Malawi - Education Project

RESTRICTED Report No. P-537 FILE COPY This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF MALAWI FOR AN EDUCATION PROJECT April 19, 1967  TNTRNATIONAL DEVELOPRENT ASSOC-TATIN RqEPORT AND RECOKHEYDATION OF THE PRESIDEMT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF MALAWI FOR AN EDUCATION PROJECT 1. I submit herewith the following report and recommendation on a proposed development credit in an amount in various currencies equivalent to $6.3 million to the Republic of Malawi to help finance construction and equipment for education. PART I - HISTORICAL 2. The Malawi Government first requested financial assistance from the International Development Association for the development of education in early 1965. This was followed by a UNESCO project preparation mission in October 1965 under the Bank-UNESCO Cooperative Agreement. A formal application was received by the Association in January 1966 and an appraisal mission went to Malawi in March 1966. During the course of this appraisal, the initial proposals were modified in view of financial constraints and the shortage of teachers. 3. Formal negotiations took place in Malawi in early December 1966. The Malawi delegation was led by 11r. R.JeC. Wait, Secretary to the Treasury, and included the Permanent Secretary, Ministry of Education, the Solicitor General, the Commissioner for Works and Supplies and other representatives from the Milinistries of Education, Works and Supplies, Development and Planning, and Finance. 4. There has been only one previous Bank or IDA lending operation in Malawi. This was an IDA project preparation credit (No. S-2-MAI) made to the Republic of Malawi in October 1966 for $490,000 to finance a highway engineering project. At March 31, 1967, $413,000 of this credit remained undisbursed. Nalawi, formerly Nyasaland and a territory of the Federation of Rhodesia and Nyasaland (1953-63), did not benefit from any of the Bank loans to the Federation. 5. The Association is considering two further projects in Malawi. One proposed credit of about $10 million would be for the construction of the highways now being engineered under project preparation credit No. S-2-MAI. Funds have been earmarked from existing IDA resources to cover this credit. The other proposed credit, which is at an earlier stage of consideration, would finance part of a project for agricultural reorganization and development. 6. There have been no IFC investments in Malawi. PART II - DESCRIPTION OF THE PROPOSED CREDIT 7. The main characteristics of the proposed credit are as follows:  Borrower: The Republic of Malawi Amount: $6.3 million in various currencies. Purpose: To assist in financing the construction. and equipment of (i) a primary teacher training college; (ii) additions to twelve secondary schools which would allow ten of the schools to accommodate 1,860 additional pupils and twelve schools to provide in.struction. in technical subjects. Amortization: 50 years including 10 years period of grace, in, semi-annual installments beginning April 1, 1977 and ending October 1, 2016. Service Charge: 3/4 of 1 percent per an.num. PART III - THE PROJECT 8. An appraisal report entitled "Appraisal of an Education Project in Malawi" (TO-556b, dated April 17, 1967) on the proposed project is attached. 9. The Malawi educational system is similar to that of Britain in. organizational structure and in the content of its courses, except that the great majority of schools is operated by voluntary agencies. In 1965, 340,O00, or nearly half the corresponding age group, were enrolled in primary schools. Present policy is not to in.crease this proportion. On the other hand there were only 8,020 pupils enrolled in. secondary schools in the same year. Enrollment in Forms 1 to 4 (secondary) is less than 1-1/2 percent of the eligible age group. The present emphasis on success in academic subjects is to be charnged through the introduction. of technical subjects in selected secondary schools, making the system more appropriate to the type of employment now available in Malawi. 10. Secondary school enrollment is planned to increase to 13,580 by 1970, an increase of 70 percent over present enrollment. This would only accommodate 3 percent of the age group and 10 percent of primary school leavers. The main constraint on expansion, however, is the number of qualified teachers. 11. The Government has established a new administrative unit, within the Ministry of WDrks and Supplies, which will be responsible for the implementatio.n of the project and the necessary coordination. with other agencies. It is headed by a Project Coordinator, acceptable to the Association, and its staff includes an Accountant and an Equipment Specialist. The Government has selected two firms of architects, acceptable to the Association, to undertake the necessary architectural and engineering services.  - 3 - 12. The prcjGct corisists of the construction and equipmen.t of a new national primary teacher training college and the construction and equipment of new educational facilities, boarding and staff accommodation in twelve secondary schools; site improvements, the addition of administrative and service facilities and building renovations of these schools; and the pro- vision. of 10 teacher fellowships. Work is expected to be completed by the end of 1970. 13. The expansion of these two sectors of education in Malawi is essential for the long-term growth of the system and for future manpower requirements in the economy as a whole. The project will also affect the quality of education. The proposed teacher training college is a prototype of the larger, modern institutions necessary to improve teacher training standards, and to provide more and better qualified teachers in the primary school system. The introduction of a technical curriculun in selected secondary schools will mean secondary school graduates better suited for jobs requiring technical skills. 14G The new teacher training college will have an ultimate enrollment of 540, increasing the 1965 level of enrollmen.t in existing colleges by about 40 percent: its annual output will be 240, compared with 495 from existing colleges in 1966. 15. The addition of a technical curriculum will provide for a four- year course for full-time technical students, and instruction in technical subjects for first year students in academic courses. More than 5