Nepal - Higher Education Project

Documnt of The World Bank FOR OMCUL USE OrlY Rqt No. P-6199-NEP MEWORANDU AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATI'CA TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 14.2 MILLION TO THE KINGDOM OF NEPAL FOR A HIGHER EDUCATION PROJECT NOVEMBER 23, 1993 MICROGRAPHICS Report No: P- 6199 NEP Type: MOP This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRMNCE OUAI Currency Unit a Nepalese Rupees (MRS) US$1.00 a NRa 49.58 ZZSCAL-THAR July 16 - July 15 PRINCIPAL ABRYZTTINS AND ACRONMS MSED GDP - Gross Domestic Product ZDA - International Development Association MUC - Ministry of Education and Culture MOF - Ministry of Finance PCU - Project Coordination Unit TU - Tribhuvan University FOR OFFICIAL USE ONLY KIlGDOM OF NEPA& HIGMER EDUCATION PROJECT Credit and Project Seary Kingdom of Nepal SDR 14.2 million (US$20.0 million) mgms Standard DA terms with 40 years maturity Plnancina Plant Government of Nepal US$ 3.1 million IDA US20. million Total US$-3.1 million coamL Rate of ReturnI Not applicable Poverty Cateuorva Not applicable Statt Awaraisal Renort No. 11924-NIP IBRD No. 25032 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. IEORLDUM AND N OF TB PRBSIDEUT or T=S P IT!RMITONRL DEVELOPISENT ASOCI4ATIORT TO T= BMCTIVE DIRECTORS ON A PROPOSED CREDIT TO TER INDO OF MEPAL FOR A EIGUIR EDUCATIfR PROJUC 1. The following memorandum and recommendation on a proposed development credit to the Kingdom of Nepal for SDR 14.2 million (US$20.0 -million equivalent) is submitted for approval. The proposed credit would be on standard IDA terms with 40 years maturity and help finance the Higher 9ducation Project in Nepal. 2. Background. Nepal is one of the poorest countries in the world, with a per capita income of only US$180. Only about 36 percent of the Nepalese over 15 years of age are literate (13 percent of females). Major educational investments have been made since 1951 to alleviate the serious shortage of trained human resources primary education has been a priority area, re-emphasized by the democratic Government that was elected in May 1991. Gross enrollment rates, as a result, have been raised to about 106 percent (83 percent female) for primary education and 32 percent for secondary education (20 percent female). Although progress is encouraging, the scarcity of well- trained professionals affects the implementation of all Government programs, particularly outside Katbmandu. A vicious circle has been created whereby the low quality of inputs lovers the quality and efficiency of outputs in all areas, including primary and secondary education. In order to combat poverty, better-trained and more knowledgeable teachers anst be made available at all educational levels. Rapid expansion of an inefficient university system has the potential to cause strong pressure for diversion of scarce resources from other priority social sector programs of Government. 3. Main issues in higher education. Almost all students in the country attend a single institution, Tribhuvan University (TU), which in 1992 had 195 campuses scattered throughout the country. The majority of these (130) are small private affiliates. As the population of Nepal increased and access to primary and secondary education expanded, demographic pressure on the university increased sharply. Enrollments have risen rapidly from 22,765 in 1975 to about 155,000 in 1992. The trend implies that there would be about 330,000 university students by the year 2000 if no changes were made. Infrastructural investments have been narrowly focused on a few externally aided campuses, so that physical facilities in many other campuses are badly overstretched. Local campus administrations lack authority to limit admissions to available capacity. 4. Resource mobilization problems for higher education are diverse and severe. One of the worst problems is the underfinancing of the sub-sector exacerbated by very low levels of internal resource mobilization within the TU system. In 1990, only 2.1 percent and 0.44 percent of Gross Domestic Product (GDY) was devoted to education and to higher education, respectively. This was much below the international average of 4 percent of GDP for total spending on education and 0.7-1.2 percent for higher education. The proportion of the Government' s education budget devoted to higher education -2- has declined, from 35 percent of the total in 1976 to 21 percent in 1991. Annual budget increases have generally fallen behind inflation, which averaged 11.8 percent between 1986 and 1992. Since these declining resources have been spread over an increasingly large student body, the per-student allocations have decreased dramatically in real terms. Although cost recovery has been increased recently, it is low. Internal resources still only cover about 10 percent of the University's operating costs and there is scope for further increases. This situation has serious operational consequences. With recurrent expenditures in 1991 at 96 percent of the TU budget and salaries absorbing 82 percent of recurrent expenditure, there is little lef t for books, equipment and operational maintenance. S. The problems of the university are compounded by the fact that about two-thirds of the undergraduate population do not properly belong to higher education and would be attending secondary school (grades 11 and 12) in most other countries. Their presence in TU inflates the number of university students. In 1989, the Government enacted a law to reassign the first two (Certificate) years of the university to secondary education, thus creating grades 11-12, and to expand undergraduate higher education by one year to three years. However, this reform requires curricular, financing, management, and planning preparation which has only recently begun. Most secondary schools in the country are already crowded and lack the facilities to house two more grades. The country's secondary level teachers are few, and the professors who teach Certificate-level students are usually tenured university employees. 6. Despite its geographic spread, TU has a highly centralized management structure, which has limited participatory involvement. Individual campuses have extremely limited administrative control of their operations. Personnel decisions are made at the central level, but the administration and scoring of annual examinations is also centralized. Students taking the same subjects in all campuses must follow exactly the same syllabi in order to participate in the same examination. Due to limited funds, low levels of expertise, and difficulty in changing curricula, revisions of subject matter are infrequent and students study long outdated material. The poorer students and those outside Kathmandu tend not to have textbooks because books may not be locally available or ay be too expensive. As a result, students study from informal notes and master a limited quantity of material. 7 . The consequence of skyrocketing enrollments, few instructional inputs, lack of space, low level of financing, and centralired control is a serious deterioration in the quality of education. Limited local authority, combined with Nepal's political past, has resulted in considerakle student influence on the resources of the system and a distorted perception of student rights and responsibilities. Student expectations tend to center on unlimited access to the university's submistence-related resources (cafeterias, dormitories, low tuition costas) rather than on instructional delivery. In the absence of strong central backing to limit enrollment to available capacity, local campus administrations often are under intense pressure to admit large numbers of students for whom they have no space. Encumbered by an administrative structure that discourages local initiative, TU administration -3. has, until recently, been able to accomplish very little against professor and stud,nt interest groups. 8. Proiect obiectives. In designing the project, it was recognized that implementation of the proposed policy refowr would be a long term process and it was decided to phase implementation by way of sequential project support. Thus the objectives of the first (the proposed) project are limited but integrate closely with the objectives of Nepal's Eighth Five-year Plan (FY93-FY97) for the sector which has been given priority for rapid development by Government. The project will support the reform process through financing that would promote much-needed systemic changes in the administrative, financial, and management processes of the university, and make such reforms feasible by improving physical facilities at a limited number of key University campuses. 9. Project description. The six-year project is designed to provide tangible support for the ongoing reform process at TU by supporting the implementation of a package of policy changes in higher education, including the initiation of nuch-needed systemic changes in the administrative, financial, and management processes of the university. It would finance activities designed to: (a) assist institutional development, decentralization of management authority and strengthening of campus-level management; (b) improve selected facilities at three key campuses; (c) improve instructional delivery and rationalize the centralized student examination system; (4) help the Ministry of Education and Culture (MONC) prepare for higher secondary education reform; and (e) develop T'a maintenance capacity. Facilities development would give priority to upgrading laboratories and library resource centers plus the rehabilitation of existing facilities at the main Zirtipur campus and two other lead campuses expected to become the nuclei of regional universities in the future. 10. Project Zmlementation. Commitment to the project has been good as evidenced by the early establishment of a project preparation coordination unit with access to the services of senior university staff. This unit has carried out various activities designed to effect early project start-up includingi development of a package of policy changes expected to begin addressing major weaknesses in six key areas and a related action plan for policy implementation (ref. BAR Annexes 8 and 9); selection of architectural consultants; standardized bid document preparation; workshops on regional cluster formation; implementation and management plan preparation. In addition there has been solid cooperation between TU and MOSC resulting in the development of a policy framework for higher secondary education, essential for effective TV development. 11. The project will be implemented by TU. A Project Coordination Unit (PCU) will be established under the office of the Vice-Chancellor to coordinate the various project activities. A Project Board comprising representatives of TO, MOZC, Ministry of Pinance (MOP), National Planning Commission and the PCU will be established to facilitate inter-agency cooperation. The PCU will be headed by a full-time coordinator assisted by deputy coordinators for four major functional sections: finance and administration; physical planning and development; institutional; and -4- educational development. TV and IDA are in agreement that the unit should be structured to serve primarily as a coordinating unit and as such would make use of existing operational capacity within TU wherever feasible, except that separate accounting for the project would be carried out by the PCU staff. TU will create a Physical Facilities Development Division within the PCU. A maintenance unit planned for TU will initially operate under the Division. The staff will include an architect, an engineer, and a procurement and maintenance expert. Initially the unit will perform largely a construction development and procurement role for the project, but will gradually assume a broader facilities planning and technical assistance role for the university system as a whole as the university lacks this capacity. Essential equipment, furniture, vehicles and incremental operating costs of the PCU will be provided under the project. 12. Proiet Sustainability. Sustainability will be enhanced by: the preparation of a longer-term business plan, currently being formulated under a United Nations Development Programme grant as a basis for planning TU' s future development; improved management practices (including decentralization of authority to campus level and staff performance standards); streamlined admissions and examination proceduress and maintenance programs. Income generation and cost recovery measures currently being undertaken and proposed, would increase resources available to higher education and contribute to significantly improved funding for maintenance, books, and consumables. The close involvement of key university faculty in project preparntion and articulation of policy initiatives, will help to ensure a TV commitment to the project. However, the long-term benefits of the project will depend on sustained commitment by the university to the reform process, and the Government's willingness to push through reforma of higher secondary education that would ease the intolerable enrollment pressures on the university. 13. 2=A's Country and Sector Assistance Strate4Y. IDA's country assistance strategy for Nepal, has four main areas of focust (a) poverty alleviation through productivity gains in agriculture, expansion in small- scale industries and services, and increased investments in human resources (b) an improvement of absorption capacity through strengthening the finances and management of sectoral institutions; (c) population and human resources development; and (d) the development of hydropower resources if Nepal's macroeconomic management and institutional capacity improve. The emphasis on human resource development reflects a belief that realization of the country's potential for growth in manufacturing, agriculture, and tourism will require long-term investments in a healthy, educated labor force. 14. IDA's sectoral strategy focuses on supporting Government goais for universal primary education, and its main vehicle at present, is the Basic and Primary Rducation Project (Credit 2357-XEP) which was approved in April 1992. To make this goal achievable, however, the long-term financial state of sub- sectors competing for funds must improve. Also, adequately trained human resources should be available in provincial and rural areas to staff public and private entities, including schools. The proposed higher education project will support the much-needed reforms that will attenuate the long-term financial demands of Tribhuvan University on the Government. At the same -5- time, it will improve the quality of instructional delivery and begin to better relate university graduates training to the labor market. 15. World-wide, higher education is in a crisis of skyrocketing enrollments and financial demands. A recent Bank policy study *Migher Education: Issues and Options for Reformm (July 19, 1993) suggested that 1DA and Bank lending in higher education should focus on: (a) institutional development (b) cost*aharing but also financial support for needy students (a) reduced reliance on government funding and linking such funding to performancei and (W) increasing quality of instruction, responsiveness, and equity. However, a 1993 OD higher-education study on sub-saharan tfrica underlined the difficulties of introducing cost recovery and the importance of concentrating on curricular changes and institutional development rather than one-sided attention to financial and organizational issues. In South Asia, there has been relatively little IDA lending from which to draw conclusions, but Asian experiences in higher education have been quite productive. 16. Lessons from Previous IDA Involvement. The lesona learned from the implementation of higher education projects in Nepal are significant. First, successful implementation is directly tied to% (a) adequate and timely budget releases for project components; (b) early recruitment of qualified personnel (including consultants) for project management and implementation activities; and (c) a stable political climate. Second, in addition to the need for a well-staffed, experienced, and organized project management, project success is linked to an understanding of, and identification with, project objectives by university authorities. Thir, the management of construction programs in Nepal can be difficult and can result in prolonged start-up delays. Care must be taken during the preparation and pre-investment phases to ensure agreement on an implementation plan that would address the need for early selection of consultants and a prompt start to construction and equipment procurement. Fourth, in all four projects substantial implementation time overruns have occurred or can be anticipated given the shortcomings in these areas. even so, the development impact of these projects has generally been satisfactory. 17. The project corresponds well to the recommendations of a recent Bank report "Higher Educations The Lessons of Experience' (September 1993) which reviewed a number of higher education systems world-wide and which highlights the need for: policy reforms in finance and management; institutional development and quality iaprovements. Lessons from four higher- education projects in Nepal have also been taken into account in project design in terms of: borrower involvement in preparation management planning; early staffing and consultant selection for Implementation; and emphasis on the importance of budgetary procedures for the project in discussions with the Mor. Previous IDA projects in the sector have resorted to the use of Project Implementation Units as an expeditious way of ensuring visibility of the project and capacity for co-ordination of project implementation in a generally weak management environment. A longer-term goal is to encourage development of implementation capacity as a part of the regular administrative structures of government, and in this case the university. 18. Rationale for IDA Involvement. Although IDA has provided extensive support to the education sector, including the university since 1978, it has not bten involved in higher education policy issues per so* donor support to the university has tended to target faculties that fulfill specific manpower training objectives. As a result, university development has been very uneven. The drastic funding decline for non-aided faculties and the main campus, in particular, has created potentially explosive and politically sensitive congestion and resource problems. If unresolved, this situation could result in pressure for the diversion of scarce funds that are urgently required for basic education and for combatting illiteracy in Nepal. The proposed project would Initiate and facilitate reforms designed to regulate the runaway growth in enrollaents at the higher level and reduce pressures for increased Government spending on TU. An IDA sector study of secondary education is expected to lead to rationalization of policy in that sub-sector. The development of higher secondary education with its own examinations would provide a window of opportunity to mitigate the problem of runaway enrollment growth in TU by the introduction of tighter university entrance requirements in the interim. 19. The political and financial difficulties of the university have discouraged other donors from large-scale involvement in the University and as a result they have limited their aciivities to the specialist technical faculties of TU. Demonstrated progress in implementing policy reform measures could begin to attract greater interest from donors who have not yet invested in the university system as a whole. 20. Areed Actions. During negotiations,it was agreed thatt (a) eligibility for campus access to a policy implementation fund will be on the basis of criteria acceptable to IDA; (b) by June 1994 Guidelines acceptable to IDA will be issued for formation of two regional clusters, each consisting of a lead campus and associated campuses, intended to eventually form regional universities; (c) that annual lump-sum budgets will be provided to TU and that TU will have the authority to allocate the budget for Implementation priorities in accordance with the provisions of the Development Credit Agreement; and (d) the borrower will conduct a comprehensive mid-term review of the project with IDA by March 31, 1997. 21. A credit effectiveness condition would be the establishment and staffing of the project coordination unit. 22. Project Senefits and Risks. By rationalizing the use of human and physical resources, the project would increase the value of the Government's investment in higher education. Enrollments would be more closely linked to the availability of physical facilities, thereby easing pressure on individual campuses and allowing organizational and management improvements to take place. Significantly increased resource mobilization and cost recovery is expected to help alleviate pressure for scarce resources on central government and improve the prospects for better funding of books, consumables, and maintenance. Ir-stitutional strengthening would improve prospects for long- term improvements in instructional delivery and manpower development. Assistance to the MORC to prepare for the introduction of higher secondary education into secondary schools would eventually benefit the university -7- through decongestion of university campuses and would also help to reduce the unit coat of this educational stage. The project would provide benefits to: (a) university students in the assisted campuses who would study in lesn congested conditions, where demonstrated efficiency linked to greater self- management would be rewarded by better oquipment, books, and maintenance; and (b) disadvantaged rural school leavers by supporting the development of higher secondary education closer to communities. Among the latter group, women would benefit particularly, in view of reluctance of many families to approve female education away from the community. The project also faces some significant risks. The policy measures facilitated by the project may create levels of. student unrest that could be politically difficult to handle. The Government may be unable to resist the demands for admission to the university from the rapidly growing ranks of secondary-school graduates. This could result in further expansion of enrollments, worsen the already intolerable congestion and management difficulties, and create further strong pressures for re-allocation of scarce funds from other priority areas. The risk of student unrest will be mitigated by TU moving to qpickly demonstrate benefits associated with the project in terms of improved educational conditions, particularly while the more sensitive reform measures are being implemented. 23. Recommendation. X am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve it. Levis T. Preston President Attachments Washington, DC November 23, 1993 Schedule A KINGDOM OF NEPAL IGHER EDUCATION PROJECT Ratimated Costs and Financing Plan Matimated Costs Local FONOeS Tota -------- (US$ million)------- Enatitutional Development 4.1 3.6 7.7 Selected Facilities Xmprovement 3.8 4.8 8.6 Xnstructional Development and Assessment 0.9 1.1 2.0 Preparation for Higher Secondary Education 0.6 0.7 1.3 Base Cost 9.4 AA Physical Contingencies 0.5 0.5 1.0 Price Contingencies 1.8 0.7 2.5 Total Project Cost 1 1. 23.1 2". Financing Plant Local Foreian Toal -------- (US$ million)-------- Government 3.1 0.0 3.1 IDA 8.5 11.5 20.0 Total 11.6 11.5 23.1 --------------------------------------------------- 1/ Includes duties and taxes estimated at US$1.2 million equivalent. -9- Ochedule 0 Page I of 2 RZNGDOM 0F 2EPAI, IGHER EDUCATION PROJECT Aounts an«d Methods of pocureMaent Procurement Method laternational Local Competitive Competitive Local Bidding Bidding Shopping N. A. Total L vil Works - 9.3 - - 9.3 (7.4) (7.4) 2. Goods 7.8 (7.2) 2.1 Veicies 0.1 0.1 - (0.1) (0.1) 2.2 Equipment and Furniture 3.9 1.9 0.4 - (3.7) (1.8) (0.3) 2.3 Books and Materias 0.7 0.6 0.1 (0.6) (0.5) (0.1) 3. Consulthnnie and Tra~ning a/ 4.2 (4.1) 3.1 IstitutionalDevelopment 2.2 (2.2) 3.2 Project Prepartion and 1.6 Tmplementatinn Support (1.5) 3.3 Training~Study Tours 0.4 (0.4) 4. Miscellaneous 4.1 Salaris 0.3 0.3 4.2 Operational Costs bl 1.5 1.5 (1.3) (1.3) Total 4.7 11.9 0.5 6.0 23.1 (4.4) (9.8) (0.4) (5.4) (20.0) Not.: Figures in parentheeis are the respeotive amounts flnane by International Development Association. al Services will be procured in accordance with World Bank Guidelines: Use of Consultats by World Bank Borrowers (August 1981) bl Includes $0.75 mlion for ture project preparton - 10 - Schedule B Page 2 of 2 RINGDOM Or N3PAL HIGNER EDVCATION PROJECT Allocation and Disbursement of thy Proposed IDA Credit Amount % of Expenditures to be CGoryM (US$ million) financed Civil Works and 7.4 professional fees (a) civil works (b) p;.ofeasional fees 100% Goods 6.9 100% of foreign expenditures, 100% of local expenditures (ex-factory cost) and 75% of local expenditures for other items procured locally Local Training 0.6 95% Consultants' services 2.9 100% and fellowships Studies (Future Project 0.8 100% Preparation) Project operating costs 0.4 80% Unallocated 1.0 TOTAL 200 Estimated ZDA Dipbursements FY 94 95 96 97 98 99 2000 2001 ------------------- (US$ mllion)-------------- Annual 0.9 2.1 3.5 4.4 4.5 2.6 1.5 0.5 Cumulative 0.9 3.0 6.5 10.9 15.4 18.0 19.5 20.0 - 11 - scheduleC KINGDOM OF NEPAL HIGHER EDUCATION PROJECT Timetable for Rey Pryiect ProcessinaE Eents (a) Time taken to prepare- 13 months (b) Prepared by: University authorities in collaboration with IDA (c) First IDA mission: January 16, 1992 (d) Appraisal mission departure: March 5, 1993 (e) Negotiations: September 21, 1993 (f) Planned date of effectiveness: March 15, 1994 (g) Relevant PCR/PPARs None in the subsector CHEDULE 0 -12- ageIloft THE STATUS OF BANK GROUP OPERATIONS IN NEPAL A. STATEMENT OF BANK LOANS AND IDA CREDITS a> (As of September 30. 1893) Amount In US$ million (less cancellations) Credit No. Year Borrower Purpose Bank IDA Undlebursed 40 credits have been fully disbursed 474.43 Of which SECALs. SAL9 and Program Loans b> Cr. 1769-NEP 1987 Nepal Structural Adjustment 0.00 80.00 Cr. 2046-NEP 1989 Nepal Structural Adjustment 0.00 60.00 Sub-Total 0.00 110.00 Cr. 1478-NEP 1984 Nepal Power II (Marsyangdi) 107.00 39.42 d> Cr. 1615-NEP 1985 Nepal Highways ill 47.60 17.23 Cr. 1534-NEP 1985 Nepal Agricultural Manpower 8.40 5.28 Cr. 153S-NEP 1985 Nepal Industrial Development 7.50 1.53 Cr. 1570-NEP 1988 Nepal Agricultural Extenslon if 7.20 6.21 Cr. 188-NEP 1988 Nepal Telecommunications IV 22.00 7.85 Cr. 1698-NEP 1986 Nepal Cottage & Small Industries 5.75 0.41 d> Cr. 1715-NEP 1988 Nepal Narayani Irrigation Ill 24.50 15.72 Cr. 1727-NE a> 1987 Nepal Rural Development Ill 19.10 18.8 d> Cr. 1814-NEP 1987 Nepal Suneari-Morang II 40.00 11.64 Cr. 1922-NEP 1988 Nepal Road Flood Rehabilitation 18.50 6.43 Cr. 1924-NEP 1988 Nepal Mahakall Irrigation it 41.30 19.09 Cr. 1988-NEP 1989 Nepal Municipal Dev & Earthquake 41.50 22.05 Cr. 2028-NEP 1989 Nepal Hill Community Forestry 30.50 28.08 Cr. 2029-NEP 1989 Nepal Arun Il Access Road 32.80 34.49 d> Cr. 2044-NEP 1989 Nepal Engineering Education 11.40 11.27 Or. 2047-NEP 1989 Nepal Earthquake School Rehab 22.80 16.03 Cr. 2144-NEP 1990 Nepal Shairawa Lumbini III 47.20 41.06 Cr. 2289-NEP 1991 Nepal Urban Water and Sanitation Rehab. 80.00 59.76 Cr. 2347-NEP 1992 Nepal Power Efficiency Improvement 65.00 63.80 Cr. 2357-NEP 1992 Nepal Basic and Primary Education 30.00 30.01 Cr. 2364-NEP 1992 Nepal Telecome V 55.00 65.62 Cr. 2430-NEP 1993 Nepal Sunearl Morang Headworks 28.00 24.80 Total 0.00 1244.98 e 836.48 a> of which has been repaid 17.06 Total now hold by Sank and IDA 0.00 1227.92 Amount sold of which repaid Total undlebursed 536.48 a> No Bank loans have been made to Nepal. b> Approved during or after FY80. c> Closed on July 15. 1993. d> Projects being restructured andlor cancelled. e> The principal amounts of IDA credits are shown in US Dollar equivalent at date of negotiations, as shown in the Preeldent's Report. Undlsbured amounts shown in US Dollar equivalent are valued at the exchange rate applicable on the date of this statement. In some cases, therefore, the undisbursed balance Indicates a dollar amount greater than the original principal credit amount expressed in dollars. - 13- Schedule D Page 2 of 2 STATEMENT OF IFC INVESTMENTS (As of September 30, 1993) Committed for IFC's Account Investment Fiscal Type of Loan Equity Total Number Yeag- Ob BpUin (US$ Million) 1 Project closed 312 1975 Soaltee Hotel Ltd. Tourism 3804 1993 0.75 0.44 1.19 Total Gross Commitments 0.75 0.44 1.19 Total Commitments now held by IPC a> 0.75 0.44 1.19 Total Undisbursed 0.00 a> Exchange adjustments account for variation in total gross commitments, less cancellations, etc., and total commitments now held by IFC. 斗〔