China - Polytechnic - Television University Project

Dociun tof The World Bank FORt OFFICAL USIE ONLY Report NY. 12496 PROJECT COMPLETION REPORT CHINA POLYTECHNIC/TELEVISION UNIVERSITY PROJECT (CREDIT 1411-CHA) NOVEMBER 17, 1993 MI CROGRAPH I CS Report No: 12496 Type: PCR Environment, Human Resources and Urban Development Operations Division China and Mongolia Department East Asia & Pacific Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (as of April 1993) Currency Renminbi (RMB) Unit Yuan (Y) US$1.00 - Y5.7 Y1.00 - $0.18 FISCAL YEAR January 1 - December 31 ACADEMIC YEAR September 1 - August 30 ABBREVIATIONS CRC Chinese Review Commission CRTVU Central Radio and Television University DCA Development Credit Agreement FILO Foreign Investment and Loan Office IAP International Advisory Panel NEC Municipal Education Commission MOE Ministry of Education PCR Project Completion Report PEC Provincial Education Commission PTVU Provincial Television UTniversity SEdC State Education Commission UDPI University Development Project TVU Television University Note: At the time of project appraisal, the chief implementing agency was known as the Ministry of Education. In 1985, as part of a major decision on education reform, this agency was renamed the State Education Commission to reflect its change in status to an agency directly under the State Council. In this document, the agency is generally referred to as the State Education Commission (SEdC).  FOR OFFICUL USE ONLY THE WORLD BANK WaShington, O.C. 20433 U.SA wa tIons Evauaton November 17, 1993 MEMORANDUM To THE EXEE DIRECTORS AND THE PRESIDENT SUBJECD: Project Completion Report on China Polytechnic/Television University Project (Cr. 1411CHIA' Attached is the Project Completion Report on China - Polytechnic/Television University Project (Cr. 1411-CHA) prepared by the East Asia and Pacific Regional Office. Part II was prepared by the Borrower. The project substantially, if unevenly, achieved its main objectives of expanding capacity and enrollments, and enhancing instructional quality in the new polytechnic and television University systems. Outcome of the project is rated as satisfactory. The project is remarkable for the fact that it had significant accomplishments despite a range of constraints, including hasty and inadequate preparation and supervision, faulty design, a shifting economic and sector policY context, risky institutional innovations and complex, partly unforeseeable, technological problems with equipment. On the positive side, the commitment of project staff and the responsiveness of Bank staff in identifying and proposing solutions to issues smoothed the rough path which the project trod. The project only partially achieved its institutional development objectives with regard to staff of project institutions, project management staff and subsector planning and evaluation capacity building. This was largely due to inappropriate technical assistance and fellowship programsIand unintegrated management, especially the polytechnic and television University components which belonged to different systems. Sustainability is uncertain despite the mushrooming of polytechnics outside the project. This is because: (a) evolving policy in vocational and higher education renders the future of project institutions unclear and no follow-up plans have been made; and (b) there are risks that possible localized funding and management may be weak under the current trend toward; decentralization. Ihe PCR is thorough, frank and analyticaL No audit is planned for this project. Attachment This document has a restricted distributon and may be used by recipients only in the peformance of their official duties. is contents may not otheniwse be disciosed wthout World Bank authoization.  FOR OMCAL USE ONLY PROJECT COMPLETION REPORT POLYTECHNICYTELEVISION UNIVERSIT' PROJECT (Credit 1411-CHA) Table of Contents Page No. Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Evaluation Summary . . . . . . . . . . . . . . . . . . . . . . . . . I. PROJECT REVIEW FROM BANK'S PERSPECTIVE Project Identity . . . . . . . . . . . . . . . . . . . . . . . . . . Project Background ...... . .. . . .. . . .. . . .. . . . . Project Objectives and Description ................ . 2 Project Design .......................... . 3 Project Implementation ...................... . 4 Major Results of the Project ................... . 7 Project Sustainability . . . . . . . . . . . . . . . . . . . . . . 9 Bank Performar'ce ......................... . 10 Borrower Performance ....................... . 11 External Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Project Relationship ....................... . 12 Project Documentation and Data .... . . . . . . . . . . . . . . . 12 Lessons Learned . . . . . . . . . . . . . . . . . . . . . . . . . . .12 II PROJECT REVIEW FROM BORROWER'S PERSPECTIVE .... . . . . . . . 14 Adequacy and Accuracy of Factual Information in Part III . . . . . . .14 Comments on the Analysis in Part I . . . . . . . . . . . . . . . . . .14 Bark Performance . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Borrower Performance . . . . . . . . . . . . . . . . . . . . . . . . .20 III. STATISTICAL INFORMATION 1. Related Bank Loans and IDA Credits. . . . . . . . . . . . . . . .22 2. Project Timetable . . . . . . . . . . . . . . . . . . . . . . . .24 3. Cumulative Estimated and Actual Disbursements . . . . . . . . . .25 4. Planned and Actual Completion Dates of Components . . . . . . . .26 5. Project Costs . . . . . . . . . . . . . . . . . . . . . . . . . .27 6. Allocation of Credit Proceeds . . . . . . . . . . . . . . . . . .28 7. Project Indicators. . . . . . . . . . . . . . . . . . . . . . . .29 8. Project Study . . . . . . . . . . . . . . . . . . . . . . . . . .31 9. Status of Credit Covenants. . . . . . . . . . . . . . . . . . . .32 10. Staff Inputs by Stage of Project Cycle. . . . . . . . . . . . . .33 11. Mission Data by Stages of Project . . . . . . . . . . . . . . . .34 ANNEXES Annex 1: Evaluation Report of the International Advisory Panel and Chinese Review Commission (Executive Summary) Annex 2: Participants in Final Evaluation Visit (March/April 1990) This document has a restrkted distribution and may be used by recipients only in the performance of their oflicial duties. Its contents may not otherwise be disclosed without World Dank authodration.  - i " CHINA POLYTECHNICtTELEVISION UNIVERSITY PROJECT (Credit 1411-CHA) PROJECT COMPLETION REPORT Preface This is the Project Completion Report (PCR) for the Polytechnic/Television University Project in China, for which a Credit (1411- CHA) in the amount of SDR 79.6 million was approved on September 13, 1983. The credit was closed on June 30, 1992, two and a half years behind schedule. By June 30, 1990, implementation of the project as app .ised was substantially completed. To utilize credit savings of approximately SDR 13 million, an equipment maintenance account was established in April 1990, with the approval of the Association's Board of Directors and amendment to the Development Credit Agreement (DCA). The account continued disbursing through mid-1992. The PCR was jointly prepared by the Environment, Human Resources, and Urban Development Division, China and Mongolia Department, East Asia and Paoific Regional Office (Preface, Evaluation Summary, Parts I and III) and the Borrower, represented by the State Education Commission (Part II). Preparation of this PCR was organized during a completion mission of the project in March/April 1990, and is based, inter alia, on the Staff Appraisal Report; Development Credit Agreement; annual progress reports of the Borrower; reports of the International Advisory Panel and Chinese Review Commission for the project; evaluation questionnaires and reports by the project institutions; reports of specialists who visited project institutions to provide training and technical assistance; correspondence between the Bank and the Borrower; and internal Bank memoranda.  -iii- CHINA PQLYTECHNIC/TELEVISION UNIVERSITY PROJECT (Credit 1411-CHA) PROJECT COMPLETION REPORT Evaluation Sumnary Introduction 1. This was the third Bank-assisted project in education for China, and the ninth operation to be approved following the Government's renewal of membership in the World Bank in 1980. The two preceding education projects supported development of existing key natioral universities and agricultural colleges and research institutes, and were completed in June 1985 and December 1988, respectively. This project was undertaken to further develop and expand access to post-secondary education through ralatively new institutions that could provide cost-effective, vocationally-oriented programs for recent secondary school graduates and adults whose education had been disrupted during the Cultural Revolution. The project was appraised in January-February 1983 and approved in September 1983. Total costs were estimated at US$206.2 million, of which US$84.8 million equivalent was to be financed by an IDA credit. The project was originally scheduled to close on December 31, 1989 but has been extended to permit completion of staff development programs in 1990 and disbursement of an equipment maintenance account in 1991-92. The project was completed in June 30, 1992. Including the maintinance account, the actual project costs have been US$202 million, with a foreign exchange component of US$92.1 million. Objectives and Project Content 2. Development of the project institutions supported the Government's effort to alleviate shortages of skilled manpower that hindered the pace of modernization and economic growth. China's television university system (TVU) had been reopened in 1979 and was to be expanded and modernized. The polytechnics in the project, among the first group of such institutions in China, were to constitute a new form of post-secondary education by providing two or three year diplomas through programs that were non-residential, required payment of fees and did not guarantee jobs to graduates. The project objectives were to increase the numbers of graduating technicians, improve instructional programs and strengthen management of both types of post- secondary institutions. To assist the polytechnic system, the project included development of 17 polytechnics through campus construction or renovation, provision of educational equipment, and a program of curriculum and staff development. To assist the TVU system, the project included construction and equipping of television production, laboratory and printing facilities for the Central Radio and Television University (CRTVU); construction and equipping of production, laboratory, audiovisual, and classroom facilities at 28 provincial television universities (PTVUs);  - iv - establishment of transmission stations for nine major provincial television universities; a pilot program of study centers in rural areas; and training and technical assistance for TVU staff. The project also provided for technical assistance and equipment related to evaluation and planning of ir.vestments in these and other educational systems. 3. In March 1990, the Board approved an amendment to the Development Credit Agreement to establish an Equipment Maintenance Account for Bank education projects from the unutilized funds from the project. Implementation Experience 4. Initial implementation was slower than expected, with disbursements at about 11% of appraisal estimates by the end of the first year of effectiveness. Slow disbursements were related to reasonable delays in construction and procurement, and difficulties in launching the technical assistance program. With increased effort by implementing agencies and support of external specialists, disbursements accelerated in 1986 and cumulative disbursements reached more than 200% of appraisal estimates for that year. At the end of 1992 disbursements had reached 107% of the estimated credit total of $85.0 million. 5. During implementation, the SEdC coordinated the provincial education bureaus and project institutions in procurement and installation of equipment, participated in technical assistance activities, and in preparation of annual progress and auditing reports to the Bank. Local officials and university leaders worked diligently to implement the project. The SEdC and individual project institutions received advice and assistance in planning and management of technical assistance from an International Advisory Panel and Chinese Review Commission financed under the project. 6. In terms of project issues, problems stemming from project design were encountered in implementing the training and technical assistance. The computing equipment selected to aid management of the TVU system turned out to be unsuitable for administration of these institutions and was not able to be fully utilized. Availability of satellite technology for educational broadcasting in China was not anticipated at appraisal but came about in 1986 and has had broad impact on distance education in general and on the project investments. Results 7. The educational capacity of both the polytechnics and TVUs has been increased significantly. More than one million graduates with vocational college diplomas and several million other adult certificate holders have been educated at the project institutions during i-mplementation. The 17 polytechnics established under the project are important examples for more than 100 other polytechnics established in recent years by provincial and municipal governments throughout the country. The television universities have been substantially modernized and expanded into a countrywide system that can be adapted to changing national and local labor requirements. There is  svidence of improvement in the quality of instruction through improved teaching methods and increased amounts and relevance of practice undertaken by students in conjunction with classroom learning. Thtc scope of instruction offered has broadened through development of many new study fields and courses in science and engineering as well as the social sciences, finance and foreign languages. Significant development of management and administration systems has been achieved in only some of the project institutions. There has been less progress than expected in evaluation and planning systems. 8. Fur-ls from the Maintenance Account were provided to 28 institutions for the procurement of spare parts and accessories. This account has provided a source of funds for the institutions to make purchases of spare parts and accessories in a timely manner, thus resultin. in increased utilization rate of their equipment. Sustainability 9. With China's ongoing efforts to modernize, there will be continued demand for the kind of post-secondary education that the project institutions are now well-established to provide. The polytechnics and TVUs are evolving, however, in ways that will make it difficult to fulfill or sustain the original concept of SEdC and the Bank of locally managed institutions that function more or less similarly across the country according to centrally articulated policies. A key question in the fucure development of the polytechnics and TVUs is to what extent central government policies and available resources cani be used to support and guide development of these institutions, especially if the burden of financing and management is increasingly shouldered by local institutions. 10. As the funds in the Maintenance Account are repaid over an 18-24 month period from the borrowing institutions other institutions from previous Bank-financed projects may borrow funds for spare parts and accessories. Findings and Lessons Learned 11. The principal lessons learned during project preparation, implementation and evaluation, wlth implications to other projects, are summarized below: (a) Project design and preparation should be based on v-.derstanding of the broad policy context of the operation and, to the extent possible, should incorporate existing local institutions, resources and expertise. (b) It is important that the design of large-scale technical assistance programs in China provide for involvement of people and institutions in China who are allocated the time and resources to guide visiting foreign specialists. (c) Assessment of staff development needs and potential training solutions must take into account the current skill level and experience of the target group.  - vi - (d) To the extent possible, there needs to be continuity of staff in project supervision and adequate resources and attention to reorientation in the case of staff turnover. (e) Systems for monitoring and evaluation of investments in educational institutions, especially new ones, need to be continually assessed and refined. If indicators are found to be unsuitable or rnot useful, they should be revised. (f) To maximize returns on investment in long-term external project advisors, it is essential that there be close and continuous coordination of the Government's implementing agencies, the external advisors and Bank staff responsib for supervision.  CHlIN POLYTECHNIC/TELEVISION ,IgERSITY PROJECT (Credit 1411-CHA) RJECT COMPLETION R PART i. PROJECT REVIEW FROM BANK'S PERSPECTIVE A. Project Identitv 1.1 - Project Name: Polytechnic/Television Uni-ersity Project - Credit No.: 1411-CHA - RVP Unit: East Asia and Pacific Regional Office, China and Mongolia Department - Courtry: China - Sector: Education - Subsector: Higber Education B. Proect_ Backtround 1.2 Sector Development Objectives. In support of China's ambitious modernization effort, the Bank's lending to the Government in education in the early 1980G was aimed at helping to alleviate severe shortages of skilled manpower, especially in science and engineering. These shortages stemmed from the disruption of post-secondary education and China's isolation during the Cultural Revolution. Access to higher education in China was limited, with an enrollment ratio of 2.1% of the age cohort in 1981 compared with 5% in other developing countries. Bank assistance was thus directed toward expanding opportunities and access to higher education. Specifically, the Government had decided to develop conventional universities, establish a system of short- term vocational colleges (polytechnics), and develop its television university (TVU) system. The TVU had been started in the early 1960s to train science teachers, closed during the Cultural Revolution, and reopened in 1979. 1.3 Policy Context. In 1983, as the project was being developed, the Government's reform program was achieving progress in rural areas and reform efforts were increasing in the industrial sector. These were strong "push" factors for development of higher education. Yet, the cost implications of expanding conventional universities under existing policies of free boarding, tuition and scholarships for students and guaranteed job assignment for graduates were viewed by the Government as constraints to further expansion of these higher education institutions. The polytechnic and TVU systems were seen as a faster and less costly means of expanding post-secondary education to produce middle-level technicians. Polytechnics were to offer post- secondary technical education to recent upper secondary school graduates. TVU education was initially to upgrade the skills of currently employed workers and over time to enroll an increasing proportion of secondary school graduates. New education policies were to be introduced through the polytechnics. In contrast to conventional universities, these institutions  would be non-residential, students would pay tuition, and graduates would not be guaranteed future employment. 1.4 Linkages Between groject. Sector and Policy Objectives. The polytechnics and television universities developed through the project are making an important contribution to meeting China's requirements for technical, managerial and other qualified manpower to support modernization and development. The policy innovations in the polytechnics (described in para. 2 above) have been launched but in some respects were -.ot able to be fully implemented because they were dependent on broader reforms in housing policies, enterprise management. wages or the labor assignment system. C. Project Obiectives and Descriptions 1.5 Project Objectives. The specific objecti- s of the project were to: (a) increase the output of technicians from the initial group of polytechnics and expand the enrollment capacity of the TVU system; (b) raise the quality, scope and relevanca of instruction; and (c) improve the standards of management in both systems. The project institutions were to work toward targets to be attained by the end of the project with respect to enrollment levels, student-teacher ratios, the number of specializations and courses, space utilization and other efficiency measures (Part III, Table 7). 1.6 Project Components. The project was to consist of tlhe following components: (a) Polytechnic System--(i) establishment or improvement of 17 polytechnics, including construction or renovation of libraries, laboratories, and classrooms; (ii) provision of educational equipment, including laboratory, language laboratory and audiovisual equipment and computers, books and teaching materials; (iii) a program of curriculum and staff deve'opment, including training seminars, fellowships, and local and overseas study tours for teaching staff; (b) Television University System--(i) construction and equipping of a production center, a laboratory center and printing facility to assist the Central Radio and Television University (CRTVU); (ii) in the 28 provincial television universities (PTVUs), construction and equipping of about 9 major and 19 minor production centers, and about 85 study centers, each consisting of a laboratory, audiovisual and classroom facilities; (iii) construction and equipping of transmission stations at nine major (PTVUs); (iv) a pilot program of study groups in rural areas and provision and equipping of classrooms for use by these study groups; and (v) staff development for CRTVU and PTVU staff through provision of local training, overseas fellowships and study tours, and specialist services. (c) Evaluation and Planning--Improving and assisting the evaluation of current investments in the polytechnic and television  university systems and planning and preparation of future investments in these and other educational systems through provision of local training, overseas fellowships and study tours, specialist services and related equipment. (d) Near the end of the Project, the Board approved an amendment to the Credit Agreement to establish an equipment Maintenance Account with the unutilized funds (savings) from the Project. The account provided a fund for institutions from Bank education projects to borrow foreign exchange for the purchase of spare parts and accessories. D. Project Design 1.7 The project was designed in a remarkably s' irt period, considering that China had only resumed its membership and borrowing activity with the Bank in 1980. This was the third education project in China developed in a period of approximately three years (Part III, Table 1); implementation of the two previous projects was underway but in relatively early stages. In the Bank, a single task manager was responsible for all three of these projects. Conceptualization and preparation for the Polytechnic/TVU Project were initiated during the appraisal mission for the Agricultural Education and Research Project in late 1981. The project was organized through a preparation mission in October 1982 followed by appraisal in January 1983. A total of approximately 80 staff and consultant weeks were devoted to the project from preparation through negotiations. Additional expatriate assistance in project preparation was provided to the Government by UNESCO and specialists hired by SEdC with funds available for project preparation under the first University Development Project (UDPI). 1.8 The aim of the project - to develop higher education in a cost- effective manner through these relatively new kinds of institutions was mutually understood by SEdC and the Bank, and considered innovative in the Chinese context. The design incorporated features of the earlier UDPI Project. Common elements included: (a) the project was to support a relatively large number of higher education institutions (in this case 46) in various provinces throughout the country, with overall project coordination and policy guidance by SEdC in Beijing; (b) the bulk of investment under the project was to be for equipment and civil works to expand and upgrade facilities at all institutions, with review of planned expenditures and procurement to be coordinated centrally; (c) overseas fellowships and expatriate technical assistance were to be provided for staff development in project institutions; (d) allocations to individual universities and the schedule of implementation were to be basically common for participating institutions; and (e) implementation of physical and technical assistance inputs to the project institutions were to proceed simultaneously after project effectiveness. An additional common element of the Polytezhnic/TVU Project to UDPI was inclusion of an International Advisory Panel (IAP) and Chinese Review Commission (CRC) which would advise SEdC and the project institutions and, with assistance from an IAP secretariat based overseas, would support SEdC in defining and managing a technical assistance program of  - 4 - specialist visits and study tours. (This latter feature was not described in the appraisal report, although it had been discussed during preparation). 1.9 In implementation, the design proved to be inappropriate in several respects, mainly because the project institutions differed from the universities supported under UDPI. In comparison with the key conventional universities, the polytechnics and TVUs were new and less well-established, had fewer international contacts, were generally staffed with less experienced faculty, and offered more vocationally oriented programs. Unlike the UDPI universities, which are national in status and receivp most of their financial support directly from SEdC, the polytechnics and PTVUs are managed and financed primarily by provincial and municipal governments; thus SEdC's influence was somewhat less direct under this project. Not only were the project institutions different from conventional universities, but the polytechnic and TVU systems differed from one another I terms of educational delivery. The polytechnics used a more traditional classroom approach while the TVU was based on an innovative use of technology in study centers often linked to enterprises. Uniting the development of these two very different systems into a single project that involved extensive foreign involvement proved a complex undertaking for SEdC. E. Project Imolementation 1.10 The start-up of implementation was slower than expected, with disbursements at about 11% of appraisal estimates at the end of the first year of effectiveness. With progress in civil works, and with large procurement packages and the establishment of the IAP/CRC to support technical assistance management, implementation accelerated to reach more than twice the level of cumulative appraisal disbursement estimates by the end of 1986. Thereafter, disbursements increased moderately and leveled off in 1989. The variances between planned and actual project implementation were: (a) the program of overseas fellowships for staff development was only about half that estimated at appraisal; (b) some television production equipment purchased under the project is not being used as extensively as expected; (c) specialist visits to project institutions were not as useful and relevant to project institutions as expected; and (d) evaluation and planning for the TVU and polytechnic systems under the project was not undertaken as envisaged at appraisal. 1.11 The shortfall in overseas fellowships occurred mainly because there were fewer candidates than estimated from the polytechnics and television universities who had the requisite language skills for study in a foreign country. The problem was recognized duiing the first year of implementation, and steps were taken by SEdC and the project institutions to provide for appropriate language training. Even with these efforts, however, the total number of fellowships could not reach the levels estimated at appraisal. This problem could have been avoided through more careful assessment of staff training needs in the project institutions during project design. It might have been more appropriate and cost-effective to address a greater proportion of training needs within China using domestic expertise.  1.12 There is underutilization of facilities and equipment provided under the project for the production of educational television programming at some of the PTVUs. Reasons vary across institutions but often include faulty studio design or construction, shortages of qualified technical staff, or lack of operating funds. An overall factor is limited transmission time for locally produced educational television at provincial and municipal TV stations. In their broadcasting, these stations must give first priority to TV education programs produced, approved and broadcast nationwide under the auspices of CRTVU. In a few cases, PTVUs are contracted by CRTVU to produce programming used nationwide, but in general this does not make full use of provincial capacity, and there are limited incentives for PTVUs to invest in program development. In hindsight, it might have been possible to avoid low returns on some investment in this equipment had there been more thorough appraisal of central policies that were to guide TVU broadcasting and of the perceived needs of CRTVU and PTVUs to develop local pro action capacity. A more efficient alternative to investment in new capacity might have been the upgrading or expansion of production facilities at local television stations, although coordination across institutional boundaries in China is sometimes problematic. 1.13 Given the innovative nature of the project institutions, it was believed that exchange of ideas with foreign specialists would assist project institutions to adopt new ideas and make good use of technology. In project evaluation (described in para. 33), responses to a questionnaire and follow-up queries during the project completion mission revealed that one quarter of project institutions reporting in the evaluation found the visits and workshops by foreign specialists of little or no use to their staff. Institutions reported a gap between the foreign specialists' knowledge and advice and the conditions faced in Chinese institutions. Contributing factors may have been the differences of the polytechnics and TVUs from conventional universities (see para. 8), insufficient allowance of time and resources for briefing of foreign specialists and preparation by the specialists, and a lack of intensive involvement by Chinese specialists in the design and delivery of workshops. What has been learned from this experience is that future projects need to incorporate more Chinese specialists to help assess needs, design and evaluate training programs, and brief and guide visiting specialists. 1.14 The appraisal envisioned that CRTVU and SEdC would be supported under the project thrcugh a component for evaluation and planning (para. 5 (c)). The DCA speciried that units for evaluation of polytechnics and the TVU system would be established and maintained in SEdC and CRTVU, respectively, but no explicit terms of reference were agreed during preparation or implementation for the functions of these units under the project. There was no unit established in SEdC to oversee the polytechnic system per se. Since 1987, the Bureau of Technical/Vocational Education in SEdC has been designated as responsible for the polytechnics. For evaluation and planning of TVUs, the CRTVU originally assigned responsibility to its administrative office, but this role became difficult to carry out as administration of the TVU system was decentralized. The Bureau of Audio-Visual Education in SEdC is now responsible for overseeing the TVU system. Responsibility for evaluation of project investments in the polytechnics and TVUs and for reporting to the Bank  has been assumed by the Foreign Investment and Loan Office (FILO) of SEdC, but this evaluation role is unlikely to be sustained after project completion. Under the project, there has been little systematic forward planning for polytechnic and TVU education by the central government and no future projects have been prepared to support these systems. 1.15 Project Risks. Of the project risks identified in the appraisal report, the uncertainties arising from the "newness of the polytechnic institutions and the policy changes for Chinese education" were of consequence to the project. This risk was to have been mitigated by the evaluation and planning component and by the use of project monitoring indicators. On reflection, there might have been greater effort by Bank staff to help reduce this risk during project preparation through more in-depth study of the local conditions and policy context in which these institutions were being developed, inclusion of fewer institutions in the proje-t, provision of more intensive technical assistance based on detailed needs assessment, or phasing certain aspects of the project in a pilot group followed by study and expansion of successful implementation in a broader number of institutions. 1.16 Unforeseen Factors Affecting Project Implementation. Satellite broadcasting for education became available in China in 1986. This development was not anticipated at appraisal but has had widespread impact on distance learning in China. Satellite has dramatically increased the capacity for nationwide distribution of programming from Beijing. In addition to developing the TVU system as envisaged at appraisal, the Government has launched an educational television channel and an in-service teacher training program via satellite. The chief consequences of satellite use for the project are that some terrestrial transmission equipment purchased for the CRTVU is not used, and programming produced by PTVUs may be "crowded out' by the CRTVU programming that is now available from Beijing. Local TV stations providing transmission for TVU programs now operate on a "hybrid system" in which they receive CRTVU programming via satellite from Beijing and disperse it throughout the province by microwave relay transmitters, many of which were putrchased under the project. Had it been anticipated that satellite would become available to the TVU system during the project, the investment might have included more purchase of earth stations (which cost as little as US$1,000 and are manufactured in China) for branch or study centers in very remote areas, not all of which are presently served by the hybrid system. 1.17 It was not anticipated in 1983, when the outlook on higher education in China was clearly expansionary (paras. 1-2), that development of the project institutions might be affected by quotas on full-time enrollment. Such quotas were implemented in universities throughout China in 1988, in part to allow for increased resources for the effort to achieve universal basic education. Contrary to expectations at appraisal, the polytechnics and TVUs have not been exempted from these growth constraints in consideration of the cost-effectiveness of their operations. The justification and full impact of these policies on the project institutions, which also include large populations of part-time students, has not yet been carefully analyzed. Reliable and comparable data on total student enrollments in polytechnics and the TVU are needed. It appears possible, however, that the quotas may be  -7- preventing project institutions from operating at the full capacity envisioned for project completion and thus could be resulting in inefficient use of resources. 1.18 There has been a savings in the credit proceeds of about SDR 13 million which arose partly from lower than estimated expenditures, and partly from fluctuations in the dollar value of the EDR over the life of the project. This savings is being used to address the shortage of foreign exchange for purchase of spare parts and maintenance services, an issue of sustainability in this and other education projects in China. The Government and the Association, with the approval of the Association's Board of Directors and amendment to the DCA, agreed in May 1990 to establish an equipment maintenance account that could be used as a revolving fund to maintain equipment purchased by project institutions under this project and other education projects funded by the Bank/IDA in China. 1.19 Decision Taken which Affected Proiect Implementation. The type of computing equipment selected through International Competitive Bidding and purchased to support management and administration in the CRTVU and PTVUs has affected project implementation. The operating system and software compatibility of this equipment turned out to be unsuitable for the administration of these institutions. At the recommendation of the Bank, the SEdC employed specialists in educational and computing equipment to assist in adoptation of the equipment to the original specifications. Staff at one of the PTVUs devised a way in which the computers could be adapted for use in administration and SEdC organized a workshop of the other PTVUs to disseminate this approach. Nevertheless, in the CRTVU and all but a few PTVUs, this equipment remains unused. It is difficult to say what additional steps might have been taken to avoid this problem. F. Maior Results of the Proiect 1.20 Project Objectives. Overall, there was significant progress on each of the major project objectives, although the degree of success varied among institutions. Full-time enrollment in both the polytechnics and TVUs has grown significantly during the project period but not to the high levels envisioned during appraisal. The reported numbers of part-time students at both types of institutions exceed appraisal estimates. There is evidence of improvement in the quality of instruction through improved teaching methods and increased amounts and relevance of practice undertaken by students in conjunction with classroom learning. The scope of instruction offered has broadened through development of many new study fields and courses in science and engineering as well as the social sciences, finance and foreign languages, which are seen as important for meeting social, economic and educational needs. Employers interviewed during the completion mission-I described 1/ Opportunistic interviews were conducted with groups of 10-20 employers of graduates at the polytechnics and TVUs visited by the evaluation group in four provinces. Annex 2 lists members of the evaluation team.  - 8 - graduates of the project institutions as generally well-prepared for the workplace and able to be trained quickly In the specific tasks of their jobs. Development of management and administration systems, however, has been uneven among project institutions. 1.21 ImDact of Project. More than one million graduates with vocational college diplomas and several million other adult certificate holders have been educated at the project institutions during implementation. The 17 polytechnics established under the project, among the first group of such institutions in China are important examples for more than 100 other polytechnics established in recent years by provincial and municipal governments throughout the country. The television university system has been substantially modernized and expanded and developed into a countrywide system that can be adapted to changing national and local labor requirements.21 The project institutions have increased participation in higher education among upper secondary school graduates whose scores on the national examination were not high enough for entrance to conventional university and among adults seeking opportunities for continuing education. The Maintenance Account provided funds to 28 Bank project institutions to procure spare parts and accessories on an emergency basis. This enabled the institutions to procure spare parts in a timely manner and in turn increasing the utilization rate of the equipment. 1.22 Policy Initiatives. With respect to the policy innovations described in para. 2, the project provided a testing ground for new ideas but, it appears that the policy initiatives have not extended as far as they were expected because success depended on far-reaching reform in other sectors whose relatiotiship to educational reform was not carefully studied during project preparation. For example, it was intended that polytechnics be non- residential, but the project institutions have found it necessary to build dormitories to provide access for students who live too far away from the campus to commute and are unable to obtain temporary housing nearby through the housing assignment system. (In addition, polytechnics must provide housing for staff.) Tuition has been levied for students of both types of institutions but the fees vary widely among provinces depending on economic conditions. They are often paid by the enterprise in the case of the TVU, and do not appear to be established in relation to actual unit costs and plans for cost recovery. Graduates from the polytechnics are permitted some flexibility in choice of jobs, but in general their placement in positions must be part of the government plan for supply of manpower. While it was originally intended that the TVU would increasingly enroll recent upper secondary school graduates, it appears that TVU students have further diversified to include, for example, upper secondary school students and teachers. 21 A total of 120 TVU study centers were established under the project, exceeding appraisal estimates by 35.  -9- G. Project Sustainability 1.23 With China's ongoing efforts to modernize, there will be continued demand for the kind of post-secondary education that the project institutions are now established to provide. The polytechnics and TVUs are evolving, however, in ways that will make it difficult to fulfill or sustain the oriSinal concept of SEdC and the Bank of locally managed institutions that function more or less similarly across the country according to centrally articulated policies. A key question in the future development of the polytechnics and TVUs is to what extent central policies aad available resources can be used effectively to support and guide development of these institutions, especially if the burden of financing is increasingly shouldered by localities. 1.24 Some present policies may be constraining development and efficiency improvements of project institutions. For example, leaders and local government supporters of polytechnics and PTVUs envision expansion of facilities and courses over the next several years to increase their capability to meet local needs. If full-time enrollments are curtailed, even with present facilities, there are likely to be rising unit costs of providing education through these institutions and thus growing inefficiency. Central policies are also encouraging polytechnics and PTVUs to give priority to vocational programs for secondary school students in rural areas. Yet, in the case of polytechnics, most campuses are located in provincial capitals or major cities and have few or no dormitories or branch campuses. At the same time, many local governments are seeking to develop 'their' polytechnics toward becoming conventional four year, degree-granting universities. The TVU system is strongly influenced by CRTVU's regulation of the examination process and role in allocation of transmission time, yet the CRTVU plays a relatively small role in evaluation, policy analysis, innovation and overall leadership of the TVU system. In fact, the quality and capacity of television production by CRTVU has been surpassed under the project by some of the stronger PTVUs. 1.25 Currently, policy decisions by the central government for the polytechnics and, in particular, the TVUs are based on very little or unreliable data and analysis on student enrollments, examination results, local efforts in curriculum development, and perceived educational and train'.ng needs of local industries. If SEdC is to guide polytechnics and the TVU system with central policy for efficient development of institutions that will b. able to adapt readily to meet changing local needs, there will need to be greatly increased attention and resources allocated: to developing a nationally standardized system of student records for the institutions; further improving budgetary and financial management systems; training managers; devising incentives for efficiency; and fostering cooperation among institutions. 1.26 The central government, in cooperation with provincial and municipal education commissions, could also play a useful continuing role in assisting project institutions to use equipment resources efficiently by helping to develop systems for maintaining buildings and equipment. An  - 10 - important first step has been taken with the establishment of a revolving fund to provide foreign exchange for purchase of badly needed spare parts (para. 17). Another possible measure is the establishment of a mechanism that would facilitate redeployment of equipment that is not used in the project institutions. For example, in the case of TWUs, it might be possible to arrange for sale, auction or swap of the unused computers to other institutions and to use the proceeds toward purchase of microcomputers for TVU administration. These sorts of measures are difficult to initiate and implement in China because cooperation across institutional, local and provincial government boundaries is often complex. SEdC, however, with its broad mandate and established links to institutions and local governments nationwide could play an important role in helping overcome obstacles to cooperation. 1.27 The Maintenance Account has established the basis for a source of funds to enable education institutions to procure spare parts on an emergency basis. SEdC expects to relend the funds once repaid and to continue the operation of the fund. H. Bank Performance 1.28 Major Strengths and Weaknesses. The Bank staff mobilized a team of qualified specialists to work with SEdC in project preparation. These specialists and SEdC worked intensively over a short period to design and organize a project that could be implemented as quickly as possible and to help address what were perceived as urgent priorities in the expansion of higher education. The Bank ensured that specialists in educational equipment and procurement were available to assist SEdC in a special post-appraisal mission. Bank staff helped to organize the IAP and structure implementation of technical assistance. In hindsight, there were some costs during implementation to the accelerated preparation in the form of unanticipated difficulties in technical assistance (para. 12) and low returns on some investments in equipment (para. 11). On reflection, it might have been preferable to carry out more in-depth preparation in order to develop a better understanding of these new institutions and the local conditions and policy context in which they were to be developed. 1.29 A major weakness of Bank performance was in supervision. According to the Bank's management information system, total supervision between project effectiveness in FY84 through FY90, excluding work on the completion report, was approximately 60 weeks or an average of less than 10 staff weeks per year. Eighteen different staff and consultants participated in supervision, of whom seven spent more than two weeks supervising the project in any given fiscal year. Of the 46 project institutions in 28 provinces, Bank staff visited those in about 10 major cities during supervision. No site visits were made to the pilot TVU study centers in rural areas. There was relatively little direct contact with the IAP and virtually none with the CRC. Consequently, the Bank's supervision aide-memoires and reports to Bank management either overlooked or did not systematically review key implementation problems, namely those experienced in the specialist visits and in the evaluation component, and failed to investigate trends in  enrollment levels and qualitative aspects of educational programs and institutional management. I. Borrower Performance 1.30 Malor Strengths and Weaknesses. In view of the SEdC's limited experience in working with the Bank at the time of project preparation, there were some remarkable strengths in the Borrower's performance. The staff of the Planning and Finance Department and Foreign Investment and Loan Office (FILO) carefully and promptly developed the project proposals and assembled the data necessary for project preparation. During implementation, SEdC coordinated the provincial education bureaus and project institutions in procurement and installation of equipment, participation in technical assistance activities and in preparation of annual progress and auditing reports to the Bank. For their part, local officials and university leaders worked diligently to implement the project objectives as they understood them. Shortcomings in performance are mainly related to a lack of needed adjustments in the face of unanticipated changes or problems. SEdC staff were not closely involved in the design, delivery and evaluation of the specialist workshops. More steps could have been taken to improve the organization and effectiveness of the seminars as shortcomings were reported by the IAP/CRC and specialists themselves. It has been recognized for some time that certain equipment purchased under the project is not utilized at some of the project institutions, but progress has been slow in taking steps to redeploy these items. It would also have been useful to have greater involvement of the CRTVU and SEdC line bureaus in annual reporting and evaluation, IAP/CRC activities, and Bank supervision. K. External Advisors 1.31 The IAP and CRC for the project were constituted in 1985. These groups comprised eminent education professionals who provided advice and support to SEdC and individual project institutions throughout project implementation. IAP/CRC activities were centered on an annual month-long visit to China which involved inspection visits to project institutions and meetings with SEdC officials in Beijing to discuss issues and define technical assistance activities for the coming year. The IAP/CRC advised on TVU program production, curriculum development, administration and management, training needs, and opportunities for cross-institutional cooperation. The IAP/CRC offered many practical recommendations to SEdC, provincial and municipal governments, and project institutions (Annex 1). With support of its Secretariat, the IAP provided critical support to SEdC in the identification of experts from abroad for technical assistance activities and helped to arranged placement of fellows and programs for study tours. The IAP also provided valuable support in the undertaking of tracer studies of polytechnic and TVU graduates. A shortcoming of the IAP's contribution is that relatively less attention was paid to assisting SEdC in project mnonitoring and evaluation and to systematic analysis of issues arising during implementation, progress in policy initiatives, and the implications of broader policies and technical developments in China for the polytechnics and TVUs.  - 12 - J. Project ?lationshiv 1.32 Impact QRelationships on Project Implementation. The relationships between the Bank and SEdC and between SEdC and the IAP/CRC and IA secretariat could have been better integrated. Each relationship was seen as having separate data requirements and supervision activities. For example, the annual project monitoring undertaken by SEdC for its reporting to the Bank was not at all integrated with the TAP's annual visits and policy meetings. Prior to the final evaluation visit, Bank staff supervision missions overlapped with the IAP/CRC's annual meeting on only two occasions and this was only for debriefing, not formal participation in the Joint Policy Meetings. Given their limited contact with SEdC or the Bank, the IAP were not always up to date with policies in education and related sectors that affected project implementation. What has been learned through the final evaluation is that although key issues were discovered through the implementation management and supervision structures, problems were not always analyzed or resolved with all parties working together. L. Prolect Documentation and Data 1.33 Adequacy of Staff Apgraisal Report and Major Working PaDers. The SAR proved to be a useful document for specifying objectives, planning and guiding project inputs. In hindsight, however, there were two major shortcomings: (a) the arrangements for implementation of technical assistance were not explicit in the SAR and thus may not have benefitted from full review within the Bank; and (b) the evaluation and planning component was not clearly defined and the indicators prepared for project monitoring proved difficult to use. For reasons discussed in para. 27, the supervision reports were sometimes scanty in the information provided and the issues reviewed. 1.34 Data for Evaluation. In 1989, a questionnaire developed by SEdC in consultation with the IAP/CRC was circulated to the 17 project polytechnics and 28 provincial television universities and was completed by the institutions in both English and Chinese. The response rate for both groups of institutions was more that 80%. In an effort to obtain qualitative information, SEdC also requested self-evaluation reports from each institution. The questionnaire was interpreted differently by different institutions, however, particularly with respect to categories of student enrollment. Thus it is difficult to aggregate figures or draw comparisons among institutions. Project progress reports, prepared annually throughout implementation, provide additional data for evaluation. M. Lessons Learned 1.35 The principal lessons learned or again confirmed, with implications to other projects, are summarized below. (a) Project design and preparation should be based on understanding of the broad policy context of the operation and, to the extent possible, should incorporate existing local institutions, resources and expertise.  - 13 - (b) In short-term technical assistance in China, it is likely that specialists from other countries who are not Chinese speakers and have little experience in China will require considerable briefing, preparation and guidance in adapting their knowledge and expertise to the cultural context of a Chinese institution. It is therefore essential that the design of large-scale technical assistance programs provide for involvement of people and institutions in China who are able to guide this process. (c) Assessment of staff development needs and potential training solutions must take into account the current skill level and experience of the individuals being assisted. (d) To the extent possible, there should be continuity in Bank project supervision and the likelihood of continuity should be a consideration in the assignment of staff to supervise a given project. When continuity is not possible, there should be careful attention to ensure that new staff are able to spend sufficient time orienting themselves to a project and undertaking substantive supervision. (e) Systems for monitoring and evaluation of investments in educational institutions, especially new ones, need to be continually assessed and refined. If indicators are found to be unsuitable or not useful, they should be revised. (f) To maximize returns on investment in long-term external project advisors, it is essential that there be close and continuous coordination of the Government's implementing agencies, the external advisors and Bank staff responsible for supervision.  - 14 - PART II. PROJECT REVIEW FROM BORROWER'S PERSPECTIVE A. _deguacy and Accuracy of Factual Information in Part III 2.1 The Borrower recognizes that the tables of factual information contained in Part III have formed a sufficient illustration of the key factors relating to the evolution and implementation of the Project. B. Co_ments on the Analysis in Part I 2.2 General Assessment. The Borrower agrees with the opinion of the International Advisory Panel (IAP) and the Chinese Review Commission (CRC) presented in the executive summary of their Evaluation report as attached in Annex 1 of this report. Despite the shortcomings existing in its preparation and implementation, the Project on the whole has had a significant and beneficial impact. Furthermore, it is important to note the following specific characteristics and conditions of the Project: (a) Both the polytechnic and Television university (TVU) systems are new and unique in China, and this is the first time for all the project institutions to participate in a project financed by the World Bank. They were extremely lacking in practical experience and had to learn while working; (b) The two systems and the Project had close relation to the economic reform and open policy in China. They should adapt gradually to the changing needs for skilled manpower to achieve the reform, and meanwhile they were affected by the related policy adjustments as well as the reform of economic development. 2.3 Project Pregaration and Design. The TVU system was established or restored in almost all provinces of China in 1979, the same year when the economic reform started throughout the country. A year later, China resumed its membership in the World Bank, and the concept of proposing an IDA credit project to modernize and expand the system emerged soon afterwards. In 1981, intention of creating the polytechnic university system in China and applying for an IDA credit for its development was also evolved, despite the fact that such an institution was first established in 1982. Thus, conceptualization for the Project was practically initiated in late 1980. Combining the two very different systems into a single project was only for the purpose of enlarging the implementation. However, the two components were essentially treated as separate projects, and hence no serious difficulties arose in project management. At the time of project preparation, almost all the project institutions had not been well established, some polytechnic universities were even just created. Moreover, no complete set of guidelines had been established and perfected to manage education projects utilizing foreign investment and loans. The feasibility study of the Project had not been conducted adequately in some aspects during the relatively short period of preparation. In addition, enthusiasm of the whole society for reform and development was strongly encouraged by the rapid progress in rural areas and increasing demand for reform and development for the industrial sector. "Overheating of the economy" and "excess demand" for skilled manpower contributed to a strong "push" for the development of education sector. Under such context, some shortcomings of the project design discovered later is  - 15 - somewhat understandable. As a matter of fact, the designers did not subject2.vely incorporate the features of the First University Development Project (UDPI) in the design of this project at least in terms of intention. 2.4 Project Implementation. An overwhelming majority of the participants of the Project hae worked very actively and seriously in project implementation. Although many of them were less-experienced or even unqualified at the beginning, they learned hard on the job and gained impressive achievements at the end. During the life of the Project, however, a series of important decisions concerning education reform and representing policy adjustments were made by the Government. In 1985, a general decision on reform of educational structure was made which highly emphasized the importance of developing technical and vocational education in China, As a measure of carrying out the decision, the Ministry of Education (MOE) was reorganized and promoted to the position of commission, that is the State Education Commission (SEdC). In 1986, the National People's Congress adopted the Compulsory Education Law. In the same year, the State Council decided to use satellite broadcasting educational programmes. Since 1988, SEdC set quotas on full-time enrollment in universities, including polytechnic universities and TVUs, throughout the country as one of the measures of improving the quality of instruction and management. All these decisions and actions, as well as the progress of reforms in related economic and social sectors, had considerably influenced the project implementation and several times necessitated adjustments of project components, executing plan and credit allocation. Another factor affecting the executing plan and causing the adjustments was the intense fluctuation of currency exchange rates. Therefore, some variations in the process of project implementation and the actual results of the project could hardly have been accurately predicted and estimated in advance. The major adjustments had been agreed by the Bank and the Government. 2.5 Overseas Fellowshins. Through annual review and mid-term evaluation of the Project at the end of 1985, the planned program of overseas fellowships for staff development was discovered too ambitious to be fulfilled in the designated implementation period. This is mainly because of overestimation of the quantity of candidates available from the project institutions with qualified language skills for study abroad at appraisal. With the consent of relevant departments of the central government and the Bank, SEdC adjusted the program in February 1986 by (a) decreasing the number of candidates from managerial and technical staff and increasing the number of candidates from faculty staff, with total number reduced from 605 to 509; (b) organizing and sending out a number of short-time study teams in place of individual fellows; and (c) intensifying in-country language training for tVie fellows before going abroad. Although the situation became better after the adjustment, the revised targets were still not met at project completion. Nevertheless, the performance of the returned fellows proved that most of them studied quite well while abroad. 2.6 Central Radio and Television University (CRTVU). The annual review and mid-term evaluation also revealed that, according to the status of project implementation in the first two years, the planned equipment  - 16 - procurement list and corresponding credit allocation to CRTVU both exceeded the reasonable requirements. After repeated investigations and studies, it had been understood commonly among the relevant departments that continuing to implement the original program of procurement would most likely cause considerable overstock and waste, especially under the circumstances that the related civil works necessary for installation of the equipment could not be completed on time and the technical staff necessary for operating and maintaining the equipment was inadequate both in quantity and quality. Therefore, the Bank and the Government reached agreement through exchanging letters between authorized representatives that the equipment list should be cut down and the credit proceeds should be reallocated correopondingly. The adjustment resulted in a surplus of credit proceeds of about US $2.1 million equivalent that were used to: (a) support the Central Institute of Educational Research (CIER), which is committed to conduct research projects in relation to the development of the polytechnic universities, with US $0.6 million equivalent to equip its information center and psychology laboratory; and (b) help equipping the newly established China Education Television (CETV) with US $1.5 million equivalent, serving the satellite broadcasting of education TV programs as well as some programmes produced by CRTVU. Thus, the Project had increased two components in its composition and extended its impact. In addition, most of the polytechnic and Television universities (PTVUs) had also saved certain amount of their allocated credit proceeds in procurement of equipment for the study centers in the Project. These savings were used to equip 34 additional study centers, raising the total number from the original 85 centers to 119. 2.7 E