Rwanda - First Education Sector Project

Docunent of The World Bank FOR OFFICIAL USE ONLY 6G Z ZI 7 - IZ 6J Report No. P-5424-RW MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 16.2 MILLION TO THE REPUBLIC OF RWANDA FOR A FIRST EDUCATION SECTOR PROJECT MARCH 1, 1991 This document bas a restricted distribution and may be used by recipients only (n the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit Rwandese Franc (FRW) US$ 1 ' FRW 130 (November 1990) FRW 100 US$ 0.77 MEASURES Metric British/US Equivalent 1 meter (m) = 3.28 feet 1 square meter (sq. m) = 10.76 square feet 1 kilometer (km) - 0.62 mile 1 square kilometer (sq. km) = 0.39 sq. mile GLOSSARY MINEPRISEC M,inistry of Primary and Secondary Education MINESUPRES Ministry of Higher Education and Scientific Research UNDP United Nations Develupment Program UNR National University of Rwanda Fiscal Year School Year January 1 - Deceiber 31 October - June  FOR OFFICLU USE ONLY RWhNDA FIRST EDUCATION SECTOR PROJECT CREDIT AND PROJECT SUMMARY Borrowers Republic of Rwanda Beneficiaries: Ministry of Primary and Secondary Education (MINEPRISEC) Ministry of Higher Education and Scientific Research (MINESUPRES) Amount: SDR 16.2 million (US$23.3 million equivalent) Terms: Standard with 40 years' maturity On Lending Terms: Not applicable Financing Plan: -------------US$ million--------- Local Foreign Total IDA 14.4 8.9 23.3 UNDP 0.0 2.0 2.0 Government 1.6 0.0 1.6 Total 16.0 10.9 26.9 Economic Rate of Return: Not applicable Staff Apvraisal Report: Report No. 9136-RW Maps IBRD No. 22709 This document has a restricted distribution and may be used by recipients only - nh- performance of their officW duties. Its contents may not otherwise be disclosed without WMrld Ban& authorization.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF RWANDA FOR A FIRST EDUCATION SECTOR PROJECT 1. The following memorandum and recommendation on a proposed credit to the Republic of Rwanda for SDR 16.2 million (US$22.3 million equivalent) is submitted for approval. The proposed credit, which would be on standard IDA terms with 40 years' maturity, would help support the adjustment of the structure of primary education, improve its quality and strengthen the sector's management capacity. The project would be cofinanced by UNDP (US$2.0 million). 2. Backaround. In 1977 the Government adopted a reform program for primary and secondary education whose objectives weres (a) to change the structure of the educational system by lengthening primary education from six to eight years, creating a three-year cycle of rural post-primary training and unifying general secondary education into one six-year cycle; and (b) to adjust the education content to the socio-cultural and economic realities of the country by expanding teaching in Kinyarwanda (the national language) in primary education, and vocationalizing/diversifying secondary education. In higher education a reform program, adopted in 1987, aimed att (a) meeting the manpower requirements for national development; (b) shortening the undergraduate programs and enhancing quality; and (c) improving overall efficiency. The Government has swiftly imp. 'ented the reform of primary and secondary education and has initiated it .n higher education. In 1987/88 p:imary education enrollment reached about 970,000 of which 49 percent were females. 3. Sectoral issues and strategy. The length of primary education and the structure and excessive vocational orientation of secondary education have proven to be problematic in terms of affordability and relevance. In recent years, this situation has been rtacerbated by a combination of an explosive population growth and economic crisis. The annual population growth rate has been about 3.7 percent. This, together with the economic crisis which resulted in a marked deterioration of the Government's fiscal capacity since the early 1980s, have had * detrimental effects on both the quantity and quality of education. In fact, simulations of the future of the education system under current constraints and policies show a significant fall in enrollment rates (from 62 to 49X) in primary education over the next decade. The single most important measure to help maintain the rates would be a reduction in the length of primary schooling from eight to six years. Given the complexity of the adjustments needed by both primary and secondary education, a two-stage approach is proposed, with the focus on primary education in the first and post-primary education in the second. The share of education in the Government's budget seems adequate (around 24 percent and therefore on the high side by African standards) but the composition of expenditures can be improved particularly by increasing the share of quality- related inputs. 4. Rationale for IDA involvement. Considering the budgetary constraints as well as the education system's problems regarding its overall structure, duration and efficiency and their effects on enrollment rates in primary education, IDA's overall strategy is to help the government initiate affordable development of the sector through (a) progressive adjustment of the structure of the education  system, starting with primary education, while at the same time improving the quality of education; and (b) increase of efficiency in resource allocation and use, while mobilizing non-public resources. IDA's involvement is justified by the agreement it has already reached with the government on medium term policies, particularly reduction of the duration of primary education and the size of the sector's investment program. The project was designed taking account of the experience learned during implementation of the three IDA-financed projects in Rwanda. S. Proiect obiectives. The project would support government policies and complement other donors' contributions to the sector investment program. Its objectives are specifically to: (a) consolidate and expand primary education; (b) improve the quality of primary education; and tc) strengthen sector management capacity. 6. Proiect description. (a) Consolidation and expansion of nrimarv education would be pursued through the establishment of a primary education fund geared toward improving both equity of access among and within prefectures and overall access and enrollment rates at this level of education, while at the same time improving the general conditions of learning. The project would finance the construction of 2,000 new classrooms, the rehabilitation of 400 existing classrooms and the reconstruction of 300 others. It would also provide furniture for the 2,000 new classrooms and for 30 percent of the 8,700 unfurnished ones, (b) Improvement of the quality of education would be achieved through (i) pre-service training of primary teachers; (ii) professional development and in- service training of primary education supervisors and teachers; and (iii) strengthening applied pedagogical research. The project would finance civil works, furniture, equipment, textbooks, technical assistance, local and external training and incremental operating costs. (c) Strenathenina the sector's management capacltv would be reached by reinforcing the capabilities of (i) central level departments in planning, budgeting and control of expenditures, staff management and organization of examinations; (ii) prefectoral level inspectorates in pedagogical leadership; (iii) secondary schools in the efficient use of resources and (iv) the university's management information system. The project would finance technical assistance, equipment, local and external training and incremental operating costs. In addition, the project includes the financing of the Project Implementation Unit and provides funds for undertaking a number of studies and the preparation of future investments. 7. The total cost of the project is estimated at US$26.9 million, of which US$10.9 million would be in foreign exchange. Schedule A contains the project cost summary and financing plan and Schedule B the amounts and methods of procurement and disbursements, as well as a disbursement schedule. A timetable of key project processing events and the status of IDA operations in Rwanda are given in Schedules C and D respectively. A map showing the locations of the project components is attached. The Staff Appraisal Report No. 9136-RW dated March 1, 1991 is being distributed separately. 8. Agreed actions. The government has agreed to reduce primary education from eight to six years and to have the process completed by October, 1993. During negotiations, the government and IDA agreed on a policy statement encompassing the government's sector strategy, the related investment program, and its financing. In addition, the government agreed to (a) undertake a census of teaching staff and a school mapping exercise for primary education and do the  - 3 - same for secondary education personnel; (b) reorganize the national primary education examination so as to assess the basic educational atteinments of students; (c) undertake each year an annual government/IDA review of the draft three-year rolling investment and expenditure program to ensure development of the sector consistent with the country's financing capability, while respecting the priority of allocating resources to primary education and quality-related inputs; and (d) hold by April 30, 1993 at the latest, a GovernmentlIDA mid-term review to assess progress in achieving the Project Development Objectives. A condition of effectiveness of the credit would be that the conditions precedent to the effectiveness of the cofinancing by the United Nations Development Program (UNDP) have been fulfilled. The conditions of disbursement of the credit for the primary educatioxn fund would be the establishment of the interministerial commission under the Minister of Primary and Secondary Education (MINEPRISEC) or his nominee, and the issuing of a ministerial circular providing information to the local governments (communes - 143) on the functioning of the fund and related procedures including the conditions to be met by the communes before funding approval and the standard form of the protocol to be prepared by each commune. 9. Benefits. The reduction of primary education from eight to six years will create 120,000 new places in primary schools for children of the 7-12 year age-group. In addition, the benefits of this project would include: (a) expansion of primary enrollments through the primary education fund whose allocation will ensure equity across prefectures and communes, while creating about 84,000 additional places; (b) establishment of a framework for improving the quality of primary education, including a comprehensive teacher training program and the development of a new curriculum which includes health, nutrition, population and environmental concerns; and (c) strengthening of the technical capacities of MINEPRISEC's central departments (as well as decentralized units) for policy analysis and development and a more efficient use of existing resources. The most immediate impact on primary education would be the consolidation of existing enrollment rates (given present financial constraints) and the improvement of the quality of education. 10. Risks. The risks are related to inadequate management capacity throughout the educational system. Detailed preparation of the project components jointly with national specialists, the provision for additional staffing and the sizable training program supplemented by specialists in key * areas included in the proposed project should help overcome this problem. In addition, recent hostilities underscore the level of uncertainty and risk faced by the country. The government rapidly brought the situation under control while offering to solve the underlying political problems. In the long run, equitable economic and social growth, part of which is expansion of basic education, would be the best insurance against instability. 11. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Barber B. Conable President Washington, D.C. March 1, 1991 Attachments  4 - SCtEDLE A Page 1 of 1 RWANDA FIRST EDUCATION SECTOR PROJECT ESTIMATED COSTS AND FINANCING PLAN PROJECT COSTS StMMARY LacaI Foreign Total Local Foreign TotSl ____- FRW (miliIon) ---- ---- USS (miliIon) --- A Primary Education Fund 699.6 77.7 777.8 6.4 0.8 6.0 B. Primary eduection qualitative aspects 364.8 617.5 932.3 2.6 4.8 7.6 C. management central level 13.7 184.4 17.1 0.1 1.3 1.3 Management decentralized level 10.7 71.5 82.7 O.1 6.5 0.6 E. UNR management Improvement 0.7 31.1 31.9 0.0 0.2 0.2 F. Studies and management of the project O6O 230.9 237.6 0.1 1.6 1.8 Total Baselin, costs 1093.1 1193.1 2286.4 8.4 9.2 17.$ Physical contingencets 12S.9 06.9 224.8 1.0 0.7 1.7 Price contingencis S8 66.3 122.9 988.2 6.7 0.9 7.8 TOTAL PROJECT COSTS 20S17. 1412.0 3490.4 16.1 10.9 26.0 FINANCING PLAN USS million Percent IDA 23.3 87 ^. UNOP 2.0 7 Government / 1.6 = 3 26.9 100 a/ Of which USS0.9 million of taxes haA duties.  -5- SCHEDULE B Page 1 of 2 RWANDA FIRST EDUCATION SECTOR PROJECT AMOUNTS AND METHODS OF PROCUREMENT (USS mlIII0n) Procurement Methods Proj et Element 1CB LCB Others N/A Total Costs Civil Works */ (a) Primary Education $.66 1.69 0.29 (6.94) (1.52) (7.46) (b) Other parts of the 6.54 06.4 project (6.49) (0.49) Furnlture h Primary Education 2.97 2.97 (2.68) (2.68) Equipment, Vehicles and 4.01 4.01 teaching materials S/ (4.61) (4.01) Technical assistance and 3.13 5.48 8.6B training abroad and locally i/ (1.12) (6.18) (6.86) Incremental operation cota g/ 1.28 1.28 (1.08) (1.08) Studles and preparation of 1.28 1.28 future Investments (1.28) (1.28) TOTAL 401 10. 11 TIT 719 (4.01) (9. 11) (8.92) (6.28) (23.30) The construction contracts for new primary schools, for the documentation e nters and for the observation classrooms (US87.18) would be awarded through local competitive bidding (LC8) procedure acceptable to IDA, n which foreign bidders would have the opportunity to participate. Rehabilitation and roplacement of existing primary schools (USS1.70) would be done by force account. hi The contracts for furniture (US02.97) would be awarded through LQC procedures acceptable to IDA. 91 The contracts for th. major package of equipment, textbooks and vehicles would be awarded on the bists of International competitive bidding (ICR) tr accordance with IDA guidelines, including foreign and local bidding adverttisemnts, public opening of bids and award to the lowest bidder. (A margin of preference equal to 15 percent of the c.t.f. bid price of imported goods or the actual customs duties and import duties, whIch;ver Is less, would be allowed for domestic manufacturers). #/ The technical assistance and training abroad contracta (US81.12) would be awarded In accordance with IDA Guidelines for the use of consultants. The local training would be undertaken by the Ministry of eiucation with Technical Assistance support. g/ The recurrent expenses would be incurred through normal Government procedures acceptable to IDA. Note: The figures In parenthess a're tho mounts financed by IDA.  -6 - SCHEDULE a Page 2 of 2 FIRST EDUCATION SECTOR PROJECT ALLOCATION AND DISBURSEMENT OF THE IDA CREDIT DISBURSEMENT AI (US$000) Percentage of Amount of expenditures Category of the credit to be financed Expenditure allocated by IDA (1) Civil works (a) under part A of 7,000 90 the project (b) other 300 90 (2) Furniture under part A of 2,000 90 the project (3) Equipment, vehicles 3,000 100 of foreign and teaching material expenditures and 90 of local expenditures (4) Consultants'services 100 of foreign and training expenditures and 95 of local expenditures (5) Incremental operating 800 90 costs (6) Studies 600 100 of foreign expenditures and 90 of local expenditures (7) Unallocated 3,600 TOTAL 23,300 ,, Al A special account of US .;O million equivalent would be established. Estimated disbursement (in USS million) IDA FY FY92 . FY93 FY94 FY95 FY96 Annual 4.30 4.70 5.70 4.60 4.00 Cumulative 4.30 9.00 14.70 19.30 23.30  - 7 - SCHEDULE C Page 1 of 1 RWANDA FIRST EDUCATION SECTOR PROJECT TIMMTA3LE OF MY PROCESSING EVENTS (a) Time taken to prepare 21 months (b) Prepared by Unesco and Wold Baank staff (c) IDA first mission February 1989 (d) Pre-appraisal mission departure Novem.ber 1989 (e) Appraisal mission departure June 1990 (f) Negotiations February 1991 (g) Plar.ned date of effectiveness July 1991 (h) List of relevant PCRs First Education Project (Cr. 567-Rw) of May 19, 1987  - 8- SCHEDULE D Page I of 1 THE STATUS OF BANK GROUP OPERATIONS IN RWANDA A. Statement of IDA Credits (as of February 28. 19911 Amount In US* miliIon Loan or Fiscal (love cancel lationel Undis- Closing Credit No. Year Borrower Purpose Bank IDA bursed Date 22 Credit(s) closed 212 7? C12830-RWA 1983 Rwanda Bugesera II 16.30 71 12/81/91 (R) C16460-RWA 1986 Rwanda Agri. Research 11.60 4.31 12/81/ (R) C15850-RWA 1986 Rwanda TAS Public Sector MS. 4.80 8.09 08/002 kR) C16410-RWA 1986 Rwanda Highways VI 11.00 4.28 12/81/91 (R) C16500-RWA 1986 Rwanda ORD IV 9.00 3.88 12/31/93 C186CO-RWA 1986 Rwanda Gitarama Svcs. Agr. 12.70 4.89 09/30/91 C26780-RWA 1986 Rwanda Family Health 10.890 11.06 06/39/92 C16830-RWA 1986 Rwanda Education III 15.80 12.43 12/31/91 C17830-RWA 1987 Rwanda Water Supply II 15.00 8.97 12/31/94 C17960-RWA 1987 Rwanda Public Sector Mg 7.40 7.83 12/31/94 Cl8110-RWA 1987 Rwanda Forestry It 14A0 12.09 06/30/93 CAOO81-RWA 1988 Rwanda Highways VI 10.90 11.51 12/31/90 C20280-RWA 1989 Rwanda Agric. Services 19.90 21.20 06/30/95 C20410-RWA 1989 Rwanda Urban Inst. 82.00 36.17 12/31/96 C21130-RWA 1990 Rwanda Public Enterprise 4.40 4.89 12/31/94 C21360-RWA 1990 Rwanda Transport Sectoo 40.00 44.74 06/30/97 C21890-RWA 1991 Rwanda Second Communication 12.80 12.80 12/31/96 TOTAL number Credits s 17 247.30 204.45 TOTAL 460.07 of which repaid 9.46 TOTAL held by Bank and IDA 459.61 TOTAL undisbursed 204.46 S. Statement-of IFC Investments (as of February 28. 1991) Investment Loan Equity Total Number FY Project Name Type of Business -------- Million