Madagascar - Second Manpower Development Project

Report No. PID7027 Project Name Madagascar-Second Manpower Development... Project Region Africa Sector Vocational Training Project ID MGPE57383 Borrower Republic of Madagascar Implementation Agency Bureau du Projet Education charge du Projet de Renforcemnet de la Formation Technique et Professionnelle Address B.P.E. - PREFTEC 3eme etage Batiment ex-LTGC Complexe Scolaire Ampefflloha Antananarivo 101 B.P. 4196 Director: Mr. Andre Ralaitsizafy Tel: (261) 20 22 314 38 Fax: (261) 20 22 314 38 Date this PID prepared October 16, 1998 Projected Appraisal date March 1999 Projected Board date July 1999 COUNTRY AND SECTOR BACKGROUND In the early 1990's the Government of Madagascar embarked on a major reform of its vocational and technical education (VTE) system. Based on achievements to date and in response to changing internal and external environments, the Government has recently (December 1997) adopted a new strategy for the development of education and training. The proposed project would build on lessons learned through Bank's assistance under the FY92 Manpower Training Project or PREFTEC (Cr. 2382-MAG of US$22.8 million equivalent) and assist Government in implementing complementary reforms. The initial wave of reform aimed at modernizing the system and making it more responsive to labor market needs. With assistance from the Bank, the Government initiated institutional and structural reforms, including: (a) a consolidation of public provision of vocational training and technical education under a single authority, transferring Technical Lycees and Vocational Training Centers from the Ministry of Education to a newly created Ministry of Technical Education and Vocational Training (METFP); and (b) the establishment of four autonomous bodies aimed at (i) producing and disseminating information on labor markets through an employment observatory (ONCE), (ii) acquiring modern skills in program design and training of trainers through the establishment of a human resources development center (CERES), (iii) fostering participation of the private sector in needs analysis, design and provision of tailored-made training programs through provision of training engineering services (CNFTP) and the establishment of regional and sub-regional training boards (GIRETFPs, regional groups of public training institutions, and ARIFs, voluntary associations of enterprises), and (iv) creating an incentive system to promote demand-based training programs  through a Fund for vocational training (CNFTP). As a result, PREFTEC was instrumental in building the foundations for a major transformation from a supply- to a demand-driven system in which enterprises, beneficiaries and government would participate in the development, financing, delivery and evaluation of training activities and manpower development programs. In December 1997, the Government adopted a second National Program for Improvement of Education and Training (PNAE II) which presents the objectives, strategies and investment plans for the period 1998-2003 for three major sub- sectors: primary and secondary education; tertiary education; and vocational training. This Program builds on achievements and lessons learned under PNAE I (1988-1997). Also, the Government and the Bank completed negotiations of an Education Sector Development Project (US$65.0 million equivalent) which supports priority investments at primary, secondary and tertiary levels of education. The proposed Second Manpower Training Project would assist the Government in financing investments in the vocational training sub-sector. PROJECT DESCRIPTION The project includes the following components: Component 1: Implementing the vocational training reform through : (a) institutional, administrative and operational measures in line with the objectives of the second phase of the reform, and (b) IEC campaigns to improve the image of vocational training and to promote the reform with economic and social partners. Component 2: Enhancing responsiveness of the vocational training system through : (a) development of an information/signaling system to identify and follow trends in the demand for skills in the productive sector, (b) determination of occupational standards to establish certification and validation procedures, and (c) development of new modular competency-based pre-service training curricula and continuation and extension of skills-based in-service programs that meet identified skills needs and occupational standards. Component 3: Improving delivery of vocational training through: (a) implementation of new pre-service curricula meeting identified needs and standards in public and private training centers through program contracts, (b) continued implementation of ad hoc in-service training programs meeting identified needs and standards in public and private training centers, and (c) strengthening of autonomy of public training centers managed by a tripartite board with majority participation of the productive sector. Component 4 : Ensuring the effective management and coordination of project activities through the establishment of a Project Implementation Unit PROJECT FINANCING The proposed project is estimated to cost US$30 million. IDA would provide an estimated US$20 million and the Government and other bilateral financing institutions would provide the remainder of total project cost. PROJECT IMPLEMENTATION -2-  Project Coordination: the overall project coordination will be undertaken by a Project Management Unit (PMU) headed by a Project Coordinator who will work in close collaboration with the Directors of CNFTP, CERES and the Coordination Unit in METFP. The Project Coordinator will be assisted by a procurement specialist and a project accountant. The PMU will be responsible for procurement of goods and services to be acquired under the project, as well as for overall supervision of works (mostly rehabilitation of existing training centers). Two separate Funds will be established. Fund A, to be administered by CNFTP, will finance specialist services to conduct specialized training needs analyses and program design, and will reimburse part of the costs for in- service training programs to be negotiated between "promoters" and training providers (both public and private). Fund B, to be administered by the Directorate of Training Coordination in METFP, will finance part of the pre- service training contracts to be negotiated and signed between METFP and training providers (both public and private). PROJECT SUSTAINABILITY Sustainability of publicly financed programs, especially under the Funds to be created, will be examined in the context of the economic analysis (to be completed). LESSONS LEARNED FROM PAST OPERATIONS a. Training needs must be analyzed in the context of a strategic development perspective within a professional strand ("analyse des besoins par filiOre professionnelle"); b. Institutional development takes place and is most effective when there is a clear link between actual services provided to clients and methods / tools used to perform these services; expertise is developed and nurtured through actual experience between the service provider and the client (entreprise of beneficiary) and the feedback mechanisms between the two; c. Procedures for training fund must be simple to understand and to use, adapted from time to time to changing needs of the market, and flexible to accommodate emerging needs; d. Networking of enterprises, voluntary associations, social groups, NGOs and other social / community actors is an essential tool for generating interest, mobilizing people and delivering effectively training services; e. Well-designed, short, modular in-service training programs have a real impact on productivity and profitability, and beneficiaries are willing to participate to their financing (from 10 to 50t of the total costs). POVERTY CATEGORY The project would have specific mechanisms to target the poor. Also, the population of project beneficiaries would have a significant larger proportion -3 -  of poor people than the country's population as a whole. ENVIRONMENTAL ASPECTS The environmental impact of the proposed project is likely to be neutral. There would be environmental disruption associated with construction or rehabilitation of training facilities. However, the project would contribute to improving environmental awareness among laborers and technicians trained to use more effectively equipment, materials and technologies. PROGRAM OBJECTIVE CATEGORIES Vocational/Technical Education Contact Point: The InfoShop The World Bank 1818 H Street, N.W. Washington, D.C. 20433 Telephone No. (202)458 5454 Fax No. (202) 522 1500 Note: This is information on an evolving project. Certain activities and/or components may not be included in the final project. Processed by the InfoShop week ending November 13, 1998. - 4 -