Haiti - Fourth Education and Training Project

Document of The World Bank FOR OFFICIAL USE ONLY Repoit No.5395-HA HAITI FOURTH EDUCATION AND TRAINING PROJECT STAFF APPRAISAL REPORT April 12, 1985 Projects Department Latin America and the Caribbean Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their officijd duties. Its contents mzy not otherwise be disclosed wvithout World Bank autborization.  a EQWAES Currency Unit = Gourde (G) US$0.20 = G 1 US$1 = G 5 The gourde has since 1919 beeu pegged to the US dollar at the rate G of 5 = US$1. REICRTS AND MEASURES Metric System km = kilometer (1 km = 0.62 miles) m = meter (1 m = 3.28 feet) m2 = 10.76 ft2 FISCAL YEAR October 1 - September 30 ACADEMC YEAR October 1 - June 1 ABBREVIATIONS ADM ACRONYS CIDA - Canadian International Development Agency IDB - Inter-American Develoment Bank INAGHEI - National Institute for Management Administration and Higher International Studies INFP - National Institute for Vocational Training IPN - National Pedagogical Institute MEN - Ministry of Education MEnSoc - Ministry of Social Affairs and Labor PIU - Projet Implementation Unit PPF - Project Preparation Facility UNDP - United Nations Development Programme USAID - United States AgerLcy for International Development  FOR OMCIAL USE ONLY HAITI FOURTH EDUCATION AND TRAINING PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. BASIC DATA ......................................._. i CREDIT AND PROJECT SUMMARY ..................................... ii I. THE SECTOR . ............................... I Issues ....... ......... ......... I Government Strategy ................................,., 3 IDA's Role e... ........ ...... ........ 5 Public Administration ....................... 6 II. THE PROJECT . ......... . .................... 6 Project Objectives and Description .... . . 6 Detailed Features of Project Components 7............O ... 7 Implenent the Basic Education Reform . ..................... 7 Introduce Vocational/Technical Training Reform 8 Strengthen Sector Management . .9 Improve Public Administration Training 10 Project Execution ..10 Project Costs, Financing and Disbursements 11 Procurement .................*. .12 Benefits ..... 1-3 Risks , ..... 13 III. AGREEMENTS REACHED AND RECOMHENDATIONS ........................ 15 ANNEXES 1. Comparative Education Indicators ..16 2. Evolution of Enrollments in the Public and Private Sector ..... 18 3. The Vocational/Technical Training System . . 19 4. Status of the Basic Education Reform .. 23 5. Government Expenditure on Education, Recurrent and Development 35 Budget Forecasts and Actual, 1976/77-1984/85.. 6. Detailed Project Description ........................... 36 This report is based on the findings of the appraisal mission that visited Haiti in February and March 1984. The appraisal mission consisted of Ms. J. de Regt (Sociologist, mission leader) and Messrs. K. Bahr (Economist), R. Sack (Educational Planner, Consultant), S. Syrimis (Vocational/Technical Educator, Unesco) and E. Vergara (Architect, consultant). A post-appraisal mission consisting of the same people visited Haiti in Septepber 1984. Thi documnct has a Istonsterddistnm utionoandmays be used byreous ony in theperfonae of toir ofr=W duties. Itscontent may not otoenwis be discsed without World Bank autorization  Table of Contents (Continued) Page No. 7. Project Management and Implementation ....................... 47 8. Project Costs and Financing ................................. 53 9. Disbursements ...** .........*.......***...*.......**.. .... 59 10. Procurement, Accounts and Auditing ................... ...... 61 11. Benefits and Risks ... ... *..**..... .... 66 12. Documents Contained in the Project File ........... .......... 70 CHARTS 1. Old and New Education Systems................................. 72 2. Ministry of Education: Organizational Structure .............. 73 3. Project Unit Organization Chart .............................. 74 4. Implementation Schedule...... ................................ 75 MAP  - i - HAITI FOURTH EDUCATION AND TRAINING PROJECT BASIC DATA (1981/82) ENROLLNENTS Prim. School Age Pop. Enrollment Rates (6-12 yr.) Enrollments Gross Z Net Z Primary Education: 916,100 658,102 71.8 47.0 Urban 281,200 305,630 108.7 76.5 public : 134,909 private : 170,721 Rural. 634,900 352,472 55.5 34.0 public : 147,457 private : 205,015 Secondary Education: total : 95,600, of which 65Z is enrolled in lower three grades. public 15,868 private : 79,732 TEACHING FORCE Student/Teacher Ratio Primary Level: 14,922 44.1 Urban 7,686 39.7 public 3,272 41.2 private : 4,414 38.6 Rural : 7,236 48.7 public : 2,215 66.6 private : 5,021 40.8 Secondary Level: 4,239 22.6 public 807 19.7 private 3,432 23.2 EDUCATION FINANCE (US$ million) Public Recurrent Expenditures: 17.2 Investment Expenditures: 13.9 Subtetal: 31.1 GDP : 1,626.6 Public Education Expenditures as Z of GDP : 1.9 LITERACY RATE (1980): 23%  - ii - HAITI FOURTH EDUCATION AND TRAINING PROJECT Credit and Project Summary Borrower: Repr lic of Haiti. Beneficiaries: Th- aistries of Education, and the Presidency. Amount: SDR 10.4 million (US$10.0 million equivalent). Terms: Standard IDA terms. Co-Financing: Swiss Government, SwF 15 million grant (about US$6 million equivalent). Project Descrip.: The credit would help finance the Government's education reform program (grades 1-10), by continuing with basic education reform, initiating a reform of the vocational/technical training system and strengthening the education sector management. In addition, a public administration inservice training program would be started. Risks: Private sector participation is essentiL- for achieving full coverage of the reform; Government contributions for recurrent and investment budgets may not be forthcoming in a timely fashion or sufficient amounts; sustained investments are needed in the sector to ensure implementation of full reform and realize benefits from the investment under this and previous projects. These risks would be minimized through provision of incentives to and improvement of coordination with the private sector; inclusion of all recurrent and investment expenditures in the project to alert the Goveriment; and through semi-annual budget reviews and a dialogue on medium term requirements.  - iii - Estimated Costs: * Local Foreign Total -US$ million Basic Education 8.1 3.4 11.5 Experimentation Vocational/ 1.1 1.7 2.8 Technical Education Education Sector Management 0.8 1.3 2.1 Public Administration 0.8 0.9 1.7 Project Preparation 1.5 0.7 2.2 and Administration Baseline Costs 12.3 8.0 20.4 Physical Conitingencies 0.2 0.4 0.6 Price Contingencies 0.6 0.7 1.3 Total 13.2 9.1 22.3 Financing Plan: Local Foreign Total -SS million - Government 5.4 0.9 6.3 IDA 4.3 5.7 10.0 Switzerland 3.5 2.5 6.0 13.2 9.1 22.3 Estimated Disburse'ments: -US million FY86 FY87 FY88 FY89 FY90 Annual 2.3 2.3 2.4 2.0 1.0 Cumulative 2.3 4.6 7.0 9.0 10.0 Rate of Return: n.a. No. IBRD 18650R * Differences due to rounding. No taxes are included.  CHAPTER I. THE SECTOR Background 1.01 Haiti's one abundant resource, human resources, is ill-developed. The majority of the population lives in absolute poverty and adult literacy is around 23%, one of the lowest in the world. The most promising source of future growth for the Haitian economy, at least in the short term, is industrial exports. This requires not only basic education but an appropriate level of vocational training. Even for the medium term, only a better trained workforce can modernize and increase agricultural producrion. Recognizing these needs, the Government has formulated a program for the comprehensive revitalization of the whole education system, both in organizational and pedagogical terms. Issues 1.02 General education in Haiti had a late start. Traditionally, education had been largely an ecclesiastical function, directed to developing urban elite. French pedagogical values and methods still dominate the education system and are particularly visible at the secondary level. In fact, the language used for instruction is French, although the major.lty of people (80%) speak Creole. During the 1920s, under the influence of the United States, a considerable number of schools for peasants were developed and later integrated into the public primary education system. In more recent years, the principal benchmark in educational development has been the establishment of the University of Haiti (1944); the submission of most educational activities to the supervision of the Ministry of Education (1978); aud the commencement of the Educational Reform (1982). Public education at all levels has never been free in Haiti: the parents pay tuition, and for textbooks and obligatory uniforms. However, they have to pay between 50% to 90% more per student for private education than for public schools. In number of graduates and classrooms, the private sector continues to play a very important role, accounting for 522 of primary and 792 of secondary enrollments. It is faced with problems of quality and efficiency similar to if not more serious than those encountered by the public sector. 1.03 At present and during most of the current decade,(since the introduction of the education reform will be a gradual process), the formal school system will continue to comprise six years of primary and seven years of secondary schooling leading to the baccalaureat certificate. Tertiary education is offered at the State University which has several faculties and specialized institutions and the Higher Teacher raining College. In 1981, of the total number of persons receiving some type of education, 85% was in primary schools, 11% in secondary and 4% in higher education. This situation has remained unchanged for the past 10 years. 1.04 Access and Enrollments. While Haiti nearly doubled enrollments at all levels over the past 10 years, mostly through expansion in the private sector (Annex 2), in 1983/8' only 53% of the primary school age population was able to attend school. It is estimated that at least 9,700 additional classrooms are required to accommodate every child that should be enrolled,  - 2 - and 8,400 need to be located in rural areas. In addition, socioeconomic factors such as reliance on child labor and cost of education to families prevent enrollments from increasing rapidly. In urban areas these constraints are not as pressing and the Government could achieve adequate coverage by introducing double shifts. 1.05 Low Quality. Quality constraints affect all public and private rural schools. Private urban schools fare better; private rural schools (the majority of all primary schools) are the worst. Public expenditure is low (US$30 per student compared to US$50-80 per student in Latin America) and 95% is for teacher salaries. Yet this translates into salaries so low that the education system fails to recruit or retain fully qualified teachers (81% of the teachers have less than eight years of schooling). Parents are expected to provide textbooks for their children; because many cannot afford to do so, only one out of every four rural children attending school has access to a textbook. Finally, the curriculum is ill-adapted and is taught in French, a language which only 20% of the Haitian people speak. 1.06 Low Efficiency. The coustraints in access and quality impair educational efficiency. Only 52Z of the urban children who enroll, and 34% of the rural children, complete grade 4. Repetition rates are also high, hovering around 25Z. The consequence of this low efficiency is wastage of scarce resources. On average, it takes 20 studentyears to produce one grade 6 graduate in rural areas (15 studentyears in urban areas). However, urban private schools are nearly rhree times as efficient, producing one grade 6 graduate after seven studentyears; rural private schools are the least efficient. 1.07 Public Versus Private Sector. Due to the large role the private sector plays in education, the Government has difficulty promoting nationwide educational reforms and assuring standardization and quality in the curriculum. At the primary level, the private sector provides 70% of all schools and 47% of all student places. The Government is finding it increasingly difficult to provide funds to cover luvestment and recurrent costs for the expansion of the public education system; the issue is to strengthen Government's jurisdiction over private schools so that it can assure the overall quality of education without affecting the incentive of the private sector to increase their involvement. 1.08 Vocational/Technical Education. There are nine lower secondary and four upper secondary vocational centers in Haiti operated by the M;inistry of Education (MEN), with an annual output of 398 students. In addition, the Hinistry of Social Affairs (MinSoc) operates six training centers, offering inservice training programs; around 560 people participated in 1983/84. Vocational and technical education suffers from a serious lack of coordination and standardization of training programs and relevance to the industrial and informal sectors. 1.09 The National Instftute for Vocational Training (INFP), responsible for coordination and quality of these programs, has no jurisdiction over the schools and therefore, negligible influence. While the inservice training for instructors and the on-the-job training for workers provided by INFP have been satisfactory, tra4.nirg programs of lower and upper secondary centers under MEN and MinSoc have been long and academic, lacking hands-on experience  in well-equipped workshops. Unit costs are high, efficiency is low, and quality of graduates unsatisfactory. For more information, see Annex 3. Governmenc Strategy 1.10 Education Reform. To deal with these issues in primary and vocational/technical education, the Government introduced a comprehensive reform of the education sector .n 1982 that calls for a gradual restructuring of the entire s'stem and improving quality, thereby making it more efficient. The reform started wlth grade 1 in 1982 and in 1983/84, 40 percent of the grade 1 children in public and private Fchools were being taught by reform methods. During the first phase (1982-85), a new structure of a 3 cycle system for basic education (4-3-3 years, 10 years in total) was introduced to achieve minimum literacy in 4 years. To promote quick assimilation, Creole was adopted as language of instruction in the first cycle (grades 1-4) instead of French. New and practical curricula were developed, were tested and are beinig used for grades 1, 2 and 3, and are now being tested for grades 4, 5 and 6. Textbooks and teaching aids in Creole were prepared, tested, and printed. Through teacher training programs, teachers were trained to change the method of instruction from one requiriug passive memorization to one which encourages active student involvement. Automatic promotion was introduced between certain grades to increase efficiency. The student learning environment was upgraded through adequate provision of furniture, teaching aids and textbooks. A Teacher Charter was promulgated to establish a professional accreditation system, appropriate salary levels and career prospects. Finally, the inspector corps was reorganized to assist teachers with pedagogical support and evaluation. For more iLformation, see Annex 4. 1.11 During t4Ae second phase of the reform (1985-88) the follo-wing objectives would be sought for basic education: (a) to continue introducing the new structure and programs in grades 4-6, aud testing new curricula for grades 5-9 and providing new textbooks, teaching aids, teacher training, pedagogical support, and evaluation programs; (b) to strengthen the working conditions of inspectors by providing them with transportation and office equipment; and (c) to continue implementing the Teacher Charter including increasing salaries and providing upgrading programs for underqualified teachers. In addition, the Government will (a) strengthen two major sector institutions: the Ministry of Edlization (MEN), and the National Pedagogical Institute (IPN); (b) clarify t;e roles of MEN, IPN, and the Basic Education Reform Committee established by MEN in 1984; and (c) incorporate the private sector in the ongoing reform. The Government must also make decisions on the following major issues: (a) in which grade to introduce French as the major language of instruction; (b) how much to increase the family share of educational cost; (c) when and how to include overage children who represent 50% of the school population. 1.12 The Government has recently reorganized MEN, changing its persounel and payroll procedures, and introducing an organizational structure more relevant to the reform such as the creation of a department to coordinate private/public sector education. Moreover, it promulgated a decree on IPN's role and organization, which clarifies the respective roles of IPN and the Reform Committee. The Reform Committee Is responsible for monitoring the progress of reform implementation and IPN's Monitoring Unit for monitoring  and evaluating achievement in the classrooms. Finally, in order to monitor the implementation carefully, the Government would (a) review the progress achieved in carrying out the reform under the Basic Education Reform Law and Vocational/Technical Training Law, and make adiustments required in the reform implementation plan satisfactory to IDA before the beginning of each school year; (b) discuss with IDA all measures to be undertaken in the private sector for the implementation of the reform; and (c) conduct the first countrywide examination for grade 7 in June 1987 to firmly establish the new standard for primary education. 1.13 Vocational/Technical Training. As part of the general reform of the education sector, the Government has decided to introduce new curricula more adapted to the labor demands of Haitian economy at the semiskilled, skilled worker, and technician levels and to reduce unit costs by introduciug a new structure which should improve the efficiency of the system. It has also decided to strengthen the management and the role of INFP. Thus a law on vocational/technical training was promulgated defining INFP's responsibilities, which include full iurisdiction over the subsector, and the roles and function of other institutions. Under the same law, the INFP's council would be reinstated to promote regular contacts with employees of informal and industrial sectors, and to make training relevant to their needs. The existing system of trainilg was restructured introducing vocational training centers to replace inefficient lower secondary vocational schools, and technical centers to replace upper secondary vocational schools. In the vocational centers, two types of programs would be offered: (a) a three year, formal training program for youths with seven years of basic education with direct access to the labor market after each year and a possibility of following special general education courses to enable reintegration into the academic third cycle; and (b) nonformal training courses for youths and adults at all levels. In the technical centers, formal education would be offered to those who had 10 years of basic education, and inservice training would be provided for technicians already in the labor market. Production methodologies and entrepreneurial aspects have been incorporated and contacts made with local organizations such as the Haitian Industrial Development Fund to organize a credit system for course graduates. Finally, the Government is expected to identify ways for the private sector to gradually improve and expand their contributior to vocational training. 1.14 Government Allocations. Despite its commitment to the reform, Government allocations for the education sector have oscillated around 14-15 percent of the Government budget during the past 9 years (Annex 5). In 1981/82, the share of GDP going to education represented only 1.9 percent. Both indicators are low compared with other countries having comparable income levels. The recent effort to finance the Teacher Charter is commendable, but it is doubtful that the Government can continue to fund the total incremental salaries in the present economic crisis without assistance from aid agencies. The actions taken under the reform should increase quality and efficiency, thereby reducing wastage of resources; MEN's decision to arrest the growth of the public primary education system in order to finance the Teacher Charter is an example. The Government agreed during negotiations upon the amount of funds it would provide to satisfy the recurrent expenditure requirements of the project, and a timetable for their payments. However, MEN also needs to carry out an indepth analysis of its budget allocation practices and the process of selecting priorities. It  -5 - needs to formulate a long term action plan to reduce expenditures in areas of lesser priority. During the second phase of reform, with the assistance of IDA, MEN intends to take these steps (para. 1.11). Moreover, as indicated above (para. 1.13), MEN will examine ways to increase private sector contributions, especially in the vocational/technical field. IDA will review this process during supervision and sector missions in FY86, in order to arrive at an acceptable proposal by October 1986. IDA's Role 1.15 Together with the other major donors and UN agencies, IDA has assisted the Government prepare and implement the general education reform for almost a decade. Thus under the first project (Cr. 618-HA, US$5.5 million appraised in 1976 and closed in December 1981), IDA helped to improve teacher training and to draft an Organic Law to reorganize MEN in addition to improving access for the urban and rural primary schools. I The project suffered about a year's delay due to lack of timely release of counterpart fundco and difficulties in constructing widely dispersed rural schools. Under the second project (Cr. 770-HA, US$10 million, approved in F v 1978 and closed Ln December 1984) (a) Creole was selected as the language of instruction for primary education; (b) urban and rural primary school systems, which were under the jurisdiction of two different ministries: ME.N and the Ministry of Agriculture, were integrated and placed under MEN; (c) the Organic Law of MEN was promulgated; and (d) the Teacher Charter was drafted. In fact the project established the basis of the current reform (i.e. curriculum development, teacher accreditation, production of new textbooks). The project also succeeded in improving access, although it took time to complete the construction component, especially that of the vocational/technical schools because of late release of counterpart funds (approximately a one year delay). The third project (Cr. 1305-HA, US$9 million, approved in November 1982) continues to support the education reform by financing curriculum development, teacher training, and pedagogical support and evaluation. Project implementation is one year behind schedule. The Government took longer than expected to take a major decision on the educational reform and the slow release of counterpart funds prevented the construction component from starting. Recently, the Government, with the agreement of IDA, has decided to stop the expansion of public basic education system in favor of the quality improvement. Therefore, the construction component is expected to be reduced in scope. Mcauwhile, the Government is providing all required counterpart funds satisfactorily. 1.16 In addition to the country's serious fiscal situation, the major reasons for the delay in provision of Goverument contributions are (a) the Government's inability to properly plan for development and recurrent budgets and (b) cumbersome procedures for disbursing the funds, both available and budgeted. During negotiations, the Government gave assurances that it will annually review with IDA (a) the budeet requirements and proposals (March) and the adequacy of development funds provided for the education sector (September); and (b) the adequacy of the recurrent funds provided for carrying out the project (September). 1.17 The Government's present program of reform is sound. Since 1978, when it embarked on the long term process to improve the quality and access to education, it has made major strides. The Canadian and French 1/ Audit Report No. 4605 of June 30, 1983.  -6- Governments, and UN agencies have all coutributed to this effort. However, IDA has been the major donor in this 20 year endeavor, and is expected to continue playing that role over the medium term. By December 31, 1986, the Government would discuss with IDA the 1987-91 Education Sector Investment Plan to ensure the availability of financing for the coutinuation of the educational reform. Public Administration 1.18 The weakness of the central administration has been identified as a major constraint to improving allocation and use of the country's resources. In 1982, the Government passed a series of laws to (a) establish uniform regulations for civil service, and salaries and pensions for civil servants; (b) provide career development and job security; and (c) eliminate the practice of public servants holding multiple positions. A National Commission for Public Administration and Civil Service was established under the Presidency to supervise the implementation. Part of this reform has begun to be introduced in the Ministries of Health and Education (para. 1.10), with the help of USAID and IDA, respectively. The Canadian Government provided assistance to strengthen the National Institute for Management Administration and Higher International Studies. For inservice training, the Government created a Public Administration Center under the National Commission to amalgamate existing institutes operated by individual ministries ard coordinate all inservice public administration training. 1.19 The civil service reform is a formidable undertaking and will take years to complete. Under a Technical Assistarce Project under preparation, IDA is expected to review the status of the reform and assist the Government in devising a practical program of action which would enable the continuation of the reform. Meanwhile, the proposed education project would provide urgently required support for the Public Administration Center and finance inservice training in financial management and accounting. CHAPTER II. THE PROJECT 2.01 Appraisal of the project took place in March 1984 and, due to a reduction in scope dictated by a reduction in the availability of IDA funds, a post-appraisal mission reviewed the project in September 1984. These missions were preceded by an identification/sector mission in October 1983 arnd a preparation mission in December 1983. Negotiations were held in Washington, DC from March 20 to March 25, 1985, and the Haitian delegation was led by Mr. Gerard Dorcely, Minister of Education. Project Objectives and Description 2.02 The proposed project would support (a) the second phase of the education reform, including vocational/technical training and (b) training in public administration by providing financing for: (i) MEN's incremental salary bill for basic education staff: inspectors, teachers, and directors of schools (a total of some 8,400 persons) and salaries for 55 staff of IPN, and INFP (US$5.6 million);  - 7 - (ii) equipment and furniture for the IPN, INFP, Public Administration Center, and 200 primary schools, and vehicles for inspectors, M(EN, and the Project Implementation Unit (PIU) (USS3.3 million); (iii) civil works for the rehabilitation of vocational/technical schools, and INFP, and construction of the fourth floor of the National Institute for Management Administration (INAGHEI) to house the Public Administration Center (US$1.1 million); (iv) 1,015,000 textbooks (US$2.8 million); (v) technical assistance and consultancies-314 months of foreign experts and 340 months of local experts for all institutions involved in the project (US$3.4 million); (vi) fellowships-213 months of study abroad for the staff of IPN, technical schools, INFP, the Public Administration Center, MEN (US$0.3 million); (vii) training programs for teachers, directors and inspectors (US$2.2 million); (viii) project administration (US$1.2 million); and (ix) operational costs-maintenance of vehicles, gasoline, office supplies, and per diem for the staff of IPN, and INFP on mission to rural areas (US$2.3 million). Detailed Features of Project Components A. Implement the Basic Education Reform 2.03 Improvement of Working Conditions. To improve the working conditions of inspectors and teachers enabling them to work efficiently, and to reduce staff turnover, 120 inspectors and 16 regional pedagogical centers would be provided with office equipment, materials, vehicles, mules and funds to cover their operational costs and maintenance. Under the Teacher Charter, all teachers, directors and inspectors for basic education, (about 8,400) have received or will receive over the next four years a salary increase in comparison with the 1983/84 situation. Given the pivotal role of teachers, directors and inspectors in the reform, and the present economic crisis which prevents large increases in MEN's recurrent budget, IDA would finance the incremental costs of the increasing salary bill for MEN (due to wage Increases, improved qualifications and hiring of teacher training college graduates) on a decreasing scale. The Government provided assurances that it would finance 60% of the incremental salary bill in 1985/86, 75% in 1986/87, 80% in 1987/88 and 84% in 1988/89. The Government would submit a statement at the end of each quarter, stating the number of staff in each category. Disbursements would be made for the numbers presented, or those in Annex 6, Table 1 and 2, whichever is lower. 2.04 Qualitative Improvements. Curricula would be developed for grades 5-9, and already tested curricula would be introduced in grades 4-6. The project would finance local and international technical assistance. Because  -8- objectives and detailed curricula for grades 5-7 and 8-10 are not yet known, the Government agreed to review with IDA detailed objectives by cycle and grade annually (as they are developed). 2.05 Free educational materials would be provided for all teachers and students in public and private schools in the experimental phase (grades 4-9). About 700,000 text- and workbooks, and about 1C5,000 teacher guides would be produced and distributed during project implementation. After the experimentation phase, the project would distribute 30,000 sets of teacher guides, text- and workbooks to teachers in public and private sector reform classrooms, and about 180,000 sets of textbooks (at a ratio of one boo' per four students) for classroom use by poor children. In addition, the project would finance technical assistance, staff salaries, equipment and furniture for IPN's Didactic Materials Unit. The Government provided assurances that all materials would be marked free- and would not be resold. 2.06 During project implementation, about 13,000 teachers for grades 1-10 and 1,200 directors from both the public and the private sector would be trained. Teachers would receive inservice training in the new curricula and teaching methodologies. Those completing a sequence of training courses would earn a teacher training college equivalency certificate, resulting in a higher salary -under the Teacher Charter. Directors worl d receive four weeks of training in teaching methodology and in supervisory/management skills. Courses would be given by qualified inspectors at regional centers. IPN would supervise and provide inservice training for the inspectors. All courses exist and are adjusted each summer based on the results of previous experience. The project would finance staff salaries for IPN's training unit and all training costs for public and rural private schools. 2.07 The monitoring and evaluation unit of IPN is responsible for (a) evaluation of the experimental program and (b) pedagogical evaluation of internal and external factors influencing student achievement. These studies were started under Cr. 1305-HA and are technically sound. The project would finance all costs of the unit, and provide it with technical assistance and a training program. The project would also provide furniture and equipment for the equivalent of about 210 classrooms in the South East and Central Departments. B. Introduce Vocational/Technical Training Reform 2.08 To provide education and training opportunities for an increased number of children, youths and adults, the project would assist the Government to carry out the reform in five vocational training centers, one to be remodelled and equipped under the project. If after two years of project implementation the new structure and the curriculum are considered satisfactory, then the new curriculum would be adopted by two additional vocational centers which would be remodelled and equipped by the project. To address the need for a limited number of well-trained technicians in the industrial sector, the project would also assist the Government in improving the quality of education provided in the four technical training centers, each offering different specializations. The project would finance the remodelling and equipping of workshops, technical assistance for curriculum development, and scholarships for instructor upgrading.  - 9 - 2.09 In principle, all training ceuters could operate in two shifts. The first shift would be for the formal pz-grams, while tht second shift would provide a variety of courses open to all interested individuals, regardless of age and educational background adapted to the needs of their working environments. MinSoc already offers such programs. Illiterate youths and adults would have to follow a literacy course conducted by the National Literacy and Community Action Office at the request of and in collaboration with each center's personnel. As a first experiment, MinSoc would offer afternoon adult training programs in the Carrefour Center. C. Strengthen Sector Management 2.10 The project would strengthen MEN, IPN and INFP. To improve MEN's information system, the project would finance the purchase of a computer to facilitate the compilation of a data base which integrates data on personnel files, schoolmapping, payroll and training programs. MEN would also carry out studies on its own policies, concerning (a) factors affecting teacher motivation and turnover; (b) recurrent budget allocation practices, including ways of reallocating expenditures of either MEN or parents to make free or subsidized books more generally available; and (c) integration of overage children in reform programs. To address the problems of inadequate classrooms, school furniture and equipment, maintenance and repair, and planning for school construction, the project would provide technical assistance to MEN for organizing a School Cow.truction Directorate, and for carrying out a schoolmapping study and studies on construction norms and community participation in school maintenance. Data from the schoolmapping study would provide the basis for an inventory of public schools and their physical status, and for a proposal or. the extent to which double shifts can be introduced in public schools. During negotiations, the Government agreed to a schedule of execution for the studies, organization of the School Construc;tion Directorate and the presentation of proposals for timetables for implementing double shifts in public schools. The project would finance IPN's three staff positions in training program management, personnel management, planning and programming, and a position for a statistician with computer skills. 2.11 The project would remodel and equip some of INFP's facilities, and provide INFP with technical assistance for management and organization, and with fellowships to improve staff quality. Key administrative staff would receive training in administration, recordkeeping, storage of supplies, etc. A systematic program to determine training requirements and to carry out job analysis would be set up. Supervision of training centers would be improved through upgrading courses for 40 inspectors, center directors anid chief instructors, and by establishing a systematic supervision methooology. Experimentation with new curricula for the vocational and technical training centers would take place and INFP would train 240 instructors. In addition, the project would assist INFP in carrying out the following pilot activities and studies which could lead to regular programs: (a) a program for training small entrepreneurs (b) a study on training needs of women in the labor force, and (c) an audiovisual program to encourage the female population to actively participate in vocational training programs (which were only recently opened to them). In order to keepsthe trained instructors, the Government provided assurances that the salary scale for the vocational/ technical subsector staff would be revised by October 1985, and would be put  - 10 - into effect in accordance with a timetable satisfactory with IDA. D. Improve Public Administration Training 2.12 The project would assist in establishing an inservice training center for public administration and improving the accountants' inservice training pro ram. The project would finance the construction of this center (about 600 mZ) as the top floor of a new building of the National Institute for Management Administration being constructed with CIDA financing. This new building would also house a library for both iustitutions. The project would also finance equipment for the center, including books, audiovisual equipmert and materials for the library. In addition, the project would finance consultant services to determine training needs, to teach and to train key staff, as well as fellowships for key staff. The center would provide training courses of three to four months duration for middle and higher level staff, mostly in managerial and financial areas. 2.13 To upgrade the quality of accounting in the public administration, the project would finance international technical assistance for the accountant diploma courses at the National Institute for Management Administration. The experts would provide instruction in those aspects for which no Haitian experts are available at present, namely use of computers in accounting, auditing and accounting theory. Project Execution 2.14 Responsibility for project administration would rest with the existing PIU, which has successfully implemented Cr. 618-HA, Cr. 770-HA and is carrying out Cr. 1305-HA (Annex 7). It has recently been reorganized and staffed in a manner satisfactory to IDA. Under Cr. 1305-HA, the PIU is directly responsible for implementation of the construction program; upon completion of that project, it is expected that those functions and staff would be transferred to the School Construction Directorate. This would facilitate the development of a PIU which would be responsible for coordinating and monitoring of programs to be carried out by existing units in different ministries. To improve coordination among these ministries, MEN would organize meetings of the Consultative Council formed by the Ministers of Education, the Presidency, and of Planning and Finance. The PIU's plan of action would be based on available Government funds and the annual work programs which each agency would submit before July 15. This new procedure would assist the Government in increasing efficiency and accountability of its agencies. As a condition of effectiveness, the Government would form the Council. The working arrangements between the Council and the PIU have been agreed upon during negotiations. The PIU would be responsible for preparing periodic progress reports on the quantitative and qualitative aspects of the project. Reports would be sent on a semiannual basis to IDA, the Council and all implementing agencies. 1 2.15 The project would finance staff and operational costs of the PIU from July 1986 to July 1989. Before that date all costs, including the cost of new staff, would be financed under Cr. 1305-HA. In addition, funds would be made available to employ consultants (12 staffmonths) to assist in monitoring and supervision. The costs of auditing the accounts of the project unit and implementing agencies have also been included.  - 11 - 2.16 Through use of a project preparation facility (PPF), project preparation is at an advanced state. Master furniture and equipment lists were approved during appraisal for all components. Remodelling of technical training schools would start in August 1985, for which all final designs are under preparation. Preliminary designs and tender documents have been prepared and bids have been invited for the Public Administration Training Center in order to conform to the construction schedule established by the Government and CIDA for the National Institute of Management Administration. Evaluation of the bids would take place in March and construction would start about July 1985. Project implementation is expected to be completed in about five years. The main investments, however, would be made during the three school years, 1985/86 to 1987/88. The project completion date would be March 31, 1990, and the closing date, September 30, 1990. Project Costs, Financing and Disbursements 2.17 The total cost of the project is estimated at about US$22.3 million, net of taxes (Annex 8). These costs include the additional operational expenditures to be financed by the ministries involved in the project. The costs also include a PPF of USS500,000 approved in December 1983 and a second tranche of US$420,000 approved in December 1984. The total foreign exchange component is estimated at about US$9.1 million, or about 41 percent of total project costs, net of taxes. The proposed IDA credit of SDR 10.4 million (US$10 million equivalent) on standard terms would finance about 62 percent of the foreign costs and 45 percent of total costs. On the basis of the co-financing agreement between IDA and the Swiss Government of October 30, 1984, the Swiss Government's contribution of SwF 15 million would finance 27 percent of total costs. The Swiss Government is financing a share (58%) of the software aspects of the project (technical assistance, training courses, professional fees, studies, fellowships, textbooks, workbooks, teacher guides, staff salaries, and operational costs). As a condition of effectiveness the Government would be requested to furnish satisfactory evidence that the Financial Cooperation Agreement with the Swiss Government had been duly signed and ratified, and that all conditions precedent to effectiveness of said agreement had been fulfilled. Expenditures incurred prior to the signature of the Development Credit Agreement and after October 1, 1984 for the construction of the Public Administration Center, not exceeding US$O.1 million, are proposed for retroactive financing. 2.18 Cost estimates are expressed in March 1985 prices based on March 1984 prices and actual costs obtained under Credits 770-HA and 1305-HA. The price contingencies (US$1.3 million) have been calculated based on the following assumptions: (a) annual increases in local costs would be 8 percent, with the exception of services which would increase by 2 percent annually; (b) annual increases of foreign costs would be five percent in 1985, 7.5 percent in 1986, and 8 percent thereafter, with the exception of technical assistance which is assumed to increase by 0 percent in 1985 and 1986, 2 percent in 1987 and 3 percent in 1988. These predictions for technical assistance are based on the observation that there is fierce competition in the field at the moment. The physical contingencies (US$0.6 million) have been estimated at 5 percent for construction, furniture, equipment, vehicles and materials; 2 percent for technical assistance, the project unit, salaries, and training programs; 1 percent for equipment operation and maintenance; and 0 percent for local staff salaries.  - 12 - 2.19 The proposed credit and the joint co-financing from the Swiss Government, are expected to be disbursed pari passu over a period of five years (Annex 9). Experience with other projects has shown that budgetary constraints and procedures limit the capacity of the Government to prefinance expenditures to be reimbursed under IDA, and that the PIU sends many applications for small amounts to maintain its cash flow. To alleviate these problems, and to accelerate disbursements, IDA and the Swiss Government would establish revolving funds (Special accounts) of US$0.45 and US$0.3 million, respectively. Simultaneously, the Government would establish a revolving fund of US$0.1 million for investment expenditures by opening a Project Account in the same bank. IDA would commence recovery of the initial deposit when the undisbursed credit amount plus any commit-ments to commercial banks has reached the level of US$0.9 million. The Special Account and Project Account shall be subject to specific audit each fiscal year in accordance with appropriate auditing principles consistently applied by independent auditors acceptable to IDA. Establishment of the Project Account and deposit of the Governmet's initial contribution to the Project Account would be conditions of effectiveness. 2.20 The Swiss contribution would be disbursed for only one category (see (c) below), at a fixed ratio of IDA to Swiss Government of 42.58 percent. The proposed credit and the Swiss Government contribution would be disbursed as follows: Ca) civil works at 35 per cent of total expenditures (US$3C0,000); Cb) furniture and equipment at 100 per cent for foreign expenditures and 85 per cent for local expenditures (US$2,000,000); c) technical assistance, professional fees, studies, fellowships, consultancies, staff salaries, training courses, textbooks and operational costs at 100 percent (US$3,650,000 and US$5,700,000, respectively); (d) Teacher Charter costs at declining rates of 40 per cent, 25 per cent, 20 per cent and 16 per cent during year one to four of the project (US$500,000); (e) project preparation facility (US$920,000); (f) initial deposit for IDA Special Account (USS450,000); (g) initial deposit for Swiss Special Account (US$300,000); and (h) unallocated funds (US$2,180,000). Procurement 2.21 The procurement arrangements (Annex 10) are the following: contricts for civil works for the Public Administration Center (US$200,000) would be on the basis of LCB; for remodelling of 7 existing  - 13 - vocational/technical training centers (ranging from US$10,000 to US$91,000) on the basis of negotiations with local qualified contractors or subcontractors with PIU supervision. Contracts for furniture for primary schools (total US$400,000) would be awarded on the basis of ICB; furniture for remodelled vocational/technical schools would be procured by local shopping. Contracts for equipment and vehicles (total USS2.4 million) would be grouped, when possible, in attractive packages and would be awarded on the basis of ICB when exceeding US$50,000. Local shopping would be used for textbook procurement. Mules would be procured through direct contracting. Consultants would be employed in accordance with IDA guidelines. MH.scellaneous items, not to exceed US$350,000, in aggregate would be procured on the basis of 3 price quotations. Prior IDA review would be required for contracts over US$100,000. In the case of ICB, domestic manufacturers would be allowed a preferential margin equal to the prevailing tariff or 15 per cent of the CIF quotation of the competing supplier, whichever is lower. Table 1 shows the procurement arrangements. Benefits 2.22 The project would help implement the education reform in basic and vocational/technical education, improve education sector manageneut, and provide opportunities for training in public administration (Annex 11). This would result in improvements in (a) the number of students entering basic education, (b) the efficiency, i.e., the number of years of investment needed to produce grade 4 and grade 7 graduates, (c) the quality of education at the basic, vocational and technical levels, and the chance for school leavers to acquire meaningful skills and employment, (d) the quality of the workpool in the labor market, and (e) the quality of Government employees' skills, especially in the areas of finance and management. Risks 2.23 There are several risks associated with the project: (a) the private sector may be reluctant to participate in the reform; (b) Government contributions for both the investment and recurrent Budget may not be forthcoming in a timely fashion and in sufficient amounts; and (c) the Government may not sustain the required expenditures (investment and recurrent) over the medium and long term to ensure full implementation of the education reform. By strengthening the management of the key institutions involved in the education sector, by clarifying their jurisdiction over the private schools, by demonstrating the benefits of the reform through results achieved in the public sector, and by providing incentives for the private sector to adopt the reform program (i.e. books and teacher training programs) the Government would try to bring an increasing number of private schools under the reform. The risk of shortfalls in funds for investment and recurrent expenditures during the project implementation period has been minimized by C::) facilitating Government's budgetary procedures through inclusion of all investment and recurrent expenditure requirements in project costs and (b) establishing semi-biennial reviews of the budget. The sector's medium and long term financing requirements would be discussed through intensive sectoral dialogue with the Government as well as the other donors. IDA would assist the Government in making sure that these requirements will be reflected in the fourth Five Year National Investment Plan (1987-91) and in uribilizing additional resources from other donors.  - 14 - HAITI FOURTH EDUCATION AND TRAINING PROJECT Table 1: Methods of Procurement by ProjectCategory-and Estimated Percentages of Total Costs to be Financed by IDA'and the Government of Switzerland Procurement Method (US$ million) Project Category ICB LCB Other NA Total Costs Civil Works 0.19 0.95 1.14 (38%) (38%) Equipment/Vehicles 1.68 0.54 2.42 (99%) (85%) Furniture 0.43 0.27 0.70 (99%) (85%) Vehicles 0.60 0.60 (99%) Textbooks 2.83 2.83 (1OOZ) Technical Assistance, Fellowships, Studies 3.80 3.80 (100%) (100%) Project Unit 1.18 1.18 (100%) Training Courses 2.03 2.03 (100%) Local Travel and 0.42 0.42 Subsistence (100%) Staff Salaries 5.61 5.61 (24%) Equipment Operation, Maintenance 0.82 0.82 (61%) Consumable Materials, Office Supplies 0.24 1.14 1.38 (29%) (292) Total 2.31 0.19 8.63 11.20 2.33  - 15 - CHAPTER III. AGREEMENTS REACHED AND RECOMMENDATIONS 3.01 During negotiations the Government provided assurances that: (a) each annual reform implementation plan would be reviewed and analyzed in August, and adjustments agreed upon by IDA before October 1, (para. 1.12); (b) the education sector budget would be reviewed with IDA twice annually: proposals in March, and the adequacy of allocations in September (para. 1.16); (c) the adequacy of recurrent funds for carrying out the project would be reviewed annually (para. 1.16); (d) the 1987/91 Education Sector Investment Plan would discuss with IDA by December 31, 1986 (para. 1.17); (e) the financing for MEN's incremental salary bill would be provided in increasing percentages (para. 2.03); (f) it would mark all educational materials financed under thib project free' and would ensure that they would not be resold (para. 2.05); (g) the new salary scale for vocational/technical subsector staff would be presented by October 1985 and adopted in accordance with a timetable satisfactory to the Association (para. 2.11); (h) the agreed implementation program would be adhered to (para. 2.10 and Annex 7); and (h) the PIU, Special Account, Project Account and implementing agencies would be audited annually by qualified auditors (para. 2.19). Subject to the above conditions, the proposed project is recommended for a credit of SDR 10.4 million to be provided to the Republic of Haiti on standard IDA terms. 3.02 As conditions of effectiveness, the Government would be requested to: (a) form the Consultative Council (para. 2.14); (b) furnish evidence that the Swiss Contribution Agreement has been duly signed and ratified, and all conditions of effectiveness have been fulfilled (para. 2.17); and (c) establish Project Account and deposit US$100,000 in the Project Account (para. 2.19). Subject to the above conditions, the proposed project is recommended for a credit of SDR 10.4 million to the Republic of Haiti on standard IDA terms.  fI