Sierra Leone - Third Education Project

Document of The World Bank FILE CO N FOR OFFICIAL USE ONLY Report No. P-3438-SL REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 18.5 MILLION TO THE REPUBLIC OF SIERRA LEONE FOR A THIRD EDUCATION PROJECT April 5, 1983 I This documet has a restricted distibutin and may be used by recipients only in the perfor_mce of their offcial duties. Its eontents may not otherwise be diselosed witbout World Bank authorizatlon. i  CURRENCY EQUIVALENTS 1 US$ = 1.25 Leones (Le) FISCAL YEAR July 1 to June 30 ABBREVIATIONS ADB - African Development Bank MOE - Ministry of Education ODA - Overseas Development Administration (United Kingdom) UNDP - United Nations Development Programme UNESCO - United Nations Educational, Scientific and Cultural Organization  FOR OFFICIAL USE ONLY SIERRA LEONE Third Education Project Credit and Proj'ect Summary Borrower: The Republic of Sierra Leone Amount: SDR 18.5 million (USS20 million) Terms: Standard Project Description: The project seeks to: (a) improve the quality of primary education through support for primary teacher training and provision of textbooks; and (b) increase access to primary education in rural areas through the construction of primary schools. It also provides assistance for the Government's efforts to strengthen educational planning, administration, management, evaluation, and project implementation. Over a six-year period, the project would construct and equip class- rooms for about 22,500 primary school students, staff housing, a new teacher training college in Freetown, and facilities for a textbook distribution service. It would also provide over one million textbooks and teachers' guides. All primary school children would benefit from the quality improvements supported by the project. The project would provide increased opportuni- ties to attend school in the Northern area, which is the least developed part of the country and where only 20 percent of school-age children currently attend school. Major risks are (i) that construction of such a large number of schools in remote areas, as well as distribution of so many textbooks, might exceed local physical and managerial capabilities; and (ii) that efforts to improve educational planning and admin- istration might be undercut by fundamental weaknesses in government administration and the civil service. To minimize the first risk, the geographic scope of the project has been carefully selected. To deal with the administrative weaknesses, efforts under this project would be reinforced by other proposed activities being discussed with the Government by the UNDP. This document has a restricted distribution and may be used by recipients only in the performance of their offcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Costs: Project Item (US$ million) Local 1/ Foreign Total Primary Schools 9.4 4.0 13.4 Primary Teacher Training 0.9 1.3 2.2 Textbook Procurement & Distribution 0.5 1.5 2.0 Administration, Planning and Evaluation 0.7 0.6 1.3 Project Management 1.3 0.3 1.6 Base Cost 12.8 7.8 20.6 Physical Contingencies 0.8 0.6 1.3 Price Contingencies 3.7 1.7 5.3 TOTAL 2/ 17.3 10.0 27.3 Financing Plan: Local Foreign Total IDA 11.9 8.1 20.0 Government 5.4 - 5.4 Overseas Development Administration - 1.9 1.9 TOTAL 17.3 10.0 27.3 Estimated Disbursements: (US$ million) FY83 FY84 FY85 FY86 FY87 FY88 Annual 1.4 3.1 4.4 4.9 3.8 2.4 Cumulative 1.4 4.5 8.9 13.8 17.6 20.0 Project Completion Date: December 31, 1988 Staff Appraisal Report: 3932-SL Map: IBRD No: 16404 1/ Includes US$1.7 million in taxes. 2/ Columns may not add perfectly due to rounding.  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO SIERRA LEONE FOR A THIRD EDUCATION PROJECT 1. I submit the following report and recommendation on a proposed development credit to Sierra Leone for the equivalent of SDRs 18.5 million (US$20 million) on standard IDA terms to help finance a Third Education Project. The Overseas Development Administration (United Kingdom) is expected to contribute a grant of about US$2.0 million. PART I - THE ECONOMY 2. An economic report, "Sierra Leone - Prospects for Growth and Equity" (No. 3375-SL) of July 31, 1981 was distributed to the Executive Directors. The following discussion is based on this economic report and on the findings of two updating missions which visited Sierra Leone in February/March and June 1982. Country data sheets are contained in Annex I. Structural Characteristics 3. Agriculture is the dominant sector providing employment to 65 percent of the labor force. But its contribution to GDP is about 30 percent, implying the low productivity in the sector. Rice, the staple food, is grown primarily for subsistence by more than 80 percent of the farmers. Even so, the country faces increasing rice shortages. Coffee, cocoa and oil palm are the major export crops and are also the principal sources of cash income for the agricultural population. 4. Sierra Leone is rich in minerals, and mining is a key sector. Of the country's mineral resources, diamonds are most important, having accounted for nearly 37 percent of all exports in FY82. The other minerals exported are bauxite, rutile, and gold. The manufacturing sector is small and consists largely of import-substituting industries; it employs about 10 percent of the labor force. 5. Sierra Leone's social and economic infrastructure is not well developed. The road network is generally adequate, but feeder roads are often lacking and road maintenance is poor. The country has good water resources, but its hydro-electric power potential has not been fully exploited. 6. There is a substantial disparity in incomes between the modern and traditional sectors of the economy. With a population of about 3.5 million (1981), average per capita GNP was estimated at about US$150 for the rural sector, while that in urban centers was estimated at about US$700. About 22 percent of the population live in urban areas.  -2- Recent Economic Performance 7. Between 1962 and 1972, the first decade of independence, production and income rose impressively. GDP grew nearly 5 percent a year, foreign exchange earnings were adequate, and public revenue grew satisfactorily. The Government did not face any serious limitation of financial resources. The situation changed after 1972; diamond output declined, mainly as a result of the depletion of alluvial deposits; oil prices increased sharply; and there was a general rise in import prices of manufactured goods. The situation worsened further in 1975, when the country lost its second largest source of export earnings: the only iron ore mine closed due to rising production costs and the declining grade of the iron ore. As a result of these factors, real GDP declined 4 percent in 1976 and remained virtually stagnant thereafter. Agricultural and mineral output, which together account for 40 percent of GDP and almost all the country's exports, have declined since 1980. Per capita real income has also declined because the population has grown at 2.6 percent a year. 8. Fiscal Performance. The slowdown in economic growth and the erosion of the export base after 1973 contributed to a marked deterioration in fiscal performance. While public revenues increased 12 percent a year between FY73 and FY81, public spending rose more rapidly at a rate of nearly 21 percent a year. Between FY81 and FY82, public revenues actually declined slightly, while public spending continued to increase. The estimated budget deficit for FY82 was US$119 million, which was nearly 10 percent of GDP. Public expendi- tures are difficult to reduce because nearly 40 percent of the expenditures are for salaries and wages. There is also heavy pressure on the current budget from interest payments on outstanding debt. 9. Balance of Payments. Sierra Leone's balance-of-payments situation has deteriorated steadily since the early 70s as import bills rose, largely as a result of the sharp increase in energy prices after 1973, and exports falling in value and volume. The cost of petroleum imports jumped from US$8 mill'ion in 1971 to about US$65 million in 1980, claiming more than a third of the country's export earnings. The price of other imports also rose during this time. For exports, on the other hand, stagnant production was reflected in the volume of exports. During 1980 and 1981 the continued decline in the reduced volume of exports was aggravated by depressed prices for Sierra Leone's exports. Diamond prices fell sharply, and the other agricultural exports, such as cocoa, coffee and palm oil, also suffered a substantial decline in the world market. Meanwhile, domestic demand rose sharply because of expansionary Government spending. The money supply also increased at an average annual rate of more than 20 percent a year during 1977-81; inflation has been 15-20 percent a year. The rise in domestic demand created pressure on imports, making things even worse. The balance-of-payments deficit increased from 3.9 percent of GDP in FY80 to 11 percent of GDP in FY81. At the end of June 1981, the outstanding debt of Sierra Leone was about SDR300 million, or about 30 percent of GDP.  10. Development Planning. Development spending during the first Five- Year Plan (FY75-79) fell far short of the target mainly due to fiscal manage- ment problems and serious foreign exchange constraints. Because of the experience with the first Five-Year Plan and the time needed to prepare the second Five-Year Plan, two interim investment plans--one for FY79-81 and the other for FY82-84--were prepared. There has also been a serious shortfall in implementing these plans. A short paper on the strategy of the second Five- Year Plan is now available, but much work is needed to finalize the Plan. IDA and UNDP have provided technical assistance for plan preparation, but progress has been very slow. The sector plans needed as input to the Five-Year Plan are still being prepared. A new cabinet appointed following the April 1982 elections appreciates the need to have an investment plan that will clarify developmental objectives, determine intersectoral priorities, and ensure coordination. External Debt and Creditworthiness 11. In the face of slow growth in public revenues and export receipts, Sierra Leone has relied since the mid-1970's on foreign borrowing to finance its capital expenditures. Total external debt outstanding increased from US$184.0 in 1975 to US$437 million in 1981, of which US$345.7 million was disbursed. Of the total debt outstanding and disbursed, 33 percent was in commercial credits, 37 percent in bilateral loans, and 30 percent in loans and credits from international institutions. As of December 1981, the Bank Group held 13 percent of Sierra Leone's external debt outstanding and disbursed. Assistance from bilateral government sources came mostly from the Federal Republic of Germany, the People's Republic of China, the Netherlands, and Japan. The maturity structure of Sierra Leone's external public debt has deteriorated since the mid-1970's as a result of substantial borrowing through suppliers' credits in the mid and late 1970s. Unable to service its external debt, the Government approached its creditor countries through the Paris Club in September 1977 and November 1979 and negotiated debt-relief agreements. The relief amounted to an estimated US$39 million under the 1977 Agreement and US$37 million under the 1979 Agreement. At present, Sierra Leone has arrears on the renegotiated portion of both Paris Club consolidations as well as on other consolidated debt to Paris Club members. Debt service on Bank Group loans and credits amounted to about 6.0 percent of Sierra Leone's debt service liability in 1981. Development Issues 12. Unsatisfactory economic management is the most immediate issue. Without macroeconomic policy reforms, the economy cannot be put back on a growth path. The reforms must include budgetary measures to increase revenue and reduce spending; extra-budgetary expenditures will have to be eliminated. Added to this is the need for appropriate pricing policies, especially for foreign exchange, to help exports and curb domestic demand. A tight monetary policy, consistent with fiscal policy, is also needed to ease the inflationary pressure and help stabilize the economy. In addition to these short-run policies, the Government has to address some structural issues important for growth and equity. First, the economy at the moment is highly dualistic.  - 4 - The agriculture sector is based on subsistence with low productivity. A very small modern sector covers mining and some manufacturing. The dualism creates inequities in living standards and incentives for outmigration from the traditional sector, causing labor shortages during the peak agricultural season and further losses in productivity in agriculture. 13. Second, the economy has an exceptionally low rate of saving, estimated at only 2 percent of GDP for FY82. The rate of taxation is also very low. Compared with other economies having a similar mining sector, Sierra Leone's rate of taxes on mining is exceptionally low, and this is contributing to the low rate of overall saving. While the saving rate is low, the investment structure has been such that the incremental capital-output ratio for the economy has been quite high, at about 10 in the 1970's. This has been due to heavy emphasis on infrastructure development and capital- intensive projects. Third, the development of human resources has been poor. The literacy rate for the country is only 15 percent; life expectancy esti- mates vary between 35 and 47 years. Access to social services in rural areas is extremely limited. Only 12 percent of the population has access to safe drinking water. Sierra Leone has one of the highest infant mortality rates in the world, about 200 per 1,000 live births during 1974-79. The primary school enrollment ratio is low compared with other neighboring African countries. The lack of educational and training opportunities is reflected in the shortage of skilled manpower. Although Sierra Leone has a reasonably com- petent administrative structure with adequate managerial and professional skills, mid-level skills and the overall quality of labor have been poor. Short-term economic management is needed to put the economy back on track. Long-term growth prospects depend, however, on development of agriculture and of human resources. Recent Economic Reform Measures 14. An Extended Fund Facility agreement with the IMF, which became effective in early 1981, was abandoned after less than six months in part because of the Government's inability to control spending. The new Finance Minister has been responsive to Bank and Fund advice on macroeconomic policies and has initiated a far-reaching macroeconomic reform program. A Government announcement, "The Modification of Exchange Arrangements" dated December 1982, set up a "commercial" market for foreign exchange, in addition to the existing fixed or "official" market. The rate in the commercial market is determined by a periodic foreign exchange auction and has resulted in a rate about twice the "official" rate. The dual exchange rate is expected to converge after about a year through a phased devaluation of the official rate. The Govern- ment consulted with the IMF before announcing this procedure, including which transactions should fall under each exchange rate. Significant measures to contain public expenditure and mobilize additional resources are also under way. Effective January 1983, the Government raised the domestic prices of agricultural export commodities from 8 to 50 percent over last year's prices. In the light of these reforms, the Fund has recently approved a concessionary loan under the Compensatory Financing Facility and has begun negotiation of a standby agreement.  -5- Future Prospects 15. The next two to three years will be difficult for Sierra Leone. The earliest revival of economic growth will probably not be before 1985-86, even with the new investments in mining and continued investments in agriculture. Appropriate agricultural prices and intensified efforts to increase agricul- tural production could increase export earnings from cocoa, coffee, and palm oil. But the total export earnings will change little during the first half of the 1980's. The cost of imports may still rise, with the rate of increase depending on the demand management policies pursued by the Government. In any case, the balance-of-payments will continue to be under pressure. Further rescheduling of both official and private debt servicing may be necessary. In the medium and long term, Sierra Leone could both restore and sustain its creditworthiness as the Government implements macroeconomic policies required to implement an IMF supported program to improve the balance-of-payments. 16. The future outlook of the mining sector is mixed. The extent of mineral deposits is not, however, fully known. The Kimberlite underground diamond mining project has good prospects, but it may take some time to materialize. Large iron ore reserves have been discovered, but most of these are of low grade and presently not economic to mine. Only one iron ore mine, which had earlier ceased operations because it was incurring losses, has now reopened. Mining of rutile, which faced early difficulties, has progressed satisfactorily, although the mine still operates well below capacity. Bauxite mining has improved recently with the installation of new machinery and more bauxite deposits have been discovered, but these are of low quality and will be economic only if these are used to manufacture alumina. In recent years, the interest in gold mining has revived but the total production remains very small and comes mostly as the side-product of diamond mining. 17. The Government is proposing the Bumbuna hydroelectric power project to produce lower cost energy. This is a large project for a country the size of Sierra Leone; total costs are estimated at about $280 million, with a foreign exchange component of $180 million. In June 1982 the Board approved a Power Sector Engineering and Technical Assistance Credit to help in the pre- paration of the project. The Government and the Bank are currently analyzing the macroeconomic implications of the project, including its effect on the availability of resources for other development activities. If the project is assessed as economically attractive, almost all the funds needed will have to be raised externally and on concessional terms. In any case, a hydroelectric project like Bumbuna would have a long gestation period. The benefits of the Bumbuna project, if taken up, would not begin to accrue for five to six years. 18. Although the present balance-of-payments situation and the country's debt profile do not justify lending on Bank terms, the country's low per capita income justifies IDA assistance. At the same time, to ensure an adequate flow of foreign exchange resources for the country's development during a period of budgetary stringency, it would be appropriate to finance a part of local costs of projects.  PART II - BANK GROUP OPERATIONS IN SIERRA LEONE I/ Bank Group Operations 19. Bank and IDA operations in Sierra Leone to date have totalled US$88.0 million. There have been five loans amounting to US$18.7 million and eleven credits totalling US$69.3 million. IFC has provided a loan of US$2.1 million to Sierra Cement Manufacturing Company, Ltd which is now fully disbursed. Five loans and five credits are fully disbursed. Disbursement performance under Bank loans and IDA credits was satisfactory in the past, with disbursements amounting to more than 40 percent of loans and credits outstanding at the beginning of each fiscal year from FY78 to FY81. This was because foreign assistance, including cofinanciers' contributions, have accounted for a high proportion of project costs and because the Government provided counterpart resources promptly. However, over the past year or so, the Government has been experiencing a severe shortage of resources for investment and this has delayed the execution of several projects in the agricultural sector as well as the Second Highway Project. We are maintaining a close dialogue with the Government on provision of counterpart funds so as to minimize delays in project execution. Bank and IDA operations have been in support of agriculture (39 percent), education (12 percent), power (24 percent) highways (22. percent) and technical assistance (3 percent). Annex II contains a summary statement of Bank loans and IDA credits as of February 28, 1983 and notes on the execution of ongoing projects. In general, the execution of the ongoing projects has been satisfactory. Lending Strategy 20. The principal objectives of Bank and IDA assistance to Sierra Leone are to: (a) support improved economic management, including economic develop- ment planning and project preparation; (b) stimulate the productive sectors with a view to broadening the country's export base; (c) improve the country's essential infrastructure, particularly roads and power, the inadequacy of which presently constitutes a constraint upon the country's economic growth; (d) raise the income levels and standard of living of the poorest section of the population; and (e) broaden access to education, particularly in the rural areas, and improve its quality. At the same time, the Bank and IDA seek to encourage the adoption of appropriate sector pricing policies and to strengthen the management of public sector corporations wherever appropriate. 21. With the gradual decline in the production of diamonds, it has become increasingly important to develop the agricultural and manufacturing potential of the economy. Bank Group financed agricultural development projects have provided improved extension services, feeder roads and farm 1/ This section is substantially unchanged from the President's Report for the Power Sector Engineering and Technical Assistance Project (P-3341-SL) of May 27, 1982.  - 7 - inputs to smallholder farmers. These activities were started in the Eastern area under the first project in 1970, and expanded in the East and introduced in the North under the second project. A third agricultural development project in the East and a second for the Northern area were approved by the Executive Directors in FY81. These ongoing operations complement other integrated agricultural development projects under way with the assistance of the International Fund for Agricultural Development (IFAD) and the European Economic Community (EEC). To ensure smooth assimilation of these projects into the Ministry of Agriculture administration, a project is being prepared for possible Bank Group support. The Bank carried out a review of the agri- cultural sector in late 1982 and is now preparing its report with a view to agreeing on a detailed set of policies with the Government which would help accelerate development of the sector. 22. In infrastructure, the Bank Group's first highway project included sections in the country's main trunk road system and a maintenance program, as well as studies for further improvement of the road system. The second highway project is strengthening the country's capacity to maintain its road network. A power sector engineering and technical assistance project, which was approved in June 1982, is helping complete preparation for the Bumbuna hydroelectric project (see para. 17). 23. Bank Group assistance to education is described in Part III of this report. The proposed third project would increase access to primary education, largely in the rural areas, and improve its quality. The project would address a critical constraint to development--the low educational achievement of workers in rural areas--and thereby complement the Bank's support for agricultural development. 24. To achieve its medium and longer-term development objectives, the Government needs to improve its econonic planning and project preparation capabilities. In response to a request from the Government, IDA is financing a Technical Assistance Project which is designed to assist the Government to formulate a second National Economic Development Plan and prepare well- conceived development projects in a number of priority sectors. 25. As noted in Part I of this report, Sierra Leone has experienced economic difficulties in the last few years. Improvement in the Government's management of the economy will be an important determinant of the level of future Bank Group operations in Sierra Leone. PART III - THE EDUCATION AND HUMAN RESOIJRCES SECTOR Human Resources 26. About 65 percent of Sierra Leone's labor force are employed in agriculture. While the total labor force was estimated at 1.2 million in 1974, wage employment, mostly outside the agricultural sector, accounted for only  - 8 - about 120,000. Of those employed, some 58 percent work for either the Govern- ment or public enterprises, and half of those employed are either unskilled or semi-skilled workers. The slowdown in economic activity in recent years has led to stagnation of employment growth in the modern sector. Given the uncertainties regarding resumption of growth over the medium term, prospects for a substantial increase in modern sector employment do not appear good. Agriculture does, however, hold the potential for increases in productivity, incomes, and export earnings through the adoption of improved methods of pro- duction and policies which would provide adequate incentives. Consequently, the majority of new entrants into the labor force during the 1980's will need to be absorbed into agriculture, small-scale enterprises, and the informal sector. It follows that human resource policies should support increased productivity of the dominant traditional sector through literacy training and basic skill development to facilitate the introduction of improved tech- nologies in agriculture and small-scale industry. Education System 27. Sierra Leone's education system was patterned after the British system and maintains close links with it in terms of standards, examinations, and professional qualifications. The system comprises a primary course of seven years, a five-year secondary course, and, in some schools, a two year sixth form. Higher education is provided by five teachers colleges, two technical institutes, and the constituent branches of the University of Sierra Leone at Fourah Bay and Njala. A number of specialized institutes within the formal system provide technical, vocational, and agricultural training. English is the language of instruction at all levels. 28. The Ministry of Education (MOE) has overall responsibility for formal education in Sierra Leone. IJntil recently, authority was almost completely centralized, with very little diffusion to the regional level, but now District Education Committees have been set up to operate schools within their jurisdiction. In addition, a variety of private agencies (employing authorities) operate schools with financial assistance from MOE. The University of Sierra Leone and its institutes have autonomous status, but the University's budget is largely dependent on Government grants included in MOE's budget. 29. Educational planning and evaluation are the responsibility of the Planning Unit of MOE. Educational research, curriculum development, and teacher upgrading are the responsibilities of the Institute of Education, which is attached to the University of Sierra Leone. Main Issues in Education 30. Until the mid-seventies, priority was given to the development of secondary general, technical, and university education in order to produce skilled manpower to meet shortages in the modern sector of the economy. The development of secondary education has been dramatic, with enrollments increasing at an average annual rate of more than 13 percent between 1963 and  - 9 - 1977. In contrast, primary education enrollments have increased by only 5 percent annually. Existing secondary schools and vocational training institutions can satisfy the modern sector's present limited demand for skilled manpower. Consequently, in the context of a development strategy to achieve growth and alleviate poverty, the main issue for the education sector is how to increase access to basic education while at the same time improving its quality without unduly burdening the Government's budget. Access to Education 31. Only 40 percent of school-age children were enrolled in schools in 1978, and actual attendance figures are believed to be considerably lower. Moreover, there is considerable disparity in enrollment between urban and rural areas, ranging from 70 percent in the towns to 25 percent in rural areas. Universal primary education is a national objective. However, the wide geographic dispersal of Sierra Leone's population is an obstacle to the growth of education in rural areas. Careful school location planning is therefore essential if access to education is to be increased at a reasonable cost. Quality of Education 32. Although pupil/teacher ratios are low in both primary and secondary education, quality has reportedly declined in recent years. UInqualified teachers, poor facilities, and a lack of textbooks have had a negative impact on the internal efficiency of the system. There is a high drop-out rate, a high number of grade repeaters, and student achievement is low. Institutional Weaknesses 33. An important constraint to the coherent and rational development of education, as well as efficient project implementation, is the weakness of the institutions responsible for managing and planning the education system. Recent efforts to decentralize educational administration, while desirable, have accentuated the institutional weakness of MOE. In addition, MOE suffers from a decline in morale and general effectiveness which has been apparent throughout the Government in recent years. 34. The First Education Project (Cr. 170-SL) and, to a larger extent, the Second Education Project (Cr. 573-SL) have provided significant support to MOE's Planning Unit and the Institute of Education to strengthen educa- tional planning, evaluation, research, curriculum development, and in-service teacher training. In addition, the Technical Assistance Project (Cr. 970-SL) includes financing for an educational planning adviser and staff training in educational planning. Although much valuable work has been done, achievement of the institutional project objectives has been limited by the lack of qualified staff to fill existing vacancies and the absence of an adequate operating budget.  - 10 - Education Cost and Finance 35. Total recurrent expenditures on education represented 4 percent of GDP and 18 percent of the Government's total recurrent budget for 1981/82. While the former percentage is roughly similar to that in other Wjest African countries, the latter is relatively low. About 40 percent of the education budget is allocated to primary education, which is equivalent to the median for sub-Saharan Africa. The Government's financial outlays for primary education have increased in recent years; expenditures on primary education as a percentage of GDP increased from 1.3 percent in 1977 to 1.6 percent in 1981. The latter proportion is considerably above the average in African countries at a similar stage of educational development. 36. Apart from the Bank Group, the leading bilateral and multilateral donors for educational development in Sierra Leone are the United Kingdom (UK), the European Community, the UNDP, and the African Development Bank (ADB). The UK is the main source of technical assistance personnel for education. Government Strategy 37. Beginning with the first five-year National Development Plan (FY75-79), the Government's stated economic policy has given increasing emphasis to agricultural and rural development as the "engine" of economic development. In support of this policy, the development of primary education is given a much higher priority than before, with the initial emphasis on curriculum development and pre-service primary teacher training. In 1979 the Government undertook, with support under the Second Education Project, an in-depth review of its education sector policies. The review's conclusions emphasized the need to take further steps toward achieving the above-mentioned policy objectives by implementing (a) a nationwide primary school construction program, and (b) a series of measures to improve the quality of education, including an increase in the number of qualified teachers and production of educational materials. The Bank Group's Role 38. Both the First and Second Education Projects supported the Govern- ment's priorities for skilled manpower development by providing assistance to: (a) diversify and expand secondary education programs; (b) expand and upgrade trade schools and technical institutes; and (c) provide facili- ties for secondary technical teacher training and management training, and upgrade facilities for primary teacher training. The second project also supported the Government's rural development strategy through the creation of a training institute for community development workers. In addition, the project financed educational planning and research to improve the quality of primary education. 39. The First Education Project was completed at the end of 1975, about 18 months behind the appraisal schedule. The Project Performance Audit Report (PPAR No. 1433 of January 26, 1977) says that the project compared  - 11 - favorably with audited education projects in other countries with respect to general institutional achievements--in educational administration, planning, and curriculum development. Civil works and equipment were appropriate and all the schools are now in operation. The outcome of the primary teacher training program at the Freetown Teachers Training College, originally intended to be attended during evening hours by unqualified teachers and housed in the facilities of a secondary school, has been less satisfactory. The difficul- ties were discussed extensively in the PPAR, but no improvement has occurred since. The College offers a teacher training program for unqualified teachers during evening hours. However, only half of the students are practicing teachers and the rest are regular full-time students. Since most practicing teachers find it too demanding to study at night while holding full-time teaching jobs, many drop out of the program. The Second Education Project (Cr. 573-SL) was completed by the end of 1982, about two years behind schedule because of start-up delays. Project institutions are in operation and the outcome of the project will be evaluated during the first half of 1983. 40. The low rate of schooling and the resulting high illiteracy rates among adults are constraints to the adoption of new methods to increase and diversify agricultural production. The Bank views improvements in the access and quality of primary education as leading sectoral priorities, especially in light of the growing body of evidence based on research in several parts of the world which indicates that education, especially at the lower levels, is an essential condition for economic and social development. To finance the accelerated development and quality improvement of primary education, the Government will need to control costs and make better use of available resources. 41. Universal primary education is a long-term policy objective and the Government could realistically aim at enrolling 70-80 percent of all primary school-age children by the mid-1990s provided that 2 percent of GDP were allocated to primary education by that time and available resources were used effectively. Following discussions with the Bank, the Government has agreed to take measures to make expenditures in the sector more efficient. These include: (a) reduction of the primary course from seven to six years, and (b) a gradual increase in the number of pupils per teacher from the present 35:1 to 45:1 not later than the 1991/92 school year. The reduction in dura- tion of the primary school course would start with the students entering first grade in the 1984-85 school year. The increase in the pupil/teacher ratio would be phased in by adding a minimum of one pupil per teacher each year starting in 1983/84 through 1991/92 in the calculation used to determine the salary grants to public and private employing authorities. The Government has agreed to: (a) submit to IDA by December 31, 1983 for review and comment a plan to implement these measures; and (b) prepare a progress report on their execution and review the report's conclusions with IDA by December 31, 1985 (draft Development Credit Agreement, Section 3.13).  - 12 - PART IV - THE PROJECT 42. A sector review report prepared in 1979 by a Sierra Leonean task force with UNESCO assistance outlined the major elements of the proposed project which were presented to the Association in March 1980. The project was prepared by the Government between September, 1980 and December, 1981, and was appraised by the Association in January/February 1982. Negotiations took place in Washington on February 10 and 14, 1983. The Sierra Leonean delegation was headed by the Honorable E. Ndomahina, Minister of Education. Significant events and special conditions are summarized in Annex III. Project Objectives 43. The project would: (a) improve the quality of primary education through support to primary teacher training and the provision of textbooks; and (b) increase access to primary education in rural areas through the construction of primary schools. The project would also assist the Govern- ment in its efforts to strengthen educational planning, administration, management, evaluation, and project implementation. Project Description 44. The project would be implemented during the six-year period from 1983 to 1988, and would comprise: Part I: Development of Primary Education (a) Primary education. Construction and operation of about 500 classrooms and about 66 staff houses, to provide about 22,500 student places, in rural areas; and provision of (i) furniture and equipment for these classrooms, and (ii) specialist services to develop standards and simple designs for school buildings and furniture. (b) Primary teacher training. Construction and operation of a primary teacher training college in Freetown and provision of (i) furniture and equipment for the college and (ii) specialist services for study of the efficiency of teacher training. Construction of three houses for teachers at the college. (c) Textbook procurement and distribution. (i) Development, acquisition, storage, and distribution by the textbook task force of primary school textbooks; and (ii) upgrading of the existing central book storage facility in Freetown and nine district book warehouses.  - 13 - Part II: Administration, Planning, and Evaluation Provision of equipment, specialist services, fellowships and operating funds to: (a) improve the administrative and educational skills of all key staff at the central, regional, and local levels concerned with primary education; and provide training in support of the textbook component; (b) strengthen the Planning Unit of the Ministry of Education, especially its capacity to collect educational data and carry out school location planning; (c) support studies on education, planning, and financing to be conducted by the Planning Ulnit; and (d) strengthen evaluation research, particularly related to the textbook component. Part III: Project lIanagement Strengthening and operation of the Project Unit through the provision of equipment and local staff services. Status of Project Preparation 45. Educational specifications for all project institutions have been prepared and a locally established firm of consulting architects has been appointed to do the architectural design work. Six pilot primary schools were constructed in 1982. The equipment list for the primary schools was approved by IDA during appraisal and bidding documents for the first phase of the primary school construction and equipment program have subsequently been approved by IDA. Final drawings and equipment lists for the Freetown Teachers College have also been approved by IDA. Documents for the prequalification of textbook suppliers have been found acceptable by IDA. Project Implementation 46. The Project Unit, which was created within the Ministry of Finance to coordinate implementation of the first project (Cr. 170-SL), and continued to do so under the second (Cr 573-SL), would again serve this function under the proposed project. Staffed entirely with Sierra Leoneans, the Unit is well managed and efficient. Since 1979, it has also coordinated imple- mentation of an education project financed by the ADB. The educational aspects of the project would be executed by MOE and other appropriate official agencies. Since the Project IJnit has limited experience in the construction of large numbers of school buildings in remote areas and since the number of competent contractors is limited in these areas, a pilot primary school construction program has been carried out (see para. 45) and funds have been included in the project to strengthen the supervisory staff of the Project  - 14 - Unit. Since the Government also lacks experience in the distribution of textbook and school materials on a large scale, the project would include funds to improve the existing warehouse and distribution system. 47. Primary Schools. All the project schools would be located in remote rural areas, mainly in the Northern part of the country where only 20-30 per- cent of school age children attend school. They would function on a multigrade basis, whereby six primary grades would be taught in two or three classrooms. Staff houses would be provided only for the schools in the most remote areas, where rented accommodation is not available and to which it would otherwise be difficult to attract qualified teachers. The Government and IDA have agreed on criteria for location of the schools, and acceptable sites for about 85 schools, to be constructed in the first phase of the construction programs in 1983 and 1984, have been selected. The Government has agreed that a list of all proposed sites for the primary school and staff housing construction program will be selected and submitted for IDA's review and approval by December 31, 1983 (draft Development Credit Agreement, Section 3.06). The Government would ascertain that land is available to construct and operate the facilities included in the project (draft Development Credit Agreement, Section 3.17). 48. IDA has reviewed and approved the bidding documents for the first phase of school construction and equipment purchases. The proposed project would also finance an internationally recruited architect in the Project UJnit for two years to develop simple standard designs for primary schools and school furniture which can be constructed by villagers with their own means, and conduct experiments in this respect. 49. Primary Teacher Training. The Freetown Teachers Training College currently operates in a secondary school which was expanded under the First Education Project for common use by the secondary school and the College. The building is used in the day time for the secondary school and during evening hours for training of unqualified practicing teachers. However, the quality and efficiency of the programs offered at present is low (para. 39); and the number of teachers trained annually needs to be increased to meet the require- ments of an expanded primary education program. Since this cannot be done in the existing facilities, the Government has decided to create a new facility for the teacher training college that would train 432 students in a three-year program expected to produce about 130 new qualified teachers a year. Unquali- fied teachers with teaching experience would be given leave of absence with pay to attend the College full-time. The facilities would also be used for vacation courses for unqualified teachers. A site has been selected and the Government would present evidence satisfactory to IDA promptly after acquisi- tion, and before issuing invitations to bid, that the land for the teacher training college or rights to the land were available for purposes related to the project (draft Development Credit Agreement, Section 3.17). The old facility would be used exclusively for secondary education. 50. Textbook Procurement and Distribution. The project includes (a) procurement and distribution, over a three-year period, of about one million textbooks and 125,000 teachers' guides; and (b) structural improve- ments, furniture, and equipment for the existing central book storage facility in Freetown and for nine existing district book warehouses.  - 15 - 51. The textbook publishers would adapt existing books to the new Sierra Leone curriculum with the assistance of a Sierra Leonean advisory committee. All materials issued under the project would be copyrighted by the Government alone or jointly with the publishers. Royalties, if any, would be determined as part of the contract negotiations. 52. The Government has agreed to establish a task force to coordinate preparation, production, and distribution of textbooks. The task force would report to MOE and work closely with the Project Unit. Recruitment of the head of the task force by the Minister of Education is under way and assurances have been given that, not later than August 31, 1983, the textbook task force would be established and an advisory committee appointed to advise the Chairman of the task force; both would be composed of suitably qualified members (draft Development Credit Agreement, Section 3.08). 53. The task force is expected to evolve into a national textbook pro- curement and distribution service. The Government has agreed to study the organizational, legal, and financial framework for such a service in the light of experience gained during project implementation and prepare draft documents for its establishment. The Government would submit the study together with the appropriate draft documentation to IDA for review and comment by June 30, 1985 and put into operation the national textbook service by June 30, 1986 (draft Development Credit Agreement, Section 3.11). 54. Administrative and Educational Staff Training. The project would finance 45 two-week workshops for administrative and educational staff con- cerned with primary education at the central, regional, and local level. The workshops would be organized for MOE by the Institute for Public Adminis- tration, which would employ a program coordinator/lecturer for this purpose. An outline of workshop programs has been prepared and the Government has agreed to submit to IDA by August 31 of each year, for review and approval, the final program and cost estimate for the series of workshops planned for the upcoming school year (draft Development Credit Agreement, Section 3.09). To promote better monitoring of school standards and performance, the project would finance travel within Sierra Leone of the inspectorate staff (about US$200,000). MOE would plan the program for use of the travel funds. The Government would submit to IDA, by August 31 of each year, detailed plans for use of the travel funds during the coming school year, and a report on the use of the funds during the preceding year (draft Development Credit Agreement, Section 3.14). 55. Educational Planning. MOE is preparing a plan to strengthen its Planning Unit. Assurances have been received that the Government would furnish this plan to IDA for review and comment not later than December 31, 1983 and start implementation not later than July 1, 1985 (draft Development Credit Agreement, Section 3.10(a)). To strengthen educational planning, the project would provide MOE's Planning Unit with specialist services, fellow- ships for staff training, equipment, and operating funds. The project would extend the support presently provided under the Technical Assistance Project (see para. 34) for an education adviser in the Planning IUnit for a period of  - 16 - two years starting in July 1983. Three fellowships in educational planning would be awarded to junior staff in the Planning Unit. Similar assistance was provided under the Second Education Project. UJnder the proposed project, such positions would be established in the Planning Unit and fellowships in educa- tional planning would be awarded to staff already in them (draft Development Credit Agreement, Section 3.10(b)). These and all other fellowships would be awarded to suitably qualified persons to participate in training programs satisfactory to IDA (draft Development Credit Agreement, Section 3.07). 56. Evaluation. The project would finance studies on: (a) the impact of the textbook component on changes in student achievement, attendance, and promotion rates; (b) distribution, storage, and use of textbooks; (c) teacher training; and (d) other project components. Assurances have been received that these studies would be carried out in accordance with research designs acceptable to IDA and that the conclusions and recommendations of studies (a), (b) and (c) would be furnished to IDA before December 31, 1986 for review and comment (draft Development Credit Agreement, Section 3.12). 57. All the project-financed research and evaluation studies would be coordinated by the Institute of Education, which is expected to play a key role in their implementation. It would encourage the use of the research capabilities of the University of Sierra Leone, Milton Margai Teachers College, and other local institutions. The Institute of Education would also assist in the preparation of the project completion report. Project Costs 58. Costs, including US$1.7 million of taxes, are estimated at US$27.3 million, of which US$10.0 million are foreign costs. A breakdown of project costs is given in the Credit and Project Summary at the beginning of this report. 59. The cost estimates for civil works are for October 1982 and are based on preliminary designs and unit costs derived from construction con- tracts awarded from 1977 to 1981 for similar buildings. The project would be exempt from customs duties and income taxes on expatriate salaries; sales taxes and income taxes paid by the project on local staff salaries are however included in the total project costs. The average net-of-tax cost of construction of the teachers' college is estimated at the equivalent of US$365 per square meter. The cost per student place of academic and communal facilities at the teachers' college is estimated at the equivalent of US$2,285, which is lower than construction costs for similar institutions in neighboring countries. The average net-of-tax cost of construction of the primary schools is estimated at the equivalent of US$128 per square meter. The cost per student place in the primary schools is estimated at the equivalent of US$258. The average cost of expatriate specialists, based on recent recruitment experience of international organizations and the Government, is estimated at US$8,000 per man-month, including salary, allowances, and overhead; the cost of local specialists averages the equivalent of US$1,000 per man-month. The project would finance 1,174 staff-months of specialist services, of which 125 staff-months are expected to be provided by expatriate staff, as well as 90 staff-months of fellowships. Locally established consultants have been appointed for preparation of design work.  - 17 - 60. Project costs include a physical contingency allowance of 10 percent of the base cost for civil works, furniture, and equipment. Price contingen- cies of 26 percent of the base cost plus physical contingencies have been applied overall. Foreign cost increases for goods, services, and fellowships were calculated according to Bank guidelines as follows: 1983, 8 percent; 1984, 7.5 percent; 1985, 7 percent; and 1986-88, 6 percent. Local cost increases for goods and works were calculated at 10 percent for 1983-88. Local cost increases for salaries were calculated at 5 percent for 1983-88. The price increases for local goods and civil works were estimated on the basis of the trend during 1977-80. Local salary price contingencies at 5 percent are in line with Government policies. Financing Plan 61. The proposed project would be financed by an IDA credit of SDR 18.5 million (US$20.0 million) and a grant of approximately US$2 million equivalent from the British Overseas Development Administration (ODA). ODA would finance all costs of the textbook component excluding operating costs. The IDA credit would finance the rest of the foreign exchange costs (US$8.1 million) and 69 percent of the local costs (US$11.9 million), including 65 percent of the operating costs. The Government would finance all incremental recurrent costs, 35 percent of the operating costs, and all taxes levied on project goods and services. The Government would make adequate provision in its recurrent budget to cover the incremental recurrent costs and ensure adequate staffing of the project institutions (draft Development Credit Agreement, Section 3.03). 62. As discussed in Part I of this report, the Government faces severe financial constraints which would make it difficult for it to advance funds for expenditures to be financed from the IDA credit. For this reason, it is recommended that a Special Account with an initial advance of the equivalent of US$250,000 from the credit be established to pay for local operating cost expenditures, furniture, equipment, spare parts and building materials to be financed by IDA. As a condition of effectiveness, the Government would open an account for this purpose in a financial institution acceptable to IDA (draft Development Credit Agreement, Sections 2.03 and 6.01(b)). The Project Manager heading the Project Unit would control the Special Account, and IDA would replenish it upon receipt of satisfactory evidence of expenditures. In addition, the Government would deposit Le 100,000 in a separate Project Fund to pre-finance the local contribution to the project investment costs. Deposit of the initial Le 100,000 advance would be a condition of effectiveness and the Government would undertake to replenish the Project Fund quarterly with amounts equal to those which had been withdrawn and to use the Project Fund only for project-related expenses (draft Development Credit Agreement, Sections 3.04 and 6.01(c)). Procurement^ 63. All goods and services financed by IDA would be procured in accord- ance with IDA guidelines or procurement procedures satisfactory to IDA. Civil works for the teachers college valued at IJS$1.6 million and equipment and furniture valued at US$0.4 million would be procured through international  - 18 - competitive bidding. Domestic contractors would be given a preference of 7-1/2 percent in the evaluation of bids for civil works. Domestic manufac- turers of furniture and equipment would be allowed a preferential margin of 15 percent of the c.i.f. price of competing imports or the total applicable customs duties and taxes, whichever is lower. Items of furniture and equip- ment which cannot be grouped into packages of at least US$50,000 equivalent, or which are not suitable for international competitive bidding (see para. 64), would be procured in accordance with local competitive bidding procedures which have been examined and are acceptable to IDA. Items below US$15,000 equivalent, for which potential suppliers are limited, would be procured by inviting quotations from at least three suppliers. The total value of items procured by both of these methods would not exceed US$500,000. Goods and services financed by ODA would be procured in accordance with ODA procedures. 64. Civil works valued at US$9.4 million for the primary school pro- gram including the staff houses--all comprising small, widely dispersed buildings--would be procured under local bidding procedures acceptable to IDA. Building materials, including materials provided to small contractors, valued at US$1.0 million and to be purchased in lots of less than US$50,000, and furniture and equipment totalling an estimated US$1.2 million, to be purchased over a four-year period and delivered to the widely dispersed sites would be procured by inviting quotations or through local competitive bidding pro- cedures which have been found to be acceptable to IDA. For all contracts estimated to cost the equivalent of US$200,000 or more for civil works and of US$50,000 or more for goods (resulting in coverage of about 40 percent of the total number of civil works packages and 15 percent of the goods packages respectively, i.e., 90 percent of the total estimated value of civil works and about 60 percent of goods contracts), IDA would review the bidding documents and the bid evaluation reports before the contracts were awarded. 65. The Government has given assurances that the services of interna- tionally recruited staff and consultants would be procured in accordance with IDA's guidelines and would have qualifications, experience, and terms and conditions of service acceptable to IDA. Disbursement 66. The proceeds of the IDA credit would be disbursed to cover expendi- tures as follows: civil works, 90 percent (USS11.0 million); professional fees for civil works, 95 percent (US$0.3 million); furniture, equipment, spare parts, and building materials, 100 percent of foreign and 90 percent of local (US$2.1 million); specialists, 100 percent of expatriate services (US$1.0 million) and 70 percent of local services (US$0.5 million); training, 100 percent (US$0.35 million); and operating costs, 65 percent (US$0.8 million). All incremental recurrent costs would be met by the Government. The disburse- ment profile summarized in the Credit and Project Summary reflects the advanced stage of project preparation, as well as previous experience with education projects in Sierra Leone and the rest of West Africa. All disbursements would be fully documented except those for training workshops conducted in Sierra Leone and for operating costs which would be disbursed against certified statements of expenditure.  - 19 - Financial Implications for Government 67. The project would help the Government improve the allocation of resources available to the sector. While the increase in the percentage of qualified teachers and the provision of textbooks would increase the unit cost of primary education, a planned reduction in the duration of primary school from seven to six years and an increase in the pupil/teacher ratio would generate savings. The net effect of these measures is not expected to increase education expenditures substantially. Audit 68. The Government would have all project accounts--including the Special Account, Project Fund, and records in support of statements of expenditures--audited annually by independeht auditors acceptable to IDA and would submit a copy of each audit report to IDA within six months after the end of each fiscal year. Benefits and Risks 69. Short-term benefits would include (a) greater access to primary school in rural areas through the provision of about 500 new classrooms, and (b) improved quality of instruction in the primary schools through provision of about one million textbooks and 125,000 teachers' guides. Long-term benefits would include qualitative and quantitative development of the primary school system through efforts to: (a) strengthen the educational planning capacity of MOE, (b) develop the evaluation capacity of the Institute of Education, (c) establish a national textbook service, and (d) develop appro- priate school building and furniture designs for use in village self-help school construction. 70. The risks are threefold. First, the primary school construction program may be hampered by the Project IJnit's lack of experience in coordina- tion and supervision of a large number of schools in rural areas and by the limited number of qualified local contractors. These potential problems were addressed in the pilot primary school construction scheme and through increased support for the Project Unit supervisory staff. Second, distribution of such a large number of books poses considerable logistic problems. To minimize these risks, the project would include: (a) consultant services in textbook storage and distribution, as well as training for support staff; and (b) operating funds for transport and distribution of textbooks by private firms. Third, previous efforts to strengthen MOE's Planning Unit under the Second Education Project were of limited success because of difficulties in recruiting and retaining qualified staff. This project would address the problem of staff turnover to some extent by requiring fellowship holders to be appointed to established positions in the Planning Unit before departure for training. Furthermore, as a result of the review of the Planning Unit presently being carried out by the Ministry of Education, the Unit is expected to be able to carry out its responsibility for policy formulation more efficiently. These efforts would be reinforced by proposed assistance being discussed with the Government by the UNDP to deal with the pervasive weaknesses in public admin- istration and the civil service in general.  - 20 - PART V - LEGAL INSTRUMENTS AND AUTHORITY 71. The draft Development Credit Agreement between the Republic of Sierra Leone and IDA as well as the Recommendation of the Committee provided for in Article V, Section 1(d) of the Articles of Agreement are being dis- tributed to the Executive Directors separately. 72. In addition to the features of the Development Credit Agreement which are referred to in the text and listed in Section III of Annex III, additional conditions of Credit effectiveness would be: (a) the making of satisfactory arrangements for obtaining the ODA grant; (b) opening of a Special Account in a local financial institution; and (c) deposit of an initial amount of Le 100,000 in a separate Project Fund. 73. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 74. I recommend that the Executive Directors of the Association approve the proposed credit. A. W. Clausen President Attachments Washington, D.C. April 5, 1983  - 21 - ANNEX I TABLE 3A Page 1 SIERRA LEONE - SOCIAL INDICATORS DATA SHEET SIERRA LEONE REFERENCE GROUPS (WEIGHTED AVEGES AREA (THOUSAND SQ. KM.) - MOST RECENT ESTIMATE)'8 TOTAL 71.7 MOST RECENT LOW INCOME MIDDLE INCOME AGRICULTURAL 39.6 1960 /b 1970 /b ESTIMATE /b AFRICA SOUTH OF SAHARA AFRICA SOUTH OF SAHARA GNP PER CAPITA (US$) .. 160.0 280.0 250.0 1053.2 ENERGY CONSUMPTION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) 29.0 120.3 83.7 66.5 610.1 POPULATION AND VITAL STATISTICS POPULATION, MID-YEAR (THOUSANDS) 2165.0 2692.0 3474.0 URBAN POPULATION (PERCENT OF TOTAL) 13.0 18.1 21.5 17.8 28.3 POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILLIONS) 6.2 STATIONARY POPULATION (MILLIONS) 19.2 YEAk STATIONARY POPULATION IS REACHED 2110 POPULATION DENSITY PER SQ. EM. 30.2 37.5 47.1 27.7 54.7 PER SQ. KM. AGRICULTURAL LAND 93.0 72.9 85.3 86.7 129.9 POPULATION AGE STRUCTURE (PERCENT) 0-14 YRS. 41.7 43.0 44.1 44.8 46.0 15-64 YRS. 55.0 53.8 52.7 52.3 51.1 65 YRS. AND ABOVE 3.3 3.2 3.2 2.9 2.8 POPULATION GROWTH RATE (PERCENT) TOTAL 1.8 2.2 2.6 2.7 2.8 LRBkAN 5.3 5.5 4.3 6.2 5.2 CRUDE BIRTH SATE (PER THOUSAND) 46.9 45.7 45.5 47.3 47.2 CRUDE DEATH RATE (PER THOUSAND) 26.9 22.1 18.4 19.5 15.7 GROSS REPRODUCTION RATE 3.0 3.0 3.0 3.2 3.2 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) USERS (PERCENT OF MARRIED WOMEN) .. .. FOOD AND NUTRITION INDEX OF FOOD PRODUCTION PER CAPITA (1969-71-100) 98.0 99.0 86.0 88.7 90.7 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 81.0 87.4 85.0/c 90.2 93.9 PROTEINS (GRAMS PER DAY) 41.0 43.0 43.9T, 53.1 54.8 OF WHICH ANIMAL AND PULSE 12.7 12.8 15.i7l 18.4 17.0 CHILD (AGES 1-4) MORTALITY RATE 57.4 55.5 49.6 26.7 23.9 HEALTH LIFE EXPECTANCY AT BIRTH (YEARS) 37.2 42.1 47.0 45.6 51.0 INFANT MORTALITY RATE (PER THOUSAND) 233.8 227.6 207.5 129.9 118.5 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. 12.0 .. 23.9 URBAN 75.0 54.9 RURAL .. 1.0 .. 18.5 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. .. .. 25.8 URBAN .. .. .. 63.1 RURAL .. .. .. 20.2 POPULATION PER PHYSICIAN 20424.5 18067.1 .. 32097.3 14185.2 POPULATION PER NURSING PERSON 2955.4/d 3802.3 .. 3264.6 2213.2 POPULATION PER HOSPITAL BED TOTAL 1311.8 1095.2 .. 1225.0 1036.4 URBAN 288.7 361.1 .. 249.5 430.8 RURAL .. .. .. 1712.1 3678.6 ADMISSIONS PER HOSPITAL BED .. .. HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL .. 6.5 URBAN .. 5.7 RURAL .. 6.7 AVERAGE NUMBER OF PERSONS PER ROOM TOTAL .. .. URBAN .. 2.1/e .. RURAL .. .. .. ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL .. .. .. URBAN RURAL 2. 0/d  - 22 - ANNEX I Page 2 TABLE 3A SIERRA LEONE- SOCIAL INDICATORS DATA SHEET SIERRA LEONE REFERENCE GROUPS (WEIGHTED AV RAGES - MOST RECENT ESTIMATE)- MOST RECENT LOW INCOME MIDDLE INCOME 1960 /b 1970 /b ESTIMATE /b AFRICA SOUTH OF SAHARA AFRICA SOUTH OF SAHARA EDUCATION ADJUSTED ENROLLMENT RATIOS PRIMARY: TOTAL 23.0 33.0 37.0/c 63.2 83.3 MALE 30.0 40.0 45.07 72.7 96.1 FEMALE 15.0 26.0 30.07Ec 50.3 80.4 SECONDARY: TOTAL 2.0 9.0 12.0/c 10.2 15.3 MALE 3.0 12.0 16.07T 13.2 19.4 FEMALE 2.0 5.0 8. 07 6.6 11.3 VOCATIONAL ENROL. (X OF SECONDARY) 7.2 1.5 1.6/f 7.9 4.7 PUPIL-TEACHER RATIO PRIMARY 35.7 32.3 32.1/c 47.4 38.6 SECONDARY 16.6 20.4 19.471 26.2 23.4 ADULT LITERACY RATE (PERCENT) 6.7La 15.0/h .. 34.0 35.6 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 2.3 8.7 6.0/i 3.0 31.9 RADIO RECEIVERS PER THOUSAND POPULATION 4.2 14.9 98.7 34.8 71.8 TV RECEIVERS PER THOUSAND POPULATION 0.2/g 1.1 5.9 1.7 17.9 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION 6.9 16.7 3.0 2.9 19.1 CINEMA ANNUAL ATTENDANCE PER CAPITA Q.2/d 0.1 .. 1.1 0.6 LABOR FORCE TOTAL LABOR FORCE (THOUSANDS) 910.7 1055.6 1266.9 FEMALE (PERCENT) 36.6 35.8 34.8 34.1 36.5 AGRICULTURE (PERCENT) 78.0 71.0 65.0 78.4 56.5 INDUSTRY (PERCENT) 12.0 15.0 19.0 9.2 17.7 PARTICIPATION RATE (PERCENT) TOTAL 42.1 39.2 36.5 41.4 37.0 MALE 54.7 51.5 48.4 53.9 46.9 FEMALE 30.0 27.5 25.0 29.1 27.2 ECQNOMIC DEPENDENCY RATIO 1.1 1.2 1.3 1.2 1.3 INCOME DISTRIBUTION PERCENT OF PRIVATE INCOME RECEIVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS .. 26. 6/ HIGHEST 20 PERCENT OF HOUSEHOLDS .. 52.2T* LOWEST 20 PERCENT OF HOUSEHOLDS .. 6.57 .. LOWEST 40 PERCENT OF HOUSEHOLDS .. 15.673 POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN *- ' 105.0 134.3 507.0 RURAL .. .. 75.0 82.9 200.6 ESTIMATED RELArIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. 198.0 96.4 523.9 RURAL .. .. 40.0 60.4 203.6 ESTIMATED POPULATION BELOW ABSOLUTE POVERTY INCOME LEVEL (PERCENT) URBAN .. .. .. 39.3 RURAL .. .. 65.0 69.0 Not available Not applicable. NOTES /a The group averages for each indicator are population-weighted arithmetic means. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Most Recent Estimate, between 1978 and 1980. /c 1977; /d 1962; /e 1967; /f 1975; /g 1963; /h 1973; /i 1976; /f 1968. May, 1982  - 23 - ANNEX I DFNTOSOF SOCIAL ImDICpriS Page 3 Ustst- Algbeogh the dotsor dres free -. soce geerll jdgedthe -ntcuthot.tit-' and reliable. it should alo be totd that they nay to hiner tnm.. touelcsasi d.tbeas ofteteho stndrdodydfiito ad cocet usd by differen c-otrlen e col-lecin the date. The data r, r theens usfultodesrib orer of gitd.indiasta treds, end oh arctrote- certain sojor dirfferecos The tref-rrcs groups ar (i) the sane .rootry group of the subject couty and (2) a cOuntrY grou with somehat big9boo -oorg0 jicos than tlb coun.try grcup ofL the sojctcurr (eaep for "'Hgh Inoe- l DnRP-tcarn" group share 'Middle tacons North Africe and Piddle fut" to hobr- becaus cf etrorger sucia-ultorl affnitie). itthe rferooo ecnp data the evcfsaePoPaIatior weighted -ricftic meson for each Icdicst- and show- nyo ajunIty of the _rutie in- grouP be dat o htIndctr lc h cvRag of corce sn h niaosdped nteaalblt fdt oendotor tatn _ eo th cooen an reernc group.t..Sott dflk (tbousendaq.km.) Popaleti-c car opinaodi. - ltatl re,adtrt-Pplto ttl ToaAM oa atc racwifglu rtadicadwtr;17 aa ra.adrrl iin byd their dp~d -epc h.c on abeltof bueptal d ffaiulerc - stsee f griuiucl re use 1epoecty- or pernatently alothlah Tin. pi-gic ed priat genera anI soIa Ine hsptl ed Talted1 b sane1 canvrsia es-thod- as torri drn Atee(17-go basis); 197 dt.,cdmeia cenesIo orsent tafd oaphecir(utb 1970, td t90 duta medial -s`ns-nt nure midd, fo et.)abob fori -ptien ecoo gtftOf CODOyfPTIO9rtu CaITA - usnat csuptir o ct ns-rcilyoogy (_oaly tic blMirpse urhic hoodtby thciad t -sO p tncplfgroehoetl hopial.c Total Poplatias, nid-Icar thouads) W o o cp1 06,17,ad logod' f0 11 ... PopulatIo it year 200 - .u.... po Plttuc ofu)ociin l are -ose un 1 i-heafPorevs. per ro-toil.l. urbee, an Ore ocuie hoor itoal. neterofor tetititycute do hea trc lvseamigdcto1oftotl Srhuu,icd ruralt dnrtiiigsrespocc yv-ly. d(ULTOchcutyt thDIn 00C5 ignodnoriocthesodoteiduhiocbyos f socalitffobtTdO tiebrhb uei eqa to the1 deathiot. an olnb teaearrtr r.ouloa falco t thepritrylooponporcltgtiof enpc ti saNsPo... tuti. it sahce nyotrfnffpccssciot Acia d schol-ag t uolilus udil Irolhudra cilico in -l oif maso feyiace islf97cbuct. Thef ettlsy ynpoblityiofIc cat. cdntIu with. anius bu..educaton ro Ymeo naY lucot 100 icledoI -. A . the iyaur 21900. n h r.at of drolso f fotutyrtatohplco..cnd. hold f- toital mic. an eml- -Cnptd cabv; eondr meot . local- PP.-i. p.J-i.rdIob,d .190b ceriotr-qir atoo L.s four yours of uprodp-mr1nurcit Ter'ctnr poplaio isd rechd -the you shtin uc tton y -rylaio dyrovtdcsi. l-p-tr-l,ynoutin1 octuLo.cine ntuton rppI Populatfoc Penuigtyth ..Ito. c_lofed.I Per liba. .-Pt .id-yIc pbiltioh par sqeekioeerfl icaeIo vctina erlt'litsr iPcrcect of secoindary) - Vocooonol ittiuloat no tal urea 106 lt.1971 c and .107 dtabl.. 17. -.T.pl-._tocudotecnIcl.i irothrio, or ocher progran whic -peoi indepond- atly; flOhIltlt,1072 ard-th..I..1L l- 1070 deI. Pufi-touch ., d c ai c priary and- aecoodg y - _ tu_l su ut oldi 64 i.s) Ied chte (6. peaceg and ufr as. prineotuge ofmdya prplo- LDCTcures iglves loton f10tli. 107. ad. 1900 da.ta. p-._Adi literac rote1-. (pcec -t irccdlafulcrcdn ie copalaianb Irueh doo.(percnt) id.t -tdoaoud grooc rth i n c.trial d- aaapro-tog of totul&. tdth populcyo oga 15yar.n over. c populotian; 1060, 1070, and 1000 daca. all i~~~~f ch p.p1 .con7 vr piltr. c .. ,b Crde eti- rted (pe ooh. od -.i th ou. eah pr hosndo sdyecSabdoncoo(prtinch.or,t o) l h. yycfk of rcoinrel org ad popolto ;16. 1-2070. and 1900.t o data.bcedcfunf_eouul pbli pe.thono C ofpnpiut occldndn tr tsdpdctera-Aogrubc fdogtotaosn11hori 1_ icord-t. caceiver i coIctrora andc ityrur ohm rPegini_tIu of_ radot herrona erdcIIvs I icd if d s he eoprio h.e present . ag y- p.pi Iti.fr.rnenl fet aafrrcetynnmynthcntrbeic nil orrid asen n nae aod gru.Wcotadino of-"daily gdno io icooiesuprddflr ueproia Pc q. ". .~~~~~~~cjco;t.lll l~~~~obll cntiu denote primrilyco ncnrdI-tg roalnu.Iti orie row cn icnovascue oil i ioproroclentfou cansnok loden at 60 Pod 9roucio po. aia(OO7.d)-Ife fprcpt nul Cnmadue tedcocvCpt per7YacdBonrd o d.tu s -1ber of naioa veae rdoe prce.t - tigh1; 106-h)g.-1)0 cod 1000 dana. Tdotol taboo Perc (ihcuannd) - popoolcill ucio yruon icud pe ay vti bo upio onrs donsti prdnt-, tpeg-lu ecceprol; 00.170cd-00 eo inasohold- Oevol; tonI-, 'd1070 ad 107 dta 106,:d 107 and 1000. data.d .Iti Par apit unply o p-oA go e -m par dey) Phtoi cor ofl beocpIca lantipntao f late (protor -f utd sae andr feal - Purtictiput.ic O ne oppy n foo oIds. ret uppl offod t efne o above.fi go- -cc_ivityrte r -upo at ota, malt, end romalo lpobf forc u qullyn .... fer all -y c...ua..enediohlsh1d6ho 1 970 provide9for ..tenpecbcoeeo ttl, sole IId fea...utrovo il0crrupo i alfoni,ch--of16d grama of otal _prtin_ pee dayi and 21f l grae f inlg an161 1070 an10dt. These rrohon d-u lb uticipaloarten poa prthn ofb shlchg 115gue hol4h4 nia p-ruh V.ithni-t.1Tes stn-rflc a aen tucr o iepouain.odln time reod A cod;ae lse tha tire of7 gnome. oftoa pdeihnd2 gIoiffe stndo rePosicirlorct gord- POf d Plodvp;101-6. 07 and 1077 data, topil the total..lobor forte.c Pe cnt o1ocdin oupol from. andimalno pole pt-frtot supply efg foodc dde-l-i. riedfrm nnl sd. p aise -IAgrat; pro9ay;16-65 1 070y c~od1) d ata. ..uOf 0iOTOIOOTtIOO)-E11d-l Ili ol .d I-b"Pid (aaea 1- 1 doI'la,irtppteen)-Ouuadeh e honr oPrel of Private CIcceer (bo th in as ad id - _ooivdhyrchs e_ Reo - yo.1 to chidrnt thpp is age. group. for mea developn en percen.g cPicheac 20.1 yrrre pores .21p.rIoc and.. porc Iti- pcrc tresdu d deriond.bl f-rslife ."tables, 1060, p0) d cr0 p108 d Io. .o hea -bolds. 6~ 90.. 90 oft agepe thoutad liv birhs 106. 07 undph."lg' 100dis bett ovryincom f level Is the income 19c0l hobo whic a98 d.tim knesto bef rotor froncono pr)ntd ttl ubn ndrri Om-etutoel adevowie- diet plus. oteiniol e-odrqirmrsO her of. psotl (intil. frun P.and.. rual w11ithresoUbc- scree -te af Ifedahl-ie. yq,,td p- g.o 1Ib - harnecha. te fld e' pe9t0rtd 1e977sa dtpeirge. and- saitr P elu asi, lniq,." reatv poet dtn. et sortir faeaepncpt deso her ft spendh dtspRepottauhepar o thei- dayt in fTchig thed peer".lt ,.. .t i-t... dem t garrote Doa-sl (ecfw tf neculdtie)-t tonPAl, iten and rurald -f.o.i.-. 5.d6 . eate ,p f, psope (-ptli co-e andrrl)nre byti earely dfn foodldan enid (.a.te-sate byt wUter-her systems -r th ass at pith prii sa....d sInt .R. c.. I~ ..., - Pehid..iun dhivide hr. go.,e fof prectiepggbysi- gresasirand-tetelSaranin:uto ecisma dsnt.i- d frees leiefi enhbl.. at60 not9ri0 tene98 t.. fosoihOsa... ed rohclcdeprten H oEALTiH i9e ena Peow-VEplaiowdiiddAyGnstr fTessisRa Mp 00 Lifs End tgamete i d A"g godst.ses.ennrs an., .l ocefuifsenu end h -I..&l c p.iI - - fP IyI-. seeniagtunottacies  - 24 - AN1JEX I SIIRRA LEONE Page 4 ECONOMIC INDICATORS GROSS NATIONAL PRODUCT IN 1980181 ANNUAL RATE OF GROWTH (%, 1972/73 constant prices) 1968/69- 1970/71- 1978/79 1979/80- US$ Mln. % 1970/71 1977/78 1979/80 1980/81 GNP at Market Prices 1262.4 100.0 7.4 0.9 3.7 0.5 Gross Domestic Investment 147.9 11.7 1.1 -1.2 23.7 -21.5 Gross National Saving 14.7 - 1.2 - -6.8 - - Current Account Balance 176.4 14.0 - - - - Exports of Goods, NFS 266.6 21.1 -2.0 -2.0 - - Imports of Gcods, NFS 473.0 37.5 1.5 -0.6 - - OUTPUT, LABOR FORCE AND PRODUCTIVITY IN 1980/81 1 Value Added Labor Force V.A. Per Worker US$ Mln. % Mln. % US $ _ Agricultuire 344.2 30.9 .839 65.0 410.2 47.5 Industry, Mining, 223.9 20.1 .219 17.0 1022.3 118.4 Construction Services 546.9 .9.1 .206 16.0 2654.8 307.5 Unallocated - - .026 2.0 GDP Factor Cost 1113.8 100.0 1.290 100.0 863.4 100.0 GDP Market Price 1232.4 GOVERNMENT FINANCE Central Government (Le Mln.) % GDP (Market P.) 1980/81 1980/81 1978/79- ___ ________ _____ 1980/81 Current Receipts 228.3 17.1 17.0 Curreut Expenditure 246.3 18.4 17.8 Current Surplus -18.0 - 1.3 -0.8 Central Expenditure 72.5 5.4 5.3 Extra budgetary Expenditures 53.5 4.7 5.7 Overall Deficit -154.0 -11.5 -11.8 External Financing 32.4 2.4 4.0 MONEY, CREDIT and PRICES 1975 1976 1977 1978 1979 1980 1981 1982-/ (Million Le outstanding end period) Money and Quasi Money 3/ 91.6 111.9 136.2 179.3 214.5 260.8 267.6 324.5 Bank credit to Public Sector-' 56.7 107.3 119.7 182.4 252.5 333.3 463.9 539.8 Bank Credit to Private Sector 41.1 43.7 46.8 64.9 71.0 90.4 99.3 98.5 (Percentages or Index Numbers) Money and Quasi Money as Z of 16.0 18.2 18.3 22.0 23.0 21.0 18.4 20.7 GDP (m.p.) General Price Index (1975 = 100.0 117.2 130.8 140.8 170.7 189.6 233.8 - 100) 4/ Annual percentage changes in: General Price Index 19.9 17.2 8.3 10.9 21.2 11.1 23.3 21.2 Bank credit to Public Sector 146.5 89.2 11.6 52.4 38.4 32.0 39.2 16.4 Bank credit to Private Sector 3.5 6.3 7.1 38.6 9.4 28.0 9.2 -0.8 NOTE: All conversions to dollars in this table are at the average exchange rate prevailing during the period covered. 1/ Estimate of total labor force; unemplcyed are allocated to sector of their normal occupation. 2/ June 19R2 3/ Credit from the Banking System. 4/ Consumer Frince Index (Freetown). .not available .not applicable November 30, 1982  - 25 -ANEXI Page 5 SIERRA LEONE TRADE PAYMENTS AND CAPITAL FLOWS BALANCE OF PAYMENTS MERCHANDISE EXPORTS (US $ Million) 4/ 1973-75 1977/7t- 1978/79 1979180 1980/81 1981/8217 1980/817 (Millions US $) Average Z Average Z Exports of Goods (FOB) 184.2 198.6 206.4 149.2 Minerals 99.1 74.1 107.6 67.1 Imports of Goods (FOB) -251.7 -338.7 -373.1 -282.9 Diamonds 80.4 60.1 91.0 56.8 Trade Gap (deficit -) - 67.7 -140.2 -166.7 -128.7 Iron Ore 14.3 10.7 - - NFS (Net) - 20.4 - 16.6 - 19.4 - 16.6 Rutile 8.2 5.1 Interest Payments (Net) Bauxite 4.4 3.3 8.4 5.2 Workers' Remittances 1 Agr'l. Commod. 24.8 18.5 47.4 29.5 Other Factor Payments -l cet)- 46.1 - 62.3 - 41.4 - 44.1 Coffee 7.8 5.8 23.0 14.4 Net Transfers 19.7 32.8 51.1 30.6 Cocoa 8.2 6.1 20.4 12.7 - - ~~~~~~~~~Palm kernels & 8.8 6.6 2.3 1.4 Balance on Current Account -120.1 -186.4 -176.4 -158.8 Prod. Direct Foreign Investment 24.1 16.1 - 18.1 17.1 All other Commod- 9.9 7.4 5.9 3.7 Net MLT Borrowing 32.5 14.0 57.7 19.5 ities _____ Disbursements 42.9 31.8 71.7 43.0 Total 133.8 100.0 160.3 100.0 Amortization - 10.4 - 17.8 - 13.9 - 23.6 Subtotal 56.6 30.1 39.7 35.8 Capital Grants EXTERNAL DEBT. April 30, 1982 US $ Mln Other Capital (Net) 28.8 74.7 78.8 70.9 Other Items n.e.i. 2! 15.8 41.6 23.4 31.5 Public Debt, incl. guaranteed 495.3 Increase in Reserves (+) - 11.2 - 33.6 - 6.5 - 15.3 Non-Guaranteed Private Debt - Gross Reserves 3/ 34.5 46.7 30.6 14.6 Total outstanding & Disbursed 388.3 Net Reserves -/ DEBT SERVICE RATIO FOR 1980 -/ X Public Debt. incl guaranteed 29.6 Fuel and Related Materials Non-Guaranteed Private Debt - Imports Total outstanding & Disbursed 29.6 of which: Petroleum 51.4 55.0 80.4 - Exports IBRD/IDA LENDING (Sept. 30 1982)(Million US of which: Petroleum IBRD IDA RATE OF EXCHLANGE Outstanding & Disbursed 18.7 69.3 Through - 1971 US $/Leone Period Average Undisbursed 0.0 29.8 US $ 1.00 =8297 L 1978/79 = .950275 Outstanding incl. Undis- 18.7 99.0 Le 1.00 ;US S1.2053 1979/80 = .952850 bursed Le 1.00 U $1.2053 1980/81 - .921050 1981/82 - .832325 1/ Including Government n.e.i. and other services 2/ Includes Trust Fund Loan, Allocation of SDRs and errors and omissions 3/ End of starting year 4?/ Preliminary 37 Domestic Exnort 6/ Ratio of Debt Service to Exports of Goods and Non-Factor Services. Excludes debt servicing of arrears ($16.3 million in principal and $4.9 million in interest). ..not available .not applicable Nlovember 1982  - 26 - ANNEX II Page 1 THE STATUS OF BANK GROUP OPERATIONS IN SIERRA LEONE A. STATEMENT OF BANK LOANS AND IDA CREDITS (as of February 28, 1983) Loan or US$ million Credit Amount (less cancellations) Number Year Borrower Purpose Bank IDA 1/ Undisbursed Five Loans and Five Credits Fully Disbursed. 18.7 24.0 573 1975 Sierra Leone Education II - 7.3 0.37 970 1980 Sierra Leone Technical Assistance - 2.5 1.18 1094 1981 Sierra Leone Eastern Agric. - 9.9 2/ 6.25 2/ 1128 1981 Sierra Leone Northern Agric. - 7.5 2/ 6.35 2/ 1129 1982 Sierra Leone Highways II - 8.8 2/ 7.45 2/ 1265 1982 Sierra Leone Power Sector Engr. and T.A. - 4.9 3.46 Total 18.7 64.9 25.06 of which has been repaid 7.1 0.2 Total now outstanding 11.6 64.7 Amount sold 0.5 of which has been repaid 0.5 0.0 Total now held by Bank and IDA 11.6 64.7 Total undisbursed 0 25.06 25.06 1/ Net of Exchange Adjustments. 2/ Computed at exchange rate of 2/28/83.  - 27 - ANNEX II Page 2 B. STATEMENT OF IFC INVESTMENTS (as of February 28, 1983) (in US$ million Fiscal Year Obligator Type of Business Loan Equity Total 1980 Sierra Cement Cement and Construc- 2.1 - 2.1 Manufacturing tion materials Company, Ltd. (SERACEM) Total Undisbursed 0.0 0.0 C. PROJECTS IN EXECUTION (Status as of February 28, 1983) I/ Credit No. 573-SL Second Education Project: US$7.25 million Credit of July 29, 1975; Effective Date: September 8, 1975; Closing Date: December 31, 1982 The project was closed December 31, 1982, 18 months after the original planned closing date. Disbursements will continue until about June 30, 1983. Construction, furnishing and equipping of the project institutions are completed. Most project institutions are in operation. The EEC Special Action Credit has been fully disbursed and 92 percent of the IDA Credit was disbursed by February 28, 1983. A completion mission is scheduled for August-September, 1983. Credit No. 970-SL Technical Assistance Project: US$2.5 million Credit of February 8, 1980; Effective Date: June 30, 1980; Closing Date: December 31, 1983. The project aims at strengthening the Government's capability in development planning, the preparation of development projects, the training of local staff, and the monitoring and evaluation of public investment programs. It includes: (a) 10 man-years of advisers; (b) 75 man-months of consultants; (c) training in development plaanning and project preparation; and (d) project preparation and prefeasibility studies. Project implementation has been under way since the appointment of planning advisors in four ministries during the second half of 1981. Progress towards institutional and training objectives 1/ These notes are designed to inform the Executive Directors regarding the progress of projects in execution, and in particular to report any problems which are being encountered and the action being taken to remedy them. They should be read in this sense, and with the understanding that they do not purport to present a balanced evaluation of strengths and weaknesses in project execution.  - 28 - ANNEX II Page 3 of the project has been slow due to national staff constraints and coordi- nation problems. Studies on the organization of the agricultural sector services, rural banking and seed multiplication have been completed and are under review by the Government and IDA. Credit No. 1094-SL Eastern Integrated Agricultural Development Project III: US$12.0 million Credit of February 13, 1981; Effective date: September 16, 1981; Closing Date: September 30, 1986. Project management and agricultural aspects of the project are progressing reasonably well. However, future success is threatened by failure of Government to provide all its required financial contribution. Integration of the project unit and regular Ministry of Agriculture administration is also behind schedule. Recent Government measures to raise producer prices for export crops should help the project. Credit No. 1128-SL Northern Integrated Agricultural Development Project II: US$8.5 million Credit of May 13, 1981; Effective Date: October 15, 1981; Closing Date: June 30, 1987. This project suffers from the same Government funding problem as the Eastern one. Otherwise all components are proceeding well. Credit No. 1129-SL Second Highway Project: US$10.0 million Credit of October 29, 1981; Effective Date: February 3, 1982; Closing Date: December 31, 1984. Two aspects of project implementation have improved: the Government replenished the Special Account with a deposit of Le 600,000 in December 1982; and the Ministry of Works has now turned over 90 percent of the equipment which it agreed to the project. However, the budget problem may well reappear in the future due to the Government's financial difficulties. Project imple- mentation continues to be slow due primarily to the shortage of Government funds, delays in the handover of MOW equipment to the project, and the slow procurement of African Development Fund-financed equipment and spare parts. The Credit Agreement will eventually need to be modified to take into account the Government's reduced equipment contribution, and the final work program. Credit No. 1265-SL Power Sector Engineering and Technical Assistance Project: US$5.0 million Credit of July 8, 1982; Effective Date: December 3, 1982; Closing Date: June 30, 1985 The project became effective in December, 1982. Procurement has begun. The National Power Authority, which is executing the project, has severe financial problems which will be addressed during project implemen- tation.  - 29 - AINEX III Page 1 SIERRA LEONE THIRD EDUCATION PROJECT SUPPLEMENTARY PROJECT DATA Section I: Timetable of Key Events (a) time taken to prepare project: 16 months (b) agency which prepared project: Government with UINESCO assistance (c) date of first IDA mission to consider the project: March 1980 (d) date of appraisal mission: January/February 1982 (e) date of completion of negotiations: February 14, 1983 (f) planned date of effectiveness: July 15, 1983 Section II: Special IDA Implementation Action Deposit Advance of US$250,000 from Credit proceeds in Special Account. Section III: Special Conditions (a) Government to submit by December 31, 1983, for review and comment by IDA, plan to reduce duration of primary school from seven to six years and to increase pupil/teacher ratio from 35:1 to 45:1, and prepare a progress report on execution and review the conclusions with IDA by December 31, 1985 (para. 41); (b) Sites for primary school and staff housing construction program to be selected and submitted to IDA for approval by December 31, 1983 (para. 47); (c) Government to see that land is available to construct project facilities and furnish evidence satisfactory to IDA that land rights are available for teachers' college prior to invitations to bid (paras. 47 and 49); (d) Textbook task force to be established and advisory committee appointed by August 31, 1983 (para. 52); (e) Government to submit to IDA for review and comment by June 30, 1985 study and appropriate documentation on proposed textbook service, and establish service by June 30, 1986 (para. 53);  - 30 - ANNEX III Page 2 (f) Government to submit by August 31 of each year, for review and approval by IDA, program and cost estimates for workshop program (para. 54); (g) Government to submit to IDA by August 31 each year detailed plans for and report on use of inspectorate staff travel funds (para. 54); (h) Government to furnish to IDA by December 31, 1983, for review and comment, plan to strengthen Planning Unit and start implementation not later than July 1, 1985 (para. 55); (i) Fellowships to be awarded to staff in established positions in the Planning Unit (para. 55); (j) Fellowships to be awarded to suitably qualified persons to participate in training programs satisfactory to IDA (para. 55). (k) Conclusions and recommendations of teacher training, textbook use, and textbook impact studies to be submitted before December 31, 1986 to IDA for review and comment (para. 56); (1) Government to make adequate provision in its recurrent budget to cover incremental costs of the project and ensure adequate staffing of project institutions (para. 61); (m) Government to: (i) open Special Account for advances from IDA (condition of effectiveness); and (ii) deposit Le 100,000 into a separate Project Fund (condition of effectiveness) and replenish it on a quarterly basis (para. 62); and (n) Government to make satisfactory arrangements to obtain the ODA grant (condition of effectiveness, para. 72).  I BRD 16404R 7 lu 2