Announcement of Five Million Seven Hundred Thousand US Dollars Education Loan and Two Million Seventy-Five Hundred Thousand US Dollars Technical Assistance Loan to the Sultanate of Oman on April 19, 1974

.<."''°\:. ,s•ONAL J1/23- ,\,... "' ~ 0'1' !WORLD-BANK I • 1818 H STREET, N.W., WASHINGTON Bank Press Release 74/23 D. C. 20433 TELEPHONE: Subj_ect: EXECUTIVE 3-6360 $5. 7 million education loan and April 19, 1974 $2. 75 million technical assistance loan to the Sultanate of Oman The World Bank has approved two loans totaling $8.45 million to assist Oman in overcoming the constraints in the way of its development -- shortage of trained manpower, essential institutions and procedures. A loan of $5.7 million will help the government in expanding and modernizing the country's education system and in training the staff required by the developing economy. The project is part of an integrated program of assistance by the Bank, United Nations Development Programme (UNDP) and the British Overseas Development Administration (ODA). A loan of $2.75 million will finance a technical assistance project designed to provide. teams of specialists for economic planning and for the management of · the agricultural and transportation sectors. The project is being carried out in • association with the Kuwait Fund for Arab Economic Development. The two loans are the first operations for the Bank Group in Oman which is just entering the industrial age. Although Oman has drawn considerable revenues from oil exports which began in 1967, the country is still on the threshold of develop- ment. The Government's strategy consists of employing oil revenues for the develop- ment of infrastructure, agriculture, and human resources. The World Bank's lending activity in Oman will be used primarily as a vehicle for the creation of essential institutions and for the provision of t~chnical assistance in preparing and implemen- ting development projects rather than capital transfer. It is not expected that Bank loans will result in any net capital transfer to Oman since the Government has already initiated a program of purchases of World Bank Bonds. $5. 7 million loan for Education Shortage of qualified manpower is u critical constraint in the way of economic development in Oman. The modernization of the education system was initiated in 1970. Junior secondary ·education, covering grades 7 to 9, was introduced to Oman in 19 72. A Ministry of Education was created in J.971 and broad education goals were devised. • Note: Money figures are expressed in US dollar equivalents  , P.R. 74/23 - Oman - 2 - The project being assisted by the Bank in .cooperation with the UNDP and the ODA • is designed to deal with the most pressing qualitative problems of the education sector. It will provide facilities to initiate teacher training, basic education for adults and overage youths agricultural training in Oman, and will help improve the country's capacity to plan and manage its education system. The project. in- cludes the construction and equipping of four schools, a primary teacher-training institut,e, two basic education centers and an agricultural secondary school and technical assistance. The project is scheduled for completion in 1979 at a total estimated cost of $11.1 million. The Bank loan of $5. 7 million will meet about 51% of the cost of che project, including $4.3 million of the foreign exchange cost of $7.8 million. The Bank loan is for a term of 20 yearu, including 5 years of grace, with interest at 7-1/4% per annum. The United Nations Educational and Scientific Organization (Unesco) joined the Bank in identifying and preparing the project under the Bank/Unesco Cooperative Program. Unesco will be the Executing Agency for the technical assistance financ8d • by UNDP. $2.75 million loan for technical assistance The loan will finance the provision of teams of specialists for economic planning and for the management of agri,.;ultural and transportation sectors. The project is expected to be completed in 1977 at a total estimated cost of $5.9 million. The Bank loan to Oman is for a term of 10 years, including 3 years of grace, with interest at 7-1/4% per annum. Chemical Bank, New York and Banque de l'Indochine, Paris are TJarticipating in tl-ie Worlrl Bank loan. - 0 - •  FOR • I\J 1618 H STREET, N.W., WASHINGTON DEVELOPf\1El'~T D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 TECHNICAL DATA PROJECT: Education COUNTRY: Sultanate of Oman TOTAL COST: $11.l million BANK FINANCING: $5.7 million, 20 years, including five years of grace, interest 7-1/4% per annum OTIIER FINANCING: Government of Oman, United Nations Development Programme (UNDP) and the British Overseas Development Administra- tion IMPLEMENTING ORGANIZATION: Project Unit, Ministry of Education, Government of Oman, • Oman PROJECT DESCRIPTION: Construction and equipping of the country's first primary teacher training institute, two pilot basic education training centers and the country'n first agricultural secondary school. Te~hnical assistance under the p·roject will cover provision of principal officers of the project implementation unit and education consultants; project institution staffing and counterpart training; and Unesco advisory group to advise the Ministry of Education on school building design and construction and the impYovement and planned development of the educa- tion sys tern. PROCUREMENT: International co~et1t1ve bidding will be undertaken for project items. Contracts for construction and for supply of furniture and equipment will be awarded in conformity with the Bank's Guidelines for Procurement. Furniture and equipment items· will be grouped to the extent pn.. cticable to form sizeable bid packages and to permit bulk procurement. For the purpose of comparing foreign and local bids, manufacturers of furniture in Oman will be awarded a margin of preference equal to the existing rate of customs duty generally applicable to competing imports or 15% of c.i.f. prices, whichever is lower. CONSULTANTS: Consulting architects, acceptable to the Bank, will be appointed under terms and conditions agreeable to the Bank, to design and supervise the construction of the proposed project facilities. • Individual experts will be recruited for the project implementation unit . ESTIMATED COMPLETION DATE: 1979  t PROJECT: TECHNICAL DATA Technical Assistance • COUNT-RY: Sultanate of Oman TOTAL COST: $5. 9 million BANK FINANCING: $2. 75 million, 10 years including 3 years of grace, interest 7-1/4% per annum OTHER FINANCING: Government of Oman and the Kuwait Fund for Arab Economic Development IMPLEMENTING ORGANIZATION: Minintry of Developmenti Ministry of C',onnnunications and Public Services= Government of Oman, Oman PROJECT DESCRIPTION: Provision of assistance to the Government in improving its capacity to administer and manage its economy. It includes the pre . ;_sion ot three special teams dealing with economic planning and management; agriculture and transportation. PROCUREMENT: All vehicles and other equipment required for the project will be provided by the Government, which will follow its usual • procurement procedures ESTIMATED COMPLETION DATE: 1977 •