Research, Information and Production and two regional inspectorates. (d) Educational Management. Strengthen educational planning and management through specialist services and training. Benefits: The proposed project would establish a framework for expanding the education sector by: (a) increasing its cost-efficiency while tying sectoral investments to the Government's capacity to meet the incremental recurrent costs; (b)  improving the relevance and quality of education; and (c) assisting in institution-building throughout the education and training sector. The project would provide spaces for 4,500 primary school-age children, an increase of 17 percent over the enrollment in 1988/1989, but the more important long-range benefit to the sector would be reduction of the costs of primary teachers without sacrificing their qualifications, more relevant curricula at the primary and lower secondary levels and changes in vocational education, to be introduced by the National Council for training in that sub-sector. Risks: The risks include the iL 1equate staffing and technical capacities of the institutions Involved. Arrangements on additional staffing and a s4zable tra'.ning program, supplemented by specialist services in the key areas addressed by the proposed project, would help overcome these weaknesses. Estimated Costs: ----------US$ million------- Local Foreign Total (a) Coordination Vocational training 0.04 0.68 0.72 (b) Access to primary education 1.54 1.46 3.00 (c) Quality of education 0.71 1.53 2.24 (d) Educational management 0.16 0.52 0.68 Ce) Studies and preparation of - 0.08 0.08 future investments Total base cost 2.45 4.27 6.72 Physical contingencies 0.22 0.23 0.45 Price contingencies 0.13 0.22 0.35 Total project cost 2.80 1/ 4.72 7.52 Financing Plans ----------US$ million------ Local Foreign Total IDA 1.91 3.91 5.82 UNDP 0.01 0.41 0.42 FED _ 0.40 0.40 Government 0.87 2/ - 0.87 Estimated Disbursements: ----------------USS million-------- FY 1991 1992 1993 1994 1995 IDA Annual 0.8 1.3 1.6 1.4 0.7 Cumulative 0.8 2.1 3.7 5.1 5.8 Economic Rate of Return: Not applicable 1/ of which 0.1 million taxes and duties 2/ of which 0.1 million taxes and duties  DJIBOUTI MANPOWER AND EDUCATION DEVELOPMENT PROJECT STAFF APPRAISAL REPORT I. INTRODUCTION 1.01 The Government of Djibouti has requested IDA's assistance in financing a project with the objectives of: (a) improving the coordination of the vocational training subsector in relation to labor market patterns; (b) increasing access to primary education; (c) upgrading the relevance and quality of primary and lower secondary education; and (d) improving the managerial capacity of the Ministry of National Education (Ministere de l'Education Nationale - MEN) while reducing costs and better allocating resources. The estimated project cost is US$7.5 million equivalent (net of taxes and duties, except for operating costs), with a foreign exchange component of US$4.7 million (about 62 percent). The European Development Fund (Fonds Europ4en de D4veloppement - FED) and the United Nations Development Program (Programme des Nations Unies nour le Developpement - PNUD) would contribute US$0.40 million and US$0.42 million, and the Government would contribute about US$0.9 million equivalent to the project, respectively. The remainder of US$5.8 million equivalent would be financed by IDA. 1.02 The proposed project would be IDA's second contribution to the development of Djibouti's education and training sector. Its objectives would be to assist in the financing of the Education Five-Year Investment Program within a strategy aimed at increasing the cost-efficiency of the sector and improving the relevance and quality of education. IDA is in a favorable position to help in this effort, as over the last two years it has been engaged in an intensive policy dialogue on the sector with the Government. The basic data sheet is in ANNEX 1.1. II. THE EDUCATION AND TRAINING SECTOR A. GENERAL CHARACTERISTICS 2.01 Labor Market. Djibouti's labor market is very small. Of a labor force of 160,000 in 1987, only 48,000 held permanent jobs, with 24,000 in the formal sector (6,700 in the public, 4,000 in the para-public and the revt in the private sector). This disequilibrium results from the high rate of population increase (about 3.0 percent per annum) and difficult conditions for the growth of the p.imary and secondary sectors, ?'hile development of the tertiary sector faces severe constraints (shortages of skilled labor, weak administration and high costs of qualified labor). Detailed socioeconomic background information is provided in Annex 2.1.  - 2 - 2.02 Education and Training. Djibouti's formal education and training system is very closely modeled after the French system. It consists of six years of primary education starting at age six, followed by four years of lower and three years of upper secondary education (general and technical). Higher education is undertaken abroad with Government and bilateral financing (about 350 students). In addition, the country has developed a limited non-formal education and training system with about 2,000 trainees. The non-formal vocational training is funded largely out of public revenues. Public education accounts for about 90 percent and 85 percent of primary and secondary enrollments, respectively. Annex 2.2 provides an overview of the education and training sector, including a chart showing the structure of the education and training system. 2.03 Organization and Administration. The administrative responsibilities for education, training and labor are shared by three ministries: (a) the MEN for primary, secondary and higher schooling (both genera'. and technical); (b) the Ministry of Labor and Welfare (Ministere du Travail et de la Pr4voyance Sociale - MTPS) for vocational training and labor management; and (c) the Prime Ministry (Primature) for policy and coordination of manpower development and training. The Ministry of Finance and National Economy (Ministere des Finances et de l'Economie Nationale - tFN) and the Ministries of Health and Justice have their own training centers. In addition, there are several institutions (e.g., the Chamber of Commerce and Industry, the Postal Service and the Electricity Corporation) and associations (e.g. the National Youth Association, Mother and Child Center and National Union of Djiboutian Women) that also manage training centers. These programs currently involve only a few trainees but an expansion of capacity is envisaged. Without adequate planning and control however, this scattering of technical and vocational training and the envisaged expansions will result in overlapping and excess capacities. Organization charts for the MEN and MTPS are given in Annex 2.3. B. SECTORAL ISSUES 1. Coordination of Vocational Training with the Labor Market 2.04 Along with a high level of unemployment (para. 2.01), Djibouti faces a serious shortage of trained manpower, particularly at the middle and higher professional and management levels, while having excess training capacity for some lower level skills (e.g., masonry, plumbing and mechanics). Expatriates account for about 5 percent of total employment in the formal sector but hold about 40 percent of the professional, supervisory and higher level technical positions, including in the education sector. Between 1983 and 1985, 95 percent of higher, secondary and technical education graduates found employment, but the employment rate for graduates at 'he level of skilled worker was low, varying with the subsector (E.g., 35 percent for construction workers, 47 percent for mechanics and 49 percent for clerical staff), indicative of a disequilibrium between labor demand and supply at this skill level. 2.05 The main Government law guiding Djibouti's economic and social orientation (no. 251/AN/82) stresses the strategic role of human resources in economic development, particularly in relation to the goal of making Djibouti an international center for commerce and banking. This emphasis is not, however, reflected in the current levels of institutional development and performance of the education and training sector. The National Training and Employment Program (Programme National Formation et Emploi) under the Prime Minister, -4iich is intended to coordinate and develop manpower  -3- training in line with labor market requirements, is constrained by its limited ateffing, lack of resources, scant statistical and information base, and inadequate involvement of employers. Until recently, the MEN largely neglected the labor market environment becausa of a lack of technical expertise regarding policy analysis and planning for human resources (para. 2.15). The other relevant Government ministry, MTPS, is weak. While it has a total staff of about 90, its capacity for data collection and processing, analysis of the labor market, and policy development through its main agency, the National Service for Employment (Service National de l'EmIloi - SNE) is negligible. As a result, the training system is not geared to the current and future needs of the labor market. Annex 2.4 provide, additional information on the status of the management of the labor market. 2. Access to Education 2.06 There are no reliable data on population for Djibouti because of the prevalence of nomadic and semi-nomadic herdsmen, who wander across the frontiers, and the uncertain number of immigrants and refugees from neighboring countries. Estimates of the population and primary school age group published by the Djibouti National Directorate of Statistics in 1986 suggest a gross primary school enrollment rate of about 36 percent. This relatively low level is explained by the high unit costs and, to some extent, lack of school buildings and, in a more general way, by the nomadic nature of part of the country's population. Admi_sion to primary education is conditioned by the provision of a Djiboutian birth certificate. This policy inherited from the previous governing power seems also to be applied in order to avoid enrollment of children from neighboring countries at the expense of nationals. Because of the low level of primary enrollment, and the share of Djibouti-City in the overall population; the sector authorities'indications, that the demand of students with birth certificates is still higher than available capacity, seem plausible. A decentralization law has recently been promulgated which would allow the regional authorities to establish nationality and to issue birth certificates: this should provide a partial solution to the problem of equity of access. However, the problem of providing access to Oresidents children from neighboring countries needs still to be addressed. Girls account for 42 percent of total primary enrollment but only about 33 percent in rural areas. 2.07 Transition rates from primary to lower secondary and then to upper secondary education decreased between 1980/1981 and 1988/1989 from about 51 percent to 24 percent and from 39 percent to 26 percent, respectively because of insufficient capacity. Secondary school enrollment in Djibowti- City, which accounts for almost 85 percent of total secondary enrollment, exceeds the physical capacity by about 20 percent. The share of girls in total secondary enrollment is about 35 percent, but only about 23 percent in rural areas. 3. Quality of Education 2.08 The teaching conditions within the education system are good by African standards. However, the output levels do not correspond to these conditions. Success rates on the final examinations at the primary (Certificat d'Etudes Primaires - CEP), lower (Brevet d'Etudes du Premier Cycle - BEPC) and upper secondary (Baccalaureat) levels are low, averaging about 25 percent, 48 percent and 56 percent for the 1984-1989 period. For vocational training within the MEN, the situation is similar with examination pass rates of 46 percent for the Commercial Vocational Training Certificate (Certificat d'Aptitude Professionelle - CAP) and 53 percent for  the Vocational Training Diploma (Brevet d'Enseignement Professionel - BEP) for the same period. 2.09 Several factors are adversely affecting the capacity of the average Djiboutian student to succeed in the education system. They relate to the curricula, languages of instruction, primary teacher training, pedagogical support and supervision. 2.10 Curricula. The Primary education programs are still very similar to those in place before the country's independence. The curricula have not been sufficiently modified to take account of the conditions in the country and of the students and their sociocultural background. In secondary education, the curricula and organization are still those applied in the former metropolis. 2.11 Languages of Instruction. French is the main language of instruction. It is taught at the primary level through a method developed in a West African country and which needs serious review and adaptation in order to be relevant for Djibouti. Arabic is taught as a second language in the last two years of primary school; iti instruction shares the same weaknesses as does French. In secondary education, French is taught with the same objectives and content as in France to students who are unfamiliar with the implicit cultural context and whose proficiency in French falls short of the requisite level. Annex 2.5 providei additional information on the status of languages of instruction. Z.12 Primary Teacher Training. In addition to the limited relevance of the primary school curricula, and methods of language instruction, the quality of primary education is depressed by the fact that one-third of the teachers have not received any professional training. Furthermore, the students at the teacher training college of Djibouti, the education level of which has increased in recent years (from 10 to about 11-12 years), have been following curricula that do not pay sufficient attention neither to the students improved educational level nor to the content of primary education and to teaching practices including for the languages of instruction. 2.13 Pedagogical Support. The Pedagogical Office for Primary Education, created in 1986 under MEN to develop curricula and instructional materials, strengthen in-service training and evaluate educational outcomes, has not been able to achieve its objectives except for some in-service training and instructional materials. Its main weaknesses -- an inadequate mix of skills, absence of nationals staff and poor operating conditions -- are shared by the parallel institution at the next higher level, the Pedagogical Office for Secondary Education also under the MEN. The existing education printshop operates adequately but suffers from lack of space to operate fully. 2.14 Supervision. The country's three primary education inspectors are mainly involved in administering the primary education system, and only 2 of the 11 pedagogical counselors are stationned outside the capital to support rural teachers. With 1 counselor for about 100 teachers and the extreme isolation of many rural schools, pedagogical support is inadequate. In addition, the support the counselors provide is no more than a transmission of pedagogical formula rather than the development of an independent and flexible approach to teaching.  -5- 4. Educational Management 2.15 The MEN capacity for policy analysis and planuing, budgeting and resource management is weak. The Schools Organizatiln Office, which could be considered as an embryonic planning office, is understaffed. The Office of Administration Services, in charge of budgeting tad cost control, lacks the necessary expertise, as does the Office of Personnel, which in addition perceives its functions to be limited to staff records and promotion. 5. Financial Constraints 2.16 Between 1981 and 1987, Government expenditures on education grew in nominal terms at an average rate of 4.7 percent p.a., the same rate as the overall budget. In that period, education accounted for about 12 percent of the Government's recurrent budget, compared with about 18 percent for Sub- Saharan Africa. Since 1987, the growth of the Government's budget has slowed to an average of 3.3 percent and is expected to be about 1 percent p.a. over the next five years. 2.17 In 1988, about Franc Djibouti (PD) 3.7 billion, or 13.9 percent of the Government's recurrent budget, were allocated to education, a figure below the average for french-speaking Sub-Saharan countries. 1/ However, these figures greatly understate the total amount of financing available to education, as they exclude most French assistance, which is roughly eaual to the Government's own education budget. The national development budget for the sector consists mainly of counterpart funding for externally financed projects. 2.18 Compared with other African countries, the unit costs for education are high, amounting in 198511986 to US$372, US$576 and US$983 equivalent for primary, secondary and vocational education, respectively, and to US$4,103 for teacher training. 2.19 Teachers' salaries make up a large percentage of the primary and seccadary education budgets (in 1985, about 88 percent and 93 percent, respectively). These salaries are high compared with those prevailing in Sub-Saharan Africa (for a primary teacher, about US$6,975 in Djibouti vs. US$2,255 for the region). These high salaries are explained by the relatively high starting point and rapid progression for primary school (instituteurs) and other teachers. Teachers housing benefits. While civil servants benefits comprise housing, the Ministry of Education has started replacing provision of housing (monthly renting costs averaging FD 100- 120,000) by a monthly indemnity of PD 30,000 for single and 40,000 for married teachers. Monthly pre-salaries for trainee teachers came to PD 80,000, about six times the official minimum wage. As to support grants for secondary students, in 1987/1988 its total budget amounted to PD 80 million and for fellowships in secondary and higher education abroad to FD 184 million. No differentiating criteria such as economic need, academic performance or field of study are used in awarding the support grants and fellowships. These policies were perhaps appropriate at the time of independence, when the country urgently needed to develop its human resource 1, The 1983 average for French-speaking Sub-Saharan countries was about 26 percent. (World Bank, 'Education in Sub-Saharan Africa: Policies for Adjustment Revitalization and Expansion' pp. 144).  -6- base, but they are no longer relevant in view of the effective demand for education and the financial constraints. 2.20 In view of the limited prospects for medium-term financing for the sector and the high unit costs, Djibouti started to reexamine certain fundamental parameters of the education sector, beginning with the level of recruitment of teachers and their salaries (as part of a general review of civil service status) and fellowship policies, in order to be able to expand and improve education services. C. THE GOVERNMENT'S SECTORAL STRATEGY AND INVESTMENT PROGRAM 2.21 The Government, fully aware of the sector's importance for the economic development of Djibouti has designed a medium-term education strategy addressing the issues discussed above and whose wain elements and sub-elements are as follows: (a) Coordination of vocational training with the labor market -- (i) improvement of decision-making in vocational training through more and better information; (ii) Creation of a vocational training coordinating body; (b) Access to education -- (i) Increase in primary education enrollments by 4,500 and lower secondary by 800; (ii) maintenance of the current level of general upper secondarl enrollments; (iii) creation of an upper secondary industrial and commercial Lyc4e (750 students); (iv) phasing out of the vocational lower secondary school (Lycee d'Enseignement Professionnel -LEP-) of MEN, and preparation of commensurate expansion of u-noer secondary schooling through the rehabilitation and conversion of facilities; and (v) increases in hiaher education enrollments abroad beyond the present level through private and bilateral financing. Cc) Quality of education -- (i) Curriculum adaptations with a view to acL.ieving more relevant primary and lower secondary education and better franch language teaching; (ii) strengthening of supervisory capacity in rural areas; (iii) improving of pre- and in-service training for primary and lower secondary teachers, primary inspectors and pedagogical counselors; and (iii) development of an education research, information and production center with an evaluation capacity, and. (d) Costs and financina -- (i) replacement of current teacher trainees pre-salary by an indemnity at least one third less than the pre- salary; (ii) introduction of the new civil service statute devised for the entire civil service, including teachers, and of the new category of lesser paid but qualified primary teachers (instituteurs adjoints); (iii) cancellation for upper general secondary, of new fellowships abroad; (iv) reduction of the number of support grants for secondary education and development of awarding criteria; (iv) development of criteria for awarding higher education fellowships and freezing of related budget; and (v) strengthening of education management. 2.22 To pursue this strategy, the Government has developed a Five-Year Education Investment Program for the period 1990-1994, the result of intensive analysis and discussions aimed at reconciliating needs and means. Approval of the investment program by the Minister's Council on March 9, 1989 has been the latest step in this process and the Government and IDA have agreed upon the five-year program. Its main features are the strategy described above, the investment program and the estimation of its  -7- incremental recurrent costs provided in Table 2.1. The level of foreign financing, and the budgetary allocation by the Government needed to meet the incremental recurrent coste, are provided in paras. 2.23 and 2.24. TABLE 2.1: Education Investmnt P rora - Evolution of the IncgJmntal Recurrent Cost. (In thousands of FD) Progrs 1 2 4 a Primary School V 42,606 5,012 127,516 127,510 Second IDA Proj et 40,352 89,345 167,OP4 251,834 297,671 Loer Secondary School !/ 29,622 59,245 89,700 Upper Secondary Industrial a Comercil Lyc&e / Staff Training Centr ev 11,220 11,220 11,220 11,220 Rehabi I I tation/Transforation LEP!/ 40,8398 2.23 The financing of the program components, except for the rehabilitation/transformation of the existing vocational secondary schools {Lycde d'Enseignement Profeesionel - LEP) which is still at an early stage, is divided among the following donors: IDA, through the ongoing First Education Project. US$1.8 million equivalent and through the proposed project, US$5.8 million equivalent, vith co-financing by the European Development Fund (FED), US$0.4 million equivalent, and the United Nations Development Program. US$0.4 million equivalent (para. 4.09): the Government of Kuwait, about US$5.0 million equivalent; the African Development Fund (A