Senegal - Higher Education Project

Document of The World Bank Report No. 15523-SE STAFF APPRAISAL REPORT REPUBLIC OF SENEGAL HIGHER EDUCATION PROJECT May 7, 1996 Population and Human Resources Operations Division Western Africa Department Africa Region  CURRENCY EQUIVALENT Currency Unit = CFA Franc (CFAF)/ US$I = 490 CFAF ABBREVIATIONS AND ACRONYMS A GETIP Agence d'execution des travaux d 'intret public contre le souis emploi CAS Country Assistance Strategy CNES National Policy Dialogue on Higher Education (Concertation nationale sur lenseignement superieur) COUD Student services center of Dakar (Centre des oeuvres universitaires de Dakar) CRE4 Center for Research in Applied Economics (Centre de recherche en economie appliquee) CROUS Student services center of Saint-Louis (Centre regional des oeuvres universitaires de Saint-Louis) ENSUT National School of Technology (Ecole Nationale Superieure UJniversitaire de Technologie) ENSETP National School of Vocational and Technical Training (Ecole Nationale Superieure dEEnseignement Technique et Professionnel) EPT Polytechnical School of Thies (Ecole polylechnique de Thies) ESP Polytechnical Institute (Ecole superieur polylechnique) GDP Gross Domestic Product IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IDA International Development Association IT Implementation Team LCB Local Competitive Bidding MIS Management Information System MNE Ministry of National Education PCM Private Contract Management Firm PDRH 2 Human Resources Development Program 2 (Programme de developpement des ressources humaines 2) PPF Project Preparation Facility SAL Structural Adjustment Loan SOE Statement of Expenditures SSA Sub Saharan Africa TOR Terms of Reference UCAD Cheikh Anta Diop University of Dakar USL Saint-Louis University FISCAL YEAR UNIVERSITY YEAR January 1-December 3 1 October-June  REPUBLIC OF SENEGAL HIGHER EDUCATION PROJECT CONTENTS CREDIT AND PROJECT SUMMARY .......................................................i 1. INTRODUCTION .......................................................1 2. SECTORAL CONTEXT .......................................................2 A. General Background .......................................................2 B. Economic Development and Training Needs .......................................................2 C. Sector Capacity .......................................................3 D. Toward a National Reformn Agenda ......................................................1 1 3. THE PROJECT ....................................................... 15 A. Project Origin ...................................................... 15 B. Scope and Objectives ...................................................... 16 C. Project Description ...................................................... 16 4. PROJECT COSTS AND FINANCING ...................................................... 23 A. Project Costs ...................................................... 23 B. Project Financing ...................................................... 25 5. PROJECT IMPLEMENTATION ...................................................... 25 A. Status of Project Preparation and Readiness ...................................................... 25 B. Project Coordination and Management ...................................................... 25 C. Implementation Schedule ...................................................... 27 D. Procurement ...................................................... 27 E. Disbursements ...................................................... 30 F. Accounting, Auditing, and Reporting ...................................................... 31 G. Monitoring and Supervision ...................................................... 32 H. Environmental Impact ...................................................... 32 6. BENEFITS AND RISKS ...................................................... 34 7. AGREEMENTS TO BE REACHED AND RECOMMENDATION ............................................... 35 This report is based on the appraisal missions that visited Senegal in December 1995 and February 1996 comprising Messrs. R. Prouty, (AF5PH), S. Theunynck, A. Tabah, J. Fine (Consultants), C. Diallo (AF5GN) and A. Diawara (AF5SE) and on pre-appraisal missions in 1995 including E. Baranshamaje (AFTHR), H. Abadzi (OEDD I), and G. Hadjicostas, Consultant. Messrs. Birger Fredriksen and Ok Pannenborg are the Acting Department Director and Managing Division Chief, respectively for the operation; Mr. Thomas Eisemon (HDD) is the Lead Advisor, Mimes/Messrs Helen Abadzi (OEDD1), Jamil Salmi (LA2HR), Brigitte Duces (EA3PH) and William Saint (AF4PH) are the peer reviewers. R. Prouty (AF5PH) is the task team leader. Technical support was provided by Ms. Ghislaine Baghdadi, Language Staff Assistant (AF5PH).  ANNEXES Annex I Basic Data Annex 2A Terms of Reference--Implementation Team Annex 2B Training and Skills Transfer Annex 3 Project Cost and Financing Tables Annex 4A Input and Outcome Indicators Annex 4B Mid-Term Review Annex SA Procurement Plan Annex SB Implementation Schedule Annex 6 Higher Education Policy Statement/Performance Indicators Annex 7 Research Fund Arrangements Annex 8A Operating Budgets Annex 8B UCAD Unit Costs by Faculty Annex 9 Higher Education Enrollment by Institution Annex 10 Implementation Manual: Table of Contents Annex 1A Status of Bank Loans and IDA Credits Annex 1lB Disbursement Profiles Annex 12 Selected Documents Available in the Project File  REPUBLIC OF SENEGAL HIGHER EDUCATION PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Senegal Beneficiary: Ministry of National Education (MNE) Credit Amount: SDR 18.4 million (US$ 26.5 million equivalent) Terms: Standard IDA terms, with 40 years maturity Project Objectives: The long-term objective of the project is to improve higher education graduation rates and gender equity, with greater cost-effectiveness and more relevance for Senegal's economic development. This will be done within the context of an education sector policy which places a priority on basic education. The project will help the Government refocus the activities of its two universities around their pedagogic mission, while reinforcing management capacity and quality control. Specific objectives are as follows: (a) to reinforce knowledge and library services; (b) to improve teaching; (c) to improve research; (d) to develop a maintenance system; (e) to strengthen sector management and financing; and (f) to complete the reorganization of student services. Project Description: The project is designed to consolidate ongoing reforms of the "social campus"--cafeteria services, scholarships, etc.-and to help shift the focus of reform efforts to the "pedagogical campus"--the teaching and learning process. It includes three main components: (a) the strengthening of library services, (b) the upgrading of teaching and research, and (c) the stregting of management capacity. It will be implemented over a period of six years, with annual reviews. A mid-term review will examine the extent to which sectoral reform initiatves have been implemented. For all project components, the planned activities are premised on support for a process of consensus development and reflection. Benefits: In addition to helping the sector increase the proportion of financing going to qualitative inputs such as library books and science equipment, the project will free up funds for the expansion of primary education (higher education's share of the overall education budget will drop from 27% to 20%). By improving living and study conditions for students, and the professional atmosphere in which teachers work, it will result in increased stability for the education sector as a whole by reducing student unrest and teacher strikes. Many of these sustainable benefits have already become apparent during project preparation. Additional benefits include improved graduation rates (grade repetition is expected to decline from 54% to 35%),  ii greater gender equity, increased productivity of research, more cost- effective provision of services, maintenance of university assets, and increased self-financing. The project will also assist NMNE in promoting private higher education institutions which will increase from 5% to at least 15% of the student population. Improvements to higher education will increase the skills of the labor force and make available a better pool of post-secondarv graduates to facilitate the transition of the Senegalese economy to a higher level of technology and productivity. Closer links with employers will help to meet the changing demands of an increasingly complex and dynamic private sector. Risks: Implementation of "social campus" reforms was vigorously opposed by some groups of students and junior academic staff and further resistance to scholarship cuts and increases in teaching hours can be expected. However, the Government, assured of support for the reform forged through the national consultation dialogue, has held its ground to date. The likelihood of continued success is strengthened by the following: (i) many difficult reform measures have already been put in place and are at a stage where they are virtually irreversible; (ii) there are already tangible positive effects from the reform, such as student satisfaction with the food services under private contract; (iii) visible IDA support of a home-grown reform program has bolstered the credibility and confidence of reformers; and (iv) the consensus-building process which brought about the reform has created a growing constituency for change within the university community. Environmental Impact: No environmental risks are foreseen (see para. 5.23). Economic Rate of Return: (see economic analysis beginning para. 5.24). Poverty Category: Not applicable. Program Objectives Category: Human resource development. Map: IBRD No 27975  iii Summary of IDA Financed Project Cost Estimates' (US$ million equivalent, including taxes and duties) Foreign Local Total % of Total Base Cost 1. Improve Library Services 8.0 5.2 13.3 52% 2. Upgrade Teaching and Research 5.0 2.4 7.4 29% 3. Strengthen Management Capacity 1.6 1.5 3.2 12% 4. Refinance PPF 1.8 - 1.8 7% TOTAL BASE COSTS: 16.5 9.2 25.7 100% Physical Contingencies: 1.0 0.6 1.5 6% Price Contingencies: 1.2 2 5 3.7 14% TOTAL PROJECT COST: 18.7 12.2 30.9 120% Financing Plan (US$ million equivalent, includin taxes and duties) Foreign Local Taxes & Total IDA 18.7 7.8 I ~~~~~~Duties _______ IDA 18.7 7.8 0.0 26.5 Government 0.0 2.0 2.4 4.3 TOTAL | 18.7 9.8 | 2.4 [ 30.9 Estimated IDA Disbursements FY97 FY98 FY99 FY00 FY01 FY02 Annual 3.3 2.3 4.7 6.8 5.9 3.5 | Cumulative 3.3 5.6 10.3 17.1 23.0 26.5 'Slight differences in the amounts may occur due to rounding of figures.  .IL  REPUBLIC OF SENEGAL HIGHER EDUCATION PROJECT 1. INTRODUCTION 1.1 The Government of Senegal has requested IDA financing over six years for a credit to support the development and initial implementation of a reform program for its higher education and research sector. This operation has been designed to provide support for development and implementation of a new policy framework in Senegalese higher education, and for institutional capacity-building. This will be the first IDA credit for higher education, although support for sectoral policy reform has been provided in the context of the PDRH 2. The project will cover the period 1996-2002 and will include support for improvements to the University's library and knowledge retention systems, feasibility studies, management training, strengthening of science teaching and increased cost-effectiveness at the institutions of higher education managed by the Ministere de I Education Nationale. A decision will be made at the time of the mid-term review regarding a reconfiguration and streamlining of the Ministry, with the expected closing of some programs and the realigning of others. 1.2 The project is consistent with the Country Assistance Strategy (CAS) discussed by the Board on February 16, 1995. Higher education reform is given high priority in the Country Assistance Strategy (CAS) for Senegal, which calls for a reduction in the share of the higher education budget devoted to student services and a reform of the scholarship system, with resulting savings to be allocated to primary education. Significant progress in these areas has already been made during the course of project preparation, and in 1995, Senegal became one of the first countries in the region to transfer budgetary savings from higher education directly to primary schooling. Recognizing the links between education and economic growth, IDA has taken the initiative at the pre-university level of ensuring that donors have worked at high levels of collaboration with one another and with Government, ensuring that sectoral investments and donor coordination occur within a supportive policy environmnent. This project will extend the collaborative approach to higher education and will strengthen ongoing Bank support for improving policy articulation and resource allocation. The project will be the sixth IDA-financed operation for educational development in Senegal. It will be implemented simultaneously with the PDRH2. 1.3 The proposed IDA credit of US$26.5 million will finance 86% of the total program cost, including 100% of the foreign exchange cost (US$ 18.7 million.equivalent) and 80% of the local cost (US$7.8 million equivalent). Total program cost is estimated at US$30.9 million equivalent, with a foreign exchange component of USS18.7 million equivalent. Senegal (the Government) will finance 14% of the program cost, including 20 % of local cost (USS2.0 rnillion equivalent), plus taxes and duties (USS2.4 million equivalent).  2 2. SECTORAL CONTEXT A. General Background 2.1 Senegal is a coastal semi-arid country situated in Africa's Sahelian zone. Its GDP of $611 per capita places it among the lower-middle-income economies, with a population of 8.3 million growing at a high but declining rate of about 2.7% a year. This is greater than the rate of growth of Gross Domestic Product (GDP) which was 1.9% over the period from 1985 through 1995. The level of urbanization is 42% and growing, placing it well above the sub-Saharan African average of 28%. A total of 47% of the population is under the age of 15. The country's social indicators are low and stagnant. The adult literacy rate is 38%; primary gross enrollment is at 56%. The average lifespan is 49 years and infant mortality is 68 out of 1000 births. Modem sector activities are concentrated around Dakar and along the coast. Foreign exchange reserves are earned principally from groundnut, phosphate, chemical, and fish exports, and from tourism. Agriculture accounts for about 20% of GDP, and 60% of manpower. Groundnuts are the most important crop, accounting for 75% of farm cash income. The most recent presidential and legislative elections took place in 1993, with the Socialist Party maintaining its control of the presidency and its majority in the National Assembly. Following stabilization reforms in 1993 and the devaluation of the currency by half in 1994, political life was relatively unsettled. Nevertheless, Senegal's privileged geographic location and good communication infrastructure give it the potential to become a.gateway service center in the region and to benefit from its proximity to European markets. B. Economic Development and Training Needs Macroeconomic Environment 2.2 Since the beginning of the eighties, the Senegalese economy has suffered deep structural difficulties reflected in low growth rates, persistent macroeconomic disequilibrium, growing unemployment, and declining human resource indicators. The progressive deterioration of Senegalese terms of trade during the eighties and nineties, coupled with Senegal's lack of competitiveness on the international market as a result of an overvalued currency, high transaction costs and lack of technical capacity, led to a declining market share and decreased export revenues. 2.3 Senegal has recently strengthened its structural adjustment strategy with a view to restoring competitiveness. In January 1994, it devalued the CFAF by 50%, dismantled most monopolies through the abolition of special conventions, amended the labor code, and undertook adjustment in agriculture. In order to maintain economic expansion and to create employment, the government of Senegal now intends to develop a strong private sector. It is understood that strong institutional support will facilitate the ability of the private sector to respond to changing economic conditions. For these measures to generate the expected supply response, however, enterprises must respond to new demands and engage in high value-added activities that generate foreign exchange, create employment and reduce demands on public finances. This is predicated, among other things, on the ability of the education system to provide relevant training and essential skills which are necessary for the structural transformation of the economy. Fundamental changes in the education system are therefore imperative to supporting progressive economnic reform. Micro- Level Response 2.4 Senegal's ability to respond to competitive market conditions will be determined in large part by the ability of its education system to supply trainees that meet market needs. In the past, the primary  3 objective of the higher education system in Senegal, as elsewhere in Sub-Saharan Africa, was to train for employment in the public sector. Times have changed, however; the public sector is shrinking, and the higher education sector must adapt to new realities. 2.5 There is an immediate need for university graduates with training in scientific fields. The application and development (or adaptation) of new technologies will require new engineering skills in research, design and production. Training must be reoriented to fill current gaps and to meet the demand for skills such as: the ability to screen and select new technologies that will be cost-effective once adapted to local labor and material conditions; the ability to establish testing and quality control schemes based on modern instrunentation, and to develop modem integrated production systems that go beyond simple batch processing and which exploit opportunities for joint production and creating economies of scale. Similarly, new management skills in finance, marketing and organizational methods are also required to raise industrial productivity. 2.6 In previous years, an impaired adjustment policy and the absence of an innovative entrepreneurial class and skilled labor force have hindered the nation's ability to maximize economic progress and benefit from changing economic conditions. Senegal's stagnant and rigid education system has proven ineffective in meeting the manpower needs of its developing economv. Funding to education has been insufficient to provide for generalized primary and expanded secondary education, and post-secondary education has proven outdated and unresponsive to current needs. To meet the nation's constantly evolving labor market demands requires a more flexible and efficient system of human resource production than is currently in place. The proposed reform will target the higher education sub-sector, improving national capacity to more closely match labor needs with training, as well as establishing a new emphasis on scientific and technical skills which are essential to economic development and growth. A draft policy statement for higher education including proposals acceptable to IDA to increase teaching hours, reallocate spending away from scholarships, and contain enrollments were submitted to IDA as a condition of negotiations [para. 7.1(a)]. Agreement on the policy statement for higher education, including monitorable performance criteria and a policy reform agenda, was reached during negotiations [para. 7.2(a)]. C. Sector Capacity Structure and Administration 2.7 The education system in Senegal consists of a six-year cycle of primary education, a four-year lower-secondary cycle and a three-year upper cycle of general or technical education. Higher education is provided through two- or four-year programs at the Universities of Dakar and Saint-Louis, at specialized training institutions, and more recently through a few private institutions. The Ministry of National Education (MNE) has supervisory responsibility for all levels of education. Despite the centralized nature and concentration of resources in a single ministry however, the various levels of the education system lack any significant curricular or pedagogical cohesion, a situation which has prevented the system from efficiently supplying relevant skills which meet labor market demands. Resources 2.8 The deepening education crisis in Senegal was long characterized by the inefficient management of insufficient funding for ineffective programs. Yet after holding steady near 20% for much of the eighties, total allocations to the education sector increased dramatically in the early 90's, peaking at almost 33% in 1993. Down slightly in 1994, public expenditure on education was nevertheless equivalent to 3.5% of  4 GDP and represented 30.7 % of the government budget. Much of this recent growth in spending is attributable to higher education. After hovering near 15% for much of the 80's, its share of the overall education budget skyrocketed to a peak of 33.3% in 1991-92 before declining slightly to 28.2% budget in 1994. These levels are almost unmatched in sub-Saharan Africa. Yet the system has remained unable to produce either the quantity or quality of graduates needed in the labor market. Poor instructional quality has led to high repetition and drop-out rates which are evidence of the tremendously low internal efficiency of the entire system. The proportion of the budget spent on wages compared to non-salary recurrent expenditures grew considerably in the decade between 1980 and 1990 (the wage bill having increased by 13% while the supplies and maintenance budget declined by 27%), and the proportion spent on social transfers grew at an even greater rate (averaging 26% in the 90's), exemplifying the inefficient use of scarce financial resources evident throughout the system. Although the higher education sector absorbed the lion's share of budgetary increases, uncontrolled enrollments and poor allocation of funds have done little to improve either the quality or efficacy of the instructional process. 2.9 The proposed reform will redirect funding within the higher education sub-sector, reducing inflated subsidies to social services, and maximizing appropriations for improving educational quality and facilities. Government funding to education has long been the predominant means of support to the system, and current needs system-wide far outweigh available resources. The proposed reform will encourage support for higher education from private sector business and industry by institutionalizing a working dialogue between both groups, establishing important channels through which to communicate specific needs. Throughout the course of the project, emphasis will be placed on developing an institutionalized national capacity to define and implement viable strategies for maximizing benefits from available funds as well as exploring alternatives to public financing of higher education. Past Priorities 2.10 IDA has been involved in the education sector in Senegal since 1971. Four completed projects have supported vocational, technical, agricultural and primary education. The Second Human Resource Development Project (PDRH2 - Cr. 2473-SE), a continuation of the fourth education project, is currently ongoing. The focus of this project is on primary education with particular emphasis on expanding access in rural areas, raising the primary enrollment rate from its 1990-91 level of 58% to the goal of 65% in 1998, increasing enrollrnent of girls, improving quality and internal efficiency, and containing costs through continued use of double-shift and multi-grade teaching. 2.11 Although higher education has not been the focus of past efforts to improve the quality and expansion of education, limited financing through the ongoing project was made available to support initial steps in the process of higher education reform deemed necessary by the government. Funding to higher education through the PDRH2 has contributed (i) a minimum supply of books and professional journals to the central library at the Cheikh Anta Diop University of Dakar (UCAD); (ii) urgently needed building repairs at the UCAD; and (iii) resources necessary for the preparation of the proposed project on higher education reform. Four PPF advances were additionally provided by IDA to finance the preparation of the proposed project, including the process of a national debate on higher education, the outcome of which will be supported by the proposed reform. An adult literacy project focusing on women is being prepared in recognition of their importance for economic development. 2.12 In the past, operations in the education sector have been hindered by inadequate implementation of a largely inarticulated policy framework. Government budgetary provision has also been a serious impediment to the timely execution of IDA-financed projects both in the education sector as well as in other sectors of the economy. Weak project management has been the most significant reason for unsatisfactory  5 project results; to prevent a recurrent scenario, the MNE cabinet has contracted with an Implementation Team to ensure timely procurement and to provide training in implementation for ministry and institutional personnel. It has also placed specific attention on strong national ownership of the reform effort. Speciric Sector Weaknesses (a) System-wide 2.13 Despite national efforts to improve the education system in Senegal, several factors have proven particularly difficult to overcome and have served to limit the extent of overall progress which has been achieved within the entire sector as well as specifically at the university level. Much of the inflexibility and unresponsiveness currently experienced in higher education is directly linked to system-wide problems such as low internal efficiency, inadequate student preparation, and a general weakness in terms of coordination between the various levels of the system. 2.14 Enrollments. Overall, primary school enrollment rates in Senegal have been in decline. Although the country had one of the highest primary education enrollment rates at the time of its independence, it has dropped to one of the lowest in Africa with a 56% primary level enrollment rate in 1994, well below the average of 68% in sub-Saharan Africa. The most disproportionately low enrollment figures, however, are currently experienced at the secondary school level. About 16.3% of the relevant age group attend secondary schools in Senegal, compared to an average of 43.8% in sub-Saharan Africa. A mere 2.9% pursue post-secondary education, whereas 5.4% is the average for comparable middle-income oil importers. Despite high expenditures in the education sector and the emergence of private schools, .enrollments have not kept pace with the high population growth (2.7% per year). 2.15 Gender. In addition, enrollment figures demonstrate that access to education between boys and girls in both urban and rural populations, although unequal, continues to improve. In 1992, girls constituted 43% of total primary school enrollrnent, relatively high by regional standards. However, in rural areas, the figure dropped to 35%. At secondary school, girls constituted only 35% of total enrollment, as compared to the sub-Saharan Africa average of 42%. In higher education, they represent only 24% of total enrollment, as compared to an average for middle income oil-importing countries of 43%. Boys tend to enroll more frequently in scientific streams, whereas girls more often choose the humanities, a specialization for which labor market demand has been greatly reduced. 2.16 Low internal efficiency. High repetition and drop-out rates are chronic at all levels of the education system. At the primary level about 16% of students either repeat or do not continue their education (10% in grade 1, 32% in grade 6). Similarly, about 16% of students either repeat or discontinue their studies during the lower and upper secondary levels (12% in grade 9, 20% in grade 12). Entrance exams must be passed before students may continue to each subsequent level and repetition is particularly prevalent in the grades preceding exarns due to the large number of students who are eliminated and opt to try again. Repetition is also ranpant at the university level (54% overall) where until the introduction of the present reformns, there was no limit to the number of years one could repeat. The inefficiency of the present system contributes significantly to the cost of education borne by the government, depleting resources which could be used for expansion and pedagogical improvements. 2.17 Inadequate student preparation. The quality of pre-university education appears to be deteriorating at all levels, and many students enter the university without the requisite knowledge that will enable them to pass. As a result, many students have problems understanding curricular content, an important contributing factor to the chronically low academic success rates experienced at the university  6 level. University instruction is based largely on independent study for which students have had insufficient preparation in secondary school, and for which required reading materials are not available. 2.18 Lack of system-wide coordination. The inadequate preparation of students for university-level studies indicates a more serious problem of coordination between the various levels of national education. To facilitate student success, specific attention is needed to more closely align classroom pedagogy and curricular structures used in secondary and university-level education. (b) Issues in Higher Education 2.19 Higher education is currently facing a nwnber of specific problems that the proposed project will address. At this stage of reform, particular efforts are necessary to respond to budget issues, to the lack of supplies, and to the need for improvement in teaching. University reform will facilitate economic reform efforts currently under way in the country by creating a more flexible national system of university training. 2.20 Higher education institutions in Senegal have significant autonomy in their resource management, personnel decisions, curriculum design and governance structure. Faculties are responsible for a number of functions including building maintenance, procurement and student administration, although they have lacked decision-making power in student admissions until recently. MNE has overall responsibility for strategic and regulatory matters such as budget and investment decisions, personnel terms of service, curricula and performance criteria. The inappropriate decentralization of some functions, such as procurement and maintenance, has been a source of inefficiency in the system. Although most higher education institutions are found in the capital, about 8% of the student population is located outside of Dakar. The Senegalese higher education sub-sector comprises: 1) The Cheikh Anta Diop University of Dakar (UCAD), with its affiliated institutes, is the country's major university. Founded in 1918, the University of Dakar is one of the oldest and most prestigious universities in Africa. In 1994-95 it had 23,369 students and 938 professors. The university has five main faculties (humanities, sciences, law, economics and medicine) and six affiliated institutes, including the recently restructured Ecole Superieure Polytechnique (ESP). These institutes had a total student population of 1371 in 1995. 2) The University of Saint-Louis (USL) was established in 1990. It had a student population of 1814 in 1994-95 and it employed 215 professors, 146 of whom were temporary or visiting. The university offers degrees in applied mathematics, computer science, economics, law, and humanities (English, French, geography and sociology). 3) Seven private sedor institutions were created after laws allowing them to operate were enacted in 1993/94. Six of these currently offer two-year courses and although student enrollment is presently low, it is expected to expand rapidly. Management and budgetary issues 2.21 Uncontrolled enrollments. The increasing numbers of students enrolled in higher education has strained limited financial and material resources available at the university level. UCAD faculties for example, have experienced a marked increase in enrollments between 1986 and 1991, rising from 13,568 to 19,151 students. Until 1994, anyone obtaining a baccalaur6at was eligible for admission to higher education and most secondary school graduates who do not go abroad enrolled at the university. In response to student pressure, a law limiting repetition was rescinded in 1984, allowing students to register  7 an indefinite number of times, and thereby further swelling the campus population. The Government has faced tremendous difficulty in introducing effective means to stem the flow of students, with the first meaningful steps having being taken only very recently, with students graduating from high school no longer receiving automatic admission to the public universities. The situation has resulted in enormous internal problems, with the budget remaining completely insufficient to respond to the needs of such a large student population. In addition, improvements in teaching and learning were not given priority consideration during budget allocations, giving rise to a predictable decline in quality. 2.22 A product of uncontrolled and disproportionate enrollments, and underutilization of teaching personnel, student:staff ratios have risen to 60:1 in the law school, 40:1 in the faculty of humanities, 18:1 in the faculty of science, and 10: 1 in the medical school. Moreover, wide disparities exist between the various cycles of undergraduate studies and freshman and sophomore classes of 600 to 1000 students are not uncommon. 2.23 Efforts at keeping track of the number of students and their academic progress have become increasingly complicated due to the size of the student body. Inefficient and unreliable means of registration have served to further compound the problem. While efforts at computerizing student enrollments and course completion were started some time ago, an updated, comprehensive system has neither been sufficiently explored nor implemented. 2.24 Inadequate personnel management. In an attempt to serve the exploding student population, large numbers of junior faculty members, or teaching assistants, were recruited in the 1980s. Despite the increase in teaching staff which this measure has enabled, employment of junior faculty has not been adequately monitored and junior staff members have come to outnumber tenured faculty. Unfortunately, the result has been a marked decline in academic standards. In particular, inexperienced junior faculty have been unable to guide students in the acquisition of information and skills most valuable in the labor market. They also lack the skills to present material to students and to effectively monitor performance. Relaxed regulations have enabled junior faculty to obtain secure employment through the introduction of tenured assistantships. As a result, incentive to work towards advanced degrees and conduct badly needed research has been curtailed. Staff development and research opportunities for these staff members are virtually nonexistent. Teaching assistants are expected to teach six hours per week; full and associate professors are expected to teach four hours per week, although most work more than this and receive overtime pay. Professors conduct almost no research whatsoever. Under these conditions, to remain within the context of international nonns will require more than doubling of the number of hours taught each week. 2.25 Inefficient allocation of financial resources. Public higher education in Senegal currently consumes almost 28% of the overall education budget, down slightly from 33% in 1993. It is characterized by an extensive social welfare system that until recently was subsidized at the rate of 96%. Most students pay registration fees equivalent to US$ 8 per year, with medical students paying US$ 100. Until recently, medical services were free for all higher education students. During the 1993-94 academic year, the system subsidized 12,200 students with room and board and either full scholarships worth US$ 125 per month or partial scholarships worth US$ 60 per month. In 1994-95, the number of scholarships was greatly reduced, with only 800 full scholarships worth about US$ 150 per month given out and 1,200 half scholarships worth about US$ 80 per month. The devaluation of the CFA franc has reduced the dollar value of these scholarships by half, to about US$ 75 and $US 40 per month respectively. Students with overseas scholarships were given a supplement equivalent to about US$ 280 per month in addition to the scholarship granted by the host country. The government of Senegal pays 2.8 billion CFAF (US$ 5.6 million) each year for these overseas scholarships, forty percent of which have gone to undergraduate  8 students in disciplines provided locally. Until recently, scholarships granted on the basis of financial difficulty were neither monitored nor linked to academic performance. The social subsidies provided by the system remain inflated, in spite of the initial efforts to eliminate certain categories of expenditure (for example, the payment of subsidies during vacations, and the payment of biennial trips to Europe for professors). Social subsidies represent the single largest budget item and constitute the basic resources to be reallocated in order to improve teaching quality at the university. 2.26 Social services are provided by the Centre des Oeuvres Universitaires de Dakar (COUD) and the Centre Regional des Oeuvres Universitaires de Saint-Louis (CROUS), which receive a budget separate from that of the universities. Uncontrolled enrollments, extensive mismanagement and unwillingness to deny student demands have produced an extremely overinflated, wasteful social welfare budget. Until recently, subsidies enabled students to buy for US$ 0.35 meals which cost $8.75 to produce, although as few as one-third of all students dined in university cafeterias regularly due to their poor quality. Following the devaluation of the CFA franc, privatization of cafeteria management and an increase in meal charges, students now pav US$ 0.30 for meals which cost US$ 1.60 to produce, yet quality has improved dramatically and student satisfaction has soared. Unnecessary and wasteful expenditure has also been evident in the provision of student housing. In order to supplement COUD-owned dormitories, the University rented off-campus units for student accommodation, yet recovered barely any of the cost, and made little effort to collect outstanding debts from students, who frequently sublet their rooms to individuals and families who had no connection with the University. Finally, university staff receive competitive salaries equivalent to about US$ 600 per month for professors and US$ 350 monthly for assistant professors in addition to housing and transportation benefits, but are required to perforrn very little work. A decision taken during the CNES to increase teaching hours from four to six per week for professors was rescinded in the face of union opposition. 2.27 The factors already cited have resulted in severely reduced allocations for instructional inputs and maintenance. In 1994, materials and equipment accounted for less than 4.5% of the education budget; maintenance less than 1%. For example, transportation costs for library staff exceeded the budget for library acquisitions in 1993 and overtime payments to academic staff, in compensation for time lost during strikes and vacations, absorbed more than the funds allocated for scientific equipment and laboratory supplies. 2.28 Management difficulties. The university has major shortcomings in the conduct of its core functions and its management procedures, as well as its supporting functions (budget management, financial management and controls, human resource management). University and social service accounts were declared unreliable when, in a recent management audit conducted by external consultants, figures were found to be incomplete, inaccurate, and outdated. Accounting methods were found to be ill-suited to providing the information needed to manage a university institution. There is no management information system (MIS). 2.29 The sector budget has not been used to set priorities and reinforce institutional missions. Until recently, no overall ceiling had been set with respect to the magnitude of the budget, its proportion of the MNE budget, or rate of annual increase. Budget discipline has not been enforced and unplanned expenditures are often incurred by managing entities without prior authorization. Ad hoc budget decisions made in the middle of the year in response to student or teacher strikes have led to unplanned and uncontrolled expenditures and resulted in significant arrears which the government has been unable to clear.  9 Material conditions 2.30 Facilities and maintenance. Inefficient utilization of university buildings and facilities is a big problem in Senegal. The UCAD pedagogical buildings, originally constructed to house 3,500 students, housed more than six times that number in 1995. Approximately half of the existing space is used as offices for staff and administrative purposes, leaving insufficient space for teaching and reading. Classrooms are often too small or too large for current needs, resulting in both overcrowded and under- utilized facilities. Buildings have been traditionally used by a single faculty, and there has been no university-wide scheduling of classes except for voluntary, inter-faculty agreements. Although large-scale construction is not required to accommodate the projected future student population of 15,000, considerable space reconfiguration is necessary. 2.31 While overcrowding is prevalent at UCAD, other institutions of higher learning affiliated with UCAD (chiefly professional and vocational) have under-utilized facilities and few students. Many of these were financed by donors without adequate long-term planning. Several of them duplicate each other's functions. As donor support withdrew, the quality of instruction and physical state of these schools deteriorated significantly. Donor-financed, capital-intensive engineering schools which have been operating well below capacity are a particularly relevant exarnple. There is an urgent need to coordinate academic program offerings between UCAD and the University of Saint Louis as well as to monitor enrollments. Doing so will help to eliminate duplication of programs and over/under enrollments. 2.32 Maintenance, which has been a faculty-level responsibility, has generally been under-budgeted and only sporadically implemented. The absence of an effective maintenance system and strategy have resulted in maintenance neglect, and many buildings are in dire need of extensive rehabilitation to become functional and meet safety regulations. 2.33 Inadequate library facilities. The central library is the heart and soul of any academic campus. It is what brings the universe to the university, at once a repository of acquired knowledge and a wellspring of future knowledge. But at the University of Dakar, the heart is hurting. The library collection is old and covered with dust. It is inaccessible to students and teachers alike. Vandalism is taking its toll. Air conditioning is limited to the office areas and the heat and humidity affect book and browser alike. In short, the system is badly in need of resources in order to update the current facilities and collections, develop library information and student programs, increase new acquisitions and audio-visual services, and respond to the research needs of university students and faculty. 2.34 The UCAD library was completed in 1965 and has an area of approximately 4,000 square meters and seats about 350 persons or less than 2% of the student body. It is increasingly insufficient in both size and services and offers limited support to professors and researchers. 2.35 There has been no modernization and little maintenance of the library since its construction. Although the building is sound, most equipment is in poor condition or out of order. Library technology is virtually non-existent. With the exception of recently automated periodicals catalogues, all library catalogues are kept by hand on stock cards. There is no audio-visual capability within the library, and the technical service areas are limited and maintain minimal equipment for the rebinding or repairing of existing collections. The chronic shortage of photocopiers leads to significant problems with pages being torn out of documents. Although there is a formal information-sharing agreement between the small network of libraries and reading collections in the country, this has almost no operational significance. Assessment of the University of Dakar library financed under the PPF concluded that major changes in the library's functioning are needed, along with rehabilitation and extension.  l0 2.36 The library is currently organized as two collections, with separate personnel for literature and science. This is inconsistent with modem practice which recognizes no such arbitrary divisions, and will be completely revamped under the proposed project. Library personnel will receive training to help them manage a much broader range of client-oriented activities and a vastly increased volume of book acquisition. The existing facilities will be completely overhauled and extended to provide greater access to the collections, increased collection security, far more seating and study space, and a range of new pedagogically-oriented functions. Some upgrading of satellite libraries and reading rooms in the various faculties and departments will be included, but the University has clearly opted for a central library focus, an orientation which will be supported and strengthened under the project. A new computerized cataloguing system will link the resources of the various branches, facilitating the location of specific articles within the system. Major emphasis will be placed on reorienting the mission of the library system so as to reinforce university curricula and support university teaching and learning. Reserve copies of syllabi and textbooks will be made available and a stronger emphasis on academic research will encourage students to maximize use of the facilities. In-service training for professors in the use of library facilities for course development and teaching will be an integral aspect of the endeavor. Pedagogical and curricular issues 2.37 Student success rates. The present situation of inadequate preparation for university studies, overcrowded classes, ineffective instructional delivery, and lack of academic support have created a higher education system plagued by low internal efficiency. Very few students pass first-year examinations. For example, in 1992-93, the passing rate from the first year was 8.7% in law, 20.5% in economics, 18.4% in the humanities, 19.4% in sciences, 37.3% in the medical/pharmacology departments, and 82% in under- enrolled engineering and professional schools. As a result of system-wide patterns of academic failure, only 800 of the total enrollment of 24,000 students graduated in 1992-93. The large numbers of students who remain in the system prevent a more effective utilization of resources and further lower the probability that other students will graduate. 2.38 Lack of textbooks and reference materials. Almost no university-level textbooks are produced in Senegal. The few which are even written in the country have encountered great difficulties getting published. Imported textbooks are extremely expensive and most students rarely own copies. Occasionally copies of textbooks can be found in the central and faculty libraries. However, the limited operating hours (10 hours a day during the week, much less on weekends) of the central library and insufficient size has meant that relatively few students go there consistently to consult books. Instead, students study from notes and photocopied materials. Unfortunately, the low success rates indicate that few students are capable of organizing a domain of information from unstructured materials. Changes are desired to increase the availability of textbooks and research materials in order to improve instructional delivery and effectiveness. The emphasis placed on research is hoped to increase the amount of books and other publications by Senegalese scholars. 2.39 Lack of scientific equipment, laboratory supplies and maintenance. Just as there is little budgetary provision for pedagogical inputs (textbooks and scientific information), so is there little funding for scientific equipment, supplies and maintenance. UCAD has traditionally relied on random and faculty- specific generosity of bilateral donors for the acquisition of scientific equipment and the supply of goods. These interventions have often resulted in excessive fragmentation, giving rise to excessive administrative overhead, poor utilization of academic staff, under-use of physical assets and the undermining of staff ownership of material so donated. Another consequence has been that equipment obtained was of many different types and has not been maintained. Since the acquisition of scientific equipment has not been systematic, professors are often unable to obtain for their classes the instructional materials needed to teach  11 effectively. There is no stock of supplies such as glassware and chemical products, or regularly needed spare parts such as bulbs for overhead projectors. The humanities faculties have virtually no technical equipment since they do not attract the interest of the donor community. 2.40 Links between training and market needs. There is growing concem in Senegal for the necessity of linking curricula and enrollment to market needs. Senegalese universities at present are isolated from the productive sector, maintain little contact with public or private sector business or industry, and conduct little research. Although labor market demands are constantly evolving, universities continue to deliver, almost exclusively, outdated scholarly material which has little relevance to labor market needs. 2.41 Changes in the macroeconomic environment have produced a need for technical skills in engineering and management. Enrollment figures remain the highest however, in the humanities and law, disciplines for which limited demand exists. In 1995, only 19% of first-year entrants enrolled in science- related courses. This has been partly attributed to early specialization and insufficient science facilities at the secondary-school level. The present situation has made it difficult to emphasize academic programs in science, engineering and management at all levels of the education system. As a result, students graduate without marketable skills and the labor market does not get the quality of professionals it needs. 2.42 The autonomous nature of higher education has enabled it to operate with little regard for national training needs. Limited coordination between university personnel and professionals from business and industry has meant that important information on labor market needs and potential university support is not shared. The proposed reform will increase communication between both parties by introducing structured means of mutually beneficial cooperation. 2.43 Evaluations. The high student:teacher ratio in many faculties, particularly in the first year, has made it extremely difficult to assess student performance frequently. The university does not have an examination system that facilitates scoring large numbers of examinations quickly and reliably. Students are thus assessed only once, in July, at the end of the academic year and may repeat the examination in October if they are unsuccessful. In addition, teacher-developed essay exams for large student cohorts often have low validity and reliability, and take considerable time and effort to score. Exam results are therefore received too late for any significant performance feedback. The effort required to score a large number of essay exams in the first year of undergraduate schooling has prevented the switch to a semester system, which is considered more conducive to student learning. D. Toward a National Reform Agenda 2.44 The focus on education in Senegal has underscored specific challenges facing higher education in particular. Higher education reform is long overdue, and past and present conditions make the proposed reform of this sub-sector especially opportune. Students and faculty members unsatisfied with the provision of higher education have expressed serious discontent, generating national interest in reform efforts. Initial steps have been taken through the two-year national consultation process funded through the PPF, yet specific assistance is desired by the government to develop and implement a comprehensive strategy for reform.  12 Mounting dissatisfaction 2.45 Student and faculty unrest. Despite the extravagant attention to student welfare--perhaps, indeed. because of it--the interests of the student body have for the most part remained unserved. Increased welfare appropriations and the difficulty finding jobs to match unmarketable skills have encouraged students to stay enrolled in the universitv system almost indefinitely. Increasing numbers of student are added each year while few leave. In the past, students not occupied in intensive studies became heavily involved in political activities. 2.46 Gradually, the situation became explosive, particularly after 1984. Idle, dissatisfied male students created a perpetually confrontational atmosphere on the campus. They were joined by junior faculty who demanded more benefits. Frequent and prolonged strikes by students and professors resulted in violence and anarchy, creating an atmosphere of fear and a domination of special interest groups. The Government repeatedly conceded to student and teacher unions' demands for new regulations that destroyed academic performance and discipline. For example, students were allowed to repeat classes indefinitely. The composition of university and faculty senates was changed to make room for an overwhelming presence of students and junior faculty. Teaching assistants were granted tenure upon recruitment, thereby nullifying the requirement to carry out research to earn career promotion. Research trips were granted irrespective of whether any research was being carried out. Senior university professors, increasingly disenchanted with government interference in academic matters to appease students, neglected their own programs. Absenteeism on the part of both professors and students was tolerated. As a result of these changes, the university focus moved away from academic excellence to become an institution protecting the personal interests of radical students, unionized academic staff and managers of student welfare agencies. The absence of an effective mechanism to enforce compliance led to blatant disregard for existing rules and procedures. National policy dialogue on higher education 2.47 In 1991, following the recommendation of the 1989 World Bank Long Tern Perspective Study of Sub-Saharan Africa, IDA recommended that the government organize a national debate on higher education to define and build broad-based support for reform. IDA and the government of Senegal convened a retreat to outline the terms of their cooperation. One item agreed upon during this retreat (Journees de Reflexion-- January 1992) was the principle of consensus-building for reform through open discussion with the public. Higher education reforn was to be the first test case. 2.48 In April 1992, President Diouf launched a national policy dialogue on higher education called the "Concertation Nationale sur l'Enseignement Superieur" (CNES). The CNES brought together all segments of Senegalese society (the university communitv, political parties, labor unions, parent associations, the private sector, and the press) to examine the issues and opportunities in the higher education sub-sector. IDA provided two Project Preparation Facility (PPF) advances (745-0-SE and 745- I-SE) to finance the dialogue and studies managed by Senegalese experts on intemal management, admission policies, teaching practices, financial management and budget procedures, and student social services. etc. 2.49 The studies, undertaken by a joint team of Senegalese professors and foreign consultants, contained anple and vivid illustrations of the system's many weaknesses and articulated a compelling case for reform. The report findings were discussed at the final session of the CNES, and extensively covered in the press. A reform agenda was adopted by an overwhelming majority of participants in the CNES, in spite of opposition from students and unionized staff. The reform agenda was subsequently endorsed and  13 implemented by the government, with IDA support through four PPF's. Following a three-month student/teacher strike protesting the reform, the government cancelled the 1993-94 school year in August 1994 and closed down the campuses, expelling all students from university dormitories. Only students meeting new cnteria that limnited repetition were re-admitted for the 1994-95 academic vear. In so doing, the Government had finally asserted its will against university unrest. National commitment to reform efforts 2.50 The objective of the government's reform is to create an atmosphere conducive to learning, with measures addressing a wide span of issues including the respect for individual and collective liberties, stronger and more transparent financial and administrative management, and the adherence to professional standards in academic work. The reform fosters a cultural shift towards academic integrity, responsibility, transparency, and accountability. Significant decisions already implemented include the following. 2.51 Limited enrollments and repetition. Admission decisions have been transferred to individual faculties and enrollments are to be based on academic requirements and capacity quotas. The application of this new rule in the 1994-95 academic year, combined with tougher repetition rules, led to a decline in enrollments in UCAD faculties of more than 1,200 students, despite the admission of 7,750 new baccalaureat holders. The University of Dakar foresees an annual net reduction of 2,000 students, leveling out at an optimal 15,000 students. In addition, new rules will govern repetition. Under the new reform, first- and second-year students may repeat a year only once. Implementation of the new measures resulted in 9007 students being expelled from UCAD at the beginning of 1994-95. 2.52 Elimination/ consolidation of academic programs. Three technical colleges and engineering schools have been merged to reduce redundancy and under-enrollment. These are Ecole Nationale Superieure Universitaire de Technologie (ENSUT), Ecole Polytechnique de Thies (EPT), Ecole Nationale Sup6rieure d'Enseignement Technique et Professionnel (ENSETP). Programs have been amalgamated by incorporating both the short (two year) and long (four or five year) cycles of scientific and engineering schools into one single institution, thereby combining laboratory equipment, classrooms, and academic staff. In addition, engineering schools will no longer teach foundation courses in science and mathematics as students can receive this preparation at the faculty of science. Finally, the planned introduction of a credit transfer system between the Universities of Dakar and St. Louis, combined with more stringent procedures for opening new programs of study, is hoped to eliminate much of the current redundancy and under-enrolled programs. It should be noted, however, that these changes have not yet resulted in increased efficiency, and there are still more staff members than students on the campus of the former EPT, for instance. 2.53 Merit-based scholarships. Scholarships will hereafter be awarded to the best scoring students and renewed annually. The number of in-country scholarships awarded will decline to about 8,000, down from over 10,000 in 1995. New overseas scholarships are reserved entirely for graduate studies in disciplines beyond the capacity of the national system of higher education and will decline from about 2000 to about 1000 over a five-year period. Savings on the scholarship budget are calculated at CFAF I billion annually. 2.54 Increased cost recovery and privatization of selected services. There has been a significant effort to cut costs on student social welfare measures. Management of the cafeterias has been privatized through local bidding, resulting in a 70% drop in food cost for the universities. Prices of meals for students have been increased and the cost of housing has gone up by about 50%, the first increase in over 30 years. The combination of meal price increases and lower unit costs of meals led to an increase in cost recovery  14 from students from 4% to about 20%. The budget for student cafeterias was thus reduced from CFAF 5.3 billion in 1992-93 to CFAF 1.6 billion in 1994-95. 2.55 Improved allocation and management of resources. Access to the student social services is now restricted to regular students who show academic excellence or specific financial needs. Management was tightened, expensive leases for student dormitories with private landlords were canceled, and tuition fees were increased for certain categories of foreign students. The savings from housing and meals will free funds for research and teaching materials. As technical and engineering schools merge, better use will be made of academic staff and facilities, thereby reducing the demand for more part-time professors and investments in additional buildings and facilities. 2.56 Teaching hours and study trips. If the higher education system in Senegal has in general become more efficient in the use of financial resources, some important areas of inefficiency remain. Professors teach only five hours per week (receiving overtime pay for the fifth hour) and teaching assistants teach only six hours per week. In addition, until recently, each professor had the right to one study trip to Europe every second year. These trips amounted to little more than a paid vacation, since no study proposals were required and no reports were provided. The automatic right to these trips has been done away with, and criteria based on submission of research projects are being prepared, but it is not yet clear to what extent the proposed reforms will result in relevant research. 2.57 Restoration of academic mores. Recent reforms have also moved in the direction of restoring normal appointment and promotion practices for academic staff. The new composition of faculty and university senates represent a shift in power towards majority representation by senior, tenured staff. Deans are now selected by a college of tenured faculty only. Teaching assistants are no longer granted tenure upon appointment. Tenure is again viewed as a privilege to be eamed through excellence in teaching, research, and promotion through the ranks. However, the regular teaching load for tenured faculty remains far too low and far too much is spent on overtime pay to underworked professors. This is a major handicap in terms of financing and obligates funds that could be made available for other pedagogic purposes. Most teachers at Saint Louis are full-time professors on the Dakar faculty as well, with predictable results in terms of quality and cost. During negotiations, agreement was reached that the average teaching hours of professors will be increased by at least one hour per week by December 31, 1998, and by at least two hours per week by December 31, 1999 [para. 7.2(b)]. Toward institutionalized change 2.58 WVhile the government of Senegal has made the transition from a system of higher education on the verge of irnplosion to systemic positive changes, there is an unfinished reform agenda which includes the articulation of a comprehensive strategy for the long-term development of the sector. At issue is the definition of a viable means of creating an education system with greater balance between primary, secondary and tertiary programs and financing . The demographic trend and its associated financing challenge remain by far the most intractable problems which the government must face. At present, the government devotes about 7 percent of the national budget, and 30 percent of the education budget, to provide access to higher education to only 2.6 percent of the relevant age group. 2.59 The imperative of working toward systemic change in education is underscored by problems and concerns affecting every level of the system. Some of the most pressing issues include: developing new means of increasing resources to all three levels of the education system, regulating enrollments, meeting the accelerating labor market demand for training in scientific and engineering disciplines, institutionalizing research, and establishing an appropriate role for burgeoning private tertiary institutions. Assisting the  15 govemment to define a strategy which will address these issues in a comprehensive manner is one of the key objectives pursued under the proposed project. Challenges and potential risk 2.60 In the past, operations in the education sectors have suffered from inadequate implementation of the policy framework, especially where there were conditionalities relating to the reform of the highly politicized higher education sector. For example, the fourth education project linked disbursements for investment in primary education to reductions in spending for higher education, an objective which was not achieved. Project implementation was also hampered by the inadequate capacity and inefficient procedures of the concerned government departments with regard to school construction programs. Finally government budgetary provision has been a serious bottleneck in the execution of IDA-financed projects, not only in the education sector but in other sectors of the economy as well. 2.61 For the proposed Higher Education Project these risks are minimized because the project is at an advanced stage of preparation. Bidding documents for the investment component are being prepared in advance using PPF resources and funds from the higher education component of the Second Human Resource Development Project. Draft terms of reference for consultant services and studies for the first year of the project were submitted to IDA as a condition of negotiations [para. 7. 1(b)]. Agreement on the terms of reference was reached during negotiations [para. 7.2(c)]. Funding for recurrent costs will be made available through the reallocation of savings realized on the student welfare budget. Agreement on annual counterpart financing requirements and annual budget provisions sufficient to cover additional recurrent costs resulting from the project was reached during negotiations [para. 7.2(d)]. Payment of the counterpart financing requirement of US$ 250,000 for the first project year into a project account is a condition of effectiveness [para. 7.3 (a)]. Most importantly, the consensus-building achieved through the process of policy dialogue on higher education has created strong national ownership of the proposed reform. 3. THE PROJECT A. Project Origin 3.1 The proposed project emerged from the National Consultation process, a series of consultative meetings organized by Government with all concerned stakeholders over an intensive 18-month period. It builds on the reform prograrn adopted by Government as a result of the National Consultation process, and on Government's further elaboration of its reforrn program in its draft statement of higher education policy. The proposed project directly addresses the major issues in the higher education sector and will help shift the focus of reform efforts from what has been referred to as the "social campus"--cafeteria services, scholarships, etc.-to what is often referred to as the "pedagogical campus"--the conditions under which teaching and learning occurs. The project includes three main components: (a) the improvement of library services, (b) the upgrading of teaching and research, and (c) the strengthening of management capacity. It will be implemented over a period of six years, with annual reviews. A mid-term review will examine the extent to which sectoral reform initiatives have been implemented (see Annex 4). For all project components, the planned activities are premised on the existence of a process of consensus development and reflection. Detailed explanations of activities planned under each component are provided below.  16 B. Scope and Objectives 3.2 In line with the conclusions of the national consultation process described above, the long-termi objective of the project is to improve higher education graduation rates and gender equity, with greater cost-effectiveness and more relevance for Senegal's economic development. To this end, the project will help the Government refocus the activities of its two universities around their pedagogic mission, while reinforcing management capacity and quality control. Specific objectives are as follows: a) to reinforce library services; b) to improve teaching; c) to improve research; d) to develop a maintenance system; e) to strengthen management and public and private financing; and f) to complete the reorganization of student services. C. Project Description 3.3 The following summary presents the project components: Project Summary (Total Cost US$ 30.9 million)' 1. Improvement of library services (US$ 15.6 million) * expansion and rehabilitation of the UCAD central library (US$ 11.2 million); * acquisition of books and periodicals/library management (USS 4.4 million). 2. Upgrading of teaching and research (US$ 9.4 million) * reinforcement of applied science teaching (US$4.0 million); * development and pilot testing of an accreditation system (USS 0.3 million); * management of a university research fund (USS 2.9 million); * study of alternative models for teaching and financing (US$ 0.3 million); * installation of computerized information service (USS 1.8 million). 3. Strengthening of management capacity (US$ 4.1 million)