Jordan - Education Project

RESTRICTED CIRCULATING COPY Report No. P-1017 TO BE RETURNED TO REPORTS DESK FILE COPY This report is for official use only by the Bank Group and specifically authorized organizations or persons. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO JORDAN FOR AN EDUCATION PROJECT January 13, 1972  INTE.RNATIONAL DEVELORPTNT ASSOCIATION REPORT AND RECOAMENDATION CF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PRCPOSED CREDIT TO JORDAN FOR AN EDUCATICN PROJECT 1. I submit the following report and recommendation on a proposed Credit to Jordan for the equivalent of US $5.4 million on standard IDA terms to help finance an education project. PART I - INTRODUCTION 2. The proposed Credit would be the sixth Bank Group operation in Jordan, which were all financed by IDA credits, and the first for educa- tion. Bank Group lending to Jordan began in 1961. It was interrupted by the Arab-Israeli war of 1967 and the disturbances that followed, and the projects then under consideration, including in particular a large scheme for the extraction of potash from the Dead Sea, were put in abeyance. A number of new projects were identified by a mission in early 1969. The first of these, the Highway Project (Credit 262-JO) was approved by the Association in June 1971 and would be followed by the education project now being proposed. 3. A summary statement of IDA credits to Jordan is attached as Annex I. The Government's ability to carry out projects in an orderly way has been seriously affected by the unstable security situation with- in the country resulting frcm the 1967 war and the civil disorders parti- cularly in 1970/71. In the case of the Agricultural Credit Corporation, which received two IDA credits (Nos. 44-JO and 103-JO), the rate of lend- ing and the collection of arrears deteriorated sharply necessitating a postponement of the Closing Date of the second credit. However, there has recently been a slight improvement. Action taken by the Government to ensure security in the Jordan Valley, where the bulk of agricultural activity takes place, and the above average harvest in 1971 have improved the chances of loan recoveries by the Corporation. The situation remains precarious however since any renewal of hostilities along the Arab-Israeli cease-fire line would bring about an immediate setback. Performance under the two Water Supply Projects (Credits 18-JO and 43-JO), although they were slow to be completed, is satisfactory on the whole. IFC has not made any investments in Jordan and has no operations under consideration at present.  4. The uncertain political situation in the Middle East, parti- cularly as this affects Jordan, and the dependence of the Jordan econamy on substantial amounts of external grant aid, make planning ahead diffi- cult, especially in the long term. Under these circumstances, develop- ment strategy in Jordan calls for the choice of development projects which would help to relieve the immediate economic problems and at the same time benefit long-term development needs whatever the evolution of the political situation. Serious attention should be given to development priorities in order to make the most of the limited domestic financial resources and to ensure that foreign aid should be channeled to the pre- paration and execution of projects that fit the above strategy. Due to the prevailing uncertainties, identification and preparation by the Government of economically viable projects has often been inadequate. Efforts are now being made, however, by the National Planning Council with the advice of the Bank and with technical assistance provided by UNDP, to draw up a medium term plan which would provide the basis for further de- velopment. 5. The proposed project meets the above criterion. The education system in Jordan suffers from a number of deficiencies arising from un- controlled expansion of primary and secondary enrollment in the past with- out corresponding increases in physical facilities and teaching staff and without adequate consideration of the country's priority requirements for vocational education and training. The project aims at redressing the present imbalance between academic and vocational education and thus, at the same time, to improve employment qualifications of students and help to meet Jordan's manpower needs. Other high priority projects in the fields of water supply and power generation, which were identified by the Bank economic mission in 1969, are currently under consideration for financ- ing by the Association. The preliminary findings of an economic mission which visited Jordan in 1971 show that there is potential for development, particularly in the field of agriculture and the mission has tentatively identified a number of areas where further investigations are warranted. 6. The proposed project was first identified by a Bank/UNESCO mission which visited Jordan in February 1970 and was prepared by the Oowerxment with UNESCO assistance. Appraisal was delayed by the civil disordser in Jordan and finally took place in May/June 1971. Negotiations were held in Washington in December 1971. The Borrower's delegation was headed by Dr. Ishaq Farhan, Minister of Education, and included representa- tiven '"'f bbc. MUi: k ;f' Z-i7iw.1atton. and the National Planning Council.  PART II - THE ECONGMY 7. An updating memorandum dated May 21, 1971 on the Current Economic Position and Prospects of Jordan (EMA4.37a) was distributed to the Executive Directors on June 7, 1971 (IDA/R7-41). An economic mission visited Jordan in December 1971 and is presently preparing its report. A Basic Data Sheet is attached as Annex II. 8. Following the civil war in Jordan between the armed forces and the Palestinian guerillas in September 1970, and the action taken by the army against the guerillas last summer, the Government has now reestab- lished its control throughout the Kingdom. Since then, the authorities have concentrated on the task of repairing the war damage, harpered only by occasional anti-government gestures, to which the Government has res- ponded firmly. 9. The Government's success in reestablishing its authority and control over the country was achieved at the expense of further isolation of Jordan in the Arab world. The elimination of the guerillas not only cost Jordan financial support from Libya and Kuwait, but also led to the closure of the Syrian border to Jordanian trade. This latter action has had repercussions on the economy of Jordan as the vast majority of Jordanian exports and imports passed through Syria. Recent reports however suggest that Syria may consider reopening the border. 10. From 1959 to the eve of the Arab-Israeli War of 1967 the Jordanian economy grew at around 8-10 percent per year. Per capita GNP rose from $208 in 1961 to $260 in 1966, an average increase of over 4.5 percent per year. Substantial price stability prevailed over this period and, as a result of considerable foreign assistance, a surplus in the balance of pay- ments was maintained. The Government made every effort to increase domes- tic revenues and a complete phasing out of foreign budget support was ex- pected by the mid-seventies, when all foreign aid was to be channeled to development projects. The growth of exports and invisibles promised further improvements in the balance of payments position. Although con- tinued external assistance w-Tas required, the prospects for sustained and effective development were good. U. The loss of the West Bank in 1967 severely curtailed the growth of the most promising sectors such as agriculture, tourism and industry; and the consequent inflow of refugees to the East Bank created a severe strain on employment opportunities, on current budget expenditures and urban infrastructure needs. Only large infusions of Arab aid (under the Khartoum Agreement of August 1967) made an extremely difficult budgetary and balance of payments position manageable. In 1968, poor climatic con- ditions severely reduced agricultural production, while increased militancy on the part of the Palestinian guerillas inhibited industrial growth.  In 1969, however, the economy recovered from the setback of the previous year as exceptionally good climatic conditions resulted in increased agri- cultural production, and private investment and construction activity recovered to 1966-67 levels. The civil disturbances of July 1970 and subsequently the civil war in September 1970 put a halt to the brief ex- pansion which had continued into the first half of 1970. The cumulative effect of these events was to leave the economy in 1970 at about the same levels of production as in 1967, but with considerably depleted resources. 12. In the first half of 1971 there was substantial growth in the economy although investment did not increase as rapidly as other economic indicators. A complete recovery to the 1969 levels, however, has not been possible due to the closure of the Syrian border. In 1971 the deficit in the government budget is estimated at $42 million, equivalent to 18 percent of cumulative government expenditure over the same period. To meet its obligations the Government has resorted to extensive borrowing from the banking sector. The financing of the budget deficit, chronic since 1967, poses a major threat to the economic stability of the country which so far has experienced relative price stability despite a rapid increase in money supply. Very stringent budgetary policies are needed to cope with this situation. On the balance of payments side, large deficits have resulted from declining revenues from exports, invisibles and transfers. In 1971, the current account deficit is estimated at $42 million while overall the deficit on the balance of payments was $17 million. In view of the special nature of the decline in export revenues, Jordan received $4.5 million in compensatory financing from the fIF in 1971. Foreign exchange reserves, reflecting the tight payments position, declined but stood still at $246.4 million at the end of November 1971, equivalent to about 16 months of imports at 1969 levels. 13. In spite of short-run difficulties, there are indications that Jordan is now facing up to the medium and long-term problems. The most positive sign of this is the decision to draw up a three-year plan. This exercise is well under way and a final document should be available in the spring. The importance attached by the Jordanian authorities to the plan is reflected in the decision to make available to the planning authority an impressive array of technicians from all economic ministries. The planning exercise will help the Government to establish its medium- term investment priorities, and contribute to the rationalization of the decision making process. 1h. External public debt outstanding at the end of the third quarter of 1971 amounted to about $142 million or some $30 million more than at the end of 1970. Partly as a result of this increase in debt, but also because of declining export earnings, debt service as a percentage of exports and gross invisibles has increased from around 2.8 in 1970 to around 8.5 in 1971. In view of Jordan's limited ability to service external debt, the limited resources available for development in relation to those needed to achieve a moderate rate of growth, the low per capita incorme, Jordan requires substantial and continued external assistance which slhould be obtained so far as possible on concessional terms.  - 5 - PART III - THE EDUCATION SECTOR 15. The education system of Jordan is based on a pattern of 6 years of primary education, 3 years of preparatory education and 3 years of secondary education, followed by university and other post secondary cources, varying in length from 2 to 6 years. Primary and preparatory education is free and compulsory. In 1970/71 the enrollment in primary schools was 422,000 or 90 percent of the relevant age group, while prepa- ratory and secondary school enrollment amounted to 111,000 or 67 percent and 52,000 or 35 percent of the relevant age groups respectively. In 1970 a total of 6,500 students were enrolled in the University of Jordan and other post secondary education institutions, compared with saoe 241,000 who were pursuing higher education abroad. 16, The Ministry of Education (MOE) has overall responsibility for primary, preparatory and secondary education, although the United Nations Relief and Works Agency (UNRWA) operates some schools exclusively for Palestinian Refugees, and some are privately run. The MOE also operates three training institutions for primary and prop&ratory fthool teachers, and a fourth is operated by UNRWA. The University of Jordan is an autonomous institution and receives Government and other grants. 17. In 1970 the MOE provided 56 percent of national educational ex- penditures. Other ministries accounted for 10 percent and local authori- ties for 5 percent. The remaining 29 percent was shared by UNRWA (19 per- cent) and private sources (10 percent). The ccntribution of the MOE is entirely spent on government schools at primary, preparatory and secondary levels, for which the Ministry is directly responsible. Another part of the costs of these schools is covered by local authorities and UNRWA. UNRWA thus contributes to the Jordan educational system in two ways, namely by operating its own schools for refugees and by paying the Jordan Govern- ment for some refugee children enrolled in MOE schools. Expenditure on education increased in the ten years prior to 1967 by about 10 percent annually, and the share of education expenditure in total GNP remained moro or less constant at 4.5 percent. After 1967 education expenditure patterns have become difficult to determine but expenditure on education for the East Bank alone amounted to $24 million equivalent in 1970, representing 6.5 percent of estimated East Bank GNP.  -6- 18. Although enrollment ratios at primary through secondary levels are high and the output of the system is numerically impressive, the quality of education at these levels is deficient. Most teachers are unqualified, school buildings are unsuitable and basic teaching material is lacking. The shortage of properly trained primary and preparatory teachers in parti- cular is a major factor in the poor quality of teaching and a major ob- stacle preventing the introduction of a more meaningful and diversified curriculum. Thus the supply of qualified teachers at the primary and the preparatory levels needs to be improved. At present no facilities exist for training agricultural and vocational teachers for preparatory schools. 19. The develcpment of secondary education has been biased in favor of academic education. oily 9 percent of students are enrolled in vocatio- nal courses such as commercial, industrial, agricultural and nursing pro- grams and the remaining 91 percent follow purely academic courses. This has resulted in a critical shortage of trained manpower in industry, commerce and agriculture while a growing number of general secondary school graduates remain unemployed. 20. Secondary teachers of all types are recruited from graduates of the University of Jordan and from those returning from training overseas. The University of Jordan is able to meet the quantitative demand for science and liberal arts teachers, but it is necessary to improve the quality and orientation of the secondary teacher training program of the Faculty of Science. The need for secondary vocational and agricultural teachers is being met by training abroad. 21. Present deficiencies in the training of skilled industrial crafts- men and technicians call for urgent attention. The government plans to establish a National Vocational Training Council which will help translate manpower requirements into training programs, develop training standards and review salary policies for technical personnel. So far the only school in Jordan for training industrial technicians and craftsmen is operated by UNRWA. 22. The Government's educational strategy is to accord top priority to the task of improving the quality of education by: (i) limiting enroll- ment expansion to a rate substantially below the growth rate in the recent past; (ii) increasing the supply of qualified teachers and up-grading teachers in service; and (iii) diversifying the curricula of both preparatory and secondary schools to include more vocation-oriented courses. This strategy is appropriate to tackle the present weaknesses of the education system, and the proposed project is in direct support of it.  - 7 - PART IV - TTIE PROJECT 23. A detailed description of the proposed project is given in the report entitled "Appraisal of a First Education Project in Jordan" (PE- 36a) dated January 13, 1972 which is being distributed separately. A Credit and Project Summary is at Annex III. A map showing the location of project items is also attached. The proposed project would contribute to the controlled expansion of the secondary and post-secondary educational system of Jordan, with particular emphasis on technical and vocational edu- cation, and support teacher training for preparatory and secondary schools, through the expansion of existing educational facilities and the construc- tion of new facilities. The project would also contain a substantial tech- nical assistance component to be financed by the Association and bilateral and multilateral donors, to cover the training needs of the project. The main features of the project are given below. 24. Comprehensive Secondary Schools. The project would provide buildings and equipment for two new comprehensive secondary schools which would represent the first stage in the Government's efforts to introduce a new form of secondary education. These schools (one for boys and one for girls) would both be located in Amman and are expected to help correct the present imbalance between purely academic and vocation-oriented secon- dary education in favor of the latter. The Government plans to increase vocational enrollment which, expressed as a percentage of general secon- dary enrollment, would increase from the present low level of 9 percent to 30 percent by 1980. New construction at the secondary level has the added advantage of replacing existing unsuitable rented accommodation. The girls' secondary school would contribute to women's participation in the labor force. The enrollment in the proposed schools (1,000 students in each school) would be about equally divided among arts, science, and vocational education. The two schools together would graduate 610 students per year. University graduates, of which there is an adequate supply at present, would be recruited to teach in these two institutions. 25. Polytechnic and Trade Training Center. The proposed project would finance the construction and equipment of a Polytechnic and Trade Training Center at Marka with boarding facilities for about 35 percent of the total enrollment of 755 students. A small manufacturing unit would be attached to the Center for the production of prototype scientific equipment for use in secondary schools. The Polytechnic would offer two-year post-secondary full-time courses leading either to further training or to direct employment at middle-technician level in architecture, building and engineering (its technician output would be 190 per year). In addition courses would also be offered for the training of technical instructors (20 per year) for employment in preparatory schools. The Trade Training Center would offer one and two-year post-preparatory full-time courses leading to direct  -8- eniploymint at Cie . erel. Graruptes frwv i;he Trade Training Center (167 per year) are expected to reach supervisory or lower-technician positions. The facilities of the Polytechnic and 'rrade Training Center would also be used for evening classes covering a wide range of subjects appropriate to the needs of those already employed in the area. 26. Teacher Training College. It is proposed to build and equip a co-educational primary and preparatory teacher training college located at Salt with a total enrollment of 700 students. Residential facilities would be provided for 420 students. Graduates from the college (320 per year) are expected to teach aIl subjects at the primary level and specialized subjects at the preparatory level and would thus help to meet the need for additional qualified teachers at these levels. 27. Agricultural Teacher Training Extension. The project provides for the expansion of an existing agricultural school in Shaubak for the training of agricultural teachers for preparatory schools through a two- year post-secondary teacher training program for about 60 students. Be- sides meeting the needs of the preparatory schools, the graduate teachers are expected to assist in extension work, thus bridging the gap between agricultural education and the extension service. 28. Technical Assistance. In view of the importance of the proposed project in bringing-about a reorientation of the education system in Jordan through the introducation of comprehensive secondary education and the sig- nificant expansion of technical and vocational training, technical assis- tance financing amounting to about $380,000 would be provided by the Asso- ciation out of the proceeds of the credit and a further $1.2 million would be provided by other external sources. Assurances have been received by the Jordan Government from the UNDP (and ILO who would act as executing agents for UNDP) and the British Overseas Development Administration (O.D.A.) covering the latter amount,which would be used for the specialists and fellowships required for the Polytechnic and Trade Training Center. The Association would finance the technical assistance requirements for the two comprehensive secondary schools, the teacher training college, education planning and the Project Unit. In the event that the UNDP or OVA techni- cal assistance contributions do not materialize, the Jordan Government has agreed to finance any shortfall. 29. Project Administration. A Project Unit has already been estab- lished within the Ministry of Education to supervise project implementatiorn5 to coordinate activities related to the project within the Government, with private bodies and with the Architectural Consultants which would be appointed for design work and supervision of contractors, and to provide liaison with the Association. The staff of the unit would consist of a qualified and experienced Director and Architect acceptable to the Association, a qualified  - 9 - and experienced Accountant and Procurement Specialist, to be appointed after consultation with the Association. All staff would be employed on a full time basis. 30. Educational Planning and Coordination. There is a need in Jordan to improve the panning of education in order to ensure that the education system is best adapted to the manpower requirements of the country and at the same time to bring about better coordination between the various Govern- ment ministries, agencies and other institutions concerned with implementation in specific areas such as agricultural education and teacher training. Under the draft Credit Agreement the following steps would be taken by the Jordan Government: (a) An Education Planning Committee would be established within the Ministry of Education whose membership would include the Minister of Education, the Heads of Primary and Secondary Education, an Educational Planner (or Planners) to be pro- vided through technical assistance as part of the project, and a representative of the National Planning Council. (b) The Jordan Board of Education would set up a Teacher Training Committee including the Dean of the Faculty of Science and the Head of the Department of Education of the University of Jordan, the Project Manager of the existing UNDP/UNESCO assis- ted teacher training program and the Head of the Teacher Training Department of the Ministry of Education. (c) A Coordinating Committee for Agricultural Education including officials of the Ministries of Education and Agriculture, the National Planning Council and the University of Jordan would be established. (d) A National Vocational Council would be established with a Vocational Education and Training Department as its executive arm. Membership of the Council, for which plans have already been made, will include representatives of public and private industries, educational institutions and concerned trade unions. Representatives of the National Vocational Council, public and private industries and educational institutions would also be appointed to an Advisory Council to be estab- lished for the Polytechnic and Trade Training Center. (e) To enable the Government and the Association to assess the suc- cess of the proposed project in attaining its objectives, the Government has agreed to put into effect a "tracer system" for all project institutions and for a limited number of tradition- al secondary schools, which would record all relevent infor- mation concerning premature termination of education, repetition, employment and advanced studies of graduates.  - 10 - 31. Cost Estimates and Financing Plan. The total cost of the project is estimated at $9.8 ii9Eon. Wa's'-fotal ~fincludes $1.2 million in techni- cal assistance for the Polytechnic and Trade Training Center (see paragraph 28 above) expected to be financed by the UNDP and MDA. Of the remaining $8.6 million for construction, furniture, equipment and other technical assistance, the proposed IDA credit would finance $5.4 million, correspond- ing to the estimated foreign exchange component of these items. The Governr- ment would finance the $3.2 million equivalent in local expenditures. The recurrent expenditures connected with the project, to be financed by the Government, are estimated at $0.7 million equivalent a year. The project cost estimates have been adjusted to take account of the expected effect of recent currency realignments. 32. Procurement. All contracts for the supply of furniture, equip- ment and books and for construction would be awarded on the basis of inter- national competitive bidding. In bid comparison local manufacturers and suppliers would be allowed a 15 percent preference or the import duty, which- ever is the lower. However, it is unlikely that the local furniture indus- try would be competitive and furniture contracts are likely to be awarded to foreign suppliers. Except for furniture and equipment, the project wTill. probably not attract many foreign bidders. The number and quality of local general contractors is adequate to carry out construction work under the project. 33. Disbursement. The credit would be disbursed against the CIF costs of imported furniture and equipment, or 75 percent of the cost of these items if procured locally, the foreign exchange cost of consultants' services and technical assistance and 45 percent of the cost of civil works contracts, representing the estimated foreign exchange component. PART V - LEGAL INSThURENTS AND AUTHORITY 34. The draft Development Credit Agreement between the Hashemite Kingdom of Jordan and the Association, the Recommendation of the Committee provided for in Article V, Section 1 (d) of the Articles of Agreement and the text of a Resolution approving the proposed credit are being distri- buted to the Executive Directors separately. The draft Development Credit Agreement conforms to the normal pattern for credits for education projects. 35. I am satisfied that the proposed Development Credit Agreement would comply with the Articles of Agreement of the Association. PART VI - RECMENDATION 36. I recommend that the Executive Directors approve the proposed Development Credit. Attachments Robert S. McNamara President January 13, 1972  AlNiJEEX I STATE2NT OF IDA CREDITS TO JORDAN AS OF DECE1\ER 31, 1971 Credit Percent Undis- iNiumber Year Borrower Purpose (US $ bursed million) 18 JO 1961 X.ngdom of Water 1.5 __ Jordan Supply I 43 JO 1963 Kingdom of Water 2.5 -- Jordan Supply II 44 JO 1963 Kingdom of Agricultural 3.0 -- Jordan Credit I 103 JO 1967 Kingdom of Agricultural 3.0 o.6 Jordan Credit II 262 JO 1971 Kingdom of Highway 6.0 5.9 Jordan TOTAL (less cancellations) 16.0 Of which has been repaid TOTAL now outstanding 16.0 Undisbursed 6.5  ANNEX II ~~~~~~~~~A - 11 JORDAN BASIC DATA West Bank East Bank All Jordan Area (sq km) 5,900 91,000 97,000 of which: Cultivated (sq km) 2,500 3,500 6,000 Irrigated (sq km) 70 230 300 Population (est. 1971) 900,000 1,400,000 2,300,0GO of wbich: Refugees 300,000 650,000 950,0c0 Average Annual Rate of Growth (1967-70) n.a. n.a. 3.2% Participation in Labor Force (1971) n.a. 20.1% n.a. Density (persons per sq. km) 119 19 25 All Jerdan Gross National Product 1969 1970 1971 GNP at factor cost (US $ millions) 595 552 565 Per Capita GNP (fc) (US$) n.a. n.a. 245 Average Annual Rate of Growth: (1959-66) 9.5% (1961-66) 8.o% (1967-71) 4.3% (1968-71) 5.3% (1960-66) 9.7% Sectoral Origin of GDP 1969 1970 1971 GDP at factor cost (US $ millions) 555 486 519 of which: Agriculture (%) 18 17 19 Commerce (%) 20 18 19 Government (%) 18 21 19 Industry (%) 17 16 15 Services (%) 27 28 28 Expenditure on GNP 1969 1970 1971 GNP at market prices (US $ millions) 654 577 624 of which: Private Consumption (%) 70 81 79 Public Consumption (%) 29 32 29 Gross Fixed Investment (%) 28 9 1: Resource Gap (-) (%) -33 -28 -30 Net Factor Income from Abroad (%) 6 6 7 Gross National Savings 1/ (%) 20 5 8 Central Government Operations 1969 1970 1971 Domestic Revenues (US$millions) 92 84 101 Fosreign Assistance (US$millions) 106 92 81 Ordinary Expenditure (US$millions) -182 -165 -168 Development Expenditure (US$millions) -50 -59 -56 1/ Including current transfers from abroad.  ANNEX II Page 2 Average Annual Rate of Growth At Oct. 31, 1967- 1968- 1969- Oct. 1970 Money, Credit and Prices 1971 1968 1969 1970 -1971 Noney Supply US$ 304m. 16.9% 9.4% 9.6% 4.4% Time and Saving Deposits US$ 73m. 10.6% 8.5% 4.6% 11.3% Credits to Private Sector US$ 122m. 3.9% 13.4% 0.3% -8.2% Amman Cost of Iiving Index 119.0 -0.3% 7.8% 6.8% 3.2% (1967=100) 3 Quarter Balance of Payments (US$millicns) 1969 1970 1971 Current Account Balance =9 of which: Goods -148 -149 -139 Services -30 17 9. Transfers 133 113 87 Commodity Concentratin ofExports (%) 1968 1969 1970 Phosphates 2 94.6 29.9 Tomatoes and Tomato Juice 18.6 16.7 16.8 Other Vegetables 12.1 13.3 1i.5 Fruits and Nuts 10.9 12.2 14.5 Reserves of the Central Bank (US$millions) Dec. 31, 1969 Dec. 31, 1970 Nov. 30. 19 Total Reserves 262.5 255.6 246.5 of which: Gold 29.6 27.9 27.9 SDR's -- 2.7 51 IMF Gold Tranche Position 4.0 5.8 5.8 Foreign Exchange 228.9 219.3 207.7 Reserves as mos. of imports at 69 levels 16.7 16.2 15.6 External Public Debt (as at end of 3rd Quarter 1971) Debt outstanding (US$millions) 142.2 of which: Undisbursed (US$mj11ions) 21.7 1970 1971 Debt Service (estimates) (US$thousands) 3,511 10,027 Debt Service Ratio: As percentage of Exports and Gross Invisibles I/ 2.8 8.5 As percentage of Gross Foreign Exchange Earnings 1/ 1.5 4.6 IDA Position (US$millions) Dec. 1966 Dec. 1970 Dec. 1971 Effective 8.5 10.0 16.o Disbursed 5.0 9.1 9.5 DFQ Position (US$millions) Dec. 1966 Dec. 1970 Dec. 1971 Quota 13.0 23.0- -73 = SDR Allocations -- 2.7 5.1 SDR Drawings -- -- Net Drawings -- -- 4.5 Exr'hange Rate 1966 1970 1971 Jordanian Dinar 1.00 = US$ 278 0 =5 US $1.00 = JDts 0.357 0.357 0.357 1/ Preliminary Estimates  ANNEX II Page 3 Social and Related Indicators (1970 unless otherwise indicated) Average Age of Population, 1971 (years) 20-24 Children under 15, 1971 (as percentage of total 47 population) Literacy Rate, 1965 (as percentage of adults) 55 Primary Enrollment Ratio 1/ 103 Primary Students per Teacher 40 Secondary Enrollment Ratio 54 Secondary Students per Teacher (Full-Time Equiv.) 25 Higher Enrollment Ratio 3.7 Percentage of Secondary Enrollment in Vocational Schools 4 Percentage of Higher Enrollment in Agr. and Eng. 5 Higher Graduates (per 100,000 population) 25 Average Dropout Rate in Grades 6-12 (percent. orig. class) 53 Population per Hospital Bed 2/ 1,025 Physicians per 100,000 population 2/ 7.1 Nurses per 100,000 population 2/ 11.2 Midwives per 100,000 populationi 2/ 3.2 labor Force, 1971 (as percentage of population) 20.1 Percentage of labor Force Employed in: Agriculture 32.9 Mining 11.8 Coamerce 6.6 Services 114.2 Unspecified (including Army) 22.6 Seeking work 11.9 Registered Divorces (as percent. of marriages 12.7 during year) 2/ Literate Males (as percent. of males married during year) 2/ 89.5 Literate Females (as percent. of females married during year) 2/ 59.2 Cases Decided as percent. of Cases Filed: In Magistrate's Court 2/ 99 4 In Courts of First Instance 2/ 92.2 In Courts of Appeal 2/ 94.7 Motor Car Accidents (as percent. of Vehicles Regist.) 2/ 11.7 Average Death per 100 Accidents 2/ 7.3 Average Injured per 100 Accidents 2/ 77.1 Telephones (per 1,000 population) 2/ 10.8 1/ Including Overaged Students 7/ East Bank Data Only January 13, 1972  ANNEX III JCRDAN FIRST EDUCATION PROJECT DEVELOPMENT CREDIT AND PROJECT SUMMARY Borrower: Jordan Amount: US $5.4 million equivalent. The proposed credit would cover the project's estimated foreign ex- change component (excluding technical assistance financing to be provided by UNDP and the British Overseas Development Administration (CDA). Terms and Conditions: Payable in 50 years with a ten-year grace period through semi-annual installments of 1 of 1 per- cent from May 1, 1982 through November 1, 1991 and of 1