Tunisia - Fifth Education Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 4153-TUN STAFF APPRAISAL REPORT REPUBLIC OF TUNISIA FIFTH EDUCATION PROJECT November 29, 1982 Education and Manpower Development Division Europe, Middle East and North Africa Region 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.   FOR OFFICIAL USE ONLY REPUBLIC OF TUNISIA FIFTH EDUCATION PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. GLOSSARY BASIC DATA I. THE EDUCATION SECTOR . ................................. 1 A. Socio-Economic and Sector Background .1 B. Education and Training Issues. 2 MOE Related Issues .3 - MOA Related Issuess. 5 C. Government Strategy. 8 D. Bank Lending for Education. 9 II. THE PROJECT ............... 11 A. Project Objectives and Scope .11 B. Project Description .13 Bureau of Agricultural Education Studies and Planning. 13 National Agricultural Instructor Training Center .14 Higher Level Agricultural Institutions .15 Agrictultural Secondary Schools .15 Agricultural Training Centers .16 Primary Teacher Training Colleges .17 Studies of Technician Education and Training Systems.. 18 Technical Assistance .19 III. PROJECT COSTS AND FINANCING .................................. 20 A. Project Costs .20 Basis of cost estimates .21 Contingency allowance .22 Foreign exchange component .22 B. Project Financing .22 Recurrent costs .23 C. Procurement .23 Disbursements .23 D. Accounts, Auditing and Reporting Requirements .24 This report is based on the findings of an appraisal mission to Tunisia in March 1982. The mission members were A. Zhiri, General Educator (Mission Leader), M. Wilson (Education Planner), M. Mahmoud (Architect), J. Quintero (Agricultural Educator), and N. McEvers (Economist, Consultant). 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.  Table of Contents (Continued) Page No. IV. ORGANIZATION AND IMPLEMENTATION ......... .................... 25 A. Organization and Administration. 2 B. Implementation .............. 25 C. Design and Supervision of Civil Works. 2 D. Sites ... & 25 E. Equipment Lists. 25 V. BENEFITS AND RISKS ....................................... 26 A. Benefits . ...................................... 26 B. Risks .......... ............................ 26 VYI. AGREEMENTS AND RECOMMENDATIONS ............ .................. 27 ANNEXES A. Charts 1. Structure of the Education and Training System 2. (a) Implementation Schedule for the Agricultural Education Component (b) Implementation Schedule for the Four Primary Teacher Training Colleges (c) Implementation Schedule for Planning and Technician Education/Training Studies B. Tables 1. Comparative EducatLon Indicators 2. Five-Year Plan; Selected Education Targets 3. Primary School Teachers: Projected Demand and Supply 1982-199Y 4. Fifth Education Project Institutions' Recurrent Expenditures, 1982-1991 5. Primary Teacher Training Colleges: Unit Cost and Gross Area Per Student Place 6. Summary of Estimated Project Cost 7. Estimated Schedule of Disbursements * MAP'  REPUBLIC OF TUNISIA FIFTH EDUCATION PROJECT STAFF APPRAISAL REPORT CGlossary ATC Agricultural Training Center AS Assistant Engineer AT Assistant Technician CE Chief Engineer DERV "Direction de l'Enseignement, de la Recherche et de la Vulgarisation" (Directorate of Education, Research and Extension) Ecole de Base The Nine-Year System of Basic Education EEC European Economic Community ENI "Ecole Normale d'Instituteurs" (Primary Teacher Training College) ESIAT "Ecole Superieure des Industries Alimentaires de Tunis" (Higher Level Institute of Food Industries of Tunis) NAITC National Agricultural Instructor Training Center HLAI Higher Level Agricultural Institution INAT "Institut National d'Agriculture de Tunis" (National Agricultural Institute of Tunis) ITM "Initiation aux Travaux Manuels" (Introduction to Practical Work) MOA Ministry of Agriculture MOE Ministry of Education MOHE Ministry of Higher Education MOPF Ministry of Planning and Finance Office Office of Vocational Training and Employment PIU Project Implementation Unit PTTC Primary Teacher Training College VTC Vocational Training Center  % a  REPUBLIC OF TUNISIA FIFTH EDUCATION PROJECT STAFF APPRAISAL REPORT Basic Data 1/ 1. Population (estimate 1981) Total 6.57 million Rate of growth (1975-80) 2.67O p.a. Rural population as 7. of total 48.17. GNP per capita (current prices 1981) US$1,420 2. Labor Force and Employment (estimate 1980) Agriculture, Fishery and Forestry 551,700 35.0O Mining and Energy 46,70U 3.07. Manufacturing 299,900 19.07. Construction 158,100 10.07. Services 248,200 15.77. Administration 213,200 13.5% Other 59,100 3.87. Total Employment 1,576,900 1/ Reflects revised figures appearing in the Government's Sixth Development Plan.  Basic Data (Continued) 3. Education and Training (1981/82) Level Grades Enrollments As % ot Age Group % Female MOE and MOHE: Primary 1- 6 1,080,036 lO 2/ 42 Secondary 7-13 306,301 30 37 of which: Vocational 7- 9 63,288 32 Technical 10-13 19,486 26 (industrial/ commercial) Higher 14-18 32,832 N.A. N.A. Agriculture (MOA); Secondary 7- 9 2,708 10-13 640 Post-Secondary 14-18 1,032 Vocational Training (Office); VTC (Est.) 7- 9 7,200 Apprenticeship 7- 8 18,000 Adult Literacy Rate (1980): Urban 65%; Rural 38% 4. Public Expenditure on Education and Training (MOE and MOHE only) 1979 1952 (est.) (Million DT) (a) Total MOE/MOHE Recurrent Expenditures 139.0 241.3 (b) Total Central Government Recurrent ExpeiUiL LUL CO o01.9 l,072.0 (a) as a % of (b) 23.1 22.5 (c) Total i vEiYiOHE Capital Expenditures 27.1 49.0 (d) Total Central Government Capital Expenditures 308.3 467.0 (c) as a % of (d) 8.8 10.5 (e) Total MOE/MOHE Recurrent and Capital Expenditures 166.1 290.3 (f) Total Central Government Recurrent and Capital Expenditures 910.2 1,539.0 (e) as a % of (f) 18.2 19.0 (g) GDP (current prices) 2,935.0 4,607.0 (h) Total MOE/MOHE Expendlitures as a % of GDP 5.7 6.3 2/ Includes overaged students.  Basic Data (Continued) 5. Monetary Unit Tunisian Dinar Rate (1982); US$1.00 = 0.56 DT 6. Fiscal Year January 1 - December 31 7. School Year September to June  I I  I. THE EDUCATION SECTOR A. Socio-Economic and Sector Background 1.01 Tunisia has made considerable economic and social gains over the past decade and stands amongst the top third of less developed countries with a per capita GNP of US$1,420 (1981). Over the decade GNP growth has been surpassed in the region only by that of the capital surplus oil exporting countries and, in the North African sub-region, that of Algeria and Libya. Due to liberal policies emphasizing export promotion and allowing for more private initiative, the country's GDP rose in constant prices by 8.0% annually during 1969-80, compared to 4% during the 1960's. In agriculture, stronger efforts to promote individual farming, together with favorable weather conditions, resulted in a near doubling of production, a remarkable turn-around from the continuous decline of the 1960's. Manufacturing grew rapidly and tourism was promoted with marked success. There was also a comparatively rapid development of social infrastructure, especially the education and training system. 1.02 Tunisia's population (6.57 million in mid 1981) is now calculated to be growing at a high average of 2.6% per annum. Emigration prospects which mitigated some of the worst effects of rapid population growth are not as healthy as they were and, for instance, European demand is expected to be negligible over coming years. The apparent reluctance of trained Tunisians to seek employment in Saudi Arabia and the Gulf States is reinforced by competition from South Asian personnel willing to work for lower salaries. Migration to Libya is subject to the political vicissitudes of inter-state relations. Rapid population growth affects both employment and schooling. With total working age population increasing at a hign 3.4% per annum, and a growing share of that population (particularly females) seeking salaried employment, the number of new jobs would have to increase by around 4% per annum to absorb all new job seekers which is a difficult target to achieve (para. 1.03). Again, total school enrollments are expected to grow by 4.6% per annum during 1982-91, in contrast to 2% per annum over the past decade, the Government will have to provide inter alia sufficient, qualified teachers and other necessary inputs to consolidate gains already achieved especially in primary schooling. These last considerations, respecting education and training, have been incorporated into measures programmed under the Sixth National Development Plan (1982-86) (paras. 1.21-1.23). 1.03 The Sixth Plan seeks to promote structural adjustment to the post-hydrocarbon era and to sustain a GDP growth objective in the range of 5.9 to 6.1%, depending on agricultural performance. The Plan calls for a variety of measures including accelerating growth of the non-oil, directly productive sectors, and raising their labor intensities in order to alleviate growth in unemployment (employment creation is targeted at a 4% annual growth rate to result in 300,000 new jobs). The Plan also aims at improving the quality and matching the content of training with needs for trained manpower in those sectors which have been assigned priority for investment, such as agriculture. Agriculture, which accounts for a high 35% of the Tunisian workforce, receives about 20% of the Sixth Plan investment (compared to 13% allocated under the Fifth Plan). Agricultural strategy aims at increasing output by 5.0% annually in constant 1980 prices (compared with 3.6% per annum  in 1972 prices achieved during 1972-81), towards the ends of reducing import dependency, gaining food self-sufficiency, and boosting exports of high quality products to Mediterranean, Western European and Middle Eastern markets in which Tunisia must maintain and enhance its competitive position. The Plan Review by the Bank endorses these objectives. 1.04 Tunisia has progressed remarkably since independence in establishing an education infrastructure quantitatively commensurate with national needs. By 1981/82, gross enrollment ratios stood at 100% for primary and 30% for secondary schooling, female participation rates were 42% in primary and 37% in secondary, and Tunisianization of teaching staff was 100% in primary, 84% in secondary and 81% in tertiary, rates which compare favorably with those of other countries in the region. The Ministry of Education (MOE) is responsible for formal education and training which include primary (six grades), lower level general and vocational secondary (three grades), and upper level general and technical secondary (four grades). Higher education under the Ministry of Higher Education (MOHE) is provided by the University of Tunis and a number of specialized institutions. The Ministry of Agriculture (MOA) has succeeded in setting up an agricultural education and training infrastructure which, given revisions now underway in its offering and content (para. 1.23), will cover the country's needs. Agricultural education suffers, however, from inadequate instructional resources and from insufficient tailoring of courses and graduates' profiles to changing needs. Improvement of instruction and improved planning are, therefore, priorities. 1.05 Quantitative progress in education development has not been matched by qualitative improvements (paras. 1.08-1.12). Moreover, laudable earlier attempts aimed at overcoming outmoded pedagogy, an insufficient supply of qualified teachers, inadequate standards of didactic material and chronological retardation have had only a limited success in reducing high rates of grade repetition and dropouts, especially in primary schooling (Annex B, Table 2). In a fresh effort in the previous plan (1977-81), the MOE has with more success; (a) introduced practical subjects to provide primary school pupils in grades 5 and 6 with prevocational exposure; (b) grafted onto the school system compensatory arrangements such as an extension of the primary school cycle to grades 7 and 8 in order to give prospective school leavers vocational preparation; and (c) sought to reorient secondary school enrollments towards vocational courses (first cycle) and technical studies (upper cycle), and to shift university enrollments towards science and technology (Annex B, Table 2). B. Education and Training Issues 1.06 These, as they relate to general schooling and the agricultural sector, are discussed below. However, management and planning constraints represent one key issue common to both. 1.07 The education and training sub-systems require effective managerial direction and the application of modern management and administrative techniques/pratices at all levels especially as the scale and complexity of their operations grow. The absence of coordination between sectoral agencies responsible for education and training activities is widespread (despite ad hoc inter-agency committees set up for this purpose); units within the same agency fail to coordinate and even at times to communicate with one another.  On the other hand, implementing educati'-).al `I?forms of the kind contemplated in Tunisia is a complex task requiring s,:-ong iLw,ititutional :i--angements and a higher than present calibre of personnel trained in educational administration. Managerial problers of education/training require an in-depth investigation leading to a master plan of action for institutional development. The planned studies of technician level training (para. 2.25) will pay close attention to the managerial and administrative implications of a rationalization of programs at this level. MOE Related Issues 1.08 These relate to internal and external efficiency, teacher training and education finance. Low internal efficiency of the primary scnools is reflected in high dropout and repeater rates, which reached an estimated 27% and 50%, respectively, in grade 6 in 1981. The Government is concerned about the continued low completion rates in the system; 62% at primary level, 77% in lower secondary, and 48% of upper secondary general receiving the baccalaureat. The flow of students leaving without formal qualifications amounts to over 100,000 per year (80% from the primary level). The main problem at this level is the quality of teaching. Thus, one of its main strategies to increase internal efficiency is the improvement and expansion of training programs to replace substitute untrained teachers, the latter often recruited from among unsuccessful secondary graduates or leavers who often lack the dedication and a sufficient base of general education to ensure continuity and quality of service. Poorer regions tend to suffer in the provision of teachers, the more qualified and experienced teachers preferring posts in the urban areas. Consequently, government pol c,y is now to recruit and train primary teachers within the disadvantaged areas. 1.09 The Government envisages improvements in the internal efficiency of primary schooling through reductions in class size and the introduction of quasi-automatic grade promotion. Average class size was lowered from 37 in 1979/80 to 34 in 1981/82; it is to be gradually reduced to 30 pupils per class under the "Ecole de Base" (the nine-year system). However, during the Fifth Plan period, similar reductions in size and in pupil-teacher ratios yielded no improvement in recorded rates of internal efficiency. The experiment with quasi-automatic grade promotion that was carried out during the Fourth Plan period led to a high concentration of repetition in the sixth year (the end of the primary program) and had no positive impact either on student learning or on attrition (which increased especially in the fifth year). Because of budgetary constraints, this measure was not accompanied by vital complementary measures, e.g., appropriate pedagogical methods, in-service teacher training, remedial classes and supplies of better didactic materials. The Government is reconsidering this policy and will experiment with modest increases in class size, investing the annual savings that result in textbooks and more qualified teachers. Promising strategies to reduce grade repetition and to limit "dropping out" could then be tested and evaluated during the first stage of the "Ecole de Base" installation (1984/85-1986/87). 1.10 Primary Teacher Supply. An immediate and urgent issue is the shortage of qualified primary school teachers. The Government plans to expand primary teacher training to ensure an adequate supply of qualified teachers to meet the shortages of grade 1-6 teachers and of the subject teachers for  -4- grades 7-9 who will be required to implement the "Ecole de Base" (Annex B, Table 3). Enrollments in primary education (grades 1-6) have increased from 957,000 in 1976/77 to 1,080,036 in 1981/82, and are expected to reach 1,350,800 in 1986/87 and 1,673,000 in 1994/95. Therefore, an additional 13,600 primary school teachers should be trained during the next five years to meet the additional annual increase in enrollment and for the replacement of teachers. Since 1977, the low numbers of qualified teachers produced by the six existing Primary Teacher Training Colleges has led to heterogeneous recruitment often directly from among the ranks of secondary school graduates or leavers without pedagogical training. Consequently, the quality of primary education has suffered. The current Development Plan clearly recognizes this, and stresses recruitment of teachers who have a solid secondary education plus theoretical and practical pedagogical training. This proposed project addresses this issue. In the meantime, a transition plan for the training of 10,000 required teachers has been prepared by the Government and reviewed by the Bank and will become effective as of October 1983 (para. 2.22). The remaining 3,600 will be trained in the existing teacher colleges. 1.11 External Efficiency. The shift of emphasis from general to more practical technical and scientific studies at the secondary level is fundamental to the process of growth and modernization. Specific vocational courses in a formal school setting are usually not effective. Courses risk being out-of-step with changing employment needs, because schools are not in contact with the world of work. This problem already exists in the MOE's lower secondary vocational courses and in its upper secondary technical schools ("lyc6es techniques") whose graduates have faced difficulties in finding employment in recent years. This situation has arisen largely due to: (a) the lack of contact between the schools and employers, leading to inadequate knowledge of labor market needs; and (b) courses that are too job-specific and/or given to students who have neither the general education base which enhances. eventual re-training, nor the maturity to exercise occupational choice. Specific vocationally-oriented courses (for skilled workers) would in the future be given outside the formal school in contexts more in touch with the work place. For technicians, training would be given in post-secondary technical institutions or specialized institutes on the basis of solid general scientific aLnd technical studies acquired in secondary school. Consequently, studies related to needs for technician level training for the productive sectors are required to identify the principal types of training and their place in the educational structure. The proposed project would support the studies (para. 2.25). 1.12 MOE Finance. During the past decade, the annual increase in total school enrollments at all levels averaged about 2.0% (less than in previous decades). While the burden of education expenditure has declined somewhat, from 8.7% of GDP in 1970 to 6.0% in 1979, it is still heavy. The share of total government outlays absorbed by education and training also declined in that period from 27.0% to 17.0%. Towards the end of the decade, however, the pace of enrollment growth quickened due in large measure to the expanded progression of pupils upward from the primary through the secondary and tertiary levels of schooling. Total enrollments are now expected to grow by 4.6% per annum during 1982-91. Enrollment growth, combined with the practice of granting generous teacher salary raises under pressure from the unions, could raise education and training's share of GDP to 8% by 1986, exceeding 200% of total government expenditure. The educational reform and decentralization and equalization of educational opportunity/quality between regions will also impose additional costs. Consequently, the Government is  exploring measures to use resources more economically (e.g., improved school location planning and utilization ef plant and teachers, and reduction of unit construction costs) based on results of the studies carried out with technical assistance financed under the Bank's third education project. Also under current examination by the Government are the possibilities of introducing school fees at all levels, fixed according to ability to pay, and of reducing university scholarship recipients from 80% to 60% of the student body. MOA Related Issues 1.13 These issues relate to manpower needs and sources of technically trained personnel in agriculture. 1.14 Manpower Needs. The past decade has witnessed the emergence of structural diversification in agricultural production, increasing crop specialization, and growing technical sophistication in farming methods and applications, processes that will continue to characterize Tunisia's agricultural production during the next two decades. In consequence, there will continue to be mounting demands for technically specialized, trained manpower. In the school year 1981/82, Tunisia's agricultural training centers and schools could accept only 43.0% (11,662) of all the technicians, farmers and skilled workers who applied for specially tailored short courses ("stages a la carte") including ad hoc refresher training. Completion rates for these courses, on the other hand, tend to be high: 80-90%. Much of this effective demand has stemmed from local farmers' desires to acquire new crop techniques. As for the public sector agencies, they are experiencing shortages in their technical services of middle-level agricultural technicians who are specialized in areas such as irrigation works and hydrology, irrigated crop farming, agricultural mechanics, rural engineering and animal husbandry. These specialists are needed to back-up local extension agents and ensure effective linkages between agricultural research, extension and the cooperative and private farming communities. 1.15 Except for those trained for the food processing industry, graduates of formal agricultural secondary and tertiary education are employed largely by the public sector, e.g., the MOA, the autonomous agencies (the "Offices") and the para-statal enterprises, The MOA's estimation of annual needs for agricultural technicians is based on the Government's financial capability to employ as reflected in their annual "loi des cadres"--the rule that governs the maximum establishment size of public sector agencies. Due to the lack of adequate labor force and manpower data on the agricultural sector, the Government has been handicapped in adjusting the capacity of agricultural training and extension and, hence, the financial parameters of the "loi des cadres" to the demands of agricultural production. This lacuna, however, will be remedied once the Bureau of Agricultural Education Studies and Planning, established under the proposed project within the MOA's Directorate of Education, Research and Extension (DERV) implements the required surveys and studies (para. 2.04). 1.16 The Government intends to reorganize and strengthen its agricultural extension and research services starting 1985, based on the work of the Bureau and on the findings of the feasibility studies to be financed under a Bank technical assistance loan to Tunisia (President's Report No. P-3306-TUN of August 26, 1982). While more precise estimates of trained manpower and its deployment must await the outcome of these studies, a recent employers' survey  -6- of the public sector requirements for the Sixth Plan period, based on projects programmed under the Plan, reveals a demand for 5,440 technicians. In contrast, estimated effective demand under the "loi des cadres" amounts to 3,260 for the Sixth Plan period. Sixth Plan policy decisions also encompass redeployment of the existing extension agents, establishment of 200 consolidated extension units or "Cellules Territoriales de Vulgarisation (CTVs)," and staffing of CTVs with agents who are selected on the basis of aptitude testing and trained in extension methodology. Overall demand, therefore, would be greater than the annual estimated requirements under the "loi des cadres" for agricultural technicians as summarized below (Table 1); Table 1: REQUIREMENTS FOR PUBLIC SECTOR AGRICULTURAL TECHNICIANS (1982-91) a/ Annual Annual Average Average Output from Manpower Requirements System Balances High-level technicians Veterinarians 4 0 40 Chief engineers 60 25 (-35) Public works engineers 12 0 120 _ Subtotal 220 185 -35 Middle-level technicians Assistant engineers 190 145 (-45) Assistant technicians 235 195 (-40) Subtotal 425 340 (-85) TOTAL 645 525 (-120) a/ SOURCE: MOA/Directorate of Administrative and Financial Affairs data, and mission estimates of MOA recurrent finances and "Loi des cadres" requirements. Estimates exclude forestry and fishery services. 1.17 Sources of Trained Manpower. The existing four agricultural secondary schools produce an average of 75 assistant technicians (ATs) per annum. These will be supplemented by approximately 120 graduates of the agricultural training centers (ATCs), making a total of 195 ATs. The ATCs offer a three-year program, some of whose graduates (120) take special courses ("stages") in the secondary schools to upgrade them to qualify as ATs specializing in agricultural machinery, rural engineering and irrigated crop farming. Requirements for assistant engineers (AEs) and for high-level  technicians will be met by the Higher Level Agricultural Institutes (HLAIs). However, a shortfall in field supervisory personnel in the chief engineer (CE) category is likely. These engineers are trained at the National Institute of Agronomy of Tunis (Institut National d'Agriculture de Tunis--INAT). INAT's program of studies has been revised to enable this HLAI to devote itself exclusively to the training of CEs in a six-year course. Finally, for skilled workers the ATCs are to produce an average annual output from their three-year programs of roughly 830. ATC graduates who opt for employment in the private sector will be placed there by the Office of Vocational Training and Employment (hereafter referred to as the Office) under contractual arrangements ("Contrat- Formation-Emploi") between the Office and employers. Such arrangements, heretofore made only with private industrial and commercial enterprises, have now been extended to agricultural employers; they provide an initial year of on-the-job training as a preparation for permanent employment. 1.18 At present, however, as identified by the Bank/Unesco subsector study of agricultural education and training (1980), there are serious qualitative deficiencies which are addressed by this project. They are; (a) the poor quality of instruction and/of training programs; (b) the insufficient number of qualified agricultural teachers/ instructors; (c) the lack of effective linkages between agricultural research, extension, and the cooperative and private farming communities; and (d) failure to monitor changing needs through manpower and educational analysis and planning. Consequently, the Government proposes to give priority to qualitative improvement of the existing training establishments. To this end, it is taking measures which include; (a) improved curricula; (b) upgraded qualifications of teaching staff; (c) better management of school farms and facilities; and (d) remedy of current deficiencies in farming and didactic equipment. 1.19 The quality of teaching and training will be improved to enable the HLAIs, Agricultural Secondary Schools and ATCs to meet needs for technical personnel specialized in areas such as irrigation works and hydrology, irrigated crop farming, agricultural mechanics, rural engineering/maintenance, and animal husbandry. These subject-matter specialists are vitally needed to back-up the cadres of existing extension agents and thereby ensure operative linkages between research, extension and the private, including cooperative, farming community. New programs are also needed to furnish the technical and extension services with qualified field supervisory personnel. These objectives require significant upgrading of the instructional staff of the agricultural education/training system. Consequently, of the present total figure of more than 500 permanent agricultural teachers/instructors, in-service training will be organized for about 24% a year. In addition, about 300 rural, primary school teachers of "ITM" prevocational subjects in agriculture (grades 7, 8 and 9) will be trained per year on behalf of the MOE during the Sixth Plan. 1.20 Recurrent costs of agricultural education and training have tended to be high (15.7% of total MOA estimated recurrent outlays in 1982), due to the operating expenses of school farms which are nevertheless an essential component of the practical studies. Existing regulations preclude the use of school farm revenues to offset school operating costs. However, the MOA intends to specify measures designed to make budgetary procedures more flexible, permitting the proceeds from the sale of produce to meet the cost of input factors. Initially, this measure would be applied to all of the  -8- proposed project institutions (paira. 2.04). Other measures to rationalize agricultural schooling costs are expected to lower its burden progressively to about 12.3% and 8.0% of the MOA's recurrent outlays in 1986 and 1991, respectively (thereby freeing resources for the improvement of agricultural extension and research). These other measures includez (a) a consolidation and streamlining of agricultural secondary schools whose number has been reduced from 7 to 4 in 1981/82, with enrollments stabilizing at around 450 by 1986; (b) a gradual phasing out of some of the ATCs (and their conversion to other uses such as research and experimentation) causing their full-time enrollments to drop from 2,700 (1982) to 1,650 (1990); and (c) an increase in the numbers of trainees in short, intensive practical courses ("a la carte") whose numbers, based on full-time equivalency, would rise between 1982 and 1990 from 9.5% to 60.0% of the clientele served in secondary schools, and from 50% to 60% of the clientele served in ATCs. This expansion of "a la carte" training will boost the rate of capacity utilization from 70% to over 80% by 1990 in secondary schools and will maintain full utilization of ATC capacity. C. Government Strategy 1.21 In the context of the Sixth Plan a major structural reform is being launched to enhance the quality and external efficiency of education while maintaining qtantitative and equity targets in previous plans. The reform in relation to s "'ooling aims to improve quality by ensuring mastery and retention of -1eracy and numeracy skills through a longer period of schooling (nine years :aiseaa of six years), thus giving students a better base ("trainability") for further education and training. Specifically, the reform, beginning in 1984, would retain an average of 33,000 pupils per annum in school--who would otherwise leave the system--for an additional three years of education. However, the successful transformation of the six-year cycle into a nine-year will depend on well-defined strategies at the school level to attain improved efficiency. Such measures are still on the drawing board. Consequently, the reform will be introduced gradually through a pilot phase which emphasizes systematic evaluation and allows for adjustments to be made as necessary. The planning and development of new secondary schooling structures and content will be carefully orchestrated in coordination with the introduction of the "Ecole de Base". Planning of the secondary level reform will address curricula, and appropriate changes in the mix, the quantity and quality of school inputs, books and materials for students and teaching aids for teachers). It will also focus on the training and retraining of school administrators to implement improved management of the school system. 1.22 The reform will address "'quality" issues also by continued expansion of prevocational primary school courses ("ITM") and grades 7 and 8 post-primary programs, and continued orientation of secondary school students to vocational and technical programs of study (allocating 15% of the 136,000 new student places to be created to these programs) and of university students to science and technology together with development of scientific and technological research capacity in higher education. It also envisages expansion and quality improvement of formal and non-formal trade training programs sponsored by the Office to disadvantaged regions. All vocational training infrastructure would be converted to short course and on-the-job skill training under the Office (and linked by contract to employing enterprises), and would give trade/commercial training to all dropouts/school le8vers of the "Ecole de Base". Diplomas would be awarded to all completers  -9- of the full course of studies in primary and in secondary schools, while progression from the former to the latter (planned at the present rate of 45% of primary school graduates) would be controlled by a competitive entrance examination, and flows to the three types of colleges would be adjusted according to projected manpower needs. 1.23 The reform, in relation to agricultural education, aims, inter alia, at a continued introduction of technological innovation into the production process, refinement and diffusion of innovations already in place, extension of physical infrastructure (particularly water conveyance and irrigation works), more intensive cultivation for higher crop yields, expansion of animal husbandry, greater research efforts reoriented to precise needs of the farmers, decentralization of the Government's technical and extension services and an upgrading in the levels of their technician personnel. To stimulate private initiative, the Government plans to advance measures already instituted, such as distribution of state lands to graduates of agricultural training centers and schools, and the expansion of the Agency for Agricultural Investment Promotion (APIA) which provides credit and technical assistance to enable trained young people to set themselves up as independent farmers. Agricultural development will depend increasingly upon the availability of skilled and technical manpower who are appropriately trained. In response to this requirement, the Government has initiated a reform of agricultural education/training which has heretofore unduly emphasized formal vocational schooling: formal secondary level enrollments are being reduced, and short course training expanded to meet specific technical needs of farmers, while greater priority is being placed on producing senior technicians. Overall, the Sixth Plan strategy will generate requirements for a more highly qualified pool of manpower and a wider variety of applicable skills in the productive sectors. D. Bank Lending for Education 1.24 Bank lending for education in Tunisia (two credits and two loans) has supported the Government's objectives respecting the quality of primary and secondary schooling, teacher training, the employability of school leavers, and formal and non-formal trade training for skilled workers in response to labor market demands. The first project (Credit 29-TUN, US$5.0 million in FY63) financed four new secondary schools, the expansion of another and an extension to a teachers' college for training lower secondary teachers. This project was implemented satisfactorily and completed in February 1967. The second project (Credit 94-TUN, US$13.0 million in FY67) financed nine new secondary schools, expansion of six existing secondary schools and equipment for 16 secondary schools; savings, accrued from favorable contract prices, financed workshop equipment for an additional 11 secondary schools as well as technical assistance to develop educational planning. The Project Performance Audit Report on this project (No. 2226 of September 29, 1978) found that it was aligned with Tunisia's secondary education priorities, but that a still greater vocational emphasis was needed. Physical implementation of the second project was satisfactory.  - 10 - 1.25 The third project (Loar '.155-TUN, US$8.9 million in FY76) helped with the introduction of practical work ("ITM") into grades 5 and 6, and associated teacher training, and with an experimental grade 7 and 8 program (para. 3.01). After the loan became effective, the Government decided to extend the post-primary scheme to the entire system as resources would permit rather than limit it to an experimental run. The project was amended in March 1979, to adapt it to extension of the scheme rather than experimentation. The revised project provided workshops for 325 primary schools, the expansion and/or equipping of seven Primary Teacher Training Colleges (ENIs) to train practical teachers for the workshops, and technical assistance for planning studies addressed inter alia to development of the "Ecole de Base" and to the relationship between education/training and employment. Implementation has been generally satisfactory and the project funds are now 100% committed. The project is expected to be completed by the current closing date of March 31, 1983. 1.26 The fourth project (Loan 1961-TUN, US$26.0 million in FY81) aims specifically at helping Tunisia carry out her strategy for developing formal and non-formal trade training. It: provides the "Office" with seven new vocational training centers (VTCs) and one new apprentice center, expansion and/or equipping of 17 existing VTCs and 3 existing apprentice centers, and related technical assistance to reinforce planning and coordination activities. Its implementation, which benefits from a competent Project Implementation Unit, is proceeding satisfactorily. 1.27 The proposed fifth education project (a loan of US$27.0 million) addressed the Government's Sixth Plan strategies for agricultural education and training (paras. 1.17 to 1.19), and for primary schooling (para. 1.24). More specifically, the project will support: (a) the MOA in its plans for streamlining and strengthening agricultural education and training to meet rising demands for technically trained manpower, through provision of technical assistance and equipment; (b) the MOE in its expansion of training facilities for primary school teachers to ensure an adequate supply of qualified personnel and to reduce the large number of unqualified teachers, through construction and equipping of four new Primary Teacher Training Colleges; and (c) the MOPF by financing technical assistance for preinvestment studies related to prospective needs and appropriate modalities for technician training for the industrial and allied commercial sectors.  - 1U - II. THE PROJECT 2.01 The proposed project was prepared by the Government with the assistance of a Bank preparation mission in October/November 1981. The project was appraised in March 1982. It is estimated to cost US$40.7 million inclusive of contingencies, for which a loan of US$27.0 million, including the front-end fee, is proposed. A. Project Objectives and Scope 2.02 The proposed project is designed to support key Sixth Plan objectives, viz. the provision of needed skills and of appropriately trained, technical personnel to the Sixth Plan priority sectors of agriculture and industry; and the expansion and improvement of primary teacher training. Accordingly, the project would: (a) assist the MOA in strengthening and developing its programs for the dissemination of technical knowledge/ skills to local farming communities and for the upgrading/refresher training of its technical cadres including extension agents; (b) help to improve the quality of agricultural education/training so that the MOA can staff its technical, research and extension services with technicians and field supervisory personnel who are well grounded in the techriical specializations that are now required for agricultural development; (c) endow the MOA with a capability for manpower and education analysis and planning in the agricultural sector; (d) provide urgently needed didactic and farm equipment to six existing Higher Level Agricultural Institutes, four Agricultural Secondary Schools, and fifteen Agricultural Training Centers, and technical assistance and equipment to the newly created National Agricultural Instructor Training Center and the Bureau of Agricultural Education Studies and Planning; (e) develop primary teacher training through the construction and equipment of four new Primary Teacher Training Colleges in disadvantaged regions, equipped to train grade 1-6 teachers; and (f) assist in studies of technician level training for industry and related commercial sectors through financing of technical assistance. The project would consist of the following components:  - 12 - Total Estimated Student Annual Grades Places Output (a) Ministry of Agriculture: Re-equipping and furnishing of. (i) a Bureau of Agricultural Education Studies and Planning (ii) a National Agricultural Instructor Training Center All levels (NAITC) (in-service training) 325 325 (iii) six Higher Level Agricultural Institutions (HLAIs) 14-19 760 260 (iv) four Agricultural Secondary Schools a) 10-13 500 196 1/ b) Short up- grading courses - 13,208 2/ (v) fifteen Agricultural Training Centers (ATC) a) 3-year a)l,340 830 b) specialized courses plus short ad hoc courses b) n.a. 14,500 2./ (vi) Technical assistance for the a) Bureau of Agricultural Educa- tion Studies and Planning (a(i) above) - b) National Agricultural Instructor Training Center (a(ii) above) - (b) Ministry of Education: Construction, furniture and equipment for; four Primary Teacher Training Colleges (ENI) a) 10-14 1,000 900 b) 14 1,600 1,450 2,600 2,350 (c) Ministry of Planning and Finance/Ministry of Education: Technical assistance for: Studies related to future industrial, commercial and service technician training needs. - 1/ An additional average of about 65 graduates per annum, not included in this figure, continue their studies in the Higher Level Institutions to qualify as Assistant Engineers (para 2.14). 2/ Total nutput from all types of short courses ("a la carte") to be attained by 1990.  - 13 - B. Project Description Bureau of Agricultural Education Studies and Planning 2.03 This proposed component would finance technical assistance, staff training and equipment and materials (estimated at US$0.9 million, net of contingencies) for the development of a recently established Bureau of Agricultural Education Studies and Planning in the MOA's Directorate of Education, Research and Extension (DERV) which would improve linkages between formal education, research, extension, and continuing education in the agricultural sector. 2.04 The Bureau would define quantitative and qualitative needs in the sector for technical personnel, and would carry out studies to improve both training activities and the reconciliation of resources with manpower/training needs. It would closely coordinate its work with the MOA's Directorate of Planning. The Bureau would be responsible for (a) analyses of agricultural manpower stocks and future supply and demand, inclusive of profiles and functions of all agriculture-related occupations; (b) determination of the content and orientation of technical training of instructors at the National Agricultural Instructor Training Center; and (c) evaluation of agricultural education and training programs including follow-up studies of former graduates and surveys of present and potential employers in the public and private sectors, extension programs and school farm operations. Terms of reference for the Bureau's initial program of studies have been formulated jointly by the DERV, the Directorate of Planning and the Bank. Care has been taken to contribute directly to the design of the national program of agricultural research and extension, supported by the Bank under a technical assistance loan (President's Report No. P-3306-TUN of August 26, 1982). Specific studies to be financed under the project, include: development of a sector/ occupational matrix of the current stock of agricultural technician manpower; a detailed evaluation of the school farm operations (fermes d'exploitation) including specification of measures designed to make budgetary procedures more flexible, permitting the proceeds from the sale of produce to meet the cost of input factors (inter alia, parts, maintenance, seeds, fertilizers); an inventory of precise farm practice opportunities ("stages pratiques") and the development of new monitoring and evaluation procedures; and a feasibility study relative to the inclusion of rural pedagogy and extension techniques in the secondary and higher agricultural schools. These studies would be completed by December 1985. The MOA has agreed to finance local costs of these studies from its five year plan allocations. 2.05 Qualified staff have already been appointed to the newly created Bureau. They include the director, the deputy director and the heads of its two major divisions (Statistics and Research/Planning). No difficulty is expected in recruiting the remaining professional agriculturalists (about 10 in total) by the end of 1982. Two of these staff would be seconded from the MOA's Directorate of Planning to ensure appropriate liaison. The Bureau will require the assistance of 52 man/months of expert services: manpower planning, education planning (applied to agricultural education and training), extension techniques and survey and evaluation methodology. Furthermore, 30 man/months of fellowships would be provided for five trainees in manpower planning, education planning and statistics, curriculum development, and extension techniques. Total technical assistance costs are estimated at  - 14 - US$0.6 million, net of contingencies. The Bank will be consulted on the selection of specialists and fellows. National Agricultural Instructor Training Center (NAITC) 2.06 To improve the quality of agricultural instructors, both in pedagogical and technical matters, the proposed project would provide financing for technical assistance, equipment, and furniture for a new National Agricultural Instructor Training Center (NAITC). Costs are estimated at US$1.0 million, net of contingencies. This Center would be located at Sidi Thabet, in existing training center facilities, situated 16 km. north of Tunis. The school has a physical facility well suited to the purpose of this Center. There are also boarding facilities for 70 trainees. 2.07 The Center would have an annual output of 325 trainees (about 10% women). These trainees will be staff or newly recruited instructors of the ATCs and the agricultural secondary schools. The training would consist of; (i) full-time, in-service courses of one to two months in pedagogy and teaching methods plus teaching practice at nearby schools for about 60 teachers per year; (ii) one year of full-time, pre-service training for about 15 new teachers per year, who would include assistant technicians, assistant engineers, field engineers, and chief engineers, with special reference to extension work; (iii) short, in-service courses of up to a week focussing on new technical developments to be offered to about 60 teachers and instructors per year (these courses will be offered at the regional level, utilizing the Agricultural Training Centers (ATCs); and (iv) training and upgrading in research and extension methodologies for about 200 extensionists per annum. Other topics such as farm budgeting, project evaluation and new crop/techniques would be offered on a demand basis. 2.08 The Government has agreed to appoint a director by June 1, 1983. The director will be responsible to the DERV's deputy director for technical training and supervision. The Center's staff of 26 instructors will be drawn from the agricultural services, with 13 assigned as full-time staff and 13 as part-time specialists. They will have among their key functions. (a) pedagogical supervision of new agricultural school instructors; (b) organizing and implementing seminars in the ATCs; (c) evaluating and developing different programs of agricultural training and education adapted to the needs of the country; (d) developing, testing and producing didactic materials and (v) training and upgrading instructors of the agricultural secondary schools and the ATCs. 2.09 Under bilateral agreements with France, 12 full-time instructors will receive training in agricultural teacher training techniques over four years. 2.10 The Center will require the additional assistance of 57 man/months of expert services--agro-pedagogy and rural communication and extension practice techniques, plus short-term consultancies in evaluation of training and curriculum development; and 60 man/months of fellowships in curriculum development, rural communication techniques, publications, audio-visual aids (Annex A, Chart 2(c)). The terms of reference of the specialists, their work programs and the related timetable have been prepared by the MOA and reviewed by the Bank. The candidates and proposed programs of study for fellowships will be subject to prior Bank review.  - 15 - Higher Level Agricultural Institutions (HLAIs) 2.11 To help improve the quality of instruction and the type of training offered at the HLAIs (para. 1.17), the project would finance additional instructional equipment, materials and furniture (estimated at US$5.0 million, net of contingencies) to support more modern and practice-oriented instruction in the six principal institutions of higher agriculture education: (i) the National Institute of Agronomy of Tunis (INAT) which prepares chief engineers in a six-year university level program (para. 1.16); (ii) the HLAIs which prepare agricultural engineers (irrigation and rural works, agricultural machinery and related disciplines) at Medjez El-Bab and horticulturalists at Chott-Mariem through a four-year, post-secondary program; and the specialized institutes in Mateur (animal husbandry), in Kef (major crops), and in Tunis (food industries) which prepare technicians in two- and four-year, post-secondary programs. The additional equipment proposed would permit the implementation of new and existing curricula which are now seriously handicapped by lack of laboratory, civil engineering and farm equipment. 2.12 New courses to be introduced include pedagogy (INAT), extension techniques (Chott Mariem), hydraulics, irrigation and drainage (Medjez El Bab), and extensive crop cultivation techniques (Kef). Other course offerings would be reinforced: plant protection and rural engineering (INAT), horticulture (Chott Mariem) and animal husbandry (Mateur). Total enrollments will be about 760 students (608 for the six- and four-year programs and 152 for the two-year program). The annual output will be about 260 (180 chief and field engineers and 80 assistant engineers). Internal redistribution of professors/instructors will help provide teaching staff for the newly introduced and reinforced programs. In addition, the MOA has given assurances that 35 of 75 post-graduates trained in key fields under a bilateral program with USAID due to return during 1983-85 will be assigned to these project HLAIs. Agricultural Secondary Schools 2.13 This component would finance the re-equipping and refurnishing of the country's four agricultural secondary schools (estimated at US$2.4 million, net of contingencies) to assist in the qualitative improvement of technician level and refresher upgrading programs. The institutions (grades 10-13) will have a combined enrollment of about 450; they are located in; (a) Soukra at 8 km. of Tunis; (b) Boucherik in the North East; (c) Thibar at 1 km. outside the town of Thibar in the North West; and (d) Sidi Bouzid in central Tunisia. The first is for girls, and the other three for boys. 2.14 The MOA's five-year plan for those agricultural secondary schools provides for a four-year program that includes: (i) a basic three-year course (grades 10-12) of full-time study (70% theory and 30% practice); and (ii) an additional year of supervised practical work and on-the-job training leading to a diploma and qualification as assistant technician (AT) for employment in the feed industry, food processing, animal pharmaceutical laboratories, MOA extension work, farm machinery maintenance, etc. Alternatively, graduates may enter preparatory courses in the same school that qualify them for a two-year course (grades 14 and 15) in the HLAIs leading to a technician diploma and qualification as assistant engineer (AE). About 50% of students complete the  - 16 - basic course leading to the AT diploma and the remainder (about 45%) proceed to the AE. The annual output of about 196 graduates (16% women) would correspond to about 83% of the 1982-91 average annual public sector requirements for assistant technicians (exclusive of fishery and forestry services). 2.15 Whilst the program will continue to turn out needed middle level technicians for the Government's agricultural services, provided it can be properly equipped, these four project schools have also initiated important programs of ad hoc refresher and upgrading courses ("stages pratiques") in their local communities. These courses also suffer from inadequate farm and didactic equipment at present. Adequately equipped, these four secondary schools will be able to carry out their plan to provide initially about 1,340 trainees per year (former students and farmers) with the opportunity to receive special courses offered simultaneously and after school hours covering specific regional and local needs for upgrading in new technical applications and skills. Those benefitting from such courses are expected to increase annually through 1990 (para. 2.02). 2.16 The approximately 54 instructors required come from: (a) the existing staff (70%), (b) on a part-time basis, from the private sector (20%), and (c) from other specialized institutions (10%). No additional teaching staff are required but a need is felt for training and upgrading of instructors. The Government has agreed that 18 to 20% of the staff be upgraded each year. The new as well as the junior staff will benefit from the pre-service and in-service training to be offered in the National Agricultural Instructor Training Center (NAITC) and senior instructors will receive technical upgrading as interns at the NAITC or via seminars and special extension courses offered at the HLAIs. 2.17 The Government has agreed to (a) designate by September 30, 1983 a staff member responsible for on-the-job training activities during school vacations who will implement the new program of "stages pratiques" to be developed by each project school; (b) approve the receiving firm/farm before sending trainees; (c) ensure that students are visited and evaluated during their off-campus training; and (d) introduce a more flexible accounting procedures for school farms in line with the recommendations of the Planning Bureau study (para. 2.04). Agricultural Training Centers (ATCs) 2.18 The project would finance additional equipment and furniture for 15 Agricultural Training Centers in order to assist in improvement of training in the ATCs. Costs are estimated at US$6.7 million, net of contingencies. Nine of these centers are located in Tunisia's disadvantaged areas (four in the Northwest, six in the Northeast, and five in the South). They also provide coverage of major climatic/crop zones. Government policy is to reduce the current highly structured and rigid formal three-year courses in all ATCs and to expand their short, regionally focussed upgrading courses that promote self-employment and employability, as well as upgrading existing agricultural personnel (para. 1.11 and 1.12). The Centers would offer, according to the local and regional needs, specialized training in areas such as farm machinery operation and maintenance (including hydraulics and electrical components),  - 17 - animal and plant production, horticulture, large and small grains, pastures and legumes. Additionally, irrigation and drainage training programs would be offered in priority areas. These flexibly designed programs would incorporate agricultural extension training as required in their ongoing upgrading and refresher courses. All programs of the project ATCs have been reviewed by the Bank and judged satisfactory. 2.19 The centers' annual output is expected to reach 830 graduates of the regular three year training programs and about 7,000 trainees per year in the short, ad hoc training courses; by 1990,however, graduates will average 550 and trainees 14,500 per annum. Boarding facilities of about 600 places are available to enable the participants to accommodate both interns and trainees ("stagiaires," short courses). No additional staff is required for the various training programs of the centers. However, additional equipment maintenance personnel would be assigned as per the findings of the recent (1982) inventory. There is also a need for more teacher upgrading opportunities and the Government has given assurances that about 18 to 20% of these ATCs' staff would be upgraded each year in the NAITC (para. 2.06). Farm machinery/equipment operation and maintenance instructors would be given priority in this upgrading. Primary Teacher Training Colleges (PTTCs) 2.20 This component would help finance the construction, furniture and equipment for four new primary teacher training colleges (PTTCs) in Jendouba, Mateur (in the Northwest), Kasserine (Sbgitla) and Sidi Bouzid (in the central region). Costs are estimated at US$14.5 million, net of contingencies. The project objectives are: (i) to introduce and operate new programs to train the new profile teachers required by the introduction of the "Ecole de Base"; and (ii) to implement government policy of training and placing teachers in their home regions. This policy is designed to meet existing shortages and deficiencies of quality encountered in these regions (para. 1.19). The majority of graduates of existing PTTCs are urban females (65%), posing difficulties as far as their assignment to the disadvantaged zones far from their native areas. A further problem which this project component will help to resolve is the low quality of primary teachers: many are recruited at a level which requires a training program combining secondary education courses with pedagogical training in a four-year course. The result is often that neither their level of education nor their training is adequate. 2.21 Programs offered in these project institutions would remain flexible and responsive to primary school needs in the immediate locality. Above all, they would seek to redress existing training practice which has prevented the existing teacher training colleges from fully carrying out their dual function: pre-service and in-service training. Consequently, they would include: (a) pre-service teacher training for new teachers, with particular reference to the training of teachers for the first six grades of the Ecole de Base; and (b) continuing education and upgrading for serving teachers to improve their qualifications and effectiveness. 2.22 Their programs would be of three types: a new, formal one-year post-secondary pedagogical training course for qualified secondary school graduates (grade 14); a four-year program following lower secondary education  - 18 - plus one year pedagogical training (grades 10-14); and an active in-service program to upgrade the qualifications and skills of serving teachers in each region concerned. Each project PTTC, would appoint one of the existing instructors to be responsible for planning and organizing the in-service courses. The new one-year program is of paramount importance for implementing the Ecole de Base. Since the reform will progress to the upper grades (7, 8, 9) in the latter part of the decade, there will be a need for subject teachers with a solid base of secondary education which will permit them to teach lower secondary school-level subject matters, including elementary science and technology. The MOE is currently devising plans to convert existing secondary training facilities to meet these needs, starting in 1987/88. The emphasis would be placed on intensive training during the Sixth Plan period in order to quickly increase the output of qualified primary teachers. The Government has approved a satisfactory MOE proposaL for a transition program providing one year of pedagogical training to carefully selected secondary school graduates for meeting shortages in primary teachers during 1982/83-1986/87 (para 1.24). 2.23 The four new colleges would enroll about 2,600 students in both programs (1,600 in the short programa and 1,000 in the long one) and they would be co-educational. Trainees would be enrolled mostly from within each region with the objective of having teachers take up teaching posts in their own regions. Since the regions are mainly rural with low population densities, boarding places would be provided. An annual output of about 1,500 of primary school teachers is expected starting in 1987/88 and increasing to 2,350 by 1990/91 (Annex B, Table 3). 2.24 In view of the ready availability of well-qualified teacher trainers for the four PTTCs, and the MOE's commitment for the success of these institutions in the disadvantaged regions, no difficulty is expected in recruiting the about 130 full-time trainers required, drawn from University graduates and primary school inspectors. In addition, the full-time equivalent of another 12 trainers would be needed to operate in-service, upgrading programs, to be largely drawn from experienced teachers in local schools and from the regional inspectorates of primary education. Studies of Technician Education and Training Systems 2.25 Financing will also be provided for studies (estimated at US$1.3 million, net of contingencies) of technician-level training for the industrial, commercial,and service sectors. Vehicles and a small equipment (estimated at US$50,000) will also be provided to the team of experts. The various technical training programs offered by several ministries and organizations are fragmented and operate without the benefit of a coherent training plan. The objectives of these studies are to; (a) articulate and identify the qualitative as well as quantitative needs (by sector and sub-sector) for intermediate through higher level technicians on the basis of the occupational structures of technician employment and of demand; (b) assess existing training infrastructure (capacity, facilities, personnel, and programs); (c) evaluate the feasibility of specific investment interventions aimed at meeting the needs; and (d) identify possible projects commensurate with the established criteria of feasibility (cost effectiveness, external productivity, and training content adapted to the qualitative and quantitative needs for technicians). The study would be initiated by the Government by mid-1983 beginning with the inventory to be assembled by a local task force,  - 19 - in order to arrive at a clearly identified and prepared technician training project by the end of 1984 (which would serve as the basis for the preparation and appraisal of a sixth education project). Expected products would be; training program specifications, staffing requirements, equipment lists, space allocations with educational specifications and critical path analysis of project implementation. In view of the multisectorial character of the study, the Ministry of Planning and Finance's (MOPF's) Directorate of Human Resources jointly with MOE would execute the study and would expand the team working to include specialists from the different technical ministries as well as from public and private consulting firms. The MOPF has agreed to designate a study coordinator and establish an interministerial steering committee to monitor ongoing work. The Bank will be consulted on the choice of the coordinator. The terms of reference and timetable of the studies and for individual specialists have been agreed by the Government and the Bank. 2.26 The study would require 72 man-months of specialist services to be financed under the project, about half of which would consist of Tunisia specialists from Tunisian consulting firms and the universities (Annex A, Chart 2(c)). Technical Assistance (TA) 2.27 The project's TA would contribute to institution-building through assisting the Government in; (a) establishing the country's first, permanent program of agricultural teacher training that employs modern pedagogical techniques and that serves all of the country's agricultural education and training institutions; (b) establishing an office with trained staff, a program of urgently needed planning studies, and permanent mechanisms for manpower and education planning/evaluation to guide future development of the country's agricultural education and training system; and (c) establishing the basis of feasibility, designing appropriate policies and formulating an investment program for the future development of industrial, commercial and service technician education/training, as an integral part of Tunisia's reformed system of secondary and post-secondary schooling. Details of this TA and the timetable for its implementation are presented in Annex A, Chart 2(c). The conditions of employment of all specialists, as well as the choice of fellows and their places and programs of study will be subject to prior Bank review.  - 20 - III. PROJECT COSTS, FINANCING AND DISBURSEMENTS A. Project Costs 3.01 Total project cost is estimated at DT 22.8 million or US$40.7 million (including the front-end fee), of which US$27.0 million is foreign exchange. The breakdown of estimated costs by main project items is summarized below. % of DT Millions US$Millions Baseline Local Foreign Total Local Foreign Total Cost Ministry of Agriculture Re-equipping, refurnish- ing and TA for existing institutions: National Agri. Teacher Trg. Center 0.1 0.5 0.6 0.1 0.9 1.0 3.2 Bureau of Agri. Ed. Studies & Planning 0.1 0.4 0.5 0.1 0.8 0.9 2.8 4 Agri. Sec. Schools 0.1 1.2 1.3 0.3 2.1 2.4 7.6 6 Agri. Institutes 0.3 2.5 2.8 0.6 4.4 5.0 15.9 15 Agri. Trg. Centers 0.4 _3.1 3.5 0.7 5.7 6.4 20.3 Subtotal 1.0 7.7 8.7 1.8 13.9 15.7 49.8 Ministry of Education Constr., furn., and equip. of new institutions 4 Primary Teacher Trg. Colleges 4.8 _3.3 8.1 8.6 5.9 14.5 46.0 Subtotal 4.8 3.3 8.1 8.6 5.9 14.5 46.0 Ministry of Planning and Finance/Ministry of Education Engineering Studies 0.1 0.3 0.4 0.1 0.5 0.6 2.0 Studies of Technician Education and Training Systems 0.1 0.3 0.4 0.1 0.6 0.7 2.2 Subtotal 0.2 0.6 0.8 0.2 1.1 1.3 4.2 Baseline Cost 6.0 11.6 17.6 10.6 20.9 31.5 100.0 Contingencies Physical 0.6 1.3 1.9 1.0 2.3 3.3 10.5 Price escalation 1.1 2.0 3.1 2.1 3.4 5.5 17.5 Subtotal 1.7 :3.3 5.0 3.1 5.7 8.8 28.0 Front-end fee -- 0.2 0.2 _ 0.4 0.4 1.2 Total project cost 7.7 15.1 22.8 13.7 27.0 40.7  - 21 - 3.02 A breakdown of estimated project costs into local and foreign cost elements by category of expenditure are as follows: DT millions US$ millions % of Local Foreign Total Local Foreign Total Baseline Cost Construction Academic and communal facilities 1.7 0.7 2.4 3.0 1.2 4.2 13.3 Boarding 2.0 0.9 2.9 3.6 1.6 5.2 16.5 Staff housing 0.2 0.1 0.3 0.4 0.2 0.6 1.9 Professional services 0.5 0.0 0.5 0.9 0.0 0.9 2.9 Sub-total 4.4 1.7 6.1 7.9 3.0 10.9 34.6 Furniture 0.4 0.9 1.3 0.7 1.7 2.4 7.6 Equipment 0.9 7 8 8.7 1.6 14.0 15.6 49.5 Sub-total 1.3 8.7 10.0 2.3 15.7 18.3 57.1 Technical assistance 0.3 1.2 1.5 0.4 2.2 2.6 8.3 Baseline cost 6.0 11.6 17.6 10.6 20.9 31.5 100.0 Contingencies: Physical 0.6 1.3 1.9 1.0 2.3 3.3 10.5 Price escalation 1.1 2.0 3.1 2.1 3.4 5.5 17.5 Sub-total 1.7 3.3 5.0 3.1 5.7 8.8 28.0 Front-end fee - 0.2 0.2 -- 0.4 0.4 1.2 Total project cost 7.7 15.1 22.8 13.7 27.0 40.7 3.03 Basis of Cost Estimates. Estimated costs for civil works exclude any identifiable taxes and are based on unit prices which are derived from analysis of current similar contracts for comparable works. Furniture and equipment costs are based on current CIF unit prices, and adjusted upward to include local transportation and installation. Educational equipment is tax exempt in Tunisia. Costs of the technical assistance are based on prevailing international fees for specialists and fellowships: (a) average cost per man-month of about US$8,640 for experts of which 80% would be foreign currency and (b) of US$2,280 per man/month for fellowships, of which 100% would be foreign currency. Baseline cost estimates have been adjusted to reflect anticipated prices at the time of negotiations.  - 22 - 3.04 Contingency Allowances. The project cost includes a contingency allowance for unforeseen physical conditions equal to 10% of the estimated costs for all categories except for technical assistance for which physical contingency was estimated at 5%. The project cost also includes contingencies for price escalation calculated for the period beginning at negotiations and in accordance with appropriate implementation schedule. For local costs, price escalation is calculated on the basis of annual increases of 9% for 1985 and 8% for 1984 through 1986, while for foreign costs price escalation is calculated on the basis of annual international price increases in US dollars of 8.0% for 1982 and 1983, 7.5% for 1984, 7.0% for 1985 and 6.0% for 1986 and 1987. Accordingly, aggregated price increases are estimated at 15.9% of baseline costs plus physical contingencies and total contingencies to be about 28.0% of baseline costs. 3.05 Foreign Exchange Component. The estimated foreign exchange component is US$27.0 million, or 66.3% of the total project cost. The calculation of the foreign exchange component is based on the expectation that: (a) all civil works contracts and related professional services will be awarded to local firms; (b) about 85% of the furniture will be procured by contracts to local suppliers; (c) except for some simple didactic materials, all equipment will be of foreign origin and about 90% will be directly imported; and (d) technical assistance will be principally from foreign sources. The resulting foreign exchange content of each category of expenditure is as follows: (a) civil works 30%; (b) furniture 70%; (c) equipment 90%; (d) professional fees 0%; (e) fellowships 100%; and (f) experts 80%. B. Project Financing. 3.06 The proposed loan of US$27.0 million would finance 100% of the total estimated foreign exchange cost of the project. The Government would finance the balance of the project costs. The proposed financing plan is summarized below: Government IBRD Total US$ million US$ miliT on % Construction 7.0 3.0 10.0 24.6 Furniture 0.7 1.7 2.4 5.9 Equipment 1.6 14.0 15.6 38.3 Professional Services 0.9 0.0 0.9 2.2 Technical Assistance 0.4 2.2 2.6 6.4 Baseline Cost 10.6 20.9 31.5 77.4 Contingencies Physical 1.0 2.3 3.3 8.1 Price Increase 2.1 3.4 5.5 13.5 Sub-total 3.1 5.7 8.8 21.6 Front-end Fee -- 0.4 0.4 1.0 Total Project Cost 13.7 27.0 40.7 100.0  - 23 - 3.07 Recurrent Costs. When fully operational in 1986, the MOA and MOE project institutions would incur recurrent costs totalling DT 8.0 million per annum, or 1.5% of estimated recurrent outlays of both ministries in that year. Their claim on the recurrent budgets would remain roughly at the same percentage through 1991, and would represent a reasonable increase in recurrent costs (para. 1.20). Based on conservative estimates of future current government income and allocations to MOA and MOE, it is expected that the recurrent costs of all project items would be met (Annex B, Table 4). C. Procurement 3.08 Civil works contracts for the four Primary Teacher Training Colleges (averaging US$3.2 million each, including contingencies) will be awarded through international competitive bidding (ICB). Small, dispersed government-financed extensions to agricultural institutions (shelters and small maintenance workshops estimated at US$50,000 each) will be erected by the MOA or implemented by local contractors through normal government procedures which are satisfactory to the Bank and do not exclude foreign bidders. The Bank would finance the fixed equipment for these extensions, estimated at US$328,000. These works are well within the capacity of the MOA and local firms and will be executed according to an agreed schedule. There are sufficient funds in the MOA budget to meet the Government's share of the costs. 3.09 Detailed lists and specifications for furniture and equipment will be presented to the Bank for review and approval prior to procurement. Furniture and equipment items (amounting to US$23.0 million including contingencies) would be grouped to the extent possible in large packages to permit bulk procurement with delivery coordinated with local works (para. 3.08). Contracts of furniture and equipment in excess of US$200,000 would be awarded in accordance with the Bank's guidelines for ICB. Small items or groups of items, estimated to cost less than the above figure or items of a specialized nature, for which ICB would not be practical and items which must be compatible with other equipment procured under ICB, would be procured under normal government procedures satisfactory to the Bank and would include, to the extent possible, quotations from at least three manufacturers or suppliers; the total value of furniture and equipment so procured would not exceed an aggregate total of US$2.0 million or about 8.7% of estimated equipment and furniture costs including contingency allowance. For the purpose of comparing foreign and local bids under ICB, local manufacturers of furniture and equipment would be allowed a margin of preference equal to the existing rate of customs duties applicable to competing imports or 15% of the CIF price, whichever is lower. Draft tender and contract documents for furniture and equipment would be forwarded on completion for Bank review and approval. Bank approval of tender evaluation documents would be required prior to the award of all contracts for furniture and equipment under ICB as well as all civil works contracts. Bank reimbursement of all contracts would be contingent upon Bank approval of bid evaluation documents subsequent to contract awards. 3.10 Disbursements (Annex B, Table 7). Disbursements would be fully documented and would be made on the basis of;  - 24 - (a) Civil works (US$3.5 million): 30% of total expenditure (b) Furniture and equipment (US$18.0 million): (i) directly imported 100% of foreign expenditure (ii) locally manufactured 100% of ex-factory cost, (iii) locally procured (but foreign-manufactured) 85% of local expenditure (c) Technical assistance: (i) consultants (US$1.2 million) 100% of foreign expenditure 80% of local expenditure (ii) fellowships (US$0.3 million) 100% of total expenditure (iii) technician studies (US$1.3 million) 100% of foreign expenditure 80% of local expenditure The amount of US$2.3 million would be earmarked for the unallocated category of the loan. 3.11 The disbursement schedule (Annex B, Table 7) is forecast on the basis of agreed implementation schedules considered appropriate and within reasonable capacity of implementation for the Government and contractors. The dominant proportion of equipment for existing schools in the project's composition, the standard civil worlks involved and the advanced stage of preparation of the bid documents, would result in a relatively shorter time for completion. Disbursement period is hence estimated to be five years or two years shorter than the current revised sector disbursement profile for education in the EMENA region. D. Accounts, Auditing amd Reporting Requirements 3.12 Separate accounts for the project's budgets and expenditures would be maintained in MOA, MOE, and MOPF. The newly created PIU at MOA would have a full-time accountant and monitor expenditures under the Loan. Accounting for the MOE component would be maintained by the PIU at MOE which is already in charge of accounts for the implementation of the third education project. 3.13 During negotiations, the Government provided assurances that: (a) accounts and financial statements for each fiscal year will be audited in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; and (b) henceforth, the Government will furnish to the Bank, as soon as available, but in any case not later than six months after the end of each fiscal year, certified copies of the separate project accounts and audit reports.  - 25 - IV ORGANIZATION AND IMPLEMENTATION 4.01 Organization and administration. A new PIU is be established and will be maintained at the Directorate of Agricultural Education, Research and Extension Services (DERV) at the MOA. It will be responsible for the implementation of the project components of the MOA. It will be composed of a director, an administrator and an accountant on a full-time basis. The MOA has appointed the PIU director after review by the Bank. The existing PIU at the MOE, which currently implements the third education project, will be responsible for the implementation of the project components for that ministry. The Director of Primary Education in the Ministry will be responsible for all aspects related to the proposed training programs. The MOE's PIU is composed of experienced and competent staff within the Directorate of Primary Education and its staff (architect, accountant, procurement specialist, educators, etc.) will be maintained in adequate numbers. The Government has provided the Bank with assurances that the agreed staffing and facilities will be maintained during the implementation period. Both PIUs at MOA and MOE will be expected to send regular progress reports to the Bank at agreed intervals each year. 4.02 Implementation. The construction, furnishing and equipping for all the project's institutions are scheduled for completion by June 1987 and the technical assistance component by December 1985 (Annex A). This schedule is considered commensurate with the project's execution capabilities of the Government and contractors. To allow sufficient time for submission and payment of final withdrawal applications, the closing date will be December 31, 1987. 4.03 Design and supervision of civil works. For the design and supervision of the civil works for the MOE component, architects have been chosen by the Ministry. Preliminary drawings have been reviewed by the Bank during negotiations. Extension to shelters for agricultural equipment and small maintenance workshops, to be government-financed, will be implemented in accordance with standard specifications of the MOA, satisfactory to the Bank, and with the agreed schedule of implementation. 4.04 Sites. The Government has selected and acquired sites for the project's four new Primary Teacher Training Colleges according to criteria acceptable to the Bank. All sites have public utilities (water, electricity and sewerage) readily available. The cost of land acquisition has been born by the Government and is not included in the project. All existing institutions of the MOE component have sufficient land to allow for possible extensions. 4.05 Equipment lists. Detailed equipment lists for the MOA institutions have been completed and reviewed by the Bank during negotiations. The equipment lists for the MOE colleges are standard and were approved with regard to the primary teacher training component of the third project.  - 26 - V. BENEFITS AND RISKS Benefits 5.01 The main benefits expected to accrue from implementation of the proposed project include the following: (a) a higher than present calibre of instructors and of teaching practice in Tunisia's agricultural schools and training centers; (b) efficient, well-organized dissemination of up-to-date technical knowledge and skills in modern agricultural applications to local farming communities; (c) a higher calibre of agricultural extension agents possessing communications skills, up-to-date technical information and sound training in extensionist methodology and practice; (d) a cadre of agricultural technicians well-trained in the technical specializations required for Tunisia's agricultural development; (e) an infrastructure of agricultural schools and training centers adequately equipped to train technical personnel essential for raising agricultural productivity; (f) an institutional capacity for planning and policy formulation to develop the agricultural sector's human resources; (g) increased efficiency of the agricultural schools as a result of budgetary procedures; (h) an investment strategy, feasibility assessment and project design for the development of technician education/training for industrial and commercial development in line with the goals of the Sixth Development Plan; and (i) additional primary teacher training capacity (with an annual output of 1,900 qualified teachers) and modern pedagogical training programs, which will help meet the need for qualified primary school teachers, upgrade the qualifications and skills of the existing teachers, and support effective implementation of Tunisia's reform of elementary schooling. Risks 5.02 The MOA/DERV has not administered an education and training project of this magnitude before, nor has DERV had previous experience with a Bank project. To attenuate this risk, the MOA has (a) appointed a PIU director who has sound experience in carrying out internationally aided development projects; (b) made provision for establishing an appropriately staffed PIU which will, in fact, become the key management unit for the formal agricultural training subsector as far as physical implementation and logistics are concerned; and (c) instructed its Directorate of Administrative and Financial Affairs to give priority to the financial management of this project.  - 27 - VI. AGREEMENTS REACHED AND RECOMNENDATIONS 6.01 At negotiations, the following implementation actions and documents were presented to the Bank: (a) detailed equipment lists with specifications for the MOA institutions (para. 4.05); and (b) preliminary designs for the four primary teacher training colleges (para. 4.03). 6.02 Agreements were reached on the following: (a) Completion of MOA Bureau's specific studies (para. 2.04) according to the agreed implementation schedule; (b) The appointment of a staff member responsible for on-the-job training activities for each agricultural secondary school by September 30, 1983 to organize, supervise and evaluate students'practical off-campus training during school vacations on approved farms or firms (para. 2.17); (c) The appointment of a director for the NAITC by June 1, 1983 (para. 2.08); (d) The MOE's PIU to be maintained to implement the primary teacher training component of the proposed project (para. 4.01); (e) A coordinator for the studies of technician education and training systems be appointed by June 30, 1983 (para. 2.25); (f) Establishing and maintaining an interministerial committee to review progress in the carrying out of the studies (para. 2.25); (g) The Bank to review and agree the qualifications and conditions of employment of all specialists as well as the choice of fellows and their places and programs of study. All fellows to be appointed by December 31, 1984 (paras. 2.05, 2.10 and 2.27); (h) Auditing of accounts in accordance with appropriate auditing principles (para. 3.13) and certified copies of the project's financial statements and audit reports to be furnished to the Bank not later than six months from the end of each fiscal year; and (i) Separate accounts for the project's budget and expenditures to be maintained in MOA, MOE and MOPF (para. 3.12). 6.03 This project provides a suitable basis for a Bank loan of US$27.0 million to the Republic of Tunisia for a term of 17 years, including a grace period of 4 years.  - 28 - ANNEX A Chart 1 REPIJBLIC OF TUNISIA STRUCTURE OF THE EDUCATION AND TRAINING SYSTEM, 1982 Priecarv Edccation Secondary Education Higher Ed-catio- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Economics Tech. Institutes, Tech. Teacher Trg Vocational l Schools 5 Industrial ~~~~~~~~~~High,,Tcniin 3 EHb - }~~ ~ ~ 5 Letters Univerity P ~~~~~~~~~ ~~Socia Scienc, Dentisty,T-ahe Trg jScienc & Math { H F i : X H ; H 1 t ~~~~~~~~~~~~~~~Medicine, Pharmay Em--rnc Exaimintin . Tech. Sci--es Technicl Diploma. App-t"_hi O Voca.tional School CerificaeTa.mg _ A Sprcial prep-rtory y... for enterig high., education 1yTh. primany cycle is leing -it-edd to grades 7 & 8i II I IL to p-oide pre-oati ... training for those not proceding to -ebod.,y scol.Agricultural Schools Agriclt-rl Insitute  REPUBLIC OF TUNISIA FIFTH EDUCATION PROJECT IMPLEMENTATION SCHEDULE AGRICULTURAL EDUCATION COMPONENT 1982 1983 1984 1985 1986 19.87 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 CIVIL WORKS * - Awarding author. & signat. - Construction period FURNITURE AND EQUIPMENT - Prep. of preliminary lists - - Prep. of final lists - Prep. of specs. & bid doc. - Advertising submittal period ...... - Evaluation-recommend. period _ - - Awarding author. & signat. - Manufacturing period _ - Delivery and installation NEGOTIATIONS r*- *Small government-financed hangars.  REPUBLIC OF TUNISIA FIFTH EDUCATION PROJECT IMPLEMENTATION SCHEDULE FOUR PRIMARY TEACHER TRAINING COLLEGES C.Y. 1982 1983 1984 1985 1986 1987 ITEMS 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 CIVIL WORKS -Prep. of schematic drawings - - Prep. of preliminary designs o - Prep. of constr. drawings - Prep. of bidding documents - Advertising-submittal period - EvaluationL-recommend. period - Awarding author. & signat. - Construction period FURNITURE AND EQUIPMENT - Prep. of preliminary lists - Prep. of final lists - Prep. of specs. & bid lists - Advertising submittal period - Evaluation-recommend. period - - Awarding author. & signat. - Manufacturing period - Delivery and installation -Guarantee period _ _ NEGOTIATIONS cr  -31- ANNEX A Chart 2 Cc) REPUBLIC OF TUNISIA FIFTH EDUCATION PROJECT STAFF APPRAISAL Ri!PORT Implementation Schedule Planning and Technician Education/Traininp Studies 1982 1 1983 1 1984 1 19Ll Tasks/Components CY: 4 1 2 3 4 1 2 3 4 1 2 3 4 A. Planning Studies (MOA) (Part A(6) and (7) of the Project) i. Study of School Fates: agriculturalists (2); irrigation specialist (1) (b nlm) rainfed crop specialist (I); legal specialist (I) (3 m/m) it. Agricultural education study agricultural educator (1) (9 r/m) consultants (3) (9 r/m) Ils. Study of human resources in agrxculture _ - j7 agriculture manpower economist (1) (12 m/m) consultants (3) (9 m/r) iv. Fellowships (b) education planning (2) rural pedagogy (1) ) (30 m/m) agricultural education (2) B. National Agricultural Instructor Training Center (MOA) (Part A()) of the Project) i. Specialists agricultural educator (24 W/m) rural communication (24 m/m) consultants (3) (9 r/m)rn ii. Fellowships (b) (hO) r/m) C. Studies of technician education and training systems MOE/MOPF) (Part C of the Project) i. Formulate detailed terms of reference, including budget and implementation plan. _ ii. Official appointment of a studies coordinator iii. Finalize organization for conduct of studies; institu- tional and administrative arrangements 2; appointment of staff; allocation of resources. iv. Activity/Outputs; first report second report third report fourth report (invest. programs & final recommendations) v. Specialists senior technical educator (18 m/m) specialist consultants 3/ (38 r/m)rn manpower survey(s) (lb m/m) fellowships (6 m/m) V Review by the Bank/MOE/MOPF or MOA 1/ Not later than March 31, 1983. 2/ Including establishment of interministerial coordinating committee. 3/ Consultants in the areas of industrial management training, technical teacher training, comsaercial studies, business administration, technical education planning, on-the-job training.  -32 ANNEX B Table 1 COMFRATI EDCAIIN IPICAORSPage 1.of 2pages S~E 20011FF 7, 19'8 * . 1 S~~OOT. 1 * . 1009~~~~~~~:X. 0FF: PRI, :FIESUHFEN1! :SEC. * . ~~~~~~~~~EDO. AS: EDU1C0010F :L. ITE FRI. . . OFPL 0 S.TUJ-O:NI1 C001 IF'FIOOOE2S 127 1 ST.] II 51 1(40 * . . 1~~~~~~~~~~~~% TTL . : )COF'FENNI .:LCy OFFN OLL 11IFF DEFF1S19FCIM. UP, C4 I 001R0I LOF13LIDELNISTEFOO'!LL GN0FFFl I SSP 1CENTFOL:EXr ALLOCATED RA ER F TL 001I 00 TIA F OF FElT :AS Z ONFF'1'FFISO? P IT .16AT100 19E17 11: [00 00001 F'OE OAF PITO 000V0 T001'] 0001. C To: : 1 F INET P90 I01- -A IL C.F F] CArIT 1 1 C N TOL0 [L1F 61011,'S YR MILLS. I 0) TO: