Morocco - Rural Primary Education Project

Document of The World Bank FOR OFFICIAL USE ONLY 4C,A 32/1C" Report No. 7434-MOR STAFF APPRAISAL REPORT KINGDOM OF MOROCCO RURAL PRIMARY EDUCATION PROJECT FEBRUARY 14, 1989 Population and Human Resources Division Country Department II Europe, Middle East and North Africa This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (as of November 1988) Currency Unit = Moroccan Dirham (DH) US$1.00 DH8.1 DH1.O0 = US$0,123 FISCAL YEAR (FY) January 1 - December 31 ACADEMIC YEAR (AY) September to June GLOSSARY OF ABBREVIATIONS ADB African Development Bank CNCPRST National Research Center "Centre National de Coordination et de Planification de la Recherche Scientifique et Technique" COPE Vocational Guidance and School Mapping Institute "Centre d'Orientatinn et de Planification de l'Education" DHSPA MOE Division of School Hygiene and Accident Prevention "Division de l'liygiene Scolaire et de la Pr6vention des Accidents" DSPSM MOE Department of School Planning and School Mapping "Direction de la Planification de l'Education" ESRP Education Sector Reform Program MOE Ministry of Education MOPH Ministry of Public Health MOF Ministry of Finance PEP Primary Education Program SCHSU MOPH Central Service for School and University Hygiene "Service Central d'Hygiene Scolaire et Universitaire" TTI Teacher Training Institution WFP World Food Program  FOR OFFICIUL USE ONLY KINGDOM OF MOROCCO RURAL PRIMARY EDUCATION PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. BASIC DATA LOAN AND PROJECT SUMMARY ....................................... iii I. THE EDUCATION SECTOR A. Background ............................................ 1 B. Sector Development Strategy: The Education Sector Reform Program .... ............. 1 Other Education and Training Project Experience ..... 3 C. Issues in Primary Education ........................... 3 Access to Primary Schooling in Rural Areas .... ...... 4 Participation in Rural Primary Education .... ....... 4 Quality of Primary Education ........................ 6 Planning, Monitoring and Evaluation Services ........ 9 Budgetary Allocations to Primary Education .... ...... 10 II. THE PROJECT A. Introduction .......................................... 11 B. Project Objectives and Scope .......................... 11 C. Detailed Project Description .......................... 12 Increased Access and Improved Facilities .... ....... 12 Increased Participation ............................ 13 Improved Quality ................................... 14 Planning, Monitoring and Evaluation .... ............ 17 III. PROJECT COSTS, FINANCING, MANAGEMENT AND IMPLEMENTATION A. Project Costs ......................................... 18 B. Project Financing ..................................... 21 C. Project Management and Implementation .... ............ 22 D. Maintenance ........................................... 24 E. Procurement ........................................... 24 F. Status of Preparation ................................. 26 G. Disbursements ......................................... 27 H. Special Account ....................................... 27 I. Accounts and Audits ................................... 28 J. Suspension Remedies ................................... 28 IV. BENEFITS AND RISKS A. Benefits .............................................. 28 B. Risks ................................................. 29 V. AGREEMENTS REACHED AND RECOMMENDATIONS .................... 30 This report is based on the findings of an appraisal mission to Morocco in June/July 1988. Mission members were Daniel Viens (mission leader), Julian Schweitzer, Helen Abadzi, Barbara Szaszkiewicz, Salim Habayeb (World Bank), and Eid Dib (consultant). 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.  ii Table of Contents (Continued) Annexes: 1. Evolution of Public-School Enrolments by Level 2. Evolution of the Ministry of Education Budget as a Share of Total Government and GDP 3. Education Sector Reform Loan (2664-MOR) - Status of Special Conditions, Other Measures and Progress to Date 4. Evolution of Primary Level Enrolment, Net Enrolment Ratio and Gross Participation Rate by Milieu and by Sex 5. Evolution of Internal Efficiency at Primary Level and Transition Rate from Primary to Lower Secondary Level 6. World Bank Group Lending in the Education and Training Sector 7. Primary Education Program 8. Primary School Coverage in Selected Provinces 9. Evolution of the 'linistry of Education Budget by Category of Expenditure and by Level of Education 10. Evolution of the Ministry of Education Recurrent Budget for Primary Education 11. Projected Requirements for Additional Classrooms 12. Comparative Education Indicators Schedules: 1. Implementation Schedule - Civil Works 2. Implementation Schedule - Furniture, Equipment and Materials 3. Implementation Schedule - Technical Assistance 4. Estimated Schedule of Disbursements Charts: 1. Ministry of Education - Organizational Chart 2. Ministry of Public Health - Organizational Chart Map: IBRD Reference No. 21270  KINGDOM OF MOROCCO RURAL PRIMARY EDUCATION PROJECT STAFF APPRAISAL REPORT Basic Data Country Data (1987) Per Capita GNP: US$620 Total Population: 23.0 million Population growth rate: 2.5% Education (1987-88) Enrolment Enrolment Ratio 2 Total Female Net3 Gross Net 4 Female ('000) as % Tot. ('000) Net Level Primary (Grades 1-5) 2,177 38.6% 1,835 71.9% 60.6% 48.2% Lower Secondary (Grades 6-9) 1,009 40.2% 695 46.5% 32.0% 26.6% Upper Secondary (Grades 10-12) 340 38.0% 117 23.4% 11.1% 8.9% University 169 34.2% NA 4.7%5 NA NA Public Expenditures on Education (1987) Central government education budget as a % of total government budget: 21.5% Central government education budget as a % of GDP: 6.8% Central government investment budget for education as a % of government investment budget: 12.6% Central government recurrent budget for education as a % of government recurrent budget: 29.1% 1Public plus private schooling. 2 Total enrolments as % of population in relevant age group. 3 Net enrolments equal total enrollments minus over-aged students. 4Net enrolments as % of population in relevant age group. 5 5.5% if students abroad included  KINGDOM OF MOROCCO EURAL PRIMARY EDUCATION PROJECT STAFF APPRAISAL REPORT Loan and Project Summary Borrower: Kingdom of Morocco Amount: US$83 million equivalent Terms: 20 years, including 5 years of grace, at the standard variable interest rate. Project Description: The proposed project would support government's efforts to implement rapid, yet sustainable expansion and improvement of primary education in rural areas. The objectives of the project are: to increase access to primary schooling: to increase rural primary education participation, particularly for females; to improve the quality of primary education; to strengthen planning, monitoring and evaluation capacity; and to strengthen the efficient and rational utilization of resources in the primary education subsector. The proposed project would provide school facilities in under-supplied areas. It would increase rural primary education participation by improving the accessibility and affordability of textbooks and educational materials and supporting community initiatives to encourage families to send children to school. It would also support quality improvements through: the development of curriculum and standardized achievement testing; improved effectiveness of teacher selection, pre- and in-service training, and deployment of teachers in rural areas; improved multigrade teaching; strengthened school management; introduction of health education in primary school curriculum; improved delivery of school health services in collaboration with the Ministry of Public Health (MOPH); and, carrying out of a study on the provision of eyeglasses at low cost to low income rural school children. The project would also strengthen MOE school mapping services, and the monitoring and impact evaluation capacity of MOE. Finally, it would improve efficiency in the utilization of resources and elaborate a building and equipment maintenance program. Benefits and Risks: The proposed project is expected to increase participation in rural primary education. By project completion in 1995, rural enrolments are expected to increase by about 38%, with participation of girls increasing by 75%. Innovative approaches for increasing enrolment rates of rural girls would be tested. Student achievement is expected to rise as a result of improved quality of teachers and curricula and improved availability of instructional materials. The growth of incremental expenditures due to enrolment growth will be contained througii rationalization of teacher employment, training resources and policies, non- teaching staff allocation, and establishment of non-salary budgetary allocation norms for primary education. Nevertheless, Government may face pressure to divert funds away from critical  iv nonsalary expenditures in the primary education subsector. Special attention has been given to establishing the basis of appropriate budgetai} allocations within the education sector through a specific minimum investment program, and the design and regular monitoring of specific technical norms for non-salary expenditures. The project dlso includes several experimental components (notablr provision of low-cost textbooks to school cooperatives, and activities to promote female participation including a wide range of local community initiatives) whose outcomes are uncertain. The initiatives have however obtained clear endorsement from central authorities and will be monitored systematically during project execution. Estimated Proiect Costs Local a/ Foreign Total -----------(US$ Million)------------ A. Increased access 77.1 48.7 125-8 B. Increased participation 3.8 5.6 9.4 C. Improved quality 1.6 4.7 6.3 D. Planning, Monitoring and Evaluation 0.6 1.9 2.5 Total Base Costs 83.1 60.9 144.0 Physical Contingencies 5.4 4.0 9.4 Price Contingencies 6.8 4.8 11.6 Total Project Costs 95.3 59.7 165.0 Financing Plan Government 42.0 42.0 IBRD 36.5 46.5 83.0 ADB 16.8 23.2 40.0 Total 95,3 69.7 165.0 a/ Including $25 m in taxes and duties.  v Estimated Disbursements Bank Fiscal Year 90 91 92 93 94 95 96 ----------------(US$ Million)--------------- Annual 8.0 11.0 23.0 15.0 13.0 11.0 2.0 Cumlulative 8.0 19.0 42.0 57.0 70.0 81.0 83.0 Rate of Return: Not Applicable  I - THE EDUCATION SECTOR A. Background. 1.01 Government efforts in education and training since Independence (1956) have focussed on quantitative and qualitative improvements to meet the needs of a growing economy. Formal education is under the responsibility of the Ministry of Education (MOE) and includes primary (five years), lower and upper secondary (four and three years respectively), post-secondary technical education, and higher education, including teacher training, and the universities1. Private schooling at all levels is nxpanding from a low base, mostly in urban areas, and accounts for all modern and Quranic pre-schooling and about 4% of primary and 5% of secondary education enrolments. 1.02 The 1970s and early 1980s saw rapid enrolment growth, especially at secondary and post-secondary levels (Annex 1). As a result, recurrent education expenditures grew very fast, reaching a peak of ?9% of total government recurrent expenditures in 1987, compared with 14% in 19L. (Annex 2). The rapid growth of public expenditures for secondary and post-secondary education resulted in insufficient attention and resources for primary education. As a result, primary education enrolment has grown relatively slowly and in 1987-88, 39% of the primary school cohort (excluding overage students) were still not in school, as compared to 43% in 1983-84. 1.03 This expansi.on toolk place against a background of slower economic growth, deterioration of the balance-of-payments and serious fiscal deficits. As a result, public investments in education were severely curtailed, declining in real terms by nearly 40% between 1982 and 1985. Moreover, scarce resources were used overwhelmingly to accommodate growing enrolments, especially at secondary and post-secondary levels while complementary expenditures needed to sustain and improve the quality of education were neglected. Aware of these shortcomings, the Government embarked in 1985 with Bank assistance, on a program of reforms in the educacion sector. B. Sector Develolment Strategy: The Education Sector Reform Program. 1.04 In 1985, the Government launched the Education Sector Reforr. Program (ESRP) which the Bank is supporting through the FY86 Education Sector Reform Loan (2664-MOR). The objectives of the Reform Program are to provide more equitable and cost-effective education consistent with the country's medium-term development needs. This is to be achieved, inter alia, by: (a) allocating a larget share of resources to and improving attendance in primary education; (b) improving educational efficiency in terms of accelerated student flows; and (c) containing the growth of public expenditures on education. During the first phase of the ESRP (1986-1988), the new orientations for the education system and the framework for future controlled expansion of primary and secondary levels were to be established. At the same time, the Government was to develop new pedagogical programs to improve the quality of education and to introduce additional measures to improve efficiency. These new programs were to be 1 Starting in 1990, MOE is committed to introduce a 9-year basic education cycle comprising six years of primary education and three years of lower secondary education.  - 2 - implemented in phases and would be fully realized by the end of the century. A summary of policy measures and progress achieved on key conditions and performance targets agreed in the Education Reform Program is attached in Annex 3. Major achievements are summarized below. 1.05 At primary and secondary levels, the ESRP has already produced significant achievements. Attendance and retention in primary schooling have increased. Between Academic Year (AY) 1985-86 and 1987-88, new entrants in Grade 1 increased by 17% over the previous five years' average in urban areas, and by 9% in rural areas (Annex 4). During the same period, the total number of repeaters and dropouts decreased by 26% and 23% respectively, thus increasing significantly the number of primary students completing primary cycle (Annex 5). Access to lower secondary education improved. The transition rate from primary to lower secondary level increased from 49% of Grade 5 enrollees (between AY 1984-85 and 1985-86) to 61% (between 1986-87 and 1986-87) (Annex 5). Expansion of upper secondary schooling was controlled through stringent selection criteria, while a growing number of Grade 9 students were admitted to short-duration vocational training programs. Efficiency in use of educational resources was improved. This was achieved through reduced unit costs of primary and secondary school construction and improved productivity of education personnel with increases in teacher's workload at secondary level. New pedagogical programs were developed by local task forces under the Nlational Research Center (CNCPRST) which provided effective leadership, coordination and monitoring. These programs include inter-alia: (a) introduction of remedial instruction in the revised Grade curriculum initroduced in 1987-88; (b) development of learning achievement testing materials in the revised curriculum; and, (c) establishment of a data base on school mapping in the context of extension of multigrade teaching in rural areas. 1.06 In higher education, the ESRP has also resulted in importaTr gains. These are: limitation of expansion to a few priority facilities; increased working hours (20%) for teaching staff; increased retention rates; and, strengthened control of scholarships through mandatory reduction / suspension upon failure in year-end examinations. However, performance falls short in two crucial areas: first, new intakes at university level in AY 1987-88 by 21%, because of the intense social demand, though the growth of new entrants had been maintained to its target of 2% in 1985-86 and 1986-87 (as compared to an average of 13% between 1975 and 1984). Provisional results for 1988-89 show the same level as in 1987-88. This is partly due to the introduction, in 1987-88, of a new 3-year cumulative assessment system which has substantially lowered the number of university candidates. It is too early to predict the long-term effects of this system. Second, direct cost recovery in the form of nationwide fees at university have not yet been introduced, although the relevant legislative framework has been approved by Parliament. The absence of more effective mechanisms to regulate access to Government subsidies as the higher education system expands - as it ultimately should - has had a detrimental effect on other levels of education since the additional costs incurred because of increased enrolments have absorbed savings from efficiency measures which could have been available to primary education. This has serious medium- and long- term implications for the reform program: (a) investment expenditures for  - 3 - primary and secondary levels might be reduced to accomodate expanding enrolments in higher education; and for (b) unit recurrent expenditures in the higher education subsector, especially for essential non-salary items (such as libraries, laboratories, and specialized equip'i ,nt maintenance and replacement), might continue to fall to levels which will severely compromise the quality of education. 1.07 To allow more time to resolve the serious issues in this subsector, it was decided, in December 1987, not to pursue preparation of the planned second overall education sector operation. Instead, the Government and the Bank are examining through sector work a set of alternative options that might reconcile social pressures for expanded access to free education and the need to mobilize alternative sources of financing within the subsector, particularly in the context of greater management autonomy at the individual university establishment level. Meanwhile, it was decided to maintain the momentum of reforms in the primary and secondary subsectors through priority subsector investment operations directed at expanding and improving primary education, providing universal access to primary schooling by the beginning of the next century, and improving lower secondary education access. The proposed project is the first of these subsector investments; a follow-up operation to address secondary education issues is at the identification stage. To protect needed investments for priority subsectors, the Government formulated, In consultation with the Bank, program of minimum public investments in line with Sector priorities defined in the Education Reform Program. 1.08 Other Education and Training Project Experience. The Bank has supported education development in Morocco through eight education / training loans since 1963, four of which are ongoing (Annex 6). Bank lending in the sector, consistent with government needs and prior.t-:ies, has shifted from rein.orcing specific types of educational institutions, to strengthening employment-oriented skill training and more broadly, supporting structural reforms to improve the efficiency and financial viability of education at all levels. The first five projects, which have closed or will be closed by end- March 1989, supported expansion and improved quality of primary and secondary education, and teacher training and technical training at secondary and post- secondary leve s. In addition, two recent vocational training projects (FY85 and FY87) extended Bank involvement in middle-level skills training in order to meet industrial-sector manpower needs. Finally, the eighth operative Sector Loan discussed in paras. 1.04 to 1.07, is fully committed and expected to close later this year. Bank lending reflects key lessons from previous projects, such as the need for adequate staffing in the implementing agency, interministerial coordination, and realistic implementation targets. A Standing Commission with representatives from all concerned Departments was established under the Education Sector Reform Loan to ensure effective interministerial coordination and timely implementation by all MOE authorities.  -4- C. Issues in Primary Education. 1.09 To correct imbalances between urban and rural areas, especially for girls, the Government is addressing the key issues in the primary education subsector, namely: (a) access i-) primary schools in remote rural areas; despite progress made, primary education in Morocco is still not available within a reasonable distance (approximately 3 km) to all rural population; (b) low participation in rural primary schools, especially for girls. In 1987-88, new entrants in Grade 1 accounted for some 34% of rural girls and 69% of rural boys of age 7, compared to 85% and 89%, respectively, in urban areas (Annex 4) 1; (c) the need to attract and maintain children inL school, and improve benefits for the individual and society; (d) the need for efficiency improvements in planning, motnitoring and evaluating programs designed specifically to deliver sustainable educational services; and (e) the gradual reallocation of resources to primary education in order to sustain its expansion. The Government is introducing specific measures to address these issues whilst at the same time containing education costs and sustaining quality improvements. 1.10 Access to Primary Schooling in Rural Areas. In areas where school facilities already exist, about 5,000 additional classrooms are required to accommodate the primary school-age population (still growing at about 2% per year net of rural-urban migration) and the increased flow of Grade 6 students starting in September 1990 (para. 1.01). In addition, about 6,500 small communities (or about 22% of villages (douars) with population below 1,000) have no primary school (Annex 8). In order to improve access to primary schooling at reasonable unit cost in under-supplied and non-supplied areas, MOE is accelerating provision of prefabricated classrooms. MOE is also relying on sequential shifts (whereby two classrooms accommodate three classes on a six- day schedule, for 30 hours per week of class contact) and multi-grade teaching - a practice tnat is now used more extensively. A key constraint to the expansion of rural primary education is the difficulty in attracting and keeping teachers in rural schools because of the lack of housing in surrounding communities. MOE is already providing staff housing at nominal charge in priority cases supported by the ESRP (Annex 3). To encourage school attendance, MOE is planning to continue its school lunch program introduced with WFP support, and equip rural schools with modest canteen facilities. In addition, to ensure provision of water for school canteens and staff housing, and to promote schoJ1 health and hygienic behavior, MOE is planning to start a pilot program to build low-cost wells and sanitary facilities in about 120 schools. 1.11 MOE is giving priority in the selection of new school locations to communities contributing directly or indirectly to the school environment, such as: donation of the site, site fencing, provision of local construction materials 1 Overall gross enrollment indicators of 72% nationally (87% male and 57% female) significantly overstate effective participation, by relating the entire population (including large numbers of overage children who have repeated one or more years) to the primary school-age cohort.  (sand, stones, etc.) and manpower; and, provision of housing for the teacher(s) in the community. Priority is given to husband/wife teams and single women teachers. These criteria are now being applied by Provincial School Construction Divisions as part of the regular school construction program. 1.12 ParticiRation in Rural Primary Education. Differences between rural and urban school attendance and between rural male and female attendance in particular can be attributed not only to inadequate access to schools, but also by the differential impact of the costs of education and its perceived benefits, socio-cultural traditions and attitudes regarding girls' schooling and the poor delivery of educational services which affect private returns to schooling. 1.13 The cost of education is a key consideration in a family's decision to send children to school. The direct costs (i.e. required textbooks, educational materials, sometimes additional food and clothing requirements) represent a substantial share of annual household income for most low-income rural families '. Recent studies indicate that these costs are a main deterrent to female enrolment. The opportunity cost of education in terms of foregone cash income and time spent in school activities is proportionately higher for low- income families. Children play an important role in the subsistence activities of the household in rural areas. Moreover, girls traditionally contribute earlier than boys to income-generating and household activities, and their labor is identified with the most immediate needs of the family. Boys' contributions are expected later. As a result, girls' schooling may be perceived as irrelevant and too expensive, while boys' may be justified in terms of improved ability to provide support later to their parents. However, these simple paradigms of household income, expenditure, labor force participation, and savings decisions, while intuitively plausible, are obviously subject to wide variations in regional and local circumstances and have not yet been the subject of systematic empirical research in Morocco. 1.14 Textbooks and school materials represent the largest share of direct costs of education. Though unit costs for textbooks are reasonable (US$1.00 to US$ 1.50), and readily available in urban areas, they are not always available in rural areas and markups through low-volume general-purpose retailers are high. To stimulate community involvement in the acquisition of textbooks, MOE enables school cooperatives to buy books directly from the publishers at a 25% discount. However, lack of seed funds, administrative bottlenecks and ignorance of the procurement procedures have until now resulted in a limited use of this facility. Mt?E plans to revitalize the role of school cooperatives on the basis of successful recent experience in few Provincial Delegations. 1.15 As evidenced from other developing countries, especially in Islamic I Recent studies indicate that the direct costs of schooling per child could represent between 5% at primary and 10 % at secondary level of annual household cash expenditures for rural families whose total spending is less than US$500 per year, which is a majority of all rural households.  - 6 - areas, female teachers help overcome parents' reluctance to send their daughters to school. Although there are adequate numbers of females in teacher training institutions to assign to rural schools, prospects for doing so are constrained by: (a) reluctance of "urbanized" teacher trainees to accept assignments in rural areas; and (b) lack of suitable housing in surrounding communities. To address these issues, MOE is revising selection criteria and assignment policies for primary school teachers (para. 1.21), and is providing, under the impetus of the ESRP, suitable housing in surrounding communities (para. 1.10). 1.16 Pressures to leave school at an early age are stronger in rural environment. When girls reach puberty they are not allowed to travel long distances to school, especially in twilight hours. The seasonal nature of agricultural work may also conflict with the academic calendar. Parents are more likely to send their children to school if it reflects the rhythm of economic activity and prevailing moral concerns. MOE is introducing flexible scheduling in primary schools to adjust more fully to rural community life. 1.17 Initial enrolments are generally at the level expected in new schools in rural areas, which reflects parents' favorable overall attitude towards modern primary schooling; attendance however, often decreases thereafter, probably reflecting parental perception of the poor quality of educational services. The main problems identified in opinion surveys and supervision visits include poorly motivated teachers, discontinuity in teacher assignments, lack of communication between the teacher / school principal and the community, and unavailability of instructional materials. It is therefore important to provide quality improvements aimed at increasing participation of rural children. 1.18 Ouality of Primary Education. To increase participation in primary education in the rural areas, MOE is increasingly emphasizing quality issues which relate to: (a) adapting curricula and developing standardized achievement testing; (b' attracting, training and maintaining motivated teachers who adapt to the rural community environment; (c) improving multi-grade teaching practices; (d) strengthening school management; and, (e) developing new approaches to strengthen school health services in collaboration with the Ministry of Public Health (MOPH). 1.19 Under the impetus of the ESRP, MOE has embarked on a program of revising the basic education curriculum (Grades 1-9). The revised curriculum was introduced in AY 1987-88 for Grade 1 and in AY 1988-89 for Grade 2. Replacement of all subjects the same year, for any given grade, without adequate in-service training of all teachers has created implementation problems. The Government is therefore shifting to a gradual substitution of subjects, with emphasis on a few subjects which could be replaced in several grades at once and whose revision is a matter of high priority (i.e. mathematics and science). This cycle of curriculum revision is expected to last a decade, and curriculum evaluation and updating will thereafter become a continuous process every five years. Concurrentlv, standardized achievement testing is scheduled to replace the low-reliability, essay-type examinations now given at the end of primary school. Considerable expertise, however, will have to be deployed to sustain  a curriculum development program of such magnitude and to lay the foundations for the development of standardized achievement testing. 1.20 Significant increases in university enrolments have recently led to recruitment of teacher trainees among university graduates rather than Baccalaureat holders (the official minimum entry qualification) because the former usually score higher on academically-oriented entrance examinations. Since they are the only selection criteria used, they are therefore biased toward "urbanized" graduates, who are then reluctant to accept assignments in rural areas; yet, new teaching positions are available primarily in the rural areas where the system will need to continue to expand much faster than population growth for the rest of the century. Although the entry pay scale is the same regardless of academic qualifications (grade 8 of the national salary scale for teachers), university graduates are permitted to apply for grade promotion within two years after entry in the profession, while Baccalaureat holders must remain longer at the initial level. The growing, cumulative, representation of university graduates (currently 5% of all primary level teachers) may lead to a significant increase in the wage bill which is linked neither to classroom performanse nor to additional teaching or managerial responsibilities. 1.21 The Government is introducing specific measures to correct this situation, such as modified selection procedures and recruitment criteria to identify candidates with, increasingly, only the minimum formal academic requirement, but who can be expected to become effective primary teachers and are considered most likely to accept lengthy assignments in rural areas within their region of origin. Local authorities are to participate more actively in the recruitment process and identify candidates whose profile and career objectives correspond more closely to rural assignments. Regulations regarding a two-year compulsory service in rural areas are to be strictly enforced. Teachers are to be given extra points for every year of service in rural areas when applying for promotion to administrative positions in rural areas. Career progression criteria and rules are to be revised to incorporate additional responsibilities (including assignments to multi-grade classes and assistant principals in satellite schools). In addition, staff housing facilities are provided in remote areas to attract teachers and facilitate integration with the community (para. 1.10). 1.22 To improve academic and pedagogic qualifications of teachers, the training program for primary school teachers will be increased from one to two years and focus on teaching methodology for all primary-level subjects and include an extensive teaching practice assignment. However, the program still contains no instructional units on multigrade teaching, effective teaching strategies, or school administration. There is no systematic program of continuous in-service training. In the future, pre-service training program is to include additional instructional units and teaching practice in rural area, and in-service training programs for rural teachers, resident or on-site, are to be developed. 1.23 In small rural communities where the number of students in a grade (7 or less) does not justify opening individual classes, MOE relies upon multi-  - 8 - grade teaching. In 1986-87, 64,000 students (6.3% of total rural enrolment) were enrolled in approximately 4,000 two-grade classes (8.4% of total classes). It has been viewed by school principals, teachers and parents in Morocco as a last resort alternative and utilized exclusively in rural areas when one-grade classes would be to small to be viable. This perception has been reinforced by lower levels of academic achievement and higher repetition and dropout rates in multigrade classes. In the context of the ESRP, an MOE task force has identified the main obstacles to effective multi-grade teaching and initiated development of the following remedies on an experimental basis: learning objectives common to both grades which can be taught at the same time have been identified; common subjects have been scheduled at the same time and practical activities have been developed to support lectures; modular sets of exercises have been developed and independent learning methods have been introduced to permit students to complete class assignments on their own or in small groups. Teacher training institutions do not at the moment prepare teachers for multigrade teaching assignments. Since classes are often located in remote satellite schools, appropriate pedagogical supervision is ill-adapted or non-existent. The number of multi-grade classes is expected to increase significantly with new schools in small scattered communities. MOE intends to strengthen multi-grade teaching practices, teacher preparation and supervision, and materials. 1.24 To manage rural schools, Morocco has chosen the nuclear system in which a central, larger school with a full-time principal, oversees 8-12 smaller, satellite schools of one to three classrooms, in some cases located more than 30 km away. Xlthough the nuclear system is well-suited to rural areas, satellite school teachers are not adequately supervised. Instead, central school principals have neither been selected nor trained to provide instructional leadership, have little control on school operations, because most decisions are made at the central level, and often lack the means to visit schools on a regular basis. MOE is addressing these issues through a series of measures aimed at strengthening the roles and responsibilities of the school principals, while strengthening school management of satellite schools, These measures are: (a) revision of the role and responsibilities of school principals to include pedagogical supervision; (b) creation of a new cadre of assistant-principals of satellite schools, who would be selected among full-time teachers and given additional responsibilities; and, (c) establishment of a reward system including extra points earned by undertaking assistant-principal duties, to be applied to promotion decisions. 1.25 With the assistance of UNICEF and in close collaboration with the Ministry of Public Health (MOPH), MOE has recently developed health and nutrition teaching modules and intends to include them in the primary level curriculum. The delivery of school health services and environmental inspections needs strengthening through improved managerial and technical capacity and coordination between MOE and MOPH professional and technical staff. To support this strategy and promote the development of appropriate action programs, MOE created in 1985 the Division of School Hygiene and Accident Prevention (DHSPA) under the Secretary General for Primary and Secondary Education (see MOE Organizational Chart, Chart 1). Similarly, MOPH has recer.ly strengthened its Central Service for School and University Hygiene (SCHSU) under the responsibility of the  Technical Department (see MOPH Organizational Chart, Chart 2) through appointment of qualified medical and technical staff at the provincial level. 1.26 The Government is now turning its attention to the main unresolved school health issues related to: (a) poor coverage, especially in rural areas, due to lack of resources and ineffective coordination; (b) inefficient delivery of health education; and, (c) correction of visual deficiencies. The school visit program, initiated in the mid-seventies, was intended to reach students enrolled in four grades at primary and secondary levels, which correspond to critical periods in the student's life. The visits program includes systematic medical screening, environmental inspections, and presentations on selected health topics. However, the program falls short of targeted plans, especially in rural areas where the coverage does not exceed 40% of targeted groups. Until now, health education has been provided as part of the school visit program by MOPH. in the form of short presentations in a sporadic manner, as time permitted. Moreover, teaching methodology was inadequate and follow-up and evaluation was non-existent. It is estimated that about 10% of the students at primary level need visual acuity correction. In 1987-88, standard visual chart screening conducted in the course of MOPH visits to schools indicated that 50,000 students needed eyeglasses. Only a small proportion of families, particularly in urban areas, had access to and could afford eyeglasses (cost amounting to US$75-125). Even if the limited and exclusively urban private-sector capacity were to be developed in the medium-term, it is likely that needy families, especially in rural areas, would remain deprived of reasonable access to these services at affordable cost. 1.27 To consolidate its social development strategy, the Government of Morocco is rightly placing high priority on the development of school health as an important part of the overall national health strategy. The Government's school health strategy provides for the inclusion of health and nutrition components in the school curriculum, the strengthening of health inspection services and the promotion of an improved school health environment through the implementation of a pilot program for the provision of wells and sanitary facilities (para. 1.10). This strategy is a normal follow-up and consolidation of priority health programs, in particular the maternal and child health (MCH) and primary health care. 1.28 Planning. Monitoring and Evaluation Services. To develop primary education in rural areas, careful targeting of undersupplied areas, is necessary. School mapping (school location planning) services, both at central and provincial levels, are not yet properly equipped to face the challenges of expanding access to primary schooling in remote rural areas. Although MOE School Mapping Division at the central level and the 49 School Mapping Units established at the provincial level are now properly staffed and their performance is satisfactory, they currently lack the physical means to collect and monitor efficiently basic information on rural communities not served, school-age population, population movements, and catchment areas of existing schools.  - 10 - 1.29 MOE monitoring capacity and systems were developed for statistical reporting purposes. However, neither MOE nor the Faculty of Education (in Rabat) have expertise and experience to conduct complex evaluative activities in education. in addition, there is a lack of communication and feedback among researchers themselves, and between them and decision-makers. The development of institutional evaluative expertise is crucial, especially at a time when creative cost-effective approaches are attempted in different rural environments. 1.30 Budgetary Allocations to Primary Education. While the Government's efforts to expand schooling capacity did achieve a significant growth and diversification of enrolments, they also led to a sharp increase in recurrent expenditures on education (para. 1.02). As a result of the large increases in enrolment at secondary and post-secondary levels during the 1970s and early 1980s, the share of MOE recurrent expenditure at primary level decreased to accommodate this expansion (Annex 9). Budgeted MOE recurrent expenditures at primary level decreased from 44.2% in 1975 to 35.3% in 1985, whilst during the same period, secondary and post-secondary recurrent budget share increased from 43.4% and 12.4% to 44.6% and 17.1%, respectively. As a result of policy measures introduced in the ESRP since 1986, these shares have Leen maintained at the 1985 level. However, budgetary allocations to non-salary expenditures are still inappropriaLc-. In 1988, they accounted for only 4.6% of recurrent expenditures at primary level (Annex 10). Maintenance for facilities and equipment and renewal of educational materials receive only 1.3% and 0.2% respectively of MOE recurrent budget for primary education. There are no specific budgetary allocations for teacher supervision and in-service staff training which are covered by the already insufficient allocations to Teacher Training Institutions (TTI) and travel allocations. 1.31 In light of the budgetary issues affecting education (paras. 1.02- 1.03), further growth in the education system can only be made in the context of concerted efforts to control education costs, particularly in higher education, and to improve the efficiency of educaLion resources at all levels. MOE plans a series of measures to contain education costs and sustain quality improvements at primary level. The following measures are also directed to improving efficiency at primary and secondary levels through reduction of teacher and administrative costs per student: (a) standardizing around existing minimum qualifications (bacalaureate) and entry pay scale regulations for primary teachers and linking career progression more closely to experience and responsibilities (para. 1.21); (b) rationalizing the network of teacher training institutions and improving student/teacher ratios therein. In 1987-88, some 11,000 teacher trainees were enrolled in 53 TTIs 1. Student/teacher ratios in the TTIs are 1 These comprise 31 Centres de Formation des Instituteurs (CFIs) tor primary level teacher training, 14 Centres Pedagogiques R4gionauy (CPRs) for lower secondary and, 8 Ecoles Normales Superieures (ENSs) for upper secondary teacher training.  - 11 - excessively low at 6.3. In the course of policy discussions under the ESRP and as part of the PEP, MOE has reduced the number of lower secondary TTIS from 17 in 1986-87 to 14 in 1987-88. MOE plans to further reduce the number of lower- and upper- secondary TTIs by consolidating the training programs and institutions, redeploying redundant staff to the classroom, and transferring facilities into secondary schools by 1993; and, (c) streamlining administrative functions at secondary level through redeployment of non-teaching staff according to revised staff allocation rules. Preliminary conclusions of the on-going study on non-teaching staff in secondary schools indicate overstaffing in certain categories and uneven distribution in secondary schools. A large proportion (25%) of non- teaching staff, most of whom are qualified teachers, woud be reassigned to teaching functions at primary and secondary levels. These measures would generate recurrent expenditure savings estimated at US$15.0 million per year when fully implemented in 1995 (equal to all non-salary expenditures for primary education in 1988), and might lead to deferring substantial teacher training capacity investments beyond that period. In addition, MOE is introducing measures to sustain quality improvements by establishing specific cost norms and budgetary allocations for primary education expenditures on educational materials, teacher supervision, staff training, and school maintenance. II - THE PROJECT A. Introduction. 2.01 The proposed project was identified during the early stages of implementation of the Education Sector Reform Program. The project was prepared in February/ March 1988 and appraised in June/July 1988. Negotiations were held in Washington in January, 1989. B. Project Obiectives and Scope. 2.02 The proposed pro4ect would assist the Government to achieve rapid, yet sustainable expansion and improvement of primary education. To this end, and as part of the Government's Primary Education Program (Annex 7), specific objectives are: (a) to increase access to primary schooling in rural areas by providing classrooms and related school facilities (para. 1.10); (b) to increase rural primary education attendance, particularly for females, by improving accessibility of educational materials and introducing community incentives to encourage families to send children to school (para. 1.14); (c) to improve the quality of primary education by strengthening curriculum development and learning achievement testing, improving availability of educational materials, improving teacher training and deployment, improving  - 12 - multigrade teaching, strengthening the role of school principals, and reinforcing school health services (paras. 1.21-1.26); (d) to strengther- planning, monitoring and evaluation capacity by improving school mapping services and enhancing monitoring and evaluation capabilities (paras. 1.28-1.29); and (e) to strengthen the efficient and rational utilization of resources in primary education (para. ). C. Detailed Project Description. Increased Access and Improved Facilities. (US$125 million, 88% of total project costs) 2.03 The project would support the Government's PEP which aims at increasing access to primary education in rural areas by: (a) constructing, furnishing and equipping about 11,600 new classrooms (of which about 40% to existing schools) and about 1,400 school canteens; (b) constructing and eauipping about 2,900 new staff houses; (c) furnishing about 1,500 headmasters' offices; and, (d) constructing on an experimental basis about 120 new sanitary facilities and about 120 wells in new and existing schools equipped with a school canteen. Classrooms will have a capacity of 25 places and are expected to be utilized on average for 1.5 classes with application of the six-day rotation schedule '. As a result, by project completion in 1995, enrolments in rural primary schools (boys and girls) are expected to increase by 370,000 (+38%), with participation of girls increasing by 210,000 (+75%), assuming an 8% dropout rate. The gross participation rate would reach 79% and 49% of rural boys and girls, as against 73% and 30% in 1987-88, respectively. During the first two years of project implementation (1989 and 1990), priority would be given to providing additional classrooms to existing schools (central and/or satellite) to accommodate students completing the primary level and to introduce Grade 6 at primary level in September 1990 (para. 1.11), in accordance with the existing school map. Thereafter, priority would be given to opening new, mainly satellite, schools in undersupplied areas according to the revised rural school map to be prepared during the project (para. 2.20). The distribution of new classrooms is estimated in Annex 11. 2.04 The project would assist MOE in carrying out a program to encourage rural communities to participate in the construction and maintenance of primary facilities (i.e. through provision of site, building materials, housing and maintenance). I Under this new schedule implemented in 1986, 3 groups of students are accommodated in 2 classrooms, each group receiving a total of 30 hours of instruction per week (including 28 hours of class contact and 2 hours for physical education) over a six-day schedule. Classrooms are utilized 7 hours per day and 6 days per week for a total of 84 (42 x 2) hours for 3 groups of students for a total of 84 (28 x 3) hours of class contact per week.  - 13 - 2.05 To supervise the school construction program, the project would provide about 50 vehicles to the provincial School Mapping and School Construction units. Operating expenditures and maintenance of vehicles would be met by Provincial Delegations Offices under new guidelines for non-salary expenditures standards (para. ). Increased ParticiRation. (US$9.4 million, or 6% of total project costs) 2.06 Textbooks. Participation of school-aged children, particularly girls, is likely to improve if school-related expenses borne by the family decrease. Availability of affordable materials is also a key guarantor of improved quality. To lower these expenses, the project would finance the acquisition of an initial stock of textbooks to be distributed to school cooperatives who would recover their actual costs through a user fee equal to about one-third of this cost on the basis of average life of textbooks estimated at three years. Students would be issued textbooks for the duration of the academic year, and return them at the end of the school year. Collection of user fees would coincide with the time when cash is generally available in the community (e.g. after harvest). Non-reusable school materials, (e.g. pencils, notebooks, and printed workbooks for math, science, and art in grades 1-3) would be sold to students at cost. Net savings for families are estimated at about half the actual average annual textbook and materials cost per child, equal to more than 5% of the disposable income of most rural families with 3 children in primary school (para. 1.13). 2.07 This program would be implemented in about 15 selected provincial delegations during the first two years of the project and tested before generalization in rural areas. During the initial phase, MOE would identify provincial delegations and specific rural areas in which no private bookstores exist and where cost-effective storage and distribution circuits are available. The program would be administered by MOE Students' Affairs Service which would be responsible for liaison with school cooperatives, operating at the level of a cluster of schools, who would own the books and be responsible for fee collecting and book returns from families. At the school level, financial administration of the school cooperative would be assisted by the school principal. Teachers would provide support and advice to the school cooperative for distribution and sales of materials. Parent-Teacher Associations would be invited to participate actively and support the school cooperative. The school cooperative would administer the scheme, recover the cost and prepare orders for the next year. To promote active involvement of staff, parents and students and facilitate implementation, the project would support institutional development of school cooperatives and Parent-Teacher Associations through specialist services (6 staff-months) to assist in the development of materials and information services, and meeting the costs of printed materials and stationery, information conferences, and related activities. 2.08 Other Initiatives for Increased Female ParticiRation. The project would support direct Government efforts to increase attendance and improve retention of rural girls in primary school through:  - 14 - (a) promotional campaigns to emphasize the benefits of female education. In conjunction with field visits to rural communities, prepare the school construction ?rogram and supervise civil works (para. 2.04), provincial staff would conduct promotional campaigns. A directive on the organization and carrying out of these campaigns will be distributed to promotional Delegations. The project would finance specialist services (12 staff- months) to assist MOE in this design and the provision of promotional materials to be distributed to provincial delegations; and, (b) supporting local initiatives such as: allowing enrolment of girls at an earlier age (5 or 6, especially for those who attended the Quranic School); giving priority to girls for boarding in lower secondary schools; encouraging the establishment of cormunity-supported child-care services for younger siblings; promoting production and distribution of short stories, traditional tales to be used by girls as reading material; developing class materials (illustrations, charts, exercises) better adapted to local conditions and the circumstances of women in the community; providing activities targeted to young parents, especially mothers of school-age children, aimed at helping them understand the school program and activities. The project would finance specialist services (24 staff-months), materials and supplies to support specific initiatives and related actions requested by the communities. MOE, in collaboration with the provincial delegations, would assemble and review the proposals, and monitor their implementation. The Government and the Bank would discuss and review proposals annually, as well as implementation schedules and budgetary requirements (para. 3.09). Improved Quality. (US$6.3 million, or 4% of total project costs) (a) Development of New Curricula and Materials. 2.09 The project would: (a) develop and introduce suitable primary education programs, including multi-grade teaching techniques (para. 1.18); and (b) strengthen the level of expertise of key MOE Department of Primary Education staff through a TA program in the following areas: (i) Curriculum development: specialist services (36 staff-months) and fellowships (72 staff-months) to improve administrative and organizational aspects of curriculum development and utilization of instructional objectives in textbook production and subsequent classroom instruction; (ii) Standardized achievement testing: specialist services (36 staff-months) and fellowships (S0 staff-months) to design and implement a standardized achievement testing program and develop a data base on student achievement (para. 1.19). The project would also finance study visits (12 staff-months) to countries which have successfully developed objective-based primary-level curricula and standardized achievement testing. In addition, the project would  - 15 - finance micro-computers, software, and related materials to support the development of a standardized achievement testing program. (b) Staff Development and Support Program. 2.10 Recruitment of Prospective Teachers. The project would support Government's plan to recruit those teachers most likely to accept lengthy assignments in rural areas (para. 1.21) by assisting MOE to develop and implement appropriate selection procedures and instruments (such as questionnaires and interviews). The project would finance specialist services (12 staff-months) to develop these procedures and instruments, train TTI staff, and disseminate the findings. 2.11 In-service Teacher Training. In order to lay the groundwork for an organized, continuous in-service teacher education program, the project would support institutional development activities to strengthen existing TTIs (para. 1.22). Two TTIs, one in the north (Fez) and one in the south of the country (Marrakech) have been chosen by MOE to become "Centers of Excellence". Staff from these institutions have been directly involved in curriculum development and testing and the pre-investment studies on multi-grade teaching. The project would finance: (a) specialist services (24 staff-months) to develop with teacher trainers informational and developmental seminars for staff, students, and teachers; (b) instructional equipment (copiers, audiovisual equipment, reference books); and, (c) vehicles for transportation of teachers and students. Selected instructors would prepare materials related to regional teacher training activities and teach seminars. The two Centers of Excellence would also develop multigrade teaching practices (para. 2.13) and school principals training programs (para. 2.14). 2.12 Pre-Service Teacher Training. The project would finance specialist services (6 staff-months), training materials and equipment to develop pre-service teacher training on a pilot-project basis at the two Centers of Excellence. These would include: (a) practice teaching in rural areas; (b) instruction on multigrade teaching methodology using the materials that will be developed for in service training; and (c) inclusion of an effective teaching strategies module in the educational psychology course. (c) Multigrade Teaching. 2.13 To strengthen multigrade teaching practices, the project would finance: (a) study tours (4 staff-months) to countries with a well-developed multigrade methodology; (b) specialist services (24 staff-months) to develop detailed curricula integrating subjects and scheduling among the various primary grades; (c) complementary equipment and audiovisual materials for teacher training; (d) local training expenses for about 5,000 multigrade teachers to attend a two-week training course in the two Centers of Excellence and other TTIs equiped with dormitories; and, (e) provision of educational materials for multigrade teaching.  - 16 - (d) School Management. 2.14 To assist MOE in strengthening the School Principals' roles and responsibilities and designing related training programs, the project would finance: (a) 12 staff-months of specialist services to develop training programs and materials in the two Centers of Excellence supported by the project; (b) fellowships (60 staff-months) to universities with a graduate program in school administration and extensive experience in developing countries; and, (c) training materials for seminars to be offered to about 2,000 rural primary school principals (para. 1.24). (e) School Health. 2.15 The project would support priority activities in the areas of health education, coordination of health services, and improved health environment. By project completion, the proposed program would reach all primary schools in Morocco. 2.16 The project would finance training materials to disseminate health education modules in the primary school curriculum (para. 1.25). Training would be organized under the auspices of MOE in the form of short information seminars to familiarize higher level staff from MOE and MOPH on the overall school health strategy and related training goals, and in-service orientation seminars in health and nutrition education to primary level teachers. All primary teachers would be introduced to the health curriculum within five years. This training would be implemented at the school level by the provincial delegation staff, inspectors, and school health assistants. Term and end-of-year examinations would include questions related to health and nutrition, starting with the 4th and 5th grades. 2.17 The project would also assist MOE in key institutional development areas. It would: (a) strengthen dissemination of health information through provision of complementary equipment such as materials for posters, charts and exhibits; (b) strengthen DHSPA management capacity through introduction of a computerized information system. In addition, the project would finance foreign fellowships for key MOE staff involved in school health: 3 staff-months to get acquainted with school health experiences and lessons in countries where successful programs have been developed and implemented; and, 2 staff-months to familiarize with specialized programs offered in school health and to assess the feasibility of applying them to Morocco. 2.18 To increase efficiency of school health services the project would finance the provision of basic technical equipment such as sca.es, eye charts, stethoscopes and 150 light motorcycles to be utilized by nursing staff assigned to rural school districts in the performance of their duties. 2.19 To promote equitable and affordable provision of eyeglasses (para. 1.28). The project would finance 6 staff-months of specialist services to assist MOE in finalizing a feasibility study on all aspects of eyeglasses prescription,  - 17 - assembly and distribution, at affordable prices, including: screening of students, issuance of ophthalmic prescriptions, procurement and distribution of spectacles. Subject to Bank approval of the results of the feasibility study, the project would finance the provision of equipment and materials required thereafter (para. 1.28). During negotiations, agreement was obtained that the Government would provide a feasibility study on the provision and distribution of eyeglasses to the Bank for its review and approval by September 30, 1990 (para. 5.01). Planning. Monitoring and Evaluation. (US$2.5 million, or 2% of project costs) 2.20 School Location Planning and School Mapping Services. In order to strengthen management of school location planning and school mapping services (para. 1.28), the project would assist MOE's Department of School Planning and School Mapping for Primary and Secondary Education (DSPSM) and the School Marping Units in each of the 49 Provincial Delegations in developing a School Mapping Information System (SMIS). A computer-based spatial data base, the SMIS provides a visual representation of the school map to which is attached an electronic data base including information on educational statistics, demography, topography, and social infrastructure. The SMIS would be used to support the production and analysis of educational statistics, for decision-making on appropriate location and distribution of educational facilities, and for monitoring the construction and maintenance of facilities. The SMIS would be developed in MOE and in each of the fourteen Regional Offices. Development and implementation of the SMIS would be undertaken by statisticians and educational planners in MOE, school planning and school mapping regional inspectors and instructors at the Vocational Guidance and School Planning Institute (COPE) in Rabat. Heads of School Planning Units in the Provincial Delegations would participate in data collection and would be trained in the use of the SMIS. 2.21 The project would provide equipment, expert services, fellowships and local training to implement SMIS. Equipment would consist of micro-computers and related software to MOE Statistics and School Planning Divisions, COPE and fourteen regional MOE offices. The project would include 108 staff-months of specialist services to create the data base and to conduct training programs for MOE staff. Expertise would also be developed through 52 staff-months of foreign fellowships to key DSPSM staff who would work in close collaboration with foreign experts to ensure coordination of operations and implementation of SMIS. Short local training programs would be provided to the School Mapping Unit staff in each provincial delegation. 2.22 Monitoring of project-supported activities will be undertaken by MOE's Reform Implementation Task Force (using the same arrangements as for the ESRP to produce annual progress reports). Data will be obtained from educational statistics collected from yearly questionnaires (distributed to schools in November/December), as well as from systematic visits and observations. Specifically, data will be collected on: (a) number and distribution of new school facilities; (b) promotional campaigns for increased female attendance; (e) new intakes in Grade 1 and retention of girls at primary level; (d)  - 18 - distribution of textbooks to students through school cooperatives, costs and collection rates; (e) pre- and in-service teacher and school principal training activities; (f) teacher assignments in new schools; (g) use of housing facilities; and, (h) school health education. MOPH would provide data on school health inspections and servP'es. Annual progress reports would be produced and reviewed with the Bank as part of the annual joint review (para. 3.09). 2.23 To strengthen institutional capacity in evaluation, the project would support MOE's Department of Primary Education and its Division of Curriculum, in designing, conducting and disseminating research in two priority areas related to curriculum development and standardized achievement testing (para. 2.09). In particular, two research projects would be undertaken on the effects of two key inputs on the learning process: textbooks, and teacher training and supervision. Planning and design of these research projects would be finalized in conjunction with the development of standardized achievement testing, a pivotal instrument to measure learning outcomes. The planning phase, expected to be completed by the end of the second year of the project, would be followed by systematic data collection and analysis, and publication of results by the fourth year of the project. To this end, the Department of Primary Education would rely on institutional twinning arrangements with a foreign university/research center in close collaboration with staff and researchers from the Faculty of Education in Rabat, the CNCPRST and the two "Centers of Excellence". The project evaluation activities would, therefore, be used as a training ground for the development of institutional expertise. The project would finance foreign fellowships to universities with strong graduate program in educational evaluation (18 staff-months), specialist services (96 staff-months), micro-computers and software, and data collection and analysis expenses. 2.24 As part of the PEP, and to promote an efficient use of resources, the project would support MOE's efforts to implement policies and procedures to contain education costs and sustain quality improvements at primary level relating in particular to: (a) provision of education material; (b) utilization of educational facilities; and (c) utilization of administrative and teaching staff (para. 1.30). In addition, the project would support the development and carrying out of a suitable program of periodic maintenance of the primary schools facilities (para. 3.14). III - PROJECT COSTS. FINANCING. MANAGEMENT AND IMPLEMENTATION A. Prolect Costs. 3.01 Summary of Project Costs. Project costs are estimated at DH 1,336 million or US$165 million equivalent. A summary of project costs by project item is shown in Table 3.1. Project costs by category of expenditure are shown in Table 3.2. Details of project costs are shown in Annex 12. These costs include civil works, professional services, furniture, equipment, vehicles, educational materials, and technical assistance.  - 19 - Table 3.1 SUMMARY OF PROJECT COSTS Local Foreign Total Local Foreign Total Foreign X Total ------------------------- ------------------------- as X of Base (DH million) (US$ million) Total Cost A. Increased Access and Improved Facilities School Construction Program 621.4 389.2 1,010.6 76.6 48.0 124.6 39% 87$ Civil Works Supervision 3.9 6.0 9.9 0.5 0.7 1.2 601 1X Sub-Total 625.3 395.2 1,020.5 77.1 48.7 125.8 39X 88X B. Increased Participation Textbooks and Educ. Materials 29.0 43.4 72.4 3.6 5.4 9.0 60X 62 Increased Female Particlpation 1.7 1.7 3.4 0.2 0.2 0.4 52 o02 Sub-Total 30.7 45.1 75.8 3.8 5.6 9.4 602 62 C. Improved Quality Development of New Curricula 1.7 9.7 11.4 0.2 1.2 1.4 852 1X Teaching Staff Development 2.5 9.5 12.0 0.3 1.2 1.5 792 12 Multigrade Teaching 1.7 4.7 6.4 0.2 0.6 0.8 74X 1X School Management 0.6 1.5 2.1 0.1 0.2 0.3 742 0O School Health Services 6.1 12.1 18.2 0.8 1.5 2.3 662 22 Sub-Total 12.6 37.5 50.1 1.6 4.7 6.3 752 42 D. Planning, Monitoring and Evaluation School Mapping 2.3 5.8 8.1 0.3 0.7 1.0 722 12 Monitoring and Evaluation 2.6 9.2 11.8 0.3 1.2 1.5 782 12 Sub-Total 4.9 15.0 19.9 0.6 1.9 2.5 752 22 __= = == = _____= Total Base Cost 673.5 492.8 1,166.3 83.1 60.9 144.0 422 1002 Physical Contingencies 44.2 32.4 76.5 5.4 4.0 9.4 42X 72 Price Contingencies 54.5 39.0 93.6 6.8 4.8 11.6 42X 82 a Pc - -- = . Total Prolect Costs 772.2 564.2 1,336.4 95.3 69.7 165.0 422 115X  - 20 - Table 3.2 PROJECT COSTS BY CATEGORY OF EXPENDITURE Local Foreign Total Local Foreign Total Foreign X Total --------------------------- --------------------------- as X of Base CATEGORY OF EXPENDITURE (DH million) (USS million) Total Cost A. Civil Works 471.8 277.2 749.0 58.2 34.2 92.4 37X 64X B. Professional Fees 58.2 16.4 74.6 7.2 2.0 9.2 22X 6X C. Furniture 90.0 90.0 180.0 11.1 11.1 22.2 50X 15X D. Equipment 3.1 13.2 16.3 0.' 1.6 2.0 81X 1X E. Vehicles 1.7 7.2 8.9 0.2 0.9 1.1 811 1X F. Educational Materials 35.9 53.8 39.7 4.4 6.7 11.1 60X 8X G. Technical Assistance 12.8 35.0 47.8 1.6 4.4 6.0 731 4X ______ --- ;__ ______- ------ -- -- ------__ __ __ _ Total Baseline Cost 673.5 492.8 1,166.3 83.1 60.9 144.0 42X 100X Physical Contingencies 44.2 32.4 76.6 5.4 4.0 9.4 42X 7X Price Contingencies 54.5 39.0 93.5 6.8 4.8 11.6 42X 82 Total Project Cost 772.2 564.2 1,336.4 95.3 69.7 165.0 421 115X 3.02 Basis of Cost Estimates. The costs of construction are based on recently awarded contracts for prefabricated facilities in rural areas under the Education Sector Reform (Loan 2664-MOR). Costs of professional services comprise fees for architectural and engineering works including the preparation of prototype designs for central schools, site development plans, site survey, soil tests and analysis, and on-site supervision of construction. Costs of furniture, equipment and educational materials are estimated on the basis of lists and specifications in recently awarded contracts. Technical assistance costs have been estimated on the basis of recent prices for comparable technical assistance in the region. Base cost estimates reflect prices as projected in November 1988. 3.03 Custom Duties and Taxes. Project costs include an estimated US$25.0 million in direct and indirect taxes on locally procured civil work costs (US$16.9 million), locally manufactured furniture, equipment and educational materials (US$7.9 million), and locally procured technical assistance (US$0.9 million). Goods imported directly for use by Government ministries are exempt from customs duties. 3.04 Cost Rer Student. Construction costs per student are estimated at an average of US$267 per student place. Furniture and the initial stock of educational and special materials are estimated at an average of US$85 per student, and compare with other Bank-financed facilities for basic education. 3.05 Contingency Allowances. Project costs include US$9.4 million for physical contingencies, equal to 7% of the estimated cost of the project. Price contingencies up to the end of project implementation are estimated at US$11.6 million equivalent, or 8% of base cost. Total contingencies represent 15% of base cost. Annual rates of price increases have been applied for all categories at  - 21 - the following annual rates for foreign and local costs: 3.0% in 1989 and 1990 and 4.0% thereafter. 3.06 Foreign Exchange Component. The foreign exchange component was estimated as follows: (a) civil works - 37%; (b) professional services - 22%; (c) furniture - 50%; (d) equipment and vehicles - 81%; (e) educational materials - 60%; and (f) technical assistance - 73%. These percentages have been determined by: (a) estimating the indirect foreign exchange cost of construction, furniture and educational materials; (b) assuming that all equipment would be imported; (c) assuming that the foreign exchange cost of specialist services :;ould be 85% for foreign specialists and 20% for local specialists; and, (d) assuming that the cost of foreign training would be 95% foreign and that of local training 20%. Including contingencies, the resulting foreign exchange component is estimated at US$69.7 million, or 42% of total costs. 3.07 Recurrent Expenditures. Under the proposed project, additional recurrent costs would be generated by: (a) the recruitment of teachers to staff rural classrooms; (b) needs for incremental operating budgets to sustain the proposed improvements in curriculum development, teacher training, school health services, headmasters training; and, (c) the need for supplies and maintenance of vehicles to be provided to School Mapping Units, Teacher Training Centers of Excellence, and School Health Services. Recurrent costs would also be generated by building maintenance. In the course of annual reviews, the Government would prepare and send to the Bank for its review the budget proposals for non-salary expenditures (para. 3.09). The total incremental recurrent costs generated by these items when all project schools are fully operational in 1995 are estimated to be about DH500 million in 1988 prices. Savings generated by project-supported measures are estimated at DH120 million (constant 1988 DH) when fully operational (para. ). Net incremental recurrent costs represent about DH380 million or about 5.3% of the 1988 MOE recurrent budget in 1988 prices, and are expected to be fully sustained because of the high priority that the Government attaches to the proposed project. B. Project Financing 3.08 The total project cost of US$140 million equivalent net of taxes would be financed as follows: (a) the proposed IBRD loan of US$83.0 million would finance 60% of total project cost; (b) the proposed African Development Bank (ADB) Loan would finance an additional US$40.0 million or 29% of total project cost '; and, (c) the Government would finance the remaining US$17.0 ' The proposed ADB loan would finance, on a parallel basis, about 36% of the construction program for classrooms, canteens and staff housing, and the furniture for these facilities. It would also finance the pilot program for provision of water and sanitary facilities, and the related technical assistance program to strengthen school construction supervision. Disbursements under the proposed ADB loan would be made according to the same terms as for the IBRD Loan (para. 3.24). It is expected t.'at the ADB loan will be negotiated in February 1988, and submitted to their Board in March 1989.  - 22 - million or 11% of total project cost; the Governement would also finance US$25.0 million equivalent in direct and indirect taxes. The proposed IBRD and ADB loans would finance 100% of the foreign exchange component (US$69.7 million) and 76% of local costs excluding taxes. Project financing would be in accordance with Table 3.3. Table 3.3 FINANCING PLAN (US$ million) Goverrument IBRD ADB TOTAL Est'd Financing (x) Categories of Expenditures ---------------------------------------------- ------------------- (USS Million) Gov't IBRD ADB Civil Works 8.1 48.8 29.2 86.1 10X 57% 33% Professional Fees 5.5 5,5 100% 0S 0% Furniture 2.1 11.5 6.7 20.3 10% 57% 33% Equipment, Vehicles and Educational Materials 0.6 12.3 12.9 52 952 02 Technical Assistance 0.5 4.0 1.1 5.6 02 842 162 Unallocated 0.2 6.4 3.0 9.6 Sub-Total (Total Project Costs Net of Taxes) 17.0 83.0 40.0 140.0 i1% 602 292 Taxes 25.0 25.0 100% 0% 0% Total Project Costs 42.0 83.0 40.0 165.0 25% 50% 25% C. Proiect Management and implementation. 3.09 Coordination. The proposed project would be implemented by existing operational units in charge of each project activity in MOE and MOPH. Overall coordination would be ensured through MOE's Commission de la Reforme Educative, formally established under the Education Sector Reform Program (Loan 2664-MOR). The Commission, under the authority of the Minister of Education, comprises the Secretary General for Primary and Secondary Education and the Directors of the key MOE departments involved in the project. The Commission appointed the Reform Implementation Task Force chaired by the Director of MOE's Department of School Planning and School Mapping for Primary and Secondary Education (DSPSM) to assist in supervising implementation of the project. The Task Force would support the Commission in the following areas of project implementation: (a) coordination among MOE Departments; (b) coordination with MOPH's Technical Department; (c) monitoring and reporting; and (d) liaison with the Bank. Past experience in the Bank-financed Education Sector Reform Loan implemented by the Commission has been satisfactory. As part of regular supervision activities, the Government would prepare and send to the Bank an annual progre-ss report and the proposed implementation schedules and detailed costs and budgetary requirements for project-supported activities covering the next calendar (i.e. budget) year. 3.10 ImRlementation of Project Components. Under the coordination of the Task Force, project components would be implemented as follows:  - 23 - (a) School Construction Program. Under the general guidance of MOE's DSPSM and its School Construction and Equipment Division, MOE would implement this program through its Provincial School Construction Units. Implementation of the construction program and delivery of equipment and materials would be monitored by Provincial Delegations' technical staff. The annual construction program would be reviewed jointly with the Bank in the context of the preparation of MOE investment program for the following year (para. 3.09). MOE School Construction and Equipment Division would also maintain project accounts. (b) Textbooks and Educational Materials. Textbooks and non-reusable educational materials would be procured through MOE Central Procurement Services and distributed to the school cooperatives by the Central Student's Affairs Directorate under the Department of Primary Education. Textbooks can be purchased by MOE from the publishers at 25% discount under contract arrangements (para. 1.14). Non-reusable educational materials would be procured in bulk from local and international suppliers. MOE Student's Affairs Service would be responsible for the selection of provincial delegations, the design and implementation of the initial stage, and the monitoring of the program (para. 2.07). Materials would be distributed to the schools by the Provincial Delegations through existing MOE transportation and distribution circuits (for school canteen supply and delivery of equipment provided to schools). Promotional campaigns would be designed and coordinated at the central level by a task force chaired by the Director of DSPSM. Campaigns would be conducted under the direct authority of the Provincial Delegates with assistance from School Mapping and Educational Units at the provincial level (para. 2.08). (c) Curriculum and Staff Development. The Curriculum Development and Staff Training Divisions under the Department of Primary Education would coordinate implementation of the technical assistance program and project activities to be conducted in teachers' recruitment (para. 2.10), pre-and in- service training in the two Centers of Excellence (paras. 2.11-2.12), and strengthening of multi-grade teaching and school administration (paras. 2.13 and 2.14). Revised recruitment procedures would implemented in close collaboration with MOE Department of Personnel. (d) School Health. Under the responsibility of the Minister of Education, the Director of DHSPA would coordinate the school health program in close collaboration with the MOPH's Director of SCHSU. Under the project, DHSPA would be responsible for implementation of the school health education program, related training programs and studies (paras. 2.17), and for undertaking the feasibility study on the provision and distribution of eyeglasses (para. 2.19). In addition, MOE's DHSPA would be r-sponsible for the school visit program (para. 2.18) in close collaboration with the MOPH' SCHSU staff. (e) School Mapping. The management and administrative support for the implementation of the proposed School Mapping Information System component would be provided by key MOE staff under the DSPSM (paras. 2.20-2.21). These would include representatives from the School Mapping, Education Statistics and Special  - 24 - Studies Divisions, the COPE, and School Planning Inspectors. Key staff has already been identified, and appropriate office and support staff are available. (f) Monitoring and Impact Evaluation. MOE's Reform Implementation Task Force would be responsible for collecting data and producing monitoring progress reports (para. 2.22). Impact evaluation activities would be conducted by the Division of Programs under the Directorate for Primary Education (para. 2.23). 3.11 Architectural Design Services. School facilities would be identical with those provided under the ongoing Education Sector Reform Program (Loan 2664- MOR). Satisfactory design for sanitary facilities exist. 3.12 Sites. Acquisition of sites is the responsibility of an MOE commission already in place in each of the 49 provinces. In accordance with previous arrangements these commissions would acquire sites one year in advance based on the school construction program and the school map. 3.13 Environmental Impact. Construction of the primary schools is expezted to have a negligible impact on the physical environment because of the small size and modular nature, with minimum foundations, of most structures. On an experimental basis, sanitary blocks and septic tanks will be provided to about 120 rural schools under the proposed project (para. 2.03). Important benefits are expected from increased environmental hygiene awareness components in the school health program and the provision of sanitary facilities. D. Maintenance. 3.14 Maintenance. Although the existing facilities (mainly prefabricated units) provided under Bank-financed projects require minimum maintenance and are proving extremely durable, there is currently a lack of funds for minor repairs and regular maintenance (para. 1.32). Under the ESRP, MOE is conducting a study to develop a systematic maintenance program and to explore financing alternatives from the community. Results are to be implemented during the proposed project. This program, which is expected to be ready by September 1989, as part of the Action Plan (Annex 7), is expected to form the basis for revised annual budgetary estimates for maintenance under the regular review program starting in 1990 (paras. and 2.24). E. Procurement. 3.15 Procurement arrangements are described below and summarized in the following table:  - 25 - Table 3.4: Proposed Procurement Procedures (US$ million) Category of Procurement Method Total Cost Expenditures Including ICB LCB Other Contingencies Civil Works 66.6 0.4 39.9 106.9 (51.7) (0.3) (0.0) (52.0) Professional Services 0.0 0.0 10.0 10.0 (0.0) (0.0) (0.0) (0.0) Equipment and Vehicles 1.9 1.1 0.3 3.3 (1.7) (0.9) (0.3) (2.9) Furniture 16.2 0.0 9.5 25.7 (12.0) 0.0 (0.3) (12.3) Educational Materials 1.1 0.0 11.5 12.6 (1.0) (0.0) (9.8) (10.8) Technical Assistance, 0.0 0.0 6.5 6.5 Training and Studies (0.0) (0.0) (5.0) (5.0) Total 85.8 1.5 77.7 165.0 IBRD Financing (66.4) (1.2) (15.4) (83.0) Note: Figures in parenthesis are the respective amounts financed by the IBRD. 3.16 Civil Works. Bids for school construction would be invited in two sets of packages corresponding to the proposed implementation program (para. 2.03). In each set, bids would be invited under International Competitive Bidding Procedures (ICB) in two separate (geographic area) packages which would have an equal value and would be financed by IBRD and ADB separately. These IBRD-financed packages, bids and contract award decisions would be reviewed in accordance with the Bank's "Guidelines for Procurement under IBRD Loans and IDA Credits" (May 1985) which are currently being applied to procurement of the same type of works under ESRP. Based on recent experience, it is expected that civil works contracts will be awarded to local contractors. 3.17 Goods. Except as provided below, goods would be provided under ICB. Goods (including vehicles) estimated to cost between US$25,000 and US$100,000 per contract could, up to an aggregate limit of US$2.2 million, be procured under LCB procedures acceptable to the Bank. Goods estimated to cost US$25,000 or less could, up to an aggregate limit of US$1.1 million, be procured under local shopping procedures acceptable to the Bank. Wells and sanitary facilities, regardless of their cost, could be procured under local shopping procedures  - 26 - acceptable to the Bank. Textbooks could be procured by direct negotiations with the supplier. 3.18 For goods procured under ICB, qualifying domestic manufacturers would receive preference in bid evaluation of 15% of the c.i.f. bid price of such goods or the prevailing import duty, whichever is less. 3.19 Technical Assistance. Proposals for TA would be invited as follows: (a) a comprehensive institutional development package to MOE including specialist services and fellowships for (i) curriculum development, (ii) standardized achievement testing, (iii) teacher admission criteria and inservice training, (iv) multi-grade teaching, (v) school management and, (vi) monitoring and evaluation. To the extent possible, a comprehensive contract would be sought from universities and / or international organizations that would interface with local institutions to develop capacity in the country (para. 2.23); and, (b) four separate packages for (i) school mapping services, (ii) feasibility study on the production of eyeglasses, (iii) study tours on school health services and, (iv) adult literacy program development. To keep the bidding and evaluation process manageable, not more than six qualified institutions or firms would be requested to submit proposals. The consultants would be selected in accordance with principles and guidelines acceptable to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" (August 1981). Terms of reference and schedules of implementation for specialist services, fellowships, training programs, and details of the studies to be conducted have been discussed during appraisal, and were reviewed and finalized during negotiations. 3.20 Local competitive bidding procedures to be used under the project are those generally used by the Government. There are, however, a few procedures which require modifications in order to ensure that the- are consistent with the needs for economy and efficiency, and acceptable to the Bank (Annex 13). During negotiations, agreement was obtained that LCB procedures used for procurement under the proposed loan would be carried out under procedures acceptable to the Bank. 3.21 Review of Bid Documents and Contracts. Invitations to bid and the proposed award of contracts would be reviewed by the Bank for all ICB contracts estimated to cost the equivalent of US$200,000 or more. It is estimated that this review would cover all civil works contracts financed by the Bank (US$52.0 million equivalent) and about 80% of all equipment, furniture and educational materials contracts (US$15.6 million). Other contracts would be subject to selective post award reviews by the Bank. F. Status of Preparation. 3.22 The project is in a state of preparation that will permit timely implementation because: (a) preparation of designs and tender documents for school facilities (largely based on standard prefabricated units already being procured under the Sector Reform Loan) are nearly completed for the first phase of the school construction program; (b) lists of equipment, furniture and  - 27 - educational materials for about 90% of project items have been prepared and bid specifications a;:e nearly completed; and (c) all major portions of the technical assistance program have been defined and detailed terms of reference have been finalized. Bids are expected to be invited early in 1989. The disbursement profile for EMENA education projects is 8 years with 80% being disbursed over seven years. In view of the advanced state of preparation, the proposed project is expected to be completed in about six years (1989-1995) based on implementation capacity under the Education Sector Reform Program Loan (currently 63% disbursed and fully committed, after 24 months). Project completion would be June 1995 and the Closing Date would be December 1995. G. Disbursements. 3.23 Disbursements from the Bank loan would be made against: (a) 80% of expenditures for civil works; (b) 100% of foreign expenditures, 100% of local expenditures ex- factory cost and 80% of local expenditures for other locally procured furniture, equipment, vehicles and educational materials; (c) 100% of expenditures for technical assistance including specialist services and fellowships. 3.24 Disbursements from the proposed loan are expected to take place on average about six months after expenditures are incurred. A disbursement schedule is attached in Schedule 4. Disbursements are expected to be completed by December 31, 1995. 3.25 D)isbursements for the above items would be made upon receipt by the Bank of fully documented applications, except for expenditures under contracts valued at less than US$200,000 equivalent, which would be made against certified statements of expenditures (SOE). Supporting documentation for SOE would be retained by the implementation agency and made available for review by the Bank during supervision. Direct payment applications and application for special commitments would be accepted for minimum amounts of US$100,000 equivalent. H. Special Account. 3.26 To facilitate timely project implementation, the Government would establish, maintain and operate under terms and conditions satisfactory to the Bank, a Special Account in Dh at the MOF's Treasury General to which the World Bank would make an initial deposit of DH50.0 million, equivalent to a four-month average Bank disbursement. The Special Account would be replenished on a monthly basis when the equivalent of a minimum of USSl.0 million or a third of the amount of the initial deposit has been withdrawn from the Special Account, whichever comes first.  - 28 - I. Accounts and Audits 3.27 Accounts and Audits. The Government would open separate accounts for expenditures financed by IBRD and ADB, and would maintain records and accounts relating to the proposed project. Project accounts, including the Special Account (para. 3.26), would be audited by independent auditors in accordance with the March 1982 Bank "Guidelines for Financial Reporting and Auditing of Projects Financed by the World Bank". During negotiations, agreement was obtained that, within six months of the end of each fiscal year, the Government would provide to the Bank an audit report of such scope and detail as the Bank may reasonably request, including a separate opinion by the auditor on disLarsements made on the basis of statement of expenditures. J. Suspension Remedies 3.28 Co-financing will not be required until 1990. However, should the Cofinancing Agreement with ADB not become effective by June 30, 1990, and no other sources of funds be available to implement the project, the Bank may suspend disbursements. Delays in mobilizing the ADB funds within the first year of the project is not expected to affect overall implementation since it will be applied to parallel financing of separate geographical areas. IV. BENEFITS AND RISKS A. Benefits 4.01 The proposed project is expected to yield very significant private and social benefits. Access to education would be provided to children in remote and sparsely populated areas which are not currently served and where the direct returns to basic education are expected to be substantial. Rural enrolments are expected to increase by about 38%, with participation of girls increasing by about 75% (based on similar absolute increases during the project period, but a much lower existing enrolment base for girls). Teachers in rural areas would be better qualified and motivated. 4.02 The provision of low-cost school textbooks and school materials is expected to encourage parents to send children to school and to enhance quality and retention. Incentives to school cooperatives, through information and financial means, to procure low-cost, reusable school materials will also have a beneficial impact. This approach is expected to create sustained effects in delegating to communities authority and responsibility for increasing access and quality of their children's education. 4.03 The project will offer innovative approaches for increasing enrolment rates of rural girls. Female education, in addition to its equity aspects, has strong positive externalities associated with health, employment, productivity, and family composition.  - 29 - 4.04 The project is also expected to lead to gains in pupil achievement. Wide use of textbooks along with curricular and methodological improvements, attention to in-service training of teachers, and improvement in school management methods, would not only increase literacy and numeracy, but would also deliver these skills with greater efficiency, thus inducing students to stay in school. Students attending multigrade classrooms, in particular, will receive a significantly larger amount of time on-task. Attention to school health would reduce morbidity-related non-attendance and dropout rates. 4.05 The project is expected to contain the growth of incremental expenditures that will necessarily follow enrolment growth, through rationalization of teacher employment, training resources and policies, and non- teaching staff allocation. B. Risks 4.06 Based ol. past experience, the project faces risks of delays in implementation, largely due to budgetary constraints. To diminish this possibility, a public investment review was held in June 1988, and a realistic core investment program including the proposed project was reviewed and finalized within the framework of the Structural Adjustment Loan. Budgetary constraints might also affect funding for the distribution of educational materials to students. To minimize these risks, specific norms for non-salary expenditures would be established and monitored annually by the Bank (para.1.31). 4.07 If public higher education expenditures continue to accelerate, greater pressure may be created to shift resources from primary education. The authorities are aware of this and have taken partial steps despite a difficult social context to control the expansion of university intakes, including through the recent revision of the end-of-secondary examination system. Intakes have stabilized in 1988 as a result, but renewed acceleration is possible. In the longer run, the only sustainable solutions involve changes in the demand for higher education, brought about mainly via the structure of private costs and benefits (market-based wage structures in the public sector, for example) and including through more efficient and equitable targeting of public subsidies, however difficult this may be to implement in the immediate social context. The Bank is currently assisting the Government to review alternative organization, management and financing policies for higher education in this light. 4.08 Project components to stimulate female enrolment and to provide low- cost textbooks to school cooperatives will be implemented for the first time in Morocco. It is entirely possible that outcomes fall short of expectations. Information campaigns may not reach all rural areas or may be less effective than predicted. School cooperatives may not be given the full administrative support necessary to carry out their activities. The traditional administrative role of school directors may prevail over attempts to create a management style which is better suited to collaborate with communities. Various determinants of school attendance beyond the administration's control, which are not well-understood now, could loom larger in family decisions than conventional wisdom implies. The project will serve sparsely populated areas located far from decision-making  - 30 - centers, and is, therefore, deliberately testing the limits of formal educational development methodology. These initiatives have however obtained clear endorsement from central authorities. In addition, the project will utilize detailed, continuous monitoring to develop timely intervention strategies during project implementation and to profit from lessons learned. V - AGREEMENTS REACHED AND RECOMMENDATIONS 5.01 During negotiations, assurances were obtained that no later than September 30, 1990, the Government will complete and send to the Bank for its review, comments and approval the feasibility study on the provision and distribution of eyeglasses pr,pared by MOE and take into consideration the Bank's comments in implementing th,. recommendations/programs (para. 2.19). 5.02 Subject to the above conditions, the project will provide a suitable basis for a Bank loan of US$83.0 million equivalent to the Government of Morocco.  - 31 - ANNEX 1 Page 1 of 2 KINGDOM OF HOROCCO RURAL PRIhARY EDUCATION PROJECT STAFF APPRAISAL REPORT Evolution of Public-School Enrollments by Level 1957/56 1966/67 1q67/68 I969/69 1969/1970 1970/71 1971/72 1972/73 1973/74 1974/75 1975176 1976/77 (Grades 1-5) Urban N/A 573,131 614,651 660,081 703,340 743,970 792,293 827,542 873,580 925,556 973,091 1,056,972 Hale N/A 333,050 352,606 379,181 402,350 446,642 422,002 471,491 492,717 520,302 545,263 592,t640 Female N/A 240,091 262,045 280,900 300,990 297,328 370,291 356,051 380,863 405,254 427,829 464,332 Rural N/A 422,992 414,551 396,540 377,474 378,000 379,014 398,465 410,146 439,322 501,915 546,900 ;ale N/A 367,967 358,408 341,042 322,973 303,576 321,117 324,583 340,744 361,586 405,302 439,279 Female N/A 55,025 56,143 55,499 54,501 74,424 57,897 63,882 69,402 76,736 95,613 107,621 Total 481,368 996,023 1,029,202 1,056,621 1,090,814 1,121,970 1,171,307 1,216,007 1,283,726 1,363,978 1,475,006 1,603,872 SECONDARY (Grades 6-12) First-Cycle Secondary (Grades 6-9) Rale 24 -- N/A -- -- -- -- -- -- -- N/A 229,294 Feuale I -- N/A -- -- -- -- -- -- -- N/A 126,882 Total 25 168,222 206,273 219,324 226,430 N/A 228,652 241,527 N/A 281,979 319,805 356,176 Second-Cycle Secondary (Grades 10-12) Rale 2,B99 -- N/A -- -- -- -- -- -- -- N/A 76,546 Female 1,096 -- N/A -- - - -- -- -- N/A 32,335 Total 3,985 23,943 23,354 29,293 37,403 N/A 55,724 64,749 N/A 84,691 92,145 10,89891 Total Secondary 4,010 212,165 229,627 249,617 263,833 269,390 294,376 306,275 337,199 366,570 410,952 465,057 H16HER EDUCATION N/A 5,386 6,268 9,367 10,277 11,143 13,360 19,794 20,905 26,788 35,027 45,085 #Excluding teacher training. Source: Statistiques de l'Enueigneeent Prisaire et Secondaire (various years), Le Houvement Educatif au Haroc (various years), guestions de ['Enseignement Au Haroc (Bulletin Economique at Social du Nlroc, Nos. 143-146), Annumire Statistique du Haroc, 1983, and unpublished HOE data.  - 32 - ANNEX 1 Page 2 of 2 KINGDOM OF MOROCCO RURAL PRIMARY EDUCATION PROJECT STAFF APPRAISAL REPORT Evolution of Public-School Enrollaunts by Lnvel (Continued) 1977/79 1978179 1979180 1990/81 1981/82 1982/83 1983/04 1984195 1985/86 1996/87 1987988 PRIMARY - (Grades 1-5S Urban 1,119,463 1,187,098 1,239,490 1,287,957 1,355,110 1,312,596 1,259,403 1,149,746 1,157,972 1,1147,481 1,149,579 HMle 622,958 661,474 699,475 711,728 746,713 716,215 683,000 622,512 621,613 615,599 615,707 Female 495,505 515,614 550,005 576,229 &09,397 596,371 575,466 527,234 536,259 531,982 532,842 Rural 611,706 670,307 745,192 819,142 885,450 1,064,982 1,147,332 1,056,592 1,045,074 1,001,946 954,007 "ale 484,965 523,734 573,190 619,843 661,326 768,899 919,741 751,718 741,824 712,722 679,629 Fesalo 126,741 146,573 172,012 198,299 224,124 296,093 328,591 304,864 303,250 299,224 274,379 Total 1,730,169 1,957,395 1,984,672 2,106,099 2,240,560 2,377,569 2,405,735 2,206,328 2,202,946 2,149,427 2,102,586 SECONDARY (rade 6-12) First-Cycle Secondary (Grades 6-9) Male N/A 283,078 305,252 329,929 351,399 379,497 403,583 439,522 479,958 527,479 575,430 Female N/A 169,191 189,660 206,721 224,326 245,264 265,242 290,193 322,878 360,9981 396,495 Total N/A 452,259 494,912 535,650 575,714 624,751 669,825 729,715 802,936 998,460 971,925 SKeond-Cycle Secondary (Grades 10-12) Male N/A 103,907 122,145 142,207 158,075 174,358 186,590 IJS,487 191,794 193,026 189,627 Female N/A 49,010 61,039 76,292 99,465 103,125 114,696 114,320 1189,394 120,110 1l9,915 Total N/A 152,817 183,193 218,499 247,540 277,493 301,286 29,9807 310,179 313,736 307,542 Total Secondary N/A 605,071 678,095 754,139 923,354 902,234 970,111 1,029,522 1,113,014 1,202,196 1,279,467 HISHER EDUCATION 53,200 62,296 74,465 86,731 96,953 93,115 99,637 119,920 134,9855 139,965 157,494 #EKcluding teacher training. Sources Statistiques de I1Ensuigneaent Prisaire et Setondaire (various yearsl, Le Mouvennt Edutatif au Maroc (various yearsl, Questions de IEnseignmnent Au Maroc (18dletin Economiqum et Social du Maroc, Mos. 143-146), Annumire Statistique du Marc, 1983, and unpublished MOE data.  KINIDU OF NOnMCcI MRL PRIHARY EWCWATION PRWECT Evolution of the NIOE Budget as a Share of Total 6overnent Budget and BP, 1975-1998 (In Nillions of Current DH, Except as Noted) 1975 1976 1977 1978 1979 1980 1981 1982 1993 1984 I5 1966 1987 1989 A. LEELS lie Nhllions of Current Dirhams) dl d/ Gor Doecstic Product n/ 36,411 42,356 49,761 55,154 62,043 70,161 76,737 S0,089 94,635 105.840 119,310 134,334 136,970 155,277 NOE Budget bi Reurret 1,319 1,796 2,202 2,664 3,173 3,519 3,974 4,692 5,264 5,434 6,079 6,536 6,887 7,249 Investmnt 579 751 826 757 936 839 1,243 1,832 1,961 1,309 1,619 2,783 2,505 2,206 Total 1,699 2,549 3,029 3,422 4,010 4,357 5,216 6,524 7,225 6,742 7,697 9,319 9,392 9,454 Bowneent Budget bi RKurrat 9,463 9,091 9,936 11,349 12,922 15,134 15,357 19,105 18,959 19,251 21,294 22,099 23,677 25,134 Invstmnt cl 6,288 9,864 11,74 9,128 8,736 8,429 9,997 16,807 13,570 10,155 12,202 20,503 19,924 16,051 Total 15,751 18,94 21,690 15,477 21,558 23,562 25,354 34,912 32,429 28,406 33,565 42,602 43,601 41,195 di 6DP Deflator (1975 : 100) 100.0 101.5 109.5 125.4 134.6 146.8 162.7 178.8 183.6 199.2 217.1 231.0 233.5 249.6 IOE Budget (Constant 1975 DRI) RKcurrent 1,319 1,770 2,029 2,124 2,358 2,397 2,442 2,624 2,867 2,728 2,800 2,630 2,949 2,904 Investment 579 740 761 603 621 571 764 1,025 1,068 657 745 1,205 1,073 984 Total 1,699 2,510 2,79' 2,729 2,979 2,968 3,206 3,649 3,935 3,384 3,545 4,034 4,022 3,787 9. BUDGET SNARES (in 1) NOE Budget I 6overnent Budget Recurrent 13.9? 19.9? 22.21 23.5? 24.71 23.3S 25.9? 25.9? 27.91 29.69 28.6S 29.6? 29.1? 28.9? lovesteent 9.2? 7.61 7.0? M. 9.6? 9.9? 12.4? 10.9? 14.5? 12.9? 13.2? 13.6? 12.6? 13.7? Total i2.0o 13.4? 14.0t 17.6? 19.6? 19.5S 20.6? 18.7n 22.3? 23.7? 22.9? 21.9? 21.5? 23.0? MIHE Budget 1 6DP 5.2? 6.0? 6.12 6.2? 6.5? 6.27 6.9? 7.2? 7.6? 6.4? 6.5? 6.9? 6.9% 6.12 of Current IBRD Country Tables. Estloated for 1999. bi HF LoI dn Financn, successive pars. c/ Credit Allocations (Cridits de palent) only. d/ Prelietnuary figres.  ANNEX 3 KINGDON OF MOROCCO Page 1 of 5 EDUCATION SECTOR REFORM PROGRAM (LOAN 2664-MOR) ST'TUS OF SPECIAL CONODITIONS. OTHER MEASURES, AND PROGRESS TO DATE OBJECTIVE I - IMPROVE EQUITY OF EDUCATION PoLicy Area SpeciaL Conditions Other Measures Progress to Date for Second Tranche Release I/ GoQ D Xt A. Expand Access to Basic Education (Grades 1 to 9) 0 1. Expand primary (Gr. 1-5) and lower secondary (Gr. 6-9) school intakes a. Expand number of Item A. Construction and By the end of academic year students adnitted to equipping of about 2,600 new 1986-87, 2,275 new classroams were Grade I of primary primary classrooms to be operational. In 1987-88, 2,280 school operational as of the begin- additional classrooms were ning of academic year 1986-87 operational. b. Expand lower secondary Item D. MOE to increase Grade Achieved. The promotion rate school intakes (Grade 6) 5 promotion rate to 54X in increased from 49X in Jure 1985, June 1986. to 55S in June 1986 and 61X in June 1987. c. Promote basic schooling Item C. MOE to initiate study Preliminary study available. in rural areas, with to improve multi-grade teaching Reports to be finalized by mid-89. particular attention to female enrollments HOE to carry out program for In 1986-87 and 1987-88. 898 aidI construction of teacher 1,007 staff houses and 402 and 597 41 housing and student school canteens were completed, cafeterias in rural areas respectively I Give preference to female Graduates from teacher training teachers in assigning institutiorns (all of uhom are teachers to rural primary assigned to rural areas) coaprised schools 59X aid 57X of female teachers in 1986-87 and 1987-88, respectively B. Restrain Growth of Upper Secondary (Grades 10-12) and Higher Education 1. Restrain growth of upjer secondary school intakes a. Reduce Grade 9 promtion Item E. MOE to reduce Grade 9 Achieved. The promotion rate rate promotion rate from 52X in was reduced to .44 in June 1986 June 1985 to 452 in June 1986 and to 422 in June 1987. b. Establish new dipLoma MOE to introduce new diploma Achieved. New diplome introduced for satisfactory in Junte 1986 in June 1986. corpletion of basic education (Grade 9) c. Develop program of Item C. MO to initiate study Preliminary study available. career guidance in lower to develop new career Reports to be finalized by mid-89. secondary schooting guidance program 1/ Actions described in Schedule 6 of the Loan Agreement as conditions of the Second Tranche Release. The Second Tranche was released on September 3, 1987.  ANNEX 3 KINGDOM OF MOROCCO Page 2 of 5 EDUCATION SECTOR REFO0M PROGRAM (LOAN 2664-MOR) STATUS OF SPECIAL CONDITIONS, OTHER MEASURES, AND PROGRESS TO DATE OBJECTIVE I - IMPROVE EOUITY OF EDUCATION (continued) Poticy Area Special Conditions Other Measures Progress to Date for Second Tranche Release 1/ B. Restrain Growth of Upper Secondary (Grades 10-12) and Higher Education (continued) 2. Restrain growth of higher education intakes and enroltments a. Institute control of Item F. MOE to limit overall Condition met for Second Tranche admissions to university growth of new intakes in reLease: new intakes grew by 2.4X faculties university faculties to about from 1985-86 to 1986-87. However, 21 over the preceding they grew by 21t from 1986-87 to academic year 1987-88. In 1988-89, provisional results from end-of-secondary examimation show that new intakes witl be maintained at 1987-88 level. b. Cancel second-phase No new credits to be made No new credits were available in investment program for available for university FY86 and 87. However, the 1988-92 new faculties expansion Development Program includes significant expansion of university faculties. c. Develop end-of-secondary MOE to introduce new Certification not introduced. certification to be certification in June 1986 However, MOE introduced new Ln distinct from passing examination system for upper baccalaureat examination secondary level in 1987-88. d. Diversify university Item C. MOE to initiate study Preliminary study availabLe. courses to prepare credit hour system Reports to be finalized by mid-89. and develop program of short courses 1/ Actions described in ScheduLe 6 of the Loan Agreement as conditions of the Second Tranche Li Release. The Second Tranche was released on September 3, 1987. 0  ANNEX 3 KINGDOM OF MOROCCO Page 3 of 5 EDUCATION SECTOR REFORM PROGRAM (LOAN 2664-MOR) STATUS OF SPEC:AL CONDITIONS, OTHER MEASURES, AND PROGRESS TO DATE OBJECTIVE If - IMPROVE EDUCATIONAL EFFICIENCY Policy Area Special Conditions Other Measures Progress to Date for Second Tranche eltease 1/ A. Progressivety Reduce Repetition X and Dropout Rates in Primary and Secondary Schooling 0 1. Limit total nuber of class MOE to mLintoin new Achieved. At primary levet, totaL repetitions to 2 years in restrictions on class number of repeaters decreaoed from in primary cycle (Grades 1-5), repetition 487,975 in 1984-85 to 360.506 2 years in secondary cycle (-26X) in 1987-88. (Grades 6-12) 2. Develop remedial Item C. MOE to initiate study Preliminary study available. instruction for students to develop program of Reports to be finalized by mid-89. with learning problem remedial instruction 3. lprove suppli of basic Item S. MOE to carry out a Achieved. Educational materials educational materials in program for the distribution for a total value of USn6.7 primary and secondary of educational materials to million schools were distributed schooling primary schools to equrip 3,000 schoots (including new cLassrooms and existing ut.derequipped schools). B. Strengthen Student Performance Incentives in Higher Education 1. Reduce fellowships by 50 Item G. MOE to apply Achieved. Agreed eligibility w for first-time repeat eligibility criteria in the criteria are being strictly students pursuing universi- award of fotlowships to enforced. ty studies in Morocco in a university students in Morocco city other than their place of residence; camcet fetlowships for first-time repeat students pursuing university studies in their city of residence; suspend fellowships for sibsequent class repetitions. 2. Suspend foreign fellowships Item G. MOE to apply Achieved. Agreed eligibility for all students repeating eligibility criteria in the criteria are being strictly more than one year award of foreign fellowships enforced. 3. Limit class repetition to MOE to apply agreed poticy Achieved. Ctass repetition once during the first two criteria are being strictty years of university studies enforced. and once during subsequent two years of studies 4. Develop and implement Item C. MOE to initiate study Preliminary study available. credit-hour system to develop credit-hour system Reports to be finalized by mid-89. 1/ Actions described in Schedule 6 of the Loan Agreement as conditions of the Second Tranche Release. The Second Tranche was released on September 3, 1987..  ANNEX 3 KINGDOM OF MOROCCO Page 4 of 5 EDUCATION SECTOR REFORM PROGRAM (LOAN 2664-MOR) STATUS OF SPECIAL CONDITIONS, OTHER MEASURES, AND PROGRESS TO DATE OBJECTIVE 1II - CONTAIN GROWTH OF PUBLIC EXPENDITURES ON EDUCATION Policy Area Special Conditions Other Measures Progress to Date for Second Tranche Release 1/ A. Restrain Growth of Recurrent Expenditures on Higher Education 1. Impose registration fees in As part of the medium-term MOE has not yet introduced all institutions of higher program, MOE to implement fee registration fees education policy and progressively raise fees to inprove cost recovery 2. Raise tPaching horurs Item H. Maintenance of the Achieved. Average nurmber of hours average nufmber of hours of of instruction has been increased instruction required by all by more than 20 as of the university teachers at a beginning of academic year level at least equivalent to 1985-86, and is being maintained. 120X of the average during academic year ending in June 1985 3. Restore Nancienne formutle" MOE to institute "ancienne "Ancfenne formule" restored, and for teacher training of formule" and to reallocate staff and facilities reallocated lower and upper secondary surplus teacher training to inservice training activities teachers (one-year pedagogi- staff and facilities for cal training following inservice teacher training required entry level) 4. Replace teacher training MOE to maintain policy Policy maintained "pre-salaires" with stipends for all levels of teacher training 5. Reduce fellowships for See Objective 11, 8, 1 and 2 See Objective It, 8, 1 and 2 repeat students (See Item 11, B, 1) > 6. Reduce boarding in Goverrnent to undertake no No new credits were available in 7: Z university facilities; new boarding facilities FY86 and 87. However, the 1988-92 strengthen cost recovery Development Progrem includes significant expansion of boarding o facilities. 7. Tighten fellowships MOE is limiting eligibility Achieved. Liste limitative eligibility criteria for for foreign fellowships reviewed annually and overseas students according to liste limitative fellowships Limited to of specializations qualifying qualifying specializations for foreign study fellowships 8. lapose income criterion for Item G. MOE to implement Achieved. Agreed eligibility fellowship eligibility upon matrix of income ceilings in criteria are being strictly financial need determining eligibility for enforced university fellowships 1/ Actions described in Schedule 6 of the Loan Agreement as conditions of the Second Tranche Release. The Second Tranche was reloased on September 3, 1987.  KINGDOM OF MOROCCO Page 5 of 5 EDUCATION SECTOR REFORM PROGRAM (LOAN 2664-MOR) STATUS OF SPECIAL CONDITIONS, OTHER MEASURES, AND PROGRESS TO DATE OBJECTIVE III - CONTAIN GROWTH OF PUBLIC EXPENDITURES ON EDUCATION (continued) Policy Area Special Conditions Other Measures Progress to Date for Second Tranche Release 1/ a z B. Contain Primary and Secondary School Construction Costs 1. Reduce unit costs of MOE to imp:ement revised Application of revised norms and 0 primary and secondary norms satisfactory to the design resulted in 30X savings for school construction Bank in context of new school conventional construction at VI construction program primary and secondary levels 2. Reduce school reptacement Item C. MOE to initiate study P-eLiminary study avoilable. requirements through to develop maintenance Reports to be finalized by mid-89. inproved school maintenance programs for facilities and equipment at all levels C. Improve Productivity of Education Persomel 1. Reduce ratio of Item C. MOE to initiate study MOE to continue to reduce Preliminary study available. administrative to teaching to identify addt'l measures ratio of administrative to Reports to be finalized by mid-89. staff at secondary level to streamline secondary school teaching staff as per agreed Staff ratios reduced as agreed. administration schedule OD 2. Raise university teaching See Objective 111, A, 2 See Objective [i1, A, 2 hours 3. Raise secondary teacher MOE to maintain policy of Achieved. Policies maintained and productivity increased teaching hours and performance targets achieved. improved plamiing of teacher allocation (developed and introduced in academic year 1985-86) D. Strengthen Private Sector Item 1. Preparation of a Achieved. A system of incentives Participation in Education proposed system, satisfactory to encourage development of to the Bank, of incentives quality private schools was designed to encourage the approved by parliament in June development of quality 1987. In addition, Departments of private schools Private Schooling have been established under Secretariats for Primary & Secondary and Higher Education. Bank reviewed and is satisfied with proposed system of incentives and MOE quality control. Item C. MOE to initiate study Preliminary study available. to develop improved MOE Reports to be finalized by mid-89. support of private schooling I/ Actions described in Schedule 6 of the Loan Agreement as conditions of the Second Tranche Release. The Second Tranche was released on September 3, 1987.  KINGDOM OF tOROCCO RURAL PRIMARY EDUCATION PROJECT EVOLIITION OF PRIMARY LEVEL ENROLLMENT, MET ENROLLMENT RATIO IN 6RADE 1, AND GROSS PARTICIPATION RATE BY MILIEU AND BY SEX FROM AY1980-81 TO A919B7-88 1/ I - URBAN AREA 6RADE / SEI 1980-81 As T 1981-92 As t 192-83 As 2 1983-84 As T 1984-85 As t 1985-86 As I If86-97 As 1 1907-88 As X Tot. Tot. Tot. Tot. Tot. Tot. Tot. Tot. ENROLLMENT 2/ on. Total 198,625 217,437 205,B29 152,727 147,944 227,393 206,093 214,231 Entrants Boys 105,072 532 14,914 53T 107,522 522 80,311 53t 77,357 52? 119,103 521 107,986 522 111,B12 522 in Sr. I 6irls 93,553 47Z 102,523 47? 99,306 492 72,416 472 70.587 482 I09,290 48? 98,197 482 102,419 492 Grade I Total 263,391 286,180 296,481 223,306 186,964 259,710 242,927 250,620 Boys 139,562 532 151,787 532 145,435 492 117,983 532 96,332 532 136,361 532 127,653 532 131,419 522 Girls 123,919 472 134,393 472 131,046 442 105,423 472 89,632 472 123,349 472 115,174 472 119,202 489 6rade 2 Total 234,624 248,404 245,597 245,919 216,998 191,39S 250,204 243,319 Boys 129,371 551 134,916 542 132,575 542 131,326 532 116,422 542 102,903 542 133,422 531 130,167 53? Girls 106,246 452 113,489 462 113,022 46U 114,492 472 100,476 462 E8,496 461 116,782 472 113,151 4n 6rade 3 Total 245,737 254,255 247,317 249,873 245,419 222,290 200,726 246,936 1 Boys 136,778 562 142,089 561 135,294 552 135,926 542 132,757 542 120,819 542 109,296 541 132,844 541 Girls 109,959 442 112,167 441 112,023 452 113,947 461 112,662 461 101,472 461 91,430 462 114,090 461 Grade 4 Total 243,694 251,000 240,126 239,617 236,997 230,006 211,197 191,795 Boys 136,974 561 141,561 562 133,586 561 131,095 552 131,757 562 124,791 542 115,173 551 105,014 551 6irls 106,720 442 109,439 442 106,540 441 109,522 452 105,140 442 105,215 462 96,024 452 96,701 45! Grade 5 Total 300,521 315,271 303,065 299,799 263,508 254,467 242,527 215,9e0 Boys 170,036 572 177,161 562 169,325 56? 166,707 56% I43,244 54? 136,740 542 130,055 542 116,262 542 Girls 130,485 431 138,110 441 133,740 441 133,082 44U 120,324 462 117,727 46U 112,472 462 99,619 46? Total Enroll ent 1,297,957 1,355,110 1,332,5B6 1,258,403 1,149,746 1,15?,972 1,147,461 1,148,549 Boys 711,728 552 747,513 551 716,215 542 692,937 542 622,512 542 621,613 542 615,599 542 615,707 542 6irls 576,229 451 607,5S7 45? 596,371 45? 575,466 461 527,234 461 536,259 46? 531,992 462 532,942 461 NET ENROLLMENT RA0IO IN GRADE 1 3/ Total 972 1041 961 691 652 9il2 861 872 Boys 1012 1092 9"2 71; 672 1002 892 992 6irls 942 1002 932 672 642 952 942 852 6ROSS PARTICIPATION RATES 4/ Total 123.92 127.9S 123.32 114.21 :02.31 101.01 98.,1 96.4? DoYS 134.22 139.31 129.92 121.51 109.62 106.32 103.32 101.31 Girls 113.12 117.0? 112.6? 106.5? 95.72 95.5? 92.92 91.22 1/ Source: MOE Statistical Yearbwks for corresponding years, and MOP Population Estioatn. Enrolleent in public prisary schools only. 4 2/ Enrollment data includes under- IAe6t and over-aged children and repeaters. 3/ Nk. entrants in Grade I over age 7 population. tl Total Enrollment in public urban prioary schools over aQe 7-It population.  KIUINM OF ISURCCO RALK PRIMlY EOUCTION PROJECT EMOLTION OF PRIRMY LEVEL EURLLNT, NET E UNROLI RATIO IN PM*3 1, ANO MMO PARRICIPATION RATE BY NILIEIU *2 BY SEI FMUI 841990-91 TO 841997-08 It GRADE / SEI 3990-91 As 1 1991-82 As 2 1992-93 As?I 1983-84 As Z 3914-95 a, I M-056 As 1 199b47 As 1 399748 AS I "> Tot. lot. Tot. Tot. Tot. Tot. lot. Tot. Grade I Total 180,597 197,137 229,467 193,524 154,296 220o37 196,731 204,649 in, IDYu 127,677 711 336,569 691 152,773 671 30,190 67? 105,233 681 149,890 692 134,386 63 1339,910 691 Entrants Girls 52,920 291 60,569 sit 75,694 331 63,334 331 49,063 321 70,492 321 62,345 321 65,739 321 Grade I Total 247,693 267,256 314,736 292,507 215qO 9,435 234,429 240,700 Boys 176,033 711 196,501 70? 232,493 681 197,120 671 147,240 691 377,195 683 60,975 691 364l,26 691 6irlu 73,660 29? 80,755 303 302,243 321 95,397 33? 67,660 31? 82,240 32? 73,454 31? 76,439 32 Brade 2 total 171,254 199,549 226,783 257,639 243,IM0 192,049 220,629 201,M4 Boys 132,786 743 139,731 731 160,519 731 179,055 69? 167,431 69? 35,1338 703 154,477 70? 141,791 70? Girls 45,468 261 50,938 271 66,264 29? 79,593 31? 75,709 31? 56,910 303 66,152 30? 59,467 301 Grade 3 Total 345,705 160,105 190,629 216,877 229,879 217,299 178,717 192,166b Boys 1322,377 77 122,099 761 140,193 741 256,658 72? 163,639 71? 154,747 71? 129,290 72 139,059 72 Girls 33,129 233 39,016 24? 50,435 26? 60,219 29? 65,243 291 6i,551 29 49,437 29 54,107 29 Grade 4 Total 319,641 229,924 159,296 179,567 195,430 192,074 183,537 351,690 Soya 94,940 791 301,036 791 320,557 76? 133,359 74? 135,924 73 139,9g 7n? 333,134 73 111,754 74?. Girls ?4,7D3 21? 27,899 222 39,729 24? 46,209 26? 49,506 27? 53,165 29 50,403 27? 39,936 26? Grade 5 Total 326,952 139,616 373,549 200,743 i04,233 384,219 194,634 168,195 Boys 303,710 92n 312,969 91? 336,127 79 153,549 761 137,495 75? 135,935 74? 134,956 M3 123,765 74? Sirli- 23,142 19? 26,647 19? 37,422 22? 47,194 24? 46,749 25? 48,394 26? 49,771 27 44,430 26? Total Enrollueot 939,145 98,450 3,064,992 1,147,332 1,056,592 1,045,074 1,001,946 954,007 Boys 639,846 763 661,326 75? 769,8999 72? 918,741 71? 751,738 71? 743,924 71? 712,722 71? 679,629 71? Girls 199,299 24? 224,124 25? 295,093 21? 329,591 79? 304,964 291 303,250 29 299,224 29? 274,379 29? NET ENUOILLHENT RATIO IN GRADE 1 31 Total 50? 54Z 62? 52? 41? 57? 51? 52? Boys 69? 731 Bit 692 54? 77? f9? 69? Girls 30? 34? 421 34? 261 372 332 34? GROSS PARTICIPATION RATES 4/ Total 49? 532 623 66? 60? 59? 55? 52? Boys 73? 77? 99 93? 94? 92? 77? 73? Girls 24? 27? 35? 39? 35? 35? 33? 30? It Source: NOE Statistical Yearbooks for corresponding years, and HOP Popuiation Estimates. Enirolleenit in public primary schools wily. 2/ Enrollment data inicludes unider- (Age6) and over-aged children and repeaters. 3/1m Newntrants ini Grade I over age 7 population. 4/ Total Enirollment in public urban primary schools over age 7-31 population.  KINGDOM OF MOROCCO RURAL PRIMARY EDUCATION PROJECT EVOLUTION OF INTERNAL EFFICIENCY AT PRIMARY LEVEL AND TRANSITION RATE FROM PRIMARY TO LOWER SECONDARY LEVEL FROM AY1980-81 TO 1987-88 1/ 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 URBAN AREA New Entrants and Promotees 898,161 944,386 910,938 857,803 906,229 920,614 932,864 950,956 Repeaters 389,796 410,724 401,648 400,600 243,517 237,258 214,617 197,593 Total Enrcllment 1,2C7,957 1,355,110 1,312,586 1,258,403 1,149,746 1,157,872 1,147,481 1,148,549 RURAL AREA New Entrants and Promotees 588,293 633,720 751,335 786,933 812,124 836,570 823,128 791,094 Repeaters 229,852 251,730 313,647 360,399 244,458 208,504 178,818 162,913 Total Enrollment 818,145 885,450 1,064,982 1,147,332 1,056,582 1,045,074 1,001,946 954,007 URBAN AND RURAL AREAS New Entrants and Promotees 1,486,454 1,578,106 1,662,273 1,644,736 1,718,353 1,757,184 1,755,992 .,742,050 Repeaters 619,648 662,454 715,295 760,999 487,975 445,762 393,435 360,506 Total Enrollment 2,106,102 2,240,560 2,377,568 2,405,735 2,206,328 2,202,946 2,149,427 2,102,556 Estimated Number of School Leavers at the End of Previous Academic Year NA NA NA NA 311,937 231,546 216,333 204,466 Grade 5 Enrollees 427,373 454,8C7 476,614 500,532 447,801 438,686 427,161 New Entrants in Public Lower Secondary Schools 146,480 161,283 163,248 189,710 219,601 240,000 261,285 TRANSITION RATE from Primary to Lower Secondary Level 34% 35% 34% 38% 49% 55% 61% Source: MOE Statistical Yearbooks for corresponding years. Enrollment in public schools only. I.,  -42- - ANNEX 6 World Bank Grouo Education and Training Lending 1. First Education Project (Cr. 79-MOR), US$11 million, 1965-1975; financed construction and equipment of 21 secondary schools, including five lower secondary vocational schools, and related technical assistance. 2. Second Education Project (Cr. 266-MOR), US$8.54 million, 1971-1978; financed 'onstruction and equipment of six lower- and one upper-secondary school teacher training centers, two vocational training centers, and extensions or equipment to general and technical secondary schools and to agronomy and forestry institutes, and related technical assistance and fellowships. 3. Third Education Project (Ln. 1220T-MOR), a third window loan of US$25 million, 1976-1984; financed construction and equipment of 47 primary and five secondary schools, a lower-secondary teacher training center, also manpower development in tourism, agriculture and health, and related technical assistance and fellowships. 4. Fourth Education Project (Ln. 1681-MOR), US$113 million, 1980-1988; included 11 technical lycees, two institutes of technology, a technical teacher training institute, and extensions to engineering colleges, and related technical assistance and pre-investment studies; project closed in June 30. 1988. 5. Fifth Education Project (Ln. 2149-MOR), US$50 million, 1983-1989. Includes the establishment of 40 primary schools, four upper-secondary teacher training centers, also educational aids for 700 primary schools, and related technical assistance and pre-investment studies; Closing-Date was extended to March 31, 1989. 6. Education Sector Reform Program Loan (Ln. 2664-MOR), US$150 million, 1986-1988; finances a share of public expenditure in education in order to assist the Government in carrying out reform activities. Closing Date: December 31, 1988. 7. Vocational Training Project I (Ln. 2479-MOR), US$27.1 million, 1984-1990. Supports the establishment of 22 vocational training centers and related technical assistance, and strengthening of ministries' capacity in project analysis and preparation. 8. Vocational Training Project II (Ln. 2779-MOR), US$22.3 million, 1987-1992. Supports quality improvements in vocational training programs, and the rehabilitation of 33 vocational training centers, regional training coordination units, and related technical assistance.  - 43 - AMEX- 7 Page 1 of 12 BASIC EDUCATION PROGRAM The progress achieved since the introduction of the education sector reform program in 1985 illustrates the significant efforts made by the Government of the Kingdom of Morocco in this area. With the assistance of the World Bank and the African Development Bank, which provided direct support for the preparation of the reform program and financing for the first phase (1986-1988), the Government has been able to achieve the basic objectives of the reform. Over the last three years, the principal guidelines and the general framework of the education sector reform program have been put in place. The expansion of schooling capacity at the basic education levels, together with a faster flow of students through all levels of the system, have made it possible to improve access to basic education. The reorganization of the education system began with the introduction of the new programs of the first, second and third years of the first basic education cycle. Measures such as the increase in teaching loads at the secondary and higher levels, together with more effective control of fellowships in higher education, have enabled us to restrain the growth of expenditure on education at these levels. Public investment in education has been reallocated to basic education. This encouraging progress points the way for the efforts that must be continued under the reform program. Indeed, from the standpoint of universal basic education, one of the corneLstones of the reform program, enormous needs remain to be satisfied, particularly in rural areas. Since independence, although schooling capacity in rural areas has increased considerably, a significant proportion of the population in the more remote rural areas has still no access to basic education. In addition, a special effort must be made to promote the education of girls, which lags considerably in relation to that of boys in rural areas, and of girls in the towns and cities. In 1987-88, new enrollments in the first year of the first basic education cycle accounted for 69% of boys and 34% of girls aged seven in rural areas, the figures for the urban areas being 89% and 85% respectively. The Development of Education in Rural Areas In line with the education sector reform program, the Government of the Kingdom of Morocco intends to continue to develop basic education in rural areas. The objective of this sub-sector program is to guarantee in the end universal access to the first basic education cycle, by improving school participation and the quality and effectiveness of the education system, and by ensuring a better allocation of the resources assigned to education. The principal measures and the program of actions planned are shown in the attached table. The main lines of this program can be summarized as follows:  - 44 - ANNEX 7 Page 2 of 12 (a) Improved Access to the First Basic Education Cycle As laid down in the reform program, the Government of the Kingdom of Morocco has introduced, since the 1985-86 academic year, a new nine-year program of basic education consisting of a first six-year cycle and a second three-year cycle. This new structure will not only allow significant salary savings as a result of salary differentials for teachers at these two levels, but will also provide an additional year of education, thereby reducing boarding costs. To this end, the Ministry of Education intends to continue its program to construct classrooms, school cafeterias and accommodation for teaching and administrative personnel. In accordance with the 1988-92 orientation Plan objectives, this construction program will include about 11,600 accommodations, 1,400 school cafeterias and, in order to gain experience, 120 wells and 120 sanitary facilities. To promote a more rational utilization of premises, the system of pedagogical organization, i.e. the shift system, will be generalized (two schools accommodating three classes). Measures will be taken to encourage local community participation, such as: land availability, site selection, building maintenance, etc. . (b) Improvement of School Attendance To increase the enrollment of school-age children and to reduce drop-outs, and particularly girls, MEN will introduce a series of measures to encourage rural families by improving their access to textbooks at reasonable prices, increasing families awareness, promoting an awareness of the advantages of enrolling and maintaining their children in school, and promoting local initiatives. Specifically, MEN will provide an initial stock of textbooks to the school cooperatives, which will be responsible for maintaining and renewing this stock by recovering their costs. Concerning school cafeterias, their network will be extended, the number of beneficiaries increased and the quality of portions improved. Awareness and information campaigns will be organized in rural communities and MEN will help finance provincial and local initiatives designed to increase girls' enrollment. (c) Improving the Ouality of Teachina School attendance in rural areas can only be improved insofar as children have access to quality teaching. From this standpoint, MEN will continue and complete the efforts already begun under the reform program in the following key areas: the reorganization of education programs in conjunction with new teaching methods and the evaluation of learning; the recruitment, training, retraining and assignment of men and women teachers in rural areas; strengthening multi-level education; and finally, strengthening the role of school principals. In addition, in conjunction with the Ministry of Public Health, MEN will consolidate its school health programs through the introduction of teaching modules into the regular program, better health inspection programs and the provision of glasses.  - 45 - ANNEX 7 Page 3 of 12 (d) Strengthening the Planning, Monitoring and Evaluation Services To ensure optimal coverage of scattered rural communities and to strengthen the school mapping and statistical services, MEN will set up an integrated school mapping management system. This system will provide better monitoring of education activities and population and educational data. It will also provide basic data for research and evaluation activities, which are an essential component of this innovative program. So as to develop the research and evaluation functions that will make it possible to measure the impact of specific measures on enrollment and learning, the MEN will conduct two research projects, one on educational material and textbooks and the other on teacher training and supervision. These activities will be conducted in close collaboration with institutions in Morocco and overseas, thus allowing exchanges of information on the results of the research and the experience acquired. (e) Rationalization of Budgetarv Allocations To achieve the objectives summarized above, the Government of the Kingdom of Morocco will earmark necessary funds to implement the program to develop the first basic education cycle in rural areas. Aware of the impact of these measures on the education sector budget and of the importance of controlling the increase of the additional expenditure that will result from the introduction of the program, MEN will take a series of steps designed to improve the effectiveness and rationalize the ucilization of education resources. These measures are aimed at rationalizing: (i) the recruitment, and assignment of teachers with a view to their better integration into the rural environment and to recognition of the contribution of education in rural areas to development; (ii) the system and programs for training teachers, by consolidating institutions and improving supervision ratios; (iii) the deployment and allocation of nonteaching personnel at the secondary level. In addition, budgetary measures will be taken to increase and maintain activities that are essential to preserving the quality of education, such as: the provision of educational material, pedagcgical supervision, training and retraining of teachers and the maintenance of school buildings. 0770g  Status and/or Actions Actions Planned Under Obiectives Being Taken by the Government the Proposed Program 1. Access to Primary education in rural areas 1.1 Improve access to primary Under the education sector reform To meet the needs deriving education in rural areas. program, the Government continues to implement from the increase in -, the policy aiming at universal primary enrollments in existing 0 education in Morocco by the end of the next rural schools and to ensure decade and, more specifically, a 84. coverage rate of intends to improve access to primary rural areas by 1994, the education in rural areas. The Ministry of National Government will complete the introduction Education (MEN) plans to of a six-year primary education cycle in build about 11,600 new classrooms, 1990-91. some 30% being as extensions to existing schools and some 70% as new schools. 1.2 Apply revised construction and Prefabricated classrooms are being The same construction equipment standards for primary built according to construction standards will be applied schools in rural areas. and equipment standards developed to classrooms and under the education sector reform cafeterias. The central program. Schools in remote schools will incorporate an douars will also be equipped with office for school management. a cafeteria. On an experimental basis, about 120 new schools with cafeterias will be equipped with sanitary facilities and wells to provide potable water. z- 1.3 Improve teachers' living MEN is building accommodations for MEN will build some 2,900 conditions in remote rural areas. personnel in remote areas. These accommodation units which units are rented to the teachers will be allocated in assigned to the adjacent primary accordance with current schools. Priority is given to policies. teaching couples, groups of teachers and to the school director if the acconmnodation is close to the central school 1.4 Improve utilization rates of Since 1986, MEN has been using a new The shift system will be premises to maximize their system of pedagogical organization, generalized in rural areas. utilization. i.e. a shift system (2 schools Minimum student numbers for accommodating 3 classes within a opening a class will be timetable occupying 6 days a week). observed. The minimum number of students justifying the opening of a class is currently 15 for a single-level class and 7x2 for a multi-level class.  Status and/or Actions Actions Planned Under Obiectives Being Taken by the Government the Proposed Program 1.5 Encourage local community MEN is encouraging local community MEN will continue to apply participation. participation in the construction, these criteria for the equipping and maintenance of introduction of schools by premises. In addition, MEN is encouraging communities to currently examining the areas in give direct or indirect which local communities can bring support, such as providing some support to primary education. a site and construction This work is part of the general materials, carrying out process of decentralization. related works (fences, accommodation. improvement of school grounds, sanitary facilities, etc.) and building maintenance. 2. Expanding access to Primary education in rural areas 2.1 Improve the availability of Textbooks, printed and distributed To enable the school textbooks and school supplies at in Morocco, can be acquired by MEN or cooperatives to set up a reasonable cost to the parents of by the school cooperatives from the bas-ic working stock, rural students. publishers with a discount on the resale MEN will provide an price specified by contract between MEN initial allocation of and the publishers. Some cooperatives textbooks which will are using this system to buy textbooks become the property of the which are lent to families. rural school cooperatives. They will be responsible for establishing, managing and maintaining a system of textbook loans to students. Parents will be charged about 1/3 of the market value, these amounts being used to repienish the cooperative's stock. Cooperatives can buy school supplies with their own resources and resell them to families. 2.2 Increase enrollments of girls in school. During visits organized by the These visits will be Provincial Delegations' Planning carried out systematically. Services to mark the establishment of To promote the education of a new school, meetings are being girls, campaigns to inform organized with community and increase parents' and rural representatives and parenis of communities' awareness will be students to sensibilize them to the organized regularly and in importance of education and to particular when a school is m Z encourage them to enroll their opened. To strengthen the X children in school. impact of these campaigns, MEN will issue a directive 0 to the Provincial Delegations and will distribute  Status and/or Actions Actions Planned Under Obiectives Being Taken by the Government the Proposed Program information manuals to those X responsible for conducting 0