Malawi - Second Education Project

'ILE Copy Report No. 877-MAI Appraisal of a Second Education Project in the Republic of Malawi October 28, 1975 Education Projects Division Eastern Africa Regional Office Not for Public Use Document of the World Bank This document has a restri ted dlistribution and may be used by recipients only in the performan(c of their OffiL ial dutie'S. Its (O ntolIts may llOt otherwise be disc lsed without World Bank autho)rization.  CURRENCY EQUIVALENTS US$1 = 0.83 Kwacha (MK) MK1 US$1.20 MEASURES 1 Meter (m) - 3.28 Feet 1 Square Meter (m2) 10.76 Square Feet 1 Kilometer (km) = 0.6214 Miles 1 Hectare (ha) = 2.471 Acres GOVERNMENT OF MALAWI FISCAL YEAR April I - March 31  REPUBLIC OF MALAWI APPRAISAL OF A SECOND EDUCATION PROJECT Table of Contents Page No. BASIC DATA GLOSSARY SUMMARY AND CONCLUSIONS ............ .. ............... i-iv I. INTRODUCTION ..................................... ... 1 II. DEVELOPMENT AND HUMAN RESOURCE NEEDS ................ 1 Background ......................... ................. 1 Economic Development .................... 2 Manpower Requirements ............................... 2 III. THE EDUCATION AND TRAINING SECTOR .................. . 4 Evaluation of the Sector ...... ...................... 4 Educational Policies, Strategy and Plans .... ........ 5 Investment Program .................................. 7 IV. THE PROJECT...... 8 General ............................... . ...... . 8 Project Items ....................................... 9 Primary Schools ............................... . 9 Rural Education Centers ...... .................. 10 Primary Teacher Training College ............. 11 Secondary Schools ....... ....................... 12 Project Implementation Unit ........ .. .......... 13 Pre-investment Studies ...... ................... 13 V. COST ESTIMATES, FINANCIAL PLAN, IMPLEMENTATION, PROCUREMENT AND DISBURSEMENTS ................... .... 13 Cost Estimates ...................................... 13 Customs Duties and Taxes ................... .... 15 Contingencies Allowances ... .................... 15 Financial Plan ................................ .... . 16 Implementation ................... ................... 16 Procurement ............................. ............ 17 Disbursements ................... .................... 18 This report is based on the findings of a mission in March 1975 to Malawi composed of Messrs. R. Loken (general educator), K. Andersen (architect) and Mrs. S. Asher (economist) of the Bank.  TABLE OF CONTENTS (Continued) VI. BENEFITS AND JUSTIFICATION ........................... 18 VII. AGREEMENTS REACHED AND RECOMMENDATION .... ............ 20 APPENDIXES: I. Educated Manpower Requirements II. The Education and Training System ANNEXES: 1. Employment Structure by Sector, 1971-74 2. Past and Projected Primary and Secondary Enrollment 3. Actual and Projected Enrollment at the University of Malawi 4. Teacher Requirement and Supply, 1975-85 5. Central Government Recurrent Expenditure on Education and Training, 1970/71-1985/86 6. Estimated Project Cost by Type of Expenditure 7. Summary of Enrollment and Estimated Project Cost 8. Implementation and Disbursement Schedules 9. Project Implementation Unit's Staff and Cost 10. Estimated Schedule of Disbursements Comparative Education Indicators CHARTS: 1. Education Pyramid 1973/74 World Bank 9827 2. Education System, 1974 World Bank 9820 MAP IBRD 11632R Key to Map  REPUBLIC OF MIALAWI BASIC DATA (EST.) - 1974 General 2 Area 1 18, 5oo r2 - land only 9,000 Km2 Population 5.0 million - Annual growth rate 2.6% Per Capita Income US$ 105.0 Literacy rate 25-0% Education Enrollment in Primary Schools (Grades 1 - 8) 606,100 - as % of 6 - 1l age group 56.0% (gross) Enrollment in Secondary Schools (Grades 9 - 12) 1L,2 00 - as % of 15 - 18 age groun p.0, Enrollment in tUniversity of lIalawi 1,100 Recurrent Expenditure of IMlinistry of Education MK 11 .3 million - as % of Gov't Recurrent ExDenditure 15.5% Recurrent Exnenditure on Education and Training MK 15.2 million - as % of Gov't Recurrent Expenditure 20.9,. Total Expenditure (Canital and Recurrent) on Education and Traininc as ,' of GDP 3 .1 %  GLOSSARY CHSE - Cambridge Higher School Certificate DANIDA - Danish International Development Agency ET - Executive Teacher (Junior Secondary School Teacher) HILMP - High and Intermediate Level Manpower JC - Junior Secondary School Certificate LC - Local Council (The Local Administrative body for each District) MANR - Ministry of Agriculture and National Resources MCDSW - Ministry of Community Development and Social Welfare MCE - Malawi Certificate of Education (Secondary School Leaver's Certificate) MOE - Ministry of Education MS - Manpower Survev NRDP - National Rural Development Program (a twenty-year rural improvement plan) REC - Rural Education Center T2 - Primary School Teacher with two years post-secondary training T3 - Primary School Teacher with two years post-JC training T4 - Primary School Teacher with two years post-primary training USAID - United States Agency for International Development  REPUBLIC OF MALAWI APPRAISAL OF A SECOND EDUCATION PROJECT SUMMARY AND CONCLUSIONS i. This report appraises a second education project in Malawi for which an IDA credit of US$11.6 million equivalent is proposed. The first project (Credit 102-MAI signed in 1967) assisted primary teacher training and secondary education and is now virtually complete. The teachers' college and the second- ary schools are in operation. The objectives of the first project to improve the quality of primary teacher training and to introduce practical studies into the secondary school curriculum have been achieved. As savings were realized, the scope of the project was broadened to include a new Telecommu- nication Training Center in Blantyre to serve the needs of Malawi, Botswana, Lesotho and Swaziland. ii. Starting from a low base at Independence in 1964, Malawi has made notable progress in education. The expansion of school enrollment has been particularly remarkable, especially at the lower level where 56% of the 6-14 age group are enrolled. However, enrollment in secondary schools represents only 4% of the relevant age group and has increased at less than 5% p.a. in recent years. On the other hand, training programs in agriculture, industrial skills and health are expanding fairly rapidly and the University of Malawi is gradually developing its facilities in line with estimated high level manpower requirements. The Ministry of Education is well staffed and organized but has been slow in introducing needed changes in some of the programs of study. Ninety percent of the population is dependent on farming and there are numerous nonformal training programs in fields such as health, agriculture and community development which are now being coordinated under the National Council for Education and Training with a view to increasing their effective- ness and assisting the development of skills applicable to rural occupations. iii. In recent years the Government has undertaken a program designed to improve the effectiveness of the educational system and to make it more respon- sive to Malawi's needs. This program gives priority to: (a) the improvement of primary school buildings; (b) the introduction and expansion of practical subjects in secondary schools; and (c) the improvement of both in-service and pre-service teacher training. In addition, rural education and training programs will be strengthened, greater efforts than in the past will be made to increase the proportion of girls in secondary schools, and curricula and teaching methods will be reviewed and updated throughout the sector. iv. The proposed project would assist in: (a) the strengthening of the on-going rural education programs; (b) the improvement of the primary school structures which are built by communities and local authorities; and (c) the expansion of primary teacher training facilities and secondary school enrollments with particular emphasis on schools for girls. It would consist of:  - ii - (a) Buildings, furniture and equipment for the following institutions: - 22 new rural education centers; - 22 new primary schools; - one new primary teacher training college and one demonstration school; and - additions to seven secondary schools. (b) The cost of professional services, technical assistance and other operational expenses for project administration and for the preparation of future education projects. The new and expanded institutions would increase existing capacity by about 11,500 places. In addition, approximately 20,000 rural adults would be served annually by part-time training programs. This expansion is geared to specific manpower needs and the entire program would conform to present and projected constraints in terms of availability of both instructors and finance. As the proposed project would promote several changes in educational programs, it would be monitored by the Program Evaluation Unit within the Ministry of Education throughout the implementation period and thereafter. V. The Government is giving high priority to rural development and several agricultural projects are in progress. 1/ While the agricultural extension service supports these projects, few facilities exist to provide training for rural adults which would lead to self-employment and improvement in rural skills. The proposed Rural Education Centers (RECs) would partially meet this need and would become the basis for the development of a nationwide rural adult education program. Each Center would provide facilities for train- ing about 1,000 adults annually in rural skills, farm equipment repair, domestic science, nutrition and health on a short-course basis. The Centers would also provide a means of coordinating the on-going programs aimed at rural adults by various Ministries and would be used by adults in the afternoons and primary school students in the mornings. Each Center would provide the basic services and facilities to support most of the nonformal learning programs in each District, including programs in health, nutrition, agriculture, com- munity development and education. The youth and adult populations in each District vary from 75,000 to 150,000, thus providing a large pool of poten- tial trainees for the Centers. 1/ There have been six IDA credits for agricultural development in recent years (FY 1968 - FY 1976).  - iii - vi. Most of Malawi's 2,000 primary schools were built under self-help schemes and the standards of design and the quality of construction of these buildings are often poor. Many primary schools are inadequate for instruc- tional purposes because they consist of mud-brick buildings with little or no window space and are devoid of essential furniture, didactic material and books. Under the proposed project, the Government would construct and equip 22 model primary schools, to serve as prototypes which the villagers in the surrounding area could copy. Standard designs would be developed and construc- tion of the replicas of these prototypes would be carried out by the villagers under the supervision of a building technician. The construction of these 22 prototype schools, the provision of educational materials and equipment and the planned subsequent assistance to local self-help efforts would aid in improving the quality of primary education and help reduce dropout and repeater rates. vii. One-fifth of Malawi's primary school teachers have no professional training and are not qualified by Malawi standards. Most of these teachers, however, are enrolled in in-service training programs. An annual output of about 1,000 teachers is required to provide for the losses through attrition and the needs of planned expansion. The present capacity provides an output of about 700 teachers p.a. In order to help meet the needs, the proposed project would increase the annual output of trained teachers by 200 in addition to the 300 teachers p.a. who are completing up-grading training through the Malawi Correspondence College. viii. The secondary school enrollment in 1974 was about 14,000 and the rate of growth in recent years has been about 5% p.a. The Government has found it necessary to limit this rate of growth for the immediate future because of financial constraints and the limited supply of teachers. The output is far below the number required to supply the needs of the labor market and to provide students qualified for post-secondary education. Girls have been particularly disadvantaged in the competition for the limited number of places available in secondary schools and as a result, there are too few educated women to meet requirements in nursing, teaching, nutrition and other professions. Through the expansion of six secondary schools for girls and one coeducational school, the proposed project would provide 1,600 places for girls and 200 for boys. These additions would include the provision of the facilities required to teach practical studies. ix. The proposed project is part of a long-term program and would include the cost of the specialist services necessary to conduct the feasibility and architectural studies to expedite preparation and implemen- tation of the next project. Since the Project Implementation Unit, established in 1967 to administer the first education project (Credit 102-MAI) was largely dismantled when that project neared completion, this Unit would be reactivated to ensure implementation of the proposed second project. The Unit would oversee the implementation of the project, train counterparts to replace the expatriate architects and procurement specialist, help establish an effective school building unit and assist in standardizing economical education facilities.  - iv - x. Contracts for civil works, furniture and equipment would be awarded on the basis of international competitive bidding in accordance with the Bank's Guidelines for Procurement, except as follows (i) contracts for instructional equipment, books and furniture costing less than US$50,000 equivalent each; (ii) civil works contracts costing less than US$200,000 equivalent; and (iii) locally procured construction materials and transportation services costing less than US$50,000 equivalent each contract. Contracts for items (i), (ii) and (iii) above would be placed on the basis of locally advertised competitive bidding conforming to local procedures which are acceptable to the Association. This is justified because there is adequate competition and, due to the small amounts and the variety of the lots involved, these contracts are not likely to interest foreign suppliers and/or contractors. xi. The benefits of the proposed project would be: (a) the provision of education and training for rural adults to increase their productivity and to prepare them for self-employment; (b) the expansion of practical subjects in primary and secondary school curricula; (c) the increase of the proportion of girls in secondary schools from the present 25% to 35% by 1980; (d) the improvement of design, building standards and quality of primary schools; and (e) the increase in the supply of qualified primary school teachers. These benefits indicate the suitability of the proposed project as part of the country's overall strategy to improve the productivity of the agricul- tural sector, raise the living standard of the rural population, increase the contribution of women to the development process and improve the effi- ciency of the education system. xii. The total project cost is estimated at US$15.0 million equivalent including taxes of US$0.50 million equivalent, with a foreign exchange component of US$7.5 million equivalent. The IDA credit (US$11.6 million equivalent) would meet 77% of the total estimated cost including taxes or 80% excluding taxes. The Government would provide the additional funds required (US$3.4 million equivalent), which represent about 45% of the local currency expenditures. xiii. The proposed project is suitable as a basis for a Development Credit of US$11.6 million equivalent to the Republic of Malawi.  I. INTRODUCTION 1.01 Since Independence in 1964, Malawi has made creditable progress in the development of its education sector. The 1973-80 educational plan, which is prudently related to expected increases in Government revenue, allows for a conservative but steady expansion in enrollment at all levels of the system. Since 90% of the population is still dependent on agriculture, the plan places particular emphasis on the expansion of educational opportunities in rural areas. In support of this plan, the proposed project would provide 22 rural education centers, 22 prototype primary schools, a new primary teacher training college including a demonstration school, and practical studies facilities and science laboratories for seven secondary schools, all of which would be adjacent to agricultural development project areas. The proposed project supplements the assistance provided in the first education project (Credit 102-MAI, 1967) which included a primary teacher training college and practical studies facilities for 12 secondary schools. The objectives of the first project were to improve the quality of primary teacher training and to introduce practical studies into the secondary school curriculum. These objectives have been achieved. The college and all schools are operating satisfactorily. As savings were real- ized, the scope of the first education project was broadened in 1973 to include the establishment ot a Telecommunication Training Center at Blantyre; the construction and equipping of this Center is nearing completion. The Center will also serve the training needs of Botswana, Lesotho and Swaziland. 1.02 Subsequent to Bank missions in April and November 1974 to review Malawi educational plans and priorities, a mission composed of Messrs. R. Loken (general educator), K. Andersen (architect) and Mrs. S. Asher (economist) simultaneously prepared and appraised the project in March 1975. II. DEVELOPMENT AND HUMAN RESOURCE NEEDS 2.01 Background. Malawi is a small landlocked country in southeastern Africa. One-fifth of its area is covered by Lake Malawi. Its estimated 5.0 million population, confined to a land area of only 94,000 sq. km., is growing at the rate of approximately 2.6% p.a. The population is scattered and there are only a few urban concentrations. The rural-urban migration has proceeded at the comparatively low rate of 3.6% p.a. in recent years and the Government is making determined efforts to develop the agricultural sector in order to help improve living standards in rural areas. The soil and climate are well suited to agricultural production and the varying altitudes (from 1,500 to 5,000 ft.) permit the growth of a wide range of agricultural produce. 2.02 The per capita GDP was US$105 in 1974. Since 1964 GDP has grown at an average rate of 8% p.a. in real terms. This growth has resulted primarily from the expansion and diversification of agricultural production and exports, the establishment of manufacturing industries and the increases  - 2 - in construction activity. Agriculture still accounts for more than 45% of GDP and smallholder production dominates the agricultural sector contributing 87% of total agricultural output. The Government has launched several large- scale agricultural development projects which have assisted in increasing the productivity of smallholders by the introduction of improved farming methods and equipment. The basic food crop is maize, and the principal export crops are tobacco, tea, groundnuts, cotton and sugar. The Ministry of Agriculture and Natural Resources (MANR) administers a farmer training and extension program which reaches 80,000 farm families p.a. and further expansion of the program is planned. The Malawi Young Pioneers Program, directed at primary school leavers, trains 3,000 young farmers p.a. in agricultural and rural-vocational skills. 2.03 Economic Development. When Malawi became independent, it was the poorest of the territories of the former Central African Federation. However, through careful management of the economy, significant improvements in roads and communications and development of the agricultural sector, remarkable economic progress has been made and, since 1973, the country no longer requires external assistance for recurrent expenses. The "Statement of Development Policies" of 1971 emphasizes that the development of agriculture and the rural areas is "the cornerstone of Malawi's development strategy." The major thrust of the investment program in roads, education and agricul- tural projects has been in support of this strategy. 2.04 Manufacturing, though still not a large factor in the economy, is one of the most rapidly growing sectors and has expanded at the rate of 12% p.a. during the last four years. It is based on the processing of agricultural products for export, but the production of consumer goods for the domestic market is becoming increasingly important. The establishment of new industries is geared to the availability of skilled workers, the diversification of sources of foreign investment and the encouragement of labor-intensive plants. This rapid growth of the modern sector has ac- celerated the demand for skilled and semi-skilled labor. 2.05 Recent examinations of economic indicators point to continued favor- able economic growth. In the agricultural sector, several major projects are being implemented and others are in the final planning stage. In manufacturing, new investments are planned in sugar processing, pulp and paper factories and food processing. If financing is available, the principal constraint on the implementation of these projects would be the shortage of skilled local man- power to execute and operate them. 2.06 Manpower Requirements. In 1974 the labor force was estimated at 1.5 million. Of these, 15% (223,000) were employed in establishments with 20 or more employees. In addition, 300,000 workers were engaged in smaller enterprises and 275,000 miners were employed for wages outside the country. Extrapolations of the 1971 manpower survey figures indicate that in 1974, 60,200 of all wage earners within Malawi were High and Intermediate Level Manpower  (HILMP) 1/ engaged primarily in services and more or less equally distributed between the public (54%) and the private (46%) sectors (Annex 1). 2.07 The 1971 Manpower Study also projected that the 1974 HILMP stock should ideally comprise 30% instead of 27% of total wage employment in order to carry out the country's economic activities effectively. The survey fore- cast that by 1980 the difference between the available and the required HILMP would increase from 3% to 35%. In particular, it warned that in the 1974-81 period, the shortages of senior and junior secondary school leavers would increase from 6% to 37% and 12% to 64% respectively. The Bank Group staff made alternative projections applying different sets of assumptions and covering a longer period up till 1985/86 (Appendix 1). Among the various projections, even the lowest showed a significant shortage of HILMP. It compares with the 1971 survey as follows: Shortage of HILMP (Z) 1980/81 1985/86 Bank staff Bank staff 1971 Survey Estimate Estimate Senior Category (degree holder) 30 6 13 Intermediate Category (Sr. Sec. Certificate) 37 10 8 Skilled Category (Jr. Sec. Certificate) 64 34 43 2.08 A new manpower survey will be carried out in 1976 and its results will be available in late 1977-early 1978. It is apparent however that nearly 20 years will be necessary to produce an adequate stock of trained local man- power. Other salient characteristics of the manpower situation in Malawi are the predominance of male workers in HILMP, the large number of unqualified teachers and the high dependence on expatriate manpower, particularly in the private sector (30%) and the senior occupational category (75%). In 1974 out of 223,000 employed, only 10% were females who were engaged primarily in nursing and teaching. In 1974/75, there were 11,000 teachers in assisted primary schools, out of which 20% had received no pedagogical training. Of the 700 secondary school teachers, 270 were expatriates. 2.09 The future requirements and supply of trained agricultural manpower were projected by the Ministry of Agriculture and National Resources (MANR) in 1971 and more recently in early 1975. These projections indicate that 1/ The workers who have the educational qualification of at least a junior secondary school certificate (JC).  the supply of field assistants (certificate holders) from the agricultural schools including Colby College will be adequate to meet present and future requirements. They have further forecast that Malawi would be able to gradually reduce the average number of farm families served by a trained extension worker from 2,000 at present to 500 by 1985. On the other hand, the recent MANR study has shown that agricultural manpower at the professional (degree holders) and technical (diploma holders) levels will remain a constraint for some time. At present about 20% of the high level positions (a total of about 500) are filled by expatriates. 2.10 In sum, for many years Kilawi will be unable to replace expatriates and have an adequate supply of traLned local manpower for the development of the main economic sectors. A possible solution to the projected manpower shortages would be to make improved use of the primary school leavers; to this effect, present minimum employment qualifications which require junior secondary education for most occupations, may need to be reconsidered. The Government confirmed its intention to review manpower training plans and ensure effective utilization of manpower and to exchange views with the Association on these matters. Also, while the formal education system is being expanded, nonformal training, such as apprenticeship program and rural skill training schemes, should be improved as an alternative means of providing skilled manpower. III. THE EDUCATION AND TRAINING SECTOR 3.01 Evaluation of the Sector. The education and training system of Malawi is described in Appendix II and relevant data are summarized in Annexes 2, 3 and 4. The formal system includes a primary education course in two cycles of five and three years each, followed by four years of secondary education and post-secondary and university courses of various duration. From the point of view of organization and administration, the formal educa- tion system in Malawi is one of the best-run in East Africa. Teacher training, inspection, supervision and curriculum development are well managed and effec- tively operated. However, the numbers of qualified teachers and students enrolled are both short of the country's needs (paras. 2.07-2.08). At present, the gross enrollment ratio for primary schools is 56%, but only 4% of the 15-18 age group are in secondary schools. 1/ Although curricula and teaching methods have been revised in recent years, only a limited number of primary and secondary schools have the facilities necessary to teach the new programs. The situation is particularly difficult in primary education where schools have been built by the villagers themselves without technical guidance; often the classrooms consist of mud-brick buildings with insufficient window space containing little or no furniture or didactic materials. Under these cir- cumstances, very little learning is possible which accounts partly for the 1/ This ratio in other African countries with comparable GDP per capita is: Kenya 12%; Ethiopia 6%; and Zaire 10%.  - 5 - high dropout rate; only 40% of those starting grade 1 complete grade 8. In addition, the lack of facilities has retarded the introduction of courses in crafts, domestic science and agriculture in grades 4-8. At the secondary level, only 12 of the 60 existing schools have been equipped for the teaching of practical subjects promoted by the first IDA education project. 3.02 As described in Appendix II, paras. 24-33, there are several non- formal and accelerated training programs under various Ministries and para- statal agencies as well as a well-organized apprenticeship program. One of the principal weaknesses in the sector has been the lack of coordination of these activities with the programs under the Ministry of Education (MOE). Duplications have occurred in several areas because of the scattered nature of the various initiatives, and gaps still exist in spite of the numerous efforts to promote nonformal training schemes. As a consequence, a compre- hensive rural skill training program directed at the adult rural population is yet to be developed, even though there are various uncoordinated training schemes aimed at this target group. A National Council for Education and Training was appointed recently to plan and coordinate these programs. The Council includes representatives from the Ministries of Health, Agriculture, Community Development, Labor, Local Government and the President's Office and is chaired by the Permanent Secretary for Education. The Council meets quarterly to review education and training programs, to recommend actions and to oversee progress. While the Council's authority is limited, its influence is increasing and duplicate programs are being consolidated. 3.03 The importance of the training activities outside the MOE is reflected by the fact that only some 70% of Government recurrent expenditure on education is channelled through this Ministry. Total recurrent expenditure on education and training is about 21% of the Government budget--a proportion which compares well with those in neighboring countries and is an indication of the Government's desire to keep the growth of educational expenditure under control. Educational Policies, Strategy and Plans 3.04 The objectives of educational development in Malawi are outlined in the 1973-1980 education plan and include the following principal aims: (a) to improve access to education and expand educational opportunities; (b) to reorient the content and increase the effectiveness of educational programs; and (c) to provide the country with the trained personnel which would meet the various levels and types of manpower requirements. 3.05 To improve access to education and expand educational opportunities, the Government strategy gives priority to: (i) the growth of primary education; (ii) the improvement of secondary schools in rural areas; and (iii) the strengthening of the various nonformal programs operated outside the formal education system. After several experiments, the optimum length of the primary school cycle is still under review (Appendix II, para. 12). In practice there is a clear exit point at the end of five years. In 1972, the Government doubled the school fees at Grade 6 and reinstated the Grade 5 school leaving examination to ensure that the Grade 5 cut off point would be effective.  - 6 - It is expected that by 1985, 100% of the 6-10 age group would be enrolled in grades 1-5 and 70% of the 6-14 age group would attend the full eight-year primary school cycle. The Government's targets, although ambitious for a country of Malawi's level of development, can be achieved within the limits of available recurrent finance (para. 3.08). The main constraints to their attainment are the inadequate supply of qualified primary school teachers, insufficient quantity and quality of primary school facilities, and the high dropout and repeater rates resulting in part from the lack of teachers and of appropriate school buildings and equipment. Expansion of secondary education would not exceed 6% p.a. primarily because of the need to rely on expatriate teachers who are in short supply and, according to plans, would not be replaced by Malawians before 1990; at the same time, expansion and improvement of the secondary school facilities would be directed to redress inequalities in opportunities. The strengthening of the on-going nonformal education programs would be achieved through improved coordination under the National Council for Education and Training depicted in para. 3.02 and through the provision of facilities to be used jointly by the Ministries and agencies in charge of these programs. At present, 30% of the Malawian adults are reached by nonformal education schemes; it is expected that this proportion will increase to about 60% by 1985. 3.06 To reorient the content and increase the effectiveness of the educa- tion programs, the Government plan gives priority to the revision of curricula and teaching methods in both primary and secondary schools. In particular, the Curriculum Development Unit and the Program Evaluation Unit of MOE have assessed the programs of practical studies introduced in the late 1960s at both levels and are formulating updated syllabi based on this evaluation. In addition, the assessment has indicated that: (i) at the primary level, school facilities require improvement in order to teach agriculture, crafts and domestic science in grades 4 to 8 which can be brought about only if the Government provides technical and Einancial assistance to the local communi- ties; (ii) at the secondary level, the teaching of practical subjects has to be promoted gradually in line with expected availability of instructors. There- fore, at this stage, the Government education strategy calls for (i) the establishment of prototype primary schools to be imitated by the villagers and the provision of roofing and frame materials together with technical advice to encourage replication of the prototypes under self-help schemes, and (ii) the continuation of the program to introduce practical studies in secondary schools so that it will cover 40% of the secondary education enroll- ment in 1980 as against 20% in 1975. With the first and the proposed second education projects assisted by IDA, 30% of projected 1980 secondary school enrollment would be in schools equipped for the teaching of practical subjects. In addition, 13 schools with a total enrollment of 3,100 students are being supplied with equipment for instruction in crafts, agriculture and domestic science under bilateral agreements. 3.07 To provide the country wLth trained personnel which would meet the various types and levels of manpower requirements, the strategy calls for the expansion of the University of Malawi to an enrollment of 2,200 in 1985 (1,100 in 1974), including expansion of the Polytechnic to reach 600 in 1985 (300 in  - 7 - 1974) and the Bunda College to reach 450 in 1985 (200 in 1974). The Colby College of Agriculture under the MANR would be increased to a 400 student capacity from 150 in 1974 (for financing see paras. 3.08-3.09). Shortage of staff prevents a more rapid growth. Reforms and improvements in curricula, staffing and teaching methods are under way at both colleges. At the secondary level, the Government intends to promote only a moderate expansion of enrollment for the reasons outlined in the previous paragraph and in addition, before programming a major expansion, the Government plans to review employ- ment qualifications (para. 2.10) and complete a tracer study of school leavers' performance in the labor market which would be part of the project and carried out with Bank Group staff support. On the basis of these studies and of the proposed 1976 manpower survey (para. 2.08), present targets for secondary education growth are expected to be reviewed in the late 1970s. To provide skilled and semi-skilled workers for the growing industrial sector (para. 2.04), the Government foresees a gradual expansion in enrollment of the existing technical schools (Appendix II,para. 17) in line with the availability of instructors; more importantly, the apprenticeship program is expected to increase from an enrollment of 600 in 1974 to over 1,000 in 1980 (Appendix II, para. 30). 3.08 The financial implications of this strategy have been worked out in detail. If Government recurrent expenditure increases by 5% p.a. in real terms which is the government's target, the share of the MOE expenditure would be 18% in 1985. Including expenditure on training and nonformal learn- ing schemes by other Ministries and agencies, total education expenditure would require 24% of the recurrent budget in 1985 (Annex 5) which is a reasonable proportion. On the other hand, if total Government recurrent expenditure were to increase by 8% p.a. in real terms which is more realistic, the share of total expenditure for education and training would still be about 19% in 1985. This indicates that greater efforts to expand and improve education opportunity would be within Malawi's financial capacity. 3.09 Investment Program. The Government investment program in education is based on the strategy described in the preceding paragraphs and is designed to meet the following priorities: (a) Expansion and improvement of primary schools, initiated through the construction by the Government of replicable prototype schools and with technical guidance to assist the self-help efforts of the villagers, and financial assistance from the District Councils; (b) Expansion and rationalization of primary teacher training through the construction of a new college which would provide additional supply in line with estimated needs and later replace existing small and inefficient teacher training institutes operated by missionary societies (Appendix II, para. 20);  - 8 - (c) Expansion of the University of Malawi, the Polytechnic, the existing agricultural colleges and the apprentice program to help meet demands for professional and technical manpower; (d) Improvement and moderate growth of secondary education to be achieved by the extension of existing schools; and (e) The start of a comprehensive program of adult education through coordination of on-going schemes and the provision of vital support facilities in all the Districts. The total cost of this investment program from 1975 to 1980 is estimated at about MK20.0 million. Of this total, bilateral agencies (principally, USAID, the Danish Agency for International Development and the British Ministry of Overseas Development) are providing about MK6.3 million to assist the development of professional and technical training under (c) above. The other areas of the program would form part of the proposed second education project for which IDA support is proposed. 3.10 As the investment program would promote improvement in the organi- zation of nonformal education and in curricula and teaching methods in the formal education system, careful evaluation of its impact is required so that its educational specifications can be revised if needed. For this purpose, the Government has strengthened the Program Evaluation Unit of the MOE which will be responsible for monitoring the effectiveness of the new organizatiion of nonformal education and of the new curricula and teaching methods (para. 3.06). The evaluation methodology has been discussed with the Government and progress in the evaluation studies would be followed up in the course of project supervision. IV. THE PROJECT General 4.01 To help attain the objectives set forth in paragraph 3.04, the proposed project would assist the Malawi education investment program by: (a) providing prototype construction models of primary schools; (b) strength- ening the programs of rural education; (c) establishing a new primary teacher training college; and (d) adding facilities for the teaching of practical subjects in selected secondary schools with emphasis on facilities for girls. It would consist of: (a) The provision of buildings, furniture and equipment for the following institutions:  -9- Approximate Number of Student Places Additional Places Type of Institution Existing Full-time Part-Time Total (i) 22 new prototype primary schools and one demonstration school /1 0 9,200 - 9,200 (ii) 22 new rural education centers 0 0 2,200 2,200 /2 (iii) One new primary teacher training college 0 420 - 420 (iv) Additions to seven secondary schools 860 1,800 - 2,660 Totals 860 11,420 2,200 14,480 /1 Demonstration school adjacent to Primary Teacher Training College. t2 These 2,200 places for part-time trainees would provide an annual through-put of about 20,000 trainees. (b) Re-establishment and strengthening of the Project Implementation Unit; and (c) Pre-investment studies. Project Items 4.02 Primary Schools. The provision of school buildings at the primary level is the responsibility of the local communities while the Government supplies teachers and provides supporting services such as in-service teacher training, supervision and inspection. This has resulted in the construction of more than 2,000 schools at little cost to the Government. However, the school buildings are often inadequate for educational purposes (para. 3.01) and their useful life, because of poor workmanship and low quality of materials, averages only about five years. The main weakness is in the roof construc- tion and its supporting structure. The Government has decided to construct one model school in 23 of the 24 Districts to develop a prototype which the communities in the surrounding areas can copy on a self-help basis. 1/ The proposed project would provide for the construction, furnishing and equipping of these 22 prototype schools and one demonstration school. Each school would have eight 50-place classrooms to provide 400 student places. The schools would be designed with four 2-classroom blocks to provide for flexibility and possible later adjustments in the school cycle (para. 3.05). The Government furnished the Association with satisfactory criteria to be used in the selec- tion of sites for the proposed primary schools. The criteria agreed upon in- clude : (a) accessibility, (b) population density, (c) local motivation as indi- cated by community self-help, and (d) adJacency to rural development project areas. 1/ One of the 24 Districts has recently constructed a model primary school.  - 10 - 4.03 About 1,000 schools are needed for replacement of inadequate facilities and expansion in enrollment. In addition to providing 22 prototype schools, the Government would supply a construction supervisor and building plans for the construction of additional schools and promote replications of the prototype schools. The roofing materials and supporting structures would be supplied through the District Councils. A draft plan of operation for the replication of primary school facilities would be presented to the Association for review within one year of the signing of the Agreement. This timing would coincide with the completion of the first prototype school. 4.04 Rural Education Centers. Malawi has a variety of rural-oriented training programs which are operated by several Ministries and Government agencies (Appendix II, paras. 24-33). In the past, there has been little effort to coordinate these programs or to plan them so as to gain mutual support and greater overall benefits (para. 3.02). An initial review of rural education programs conducted by the National Council for Education and Training indicated that the effectiveness of most of the on-going programs in the rural areas could be appreciably increased through improved planning, coordination and appropriate sharing of facilities and staff. It was also found that inadequate attention was being given to training in several basic rural skills for adults. As a result of this review, the Government has decided that this skill training will be provided in low cost Rural Education Centers 1/ to be established in each District, which, although under the administrative responsibility of the MOE, would be used by all agencies engaged in rural training. 4.05 The Government intends to establish one Rural Education Center per District. Under the overall responsibility of the National Council for Education and Training, the Local Council of the District would propose programs to be offered in the Centers in support of rural skill training, the literacy campaign of the MOE, the preventive health program of the Ministry of Health, the community development activities, nutrition, leader- ship, child-care and homecraft training programs of the Ministry of Community Development and Social Welfare, the extension services including farmer train- ing, animal husbandry, marketing and other programs of the Ministry of Agri- culture and Natural Resources and other schemes among those mentioned in paras. 24-29 of Appendix II. Through the Local Council and the District offices of the various Ministries and Agencies, the courses of the Rural Education Centers would be coordinated with those offered at the Farmer Training Centers and at the Farm Institutes (Appendix II, para. 28) as well as with the skill training programs conducted by missionary societies (Appendix 1/ The capital cost per Center would be US$25,000 to US$35,000 equivalent depending on the location.  - 11 - II, para. 33). The population of youths and adults in each District ranges from 75,000 to 150,000 which ensures a broad base of potential trainees in each District. Training needs and target groups for each District would be identified by the Local Councils. The 22 Rural Education Centers to be provided under the project would cover most of the Districts of Malawi and would be adjacent to the 22 prototype primary schools (para. 4.02). Each Center would consist of two workrooms -- a rural skill training shop for men and a domestic science/nutrition room for women -- separated by a large, roofed open area which would be used for village meetings, agricultural extension, and other training programs. A special facility would be provided for preventive health clinics. The structures would be simple and functional and the equipment would consist of basic tools. The Government provided the Association with a satis- factory draft plan of operations for the Rural Education Centers. The Center would be used in the mornings for practical studies by students in grades 4-8 and for rural skill training by adults and out-of-school youths in the afternoons. Each would provide short-term (one week to three weeks) training courses for about 1,000 persons p.a. Instructors are being trained in a special program at the Polytechnic and, in addition, local artisans would teach at the Centers on a part-time basis. Although the specific skills to be taught at each Center would vary depending upon the needs of each District, emphasis would be placed on rural crafts for adults (para. 3.02). 4.06 Primary Teacher Training College. There are approximately 1,900 teacher trainees enrolled in teacher training colleges which include six small mission colleges and two 540-place teacher training colleges at Lilongwe and Blantyre. The present stock of teachers in Government-assisted schools is 11,000, of whom about 20% are unqualified (Annex 4). The Government is concerned about the low quality of the teaching force and is retraining 300 unqualified teachers p.a. through in-service teacher training to the T3 level (Junior Certificate plus two years of teacher training) and T2 level (Malawi Certificate of Education plus two years of teacher training). The present pre-service training capacity of about 700 teachers p.a. is insufficient to supply the 11,000 additional teachers required by 1985 to meet the needs caused by attrition and expansion (Annex 4). The proposed project would provide buildings, equipment and furniture for a new teacher training college for 420 teacher trainees, which, when combined with the 300 p.a. output from the retraining program, should meet the immediate needs. A demonstration school would also be provided. It is expected that in the initial years, the teacher trainers would continue to be provided under bilateral assistance programs; the Government confirmed that assistance for initial staffing of the teacher training college will be available from bilateral agencies. The site for the proposed college is about six miles west of Mzuzu, adjacent to an agricultural development project. Because of its location in the sparsely populated northern region, boarding facilities for 420 students and houses for 41 staff are required.  - 12 - 4.07 Secondary Schools. Continuing the policy begun in the Bank Group assisted first education project, the Government has decided to expand and add facilities for practical studies for seven secondary schools. Curriculum reforms for secondary education were begun in 1967 to make the program more responsive to Malawi's needs (para. 3.06). In the first project, practical studies facilities were added to 12 secondary schools. In this proposed second project, appropriate facilities would be added to seven secondary schools, including equipment for commercial training in three of the schools. All of the schools would be located in rural areas and students would be drawn 'from the entire country. Malawi's secondary boarding schools were, for the most part, built originally by missionary societies and were not evenly distributed over the country. To correct the uneven distribution of schools the MOE ranks all eligible candidates for secondary school entry each year and allocates the students to schools on the basis of available places. Special care is taken in distributing available secondary school places to candidates according to quotas by District in order to reduce disparity in access to secondary education. While the location of the student's home relative to the school is somewhat taken into account, few students are assigned to boarding schools close to their homes in order to promote national integration. Due to the sparsely populated locations and the fact that most students come from distant areas, additional boarding facilities for 1,740 students and housing for 29 additional staff are required in the project schools. Where it is practical, the dormitories will be constructed to permit possible future conversion to classrooms. As indicated in para. 3.05, expatriate secondary school teachers would not be fully replaced before the late 1980s; therefore housing is essential to attract and retain suitable staff. In addition, Malawi Government regulations require that certain categories of civil servants--including the secondary school teachers--are to be provided with housing in the locations where they are assigned. This has resulted in greater flexibility than in other countries in assigning teachers to remote rural schools and has eliminated the need for hardship/ housing allowances. 4.08 At present, only about 25% of those enrolled in secondary schools are girls and of those enrolled in day schools, only about 10% complete the four-year course with a Malawi Certificate of Education. On the other hand, 90% of girls who attend boarding schools complete the course successfully. As a result of these low enrollment and completion ratios in day schools, the proportion of Malawi women with secondary or post-secondary education is very small. There are not enough qualified women to fill the post-secondary institutions which provide training for nurses, teachers and other specialized occupations (para. 2.08). To help correct this imbalance, six of the seven schools in the proposed project would be for girls only and one would be co-educational. Altogether, 1,600 of the 1,800 additional places provided under the project would be for girls. By 1980 the proportion of girls in secondary schools would increase to 35%.  - 13 - 4.09 Project Implementation Unit. A Project Implementation Unit was established within the Ministry of Works and Supplies to administer the first education project. As the project neared completion, the staff of the Unit was gradually reduced. To implement the proposed second education project, the Unit would be re-established in the MOE and would include a project manager, a project architect, a procurement specialist and an accountant. A qualified Malawian is being appointed as Project Manager, the architect employed under the first IDA education project is expected to be retained and a procurement specialist has been selected for the Unit. The appointments of the project manager, architect and the procurement specialist would be conditions of credit effectiveness. The Unit would oversee the implementation of the project, train counterparts to replace the expatriate architect and procurement specialist and help establish an effective school-building unit to assist in standardizing economical education facilities. The costs of the Project Implementation Unit would be included as a part of the project. 4.10 Pre-investment Studies. The proposed project is part of a long- term investment program (paras. 3.04-3.08). It is likely that by 1977, the elements of the next phase would be defined. Therefore, pre-investment studies would be included in the project to bring a possible third education project to an adequate stage of preparation and to provide support for student tracer studies (para. 3.07) and other methods of project evaluation. In particular, after completion of the studies referred to in para. 3.07 and definition of the quantitative targets for education development in 1980s, priority areas for educational investment will be identified. It is possible that one of these areas would be the continuation of the program to expand secondary education and provide schools with the facilities needed for the teaching of practical subjects. Another area could be the establishment of additional rural education facilities to supplement the District Rural Education Centers within the framework of a well-coordinated rural education program. Any project which may emerge would, of course, need appraisal; if accepted for Association support, the pre-investment funds included in this project could also be used to expedite architectural work and implementation. V. COST ESTIMATES, FINANCIAL PLAN, IMPLEMENTATION, PROCUREMENT AND DISBURSEMENTS Cost Estimates 5.01 The total cost of the project is estimated at US$15.0 million equi- valent including taxes. The estimated cost and foreign exchange component of the various categories of expenditures are given in Annexes 6 and 7 and summarized as follows:  - 14 - Estimated Project Cost: by Type of Expenditure MK (million) US$ (million) % of Local Foreign Total Local Foreign Total Total 1. Civil Works, Furniture, Equipment and Profes- sional Services: a. 22 new Primary Schools and Rural Education Centers 0.97 0.96 1.93 1.17 1.14 2.31 21 b. One new Primary Teacher Training College(including one demonstration 1.20 1.19 2.39 1.44 1.43 2.87 27 school) c. Expansions of seven Secondary Schools 2.02 1.99 4.01 2.42 2.39 4.81 45 Sub-total of 1 4.19 4.14 8.33 5.03 4.96 9.99 93 2. Technical Assistance 0.08 0.34 0.42 0.10 0.40 0.50 4 3. Project Administration 0.15 0.07 0.22 0.18 0.09 0.27 3 (including equipment, vehicles, vehicle operat- ing costs and pre- investment studies) ____ Total Baseline Cost 4.42 4.55 8.97 5.31 5.45 10.76 100 (September 1975 negotiation date) 4. Contingencies (a) Unforeseen events(9%) 0.42 0.38 0.80 0.50 0.46 0.96 (b) Price increase (28%) 1.38 1.35 2.73 1.68 1.60 3.28 Sub-total of 4 1.80 1.73 3.53 2.18 2.06 4.24 TOTAL PROJECT COST (1-4)-i 6.24 6.26 12.50 7.49 7.51 15.00 /1 Includes US$0.50 million equivalent in taxes.  - 15 - 5.02 Construction, furniture and equipment costs have been derived from recent bidding received on similar institutions, with adjustments for proposed changes in existing standardized building designs and master lists of furni- ture and equipment. The average cost per square meter is estimated at about US$65 equivalent for the rural primary schools and US$120 equivalent for the primary teacher training college. 1/ The schedules of accommodation are economical and appropriate to planned student enrollments. The cost of boarding and staff housing is equivalent to approximately 35% of the total project cost; the provision of these facilities is necessary for the reasons outlined at paras. 4.06 and 4.07. Estimates of equipment and furniture costs are also based on recent information obtained during implementation of the first IDA education project. Detailed lists of furniture and equipment would be prepared during the design stage and reviewed by the Association. 5.03 Customs Duties and Taxes. All items specifically imported for the proposed project would be exempt from direct customs duties and taxes in line with the practice of the Malawian Government to grant customs and tax exemption to imports for educational purposes. Some of the building material to be used by contractors for use in construction of the proposed project's institutions would be acquired on the open market and accordingly would have been subject to customs duties and/or taxes. Of the estimated civil works costs, about US$0.50 million equivalent would represent customs duties and/or taxes. 5.04 Contingencies Allowances. For unforeseen events, 10% has been added to the base cost of civil works and professional services and 5% to furniture, equipment, technical assistance and project administration costs. Estimated price increases are based upon the following annual rates for which price escalation has been calculated from the base cost date (September 1975) in accordance with the implementation schedule, shown in Annex 8. Furniture Professional Services Civil and Technical Assistance Year Works Equipment and Project Administration 1975 16% 12% 7.5% 1976 14% 10% 7.5% 1977-79 12% 8% 7.5% 1980 10% 7% 7.5% 5.05 The foreign exchange component of US$7.5 million has been calculated as follows: (a) civil works, 45%; (b) professional services, 40%: (c) furni- ture, 55%; (d) instructional equipment, 90%; (e) project administration, 20%; and (f) technical assistance, 80%. The US$7.5 million represents 50% of the total project cost of US$15.00 million (including contingencies and taxes). 1/ These costs compare well with costs per m2 in other East African countries, e.g., Ethiopia US$120; Lesotho US$140; Swaziland US$120. These costs were based on 1974 prices.  - 16 - Financial Plan 5.06 The total project cost of US$15.00 million would be financed as follows: US$ million equivalent Malawi IDA /1 Total /2 Category Government Credit Project 1. Civil Works 2.35 7.10 9.45 2. Furniture, vehicles and equipment 0.30 1.60 1.90 3. Professional Services 0.24 0.50 0.74 4. Technical Assistance 0.04 0.50 0.54 5. Project Administration 0.05 0.20 0.25 6. Contingencies/Unallocated 0.42 1.70 2.12 Total 3.40 11.60 15.00 Of which taxes: 0.50 0.50 /1 Based on the percentage of expenditures to be financed. /2 For computation of credit allocation, 50% of contingencies have been added to baseline cost of each category of expenditure. 5.06 The maximum Government capital contribution is not expected to exceed US$1.5 million equivalent in any one year through the next five years. Recurrent costs generated by the proposed project are estimated at US$0.6 mil- lion equivalent p.a. at 1975 prices or about 3.0% of the estimated recurrent cost of education in 1980/81. The Government attaches high priority to the proposed project and is expected to be able to provide for these expenditures and for its share of the capital costs. Implementation 5.07 The project would be implemented over a period of five years after credit effectiveness (Annex 8), including six months for completion of payments and withdrawals from the Credit account. 5.08 Administration. The Project Implementation Unit in the Ministry of Works and Supplies (para. 4.09) would be re-established in the Ministry of Education and would be responsible for the implementation of the proposed second project; the Unit would work in close cooperation with the other Ministries involved. The Unit would include: a project manager, a project architect, two assistant architects, a quantity surveyor, a procurement specialist, an accountant and supporting staff. The two assistant architects and the quantity surveyor would be appointed, in consultation with the Asso- ciation, within six months after the signing of the Credit Agreement. It  - 17 - would help establish an effective school building unit, would assist in standardizing economical educational facilities and would train counterparts to replace the expatriate specialists. To ensure availability of key personnel, provision for 12.5 man-years of technical assistance is included in the pro- posed project to cover the cost of architects, a procurement specialist and a quantity surveyor. Assurances were obtained from the Government that staff as indicated in Annex 9 would be provided for the Project Implementation Unit and maintained throughout the period required for project implementation. 5.09 Professional Services (Architectural/Engineering). Standardized designs, used for the first IDA education project, would be used for the proposed project and modified in the light of experience to incorporate maximum use of local labor and materials. For the design, preparation of construction documents and supervision of construction works, the services of consultants have been included in the project cost for the primary teacher training college, the demonstration school and for the additions to the secondary schools. The Project Implementation Unit would provide professional services for the primary schools and for the RECs. The consultants have been selected. Because of the urgent need that the primary teacher training college be designed and its construction promptly started, retroactive reimbursement is recommended for the services of the consultants and initial operating expenses of the Project Implementation Unit. Retroactive reimbursement would cover expenditures from July 1, 1975. The amount of expenditures before the date of Credit Agreement is not expected to exceed US$160,000 equivalent, of which US$120,000 equivalent would be eligible for reimbursement. 5.10 Site Selection. Satisfactory sites are available for the primary teacher training college and the seven secondary schools. All locations and sites for the primary schools and Rural Education Centers will be selected on the basis of criteria agreed upon with the Government (para. 4.02). Procurement 5.11 Contracts for civil works, furniture and equipment would be awarded on the basis of international competitive bidding in accordance with the Bank's Guidelines for Procurement except as follows: (a) civil works costing less than US$200,000 equivalent each; (b) furniture and equipment contracts costing less than US$50,000 equivalent; and (c) locally procured construction material costing less than US$50,000 equivalent. Contracts for items procured under (a), (b) and (c) above would be awarded on the basis of competitive bidding advertised locally and in accordance with local procedures which have been reviewed by Bank Group staff and are acceptable to the Association. Contracts under (a) consist of small units to be constructed in scattered locations and would be unlikely to attract international bids; contracts under (b) are not likely to interest foreign suppliers because of the small amounts involved and the variety of the lots.  - 18 - 5.12 Sketch designs, draft tender documents and master lists of con- struction materials, furniture and equipment would be reviewed by the Asso- ciation. Review by the Association of tender evaluation documents for civil works prior to award would be required only for contracts above US$200,000 equivalent; for furniture, equipment and construction materials, review prior to award would not be required for contracts less than US$50,000 equivalent. Where international competitive bidding procedures have been followed domestic manufacturers of furniture and equipment would be allowed a preference of 15% or the existing rate of import duties, whichever is lower, over the c.i.f. price of competing foreign suppliers, and qualified domestic civil works con- tractors would be allowed a preferential margin of 7-1/2% over bid prices of competing foreign contractors. Disbursements 5.13 Disbursements would be on the basis of: (a) 100% of foreign expenditures for furniture, equipment, vehicles and technical assistance; (b) 100% of ex-factory cost for locally manufactured furniture and equipment or 75% of local expenditures for locally procured imported furniture and equipment; (c) 75% of local expenditures for professional services and project administration iLncluding expenditures for local transportation; and (d) 75% of total expenditures for civil works. Disbursements would be fully documented with the exception that disbursements for project administration would be made against a certificate of expenditure, the documentation for which would not be submitted to the Association but would be retained by the Borrower and available for review in the course of project supervision. Upon agreement between the Government and the Associa- tion, any funds remaining on completion of the project would be used for project related items. The estimated disbursement schedule is shown in Annex 10. The project is expected to be completed by September 30, 1980 and the proposed closing date is March 31, 1981. VI. BENEFITS AND JUSTIFICATION 6.01 Benefits. The proposed project is part of a long-term program of educational development to improve teacher, secondary and rural education begun in 1967 with the assistance of Credit 102-MAI. The principal objectives of this program are to improve access to educational opportunities in rural areas and to help meet the manpower needs of the expanding modern sector. In the current phase, the program places particular emphasis upon the promo- tion of the education of women in order to give them opportunities to make a greater contribution to the development process.  - 19 - 6.02 The benefits expected from the proposed project can be summarized as follows: (a) the strengthening of the on-going education programs for rural adults; (b) the development of functional design and building standards for primary schools; (c) an increase in the supply of qualified primary teachers; (d) the expansion of the teaching of practical subjects in primary and secon- dary schools; and (e) an increase in the number and proportion of girls enrolled in secondary schools. 6.03 In particular, the proposed project would provide one Rural Educa- tion Center in most Districts of the country which would enable rural adults to learn the skills required to enhance their productivity and prepare them for self-employment. The provision of a model primary school in each District would make it possible for villagers to improve the design and quality of school construction and, thereby, make the schools more functional. To help improve the quality of primary education, the project would also assist expansion and rationalization of teacher training. Finally, by providing additional places for girls in secondary schools, and adding facilities for practical studies, the project would increase the number of educated women and permit them to play a greater role in Malawi's development. 6.04 Risks involved in the project. The principal risk involved in the project relates to the Rural Education Centers which would introduce an innovative element into Malawi's educational system. Although the structure and programs outlined for Rural Education Centers are based on experimental patterns which have been applied in other East African countries, considerable coordination among Ministries and agencies would be required at the District level, and a great deal of innovation would be needed in developing courses and teaching methods. The risk exists that in spite of the development of appropriate programs, some of the Centers would place undue emphasis on the use of the facilities by primary school students and neglect the nonformal courses for adults; in this event, the objectives of the Centers would be limited to the provision of improved primary school facilities. In order to minimize this risk, it is expected that careful monitoring of the Centers would be carried out by the Ministry of Education Program Evaluation Unit in consultation with Bank Group staff (para. 3.10). A plan for the coordination in the use of the RECs among ministries and agencies of the Government is included in the Plan of Operation for the RECs which the Government provided to the Association. 6.05 In spite of these risks, the objectives of the project and its expected benefits point to its suitability as a part of Malawi's overall strategy to improve the productivity of the rural sector, provide amenities for and raise the living standards of the rural population, reduce manpower shortages and gradually replace expatriates, increase the contribution of women to the development process and improve the efficiency of the education sector.  - 20 - VII. AGREEMENTS REACHED AND RECOMMENDATION 7.01 Agreement was reached with the Government on the following principal points: (a) training requirements and manpower utilization, the replication of the prototype primary schools, the plans for operation and coordination of the Rural Educa- tion Centers, the staffing of the primary teacher training college (paras. 2.10, 4.03, 4.05 and 4.06); and (b) sites for the primary schools and Rural Education Centers and establishment and staffing of the Project Implementation Unit (paras. 4.02 and 5.08). 7.02 In addition to the customary conditions, the establishment of the Project Implementation Unit and the appointments of the Project Manager, the project architect and the procurement specialist would be conditions of credit effectiveness (para 4.09). 7.03 Retroactive financing is recommended for: (a) the services of consultant architects to prepare sketch plans for the teacher training college; and (b) Project Implementation Unit expenditures (para. 5.09). 7.04 The proposed project constitutes a suitable basis for an IDA credit of US$11.6 million equivalent to the Republic of Malawi.  APPENDIX I Page 1 REPUBLIC OF MALAWI SECOND EDUCATION PROJECT EDUCATED MANPOWER REQUIREMENTS 1. In 1971 the Government conducted a Manpower Survey (MS) to find the existing stock of High and Intermediate Level Manpower (HILMP) 1/. The main findings include the following: a) the total existing stock of HILMP was 47,800 2/ while the required stock (i.e., the existing and vacancies) was 48,900; b) the extent of localization of HILMP was 83.2% with more extensive localization in the public sector and in the lower occupational categories; c) the percentage distribution of HILMP by the three broad occupation categories was 3.6%, 31.1% and 65.3% respectively; and d) the ratios of the occupation categories between the public and private sectors were 1:2, 3:1 and 1:2 respectively. These findings are summarized in Table 1. 2. On the basis of the MS, Malawi projected the HILMP requirements for the 1971-80 period. The following basic assumptions were made for the projections of need and supply: a) A HILNP growth rate is a function of the growth rate of monetary GDP (in real terms); 3/ 1/ HILMP comprises (i) the senior category of top management and professional occupations requiring a university degree; (ii) the intermediate category of middle and junior management and technical occupations requiring a diploma or Malawi Certificate of Education; and (iii) the skilled category of office and skilled workers requiring a Junior Certificate of Education. 2/ This number represented 27.7% of total wage employment. 3/ The Government based the future economic growth targets on the projections provided in the Statement of Development Policies 1971-80.  APPENDIX I Page 2 b) Technological advance is not sufficient to "appreciably" affect the HILMP requirements over the plan period; c) The attrition rates for different occupations for different years are somewhere between 2% to 4%; 1/ d) The number of non-Malawians will remain constant throughout the period. In summary, the MS projected that 133,000 HILMP would be neeeded for the 1971-80 period. This implies that HILMP would grow at an annual rate of 14.1%. Meanwhile, it estimated that the supply would increase at a slower rate of 6.8% p.a. (total incremental supply of 44,000) 2/ and, as a result, the HILMP shortage would worsen from 3% in 1971 to 35% by 1980. 1/ In spite of the stated attrition rates (MS, p.91), a careful examination of the Study indicates the omission of the attrition factor in the projection of HILHP need. 2/ This is in line with enrollments and financial projections in Annexes 3 and 5.  Table 1 HILMP Distribution by Occupation, Sector and Nationality Broad Public and Private Public Private Occupational Total Malawian Malawian Total Malawian No a Total Malawian N Levels No. 7, No. 'A No. % No. % No. % No. % No. % No. % No. % 1 and 3 1,706 100.0 382 22.4 1,324 77.6 621 36.4 232 37.4 389 62.6 1,085 63.6 150 13.8 935 86.2 Senior Level 2 and 4 14,858 100.0 12,392 83.4 2,466 16.6 11,151 75.1 10,527 94.4 624 5.6 3,707 24.9 1,865 50.3 1,842 49.7 Intermediate Level 5, 6 and 7 31,186 100.0 26,962 86.5 4,224 13.5 14,028 45.0 13.843 98.7 185 1.3 17,158 55.0 13,119 76.9 4,039 23.5 Skilled Level All Levels 47,750 100.0 39,736 83.2 8,014 16.8 25,800 54.0 24,602 95.4 1,198 4.6 21,950 46.0 15,134 69.0 6,816 31.0 b I-'  APPENDIX I Page 4 3. The Bank Group staff has made alternative HILMP projections using two methods. One is similar to the MS, in projecting the senior, intermediate and skilled categories independently of occupation applying different sets of assumptions. The second method projects HILMP as an integrated whole of total employment so that the projected proportions of the occupational cate- gories could be examined. On the basis of published reports and the Bank Group staff discussions with various Ministries concerned, the different sets of the projection coefficients were derived as presented in Table 2. While the MS assumed the monetary GDP growth rate at 11% p.a. for the 1975-80 period, the more probable rates of 9% (assumption A) and 8% (assumption B) were assumed. A lower output elasticity of employment than that of the MS accounting for the increase in labor productivity was also included in the Bank Group staff projections. Similarly, the attrition rates were lowered with the consideration that many workers are relatively young new entrants to the job market and secondly, that the occupation breakdown is so broad that even if one left a job for another, it would be unlikely for him to move from one category of occupation to another due to his education and training background. 4. The second method calculated required HILMP as an integrated whole of total employment using the estimated past employment structure provided by the National Statistical Office and the projection of employment generation for 1974-80 furnished by the Ministry of Labor. Based on these sources, total employment of 172,000 in 1971 was assumed to increase by 8% p.a. for the public sector and 6.5% for the private sector reaching 351,000 in 1980 and 466,000 by 1985. The percentage distribution of HILMP by occupation in 1971 is provided by the MS. First, it was assumed that the percentage distribution would remain the same as in 1971 throughout the period (assumption C). Secondly, it was assumed that it would change as shown in Table 3 (assumption D).  Table 2 MALAWI - Coefficients of Required HILMP Projections, 1971-85 1971 - 75 1976 - 80 1980 - 85 MS/1' A /L2 B /3 MS A B MS A B Annual Growth Rate (at constant prices) %: Monetary Sector 9.8 9.5 9.0 11.0 9.0 8.0 11.0 9.0 8.0 Output Elasticity of HILMP: Sr. Category 0.9 0.8 0.8 1.0 0.9 0.9 1.0 0.7 0.7 Int. Category 1.1 1.2 1.2 1.4 1.2 1.2 1.4 0.9 0.9 Skilled Category 1.2 1.3 1.3 1.6 1.4 1.4 1.6 1.1 1.1 HILMP Annual Growth Rate %: Sr. Category 9.0 7.6 7.2 10.7 8.1 7.2 11.0 6.3 5.6 Int. Category 10.2 11.4 10.8 15.8 10.8 9.6 15.4 8.1 7.2 Skilled Category 11.7 12.4 11.7 17.8 12.6 11.2 17.6 9.9 8.8 Attrition, %: Sr. Category 2.0 1.5 1.5 2.0 1.5 1.5 2.0 2.0 2.0 Int. Category 3.0 2.0 2.0 4.0 2.0 2.0 4.0 3.0 3.0 Skilled Category 3.0 2.0 2.0 4.0 2.0 2.0 4.0 3.0 3.0 /1 1971 Manpower Survey. The 1981-85 period was extended from the 1976-80 period. /2 Medium growth rate assumptions. /3 Lower growth rate assumptions.  Table 3 Shares of HIIP in Total J p1.oyvmnt Senior Int. Ski 41d Total Total Catoory C8t@gr C9f1tsy HIRE g21aUt 1 1971 Public 1.1 21.2 26.5 48.8 100.0 Private 0.9 3.1 14.4 18.4 100.0 Total 1.0 8.7 18.1 27.8 100.0 1975 Public 1.2 21.5 30.0 52.7 100.0 Private 1.0 3.5 18.0 22.5 100.0 Total 1.0 10.4 22.6 34.0 100.0 1980 Public 1.3 22.0 35.0 58.3 100.0 Private 1.1 5.0 23.0 29.1 100.0 Total 1.2 11.8 27.8 40.8 100.0 1985 Public 1.3 22.5 40.0 63.8 100.0 Private 1.1 6.5 28.0 35.6 100.0 Total 1.2 12.6 32.6 46.4 l00.0 5. The following summarizes the varlous top1cation. for net *ncr.m.ntal requirements for HILMP over the periods 1976-80 and 1981-86 under the asaump- tions made by the MS and Bank Group staff A, B, C 4nd D. Table 4 Not Incremental Reguirgmnts BDnk Group stiff Estimates MS A B C D Senior Category 1976-80 1,840 1,280 1,100 1,000 1,500 1981-86 3,040 1,380 1,150 1,200 1,400  APPENDIX I Page 7 Int. Category 1976-80 29,000 19,000 16,300 11,100 15,500 1981-86 57,700 22,300 18,200 10,500 17,300 Skilled Category 1976-80 74,200 49,800 42,200 19,900 41,100 1981-86 162,600 65,400 52,400 21,200 54,400 Total HILMP 1976-80 105,040 70,080 59,600 32,000 58,100 1981-86 223,340 89,080 71,750 32,900 73,100 According to the different assumptions, the implications of the requirements of education output vary significantly. For instance, the MS projects that degree holders will have to be provided for at an annual average rate of about 500 over the decade, while the other projections indicate the required number between 200 and 300. The difference in total HILMP required for the decade varies from 328,000 in the MS to 64,900 under assumption C. It seems reasonable, however, to derive from Table 4 that the required total HILMP for the decade will be about 140,000. 6. A ten year projection of education output at different levels is a difficult task. First of all, the Government is uncertain about the enrollment expansion targets for such a long period of time. Second, it is difficult to predict changes in the pass rates, repeaters and dropouts, i.e., changes in internal efficiency. Given all these difficulties, the following are assumed in the supply projection: a) total enrollment in secondary education would grow at 5% for the 1976-80 period and 7% for the 1981-86 period; b) the output from the University would more than double by 1985; c) the pass rates of day and boarding junior secondary students would be 62% and 83% respectively, while the pass rates of day and boarding senior secondary students would be 45% and 69% respectively; and d) the labor force participation rate of JC, MCE 1/ and 1/ The Blantyre Population Sample Census in 1972 showed that 100% of both male and female MCE holders, except those proceeding to further study, participate in the labor market.  APPENDIX I Page 8 degree holders would be 80%, 100% and 100% except those who would proceed to the apprenticeship programs, teacher training colleges and the University. Given the above assumptions, it was calculated that net incremental outputs of degree, MCE and JC holders for the 1975-80 and 1980-85 periods would be 900 and 1,000 (degree), 12,700 and 14,700 (MCE), and 10,900 and 11,900 (JC). The comparatively small supply of JC holders is to be noted. This is partly due to the increasing number of boarding secondary schools where the progres- sion rate from grade 10 to grade 11 is as high as 90%. Adding the manpower remaining from 1971 to the new supply, the available stock of HILMP in 1980 and 1985 is presented in Table 5.  APPENDIX 1 Page 9 Table 5 Supply and Available Stock of HILMP New Remaining /1 Total Supply Stock Available Stock MS Others /2 MS Others /2 Senior Category 1975-80 900 1980 2,290 2,300 3,190 3,200 1980-85 1,000 1985 3,000 3,000 4,000 4,000 Intermediate Category 1975-80 12,700 1980 19,200 19,800 31,900 32,500 1980-85 14,700 1985 26,500 28,200 41,200 42,900 Skilled Category 1975-80 10,900 1980 31,100 33,700 42,000 44,600 1980-85 11,900 1985 35,000 38,900 46,900 50,800 Total HILMP 1975-80 24,500 1980 52,590 55,800 77,090 80,300 1980-85 27,600 1985 64,500 70,100 92,100 97,700 /1 This stock includes expatriates, i.e., 1320 for senior category, 2500 for intermediate categorv, and 4200 for skilled category. /2 The estimates made under assumptions A to D.  APPENDIX I Page 10 7. The available stock of HILMP is compared in Table 6 with the required numbers of HILMP derived under different assumptions. Although the extent of the supply-requirement disparity differs among the projections, l/ it is apparent that Malawi would suffer from a HILMP shortage in the coming decade. As possible measures to cope with this HILMP shortage, the following may be taken into consideration: a) to accelerate the enrollment expansion rates at all levels of the education system; b) to improve the internal efficiency by reducing the rates of the dropouts and repeaters, and by increasing the pass rates in the school leaving examinations; c) to ease the rigid assumption made for the occupation- education matrix. It is unrealistic to assume that it is a necessary qualification for all the office or skilled workers to have a Junior Secondary Certificate, i.e., 10 years of schooling; and d) to put greater emphasis on the development and improvement of all forms of non-formal training. 1/ The difference of 2 to 4 times is observed in the shortages of three categories of occupations, especially between the projections by the 1971 MS and by the C set of assumptions.  Table 6 Comparisons of Available and Required Stocks Available Stock Required Stock HILMP Shortage MS /1 Others /2 MS A B C D -- MS A B C MS /2(l)z (2)/4 (1) (2) (1) (2) (1) (2) (1) (2) Sr. Category 1980 3,190 3,200 4,550 3,800 3,570 3,400 4,100 1,360 1,350 610 600 380 370 210 200 910 900 1985 4,000 4,000 7,560 5,150 4,690 4,600 5,500 3,560 3,560 1,150 1,150 690 690 600 600 1,500 1,500 Int. Category 1980 31,900 32,500 51,900 43,600 40,200 36,100 41,400 20,000 19,400 11,700 11,100 8,300 7,700 4,200 3,600 9,500 8,900 1985 41,200 42,900 108,100 64,400 56,900 46,600 58,700 b6,900 65,200 23,200 21,500 15,700 14,000 5,400 3,700 17,500 15,800 Skilled Category 1980 42,000 44,600 125,300 103,400 94,100 67,400 97,400 83,300 80,700 61,400 58,800 52,100 49,500 25,400 22,800 55,400 52,800 1985 46.900 50,800 284,400 165,800 143,500 88,600 151,800 237,500 233,600 118,900 115,000 96,600 92,700 41,700 37,800 104,900 101,000 Total HILMP 1980 77,090 80,300 181,750 150,800 137,870 106,900 142,900 104,660 101,450 73,710 70,500 60,780 57,570 29,810 26,600 65,810 62,600 1985 92,100 97,700 400,060 235,350 205,090 139,800 216,000 307,960 302,360 143,250 137,650 112.990 107.390 47,700 42.100 123,900 118.300 /1 MS = Manpower survey. /2 Others = Projections made under assumptions A, B, C and D. /ta /3 Compared with the MS available stock. -v A~ compared with others available stock.  APPENDIX II Page 1 REPUBLIC OF MALAWI SECOND EDUCATION PROJECT The Education and Training System Historical Background 1. Prior to Independence in 1964, Malawi had no well-defined education system. The missions built a few scattered schools, mostly at the primary level, but there was no educational plan and the Government provided little support. This lack of attention to education is reflected today in the low proportion of "educated" people in the total population. In the "over-40- years" age group only 1% has had eight years of education and only 5% have had even five years of schooling. The literacy rate of 25% is another in- dication of this past neglect. Since Independence educational development has had high priority. In 1975 there were 606,000 enrolled in primary schools and 14,000 in secondary schools (Chart 1 and Annex 2). Although a large number of the schools are operated under mission auspices, most of these are under direct Government control and supervision. The Government appoints the teachers, pays the salaries and designates the curricula for all of the schools. The Government, therefore, is now in a position to implement a program of major improvement throughout the system. Administration 2. The Ministry of Education (MOE) has administrative, financial and academic control of primary, secondary, technical education, and the teacher training system and for the Malawi Correspondence College. The MOE also has nominal responsibility for the University of Malawi and the Polytechnic Institute but both of these are, in reality, autonomous institutions (Chart 2). 3. In addition to the educational institutions administered by the MOE, there are education/training programs operated by other Ministries, such as Health, Works, Agriculture and Community Development. 4. There are approximately 12,000 teachers in the formal educational system, almost all of whom are paid by Government. The central staff of the MOE totals about 200, 90 of whom are at the professional level. Generally speaking, it is an efficient and well-organized Ministry supported by a strong inspectorate and an active District staff. 5. There are two primary school teacher training colleges under the direct control of the MOE, each with an enrollment of about 500. In addition, there are six small colleges operated under mission auspices. These colleges are small and uneconomic and the Government plans gradually to phase them out  APPENDIX II Page 2 and replace them as funds become available. Secondary school teachers are trained at Chancellor College of the University of Malawi. Technical school teachers are trained at the Polytechnic. 6. The MOE has developed an active and effective inspectorate staffed with trained personnel which have close links with the teacher training pro- gram and with the District Education Officer staff. The Planning Section of the MOE works closely with all of the other Sections and is a strong force for continuing change and improvement in the education system. 7. The MOE has no direct connection with the various adult education programs operated by other Ministries. The fact that there is no agency responsible for the planning and coordination of these diverse efforts has resulted in wasteful and confusing duplications, and the MOE is now to play a major role in planning and programming these efforts. The Malawi Corres- pondence College, which is primarily concerned with in-service teacher training, continuing education and school broadcasting, will expand its services to include adult programs and, in addition, the MOE plans to set up a Rural Education Center for adults in each District. These Centers will coordinate the adult education programs and serve as focal points for other rural development activities. Structure 8. The school year runs from October to August. Primary education begins at age six and consists of two cycles (grades 1 to 5 and 6 to 8). While the primary school cycle is longer than advisable, reductions are not possible at this time (para. 12). There is a large number of overage students and the repetition rate is high (18% p.a.). The dropout rate is also high averaging over 40% in the recent past but is now declining. One factor contributing to the high dropout rate is that school fees double after grade 5. In addition, the grade 5 examination acts as a further bar to progression. The four year secondary school course is comprised of two years to the Junior Certificate level and the second two years to the Malawi (Senior) Certificate of Education (MCE) level. One school offers grades 13 and 14 for the Cambridge Higher School Certificate (CHSC). This Certificate qualifies students for entry in overseas universities. All of the school examinations, except for the CHSC, are prepared and administered by the Government Examinations Advisory Council. 9. Entry qualifications for vocational, nursing, primary teachers and agricultural demonstrator training, require at least a Junior Certificate. These are all two-year programs. Post-secondary education includes techni- cian training, T-2 level primary teacher training, secondary teacher training, agriculture diploma and degree training and the university. In 1975 there were 1,200 enrolled in the university and 320 enrolled in universities overseas.  APPENDIX II Page 3 General Education 10. Primary education (grades 1-5 and 6-8) is conducted in Chichewa (or the local language) through grade 4 and in English thereafter. Total enrollment in 1974-75 was 606,000 and represented 56% of the relevant age group (6 to 14 including some overage students). Enrollment growth has averaged about 13.0% p.a. for the last five years. Thirty-six percent of the total enrollment in primary schools were girls. About 75% of the schools are Government assisted. The central Government pays teachers' salaries and local government provides grants for operating expenses. School construction is the responsibility of the local communities. 11. There are 2,000 schools and the average enrollment is about 265, but there are wide variations in average enrollments among the Districts. The planned student/teacher ratio is 50:1 although the present rate is slightly above this figure. Of the present 11,000 teachers about 20% do not have the proper qualifications by MOE standards. Present standards require two years of teacher training after junior secondary education (T3 level) or two years after secondary education (T2 level). However, 300 teachers p.a. have been enrolled in the Malawi Correspondence College in-service teacher training program for upgrading teachers to T3 and T2 levels, and the number of unqualified teachers is declining. The Government also plans to provide a third large teacher training college to supply the demand for additional teachers to meet the needs of expansion. Eventually, this new college, together with the two existing Government colleges, will eliminate the need for the continuation of the missions' teacher training colleges which now supply a large portion of the demand. 12. In addition to the usual core courses and agriculture, the primary school curriculum includes agriculture and domestic science in the upper grades in most schools. Major changes have been made in the primary school curriculum in recent years in an effort to bring the subject matter taught more in line with the needs of the country. Since only 17% of the primary school leavers have the opportunity to continue into secondary schools, it is important that every possible effort be made for primary education to prepare students for life and employment when they complete the primary school cycle. Particular emphasis has been put on the revision of science and mathematics courses since both are important for further education and also for preparing students for life in a rural society. The MOE has experimented with several primary school cycles and, in the past, has tried 5-3-5 and 7-4 year education structure before adopting the present 5-3-4 year structure. The optimum length of the primary cycle is still under review and is being given careful study. A shorter cycle would be advisable but cannot be implemented at this time. However, the design of the new mo(lel primary schools in blocks of two class- room units provides the flexibility required to permit later adjustments. 13. One of the principal weaknesses of the primary school system is in the level of accommodations and school equipment provided by the villagers themselves. The standards of design and furnishings are often not conducive  APPENDIX II Page 4 to good educational practice. Because the villagers are often unable to provide proper buildings constructed of good quality materials, the life of the average school building is about five years. Desks, benches, blackboards and other furnishings are often of poor quality or non-existent. In an effort to assist villages to improve standards of construction, design and equipment, the Government plans to build a model school in each District, with standard design and equipment, which can be replicated by surrounding villages at costs which the villages can afford. 14. General secondary education has a total enrollment of 14,000 of which 25% are girls. There are 60 schools, 25 of which are boarding schools to cater for the widely dispersed population. Because of cultural factors and poor home conditions, the level of student achievement in the boarding schools is far superior to that of the day school students. The completion rates are above 90% in boarding schools and drop as low as 30% in day schools. Girls are particularly responsive to these forces since 90% of the girls in boarding schools complete the 4-year course while only about 25% complete the second- ary school cycle in day schools, and only 10% pass the MCE examination. 15. There are more than 700 teachers in the secondary schools, most of whom are qualified at the diploma or degree level with 3 to 5 years of post-secondary teacher training. As the teacher output increases the number of expatriate teachers continues to decline. In 1974, 62% of these teachers were Malawian while in 1966 less than 25% were Malawian. 16. The secondary school curriculum is in the process of revision but, in many schools, is still overly literary. In recent years, and with the assistance of the first IDA education project (Credit 102-MAI) in 1967, practical subjects have been introduced where facilities and teachers can be provided. Major efforts are being made to bring the curriculum more into line with Malawi's needs. Training in agriculture, woodwork, metalwork, commerce and domestic science will soon be available in most schools. Appropriate revisions in the secondary school teacher training curriculum are being introduced. The output of school leavers from grade 12 is still well below the needs of the labor market and the demand for qualified students to fill post-secondary education places. These deficiencies are particularly notice- able in the case of female school leavers because of the low completion rate of girls in the day schools. 17. Technical schools. There are five technical schools, three of which are private, which provide artisan training in a variety of trades. The entry qualification is a Junior School Certificate. The two Government technical schools, at Lilongwe and Soche, also provide full-time apprenticeship training for 300 trainees in the building and engineering trades. In addition to these schools, there are two Rural Training Centers operated under the Malawi Young Pioneers program which offer one-year technical training courses in electrical, construction, clerical, automotive and engineering skills. These programs lead to acceptance into the apprenticeship plan with subsequent upgrading possibilities through sandwich courses.  APPENDIX II Page 5 18. The Malawi Polytechnic, a division of the University of Malawi, offers training in a variety of fields at the middle and higher levels. Included are courses in business atudies, engineering, public health, labora- tory techniques and technical teacher training. The Polytechnic also provides in-service training for artisan apprentices to enable them to raise the level of their craft certificates and to qualify for higher level employment. About 300 are enrolled in the regular one- to two-year programs and an additional 300 are enrolled in the short-course upgrading programs. A senior School Certifi- cate is required for entry to mosi: of the regular courses. The output of the Polytechnic is well below the demand for skilled employees and the institution is being expanded under a bilateral agreement. The future role of the Poly- technic is under review and recommendations for program revisions and ex- pansion will be presented soon. 19. The Government Staff Training College provides in-service training for administrative officers, senior clerical officers and other specialized occupations within the Government service. The higher level Government employees receive their training through the Institute of Public Administr- ation. 20. Primary Teacher Training is conducted in two Government colleges and six small mission-operated colleges. About 1,900 trainees are enrolled in the two-year program. As summarized in para. 11 above, there are two levels of certification: the T3 which requires two years of training following the Junior Secondary Certificate and the T2 which requires two years of training at the post-secondary level. Some teachers still remain in the system with the old T4 qualification, which required two years of post-primary training, but they are being retrained to the T3 level by the Malawi Correspond- ence College in-service training program. Approximately 300 teachers are enrolled in these programs each year. 21. Secondary teacher training is conducted at Chancellor College of the University of Malawi. This is either a three-year post-secondary diploma course for junior secondary teachers or a five-year degree course for senior secondary teachers. The present output is about 60 teachers p.a. Technical teachers for secondary schools are taught at the Polytechnic in a two-year post-secondary program. The output is about 20 teachers p.a. 22. The University of Malawi has an enrollment of about 1,200 and offers diploma and degree courses in various fields including liberal arts, social studies, science, law and education. Engineering studies are done at the Polytechnic. The expansion plans for the University are geared to the needs for high-level manpower. 23. Agricultural Colleges. The Bunda College of the University of Malawi had an enrollment of 270 in 1975, at both the diploma and degree levels, and plans to expand to 350 by 1980. Most of the present output is absorbed by the Government and the needs of both the public and the private sectors in agriculture are expected to continue to expand. Discussions are underway  APPENDIX II Page 6 with USAID to finance this planned expansion. Colby College, under the MANR, provides agricultural training at the technician level. Plans are underway to expand and improve this College and DANIDA has expressed interest in funding this expansion. Nonformal Education 24. Adult education in Malawi consists of a wide variety of programs, carried on separately by a number of Ministries and agencies but without any coordinated plan. This lack of coordination and planning has resulted in expensive and confusing duplications of programs and has reduced the effective- ness of these training efforts. Nevertheless, the net result is a series of programs which trains an impressive number of adults each year to reasonable standards. The Government is aware of the benefits which might be gained by improved coordination, and the recently created National Council for Education and Training is exploring means by which improved planning can be achieved. 25. The MOE has had little direct responsibility for adult education but plays a major role in the activities of the National Council. As a first step toward taking an active part in this field, the MOE has recently completed plans to construct 22 Rural Education Centers, one in each District. These Centers will become the focal points for all adult education in the country and will make it possible for the diverse programs to share staff and facilities and to plan and schedule these activities in a more productive manner. Among the on-going adult education programs to be included are: Ministry or Agency Training Programs 1. Community Development and Community development leaders, home- Social Welfare craft, health, nutrition, child care, literacy, etc. 2. Health Health assistants, health inspectors, nurses, paramedics, rural health training. 3. Agriculture and Natural Veterinary technicians, fisheries Resources agents, agriculture extension agents, agriculture degree programs, forestry agents, farmer training centers, rural. nutrition, etc. 4. Ministry of Youth and Technical, agricultural and clerical Culture programs within the Malawi Young Pioneers program.  APPENDIX II Page 7 Ministry or Agency Training Programs 5. Malawi Broadcasting Adult and formal school educational Corporation broadcasts. 6. Malawi Library Service A mobile lending library with national coverage. 7. Labor Apprentice program, leadership training, etc. 8. Transportation and Auto repair, postal and telegraph Communications training, etc. 9. Works and Supplies Artisan and technician training 10. Missions Handicraft, homecraft, artisan and agricultural training. 11. The Malawi Correspondence In-service teacher training, corres- College pondence courses for Junior and Senior Secondary School Certificates, etc. 26. Community Development Programs. The activities and programs under the auspices of the Ministry of Community Development and Social Welfare (MCDSW) have proliferated rapidly in recent years. As originally conceived, these programs were confined only to the area of community development methods, but the scope has widened considerably. They are now providing training in health, nutrition, child care, homecraft and literacy, as well as in the training of community leaders and cooperative management. These courses, while useful, duplicate the efforts of other Ministries, particularly in areas such as health, nutrition and chiLd care. The Ministry operates several centers concerned with the training of instructors, field agents and village leaders. They are responsible for the adult literacy program and annually enroll more than 5,000 students. About 200 literacy instructors are trained each year. 27. Health Training. The health services of Malawi are expanding at a rapid rate. The Ministry of Health administers several training programs designed to meet its staffing needs and to provide the mass education required to provide the population at large with the elements of preventive medicine. There are three levels of nursing training with an annual output of 120. About 20 health assistants (paramedics) and 20 health inspectors are trained each year. About ten pharmacy assistants are trained each year and similar number of laboratory assistants. These programs provide for the minimum staffing requirements for the Ministry. A recent WHO study recommended the establishment of network and "primary health centers" to provide preventive as well as curative services for the population. This recommendation was  APPENDIX II Page 8 accepted and the Government has begun to establish health clinics throughout the country. These clinics not only provide treatment and advice but also provide basic health and nutrition education for the rural population. Malawi has several major disease control problems including tuberculosis, bilharzia, leprosy and malaria. 28. Agricultural Training. Malawi's agricultural extension service is one of the best-staffed in Africa. At present the national ratio of extension agents to adult farmers is 1:2000, with many districts as low as 1:250. The goal for the national average is 1:500. The extension staff is trained at Colby College and the professional staff at Bunda College. In addition to the extension program, there are 22 residential Farmer Training Centers and 3 Farm Institutes. The Centers can accommodate 30 farmers and the Institutes 100 for one week to one month courses. These facilities can cater for about 80,000 farmers each year. In addition to training in basic agricultural methods, specialized courses in animal husbandry, fisheries, marketing and nutrition are also offered. The major effort of the MANR will be the National Rural Development Program which will include a continuing series of development projects, involving groups of small farmers in co- operative farm development, introduction of modern concepts and techniques and combining resettlement schemes, credit and marketing services and other inputs to improve productivity. Most of these schemes will be staffed to provide farmer training consonant with the objectives of the individual project. About 25% of all farm families are involved in agricultural de- velopment projects now and it is planned to reach 65% by 1985. The results to date are encouraging. 29. Malawi Young Pioneers. This is one of the more effective African programs attempting to deal with the primary school leaver problem. Most African countries have attempted similar programs but they have not been successful and all have been too costly to replicate extensively. The Malawi program has an annual enrollment of 3,000 boys and girls aged 15-19 in a one- year training program. Thirteen thousand have completed the training in the last five years and 60% of these have gone into farming or have found wage employment. The majority of the students are enrolled at 20 agricultural training bases and successful students are provided with farm plots on com- pleting the course. In addition, there are two Centers that train artisans in construction, farm mechanics, auto repair, woodworking, metalworking, and commercial skills. About 600 trainees are enrolled in one-year courses in these Centers. On completion, they join the apprentice program and continue their training with sandwich courses. 30. Apprentice Program. This is a well-organized program under the Ministry of Labor. It covers a five year period and requires repeated sandwich training courses followed by trade tests at the various levels. The annual entry rate to the apprentice program in 1974 was 600 and this will increase to 1,000 by 1980. There are about 6,000 registered apprentices, at the present time, employed in 12 different trades. The program is well planned and controlled.  APPENDIX II Page 9 31. In-service Training. Several of the Ministries, most notably the Ministries of Works, Transportation and Communication, have regular in-service programs to train artisans and technical personnel for higher level positions. Several hundred employees are enrolled in these courses. The Post and Communications Training Department will soon be moving into a large modern Training Center provided under the first IDA education project. 32. Supporting Programs. In addition to these specialized training programs, there are several general programs which provide additional support. Among these there are: (a) the Malawi Broadcasting Corporation which provides educational broadcasts and special programs on health, nutrition and farming; (b) the Malawi Library Service which provides a nationwide, mobile, lending library service; and (c) the Malawi Correpondence College which provides upgrading training for 300 teachers p.a. and correspondence course for the various school certificates for about 6,000 p.a. The correspondence courses are augmented by 25 Extension Centers where students can get direct assistance from teachers. 33. Mission Training Centers. Many of the mission schools have supple- mented their school facilities with training institutes of various types. Among the skills taught are auto mechanics, building trades, and handicraft, weaving, leatherwork and lapidary techniques. Many of these are excellent institutions and are successful in training youths for rural employment. Sources of Finance 34. Primary Education. By the Education Ordinance issued in 1962, the local education authority in each of the 24 District Councils is responsible for the collection of school fees and physical construction of primary schools. The local authority administers primary schools financed by local funds raised from fees, a small additional amount from the sale of students' needlework products and the grants from the Government. 35. Annual school fees are charged differently as shown below for the students in the urban and rural areas and also by grade: Urban Rural Grades 1 - 5 MK3.00 MK1.50 Grades 6 - 8 MK6.00 MK3.50 Several considerations which lead to this urban-rural differential in fees include: (i) the urban-rural income disparity; (ii) the policy to discourage urban migration of youth; and (iii) an attempt to compensate for the con- tribution of the rural labor to school construction through self-help schemes which take place mostly in the rural areas. The funds from school fees are  APPENDIX II Page 10 generally used to pay for the expenses incurred in administration, transport, texbooks, equipment and maintenance. 1/ The cost of textbooks and equipment takes about 85% of the locally raised funds. 36. The Government assists the local education authorities in the form of grants and subventions which cover the payment of teachers' salaries, which amount to more than 90% of the total cost of assisted primary schools. In 1975/76 it is estimated that out of the total assisted primary education expenditure of MK5.1 million, MK4.9 million will be financed by the Government. 37. The expenditure incurred for primary school building construction is undertaken by local communities on a self-help basis with some assistance from District Councils. In the urban areas there are some exceptional cases in which the Government finances school construction. Little is known, however, of the details of capital expenditures on primary education. 38. The unassisted primary schools are almost fully financed by school fees, but little information is available on the cost and financing of these schools. 39. Secondary Education and University. All recurrent and capital expenditures of government secondary schools are financed by the Government. The unassisted schools which are run by either Catholic or Protestant denominations which are responsible for financing the physical construction of the schools, as well as the payment of teachers' salaries. The annual tuition fee is MK15.0 for day and boarding students. A secondary school boarding student pays NK35.0, including the cost of boarding. The fees of Government schools are collected by the Government, while assisted schools collect the fees themselves. 40. The University of Malawi is supported by the Government in the form of grants and subventions to cover recurrent expenditure. Capital expenditures are financed by the Government and by foreign assistance. Expenditure on Education and Training 41. Total Expenditure. The actual and estimated expenditure in 1970/71 and 1975/76 is summarized as follows: 1t In 1974/75 the expenditure of local authorities on those items was estimated at about MK 0.18 million.  APPENDIX II Page 11 (MK Million) % increase 1970/'71 1975/76 p.a. 1970-75 Rec. Cap. /1 Total Rec. Cap./1 Total Recurrent Ministry of Education 7.96 2.85 10.81 11.87 1.79 13.66 8.3 Others 3.44 - 3.44 4.45 - 4.45 5.3 Total Exp. on Ed. & Training 11.40 - 11.40 16.32 - 16.32 7.5 Total Gov't Exp. 46.95 35.17 82.12 75.95 63.62 139.57 10.1 MOE as % of Total Gov't Exp. 16.9 8.1 13.2 15.6 2.8 9.8 - Total Ed. Exp. as % of Total Gov't Exp. 24.3 - - 21.5 - - /1 Includes government and foreign sources. During the 1970-75 period, the recurrent expenditure of the Ministry of Education increased at an annual average rate of 8.3% while that of the Government grew at a higher rate of 10.1%. The recurrent expenditure of the Ministry of Education as a percentage of the total Government recurrent expenditure declined slightly froa 16.9% to 15.6% over the same period. The share of the total expenditure on education and training also decreased from 24.3% to 21.5%. In 1974 the total expenditure on education and training, including both recurrent and capital, accounted for 3.1% of GDP. 42. Ministry of Education. The percentage distribution of the actual and estimated recurrent expenditure of the Ministry of Education is shown below, by function, for the years of 1970/71 and 1975/76: Adm. Tech. Malawi Univ. & Prim. Sec. Teach. Voc. Corres. of T o t a 1 gen. Ed. Ed. Trg. Sp. Ed. College Malawi % MK Million 1970/71 6.0 42.3 18.1 4.4 2.0 1.7 25.5 100.0 7.96 1975/76 7.8 43.4 17.9 4.3 1.7 1.8 23.1 100.0 11.87 The largest proportion of expendit:ure was incurred in primary education which amounted to more than 40%. When the expenditures on primary and secondary education are combined with that ior the University of Malawi, they account for about 85% of the total expenditure of the Ministry of Education. Also  APPENDIX II Page 12 it is noted that there has not been any significant change in the allocation pattern of the Ministry's budget over the 5-year period except for a slight increase in the proportion expended on primary education and a decrease in the proportion of the University of Malawi expenditures. 43. Teachers' Salaries. As in most other countries, teachers' salaries constitute the largest share of education expenses. Almost 80% of the expenditure is for salary payment. A primary school teacher at the average salary scale receives about 7 to 8 times more than the per capita income. The salary scales are listed below for primary school teachers with dif- ferent qualifications: (Malawi Kwacha) T2 T3 T4 T5 Temporary Minimum 495 390 342 222 65 Average 576 762 606 - - Maximum 1359 981 630 276 65 T2 teachers are evaluated after four years of service (an efficiency bar) and if they pass (almost automatic), they receive an increase to MK630. The table above shows that T2 teachers' average salary is lower than that of T3's. This is because of seniority. Most of T2 teachers came into service in the last 5 years while the majority of T3 teachers started their service in the late 1950s. T3 teachers take an efficiency bar after eight years of service and receive an "automatic" increase to MK630. There is no efficiency bar for T4 teachers. 44. It is further observed that significant differences exist in the starting salary by qualification. For instance, T2 teachers receive about 1.5 times as much as T4 teachers and 1.3 times as much as T3 teachers at their entrance into service. This has a direct effect on the cost of primary educa- tion since the number of T2 teachers is increasing. Financial implications of these salary scales need to be carefully evaluated in the teacher training policy. In 1973/74, the unit cost of primary education was estimated at about MK11.8, but it is likely to increase because of the salary structure of teachers and a possible lowering of the pupil/teacher ratio.  APPENDIX II Page 13 45. The salary scale for government and assisted secondary school teachers is shown below: (Malawi Kwacha) Degree Holder Diploma Holder E T3 E T2 E Tl /1 Minimum 1587 1038 1587 2145 Maximum 3780 1521 2074 1709 /1 ET stands for executive teachers grouped in three levels by seniority. A degree holder teacher is called a professional education officer whose average salary ranges from MK1921 to MK2268; that of an executive teacher, (a diploma holder) ranges from 11K(266 to MK1521. In 1974/75 grants for salaries and wages for assisted schools accounted for about 76% of the total secondary school expenditure. Future Education Expenditure 46. The Government's three-year development plan for the 1975/76 - 1977/78 period calls for the total capital investment of MK171.2 million, 75% of which depends upon foreign assistance. The Ministry of Education's share will be about 3% of the total expected investment. 47. Given the Ministry of Finance's conservative projection that the Government recurrent expenditure will increase at an annual average rate of 5% (at constant prices), the share of total education and training expenditure would increase from the present 21% to 24% by 1985/86. This rise is partly related to the conservative nature of the forecast of the Ministry of Finance. The Ministry's expenditure is now permitted to grow at the rate of 10% p.a. (excluding the University of Malawi which is allowed to increase only by 5% p.a.). But if the Ministry's average rate of increase were maintained at 7% p.a. for the next dacade, the Ministry's share in the total Central Government recurrent expenditure would rise from the current 15.6% to 18.0% by 1985/86, which compares favorably with other African countries.  REPUBLIC CF MAALAwI SEICOIID EDUCATIOiN PROJECT ZmpioymentZL Structure by Sector, 19M1-74 1971 1972 1973 1974 No. % No. % No. % No. % Agriculture, Forestry 57400 33.3 63700 33.6 76300 35.4 77500 34.8 and Fishing Manufacturing 21800 12.6 23200 12.2 25600 11.9 26600 11.9 Mining and Construction 18400 10.7 19000 10.0 21900 10.2 23700 10.6 Transport, Power, 11300 6.6 12200 6.4 13400 6.2 13800 6.3 Utilities, etc. Distribution and 15200 8.8 17300 9.2 20200 9.4 22800 10.2 Finance Other Services 48300 28.0 54200 28.6 57900 26.9 58500 26.2 Total Private 119500 69.3 130500 68.9 150100 69.7 157000 70.4 Gov-t 52800 30.7 59000 31.1 65200 30.3 66100 29.6 Grand Total 172300 100.0 189600 100.0 215300 100.0 223100 100.00 Total Agr. 57400 33.3 63700 33.6 76300 35.4 n.a. n.a. Non-Agr. 114900 66.7 125800 66.4 139100 64.6 Total Male 159200 92.3 174200 91.7 193900 89.9 n.a. n.a. Female 13300 7.7 15700 8.3 21900 10.1 L Paid workers in the enterprises employing 20 and more. Additional 300,000 are estimated in smaller enterDrises. Besides, there are about 275,000 working in the neighboring countries, Source: NSO, Statistical Yearbook 1974 and Office of President & Cibinet. May 1975.  REPUBLIC OF MALAWI SECOND EDUCATION PROJECT Past and Projected Primary and Secondary Enrollment 1970/71 1972/73 1974/75 1980/81 1985/86 Average % increase p1a. Primary Education Grade 1 98,200 148,900 190,000 227,000 263,100 2 66,200 95,100 119,300 172,100 199,400 3 53,900 67;8Q0 92 9g0 141,800 164,400 4 41,000 47,300 62,800 109,200 117,600 5 32,400 37,400 43,900 89,400 103,600 6 23,000 28,400 32,600 68,700 79,700 7 20,400 23,700 27,500 62,900 72,800 8 27,500 32,800 37,100 35,800 92,200 Total 362,600 481,400 606,100 936,900 1,092,800 13.7 5.6 Of which Assisted Schools 321,900 436,400 543,600 848,300 998,800 Unassisted Schools 40,700 45,000 62,500 88,600 103,200 Secondary Education Grade 9 3,800 4,100 4,300 5,100 8,100 10 3,700 4,100 4,300 5,600 8,000 11 2,200 2,700 2,700 4,000 5,000 12 2,000 2,500 2,900 4,000 4,900 Total 11,700 13,400 14,200 18,700 26,000 4.8 5.7 Source: Ministry of Education and Bank Group staff estimates. September 1975  REPUBLIC OF MALAWI SECOND EDUCATION PROJECT Actual and Projected Enrollment at the University of Malawi 1973/74 1975/76 1977/78 1979/80 1985/86 Chancellor College Total 590 610 730 790 1200 Bunda College Degree 50 70 40 60 80 Diploma 160 200 290 290 360 Total 210 270 330 350 440 Polytechnic Total 300 310 390 420 600 University Total 1100 1190 1450 1560 2240 /1 The University's Committee projected the enrollment on the basis that the total enrollment would increase by 45% over the 1973/74 and 1979/80 period. The Bank staff extended the projection assuming that the 1973/74 enrollment would double by 1985/86. Sources: Report of the University of Malawi Manpower Assessment Committee and Bank staff estimate. May 1975.  REPUBLIC OF MALAWI SECOND EDUCATION PROJECT Teacher Requirement and Supply. 1975-85 Primary Education (Assisted Schools) R e q u i r e m e n t S u p p y Additional, 1975 - 85 Additional, 1975-85 For For Replacement 1975 1985 Expansion Attrition of Unqualified Total T2 T3 Total 1/ Enrollment 544,000 999,000 Pupil/Teacher ratio 50 50 Teachers 10,900 20,000 9,100 2,200 3,200 14,500 4,200 5,100 9,300 SECONDARY EDUCATION R e q u i r e m e n t S u p p I y Additional, 1975 - 85 Additional, 1975 - 85 For For Replacement 1975 1985 Expansion Attrition of Expatriates Total Degree Diploma Total Enrollment 14,200 26,000 Pupil/Teacher ratio 20 25 Teachers 710 1,040 330 130 270 730 380 250 630 1/ Of these total, 1200 T2 and 600 T3 teachers are expected to be provided from the Mzuzu Teacher Training College Z included in the proposed project, They do not include in-service teacher training which at present retrains an average of about 300 unqualified teachers p.a. Sources: Ministry of Education and Bank Group staff estimates. May 1975.  REPUBLIC OF MALAWI SECOND EDUCATION PROJECT Central Government Recurrent Expenditure on Education and Training, 1970/71 - 1985/86 (Mk '000s) Actual Rev. Est, Estimate Proiected % increase p. a. 1970/71 / 1971/72 1972/73 1973/74 1974/75 1975/76 1980/81 1985/86 1970-75 1975-85 A. Total Gov't Expenditure 46,945 50,461 56,063 61,733 72,885 75,946 97,500 124,400 10.1 5.0 B. Total Expenditure on Education and Training 11,398 11,838 12,812 13,426 15,222 16,317 22,000 30,100 7.5 6.3 i) Ministry of Education 7,957 8,541 9,267 10,023 11,271 11.866 17,000 22,400 8.3 6.6 ii) Other Ministries/ Departments/Agencies 3,441 3,297 3,545 3,403 3,951 4,451 5,000 7,700 5.3 5.7 C. MOE Expenditure as % of Total Gov't Expenditure 16.9 16.9 16.5 16.2 15.5 15.6 17.4 18.0 - - D. Total Education & Training Expenditure as 7% of Total Gov't Expenditure 24.3 23.5 22.9 21.7 20.9 21.5 22.6 24.2 - _ L The 1970/71 covers from January 1970 to March 1971 due to change in the fiscal year. Sources: Ministry of Finance and Bank staff estimates. May 1975  ANNEX 6 REPUBLIC OF MALAWI SECOND EDUCATION PROJECT Estimated Cost by Type of Expenditure MK (million) US$ (million) % of Local Foreign Total Local Foreign Total Total 1. Civil Works (buildings/ site works) (a) Teaching and Communal 1.74 1.43 3.17 2.09 1.71 3.80 35 (b) Boarding 1.06 0.86 1.92 1.27 1.04 2.31 22 (c) Staff Housing 0.73 0.60 1.33 0.88 0.71 1.59 15 Sub-total (a - c) 3.53 2.89 6.42 4.24 3.46 7.70 72 (d) Professional Services 0.34 0.22 0.56 0.40 0.27 0.67 6 2. Furniture 0.24 0.30 0.54 0.29 0.35 0.64 3. Equipment 0.08 0.73 0.81 0.10 0.88 0.98 9 4. Technical Assistance 0.08 0.34 0.42 0.10 0.40 0.50 4 5. Project Administration 0.15 0.07 0.22 0.18 0.09 0.27 3 (including equipment, vehicles, vehicle operat- ing costs and pre- investment studies) - - _ Total Baseline Cost 4.42 4.55 8.97 5.31 5.45 10.76 100 (September 1975, negotiation date) 6. Contingencies (a) Unforeseen events (9%) 0.42 0.38 0.80 0.50 0.46 0.96 (b) Price increase (28%) 1.38 1.35 2.73 1.68 1.60 3.28 Sub-total (a - b) 1.80 1.73 3.53 2.18 2.06 4.24 TOTAL PROJECT COST (1 - 6) 6.24 6.26 12.50 7.49 7.51 15.00 September 1975  .. . .... ....~~~~~~~~99999999 fi! 7m 799 D977 9999tV9- 7U 7977F9! 7 -7-1 vw77 nf nl nr. 9799999 i 797977 . -Tf - 7977 99 9997 77999 7999 797 7I7 mi z~~~~~ 9~~~7 ny cyiz -ni fly 999 9999999~~~~~~~~~~~~~~~eeT- - 99*9 0.999 7977* 7977997 ii9~~~~~~~~~~~~~~~~~~~~9&99* 79997 999792 799999 9 999 99992 99999 9979~~~~~~~~~~~~~~~~~~~..... .... -gl YU m1 T - I 9979 .99 .79 99999 9 9..999 9 9....99 9779 99r 999 . (9999 .99 7997-m979 --.a 7 7'! OW - - - 797 '9'- 9l fy -w 9 9.o9 999T *999 9*99 99* - - - -~ ~ ~ ~ ~ ~ ~ ~ ~ - T99999999999 999 '7 177 9 9 9 9* 99 99 9999. 99 9999 999 799L 99 9 799 99 *-9 99999   a + i 0 + ++1+ t I -zo .~~~~~~- 'V +++|~o s ++ + ++ + i _', ol~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~o __ . _O _' ___a 4' i5 9 : tI -o c aa a n o 3 e g | g ++ s z +t | t Z i i ol r~~~~~~~~~~~~~~~~~~~~~~~~a? 99 _t *04 a a Ca a aO 0 0S0 .5: S~~~~~~~~~~~~~~~~~~40 O .a . ' O 0 0 a < ~ F 40 a, a- nsgtoO9vvi -