Mozambique - Education and Manpower Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 15697 U4PLEMENTATION COMPLETION REPORT MOZAMBIQUE EDUCATION AND MANPOWER DEVELOPMENT PROJECT (CREDIT 1907-MOZ) May 13, 1996 Human Resources Operations Division Southern Africa Department Africa 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 Currency Unit = Metical (MT); pi. Meticais US$1 I MT II,1971 MT I = US$ 0.000092 WEIGHTS AND MEASURES I Meter (m) = 3.28 Feet I Square Meter (m sq.) = 10.76 Square Feet GLOSSARY OF ACRONYMS AND ABBREVIATIONS DCA = Development Credit Agreement DECCM = Education and Culture Directorate of the City of Maputo ERP = Economic Rehabilitation Program FUNDAP = Fundacao de Desenvolvimento Administrativo do Estado de Sao Paulo GEPE = Gabinete Executivo de Projectos Educacionais (Directorate of Projects) ICM = Instituto Comercial de Maputo (Commercial Institute of Maputo) IDA = Intemational Development Association INDE = National Institute for Educational Development ISP = Instituto Superior Pedag6gico (Institute for Advanced Pedagogical Training) MOE = Ministry of Education NGO = Non Governmental Organization PROFORMA Gabinete Tecnico de Gestao de Projectos Educacionais SETEP = State Secretariat for Technical/Vocational Training SAR = Staff Appraisal Report SDR = Special Drawing Rights UEM = Universidade Eduardo Mondlane UNESCO = United Nations Educational, Scientific, and Cultural Organization FISCAL YEAR OF BORROWER January I - December 31 SCHOOL YEAR OF BORROWER February - December UNIVERSITY YEAR OF BORROWER August - June At Appraisal, October 1987 2Current (04/30/1996) conversion rate  FOR OFFICIAL USE ONLY IMPLEMENTATION COMPLETION REPORT MOZAMBIQUE EDUCATION AND MANPOWER DEVELOPMENT PROJECT (CREDIT 1907-MOZ) Table of Contents Page No. PREFACE EVALUATION SUMMARY Introduction ...............................................................i Project Objectives ...............................................................i Implementation Experience and Results ................................................................H Future Operations .............................................................. iii Lessons Leamed for Subsequent Operations ............................................................... iv PART I: PROJECT IMPLEMENTATION ASSESSMENT A. Project Objectives ..............................................................I B. Achievement of Project Objectives ............................. .................................2 C. Implementation Record and Major Factors Affecting the Project ................................4 D. Project Sustainability ..............................................................S5 E. Bank Performance ................................................................6 F. Borrower Performance ...............................................................6 G. Assessment of Outcome ...............................................................7 H. Future Operations ..............................................................8 1. Key Lessons Learned ...............................................................8 PART II: STATISTICAL TABLES Table 1: Summary of Assessments .............................................................. 11 Table 2: Related Bank Credits ............................................................... 12 Table 3: Project Timetable .............................................................. 13 Table 4: Credit Disbursements ............................................................... 13 Table 5: Schedule of Activities in Project Implementation ........................................................ 14 Table 6: Key Indicators in Project Operation ............................................................... 15 Table 7: Major Studies Included in Project ............................................................... 16 Table 8A: Project Costs .............................................................. 17 Table 8B: Project Financing .............................................................. 18 Table 9: Economic Costs and Benefits .............................................................. 18 Table 10: Status of Legal Covenants ............................................................... 19 Table 11: Compliance with Operational Manual Statements ........................................................ 20 Table 12: Bank Resources: Staff Inputs ............................................................... 20 Table 13: Bank Resources: Missions .............................................................. 21 APPENDIXES: A. ICR Mission's Aide Memoire B. Borrower Comments to the ICR Map IBRD No. 26934 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.   IMPLEMENTATION COMPLETION REPORT MOZAMBIQUE EDUCATION AND MANPOWER DEVELOPMENT PROJECT (CREDIT 1907-MOZ) Preface This is the Implementation Completion Report (ICR) for the Education and Manpower Development Project in Mozambique, for which Credit 1907-MOZ in the amount of SDR 11.7 million (US$15.9 million equivalent) was approved on May 17, 1988 and made effective on October 12, 1988. The loan was closed on December 31, 1995, the original closing date. In addition, a grace period of four months was granted through April 30, 1996, to complete claims for expenditures on contracts signed and approved prior to the closing date of the credit. The total credit amount was fully disbursed (except for SDR 55,000), and the last disbursement was on January 24, 1996. The ICR was jointly prepared by Ricardo Silveira (Task Manager, AF 1HR) and Carolina Machado (AF1MI), and reviewed by Helena Ribe, Acting Chieft AF1HR, and Jacomina de Regt, Acting Operations Adviser, AF1. The Borrower provided comments that are included as an appendix to the ICR. Preparation of this ICR was begun during the Bank's final supervision/completion mission, from December 4 to 22, 1995. It is also based on materials in the project files. The Borrower contributed to the preparation of the ICR by contributing views reflected in the mission's aide memoire and commenting on the draft ICR   IMPLEMENTATION COMPLETION REPORT MOZAMBIQUE EDUCATION AND MANPOWER DEVELOPMENT PROJECT (CREDIT 1907-MOZ) EVALUATION SUMMARY Introduction 1. The Education and Manpower Development project (Education I) was identified by a Bank mission that visited the country in October 1985, shortly after Mozambique became a member of the International Development Association (IDA), and its preparation was carried out by the Government with UNESCO and IDA assistance. At the time of credit approvaL May 1988, the education sector in Mozambique was facing serious problems. At the primary level, net school enrollment had been on the dechne and so were quality and efficiency. At the secondary level, in spite of an increase in enrollments, the gross enrollment ratio was only six percent, compared with an average of 20 percent for all sub- Saharan countries. University enrollments had not yet recovered to pre-Independence levels and only modest gains had been achieved in technical education. 2. From preparation and throughout most of the project life, there was a violent civil war raging in the countryside which targeted, inter alia, education infrastructure and teachers. Thus the only medium-term certainty of security for IDA investment was in Maputo. The project was intended to respond selectively to immediate needs in the sector. As the first Bank operation in the education sector and the first investment operation in the country (the two preceding operations were quick-disbursing adjustment credits), it "opened a door" to the education sector in Mozambique. This also meant that both the Government and the Bank underwent a significant learning process in terms of each other's procedures and guidelines. Project Objectives 3. The project's objectives, as stated in the Staff Appraisal Report (SAR), were threefold: to raise the quality and efficiency of primary education in Maputo in order to increase literacy and numeracy among primary school-age children; to strengthen the training system in order to fill critical manpower gaps; and to strengthen the capacity for education sector policy analysis with a focus on financial management and planning. The objectives were kept simple, taking into account the war situation and insecurity in the countryside, and the fact that this was the first operation in the sector/country. The project was later amended (formally in 1991 and again in 1995) to better respond to changed Borrower circumstances and priorities. Project resources were gradually reallocated from school expansion and general technical assistance to actions giving emphasis to school efficiency (e.g., learning materials and school implements).  Implementation Experience and Results 4. ProjectAchievements. Project objectives were substantially achieved and some exceeded original targets (e.g., number of beneficiaries of classrooms and learning materials). However, since this was a relatively small investment operation, independent of other sector operations, its impact on overall outcomes is not expected to be substantial or readily measurable -- especially since the project did not build capacity to monitor outcomes. The project has had a positive impact in: * Improving primary education through the construction and rehabilitation of 294 classrooms, the provision of learning materials, and the training of 250 school principals and teachers in building maintenance, supervisory skills, school finances, and health and nutrition. Training was only partially successful as the participants found some of it too theoretical and not adapted to existing circumstances. * Strengthening post-secondary education through academic upgrading of the faculties of engineering and economics at the University Eduardo Mondlane (UEM), including a successful program of overseas fellowships in the faculty of economics, and provision of appropriate teaching equipment at the faculty of engineering, which has enabled UEM to raise revenues by selling engineering testing services to the private sector. Although the Commercial Institute of Maputo (ICM) subcomponent was not implemented beyond the provision of equipment, with little impact on teaching perfornance, technical assistance to upgrade the accounting curriculum has been picked up by the ongoing Second Education Credit (Education II). * Improving sector management, planning and project implementation, through a series of innovative consultancies invohling the use of participatory techniques, and training in financial management, budgeting and accounting for high level officials of the Ministry of Education (MOE) and provincial education directorates. This has raised MOE's capacity for planning and budgeting, and to develop a sector strategy (primarily through the studies financed under the project). 5. Implementation Record and Major Factors Affecting the Project. Project implementation has been very satisfactory, and the MOE has had a high degree of commitment from the start. Nevertheless, substantial accumulated delays in implementation resulted from poor performance by a major construction company as well as from an initial lack of knowledge of Bank procedures on the part of the Borrower, particularly in procurement matters, compounded by general weak implementation capacity in the MOE departments involved and in the Ministry of Finance and Bank of Mozambique. Regular visits from headquarters'procurement staff provided much needed training and expedited the documentation clearance process. Unfortunately, after a number of Country Implementation Reviews and countless specialized disbursement and procurement missions, many of the problems at the Ministry of Finance and Bank of Mozambique have not been resolved, especially in the case of contract approvals.  iii 6. Project Sustainability. The project's achievements will be sustained through the successful implementation of Education II, which continues to finance actions initiated under the first credit. In the long run sustainability will be contingent on regular school maintenance, and education quality maintenance through the provision of recurrent cost financing for learning materials, maintenance, teacher training, supervision, etc. 7. Bank Performance was satisfactory throughout the project. Efforts were made during identification and preparation to keep project design simple, in accordance with the Government's strategy and keeping in mind that this was a pioneering operation in the sector and in the country. In retrospect, the rate of execution of the project estimated in the SAR was often ambitious (e.g. all civil works were completed within the project life but with a two year delay) and the SAR did not include clear performance targets which made difficult to monitor implementation. 8. Project implementation supervision was satisfactory, both in terms of time spent on supervision and the close association that evolved between Bank, GEPE (the International Projects'Implementation Unit for the MOE), and other MOE staff. A collegiate relation, developed during the supervision years, has led to an atmosphere of trust among Bank, GEPE and other MOE staff which has proved to be valuable in the preparation of a proposed follow up sector integrated operation. This was due not only to a continuity in project team composition (task manager, legal and disbursement staff), but also individuals participating in missions were chosen for their technical ability, sensitivity and flexibility towards the Mozambican culture and reality. 9. Borrower Performance. During the project identification and preparation stage, the Borrower's lack of knowledge of Bank guidelines and procedures and weak institutional capacity had a negative effect on the Borrower's performance. This situation changed during implementation with the development of a strong team at GEPE, responsible for procurement, financial management, and monitoring of civil works, whose knowledge of project execution has become invaluable in the implementation of the more complex Education II. Still the project faced continuous obstacles caused by weak institutional capacity in other directorates of the MOE and by often faulty processes in the broad government apparatus, specifically in the area of disbursements at the Bank of Mozambique and contract approval at the Ministry of Finance. 10. Beneficiary Assessments were performed during implementation by way of consultations with parents, teachers, directors, and other beneficiaries, which has helped in the restructuring process of Education II. More beneficiary consultations at the design stage of the project might have helped set up more realistic implementation rates in all aspects of the project. On the other hand, the architectural project preparation team conducted a lot of "stakeholder consultations" with communities, teachers, and school directors, to determine what model of school design would be acceptable. Future Operation 11. As the first Bank operation in the education sector and the first investment operation in the country this project "opened a door" to the sector. Three projects follow,  iv two ongoing and another proposed and in preparation. The Education II Project became effective in July 1991 and took in some of the activities initiated under Education I, with greater focus on the quality of education, including teacher training and non-formal education activities. The Capacity Building Project focuses on secondary and tertiary education, including support for capacity retention at the UEM. The Education Sector Investment Program, an integrated sector operation scheduled for FY99S, to be implemented through a partnership among the Ministry of Education, donors, and NGOs, proposes to focus on an expansion of classrooms in rural areas; teacher training with emphasis on distance education; an increase in girls' participation in primary and secondary education; an increase in learning materials' availability; and capacity building within the Ministry of Education. Lessons Learned for Subsequent Operations 12. The key lessons that emerge from the experience associated with this credit are: => Project simplicity and realistic objectives are important factors in project success, especially in an environment of great uncertainty and recognized lack of capacity. G Government commitment to the project is fundamental in achieving objectives, but success is also highly dependent on the implementation capacity of the staff in the project implementation unit. G Good implementation is dependent not only on the quality of staff at the implementation unit but on the capacity in all departments in the sector ministry. .- Mozambique's centralized system of contract approvals and handling of project accounts require the availability of specialized capacity in the Ministry of Finance and Bank of Mozambique. Such capacity is not available and project delays continue to occur. > To effectively monitor implementation, clear performance targets need to be set at the time of appraisal. => Regular supervision and establishment of proactive practices (such as annual reviews) are key factors in successful project execution. => Continuity and personal characteristics of the project team are important factors in the success of the project. > Beneficiary assessments are valuable tools of project design and implementation. Greater involvement of beneficiaries would have helped in setting more realistic implementation rates for civil works, more relevant technical assistance, more appropriate relative emphasis on learning materials, and support to girls' education.  PART I: Project Implementation Assessment A. Project Objectives 1. The project was designed within the context of Mozambique's Economic Rehabilitation Program (ERP) of 1986. It supported activities that were feasible under the economic and internal security constraints at the time of its inception, when there was a violent civil war raging in the countryside. The project was intended as a first IDA investment operation in the sector/country that would selectively respond to immediate needs while assisting in developing a better knowledge of the education system requirements and a comprehensive sector strategy. As indicated in the Staff Appraisal Report (SAR), the project's objectives were threefold. First, it intended to raise the quality and efficiency of primary education among primary school-age children in the city of Maputo. Second, it would provide training in professional and technical areas in order to fill critical manpower gaps. Third, it was to strengthen the capacity for education sector policy analysis, focusing on financial management and planning. 2. Specifically, the project aimed at: (a) Improving the quality and efficiency of primary education in Maputo through: (i) renovating and enlarging primary school facilities to reduce overcrowding and improve the learning environment for pupils then being taught in make-shift accommodations; (ii) training for school managers and principals; and (iii) providing pupils with essential school supplies. (b) Strengthening the quality and relevance of training for: (i) accountants, office managers and customs officials at the Commercial Institute of Maputo (ICM) by developing commercial curricula and examinations and reducing the current shortage of textbooks and reference materials; and (ii) engineers and economists at the University Eduardo Mondlane (UEM) by providing instructional materials and equipment. At the Faculty of Economics, assistance was provided to reorient and update the curriculum and to support fellowships.  2 (c) Improving education sector financial management and planning by supporting: (i) training in financial planning and management for about 50 high- level officials from the Ministry of Education (MOE) and provincial educational directorates; (ii) use of a manpower planning model to forecast and analyze labor and manpower requirements and to illustrate future education and manpower possibilities; (iii) the preparation of studies to support development of a long-term strategy including financing of the education system, mother-tongue languages, education sector management, and the preparation of future investment projects; (iv) the establishment and operation of an International Projects' Implementation Unit (GEPE) in the MOE, in addition to strengthening the School Construction Office in Maputo. 3. The objectives of the project were in conformity with Mozambique's war situation and insecurity in the countryside. The project was not complex and objectives might even be perceived as excessively modest if one does not take into account that this was the first IDA investment operation in the country and the very first contact between IDA and the education sector. The project was later amended (formally in 1991 and again in 1995) to better respond to changed Borrower circumstances and priorities. Project resources were gradually reallocated from school expansion and general technical assistance to actions giving emphasis to school efficiency (e.g., learning materials and school implements). 4. The objectives of the project were clearly stated and consistent with IDA's country strategy at the time of appraisal, which emphasized assistance to safe areas of the country to miimize risk to infrastructure. B. Achievement of Project Objectives 5. Overall the project has substantially achieved its major objectives. The forecasted number of students to be reached by the infrastructure expansion and renovation program was exceeded and targets for beneficiaries of learning materials (e.g. reading books, notebooks, pencils, etc.) were substantially surpassed. Also met were targets for inputs for the improvement of sector management and planning. The training of engineers and economists at the UEM was generally achieved. The training of accountants at ICM is being carried out under the second education project. 6. The improvement in primary education component was successful in delivering the promised inputs to increase literacy and numeracy among primary school-age children  3 in the city of Maputo. The project built and rehabilitated 294 classrooms; furnished about 350 classrooms; and provided learning materials to the entire primary school population of some 300,000 children. The bulk of the classroom construction, rehabilitation, and renovating activities took place in the peri-urban area of Maputo, which is also the area of highest incidence of low-income households, particularly refugee families, at the time fleeing the war in the rural area. 7. The project also upgraded the quality of school level management through the training of 250 principals and school managers in such matters as building maintenance, supervisory skills, school finances, and health and nutrition. These activities were carried out at the Instituto Superior Pedagogico -- ISP (Institute for Advanced Pedagogical Training). An assessment of the outcome of this training revealed that it was only partially successful in achieving its objectives. Although participants rated the training as satisfactory, they were also critical of the contents as excessively theoretical. The fact that participants were being trained in areas over which they had very little financial control (e.g., there is virtuafly no budget for maintenance or supervision) contributed to the impression that their training was not practical. 8. The strengthening of post-secondary education component focused on the faculties of engineering and economics at UEM and on the Commercial Institute of Maputo. The project supported the introduction of practical training in engineering through the complete re-equipping of the electronics and mechanics laboratories and the purchase of microcomputers. The new equipment has also allowed the UEM to sell engineering testing services to the private sector, thus creating a valuable capacity in short supply in Mozambique and raising revenues for the maintenance and continuing expansion of this key faculty. In addition, the project has raised the average level of academic qualifications at the faculty of economics and the efficiency of the program, by providing three doctoral fellowships; the first graduates have now returned and substantially improved local staff quality. It has also financed specialized expert assistance in program design and curriculum development. The project also supported the re-equipping of the Commercial Institute of Maputo and initiated a consultancy to improve the curriculum of the accounting program. This consultancy was seriously delayed (having begun in 1994) and was not finished by the closing date of the project; arrangements were made for the continuation of the consultancy under the Education II project. 9. The improvement of sector management, planning and project implementation component was the component with the widest reach and likely to have the most sustainable impact on the sector. A series of consultancies with FUNDAP were undertaken to improve sector management and intemnal management processes, utilizing participatory techniques. Interviews with government officials involved in sector management during and after the consultancies revealed an unanimous satisfaction with the outcomes. Many of the recommendations of the consultancies have been adopted, while others await parallel developments in financial decentralization.  4 10. Studies prepared under the aegis of the project had (and still have) a significant impact on the development of sector strategy. In particular, background work on education financing and expenditures provided vital inputs to the preparation of the Education II project. More recently, in 1992, the Education Sector Financing, Expenditure and Management Review, which was produced by a joint team of the Ministry of Education (including substantive contributions by the present Minister of Education and the Secretary General) and Bank staff, provided timely inputs in the restructuring of the Education II project and has been used by other donors in the preparation of their own education projects. Another important study with immediate practical applications was that of the use of mother tongues in primary education which prepared a pilot initiative for the Education II project. 11. Finally, general project implementation capacity was significantly enhanced through the creation inside the MOE, of GEPE, an institution composed of a team of local management professionals with expertise in financial management, procurement and civil works monitoring. And this expertise has greatly expanded over the lifetime of the project. It should also be pointed out that these MOE staff contributed significantly in the identification and preparation of the Education 11 project and have lately provided advice on procurement matters to staff of other ministries. Early in the project life, MOE officials decided not to use DECCM (the parastatal maintenance unit for Maputo) to implement school rehabilitation and maintenance, but rather to use private firms to carry out these activities. C. Implementation Record and Major Factors Affecting the Project 12. The implementation record of the project should be rated as very satisfactory. The Government was, from the start, highly committed to the project objectives. This was evident when civil works under the school construction component required the relocation of a limited number of urban dwellers, and the Government, in the absence of a clear institutional resettlement framework, surveyed the persons affected and implemented a fair relocation program. When implementation issues were raised during project execution, they were discussed and addressed at the highest levels of Government. As a result, a meaningful working relationship has been established between IDA staff and staff at the MOE, particularly GEPE staff. In addition, the Government has shown flexibility in revising their own procurement and administrative procedures in an effort to adjust to Bank guidelines. 13. Despite some delays in most activities at the start of the project, due to the lack of knowledge of Bank procedures on the part of the Borrower and to the generally weak capacity in the MOE departments, supported by substantial Bank technical aasistance from headquarters and the Resident Mission, the project managed to fulfill virtually all pre- established objectives by the closing date. Another positive factor in project execution was the practice of annual project implementation reviews, a trend-setting feature included in this project. It provided a forum where implementation issues could be raised by  5 project staff in close consultation with their Bank counterparts. A couple of incidents caused major delays in civil works and technical assistance; they were: (a) Poor performance of a construction company and the subsequent annulment of two major civil works contracts after lengthy negotiations, which led to substantial delays in the implementation of classroom construction. Government opposition to the annulment of the contracts (based on non-technical reasons) led to lengthening of the process. (b) Indecisiveness at the Vocational and Technical Education Secretariat led to initial delays in the implementation of curriculum development in the ICM component. After a long approval process, GEPE hired an accounting firm to submit a diagnosis study of the situation of ICM as an institution, and to make proposals for a finalized revision of the accounting curriculun. These delays were severe and the time lost was never recovered. These activities are presently being implemented under Education II. 14. Project costs and financing compared favorably with estimates at appraisal, as shown in table 8B, Project Financing, of the Statistical Annex. Total actual IDA financing amounted to US$16.3 million equivalent compared to the original US$15.9 million equivalent. Actual Government participation was of the order of US$1.6 million compared with about US$2.0 million estimated at appraisal. Disbursements were slow in the first years due to procurement problems, but steadily improved from FY93 and were greatly accelerated in the last year of the project. 15. Audits Compliance. In the first years of the project audits were not submitted on a timely basis, as required in the Development Credit Agreement (DCA). In view of the number of overdue audits, the MOE hired an independent firm of auditors to do all outstanding and future audits. The audits for 1993 and 1994 identified possible irregularities in the use of funds under the credit accounts, mainly due to errors in expenditures control at the Bank of Mozambique as well as reconciliation difficulties due to constant delays in the receipt of special account statements. D. Project Sustainability 16. The various institutional development activities under the project have been introduced in the regular operating procedures of the MOE. Since the project itself is filly integrated within the school system and the education sector as a whole, its sustainability depends on the sector's overall prospects. In physical terms, the sustainability of buildings and equipment will largely depend on whether school maintenance is regularly provided. On the other hand, sustainable quality of education is contingent upon the provision of sufficient non-salary recurrent cost financing for items such as textbooks, learning materials, and teacher training and supervision. 17. A follow-on project, Education II, has ensured continuity of financing for several of the priority activities of the first project namely reconstruction of the primary school  6 network, provision of learning materials and institutional development as well as support to key faculties in the UEM. Education II further emphasizes educational quality by focusing also on pre-and in-service teacher training and on textbook development and provision. The more recently made effective Capacity Building project provides support to secondary and university education with considerable consideration being given to capacity retention at the university. E. Bank Performance 18. Bank support in project identification, preparation and supervision was satisfactory. As mentioned above, project objectives were adequate to Mozambique at the time; however, the expected pace of implementation of various sub-components was overly ambitious (e.g. all civil works were expected to be completed by end of year 2). The Bank was specially mindful during identification that project goals were in accordance with Government's overall development strategies; a concerted effort was also made to keep the project simple. 19. As noted in Table 12 in Part II of this report (Statistical Annexes), the Bank's involvement in project implementation has been satisfactory. The average time devoted to project supervision was about 11 staff weeks per year over the life of the project, although this was invariably complemented by preparation and supervision of Education II. The composition of the missions was adequate to the needs of each particular visit, and there was continuity in staff involvement. 20. Despite several changes in task managers in the first two years of implementation, with three persons in turn handling the project, the same task manager, lawyer, and disbursement officer have been responsible during 54 percent, 80 percent, and 40 percent of the project life, respectively. Staff and consultants involved in the project were always carefully chosen not only for their technical ability but also for demonstrated sensitivity and flexibility towards the Mozambican culture and reality. The Bank team was generally considered flexible and pro-active in introducing changes when Government priorities changed or when processes were found to be lacking or inappropriate. F. Borrower Performance 21. Borrower's performance during project identification and preparation was deficient due to lack of knowledge of Bank policies and procedures as well as lack of capacity within the MOE. On the other hand, Borrower implementation of the project was satisfactory. A strong team was formed in the project implementation unit (GEPE), which now excels in all crucial areas of project execution, including procurement, financial management, and monitoring of activities (principally civil works). A substantial amount of experience gathered during this project proved invaluable in the implementation of the follow-on operations, Education II and Capacity Building. Standard consultants' contracts ("contratos tipo") were developed and agreed to in close coordination with local staff to facilitate the clearance process and expedite project implementation. Despite tremendous progress in the MOE, the project faced continuous obstacles imposed by  7 faulty processes in the broad government apparatus. The most severe obstacles were disbursement-related obstacles at the Bank of Mozambique and contract approval impediments at the Ministry of Finance. Unfortunately, after a number of Country Implementation Reviews and countless specialized disbursement and procurement missions, the problems have not been resolved, especially in the case of contract approvals. G. Assessment of Outcome 22. Overall, the project achieved good results against original objectives and sector goals, having in some instances exceeded original objectives and targets, this despite initial slowness in implementation. However, since this was a relatively small investment operation, independent of other sector operations, its impact on overall outcomes is not expected to be substantial or readily measurable -- especially since the project did not build capacity to monitor outcomes. 23. Construction and rehabilitation of primary schools, which accounted for the bulk of the budgeted expenditures, was successfully carried out. Training of school managers and principals was also successfully implemented, though the practical outcome of this component is questionable. Substantial amounts of resources were reallocated to expand the provision of learning materials not only to the schools built by the IDA credit, but to all schools in Maputo and to a large number in other provinces. Support to the Faculties of Economics and Engineering in the form of equipment, fellowships and technical assistance was fully carried out, and the Faculty of Engineering has been successful in selling its services to private firms, as envisaged. 24. The institutional development sub-components of the project, including the strengthening of the planning process of the MOE and the establishment of an efficient implementation team within the MOE were successfully carried out. The technical assistance in curriculum development for accounting in the ICM suffered delays, but it is now being implemented. This is considered an important activity and will continue to be implemented under the auspices of Education II. All studies planned were undertaken, and the information generated in some of the background papers as well as in the final studies was instrumental in the development of Education H and later in its restructuring. 25. Beneficiary Assessments. Consultation with project beneficiaries (parents, students, teachers, directors, other participants in training programs, etc.) during implementation of Education I has contributed greatly to the understanding of benefits and shortcomings of Education II and to its restructuring process. Greater involvement and consultation with the same beneficiaries at the design stage of both projects would have improved outcomes. This would help in setting more realistic implementation rates for civil works, more relevant technical assistance, more appropriate relative emphasis on learning materials, and support to girls' education.  8 H. Future Operations 26. The Education II project became effective in the early years of Education I implementation. This second project expanded some of the activities of Education I, especially school construction which was expanded to cover all safe districts (including all rural areas after the peace accord signed in 1992) with continued targeted support to the same faculties in the UEM. Education II also continues to provide support to institutional development within the MOE. The modest original support for learning materials has been substantially expanded to cover the entire country. Unlike Education I, the follow-on project provides greater focus on the quality of education, including teacher training and non-formal education activities. Additionally, the Capacity Building project provides continuity of support to secondary and university education. 27. As Education I comes to a closure, IDA has begun to prepare an integrated sector operation in basic education. Preparation for this operation builds heavily on the experience of both Education I and II and focuses on: (a) expansion of classrooms in rural areas; (b) teacher training with emphasis on distance education; (c) activities to substantially increase girls' participation in primary and secondary education; (d) improving the availability of learning materials; and (e) improvement of executive capacity within the MOE. This program is to be implemented within a framework of partnership among MOE, donors, and NGOs cooperating along broad lines of activities, rather than narrow project objectives. 1. Key Lessons Learned 28. The key lessons that emerge from the experience associated with this credit are: => Project simplicity and realistic objectives are important factors in project success, especially in an environment of great uncertainty and recognized lack of capacity. => Government commitment to the project is fundamental in achieving objectives, but success is also highly dependent on the implementation capacity of the staff in the project implementation unit. = Good implementation is dependent not only on the quality of staff at the project implementation unit but on the capacity in all departments in the sector ministry. =, Mozambique's centralized system of contract approvals and handling of project accounts require the availability of specialized capacity in the Ministry of Finance and Bank of Mozambique. Such capacity is not available and project delays continue to occur. => To effectively monitor implementation, clear performance targets need to be set at time of appraisal.  9 = Regular supervision and establishment of proactive practices (such as annual reviews) are key factors in successful project execution. = Continuity and personal characteristics of the project team are important factors in the success of the project. * Beneficiary assessments are valuable tools of project design and implementation. Greater involvement of beneficiaries would help in setting more realistic implementation rates for civil works, more relevant technical assistance, more appropriate relative emphasis on learning materials, and support to girls' education.  I  PARII - Statistical Tab1eq   11 TABLE 1: SUMMARY OF ASSESSMENTS A. Achievement of Objectives Substantial Partial Negligible Not Applicable Macroeconomic Policies X Sector Policies X Financial Objectives X Institutional Development X Physical Objectives X Poverty Reduction X Gender Concerns X Other Social Objectives X Environmental Objectives X Public Sector Management X Private Sector Development X Other (specify) B. ProJect Sustainabilit Likely Unlikely Uncertain x Highly C. Bank Performance Satis& y Satisfactory Defic Identification X Preparation Assistance X Appraisal X Supervision X D. Borrower Performance Satis Satisfactory Deficient Preparation X Implementation X Covenant Compliance X Operation X Hi hl Highly E. Assessment of Outcome Satis SatisfacH= Unsatisfactory Unsatisfactory x  12 TABLE 2: RELATED BANK CREDITS Credit Title Purpose Year of Approval S Status Preceding Operations NONE Following Operations Second Education To support improvements in the quality and December 20, 1990 Ongoing efficiency of primary and university education, as well as the management of the education sector. Capacity Building Human To build and maintain capacity in key public November 19, 1992 Ongoing Resources institutions and skill areas by expanding the supply of well-trained senior planners, policy analysts, managers, and technicians, and improving incentives and working conditions for senior civil services. Specific objectives include: (a) increasing the quantity and improving the quality of university graduates and stabilizing the capacity at the Eduardo Mondlane University through systems development and training in administration and financial management; repair and upgrading of existing campus facilities and the constructionl of new ones, including libraries, dormitories and staff housing; provision of textbooks, computers and other library materials; and provision of graduate training for academic staff; special emphasis on faculties of engineering and economics; (b) improving learning achievement in upper secondary education through rehabilitation of six pre- university high schools in the provinces, including the construction of student dormitories and staff housing; quality improvements in these schools, including support for curriculum and examination reform, provision of textbooks and learning materials, and training of school principals and administrative staff; and special measures to increase female enrollments. Use of GEPE as PIU.  13 Table 3: Project Timetable Steps in Project Cycle Planned Actual Identification/Preparation October 1985 Pre-appraisal May 1987 Appraisal September 1987 October 1987 Negotiations December 1987 March 1988 Board Presentation January 1988 May 1988 Signing February 1988 June 1988 Effectiveness May 1988 October 1988 Midterm review July 1993 ' Project Completion December 1994 December 1995 Credit Closing December 1995 December 1995 Table 4: Credit Disbursements: Cumulative Estimated and Actual (US$ Million) FY89 FY90 FY91 | FY92 FY93 [ FY94 FY95 FY96 Appraisal 1.6 3.2 6.2 9.7 13.2 15.9 1.9 15.9 Estimate Actual 1.1 1.7 5.3 8.5 10.5 13.5 14.8 16.3 Actu as% of 70 53 85 87 79 84 93 103 Estimate Date of Final 24 Jan | Disbursement: 1996 An assessment was carried at project's mid-life using beneficiary consultations, including students and parents, school instructors and principals, and Ministry of Education staff (at central and provincial levels).  14 Table 5: Schedule of Activities in Project Implementation Appraisal Actual I. Key implementation activities in the Staff Appraisal Report Estimate Completion Date Completion Date Primary Schools Civil Works Jul. 1991 Dec. 1995 Furniture and Equipment Jul. 1991 Dec. 1995 Completion of Government classrooms Dec. 1988 Pedagogical Improvements Technical Assistance Dec. 1990 Dec. 1992 School Supplies Dec. 1992 Dec. 1995 Engineering School Civil Works Dec. 1989 Dec. 1992 Furniture and Eauipment Dec. 1989 Jul. 1994 Materials and Textbooks Dec. 1988 Dec. 1991 Vehicles Dec. 1988 Jun. 1989 School of Economics Books Dec. 1990 Jul. 1991 Technical Assistance Dec. 1990 Dec. 1993 Fellowshi s/Trainine Dec. 1990 Dec. 1995 Commercial Institute Dec. 1989 Dec. 1992 Furniture and Equipment Technical Assistance Dec. 1989 Dec. 19951 Project Administration Vehicles, Furniture. Equipment Dec. 1989 Dec. 1989 Technical Assistance Dec. 1990 Dec. 1990 Education Planning and Financial Management Technical Assistance Dec. 1989 Dec. 1993 Continued under Education II.  15 Table 6: Key Indicators in Project Operation Description of Indicators | Actual' 1. Increasing literacy and numeracy among primary school children. a) Improve physical facilities. Number of new and rehabilitated classrooms 294 (260) b) Train school managers and principals to improve school organization practices: Number of school managers and principals trained 250 (360) c) Provide essential school supplies: Number of schools that received supplies 20002 (300) 2. Strengthen the quality and relevance of training: a) Commercial Institute of Maputo (ICM) Improve curricula and strengthen management No3 Provision of equipment Yes b) School of Engineering: Provision of equipment Yes Increase in revenue producing activities of the Faculty of Engineering Yes c) School of Economics: Improve curcula Yes Training of staff Yes Provision of equipment Yes 3. Improve education sector financial management/planning/project implementation: a) Train budget officers: Number of budget officers trained 30 b) Use of manpower planning model: Training of staff No Seminars organized to analyze results No Policies resulting from use of model Yes4 c) Undertake studies: Number of studies undertaken 3' (3) d) Establish project management unit and strengthen school construction unit Project Management Unit established Yes Strengthen school construction/maintenance unit No6 ' Numbers in p rentheses represent estimates a: .pra.a 2 A substantial reallocation of resources towards learning materials was effected after the end of the civil war to include the rural areas. 3Technical assistance for curricula improvement and management strengthening will be implemented under Education H. 4Model has influenced policies indirectly. 5 Two studies, Financing of the Education System and Education Sector Management were merged into one document. 6 Unit was closed. Rehabilitation and maintenance of classrooms is now being camed out by the private sector.  16 Table 7: Major Studies Included in Project Study Purpose as defined at Status Impact of study l_____ appraisal/redefined l Mother Tongue Ln cooperation with NELIMO, UEM Ongoing program. A pilot initiative. .; continues to Languages language institute, to: compile date progress in a satisfactory Wa2. In on languages spoken by children the past six months, the entering school; identify status of mathematics bock for the fourth alphabets and grammars of spoken grade in the Tsonga and N'hanja languages in the country, and work languages was revised and were being done; gather information on the history and natural sciences results of other countries' bilingual books. All materials for tLe programs; select bilingual model; teacher treaining courses in the and review experience in education same languages, scheduled for in mother-tongue languages to 1996, were prepared and tested. expand adult literacy program. and leaming matefials p7ovided to the students. The transition rate for students m this pilot is about 70 percent compared to about 5t percent for students in the same l ____.__ _ _____ _ _______________________ __________________ grades in the regular system. Financing of the To analyze budgetary requirements Completed - 1992 Study was used as basis for the I Education System for the education sector and restructuring of the Second estimate the gap between (Study became a formal Education credit in 1994 It was requirements and govemment departmental output as a camed out jointly by a allocations to the sector, and make green cover report) Govemment and [DA team. which recommendations on efficiency inciuded the Nim-ster oi F4tication measures and cost recovery and Secretary Getwral of li | ~~~~~~mechanlisms, so as to close the gap E-ducation.l between requirements and feasible budgetary allocations. EclT-ducat'ion Sector To assess existing administrative Completed - 1992 rhis was combined wil' the above | Managemaent | structure and procedures. propose stdy. more efficient distribution of roles .between central, provincial and 5distict levels; identify training needs at all levels of the education system. Manpower Planning To forecast and analyze labor and Completed - 1994 Carrned out by The Mimszry of ! ~~~~~~~manpower requirements and to ;Education xad DAN'1A_ illustrate fitmre education and Resources available for this study manpower possibilities. was reallocated to other purposes  17 Table 8A: Project Costs Item Appraisal Estimate (US$M) Latest Estimate (US$M) Foreign Local Foreign Local ____________ Costs Costs I Total Costs Costs Total 1. Improving Primary Education 5,559.4 2,556.9 8,116.3 6,974.0 4,608.7 11,582.7 2. Strengthening Post Secondary Education 3,239.3 377.2 3,616.5 3,353.5 195.2 3,548.7 Manpower Training Improvements Commercial Institute of Maputo 763.6 83.3 846.9 309.7 34.4 344.1 Faculty of Economics 725.6 57.8 783.4 808.2 60.8 869.0 Faculty of Engineering 1,750.1 236.1 1,986.2 2,235.6 100.0 2,335.6 3. Sector Planning and Management 2,307.7 719.3 3,027.0 2,533.6 298.2 2,831.8 Total Base Costs 11,106.4 3,653.4 14,759.8 12,861.1 5,102.1 17,963.2 Physical Contingencies 1,331.3 406.5 1,737.8 Price Contingencies 1,020.8 334.9 1,355.7 Total Project Costs 13,458.5 4,394.8 17,853.3 12,861.1 5,102.1 17,963.2  18 TABLE 8B: PRoJcr FINANCING Appraisal Estimate Actual/Latest Estimate (US$ Million equivalent) (US$ Million equivalent) Source Foreign Local Total Foreign Local Total Costs Costs Costs Costs IDA 13,458 5 2,396.8 15,855.3 . 16,343.2 Government of Mozambique 0 1,998.0 1,998.0 . 1,619.9 TOTAL 13,458.5 4,394.8 17,853 3 1 17,963 2 Table 9: Economic Costs and Benefits No Economic Rate of Return was calculated for this project at the time of appraisal.  19 Table 10: Status of Legal Covenants Development Credit Agreement dated June 16. 1988 Original Revised Section Cove- Present Fulfill- Fulfill- nant Status ment ment Description of Covenant Comments l_______ Type Date Date 3.01 (b) (i) 11 C Introduce school maintenance as line item in Budget line exists but there are no funds due 1990 budget; allocate sufficient resources to to delays in school construction, maintenance carry out the primary school construction funds not yet required. UEM equipment and 'program in identified locations. building will require maintenance soon. 3.01(b)(ii) 5, 12 C Establish PROFORMA (now GEPE); PROFORMA renamed GEPE C Appoint full-time Director; C Appoint key staff; C Establish coordinating committee; NC School maintenance by DECCM; C Director training by ISP; NC [CM strengthening by SETEP; C University activities by UEM (DSP); C Sector planJmgmt. by DP, MOE. 3.03 5, 12 C Maintain PROFORMA. 3.04(a) 9 C April 30 Annually exchange views with IDA on progress achieved In carrying out the project.. 3.04(a)(1) 9 C Submit reports on progress made in carrying Report submitted semi-annually 3.04(a)(iv) out the project, Its actlon programs, and estimated project expenditures for the next FY. 3.05(a) 13 C 3131189 Undertake studies on: (a) completed; (b) and C ongoing, second 313U90 (a) financing of education; phase under Education Il; (d) undertaken by (b) language of Instruction; (c) DANIDA. education system management; (d) manpower needs (background study) 3.05(a)(b) 13 NC 3131191 Furnish progress reports on studies and submit final report. 3.06 13 C 3131192 Prepare strategy on financing and managing Ongoing work on 10-year development plan - ~~~~~~~~of education system. has this objective. Education ExpendJFiniMgmt. Review study completed in 1992. 3.07 7 C 6/3089 Free dltes for the prlmary school construction program from occupants. 4.01 (b) 1 C June 30 June 30 Have accounts audited annually and furnish report to IDA. 4.010 9 C nla nW Malntain records until completion of the Adequate record system in place. project, enable IDA staff to examine records and ensure that audited accounts include separate opinion on operation on the spea account. Covenant Types: Present Status I =Accounts/Audits 8 = Indigenous people C covenant complied vith 2 =Financial performance/revenue generation from 9 = Monitoring, review, and reporting CD = complied with after delay beneficiaries 10= Project implementation not covered by 1-9 CP complied with partiality 3 = Flow and utlization of project funds 11 = Sectoral or cross-sectoral budgetary or other NC = not complied with 4 = Counterpart funding resource allocation 5 = Management aspects of project or executing agency 12 = Sectoral or cross-sectoral policy/ regulatory/ 6 = Environmental covenants mstitutional action 7 =Involuntary resettlement 13 = Other  20 TABLE11: COMPLIANCEWITH OPERATIONAL MANUALSTATEMENTS There has not been any significant lack of compliance with Bank's Operational Manual statements under this project. Table 12: Bank Resources: Staff Inputs Stage of Project Cycle Actual Weeks US$'000 Preparation to appraisal 93.9 113.3 Appraisal 28.9 47.5 Negotiations through Board approval 8.9 18.6 Supervision 82.9 262.0 Completion 9.0 18.7 TOTAL 223.6 460.1  21 Table 13: Bank Resources: Missions Stage of Month/year Number Days in Specialized Performance rating project cycle of field staff skills Types of persons represented problems Implemen- Develop- tation ment status impact Though appraisal October 1985 1 7 ECN March 1986 5 7 ECN,AGE,EDC September 1986 3 10 ECN,EDC May 1987 4 15 ECN,EDC,TES,ARC August 1987 2 5 ECN,EDC Appraisal through October 1987 4 15 EDC,ECN,ARC,LAW Board approval January 1988 2 5 EDC February 1988 2 7 ARC Supervision August 1988 3 10 ARC,EGR n/a n/a PM November 1988 4 15 PRO,ARC,RES 1 1 PM,FP April 1989 2 5 PRO,ARC 2 2 PR,FP,PM October 1989 2 5 PRO,ARC n/a n/a FP,PM November 1989 2 5 PRO,ARC n/a n/a FP,PR Febrnary 1990 2 5 PRO,ARC n/a n/a FP,PR November 1990 3 5 PRO,ECN,PIS 2 2 PR Febrmury 1991 1 5 ECN 2 2 PR May 1991 1 5 ECN 2 2 LC September 1991 1 10 ECN,PRS 2 2 CW,LC February 1992 2 4 ECN,ARC 2 2 CW,LC September 1992 1 4 ECN 1 1 LC March 1993 2 5 ECN,ARC 1 1 none October 1993 2 5 ECN,ARC 1 1 none May 1994 1 4 ECN I I none May 1995 3 4 ECNPRSEDP I I none Completion December 1995 3 7 ECN,OPA,ARC 1 2 none Key: AGE: Agiaukure Edizucicn Training Specialit OPA: Opealiaas Ana1ys CW: Civil Works Delays ARC: Ardcitect PIS: Project Implanarticm Specist LC: Ccnpliance with Legal Coveaants EGR: Engineer PRO: Prejcts Offlcer FP: Fincial Pafcvmac ECN: Eccmmist PRS: Procureamnt Spciaist PR: Procurancrt Progres EDC: Educator RES: Radio Educatio Specialit PMI Projed Moagancat Pafcamxm EDO: Fdcaion Plamcr TES: Tacical Educatio Specalist LAW: Lavycr ala: Form 590 not In AMHcs NOes   APPENDIX A Page 1 of 8 AIDE MEMOIRE EDUCATION I IMPLEMENTATION COMPLETION REPORT EDUCATION II PROJECT IMPLEMENTATION REVIEW EDUCATION PROGRAM PREPARATION DECEMBER 11-21, 1995 1. In accordance with the Statement of Mission Objectives dated December 7, 1995, a mission consisting of Ricardo Silveira (mission leader), John Walls (architect, consultant), and Carolina Machado (operations analyst) visited Mozambique between December 11-21, 1995, to join the staff of the Ministry of Education (MOE) in the preparation of an Implementation Completion Report (ICR) for the Education and Manpower Development Project (Education I) and to review the implementation of the Second Education Project (Education II). The mission also worked with staff of the MOE and donors on the design of the Education Program. The mission was joined by Inacio Manecas of the Resident Mission (program officer for social sectors). 2. The mission wishes to thank the officials of the MOE for the assistance and courtesies extended to it. This aide memoire summarizes the mission's findings and the principal understandings reached between the Bank and the MOE. As usual, this aide memoire is subject to confirmation by Bank management. EDUCATION I General Project Status 3. The project will close on December 31, 1995, as originally scheduled. Except for a balance of SDR 55 thousand, the entire credit has been spent and will be fully disbursed by April 30, 1996, the end of the grace period. The remaining balance of SDR 55 thousand does not represent funds available to the project but are merely the reflection of purchases of equipment which, erroneously, have not been charged to the project's special account by the Bank of Mozambique. The government will have until the end of the grace period to resolve this issue. By the end of the grace period, the credit is expected to show overdraws of about SDR 421 thousand and SDR 170 thousand in the equipment (which also includes learning materials) and furniture categories, respectively. The civil works, technical assistance, training, and operating costs categories will be underun by about SDR 129 thousand, SDR 258 thousand, SDR 123 thousand and SDR 127 thousand, respectively. There is a balance of about SDR 9 thousand remaining in the PPF. The undercommitmernt in the civil works category and overcommitments in equipment reflect government changes in priority from construction of classrooms in Maputo city and toward the improvement of quality of education through wider distribution of learning materials. The unspent balance in the technical assistance category is accounted for by a major consultancy at the Commercial Institute of Maputo (ICM),was initiated under Education I and will be completed under Education II. Similarly, training of school managers will be completed under Education II. At the time of the writing of this aide memoire, the project is in full compliance with all legal covenants, including auditing and reporting covenants.  APPENDIX A Page 2 of 8 Implementation Completion Report 4. The mission prepared an ICR for the project, in close cooperation with the Borrower. Discussions with staff of the MOE yielded candid reactions about the project which have been incorporated into the draft ICR. A copy of the preliminary draft document was prepared and left with MOE staff for comments. 5. Overall, the project achieved excellent results against original objectives and sector goals. And, in some instances, exceeded original objectives and targets. However, since this was a relatively small investment operation, independent of other sector operations, its impact on overall outcomes is not expected to be substantial or readily measurable--specially since the project did not build capacity to monitor outcomes. Construction and rehabilitation of primary schools, which accounted for the bulk of the budgeted expenditures, was successfully implemented. Training of school managers and principals (in financial management, maintenance, student health, etc.) was also successfully carried out, though the practical outcome of this component is questionable (since financial decentralization to schools is not yet a reality). And substantial amounts of resources were reallocated to expand the provision of learning materials not only to the schools financed by the IDA credit, but to all schools in Maputo and to a large number in other provinces. Support to the Faculties of Economics and Engineering in the form of equipment, fellowships and technical assistance was fully implemented and the Faculty of Engineering has been successful in selling its services to private firms, as envisaged. Also successfully carried out was the institutional development sub-components of the project, including the strengthening of the planning process of the MOE and the establishment of an efficient implementation team within the MOE. The technical assistance in curricula development for accounting in the ICM suffered delays but since it is considered an important activity, it was initiated under Education I and will be completed under Education II. All studies planned were undertaken. And the information generated in some of the background papers as well as in the final studies were instrumental in the development of Education II and later in its restructuring. Actions to be Taken 6. The government has agreed to: (a) resolve with the Bank of Mozambique the issue of the SDR 55 thousand which were spent but undisbursed (by April 30, 1996); and (b) review the Implementation Completion Report prepared by the mission and provide comments (by December 31, 1995). The mission will issue a telex extending the date for claiming disbursements to April 30, 1996 (by December 31, 1995). EDUCATION II General Project Status 7. The mission concluded that overall project performance has been highly satisfactory in the period between the last mission, earlier this year (May 1995), and this mission. Progress was specially remarkable in civil works and distribution of learning materials. At present, disbursements stand at about $15 million, with applications for an additional $3 million on its way to Washington. By end-January. 1996, a total of some $ 21 million is estimated to be disbursed. This would be only  APPENDIX A Page 3 of 8 10 percent less than the amount forecasted for end-March, 1996 and would signal a major turn around in the disbursement profile. Also, by end-January, 1996, according to the present contract award schedule, about $ 41 million or over 75 percent of the credit will be committed. Implementation progress was balanced between quality enhancing activities and infrastructure development, though the latter accounted for the bulk of disbursements. In the future, UNDP, our donor partner in Education 11, proposes to become increasingly more involved in quality enhancing activities. Many of these activities, such as those involved in teacher training, require closer coordination and day to day decision making on the part of the donor than we are able to provide from the Resident Mission, so we intend to relinquish some of them to concentrate more on those activities in which we seem to have a comparative advantage, such as infrastructure expansion, learning materials and girls' education. For the moment, the arrangement focuses on the implementation side (i.e., UNDP is supervising the implementation of the entire teacher training component of Education I) but we might formally amend the DCA in order to free resources for other uses. As we move toward an integrated sector program approach, these implementation partnerships will involve most donors to education and allow a more efficient use of supervisionlmonitoring resources. Primary Education Quality Improvement Teacher Training 8. The fourth in-service training course for teacher trainers in the areas of Portuguese language, Mathematics, natural sciences, geography, history, health education, environmental education, population, psychology and pedagogy (as well as micro-ensino methodologies) took place in August/Sepember/October, 1995. A total of 198 teachers have been trained in the four courses. Also in the in-service training category of this component, 20 managers of school dormitories and 20 administrative assistants were trained in the areas of planning and management, health and nutrition. A manual for school supervisors targeting directors of primary education schools and district directors as well as educators has been prepared and will be distributed by end-January, 1996. In the distance education sub-component, teaching materials were finalized and the logistics for their distribution already developed. Textbooks and Learning Materials Program 9. The mission was informed that the approximately $ 3 million in textbooks procured through ICB have been mostly printed and ready for shipment from India. Unfortunately, the MOE has not provided GEPE with the list of schools to which the packages of textbooks are co be delivered, to facilitate distribution from the port of arrival. This will surely cause delays once the books arrive. The Bank has not yet received an estimate for the cost of distribution from the port of entry to the provincial capitals and the schools. The distribution was originally intended to be handled by local firms procured through NCB. GEPE will also find out how much it would cost if the distribution were to be handled by DINAME. Another alternative would be for the books to be delivered to the schools utilizing the Caixa Escolar system. The mission requested price estimates for the various alternatives before making a final decision. GEPE would send the information to Washington by early-January, 1996, in time for an NCB. The mission also met with Ms. Anna Grahan of SIDA-Maputo to discuss our partnership in the preparation of the integrated primary education program and took the opportunity to brief her on the ICB of textbooks. The mnission demonstrated how the Caixa Escolar  APPENDIX A Page 4 of 8 system can be compatible with ICB purchases of printing services. Since the winning bid for the textbooks ICB was substantially below the budgeted amount, the mission inquired as to the need for more books in the foreseeable future and was informed by the MOE that, except for teachers' manuals, the entire need for textbooks for grades 2 through 7 was fulfilled for the next two years with this purchase. The next mission will re-evaluate the needs of the textbook program and suggest reallocation of unused resources, if any. Initiatives for Effective Learning 10. Local Languages Instruction. This pilot initiative continues to progress in a satisfactory way. In the past six months, the mathematics book for the fourth grade in the Tsonga and Nhanja languages was revised and so were the history and natural sciences books. All materials for the teacher training course in the same languages, scheduled for early-1996, were prepared and tested and learning materials provided to the students. The credit also financed a study trip to program coordinators and teachers to Malawi and South Africa for exchange of experiences in the use of local languages in primary education. The transition rate for students in this pilot is about 70% compared to about 50% for students in the same grades in the regular system. ii. Bookflooding. In early-December, some 45 thousand Menino Castanho books were distributed to fourth graders and up. The mission was disappointed to find out that INDE failed to test the students prior to the last distribution of books. The mission recommended that GEPE contract the services of the Mozambican NGO such as AMME to oversee the testing of students in the future. The mission was informed that some 40 thousand Bichinho do Caju books are being produced by Melhoramentos in Brazil to be delivered during the next school year. The mission requested the list of schools that will receive books and details of the plan to test students prior to distribution. The stories collected in the provinces of Gaza, Sofala, Manica and Nampula have been processed and four stories were selected for publishing (Tales of Mozambican Animals). In the month of January, three staff of the MOE's publishing company, Editora Escolar, will travel to Brazil to be trained by the Ziraldo Team and to work on the editing and design of the bilingual books. Meanwhile, three more books are being selected on the theme Mozambican Women (Mulheres Mocambicanas). Since the Primary Education Directorate, DNEP, does not have vehicles to effect the distribution of books, the mission suggested that GEPE vehicles be used for that purpose. The mission has no objection, in principle, that a multi- purpose vehicle be acquired for the DNEP with IDA funds for assistance with distribution of learning materials, supervision of schools, etc., subject to justification of uses for the period of the project. 12. Student Achievement Evaluation. No further activities are planned under this initiative. The mission requested that a brief evaluation report be prepared and sent to the Bank for our files, by early-February, 1996. The remaining US$ 50 thousand will be reallocated to other purposes. 13. Health and Nutrition. The execution of this initiative has been turned over to AMME. The mission was informed that AMME is presently visiting schools selected for the pilot for a preliminary evaluation. The mission reconmmended that performance testing and de-worming procedure be delayed until the beginning of the next school year for a better follow up. 14. Pupils Distance Education. UNESCO has prepared the terms of reference for a consultancy to look into the viability of a distance education for pupils in Mozambique, to complement the formal  APPENDIX A Page 5 of 8 system in low density rural areas. The mission has asked the MOE to follow up with UNESCO in the selection of an appropriate consultant. 15. Girls' Education. The mission worked with staff of the MOE in the preparation of a document to be used as the basis for a strategy on girls' education. Annex-A summarizes the main points raised in the various discussions with staff of the MOE and donors. The mission also recommended that additional funds be reallocated to this initiative which would support the activities of a program for girls' education that would cut across all sub-sectors of education. This is a timely development, since the strategy for the sector is still malleable and indicates a strong desire to improve the participation of girls in education. This initiative will test ways to best influence an outcome with substantially greater access to girls and lower dropout rates. 16. In the past six months approximately US$ 3.5 million have been spent in this component. The low level of expenditures in some of the quality enhancing sub-components, despite generally satisfactory progress, is caused by the practice adopted by GEPE to use the IDA credit and UNDP grant funds flexibly. GEPE selects the funding source judged most appropriate for the activity being implemented based largely on speed of approval at the Ministry of Finance (MOF). The mission was informed that it takes months for some consultancy contracts to be approved by the MOF and often the MOF second-guesses the technical decisions of the MOE and makes absurd requests for further clarification. This is done independent of the value of the contract (recently, we have experienced recently a contract of $3,500 that took over three months to clear). School Rehabilitation & Expansion and Rural Reconstruction Program 17. A fast pace of program implementation, which was established in the last mission, has been maintained and in fact increased (see Annex-B). There were 179 classrooms concluded in the last six months and there are presently some 402 classrooms being constructed. The quality of construction of these classrooms has generally been evaluated as good, except for classrooms being constructed in Nampula and Zambezia by China Jiangsu Intl. The issue of poor quality of construction was raised by GEPE supervision engineers and confirmed by an independent engineer contracted by the mission (see Annex-D). Contracts for an additional 630 classrooms have recently been awarded. On the down side, the Ministry of Finance has refused to accept the pilot contracts with NGOs. This does not appear to be simply a matter of disagreement over the terms of the contract, but of a much deeper reaction against NGOs participating in infrastructure development with IDA credit. This is an issue broader than Education II contracts and ought to be raised in otherfora. The mission informed the MOE that the $ 3 million specifically allocated for rural classrooms utilizing NGO partners through direct contracting may not be used for contracts with corstruction companies. In the last 6 months, approximately $ 2 million have been spent in this component and commitments amount to over $ 27 million. University Quality Improvement 18. After delays in the mobilization phase, the construction of the Faculty of Sciences building of the UEM is now finally starting, but at an unsatisfactory pace. The main reason for the slow pace of construction seems to be the lack of use of heavy equipment by the builder as originally envisaged.  APPENDIX A Page 6 of 8 GEPE has already warned the builder of the consequences of delays and the builder has issued assurances that the required equipment will be introduced by early-January, 1996. The mission requested GEPE to monitor closely the situation and inform the Bank by end-January, 1996, if the situation does not show signs of improvement. Some of the equipment for the building have already been purchased and more tenders will be prepared as the construction progresses. In the last six months, only $ 1.5 million have been spent in this component. Planning and Management Strengthening 19. The last consultancy to assist the MOE in budgeting and planning procedures has been completed. In the last six months, only $ 130 thousand have been spent in this component. Training of Demobilized Soldiers 20. A $ 2 million contract with INEFP (National Institute of Employment and Professional Training) was signed on 30 November, 1995. No funds have been disbursed yet. The application for payment of the first portion of the contract is being processed and should be sent to the Bank by end- December. Actions to be Taken 21. The mission will follow up on the proposal by UNDP to administer the portion of the credit presently allocated to quality-enhancing activities and TA under other parts of the credit (by late- February). 22. GEPE will find out how much it would cost if the distribution of textbooks were to be handled: (a) utilizing DINAME; (b) utilizing the Caixa Escolar system; and (c) utilizing private firms (by late- January). Estimates will discriminate port of origin. 23. GEPE will contract the services of an NGO to oversee the testing of students in the bookflooding initiative (by late-January). The Bank would have no objection, in principle, to a contract with A"ME, a Mozambican NGO. 24. GEPE will prepare a brief evaluation of the Student Achievement Evaluation Initiative (by mid- February). 25. GEPE will follow up with UNESCO in the selection of an appropriate consultant for a consultancy to look into the viability of a distance education for pupils in Mozambique (by late- January). 26. The mission will summarize the various suggestions made by DNEP staff and donors on the topic of girls' education (by early-January). 27. The mission will raise with the Bank management the issue of delays in classroom construction caused by the apparent objection by the Ministry of Finance to clear contracts with NGOs (by mid- January).  APPENDIX A Page 7 of 8 28. GEPE will closely monitor progress in the construction of the Faculty of Science building (UEM) and will inform the Bank (by late-January). EDUCATION PROGRAM PREPARATION 29. Since last May, the MOE has moved forward and translated the preliminary draft matrix of sector policy, developed jointly with the last Bank mission, into a strategic document which was presented to the Council of Ministers. The MOE still maintains output targets for the system which are judged by the mission to be on the high side, given input requirements for classroom construction and teacher training. Since the last mission, we are still waiting for more concrete numbers on the recurrent expenditures implications of the proposed strategy. And there are still indefinitions in the area of technical training and higher education. During a meeting with Minister Nhavoto, the mission proposed to assist the MOE in: (a) developing an integrated program for primary education which we would propose to Bank management for consideration for an early appraisal (presently it is scheduled for 1988) in view of the good performance of Education I and II projects; (b) developing an integrated program for secondary education in which the IDA financial contribution would come from the on-going Capacity Building project, restructured to suit revised priorities and availability of alternative donor funding ; and (c) continuing the dialogue on technical education and on tertiary education initiated under the June 1995 Higher Education Study. 30. The education sector programs would reach out to the school-aged populations in underserviced provinces and the rural area. And the programs would target girls at every level of the education system, through substantial and persistent strategies. The mission proposed the creation of a position of Advisor on Girls' Education to coordinate into a program the various activities developed to further the numbers of girls in the system. This Girls' Education Program would cut across the matrix of formal programs of the MOE to benefit from complementarities of activities and to better monitor results. 31. The MOE indicated its agreement to the Bank proposal to implement and monitor the programs along broad lines of activities, with support from lead donors in each of these lines. The next step would involve defining with donors a mutually satisfactory division of support so that the data gathering exercise can commence. This work should parallel the MOE effort in costing alternative strategy scenarios. Actions to be Taken 32. he mission will raise with Bank management the issue of moving forward the appraisal date for the (primary) education sector program (by late-January). 33. The mission will raise with Bank management the issue of restructuring the Capacity Building project to facilitate implementation and to enable it to be used as an instrument for a secondary education sector program (by late-January).  APPENDIX A Page 8 of 8 34. The MOE will consider the creation of a position of Advisor on Girls' Education to coordinate into a program the various activities presently being undertaken to increase the number of girls in the education system. (by late-February) 35. The mission will discuss the proposed education sector program with donors, seeking an agreement on lead donors for each broad line of activity in the sector, and next steps (by early-March). AAMOZEflDEC95EDAID  APPENDIX B Page 1 of 6 REBLICA DE M0OAMDIQUB M1NISTtR10 DA EDUCACAO G EPE-GABINETE TPCNICO DE GESTAO DE PROJECTOS EDUCACIONAIS 33/DIR/96 09.05.96 FACSMILE TO ; THE WORLD BANK - WASHINGTON ATT : RICARDO SILVEIRA - REF. AF1RH FAX : (202) 4738239 FROM: GEPE F. i : 430204 S1'BJECT: Report "Borrower comments to the ICR" N;. of Pgges: S (Including this One) Please find attached four pages concerning the "Borrower comments to the ICR", corrected according to you fax dated 8.05.96. Best regards, R u 26 4DA (GEN~L.IEEoR) Ru Joe.qwms lapa xn. 22.3. anda -Ci .. Pts, . O261.: 32x424246-614 - Faii: 4394/43614 * T: 6-536/6-792 MO - MAPUTO  APPENDIX B Page 2 of 6 REPOBLICA DE M oWAMBIQUE MINISTtRIO DA EDUCACiO G E P E -GABINETE TtCNICO DE GESTAO DE PROJECTOS EDUCACIONAIS EDUCATION AND MANPOWER DEVELOPMENT PROJECT BORROWER COMMENTS TO THE ICR INTRODUCTORY COMMENTS We have reviewed the ICR for the Education and Manpower Development Project and generally concur with the conclusions arrived by the Bank team. Our cormrnents will focus on three aspects of the ICR that we consider important to refer: . Project Objectives . The Pr.. c'.ct Implementation and its Achievements . Project ,ustainability . Bank Performance PROJECT OBJECTIVES The project was identified by a Bank mission that visited Maputo after Mozambique became an IDA member. It was intended as a first IDA operation that would selectively respond to immediate needs, while assisting in developing a better knowledge of system requirements and a long-term strategy for the education system. In order to minimize risk, project objectives were targeted predominantly to Maputo. Mozambique's limited experience in managing education projects and little experience in international bidding processes, project monotoliir,g, in keeping accounts or perforrming audits was an other risk . This risk has been adressed through the creation of Proforma (he Project Implementation Unit), now GEPE (Gabine'>. Tecnico de Gestao de Projectos Educacionais), whithin the Ministry of Education (MINED). The ojectives, as stated in the Staff Appraisal Report were - 1. To improve the quality and efficiency of primary education in the city of Maputo. 2. To strengthen the quality and relevanct of the training system. 3. To strengthen the capacity of the education sector financial management and planning. Rua Joaqui n Lapa n. 22-3.- andar - Cx. Postal, 4266 - Tel.: 32424427468-431614 - Fax: 430204/431614 - Telex: 6X53616-792 MO - MAPUTO  APPENDIX B Page 3 of 6 We agree with the ICR assessment of project objectives. Most of the activities were sucessfuly completed. They are listed on item "project implementation and its achievements". However, importants activities such traininig of principals had low impact and the development of accountancy curricula at ICM began too late. On the other hand there were important aspects that had contributed to the sucessful implementation of the project and its impact such as the creation of GEPE. During che project life, GEPE's institucional capacity was reinforced and it has became an efficient unit for intemationaly financed projects' implementation and execution. GEPE staff has the capacity to produce tender documents for goods, services and civil works, and to make evaluations of proposals. GEPE staff also carries out the financial control of credits funds and the monitoring of Government participation in each Project. It is important to underscore that GEPE does not receive foreign technical assistance, except for ocasional short-term consultancies. As GEPE has a very important construction component, our feeling is that we necd to contract a full time expert in civil works with long experience in engineering design of buildings and management of construction works. The legal covenants reflect this emphasis giveni to management aspects of projects (as we can see on taMle 10 of ICR) The other aspect was the undertaking of studies on financing of education; mother tongue languages; education system management and manpower needs (see table 7 on ICR). PROJECT IMPLEMENTATION AND ITS ACHIEVEMENTS The completion of activities highly exceeded appraisal estimates. Various factors have contributed to the delays: inexperience of GOM on rules and procedures of World Bank, training of GEPE staff in this area and performance of BOM, MOF, MOE, etc. Comparing with project indicators described in the Staff Appraisal Report we verify that in some it:nns original targets were exceeded: 1. Improve the quality and efficiency of primary education in the city of Maputo through: a) renovating and enlarging primary school facilities to reduce overcrowding and improve the learning environment for pupils currently being taught in make-shift accommodations.  APPENDIX B Page 4 of 6 294 classrooms were built against the 260 estimated, despite some delays caused by poor performance of a construction company and subsequent annulment of two civil works contracts. b) Training for school managers and principals This activity was coordinated by the "Instituto Superior Pedag6gico" (ISP). This institution has elaborated training materials in the following matters: building maintenance, supervisory skills, school finances, health and nutrition,and pedagogical supervision. ISP also trained 250 principals and school managers against an estimate of 360, in two courses, one in Beira and one in Maputo. The original conception of having each Principal and School Manager attending a seminar each year up to 3 times, was not implemented and some training materials were not distributed. As mentioned in the ICR, participants considered the course excessively theorical. The achievment of this component reflects the general feeling that component coordination was not well placed at ISP. 250 Principals were trained but others activities such as the distribuition of training materials and the continuity of training were not completed. These activities should be coordinated by DNEP (Direccao Nacional do Ensino Primario). This component is now ongoing under Education II. The Edulandia Institute, a mozambican Consulting Firm, was contracted to undertakc this component. The training i aterial elaborated by ISP has been reelaborated and improved, and will be distributec to the participan:s when the training courses start in the provinces. c) Providing pupils with essencial school supplies. 2000 schools received suplies. The number estimated at appraisal was 25 in the city of Maputo. Since this component was implemented in 1995, after the peace agreement, it was decided to include rural areas. 2. Strengthen the quality and relevance of training of the faculties of engineering and economics at UTEM and of the Commercial Institute of Maputo. Equipment supplied to the Faculty of Engineering was very important to introduce practical training through the new equipment and to provide a money-making activity for the faculty. At the faculty of economics, the project has improved the program by financing specialized expert assistance in program design and curriculum development.  APPENDIX B Page 5 of 6 Technical assistence to ICM only began in 1994. This component was very delayed in its implementation. Besides provision of equipment, no activities were carried out to this date. The ICR mentions the various determinants of Project implementation delays, including, indecisiveness at SETEP - Secretaria de Estado para o Ensino T6cnico e Profissional. Technical asssistance for curricula improvement and management strengthening will be implemented under Ecducation II. Activities such as, elaboration of curricula and nev. study plans have already been completed by KPMG, a consulting firm . Next activities are: elaboratior. of instrutional materials and teachers training. These activities must also be undertaker, by KPMG. 3. Improving education sector financial management and planning Part of this component has been executed under the technical assistance of FUNDAP, a Brazilian consultant firm and it is aimed at clarifying and unifying procedures for the administrative and budgetary roles and tasks in all the Directorates of the Ministry. The diagnostic phase of an organization and management study has been concluded. The study looked at the organizational structure and operations of MINED and the Provincial Education Directorates. It specifically looked at objectives and procedures in five areas: peisonnel management; financial management; documentation and information retrieval; computari- tion and management of property. MINED .,as improved its planning capacity significantly in recent years, including the construct'i n of a computer model wich it uses to prepare projections of enrollment and financing costs. A data base was also developed. PROJECT SUSTAINABILITY School maintenance depends on MINED's capacity. Schools managers must be prepared, trained and conscious of management issues. Those activities started in the faculties of engineering and economics have their continuation under Education II. At the faculty of economics, support will continue in the fields of development economics, African economics, development sociology, political economics and methods of economic research and in providing in-service training sessions for the faculty through a series of seminars. Activities are ongoing to enable the faculty of engineering to switch to more practical training through the equipping of basic laboratories. The sustainability of these components will depend on the stability of personnel such as teachers and staff trained to deal with equipment (for example at faculty of engineering equiped with sofisticated machines). Trained personnel with the skills, knowledge and abilities to provide the professional, technical and intellectual leadership are the requirements for sustainable development.  APPENDIX B Page 6 of 6 BANK PERFORMANCE During negotiations, assurances were sought from the Bank that it would assist Mozambique in developing its long-term education sector strategy and support the Government in keeping essencial services going, improving the quality and efficiency of its operations, and meeting manpower requirements (SAR, pag.9). In fact, project implementations reviews on an annual basis were conducted jointly with IDA in order to discuss annual project evaluations carried out by GEPE; monitor progress made in achieving project objectives; exchange information among staff responsible for project implementation and propose solutions to any current problems, and update project timetables and cost estimates. Bank support in project identification, preparation and supervision was good. Maputo, 8th May 1996 (AGIR C DICTOfR) (GENE1