Nepal - Technical Education Project

Document of The World Bank FILE C Op & FOR OFFICIAL USE ONLY Report No. 1772b-NEP NEPAL STAFF APPRAISAL REPORT FOR A TECHNICAL EDUCATION PROJECT February 15, 1978 Projects Department East Asia and Pacific Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Rupee US$1 = NRs 12.50 NRs 1 = US$0.08 NRs 1 million = US$80,000 WEIGHTS AND MEASURES 1 m = 1.09 yd 1 sq m 10.76 sq ft 1 sq km = 0.38 sq mi 1 ha = 2.47 acres ABBREVIATIONS ADB - Asian Development Bank GDP - Gross Domestic Product IOE - Institute of Engineering MOE - Ministry of Education NESP - National Education System Plan NPC - National Planning Commission ODM - Ministry of Overseas Development, the United Kingdom SLC - School Leaving Certificate GOVERNMENT OF NEPAL FISCAL YEAR July 16 - July 15  FOR OFFICIAL USE ONLY NEPAL APPRAISAL OF A TECHNICAL EDUCATION PROJECT TABLE OF CONTENTS Page No. BASIC DATA 1. DEVELOPMENT STRATEGY AND MANPOWER IMPLICATIONS . . . . . . . . . 1 Development Pattern and Strategy . . . . . . . . . . . . . . 1 Implications for Technical Education . . . . . . . . . . . 3 2. THE EDUCATION SYSTEM . . . . . . . . . . . . . . . . . . . . . . 7 Overview of Educational Development . . . . . . . . . . . . 7 The Education System by Level . . . . . . . . . . . . . . . 10 Technical Training under the Institute of Engineering . . . 14 Investment Priorities in Education . . . . . . . . . . . . . 18 3. THE PROJECT . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Objectives and Scope . . . . . . . . . . . . . . . . . . . . 21 The Institute of Engineering . . . . . . . . . . . . . . . . 21 Monitoring and Evaluation . . . . . . . . . . . . . . . . . 28 Related Studies . . . . . . . . . . . . . . . . . . . . . . 29 4. PROJECT COST, FINANCING, IMPLEMENTATION AND DISBURSEMENTS . . . 29 Cost Estimates ..29 Project Financing . . . . . . . . . . . . . . . . . . . . . 31 Project Implementation ..33 Disbursements . . . . . . . . . . . . . . . . . . . . . . . 34 5. BENEFITS AND RISKS ..36 Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 6. AGREEMENTS REACHED AND RECOMMENDATIONS . . . . . . . . . . . . . 37, This report is based on the findings of missions to Nepal during June and October/November 1977 composed of Messrs. M.H. You (Economist and Leader), S.Z. Sung (Technical Educator), and A.S. Naimie (Architect). This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  -2- ANNEXES 1. Technical Assistance Programs 2. Comparative Education Indicators 3. Summary of Estimated Project Costs 4. List of Tables and Charts in the Report 5. Selected Documents and Data Available in the Project File MAP Location of Project Institution  NEPAL: TECHNICAL EDUCATION PROJECT BASIC DATA (1976) Population Estimated total (mid-1975) 12.6 million Annual growth rate (1965-75) 2.2% Average density 90 per sq km Literacy rate (1977) 19.2% Enrollments (1976/77) Number % of relative age group Primary (Grades 1-3) 644,000 59 Lower secondary (Grades 4-7) 174,000 14 Secondary (Grades 8-10) 67,000 10 Higher (Grades 11-16) /1 21,400 0.8 Education Expenditure As a percentage of GDP 1.1 As a percentage of the total government expenditure 10.0 Recurrent cost per student (US$) Primary 9 Secondary 22 Higher 117 /1 Higher education is divided into the following three segments: certificate (Grades 11-12); diploma (Grades 13-14); and degree (Grades 15-16), each with a minimum of two years.   NEPAL APPRAISAL OF A TECHNICAL EDUCATION PROJECT 1. DEVELOPMENT STRATEGY AND MANPOWER IMPLICATIONS Development Pattern and Strategy 1.01 Nepal's development efforts to date have been directed toward the establishment of basic infrastructure (e.g., irrigation, power, transportation, communications) and supporting institutions (e.g., agricultural extension and research, financial institutions, trading corporations, national construction company, industrial estates). Implementation of development projects has been only partly achieved, as is evident from Table 1.1. The Nepalese attribute these shortfalls in plan achievement essentially to three factors: (a) difficult topographical conditions with which civil engineers must contend; (b) unreliable supplies of basic raw materials and building materials; and (c) a shortage of qualified administrative, supervisory, and technical manpower, particularly civil engineers, at all levels. In addition, the targets were ambitious and the readiness of projects for implementation during the plan period was overestimated. Table 1.1: TARGETS AND ACHIEVEMENTS OF MAJOR DEVELOPMENT PROJECTS DURING THE FOURTH PLAN (1971-75) Plan Achievement Project Unit target Achievement rate (%) Additional irrigation facilities ha 183,630 54,420 30 Additional land reclamation ha 25,000 14,100 56 Family resettlement no. 8,000 5,240 65 Road construction km 1,830 1,190 65 Suspension bridges no. 27 6 22 Power generation kw 40,300 31,300 78 Drinking water per day gal 7.4 M 4.2 M 57 Source: IDA, The Review of the Economic Situation of Nepal, July 22, 1976, Report No. 1180-NEP. 1.02 These implementation rates are not notably lower than those of most developing countries, but in the past decade, Nepal's GDP grew at an annual rate of only 2.4% in real terms, which is only slightly above the annual growth rate of population (2.2%). The Fourth Plan (1971-75) achieved only a 2.2% annual growth in GDP. The current (Fifth) plan (1976-80) aims at a GDP growth rate of 4-5% annually (minimum and maximum plan) and expects significant economic benefits from past expansion of infrastructure.  -2- 1.03 The Fifth Plan's public investment targets are compared with actual investment under the Fourth Plan in Table 1.2. Table 1.2: SECTORAL ALLOCATION OF PUBLIC INVESTMENT Fourth Plan Fifth Plan (1976-80) (1971-75) Minimum Maximum (NRs million) (%) (NRs million) (%) (NRs million) (%) Agriculture 663 25.8 1,840 29.8 2,279 30.2 Industry & power 470 18.3 1,380 22.4 1,506 20.0 Transport & communication 1,050 40.9 1,433 23.2 1,990 26.4 Social services 387 15.0 1,517 24.6 1,770 23.4 Total 2,570 100.0 6,170 100.0 7,545 100.0 Source: IDA, The Review of the Economic Situation of Nepal, July 22, 1976, Report No. 1180-NEP. The targets under the Fifth Plan show a shift in emphasis from transportation and communication to agriculture, industry, and the social sectors, i.e., from physical to social infrastructure and to projects with immediate benefits in agriculture and industry. More emphasis is placed on: (a) small irrigation schemes with quick returns that would increase grain production; and (b) grad- ual development of small-scale manufacturing industries, including handicraft and cottage industries which already contribute about 7% to GDP and employ about 15% of the labor force. Some major targets of development projects under the maximum plan are shown below. Table 1.3: MAJOR TARGETS OF DEVELOPMENT PROJECTS FOR THE FIFTH PLAN AND ACTUAL ACHIEVEMENTS DURING THE FOURTH PLAN Fourth Plan Fifth Plan % Project Unit achievements target Increase Additional irrigation facilities ha 54,420 146,000 168 Additional land reclamation ha 14,100 52,150 270 Family resettlement no. 5,240 47,500 806 Road construction km 1,190 1,590 34 Suspension bridges no. 6 67 1,017 Power generation kw 31,300 58,945 88 Drinking water per day gal 4.2 M 14.6 M 248 Sources: National Planning Commission (NPC), the Fifth Plan (1975-80) in Brief, 1975, for the Fifth Plan targets, and the Fourth Plan achievements from Table 1.1.  - 3- The physical targets of the Fifth Plan are ambitious in view of actual achievements during the Fourth Plan. To achieve them the Government must, inter alia, introduce measures to alleviate the technical manpower constraints which were an important factor contributing to underimplementation of the Fourth Plan (para. 1.01). Implications for Technical Education 1.04 The employment structure by sector in 1971, was as follows: Table 1.4: ECONOMICALLY ACTIVE POPULATION CLASSIFIED BY SECTOR, 1971 Industry Persons engaged Percentage distribution ('000) Agriculture 4,579 94.4 Services 138 2.8 Trade and commerce 67 1.4 Manufacturing 52 1.1 Transport 10 0.2 Construction 5 0.1 Power 2 - Total 4,853 100.0 Source: IDA, The Review of the Economic Situation of Nepal, July 22, 1976, Report No. 1180-NEP. Only 0.5% of the labor force, or 25,000 persons, were categorized as "pro- fessional, technical and related workers," of whom 23,000 were engaged in the services sector (government, community or personal). 1.05 There are indicators of deficiencies in particular skills. The shortage of senior engineering technicians is evident from the 80 vacancies in the major government departments concerned with development projects (see Table 1.5). These posts comprise: (a) District Engineers, who are given the responsibility for design and supervision of local development works (e.g. construction and maintenance of district roads, irrigation projects, etc.) and for advising Local Development Boards on engineering aspects of a development project; (b) Road Section Engineers, who are responsible for the upkeep and maintenance of national roads (about 1,800 km of paved and gravel roads);  - 4 - (c) Site (Road and Building) Supervision Engineers, employed at the construction site; and (d) Headquarters Engineers, who are mainly involved with planning of physical facilities ranging from individual building units to town or area planning; their work also includes estimating costs and preparation of tender documents, and preparatory work for implementation of construction wDrk. Almost all senior technicians, about 780 in 1975, were trained abroad, since diploma courses are not available locally. Table 1.5: SENIOR TECHNICIAN /a POSTS IN CIVIL ENGINEERING (August 1976) No. of posts /b Agency Established Filled Vacant Ministry of Works and Transport 383 353 30 Department of Roads 95 80 15 Department of Housing, Planning and Physical Facilities 220 208 12 Department of Civil Aviation 68 65 3 Ministry of Home and Panchayat 18 10 8 Department of Local Development 18 10 8 Ministry of Water and Power 160 139 21 Department of Water Supply 40 38 2 Department of Electricity 116 98 18 Other 4 3 1 Ministry of Land Reform and Agriculture 111 90 21 Department of Irrigation 111 90 21 Total 672 592 80 /a Junior technicians (certificate level) are employed in various activities that require less specialization, mainly assisting senior technicians. Junior technicians working under the supervision of the District Engineers have elementary skill training covering a wide range, including construction work, metal work, electrical installations, rural sociology, and leadership training. Small road sections are assigned to "overseers" (certificate holders) who report actual damage or potential problem areas to the Road Section Engineer. /b Figures do not include all government departments employing senior civil engineers. Source: The Ministry of Works ancl Transport.  1.06 In developing its estimates of technical manpower requirements for the whole economy during the Fifth Plan, the National Planning Commission (NPC) adopted a straightforward "project approach." Each government department submitted the number of unfilled, authorized positions at the end of the Fourth Plan, and an estimate of incremental manpower needs to implement the investment program of the Fifth Plan. These estimates were accepted at face value by the NPC and then aggregated. However, the NPC projections are considered unrealistic since it is unlikely that all the investment programs will be fully implemented./l Furthermore, the incremental manpower estimates submitted by government departments are believed to be exaggerated due to their previous experience in having their estimates reduced by the Ministry of Finance. In consequence of this overestimation and the arbitrary nature of the private sector estimates, (an additional 10% of senior technicians and 20% of junior technicians over the estimated needs in the public sector), the NPC estimates have been factored by 30% to better reflect effective employment opportunities for senior and junior technicians (see Table 1.6). Table 1.6: ADJUSTED TECHNICIAN MANPOWER REQUIREMENTS FOR THE FIFTH PLAN (1976-1980) Total Actual manpower Adjusted Estimated additional at end of additional needs in require- Fourth Plan Deficit in requirements private ments (1975) Fourth Plan Fifth Plan sector (2)+(3)+(4) Category (1) (2)/a (3)/b (4) (5) No. % Senior technicians (diploma) 780 130 17 870 100 1,100 of which: Civil engineers 480 90 19 670 70 830 Others 300 40 13 200 30 270 Junior technicians (certificate) 1,440 250 17 2,020 440 2,710 /a Difference between budgeted posts and those actually filled at the end of the Fourth Plan. /b The NPC estimates are discounted by 30% for the reasons given in para. 1.06 and include a 2% annual attrition rate applied to 1975 manpower figures (Column 1), as well as a 5% adjustment to allow for nonparticipation by trained people. Sources: NPC and appraisal mission estimates. /1 The Bank economic mission that visited Nepal in 1976 estimated that growth during the Fifth Plan will be between 3.2 and 3.7% a year, which is about 70% of the targeted growth rate. (See the Review of the Economic Situation of Nepal, July 22, 1976, p. 29, Report No. 1180-NEP.)  -6- 1.07 During the Fifth Plan, senior technician positions will continue to be filled by students returning irom abroad who were awarded scholarships through either bilateral aid or government resources. Table 1.7: ADJUSTED AGGREGATE DEMAND AND SUPPLY OF TECHNICIAN MANPOWER FOR THE FIFTH PLAN (1976-80) Adjusted total demand to be Total Supply trained during Overseas Local Deficit Annual Fifth Plan training training (1)-(2)-(3) deficit Category (1) (2) (3) (4) (5) Senior technicians (diploma) 1,100 500 0 600 120 of which Civil engineers 830 370 0 460 90 Others 270 130 0 140 30 Junior technicians (certificate) 2,710 0 1,370 1,340 270 Sources: NPC and appraisal miss:Lon estimates. The estimated number of returnees represents only 45% of the projected needs, and the overall trend (Table 1.8) in the number of places available for Nepalese diploma students at foreign institutions (mainly in India) is declining and fluctuates considerably from year to year. Therefore, the Government cannot depend on a sufficient number of students being trained abroad each year. Table 1.8: ENGINEERING FELLOWSHIPS ABROAD 1970/ 1971/ 1972/ 1973/ 1974/ 1975/ 1976/ 71 72 73 74 75 76 77 Total 72 106 53 116 108 87 56 Out of which: Civil engineers 38 66 7 46 46 35 17 Mechanical engineers 11 15 6 21 16 13 14 Electrical engineers 13 11 3 12 11 16 6 Other engineers 10 14 37 37 35 23 19 Source: NPC.  -7- Training outside Nepal is general in scope and not specifically related to Nepalese conditions and problems. Moreover it is difficult to assign engineers trained abroad to work outside the Kathmandu Valley. 1.08 The Government has not yet considered development plans and manpower requirements beyond the present Plan. In the absence of such projections, it would be reasonable to assume that the requirements for both senior and junior technicians during the Sixth Plan (1981-85) would be 20% higher than during the Fifth Plan. This increase (about 4% p.a.) is low in comparison with the 140% and 188% increases assumed for senior and junior technicians respectively during the Fifth Plan period. Table 1.9: AGGREGATE DEMAND AND SUPPLY OF TECHNICIANS FOR THE FIFTH AND SIXTH PLANS (1976-85) Total supply Training Category Demand Overseas Local Deficit (1) (2) (3) Senior technicians (diploma) 1,320 800 300 220 of which Civil engineers 1,000 600 300 100 Others 320 200 0 120 Junior technicians (certificate) 4,110 0 3,550 560 For employment (3,390) Diploma intake (720) Sources: NPC and appraisal mission estimates. 1.09 The planned establishment of diploma level courses would not produce graduates until the Sixth Plan; accordingly, annual deficits of senior technicians for the period 1976-85 are projected to be about 20. Without additional investment in diploma level training, the annual deficit would be about 50. The development of a reliable local technical training capacity is essential to ensure the availability of manpower to implement the Government's investment programs. 2. THE EDUCATION SYSTEM /1 Overview of Educational Development 2.01 The acute manpower shortages being experienced in technical fields reflect the historical neglect in developing Nepalese education. At the end of the Rana regime (1951), which opposed schooling of the general population, /1 See Chart I for Administrative Structure of the Education System and Chart 2 for Structure of the Education System.  - 8 - only 10,000 children were in school, less than 1% of the school age population. Fewer than 2% of the population were literate. From the early 1950s onwards, education has been expanding at a rapid rate, as shown in Table 2.1. The literate population has risen to 1.3 million, 19% of the population over six years of age in 1976. Primary school enrollment amounted to 59% of the relevant age group. In addition, the Tribhuvan University had a total of 21,400 students at the undergraduate level. Table 2.1: INDICATORS OF EDUCATIONAL PROGRESS /a Actual _ Projected Item 1951/52 1971/72 1976/77 1980/81 Primary: Enrollments 8,500 243,000 644,000 737,000 % of relevant age group < 1 25 59 64 % of females < 1 16 20 29 No. of teachers 640 18,700 20,800 24,800 % of teachers trained n.a. 27 39 60 No. of schools 320 7,300 8,800 9,500 Lower secondary: Enrollments /b 131,000 189,000 369,000 % of relevant age group 11 14 26 % of females 16 18 19 No. of teachers 3,050 7,860 11,100 % of teachers trained 13 38 50 No. of schools 610 2,300 3,500 Upper secondary: Enrollments 1,600 41,000 74,100 147,400 % of relevant age group 0.15 6 10 19 % of females n.a. 18 17 18 No. of teachers 120 2,830 3,440 4,340 % of teachers trained n.a. 18 50 55 No. of schools 11 480 520 650 Higher education: Enrollments 250 17,800 21,400 24,300 Education expenditure % of GDP n.a. 0.6 1.1 1.5 % of government budget n.a. 7.1 10.0 13.0 /a See Chart 3 for Education Pyramid, 1976. /b There was no enrollment at lower secondary level in 1951/52. Grades 4 and 5 enrollments were included in the primary level. Grades 6 and 7 enrollments were included in the upper secondary level. Source: Ministry of Education (MOE), Educational Programs in the Fifth Plan and appraisal mission estimates.  -9- 2.02 By the early 1970s, it had- become clear that this rapidly expanding education system had a number of serious shortcomings. The participation of women in education was lagging. The literacy rate of females was 4% as compared to 24% for males; the primary enrollment ratio for girls was 9% as compared to about 40% for boys. More than two thirds of the teaching force were untrained. The content of education tended to be too theoretical. In higher education almost all enrollments were concentrated in the fields of liberal arts and humanities; little attention was being paid to training in the kinds of technical skills most needed for growth and development. 2.03 In 1971, the Government introduced fundamental changes to help over- come these deficiencies in its education system. The Government adopted the New Education System Plan (NESP) to enlarge access to basic education and relate education more closely to the needs of development. The NESP reduced the length of primary education from five to three years so that minimum learning skills could be provided to greater numbers of children. Secondary education was divided into two levels: lower secondary (Grades 4-7) for 40% of the total number of students enrolled in primary schools; and upper secondary (Grades 8-10) for 40% of the total number of students enrolled in lower secondary. Under the reform, more resources were made available for teacher training. A major thrust of the NESP was to reorient education away from academic and theoretical subjects towards practical activities. Compulsory vocational courses were introduced in all upper secondary schools, ranging from 20% of instruction time in general upper secondary schools (404 schools) to 40% in vocational schools (116 schools). All post-secondary education was assigned to Tribhuvan University and was divided into the following three segments: certificate (Grades 11-12); diploma (Grades 13-14); and degree (Grades 15-16), each with a minimum of two years. Institutes under the university became responsible for related training at precertificate levels. Skill training outside the formal education system was largely consolidated under the technical institutes of the university. Specifically, the Institute of Engineering (IOE) became responsible for providing some, and supervising nearly all, skilled worker training. Another major characteristic of the reform was decentralization of educational administration to 4 regional directorates and 75 district education offices. In addition, government policy included steps to reduce the concentration of higher education in Kathmandu by opening branch campuses of higher institutes in the Eastern, Western, and Far Western Regions. The NESP also increased the responsibility of the Government for educational financing. Teachers' salaries were increased and the Government assumed payment of teachers' salaries, an expense previously borne by local communities, in the following proportions: primary, 100%; lower secondary, 75%; upper secondary, 50%. Curricula have been revised at all levels. 2.04 The structural and administrative aspects of the NESP have been largely implemented, but the quantitative expansion is only beginning to gain momentum. It will take several years for the planned measures to affect the deeply rooted educational problems. According to the NESP, two thirds of the 6-8 age group were to be enrolled by 1976, compared with  - 10 - 25% in 1971. The actual figure was about 59%, ranging from 38% in remote districts to 70% in Kathmandu, and from 20% for girls to about 90% for boys. The auality of education is stilL adversely affected by the scarcity of text- books and trained teachers. Only 30-40% of the students enrolled in Grade 10 pass the final examination for the School Leaving Certificate (SLC). The financial priorities of the NESP increased the low proportion of public exDenditures devoted to education from about 7% to 10%. These resources, however, tend not to be used eff-Lciently, as evidenced by high dropout rates: less than 30% of those entering primary schools complete the cycle. WIhile expenditures on technical/vocational education have increased, urgent needs for senior and junior technical manpower are still unmet. The Education Svstem by Level 2.05 Primary Education. The shortening of primary education from five to three years has reduced the cost of primary education and therefore has made the achievement of universal primary schooling more feasible. Primary enrollments grew by 165% during 1971-76 from 243,000 to 644,000, reaching about 60% of the total age group and exceeding the target by about 50,000 students. This achievement is significant. The percentage of girl students also increased from 16% in 1971 to 20% in 1976, but is still low by international standards. Regional enrollment disparities also remained pronounced, ranging from 38% in the Far West to 70% in Kathmandu. 2.06 There is some doubt that permanent numeracy and literacy can be achieved in just three years of schooling, particularly under poor con- ditions and in an environment predominantly conditioned to illiteracy. TUnless numeracy and literacy skills achieved through primary education are reinforced by use they are easily lost. Moreover, despite enrollment increases, dropout rates have been exceptionally high: about 65% between the first two grades and about 22% between Grades 2 and 3. Consequently, less than 30% of initial entrants to primary schools complete the three- year cycle. Possible causes of dropouts are opportunity costs (the need of child labor for parents), direct costs to parents and in-school factors such as noor facilities, lack of training materials /1 and inadequately trained teachers /2 unable to motivate students and parents. Extended coverage at the primary level would be facilitated by a policy directed at increasing female enrollments and overall retention rates. Such a policy is made difficult by the lack of research into the causes and poss- ible solutions to these two probhLems. 2.07 Secondary Education. The target enrollment in the NESP was 237,000 for lower secondary (Grades 4-7) and 118,000 for upper secondary (Grades 8-10). At the end of the Fourth Plan period in 1975, 73% of the /1 Textbooks are in short supply although the policy of the Government is to distribute them free in 18 poor districts and to needy boys and all girls in remaining districts.. /2 Only about 40% of primary teachers are trained to the SLC level.  - 11 - lower secondary and 57% of the upper secondary target were achieved. Even though the target was not achieved, the enrollment ratio of the relevant age group has improved from 11% to 14% in lower secondary and from 6% to 10% in upper secondary schools during the NESP period. There has been an increase in girls' enrollment in secondary education, but their enrollment ratio is still substantially less than that of boys: Table 2.2: ENROLLMENT RATIO BY SEX Girls' enrollment Boys' enrollment ratio (%) ratio (%) Level 1970 1976 1976 Lower secondary 4 5 22 Upper secondary 2 4 15 Combined 3 5 19 Source: MOE. Substantial disparity also exists by region, particularly the Far Western Region at the upper secondary level, as follows: Table 2.3: SECONDARY ENROLLMENT RATIO BY REGION Enrollment ratio (%) 1975/76 Region Lower Upper Eastern 15 10 Central 16 13 Western 16 9 Far Western 10 4 Source: MOE. 2.08 A major aim of the NESP was to reorient the content of education along practical lines. Prevocational subjects,/l amounting to 10% of instruc- tional time, were introduced at the lower secondary level to improve the atti- tudes of students to manual work. Vocational subjects are taught in upper /1 In agriculture, bamboo, paper and pottery, and cooking.  - 12 - secondary schools (20% in general high schools, 40% in vocational high schools, and 20% in Sanskrit high schools). Five groups of vocational subjects are given in upper secondary schools: (a) agriculture - agronomy, horticulture, animal husbandry, and poultry streams; (b) secretarial science - typing and shorthand, office management, and bookkeeping streams; (c) home service; (d) industrial arts - furniture making, electrical work, metalwork, bricklaying and building construction, and basketry streams; and (e) education. Among the five vocational streams the most successful have been the agricultural, secretarial science, and education groups. The graduates from the agricultural group are readily accepted as village extension workers; those from the secre- tarial science group as typists, clerks, and bookkeepers; and most graduates from the education group as primary school teachers. The home science and industrial arts groups are not popular among students because of poor employ- ment prospects. Because of poor workshop facilities, equipment and inadequately trained teachers, moreover, the quality of vocational training programs has suffered. Financial constraints and shortage of trained staff have limited the total upper secondary enrollment in vocational streams to 22%, well below the 60% target set in the Fifth Plan. 2.09 The key problem in secondary education, particularly at the upper level, is low achievement rates among students. Although 60% of entering students tend to remain in school for the secondary cycle (compared with only 30% for the primary cycle), they perform poorly on the terminal examination. Over the last three years only 30-40% of Grade 10 students passed the exam- ination for the SLC. Even students who did obtain the SLC were generally poorly prepared for higher education and often required additional remedial work. The causes of low academic achievement are cumulative and reflect the traditional lack of facilities, teaching materials and poorly trained staff. Substantial improvements have been made under the NESP to increase teachers' qualifications./l The proportion of trained lower secondary teachers almost tripled from 13% in 1971 to 38% in 1976, and over the same period increased from 18% to 50% at the upper level. The effects of these increases have not yet been reflected in examination results. 2.10 Higher Education. Under the NESP all post-secondary education was assigned to Tribhuvan University (Chart No. 4) and was divided into three principal segments: certificate, diploma and degree, each with a minimum of two years (para. 2.03). In practice, however, the poor academic background of incoming students means that courses at certificate level are often extended by one semester and by one year at diploma level for remedial training. 2.11 Tribhuvan University is composed of five general and six technical institutes, each devoted to studies in a single field. The NESP policy to emphasize study in technical fields has been successfully initiated over the past five years. Between 1971 and 1976 there has been a shift in enrollments away from the general and education institutes toward the other technical institutes as shown in Table 2.4. /1 Trained lower secondary school teachers are those who have completed the certificate course and trained upper secondary school teachers are those who have completed the diploma course at the Institute of Education or its equivalent.  - 13 - Table 2.4: ENROLLMENT AND OUTPUT OF TRIBHUVAN UNIVERSITY (All levels) Enrollment (rounded) Output Institute 1973/74 1974/75 1975/76 1976/77 1974 1975 1976 General 1. Humanities 7,200 8,400 8,900 6,900 1,070 1,750 2. Science 2,500 2,600 2,800 2,100 320 370 3. Law 150 300 500 700 160 130 4. Sanskrit 250 300 300 300 60 210 5. Commerce 3,100 3,600 3,400 3,200 1,250 670 Subtotal 13,200 15,200 15,900 13,200 3,860 3,130 n.a. Technical 6. Engineering /a 650 750 700 1,300 90 280 200 7. Agriculture & animal science 500 400 400 500 100 50 180 8. Forestry 150 200 200 150 90 80 80 9. Education 4,250 4,200 5,300 4,600 2,960 1,910 1,230 10. Medicine 800 100 1,300 1,650 40 110 370 11. Applied science & technology 50 150 200 0 0 40 20 Subtotal 6,400 6.800 8,100 8,200 3.280 2,470 2,080 Total 19,600 22,000 24,000 21,400 6,140 5,600 n.a. /a Enrollment figures for 1975/76 and 1976/77 provided by the Planning Unit do not reconcile with information received from IOE. The data provided by IOE appear to be accurate. Source: Tribhuvan University Planning Unit. 2.12 As can be seen in Table 2.5, government policy to spread university education more evenly throughout Nepal has led to the establishment of 66 branch campuses.  - 14 - Table 2.5: REGIONAL DISTRIBUTION OF UNIVERSITY CAMPUSES AND ENROLLMENT BY LEVEL, 1976/77 No. of Enrollment by level (rounded) Region campuses Basic /a Certificate Diploma Degree Total % Eastern 11 160 1,990 450 40 2,640 12 Central 38 570 8,950 4,650 1,180 15,350 72 Western 8 150 1,460 370 - 1,980 9 Far Western 9 510 860 100 4 1,470 7 Total 66 1,390 13,260 5,570 1,220 21,440 100 /a Basic courses are precertificate. Source: Tribhuvan University Planning Unit. The Central Region had 72% of the 1976/77 enrollment, and the Far Western Region only 7%. Some campuses (the smallest has only 46 students) should be consolidated for reasons of economy and efficiency but this seems unlikely in view of political pressure for building more branch campuses. As an alternative to further regional expansion, admission preferences for all the university's campuses are given to students who apply from outside the Kathmandu Valley, supported by scholarships and loan schemes. 2.13 A key problem in higher education is the poor academic background of entering students (para. 2.09). There has been a surfeit of applicants with SLCs for admission to higher education, about 11,000 in 1977 for 5,900 places, but this competition has not led to higher admission standards because of the uniformly low quality of preparation of incoming students. In addition, there is a need in higher education to continue and accelerate the redirection of enrollments toward technical fields to satisfy important, but unmet needs, particularly for technicians (para. 1.02). Technical Training under the Institute of Engineering (IOE) 2.14 Under the NESP, the IOE, established in 1971, became responsible for providing or supervising technical/vocational training at all levels. For example, in 1972, the Technical Training Section of the Department of Cottage Industries was transferred to the IOE. In addition to its training at the certificate level, the IOE also assumed administrative control of the few institutions in Nepal giving skilled worker training. 2.15 Certificate Level. The principal activity of the IOE has been training of junior technicians at certificate level. The bulk of this certificate training has been concentrated in its central campus at Pulchowk, near Kathmandu. The certificate level training at IOE includes courses in civil and electrical engineering and architectural drafting. Enrollments in 1972 and 1977 and estimated outputs are shown in Table 2.6.  - 15 - Table 2.6: INSTITUTE OF ENGINEERING ENROLLMENTS AND OUTPUT BY YEAR AND FIELD OF STUDY (Certificate level) 1972 1977 Subject Enrollment Output Enrollment Output/a Civil engineering 144 47 756 90 - Roads - - (253) (45) - Water supply - (253) (35) - Building constr. - - (250) (10) Electrical engineering - - 80 10 Electronics - - 39 - Architectural drafting - - 119 15 Other (air conditioning- refrigeration) - - 16 - Total 144 47 1,010 lb 115 /a Output is from the summer examinations only. /b See footnote /a, Table 2.4. Source: IOE. To meet pressing manpower needs for implementation of the public investment programs, enrollments were sharply increased from 470 in 1976 to 1,010 in 1977. Courses are open to both male and female students. However, female students are few in number in engineering courses, but are attracted mainly to the architectural drafting course (about 80 students). 2.16 Excellent employment prospects for graduates have contributed to strong competition for admission. In 1977, 4,000 SLC-holders sought admis- sion for 540 available places./l Still, the academic preparation of students admitted was weak in mathematics, science and language. This weak preparation is indicated in low examination pass rates. An average of only 37% of the students passed the final examination in 1976. The average was 14% in one subject for four classes selected at random; for one class of students, all from remote areas, the pass rate was zero. A concerted effort is needed to improve the quality of student performance, particularly in view of the substantial enrollment expansion between 1976 and 1977. Remedial courses in mathematics, science and language were begun in the 1977 winter semester for students with inadequate preparation. /1 About 270 each for summer and winter admissions.  - 16 - 2.17 The curricula for the three existing certificate courses, civil engineering, architectural drafting and electrical engineering, do not include adequate laboratory work content. Curricula for the other two existing certi- ficate courses, radio and electronics, and air conditioning and refrigeration, do not include adequate workshop practice (see Table 2.7). Consequently, the graduates lack the skills required to perform the jobs properly whether employed for development projects or in industry. About one sixth of the civil engineering course should be devoted to laboratory work (e.g. materials testing, hydraulics and soil mechanics). The workshop practice content should be tripled for the radio and electronics course and doubled for the air conditioning and refrigeration course. Table 2.7: PRESENT 'CURRICULA IN CERTIFICATE COURSES Number of Periods During the Four-semester Course & Percentage Drawing Classroom Laboratory Workshop and field Total Name of course No. % No. % No. % No. % No. % Civil engineering 100 60 - - 36 21 32 19 168 100 Architectural drafting 82 49 - - 14 8 72 43 168 100 Electrical engineering 100 60 8 4 40 24 20 12 168 100 Radio and electronics 113 67 34 20 6 4 15 9 168 100 Other 99 59 39 23 14 8 16 10 168 100 2.18 The lack of laboratory and practical work in the teaching program is a reflection of the limited facilities available on the Pulchowk Campus. While the Pulchowk Campus has 40 classrooms/drawing offices for the 1,000 students, there are only 9 workshops and 4 laboratories, all poorly equipped, compared with the 10 workshops and 22 laboratories needed for a teaching program with about 45% of instruction time devoted to practical subjects for the diploma course and about 55% for the certificate courses. Present workshops/labora- tories also lack appropriately trained staff. 2.19 Staff of the IOE have been adequate in numbers for the certificate level courses. The teaching staff of the Pulchowk Campus has increased from 27 in 1972 (a student:teacher ratio of 5:1) to 51 in 1975 and 85 in 1977 (12:1). Certificate level teacher turnover has been insignificant because the IOE salary scale is consisten,t with that of the main employer of engineers, the Government. About 30% of the teaching staff have postgraduate degrees  - 17 - and 30% graduate (i.e. bachelors) degrees. However, only 11% of the teaching staff have ever had work experience (other than teaching) in the field of orientation. This limits their ability to focus classroom instruction on practical problems. Almost all graduate staff for engineering subjects have been trained abroad, mainly in the USSR, India and Europe. The diversity of their educational backgrounds makes it difficult to achieve a consistent and appropriate teaching program related to Nepalese conditions. 2.20 Trade and Semiskill Training. One clear reason for dependence on foreign semiskilled workers in Nepal has been the limited skill training capacity within the country. There are four principal centers for training skilled workers in Nepal, as follows: Table 2.8: TRADE TRAINING - ENROLLMENT AND OUTPUT (1976/77) Enrollment Center Trades taught (2-year course) Annual output Thapathali, IOE Mechanical, electrical 400 /a 160 Balaju Training Center Mechanics 20 10 Butwal Training Center Mech., elec., carpentry 30 10 Biratnagar Training Center /b Mechanics 40 20 Total 490 200 /a On double shift and larger class size basis. /b Dilapidated. Sources: MOE and IOE. In addition, the Department of Cottage and Village Industries has four training centers enrolling about 275 trainees in a one-year course, some in mechanical and electrical subjects and some in carpentry, but mostly in crafts. Altogether the annual output of skilled workers in Nepal is probably less than 300. 2.21 Trade training faces difficult educational, social and administrative problems in Nepal. Persons who are educationally qualified to undergo skill training (i.e., those with upper secondary education) still represent an elite group and are unlikely to take up manual occupations. The Thapathali Training Institute - which trains upper secondary school graduates in mechanical and electrical- trades, has experienced a 65% dropout rate despite apparent high quality of training. The principal cause of dropout is that students do not like manual work. Dropout previously was almost nil among entrants without upper secondary education, but academic difficulties were encountered because of inadequate educational background.  - 18 - 2.22 The administrative arrangements for skill training envisaged under the NESP have not worked well. The IOE has tended to concentrate on training at certificate level and to neglect the training of skilled workers. During the past five years when skill training was administered by the IOE no new skill training centers were opened and training capacity has not increased. The present total enrollment in skill training is low, even for Nepal's level of development. 2.23 Aware of this problem, the Government has decided to transfer the responsibility for skill training from the IOE to a National Vocational Training Council,/1 estabished in 1977 (para. 2.14). This seems a realistic step which in the long run will permit the IOE to concentrate on post-secondary training. The Council is responsible for rationalizing and developing programs for trade training. As a result, the Department of Cottage Industries resumed its control over rural skill training and the Department of Labor over two vocational training centers. Its work would start with a comprehensive study of skill requirements and their training implications. There is an urgent need to prepare a plan for nonfcrmal skill training and to build up an admin- istrative structure capable of managing such training. 2.24 Nonformal skill training has been offered to rural families by the Department of Cottage and Village Industries since 1966. There are ten centers now, four for women and six for men, with a total training capacity of about 1,200. Courses offered are knitting and sewing, cotton weaving, carpentry, mechanical fitting, and electrical fitting. The courses last from three days to six months. The training is free and some financial assistance is available to graduates to enable them to practice their acquired skills. Nonfarm rural skill training programs have not yet been developed. The development of cottage industries in Nepal seems a viable means of increasing nonfarm incomes of rural families, but no feasibility study or definite plan is yet available to expand this type of training. Investment Priorities in Education 2.25 Priorities. There are three broad areas of investment priorities in the education sector: (a) expansion of basic education, especially for girls, which depends on finding ways of overcoming obstacles to increased enrollment (i.e., high dropout rates) and to reinforce literacy skills learned in school; (b) improvement in the quality of instruction, particularly at upper secondary level and junior technician level. In the short run, remedial teaching programs are necessary. In the long run, better teacher training and textbooks will effect cumulative improvements; and /1 Comprised of representatives of the NPC (as Chairman), MOE, IOE, Depart- ments of Industry, Cottage and Village Industries, and Labor, Public Service Commission, Federation of Chamber and Industry, and Central Committee Member of the Back-to-Village National Campaign.  - 19 - (c) expansion of technical training to provide manpower skills needed for development. This includes particularly senior technicians in civil engineering, trade training and simple manual skills for village development projects. 2.26 Plans. The above priorities for the education sector are evident in the Fifth Plan. Of the nine educational policies in the Fifth Plan, the first four are: (a) emphasis on vocational education to overcome the shortage of technical manpower; (b) provision of facilities for technical education; (c) expanded and free primary education; and (d) reorientation of higher education to ensure the relevance of training to employment needs. The target set in the Fifth Plan is based on the manpower required for various economic development programs and the feasible capacity of the various institutes at Tribhuvan University. The existing campuses will be strengthened and upgraded, and new campuses will be opened based on the need for certificate and trade level technical manpower. 2.27 Table 2.9 compares the enrollment targets of the Fifth Plan with achievements during the Fourth Plan: Table 2.9: ENROLLMENT COMPARISON: 1975/76 AND 1980/81 Growth rate Enrollment (% p.a.) Estimated Target Increase Actual Planned Levels Grades 1975/76 1980/81 1975-80 1971-75 1975-80 Primary 1 to 3 435,000 737,000 302,000 17 11 Lower secondary 4 to 7 174,000 369,000 195,000 7 16 Upper secondary 8 to 10 67,000 147,000 80,000 13 17 Higher 11 to 18 23,000 24,000 1,000 7 0.4 (IOE) (11 to 15) (400) (2,300) (1,900) (-) (42) Source: MOE, Educational Program in the Fifth Plan (1975-80). 2.28 The education sector accounts for about 10.5% of the total investment allocation of the Fifth Plan compared with 5% in the previous plan. The largest single item of this allocation to education (18% and NRs 84 million) is devoted to expansion of primary enrollments by 300,000 students and 8,700 teachers to achieve an enrollment ratio of 64%. The plan also allocates NRs 36 million and NRs 28 million to accommodate an additional 195,000 and 80,000 students at lower and upper secondary levels, respectively; NRs 45 million is earmarked for curricula and materials development. By far the largest alloca- tion, NRs 264 million (58%) (Table 2.10), is for higher education. This investment would not be used to expand enrollments, which are only expected to increase by 1,000 students or less than 1%. Instead, the investment in higher education woul-d be focused on development of technical fields needed for trained manpower. These include:  - 20 - Table 2.10: PLANNED INVESTMENT IN TECHNICAL INSTITUTES (1976-80) Planned Institutes investment Percentage (NRs million) Institute of Engineering 57.0 22 Institute of Medicine 72.0 27 Institute of Agriculture 60.0 23 Institute of Forestry 10.0 4 Institute of Applied Science & Tech. 15.0 5 Institute of Education 50.0 19 Total 264.0 100 Source: MOE, Fifth Plan in Brief, 1975. 2.29 The priority in funding assigned to higher technical institutes, including the IOE, stems from the concern of Nepalese authorities to develop local training capacity in critical manpower categories. A reliable local training capacity is regarded as essential to ensure the availability of manpower required for implementation of government investment programs. Specifically, the Government plans to expand the enrollment at the certificate level at IOE to 1,200 students, improve the quality of training through better facilities and staff and to establish a diploma level program in civil engineering for 430 students. This addition is consistent with projected manpower requirements (para. 1.09). 2.30 The Government also plans to establish new campuses for trade and certificate level training outside the Central Region, one each in the Eastern Region near Biratnagar, in the Western Region at Pokhara and in the Far Western Region at Surket. The manpower justification for these regional campuses, except for the Eastern Region, is unclear and excessively rapid expansion could dilute the quality of instruction in all related institutions. The Government should defer expansion of certificate programs except for the Eastern Region until measures to improve the low quality of instruction (paras. 2.16 and 2.17) have proved successful. 2.31 External Assistance. Nepal has received external assistance (amounting to US$1 million in 1977) for education from many sources, but will require additional outside help to achieve its education targets during the Fifth Plan. Fellowships are provided by UNDP, USSR, UK, USAID, India and Germany. UNICEF and Unesco are providing assistance to the Government in the following key areas of basic education: women's teacher training, textbook production, school building materials and training of supervisors. USAID has been active in curricula and materials development and is financing radio education primarily for in-service teacher training. In areas of skill training, USAID is financing the relocation and expansion of the Institute of  - 21 - Agriculture and Animal Science. CIDA is providing assistance to strengthen medical training. The ILO has provided technical assistance with UNDP finan- cing to establish the certificate level course at the IOE. The ADB has approved a project to assist in the establishment of a regional training center (mainly trade level) in the Eastern Region (para. 2.30). On the whole, however, available assistance is inadequate, particularly in the area of technical education. 2.32 Further external investment in the education sector should be focused on the elimination of critical skill shortages (both in number and quality) of junior and senior technicians. In the medium term, assistance is also needed to help planning of lower level skill training, including rural trade training, and in the formulation of realistic programs to extend the coverage of basic education to disadvantaged groups. 3. THE PROJECT /I Objectives and Scope 3.01 The proposed project aims at building up the capacity of the IOE to train two levels of technical manpower vital to Nepal's economic growth: (a) at the certificate level (Grades 11-12) the project would improve the quality of the existing teaching programs (para. 2.15) through the provision of facilities, equipment, staff training and special- ists' services; and (b) at the diploma level (Grades 13-15) /2 the project would help establish a teaching program in civil engineering for 430 students through the provision of facilities, equip- ment, staff training and specialists' services. The Institute of Engineering 3.02 Equipment and Facilities. The dual project objectives of estab- lishing new training capacity at the diploma level and increasing the practical /1 The proposed project was prepared by the Government with the assistance of the Unesco/IDA Cooperative Program during July/August 1976. /2 The proposed diploma courses require an extra year beyond the usual two (para. 2.03) due to the technical content of the courses (Table 3.3). Moreover, additional periods in mathematics and science are needed because of the quality of entrants (para. 2.13) and the remedial training at Grade 10 level (para. 2.10) cannot substitute for remedial training needed at Grade 12 level for the diploma courses.  - 22 - content of existing teaching programs will require more and better physical facilities at the Pulchowk Campus of the IOE. Under the project, financing would be provided for developing the campus in the following respects: (a) buildings: 15 additional classrooms/lecture theaters, 18 laboratories, 1 workshop, 1 library, and a canteen/dining hall would be constructed and furnished; (b) equipment: teaching equipment for laboratories and workshops; (c) teaching materials: books and journals; (d) boarding facilities: for 560 students from all regions outside the Kathmandu Valley (about 40% of total student places); and (e) staff houses: for 30 staff, to accommodate administrators, department heads and half of the diploma level teaching staff. Facilities provided under the proposed project would be used for teaching at both the certificate and the diploma levels to facilitate economical operation. The boarding facilities and staff houses are required because adequate accom- modation is not available in the Kathmandu area. Provision of staff housing would serve as an incentive to attract and retain qualified senior staff, whose services are in great demand in other government agencies and the private sector. 3.03 Enrollments. Under the project, student enrollment at the Pulchowk Campus of the IOE would develop as follows:  - 23 - Table 3.1: INSTITUTE OF ENGINEERING - ACTUAL AND PROJECTED ENROLLMENT Actual Projections 1977 1978 1979 1980 1981 1982 1983 (Academic year) Certificate Preliminary /a - 270 270 270 220 220 220 Grade 11 550 510 500 500 500 500 500 Grade 12 460 440 460 460 480 480 480 Subtotal 1,010 1,220 1,230 1,230 1,200 1,200 1,200 Diploma Grade 13 - 25 50 75 150 150 150 Grade 14 - - 20 45 65 130 130 Grade 15 - - - 20 40 60 120 Subtotal 0 25 70 140 255 340 400 lb Total 1,010 1,245 1,300 1,370 1,455 1,540 1,600 /a See footnote /1 of para. 2.16. The decrease to 220 after 1981 antici- pates a higher quality of applicants, since by then more students may be able to join Grade 11 directly without taking the preliminary course. /b Allowing a dropout of about 30 students from the 430 capacity. 3.04 The project aims at quality improvement at the certificate level, which could not easily be achieved under conditions of rapid enrollment increase. Consequently, overall enrollments in Grades 11 and 12 of the certificate program would be held at the 1977 level throughout implementation. (Enrollments in 1977 doubled the previous year's figure, para. 2.15.) Some increase in overall enrollments, however, would occur through the introduction of a six-month remedial program beginning in the 1977 winter semester for students with weak educational background in science, mathematics and language (para. 2.16). This is particularly directed at those students coming from regions outside Kathmandu whose academic backgrounds tend to be weaker. This remedial program is expected to contribute to a decrease in the dropout rate between Grades 11 and 12 from 14% in 1978 to 4% in 1983. In view of the past tendency to increase enrollments rapidly without adequate attention to quality of instruction, the Government agreed at negotiations that: (a) unless otherwise jointly reviewed in advance with the Association, enrollment in the certificate program at the Pulchowk campus of Grades 11 and 12 of the IOE would be maintained at a total of 1,000 students during project implementation/I; and /1 During negotiations an understanding was reached that in view of the intense pressure Qn the IOE to increase enrollments in response to the acute manpower shortage, a temporary increase in enrollments to 1,200 would be acceptable to the Association until such a time as the 200 additional students could be accommodated at another campus of the Institute.  - 24 - (b) the establishment of any additional regional campus for certificate level engineering training would be reviewed in advance with the Association in terms of evidence of employment demand, feasibility and implications on the proposed IDA project. 3.05 Establishment of the engineering program for senior technicians at diploma level would be achieved gradually. In 1978, 25 students would be admitted to one class for a full year of instruction with special emphasis in science, mathematics and language. Table 3.1 details annual enrollment figures and shows the eventual target of six groups, totaling 150 students, being admitted in 1981. Allowing for a dropout rate of about 10% per year, full enrollment of 400 students would be achieved by 1983. 3.06 Admissions Policy. The central aim of the project is to establish a reliable supply of technical manpower with the practical skills needed to execute Nepalese development projects. Most of these projects are located outside the Kathmandu Valley. Geographical representation within the student body should therefore be an important selection criterion in-view of the significant need for technical manpower mainly outside the Kathmandu Valley. This has important implications for the admissions policy of the IOE at both certificate and diploma levels. While an adequate number of school leavers exists at both the SLC level (Grade 10) and certificate level (Grade 12) from which to recruit students for both levels of the IOE, disproportionate repre- sentation from the Kathmandu region is likely to occur because of previous inequities in educational development (para. 2.07). To guard against this, applicants from remote areas have been given extra points in the entrance examination for certificate courses. At the diploma level applicants would be required to have had at least one year of related work experience. During negotiations, the Government provided assurances that persons admitted to the diploma program after January 1981 would have had at least one year of prior related work experience. 3.07 Teaching Programs. A fundamental objective of the project would be to train students in the skills needed to execute development projects in Nepal. In teaching programs at both the certificate and diploma levels, considerable emphasis would be placed on solving engineering problems frequently encountered in Nepal. At the certificate level, improvements in the quality of instruction would be sought by increasing the proportion of instructional time devoted to practical subjects in laboratories, workshops, and drawing as shown in the following table:  - 25 - Table 3.2: COMPARISON OF THE CURRICULA OF THE EXISTING CERTIFICATE COURSE WITH THE PROPOSED NEW CURRICULA /a (%) Drawing Classrooms Laboratory Workshop and field Name of course Existing New Existing New Existing New Existing New Civil engineering 60 48 0 17 21 13 19 22 Architectural drafting 49 41 0 10 8 8 43 41 Electrical engineering 60 52 4 17 24 22 12 9 Radio and electronics 67 57 20 23 4 12 9 8 Other 59 56 23 20 8 16 10 8 /a See para. 2.17. The total number of periods in the courses has increased from 168 to 210 because of the introduction of a fifth semester. The total instruction time has increased, but the percentage of classroom periods has decreased; this conforms to the new approach with far more emphasis on both laboratory and workshop practice. This shift in emphasis would require major changes in syllabi as well. Under the technical assistance to be funded by the UK Ministry of Overseas Development (ODM), specialists (para. 3.14) would be provided and teachers would be trained abroad (para. 3.12) to design and introduce the revised curricula. Revisions to teaching programs would be preceded by an analysis of present and projected skill requirements of govern- ment agencies for engineering overseers and supervisors. New teaching courses would make use of problems and case material drawn from experience with Nepalese development projects. 3.08 At the diploma level, curricula development would follow a similar pragmatic orientation with about 45% of instruction time devoted to laboratory and practical work. Table 3.3: CURRICULA IN DIPLOMA COURSE (CIVIL ENGINEERING) Drawing Classroom Laboratory Workshop and field Total No. of No. of No. of No. of No. of periods % periods % periods % periods % periods % 136 54 46 18 9 4 61 24 252 100  - 26 - 3.09 Staff Recruitment. Under the project, the IOE would need to expand its present complement of 85 staff members by 104 people /1 (42 with graduate qualifications, 40 nongraduates and 22 laboratory technicians). Projected staff requirements, which cover both net additions and replacements, and both levels of study, would be phased as follows: Table 3.4: TEACHING STAFF RECRUITMENT PLAN (Certificate and diploma levels) Actual stock Projected recruitment 1977 1978 1979 1980 1981 Total Graduate teachers /a New 10 10 11 11 42 Replacement - 1 2 3 6 Subtotal 52 10 11 13 14 48 Nongraduate teachers New 10 10 10 10 40 Replacement 1 2 2 3 8 Subtotal 32 11 12 12 13 48 Laboratory technicians 1 6 6 5 5 22 Total staff 85 27 29 30 32 118 /a Bachelor or higher level degree. Source: IOE. 3.10 About 120 teachers would be required for the certificate level course, half of whom would be graduates. The student:teacher ratio would be 10:1, appropriate for the level of instruction and the heavy emphasis on practical content. About 44 additional staff members would have to be recruited to replace teachers transferred to the diploma course. 3.11 About 44 teachers wouldi be required at the diploma level, 75% of them with graduate qualifications. The recruitment target would achieve a student:teacher ratio of 9:1 which is appropriate given the high proportion of course work allocated to laboratory and practical work (para. 3.08). The /1 Including repiacements, the requirement is 118 people.  - 27 - proposed recruitment of 22 laboratory technicians to assist at both levels would also strengthen practical teaching capability. Recruitment of teaching staff for the certificate level should not encounter undue difficulty in view of the success of the IOE in employing additional staff recently (para. 2.19) and the projected number of graduates returning from abroad (para. 1.07). Recruitment of teaching staff for the diploma level is expected to be more difficult, but would be eased by the incentives offered in the form of fellowships and staff housing. During negotiations, the Government agreed that the IOE would maintain student:teacher ratios of 10:1 and 9:1 for the certificate and diploma level courses, respectively. 3.12 Staff Training. In addition to recruitment of additional staff, the proposed project includes an arrangement with the ODM to finance a program for about 53 man-years of fellowships to improve the training and experience of staff (see Annex 1). The training program for administrators would include a study tour of similar institutions in both developing and advanced countries. Training for teaching staff would focus on curriculum development, teaching methods and, where appropriate and feasible, the acquisition of industrial experience. 3.13 A fellowship committee has been organized to ensure that selection of staff for training would be made in accordance with the objectives of the staff development program and other specific procedures and selection criteria which have been established. The recipients of the overseas fellowships would be bonded to IOE for a specified period of time depending on the length of their overseas training. This arrangement would help ensure that a basic core of trained staff remains at IOE in the future. The proposed fellowship program would be phased so that adequate teaching staff would be available at IOE for ongoing programs during the absence of staff on fellowships. 3.14 Specialists' Services. The proposed project would also include 16-1/2 man-years of expatriate specialist services which would be provided under the ODM technical assistance program (see Annex 1). These services and staff training would be provided through linkage with Paisley College of Tech- nology, near Glasgow, Scotland./l The specialists, together with their Nepalese counterparts, would evaluate and develop teaching programs with regard to skill requirements of Nepalese development projects, would help prepare detailed teaching manuals, would help train staff to teach the course content effectively and would assist in the procurement, installation and operation of equipment. Emphasis would be placed on training Nepalese to assume those duties as quickly as possible. The specialists' services would be phased over the entire implementation period from 1978-82. During negotiations, the Government provided assurances that: (a) terms of reference and qualifications of specialists would be acceptable to the Association; and (b) it would seek such additional specialist services after completion of the project as may be required to achieve fully and to maintain the objectives of the project. /1 The College is one of the most advanced colleges in Scotland with about 2,000 students, over 200 academic staff and about 350 technicians, adminis- trative and other staff. The College is organized in three schools, Engineering, Science, and Planning and Management Sciences, and in ten departments, including civil, electrical, and mechanical engineering, offering degrees, diplomas, and certificates in their respective fields.  - 28 - 3.15 Outputs. The number of certificates awarded yearly by the IOE is projected to increase from 120 at present to about 420 in 1979, 300 of which would be in civil engineering. Output from the diploma level courses would increase more slowly, starting with about 20 in 1981 and increasing to 100 in 1984. Based on present shortages and projected requirements for technical manpower (paras. 1.06 and 1.09), these graduates are not expected to have difficulty in finding employment. They would fill new positions or would replace foreign technicians recruited to fill vacancies occurring in the interim. Graduates would, according to their qualifications and interests, become engineers or overseers for civil works projects (roads, water supply, building construction, etc.) developed and executed by Government; or architec- tural draftsmen; employees in private firms, such as construction companies; self-employed entrepreneurs; or teachers of skill courses at various levels in the education system. Monitoring and Evaluation 3.16 The Government would establish monitoring and evaluation systems covering both the certificate and diploma courses at IOE to collect and analyze, at the beginning of each school year, information on: (a) the number of applicants, number accepted, and enrollment by course, region, and district; (b) the number of graduates who have completed each course in the prior year within the prescribed duration of the course, compared with the original intake; (c) the number of graduates of prior years employed within six months, one year, and two years after graduation, classified by major employers and fields; (d) staffing numbers, qualifications - including practical experience - and turnover; and (e) assessment of fellowship programs according to the usefulness of training received and the subsequent assignments of the fellows after they have completed their overseas training. 3.17 During negotiations, the Government agreed to establish by December 31, 1979 a monitoring and evaluation system and provide the Asso- ciation annually, during the project implementation period and for five years thereafter, with analytical summaries of the above information (para 3.16) with recommendations to improve project implementation. In addition, the Government gave assurances that not later than the Closing Date of the Credit Agreement, it would prepare and send to the Association a draft project completion report providing its assessment of the project and the lessons learned during implementation.  - 29 - Related Studies 3.18 In conjunction with the proposed project, the Government would con- duct three feasibility studies on key issues in education in Nepal to provide the basis for future development of the sector. The three studies would examine: (a) primary education with emphasis on improving female participation and reten- tion rates (para. 2.06); (b) trade level skills, developing a plan for rationali- zing trade training on a national basis and designing the content and delivery system of a rural skill training program (para. 2.24); and (c) the need for establishing a trade and certificate level engineering institute in the Western Development Region (para. 2.30). Outside sources of funding for these studies are being sought. During negotiations, the Government agreed to provide or cause to be provided the funds necessary to complete the studies by June 30, 1979, under terms of reference acceptable to the Association. 4. PROJECT COST, FINANCING, IMPLEMENTATION AND DISBURSEMENTS Cost Estimates 4.01 The estimated costs and foreign exchange components of the proposed project are given in Annex 3 and are summarized in Table 4.1 below: Table 4.1: SUMMARY OF PROJECT COSTS NRs '000 US$ '000 Local Foreign Total Local Foreign Total Base costs IOE 21,040 38,440 59,480 1,685 3,075 4,760/a Technical and engineering services for future projects 180 1,560 1,740 15 125 140 Total base costs 21,220 40,000 61,220 1,700 3,200 4,900 Contingencies Physical 2,000 4,130 6,130 160 330 490 Price 6,240 10,380 16,620 500 830 1,330 Total contingencies 8,240 14,510 22,750 660 1,160 1,820 Specialists and fellow- shipsjb 0 13,750 13,750 0 1,100 1,100 Total project costs 29,460 68,260 97,720 2,360 5,460 7,820 /a About 40% of the project cost is for the establishment of new diploma level courses and the remainder for the improvement of existing certificate courses. /b To be provided by ODM.  - 30 - 4.02 A breakdown of estimated project costs by categories of expenditure is summarized in Table 4.2 below: Table 4.2: PROJECT COSTS BY CATEGORY OF EXPENDITURE NRs '000 US$ '000 Local Foreign Total Local Foreign Total Civil works Site development 4,600 2,000 6,600 370 160 530 Academic and communal 6,270 4,130 10,400 500 330 830 Student boarding 4,250 2,750 7,000 340 220 560 Staff houses 2,070 1,500 3,570 170 120 290 Professional services 1,710 500 2,210 135 40 175 Subtotal 18,900 10,880 29,780 1,515 870 2,385 Furniture 760 1,690 2,450 60 135 195 Equipment 1,380 25,870 27,250 110 2,070 2,180 Technical and engineering services for future projects 180 1,560 1,740 15 125 140 Total base costs 21,220 40,000 61,220 1,700 3,200 4,900 Contingencies Physical 2,000 4,130 6,130 160 330 490 Price 6,240 10,380 16,620 500 830 1,330 Total contingencies 8,240 14,510 22,750 660 1,160 1,820 Specialists and fellow- ships/a 0 13,750 13,750 0 1,100 1,100 Total project costs 29,460 68,260 97,720 2,360 5,460 7,820 /a To be financed by ODM. 4.03 Base cost estimates refer to November 1977 prices. Construction costs have been estimated on the basis of functional and economical facilities. A campus master plan and part of the sketch plans have been prepared, reviewed and revised. Construction unit costs are derived from recent costs of similar buildings under construction at the Pulchowk Campus and in Kathmandu. Even though local materials are used to the extent possible, the average unit cost estimate (about US$128/sq m), is higher than in India and Bangladesh but is comparable to construction costs in other Asian countries. This is largely due to the high cost of imported materials (about 50% to 60% of building materials, e.g. steel, glass, hardware, roofing and material for installation of utilities). Comparisons of capital costs per place are not applicable since the proposed project provides extensions to existing facilities.  - 31 - 4.04 Utilization factors for classrooms, workshops and laboratories of the proposed project are economical and range from 70% to 90% based on 42 hours teaching per week. For economical operation, the facilities and equipment provided would, in general, be used by both the certificate and diploma level courses. The cost of equipment is reasonable and has been determined from equipment lists related to the teaching program. Master equipment lists have been prepared and reviewed. About 6% of the total project cost would be allocated for staff housing and about 10% for hostel facilities. These facili- ties are needed to ensure recruitment of qualified staff and to accommodate students from rural areas. 4.05 Physical contingencies (Annex 3) add 10% to the cost of site development, construction, furniture, equipment and professional services. A total price contingency of US$1.33 million is included for expected price escalation at the following annual percentage rates: Table 4.3: PRICE ESCALATION ESTIMATES Category 1978 1979 1980 1981 Civil works, furniture and professional services 9.0 9.0 9.0 8.0 Equipment 7.5 7.5 7.5 7.0 4.06 Based on detailed analysis, the foreign exchange component has been estimated as follows: (a) site work, 30%; (b) construction, 40%; (c) furniture, 70%; (d) equipment, 95%; (e) professional services, 20%; and (f) technical and engineering services for a possible future project, 90%. These percentages have been derived by (i) determining the costs of civil works attributable to material, labor, overhead and profit; and (ii) analyzing the c.i.f. Kathmandu costs of imported equipment and furniture, inland transportation and insurances, and delivery and installation of equipment and furniture. The foreign exchange component is estimated at US$4.4 million, or about 65% of IDA- financed project costs, and at about US$5.5 million, or about 70% of the total project cost, including technical assistance. 4.07 Customs Duty and Taxes. All items specifically imported for the proposed project would be subject to a 1% handling charge. Civil works con- tractors and equipment suppliers are required by the laws of the Kingdom of Nepal to pay a 2-1/2% contract tax. Project Financing 4.08 The proposed IDA credit of US$5.7 million equivalent would finance 73% of the total project costs, ODM would finance 14%, and the remaining 13% would be met by the Government. The financing plan is shown in Table 4.4 below.  - 32 - Table 4.4: PROJECT FINANCING PLAN Category Government IDA ODM Total ------ US$ '000 equivalent ------ Civil works 760 2,200 - 2,960/a Furniture and equipment 188 2,900 - 3,088/a Professional fees, technical & engineering services 6 300 - 306/a Unallocated 66 300 - 366 Technical assistance - - 1,100 1,100 Total 1,020 5,700 1,100 7,820 Less duties and taxes 100 - - 100 Net total 920 5,700 1,100 7,720 /a Including contingency allowances (physical and price increase). 4.09 Upgrading of the existing certificate program is not expected to increase annual recurrent costs from their present level of less than NRs 4,000 per student. The incremental annual recurrent expenditure generated by the diploma course when it is in full operation in 1983 would be about NRs 1.8 mil- lion (representing less than 1% of 1977 education recurrent budget) in 1977 prices and NRs 4,200 per student as follows: Table 4.5: ANNUAL RECURRENT COST PER DIPLOMA STUDENT Item Amount per student Teachers' salaries /a 1,700 Scholarships /b 1,200 Materials for teaching & workshops, operation and maintenance of equipment & buildings /c 800 Other expenditures /d 500 Total 4,200 = (US$340) /a Assuming average salary of NRs 15,000 and a student:teacher ratio of 9:1. /b Assuming 50% of students receive a NRs 200 a month scholarship. /c 200% of the 1975/76 figure to allow for quality improvement. /d 1976/77 level.  - 33 - The US$340 is about half of the cost of comparable training in India (US$730), the difference being largely due to the cost of travel and the higher costs of boarding and lodging. Cost analysis, which takes into account a US$4,200 capital cost per diploma student and discounts it at the rate of 8%, shows that the local training cost would be about US$710 per annum as compared with US$730 in India. However, the more appropriate comparison is with the weighted average annual training cost taking into account all foreign destina- tions, which is estimated at US$1,400./1 This means that local training would remain more economical when discounted at a rate of up to 25%. Project Implementation 4.10 Administration. A project implementation unit has already been established in the IOE, Pulchowk Campus. The project director, a full-time project coordinator and a full-time project architect, a procurement officer and an education officer would be responsible for the implementation of the proposed project. All these key staff have been appointed and are acceptable to the Association. The project unit would be further strengthened in 1978 by a project engineer and an accountant, all working on a full-time basis. They would supervise the preparation of the campus master plan, architectural sketch plans, master lists for equipment and furniture, bidding documents for civil works, equipment and furniture, execution of construction and procurement, and delivery and installation of equipment. The unit would also be assisted by an equipment specialist and a curriculum specialist, whose services would be provided under the ODM technical cooperation program (para. 3.14). In addition, the unit would be provided with adequate supporting staff and facilities, and funds have been included in the proposed credit for procurement of office equipment and furniture. During negotiations the Government provided assurance that qualified staff would be retained on a full-time basis in the positions of project coordinator, project architect, procurement officer, and education officer during the project implementation period. 4.11 Professional Services. Design, bidding and supervision of civil works would be the responsibility of consultant architects selected and commissioned by the IOE on terms and conditions satisfactory to the Association. Nepal has about five qualified architectural consulting firms plus the consultant group of Tribhuvan University to prepare the campus plan and to design and supervise this project. However, the capacity of the consulting firms is limited. Therefore to assure smooth and timely implementation of the project, preparation of the bidding documents and construction of the facilities would be executed in three phases (see Chart 5). Provision has been made in the project for US$140,000 to cover the costs of engineering and technical services required to prepare future education projects. 4.12 Site. A suitable site is available for expansion of the IOE. /1 This figure is calculated on the following basis: in the past four years about 75% of diploma students were trained in India and the remaining 25% in the USSR, UK, USA, etc. The average annual training cost in the UK is estimated at US$3,400.  - 34 - 4.13 Procurement. Because of the relatively small size of contracts (mostly below US$600,000), contracts for civil works would be awarded on the basis of competitive bidding advertised locally following procedures that are satisfactory to the Association. Prior approval of the Association would be required for award of any civil works contract exceeding US$200,000 equivalent. Foreign and locally established foreign firms would be allowed to submit bids. 4.14 Equipment and furniture contracts over US$50,000 equivalent would be awarded on the basis of international competitive bidding in accordance with Bank Group guidelines. In bid evaluation, domestic manufacturers would be allowed a preferential margin oi 15% or the existing customs. duty, whichever is lower, over the c.i.f. price of competing imports. Direct imports for IDA- assisted projects are subject to a 1% handling charge. Equipment and furniture items would be packaged to allow bulk procurement. Equipment and furniture purchases that cannot reasonably be grouped to form contracts for at least US$50,000 equivalent and aggregating less than US$350,000 equivalent could be awarded without prior approval of the Association on the basis of competitive bidding advertised locally following government procedures satisfactory to the Association. Books (total estimated cost US$200,000) would be purchased directly from publishers or authorized distributors at the lowest possible prices. In addition, off-the-shelf items, not exceeding US$10,000 equivalent for each contract and aggregating a maximum of US$50,000 equivalent, could be purchased on the basis of a minimum of three price quotations. 4.15 Maintenance and Spare Parts. To ensure proper use of the facilities and equipment, funds have been included in the project for: (a) construction of, and equipment for, one maintenance and repair workshop, and (b) spare parts for instructional equipment. During negotiations the Government provided assurances that the maintenance and repair workshop would be staffed with properly trained personnel. 4.16 Implementation Period. The proposed project would be implemented over about five years, but construction and procurement of the equipment and furniture should be completed in about four years (Charts 4 and 5). Disbursements 4.17 The proposed credit of US$5.7 million would finance 85% of the total costs excluding technical assistance and would be disbursed as follows: (a) 100% of the c.i.f. cost of directly imported equipment and furniture; (b) 100% of the ex-factory price of locally manufactured equipment and furniture; (c) 65% of the cost of imported equipment and furniture procured locally;  - 35 - (d) 75% of the expenditures on civil works; and (e) 100% of the cost of technical and engineering services, and profes- sional fees. To the extent practicable, withdrawal applications would be aggregated in amounts of US$50,000 or more prior to submission to the Association for reimbursement out of the proceeds of the proposed credit. Undisbursed funds could be used with the approval of the Association for other project-related components. The estimated disbursement schedule is shown in Table 4.6 below. Disbursement is expected to be completed by December 31, 1983. Table 4.6: SCHEDULE OF EXPENDITURE AND DISBURSEMENT (US$ '000 equivalent) IDA fiscal year Expenditures Disbursements and semester Semester Cumulative Semester Cumulative 1979 1st 2nd 200 200 1980 1st 400 600 - - 2nd 500 1,100 150 150 1981 1st 1,000 2,100 350 500 2nd 1,100 3,200 400 900 1982 1st 1,300 4,500 800 1,700 2nd 1,000 5,500 1,000 2,700 1983 1st 800 6,300 1,100 3,800 2nd 300 6,600 900 4,700 1984 1st 120 6,720 1,000 5,700 Total 6,720 6,720 5,700 5,700 4.18 A condition of effectiveness of the proposed credit would be that all the conditions applicable to the Government for effectiveness of the ODM technical assistance grant have been met.  - 36 - 5. BENEFITS AND RISKS Benefits 5.01 The proposed project forms part of the continuing NESP strategy to redirect education resources to produce the technical manpower needed for development. The project would reinforce the objective of diverting higher education expenditures away from the humanities and social sciences and towards technical training. 5.02 The proposed project would help establish a steady and reliable source of locally trained senior technicians in civil engineering, thus minimizing the present dependence on unreliable foreign training. At the certificate level, the provision of equipment and technical assistance would allow a substantial increase in the proportion of instruction devoted to practical teaching. At the diploma level, curricula would aim at training engineers to solve Nepalese problems, in contrast with present foreign training which is not closely related to Nepalese conditions. 5.03 The project is also well justified in terms of economy and efficiency. Improvements in the quality of teaching envisaged at the certificate level would help increase the presently low (40%) pass rates and reduce costs per graduate. The establishment of a diploma program in Nepal would cost 55% less per student per year in recurrent expenditure than the least expensive foreign training (NRs 4,200 compared to NRs 9,100 equivalent in India). The annual local training cost which includes amortized capital cost (US$4,200 per place over a 30-year period) would be less than the weighted annual foreign training cost (US$1,400) when discounted at a rate of up to 25% (para. 4.09). 5.04 The principal benefit cf the proposed project, however, would be in helping eliminate one of the critical constraints to implementation of development plans, viz. shortages of technicians in civil engineering. Under the proposed project, the certificate level graduates of the IOE would meet about 50% of the estimated requirement for junior technicians in the Fifth Plan, and about 85% in both the Fifth and Sixth Plans. At the diploma level the output would meet 30% of the expected manpower demand for civil engineers in the Sixth Plan. Risks 5.05 Apart from the usual implementation difficulties in Nepal, achieve- ment of project objectives would depend mainly on two factors. The first is the Borrower's commitment to achieving reasonable quality standards given ,.he magnitude of manpower shortages and the social pressure to enroll more applicants. A rapid expansion of enrollments could strain teaching resources and contribute to a deterioration, or lack of improvement, in the standard of learning. The quality objectives of the project, therefore, require the Government to resist pressures to expand enrollments. This potential problem has been reviewed with the Government, and the agreements reached (para. 3.04) reflect the intentions of the Government to maintain enrollments within reasonable limits.  - 37 - 5.06 Another risk inherent in this type of project is the tendency to maintain or revert to a theoretical bias in instruction rather than focussing on solving engineering problems relevant to Nepalese conditions. Specific measures, such as required work experience (para. 3.06), have been introduced into the project to counteract this tendency, but this factor would need to be kept under careful review during implementation. 5.07 On the whole, the risks have been minimized through project design and are offset by the potentially large benefit of reducing manpower con- straints to implementation of development projects. 6. AGREEMENTS REACHED AND RECOMMENDATIONS 6.01 During negotiations, agreement was reached with the Government on the following principal points: (a) enrollment of certificate students (Grades 11-12) on the Pulchowk Campus would be limited to 1,000 students, and any plan to establish a new regional campus for certificate level training would be reviewed in advance jointly with the Association (para. 3.04); (b) persons admitted to the diploma program after January 1981 would have had at least one year of prior related work experience (para. 3.06); (c) the IOE would (i) maintain student:teacher ratios of 10:1 and 9:1 for the certificate and diploma courses, respectively (para. 3.11); and (ii) operate the equipment maintenance and repair workshops staffed with properly trained technicians (para. 4.15); (d) the Government would seek additional technical assistance after completion of the project as may be required (para. 3.14); (e) terms of reference and qualifications of specialists (paras. 3.14 and 3.18) would be acceptable to the Association; (f) the Government would establish a project monitoring and evaluation system and prepare a draft project completion report providing the Government's assessment of the project (para. 3.17); (g) feasibility studies on (i) primary education; (ii) trade and rural skill training; and (iii) development of a regional engineering institute in the Western Development Region would be carried out by June 30, 1979 under terms of reference acceptable to the Association (para. 3.18); and (h) employment of qualified key project staff on a full-time basis during project implementation (para. 4.10).  - 38 - 6.02 A condition of effectiveness of the proposed credit would be that all the conditions applicable to the Government for effectiveness of the ODM technical assistance grant have been met (para. 4.18). 6.03 Subject to the above conditions, the proposed project constitutes a suitable basis for an IDA credit of US$5.7 million equivalent to His Majesty's Government of Nepal.  ANNEX 1 Page 1 NEPAL: TECHNICAL EDUCATION PROJECT Technical Assistance Programs (As agreed to be provided by the Ministry of Overseas Development, UK) Overview 1. The proposed project aims to improve the quality of the five existing courses at certificate level with an enrollment of about 1,200, including about 200 students in remedial courses, and establish a new diploma course in civil engineering for about 400 students at the Institute of Engineering (IOE), Tribhuvan University. The curriculum at both levels should include adequate practical content and be relevant to Nepal, and the syllabi for the certificate courses need major revision to suit the well-equipped laboratories and workshops provided under the proposed project. Technical assistance would be required in the following areas: (a) course and laboratory development and curricula design; (b) preparation of instructional materials; (c) drawing up equipment lists with proper specifications before procurement; (d) giving advice on laboratory and workshop layout and service requirements; and (e) supervision of staff training and development, which should include, apart from teaching staff, administrators, laboratory technicians and other supporting staff. The Technical Cooperation Program 2. The program consists of 16-1/2 man-years of specialists' services (f342,000) and 53-1/2 man-years of fellowships (f258,000) at a total esti- mated cost of 6600,000 (US$1.1 million approximately), to be borne by the UK Government. One specific feature of the program is the proposed linkage with one well-established sister college in UK (the Paisley College of Tech- nology, Scotland) for continuity, consistency and an integrated approach. 3. The specialists' services consist of the following: Phase A - April 1978 to September 1978 (approx.). Specialists' advice and assistance on: (a) curricula design; (b) equipment identification and specifications; and (c) laboratory layout and service requirements through a series of short assignments in Nepal together with some detailed work in the UK to: (i) prepare final equipment lists to be ready from mid-1978 onwards; (ii) prepare equipment specifications in a form suitable for inter- national competitive bidding from about September 1978 onwards; and (iii) provide adequate input on laboratory layouts and service requirements as needed by the Project Architect. The areas to be covered and the scheduled timing are as follows:  ANNEX 1 Page 2 Areas Covered 1978 Apr. May June July Aug. Sept. English x Mathematics x Science x Electrical Engineering x Electronics and Radio x Engineering Drawings x Bricklaying x Carpentry x Workshop Technology x Architecture x Surveying x Concrete ) Building Materials ) x Road Materials and Highway ) Mechanics ) Structure) x Hydraulics ) Public Health ) x Geology and soil mechanics x man-months 4 2 2 3 3 1 Total 15 man-months in Nepal plus 15 man-months in the UK, i.e. a subtotal of 30 man-months or 2-1/2 man-years. Phase B - October 1978 to September 1982 (approx.). Specialists' services on course and laboratory development and in-service training of staff. (a) Specialist teaching staff to implement the revised courses, particu- larly by making effective use of laboratories and workshops through a series of visits lasting 6-12 weeks each: October 1978-September 1979 4 assignments 9 man-months October 1979-September 1980 4 assignments 9 man-months October 1980-September 1981 12 assignments 24 man-months October 1981-September 1982 12 assignments 24 man-months Subtotal 66 man-months (b) Experienced laboratory technicians to provide in-service training for the laboratory technicians of IOE. The schedule is to be synchronized with the availability of laboratories in IOE. Subtotal 36 man-months (c) Other specialists for assistance on equipment procurement (particularly bid evaluation), academic administration, etc., as and when needed. Subtotal 18 man-months  ANNEX 1 Page 3 (d) Coordinator for overall supervision of specialists' services and fellowship schemes: October 1978-September 1982 Subtotal 48 man-months Total 168 man-months or 14 man-years Grand Total for Phases A and B 16-1/2 man-years 4. The following staff training program is scheduled to take place during October 1978-July 1982 within the coordinator's term of appointment: (a) Technical teaching staff (including mathematics and science). Four groups of 15 selected staff of IOE, starting in October of each year from 1978, for a 6-8 month course of technical teacher training, including curriculum development and teaching methods, with a substantial amount of practical laboratory work while attached to the sister college and associated colleges in the UK and for practical experience in industry. Subtotal for 60 teachers 34 man-years (b) Senior administrators on visits to colleges and industries to familiarize themselves with administrative work on similar courses, and to establish and coordinate the link with the sister college in the UK. Subtotal 1/2 man-year (c) Laboratory technicians. Two groups of nine laboratory technicians (18 staff) starting in October 1979 and October 1980 for a 3-6 month course involving subject study and specialist training, practical laboratory work and study of laboratory organization. Subtotal 6 man-years (d) Other staff, such as teachers of English, librarian, placement officer, guidance officer, examination officer, industrial liaison officer and student welfare officer, for specialized courses. Subtotal 3 man-years (e) Selected teachers for higher degree studies. Postgraduate train- ing for five selected staff to read for Masters or PhD degree. Staff selected should have at least a good first degree and teaching/ industrial experience such that they can be expected to obtain a higher degree within two years and return to a senior position at IOE. Subtotal 10 man-years Staff Training Total 53-1/2 man-years  COMPARATIVE~ EDVICATION INDICATORS ANNEX 2, Page I C NOV, go, 3977 3 I P I 1 1 8 3 I ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~I ,SEC 1 3 2 GNP' S It GNP IX TOTALIB Of PUBLIC * PRI, IAV,PRI, :C I ICAPITAI DEVUTEDSPUBLIC t EDUCATION ILITER- PRI, 8COMPLE- j5TU- :SCH,TEACHIPROGRE33., SEC. :STU- I I IAT TO EDU.1 EXP, I RECURRENT lC IENROLL:TION IOE,NTSSSALARY,INhIflN RATE sENROLLiDENTS:HIGHERt :MPARKET: (PUSLICiDEVOTEDiEXP ALLOCATEDACR'ATE ER ATTO ,RATE FOR PR RELATI N FPROM PRI,tRATIO sPER aENROLLI POP. ZPRICESI EXP. i TOL 8, 101 ,(B Of * MET #PRI.SCH.ITEACMi TO $NP/ sTO SEC. I NET ITEACH- RATIO: YPiNILLS.s (USS)f ONLY) I EDU, ZPRI. SEC. HI.tADULT3)s CX) iCYCLE(T).ER i CAPITA i (1 I CX) :ER I (X) I a aI I I I I I I a I I 1 I I (3) Ia (2) a (3) i (4) i (5) a (6) I(7) I (a ) I (91I (10) I (It) 3(12) (1031 3(14) t ADVANCED AUSTRIA 73 7.53: 4,410E 4.3 9.9 4 10 .250 200 99 98 43 26 2.0 99 5 1 19 8.00 CANADA 72 22,53: 6,~190E 7,7 39.4 30 38 19 98 89 98 24 2,0 99 Oa I? 9.00 GERMANY F.REP,T2 62.03: 6,260E 4.2 04.2 . 74** 26 99 91 99 33 .. 99 91 22 17.OOCY JAPAN 73 I09.73: 4,O7@E 4.3 20.7 39. 3 8 12 99 99D 99C 2SC 2,0 99C 94D 20C 28.0OD NETHERLANDS 72 13.53: 5.25@E 8,5 19.10 32 4 5 19 99 95 95 29 3.0 97 13 20 11.00 NEW ZEALAND 73 3.03: 4.330E 53. 2 ,,. 39, 2 4 29 99 99 99 26 , 99 67 19 24.00 NORWAY 72 '3,03 5,960E 7.0 135,2 58 23 33 99 99 98 20 1,9 99 76 14 11.00 SWEDEN 73 9.2E: 7,240E 4,9 16.0 36 14 13 99 99 99 17 ., 90 8s 10 30,00 U.K. 72 56.9E: 3,5993E 6,3 32.7 24. 39 22 98 99 ... 26 2.0 ... 63 17 11.00 U.S.A. 72 e33,93: 6,670E 6.0 135.4 *... 73** 27 99 99 99 25U 2.4) ... 93 IQU 29,00 EUROPEC GREECE ~~~~76 9,1 2,590 2.6 30.4 31, 26 2! 868 99 820 31 2,0 70E: 80 27 35.00 IRELAND 72 3.33: 2,320E 5,3 1339D 43Y 'l1v 14Y 98 97 99A 35 ... 95A 7 5 19 7,006 PORTUGAL 75 9.6 1,630 4.4 37,4 52 27 13 70 98 S5 23 3.0 70 29 14 7.60 ROMANIA 75 23.3 1,300 4,0 6,4 30 19 13 98 1031 ... 21 . 98 49 22 10.0 0 SPAIN 72 35,33: 2,490E: 2,45 15.2A 49Y 22Y ISY 944 91A ... 356 ,... 29A 30 6.00A AFRICA ALLG E R IA 77 26.9 990G 7.5 42 ,,. 23 35 Tax 49 39 4,0 55 261 13 6,00 BENiN 73 3,0OE 320E: 5.3 32,0 41' 23 10 it 3218 708 508 25.08 43B 78 398 0.44CY BOTSWANA 74 0.7 240o 5.0 20.0 30 20 is 253 700 75 35 5,0 24 330 18 0.30Y BURIINDI 74 3,6 40 2.5 39,90 4 1R4 hR 12R 10 201 30? 381 14.0 34 20 18 1.0 CAMEROON 73 7.33E 250QE 5,9 20,0 301Y 29Y 17Y ., 74 ... 510DY 9, . 23CY 0.90CY C.A.R. 70 1,73: 20OE 4.ON 20.0 5t. 39. . . 64CY 25 6SCY ... to SCY 2781Y 0.07Y CHAD 75 40OE 3003: 3,0 10,0 7S 22 Is1 29101' 30 658Y 35.0 8 21ST 30 0,01BT CONGO(B) 74 3 .1 470 6,0 19,3 40 32 23 50? 13331 63 63 6.0 48 330 2 2 3,40 EGYPT 74 36.1 280 5.3 ,,, 2g 36 24 40 740 45 40 . 64 391 28 31,00 ETHIOPIA 76 28,0 100 2,8 13.4 20ze 25 10 7 21 ... SO ., 63 8 34 ,.. GA8ON 73 0.5 1,960E 5.0 20.6 25; 9 13 .,. 3841BY 25C 46C 5,0 384 20C 233: I1,403:1' GAMBIA *a 76 0.5 170 3,3 33,5 44, 25 6 10 27 90 33 9. 2 13 25 GHANA 73 9.6E 430E 4.7 243,4DR 300 150 230 .,. 560cy 62 303:1 t. 4 130 I6CY 0.7451Y IVORY cnAST 72 6,4E: 4603: 6,3 24,7 2TBY 3381' 131' 44 52 574 46 ,. ., 10 25 1.200Y KENYA 76 13,0 240 5,9 26,0 61' 23 10 40 Sol 60? 34 6.0 30 16 27 1,0 LE30ITHO 75 1.2 3403: 12.0p 23.0 49 38 20 40 85 50 532 7.0N 81 10 26 1.00 LIBERIA 75 1,5 ' 410 2,4 13,2 21' Is 20 73 58 .., 35 2,0 .. 12 26 3.IIAY MADAGASCAR 74 4,6 1S0 I.2 2?,3 S1 24 25 40 681 30 63 15.0 48 40 26 3,00 MALAWI 76 5.2 140 2.4 20.0 42 38 23 25 56FX0 37 52 2,4 70 43:0 20 0.26CY MALI 75 5,7F 9oF 4.?M 33.OF 4SF 373: 18F 1IOF 2204' ... 484' 9,53F 5OF 60 21 MAURITANIA 70 1.33: 290E: 4,5 21,0.t0 351 ., 22 .. , 3 24 ,. MAURITIUS 72 0,43: 5803: 3,7 43,700 71so4 8 86 44 31 ..., 33 30 1.47CY' MOROCCO 74 16.3 340 5,0C 36,5 441 is7? 9 26? Sox 21 37 , 31 130 21 2,00 NIGERIA 73 73.03: 327F' 3,2N ... 404 244 206 ,,. 3913:1 ,., 34CY' ., . 4 20CY 0,37CY4 RWANDA 73 4.03: 03: 3.2C: 240.9D ...... 23 52 ... 51S, . 2 13 0.23CY SENEGAL 73 4.43: 330E 4.ON 22,504 304 424 54 10 380 ... 46 ,. ,, iII 25 1,71CY1 SIERRA LEONE 73 2.93: 190E 3,4 23,4 31 36 30 I5? 341 45 32 4,03: 68 330 21 0.53BY' SOMALIA 75 3,2 300 3,70 104.0 490 360 190 s0? 341 86 35 10.0 60 3 I5 0,10 SUDAN 7a 25,23: ?30E 4.5 t3,2 431 29 24 is 38 75 45 4,0 25 it 20 1.23Y' SWAZILAND 75 0.5 470 3,5 --- 3fl 33 19 s0 73 71 38 3,8 51 24 22 1.00 TANZANIA 74 14,4E: 160E 5,34 37,0 36 ... 32 63 440 ... 349 -, 7 2 213: 0,30 TUNISIA 73 5,53E 6503: 6,3 23,4 37j 43 28 55 72 41 41 6,0 31 14 21 3,00 UGANDA 70 11.2E: 240E 5,2N 37.6CR 400 220 250 254 4BICY ... 36 ,, 14A 403:1 21 0.585Y UPPER VOLTA 72 S,RE 90E 4,0 23,9 65 20 6 5 30 *,, 45 18,0 20 2 23 0,01B1' ZAIRE 79; 24.1E ISOE 5,2CN 21,3C: 543: 17C 29C i5 63 38 444 6,0 43 8 24 0.9680 ZAMBIA 74 4.4 520 5,3 1'4.2 341 38 26 43 88 330 47 4,0 20 13 22 1.00 CENTRAL AMERICA AND THE: CARIBBEAN COSTA RICA 73 1.9: 4403 5,2 22.7 51'l 25 32 89 86CY1 65 2 3, 8 22CY1 25 12.113:4 DOMINICAN REP.7Z 4,6E: b5OE 3.0 1339 '32 24 22 St 80 37 94 3,00 63 33.5 24 7,00 EL SALVADOR 75 3,43E 4103: 3.6 23,4 61 5 22 608 653: ... 39CY ... 39 130c 21CY1 4 . 3581Y GUATEMALA 71 5.33: -580E 3,9 16,0 5s 23 24 47 64 26 35 3,0 64 8 25 4,09Y' HAITI 76 4,6F: 1754' 10 ,,. 61 23 31 208 2SF AS 56U 3,0 62 4 ,,, ,,, HONDURAS ~~~75 2.9 30 4.2G 1A,4G 62!0 350 190 Ss 76 30 35 3,0 80 11 17 4,00 JAMAICA 72 2,0O: 1,3903: 6,5Y 19,7 33lY 22Y TY 86 30601' ,. 2 ... ,. 3201' 19 4,79Y' MEXICO 70 57.93: l.O90E 2,6 9,3 54 24 32 76 71 33 46 3,0 63 19 23 6,32C:1 NICARAGUA 74 2,03: 67@E 2,5 14.2 611 13 13 57 65 23 37 2,0 43 17 24 7,00 TRINIDAD X T. 76 1.00 1,87SE: 3,4N 20,80 503: 25E 1333 90C 81 93 34 2,00 49 44 25 , SOUTH AMERICA BOLIVIA 76 S,4 31SF 5.0 17.5F: . . 38 17B 290 243 SF ,, 48 180,D BRAZIL 75 107.0 1,030 5.0 22,4 q2E 20;E 37;E 64A 860G , 27CY1 ,,, .., 260 15CY 6,008 CHILE 72 10,43: 8303E 4.6Y 10.6AY 361' 14Y 361' ,,, lItXDY , 37ev ... ... 451X1' ... ,, COLOMBIA 70 23.33: 500E 4,0 30,9 35 18 20 73 67 20 36 4.0 90 17 143 4.00 ECUADOR 72 649E '480E 3.7 27,7C 4591' 420Y' lOGY 69 72 ,,, 38 la ., 1 313 4.97BY GUYANA 74 O,4 500 5.8N 14,70 47r 35 lB 83A 920 39 33 6,0 19 62X 24 1,00 PARAGUAY 74 2.5 520 1.8 33,0 SS 13 22 43 82 26 30 3.9 69 17 12 5.00 PERIJ 72 14,93: 740E 4,5 24.1D SO 22 is 72 s0 38 39DY 3,0 70 30 23DY 12.00 VENEEUELA 73 31,6E: 1,960E 4,6 39,9 300 280 350 774 at ... 33 2,14 ... 33 ,,. 12,633:1  COMPARATIVI 9DUCATION INDICATORS (CONTh) ANNSEX 2, Page-2 NOV. 28, .197? I S S S 2 2 1 I 1 2 3 1 3 1 2~~~~~~I SGNP/ a I GNP I1 TOTAL:% Of PUBLIC : : : PRI, *AV,PRt, :$iEC a ICAPITA, DEVOTEDIPUSLIC S EDUCATION tLITER- I PSI. ICOMPLE- tSTU. ISCH.TEACHIPROSRESS.1 SEC, iSTU- i I IA[ I TO) EDU.1 EBP, I RECURRENT 3ACY IENRtOLLiTION iDENTStSALARY INSION RATE ,ENROLLtDENTSsHIGHERs IMARKETI (PUBLIC:DEVOTEDIEXP ALLOCATED: RAYE IRATIO IRATE FORsPER gRELATION uFROM PRI,iRATIO inFER inENROLLa i POlP, IPRICEPS EXP, I TOl s Too u(Z Of I NET iPRI,SCH,aTEACHS TO IANP/ InT SEC. in NET ETEAC0. RATIOI YRiMILLS,a U8SjS) ONLY) i EDU, IPRI. SEC. HI.,ADULTS)in CS) ,CYCLE(X)tER I CAPITA i (K) In (I) tER I) M (I) 11 (2) a (3) a (4) in C) I (6) : (7) : (8) a (9) a (00) I (it) :(12) :(11) 1adA)