Senegal - Technical Assistance Project

FILE COPY r Document of RETURN TO The World Bank REPORTS F)^SK FOR OFFICIAL USE ONLY ONE WEEK Report No. P-2144 SE REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF SENEGAL FOR A TECHNICAL ASSISTANCE PROJECT FOR THE PARA-PUBLIC SECTOR January 5, 1978 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.  lOLi Ui;. L ,-.bx 0 7 1978 CURRENCY EQUIVALENTS Currency Unit: CFA Franc (CFAF) US$1.00 = CFAF 245 CFAF 1 million = US$4,080 FISCAL YEAR Republic of Senegal: July 1 - June 30 WEIGHTS AND MEASURES EQUIVALENTS I meter (m) 2 3.28 feet (ft) 1 square meter (m2) = 10.76 square feet (sq ft) 1 kilometer (km) - 0.62 mile (mi) ABBREVIATIONS AND ACRONYMS ACC - Agent Comptable Central BOM - Bureau d'Organisation et Methodes CEP - Centre des Etablissements Publics COF - Controleur des Operations Financieres CVCCEP - Commission de Verification des Comptes et de Controle des Etablissements Publics FCP - Controleur Financier de la Presidence GESP - Groupe d'Etude du Secteur Para-Public ONCAD - Office National de Cooperation et d'Assistance au Developpement OPT - Office des Postes et Telecommunications PHU - Project Management Unit SAED - Societe d'Amenagement et d'Exploitation des Terres du Delta SOMIVAC - Societe pour la Mise en Valeur de la Casamance  FOR OFFICIAL USE ONLY REPUBLIC OF SENEGAL TECHNICAL ASSISTANCE PROJECT FOR THE PARA-PUBLIC SECTOR CREDIT AND PROJECT SUMMARY Borrower: Government of Senegal Amount: US$6.3 million Terms: Standard Project Description: A three-year program to assist Government in: (i) improving the efficiency of Government organizations charged with strategic analysis, operational supervision, and formal financial control over the para-public sector; and (ii) upgrading the auditing, financial management and accounting procedures for the sector as a whole and for a number of the most important public enterprises and mixed companies. The program provides for eight expatriate experts and an increase in local staff for Government control organizations; auditing, consulting services and training for four public enterprises and auditing of three mixed companies; and training staff in Government control organizations, Government representatives acting as directors of para-public sector companies, and accountants. The major beneficiary would be Government and the economy as a whole through the impact of better company performance on public finances, balance of payments, and the achievement of development objectives given to the para-public sector which currently accounts for more than 40% of value added in the modern sector. In addition to the usual problem of finding suitable advisers and ensuring their cooperation with local staff, the major project risks concern Govern- ment's commitment to continuing reform of the para-public sector without using project resources to overcontrol the sector and interfere excessively in company operations. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Project Cost (including t:axes) US$ thousands Local Foreign Total Salaries of technical assistance personnel - 2,110 2,110 Incremental local salaries and costs for Senegalese personnel 1,130 - 1,130 Short term consultants - 800 800 Auditing fees 210 1,630 1,840 Equipment, material and vehicles 60 380 440 Training and scholarships 10 650 660 Contingencies - physical 20 100 120 - price 480 700 1,180 Total (including taxes) 1,910 6,370 8,280 Total (net of taxes) 1,900 6,300 8,200 (in percentage) (23) (77) (100) Financing Plan: The proposed Credit of US$6.3 million would finance 77% of total project costs (net of taxes) representing 100% of the estimated foreign exchange component. The Government would finance all local costs, estimated at US$1.9 million equivalent. Estimated Disbursements: US$ millions FY79 FY80 FY81 FY82 Annual 1.6 2.1 2.1 0.5 Cumulative 1.6 3.7 5.8 6.3 Rate of Return: Not applicable Staff Appraisal Report: None /a /a See Report No. 1619a-SE dated June 1, 1977 on the para-public sector in Senegal which is being circulated separately as background.  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF SENEGAL FOR A TECHNICAL ASSISTANCE PROJECT FOR THE PARA-PUBLIC SECTOR 1. I submit the following report and recommendation on a proposed Development Credit to the Republic of Senegal for the equivalent of US$6.3 million on standard IDA terms to help finance a Technical Assistance Project for the Para-Public Sector. PART I: THE ECONOMY 2. A report entitled "The Economy of Senegal" (212-SE) was distri- buted to the Executive Directors on September 10, 1973. Since then, a series of preparatory sector missions and a basic economic mission visited Senegal to update the macroeconomic data base and to review the country's development strategy. The following paragraphs reflect the findings of these missions, whose conclusions will be included in a basic economic report now being prepared. Updated country data appear in Annex I. Economic Structure and Past Developments 3. Senegal is situated at the extreme western part of the African con- tinent. In the interior, the mainstay of the economy is millet cultivation and nomadic cattle-raising for domestic consumption, and groundnut cultiva- tion for exports. Soils are generally poor, and variations in rainfall periodically cause severe food shortages in the months between the sowing and harvesting of the next crop. The large river basins -- some of them fed in the tropical rain zone -- have so far been exploited only marginally. Land distribution is fairly even. In the western part of the country arable land is becoming scarce, but in the extreme south-east some good land is still available. The modern sector of the economy is concentrated in Dakar, a well organized city of about 1 million inhabitants. The economic base of Dakar consists of excellent port facilities, an industry which is turning gradually toward exports, and a small but fast-growing tourist sector. Senegal's per capita GNP for 1976 was estimated at $390, but average in- come in Dakar is roughly five times as high as in the countryside. 4. During the 1960s, the Senegalese economy experienced virtual stag- nation as real output increased less rapidly than population, and per capita GNP declined. Two factors were responsible for this situation. First, with independence, Senegal lost its privileged position as the center of French West Africa, and therefore had to adjust to reduced economic, administrative and political circumstances. Secondly, in the latter part of the decade, groundnut production fell due to unfavorable weather and declining export prices. In the 1970s, a new stage in Senegal's development set in, charac- terized by a higher rate of private and public investment. Private invest- ments, which had hovered around 4 percent of GDP in the late 1960s, rose to 8 percent during the period 1970-75. Until 1972, public investments stayed at around 5.5 percent of GDP, but increased to 7 percent during the 1973-75 period.  - 2 - 5. While the 1970's saw a rise in the rate of investment, output and incomes were depressed in 1972 and 1973 by the Sahel's most severe drought in over a century, which brought a decline in real national income. After 1973, when weather conditions improved and purchasing power of the rural population was restored, both agricultural and industrial production shot up. The long-standing Government program to modernize rainfed agri^ulture proved to be very successful in years with better rains. In 1975/76 the groundnut crop reached a historical record of 1.45 million tons (more than double the average for the 1968-73 period), followed by a crop of 1.1 million tons in 1976/77 but the 1977/78 crop was again below average because of bad rainfall; manufacturing industry grew by about 11 percent per year between 1973 and 1975. Total production increased in real terms by 4 percent in 1974, about 10 percent in 1975, and 6 percent in 1976 but will stagnate in the following two years due to less favorable crops. 6. Strong price increases for Senegal's major exports helped to bring about the economic recovery. The prices of both groundnuts and phosphates quadrupled over the period 1969-74, providing strong incentives to production. However, since prices of imported o:il and food also increased at high rates, the gains in real income from the rise in export prices were limited. More- over, in 1975 international prices for Senegal's exports again began to fall, almost offsetting the growth in real output. These wide international price fluctuat-ions had serious consequences on domestic prices, public finance, and balance of payments. Public Finance and Balance of Payments 7. The Government responded with flexibility in the adoption of econo- mic policies. In 1974, the Governme!nt initially tried to maintain stable domestic prices in the face of the skyrocketing food import prices. By end- 1974, it became clear that the costs of this policy were becoming excessive and that changes would need to be made, even though transfers to the public sector resulting from improved groundnut production and prices were much higher than in the preceding year. To reduce subsidies and put public finances on a sounder footing, the Government raised the prices for rice, sugar, and groundnut oil by 40 to 90 percent. To compensate for the rapid increase in basic food prices, Government salaries were raised on average by 16 percent, with actual increases ranging from 60 percent for the lower grades to 3 per- cent for the higher ones. The minimum wage was increased by 47 percent thus raising the entire wage scale of the private sector. Average consumer prices rose by some 28 percent in six months' time, but the Government managed to stabilize prices almost completely thereafter. At the end of 1974, the Government also increased producer prices for groundnuts to bring them closer to world prices which were at that time particularly high. The cost to the Treasury of this latter step was expected to be compensated in large part by additional revenues from the profitalble phosphate mine in which the Government increased its participation while levying an 80 percent tax on the excess profits accruing from the quadrupling of the export prices of phosphates in 1972/73. In 1974 and 1975, Government revenues from phosphates amounted to roughly $45 million a year.  8. These steps led to an increase in public savings from a yearly average of US$27 million during fiscal years 1970 through 1973, to US$46 million during fiscal years 1974 through 1976. The higher level of public savings was doubtless an important factor in stimulating the Government to increase its expenditure on public investments from a yearly average of US$24 million to US$56 million during the same two periods. In addition to the rise in investment, purchases of equity and lending to domestic enterprises by the Government increased from an annual average of US$5 million to US$42 million, mainly because of the participation in the phosphate mine and the acquisition of two foreign-owned public utility companies. The combined capital outlays of the Government were thus substantially in excess of public savings, and were financed in large part through foreign bank loans. As a consequence, foreign debt service carried by the Central Government increased from $8 million in FY73 to $38 million in fiscal year 1976, representing about 10 percent of Central Government revenues. 9. The balance of payments came under heavy pressure in 1973 because of low groundnut exports and increasing imports of foodstuffs and equipment goods, and net foreign reserves of the country fell to minus US$15 million. In the following years the deficit on current transactions was reduced, but the outflows of private capital related to the acquisition of foreign enter- prises continued, and net foreign reserves reached a level of minus US$48 million at the end of 1975. This was financed by US$30 million in IMF oil facilities, and the rest by increasing indebtedness of the mostly foreign- owned commercial banks with their parent companies. Senegal's membership in the West African Monetary Union lessens the risks usually associated with such low foreign reserves. Senegal will also be eligible for approximately US$7.7 million from the IMF Trust Fund in 1978. 10. During 1976, the balance of payments remained under pressure. The state marketing board purchased the large groundnut crop from the farmers at the favorable prices established in 1974, injecting massive purchasing power into the economy, while continuing expansive monetary and budgetary policies. This substantially increased the demand for imports. However, export revenues stagnated since groundnut prices were 45 percent below the 1974 peak, and phosphate prices were down by 40 percent. Price declines of the same order of magnitude took place in some of Senegal's food imports, but the net effect on the terms of trade was heavily negative. 11. The drop in export prices also created a considerable problem for public finance. The losses on groundnut transactions in the stabilization fund were, to a large extent, compensated by gains on the domestic sales of rice and sugar imports, but budgeted revenues from excess profits on phos- phate operations did not materialize, creating unexpected deficits during 1976/77. Moreover, the decline of phosphate revenues diminished Government's ability to cover its financial deficits on the Eurodollar market. In January 1977, the Government decided to adjust its fiscal policies. It postponed all new current and capital expenditure programs, increased duties on imports from the EEC, and increased the sales tax and taxes on the export of groundnut products. It also abolished subsidies on wheat flour, and reduced fertilizer  - 4 - subsidies slightly. The whole package should improve Government finances by $37 million on an annual basis which will, to a large extent, compensate for the loss of phosphate revenues. Finally, in 1977 there was a recovery of groundnut prices, which eliminated the losses on groundnut transactions in the stabilization fund. One can conclude that the Government has successfully restored a balance in its current operation. Prospects and Creditworthiness 12. The Government's long-range development strategy remains based on promotion of agriculture and export-oriented activities. The agricul- tural program calls for development of areas less affected by rainfall fluctuations (Casamance-and Eastern Senegal) where cash crops other than groundnuts can be grown. Irrigated cereal production is being developed in the arid northern part of the country along the Senegal River. This policy will make the country less dependent on the uncertainties of its climate and world market prices; but since the majority of the rural poor are involved in groundnut farming, the Government.is continuing its efforts to promote animal traction, treated seeds, fertilizer use, and crop rotation to raise the productivity of farmers. The Government also aims at long-term improvement of the balance of payments mainly through modest expansion of phosphate mining capacity, promotion of local cereal production to reduce the heavy burden of food imports, and development of light export industries and of tourism. The Government is activrely preparing projects in these fields, but because costs are relatively high in mining and other export sectors, progress in developing efficient investments may be slow, and a cautious view of the long-term outlook is warranted. With chances for export growth limited, and substitution of locally produced cereals for imports critically dependent on very large investments in irrigation, the trade deficit may stay high, even if the growth objective is cut back to about 4.5 percent a year, as compared to an official objective of 5.8 percent. Foreign capital aid and some commercial loans are expected to be available up to a potential of $214 million a year during the 1977/78-1980/81 Plan period in order to finance a widening gap in the balance of payments. 13. In the medium term, the Government will need a relatively large proportion of foreign financing for its public investment program. The share of the public sector in total investments will go up, partly because of the critical dependence of the economy on the acceleration of publicly financed irrigation, partly because of the increased share in ownership and control which the Government has recently acquired in the most important sectors of the economy, and partly because of the private sector's low pro- pensity to invest due to high producition costs in Senegal. Unfortunately, public savings cannot be expected to increase at the same pace as public investments. The tax effort is already considerable in Senegal, and all addi- tional taxable capacity has been used to offset the revenue losses in the phosphate sector. There may be scope for slowing down growth of recurrent expenditures in some categories of the budget; however, insufficient mainte- nance of the existing capital stock, operating costs of ongoing development projects, and efforts of foreign donors to persuade Government to increase its  contribution to their current programs all augur for higher recurrent ex- penditures, which in turn limit the possibility of significantly increasing public savings. The Government could further increase taxation of groundnut farmers; but since this is still the most profitable large scale production open to Senegal, higher taxation of this sector would harm the long-term growth prospects of the economy. Additional savings would have to be generated within the para-public sector whose efficiency Government is trying to improve for this purpose. 14. Through the economic stabilization program launched in 1977, the country reestablished itself as a potential borrower of Eurodollar funds. Should the Government use these funds to finance projects whose internal cash generation covers the additional debt service, then the availability of Eurodollars will not worsen the public finance situation. However, if this borrowing is used to finance infrastructure or social projects which do not generate cash, the high debt service on these loans would compete with other recurrent expenditures essential for economic development. With- out a sufficient level of public savings, the periodic disturbances inherent in the Senegalese economy could easily force the Government to a position of having to roll over medium-term commercial debt. In such a case, the confidence of foreign private lenders would be eroded and the country's creditworthiness would be adversely affected. To avoid such a situation, one important step would be an undertaking by Government to foreign donors that at least 15% of the public investment program would be financed from public savings (in the Fourth Plan, 1973/74 - 1976/77, public savings financed 30% of public investments mainly because of the relatively low level of public investment actually achieved). Achieving the 15% target during the Fifth Plan period means a 25 percent reduction in planned investments, and a rigorous screening of new projects on the recurrent costs that they may generate. As to foreign financiers, it would mean that out of the roughly 85 percent of projects financed by them a substantial part of the local costs would be covered. This high percentage of foreign financing would have to be main- tained for some years to give the Government time to make the structural changes required to achieve a more satisfactory contribution to public invest- ment. 15. On the assumption that Government takes steps to maintain a balance between public investments and public savings, Senegal would remain credit- worthy for lending on IBRD terms. The Government has demonstrated its commit- ment to development by increasing public investments between 1970 and 1976 by 19 percent per year in current prices. The development strategy continues to be based on agricultural production and rural development, to which 27 percent of the new investment program is allocated. The Government has also demon- strated its capacity to respond adequately to the problems which its vulner- able economy is bound to encounter periodically. There are also reasonable prospects for long-term diversification and growth. Senegal's access to short-term financing facilities and membership in the West African Monetary Union also reduces the risks associated with economic fluctuations. However, lenders (including the Bank) should provide a large part of their assistance on concessionary terms in order to avoid a rapid build-up of debt service. In  -- 6 - conclusion, assuming the continuatic'n of responsive and sensible policies, public debt service is expected to increase from 6 percent of export earnings in 1976 to roughly 11 percent in 1980, and to be kept between 10 and 15 percent in the long run. PART II: BANK GROUP OPERATIONS IN SENEGAL 16. The Bank Group has had 37 operations in Senegal to date. Total outstanding lending amounts to US$167.8 million, including eighteen IDA credits, thirteen Bank loans, two blends of Bank and IDA funds, three IFC operations, and one blend of Bank and IFC funds. Annex II contains a summary statement of Bank loans, IDA credits and IFC investments as of November 30, 1977, and notes on the implementation of ongoing projects. Execution of these projects is progressing reasonably well, except that some operations particu- larly in highways and education have been affected by the shortage of counter- part funds due to the Government's continuing difficult public finance situa- tion, as well as by lack of qualified local staff for key positions. The Government is very well aware of the need to constantly seek ways to reduce delays caused by these problems, and particularly of the importance of assur- ing good management supervision of projects in all sectors. In this respect, we shall try through the technical assistance program proposed in this report to resolve on a sector-wide basis some of the issues regarding the general situation of the country's finances and Government control of public enter- prises and mixed companies, particularly those which are channels for Bank Group assistance. 17. The Bank Group's share in total disbursements to Senegal over 1976-81 will stay at around 15 percent, of which roughly 40 percent IDA. The Bank Group's share in outstanding debt was 21 percent in 1976, and will slowly start to surpass that level after 1981. The Bank Group's share in public debt service is expected to increase from 3.8 percent in 1975 to about 8 percent in 1981, a rise which is mainly due to the increase in Bank loans from 17 percent of Senegal's outstanding debt to the Bank Group in 1976 to about 40 percent by 1981. 18. The objectives of Bank Group lending in Senegal fall under five main headings. We continue to give priority to rural development, including development of irrigation in the Senegal River Valley Region (e.g., the ongoing River Polders project, and the recently appraised Debi Lampsar Irri- gation Development project), intensification of groundnut production and diversification into new crops and new regions (e.g., the Sine Saloum agri- cultural development project, Eastern Senegal Livestock projects, and the Second Sedhiou rice project in Casamance); as in the past, we would expect our agricultural lending over the next few years to exceed one-third of the total. Secondly, we have supported diversification of the economy by lending to the growing industrial sector through the Societe Financiere Senegalaise pour le Developpement de l'Industrie et du Tourisme (SOFISEDIT), a development finance company established with Bank Group assistance in 1974. This diversification objective is being further assisted by a second Loan to SOFISEDIT approved  early in FY 77 which includes provision for developing an integrated scheme to provide assistance to small-scale Senegalese entrepreneurs, as well as by a tourism project approved later in FY 77 for construction of infrastructure and common facilities to support a 2,500-bed hotel development on the Petite Cote. Thirdly, we have encouraged modernization and expansion of the country's infrastructure particularly through lending in all modes of the transport sector; we are pursuing this effort through a project for a major extension of the Dakar Fishing Port approved by the Board in April 1977, and through a proposed third operation in the Senegalese railway system geared to improving its organization, management, and operating and financial performance. Fourth, Government has asked us to help re-orient and expand the country's education system at all levels, and we have identified a proposed Third Education Project which would help meet some of the major objectives in the sector, particularly the need for trained high- and middle-level technicians and managers in the modern sector and in agricultural development activities, and enable a start in gradually reducing existing widespread functional illiteracy. Overall, we remain conscious of the need to prepare project components in the social services sector (particularly nutrition and health), within the limits of the Government's ability to bear the recurrent costs involved. And finally, we are assisting Government in increasing its absorp- tive capacity for planning, executing and managing development projects through institutional support within individual Bank Group projects and through broader efforts such as the proposed project. PART III: THE PARA-PUBLIC SECTOR AND THE NEED FOR TECHNICAL ASSISTANCE 19. A key channel for Government's development strategy is the para- public sector composed of public enterprises which are wholly Government- owned, and of mixed companies owned both by Government and private entre- preneurs. Senegal has not yet developed an overall philosophy of what role the para-public sector should play in the economy, but has instead approached the question on a case-by-case and sector-by-sector basis. Reasons for Government intervention have included inter alia: (i) to establish national control over key sectors, especially those involving important national resources (groundnuts and phosphates), infrastructure, and essential services; (ii) to improve control over its balance of payments by taking equity posi- tions in major export industries; (iii) to promote development in promising areas (tourism, cotton, sugar) where private initiative has proven insuffi- cient; (iv) to provide infrastructure, credit, research and promotion to achieve faster economic development and to acquire new technology and manage- rial expertise from abroad; and (v) to stimulate modern sector employment, attract foreign financing, and develop organizational structures more flexible than Government's own administrative services. 20. Government is now involved in almost all parts of the economy. It has acquired about 50% of the capital of the banking and phosphate mining sectors, owns all of the major public services (water, electricity and urban transport, railways and ports) and is deeply involved in lower and middle  - 8 - income housing. In the agricultural sector, there are now seven public enterprises and six mixed companies providing essential agricultural inputs and services, handling the market:Lng of products and the development of agro-industry. Government has recently been increasing its role in industry, even though this sector is still largely dominated by private enterprises. Growth of the para-public sector has been relatively recent, with about half of the 148 para-public companies I/ in which Government has a direct or in- direct interest created since 1973. In 1972, direct and indirect Government participations in mixed companies alone amounted to US$28.8 million, and by 1976 this figure had increased to US$93.1 million. The sector's growth was made possible by allocating to it much of Senegal's considerably increased revenues from favorable groundnut and phosphate prices during the 1973-75 period, and from borrowings on the international money market. Except in the case of public enterprises in public services and in the agricultural sector, the mixed company formula has been adopted for the most part by Government because of its greater managerial flexibility, the autonomy it often has from cumbersome Government administrative and procurement prac- tices, and the possibility it affords to bring in private Senegalese and foreign partners. Economic and Financial Importance of the Sector 21. As the para-public sector has grown, so has its relative impact on the economy and on public finances. With total annual investments of US$38 million, the para-public sector accounted in 1974 for 48% of gross fixed capital formation in the modern sector 2/, and 43% of value added. In 1974, the sector's exports totalled 36% of modern sector exports and 30% of its imports, and employed about 31% of total modern sector employees. The propor- tion of Senegal's foreign debt attributable to loans to para-public sector enterprises, including loans to finance Government participations, has increased from a cumulative US$9.6 million or 16% of total disbursements in 1965, to US$35.7 million or 40% in 1970, and to US$163.5 million or 67% in 1975. Annual service payments on para-public enterprise loans have risen from 32% of total public debt service in 1965 (US$0.9 million) to 62% in 1975 (US$23.4 million). 22. While the para-public sector in Senegal is still very young and it is too early to make a definitive assessment of its overall performance, a 1/ Government participations are concentrated very heavily in a relatively small number of large mixed companies and public enterprises. Equity holdings in 33 enterprises accounted for 87% of the value of Govern- ment's portfolio in 1976. A breakdown of para-public companies by sector is shown on page 7 of the accompanying report (No. 1619a-SE). 2/ The modern sector in Senegal consists of some 1,409 companies which in 1974 had at least an elementary accounting system which permitted them to be included in Government's census of public and private companies.  number of problems have become evident and need to be addressed by Government. These problems can be classified into three categories: (i) inadequacy of Government strategy towards development and supervision of the para-public sector; (ii) poor economic and financial performance of the sector; and (iii) chronic problems of internal management and accounting with regard to indivi- dual companies. Government Strategy 23. The rapid growth of the para-public sector has taken place in a largely uncoordinated and unplanned fashion, sometimes without consideration of the overall impact on the economy, particularly on public finance. This has led to a diversity of large and small investments over which Government has little control, but for which Government has often committed itself to a high degree of risk without clearly analyzing the benefits. A substantial part of Government investments in recent years has been made to purchase private (and usually foreign) equity in existing enterprises. Such invest- ments have, on almost all occasions, amounted to replacements of already invested capital, which have consequently generated neither additional jobs nor additional funds for Government. There is an urgent need for the estab- lishment of an investment evaluation unit which would use objective and rational criteria to analyze proposed Government investments detailed in studies presented to it by the technical ministries. Supervision and Control 24. Supervision and financial control of public enterprises has been undertaken for the most part by the Center for Public Enterprises (Centre des Etablissements Publics 1/, CEP) in the Ministry of Finance and Economic Affairs. Since its creation in 1966, CEP has improved Government control of public enterprise finances and accounting. However, the requirement that public enterprise managers submit financial transactions to CEP for prior approval is time-consuming, and has often considerably hampered the normal functioning of public enterprise operations. As the performance of individual public enter- prises improves, they should be less subject to CEP's prior control. Those enterprises having difficulty, on the other hand, should receive management assistance and financial discipline from CEP which has not been able to do this up to now because of lack of qualified staff. 25. Government has supervised mixed companies by appointing unsystema- tically, if at all, State Controllers in the Ministry of Finance to represent the State on boards of directors. The State Controllers are usually middle- level civil servants with no business or management experience and, being only part time, they can devote little attention to their additional duties control- ling mixed companies. The State Controllers system has been unable to serve 1/ CEP is composed of the Controller of Financial Operations (COF) which reviews all public enterprise financial transactions and the Central Accounting Agent (ACC) which is responsible for the accounting standards and budgeting practices of public enterprises.  - 10 - either as a means of supervising mixed companies or of providing Government policymakers with the appropriate information on company activities. The office of the Financial Controller of the Presidency (FCP), in addition to monitoring execution of the national budget, has on an ad hoc basis been successful in drawing Government's attention to the most serious problems in individual mixed companies (para. 29). The proposed project would assist Government in improving its strategic analysis and operational supervision of the para-public sector, both for public enterprises and mixed companies. Economic and Financial Performance 26. While the data collection system for the para-public sector is very weak, an economic census was done by Government for 1974 which showed that, excluding phosphates 1/, the drain on public finances due to the para-public sector was about US$36 million, including some new investments. To the extent that phosphate revenues decline or are not used by Government to finance the para-public sector, the sector in the future will have to raise a large propor- tion of its funds from internal cash generation which has not been possible so far. It is for the most part a few public enterprises and mixed companies which request Government assistance to cover their losses. But the deficitary companies take badly needed funds away from more promising enterprises which, because of Government's current difficult public finance situation, are often undercapitalized, are owed large debts by Government, and are thus heavily dependent on expensive commercial borrowing. The proposed project would help Government improve its systems and procedures for monitoring the para-public sector's economic and financial performance, and for rationalizing its response to problems. Management and Accounting 27. The para-public sector suiEfers from a shortage of trained managers at the middle and upper levels, largely due to the lack of educational facil- ities in Senegal for management training. The rapid expansion of the sector has also greatly increased the demand for skilled middle-level technical staff. Financial planning and accounting standards are generally weak, and management often lacks the reliable data necessary for controlling operations. Government rarely has the information on which to judge performance, especially for the major public enterprises such as the agricultural development agencies and public utilities which are essential to economic development. The absence of proper analytic accounting and accurate data is an impediment to reform of the para-public sector. Harmonizing accounting standards is consequently extremely important and must be accompanied by more training of accountants, as well as improved financial systems and procedures on the company and national level. Government is committed to improving the internal accounting and external auditing standards of para-public companies, and assistance for 1/ Phosphates were excluded because the temporary high profits for 1974/75 concealed the losses for the rest of the sector which have emerged now thaLt phosphate prices have dropped dramatically.  - 11 - this is inc]udi.d under the proposed project. Government is also considering development of a management education scheme not only for the para-public sector but also for the civil se-vice and the private se tor. The Bank Group is discussing with Government the possibility of including such a mana ement education scheme in a proposed Third Education Project to be appriised in 1978 (se, para. 3'). Ref _rm of the Para-Public Sector 8. Governmenrt has become increasingly aware of the problems posed by 0!,? para-public sector, particularly its drain on public finances and its fa. :re to a hbieve development goals. The Prime Minister created in early 197T a task force of various Government organizations which would report to Lim on means of reforming the para-public sector. In June 1976, a Bank mission, including a representative of Government, visited Senegal to do an organizational and financial analysis of the sector. Government's immediate priorities were to have a report which: (i) revealed the size and extent of the para-public sector; (ii) calculated the cost of the sector to Government; (iii) made functional recommendations about what could be done to improve Government control; and (iv) provided Senegal with an overview of how para- public sectors in other parts of the world were controlled. When the report was discussed with Government, the Bank indicated that in addition to its functional recommendations, Government needed to make some political decisions about how to reform sector control and about which institutions should handle the reform. In February 1977, the Prime Minister informed the Bank that the necessary decisions had been made and would be incorporated in a new law to reform Government control of the para-public sector. At that time, he asked the Bank to consider financing a technical assistance project to help implement the new law, since earlier efforts in 1966 and 1972 to reform control of the sector had failed largely because of a lack of resources and qualified people available for the control organizations. The Association has reviewed and agreed to the text of the new reform law which has now been signed and ratified. 29. The para-public reform law of 1977 emphasizes the need for unity of Government relations with and control over the sector . Under the new law, the Financial Controller of the Presidency (FCP), an office which deals directly with the President, the Prime Minister, and other Ministers, will be responsible for: (i) Strategic Analysis. The FCP will provide strategic analysis of the entire para-public sector, which will involve advising Gov- ernment on sub-sector policies, as well as on the creation of new companies, large capital expenditures, and annual company budgets; (ii) Operational Supervision. The FCP will monitor to see if the objectives given by Government to para-public companies are being achieved. In addition, the FCP will try to anticipate problem areas through supervision of company management; and  - 12 - (iii) Formal Control. The FCP will exerci e ex post facto formal financial control of mixed companies and of two of the largest public enterprises -- the groundnut iarkeJing company, Office National de Cooperation et d'Assistalce au Developpement (ONCAD), and Senegal Railways. The other pubLic enterprises will continue to have various degrees of prior financiai control exercised by the CEP until their accounting standards and financial management are improved enough for Government to give them more autonomy. 30. The staff of the FCP, including full-time State Controllers for mixed companies, will be upgraded and expanded to meet its new responsibil- ities. The CEP is being reorganized to provide positive help in accounting and management to the public enterprises under its supervision. Both the FCP and CEP would receive assistance under the proposed project. 31. Two Government organizations involved in the para-public sector are currently receiving some technical assistance from the French Fonds d'Aide et de Cooperation (FAC) and from the United Nations Development Programme (UNDP). FAC is providing two advisors to the auditing commission (CVCCEP) (para. 36), and UNDP has a program for upgrading the staff of the Bureau d'Organization et Methodes (BOM) (para. 38). However, neither FAC nor UNDP has sufficient resources available within their programs for Senegal to finance this project. PART IV: THE PROJECT 32. The proposed project was iidentified in February 1977 following a re- quest by Government. Subsequent preparation was undertaken with the assistance of Bank staff, and the project was appraised in July 1977 by a mission includ- ing Messrs. J. Brown, P. Dufour, P. Levy, H. Nickel and A. R. Whyte (IDA) and J. Kubes (consultant). Negotiations were held in Washington December 12-13, 1977 with a Senegalese delegation led by Mr. Ousmane Seck, Minister of Plan and Cooperation. A Credit and Project Summary is provided at the front of this report, and further details on the proposed technical assistance program are given in Annex IV. A report on the para-public sector in Senegal (Report No.1619a-SE dated June 1, 1977) is being circulated separately as background. Project Description and Objectives 33. The project would support a three-year program aimed at strengthen- ing and improving Government monitoring and the performance of the para-public sector as a whole, and of certain key mixed companies and public enterprises. Specifically, the project would help: (i) improve the efficiency of Government organizations charged with strategic analysis, operational supervision, and formal control over the para-public sector;  - 13 - (ii) upgrade the auditing, financial management and accounting proce- dures and staff for the sector as a whole, as well as for four of the most important public enterprises, and for three mixed companies; and (iii) train Government officials dealing with the para-public sector, including staff of Government control organizations and repre- sentatives on boards of directors of para-public sector companies. 34. The project would include the following components: A. Government Control Organizations: (i) Financial Controller of the Presidency (FCP). The appraisal mission assisted the FCP in defining its new objectives, sys- tems and procedures, personnel needs, and organization chart in order to carry out its responsibilities under the para- public sector reform law. The new FCP organization dealing with the para-public sector would be headed by a Division Chief under whom there would be two functional service sections (documentation and data collection, and legal and accounting), and five operational sections divided by sector of activity (agriculture, agro-industry and fisheries; industry and mining; infrastructure and transport; tourism, communications and services; and financial institutions). The proposed project would include four expatriate experts for three years (a management specialist who would advise the FCP division chief, a financial and accounting specialist, an economist with experience in agriculture and agro-industry, and an industrial sector specialist). The proposed terms of reference for these experts are in Annex IV, Appendix I. Government has agreed that these as well as other experts financed under the project would be selected by June 30, 1978 (Schedule 4 of the Credit Agreement). The project would also include equip- ment and materials, vehicles, and a consultants' budget to perform specialized studies. The eight Senegalese staff in the FCP dealing with the para-public sector would be progres- sively increased to 26 by 1981 to carry out the FCP's new duties and as the technical assistance personnel are replaced by Senegalese. The additional positions for Senegalese personnel are included in the project costs, and would be financed by Government. The recruitment of high-level Sene- galese with experience in both administration and business management is essential for the FCP to perform its strategic analysis, operational supervision, and formal control over the para-public sector. Government discussed with the Association and will carry out a program to recruit and train qualified Senegalese to staff the expanded FCP (Section 3.05(b)(c) of Credit Agreement); the proposed new organization structure of the FCP has also been discussed and agreed.  - 14 - (ii) Ceiter for Public Enterprises (CEP). The CEP, which retains fii,ancial control for most public enterprises through the COr, has recently created a management assistance unit to up;rade public enterprise performance by: (a) advising individual enterprises on management problems; and (b) adapting CEP rules to make them more appropriate for individual management situations. This unit, by improv- ing public enterprise management, would permit CEP to gradually reduce its a priori financial control; the unit would be reinforced for two years by a management specialist included in the project. The proposed terms of reference for this expert are in Annex IV, Appendix 2. B. Auditing, Financial Management and Accounting 35. Public Enterprises. Improved operations of para-public sector companies will occur only if management and Government control organiza- tions have the appropriate company level data on which to make policy decisions. The proposed project therefore includes financing of annual audits, training of accountants, and consulting services to improve the financial and accounting systems and procedures over three years for four of Senegal's major public enterprises selected by Government, in consultation with IDA, because they are among the enterprises which play a key role in executing the Government's development plans (Section 3.06 of Credit Agree- ment). These public enterprises are: (i) ONCAD, the national groundnut marketing agency which also assists cooperatives and provides farmers with agricultural inpu.s such as seeds, fertilizer, pesticides, and equipment; (ii) Office des Postes et Telecommunications (OPT), the telecommunications and postal agency; (iii) Societe d'Amenagement et d'Exploitation des Terres du Delta (SAED), which is responsible for implementing Senegalese national projects within the framework of regional development of the Senegal River Basin; and (iv) Societe pour la Mise en Valeur de la Casamance (SOMIVAC), the regional agricultural development agency for the southern Casamance region. If this pilot program is successful in achieving its objectives, it could be replicated in other public enterprises and also in mixed companies. In addition, two man-years of technical assistance and a short term consultants' budget would be provided to the Central Accounting Agent (Agent Comptable Central, ACC) in the CEP to improve accounting systems and procedures, and for the possible introduction of analytical accounting for public enterprises in addition to the four mentioned above. The terms of reference for this expert are in Annex IV, Appendix 2. 36. Mixed Companies. The Auditing Commission (CVCCEP), a specialized unit in the Supreme Court, is responsible for reviewing the accounts not only of public enterprises but also of mixed companies, ex post facto on an irregular basis and as the need arises. Up to now, the Commission's audits of large mixed companies which are b,eyond the capacity of its own staff  - 15 - have been paid for by the institutions being audited, and the accounting firms chosen largely by these institutions. This has proven to be a very unsatisfac- tory arrangement especially for companies with poor performance which have not wanted to be audited, and it has seriously reduced the effectiveness of the Commission's work because of delays and disagreements over auditing firms. The project would include financing for one major audit and one follow-up audit of three important mixed companies for which the Commission's staff does not have the required capacity. The companies to be audited will be chosen in consulta- tion with the Association (Section 3.07 of Credit Agreement). Government has agreed: (a) to submit by December 31, 1978 for review and approval by the Association a permanent plan for financing the Commission's outside auditing work; and (b) that CVCCEP will comment annually on the quality of all audits carried out in the para-public sector (Section 4.02 of Credit Agreement). C. Training of Public Enterprise Management and Control Agency Staff 37. The success of the project depends on improving management and accounting skills within the Government's control agencies concerned by the project, at the level of company directors, and in the finance/accounting departments of para-public sector companies. To ensure that sufficient attention is paid to the training of national staff in these fields, the training function will be separated from that of operational technical assis- tance to the control agencies. The project would finance six man-years of specialist services in modern management techniques and company-level deci- sion-making to respond to the most urgent short-term training needs in the para-public sector. Terms of reference for the two experts are included in Annex IV, Appendix 3. In the long run, more permanent structures for manage- ment training will be required, and the Government has requested Bank Group assistance for creation of appropriate structures in the framework of a pro- posed Third Education Project. 38. The Bureau d'Organisation et Methodes (BOM), a consulting and training institution in the Office of the Presidency, will be responsible for training under the project. In addition to the proposed specialist services, the Credit would finance the expansion of BOM's instructional resources to meet the tasks imposed by the project. Courses will be devel- oped around case studies reflecting the types and level of management prob- lems current in the sector. This will involve close collaboration between the training specialists and the agencies and companies concerned. Course material will comprise reusable packages of printed and audiovisual mate- rials, together with tests designed to permit measurement of the trainee's acquisition of new knowledge and skills. The target groups concerned are staff of the FCP, the CEP and the CVCCEP who will be selected by their super- visors and made available full-time for training during the course periods. The project would include short-term overseas scholarships for training in specialized fields. 39. The training staff will also organize a series of workshops for key members of boards of directors of selected enterprises to improve their skills in accounting, decision-making and in the organization of effective  - 16 - meetings. In the more specialized task of upgrading the skills of company accountants, in particular those from the four public enterprises mentioned in para. 35, the BOM plans to collaborate with the Commercial Department of the University Institute of Technology which operates successful courses for private sector accountants. All training courses will be evaluated by the target agencies and by the participants themselves. Project Organization 40. To ensure proper coordination and implementation of the various project components, the project would be directed by the chairman of the Prime Minister's task force on the para-public sector (GESP). His position would give him direct access not only to the Prime Minister and the heads of the key government services concerned by the project, but also to the President's principal advisors who are likewise ex-officio members of the task force. The Project Management UJnit (PMU) would be located in the Prime Minister's Office, with a deputy project director responsible for day-to-day management of the project (Section 3.08 of the Credit Agreement). A project director and deputy director acceptable to the Association have been selected by Government. The responsibilities of the project director, deputy director, and of the heads of the services concerned directly by the project are detailed in Annex IV, Appendix 4. Key PMU responsibilities are supervision of the proj- ect, and the conduct of interim evaluation.studies, assisted by consultants, of the project's progress toward its; objectives. The last of these studies would constitute the project completion report (Section 3.04(c) of Credit Agreement). Major responsibilities of the heads of services are the establish- ment of quarterly budgets and work programs, and the selection, supervision, and evaluation of technical advisory personnel financed by the project. The project would provide equipment and materials for the PMU. The audits will be supervised by the Auditing Commission in coordination with the para-public task force and the companies involved to ensure the integration of the audits, consulting services and training. Costs and Financing 41. The total cost of the project, net of taxes, is estimated at US$8.2 million equivalent including physical and price contingencies, with a foreign exchange component of US$6.3 million (77%). Taxes are estimated at US$80,000 equivalent. The proposed IDA Credit of US$6.3 million would finance the entire foreign cost component of the project, with local costs estimated at US$1.9 million equivalent financed by Government. Retroactive financing of about US$25,000 is recommended to meet recruitment costs of technical assistance experts in order to accelerate project implementation. Details of project costs by organizational unit are given in Annex IV, Table 1. The financing plan showing the proposed application of the contributions by IDA and Govern- ment is as follows:  - 17 - US$ millions Government IDA Total Salaries of technical assistance experts - 2.11 2.11 Incremental salaries, travel and allowances for Senegalese pro- fessionals 1.13 - 1.13 Consultants' budget - .80 .80 Auditing fees .21 1.63 1.84 Equipment, materials, and vehicles .05 .31 .36 Training and scholarships .01 .65 .66 Contingencies - physical .02 .10 .12 - prices .48 .70 1.18 Total (net of taxes) 1.9 6.3 8.2 (in percentage) (23) (77) (100) The estimated costs cover 22 man/years of advisors and approximately 8.3 man/years of consultants. Cost per man/month, including allowances and travel, would amount on average to about US$8,000. Physical contingencies have been applied only on the item for equipment, materials, and vehicles. Price contingencies of 10 percent per annum have been included for advisers, consultants, local salaries, equipment, materials, vehicles, training and scholarships. Price contingencies of 7 percent per annum have been added for auditing fees. Procurement and Disbursement 42. The selection of consulting services and auditors would be in accordance with Bank Group guidelines. All the contracts for consulting services would be subject to prior approval of the Association. Equipment, materials, and vehicles would be procured through local competitive bidding following local procedures acceptable to the Association, because of the small size and timing of individual purchases. For contracts under US$10,000, local shopping would be employed, provided the aggregate amount of such contracts does not exceed US$50,000 (Schedule 3 of Credit Agreement). 43. The Credit would be disbursed against: (i) 100 percent of the foreign exchange costs of the salaries of advisers together with their recruitment costs; (ii) 100 percent of the foreign exchange costs of the consulting services, and training and scholarship costs; and (iii) 90 percent of total costs for equipment, material and vehicle costs and auditing fees (Schedule 1 of Credit Agreement). Project Benefits 44. The major benefit of the proposed project would be the strengthen- ing on a systematic basis of Government organizations charged with planning, supervising, and controlling the para-public sector, resulting eventually  - 18 - in improved management and a healthier financial situation, as well as a better working relationship with Government. The proposed project would allow top Government officials to develop an independent judgment, based on more extensive and reliable data than is currently available, of the present and future operations and role of public enterprises and mixed companies in the Senegalese economy. The project will also attempt to define the critical problems and possible solutions, particularly in financial management and accounting, for a number of key para-public sector companies. Project Risks 45. Technical assistance projects inherently pose the problem of finding suitable advisors and ensuring their cooperation with local staff, as well as finding qualified Senegalese counterparts. To reduce this risk, the Associa- tion will assist Government in determining sources of technical assistance personnel. It is expected that expatriate personnel will come from consult- ing firms and universities specializ:ing in management in developing countries, and which can provide substantial support for individuals in the field. With regard to the availability of counterpart personnel, the main concern is finding and retaining suitable Senegalese for the office of the Financial Controller of the Presidency. The FCP has discussed proposals in this area in detail with the Association and recruitment of qualified Senegalese is under way. 46. Two additional risks are also possible: (i) Excessive centraliza- tion of Government control of the para-public sector, and especially of indi- vidual companies; and (ii) a change in Government's present commitment to continue reform of the para-public sector, and especially of individual com- panies. It is possible that by providing substantial additional resources to Government organizations controlling the sector, a more repressive, centralized system might emerge which could further interfere in company operations and weaken their performance. In helping Government to define the objectives of the FCP and in drawing up the terms of reference for the technical assistance, especially to CEP, the Association has emphasized strategic analysis and operational supervision rather than the more tradi- tional formal control which could interfere in company management; Government has agreed with this approach. With respect to Government's commitment to sector reform, the Government of Senegal at the highest levels has indicated its determination to see that the para-public sector contributes to develop- ment rather than draining the public treasury. In the last year the Government has taken strong action to turn around a number of deficitary companies, but believes that a wider approach is needed, as illustrated in its request for the Association to finance this project. It is therefore felt that Government has a firm commitment to sector reform and to the success of this project. Measurable Results of the Proposed Project 47. At the end of the three-year implementation period, it would be reasonable to expect that the project would have helped Government to improve, inter alia, the following: (i) basic data on the operations of companies in  - 19 - the para-public sector; (ii) indicators on the sector and company levels of whether development objectives are being achieved; and (iii) definition and initial implementation of a program of improved financial management for the public enterprises and mixed companies which would have been provided with in-depth audits, consulting services, and training. However, since it will take more than three years to establish an effective institutional structure for exercising strategic analysis, operational monitoring, and in some cases, financial control over companies in the para-public sector, it is very pos- sible that a follow-up project might be required. PART V - LEGAL INSTRUMENTS AND AUTHORITY 48. The draft Development Credit Agreement between the Republic of Senegal and the Association and the Recommendation of the Committee provided for in Article V, Section 1(d) of the Articles of Agreement of the Associa- tion, are being distributed to the Executive Directors separately. Special conditions of the project are listed in Annex III. 49. I am satisfied that the proposed Credit would comply with the Articles of Agreement of the Association. PART VI: RECOMMENDATION 50. I recommend that the Executive Directors approve the proposed Development Credit. Robert S. McNamara President January 5, 1978  -20- MJNEX I TABLE 3A Page 1 of 4 pages SENEGAL - SOCIAL INDICATORS DATA SHEET LANO AREA (THOU KM2) ------------------------------------------ -----~-------- SENEGAL REFERENCE COUNTRIES (1970) TArAL 196.2 MOST RECENT AORIC. 80.0 1960 1970 ESTIMATE GHANA IVORY COAST TUNISIA _,______________ _;_____ ---....... . . . ______ _ _ _ --_________._---------- GNP PER CAPITA (US$) 200.0 * 270.0 * 390.0*a 430.0 350.0 370.0 POPULATION AND VITAL STATISTICS _______________________________ POPULATION (MID-YR, MILLION) 3.4 4.4 5.1/a 8.6 5.4 5.0 POPULATION DENSITY PER SQUARE KM. 17.0 22.0 26.0/a 36.0 16.0 31.0 PER SQ. KM. AGRICULTURAL LAND 43.0 55.0 64.0 /a 64.0 32.0 67.0 VITAL STATISTICS CRUDE BIRTH RATE (/THOU, AV) 48.0 47.6 47.6 49.8 46.1 44.7 CRUDE DEATH RATE (/THOU,AV) 27.5 24.4 23.9 24.4 23.3 16.9 INFANT MORTALITY RATE (/THOU) 193.0 , , 158.0 156.0 * 125.0 LIFE EXPECTANCY AT BIRTH (YRS) 35.9 40-0 40.0 41.5 41.0 51.6 GROSS REPRODUCTION RATE .. 3.0 3.0 3.2 3.1 3.4 POPULATION GROWTH RATE {%) TOTAL 2.1 2.6 2.7 2.6 3.4/a 2.3/a URBAN 3.5 6.0 6.0 4.5 B7.y 3T0/b URBAN POPULATION (% OF TOTAL) 22.7 29.0 38.8 28.4 28.0 40.1/C AG;E STRUCTURE (PERCENT) 0 TO 14 YEARS 42.6 41.2 44.2Ja 46.9 42.5 46.3 15 TO 64 YEARS 53.6 54.9 52.,7c 49.5 54.8 50.2 65 YEARS AND OVER 3.8 3.9 3.17a 3.6 2.7 3.5 AGE DEPENDENCY RATIO 0.9 0.8 0.9/a 1.0 0.8 1 0 ECONOMIC DEPENDENCY RATIO 1.2/a 1.2/a 1 1.47w 1.4 0.9 1 ./c,d FAMILY PLANNING ACCEPTORS (CUMULATIVE, THOU) .. ,. .. 10.9 .. 112.2 USERS (% OF MARRIED WOMEN) . . 2.0 , , 12.0 EMPLOYMENT TOTAL LABOR FORCE (THOUSAND) 1300.0 1600.0 1650.0 3300.0 2600.0 1300.0 LABOR FORCE IN AGRICULTURE (%) . 73.0 .. 54.0 /a 82.0 57.0 UNEMPLOYED (% OF LABOR FORCE) .. 7.6 0 6.2 .. 12.0 INCOME DISTRIBUTiDN O DF PRIVATE INCOME REC D BY- HIGHEST 5% OF HOUSEHOLDS 36.s/b .. .. HIGHEST 20% OF HOUSEHOLDS 6.. 2 . LOWEST 20S OF HOUSEHOLDS . .. LXWST 401 OF HousOLDI 9.4/b . DISTRIBUTION OF LAND OWNERSHIP ______________________________ X OWNED BY TOP 10% OF OWNERS .. .. . .. .. 53.0/e X OWNED BY SMALLEST 10% OWNERS .. .. .. .. .. O.S 7 HEALTH AND NUTRITION POPULATION PER PHYSICIAN 22100.0/c 16640.0 17330.0 12950.0/b 15320.0 5950.0 POPULATION PER NURSING PERSON .. 2680.0/c 2100.0 1070.07W 2830.o/d 730.0/f POPULATION PER HOSPITAL BED 830.0/d 810.07W 850.0/e 760.0 1150.0 41n.0Z PER CAPITA SUPPLY OF - CALORIES (x OF REQUIREMENTS) 97.0 91.0 97.0 99.0 114.0 94,0 PROTEIN (GRAMS PER DAY) 64.0 64.0 65.0 46.0 60.0 63. -OF WHICH ANIMAL AND PULSE .. 28.0/d .. 10.0/C 18.0/8 DEATH RATE (/THOU) AGES 1-4 .. .. .. .. . .*S/c,i EDUCATION ADJUSTED ENROLLMENT RATIO PRIMARY SCHOOL 27.0 43.0 43.0 61.0 76.0 100.0 SECONDARY SCHOOL 3.0 10.0 11.0 11.0 23.0 YEARS OF SCHOOLING PROVIDED (FIRST AND SECOND LEVEL) 13.0 13.0 13.0 15.0 13.0 13.0 VOCATIONAL ENROLLMENT (x OF SECONDARf) . 9.0 . 23.0 7.0 12.OL. ADULT LITERACY RATE (X) .. 10.0 '