Turkey - National Education Development Project

Document c; The World Bank FOR OFFICIAL USE ONLY Report No. P-5228-TU MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN OF US$90.2 MILLION TO THE REPUBLIC OF TURKEY FOR A NATIONAL EDUCATION DEVELOPMENT PROJECT APRIL 3. 1990 hes document has a restricted distibution and may be used by reipents oly in the performance of thdir offcial dutie Its contents may not therwise be disclosed without World Dank autorization.  Currency Equivalents Turkish Lira (TL) 1,000 - US$ 0.43 US1.00 - TL 2,300 (November 1989) Principal Acronyms Used ERC Education Resource Center ERDC Education Research and Development Center FRTVC Film, Radio and Television Center GNP Gross National Product IGB International Competitive Bidding NEDP National Education Development Project MIS Management Information System MOE Ministry of Education TDP Trade Development Progr-aw Y6K Council of Higher Education Turkey - Fiscal Year January 1 - December 31  FOR OMCIAL USE ONLY RUPUBDLC or 2URKnY NAu0NAL EDUCATIOW DUmLOPMNNT PROJECT Loan and Project Summar Borrower: Republic of Turkey Beneficiary: Ministry of Education Council of Higher Education Amomt: US$90.2 million Terms: Seventeen years, including a five-year grace period, at the Bank's standard variable interest rate Financing Plan: IBRD US$ 90.2 million Government of Turkey US$ 87.0 million TOTAL US$177.2 million Economic Rate of Return: Not Applicable Staff Appraisal Report: Report No. 8328-TU Nap: IBRD No. 22035 This document has a restricted distribution and may be used by recipients only in th: terformance of their official duties. Its contents may not otherwise be disclosed without Worle Bank a tthorization.  MEMORA2NDUM AND RECO)U(ENDATION OF THtE PRESIDENT OF THE INTERNATIONAL BANK FOR RBECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF TUVRKY FOR A NATIONAL EDUCATION DEmVLOPMENT PROJECT 1. The following memorandum and recommendation on a proposed loan to toe Republic of Turkey for US$90.2 million equivalent is submitted for approval. The proposed loan would be for 17 years, including a five-year grace period, at the Bank's standard varieble interest rate, and would help finance a National Education Development Project. 2. Bakgrond. Turkey's economic performance during the early to mid- 1980s compared favorably with that of other middle income countries. The country moved toward a market-based, outwardly oriented economy, inflation was contained, the exports' share of gross national product (GNP) was tripled, and international creditworthiness improved. However, since 1986, the economy has been undergoing strain, with a sharp drop in the GNP growth rate, increasing public sector budget deficits, ad a disturbingly high rate of inflation. The aovernment has been addressing these problems through various steps which incluie, inter alia, measures to rejuvenate the private sector by irtroducing new technology into manufacturing and commerce, develop small scale industries for increased exports, and increase productivity of the labor force. 3. Technological innovation and development has in the past been limited by the relatively low level of education among the work force. With a 56X enrollment of the middle school age-group in 1987 and a 681 pass/completion rate less than 38X of today's work force entrants have as much as an eightl: grade education. Further, with a 331 enrollment of the secondary school age- group and a 71X pass completion rate, less than 231 of the current labor market entrants have completeJ secondary education, and only about 8X of the respective age-group are going or. for higher education. While the overall enrollment ratios compare favorably with those of other middle income countries, there has been concern about the quality of education and the level of resources allocated to the sector. During the '80s, the education sector accounted, on average, for about 131 of the Government's budget. 4. Full realization of the country's long-term economic development goals will depend in great measure on a well-educated, highly trained human resource base with the knowledge, skills, and abilities, at all occupational levels, to undertake the management functions required in the development process. This implies the need for a highly diversified work force ranging from semi- skilled to the highest levels of professional expertise. The basic and common element which extends throughout all these levels of manpower preparation is the need for a solid foundation in general education, i.e., social, -Aumeracy, and literacy skills; critical thinking, analytical, and problem solving abilities; capacity for creative and productive application of information; and an understanding of the environment and its impact on society. Thus, a  - 2 - sound school system, with a strong, high quality general education core, and with equal access to both boys and girls, is fundamental to Turkey's overall dr,velopment process. 5. Based on the above rationale, the Government has iniriated a broad education development program to raise the level of student learning and achievement and, through such a program, the overall level of education in the country. The program would focus on improving the quality of education, increasing access to educational opportunity, and strengthening management of the system. While the Government's education development program would be relatively comprehensive in nature, covering all aspects of education, including school construction, expansion of vocational education, education for students with learning disabilities, etc., the proposed project would focus on the quality enhancement and management aspects of the program. Specifically, the project would assist the Ministry of Education (MOE) in strengthening the overall framework for planning and decision making at both the local and national levels as well as modernizing and improving curricula, textbooks, instructional materials, classroom teaching skills (through development of an in-service training capability), and management and administrative skills and practices. It would also assist the Council of Higher Education (YoK) in up-grading its university programs and capabilities for the preparation of primary and secondary school teachers and other education support personnel. The project would be a vital part of the Governmenc's first phase of its long-term sectoral development program. 6. Rationale for Bank Involvement. The Bank's previous support to Turkey's education sector focused primarily on qualitative improvement and expansion of vocational/technical education and manpower training. This was due mainly to the Government's high priority of providing trained manpower support to the productive sector and its previous reluctance to borrow for general education. While Bank supported projects in vocational/technical education have been generally successful, they have been intentionally limited in scope. Continued dialogue with the Government has revealed the need for education support of a much broader nature, resulting in the Bank's 1986 Education Sector Survey Report which made a wide range of recommendations for sector reform and improvement. The Government's own evaluation of the system confirms the Report's major conclusions and presents a plan for reform based on its recommendations. The proposed project covers an important segment of the Government's sectoral development plan, and its scope and content are consistent with the country's development potential and implementation capacity. The Bank can make a substantial contribution through thl- operation by helping to formulate the Government's sectoral development strategy and assisting in tackling serious sectoral issues and problems. 7. Prolect Objectives. The proposed project objectives are: (a) to improve the quality of primary and secondary education for increasing student achievement; (b) to improve the quality and relevance of teacher education; and (c) to improve management and administrative skills and practices in the Ministry of Education. 8. Prolect Description. The proposed project supports the Government's efforts to improve student learning and achievement throughout the country by  -3- focusing on the following policy and operational measures for acnieving the stated objectives: a. Qualitv of PriMar n ad SecondarA Education would be improved by establishing a framevork for reviewing, up-grading, and up-dating curricula, instructional materials, and evaluation procedures on a continuing basis; following through on the first stages of revising and u;-dating national curricula and textbooks: strengthening capabilities for instructional materials design and development; improving the system for textbook and materials distribution; and strengthening the NOE's testing and evaluation capabilities; b. Ogality and Relevance of Teacher Education would be improved by revising and up-grading pre-service teacher training curricula, textbooks, and instructional materials in the university Faculties of Education; up-grading both teaching and research staff of the Faculties; establishing a system for assessing development needs of in-service teachers and other educational personnel; and folloving through with appropriate training programs; c. Effectiveaess of Nanaement and Administration in the Ministry of Education would be improved by establishing a rechanism for strengthening internal communications within the MOE; initiating an MOE management assessment and development program; consolidating administrative units for increased management efficiencies; expanding and improving the MOE management information system (MIS); moving selected aspects of basic planning and decision making to the provincial education directorates; providing training for school administrators; strengthening the MOE National Center for Research and Development in Vo-Tech Education; and up-grading key staff of the MOE Inspectorate. 9. Prolect Costs and Financi. The total cost of the proposed project, to be implemented over a seven-year period, is estimated at US$177.2 million equivalent, with a foreign exchange component of US$90.2 million (51X). The Bank would finance the foreign exchange component of the project. A breakdown of the costs and financing plan is shown in Schedule A. Amounts and methods of procurement and disbursement are included in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Turkey are provided in Schedules C and D, respectively. A Staff Appraisal Report No. 8328-TU of January 10, 1990 is being distributed separately. 10. Actions Agreed. During negotiations, the Government provided assurances that: (i) the policy adopted by NOE requiring teachers to participate in a two-week intensive refresher course at least every five-years would be formally implemented under the project; (ii) the Board of Education's initial curriculum policy review and recommendations would be completed no later than September 1, 1990; (iii) the MOE would make an assessment of the selected curriculum laboratory schools' and computer experimental schools' facilities and that local funds would be provided to renovate and furnish the respective  schools in accordance with recommendations for meeting mutually agreed classroom standards; (iv) the studies on upgrading physical quality of textbooks and implementing a textbook rental and/or used book re-sale scheme, along with the project education studies would te completed by June 30, 1992. or other date as warranted by circumstances; (v) no less than three qualified specialists in tests and measurements would be recruited by September 1, 1991 to serve in the testing and evaluation division of the Education Research an! Development Center; (vi) the Primary and Secondary Teacher Education Stee:ing Committees would be formally established by September 1, 1990; (vii) the project accounts would be audited annually; and (viii) a plan for annual assessment of implementation progress and for a final evaluation of the project would be developed by the NOE and YoK project coordination units and reviewed with the Bank no later than December 31, 1990. It was agreed that there would be an annual Government-Bank review of project implementation vith a view to agreeing on resource requiremenis and other actions necessary for the subsequent year to achieve the project objectives. It was also agreed that establishment of the Y6k project coordinating unit and formal appointment of the required four project implementation specialists would be a condition of disbursement for the Y6k project component. 11. Benefits. The proposed project would be the first step in establishing appropriate standards of quality in the education sector to raise the level of humar. resources as required ' r achievement of its national development objectives. It would be a m&jor undertaking in institution building and for promoting quality edtucation to enable the country to compete in the World Market. And finally, it would improve and strengthen education services, i.e., extend the school year by about 14X, extend basic educatior from 5 to 8 years, require primiry teachers to be trained at the university level, promote teacher participation in refresher and up-date t aining, and implement measures to improve ccat effectiveness in the ee cation system, including a shift of textbook printing to the private sectc and the gradual delegation of more planning and decision making authority the provincial levels. 12. Risks. There is the risk of budget allocations not keeping pace with the proposed new emphasis on high quality education. However, the education sector has received an increase in total budget allocations during each of the past three years, the Treasury has indicated that this is a high priority investment project for the Government, and the recurrent costs of the proposed operation are relatively low, so this risk is considered to be minimal. There is a risk that political pressures may make it difficult to take appropriate measures for bringing about operational and financial efficiencies in the sector, i.e., declaring teaching positions in some schools redundant where appropriate, re-deployment of teachers and administrators from areas of excess personnel to locations/schools where shortages exist, etc. However, present procedures already recognize the need to provide special incentives to educational personnel to induce them to work in less attractive areas of the country, and hence the risk of political pressure is considered minimal.  -5- 13. Rec _ tions. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve the proposed loan. Barber B. Conable President Attachments Washington, D.C. April 3, 1990  13. Reomndations. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommand that the Executive Directors approve the proposed loan. Barber B. Conable President Attacbments Washington, D.C. April 3, 1990  -6 INPMIUC o R MI0M EDUCAT pRBBM BflZC ISTIATED COSTS AND FIACNG Pn atiLated Costs A/ Local Foreign Total - US$ million------ Improving the Quality of Education 26.7 30.3 57.0 Improving the Quality of Teacher Education 38.8 25.0 63.8 Improving Management Skills and Practices 1.5 14.5 16.0 Base Cost 67.0 69.8 136.8 Physical Contingencies 6.7 7.0 13.7 Price Contingencies 13.3 13.4 26.7 Total Project Costs 87.0 90.2 177.2 a/ Inclusive of taxes and duties which are negligible Finanling P1la: Local Foreign Total ------ US$ million- IBRD 0.0 90.2 90.2 Government 87.0 0.0 87.0 Total 87.0 90.2 177.2  Schedule-B REPUBLIC OF TURUUY NATIONAL EDUCATION DEVELOPMNT PROTRECT PROCUREMNT METHOD AND DISBURSBEMNS Project Element Procurement Method Total ICB Other Cost . .T S$ million----- Construction and Furniture 0.0 67.4 67.4 (0.0) (0.0) (0.0) Equipment 58.1 6.5 64.6 (56.1) (2.0) (58.1) Materials 4.4 6.5 10.9 (3.5) (2.0) (5.5) Technical Asst. 0.0 27.6 27.6 (0.0) (26.6) (26.6) Training and Development 0.0 6.7 6.7 Support (0.0) (0.0) (0.0) Total Cost 62.5 114.7 177.2 Bank Financing (60.1) (30.1) (90.2) Note: Figures in parentheses are the respective amounts to be financed by the Bank. 'Other" procurement methods include borrower's own procedures for the portion of the project financed from its own resources ($74.1 million), procurement under prudent shopping procedures acceptable to the Bank ($13.0 million), and the procurement of consultant services, etc. under the Bank's Guidelines for the use of consltants ($27.6 million). Disbursements Category Amount X (US$ million) Civil works . Equipment 58.1 100X of foreign and 80X of local expenditures Materials 5.5 100X of foreign and 80X of local expenditures Technical Assistance 26.6 100X of total expenditures Estimated IBRD Disbursements IBRD FY 91 92 22 94 95 96 29 -------------------- US$ million -------------------- Annual 4.6 24.8 28.0 21.6 9.4 1.2 0.7 Cumulative 4.6 29.4 57.4 79.0 88.4 89.5 90.2  Schedule C EUUBLIZC 0F ITMUEY TIO2U ENDUCATION D m LOPNRNT PI&JECT Timetable of Rev Processing Events (a) Time taken to prepare: 13 months (b) Prepared by: Government with Bank Assistance (c) First IBRD Mission: February, 1988 (d) Appraisal Mission Departure October, 1989 (e) Negotiations March, 1990 (f) Planned Date of Effectiveness July, 1990 (g) List of relevant PCRs and PPARs: First Education Project (Ln. 748-TU, PPAR No. 4018)  9 g _ Schedule D Page 1 of 2 STATUS OF SAK GROUP OPERATIONS IN TURXEY A. STATEMENT OF SNK LOANS AND IDA CREOITS (AS of SeptWer 30, 1969) bmet (millon) lb Loan Fiscal _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No. Year lorrwer Purpose SI" IDA UdMISsed Sixty seven loans, six S-loans 4074.04 196.15 and fourteen credits fully disbursed. 1742-TU 1979 Republie of Turkey Grain Storge 79.00 15.63 1985-TU 1981 Republic of Turkey Fertilizer Rationalization 104.00 3.17 2094-TU 1982 Repsblic of Turkey Ersurus Rural DOevlopment 40.00 13.51 2159-TU 1982 ISKI Istaduul Sewerage 86.10 0.25 2322-TU 1983 TEK TEK III 96.00 1.40 2399-TU 1961 Rephlic of Turkey IthAdtriat Training 36.80 3.17 2400-TU 1984 Republic of Turkey Technlcal Assistance to SEs 4.65 1.24 24G5-TU 1984 Republic of Turkey Air. Extension * Research 72.20 28.87 2433-TU 1984 Repcltic of Turkey IAEE Extension 11S.30 62.80 2439-TU 19M Reptalic of Turkey Second Hi1hwy 186.1'4 28.26 2535*TU 1905 Ropblic of Turkey Third Ports 134.50 8K.32 2536*TU 1985 Rewlic of Turkey Intstrial Schools St.70 36.59 2585-TU 1985 Republic of Turkey Agric. Sector Adjustmnt Ln. 300.00 49.82 2586-TU 1965 TEK Fourth TEl Tranmission 142.00 107.92 2602-TU 1986 TEK Power System Opaatimn ast. 140.00 122.91 2647-TU 19U6 Reblic of Turkey Stll & Nadius Scale Irdustry 100.00 9.58 2655*TU 1986 Repblic of Turkey arakte H r 200.00 165.99 2663-TU 1986 Rewlic of Turkey Drainag 8 On.te Developent 255.00 231.77 2714*TU 1986 Repsblic of Turkey Finncial Seetor LJ. Loan 300.00 5.21 2739-TU 1987 Repubit of Turkey Railws 11 197.00 111.63 2?5O-TU 1987 Repblic '1 Turkey Sir dpo 132.00 7.18 2776-TU 198t Reoublic of Turkey on-ormal Vc. Training 58.50 54.75 2818-NU 1987 Repchlic of Turkey limir Moter Ste. & Sewere 184.00 16.58 2819-TU 198t Repshlic of Turkey Cukva Urban Develqmnt 120.00 109.84 2856-TU 1987 Replic of Turkey EnrWgy Sector Adjustment Loan 325.00 108.72 2-88*TU 1988 ISKI tstsfbul water Supply 218.00 178.30 2901-TU 1988 TEKeS. SYKI and Industrial Export Develotmnt 300.00 119.68 P.epblic of Turkey 2922*TU 1988 RepI hlic of Turkey Industrial Training II 115.80 99.88 2964-TU 1988 Replic of Turkey FSAL It 400.00 200.00 3057-TU 1989 Repiblic of Turkey Heelth C/ 75.00 75.00 3067-TU 1989 Repitic of Turkey SRI it 201.50 201.5 3077-TU 1989 RepLblic of Turkey Agro-Indistry 150.00 150.00 3090-Tu 1989 Republic of turkey 3rd Agricultural Credit 250.00 250.00 Total 9257.49 196.15 2898.54 of thich has bn repaid 1892.31 26.92 Total now outstanding 7M.18 169.23 Amount sold 3.55 of hfich ha been repaid 3.55 Tot now held by ank wd IDA d/ 361.63 169.23 Total udisbursd 2898.54 a/ The status of the projects listed fn Prt is describedi fn a separate repot on all ankltDA financed projects in execution, which is upkdted tMice yearly and circulated to the Executive Directors on April 30 and October 31. b/ Net of cancellations. c/ Not yet effective. dI Prior to exchange adjustmnts.  - 10 - Schedule D Page 2 of 2 STATUS OF AK ROP OPERTIONS IN TUREY STATOWNT OF ItC INWETNETS (A of Septder 30, 1969) Awsumt (Smlttion) /b year Ob l18tor tPe of musiness Lon EQity Total Projects fully closed out 78.01 10.52 88.53 1 r/6s167/69 73/n /7r/ TSlI DEC 60.00 4.77 t6.n 80/83/71/7 in0o/71/82/83 Viking I Pulp ard Par 2.50 0.82 3.32 19?0/86/87 ACS Gla# 20.19 1.96 22.75 197,/76/83/84 NASAS Alulnuw 6.58 1.55 10.13 1986 Cam Elyaf Fibr Gl 7.94 - 7.94 ig79/81/89/83/84 Trakya Cam las 87.30 7.13 94.43 1981 Kirklareli Cam Say i Glat# Tabltre 32.70 - 32.70 1982 N.A.M. Motors Motor Vehicles & Access. 7.89 7.89 1084 Pinar Food f food Processing 3.9 3.90 198S MAUAS Motor Vehicles A Access. 6.47 6.47 1986 Silkar Turim TatiruE ve Tourism isletmelari A.S 5.81 5.81 1986 Eska Turizn we Ticaret A.S. Tourism 9.08 - 9.08 1987 Cumry Sanyi ve Ticaret Textiles 16.48 16.48 Isletteleri A.S. 1988 Disbenk Capital Markets 60.00 - 60.00 1988 Elginkan Mutfcturing 16.4S 16.4S 1988 Interbank Capita l Mrkets 60.00 60.00 1988 - KIris Motel .ourism 7.80 7.80 1989 Dasa Textiles 25.00 - 25.00 1989 Isko Textiles 32.60 32.60 1989 Saniville tourism 2.66 2.15 4.81 1989 Ram Dis Dvelotpnt Finan_ 4.75 4.7S 1989 Sanko Textite & fibers 6.37 6.37 '98