Mozambique - Capacity Building : Human Resources Development Project

Document of The World Bank FOR OFFICIAL USE ONLY MICROFICHE COPY Report No.:10731-MC)Z Type: (SAR) Report No. 10731-MOZ Title: CAPACITY BUILDING PROJECT Auithor: HECHT, R Ext.:33341 Room:J11083 Dept.:AF6PH STAFF APPRAISAL REPORT MOZAMBIQUE CAPACITY BUILDING: HUMAN RESOURCES DEVELOPMENT PROJECT OCTOBER 29, 1992 Population and Human Resouces Division Southern Africa Department African Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their offici'al duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (July 23. 1992) Currency Unit = Metical (pl. Meticais) 1000 Meticais = One Conto US$1.00 = MZM 2,809 (Secondary Market Exchange Rate) FISCAL YEAR Government Fiscal Year: January 1 - December 31 School Year: February 1 - December 31 University Year: August 1 - June 30 ABBREVIATIONS AND ACRONYMS BM Banco de Mocambique EPU Pre-University School ERC Economic Recovery Credit ERP Economic Rehabilitation Program ESAF Enhanced Structural Adjustment Facility ESRP Economic and Social Rehabilitation Program IDA International Development Association MAE Ministry of State Administration PCR Projec. Completion Report PPAR Project Performance Audit Review PPF Project Preparation Facility ROCS Roads and Coastal Shipping Project SAF Structural Adjustment Facility SIDA Swedish Agency for International Development SNAAD System for the Non-Administrative Allocation of Foreign Exchange UEM Eduardo Mondlane University UNDP United Nations Development Project  FOR OMCUIL USE ONLY Tablg of Qntens Credit and ProJect Summary ........................................ I Estimated Costs, Financing Plan and Esimaed Disbursements .................... II I. INTRODUCTION .................................... 1 U. LOW CAPACITY- CAUSES AND ISSUES .......... ................ 2 A. Higher Education .................................... 3 B. Upper Seondary Educatdon ................................... 11 MI. TFHEPROJECT. 20 A. General ................................. 20 B. Dtaed Descripdon ................................. 20 IV. PROJECT COST AND FINANCING ............................. 31 A. Project Costs ................................ 31 B. Financing ................................ 34 C. Procurement ................................. 35 D. Disbursements ................................ 38 E. Accounts and Audit . ................................ 39 V. PROJECT IMPLEAENTATION ................................ 39 A. Organization and Management ................................ 39 B. Status of Project ... 41 C. Monitoring, Reporting, and Evaluaion .42 VI. PROJECT BENEFIS, JUSIMCATION, AND RISKS ..... ........... 43 A. Benefits and Justificaton . ................................... 43 B.Risks . . 44 C. Impact on Areas of Spieci Attention ........................ ........... 45 Vn. ASSURANCES AND RECOMbMENDATIONS ....................... 46 This repoct is based aon the findings of an apprWil msion which vited Mombiqu in Apil 1992, comising MsMoasd 3. do Rogt (miion leader), R. Deucb (oomIst), W. Saint (ducato), T. Genta-Fons ayer), P. Snoor (conultant, Arhict), J. Negoo (consultant, Higher Educaon Specialit), M. dos Santos (consutnt, Sondy Education Speoist), J. Huddart (- nsulttnt, Public Administraton Specialist), and B. (consultant, Legl Specialist). Mr. R. Hecht (Sr. Economist) coordined the drfting of this report. Mr. R. Sullivan is the lead advisor. Muss. H. Phillips, D. Bichar and R. Mendontm aosd in the editig and presing of this rport, while Mr. D. Tnjillo provided additional secretarial support. Mr. R. amwe and Mr. S. Donning ae the managi Dividon Chief and Deatment Director, rwsectivdy, for the oprtion 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 Dank authoriztion.  1.1 Government's Capacity Bu'ilding Strategy .I.1 UEM - Student Enrollment by Course of Study, 1975 - 1991 11I.2 UEM - National and Foreign Faculty by Department Il.3 UEM - 1990 Budget, (LISS) II.4 UEM - Estimated Budget for 1992 (USS) 11.5 UEM - FacultylStudent Ratios by Department, May 1991 1n.6 UEM - Regional Distribution of Student Body 11.7 UEM - Indicative List of External Assistance Activities, 1992 11.8 National Education System Il.9 EPU Estimated Teaching Needs by Discipline, 1992 11.10 Teacher Training for Pre-University Education 11.11 Physical Conditions of PreUniversity Schools H1.12 EPU Revised Curriculum, 1992 11.13 Staffing and Organizadon of NDSE H1.14 Students Residing in EPU Housing, 1992 1.15 Overview of Educational Policy 11.16 External Assistance to Pre-University Education, 1992 1.1 UEM - Cost Estimates for Local Study Manual Production M.2 UEM - Indicative List of Possible Institudonal Linkage Partners m.3 UEM - Housing Demand Projections 111.4 UEM - Cost Estimates: Completion of 92 Units in Bairro Universitario m.5 UEM - Rehabilitation of 60 Units in ISATEX Building I11.6 UEM - Rehabilitation of 18 Units/Av. Vladimir Lenin M.7 UEM - Estimated Annual Costs of Graduate Study Fellowships m.8 EPU - List of Proposed Topics for Pedagogical Seminars III.9 EPU - Teacher Training Progam, ISP TOR IV. 1 Project Costs by Expenditure Category IV.2 Taxes and Duties IV.3 Taxes and Duties to be paid by Mozambican Government IV.4 Procurement Arrangements IV.5 Technical Assistance: UEM, EPU IV.6 Disbursement Schedule V.1 Project Implementation Structe V.2 Component Implementation Schedules V.3 Lessons Learned from Previous Implementation Experience V.4 Project Preparatory Activities V.5 Table of Contents of Implementation Manuals V.6 UEM and EPU Performance Indicators V.7 Supervision Plan V.8 Documents in the Project File Map: IBRD No.23687  (i) BELaOF._ZA MOZA CAArr INaN: HUMA EOREDVEOMN RJ CE AND RSt HUA RL%ffC= DEVEO4PMEN E&Q= Borrower: Republic of Mozambique Npefidartes: Eduardo Mondlane University and Ministry of Educ'tion Amount: SDR 34.1 million (US$48.6 million equivalent) Tem: Standard, with 40 years maturity. fbect OWieetve The project's main objectives are to build and maintain capacity in key public institutions and skill areas by expanding the supply of well-trained senior planners, policy analysts, managers, and technicians, and improving incentives and working conditions for senior civil servants. Specific objectives include: (a) increasing the quantity and improving the quality of university graduates and (b) improving learning achievement in upper secondary education. 3Project esaligdton: The proposed project will contribute to building capacity in Mozambique through the following two components: (a) Unvri Stabilizao - systems development and training in university administration, financial management, and maintenance; provision of textbooks, computers, and library materials; construction and upgrading of staff housing, libraries, student dormitories, and other campus facilities; and staff development scholarships (63% of project oosts) and (b) Ouality InRWrovement in U;per Second=r Education - development of a new teacher training program; support to curriculum and examination reform; provision of textbooks and learning materials; training for school managers and administrative staff; rehabilitation of pre- university schools and construction of dormitories and staff housing in the provinces; and special measures to increase female enrollment (37% of project costs). Benefits and Risks: The project's main benefit is that it will make a substantial contribution to social and economic development in Mozambique, by enhancing critical skills, systems, and local institons. The immediate beneficiaries will be preuniversity and university students (about 10,000 persons in total). The principal ikk facing the project is that the capacity to plan and manage implementation of the various project components will not materialize or will deteriorate over time. This r;sk will be mitigated troug project design that emphasizes the same capacity building and sustaining measures that the project aims to spread throughout the economy: namely,  (ii) creating an effective work environment (through appropriate staffing, availability of office technology, etc.) and offering stimulating and relevant training (pre-service, in-service, on-the- Job) to key project personnel. Swift adoption of measures to improve incentives for senior officials will help to bolster implementation capacity. The capacity of local training instiutions wIll also be increased through the use of 'link' arrangements with external training programs. ................S~676 2 17... . . ..... ........ ..  ~~~~~~~~':.'':.,,i:N.''',,'"'I Vt _ S S<;. . 'v&?^N<+ 0 i 0 0 i ] i X XX~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~............ .. .. U I~~~~~~~~~~~~~~~~~~~~~~~... .. II .".' ,,'' I'wt ls '.: v lg ~~~U'  1. IN RODUE 1.1 Mozambique hs fcing a severe crisis of capacity. There is an extremely serious shortage of well-educated and experienced Mozambicans who can assist in the planning and management of both public and private sector activities vital to the country's progress In the economic and social spheres. The handful of Mozambicans who are capable of providing leadership in these are are being siphoned off to the private sector, because the civil service is increasingly unable to compete with private institutions in terms of pay, conditions of employment, and work environment. The Government i8 relying more and more on costly expatriate technical assistants (TA), who are frequently poorly-managed, less productive, and relatively ineffective in building up local skills and institutons. All of these trends undermine severely the ability of Mozambican institutions, especially in the public sector, to carry out the Economic and Social Rehabilitation Program (ESRP), effect the transformation of the economy from a centrally-administered to a market system, design and implement key development projects - and ultimately, improve the lives of Mozambique's 16 million people, many of whom are living in abject poverty. 1.2 To deal systematically with this crisi of capacity and elicit new policy and progra tic responses to the problem, the Government requested the VYorld Bank (in conjunction with the Swedish Agency for International Development (SIDA)) in December 1990 to collaborate in carrying out a study on capacity building. Two documents emerged from this collaboradon: (a) a shorter wagi11BuIdingFrework Ew, discussed extensively with the Government and donor commnity and presented to the Mozambique Consultative Group (CG) in December 1991; and (b) a longer, more in-depth gag4 Bui Stdy, completed in October 1991 and widely ds within Mozambique and to the donors. During the CG, the Government proposed to f&nrher refine the framework paper into a Capacity Buiiding Strategy and Action Plan and present these in a met with donors. An &atline of the strategy was completed prior to negotiations, the complete strategy an a letter from Government dated August 1, 1992 declaring its commimet to said strategy was presed to IDA before Board approval. It is expected that the donor meetng would take place in November 1992, and formal approval of the Capacity Building Action Plan would be a condition of effectiveness. Annex 1. 1 describes the draft strategy. 1.3 In both domments, five main causes for weak development capacity were documemted and analyzed: lack of incentives and productive institutional struetures, procedures, and practices, especially in the public sector; insufficient quantity and quality of university graduates, research, and other contract aervices; poor quality of upper secondary education; low quality, relevance, and costeffectiveness of various types of vital professional training for Mozambique's fture development (such as ecowmics, finance, law, accountancy, and public administraion); and the sub-optimal use of technical assistance to build indigenous long-term capacity. 1.4 In the second half of 1991, the Goverment also requested the Bank to work closely with it in preparing proposals, eligible for IDA financing, which would respond to some of the weanesses idendfied In the two capacity-building studies. The proposals would be part of  -2- a wider capacity building wprogram" consisting of a large number of donor-assisted projects in the areas of education, training, civil service reform and public administration, and private sector man.~gement strengthening. 'these efforts include a major SIDA-financed public administration reform project; a salary incentive fund for senior civil servants to be supported by Switzerland, Norway, and others; USAID and DANIDA support to the legal sector; EC financed training programs in public administration; and UNDP-led efforts to improve the management of foreign technical assistance. The proposed project, as well as the proposed IDA financed companion project, focussing on Pubic Sector and Legal Institutions Development is therefore part of a much broader effort to maintain aed expand local capacity to plan and manage Mozambique's development. It is expected tnat, as a result of the two projects, thousands of additional Mozambicans will be trained in key professional domains, and that concurrent actions in the aregs of public pay and employment and the reform of public institutions and in the management of technical assistance will encourage these Mozambican professionals to join and remain in civil service careers. H. LOW CAPACITY - CAUSES AND ISSUES 2.1 As mentioned above in Chapter 1, the Government and donor community have come to see the crisis of weak capacity as having five main dimensions: incentives and conditions of employment; management of technical assistance; university education; upper secondary education; and professional training, both pre-service and in-service. The proposed project will attempt to respond directly to two of these dimensions, by supporting Government and donor efforts to increase significandy the "supply" of trained and qualified policy analysts, planners, managers, and technical specialists for the public and private sectors of the economy. The companion project (Public Sector and Legal Instiuons Development) responds to the need to improve the 'demand' side: incentives and conditions of employment and professional training, both pre- and in-service. 2.2 Concumntly, a series of other actions being undertaken by the Gcvernmentr, with support from the Bank and the donor community, are contributing to building effective capacity. In the area of public sector pay and incentives, a joint Government-donor task force (with major support from Norway and Switzerland) has developed options for increasing pay for senior civil servants and for offering them other incentives (e.g., housing, enriched pensions, etc.), as a way of retaining and attracting high-level officials. At the same time, a wide-ranging SIDA-funded program for strengthening public administration in Mozambique will continue its work in job- grading, developing new career structures, improving personnel administration, etc.. UNDP and UNICEF are leading a broad effort to improve the effectiveness of technical assistance, by tightening up the programming of such TA and adopting new procedures and practices for defining TA needs and for recruiting and supervising expatriate technical personnel. The Government and a number of donors (including Sweden, Norway, and Netherlands) are also examining ways tO improve the use of the existing Personnel Fund (funk do pessoal), which provides the Goverment with untied donor funds for TA. 2.3 In the sections that follow, the current state of university and upper secondary education, corresponding to the proposed project are examined. A similar analysis of institution building/training in law ad public adminison, corresponding to the Capacity Building Legal and Public Adm on Development Projewt is contained in the MOP Report No. 5866-MOZ. Their links to capacity-building, key outstanding issues, strateW considerations, and othez ongoing iniatives to improve the supply of high-level manpower, are also discussed.  -3- A. Mcf Basic Characteristics 2.4 Long term developn:sft prospects for Mozambique will depend in significant measure upon the quality and output of skilled human resources produced by the country's single university. Named for a leader of Mozambique's struggle for independence, Eduardo Mondlane University (UEM) was initially established under Portuguese colonial rule in 1962 as an adjunct of the Portuguese university system, and became an autonomous national university when independence was achieved in 1975. Following the mass exodus of Portuguese staff and students prompted by independence, UEM has grown from 777 to 3,016 stuuntf between 1977 and 1991 (Annex 11-1), and from five to 323 Mozambican teaching staff. Additionally, 146 expatriates comprise 31% of the faculty (Annex II-2). Mozambique's higher education system is completed by the newly established Higher Pedagogical Institute (whose functions were formerly carried out by the UEM Faculty of Education) with a 1990 enrollment of 813 students, and the Institute of International Relations with 220 students in the same year. 2.5 Since independence, UEM has contributed only 2,000 graduates to the national development effort. However, a notable 23% of these graduates earned their degrees in engineering, science or mathematics. Together with another 1,000 university graduates produced before independence or abroad, this small group of 3,000 constitutes the entire pool of skilled professional resources in a country of 16 million citizens. Due to this limitation, an equal number of foreign technical assistance personnel assist the planning and implementation of government activities at an annual cost of US$211 million. 2.6 Throughout its brief history, UEM has demonstrated creativity and discretion in managing its own development. Several examples are illustrative. First, it initially chose to close a number of university faculties following the post-independence loss of many staff and studews. These faculties were later re-opened as expanding staff, student demand and budgetary resources permitted. Today the university boasts 22 academic departments organized under 11 faculties, along with a multidisciplinary research unit (the Center for African Studies) and a computer center. Second, the important principle of student cost-sharing was early introduced and has been maintained. This includes significant tuition fees (currently about US$500 a year) the limitation of government scholarships to roughly 35% of the student body, and modest charges for student accommodation. Third, an extensive curriculum reform was undertaken in 1985 that sought to define subject matter in relation to prevailing professional and occupational profDes for university graduates. These and other achievemnents, such as impressive success in in ational fund-ralsing and the recent well-conceived UEM instivtional needs assessment and strategic development plan, are testimony to the vision and judgemnr- that have guided the university under three different rectors. 2.7 Financing for the university follows an atypical pattern. Unlike most other African countries, the government contributes just 28% of the UEM recurrent budget (Annex Il-3). Donors provide the remaining 72%, of which 93% underwrites the salaries and benefits of expatriate teaching staff. When these sizeable forein asistance costs are excluded, the unit cost of university education to the government is US$1,360. This amount, which is Jlightly below the current norm for the continent, still appears rather high in a country where wages are very low- thereby refiecting the scarcity of qualified staff and a heavy dependency on importeJ equipment  -4 - and consumable materials. Similarly, donors provide 53% of UEM's investment budget. The estimated UEM budget for 1992 appearm in Annex n-4. 2.8 Because the university is one of the l&'ger and better functioning institutions in the country, it has been able to paitially protect its governmental allocations as overall public expenditures declined as a consequence of a prolonged internal war and earlier misguided economic policies. In 1990, UEM received 19% of the total recurrent budget, and 28% of the total investment budget, allocated by govermnent to the education sector. Fdgrlt Issues 2.9 In spite of its considerable achievements, Eduardo Mondlane University currently finds itself in a precarious situation. Its graduate output efficiency-burdened by a drop-out rate of roughly 50%-is much lower than it should be, thereby depriving the country of desperately needed human resources. It faces severe problems of staff retention, particularly in some' discipliaes, which are undermining its ability to offer an acceptable education within a predictable time period. An extreme example is its Department of Economics, which is close to becoming non-functional. The university's success in attracting donor funding has placed it in an unstable and unsustainable position, dependent upon continuing foreign assistance for the bulk of its recurrent and investment budgets. Employers have begun to question the relevance of its training in some disciplinary areas, and its research output has fallen far short of national needs. Recent years have seen an increasing tendency for a disproportionate itumber of students to be drawn from the southern part of the country as a debilitating internal war has disrupted education in provincial areas. A continuation of this trend could contribute to unequal regional development and eventual political instability. These factors combine to erode university capacity to fulfill its institutional mandate of providing the nation with trained professionals, applied research and skilled service. Capacity preservation must therefore take precedence over capacity-building. 2.10 OutMut Effidem: The university offers a five-year course leading to a licendaba degree (with the exceptions of medicine and architecture. which take seven and six years, respecdvely.). Its efficiency in producing graduates under this program-currenty just 150 per year-could be improved. Drop-out rates have consistently averaged 11% a year, meaning that only one out of every two incoming students reaches graduation. Additionally, just 40% of graduating students obtain their degree within the normal five-year period, the remainder requiring a sixth or seventh year of study for completion. Significant potential therefore exists for improving UEM's output efficiency. This is important because, with just 26 university students per 100,000 inhabitants (compared to 167 per 100,000 for Sub-Saharan Africa as a whole), Mozambique clearly needs more graduates. How to achieve this goal without lowering standards of quality remains a formidable challenge. 2.11 A principal cause Cer uese high drop-out and repetition rates is inadequate secondary school preparadon. This requires urgent and sustained attention, and is the subject of Section B. Contributing causes may also include excessively restrictive University requirements for class attendance and course progression, a prior system of assigning students to coursts of study rather than allowing individual choice, and a frequent tendency of st'idents to accept jobs after completing coursework, but not the thesis required for degree conferral. Some of these practices have recently been eliminated and others are under review. It is still too soon, however, to determine how these changes will effect drop-out and repetition rates.  -5- 2.12 A second caise of poor academic performance is the difficult conditions in which students live and study. Three-quarters of students live with families, relatives or friends. The rest, largely from the provinces, are crowded four or six tO a roon in poorly maintained university dormitories that do not offer adequate study areas. In additlin, textbooks, laboratory equipment and reference books are scarce. Consequently, classes-often taught by rotating foreign professors who are not always fluent in Portuguese-tend to be heavily theoretical, with students relying almost exclusively on their hand-written notes for learning. Students try to cut their expenses by preparing meals in thei; rooms and reducing use of public transportation. But they express concern with their growing inability to eat adequately, cover medical expenses, and acquire basic study materials. These constraints impact negatively on students' academic performance, and were the cause of the university's sole student strike in 1989. 2.13 Staff Retention and Development The university currently confronts a serious problem of staff retention. as its salary and benefit package has become increasingly uncoimpetitive. It has lost 34 Mozambican faculty members--13% of the 255 Mozambican staff presently in residence--over the past three years. Losses have been concentrated in the high- demand disciplines of economics and engineering. In addiNon, the number of staff on formal part-time contracts increased from 64 in 1986 to 94 in 1990, suggesting that the university faces growing difficulty in winning a full-time commitment from its staff. It was repeatedly stated that current salary levels are insufficient tc meet family subsistence needs. A systematic survey of department heads conducted in May, 1991 suggests that fully 74% of the full time Mozambican staff are engaged in outside income-supplementing activities. This spreading practice undermines the quality of university endeavors by sharply reducing the amount of faculty time available for course preparation, student advising, research, departmental planning, and administration. Although significant staff losses have not yet occurred among senior management and administrative staff, this can be anticipated. Even a few losses in this specialized area would be catastrophic. 2.14 The university is hard pressed to compete with the labor market in areas of current high demand. The Bank's recent Public Pay and Employmnt Review for Mozambique notes a tremendous demand for highly skilled Mozambicans, registers pay differentials of 5:1 or more between the non-public sector and the civil service and concludes that wages for higher grades of public employment are grossly inadequate. For example, salary and benefit packages in parastatals and the private sector (including donor agencies) frequently range from US$700 to US$2,000 a month and include numerous in-kind benefits. 2.15 The government recently recognized the distinctive nature of university contrit -uns in May 1991 by approving a special 100% salary supplement for academic staff wbile giving only 50% to the rest of the civil service. This brings moanthly earnings for an assistant professor/senior lecturer to about US$450. Given the extreme scarcity of skilled talent in the country, however, such measures can only have a short term imp?-ct. Competing employers outside the public sector will always be able to outbid the University as long as the promise of profit justifies this investment. To retain its staff in key areas of high labor demand, the University will need to exploit its comparative advantage in other areas, e.g., access to housing and opportunities for professional development. 2.16 Accountabilt UEM accountability to government and donors, in both financial and institutional terms, could be improved. To date, the budget development and negotiation process has been conducted on an ad hoc basis. Estimates of university financial needs are forwarded to the Ministry of Finance and National Planning Commission without a strategic plan  -6- or projected work program to justify them. In turn, government's allocation decisions are largely uninformed by sector priorities and associated decision-making criteria for higher education. In these circumstances, government is not certain what it will receive in return for its investment, and the university is unable to anticipate the levels of financial commitment from government necess y for it to undertake systematic forward planning. Encouragingly, Mozambique's parliament recognized these difficulties in April 19% when it revised the legislation governing the country's education sector. The new laws affirm the autonomy of tertiary institutions while strengthening mechanisms of accountability. One change is the creation of a small council, composed of Ministry of Education and tertiary institution leadership, which will provide a forum for coordinating intra-sectoral policy and budget allocations. 2.17 ht the same time, the responsiveness of UEM teaching and research to local labor markets and national needs is open to question. Employers note that UEM graduates are currently deficient in practical or applied skills, and in analytical or problem-solving capacities. Thoy also point out shortcomings in professional abilities such as setting priorities, organizing time, maintaining standards of quality, and other management skills. Because neither government nor the private sector is represented in any of the university's policymaking bodies, they posses few means for holding the university accountable to society's needs. Given the sweeping economic and political changes currently underway in Southern Africa, a more responsive curriculum is required. 2.18 In spite of recent efforts to increase its research output, the university is not yet able to effectively fulfill its research mandate. Much research is the result of individual initiative linked to thesis or dissertation requirements for Mozambican staff pursuing graduate studies abroad. Institutionalized research capacity is limited. The Faculty of Economics, for example, has yet to develop research activities-even though the current process of economic rehabilitation might well benefit from research-based guidance. Similarly, the Faculty of Medicine (with its largely part-time staff) and the newly established Faculty of Law have not been able to contribute meaningfil research results in their respeetive professional areas. 2.19 The reasons for insufficient research performance are readily understood. The Mozambican teaching staff is largely young and inexperienced. One-third of them possess less than five years of teaching experience. With just 10 Mozambican PhD's on campus, young staff have few role models to guide them. Contracted foreign staff rotate too quickly (their average stay is two years or less) to initiate meaningful research, and their work contracts are normally restricted to teaching assignments. In addition, staff promotions are based more on length of service than on scientific output (this practice is currently under review), and research provides few material incentives which might compete with 'moon-lighting' economic survival activities. Additional constraints exist in the form of limited library holdings, outmoded or non-functioning scientific equipment, weak support facilities (e.g. photocopiers) and difficulties in acquiring the foreign exchange necessary to obtain many consumable supplies. 2.20 m ent The university's recent growth in enrollments, accompanying support services, and donor assistance has proceeded more quicldy than the capacity of its management systems to adjust to these changes. Consequently, an excessive concentration of decision-makdng has occurred, with some 33 different units now reporting directly to the university rector. The present organizational structure is inefficient to the extent that it absorbs senior management staff time in the review of numerous minor administrative processs, frequently removes decision-making from its departmental context, and limits the amount of time university leadership has available for important institutional activities such as strategic planning  and external relations. Common responsibilities (e.g. financial administration, donor relations, student affairs) are sometimes spread across several different units and this creates management difficulties. Staff/student ratios vary widely from one department to another, suggesting room for efficiency improvements (Annex II-5). Finally, thq physical distance (several kilometers) that separates senior management offices from the two main university locations also contributes to communication costs and decision-making delays. 2.21 lonal and Gende Rementtion For historical reasons, adequate regional representation among the UEM student body will be important for the long run stability of the new political system established under Mozambique's 1990 constitution. Yet students from the southern part of the country made up an increasing portion of UEM enrollments during the 1980's as rural conflict and deteriorating economic conditions inhibited the flow of secondary school graduates from the provinces (Annex 11-6). Commendably, government and the university have reserved one-third of UEM places for provincial students, and given them priority in awarding government scholarships. However, maintaining this policy as efficiency gains permit gradual enrollment growth (to a planned 5,500 students by the end of the decade) will require commitment and carefil planning. 2.22 The university's gender representadon is consistent with the prevailing low) levels for African universities, with women comprising 25% of the students. This proportion has varied little over the last five years. However, the preservation of women's share over this period must be seen as a notable accomplishment. The lack of dormitory space for women (current capacity is 140 beds) has posed a formidable constraint on the university's ability to recive female students from the provinces during the recent period of student enrollment expansion. At the same time, a notable 22% of the present Mozambican faculty are women, a share which is nearly double the prevailing 13% average on the continent. 2.23 Building R. bilitatilon and Maintenance It has now been twenty years since UEM has given systematic attention to building maintenance on campus. During the final years of the liberation struggle, the Portuguese colonial administration refrained from such investment. Foliowing independence, poor economic performance and the rising costs of an insidious internal war precluded all non-esetal expenditures. As a result, the UEM physical plant has suffered severe deterioration. Sanitary facilities do not function in many buildings. Roofs leak, windows and doors are warped by lack of care, and structural problems have begun to emerge. For example, the overburdened second floor library at the Faculty of Agriculture has begun to sag. Most buildings desperately need a coat of paint. A recent architect's survey suggests that the problem is serious, but still manageable. If left unattended, however, the future cost of remedial action will be much higher. UniversityStratepfor Stabilization 2.24 During 1990-91, Eduardo Mondlane University undertook a self-managed needs assessment which identified and analyzed many of the problems noted above. On this basis, it developed a strategic plan for institutional stabilization. The plan proposes a series of actions to halt the negative trends in staff losses, educational quality, management capacity, student living conditions, relations of accountability, regional representation and building conditions. It gives priority to general institutional needs and to greater efficiency in the use of existing financial, human and physical resources. Strategy over the near term is to consolidate recent gains so as to increase graduate output, and to create more stable operating conditions for gradual enrollment expansion later in the decade.  - 8 - 2.25 Safl ,etenton Although UIEM recently (May 1991) we - bpecial salary supplements for its staff from government in the effort to slow staff losses, it realizes that it cannot outbid the private sector in the long run. Accordingly, it is developing a staff retention strategy based on its comparative advantage In providing access to attractive in-kind benefits such as staff housing, graduate study fellowships, professional meetings attendance and research support. Housing is viewed as a particularly powerful incentive. Little housing construction has occurred since independence, and housing demand is high. UEM plans to expand its current stock of staff housing, and to explore the feasibility of establishing a staff savings incentive program. The latter seeks to forge a mechanism for enabling individual staff to achieve home ownership as government policy creates the necessary elements for a private housing market to emerge from the former system of collectively owned national assets. The University has also established a research fund, underwritten by SAREC, SIDA and NORAD, to support interested staff throughout the university. For critically affected faculties such as economics, engineering and medicine, UEM proposes to establish several capacity-building linkage programs with peer departments in foreign universities. 2.26 Educational Oulity A number of institutional policies have recently been changed in the effort to improve educational quality and output. In 1991, the university instituted an admissions examination to improve student selection. It also expects that this competitive exam will increase academic motivation-and consequently achievement-at the secondary level. Concurrently, UEM management has introduced partial or total exemptions of tuition fee payment based on academic performance and financial need, and conditioned student scholarships in the same way. Various inhibiting regulations have been discontinued, including obligatory classes in political ideology and physical education, required class attendance, the need for a student to repeat an entire year of study if he or she fails two or more courses, and the former practice of assigning students to areas of disciplinary study rather than allowing them to make personal choices. Additionally, several university buildings have recently been opened to students for study use in the evenings. A major curriculum review will also be undertaken in the near future. This will be complemented by a needs assessment and program design for the teaching of english within the university, which is currently underway with British Council assistance. Follow-on funding from ODA for the implementation of these recommendations seems likely. Finally, the university plans to expand educational inputs by importing textbooks and basic references from Portugal and Brazil, and by contracting qualified staff to write study manuals which will be published by the uiiversity press. Both imported and locally produced materials will be sold at full cost-recovery prices through a small university bookstore. 2.27 Mumet Candit The university's recent stabilization plan proposes to address a series of management issues that demand urgent attention. To this end, eight studies of specific management issues are planned during 1992 with assistance from UNDP and the World Bank's Education 11 project. They are: - information systems for management decision-making. - organization and computerization of student records. - management of student residences, food service and financial aid. - organization, staff development and computerization of the libraries. - maintenance of scientific and office equipment. - rehabilitation and maintenance of buildings. - staff and student transpo.tation problems. - university computerization policy.  -9 - In addition, the university has felt the need to review its overall management and governance structure. UEM realizes that its recent and projected growth, together with the process of rapid political and economic changes now underway in the country, challenge it to be more efficient and flexible in the management of both its internal and external affairs. This review was carried out in March 1992 with financial support from the Commonwealth Secretariat and the Ford Foundation. The exercise was assisted by two experienced chief executives from a British and an African university, plus an expert in higher education financial administration. It produced a thoughtfil set of management recommendations which clearly indicate priorities and suggest a strategy of phased implementation. Principal proposals call for organizational restructuring (particularly in financial administration), increased representation within the university council, and improved internal communications. 2.28 Student Conditions UEM has put together an action plan for improving the conditions for student life and study. Efforts are underway to increase library and study space, to improve campus sanitary facilities, and to expand student dormitories. The problem of student transportation is being studied. The student restaurant and several dormitories were recently given limited renovation, and will be better managed-through either privatization or administrative reorganization-as an outcome of the student services management study noted above. Student scholarships, which had lost half of their purchasing power over the past several years, were recently adjusted upwards with funding from SIDA, NORAD and Australia. 2.29 Accoontability The university proposes to strengthen its accountability to government, its donors, and society in general by (a) publishing an annual report which analyzes its institutional performance and includes a financial statement; (b) organizing annual meetings for representves of government, donors and the private sector at which the annual report and coming year's work plan are discussed; (c) producing semestral activity reports at the faculty level for yearly discussion with representatives of interested government, private sector and donor institutions; (d) contracting an annual external audit by a reputable firm for inclusion in UEM's anmnal report; and (e) restructuring and modernizing its financial administration systems with the help of a professional management consultancy firm. Development of an initial prototype for the annual report is currently underway with assistance from SAREC. 2.30 Rgional and Gender Representation In order to ensure that the present policy of reserving one-third of UEM places for provincial students and relieve currently over-crowded dormitory conditions without exacerbating gender imbalances, the university has initiated construction of additional student residences. This is an immediate need as some 250 dormitory beds were recendy lost through a government agreement to return to the Catholic Church a building, originally a seminary but later appropriated by the socialist government, being used as a university residence. SIDA is presently financing the construction of two dormitories, and USAID will underwrite an additional three buildings. However, two more dormitories are required in order to meet the anticipated accommodation needs of provincial and women students later in the decade. 2.31 Bldiding Rehabilitation The university estimates that about US$10.6 million will be needed to rehabilitate and maintain its physical plant. It will make a major effort to bring its buildings back up to standard, and institute a regular maintenance program, including budgetary provision for this and the creation of an ovei'sight unit to manage it, to insure that similar deterioration does not re-occur. One of the management studies noted above will inform this process.  - 10- Exterl AsSls4nc to the University 2.32 A wide range of bi-lateral, multi-lateral and private assistance programs support the university. The Netherlands provides some 30 visiting professors and underwrites several different linkage programs with Dutch universities. The Government of Italy also contributes considerable technical assistance, particularly to Economics, Architecture and Agronomy. SIDA recently approved a three-year package of general institutional support totalling US$6 million. Numerous donors focus their effbrts on specific faculties, e.g. Ford Foundation on social science, EEC on basic sciences, UNDP on forestry, DANIDA on law, etc. Recently, SAREC, NORAD and SIDA joined in contributing nearly US$2 million to a general UEM fund for research and research-related training and dissemination targeting both staff and students. Annex n-7 summarize confirmed donor support to the university in early 1992, categorized in accordance with the objectives of the proposed IDA project. 2.33 To date, IDA lending for human resources has comprised two projects in education which contain limited assistance to Eduardo Mondlane University. These provided US$2.8 million and US$10.3 million respectively, for the university to construct and equip a basic sciences building and several engineering laboratories, train its staff in economics and engineering, and provide visiting professors while its own staff were studying abroad. 2.34 Although these two projects have addressed specific needs at the university, they did not take a comprehensive approach to its institutional development needs. The Capacity Building Sector Study carried out in mid-1991 has now filled this gap. Together with the university's own strategic plan for institutional stabilization, these analyses provide a firm basis for craftg the content of the Bank's future support for the university. 2.35 Lessons from Bank project experience in Mozambique suggest that management and implementation capacity are chronic constraints. Accordingly, this project has given careful attention to UEM carabilities for administering each component, and sought to strengthen areas that were judged deficient. In line with the intent of capacity-building, however, the university has been encouraged to assume implemention responsibility for most project activities, including procurement, rather than using a project implementation unit or contracted expertise for this purpose. 2.36 Given the extent of donor involvement at the university, some mechanism for donor consultation and coordination is urgently needed. Tentative efforts to this end have not yet proved fruitful. The university sought to form a donor support group in May 1991, but donor response has yet to coalesce. While donor coordination within several other sectors has recently improved in Maputo, the lack of a willing lead agency has impeded progress in the education area. However, two informal donor coordination meetings have taken place during the past year, and it is clear that interest exists. The university's proposed activities for increased accountability are expected to prompt better donor coordination as one outcome, and may enable UEM itself to assume the 'lead agency' role in'this area.  B.~~~ 11 =- B. IgI Sewnd= Educadonl Problems and Issue 2.37 Secondary education is included in this project because of its importance in producing qualified candidates for university education and its vital role in developing critical and constructive citizens for Mozambique. The pre-university schools prepare students explicitly to enter UEM; graduates of other forms of intermedate education can also have access to higher education in fields related to their specialization (e.g., technical school graduates in the Engineering Faculty at UEM, teacher trainees at Instituto Superior Pedagogica (ISP), etc.).j/ Access to higher education for adults and others who work part or full-time is also limited by current legislation which requires that worker-students, before embarking on studies in higher education, must work for at least three years in an assigned Government agency or enterprise. 2.38 Given these constraints, admission to university is facilitated only for graduates of pre-university education. Indeed, quite recently, those concluding pre-university secondary education were guaanteed places at UEM: a university entrance exam was only introduced in 1991. This is consistent with the law on the National Education System (SNE), which states that the objective of pre-university education is to 'encourage the student to take on the role of someone who changes the world, society and thought", while the ain of the intermediate technical and vocational courses is to "train mid-level technicians for the economic and social sectors involved in production and service activities". Tablg 2.1" Enrollments In PE-Unlversltv EduAtIon. 1991 233 24.1% 233 ~~~~24.% 2.39 Withi the new thrust toward progressive consolidation of a market economy, the introduction of multi-party democray, and the opening of the educational arena to the private sector, it is lilcely that there will be pressures for a significant expansion of secondary and pre- university education. A comparison between the official statistics and the actual practice .LI see Annex II-8 for a desptipon of the various levels of the SNE.  - 12 - Ulustrates this expansionary trend. In MINED documents, it is said that there are only five pre- university schools, but in reality there are more institutions offering this type of education. According to the avaitabl data, enrollments in pre-university schools already cover six provinces plus Maputo City C(able 2.1). Furthermore, disoussions with Ministry officials have revealed that at present, only one of the 10 provinces in Mozambique does not have some form of EPU operating (Niassa). In many provinces, such as Tete, Manica, and Cabo Delgado, unofficial EPU classes have started in the past year. MINED does not officially recognize these courses since the level of teachers' training is below standards set for EPUs. Although students from these schools are atlowed to sit the university entrance exams, preparation levels are poor, and in 1990 less than 10% of the students were able to pass the examinations and receive the pre-university diploma. Recently, with the opening of the education sector to private participation, private schools have also begun to provide pre-university classes, and the Catholic Church is likely to enter this arena in the near future. 2.40 Gender Distributton of, Student Bod Girls make up a little less than one-third of the students at the EPU level. Maputo City, with the largest number of total enrollments, also has the highest pereentage of female students. In the provinces, the situation is considerably worse, with female enrollments averaging around 20% in both day and evening sessions. The share of female enrollments in upper secondary education in Mozambique is consistent with the prevailing low) regional averages for Sub-saharan Africa.2/ Given the demonstrated high scWial returns to female education, efforts should be made to increase the access of girls to pre- university education. Greater numbers of female EPU graduates would also contribute to raising the low percentages of women currently enrolled at the University (25%), or holding management positions in the public sector (7%). 2.41 Tewcer Ayalblit One limiting factor for the expansion of the EPU network is tha availability of teachers. A comparison of the actual distribution of teachers in 1991 with the ideal number of teachers required to handle the entire curriculum shows that the EPUs are grossly understaffed. There are especily acute shortages of teachers in the key disciplines of English (50%), Geography (53%), and History (41%). In some areas to be introduced as part of the new curriculum, such as French and Computer science, no teachers were employed (see Annex 11-9). 2.42 An analysis of projections for output from the Instituto Superior Pedagogico (ISP), the sole institution charged with the training of pre-university teachers in Mozambique, suggests that ISP graduates will not fill the pre-university teaching gap, much less expansion needs, in the years to come. An opdmistic scenario is that some 20 of the hundred odd ISP graduates per year might actually end up teaching classes at the EPU level (see Annex 11-10). Low salary levels, lack of housing, and poor working conditions in the EPUs all contribute to make altrnative employment options more attractive. In short, therefore, the Government faces an imminent crisis in the supply of teachers for pre-university education, and there is an urgent need to define a strategy to resolve the situation. 2.43 Techn Oualtv While most EPU teachers have at least some university-level training, only 19% has master degrees, and the majority of the teaching force has hau .-.tle or no skills upgrading. For example, in Francisco Manyanga EPU, despite expressed interest by staff, 2I Accordin# to World Bank estioas, for a grap of 32 low-income countries in Sub-sabarsn Africa, f6nl stents mede up 32 peormt of toa seconday mnmllmnmts in 1986.  - 13 - no upgrading activities are taking place, due to lack of funds. In all the EPUs, laboratory equipment lies gathering dust because teaching staff have not been trained in its use. Teachers' competencies stagnate year by year, as support is non-existent for even independently initiated skills-development, in the form of self-help reading, materials. 2.44 Gender Structure of Teaching Force Women are poorly represented among EPU teachers, comprising only 16% of the total teaching force. As has been documented in a number of studies, the lack of women teachers often has a detrimental effect on girls' educational achievements. It has also been shown that increasing the percentage of female teachers can be part of a successful strategy for raising girls' enrollments.3/ 2.45 Sool Infrstructr On the whole, the physical fabric of the EPUs is in bad condition. Although in some cases well-designed and solidly built, buildings have suffered from total lack of maintenance which results in steady deterioration which is accelerating as the years go by. At Francisco Manyanga EPU in Maputo, for example, water leaks through expansion joints are causing serious problems, and nearly all the electrical outlets and switches are broken or missing. At Samora Machel ESG/EPU in Beira, the bathrooms are not working and fixtures are broken; overhead lights are missip"; and the auditorium is virtually unusable. Annex 11. 11 provides a brief description of the state of each of the schools. 2.46 LeaningchingWn Materials While most of the ESGs and all the EPUs have laboratories for physics, chemistry and biology, these are not functioning, either because of lack of equipment and supplies or because the teachers lack time (due to an excessive teaching load) and/or adequate training in laboratory use. On the few occasion when labs are used, it is much more a result of the individual initiative of the teacher than any part of accepted school practice. Previous attempts at equipping secondary school laboratories have failed to produce the desired results as the possess neither the ancillary services (water, electricity, gas) nor the teaching staff to utilize the labs effectively. 2.47 Among learning/teaching resources, the EPUs generally lack even basic teaching tools, such as a globe or an atlas for geography lessons, rulers and compasses for mathematics and drawing, and grammars and dictionaries for languages and literature. But the most serious problem is the shortage of textbooks. Pre-university students have no books for many subjects. In their absence, the teacher dictates the material or copies hand-held notes onto the blackboard. Ihis wastes much valuable time which could be used for discussing and deepening the content of the lesson. Some schools have libraries, but these lack modern collections and suitable conditions for study. 2.48 Suppl of Texbooks At present, the supply of textbooks to the EPUs is inadequate. Furthermore, an increase in the availability of textbooks to EPU students is dependent upon the finalization of the new curriculum by the National Directorate of Secondary Education (NDSE), and the subsequent contracting of a publishing house (either local or foreign) to produce the relevant texts or to modify existing upper secondary texts so that they conform to the Mozambican curriculum. At present, sample lines of textbooks are being requested from various publishers to be considered in conjunction with the development of the new EPU I/ See, for example, World Bank Discussion Paper No. 133, Lettin Girls LeaM: Promising Aproachz in Prma and Sf ndm, by Barbam Herz, et.aL, The World Bank, 1991.  - 14 - curriculum. The final line of textbooks chosen will be modified by the curriculum teams managed by the NDSE so that the Mozambican reality is adequately reflected. 2.49 Textbol FSnncig Government policy on the financing of textbooks is that parents are filly responsible for covering the full cost of textbooks, with no Government subsidy. However, given the high costs of textbooks, and the low income levels of many families (more than 2/3 of Mozambicans reside in absolute poverty), the government has established a subsidizattion mechanism called the Caixa Escolar. While the Caixa Escolar is somewhat effective at the primary level, this mechanism does not operate at the pre-university level. Individual school administrations take the initiative in identifying poor students and subsidizing the provision of their learning materials from Acao Social funds and other school monies. In effect, targeted subsidies have become decentralized to the school level. 2.50 Teaching Methods Since practical classes are in general nonexistent (aboratories are not working or have been abandoned, etc.), the instruction process is basically theoretical or verbal. Inadequate supplies of teaching and learning materials force teachers to rely upon dictation as a means of providing information. This learning from dictation and by heart interferes with one of the major objectives of secondary education, which is to develop the student's ability to think for himself and take into account and exploit his/her own real life experience. Instead, the school becomes an instrument of narrow thinking and stereotyped approaches. 2.51 Class Size Another serious obstacle to effective and creative learning in secondary schools in Mozambique is excessive class size and related overcrowding of school facilities. The average class size is 39 students, which is already well above the recommended norm of 30, but there are cases in which it reaches 70 students per class. As a result, in many schools students do not have tneir own desks, but must share with one or two others. 2.52 Curriculum Design Curriculum design has been highly centralized in the Ministry of Education. In the past, curricula prepared by the Ministry were excessively detailed, covering for each unit the methodological approach, the week in which each subject is to be taught, the number of classes to be devoted to each chapter, etc. This substantially reduced teacher/school participation by preventing teachers from devising a teaching plan that takes into account the features and conditions of each school. Examinations have also been excessively centralized, with teachers under pressure to complete the entire program. Teaching has thus been linear and mechanical, with a mandatory program and a system of examinations to verify compliance. 2.53 Capacity at NDSE Curricula for the 1 Ith and 12th grade are currently being revised (with many disciplines being revised for the first time since Independence).4/ Curricula are prepared by staff from the Departments of Science and Letters of the NDSE, meant to be composed of two to three person teams for each discipline. Certain disciplines, such as Introduction to Computer Science, are not represented whatsoever. For other disciplines, official posts exist, but many remain vacant - more than one-third of the posts are unfilled and members of curriculum teams double in other capacities in the Directorate. (See Annex 11-13 for details of A/ The future study plans for pre-university education are shown in Annex 11-12; certain subjects (French, Latin, Philosophy, Introduction to Computers, German) will be introduced gradually in line with the adequacy of teacher supply.  - 15 - the organization and staffing of the NDSE). The curriculum experts within NDSE, in turn, are in theory supposed to work with outside specialists such as faculty from the University, ISP staff, and other relevant experts in the design and crafting of new study programs. However, the absence of additional financial resources to pay for the services of outside staff has prevented the realization of this process. 2.54 NDSE is poorly equipped to carry out its functions of curriculum design and pedagogical support for the EPUs. More than 50% of its listed posts remain vacant, and output of teaching materials is limited by lack of equipment and an insufficient recurrent budget to operate and maintain the few pieces cf equipment they have. Although staff are eager to engage in greater dialogue with the EPUs - by increasing the frequency of school visits, providing on- site training in certain disciplines, and hosting yearly seminars in Maputo for all EPU teaching staff - the funding is at present unavailable to support such activities. Furthermore, the staff lack needed training in educational planning and administration is well as the teaching experience and qualifications necessary to design curricula. 2.55 Examination Desiuln and Student Evaluation Examination design has also been centralized within MINED. Although teachers are asked to prepare examination questions, the extra work is performed begrudgingly, and the quality of submissions received is low. The grading of exams is done at the school level, again with no extra compensation for teachers, in accordance to guidelines established by the NDSE. Teachers are charged with grading the examinations not only of their own students, but also those of students from near-by private schools who must sit their exams at credentialed public schools. Cases have been reported of unfair grading practices, with teachers being unduly harsh on private school students. This is not surprising since private school students are known to pay fees as much as 100 times greater than public school fees and yet public school teachers receive no extra compensation for grading their written exams or administering oral examinations. 2.56 Presently the repetition rate in this level of education is 25%- 30%. High repetition rates are a reflection not only of poor student performance but also of the harshness and punitive nature of the existing evaluation system. It is an error to suppose that failing large numbers of students helps to improve the education process. Rather, what improves education is the availability of good quality textbooks and teaching/learning aids, the continuing education of teachers, and the creation of conditions for individualized student attention. From this standpoint, revision of the current assessment system is essential. The MINED has taken some important steps forward this past year, through the introduction of a credit system at the EPU level. Now, when a student fails to pass one subject, he or she no longer has to repeat the entire year, as was the case previously, but instead only has to repeat the failed subject. 2.57 Student Housu On t*- whole, while students appear motivated to study and even make considerable sacrifices, housing and transport present serious obstacles. Conditions in student hostels for those coming from the provinces to study are often in a deplorable state. There are at least 12 students to a room and in sometimes more than 20. There is no medical care, sanitary facilities are poorly maintained, and the premises are not cleaned. Areas reserved for study and relaxation are inadequate, and student meals are of poor quality. Information on the number of students currently residing in EPU dormitories and the average costs of student housing presented in Annex II-14. 2.58 Shl Secondary and pre-university schoois are managed by a director, aided by pedagogical assistants who supervise instruction, and a secretariat to oversee  - 16 - and administer school activities. The administration of a school in which more than 5,000 students are enrolled is very difficult, and the problems are compounded by the lack of administrative, educational and financial autonomy. While one should not expect the same degree of autonomy in a secondary school as In a university, it is both desirable and necessary to increase the present level of autonomy, which is virtually nil. It is also impossible to manage a secondary or pre-university school if the administration lacks certain essential educational and financial resources to ensure normal operation. 2.59 The school administration reports to the provincial directorate of education, which in turn answers both to the provincial governor and the Ministry of Education. Since communication between the school and the MINED is weak and the provinces in Mozambique have very little autonomy, it is difficult to reach appropriate decisions on school management. Furthermore, the central government budget allocation to the schools is grossly insufficient, and the gap cannot be completely bridged by matriculation charges, which go into a Social Action Fund. The students also pay a monthly fee (propina) of Mt 2,000-3,000, but this goes to the central government treasury and is not returned to the school. As these fees can add up to a considerable sum (in 1990, for example, Francisco Manyanga Secondary School collected Mt 22 million, or about US$10,500 on the parallel market), their non-retention by the school, combined with delays in services caused by an excessively centralized bureaucracy, is a serious disincentive for staff and students. 2.60 Community Pardlcigsn Decentralization of school management wIll only be truly effective if it is accompanied by increased community participation in school affairs. The current administrative structure of the school makes no provision for such participation. The establishment of a parents' council or community council, for examnple, could be a positive step in improving attendance and student academtc performance, increasing local fmancial contribution to the school, and enhancing the relevance of the curriculum to local needs and prioritiesj/ *}overment Mmufor Eaniversity Eduafi 2.61 Prior to the preparation of the project, MINED was guided by a written strategy, which calls for the development and expansion of upper secondary education, with the establishment of a pre-university school in every province by 1995. In light of the serious challenges faced by this tier of the education system, the Government's priority is now to stabilize the teaching force and improve the quality of existing secondary schools, before investing in an expansion of the upper secondary system. Prior to negotiations, MINED revised its policy to reflect this reality. An overview is provided in Annex II-15. 2.62 Physical upgrading of the existing EPU facilities is a straightforward necessity if Mozambique is to provide an adequate learning environment for pre-university education. Other measures which are needed to improve the quality of pre-university education - increasing the supply of teachers and upgrading the skills of the existing teaching staff, curriculum and examination reform, increasing the availability of textbooks, and improved management at the school level - are all included in MINED's policy document, but will require implementation. The following discussion presents proposed policy options and strategy for each of these 0I In Josina Machel Secondry School, for example, a Parents' Council has bee established, which in the pad year has succeeded n mug some $25,000 towards basc repaits m the school's infratucure.  - 17 - measures. Another issue which will also require policy development and strategic thinking in the longer term - post-secondary alternatives for EPU graduates - is also addressed below. 2.63 Inreasing Teacher SPnniY Higher salaries are an obvious method of attracting new recruits to EPUs, and for retaining e-disting teachers. When the proposed salary incentive fond becomes operational, this will benefit all teachers at EPU level. In addition, as in the case of the University, provision of housing is a sought after and appealing option for the attraction and retention of teachers, particularly in the provinces. MINED is prepared to explore altematives for increasing the supply of housing held by the EPUs, which would be provided to teachers in line with rental fees determined under the proposed salary incentive fund. 2.64 Another option for increasing teacher supply which was raised during a planning seminar for members of the NDSE and various EPU Directors held in December 1991 is the introduction of more rapid and efficient types of teacher training. At present, the one option offered by ISP is a 5 year licenciatura degree, which seems costly and inefficient given budget and labor market conditions in Mozambique. The pool of available teachers for EPUs could increase significantly if MINED were to consider more flexible and shorter-term possibilities for teacher training. MINED's policy document mentions specifically reviewing the option to provide in-service training up to master's level to secondary school teachers. 2.65 Expatriate volunteers, such as teachers provided through the UN Volunteer Program or the Zimbabwe-Mozambique Friendship Association, can provide a cost-effective temporary solution to the teaching crisis in pre-university education. Bilateral assistance can also help fill the EPU teac:ig gap. At present, tachers are being provided through British Cooperation, the Portug. -e, and the French, and the Catholic Church is discussing with MINED the possibility of providing Latin teachers (see Annex 11-16). While bilateral assistance can serve to fill the teaching gap is some disciplines, shortages will still remain in crucial areas such as Mathematics, Sciences, and Computer Sciences. Furthermore, whatever measures that the Government takes to improve the attractiveness of EPU teaching, or to increase the domestic supply of teachers are certain to take some time to produce results. Thus, in the short-term serious lacunae will remain in the number of teachers available to give classes to the existing student body. Volunteer teachers, to be provided in areas specified as priority areas by the Government, could be one way of filling these gaps. 2.66 hngroIng eam WngU allut At present, no strategy exists for upgrading the skills of the existing EPU teaching staff, either in the form of on-site teacher training, or workshops and seminars in which teachers from different schools convene for training in specific areas. MINED strategy for curriculum and examination reform entails expanding the role of teacher participation in the design of new systems. Seminars for discussion of eurriculum proposals can serve dual roles, therefore, and provide fora for short-term intewive upgrading courses. Furthermore, preservice training courses, to be developed under the proposed new three year Bachelor's course, can be prepared on a modular basis. In this way, currently employed teachers can, during school vacations, attend courses and work their way gradually towards completing the degree. Finally, improving the pedagogical management capacity at the individual schools and at the NDSE will enable school administrators to identify teacher training needs, and solicit the needed pedagogical materials for self-sdy and informal courses to be given at individual schools from the NDSE, and the NDSE's ability to respond to such demands. 2.67 Currlculauum d Evaluation. lgt The current procedures for curriculum development are inadequate. The NDSE is grossly understaffed, and the staff working at  - 18- preparing curriculum are underqualifled and overburdened with other tasks. Curriculum preparation is neglected as regular activities such as monitoring of examinations and the opening and closing of the school year require immediate attention of the few existing staff members. Subsequently, work on designing curriculum is squeezed Into three months between March and May. More time needs to be given to curriculum preparation, and more staff. The staff at BUSCEP, the remedial education program offered at the Universit, co compensate for poor quality pre-university training, have expressed their interest in helping to design the new EPU curriculum. Under the PPF for the proposed project, funds for technical assistance in the drafting of the new curriculum have been provided. In addition to the short-term (and urgent) need to prepare and disseminate the curriculum for 1992, there is a langer term need to give more careful thought to the proposed future contents of the curriculum for upper secondary education in Mozambique. It is unclear whether it is cost effective for pre-university schools in Mozambique to offer courses in Philosophy, Latin, or German, as are contained in the current proposed curriculum, given the shortage of teachers in these areas and the fact that many pre-university graduates wIll not obtain spots in the University. 2.68 Equally deserving of more study is the current examination system in Mozambique. Teachers have little leeway to vary from the curriculum if exams are overly- centralized. The challenge lies in developing a curriculum/evaluathin system which is flexible enough to leave room for receptiveness to individual initiatives, yet also achieves consistency in achievement levels and materials studies across schools and regions. MINED is committed to reviewing and acting on these issues in the years to come. The first step in the process will be the active involvement of EPU teachers in the process of drafting the new 11th grade curriculum next year, and in the preparation of the exams. Similarly, teachers will be involved in the preparation of the new curriculum for the 12th grade and exam preparation in the following year. And, members of the NDSE, jointly with representatives from the BUSCEP program and school representatives, will form a review committee to analyze the new curricula, and prepare the gound for further reform. 2.69 aIn SchooMlnag menmL..lkhmI In 1990 the directors of four pre- university schools proposed to MINED that a limited amount of the investment budget be earmarked for the schools, to be spent according to the wishes of the school officials themselves. They also suggested that fees be increased for atudents attending evening courses, since many of them working in business or for the Government and can afford to pay more. These fees would also remain with the school and help to cover needed maintenance. The directors' letter highlights the seriousness of the current situation in which excessive centalization and bureaucracy hampers effective school management. An important policy issue for MINED is how to decentralize cetain aspects of school management, while maintining accountability for the pedagogical and financial results obtained. There is also the issue of how to support experiments in community participation in school management. 2.70 Discussions with Ministry of Education officials during project preparation revealed support on the part of the Ministry for the increased decentralization of ;inancial ano administrative functions to the sc-hoc' level, contingent upon the adequate training of school officials and the clear definition of noans and staundards for personnel and financial management. At present, the Directorate of Administration and Finance, joindy with a FUNDAP team, is working in these areas. 2.71 Bn_dzyA mm EPU students are in general strongly committed to going on to higher studies. However, given the rising trend in enrollments in pre-university  - 19 - education and the policy to hold down the size of the university, the Issue arises: what options can be offered to the EPU graduate who does not succeed in getting into the university? At present, there are few other post-secondary forms of education for these persons. In this context, It would seem appropriate to examine, in terms of labor market requirements and the preparation of mid- level personnel for government service and the private sector, to explore possibilities of developing other types of post-secondary training, such as para-legal and accountancy training. 2.72 Secondary education in general, and pre-university education ip particular, has been relatively neglected in terms of external support to the education sector. In 1990, external assistance accounted for about 40% of total education expenditures. Of this, only 4 percent is allocated to secondary education, with about one-half of these funds going to the pre-university schools. In other words, less than two percent of total external assistance to the education sector went to the pre-university schools. And yet, this funding accounted for nearly 50% of total reported spending on pre-university education, reflecting the low domestic budget allocations to this tier of the education system. 2.73 The principal donors active in suppordng upper secondary education in Mozambique are the Ford Foundation, the British Council, the Portuguese Government, and the French (see Annex 1. 16). Unlike support to primary education or to the University, there has been no consolidated program of support to secondary education in Mozambique. Donor assistance has taken place on a piecemeal and fragmented basis, reflecting both the low levels of financial contributions involved, and the lack of development of a clear strategy for pre-university education. While the priorities for the education sector in Mozambique clearly lie in primary educatiOn, and, in maintining the capacity of the University, it makes little sense to repair several rungs of a ladder and leave a gaping hole in the middle. A certain critical amount of investment is needed in secondary and pre-university education to ensure the progression of students on to the University and to managerial positions within the public and private sectors. 2.74 Like other donors, IDA's lending strategy to the education sector has until recently neglected secondary education. The proposed credit will fill this gap by stabilizing the existing pre-univeraity system, as well as supporting longer term improvements to the system. Furthermore, investments in pre-university education will support previous and future investments in higher education, by improving the quality of University entrants, thus reducing the need for remedial training and contributing to declining drop-out and repetition rates.  -20 - m. THE F2O^CT A. Genra 3.1 The bQ jbectiv of the proposed Capacity Building Human Resource Development Project are to: (a) expand the quantity and improve the quality of university graduates, by stabilizing and motivating the Mozambican teaching faculty, enriching the learning anvironment, upgrading and maintaining the UEM physical facilities, and improving organization and management practices; and (b) enhance significantly the quality of upper secondary education, by taking important positive steps in the areas of teacher training, provision of books and other teaching/learning materials, school management and community involvement, and school facility rehabilitation. 3.2 In outline, the main proect cogonents, to be implemented during 1993-97, are: (a) Unlversitv Stabilzadin: upgrading and construction of faculty apartments; staff development; institutional linkages to bolster key departments; supply of library materials, textbooks, computers and other teaching materials; enhanced management and accountability; expansion of student dormitories; and general upgrading of university physical facilities and development of a maintenance program. (b) UIJ. Seaqngb. Education mnpr.oemsnt: accelerated teacher training; curriculum reform; supply of textbooks and teaching aids; school management training; establishment of a scholarship fund for girls; rehabilitation of six existing pre-university secondary schools (EPUs); construction of staff housing and student residences. B. Detai e DestDtion UnIveiity Stabilization (base cost US$30.3 million) 3.3 The specific objectives of this component are to support the university's institudonal stabilization program by improving educational quality; reducing staff losses; increasing accountability; strengthening management; ensuring adequate regional and gender representation; and restoring the physical plant. It consists of the following subcomponents: (a) Textbook acquisitions, local textbook publishing, focused insdiutional linkages, additional library space, curriculum studies and a university-wide computer training program to upgrade educational quality and improve graduate output (US$5.3 million). (b) Completion of 92 partially constructed university apartments, renovation of 108 existing units located on campus, acquisition and rehabilitation of several apartment buildings to furnish an additional 100 units, and an eventual savings  - 21 - incentive scheme for academic and senior administrative personnel intended as staff retention and recruitment measures (US$6.5 million). (c) Staff development and retention through graduate training abroad (US$3.6 million). (d) Annual audits, work plans, reports, training, technical assistance and planning studies designed to increase universihy accountability and management capacity (US$2.2 million). (e) Construction of two additional student residences to insure regional and gender representation as the student population grows (US$3.9 million). (f) Building rehabilitation and establishment of a regular maintenance program (US$8.8 million). 3.4 IprAved Educational Quaity A collection of complementary activities seek to improve the quality of teaching and idcrease graduate output. Principal among them is a sharply increased provision of textbooks and study materials. The university will import portuguese ;anguage texts and also contract its own staff to prepare and publish a series of study manuals to insure that study references are available for all principal courses. This combination of imported and locally produced texts will provide for most of the introductory courses and eventually cover 20% of all courses offered. These books will be sold at cost to students and the general public through a small university bookstore which will be established for this purpose. Whenever portuguese language textbooks can be identified in international markets at relatively reasonable cost, while maintaining qiuality and relevance to the Mozambican curriculum (the unit cost of imported textbooks normally exceeds the unit cost of locally produced materials), they will be used in the effort to rapidly expand textbook availability to students. 3.5 In order to maintain management flexibility as experience in book provision is gained, an IDA contribution of US$935,000 will constitute a book fund that can be used either to import texts from lusophone countries or to produce them locally. Unit costs for local production are estimated at US$10 per book, as opposed to roughly US$30 for each imported book (including shipping and customs clearance). (See Annex III.1) The value of the book fund was estimated on the basis of calculating the initial capital necessary to import roughly 9(i textbooks and locally produce 138 study manuals. Additional monies are provided for the importation of 3,700 basic reference books that students will be encouraged to acquire as the basis for personal professional libraries. Also included are limited funds which will complement Ford Foundation funding for the University Press by providing essential equipment replacement and training necessary to support local text production. Other pertinent donor contributions in this area include US$0.5 million from SIDA and SAREC for library acquisitions, US$46,500 from SIDA for textbooks, and a Dutch program of pedagogical training which includes textbook preparation. The IDA credit will underwrite a detailed operational study of how the bookstore might best be organized and administered on a cost-efficient, cost-recovery basis and guarantee the skilled managerial expertise necessary to launch this new endeavor (see Annex IV.5a). This study will also determine the relative cost-effectiveness of the three options for increasing the supply of teotbooks: importation, on-site printing at the University, and contracting out of printing to the local private market. Although US$175,000 will be available to initiate the book program during the project's first year, completion of this study. and its acceptance by IDA. will be a disbursement condition for the remainder of the book find.  -22 - 3.6 Second, computer training will be expanded as a required course in all university departments. Giver the scarcity of skilled professionals in Mozambique, this decision is a cost- effective way of increasing their productivity as graduates, and of giving them skills that are increasingly required in the workplace. Credit funds will cover the acquisition of computers, printers, software and supporting equipment, and also provide for the training of departmental staff charged with these teaching responsibilities. 3.7 Third, library and reading space will be expanded in a number of departmental libraries that have reached capacity, and associated sanitary facilities will be repaired or augmented. This will allow for improved organization, access and use of these reference resources. Libraries serving the departments of agriculture, economics, architecture, veterinary medicine, and social sciences have been targeted for upgrading under the current project. 3.8 Fourth, critical capacity-building needs in the UEM departments of economics and engineering will be addressed through a strengthening strategy based on linkage agreements with selected universities located outside the country. A flexible fund of about US$3 million will be used for this purpose. Funds will cover contact travel, communications, research, training, visiting faculty, library acquisitions, and equipment purchase associated with these linkages. The university will develop terms of reference which outline its linkage needs, invite an identified group of universities abroad to bid on this basis (see Annex M.2), and negotiate a ffal agreement with the most attractive bidder. Concrete contributions from the collaborating partner in this linkagl will be an important consideration in making this choice. And to insure effective management within the staff-depleted department of economics during this critical re-building period, the Credit will finance 72 person months of consultancies. Terms of reference for these contracts are in the implementation manual. 3.9 Finally, two studies will be undertaken to infbrm the university's longer term academic plarning. One will analyze the causes of poor academic performance (including among women sients), review the relevance of the present curriculum and its equivalency with other university programs in the region, and explore the feasibility of moving towards a system based on academic credits. The other will assess the viability of initiating a distance education program to attend the high demand in certain disciplines, e.g. economics, law. Terms of reference for these studies are included in the implementation manual. 3.10 H,mI.gforJSaff1gMdor, The university has defined a two-part housing strategy for atrang and retaining skilled academic and administrative staff. ITe first is to provide immediate access to housing as a short term recruiting and retention incentive. This will be done by increasing the current UEM housing stock from 251 to 443 units. These additional 192 apartments will accommodate the 103 staff who are currendy on the university waiting list, as well as the expected growth in staff by 1996 (Annex M.2), based on a Bank-recommended staff/student ratio of 1:10 (the current ratio is 1:8.2). Ninety-two of these units will be provided by completing the construction of on-campus faculty apartments that was begun with East German assistance, but left unfinshed when German unification interrupted project implementation. Detailed cosftig for rehabilitation, including unit cost esimats, is oudined in Annex m.3. 3.11 The remaining need for 100 units wDi met by rehabiitaing several off-campus apartment buildings. Cost analysis indicates that this option, which includes resettlement of the current tenants, is more cost-efficient (esdmated US$40,470 per unit) than the construction of new units (estimated US$52,400 per unit). A ettm plan acebe to the Bank hase prmentd =nagoia ons. Implementation of this plan will be monitored throughout the  -23 - resettlement process by IDA. These activities will be carried out in collaboration with the Bank- supported Urban Rehabilitation Program organized within the Ministry of Public Works. The Ministry has already identified two suitable buildings that contain 78 apartments, and has core housing available in which to rosetde the building occupants. (See Annexes III4 and M.5). 3.12 in addition, as part of this project, 108 existing on-campus units constructed under the East German project will be renovated at an average cost of US$2, 100. Even though they are relatively new, they have suffered notable deterioration due to the lack of a regular maintenance program. The Netherlands have expressed interest in co-financing this activity. 3.13 Access to this housing will be governed by existing UEM regulations. These employ a point system, based on a staff member's responsibilities, academic degree, length of service and performance, to prioritize staff housing requests. 3.14 During credit negotiations, the Government agreed on two issues connected with ipersit housiaLng. First, occupants of UEM housing units should be charged a monthly amount equal to the estimated costs of property maintenance, repair and management in order to make this a self-financing operation. This amount is calculated to be approximately US$100 per month (Annex 1.6!). It is essential that the improved housing stock be maintained in order to protect this housing investment and extend the life of this asset. Second, the university must identify an appropriate management agency, located outside of the university administration, to be given responsibility for the maintenance and repair of university housing. UEM should not get into the business of property management. Terms of reference to request proposals have been prepared. By June 30. 1993. UEM will Dresent the deied troosals for tis operation and a neftgae contract with a mangmetfirm . 3.15 The second part of the proposed UEM strategy is to insure staffing stability over the long term by offering the possibility of home ownership linked to length of service. A study contracted by UEM in February/March 1992 developed an interesting model for how staff savings might be encouraged and eventual purchase of housing achieved. In essence, the model combines features of a no-down-payment mortgage scheme with a joint employee/employer savings program similar to a U.S. thrift plan or U.K. provident fund. Using matching contributions from government as a savings incentive and employing a vesting formula to link accumulated benefits with length of service, the initial model is instructive but requires additional development. 3.16 In the long run, this model addresses the principal barrier to home ownership: the current inability of individuals to accumulate capital through savings. For this reason, and because the model could be equally applicable to the larger sector of civil service, the borrower has agreed that the feasibility of implemeting such a scheme will be formally reviewed on an anumal basis. 3.17 During appraiEal, the option of a monetized staff retention incentive was explored and still found ineffective under present circumstances. Under the incentive structure of tie proposed salary incentive fund, most UEM employees would see their salary doubled, which would not enable UEM staff to obtain access to housing. The government's national housing administrtion (APIE) currently has a waiting list of 90,000 persons for whom it is unable to provide rental housing. This number is roughly doubh the total number of housing units contained in the city of Maputo. As a result, expatriates regularly pay US$2,000 to $3,000 a month for housing rental. UEM's proposed salary increase under the incendve fwd would not go  -24 - to such levels. In short, a fully monetized beneft presently holds little promise of providing a lasting solution to the UEM staff retention problem. 3.18 Staff Development A general staff development fund will be created to support professional training of both academic and administrative staff. This investment in staff training is expected to (a) improve the quality of university teaching and research; (b) enable the progressive substitution of expensive foreign teaching staff with qualified nationals, thereby contributing to institutional stability and development; (c) provide staff retention incentives through the promise of additional professional training; and (d) encourage more balanced institutional development by creating training opportunities for staff in disciplinary or administrative areas not normally of interest to other donors. The fund will allow resourees to be used in conjunction with, or as a complement to, other donor contributions, e.g. airfares, research awards, tuition waivers. At present, the university receives from donors almost US$1 million annually earmarked for graduate training of staff from specific departments, often restricted for use only in the donor country. 3.19 The staff development fund is budgeted at US$3.6 million. This amount will provide an estimated 50 MA and 4 PhD fellowships, covering about 140 person-years of study abroad at an average annual cost of US$25,200 (see Annex I.7). These are expected to cover 25 percent of the university's staff development needs over the coming five years, and to increase the proportion of UEM staff with graduate degrees from 16% to 32%. Fellowship awards will be proposed by university departments in accordance with their staff development plans, and approved by the UEM Scientific Council on the basis of established criteria. Through its support for staff access to housing (outlined above), the IDA credit seeks to ensure that the benefits of this extensive staff development program are captured by the University. 3.20 The university will manage this fellowship program directly, rather than to contract it to an institution which specializes in this activity. Direct UEM management has the advantage of reducing administrative overheads by at least 30%, of maintaining a direct link with the awardee, and of building UEM capacity in this area which might be used as a basis for seeking other donor contributions to the staff development fund. The Office for Studies and Projects (Gabinete de Estudos e Projectos) will assume this responsibility, and will hire two additional staff for this purpose. It has already drafted a fellowship management plan which was favorably reviewed by IDA at appraisal, and will prepare a reference handbook for fellowship recipients on their entitlements and administrative procedures. 3.21 Esuring leonal and Gender Rerentation The university needs to construct seven student residences on campus to alleviate current problems of severe crowding in dormitories, to make up for the return of one major dormitory to the Catholic Church, and to insure housing for provincial students that the government hopes will make up at least one-third of enrollments. Two of these buildings are currently under construction with US$1.6 million from SIDA, and are scheduled for completion in 1993. An additional three dormitories, together with supporting infrastructure for the entire complex, will be erected with US$5 million committed by USAID. IDA credit funds underwrite the final two buildings, a student social hall, and support services office. Building design and university policy will permit this new residence space to be allocated to women students in proportion to their numbers. Technical documentation for this construction is available. 3.22 Rehabiltation of the UE Physical Plant This action represents a one-time only intervention to rectify over 20 years of neglect and restore the university's current buildings  - 25 - to an acceptable state of repair. With assistance from the Faculty of Architecture, UEM has conducted a needs assessment, identified priorities and costed them out, and elaborated a work program for the first year of the project (Cost estimates and implementation schedule presented in Annex IV.4). Because of financial constraints in government and policy constraints among donors, IDA assistance offers the only possibility of addressing this urgent infrastructural need. 3.23 Any investment in building rehabilitation will have little value unless an effective UEM maintenance program is put in place to safeguard these improvements. The UNDP financed study of this subject during 1992 will define maintenance systems, procedures and possible training requirements for putting this program into place. Responsibility for program supervision will rest with the University Buildings Office (see para. 3.27). Accordingly, agreement has been reached with the Government during negotiations to gradually increase the annual provision for building maintenance up to 2% of replacement value in the ULM 1997 recuffent budget. 3.24 Imnrogjng MnagnnLt and Accountability The university proposes to strengthen its accountability to government, its donors, and society in general by (a) publishing an annual report which analyzes its institutional performance, provides key indicators and statistics, and includes a financial statement; (b) organizing annual meetings for representatives of government, donors and the private sector at which the annual report and coming year's work plan are discussed; (c) producing semestral activity reports at the Faculty level for yearly disussion with representatives of relevant government, donor and private sector institutions; and (d) contracting an annual external audit by a reputable firm for inclusion in the annual report. An initial consultative meeting was held in May 1991 to discuss the UEM stabilization plan. A second annual meeting, along the lines indicated above, is planned for November 1992. 3.25 In addition, management capacity will be reinforced. Short-term management training will enable key administrative staff to improve their performance and create a staff retendon incentive for this often neglected but important group. Training opportunities will be linked to a staff development plan, recently developed by the UEM personnel department, that seeks to anticipate the university's changing needs for management, administrative and technical sklls as it becomes a larger and more complex educational institution in the course of the 1990s. 3.26 These activities will also be informed by a general review of university management and governance that was undertaken with assistance from the Ford Foundation and the Commonwealth Secretariat in March 1992. Part of this assessment focused on re-structuring UEM financial administration, which is currently spread across three thinly staffed offices. In light of the critical importance that sound financial management will have for the successful implementation of the UEM project, the University plans to bolster this sector by recruiting four additional staff. A senior accountant and a procurement officer will be hired under the project. In addition, the University will itself hire a junior accountant and a second procurement officer. These staff will be trained by a procurement specialist, who will spend four months at the University and assist in the preparation of initial tender documents. Moreover, the project includes a fund of US$300,000 which will be used for training, equipment and expert advice needed to carry out the UEM fiancial restrucuring plan, and to begin to put into practice some of the recommendations that will be generated by the various management studies (see para. 2.27). 3.27 To manage the wide range of construction and rehabilitation activities contained in the project, and to insure that a regular maintenance program services the improved physical  -26- plant, the university has created a University Buildings Office (GIU - Gabinete de Instalacoes Universitarias) to carry out these responsibilities. The GIU will be headed by an experienced architect or civil engineer with physical planning experience who will be recruited from outside the university and paid for under the project. He or she will be assisted by two less experienced persons-an architect and a civil engineer-who have already been hired by the university. The university has also provided space for this office, while the project will contribute equipment and furnishings. To insure effective coordination, the GIU will work with an advisory committee composed of knowledgeable individuals from both within and outside the University. 3.28 Finally, two technical studies will contribute to longer term improvements in university governance and management. One will explore the legal and political possibilities of changing the university statutes to increase its autonomy from government, thereby providing UEM with greater flexibility in its financial and p"ersonnel management. This study is expected to inform parliamentary legislation on higher education anticipated later this year. A second, later study will conduct a cost/benefit assessment of transferring the university's central offices from their current downtown location to the main eampus several miles away, and elaborate a preliminary budget for this purpose. The move is expected to improve communication with students and faculty, speed decision-making, and reduce transportation expenses between the two sites. Terms of reference for ehese studies are included in the implementation manual. USer Secondary Educadon Improvement base cost USS18.1 million) 3.29 The overall objective of this component is to improve the quality of entrants to the University, thus reducing unit costs at the University through cutting down failure rates and eliminating the need for remedial education programs. This objective will be achieved through stabilization of the existing EPU network; improvements in the quality of pre-university education nation-wide; and strengthening of management capacity and maintenance capabilities at the school level. The component consists of the following: (a) Improvements in the uanUly of prenlvXedty education by increasing the supply of teachers, supporting the development of a new curriculum and examination system; increasing the availability of textbooks and other learning materials; providing teachers with pedagogical support in the form of teaching materials and supervisory visits; strengthening the strategic planning capacity of the NDSE; and improvements in the system of in-service teacher training. (US$3.4 million). (b) StablUz he E ndwtork by rehabilitating the existing schools, and constructing dormitories and staff housing (US$12.5 million). (c) Building man_d of the EPUs and the National Directorate of Secondary Education, and strengthening school maintenance capability by in- service training for school directors and administrators in planning and financial management; decentralizing the materials budget and maintenance activities; strengthening project management; and introducing efficient information management systems at the school level aid between MINED and individual schools. (US$1.4 million). (d) aS gI enrollment CUE at the EPUs, by providing scholarships for girls, supporting community awareness programs, and increasing the number of female teachers (U.S.$860,000).  - 27 - 3.30 hunroine Eucatonal uaLy A set of activities was designed to improve the quality of upper secondary education. Principal among them are improvements in curriculum and student evaluation; studies on the current system of textbook supply and distribution and support for the provision/production of teaching and learning materials; planned increases in the supply of teachers; and improvements in administrative training systems and in-service teacher training. 3.31 The project will support the development of a new curriculum, study plans and examination system for the EPUs, supervised by the NDSE; the preparation of training materials; the design and Implementation of pedagogical seminars to disseminate curriculum activities, new educational technologies and methodologies; the payment of honoraria to EPU teachers in the preparation of study guides and examination questions; and supervision visits to EPUs. The credit will also finance a study on options for increasing the relevance of the EPU curriculum. A team of foreign curriculum specialists, financed by the Credit, will work directly with NDSE staff and local experts in the preparation of the new curriculum and study plans (09 person months of foreign consultants, 24 person months of local consultants). The credit will also finance equipment and supplies for the NDSE to support curriculum development activities and the dissemination of produced learning materials. 3.32 Concomitant with the development of new curricula, the technical committee would review the long-term feasibility of including the disciplines as currently elaborated by MINED. Study funds would also be included for evaluation of the current examination system for EPUs (3 person months of foreign consultants, 12 months of local consultants); the preparation of training materials ( 6 person months of foreign consultants, 12 months of local consultants) for use in the evaluation of examination results as an aid in improving teacher quality; and to d -velop recommendations for the preparation of a new system of examinations for the EPUs. 3.33 The funds for payment of honoraria to EPU teachers in the preparation of study guides and examination questions will be managed by the school directors in accordance with the existing budget procedures during the first two years of the project. In the subsequent years, decentralized budget procedures will be implemented. Selection criteria for the payment of honoraria are described in the component in4plementation manual. 3.34 Credit funds will also support the reinstitution of annual pedagogical seminars to be held in Maputo and periodic technical meetings to take place on site at the EPUs, which have fallen out of practice due to lack of funding. Annual pedagogical seminars, to take place in July during school holidays, will be held to upgrade the skills of teachers in the development of the new curriculum, and teaching/learning and evaluation methodologies. A seminar was also held in 1992, financed under the PPF. In 1992 and 1993, these seminars would serve to introduce the proposed curriculum, while in later years the seminars would provide fora for skills-upgrading covering pedagogical methodologies in specific disciplines or general pedagogical topics. Funds for annual seminars, covering per diems for participants, will be provided to the individual schools, while the NDSE will be provided with a travel budget to cover costs of staff visits to the schools. Teachers' participationt in these seminars will factor into their performance evaluations and career progression. A list of proposed future topics is included in annex mI.8. 3.35 A training strategy will be designed and implemented by ISP to support (i) upgrading of the pedagogical and subject content skills of the existing body of EPU teachers; (ii) providing opportunities for bachelor-level EPU teachers who are located outside of Maputo to obtain further education; and (iii) funding a study to analyze options and make recommendations for the introduction of alternative forms of pre-service teacher training. Credit funds will also  - 28 - finance a staff development program to prepare EPU administrators and NDSE staff members for their increased managerial responsibilities under a more decentralized system for pre-university education. 3.36 The training strategy to be designed and implemented by ISP should explore alternatives methodologies, combining distance education and/or other training methodologies aiming at avoiding replacement of teachers during the school year. Under terms of reference (Annex m.9) ISP staff and members of the NDSE will develop a detailed proposal for the training program, combining distance education and/or other training methodologies to provide a licenciado to EPU teachers currently holding a bachelor degree and to implement skills-upgrading courses in specific disciplines or pedagogical topics. This proposal will include the terms of reference for any local or foreign technical assistance to be contracted. A proposal. satisfactory to the Association. for the training program of the first year will be presented by ISP and MID INDSE as a condition of disbursements. This proposal will include type and number of trainees and trainers; objectives and length of training activity; and estimated budget. Credit funds will finance the study of pre-service options; the distance education upgrade program; and scholarships for EPU teachers already in the field; travel costs and per diems for course participants; salaries of trainers; and production and distribution of training materials. A technical agreement will be signed between MINED and ISP prior to implementation of the training program. 3.37 The NDSE will be responsible for coordinating training for school administrators. The credit will finance in-service training and/or courses in pedagogy and educational planning for NDSE staff and EPU administrators as well as technical assistance, both local and foreign, to asist NDSE in the design of seminar topics and appropriate materials. These activities will begin only after completion of the studies on school budgeting and the drafting of school regulations, as described in paragraph 3.42. Details of the training program, including selection criteria for participants and course objectives, are provided in the component implementation manual. 3.38 The credit will finance a study to be managed by NDSE which will explore options for the production and distribution of textbooks for the EPUs. The Government will allocate funds to pay teachers for the preparation of workbooks and learning materials. Details on the criteria for selection, schemes of payment, and calculation of fee levels are available in the component implementation volume. As in the case of honoraria for the production of examination materials, the borrower has agreed during negotiations that the Government will assume full responsibiliq for the financing of this fund. 3.39 The credit would also finance equipment for the production of the workbooks and learning materials at the school level; and the provision of a fax machine to each school and to the NDSE, so that communication between schools would be facilitated and that materials prepared in one school could be swiftly transmitted to other schools. This sub-component will also furnis laboratory equipment, library books (200 new books per year per EPU ) and the provision of a kit of teaching materials by discipline or group of disciplines to support improvement on teaching and students' learning abilities. Deailed descriptions of equipment and teaching materials are provided in the component implementation manual. 3.40 Increasing the supply of teachers is a fundamental element in improving the quality of pre-university education. As discussed in Chapter 2, at present, EPUs are grossly understaffed. Shortages of teachers are particularly acute in the areas of Math/Physics, Computer Science, Portguese, and English. Analysis of the future supply of ISP graduates indicates that  - 29 - these areas will continue to be grossly understaffed during years to come. The project proposes to support an increased supply of teachers to EPUs through the following activities: (i) undertaking a study during 1992, to identify priority areas for expatriate teachers to be contracted; and (ii) refining proposals for the gradual contracting of UN or other volunteers, the project proposes to finance, on a decreasing basis, a total of 45 volunteers. Additionally, funds for project preparation under the Second Education Project (Cr.2200) will finance an inventory of the existing housing stock of the EPUs, estimating unit costs for housing construction, and the development of a proposal for building housing stock to serve half of the EPU teaching body some share of which would be constructed under the project civil works component. 3.41 Stabilization of EPU Network The project proposes the rehabilitation, re- equipment and in some cases physical expansion of 6 existing EPU's, the rehabilitation of one and construction of 4 student dormitories and the construction of 43 staff houses. The objectives of the rehabilitation programme are that (i) all EPU's meet the minimum space and curriculum needs dictated by the curriculum; (ii) opportunities are created for male and female students from throughout the provinces to attend pre-university schools; and (iii) teachers can be retained by provincial institutions through the provision of housing. Final designs for the rehabilitation and the new facilities will be prepared by consultants during the first year of the project and will be submitted to IDA for comments and approval. Due to financial constraints the entire rehabilitation needs of each school may not be met by the project. Cost estimates are based on preliminary surveys and further investigations may reveal problems which have not been foreseen. Where necessary, priorities will be set in accordance with the basic objectives of this component. The final decision regarding implementation of the proposed rehab.litation program for Xai-Xai in a zone which was recently attacked or construction of a new school will depend on the situation at the time of the first project implementation seminar. Designs for both options would be prepared. Prior to negotiations, all sites for construction of new facilities and houses were allocated to the MINED by firm title or "Direito de Uso". 3.42 Building manaement and administrative canaitX at the school and central levels will be supported through preparation of materials on financial management, school regulations, budgeting, and planning followed by the dissemination of these materials at a seminar to be held for EPU directors and administrative staff. Credit funds to be provided under this sub- component will also finance short-term overseas training in planning, school administration, educational technology and pedagogy for both NDSE staff and EPU administrators. 3.43 To ensure effective project management, the credit will finance the hiring of additional staff within GEPE (one lawyer, one civil engineer, one accountant, and one procurement officer, and an administrator) and provide funds for office support. Considering also that the NDSE is a new unit within MINED, and does not have the experience of developing international projects, the credit will also finance 24 person/months of local consultants' services to support the NDSE/PTG (Project Technical Group) in the implementation of a management system for the technical sub-components and in the coordination of arrangements between NDSE and GEPE, during the first two years of project implementation (see paras. 5.4-5.5). 3.44 Ienproving girls' enrollments The credit will finance about 280 scholarships in the EPUs over the life of the project. Scholarships are primarily intended for girls enrolled in the EPUs in Xai-Xai, Quilimane, Nampula and Beira, and will be gradually introduced. Criteria for selection would include ESG performance, family income, family size, and place of residence (with preference given to girls from rural areas). Scholarships, equal to no more than 20% of the total number offered, can be extended to all low-income students, under the established criteria  - 30- for girls. The unit cost for a scholarship covering all sc,ool fees, the purchase of school stpplies and textbooks, and the costs of housing and transport is roughly US$3000 equivalent per scholarship. 3.45 In addition, the physical works components of the credit would provide special attention to the needs of female students. Dormitory construction would ensure sufficient, and separated, dormitory space for girls, increasing the number of spaces for girls currently available. School rehabilitation would include the provision of adequate bathroom facilities. Teacher training and school management components would each include seminars directed towards increasing fem.ie participation and enrollment. Pedagogical seminars will address teaching methodologies for encouraging the participation of girls in the classroom. School management seminars will train school directors in community outreach and awareness campaigns to increase female enrollments. Finally, seminars would offered to the principals of lower secondary schools, to train them in methods to encourage the continuing education of their female students.  -31 - IV. WTC rANAA. A. proJeet Costs 4.1 The total cost of the project is estimated at MT152 billion or US$60.3 million equivalent. Base costs are estimated at US$48.4 million equivalent and contingencies at US$11.8 million equivalent (24.5% of base costs). Foreign exchange costs are estimated at US$35.4 million or 73% of base costs. Taxes and duties included in project costs account for approximately 10% of total project costs, or US$6.3 million equivalent. All costs are based on April 1992 prices. Project costs by component are summarized in Table 4.1. 4.2 Project costs by expenditure category are shown in Annex IV-1. Capital costs for civil works account for 52% of base costs; furniture, equipment, vehicles and supplies and materials for 10%; training for 12%; technical assistance for 18%; and incremental recurrent costs (salaries and allowances, utilities and supplies, and operation and maintenance of buildings, equipment and vehicles) for 8%. 4.3 Civil works costs have been estimated on the basis of the value of current contracts for comparable buildings. For UEM, construction costs are based on the rates of US$400 per sq.m. for new staff housing and dormitories; an average cost of US$220-280 per sq.m. for housing rehabilitation and US$56 per sq. m. for upgrading other University buldings. For secondary education, construction costs are based on a rate of US$20-50 per sq.m. for rehabilitation of EPUs (US$100 per sq.m. for Josina Machel); US$350400 per sq.m. for extension work and construction of dormitories; and US$400 per sq.m. for new teachers' housing. The cost of furniture, equipment, and supplies is based on contracts for similar items recently awarded by MINED and the University or calculated as a percentLge of construction costs in the case of new facilities. Average unit costs for overseas degree study are taken to be approximately US$25,000 per year, with short courses and study tours costed on the basis of actual comparable training programs. Technical assistance costs include airfares, fees, allowances and taxes to be paid by the borrower. Incremental salaries are based on current Government scales, and local training costs and operational and maintenance expwenses are based on actual recent experience in Mozambique. 4.4 The total project costs include an allowance of US$11.8 million equivalent for contingencies. Physical contingencies are 10% for civil works; 10% for vehicles, equipment, and furniture; 5% for supplies and materials; and 20% for technical assistance and training comprising US$4.6 million equivalent or 10% of base costs. Price contingencies have been esimated using Bank projections of international and domestic inflation, and assume the annual rates of increase set out below. lhe exchange rate used during appraisal was M12000 = US$S.The nominal exchange rate is assumed to adjust during the life of the project so as to maintain a constant real exchange rate, given these projeted inflation differentials. 12932 i9 195 1 1921 Foreign 3.9 3.9 3.8 3.8 3.8 3.8 Local 20.0 15.0 10.0 10.0 10.0 10.0  - 32 - Table 4.i (US$ Million) iTp.R R . R: r: s:. o ".ie. 1.25 4.01 .26 76 11 |}:;,Rm ,.i ..... ,, f, II~i.Ig' 2.17 4.37 6.54 67 13 "'''V.' Dove $'o - " 8 -34 3.60 95 7 1>. Muae t R pi . 0.60 1.60 2.20 73 S R ^ ;j:'''' :,'."'1~esi4 s '"1,.2$ ' 2."64 89 68 . btots: e: ............. ; -:; - . - : ;.8.33 - 21.9.8 30. : 31 73 6. T~Jr~~vemente 0,86 2.13.36 75 : > BR. PA0iltti R :,~m4l B.16 , '12.40 7 2 C. ~4~aa.inent DvIopmsnt 0.330 -1.42 77 27 ., "5' . 12.55 18.12 ' ' 3 121 i.43 464 ~41 .: ...................... . ; .,Z."0 .... :2.v79 . I3 3 .: ^. 4.5 Project costs include an estimated US$6.3 million in indirect taxes on locally procured civil works and goods, and on technical assistance fees. In addition to these taxes and duties embedded in project costs, the Government imposes a series of taxes and duties primarily on the importation of goods and equipment which have to be paiW by the buyer separaty, even if the buyer is a government agency. Therefore, in addition to its contribution to the project costs, the Government would have to set aside a total amount of US$6.7 million in dutes and taxes, or about US$1.1 miion a year which it has to make available to the implementing ministries in order to be paid back into general revenues. These duties and taxes have not been included in total project costs as they are not usually  -33 - embedded in the prices of goods and services. To include these taxes and duties in project pricing would artificially inflate the project costs, as they are in essence a transfer payment from one branch of Government to the other. Given the Mozambican legislative context, it is necessary calculate the tax burden as the Ministry of Finance will have to allocate funds to the appropriate line Ministries so that the indicated levies to release imported goods from customs, etc. will be paid. Annex IV-2 provides a schedule illustrating both types of taxes and duties, those included in project costs, and those which enter as additional payments by Government. Annex IV-3 provides estimates of the tax burden generated by the project due to this second group of taxes and duties. 4.6 The foreign exchange component of US$34.5 million was Lalculated on the following basis: (a) civil works 70%; (b) furniture 91%; (c) vehicles and equipment 95%; (d) supplies and materials 95%; (e) technical assistance 77%; (f) training and workshops 70%; (g) overseas training and study tours 95%. For incremental recurrent costs, the foreign exchange components were estimated to be 95% for vehicle operating and maintenance costs and 20% for building maintenance. 4.7 The proposed project will require incremental recurrent expenditures for local salaries for additional staff and operation and maintenance costs for buildings, equipment and vehicles. Total incremental spending during the life of the project will amount to about US$4.8 million equivalent, or 8% of project costs. Annual incremental expenditures to be added to GOM will average about US$670,000 equivalent, US$440,000 for UEM and US$230,000 for upper secondary education. This contribution on the part of Government accounts for less than one percent of total recurrent expenditures made by Government in 1991. Estimated incremental costs generated by the proposed project will account for approximately 1.5% per annum of the recurrent budget for the education sector. 4.8 During project preparation and appraisal, every effort has been made to minimize the incremental recurrent costs associated with the project, by limiting the numbers of additional staff required, rehabilitating existing buildings instead of constructing new ones, etc.. However, a certain level of additional recurrent spending is seen as unavoidable, if project objectives are to be achieved. In order to ensure the financial sustainability of the project, a strategy for recurrent cost financing has been developed for each of the main components: (a) For the University, all staff occupying housing will be asked to make a monthly 'user payment" wbich is estimated to be about $100. These monies will be used to cover routine maintenance, and to contract private management of the university housing stock so that this burden does not fall on university inistration. By June 30. 1993 a detailed action plan to operate and maintain UEM's housing including a syster for the collection of user's maintenance and management fees and a drafi ne ated contract with a mnanement firm will be presented to IDA for review. All textbooks produced or imported under the project will be sold at cost, and this price calculation will include labor and overheads associated with the new university bookstore as well as full unit costs at the university print shop. Maintenance and servicing of computers to be purchased under the project will be carried out by the university center for information science (CIUEM) by means of a university service contract. Notably, CIUEM has become largely self- financing in recent years as the result of extensive consulting, training and  -34 - repair services It sells to finms outside the university. Dormitory construction and rehabilitation of campus buidings will be linked to the establishment of a university-wide maintenance program, the costs of which will be underwritten by revenues from student accommodation charges, the recent large flexible grant from SIDA (which includes a maintenance provision) and the govemment's recurrent allocation. Inclusion of a maintenance line item in the UEM budget for 1992 was earlier proposed by mission staff, and was subsequendy acted upon by university management. Finally, the university instituted in 1992 significant tuition charges (roughly $500 a year) that, although they can be partially or totally waived on the basis of a student's favorable academic perfbrmance or demonstrated financial need, shoul: still generate some additional revenue for government that could be used to offset recurrent cost increases. (b) For the EPUs, the outline of a recurrent cost financing plan was agreed with Government at appraisal, covering maintenance costs for buildings, equipment, and vehicles, as well as the costs of in-service teacher training and teachers' bonuses. A combination of increased cost recovery and Government budgetary contributions will meet all recurrent cost requirements by the end of the project period. The Borrower has piven assurances that not later than June 30. 1993. a deaild action Dlan and timetable on the transfer to the Driva ser of the eat of EPU dormitories be presented to IDA for review and comments. toggeter with a 1uroosal for the decentralized svstem of fee collection and utiliztion for school maintenance. Furthermore, the Borrower shall. starting FY93. and roEgssively. throughout Projc implementation increase its annual budgetary allocation to UEM to finance maintenance of its existing hysical plant. from 0.5 percent of estimated relacement value in FY93. to 2 percent by FY97. and tO me maintained at accUnxle levels thereafter, B. =EWamig 4.9 Ihe total project cost of US$60.3 w 1cl million equivalent, minus taxes and duties, will be financed by the Government, cost __ --S recovery from project beneficiaries, and _ IDA (the financing plan is shown in Table 4-2). Ihe IDA credit of US$48.6 million 4vv;.o 3 1 IO; 7 equivalent wIll cover 81% of total project 1 eld 1.0 v 41 cost and the equivalent ofl100% of the 7,0 40J 3 foreg excainge cost and 50.7% of local - m . M costs. The Government contribudon of . -. MT25 billion (US$10.1 million equivalent) or 16.7% of the total, wIll finance 34.5% of e local costs, and 100% of the estimated . US$6.3 million of taxes included in project Ug md._ i costs. Beneficiary contributions, made up B = mainly of users fees for building operation _ i and minteance, total US$1.6 mUilion and wil cover the remaining 14.8% of local  -35 - C. P r 4.10 Procurement packages have been compiled with the aim of obtaining the most economically efficient costs. When contracts are made up of more thaiA one lot, the slice and package approach will be used. 4.11 Project-related procurement arrangements are summarized in Table 4-3. Items financed by IDA will be procured according to World Bank guidelines as elaborated in paras. 4.12 through 4.21 below. Where similar items are to be procured at different times during the project life or are financed from different sources, the implementing agencies will ensure reasonable standardization. Standard bidding documents for civil works and goods which have been approved by IDA during past project negotiations will be used in the procurement of these items. Standard contracts for consultants' services have been cleared for approval by the Ministry of Finance and will be sent to iDA for approval prior to project effectiveness. O -, otail .,,.. ....... V~~~~~~~~~~~~~~~~~~~~~~~~~~~. .. ... : :E~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~::i~ ...'.'.... . Sc I.i,- . N, e,netal. . . . . . ..........59.... ; -VA. t~~~~~~~~~~~(0 q icUnoi 1~*  - 36 - 4.12 Procurement of dvil works. Estimated civil works contracts and the associated procurement schedule are shown in Table 4-3. IDA's estimated financing of civil works amounts to US$25 million equivalent, of which US$23.9 million will be awarded according to International Competitive Bidding (ICB) procedures acceptable to IDA (all contracts greater than US$530,000 equivalent), as set forth in the "Guidelines for Procurement under IBRD Loans and IDA Credits" published by the Bank in May, 1992. In the procurement of works, in accordance with the procedures described above, domestic contractors are granted a margin of preference in accordance with and subject to the provisions of paragraphs 2.55 and 2.56 of the "Guidelines". All other civil works contracts, up to a total value of US$1.1 million equivalent to be financed by IDA, may be awarded by Local Competitive Bidding (LCB) procedures acceptable to IDA, and in accordance with the "Guidelines", which will include local advertising, pre-qualification, public bid opening, specific criteria for bid evaluation and award to the lowest evaluated bidder; foreign firms, if interested, would not be precluded from bidding. LCB is justified in these cases as these contracts are in widely dispersed locations and will be implemented by different organizations according to differing timescales. 4.13 Pr To the extent possible, bid packages for the procuremeat of furniture, equipment, vehicles, supplies and materials required under the project would be grouped into homogenous packages in quantities that would achieve economies of scale and timely and efficient delivery (and installation). ICB procedures in accordance with 'Guidelines for Procurement under IBRD Loans and Credits" published by the Bank in May 1992 would be applied for bid packages estimated to cost more than US$200,)00 equivalent each, to an aggregate of US$3.8 million equivalent to be financed by IDA. Library books for the pre-university schools and goods contracts valuing less than US$100,000 equivalent, up o an aggregate of US$1.3 million equivalent will be procured through local or international shopping (with a minimum of three quotations). Goods shall be exempted from pre-shipment price inspection by a third-party inspection firm. In comparison of bids for goods to be procured through ICB, domestic manufacturers wo' Il be allowed a preferential margin of 15 percent, or the existing customs duty, whichever is lower, over the c.i.f. prices of competing imports. 4.14 A special arrangement has been proposed for the book fund at the University (US$897,000 equivalent). As a condition of disbursement, detailed guidelines for the exact functioning of such a fimd will be submitted to and approved by IDA. Items financed by the fund are likely to include a mixture of imported reference works and textbooks, and the printing of manuals produced by local faculty members (see para. 3.5). When books are inpkorted, international shopping would prevail. Equipment for the printshop would be bought by international comparative shopping as well. .4.15 Consultants' services to be financed by IDA, including consultants for t3chnical and managerial assistance, studies and architectural fees for design and supervision (U1S$ 9.9 million), will be procured in accordance with "Guidelines for the Use of Consultants by World Bank Borrowvers and the World Bank as an Executing Agency" published by the Bank in August 1981. Details for the technical assistance and outline terms of reference are included in the implementation manual. The use of standard technical assistance contracts (see para. 4. 11) should reduce the delays of up to three months now being experienced in contract clearance by the Ministry of Finance. The local consultancy market will be strengthened as the project will provide a number of opportunities for local consultants.  - 37 - 4.16 Training to be financed by IDA, including local training courses, seminars, workshops, study tours, and fellowships (US$7.8 million equivalent) would be procured using regular Government procedures, subject to prior IDA review and approval. 4.17 IDA Review of Bid Packanes and Contract Awards Bidding awards for civil works and goods valued at over US$250,000 equivalent will be subject to prior review by IDA, as will all consultant contracts and training proposals and the first LCB contract regardless of size. This represents about 97% of IDA financing for the project. Smaller packages will be subject to random post-award review by IDA. All project units will therefore be required to keep full procurement documentation on file for access by IDA as requested. 4.18. Major procurement of civil works and goods as well as consultants' services and training, will be done by GIU for the University and by GEPE for the pre-university component. The University and GEPE have already demonstrated competence in IDA procurement procedures in the first two Education Projects and, further training in procurement, in-country and abroad, is foreseen for new staff, with follow-up sessions offered as required in the case of staff turnover. 4.19 To encourage prompt action on the part of the Borrower, tender documents for the first year's civil works will be prepared prior to project effectiveness. 4.20 Since the first country implementation review, during which delays in procurement decisions were brought forward as one of the mnjor obstacles to efficient country implementation, the following activities have been initiated: (a) The Roads and Coastal Shipping project carried out a country procurement assessment, co-financed by SIDA and staffed by ITC. The complete report is expected by the end of FY93. (b) A review of contract approval thresholds and procedures was carried out during 1991/92. This review and standard contracts are to be submitted to IDA under the agreed financial management plan of the Economic Rehabilitation Credit. (c) During the mid-term review of the Economic and Financial Technical Assistance Project (Credit No. 2066.MOZ) in July 1992, a proposal to strengthen the department reviewing draft contracts in MINFIN would be considered. (d) Upon effectiveness of the Agricultural Services Project, scheduled to occur by September 21, 1992, the Ministry of Finance will be obligated to reduce the clearance period for draft contracts to a maximum of thirty days.  - 38 - D. * 4.21 Disbursements from the IDA credits will cover the percentage of total expenditures as indicated in Table 4.4. 4.22 The IDA credits will be disbursed over a perod of about seven years (Annex IV-6).and major Investments have been programmed for a period of five years. The project comoletion date is December 31. 1998, and the closing date June 30. 1999. All applications to withdraw proceeds from the IDA credits will be fiklly documented, except for (a) contracts, purchase orders for goods and services or overseas training programs valued at less than US$25,000 equivalent, (b) local training programs; and, (c) operating costs. For these expenditures, disbursements will be made against certified statements of expenditure (SOE). *.~~~~~~. ~ ~ ~ ~ . *.*. ... ........ - .......... .. .... . . ... .T... .. , #ME fmUUo7RA  -39 - E. Accounts and Audi 4.23 al Acounh. in order to ensure that funds for the projects will be available as needed, two Special Project Accounts, one for each component, will be established by Government with a commercial bank acceptable to the Association. Decentralization from the Bank of Mozambique and by component will forestaWl unnecessary delays in disbursement of funds. Component special accounts will receive deposits from the credit for financing eligible project expenditures (for items described in the aoove section D). Maximum values for each account have been estimated on the basis of three months of expenditures during the highest, disbursing semester, and amount to US$1 million each for UEM and EPU. However, experience shows that such high values are unnecessary during the first year of the project. Therefore, initial amounts of US$0.5 million for each component will be deposited by IDA after receipt and approval of withdrawal applicadons; these amounts are equal to one-half the maximum value allowed in each account. Replenishment applications for the Special Accounts will be submitted monthly or as required by each implementing agency and will be accompanied by the fill documentation except for items eligible for disbursement on the basis of certified statements of expenditure (SOE). Supporting documentation will be retained by project executing agencies and will be available for review as requested by the IDA supervision missions and project auditors. GEPE has ample experience with operation of special accounts, and UEM would participate in a disbursement training course to be given in October 1992. 4.24 Audit Ibe Government's performance in auditing project accounts in practically all IDA projects has not been generally satisfactory. Completed audits of the First Education sector project have been satisfactory. Delays in carrying out audits that were experienced in the previous years of the projects are now being overcome as part of a larger effort to eliminate the backlog for all IDA projects in Mozambique. Assurances have been obtained from Government that all project and mpecial accounts will be audited by independent auditors cceptable to IMA and that all audited accounts. togeher with the auditors' repor. will be submitted to the IDA not later than nine months after the end of each Government fiscal year. In auditing project accounts, the auditors will provide a separate opinion on SOEs and on the procedures and internal controls involved in their preparation. Project special accounts will also be audited. As part of the UEM's efforts to improve accountability, UEM will carry out one audit, in accordance with IDA criteria, for its total program for inclusion in its annual report (para. 3.24). V. P JIrEPEMKNTATION A. zmltionjdniMmagaMmt 5.1 An bIter-Ministerial Committee (IC), established by the Prime Minister, presided over by the Minister of State Administration, will be responsible for the coordination of the Capacity Building Program in Mozambique, of which the proposed projects make up two elements. Co-presidents of the Committee will be the Minister of Planning and the Minister of Finance. Its members will be the Ministers of Education, Justice, and Labor. The Rector of UEM and the Attorney General can be asked to join the IC. The IC will be responsible for formulation and coordination of the Capacity Building Strategy and for ensuring consistency and strengthening linkages among the four components of the two companion projects. Furthermore, the Committee will ensure that the projects adequately  -40 - reflect and respond to the emerging policy changes In support of the capacity buiiding process in Mozambique, particularly in the areas of incentives and housing. The planning unit in hIAE will act as the technical secretariat for the Committee, which should report to the Prime Minister on a monthly basis. 5.2 In the spirit of building management capacity among the various institutions involved in project implementation, responsibility for implementation will be devolved as much as possible, with the locus of management effort being close to the direct beneficiaries. In practice, therefore, the UEM Rectorate and the individual faculties will be responsible for implementation of the University component and the Department of Secondary Education in MINED and the individual EPU school administrations will handle implementation of the upper secondary component. 5.3 At UEM, overall responsibility for project management and implementation will rest with the Office of the Rector. Much of this oversight authority is likely to be delegated, however, to the new Deputy kector, who was appointed in April 1992. In addition, direct responsibilities for building construction and rehabilitation will rest with the recently established University Buildings Office, together with its advisory committee. The staff development fund and fellowship administration will be handled by the UEM Office for Studies and Projects. Textbook importation and publication decisions will be made by faculty committees in each department using criteria of comparative quality and relevance, with quality control delegated to the university's Pedagogy Division. The bookstore manager will be responsible for the actual contracting of book imports and local study manual production, consulting as necessary with the university librarian and head of the university press. Computer specifications and training will be handled by the University Center for Information Science (CIUEM). Administrative staff training will be managed by the UEM personnel office. General financial administration and procurement will be handled by a re-structured financial department, which will also hire two additional accountants and two procurement officers to service the project. As a condition of effectiveness, staff should have been hired. with qualifications and conditions acceptable to IDA. for the following posts: GIU Director. Senior Procurement Officer. Senior Accountant. UEM has already hired the GIU Civil Eneineer and Architect and advertised for the other positions. 5.4 The overall responsibility for management of the EPU component will rest with GEPE, (Gabinete de Gestao de Projectos Educacionais - Educational Projects Management Unit), within the Ministry of Education. It is proposed that GEPE be responsible for project implementation, including procurement of goods, disbursement of funds, and overall component accounting and auditing. Direct responsibility for the technical sub-components of EPUs would rest in a technical group -Project Technical Group (PrG) to be created in the NDSE under the coordination of NDSE Director. NDSE will be responsible for implementation of the technical sub-components of EPUs in coordination with GEPE who should provide the technical and financial support to NDSE. 5.5 GEPE is already effectively implementing the first and second IDA Education Projects, one African Development Bank (AdB) project, and will be responsible for the recently approved second education project of AdB. A recent mission by LOAAF staff to Mozambique rated GEPE as the best organized project implementation unit with respect to procurement and accounting monitoring. In order to preserve the quality of implementation in light of increased demands, the credit will finance the hiring of additional staff (one civil engineer, a part-time lawyer, one accountant, and one procurement officer, and a  - 41 - administrator) to support the management of this new project and provide funds for office support. Prior to negotiations, CEPE presented the tender documents for hiring the consultants to design and supervise the rehabilitation of the EPUs, and detailed terms of reference for new staff to be contracted under the project. 5.6 Considering also that the NDSE is a new directorate within MINED, and does not have the experience of developing international projects, the credit will also finance 24 person/months of local consultants' services to support the NDSE/PTG in the implementation of a management system for the technical sub-components and in the coordination of arrangements between NDSE and GEPE, during the first two years of project implementation. As a condition of effectiveness for the proiect, the two staff in the technical group in the NDSE and the five staff in GEPE would have been contracted. 5.7 Organizational charts summarizing management structures and implementation schedules for each component can be found in Annexes V. 1 and V.2. A. Status of ProJect 5.8 ior the two components, local project preparation teams were formed in mid- 1991 to develop proposals consonant with previous implementation experience and realistic implementation capability. Project design has reflected lessons learned from previous implementation experience in Mozambique, as outlined in Annex V.3. This approach to preparation was also a learning experience for the local teams and helped to build a sense of ownership and motivation, which is expected to carry on into the implementation phase. Consequently, the various implementing agencies are in a strong state of readiness to start up the project, with a number of activities expected to go forward during the pre-effectiveness period, utilizing PPF financing. 5.9 IDA has granted a PPF advance of US$750,000, in February 1992, for project preparatory activities for this project as well as its companion project. Annex V.4 provides a proposed summary of these activities. As indicated below, preparation is well- advanced for the first year of project activities. 5.10 The proposal for the UEM component was prepared by a committee of five senior UEM staff members who worked under the Rector's direct supervision. Representatives of the university departments were also involved in work groups which developed specific sub-components of the proposal. AncRAer senior UEM staff member, who was on study leave during this period, served as a consaltant and liaison between the university and the IDA team. 5.11 The University revised its proposals following appraisal and published them in two implementation volumes, which include all terms of reference for technical assistance and studies, procurement and implementation schedules, monitoring indicators, costs by subcomponents, IDA categories and GOM budget categories (a copy of the table of contents is incluCed in annex V.5). UEM established the GIU, has already hired staff to be paid by GOM, advertized for other positions and is actively managing the preparatory activities. A draft contract with Habitar, to manage the resettlement and rehabilitation process has also been cleared by IDA and it is expected that the first building will be free of occupants before the end of 1992. Usufruct rights have been transferred to UEM for all buildings to be  -42 - rehabilitated. However, thw usufruct rights (30 years) ned to be increased. UEM also needs to provide evidence of ownership to a terrain available for eventual construction of core houses to replace those which are already built and being made available. These ar conditions of disbursement for the civil worxs. UEM is using a major portion of the PPF to refine cost estimates and finalize the first year's work plan for campus rehabilitation, complete an Initial group of 40 staff housing units that are nearly ready for occupancy, and carry out important studies on university autonomy, university linkages, an operational plan for the bookstore, management of the UEM housing stock, and the feasibility of creating a staff savings fund. One study has been completed, others are ongoing. First yar programs for the professional tralinig of academic and administrative staff program apd the management training program are conditions of disbursement. 5.12 Similarly, a detailed implementation manual is available for the EPU component, including all terms of reference for consultants and studies, implementation arrangements and detailed time tables and responsibilities. (Annex V.5 contains the table of contents). MINED is using PPF funds to hire technical assistance to prepare curriculum proposals and to participate in the training seminar for EPU teachers, held in July 1992. Detailed terms of reference and invitations for consultants to prepare detailed drawings and tender documents for upgrading the EPUs are ready for publication, so that TA contracts can be awarded shortly after project effectiveness. Since the preparation of new training programs for school managers and other administrative staff will need to take place during the first year of the project, this training is not expected to get under way until the second year. C. Monitoing, R dng, aLd Evalualon 5.13 As mentioned in para. 5.2 above, each component lead agency has designated a person and a small group to serve a component manager, with responsibility for monitoring implementation. As part of the project launch exercise in late 1992, these component managers/management teams will develop clear indicators for monitoring progress (input, process, output, and impact indicators) on a six-monthly basis and will prepare trial formats for reporting semi-annual implementation progress. These indicators should be closely linked to the quantitative targets established for each component (e.g., university and EPU enrollment levels, student pass rates, student faculty ratios, numbers of management trainee graduates, etc.). The university and the NDSE have already defined a number of performance indicators (Annex V.6), some of which will be incorporated into the annual reports to be supported by this project. Progress reports will also include comprehensive financial statements covering actual and planned expenditures, and the status of IDA payments/reimbursements. 5.14 Annual project implementation reviews will be conducted by November 30 of eac year in order to faciitate effective coordination of the project components and allow for flexible responses to changing circumstances in Mozambique. The Borrower agreed during neWgoiaton that not late than Ocober 31 from 1993 on, each CgMpoent will preare a anu evaluation of proiect implementation and inmact to be discussed during the annual UgjJect ipementation rview. Evaluation will take into account indicators and criteria defined during the project launch workshop. During each annual review, to be held by November 30 of each year, each component will refine detailed work plans for activities programmed for the subsequent year. Particular attention will be given to the implementation of the resettlement plan for University housing, including beneficiary assessment of relocated  -43 - tenants and to evaluating the impact of the salary incentive find's impact on civil service staffing and peformance. 5.15 To ensure that a complete stock-takg of project implementation performance and expected developmet impact is carried out during the project lifetime, the Government and IDA (with likely participation of other associated donors) will conduct a mid-term evaluation of the project in the second semester of 1995. The results of suc an in-depth review will help to make mid-course improvements in implementation. lhe Bo a during n aio that not later than Novemb 3. 1995. an in dt-evaluatlon of ri JMlementation and inpact will be preDared b1y eah comnent as inpUt for discussion during the mid-term pro3ect review. Those reports, in addition to evaluating the indicators and criteria as defined above, should include any proposals for reallocation of credit funds. 5.16 A supervision plan, including mission scheduling and staffing needs, for IMA supervision missions, is provided in Annex V.7. 5.17 The Government will prepare a project completion report within six months of the completion date, based upon a format to be agreed with the IDA. VI. A. Boflts &gd 6.1 Proceeding with the project as proposed by the Government is clearly justified, to the extent that the project will tackle many of the key constraints to building capacity in Mozambique, and will thus enable the country to deal better with the monumental tasks of reconstruction and growth, rural development, and poverty alleviation. These constraints being addressed by the project include: (a) inadequate staff incentives and training, insufficient bools, and substandard facilities at the University; and (b) shortages of teachers and learning materials and excessive administrative centralization of upper secondary education. The companion project (Public Sector and Legal Institutions Development Project) would address: (a) outdated or non-existent training programs for lawyers and other legal workers, and gravely inadequate numbers of Mozambicans being trained for legal careers; and (b) lack of, and often distorted, incentive structures for civil s-rvants, combined with serious weaknesses in individual skill levels among senior planners, managers, and technicians. 6.2 The Government and IDA forged a strong partnership in the area of capacity building, through the analysis of the main capacity issues as laid out in the 1991 Capaciy Buildng Emewor Pagr and Capa Jaildigg Secr Reot. The proposed project is a logical extension of this analysis into the realm of action. 6.3 To better appreciate the anticipated benefits of the project, it is useful to consider briefly the capacity status of Mozambican public and private instiutions, in the absence of such a project. Without the project, it is highly likely that UEM teaching faculty will contiue to leave the University in increasing numbers and that student drop-out rates will remain high. These conditions would restrict the numbers of university graduates, truncate nascent research capacity, and force UEM to take on more expatriate teachers to fill the void created. Similarly, EPU teachers would be unable to cope with student erolments and would continue to deliver subtndard teaching products (in the absence of books and teaching  materials), thus contributing to a further deterioratie'' . learning achievements, with cascading negative consequences for ill-prepared uni .sity entrants and graduates entering directly into the labor market. Without the companion project, it is doubtful that Mozambique's small and fragile legal system would even begin to deal with the enormous number of civil and criminal cases coming before it, including the many legal dimensions of the economic liberalization process which is firmly underway but not adequately underpinned by legal changes. Finally, in the absence of the project (and associated reforms in public pay), it is inevitable that the senior civil service will continue to be eroded by attrition and weak recruitment and by demoralization of those who continue to work for the Government. 'Those who remain in the public service, who are insufficiently trained in public administration, will also be unable to carry out their responsibilities, and existing bottlenecks in implementation of public sector programs will only worsen. 6.4 The IUM component of the project is expected to generate multiple benefits, both for itself and for Mozambican society. First, the combination of staff stabilization (through retention incentives) and nationalization (through staff development), textbook provision, library strengthening, and facutty linkages will upgrade educational quality and reduce student drop-out and repetition, thereby increasing the number of graduates produced each year. Second, improved mechanisms of accountability and structures for management will place its relationship with government on a more stable and collaborative footing which still preserves university autonomy. Third, an increased capacity to receive students from other parts of the counry will create over time diversified and representative leadership and managerial cadres that will contribute to long run political stability in the country. Finally, the major effort to rehabilitate its physical infrastructure will ensure that these now critical needs are addressed-thereby insuring institutional capacity and productivity over the next decade and beyond-before a likely national peace accord focuses government and donor budgetary attention on the massive challenge of re-building the country's primary school system. 6.5 Reduced student drop-out and repetition at the ue seconda level will increase the number of graduates each year and improve the quality of University entrants. Through increasing gender equity, the project wil strengthen women's access to university education, and to key positions in the public and private sectors. The decentralization of fimds for mainenance, teacher training, and teachers bonuses to the school level, working through official Government budgetary channels, will support the efforts of MINED to design budgetary systems and provide staff training which ensure that these key activities are undertaken. Thus, implementation and financial management capacity will be strengthened at the central, provincial, and school levels. The pilot program of financial decentralization for the EPUs will then be extended to general secondary schools. Communication flows throughout MINED will be improved, information systems strengthened, and participatory processes in all aspects of educational planning reinforced, as the role of the NDSE as a technical advisor to the schools and clearing house for school initiatives is revitalized. B. 1Eak 6.6 Overall, the greatest risk facing the Capacity Building Project is precisely that the capacity to plan and manage implementation of the various components will fail to materialize, or will deteriorate over time. The broad strategy to deal with this project-specific risk is precisely the same one being applied on a national scale in the project itself: improve  - 45 - Incendtves to component managers and other important Implementors, create strong enabling institutlonal environments (e,g., managemet unit organztional structure, management style and systems, office technology, etc.), and offer stimulating and relevant training (pr-service, in-service, on-the-job) to project managers and their staffs. Tbe application of this risk- reducing strategy is spelled out in greaer detail for each of the prject components in the paragraphs below. 6.7 Since it possesses the greatest concentration of professional skills in the country, IUM has a greater capacity than most Mozambican institudons to manage risk. Nevertheless, implementation capacity remains a continuing concern, particularly with regard to the substantial amount of civil works anticipated under the project. 'The university has recently taken steps to shore up Its management capacity in these areas: a Deputy Rector has been appointed, and a new management unit (the University Buildings Office) is being organized to supervise construction and maintenance activities. Other parts of the University, such as the Engineering and Architecture Faculties and the UEM planning office (GEP) possess experience in this area, which constitutes an additional resource. A series of specific management studies being conducted under the Education II Project, and an overall review of niversity management and governance structures, currendy underway with other donor support, are expected to recommend other administrative improvements. 6.8 There is also a risk that the UEM will have difficulty attracting and retainng staff when they return from graduate study abroad. To minimize this risk, the project is designed to expand staff access to housing, as a meaningfl staff retention incentive. Other actons, including external institutional linkages, increased availability of computers and reference books, opportunities to attend professional meedngs, the new university research fund established by other donors, and campus renovation will all create a more positive work environment and an enticement for staff to remain at UEM. 6.9 For the EPUs, the risk of inadequate capacity in MINED and at the schools has been minimized by concentrating the early years of project implementaion on training and systems development. Decentralization of key functions to school level wIll also help to avoid overburdening the staff at the NDSE. Furthermore, the project has built in incentives for teachers, including the provision of housing, and the institudon of small bonus funds to reward outside activities, which will aid in the attraction and retention of EPU teachers and school administrators. C. Imnac on &M of Attedon 6.10 Capacity building in Mozambique will expand significandy the supply of higher level humansurms which is a necessary condition for the achievement of all IDA program objectives. The proposed project also contins special measures to increase women's educational opportunities. 6.11 I== The project is rated Category C, and as such, no formal environmental analysis ir required. During appraisal, building inspection codes and reguadons were evaluated. Prior to any construction or rehabilitaton, pemits must be obtained from the Government housing agency and plans approved. After completon of civil works, inspection visits are made by the electricity company, the water company, and the Government housing inspection agency to verify the soundness of construction. These procedures were judged to be environmentally sound. These procedures would pertain to the  -46- constructon of now buUdings on UEM campus, the rehabilitation of apartment buiding off- campus, and the construction of dormitories and staff housing at upper secondary schools. A satisfactory resettlement plan was submitted before negotiations; regarding the resettlement requirements for apartment buUdings to be rehablitated by the University, it is Important to stre that tenants are being voluntarily relocated, (a tenants' survey was carriod out under the PPP), and for the less than 20% of tenants who do not wish to relocate to project-provided housing, alterative apartments are being provided. Monitoring of the resetlement plan wIll be done on an annual basis during project Implementaton reviews. ViI. AMMPfAN= AND RECOMMPAlIQ 7.1 The following will be conditions for Effectiveness of the Credit: that GOM furnishes documentary evidence, satisfactory to IDA, certifying its formal approval of the Capacity Building Action Plan (para. 1.2); that key Implementation staff have been employed, on terms and conditions acceptable to IDA (see paras. 5.3, and 5.6). 7.2 Conditions for disbursement of the IDA Credit are: for the book fund, that the study and recommendations for the University bookstore, and the guidelines for the functioning and implementation of the book fund is completed and found to be satisfactory to the University and IDA (para. 3.5); for tining programs, that the first year training programs be completed and approved by IDA (para.3.36 and para.5. 1l); and for all civil works, that satisfactory evidence of ownership of all sites be furnished to IDA (para.3.41 and para.5.11). 7.3 During negotiations, the following assurances were obtained from the Government: that the Government will take necessary measures to free from all occupants the sites legally attributed to UEM to carry out the construction program and implement the resettlement plan as agreed with the Association; that the Government will progressively increase its budgetary allocation for maintenance of the UEM physical plant from 0.5% of estimated replacement value in FY93 to 2.0% by FY97 (para. 3.23); that UEM will by June 30, 1993 present to IDA for review detailed proposals for operation and maintenance of University housing (covering establishment and collecion of users' mainenance and manuaemet fee)  -47- and the draft negotiated contract withi the management firm engaged (para. 3.14 and para.4.8.(a)); that by June 30, 1993, MINED will present to IDA a proposal to privatize the management of EPU dormitories and decentralize the collecton and utilization of school fees (paras. 4.8 (b); that by October 31, 199 and each year thereafter, the component maaeswould prepare annual progress reports, to be evaluated during the annual project review by November 30 of each year; and that an in- depth mid-term project review be held by November 30, 1995. (paras. 5.14 and 5.15). that the Government, during the execution of the Project, continue io maintain UEM and MINED staff responsible for Project implementation. 7.4 Based on the above, it is recommended that the project constitute a suitable basis for an IDA credit of SDR 34.1 million (US$48.6 million equivalent) to the People's Republic of Mozambique.  - 48 - ~~~~~~Annex I Page 1 of 4 MQzam=hke Capacity Building: Human Resources Development Project CAPACITY BUILDING STIRTEGY ESTRAT3GIA DO CAPACITY BUILDING 1. A partir do ano 1986, o Governo Moqambicano iniciou e desenvolveu todo um conjunto de reformas Politicas, Econ6micas e Sociais. Estas reformas, vem consubstanciadas na Constituicao da Repdblica, aprovada em Novembro de 1990, que consagra a abertura do pafs ao pluralismo politico, e define que a economia do pais assenta nas forqas do mercado. 2. A partir do ano de 1987, o pais iniciou a implementaq&o do Programa de Reabilitaq&o Econ6mica, que incorporou em 1990, a componente Social, dando-se assim corpo a todo um esforqo para reverter o decrescimo econ6mico que se verificava at6 ent&o. Da necessidade de neste quadro se introduzir um conjunto de reformas institucionais, foram-se tornando evidentes as fraquceas de cardcter institucional de que enfermam a Administraqgo P1blica e a quase generalidade das Instituig3es nacionais. Essas fraquezas, tornaram-se mais agudas como resultado da quase total destruqao das infraestruturas economicas e sociais nas zonas rurais e o consequente surgimento dos deslocados e refugiados de guerra, tornando-se o desafio da reconstru;&o nacional, um exercicio de dimens&o gigantests so levarmos em linha de conta o ponto de partida e as possibilidades do Pals. 3. De facto, Mocambique 6 um pals com cerca de 15/16 milh8es de habitantes e o efectivo de graduados nacionais cor forma.&o superior nao ultrapassa o8 5000, o que pode ser considerado dos niveis mais baixos do mundo, quando comparado com o de outros paises. t esta a realidade, que faz com quo o factor humano seja o elemento central de t^ualquer estratdgia de deoenvolvimento desenhada ou : desenhar sempre no pressuposto de que so pretend. caminhar para ur sociedade civil e democratica efectivamente assente num Estado de Direito. 4. Apenas a disponibilidade em quantidade e qualidade de recursos humanos nacionais, habilitados tdcnica e cientificamente e devidamente organizados, pode permitir a criaqgo de bases institucionais que alicercem o modelo de sociedade para onde se pretende caminhar.  -49 AnexIz Page 2 of 4 5.