Document of The World Bank FOR OFFICIAL USE ONLY Report No. 7633-CHA ST.^.FF APPRAISAL REPORT CHINA TEXTBOOK DEVELOPMENT PROJECT MARCH 14, 1989 Population, Human Resources, Urban and Water Supply Division Country Department III Asia Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their oMcial duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS US$1.00 - Yuan (Y) 3.7 Y 1.00 - US$0.27 (February 1989) US$1.00 SDR 0.73 SDR 1.00 US$ 1.37 FISCAL YEAR January 1 - December 31 ACADEMIC YEAR September 1 - August 31 ABBREVIATIONS CTMRI - Curriculum and Teaching Materials Research Institute FILO - Foreign Investment and Loan Office GSM - Grams per square meter (measure of paper weight) HEPH - Higher Education Publishing House NRCPSST - National Review Committee for Primary and Secondary School Textbooks PEP - People's Education Press PIA - Project Implementation Agreement PIO - Project Implementation Office SEdC - State Education Commission XHS - Xinhua Shudian (Book Distribution Agency) GLOSSARY Province - China is divided into 23 provinces, 5 autonomous regions and three municipalities, Beijing, Shanghai, and Tianjin. In the report, the term "province" refers to provinces, autonomous regions and municipalities. FOR OFFICIAL USE ONLY -CHINA TEXTBOOK DEVELOPMENT PROJECT Table of Contents Page No. BASIC DATA ............................................... v CREDIT AND PROJECT SUMMARY .............................. vi-vii I. THE EDUCATION SECT.. 1 A. Overview of Educe tion.1 B. Public Expenditure on Education. 2 C. Government Strategy and Objectives .................... 2 D. Bank Group Strategy in Education. 2 E. Rationale for Bank Group Involvement. 3 F. Experience with Past Lending. 4 II. THE TEXTBOOK SUBSECT.. 4 A. Current Policy Framework. 4 B. Present Status. 5 C. The Government's Upgrading Program .5 D. Iristitutional Framework. 7 E. Issues. 8 Ensuring Effective Classroom Use of New Materials 9 Limited Choice of Textbooks. 9 Maintaining Textbook Affordability .10 III. THE PROJECT .10 A. Project Objectives and Strategy . .10 B. Project Components ..10 PEP, CTMRI, and SEdC ....................... 11 HEPH and PEP Printing Factories, Beijing Printing Institute . . 13 Provincial Printing Factories . . 15 University Publishing Houses and Printing Factories ........................................ 17 Training and Technical Assistance . . 18 This report is based on the findings of a preappraisal mission to China in October 1987 comprising B.W. Searle (Senior General Educator and mission leader), K. Ogawa (Economist), V. Demetriou (Senior Architect), C. Currin (Educator, consultant), J. L. Wang (Educator, consultant) and P. Cohen (Print and Production Specialist, consultant) and an appraisal mission to China in March 1988, comprising B. W. Searle, I. H. Cheng (Financial Analyst) and P. Cohen. L 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. K ~~~~~~~~~~~- ii - Page No. IV. PROJECT COSTS AND FINANCING ............................... 19 A. Costs ................................................. 19 Summary of Costs ................................... 19 Cost Estimates ..................................... 19 Foreign Exchange Costs ............................. 22 B. Financing ............................................. 22 ,Investment Costs ................................... 22 C. Cost Recovery and Financial Impact .................... 23 Textbook Pricing ................................... 23 Financial Impact and Affordability ................. 25 V. ORGANIZATION AND IMPLEMENTATION ........................... 26 A. Project Management .................................... 26 B. Project Monitoring .................................... 26 Expenditures ......................... ............. 26 Project Activities and Performance Indicators ...... 27 C. Implementation ........................................ 27 Status of Project Preparation ...................... 27 Project Implementation Schedule .................... 28 D. Procurement ........................................... 28 Equipment .......................................... 28 Books and Educational Materials .................... 28 Technical Assistance and Training .................. 28 Bank Review ........................................ 30 E. Disbursements ......................................... 30 Documentation of Expenditures ...................... 31 Special Accounts ................................... 31 F. Accounts and Audits ................................... 31 VI. PROJECT BENEFITS AND RISKS ................................ 32 A. Benefits .............................................. 32 B. Risks ................................................. 33 VII. AGREEMENI-S TO BE REACHED AND RECOMMENDATION . . 33 - iii - TABLES IN T!EXT 3.1: Plan for Audio-Visual Production: 1987-1992 ............... 12 3.2: Projected Expansion of Higher Education Textbook Output: 1986-1995. ...................,.......... 14 3.3: Projected Expansion of PEP Factory Output: 1986-2000 ...... 15 3.4: Projected Expansion of Output from University Presses: 1986-1992 ............................................... 18 4.1: Summary of Project Costs by Component ...................... 20 4.2: Summary of Project Costs by Category of Expenditure ........ 21 4.3: Financing Plan ............................................. 23 4.4: Annual Per Capita Expenditure on Books (1986) .............. 25 5.1: Procurement Arrangements ................................... 29 5.2: Disbursement Forecast ...................................... 31 ANNEXES Annex 1: PEP and Provincial Factory Information Table 1: PEP Plan for Printing Teaching Materials and Books: 1990-2000 Table 2: General Education: Printing Output and Financing Table 3: General Education: Allocation of Equipment Table 4: Provincial Factories Included in Project Table 5: Timetable for Introduction of New Textbooks Annex 2: Higher Education Information Table 1: Higher Education: Printing Equipment Financing Table 2: Higher Education: Allocation of Equipment Table 3: Publishing Houses Associated with Project Institutions Annex 3: Project Costs Table 1: Annual Distribution of Expenditures in US$ Pillion Table 2: Annual Distribution of Expenditures in RMB Y million Annex 4: Project Monitoring Indicators Annex 5: Project Related Training Table 1: General Education: Local Table 2: General Education: Foreign Table 3: Higher Education: Local Table 4: Higher Education: Foreign Annex 6: Terms of Reference for TA Management Agency - iv - Annex 7: Project Implementation Schedule Annex 8: Recommendations from Sector Work Annex 9: Selected Documents and Data in the Project File CARTS Chart 1: Organization of SEdC Chart 2: Organization of PEP/CTMRI Chart 3: Organization of HEPH Chart 4: Project Management Organization Chart Map IBRD No. 20981 CHIN TEXTBOOK DEVELOPMENT PROJECT Basic Data General Population 1.06 billion (1987) Adult literacy rate 80% (1987) Average per capita income /a US$310 (1986) Education (1987) Lower Upper Post Size of Sector Primay secondary secondary secondary I Grades 1-5 or 6 1-3 or 4 1-3 1-3 or 4 Enrollmen. (million) 128 42 13 4 Gross enrollment ratio (%) 121 60 16 4 Textbook Subsector (1986) TIne of schooling No. of titles No. of copies grinted (million) Primary and lower secondary 351 2,259 Upper secondary 94 9 Teacher training 113 9 Pre-schools 140 38 Polytechnics 1,241 52 Universities and colleges 3,501 62 Adult education 360 18 Totgal 5.8fi0 2.447 Expenditure on Educatijn (1986) Go'-t educ. expenditure ar % of GNP: 2.5% Gov't educ. expenditure as % of total government expenditure: 11.2% Gov't educ. capital exp. as % of total gov't capital exp.: 4.3% Distribution of public recurrent exp. on education: Primary 33.0% Secondary 46.0% Higher 21.0% /A World Bank Atlas 1987. CHINA TEXTBOOK DEVELOPMENT PROJECT Credit ar.d Prolect Summarv Borrower: People's Republic of China Amount: SDR 41.8 million (US$57 million equivalent). Terms: Credit: Standard with 35 years maturity Onlending Terms: The Government would onlend about SDR 35 million to provinces at an interest rate of 2.5%, repayable over 15 years including a 5-year grace period. The Foreign exchange risk would be borne by the Ministry of Finance. Proiect Description: The project would support the Government's textbook up- gradir.g program introduced in 1987. It has three main objectives: (a) to improve the educational effectiveness and quality of textbooks at all levels of schooling; (b) to increase the variety of published textbooks available; and (c) to improve the efficiency of textbook manufacture. The project would finance civil works, equipment and technical assistance for five components. The first component would assist the government to update the content and improve the pedagogical effectiveness of the new primary and secondary textbooks. The second, third, and fourth components would assist key central agencies, 22 provinces, and 21 university presses, respectively, to expand typesetting and printing capacity to meet growing demand and to improve the production quality of published textbooks. The fifth component would support an integrated training program to up-grade the publishing and printing skills for staff from the central agencies, and university and provincial educational publishing houses being supported by the project. The proposed project is consistent with the Government's efforts to improve the quality and volume of textbooks during the 7th Five-Year Plan and subsequently. The major risk is that full advantage will not be taken of the improved equipment and processes because of failure to adopt and/or implement a satisfactory training and technical assistance program. This risk would be mitigated through contracting management of the technical assistance program to an experienced agency satisfactory to the Association. - ii - Estimated Cost: Local Foreig Total - (US$ million) - PEP/CMTRI/SEDC 0.53 1.21 1.73 HEPM/PEP printing factories/BPI 5.68 7.73 13.41 Provincial printing factories 29.69 30.13 59.82 University publishing and printing 9.37 15.94 25.31 Training 0.62 0.71 1.33 Specialist Services 0.20 0.64 0.84 Total Base Cost 46.09 56.36 102.44 Physical contingencies 2.30 2.82 5.12 Price contingencies 2.57 4.42 6.99 Total Proiect Cost 50.96 63.60 114.55 Financing Plan: IDA - 57.00 57.00 Government 50.96 6.60 57.55 Total 50.96 63.60 114.55 Estimated Disbursement: IDA FY 1989 1990 1991 1992 1993 1994 1995 ----------------- (US$ million) -------------------------- Annual 0.3 8.8 18.3 14.2 12.3 2.7 0.4 Cumulative 0.3 9.1 27.4 41.6 53.9 56.6 57.0 Econcedic Rate of Return: Not Applicable Note: Figures may not total exactly due to rounding. La Project-financed goods are exempt from import duties and ta-tes. CHINA TEXTBOOK DEVELOPMENT PROJECT I. THE EDUCATION SECTOR A. Overview of Education 1.1 China has made significant progress in education during '.he past several decades. From 1949 to 1987, primary, secondary and tertiary level enrollments have increased froim 24.4 million, 1.27 million and 117,000, to 128.4 million, 54.0 million and 3.9 million respectively. In 1987, the net!/ enrollment ratio of primary school-age children was 97%; for children of lower secondary school age, the ratio was 45%. 1.2 In May 1985 the Government announced the "Decision on Reform of the Education Structure," the most significant reform effort in education since 1949. The Decision emphasized the importance of education as the key to national social, economic and cultural development and established basic policies in three areas: (a) basic education (primary and lower secondary) is to become universal; (b) vocational and technical education are to be expanded to comprise 50% of upper secondary school enrollment; and (c) higher education is to be improved and restructured, and enrollments will continue to expand while tertiary institutions will be given greater autonomy. In addition, the quality of education is to be improved at all levels. At about the same time, the State Education Commission (SEdC) was formed to replace the former Ministry of Education and provide a more comprehensive structure for policy planning and implementation. 1.3 In 1986 a Compulsory Education Law was enacted to promote the universalization of basic education and to provide guidelines for its implementation. Nine-year compulsory education is to be achieved in stages, giving discretionary power for implementation to localities within the following framework: (a) in cities and coastal areas compulsory education would be attained by 1990; (b) in towns and villages with a medium level of development by 1995; and (c) in the more backward areas, at a rate commensurate with the economic development of each area. The Law also allows local governments to levy an education tax whose use would be earmarked for ; basic education. 1.4 The basic policies announced in 1985 (para. 1.2) have implications for the textbook subsector through both quality improvement and enrollment expansion. Strains in the textbook publication and provision system will come from increasing the number of titles available, from diversifying the types of learning materials provided and from efforts to improve textbook quality, as well as from a modest increase in the number of textbooks required. At the primary level, little change in the number of basic texts is expected. Because of China's highly successful population policy, total enrollment in ~/ The number of school age children enrolled divided by the total school age populAtion, expressed as a percentage. primary education will decline between now and 1990 and then increase slightly by 2000. The number of lower secondary textbooks required will increase slightly despite the declining population as he policy of compulsory basic (nine-year) education is implemented. Higher education will experience a substantial increase in the number of textbooks required, but because the number of students is relatively small, the increase will remain a small percentage of overall requirements. B. Public Expenditure on Education 1.5 From 1981 to 1987 China significantly increased public expenditures on education. Recurrent and capital expenditure increased by 13% and 15% per year, respectively. During the same period, the share of the total education expenditure (recurrent and capital) as a percent of total national budget (including expenditures by the central, provincial, municipal and prefectural governments) also increased significantly from 9.3% to 11.2%. Despite such national efforts, financial support for education at all levels comprises 3.1% of GNP, which is still smaller thatu the average for other developing countries (about 4-5%) and developed countries (6% or higher). Central government expenditure on education totaled Y 27.4 billion in 1987. Of the recurrent expenditure, 33% was for primary education, 46% for secondary, and 21% for higher education. C. Government Strategy and Objectives 1.6 The Government's strategy as promulgated in the 1985 statement on reform, recognized that the implementation of the broad policy of economic reform and modernization required the training of large numbers of skilLed workers, and that there was a need to increase "party awareness of the importance of education so as to gear it to the needs of modernization, the world and the future. "2/ The statement argued that education had become 'divorced .... from the needs of economic and social growth" and that text- books were 'outdated, teaching methods stereotyped and practice sessions ignored." Economic modernization, the statement declared, requires people who 'constantly pursue new knowledge and cultivate the scientific spirit of seeking truth from facts, thinking independently and daring to make innovations.' These observations provide the impetus for the curriculum revision, modernizing of textbook content and pedagogy, and upgrading of the physical quality of textbooks that are the objects of the proposed project. D. Bank Group Strategy in Education 1.7 Bank operations in China concentrated initially on alleviating manpover shortages through expansion and improvements in higher and technical education, reflecting the urgency of compensating for the disruptions in these areas during the Cultural Revolution (1966-76). Support was extended to projects assisting regular four-year universities as well as other forms of 2/ This and followir.g quotations are from the Foreign Languages Press translations of the "Decision of the Central Committee of the Communist Party of China on the Reform of the Educational Structure", Nay 27, 1985. higher education such as polytechnics (two or three year vocational universities) and television universities. Projects supported enrollment expansion ar.n improved quality of instruction, and promoted greater management efficiency. After China announced its educational reform policy in 1985, the Bank and the Government agreed to a broader strategy supporting the three major aims of the policy (see para. 1.2). The Bank has conducted sector work on education in Gansu Province to analyze the obstacles to universal basic education in a poor rural province, on technical/vocational education, and on textbook development. All three sector studies have led to lending operations. The Teacher Training Project (Credit 1908-CHA), which was approved in FY88, will support the policy of universal basic education by improving the training of lower secondary teachers. The Bank will continue to assist the higher education subsector through a proposed project in postgraduate education which would strengthen graduate programs and research, particularly in science and technology. To further understanding of the role of provinces in an era of decentralization (both fiscal and educational), the Bank is programming a study on planning and financing education at the provincial level. In light of the expansion of the tertiary sector and increased mobility across jobs, a study of vocational education and training for the services sector is also planned. E. Rationale for Bank Group Involvement 1.8 Upgrading textbooks is an important aspect of the overall strategy to strengthen education's contribution to reform and development in China. Bank participation would assist China to benefit from the experience of the rest of the world in modernizing the content, the design and the technology for manufacturing textbooks, by drawing on the Bank's experience with numerous projects in textbook pro'u"tion in other cruntries as well as the findings of the sector work. The project complements che Bank's other operations in China, for example, the Teacher Training Project, which will upgrade qualifications of secondary teachers, and the Second University Project (Credit 1551-CHA), which in part addresses curriculum reform. 1.9 The project builds on sector work, which is reported in China: Textbook Development (Report No. 6735-CHA). (The recommendations of the sector work are summarized in Annex 8.) The Government has accepted, and is implementing under the project, major recommendations of the Report including: (a) adoption of more flexible textbook pricing arrangements (para. 4.7); (b) elaboration of a plan to subsidize textbook purchases by poor families when prices rise (para. 4.11); (c) a slower and more realistic pace for implementing the new program (paras. 2.4-2.5); (d) strengthening programs for field resting textbooks (paras. 2.5, 2.12); (e) divers.fying channels for distribution of higher education textbooks (para. 3.8); and (f) undertaking a substantial program of training to improve the human resource base required for upgrading the educational publishing field in China (para. 3.19). 1.10 In addition to undertaking an analysis of the sector, which has led to the adoption of the above mentioned recommendations, Bank work has assisted in: (a) clarifying issues of textbook pricing and encouraging dialogue, in advance of the required decision making, between the various authorities who must collaborate on making pricing decisions; (b) improving the efficiency of textbook publishing nd printing by redirecting choices of equipment and advising on the sequencing of equipment acquisition (para. 5.8); (c) promoting agreements to share equipment among installations (para. 3.16); (d) building consensus on the need for extensive training for several categories of staff, (paras. 3.17-3.19); and (e) stimulating the development of a new type of paper that is suitable for offset printing but less expensive to produce than the present standard of offset paper. F. Experience with Past Lendin& 1.11 Eight Bank Group financed projects in China have supported education under three ministries. Four are managed by SEdC. The first project, the University Development Project (Loan 2021/Credit 1167-CHA, US$200 million), assisted 28 major universities under SEdC in the fields of science and engineering. It was approved in 1981 and completed in 1986. The Project Completion Report and Audit (December 30, 1988) records the successful implementation of the project and highlights :he importance of technical assistance and its external management as fa .tors contributing to success. The second education project, approved in 1983, is strengthening technical education through the development of polytechnics and television universities (Credit 1411-CHA, US$85 million). The Second University Development Project (Credit 1551-CHA, US$145 million) is contributing to improvements in education in engineering, economics and finance in about 35 universities under various line ministries. In 1986, the Provincial Universities Project (Credit 1671- CHA, US$120 million) was approved to assist provincial universities and the SEdC in expanding enrollment and improving the quality and management of provincial higher education programs. Special emphasis is being given to teacher education programs in normal (teacher training) universities. Under the Ministry of Agriculture, Animal Husbandry and Fisheries, two loan/credits were extended, in 1982 and 1984, for the development of professional agricultural manpower (Credit 1297-CHA, Loan 2444/Credit 1500-CHA, total US$144 million). A Rural Health and Medical Education Project approved in 1984 (Credit 1472-CHA, US$85 million) included about $43 million for support of 13 medical universities under the Ministry of Public Health. The Gansu Provincial Development Project, (Loan 2812/Credit 1793-CHA), which was signed in 1987, has an Education Component (US$20 million) that will assist the province to meet tne objectives of the educational reform. It is also the first operation specifically focusing on basic education. Implementation of all projects .as been satisfactory. Disbursements are equal to or ahead of appraisal estimates. Policy initiatives are being implemented as agreed and enrollment and other target indicators measuring quantitative, qualitative and efficiency improvements in on-going projects are generally being achieved as scheduled although longer-term project impact has yet to be assessed. II. THE TEXTBOOK SUBSECTOR3/ A. Current Policy Framework 2.1 China's textbook production and distribution system delivers 2.6 billion textbooks to over 200 million students each year. This achievement is the result of several key textbook provision policies: (a) All students at all levels must have their own new copies of all required textbooks. Typically, schools and universities purchase texts and sell them to the students at the purchase price. (b) Textbooks of most primary and secondary subjects cover course material for only one semester. Thus, two books per year are required for most subjects. (c) The sales prices of textbooks are, as a matter of general policy, set so as to fully recapture the production cost, and provide minimal returns (5%) to publishers while remaining affordable to parents and students. (') Textbook production receives certain advantageous treatment such as subsidized paper prices, and priority in allocatior of paper and printing. (e) Printing and distribution of textbooks are given priority over other printed materials, to ensure that books arrive in schools by the beginning of each semester. B. Present Status 2.2 Although the number of textbooks is adequate, Chinese educators recognize deficiencies in content, production quality and diversity. Current primary and secondary textbooks were prepared in the late 1970s and are considered inappropriate for the new emphasis on science and technology. Most are printed on 52 gsm letterpress paper, which is similar in quality to newsprint, and are covered with paper scarcely heavier than the inside pages. Under classroom conditions, such books deteriorate quickly. Page siz- is small, margins are narrow, pages are crowded and illustrations reproduce indistinctly. Color, which has beer. found to enhance the educational effectiveness of textbooks, particularly for young children, is not used. Only about 20-30% of thz textbooks for higher education are published books; the remainder are unedited mimeographed manuscripts prepared at each institution. At all levels, there is rarely more than one official textbook for each subject and grade, a degree of uniformity that is inappropriate in a country as large and diverse as China. 3/ A more comprehensive discussion of the subsector can be found in the Sector Report, No. 6735-CHA. Annex 8 reproduces the recommendations. - 6 - C. The Government's Upgrading Program 2.3 In order to address the above problems (para 2.2), the government has designed a textbook upgrading program with the following three main objectives: (a) improve the education effectiveness and quality of textbooks aL all levels of schooling; (b) increase the variety of published textbooks; and (c) improve the efficiency of textbook manufacture. 2.4 SEdC has adopted specific plans and targets for the upgrading of the textbook subsector. (a) Primary education. Beginnir,_ 'n 1991 with grade 1, a new set of textbooks with updated content, modern pedagogy, improved design and layout and appropriate use of color4/ would be introduced nation wide, one grade each year. The new teaching materials will be based on the following general principles: (a) materials must be appropriate for schools and suitable for the needs of the students; (b) they must take into account social, economic and cultural differences between regions; (c) they must be suitable for use by less well qualified teachers in remote rural areas; and (d) they must cate- for the full development of students, not only for their intellectual development. The new curriculum is designed to develop citizens who are able to think independently using a scientific approach, as called for by the educational reform decision. The production standards of these books would be gradually upgraded to International Standard size (148 x 210 mm). Black and white books would continue to be printed on 52 gsm paper; two color books would be printed on 60 gsm paper; and four color books on 70 gsm offset quality paper. By 1996, all textbooks for grades 1-3 would be printed in either two or four colors (Annex 1, Table 5). To reduce reliance on a single set of textbooks, a greater variety of supporting learning materials such as audio and videocassettes, wall charts and supplementary readers would also be produced. (b) Secondary education. Starting with lower secondary grade 1 in 1991, new textbooks with improved content and pedagogy would be introduced. Printing of these books would gradually be upgraded to International Standard size on paper of increased weight and quality with more pages of colored illustrations. As for primary education, ddditional non-text teaching materials would be developed to support curriculum objectives. 4/ Research in the United States and elsewhere has demonstrated that use of color in textbooks, particularly for lower grades, increases student attention levels and improves learning of basic concepts. -7- (c) Higler education. By 1995, 50% of textbooks for universities and colleges would be published (not mimeographed) and all publiihed textbooks would be of International Standard size, printed by offset v tho on 60 gsm paper. The number of published texts would be increased by encouraging authorship and by increasing typesetting capacity to remove a major bottleneck to publication. The use of published texts at institutions other than the originating university would be significantly increased by improving the distribution system. All unpublished textbooks for 96 key universities would be produced by small offset litho rather than by mimeographing. 2.5 The upgrading program described here reflects modifications in the procedures for writing and field testing manuscripts recorAmended by the Sector Report and adopted by the Government. These include: (e.) reducing to more managable proportions the number of schools to be sampled in the field testing program while maintaining adequate sample sizes, thereby making it more cost- effective; (b) reducing substantially the number of primary school textbook titles that will be produced using color; and (e) phasing the introduction of textbooks, to place less strain on the production system. The modified program for producing new manuscripts was thoroughly reviewed during appraisal and was judged feasible. (The detailed manuscript development schedules are reviewed and analyzed in a consultant's report, 'Curriculum Development for Basic Education in Chinaw by Charles Currin, available in project files.) The Bank has also reviewed, and is satisfied with, the principles underlying the choices of curriculum to be reflected in the textbooks and the thrust of the new teaching strategies being adopted (para. 2.4). Manuscript development work is knowledge and labor intensive, but not capital intensive. Furthermore, in the judgement of the appraisal mission, the work is well in hand. The proposed project will provide some assistance to this work, through provision of computers for word processing/text editing, reference books/ teaching materials and technical assistance. However, the bulk of the project will assist the Government in the technical aspect of the textbook upgrading program where its need is greatest. D. Institutional Framework 2.6 Overall responsibility for textbook provision rests with the SEdC. However, a number of entities within the SEdC and several other agencies and ministries participate in various stages of the publishing process. Within the SEdC, primary and secondary school textboolk manuscripts are prepared by i the People's Education Press (PEP). The National Review Committee for Primary and Secondary School Textbooks (NRCPSST) is responsible for manuscript evaluation and approval. The Curriculum and Teaching Materials Research Institute (CTMRI) shares the same staff as PEP and is responsible for research and development of teaching programs, syllabi and teaching methodologies used in the textbooks published by PEP. 2.7 At the higher education level, the SEdC's Office of Teaching Materials, Library and Information Management is responsible for overseeing textbook publishing, recommending pricing and subsidy policies and administering the SEdC-controlled university presses. Higher education manuscript preparation is more decentralized than that for primary and secondary education. The Higher Education Publishing House (HEPH) writes and publishes textbooks for core university and college courses while the remaining published manuscripts are written by academic staff of tertiary institutions and are published by university or line ministry presses. Remaining textbooks (about 70% to 80%) are mimeographed by individual campuses for their own use. The Center for the Exchange of Mimeographed Teaching Materials (within the HEPH) serves as a repository for unpublished manuscripts of good quality which are recommended for use by other universities. The SEdC operates Imported Teaching Materials Centers which are important resource centers for authors and editors of higher education texts and also a Book Import and Export Company. 2.8 The China National Information and Publishing Administration plays a major role through agencies under its jurisdiction, including the China Printing Corporation, the China Printing Materials Corporation and Xinhua Shudian (XHS), the state book wholesaling agency. Other ministries control allocation of raw materials and production capacity, subsidies and tax arrangements. 2.9 Xinhua Shudian (XHS) is responsible for the distribution cf text- books and other books. For higher education, XHS outlets in universities twice a year estimate their book requirements and pass them on to six regional XHS distribution centers which in turn pass them on to the appropriate publishers. For primary and secondary textbooks similar arrangements apply, but print runs are calculated and implemented at the provincial level in close association with the provincial education commissions and publishing bureaus. The provincial commissions/bureaus purchase printing masters from the PEP and these are supplied to the local printers. When the books are ready, printers deliver them to XHS which handles distribution of all textbooks. 2.10 The provincial arrangements mirror the central structures. Allocation of the necessary typesetting, printing, binding and paper resources to meet the province's requirements is based on agreements reached among provincial a&encies that are similar to the national ones, including provincial education bureaus, publishing bureaus and departments of finance. E. Issues 2.11 The Government's plan (para. 2.4) to upgrade textbooks is ambitious, but feasible. In carrying out the program, the Government faces three major issues: (a) how to ensure that new content and instructional methodologies being incorporated in the 1990s textbooks are actually taught and used effectively in classrooms; (b) how to provide a greater choice of textbooks at all levels, so that specific needs can more effectively be met; and (c) how to keep textbooks affordable while improving production quality. 2.12 Ensuring Effective Classroom Use of New Materials. SEdC is under- taking a significant reform of the syllabus and curriculum for primary and secondary schools. In keeping with the principles of the educational reform, the new curriculum will: (a) emphasize both contemporary content and modern teaching methods; (b) emphasize the application of knowledge to the local environment; (c) provide training for work, in recognition that secondary -9- education will be terminal for the vast majority of students; and (d) develop thinking skills. These objectives represent a significant departure from past classroom practices in China. Special care will have to be taken to ensure that the new materials are comprehensible to students and acceptable to teachers, and thRc teachers are properly trained in their use, at both preservice and inservice levels. 2.13 In China, the numbers of full-time teachers involved is very large: about 5.4 million at the primary level, about 2.2 million at the lower secondary level. Preliminary plans for nationwide teacher inservice training are already under discussion. Four main communication channels would be used. (1) Teachers' reference books will be written to accompany each textbook. Such reference books, which are customary in China, are more extensive than teachers' guides familiar in western countries. They provide not only suggestions about pedagogy, but also substantive content that helps deepen the teacher's knowledge about the subject matter being taught. (2) Face-to-face instruction would be provided through Institutes of Education (which are being supported under the recently approved Teacher Training Project, Credit 1908- CHA) by instructors who have been trained through a system of cascading training that originates with the textbook authors in Beijing. (3) Television courses, delivered through the Educational Television network (being supported in part by the Polytechnics/Television University Project, Credit 1411-CHA) will demonstrate the new teaching methodologies appropriate for use with the new textbooks. (4) Pedagogical journals exist for almost every school subject. At present, about 100,000 to 200,000 are distributed. These jourrals present information to teachers on a regular basis and will be used as a supplement to the communication channels already described. Distribution of the journals is expected to increase to provide coverage of village schools, as well as the city and county schools that presently receive them. Although four channels of communication for information about the new textbooks already exist, they must be strengthened and used in a coordinated way. Therefore, the Government will be asked to develop a plan for teacher training, to be submitted to the Association before the new textbooks begin to be distributed (para. 3.3). 2.14 Limited Choice of Textbooks. On the whole, Chinese educators express much dissatisfaction with having so little choice among textbooks. Variety in texts is essential to meet the learning needs of students that differ iT. ability level and prior knowledge, and to reflect China's cultural and geographical diversity. The new curriculum gives greater emphasis to the principle of allowing teachers to choose from a range of materials. 2.15 Providing texts with different difficulty levels and approaches is also crucial for universities and colleges. Students studying in highly selective institutions will be better prepared, and able to handle more sophisticated material, than average students, and the texts for both groups should be appropriately designed. This type of differentiation is not yet widespread in textbooks for higher education in China. Several methods are being adopted to increase authorship, including considering publication as one factor in university promotion decisions. However, a major constraint is the shortage of typesetting and printing facilities. On average, there is a 12-24 month gap between approval of a manuscript and its date of publication. - 10 . 2.16 Maintaining Textbook Affordability. Under the present textbook policy (para. 2.1) students purchase textbooks each semester. Selling prices, which are fixed by Governmental guidelines, are designed to recover the financial cost of book production. The textbook upgrading program would produce textbooks with color illustrations, more durable covers, stronger binding and better quality paper. The cost of manufacturing the fully upgraded primary and secondary textbooks is estimated to be about twice that for the existing textbooks. However, using the present price guidelines, which are based on current printing technology and equipment, the selling prices would be about three times higher than the prices for present texts. Thus, newer, more efficient machinery and the intended use of a new type of domestically produced offset paper would result in significantly lower costs. In light of these changes, new, more flexible arrangements for dettrmining prices need to be adopted. Should income not cover costs, subsidies would have to 'ze provided either centrally or by local authorities. Actions to be taken are described in paras. 4.9 to 4.11. III. THE PROJECT A. Proiect Obiectives and Strategy 3.1 The proposed project would support the government's program to upgrade primary, secondary and tertiary level textbooks (paras. 2.3-2.4). Specifically, the main objectives of the project are to: (a) assist in updating the content and pedagogy of the new set of primary and secondary textbooks; (b) support the development of audiovisual aids and expand the library collection and facilities used for research and manuscript development; (c) introduce modern technology for preparing and editing textbook manuscripts, typesetting, printing and binding; (d) support a coordinated program of equipment purchase in order to develop maximum compatibility between various machines and an appropriate level of standardization; (e) improve publishing and production management, upgrade technical skills of publishers and workers; and (f) improve book distribution mechanisms. B. Project Components 3.2 The project would comprise the following components: (a) provision of equipment, books and teaching materials for CTMRI, PEP and SEdC to improve the educational effectiveness of textbooks; - 11 - (b) provision of equipment and civil works for the HEPH printing factory, the PEP printing factory, and the Beijing Printing Institute; (c) provision of equipment and civil works for printing factories in 22 provinces; (d) provision of equipment and civil works for 21 university publishing houses and printing factories; and (e) provision of training and technical assistance in support of (a) to (d) above to achieve all project objectives. First Component: PEP. CTMRI and SEdC (proposed outlay US$1.7 million excluding contingencies and technical assistance). 3.3 Content and pedagogy. Curriculum development for the new textbooks began in 1986. The new curriculum will be based on the "inquiry-based" method of teaching which has been used in other parts of the world as an alternative to "rote" learning (para. 2.4). Since this method differs substantially from that currently used in most classrooms in China, introduction of the new curriculum would need to be accompanied by a revised preservice teacher training program and by an extensive inservice orientation program using existing infrastructure and involving the development of videotapes for training (para. 2.13; Table 3.1). At negotiations, assurances were obtained that SEdC would furnish to the Association for review, no later than July 1, 1990, a plan for inservice training of primary and secondary school teachers in the use of new textbooks. 3.4 To assist CTMRI in developing an inquiry-based teaching program, the project would finance technical assistance (paras. 3.17-3.19) and equipment of three types: (a) samples of instructional equipment used in other countries; (b) more advanced equipment to allow experimentation by CTMRI curriculum researchers; and (c) general equipment to facilitate the work of the staff. Equipment in categories (a) and (b) would cover mathematics, physics, chemistry, biology, geography and language teaching. Detailed equipment lists are available in project working papers. 3.5 Audio-visual materials. The audio-visual department of PEP/CTMRI is responsible for preparing master audio and tapes, films and slides for both classroom instruction and teacher training. About 6 million audiotapes, primarily for second language learning, have already been sold to schools and individuals. Under the project, the capacity to produce audiotapes would be augmented to allow production of supplementary materials. The full program for development of audiovisual materials is shown in Table 3.1. - 12 - Table 3.1: PLAN FOR AUDIO-VISUAL PRODUCTION: 1987-1992 Number of new master tapes Purpose Mode 1987 1988 1989 1990 1991 1992 Total General teacher Videotapes - 10 20 25 25 25 105 training Inservice for new Videotapes - 6 20 40 50 60 176 curriculum Teaching and cur- Videotapes 10 20 30 3C 30 30 150 riculum research Language teaching Audiotapes 40 40 60 80 80 80 380 Music instruction Audiotapes - 4 6 8 8 8 34 General instruc- Films - 10 20 40 40 40 150 tional support Slides 10 20 25 40 40 40 175 Source: PEP/CTMRI, November 1987. 3.6 Library. The PEP/CTMRI library serves as a resource for all authors and editors of textbooks and as a repository for historically important text- books and other educational materials. While the holdings are substantial (about 400,000 books) most of the resource books are out of date. The last major purchases were made in the late 1970s and early 1980s. The project would finance purchase of more than 25,000 new books to augment the coliection, and also equipment to: (a) modernize book cataloging; (b) develop the capacity to make and read microfiche copies; (c) facilitate review of audio-visual materials from China and abroad; and (d) preserve and safeguard books. 3.7 Manuscript preparation. At present, textbook manuscripts are written by hand and must be recopied as they are revised. The project would finance the purchase of about 60 microcomputers, which would be shared among approximately 250 authors and editors, at the outset primarily for word processing, but potentially for other uses as well. Automating manuscript preparation and revision would significantly increase the efficiency of the process. PEP estimates that 60 microcomputers could handle about 24 million Chinese characters annually, about 1/3 the requirement. (It would not be appropriate to automate immediately the entire output, since not all authors can be expected to adapt rapidly to computer technology.) The microcomputer software procured would be compatible with the laser typesetter software (para. 3.10) to be obtained by the PEP printing factory. In this way, those manuscripts being handled by computer would not need to be retyped during the typesetting process. The project would also finance the purchase of equipment - 13 - to c&iplicate locally developed computer sof-_cre, which would be used in- house, and also for instructional software developed for use in schools. 3.8 Book distribution. Until recently, virtually all distribution of higher education textbooks has been handled by Xinhua Shudian (para. 2.9). To assist the university presses to increase sales by tapping new markets, SEdC has recently established the Joint Publishing and Distribution Service Center for University Publishing Houses which has its main office at Qinghua University. The main task of the Joint Center is to support an alternative distribution system which uses 55 wholesale outlets newly established in 38 cities to service orders from institutions and individuals. Information about new publications is circulated through a monthly newsletter (eight pages in octavo size) published by the Joint center and distributed to universities, colleges and pAytechnics and also to organizations engaged in scientific research and development. About 100,000 copies of the newsletter are p'inted and it is available by subscription for a small fee through the post office. About 90 university and other publishing houses have affiliated with the Joint Center. Each pays a modest fee for each book announcement included in the newsletter. The project would finance a vehicle and equipment to print the newsletter and monitor inventories and sales. Second Component: HEPH and PEP Printing Factories. Beijing Printing Institute (groposed outlay. USS13.4 million excluding contingencies and technical assistance) 3.9 HEPH Drinting factory. HEPH is responsible for the production of texts for core higher education courses in all universities and colleges in China. In 1987, this represented about 20% of higher education published titles and 18% of number of copies. The projected number of 2,000 titles for 1995 would represent about 17% of higher education published texts (Table 3.2). At present HEPH has no printing factory and must make use of more than 100 factories around the country, a circumstance that not only consumes time in locating unused factory capacity, but results in uneven quality of output. In 1986, SEdC agreed to assist HEPH in building a new factory in Tianjin. By 1995, when the first phase is operating to capacity, the new HEPH factory will be able to manufacture about 38% of HEPH's output. (The continued existence of multiple suppliers of printing would be expected to maintain competitive pressure on the HEPH factory, and therefore encourage efficient operation.) The remainder will still have to be contracted to other printing factories. The project would finance equipment for typesetting, plate-making, printing and binding, to be housed in the new factory which will manufacture texts for inservice training, TV university courses, and specialized upper secondary schools as well as core higher education courses. 14 - Table 3.2: PROJECTED EXPANSION OF HIGHER EDUCATION TEXTBOOK OUTPUT: 1986-1995 Actual - 1986 Target - 1995 Total HEPH Total HEPH Number of titles 8,200 1,560 11,700 2,000 (of which new) (3,500) (415) (7,000) (500) Number of copies 187 33 374 68 (million) Typesetting (million Chinese characters) 1,060 120 2,900 150 Paper (thousand reams) 2,200 340 4,400 800 / JA About 300,000 reams by HEPH factory. Source: SEdC, March, 1988. 3.10 PEP Rrinting factory. The PEP factory plays two quite different roles in textbook production. For primary and lower secondary texts the factory typesets the books written by PEP/CTMRI and prepares printing masters which are sold to provincial education or publishing bureaus. At present, virtually all masters are paper matrices (molds of lead type made from papier mache); as the number of offset presses increases, printing masters will increasingly be made from film. The expected shift in output is shown in Table 3.3. For other categories of books for teacher training, nursery schools and adult education; trial versions of textbooks under development; and wall charts and otlher non-text teaching aids, (Annex 1, Table 1) the factory completes the entire production process, from typesetting through printing and binding. Between 1986 and 2000 PEP estimates a three-fold increase in the number of titles and a four-fold increase in the number of copies printed (Table 3.3). The project would finance a laser typesetting system, an electronic color sc4nner, a four-color sheet-fed press, and auxiliary and related equipment tc assist the factory increase its output and improve the efficiency of production. - 15 - Table 3.3: PROJECTED EXPANSION OF PEP FACTORY OUTPUT: 1986-2000 1986 1990 1995 2000 (actual) A. Prenaration of printing masters Number of titles 395 555 585 610 Pages-paper matrices 250,300 326,000 300,000 274,000 Film-in 8-page units - 40,000 70,000 120,000 B. Book production Number of titles 415 689 1,038 1,327 Number of copies (million) 30 74 113 132 Source: SEdC, November 1987 3.11 Beijing PrintinZ Institute. BPI, established in 1978 to provide systematic training in printing skills for the printing industry nationwide, is administered by the China National Information and Publishing Administration, with guidance from SEdC. About 170 teaching staff and 250 others run several programs, including four-year post-secondary courses for printing engineers and technicians, and two-year in-service courses for experienced technicians, providing technical upgrading and training in printing management; and shorter length courses designed for specific audiences. In 1987 about 650 students were enrolled in the long-term programs. This number is expected to reach 1,003 in 1988. In September 1987, 60 technicians from university printing houses began a six-month upgrading program; a second similar course will cater for technicians involved with primary/secondary textbook printing. Both courses will be repeated in subsequent years. The project would finance purchase of a four-color sheet- fed offset printing machine to complement the other modern equipment being acquired by BPI for training purposes. Third Component: Provincial Printing Factories (proposed outlay, US$59.8 million excluding contingencies and technical assistance). 3.12 Factories in every province participate in printing textbooks for primary and secondary schools, using printing masters prepared by PEP - 16 - (Annex 1, Table 2).3/ Within provinces, printing tasks are allocated to factories by provimcial bureaus of education or publishing bureaus (arrangements differ slightly among provinces). Through consultation with provincial authorities, SEdC has selected 33 factories which would comprise 30 printing centers in 22 provinces (Annex 1, Table 4). To participate, a province had to agree to repay credit funds in foreign exchange; to finance necessary civil works; and to provide counterpart funds for purchzse of equipment and other purposes. The selected factories fulfilled the following conditions: (a) In the past, the factory has manufactured at least 25% of the local quota of textbooks, and agrees to continue doing so; (b) At least 97% of its annual production regularly passes quality control standards; (c) The factory has a staff of at least 200, including at least 10 engineers and technicians and good facilities for technical training; (d) The present buildings are well built, little civil works would be needed to accommodate new equipment; preseut equipment is relatively complete and well maintained; and new equipment could be operational witUn three months of delivery; and (e) The factory has a warehouse of at least 500 sq.m; facilities for dispatching shipments; good transport facilities; and is located near a railway station. 3.13 The investment program for each province would be described in a Project Implementation Agreement executed between SEdC and the provincial authorities, which would cover at least the following points: (a) the list of factories to be supported and certification that the identified factories satisfy the criteria noted in para. 3.12; (b) agreement to provide any counterpart funds required for the use and maintenance of equipment; (c) the amount of credit funds allocated to the province under the project; (d) agreement to establish and maintain a Project Implementation Office and to carry out the project activities as agreed; (e) assurance that an adequate quantity of paper of the right quality would be supplied for textbook production; and (f) agreement to give first priority to textbook production in the use of equipment procured under the project. A draft format for the Project Implementation Agreement has been provided to the Association for review and has been found to be acceptable. 5/ At present, provision of textbooks is handled within provinces and there is virtually no interprovincial trade (except for some experimental books and books in minority languages). The procurement of texts locally can be expected to remain in place for some time until the regional economies in China are better integrated. - 17 - 3.14 The project would finance pzinting equipment to assist each province in meeting production targets for the new round of textbooks, beginning in 1991. The allocation of machines is shown in Annex 1, Table 3. Provincial color printing requirements to meet upgraded standards will be met in full (within 3% for all provinces except one, for which the short fall would be 6%) by equipment purchases under the project. By 1995, when the phased introduction of new textbooks is complete, the annual output of primary and secondary textbooks would be about 2.4 billion copies, of which 50% would use color. Fourth Comnent: University Publishing Houses and Printing Factories (proposed outlay, US$25.3 million excluding contingencies and technical assistance) 3.15 University presses account for about 35% of published higher education textbooks in China.6/ SEdC has selected 21 presses (about 25% of the total), which cover major regions of the country and major specializations, to participate in the project (Annex 2, Table 1). Together, in 1986, these presses produced about 60% of the total output of university presses. Although they are the largest and amorg the most productive in China, the presses are beset by shortcormings in skilled staff and in the capacity to manufacture books efficiently. Because of bottlenecks in manufacture and preparation of manuscripts for printing as well as a shortage of edited manuscripts, the textbook requirements for most university courses must be filled through locally produced, unedited mimeographed lecture notes (para. 2.2). The project would assist the 21 identified university presses to overcome these constraints through a program of training and technical assistance (paras. 3.17-3.19) and through the purchase of equipment to expand typesetting and printing capacity. By 1992 output would be increased by 360% for typesetting and 250% for printing (Table 3.4). About 85 million textbooks would be produced annually to ulpgraded specifications, about 63% of the projected output of university presses. 6/ HEPH publishes 20%; the -emaining 45% are published by line ministry presses. - 18 - Table 3.4: PL:OJECTED EXPANSION OF OUTPUT FROM UNIVERSITY PRESSES: 1986-1992 1986 (Actual) 1992 (Targeted) Typesetting Paper Typesetting Paper Titles (mln Chinese ('000 Titles (mln Chinese ('000 (No.) characters) reams) (No.) characters) reams) 81 university presses 2,850 727 1080 4,880 2,000 1,582 (% increase) - - - (71) (175) (41) 21 university presses 837 180 265 3,580 830 933 (% increase) - - - (328) (361) (252) Source: SEdC, March 1988. 3.16 For purposes of allocating equipment, the 21 universities have been grouped on the basis of studies of publishing requirements, carried out by SEdC during project preparation, and an inventory of present equipment. Two university presses would receive only typesetting equipment. Others would receive larger numbers of equipment, as shown in Annex 2, Table 2. Arrangements have been made for project university presses receiving typesetting equipment to service the typesetting needs and, in some cases, printing needs of other nearby university presses. These twinning arrangements are listed in Annex 2, Table 3. Fifth Component: Training and Technical Assistance (proposed outlay, US$2.2 million excluding contingencies) 3.17 In the past, book design and layout considerations have been largely ignored since most school texts conformed to similar traditional patterns. Curriculum and pedagogical research has been undertaken by the writers of school materials who have also acted as editors. To improve the quality of texts (para. 2.4), PEP/CTMRI staff require exposure to new pedagogical approaches and to training in writing and editing. The separation of authorship and editorial functions needs to be seriously considered and this would require training in-country and exposure overseas to modern methods of editorial and publishing management. Specific training in design would also be required, as well as training of managing editcrs in the skills and techniques for working with and managing designers, illustrators and artists and of coordinating their work with that of authors and production staff. 3.18 At the higher education level, the critical factors are the rapid increase in the numbers and sizes of publishing houses, resulting in recruitment of large numbers of new and untrained staff, and the introduction - 19 - of competitive publishing as a means of upgrading quality. This implies the learning and absorption of new skills in such areas as sales and marketing, financial management, and stock control which were previously unknown in higher education publishing in China. Senior publishing managers also need to improve their editorial, design and promotion skills and senior administrative staff to expand their skills in management and organization issues related to publishing. Staff of BP' (para. 3.11) would benefit from exposure to overseas printing training establishments as well as expert advice on the use of modern equipmenm to improve their training programs. 3.19 To address the needs for skill development, the project would support a coordinated program consisting of: (a) study tours; (b) fellowships, comprising mainly secondments to overseas publishing houses; (c) visits to China by foreign experts; (d) training courses in China designed and conducted by foreign experts; (e) training courses in China designed and conducted by local experts; (f) attendance of project personnel at existing courses and training programs on printing, publishing and distribution; and (g) training provided in China or overseas by equipment manufacturers (Annex 5). The first four components would be managed by an experienced agency selected by SEdC and satisfactory to IDA. Draft terms of reference for the management agency are in Annex 6. Secondments would be aimed at senior staff and would be designed to provide both exposure to the methodologies of modern publishing and materials development and practical experience in publishing work. The majority of training and skill upgrading would take place within China (Annex 5, Tables 1 and 3). Foreign experts invited to China would train senior publisher., work with publishing training institutions on the development of relevent course outlines and materials, and provide, on request, consulting services to address specific problems and difficulties. Candidates for publishing training in English speaking countries would be required to have a minimum ELTS score of 6 (or equivalent EPT score). Slightly lower scores would be acceptable for those being placed for technical or printing training. At negotiations, assurances were obtained that by July 1 of each year, an annual training plan would be furnished to the Association for review and training would be carried out in accordance with the agreed program. IV. PROJECT COSTS AND FINANCING A. Costs 4.1 Summary of Costs. The total cost of the project including contingencies is estimated at Y 457.3 million or US$114.6 million equivalent. The estimated costs by project component and category of expenditure are summarized below in Tables 4.1 and 4.2. Detailed costs are presented in Annex 3. 4.2 Cost Estimates. Base costs are expressed in mid-1988 prices. Civil works costs were based on approved building proposals for the various components with acceptable area allocations. Equipment costs were based on detailed lists and estimated unit prices of similar imported or locally available items. Books and instructional materials costs were based on - 20 - Table 4.1: SUMMARY OF PROJECT COSTS /a BY COMPONENT Y million US$ Million S base Local Foreign Total Local Foreign Total foreign cost PEP/CMTRI/SEdC 1.95 4.46 6.42 0.53 1.21 1.73 69.6 1.7 HEPH/PEP printing factories/BPI 21.01 28.60 49.61 5.68 7.73 13.41 57.7 13.1 Provincial printing factories 109.85 111.49 221.33 29.69 30.13 59.82 50.4 58.4 University publishing and printing 34.68 58.97 93.65 9.37 15.94 25.31 63.0 24.7 Training 2.29 2.62 4.91 0.62 0.71 1.33 53.3 1.3 Specialist services 0.74 2.37 3.11 0.20 0.64 0.84 76.2 0.8 Total Base Cost 170.52 208.51 379.04 46.09 56.36 102.44 55.0 100.0 Physical contingencies 8.53 10.43 18.95 2.30 2.82 5.12 55.0 5.0 Price contingencies 21.83 37.50 59.33 2.57 4.42 6.99 63.3 6.8 Total Project Cost 200.88 256.43 457.31 50.96 63.60 114.55 55.5 111.8 /a Project-financed goods are exempt from import duties and taxes. Note: Figures may not total exactly due to rounding. - 21 - Table 4.2: SUMMARY OF PROJECT COSTS /a BY CATEGORY OF EXPENDITURE Y million US$ million X 2 base Local Foreign Total Local Foreign Total foreign cost Civil works 69.96 12.35 82.31 18.91 3.34 22.25 15.0 21.7 Equipment 97.34 189.70 287.04 26.31 51.27 77.58 66.1 75.7 Books and educational materials 0.19 1.48 1.67 0.05 0.40 0.45 88.9 0.4 Training 2.29 2.62 4.91 0.62 0.71 1.33 53.3 1.3 Specialist services 0.74 2.37 3.11 0.20 0.64 0.84 76.2 0.8 Total Base Cost 170.52 208.51 379.04 46.09 56.36 102.44 55.0 100.0 Physical contingencies 8.53 10.43 18.95 2.30 2.82 5.12 55.0 5.0 Price contingencies 21.83 37.50 59.33 2.57 4.42 6.99 63.3 6.8 Total Project Cost 200.88 256.43 457.31 50.96 63.60 114.55 55.5 111.8 /a Project-financed goods are exempt from import duties and taxes. Note: Figures may not total exactly due to rounding. - 22 - similar items recently procured in other education projects in China. Study tours were estimated at US$5000 per four week trip and overseas fellowships at US$6000-8500 per three to six-month term. Domestic seminars for senior staff were estimated at US$400 per person and domestic training at US$600 per staff- year. Costs of foreign specialists were estimated at an average of US$14,500 per staff-month including travel. Project-financed goods are expected to be exempted from import duties and taxes. Physical contingencies expressed in foreign exchange (US$5.2 million) represent 5% of base costs. Price contingencies (US$7.0 million), 6.8% of base costs, were estimated on the basis of the implementation schedule and expected annual price increases as follows: local - 8% for 1988, 7% for 1989 and 6.5% for 1990 and thereafter; foreign - 3% for 1988-1990, and 4% for 1991 and thereafter. Total contingencies are estimated at about 11.8% of base costs when expressed in US$. 4.3 Foreign Exchange Costs. Direct and indirect foreign exchange costs are estimated at about Y 256.4 million (US$63.6 million equivalent). Based on an analysis of expenditures of other projects in China, the foreign exchange component for the major categories of the proposed project was estimated as follows: (a) civil works 15%; (b) equipment 66% (based on an assessment of locally available items and sophisticated items that would need to be imported); (c) books and educational materials 89%; (d) training 53%; and (e) specialist services 76%. B. Financing 4.4 Investment Costs. Of the total investment costs of about US$114.6 million equivalent, 50% will be financed by the proposed credit of US$57 million. Credit funds of about SDR 35 million would be relent to provincial authorities through SEdC at an interest rate of 2.5%, repayable over a period of 15 years, including a five-year grace period. The foreign exchange risk would be borne by MOF. The terms and conditions of relending the proceeds of the Credit to the provinces are satisfactory to Association. Together, the central and provincial governments will finance the remaining US$59.6 million (52% of total investment costs). 4.5 The financing plan and credit allocations by category of expenditure are presented below in Table 4.3. - 23 - Table 4.3: FINANCING PLAN Central and Provincial t Governments IDA Total IDA -------- US$ million ------- Financing Civil works 23.65 - 23.65 - Equipment 32.90 55.06 87.95 62.5 Books & educational materials 0.05 0.44 0.49 88.9 Training 0.72 0.79 1.51 52.3 Specialist services 0.23 0.71 0.95 75.5 Total Project Costs 57.55 57.00 114.55 49.8 C. Cost Recovery and Financial Impact Textbook Pricing 4.6 Present situation. At the present time, the textbook sector is highly controlled. Many of the required raw materials are supplied to the printing houses under the materials allocation system at fixed state prices, and, as a consequence, almost all textbooks are sold at fixed prices determined centrally. Moreover, printing contracts are handled on an administrative basis, and the authorities in each province assign contracts for textbook production to printing houses within their own province. The basic policy governing pricing is that: (a) all development and manufacturing costs should be recovered; and (b) printers and publishers should make a small profit (about 5%). Prices are fixed centrally with these goals in mind, and a fixed distribution margin of 30% is included in the selling price. Recently, it has not been possible to meet condition (a) fully and subsidies have been necessary. Nationally these amounted in 1987 to about 25 million yuan (US$6.8 million) for primary and secondary and about 15 million yuan (US$4.1 million) for higher education textbooks. It should be noted that at the present time these subsidies are provided to the publishers to cover their losses, rather than to the users. 4.7 Future plans. The new typesetting and printing equipment, combined with new production standards, to be introduced beginning in 1991, will change the costs of manufacturing books.7/ Theref-re. it will be necessary to adjust 7/ The manufacturing cost of present and upgraded textbooks is analyzed in the sector report (paras. 4.15-4.29). Based on input prices prevailing in November 1986, the unit production cost of upgraded primary textbooks printed in 4-color using 70 gsm paper and in international standard size (comprising about 25% of total) is projected to be about 2.3 times the present level (i.e. black and white using 52 gsm paper). Increase in unit production cost of the remaining upgraded primary and secondary textbooks - 24 - prices of primary and secondary textbooks (para. 2.16) to avoid losses. To respond to the new situation, and consistent with the economic reform program, the government intends to reform the way in which the prices for textbooks are determined and plans to phase out centrally determined, fixed prices. Tki policy of recovering costs and assuring a small profit would remain, and the publishing houses would be free to agree with provincial authorities on the prices for their products that are necessary to achieve these aims within broad limits established by SEdC. At the same time, the Government would in the long run be phasing out the plan allocation of materials for the sector, and the publishing houses would be expected to procure their own materials in the market. Therefore, to ensure that textbook prices are in line with cost, the government would monitor the situation across provinces, and be in a position to advise provincial authorities of the reasonableness of the provincial printing houses' requests for price changes. SEdC would monitor not only book prices and publishers' profit margins, but also the costs of production to encourage publishers and printers to be efficient. The objective would be that different prices would mainly reflect the different costs of inputs and the different manufacturing technologies, not the different levels of efficiency experienced in different provinces. 4.8 In addition, it is expected that arrangements with Xinhua Shudian (XHS), the national book distribution company, would be changed. The change would allow fees to be negotiated between XHS and individual publishers, in- stead of being based on a fixed percentage of selling price nationwide. With these changes, in the future, textbook prices would reflect more nearly the realities of input and production costs. It can be expected that prices will vary from province to province, depending on the speed with which the printing processes are upgraded in the different provinces, and depending on variations between provinces in the -osts of inputs. In summary, the following principles would govern textbook pricing: (a) development and manufacturing costs would be recovered (except for certain higher education texts); (b) printers and publishers would make only a small profit on educational publishing (5%); (c) publishing houses would be free to agree with provincial authorities on prices to achieve these aims, within broad limits established by SEdC; (d) costs and prices would be expected to vary between provinces; and (e) the government would monitor production costs to encourage efficiency. During negotiations, agreement was reached that the above principles, (a).. .(e), would guide textbook pricing decisions for textbooks produced under the project. Financial Impact and Affordability 4.9 According to questionnaires completed by provincial governments for 1986, household spending on all books including textbooks varied greatly, reflecting differences in income of households and location, as shown in Table which involves 2-color printing on 60 gsm paper or larger formats with black and white printing on 52 gsm paper would be more modest. However, with the economic reform and gradual liberalization of many of the input prices, it is expected that the increase in manufacturing costs would be higher than these projections. - 25 - 4.4. Despite the variation, the expenditure is on average less than 2% of total living expenditures. Table 4.4: ANNUAL PER CAPITA EXPENDITURE ON BOOKS (1986) City Town Rural Amount spent on books (Y) 6.1-12.2 4.0-16.8 1.1-2.7 % of Total Expenditure 0.7-1.5 0.5-2.2 0.2-1.0 Total living expenditures (Y) 740-1,100 590-1,050 260-560 4.10 The government has maintained that significant price increases needed to ensure cost recovery for primary and secondary textbooks are affordable in view of rising incomes and the one-child-per-family policy. Between 1982 and 1987, GNP per capita in China increased at an average annual rate of about 9.5%. This rising trend is expected to continue, with GDP estimated to grow 8-10% annually over the next three years and consumption expected to increase more rapidly than GDP. 4.11 To reduce the burden on poorer families, the government would require the provincial governments participating in the project to provide subsidies for the children in the poorest counties of the country. (This requirement has been incorporated in tte. Project Implementation Agreement (para. 3.13) and the Government regards it as affordable to the p.rticipating provinces.) At present, there are about 300 such counties; the children in need represent about 5% of the students in grades one through three. The subsidy for these students' textbooks (at about 4 yuan per student per year) is estimated to be about 10 million yuan. Most importantly, the allocation of the subsidies would be changed. Whereas in the past the subsidies were granted to the producing units based on their ex-post losses, the subsidies would in future be implemented by reducing textbook prices to schools in target counties; this would assist the drive for greater efficiency. Some subsidies would also continue to be necessary for higher education, because certain texts are highly specialized and only published in small quantities. In such cases full recovery of costs would require unacceptably high prices. The government plans to gradually reduce subsidies for higher education texts over the next decade. The improvement in production standards for higher education texts that would occur as a result of the project would be more modest than for primary texts. Therefore, increases in costs, and thus prices, would be less steep and more affordable for students and other readers. V. ORGANIZATION AND IMPLEMENTATION A. Proiect Management 5.1 Project management would be under the direction of the Project Steering Committee formally established in January 1988. The Committee is - 26 - headed by a Vice Minister of SEdC and consist of representatives of four major bureaus of SEdC: the Office of the NRCPSST, the Office of Teaching Materials, Library and Information Management, the Bureau of Planning and Finance, and the Foreign Investments Loan Office (FILO).8/ FILO would act as the committee's secretariat. It would meet periodically to review project status, check actual progress against the implementation timetable, identify constraints and formulate strategies. During negotiations assurance were obtained that the Government would maintain a Project Steering Committee to monitor project implementation. Chart 4 shows the organization for project management. 5.2 Day-to-day activities would be managed by project implementation offices (PIOs) under provincial education bureaus and publishing houses, universities, and printing factories. Many of the PIOs at provincial and university levels have already been established during implementation of earlier IDA-financed projects. Establishment of the remaining PIOs is currently underway. During negotiations, assurances were obtained that the Government would establish and maintain provincial FILOs and PIOs in various project units acceptable to the Association. 5.3 Proceeds of the credit for provincial printing factories under the project will be relent from SEdC to participating provincial governments. The Association has reviewed a draft format for the Project Implementation Agreement (PIA) (para. 3.13) and has found it acceptable. During negotiations, agreement was reached that signing of PIAs, acceptable to the Association, for all participating provinces would be a condition of credit effectiveness. B. Proiect Monitoring 5.4 To provide effective monitoring and evaluation of the project, three aspects would be monitored regularly: (a) realization of expenditures; (b) implementation of project activities; and (c) performance of the textbook production system. Monitoring activities would be carried out by the PIOs at various levels and coordinated by the FILO projects division. 5.5 Expenditures. Expenditures incurred during the five-year period would be monitored on a continuous basis and reviewed annually. In the course of the annual reviews prepared by FILO, actual expenditures would be compared with the agreed plan. Reasons for deviation would be identified, and actions to be taken to overcome bottlenecks and facilitate achievement of the plans and/or modified plans would be agreed. 5.6 Proiect Activities and Performance Indicators. Implementation of project activities and progress in achieving pricing reforms would be monitored using indicators and annual or biannual which were agreed at a/ FILO has functioned as PIO for four Bank-financed projects: University Development I (Loan 2021/Credit 1167-CHA); Polytechinc/TV University Project (Credit 1411-CHA); University Development II (Credit 1551-CHA); and Provincial University Project (Credit 1671-CHA). - 27 - negotiations (Annex 4). The project performance indicators would form the basis for annual monitoring reports to be prepared by FILO and submitted to the Project Steering Committee and the Association. They would be used by SEdC to monitor the performance of the various project institutions and by managers at provincial and lower levels to monitor and compare the performance of their individual components. In addition, progress of the textbook improvement program for primary and secondary schools (Annex 1, Table 5) and of the program for inservice teacher training (para. 2.13, 3.3) would be monitored and reported on by SEdC beginning in 1991. During negotiations assurances were obtained that the Government would by April 1, 1990 and annually thereafter provide the Association for review and comment a progress report on the implementation of the project and on pricing reforms and, beginning in 1991, the textbook development and inservice teacher training programs being undertaken in conjunction with the project. 5.7 Responsibility for preparing the project completion report would rest with FILO which would be assisted by the various agencies/offices involved in the project. The report would be submitted to the Bank within six months of the closing date. The impact of the new materials on teaching styles and on learning outcome would be included in the reports as a part of an evaluation of the implementation of the reform of basic education. C. Implementation 5.8 Status of Project Pregaration. Preparation for the project has been underway since 1986, when construction of some civil works began. Since January 1988, SEdC has been appraising subprojects. For higher education, five teams visited eight cities, which covered 17 of 21 project universities. The appraisal teams reviewed the adequacy of existing physical facilities and those under construction, plans for training of staff, and the availability of domestic counterpart funds. For primary and secondary, four teams visited 22 provinces and covered all of the project's 33 factories. These teams assessed the suitability of project factories and their capacity for fulfilling the tasks to be assigned under the project. Preliminary plans for the HEPH factory, the major civil works to be included in the project, have been reviewed by the Association. In addition, SEdC has contracted with the China Research Institute of Printing Science and Technology (CRIPST) to review plans for civil works and equipment for the factory. Preparation of equipment lists is essentially complete and a General Procurement Notice was published in April 1988. SEdC, which has responsibility for drawing up technical specifications for equipment to be procured through both ICB and LCB, has set up specialist committees to advise them in this work and in the work of bid evaluation. Representatives of China Printing Corporation, China Printing Materials Corporation, CRIPST, and the end users have been invited to serve on these committees. 5.9 Project ImRlementation Schedule. The project implementation schedule is given in Annex 7. All civil works included in the project would be completed by the end of 1989. Procurement of equipment would be phased (para. 5.11) and all major contracts are expected to be awarded by mid-1989. Some LCB and direct purchase may be undertaken in 1991 or 1992. Direct purchases of books and educational materials are expected to be carried out during 19o9 and 1990. The bulk of overseas training would take place during - 28 - the years 1989 to 1991 (Annex 5, Tables 2 and 4). Local training would be conducted on an on-going basis throughout the project implementation period, but concentrated in the early years prior to delivery of major equipment. D. Procurement 5.10 The main items to be procured are: (a) equipment; (b) books and educational materials; (c) training; and (d) specialist servicas. A number of buildings under construction to house the new equipment have been included in the project. These contracts, which are being awarded through local procedures, will not be financed by the Association. 5.11 Eguigment. The major equipment packages (estimated at about US$88 million), would most likely be awarded through both international competitive bidding (ICB) procedures in accordance with Bank guidelines and local competitive bidding (LCB) procedures. Prequalification of suppliers of major equipment was carried out by SEdC at.d the International Tendering Company (ITC) under the China National Technical Import and Export Corporation, an agency authorized by SEdC to provide assistance in handling procurement, in consultation with the Bank. Analysis of replies was completed in January 1989. SEdC and ITC have finalized specifications and packaged bids for ICB procurement. Only prequalified suppliers would be entitled to bid for items for which they are prequalified. In the evaluation of bids under ICB, qualified domestic suppliers may be eligible for a preference of 15% or the import duty, whichever is lower. Equipment purchased would have adequate safety protection. Although award of contracts is expected to be completed by mid-1989, delivery of equipment is envisaged to be phased over several years due to the large numbers of machines being procured. 5.12 Items or groups of items estimated to cost less than the equivalent of $200,000 per contract, up to an aggregate amount not to exceed the equivalent of US$6.0 million, may be procured under contracts awarded: (i) on the basis of local competitive bidding; or (ii) through limited international bidding procedures on the basis of evaluation and comparison of bids invited from a list of at least three qualified suppliers eligible under Bank Guidelines. Items or groups of items estimated to cost less than the equivalent of $50,000 per contract up to an aggregate amount not to exceed the equivalent of US$1.0 million may be procured under contracts awarded on the basis of comparison of price quotations solicited from a list of at least three suppliers eligible under Bank Guidelines, in accordance with procedures acceptable to the Association. 5.13 Books and Educational Materials. Books and educational materials, estimated to cost US$0.5 million (less than 1% of the goods) would be procured through prudent shopping. 5.14 Technical Assistance and Training. The project would finance study tours and fellowships abroad, estimated to cost about US$0.8 million and specialist services, estimated to cost about US$0.7 million. Both figures include management fees to an experienced agency to be selected by SEdC in accordance with Bank Guidelines. The procurement arrangements to be used for the above categories are summarized in Table 5.1 below. - 29 - Table 5.1: PROCUREMENT ARRANGEMENTS (in US$ million) _ Procurement method Total Category of Expenditure ICB LCB Other cost /a Civil works - - 23.65 23.65 Equipment 58.11 29.85 87.95 (55.06) (55.06) Books & educational materials - - 0.49 0.49 (0.44) (0.44) Training - 1.51 1.51 (0.79) (0.79) Specialist services - - 0.95 0.95 (0.71) (0.71) Total 58.11 29.85 56.59 114.55 (55.06) (1.94) (57.00) Note: Figures in parentheses are the prospective amounts financed by the Association. ig Totals represent total estimated costs per category includlng price and physical contingencies. 5.15 Bank Review. All goods contracts estimated to cost US$200,000 or more, and all specialist services would be subject to standard IDA pre-action review. All the other contracts would be subject to post-action review by the Association. E. Disbursements 5.16 The proposed credit of US$57 million would be disbursed over a period of about five years (Table 5.2). The project is expected to be completed by June 30, 1994. Disbursements will be made against the following categories of expenditures: (a) equipment, books, and educational materials - (i) 100% of foreign expenditures of directly imported goods; (ii) 100% of local (ex-factory) expenditures of locally manufactured goods; and (iii) 75% of local expenditures of the locally procured goods; (b) training and fellowships (including overseas study tours) - 100% of total expenditures; (c) specialist services-- 100% of total expenditures. 5.17 Because of the complexity and phased procurement procedures recommended for this project (para. 5.10) the disbursement profile shown in - 30 - Table 5.2 reflects an anticipated rate of withdrawal more conservative than the average education project in China. Table 5.2: DISBURSEMENT FORECAST Disbursement IDA Disbursement Cumulative profile (%) fiscal year Semester Cumulative as % of China education and semester --- (US$ million) --- total projects FY89 2nd 0.3 0.3 1 3 FY90 1st 2.7 3.0 5 16 2nd 6.1 9.1 16 33 FY91 1st 8.1 17.2 30 49 2nd 10.2 27.4 48 62 FY92 1st 8.1 35.5 62 70 2nd 6.1 41.6 73 76 FY93 lst 6.1 47.7 84 83 2nd 6.2 53.9 95 90 FY94 1st 2.1 56.0 98 94 2nd 0.6 56.6 99 100 FY95 1st 0.4 57.0 100 Closing Date: June 30, 1995 5.18 Documentation of Expenditures. Withdrawal applications for goods and services with a contract value of US$200,000 or more will be supported by full documentation. Other disbursements against programs not undertaken by contract such as overseas fellowships would be made on the basis of Statements of Expenditure (SOEs). FILO will be responsible for preparing withidrawal applications for submission to the Association. To the extent practicable, withdrawal applications will be aggregated in amounts of US$200,000 or more, prior to submission to the Association. 5.19 SRecial Accounts. To facilitate disbursements under the project, a Special Account to be maintained in U.S. dollars with an authorized allocation - 31 - of $3.7 million to cover expected eligible expenditures during any four-month period would be established in a bank on terms and conditions satisfactory to the Association. Replenishment of the account would be based on monthly statements from FILO reflecting disbursements from the Special Account for agreed expenditures, or when the remaining balance to the account is reduced below 50% of the initial deposit, wlhichever occurs first. F. Accounts and Audits 5.20 Project accounts and details of the Spezial Account would be maintained by FILO. Accounts and documentation supporting statements of expenditure will be maintained separately and will be readily available centrally for review by visiting Bank missions. Accounts and statements of expenditure for each fiscal year will be prepared by FILO and audited by the Audit Administration of the People's Republic of China (AAPRC). During negotiations assurances were obtained that annual audit reports prepared by AAPRC with separate opinions on the SOEs wouli be submitted to the Association within eight months of the end of the Governments' fiscal year. Within six months of the Closing Date, tl'e Steering Committee, assisted by the PIOs would submit a project completion report to the Association. VI. PROJECT BENEFITS AND RISKS A. Benefits 6.1 The proposed project assists the Government's reforms in education to support modernization of the economy. The principal benefits would be: (a) improved educational effectiveness of textbooks; (b) increased variety of textbooks available; and (c) improved efficiency of textbook manufacture. By 1995, when the phased introduction of new textbooks for primary and secondary levels is complete, the annual output of primary and secondary textbooks would be about 2.4 billion copies, and 50% of all textbooks for grades 1-3 would use color. Annual output of all university presses in China would be about 135 million books, of which 85 million (63%) would be printed by publishing houses supported by the project using improved production standards. The ratio of published books to mimeographed books would increase from 1:4 to 1:1, and more efficient distribution mechaxLisms would increase access to published textbooks in many universities now relying on mimeographed materials. Textbooks for all levels would be more readable, have more instructionally effective design and layout, and would be available in greater variety. These changes would improve pedagogic effectiveness and reinforce curricular changes being undertaken by the Government. The cost of manufacturing textbooks in color using the more modern technology to be financed by the project would be about one-third lower than with existing technology. - 32 - 6.2 Provision of equipment and training would aid the development of the publishing and printing institutions. Specifically, it would improve production capacity and capability in about 33 prirting factories in 22 provinces, and the publishing houses and printing factories of 21 institutions of higher education. By providing modern equipment to supplement existing facilities, the project would improve the efficiency of textbook manufacture and expand the overall capacity of the printing industry in China to meet the accelerating demand for printed reading matter throughout the society. Technical assistance would help to strengthen key central agencies, including the People's Education Press, thie Higher Education Publishing House, and the Beijing Printing Institute. Training would be provided for about 6,500 publishing and printing personnel. By improving printing technology the estimated cost (in 1986 prices) of printing textbooks on improved paper using four colors would be approximately 25r& lower than the cost using existing technology. B. Risks 6.3 The major risk is that full advantage will not be taken of the improved typesetting, printing and binding equipment to be procured and that opportunities for improving the content, pedagogical effectiveniess and design of textbooks will not be adequately exploited, because of failure to adopt and/or impletment a satisfactory training and technical assistance program. The project would mitigate the risk by using an experienced agency satisfactory to the Association to manage the technical assistance program (para. 3.19). VII. AGREEMENTh REACHED AND RECOMMENDATION 7.1 During negotiations assurances were obtained that the Goverrment would: (a) furnish to the Association for review, no later than July 1, 1990, a plan for inservice training of primary and secondary school teachers in the use of the new textbooks (para. 3.3); (b) carry out training in accordance with a program reviewed annually with the Association (para. 3.19); (c) make the proceeds of the Credit available on terms and conditions satisfactory to the Association (para. 4.4); (d) set a policy framework to allow flexible textbook pricing in accord with principles acceptable to the Association (para. 4.8); (e) maintain a Project Steering Committee to mon1tor project implementation (para. 5.1); (f) establish and maintain provincial FILOs and PIOs in various project units acceptable to the Association (para. 5.2); - 33 - (g) by April 1, 1990 and annually thereafter provide to the Association for review and comment a progress report on the implementation of the project and on pricing reforms and, beginning in 1991, the textbook development and inservice teacher training programs being undertaken in conjunction with the project (para. 5.6); and (h) furnish annual audit reports, including saparate opinions on the SOEs, to the Association within eight months of the end of each fiscal year (para 5.20). 7.2 Conditions for Credit Effectiveness would be: (a) approval by the State Council of the Development Credit Agreement; and (b) signing of Project Implementation Agreements acceptable to the Association (para. 5.3). 7.3 Subject to the above conditions the Textbook Development Project would constitute a suitable basis for an IDA credit of SDR 41.8 million (US$57 million equivalent) on standard IDA terms, with 35 years maturity, to the People's Republic of China. CHINA TEXTBOOK DEVELOPhENT PROJECT PEP Plan for Prtnting Teaching Materials and Books: 1990-2000 1990 1995 2000 Titles Reams/a Titles lears Titles RDs Of which Copies of paper Of which Copies of paper Of which Copies of paper Teaching materials Total new (mln) ('000) Total new (mln) ('000) Total new (alu) ('000) Teachers college (liberal arts) 60 20 1.44 15 80 20 1.48 22.0 100 20 1.70 30.0 Normal school 80 20 13.00 120 100 20 16.25 150.0 120 20 19.50 180.0 Nursery school 50 15 2.06 25 60 10 2.40 30.0 70 10 2.80 35.0 Preschool education 50 6 7.50 20 80 30 12.00 24.0 100 20 15.00 40.0 1 Primary/secondary teacher training 51 7 15.30 100 71 20 21.30 139.0 90 19 27.00 176.4 w Experimental teaching materials 40 15 0.40 6 130 90 1.30 18.5 240 110 2.40 36.0 1 Spare-time high school for staff and workers 13 - 0.13 5 13 - 0.13 5.0 13 - 0.13 5.0 Adult education 25 - 4.10 40 25 - 4.10 40.0 25 - 4.10 40.0 Training for nursery school teachers 20 7 2.00 10 27 7 2.70 13.5 27 - 2.70 13.; Cards and charts for primary/secondary 40 40 4.00 20 80 40 8.00 40.0 120 40 12.00 60.0 Subtotal 429 130 49.93 361 666 237 69.66 482.0 905 239 87.33 615.9 Exercise books 60 60 18.00 90 122 62 36.00 180.0 122 - 36.00 180.0 General books 200 150 6.00 60 250 100 7.50 75.0 300 150 9.00 90.0 Subtotal 260 210 24.00 150 372 162 43.50 255.0 422 150 45.00 270.0 Total 689 340 73.93 511 1.038 399 113.16 737.0 1.327 389 132.33 885.9 /a ! ream - 1000 printed sides (32 pages in each side). Source: PEP. November 1987. - - - 35 - ANNEX 1 Table 2 CHINA TEXTBOOK DEVELOPMENT PROJECT General Education: Printing Output and Financing Capacity increase Counter- Color With No. of No. of Students, Amount part printing With counter- plants cities grades 1-3 of credit funds shortfall credit part funds ('000) /a -- (USS-OOO) -- --- ('000 reams) - Sichuan 3 3 6,3 2,830 1,291 820 510 300 Guizhou 1 1 2,020 1,680 568 340 330 100 Yunnan 1 1 2,900 1,680 811 570 310 250 Shaanxi 1 1 2,160 1,050 703 310 280 100 Qinghai 1 1 317 730 216 80 130 0 Ningxia 1 1 345 730 362 80 80 0 Xinjiang 1 1 1,080 900 562 250 180 50 Henan 2 1 6,230 2,000 838 590 410 250 Hubei 2 2 3,910 2,070 1,800 740 310 600 Hunan 1 1 4,200 1,810 1,270 640 310 300 Guangdong 1 1 4,700 1,370 1,334 610 150 450 Jiangsu 2 2 2,890 2,160 676 410 310 100 Anhui 1 1 2,833 1,000 1,446 530 280 300 Fujian 1 1 2,330 730 616 330 230 100 Jiangxi 1 1 2,380 1,460 919 480 310 200 Shandong 1 1 4,927 2,050 2,086 940 360 600 Hebei 1 1 3,450 1,490 947 440 310 200 Shanxi 2 2 2,050 1,040 478 260 230 50 Inner Mongolia 2 2 1,187 1,000 473 260 230 50 Liaoning 3 2 1,392 1,270 1,362 300 280 250 Jilir 3 2 1,120 1,460 635 310 260 50 Heilongjiang 1 1 2,250 1,050 459 260 280 0 Total 33 30 31,560 19,852 9,550 6,080 4,300 PEP printing house - - - 2.172 - /a Number projected for 1993, when all new texts would be introduced. Source: SEdC, November 1988. - 36 - ANNEX I Table 3 CHINA TEXTBOOK DEVELOPMENT PROJECT General Education: Allocation of Eut ment (x - loan funds; o u counterpart funds) 4-color Binding Laud- Type- Plate Web 4-color perfector equip- nating Other setter Scanner maker press press press ment machine machines Sichuan - - - o xo x o - - Guizhou - - 0 0 x x x - Yunnan - - - 0 xo x xo - - Shaanxi - - x - _0 - - x Qinghai - - - - - x - - - Ningxia - - - - x - - - Xinjlang - - - - xo x xo - - henan - - - o xo x - - - Hubei - - x o x x o - - Hunan x x - o xo x o - x Guangdong - - - 0 xo - x - - Jiangsu - - - - xo x 4nhui - - - o xo x - - - Fujian - - - o x x 0 0 - Jiangxi - - 0 0 xo x 0 - - Shand^ng - - - o xo x o - - Hebei - - o o x x o - Shanxi - - - - xo x - - x Inner Mongolia - x x - xo x - _ _ Liaoning - - - o xo x - - - Jilin - - - - xo x 0 - - Heilongjiang - - - x x o - - PEP printing house x x x x -x x x x Source: SEdC, November 1988. - 37 - ANNEX I Table 4 CHINA TEXTBOOK DEVELOPMENT PROJECT Provincial Factories Included in Project Name of Province printing factory Location Sichuan Sichuan Xinhua Chengdu Sichuan Xinhua Color Press Guanxian Chongqing Xinhua Chongqing Guizhou Xinhua Guiyang Yunnan Xinhua Kunming Shaanxi Xi'an Xinhua Xi'an Qinghai Xinhua Xining Ningxia Xinhua Yinchuan Xinjiang Xinhua Urunqi Henan Xinhua No. 1 Zhenzhou Xinhua No. 2 Zhenzhou Hubei Xinhua Wuhan Ernan Xinhua Kianning Hunan Yinhua No. 1 Changsa Guangdong Xinhua Guangzhou Jiangsu Xinhua Nanjing Xuzhou Xinhua Xuzhou Anhui Xinhua Hefei Fujian Xinlua Fuzhou Jiangxi Xinhua Nanchang Shandong Xinhua Jinan Hebei Xinhua No. 1 Baoding Shanxi Xinhua Taiyuan 725 printing factory Xiaoyi County Inner Mongolia Educational Baotou (Nei Monggol) Tongliao Educational Tongliao Liaoning Shenyang Xinhua Shenyang Chaoyang Xinhua Chaoyang Fine Arts Shenyang Jilin Changchun Xinhua Changchun Changchun Xinhua No. 2 Changchun Yenbian Xinhua Yanji Heilongjiang Xinhua Harbin Source: SEdC, November 1988. - 38- ANNEX I Table 5 CHINA TEXTBOOK DEVELOPMENT PROJECT Timetable for Introduction of New Textbooks Primary Grade Level 1 2 3 4 5 6 /a (Year) Chinese language 91 92 93 93 93 94 Math 91 92 93 94 95 96 Social studies - - 93/b 93/a 94/a 95 7947 951b Science 91 92 93/a 94 94/a 95 94w 9 OF Music 91 91 91 91 91 91 Physical education 91 91 91 91 91 91 Fine arts 91 91 91 91 91 91 Lower Secondary Grade Level 1 2 3 4 /c (Year) Chinese language 91 92 93 94 Math 92/c 93/c 94/c 95 917d 927di 37i7d History 91 92 93/d 93 Geography 91 92 - - Biology 91 92 93/c - Chemistry - - 92/c 93 937wd Physics - 92/d 92/c 93 9 937d English 91 91 91 91 Russian 91 91 91 91 Japanese 91 91 91 91 Fine arts 91 91 91 91 Physical education 91 91 91 91 Music 91 91 91 91 6 year schools only. / year schools only. /b 4 year schools only. 7di 3 year schools only. - 39 ~~~~~~ANNMEX 2 9table 1 CHINA TEXTBOOK DEVELOPMENT PROJECT Higher Education: Printing Equipment Financing (US$'000) Amount Counter- Location of credit part funds Beijing University Beijing 980 249 Qinghua University Beijing 1,080 154 Beijing Normal University Beijing 980 155 East China Normal University Shanghai 980 155 Central China Industrial University Wuhan 980 188 Wuhan University Wuhan 980 605 Chinese People's University Beijing 800 133 Shanghai Jiaotong University Shanghai 800 133 Xian Jiaotong University Xian 800 133 Chongqing University Chongqing 800 133 Beijing Foreign Language Institute Beijing 800 199 Shanghai Foreign Language Institute Shanghai 800 282 Fudan University Shanghai 710 100 Central Minorities Institute Beijing 650 265 Nankai University Tianjin 570 202 Nanjing Industrial University Nanjing 370 97 Northeast Financial University Dalian 370 72 Northeast Normal University Changchun 370 70 Zhongshan University Guangzhou 370 70 Chengdu Science & Technology Univ. Chengdu 170 24 Harbin University Harbin 170 24 Total 14,530 3,446 Beijing Printing Institute Beijing 400 - HEPH Printing House Tianjin 4,757 1,000 Source: SEdC, March 1988. CHNA TEXTBOOK DEVELOPMENT PROJECT fther Education: Allocation of Equipment (x loan funds; o - counterpart funds) 4-color Per- per- Binding Lami- Type- Scan- Cam- Plate Proof Web 1-color fector 2-color 4-color fector equip- nating setter ner era maker press press press press press press press ment machine Beijing Unlversity x x x x x x x xo o Qinghua University x x x x x x x x x xo x Beijing Normal University x x x x x x x 10 x East Caina Roral University x x x x o x x xo x Central China Industrial University x x x x x x x xo x Luhan University x x x xo I 0 x 0 0 Chinese People's University x x x x x xo Shanghai Jlaotong University x x x x x x xo x Uian Jiaotong University x x x x x x xo I Chongqing University x x x x x x xo x Beljlng Foreign Language Institute x x x x x xo 0 ShangbaI Foreign Language Institute x x x x 0 x xo xo Pudan Unlversity x x x x x x xo x Central Mlnorities Institute x x x x 0 x xo I Rankal Universlty x x x x x 10 xo x Nanjing Industrial University x x x x0 Northeast Filancial University x x x xo Northeast Normal University x x x xo Zhongsban University x x x xo Chengdu Science & Technology Univ. x x Harbin University x x Beijing Printing Institute x HEsH Printing Rouse - x x x x x x x x x x xo x Sourcet SEdC, March 1988. m1 - 41- ANNEX 2 Tablea 3 CHINA TEXSOOK DEVELOPMENT PROJECT Publishing Houses Associated with Project Institutions Project Press Associated Publishing Houses /a Beijing University Beijing Foreign Language Institute, Beijing Linguistics Institute, Beijing Industrial Institute, Beijing Tourist Institute, National Defense University Qinghua University Beijing Agricultural Unlversity, Beijing Aviation Institute, Beijing Industrial University, Beljing Sports University Beijing Normal University Central Minorities Institute, Beijing Normal Institute, Beijlng Post-Telegraphic University, China Political and Law University East China Normal University Shanghai Chinese Traditional Medicine Institute, Shanghai Foreign Language Institute Central China Industrial University Wuhan Industrial University, Wuhan University, Wuhan Geological Institute Wuhan University (Central China Industrial University) /b Chinese People's University Beijing Economic Institute, Beijing Foreign Trade University, Beijing Broadcast Institute, Chinese People's Securtty University Shanghai Jiaotong University Tongjl University, Central East Chemical Engineering Institute, Shanghai Medical University Xian Jtaotong University Northwest University, Northwest relecommunications - Engineering University, Shanxl Normal University, Northwest Engineering University Chongqaing University Southwest Normal University, Southwest Jiaotong University Beljing Foreign Language Institute (BeiJing University) /b Shanghai Foreign Language Institute (East China Normal University) /b ! Fudan Universit: Zhejiang University, Zhejiang Fine Arts Instittte Ceatral Minorities Institute (Beijing Normal University) /b Nankai University Tianjin University Nanjing Industrial University Nanjing University Northeast Financial University Dalian Engineering Institute, Dalian Marine Transport Institute Northeast Normal Universlty Jilin University Zhongshan University South China Engineering Institute, Guangdong Higher Education Press Chengdu Sclence 6 Technology Univ. Chengdu Telecommunications and Engineering Institute, Southwest Financial University, Sichuan University Harbin University Northeast Forestry University, Harbin Ship Engineering Institute / To share typesetting and plate making equipment. Project lnstltution (reflects sharing among project institutions). Source: SEdC, March 1988. CHINA TU30EOSW DVLII EIT PROJECT Annma Distribution of Expendituree (US$ NiLlion) 1989 1990 1991 1992 1993 1994 TOTAL Loe;i For;i4n Locli Foreign Loc-a ForeitLn Lc Foreign Lo Forein h Forei Lol Foreign Total PE;tR;EoCPI OITRIIS EdC~~~~~~~~~~~~ ~ ~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~ CLvil Works 0.04 0.01 0.04 0.01 0.08 0.01 Equipment 0.20 0.40 0.20 0.40 0.40 .79 1 Book. I Eduucational Materials 0.03 0.20 0.03 0.20 0.09 0.80 0.45 Total Bae Cost 0.04 0.01 0.26 ^.60 0.23 0.60 0.53 1.21 1.75 >Ie f le Centtr4erJ I St 0.00 0.00 0.01 0.03 0.01 0.03 0.06 Price Centingene 0 01 0.02 0.01 0.04 0.02 0.00 0.01 0.04 o ~~~~~~~~~~~~~~~002 006 Subtotal 0.04 0.01 0.29 0.69 0.25 0.66 0.98 1.32 1.90 EPEIPEP PriLtLig FactorlseaBPI Civil Works 2.34 0.41 2.34 0.41 4.68 0.83 5.50 Equipmnt 0 39 2.32 G.43 2.94 0.09 0.82 0.09 0.82 1.00 4.91 7.91 Total Base Coat 2.34 0.41 2.73 2.7S 0.43 2.94 0.09 0.82 0.09 0.82 5.68 7.73 13.41 Pbltea Cntugec051S 0.12 0.02 0:14 0:14 0:02 0:13 0:00 0:04 0:00 0:04 0.8 0390U Pr coCl ontinm 0.09 e.0 0.0 80 o 8os 819 8.0 ol 0 8.0 80 812 g1 02S 803 862 Subtotal 2.46 0.43 2.95 2.95 0.48 3.28 0.10 0.95 0.11 0.9 6.10 8.60 14.70 Provincal lPrinting Factories Civil orks 4.81 0.85 2.99 03 03 0.08 8.23 1.45 9.68 EquLpnt 3.3 3. 13 6.92 9.46 3.51 8.03 5.31 8.03 21.46 26.68 50.14 Total Baa Cost 4.81 0.85 6.52 3.68 7.34 9.54 5.51 8.03 5.51 6.03 29.69 30.13 59.s2 Phtaecl Contigec 3i 0.24 0.04 0.3 0.37 0.48 0.28 0.40 0.28 0.40 1.48 1.31 2.99 Price Contingeny 0 21 012 0.47 0.61 0.97 0.83 0.82 1.20 2.07 2.76 4.83 Subtotal 5.03 0.89 7.05 3.98 8.18 10.63 6.35 9.26 6.61 9.63 3.24 34.40 67.64 University PublIshing I PrLnting Ci;il Works 4.34 0.77 1.59 0.28 3.93 1.05 6.97 EquIp nt 1.82 5.21 1.07 5.81 0.28 1.94 0.28 1.94 3.t5 14.89 18.34 Total BSae Coat 4.34 0.77 3.41 5.49 1.07 5.81 0.28 1.94 0.28 1.94 9.37 15.94 23.31 Pbhsical Conttigeny 6 52 0.22 0.04 0.17 0.Z7 0.05 0.29 0.0 .0 0.01 0.10 0.47 0.60 1.27 Price Contingency 0.11 0.17 0.07 0.37 .S03 0.20 0.04 0.29 0.23 1.04 1.28 Subtotal 4.56 0.80 3.69 5.94 1.19 6.47 0.32 2.23 0.33 2.32 10.09 17.77 27.86 Tralning Overceas FellovshipalStudy Tours 0.29 0.21 0.17 0.05 0.71 0.71 omsic Training 0.12 0.12 0.12 0.12 0.12 0.62 0.62 Specialist Services - Forei4n 0.23 0.25 0.13 0.03 0.64 0.64 Specilllst Services - Local 0.04 0.01 0.04 0.04 0.04 0.20 0.20 Total Basa Cost 0.16 0.52 0.16 0.45 0.16 0.30 0.16 0.08 0.16 0.82 1.33 2.17 Phys,Ica Contingency 0 52 0.01 0.03 0.01 0.02, 0.01 0.01 0.01 0.00 0.01 0.04 0.07 0.11 Price Contingency 0.01 0.02 0.01 0.03 0.02 0.03 0.02 0.01 0.03 0.09 0.09 0.18 Subtotal 0.18 0.56 0.18 0.50 0.19 0.34 0.20 0.10 0.20 0.95 1.50 2.45 Total Project Cost Civil Works 11.53 2.03 6.95 1.23 0.43 0.08 18.91 3.34 22.25 Equlpment 5 95 11 08 861 18. 61 5.87 10.79 5.87 10.79 26.31 51.27 77.58 Books I Educational Materials 0.03 0.20 0.03 0.20 0.05 0.40 0.45 Training 0.12 0.29 0.12 0.21 0.12 0.17 0.12 0.05 0.12 0.62 0.71 1.33 Specialfst Services 0.04 0,23 0.04 0.25 0.04 0.13 0.04 0.03 0.04 0.20 0.64 0.84 Base Cost 11.53 2.03 13.08 13.02 9.23 19.34 6.04 11.09 6.04 10.87 0.16 46.09 56.36 102.44 0 Phrslcal Contingencies 0.58 0.10 65 0.65 0.46 0.97 0.30 0.5S 0.30 0.54 0.01 2.30 2.82 5.12 Co-tingencles 0.42 0.41 0.59 1.24 0.62 1.15 0.90 1.62 0.03 2.57 4.42 6.99 Total Project Cost 12.11 2.1 14.15 11.09 10.29 21.55 6.96 12.79 7.24 13.04 0.20 50.96 63.60 114.33 _ w ----------- - - - --------
Groupe de la Banque mondiale · Staff Appraisal Report
China - Textbook Development Project
Voir le document original
Le texte intégral est hébergé par l’organisation qui le publie. lawenc.com indexe les métadonnées et renvoie vers la source officielle.
Texte intégral
Informations clés
Organisation
Groupe de la Banque mondiale
Type de document
Staff Appraisal Report
Pays
Chine
Source
Banque mondiale