Guinea - Higher Education Management Support Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-6615-GUI MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 4.5 MILLION (US$6.6 MILLION EQUIVALENT) TO THE REPUBLIC OF GUINEA FOR A HIGHER EDUCATION MANAGEMENT SUPPORT PROJECT NOVEMBER 6,1995 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (February 1995) US$1 = GNF978 GNF1 = US$0.001 GNF1000 = US$1.05 MEASURES 1 m = 1.09 yd 1 m2 = 10.76 sq ft 1 km2 = 0.38 sqmi ABBREVIATIONS AND ACRONYMS ACDI Agence Canadienne du Developpement International (Canadian Agency for International Development) DAMF Division des Affaires Adninistratives et Financi&res (Financial Affairs Directorate) GIZ Gesellschaftfur technische Zusamnenarbeit (German Technical Assistance) MEPUFP Ministere de l'Enseignement Pre-Universitaire et de la Formation Professionnelle (Ministry of Pre-University Education and Vocational Training) MESRSC Ministere de l'Enseignenent Superieur, de la Recherche Scientifique, et de la Culture (Ministry of Higher Education, Scientific Research, and Culture) PADES Projet d'Appui au Developpement de l'Enseignement Superieur (Higher Education Management Support Project) PAGEN Projet d'Appui a la Gestion de l'Economie Nationale (Economic Management Support Project) PPF Project Preparation Facility USAI) United States Agency for International Development Fiscal Year University Year January 1 - December 31 October - June  FOR OFFICIAL USE ONLY REPUBLIC OF GUINEA HIGHER EDUCATION MANAGEMENT SUPPORT PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Guinea Implementing Agency: Ministry of Higher Education, Scientific Research and Culture (MESRSC) Beneficiaries: Post-secondary students, under the aegis of MESRSC Credit Amount: SDR 4.5 million (US$6.6 million equivalent) Terms: Standard IDA terms with 40 years Financing Plan': IDA - US$6.6 million Government - US$0.7 million TOTAL - US$7.4 million Economic Rate of Return: Not applicable Program Objectives Categories: Human Resources Development Poverty Category: Not applicable Staff Appraisal Report: Report No. 14895-GUI Map: LBRD No. 27032 Slight differences in the amounts may occur due to rounding of figures. This document has a restricted distribuion and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed wiLhout World Bank authorization.   MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF GUINEA FOR A HIGHER EDUCATION MANAGEMENT SUPPORT PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed technical assistance credit to the Republic of Guinea of SDR 4.5 million (US$6.6 million equivalent), to help finance a Higher Education Management Support Project. The Government will contribute US$0.7 million equivalent. The credit will be granted on standard IDA terms with 40 years' maturity. 2. Country Background. Guinea is a country with 6.2 million inhabitants and a population growth of 2.8% per year (1993). It has long been one of Africa's most conspicuous underachievers. Guinea has one of the highest concentrations of mineral resources in Africa (bauxite, diamond and gold) and a high agricultural potential. The mining sector accounts for 22% of GDP, agriculture for less than 30%. Yet Guinea's per capita income is only US$537, with low social indicators such as life expectancy (44 years), infant mortality (133 per 1,000 live births) and adult illiteracy (76%). 3. Education Sector Background and Issues. The education sector in Guinea is managed by two separate ministries--one for pre-university and vocational education (Ministere de l'Enseignement Pre-Universitaire et de la Formazion Professionnelle JMEPUFPJ) and another for higher education and research (Ministere de l'Enseignement Supnrieur, de la Recherche Scienuifique, et de la Culture [MESRSCJ). Significant progress has been evident in the past few years for the programs managed by MEPUFP. Under the Education Sector Adjustment Program, primary school enrollments increased by over 70% during the period 1991-1994. Pre-university budgeting processes and financial management procedures were greatly strengthened. A highly successful redeployment of 2200 underutilized secondary school teachers and administrative personnel to primary school classrooms took place in 1992-1993. Yet if the sector is showing much greater signs of health at the primary and secondary levels, similar improvements have not occurred for higher education, where key indicators continue to deteriorate. Reforms in 1984 moved the subsector away from a heavy focus on agricultural training but did not result in desired improvements to quality and relevance. The percentage of female students in higher education declined from 19% in 1984 to under 6% by 1993. The sector has been plagued by student strikes and low quality. This comes against the backdrop of a weakening macroeconomic framework and the Finance Ministry's recent record of sporadic disbursements to the sector. 4. Management of the higher education institutions run by the MESRSC (two universities, three training centers, and a number of research centers) is highly fragmented. The respective responsibilities of the Ministry and the institutions have been ill-defined, with a great deal of overlap, resulting in conflict and organizational inertia. This has contributed to a precipitous decline in educational quality and the relevance of course content. The situation has been further aggravated by the total lack of communications capacity within the sector, and the  2 absence of reliable statistical data. In an attempt to resolve the ongoing management and pedagogic crises, the Government decided in 1989 to grant greater autonomy to the institutions. This decision was only partially implemented because of limited financial and educational management capacity and because the type and degree of autonomy to be granted was not clearly defined. During the preparation of the proposed project, a number of working sessions have been held in order to frame these issues, and a clear statement of policy has been prepared. This policy highlights the development of management capacity, information flow procedures, and cost-effectiveness. It calls for a new and clear division of responsibilities between Ministry and institutional personnel, with the Ministry assuming responsibility for coordination and quality control and the institutions taking responsibility for management of personnel, finances, program development and institutional development. The Government and the institutions have expressed their commitment to early implementation of the new policy. 5. Project Rationale. Consistent with the priority it gives to primary education, the Government of Guinea has over the past five years reduced funding for higher education from over 25% to 17% of the education sector budget. This means that if higher education is to contribute to the country's economic development, and to improving the quality of teachers whom it forms for lower levels of the education system, it will need to operate with much greater cost-efficiency and develop other sources of financing. The current project has been designed for this purpose and will help Government move from a direct management role to one of quality and financial control. 6. Three alternative financing approaches were considered at the time of project identification: (i) a Government proposal for an investment project (cafeteria facilities, library infrastructure and holdings, and science laboratories) to cost an estimated US$10.8 million; (ii) a proposal that studies be conducted under PPF funding for up to US$1.25 million, leaving open any decision about subsequent investments; and (iii) the current technical assistance project, including a communications component (US$6.6 million of IDA financing, US$7.4 million overall). The investment project was rejected as premature and economically unsound, since it would have added over US$400,000 to annual recurrent expenditures while providing little in terms of external efficiency gains. The sole reliance on PPF funding was considered inadequate since it would have left a significant time gap between policy reform decisions and investments in support of those decisions, jeopardizing the sustainability of reform initiatives. It was also felt that policy reforms could not be adequately implemented in the absence of viable communications. The technical assistance approach was considered to present lower risk and higher potential payoff, since it would lead to early decisions about a new configuration of institutions, a-nd provide for investment in needed human resources and management capacity rather than in institutions or programs which might ultimately be closed down. It would also lay the groundwork for any future investment and provide time and technical guidance for a participatory process of fundamental change. 7. Project Objectives. The long-term objective of the project is to establish a reconfigured, strearmlined system of higher education and research, with greater institutional  3 autonomy, improved cost-effectiveness, and increased relevance for economic development. Specific objectives are to help the Government to: (a) reorganize the Ministry and the institutions of higher education based on identified need and resource availability; (b) build financial and budget management capacity at the Ministry and institutional levels; and (c) establish a viable information and communication system. The Ministry will assume a new role focusing on the control of quality, cost-effectiveness, and relevance. This will mean overhauling the flow of information, establishing criteria for evaluating teaching and learning processes (linking the amount of financing to these criteria), and helping the institutions become more academically relevant and financially competitive. This approach is seen as a necessary prelude to any broader attempt to redefine curricular offerings, etc., or any major investment operation, all of which will be undertaken only under a follow-up operation to be contingent upon progress realized through this project. 8. Project Description and Financing. The proposed operation is a technical assistance project. It has been designed to provide support for development and implementation of a new policy framework in Guinean higher education, and for institutional capacity-building. Activities in support of policy reform will take place over the first two years of the project, at which time agreement will be reached on implementation of a detailed policy agenda; capacity- building initiatives will be spread over four years. IDA financing will be provided in support of the following components: (a) institutional reorganization (US$3.6 million equivalent). The process of reorganization began during project preparation with establishment of broadly representative working groups at post-secondary and research institutions and at the Ministry of Higher Education (MESRSC). The project will provide funding for in-depth analysis and reform of university governance, finance, management, female participation, student services, and user fees. It will provide consultant support for a collaborative process to reconfigure the higher education sector, prepare new recruitment criteria and procedures, develop accreditation procedures, and redefine administrative responsibilities. The project will finance training activities corresponding to these reforms; (b) development of an information and communication system (US$2.0 million equivalent). Improvements in communication will consist of: improved data collection, analysis, and dissemination; upgraded institutional information systems; and improved communications through installation of a campus telephone system for the University of Conakry, radio communications equipment to provide an inexpensive link among the higher education institutions and research centers, and installation of electronic data communication through the Internet. The information system will be compatible across institutions and will permit tracking of enrollments, expenditures and program offerings. It will serve as the basis for allocation of criterion-driven recurrent and investment funding. Funding will include institution- and central-level training; and (c) establishment of budgetary programming and monitoring capacities (US$1.1 million equivalent). This will include training of Ministry and institutional personnel, development of budget models, selection and purchase of computer software and equipment. It will strengthen the capacity of MESRSC to respond to priority needs and to reward best practices. Three PPF advances totaling US$640,000 have been made available for preliminary studies under components (b) and (c). The total cost of the project, including taxes and duties, is estimated at US$7.4 million equivalent. IDA will finance US$6.6 million equivalent. Government will  4 finance US$0.7 million equivalent of which US$0.4 million equivalent represents taxes and duties. 9. Project Implementation. The operation will be overseen by two committees: a sectoral steering committee created by ministerial decree in February 1994 and reorganized in September 1995 and an interministerial committee created in September 1995. The steering committee is composed of representatives from each institution as well as from the central ministry (MESRSC) and is chaired by the Secretary-General of MESRSC who is designated by the Minister of Higher Education for this purpose. It is responsible for day-to-day operations of the project. The interministerial committee includes a representative of the Ministry of Plan, who serves as its chair, three representatives of the MESRSC, a representative of the Ministry of Administrative Reform and Civil Service, a representative of the MEPUFP, and a representative of the Ministry of Finance. It approves budgets and work plans and ensures interministerial coordination. The two committees receive technical and logistic support from the project coordination unit, situated in the MESRSC. The Project Coordinator serves as secretary of the steering committee and is responsible with the chair for preparing the agenda. 10. Lessons Learned from Previous Bank/IDA Involvement. The capacity-building focus of this project fits well with efforts to strengthen the Ministry of Finance and Plan through the Economic Management Support Project (PAGEN). Experience gained during implementation of the Education Sector Adjustment Credit (Cr.2155-GN, 1990), which has been fully disbursed and closed June 1994, has shown that significant change is possible where there is sufficient political will. It has also underscored the heavily politicized nature of the higher education subsector, and the impossibility of effecting sustainable change at the institutional level without the ongoing involvement of students, professors, administrators, donors, business leaders, Ministry personnel and others. This is consistent with lessons learned about reform in Senegal and elsewhere in the region, which have shown the need for a period of reflection and planning during which to bring in stakeholders and build national consensus. 11. Rationale for Bank/IDA Involvement. The project is consistent with the Country Assistance Strategy (CAS) discussed by the Board on March 1, 1994. Recognizing the links between education and economic growth, the Country Assistance Strategy emphasizes the need to build a strong human resource base. It calls for higher education reform "in light of severe shortcomings in the adequacy of higher education training vis-a-vis economic development needs and high unit costs". IDA has taken the initiative at the pre-university level of ensuring that donors have worked at high levels of collaboration with one another and with Government, ensuring that sectoral investments and donor coordination occur within a supportive policy environment. This project will extend the collaborative approach to higher education and will strengthen ongoing Bank support for improving policy articulation and resource allocation. 12. Agreed Actions. Prior to negotiations, the Government submitted the following documents to IDA: (a) a draft policy statement for higher education and research; (b) draft  5 terms of reference for consultant services and studies for the first year of the project; and (c) a draft implementation manual. 13. During negotiations, IDA and the Government reached agreement on: (a) the policy statement for higher education and research, including monitorable performance criteria and a policy reform agenda; (b) termns of reference for consultant services and studies for the first year of the project; (c) the draft implementation manual; (d) establishment of a management information system to enable the MESRSC to track annual monitoring indicators; (e) the interministerial committee's responsibility for ensuring that a mid-term review to evaluate the progress made in implementing the project is carried out with IDA by December 1997 and the steering committee's responsibility for prompt implementation of all measures agreed upon with IDA as a result of the mid-term review; (f) submission to IDA of: (i) progress reports on the implementation of the project not later than May 31 and November 30 of each year; (ii) annual projected work programs and budgets not later than November 30 of each year; and (iii) background documents for an annual review of progress to be organized and carried out with IDA during the fourth quarter of each calendar year; and (g) submission to IDA of annual audit reports, of reasonable scope and detail, within six months of the end of the fiscal year. 14. As conditions for credit effectiveness, the Government will have: (a) established a budget unit with internal audit responsibilities, and a computerized accounting system acceptable to IDA; (b) adopted the implementation manual; (c) established a management information system to enable the MESRSC to track annual monitoring indicators; (d) submitted bidding documents acceptable to IDA for all major contracts to be procured through ICB during the first year of the project; and (e) appointed an independent auditor under a multi- year contract acceptable to IDA. 15. Environmental Aspects. The Project does not present the prospect of any detrimental impact on the environment and has been assigned a C-classification. 16. Program Objective Categories. The operation will provide support for human resources development through the rationalization of higher education. 17. Participatory Approach. Most of the stakeholders involved in higher education have participated in the preparation of the proposed project. Broadly representative working groups were formed at each institution and have met repeatedly, providing significant input, particularly in preparation of the first year of activities for the institutional reorganization component. Members include students, professors, administrators, donor representatives and Ministry and other Government personnel. The client consultation process will be a permanent feature during implementation. Working groups will function throughout the project, with an annual review process bringing together representatives of all stakeholder groups. 18. Project Benefits. The economic analysis conducted during project preparation focused on internal efficiency savings generated by the project. The external benefits of the interventions planned were not quantified because of the weakness of the existing data base, a  6 weakness to be addressed under the project. Internal savings and new revenues were estimated in four key project areas: (i) private resource mobilization, (ii) the opening of University social services management to competitive bidding, (iii) restriction of scholarships, and (iv) increased productivity of teaching and non-teaching personnel. It was estimated that cost- savings and resource mobilization will amount to US$6.4 million over the life of the project, and that additional recurrent costs under the project will amount to US$1.6 million, for net savings over four years of approximately US$4.8 million. Key performance indicators have been included in Government's Policy Statement for Higher Education and Research, and are listed in Schedule B. 19. The project will help the Guinean government ensure that future investments in the sector are focused on sustainable activities and programs that can be shown to have an impact on economic development. By introducing cost recovery measures, it obliges the sector to initiate demand-driven programs which provide graduates with marketable skills. Through development of criterion-based funding, along with accreditation mechanisms, the project provides incentives to individual institutions to achieve long overdue cost efficiencies. Along with the budgetary targets included in the Government's policy statement for higher education, to be monitored throughout the project, this will further ensure that the absolute priority given to primary education is maintained, and that funds are freed for the continued expansion of primary and secondary education and for improvements in the quality of higher education. Recasting the role of the MESRSC as one of support and quality control, rather than direct management will reduce political tensions throughout the entire sector and provide a more stable environment, conducive to the long-term sustainability of reform efforts. 20. Project Sustainability. The benefits from the cost-efficiency objectives of this project are clearly sustainable, since the project will create internal savings and new revenues well into the future that are far greater than the additional recurrent costs it will generate. Political sustainability has been addressed through broad-based participation of stakeholders in developing a policy statement for higher education and research and through cross-sectoral membership in the committee overseeing the project. On the other hand, the sustainability of efforts to improve the overall relevance of higher education will require a longer-term perspective and additional investments in the future to strengthen infrastructure and provide teaching and laboratory materials. Future investments would be contingent on the successful implementation of policy initiatives under the current project. These measures include the transfer of most financial management responsibilities to the institutional level, the development of closer links with the private sector, and the establishment of objective program evaluation criteria. They will help establish a framework in which future investments will have maximum sustainable impact. 21. Project Risks. The project is low risk. Policy reform measures have been front- loaded early in the project cycle to ensure that they remain the focus of activities and the subject of the annual and mid-term reviews. The main short-term risks include the availability of capable leadership to guide the reform process and potential opposition from interest groups  7 (students, faculty) that may see themselves as losers in the process; long-term risks include the potential failure of Government to provide adequate ongoing budgetary support and the converse possibility that increased investments in higher education will draw resources away from primary education. These risks cannot be entirely eliminated, but they have been addressed through the participatory, consensual approach taken to project development. Intensive budgetary discussions were held with representatives from the MEPUFP and the MESRSC, as well as the Ministry of Finance, to ensure agreement on budgetary funding that gives a continuing priority to primary education. These agreements are included in the policy letters for both ministries and will be a focus of annual and mid-term reviews for this project and for the Equity and School Improvement Project approved by the Board in May 1995. 22. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and I recommend that the Executive Directors approve it. James D. Wolfensohn President Washington, D.C. November 6, 1995 Attachments   Schedule A Page 1 of 1 REPUBLIC OF GUINEA HIGHER EDUCATION MANAGEMENT SUPPORT PROJECT ESTIMATED COSTS AND FINANCING PLAN (US$ million equivalent, including taxes and duties) Summary of IDA Financed Project Cost Estimates (US$ million equivalent, including taxes and duties) Foreign Local Total % of Total ________ _____ ~Base Cost 1. Institutional reorganization 1.4 1.7 3.1 48% 2. Information & communication systems 0.8 0.9 1.7 27% 3. Budgetary programming & monitoring 0.5 0.5 1.0 15% 4. Refunding of PPF 0.3 0.3 0.6 10% TOTAL BASE COSTS: 3.1 3.4 6.5 100% Physical Contingencies: 0.2 0.2 0.4 6% Price Contingencies: 0.2 0.3 0.5 8% TOTAL PROJECT COST: 3.4 4.0 7.4 114% Fiacing Plan (US$ million equivalent, including taxes and duties) Foreign Loca Taxes & Total Duties IDA 3.4 3.3 0.0 6.6 Government 0.0 0.3 0.4 0.7 TOTAL 3.4 3.5 0.5 7.4 Slight differences in amounts may occur due to rounding of figures.   9 Schedule B Page 1 of 3 REPUBLIC OF GUINEA HIGHER EDUCATION MANAGEMENT SUPPORT PROJECT Cost-saving and Resource Mobilization Measures (in thousands of US dollars) Measure Description 1996 1997 1998 1999 Total Overtime payments to 80% reduction over 2 yrs 86 173 173 173 605 teachers Use of contract 60% reduction over 2 yrs 65 130 130 130 455 teachers Day laborers 30% reduction over 2 yrs 38 77 77 77 269 Cost recovery-- Increase of 100 students 80 160 240 320 800 evenings per year Cost recovery--regular Increase of 100 students 40 80 120 160 400 per year Scholarships 5% annual reduction 195 381 557 724 1857 Cafeteria 25% savings 500 500 500 500 2000 TOTAL _____________________ 1004 1501 1797 2084 6386 Additional Recurrent Costs (in thousands of US dollars) Measure Descrip. 1996 1997 1998 1999 Total Communi- Telephone 100 100 100 100 400 cations & upkeep Research Matching 40 40 40 40 160 Grants funds Teaching, Increase 250 250 250 250 1000 Science, to reach Library 25% of Materials budget TOTAL 390 390 390 390 1560  10 Schedule B Page 2 of 3 REPUBLIC OF GUINEA IUGHIER EDUCATION MANAGEMENT SUPPORT PROJECT Key Performance Indicators Additional indicators linked to internal project performance objectives are listed in Annex 4 of the SAR. Indicators listed here refer to specific budget and enrollment targets agreed with Government at the time of project negotiations and included in Government's statement of sectoral policy. Only those indicators for which there is an agreed progression by project year are summarized in table form. (a) higher education's percentage of the education budget, which was between 25% and 30% prior to the PASE, will be kept in the range of 17% to 20% over the next four years; (b) non-salary operating expenditures will be increased to 25 % of the operating budget for higher education and research by 1999; (c) cost recovery and user fees will constitute between 5% and 10% of budget revenues by 1999; (d) required teachers hours will be as follows: 12 hours for assistant professors and instructors and 10 hours for associate professors and professors, with one hour of classroom teaching considered equivalent to two hours of laboratory supervision and one- and-a-half hours of small group mentoring; (e) student enrollment will be maintained between 8500 and 9000 over the next four years; (f) an annual budget of US$100,000 will be devoted to developing a competitive research grant program based on development needs; (g) the cost of social transfers in the overall budget will be reduced by 5 % annually.  11 Schedule B Page 3 of 3 REPUBLIC OF GUINEA HIGHER EDUCATION MANAGEMENT SUPPORT PROJECT Performance Indicators by Project Year Indicator 1996 1997 1998 1999 Non-salary operating 13% 16% 20% 25% expenditures as percentage of budget Cost recovery and user 1 % 3 % 5 % 7% fees as percentage of higher educ. budget Cost of social transfers 3895.9 3506.3 3116.7 2727.1 (in millions of Guinean francs) Student enrollment 8500 8650 8800 9000 TOTAL 390 390 390 390   12 Schedule C Page I of 2 REPUBLIC OF GUINEA HIGHER EDUCATION MANAGEMENT SUPPORT PROJECT SlMMARY OF PROPOSED PROCUREMENT ARRANGEMENTS (US$ million, including taxes and duties) Summary of Proposed Procurement Arrangements (US$ million, including taxes and duties) Categories ICB OTHER N.I.F. TOTAL 1. Equipment, Vehicles & Fumiture 1.6 0.1 1.7 (1.2) (0. 1) (-) (1.3) 2. Training 1.7 - 1.7 (1-7) (1-7) 3. Consultant Services 3.2 3.2 (3.2) (3.2) 4. Operating Costs 0.7 0.7 (0.4) (-) (0.4) TOTAL 1.6 5.7 0.0 7.4 (1.2) (5.4) (0.0) (6.6)  Schedule C Page 2 of 2 REPUBLIC OF GUINEA IUGHER EDUCATION MANAGEMENT SUPPORT PROJECT WITHDRAWAL OF PROCEEDS OF THE IDA CREDIT Categories Amounts of the Credit % of expenditures to be financed allocated (net of taxes and duties) (in SDR equivalent) 1. Equipment, Vehicles & Furniture 700,000 100% of foreign expenditures; 75 % of local expenditures. 2. Consultant Services & Training 2,620,000 100% 3. Operating Costs 340,000 80% 4. Refunding of PPF 450,000 5. Unallocated 390,000 100% TOTAL 4,500,000 Estimated IDA Disbursements (US$ million equivalent, including taxes and duties) UDA Hscal Year-s I____ _ FY96 FY97 FY98 FY99 Annual 3.5 1.5 1.3 1.0 Cumulative 3.5 5.1 6.4 7.4  SCHEDULE D Page 1 of 1 REPUBLIC OF GUINEA HIGHER EDUCATION MANAGEMENT SUPPORT PROJECT TIMETABLE OF KEY PROJECT PROCESSING EVENTS Time taken to prepare: 30 months Prepared by *: Identification Mission: March 1993 Appraisal Mission: May 1994 Date of Negotiations: September 11, 1995 Board Presentation: November 28, 1995 Planned Date of Effectiveness March 31, 1996 Relevant ICR and PPAR: Program Perfornance Audit Report and Project Completion Report: Guinea First Education Project (Cr.0849-GN); PAR No.6498, November 1986; Second Education Project (Cr.1341-GN); PCR No.10200, December 1991; Education Sector Adjustment Credit (Cr.2155-GN); ICR No.14617, June 1995. * This report is based on the findings of the Bank's appraisal mission which visited Guinea in May-June 1994. This mission comprised Mmes/Messrs. Robert Prouty, Education Specialist, Mission Leader (AF5PH); Maurice Gamier, Consultant, Higher Education; Marilou Bradley, Operations Analyst; Jean Laroche, Consultant, Communications Specialist; and Cherif Diallo, Economist, Resident Mission (AF5GN). Mr. Thomas Eisemon (ESP) is Lead Advisor. Mr. William Saint (AF4PH) is the Peer Reviewer. Mr. Jean-Louis Sarbib and Mr. Ok Pannenborg are the Department Director and the Managing Division Chief, respectively.   Schedule E Page 1 of 2 Status of Bank Group Operations in Guinea Summary Statements of Loans and IDA Credits (as of August 31, 1995) LOAN OR CREDIT NO. AMOUNT IN USS MILLION (LESS CANCELLATION) CREDITS FISCAL BORROWER PURPOSE BANK IDA UNDIS- CLOSING YEAR BURSE DATE D 29 CREDITS CLOSED 468.37 C17250-GN 1987 GUINEA LIVESTOCK SECTOR REH. 9.80 1.48 12/31/95(R) C 19150-GN 1988 GUINEA HIGHWAYS IV 55.00 10.95 12131/95(R) C 19550-GN 1989 GUINEA RESEARCH EXT. 18.40 .37 12/31/95(R) C 19850-GN 1989 GUINEA WATER 11 40.00 8.32 10/31/96 C19950-GN 1989 GUINEA SDA 9.00 1.39 12/31/95(R) C20680-GN 1990 GUINEA FORESTRY FISHERY M. 8.00 1.23 06/30/95(R) C21060-GN 1990 GUINEA NAT. RURAL INFRAST. 40.00 10.43 12/31/95 C21120-GN 1990 GUINEA SECOND URBAN 57.00 37.70 12/31/95 C23980-GN 1992 GUINEA P.E. REFORM 7.30 4.80 12/31/95 C24070-GN 1993 GUINEA AGRLEXPORT PROM. 20.80 17.64 12/31/99 C24160-GN 1993 GUINEA POWER n 50.00 36.14 12/31/97 C24440-GN 1993 GUINEA TELECOMMUNICATIONS 14.60 6.17 12/31/95 C25740-GN 1994 GUINEA HEALTH-NUT-SCTR. 24.60 24.75 06/30/01 C26530-GN(S) 1995 GUINEA FINANCIAL SECTOR 23.00 14.05 03/31/97 * C27190-GN 1995 GUINEA EQUITY & SCHOOL IMPROV. 42.50 44.49 06/30/01 TOTAL No. of Credits =15 420.00 217.91 Loans 3 Loans Closed All closed for GUINEA 73.50 TOTAL No. of Loan=0 TOTAL*** 73.50 917.01 of which repaid 73.50 8.95 TOTAL held by .00 908.12 Bank & IDA Amount sold of which repaid TOTAL undisbursed 219.12 CAOI 10-GN 1986 GUINEA SAL I 17.00 .00 12/31/1988(R). C16590-GN 1986 GUINEA SALI 125.00 .00 2/31/1988(R) C 19260-GN 1988 GUINEA SAL I 65.00 .00 12/31/1993(R) C21550-GN 1990 GUINEA EDC.SEC.A.PROGRAM 20.00 .00 06/30/1994(R) C21480-GN 1990 GUINEA PRIV.SECT.PROMO. 50.00 .00 12/31/1992(R) C 19261 -GN 1993 GUINEA SAL 1 .10 .00 05/07/1994 TOTAL GUINEA 177.10 .00 Note: * Not yet effective ** Not yet signed *** Total approved, repayments, and outstanding balance represent both active and inactive Loans and Credits. (R) Indicates formally revised Closing Date. (S) Indicates SAL/SECAL Loans and Credits. The net approved and Bank repayments are historical value, all others am market value. The Signing, Effective, and Closing Dates are based upon die Loan Departmient official data and are not taken from the Task Budget file.  Schedule E Page 2 of 2 STATEMENT OF IFC INVESMENTS (as of June 30, 1995) (in Minlions of USS) GROSS COMMITMENTS USS MILLION OBLIGOR TYPE OF BUSINESS FISCAL LOAN EQUITY TOTAL YEAR AREDOR MINING & QUARRYING 1983 13.61 1.23 14.84 AURIFERE NON-FERROUS ORE MINING 1988 8.25 .00 8.25 BICI-GUI COMMERCIAL BANKS 1987 .00 1.00 1.00 CIMENTS GUINEE MFG OF CEMENT LIME & PLASTER 1994 1.50 .00 1.50 SGHI RESTAURANTS & HOTELS 1995 385 .55 4.40 SIGMAR SA STONE QUARRYING CLAY & SAND 1987 .11 .00 .11 TOTAL GROSS COMMITMENTS 27.32 2.78 30.10 LESS CANCELLATIONS, TERMINATIONS, EXCHANGE 14.38 1.23 15.61 ADJ., REPAYMENTS, WRITE-OFFS, & SALES TOTAL COMMITMENTS NOW HELD BY IFC 12.94 1.55 14.49 TOTAL UNDISBURSED IFC 3.85 .55 4.40 TOTAL OUTSTANDING IFC 9.09 1.00 10.09  17 IMPLEMENTATION ISSUES 1. The FY95 ARPP for the Guinea portfolio noted a range of continuing implementation issues, as well as a decline in disbursements. About 18% of the projects in the portfolio received an unsatisfactory rating or worse for Development Objectives, as compared to 21% in FY93 and 6% in FY94. Implementation progress showed a similar trend although the decline appears to reflect more realistic rating by task managers rather than the sudden emergence of new performance issues. Eight projects are due to close in FY96; it is expected that this will go a long way toward cleaning up the portfolio. 2. Ongoing implementation issues that are being addressed include the lack of counterpart funding and overall audit compliance. Action plans have been developed and supervision coefficients have been slightly increased. A CPPR in February 1995, along with a Public Expenditure Review helped convey the need for Government to improve management of resources. 3. These systemic disbursement problems were addressed directly during preparation of the Higher Education Management Support Project. Project management received extensive taining and support regarding disbursement and procurement procedures. The project was designed so that most key conditions were fulfilled prior to negotiations. Further, all terms of reference, scopes of work, procurement arrangements and contracts will be prepared and agreed at the start of each fiscal year. Annual counterpart funding requirements for the project will be included as a line item in the annual budget for higher education; compliance will be monitored closely. The project size also reflects Government's counterpart funding capacity.   I I i- 1 SENEGAL G GUINEA A - - - - - - - - - - - - - - T-.Te-_ _rgo) HIGHER EDUCATION MANAGEMENT SUPPORT PROJECT t _ ... ,_ ) ......To Kedougoui To Xime,,.) oundra , B I S S A U - ' ToBomko 1 2, ~ ~ ~ ~ ~ ~ ~ ~ ( 1 0yaosl iT BISSAU/ 'N- >oouaMoI ).XL 2L~\---/ , ii . / ~~~~~~~ ~~~~~~~Didi 7 ~~..uafq~ ~ ~~50 X..ZBOke Telimileit r i Dinguira -i Siguiri c/~>k>_\< 7;oNiandor M A L I 6 ~~~~~ThIimI KamsNr Dala <aS I Moa n A Tondon C EA N Contiler \ r , f /ankono 7 ATLANTIC oriBolfocoridor Coyah ~~SIERRA LEONE \Mrbo\~ OCEAN Conakry \ 2 PAVED ROADS --"7eforia6t > y / ROUTES PAVEES -- ). ALL-WEATHER ROADS ROUTES PRATICABLES PAR TOUS TEMPS 1<6/c 1- 20I 40 60 80 100 120 RALRAD KlOMETER'-i .-+ RAILROADS / K,ssdouqou KILOMETERS ToFreetou.nCEMNDFR 140 ~~~~~~~~~~RIVERS wK 14