Mauritius - Industrial and Vocational Training Project

 ICRR 10401 Report Number : ICRR10401 ICR Review Operations Evaluation Department 1. Project Data : OEDID : OEDID: L3401 Project ID : P001899 Project Name : Mauritius Industrial and Vocational Training Project Country : Mauritius Sector : Vocational / Teacher Training L/C Number : L3401 Partners involved : Prepared by : Angela Ransom, OEDST Reviewed by : Linda Ankrah Dove Group Manager : Gregory K. Ingram Date Posted : 08/12/1999 2. Project Objectives, Financing, Costs and Components : The Implementation Completion Report is one of three full ICRs for three concurrent projects (Loans 3401 and 3578) supporting Mauritius' education sector development program . They are combined with an executive summary that provides a common background and overarching lessons . The Bank agreed to terminate all three loans under similar circumstances. Goals Support Mauritius' overall human resource development strategy Develop a skilled and flexible work force to meet the needs of a growing and diversified manufacturing and service-based economy Build institutional capacity within the joint Government /private sector-established Industrial and Vocational Training Board (IVTB) Objectives Create and expand the IVTB's institutional capacity through the provision of selected TA and training to IVTB staff Increase trainers access to modern training methods and materials by establishing a training resource center Support selected training programs in specific sectors and industrial skill areas through the provision of equipment, training, and TA Develop a training/labor market information infrastructure Components Institutional development Establish a training resource center Last resort support for the delivery of selected cross -sectoral training courses Establish a job classification system Finance Appraisal Estimate: IBRD: US$5.40 M; Govt/IVTB: 2.30 M Actual/Latest: IBRD: US$3.27 M; Govt/IVTB: 2.32 M Costs Appraisal Estimate: US$7.70 M Actual/Latest: US$5.59 M 3. Achievement of Relevant Objectives : a) The ICR reports that the project's contribution to institutional development objectives was modest and uneven : The project exceeded targets set at mid -term for use of TA. TA contributed to the development of a testing system for vocational trades, curriculum materials, and training of trainers for IVTB courses . However, IBRD financed only modest amounts of staff development for IVTB largely because IVTB was unable to agree on a comprehensive and coherent staff development plan for the Bank to finance . Instead, IVTB financed ad hoc staff development from bilateral sources and from its own resources . The few study tours undertaken were not financed out of project funds . IBRD financed the acquisition of books, periodicals, and training data bases for the Training Resource Center .  IVTB financed the renovation of the facilities and the provision of additional space as planned . (b) Support for the delivery of cross -sector training was satisfactory : Despite policy dispute between the Bank and Borrower on the appropriateness of IVTB's involvement in delivering training, quantitative targets set at mid -term for the development of 11 training courses were met and expenditures on them exceed appraisal estimates when both IVTB and Government financial contributions are taken into consideration . (c) The modified project objective to create a management information system was satisfactorily achieved : The component for the development of a job classification system was redesigned at mid -term to set up a management information system with computerized offices for IVTB . The modified objectives were largely achieved. 4. Significant Achievements : There are some indications of positive outcomes of IVTB's activities on the training sector . According to the ICR the project played a minor role in these developments . The number of full-time courses for school leavers IVTB offers increased 70 percent and the number of trainnees tripled during the project period . At the same time, IVTB developed 120 part-time inservice courses for industry. IVTB mounted an apprenticeship scheme with the long -term aim of replacing much of its provision of pre-service/pre-vocational, full-time courses. IVTB developed a system to monitor the impact of its own training using tracer studies to track trainees and their employers and to provide feedback to curriculum designers . The proportion of the training levy used to reimburse approved expenses for enterprise training has increased almost 100 percent during the project period . The ICR indicates that a survey carried out by the Mauritius Employers Federation in October 1998, showed that most employers were satisfied with the training policies of the government, e.g. the IVTB's role and the training levy system . 5. Significant Shortcomings : Based on the evidence presented, OED concurs with the ICR's assessment that the project suffered from frequent changes in political leadership, lack of consensus among stakeholders on key education sector policy issues, poorly defined implementation mechanisms and procedures, and weak Bank supervision reporting . (a) OED emphasizes that lack of consensus among stakeholders over training sector policy, especially the respective role and responsibilities of the public and private sectors and the ITVB persisted throughout the project period. The resulting lack of clarity undermined the prospects of success . In particular, the confusion about ITVB's main function negatively affected its credibility and innovator . The Borrower's contribution to the ICR mentions that in its 1997/1998 budget speech the Government expressed its intentions to restructure IVTB to change its role from that of a direct provider of training to one of a coordinator and facilitator. The ICR reports that some members of the IVTB's Council, including some from the private sector, expressed the view that IVTB had a role to play in the delivery of selected skills training . IVTB's attempts to devolve some of its training had met with little interest from the private sector to take on training functions. Bank/Borrower relations became strained when stakeholders perceived the Bank as actively favoring IVTB's role as a promoter of training while the project had agreed also to support its role as a provider of training. As a result of this perception, the Bank's efforts to help build consensus in the sector on this important policy issue were not effective . The ICR suggests that the strain in relations with the Borrower may also have influenced the IVTB's decision to stop submitting requests for IBRD -financing of cross-sectoral training after October 1997, which contributed significantly to under -disbursement of the IBRD loan. IVTB changed ministerial affiliation three times between 1996 and 1999, which the ICR argues underscored the uncertainty of government policy and contributed to slow implementation of project activities . (b) The project played a marginal role in the success of institutional development outcomes . Revenues from a training levy and a robust economy enabled IVTB to finance most of its expansion and development without using IBRD loan funds . At mid-term the Government canceled US$1.0 million in loan funds. (c) The project's private sector development objectives were not achieved : IBRD-financed TA did not develop outreach programs for the private sector providers of training and for training within industry as planned . IVTB has failed to reach private trainers with services other than certification. The project-supported Training Resource Center is not accessible to private training, and its services are not widely used by the private sector as planned. (d) Weaknesses in project design reduced implementation effectiveness : Project design failed to identify clear performance targets for project activities . When targets were identified at mid-term, they were not used to assess progress towards project objectives and were ignored in subsequent supervision missions and reports . Failure to define clear criteria to appraise and approve cross -sectoral training programs contributed to  under-disbursement from the loan for training . When the IBRD withheld financing on the grounds that IVTB had not followed Bank procurement procedures, IVTB obtained its own financing . Despite slow disbursement and problems arising from lack of accountability for the project within IVTB , appointment of a project coordinator to facilitate implementation did not occur until three years after the project start (1994). The ICR points out that the absence of a project coordinator was due to the desire to integrate project management into the ongoing activities of IVTB rather than set up a separate project management structure. OED finds that this is not a sufficient explanation for tardiness in making better arrangements for project coordination, especially when implementation problems and delays persisted . The job classification component was too narrow to meet all information . (e) Supervision reporting did not present an accurate picture of implementation progress and performance : Despite serious disagreements on policy issues, ITVB's failure to adhere to Bank procurement procedures and disbursement delays and loan cancellation, supervision reports continued unrealistically to rate the project as satisfactory until March 1998. 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Unsatisfactory Marginally The rating of outcome is problematic Unsatisfactory because ITVB succeeded as a training provider and some other components were at least partially successful . However, much of the financing provided remained unused because of the disagreements on training responsibilities for ITVB and the private sector . OED's rating takes into account the learning experience which the borrower found valuable, as well as the positive impact of technical assistance. Institutional Dev .: Partial Modest Sustainability : Likely Likely Sustainability is likely on financial and technical grounds, though, judging by previous experience, a change of government and policy or an economic downswing could render prospects uncertain in the future. Bank Performance : Deficient Unsatisfactory Borrower Perf .: Deficient Unsatisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : The ICR derives broad lessons from all three projects : the need for a national consensus on education policies and strategies that transcends governments and unites all stakeholders; the importance of agreement on sector policies in advance of sector investments; and the need for clearly defined implementation procedures . OED strongly agrees with the ICR conclusion that management needs to strengthen its procedures for monitoring and reviewing supervision reporting when projects with serious implementation problems continue to receive satisfactory ratings . IBRD needs to adequately analyze the risks of lack of consensus among all stakeholders from both the public and private sectors on critical policy issues related to project activities and devise effective measures to address them before Board approval of lending . When experienced and assertive stakeholders and beneficiaries fail to agree on the use prospective IBRD funds, the Bank needs to consider whether a loan is the appropriate means of pursuing its education sector strategy in the country at that time . Either the borrower must resolve the issues internally or it should invite the Bank to participate in policy clarification and conflict resolution . If the borrower accepts the terms of lending, it is responsible to its citizens for using the funds as agreed . If the Bank approves a loan, it is responsible for making, clarifying and adhering to agreements about how they will be used and should not change course to follow a competing agenda. Should be borrower's needs change, the Bank must exercise responsible leadership in restructuring or terminating the project expeditiously . If the Bank agrees to help in policy clarification and conflict resolution when a lending program is absent, it needs to find ways of providing technical services that are not subsidized through assistance to projects in preparation or under supervision . In this case, two factors raise doubts about the project's justification at  appraisal: the Government's subsequent request to cancel loan funds, and the ITVB's ability to achieve priority goals using its own or other sources of financing . the questions arise whether the Bank would have been prepared to offer technical services free to a country such as Mauritius, and whether the government would have been willing to pay for the Bank's technical services . Willingness on both sides would be a remarkable demonstration of continued commitment to forging a sustainable policy for vocational and technical education and a mutual vote of confidence in the future of the relationship between the Bank and the borrower . 8. Audit Recommended? Yes No 9. Comments on Quality of ICR : Although the overall quality of the ICR is satisfactory, the evidence in the main text of the ICR is not always complete. For example, inconsistencies and gaps in information and evidence about the role of IBRD financing in achieving project objectives and outcomes leave the reader with a sense of missing vital information. The completion mission's aide-memoire and the Borrower's contribution to the ICR provide some clarifications and the executive summary presents a more coherent and complete story of project implementation and the relative contribution of IBRD financing to the achievement of objectives and outcomes . These differences in evidence, and emphasis in the various sections of the ICR weaken the coherence of its analysis and its power to be fully convincing .