Liberia - Third Education Project

Report No 1 358a-LBR FILE COPY Liberia: Appraisal of a Third Education Project April 8, 1977 Projects Department Western Africa Regional Office Education Division FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the pertormance ot their official duties Its contents may not otherwise be disclosed without World Bank authorization  CURRENCY EQUIVALENTS US$ 1.00 = L $ 1.00 MEASURES AND EQUIVALENTS 1 square foot (sq. ft.) = 0.092 square meter FISCAL YEAR July 1 to June 30  FOR OFFICIAL USE ONLY LIBERIA APPRAISAL OF A THIRD EDUCATION PROJECT TABLE OF CONTENTS Page No. ACRONYMS USED BASIC DATA SUMMARY AND CONCLUSIONS .. . .. a .............................. . i - iv I. INTRODUCTION . .......................................... 1 II. SOCIO-ECONOMIC SETTING ........ . . . ............................... . 3 A. Socio-Economic Conditions and Plans ................ 3 B. Manpower and Training Requirements ........ . ....... 3 C. Education Sector and Development Strategy ......... 5 D. Role of the Bank ...... ............................ 7 III. THE PROJECT ............................................ 7 A. Summary .................. -.7 B. Project Composition .............. . ........... ...... . 8 C. Project Costs and Financing ....................... 12 IV. IMPLEMENTATION . ...................... ........ . ........ 15 V. AGREEMENTS REACHED AND RECOMMENDATION ................... 17 A. Assurances ......................* ............. 17 B. Condition ....................... 18 This report is based on the findings of an appraisal mission that visited Liberia in August 1976. The mission consisted of Messrs. R. Romain (general educator), J. Coates (economist), W. Cooper (technical educator) and G. Hadjicostas (civil engineer). I This document has a tricted distribution and may be used by recipients only in the performanco of their official duties. Its cotents may not otherwise be disclosed without World Bank authorization.  TABLE OF CONTENTS (Continued) ANNEXES 1. Comparative Education Indicators 2. Project Content of First and Second and Proposed Third Education Projects and their Relationship to Government's Education Sector Objectives 3. Manpower in Liberia Table 1 - Modern Sector Employment Matrix (Occupation by Industry for 1974) Table 2 - Expatriate Employment in Liberia by Occupation and Country of Origin, 1974 Table 3 - Projected Modern Sector Employment Matrix (Occupation by Industry) for 1982 Table 4 - Projected Modern Sector Employment in 1982, by Sector Table 5 - Average Annual Demand for Labor over the period 1974-1982 Table 6 - Demand for Skilled Workers in the Trades and Supervisory Personnel Table 7 - Projection of Monrovia's Labor Force Requirements by Sector 1974-1982 Table 8 - Employment Requirements by Occupation in Monrovia, 1974-1982 4. The Education System: Its Financing and Development Table 1 - Projection of Secondary School Teacher Requirements Table 2 - Budgeted Expenditures on Education and Training by the Government of Liberia Table 3 - Structural Analysis of the Budget of the Ministry of Education Chart 1 - Ministry of Education Organizational Structure Chart 2 - Structure of the School System 1975 Chart 3 - 1974 School Enrollment Pyramid (by grade) 5. Teacher Training Requirements to be met by Special Government Programs 6 (a) Cost Summary 6 (b) ( Contingency Allowances ( Assumed Price Increases 6 (c) IBRD Financing by Major Category of Expenditure 7. Summary of Technical Assistance and Fellowship Program 8. Implementation Schedule 9. Schedule of Disbursements 10. Disbursements by Major Category of Expenditure MAP IBRD 12498  ACRONYMS USED ADB - African Development Bank AITB - Agricultural and Industrial Training Board, Monrovia EDF - European Development Fund FTI - Forestry Training Institute, Bomi Hills LAMCO - Liberian-American Mining Company LSVTC - Liberian-Swedish Vocational Training Center, Yekepa NCVTET - National Council for Vocational and Technical Education and Training PIU - Project Implementation Unit, Ministry of Education STC - Science/Technology Center (attached to secondary schools) USAID - United States Agency for International Development VTC - Vocational Training Center, Monrovia   LIBERIA BASIC DATA General Land area: 111,400 km2 Population (1975 Est.) 1,550,000 % urban: 28% (urban = community of more than 2,000 persons) Total population growth rEte (1962-74): 3.3% Urban population growth are (1962-74): 8.6% Modern sector labor force growth rate (1962-74): 3.5% Education 1. Enrollments (1975): Number Female Enrollment Ratios (a) Primary 157,821 36% 65% (6-11 age group) (b) Total Secondary 32,978 25% 15% (12-17 age group) Junior High 22,605 27% Senior High 10,373 22% (c) Technical/Vocational 1,099 10% (d) Higher Education 2,759 University of Liberia 1,984 21% Cuttington College (1974) 350 Foreign scholarships 425 2. Teachers (1975): Pupils/ Number Female Qualified Teachers Primary 4,554 29% 25% 35 Secondary 1,268 15% 66% 26 Teacher Training (Primary) 53 23% n.a. 8  3. Education Finance (1975): Public Education Expenditure per capita US$ 10.3 Per pupil expenditure Primary Education US$ 37 Per pupil expenditure Secondary Education us$ 11o Per pupil expenditure Technical/Vocational US$ 730 Per pupil expenditure Teacher Training us$ goo Per student expenditure University US$ 1,290 Percent of Current Government Expenditure to Ministry of Education (1975) 13.3% Percent of GNP devoted to Public 2.5% Education Expenditure GNP per capita US$ 410  LIBERIA APPRAISAL OF A THIRD EDUCATION PROJECT SUMMARY AND CONCLUSIONS i. This report appraises a third education project for Liberia, for which a Bank loan of US$6.3 million is proposed. The first and second projects together with the proposed third project provide a phased and co- ordinated program of assistance for education spanning eight years (1972-80) that is helping Liberia to develop a sound education system. Background ii. At the time of initial Government and Bank Group collaboration in the education sector, the Liberian education system was poorly suited to the needs of the country. There were a number of good educational in- stitutions, but the major part of the system suffered from lack of plan- ning, administrative weaknesses, uneven distribution of schools, inadequate financial provision, underpaid and ill-trained teachers, unsuitable physical facilities, shortages of teaching materials, academically biased curricula, and lack of effective technical and agricultural training. iii. The first education project, Credit 305-LBR for US$7.2 million, signed in May 1972, contributed to an improvement of physical facilities in specific high priority areas, through construction or extension of an agri- cultural and forestry college, two multilateral high schools and a rural primary teacher training institute. To lay the foundation for sound educa- tional planning, the project financed technical assistance for the prepara- tion of an indicative manpower plan and a long-range plan (1976-87) for the University of Liberia. Together, these two plans provided data for another project-assisted planning exercise: the initial draft of a long-range educa- tion plan (1976-84) now being completed under the second education project. This plan formed the basis for determining priorities for Bank investment in the second and proposed third projects. iv. At early stages of project implementation, there were delays in the construction program due to lack of experience in the newly-created Project Implementation Unit (PIU), shortages of certain building materials, and limited capacity of the local construction industry. The latter dif- ficulty was overcome by breaking down civil works contracts into smaller packages which local contractors could execute more easily. The project is expected to be completed with a six-month delay and only a modest cost overrun, to be financed by the Government. v. The second project, Loan 1266T-LBR for US$4.0 million, signed in June 1976, provides assistance to the Ministry of Education to: (a) improve its organizational structure and procedures for financial and personnel administration and for procurement and distribution of educational supplies;  - ii - (b) strengthen curriculum development, educational testing, textbook produc- tion and adult education; (c) increase access to education in the rural areas through the construction of community schools in some 45 villages and through further expansion of primary teacher training, particularly for women; and (d) prepare project items to be financed under the third project. Compared with the first project, the project has substantially increased the fellowship and staff training components and, where necessary, technical assistance in order to overcome difficulties of local staff shortages and inadequate on-the- job or fellowship training. Experience gained by the Project Implementation Unit during the first project has markedly improved performance under the second project; since Loan effectiveness in July 1976, construction contracts have been awarded and project implementation is on schedule. Project Description vi. The proposed third education project aims mainly at meeting specific training needs and improving science education. The project would be implemented over the period 1977-80 and would provide US$6.3 million to: (a) Strengthen industrial training by: (i) constructing, furnishing and equipping buildings for an Agricultural and Industrial Training Board (AITB) and for a vocational training center (VTC) in Monrovia; and (ii) providing technical assistance and fellowships to establish the training bureau and the VTC, and fellowships and equipment to develop manpower planning; (b) Expand forestry training by constructing, furnishing and equipping a training institute for forest rangers and forestry workers, and providing technical assist- ance and fellowships to help establish the institute; (c) Improve secondary education in science and technology by: (i) constructing, furnishing and equipping science/ technology centers at four rural secondary schools; (ii) providing technical assistance to help launch these new science programs; (iii) providing fellowships for training education administrators and secondary teacher trainers; and  - iii - (iv) supplying vehicles and equipment for field and office work related to the above training programs; and (d) Strengthen educational architecture by providing fellow- ships, technical assistance and equipment. vii. The competently staffed Project Implementation Unit (PIU) respon- sible for implementing the first two education projects would be expanded to implement the proposed third project. Implementation of the project would involve collaboration of the PIU with the Ministry of Labor, Youth and Sports, the Ministry of Planning and Economic Affairs, the Ministry of Agri- culture and Forestry, and the University of Liberia. Each of these agencies has nominated a staff member to liaise with the PIU on project implementation. viii. A new Division of Educational Facilities is being established within the Bureau of Planning and Research of the Ministry of Education. When the Division is fully staffed with trained personnel, it will render the Ministry independent of consulting architects for most planning and project work. The new Division will report directly to the Project Director on project matters, and will be responsible for the design and site supervision work for all three Bank Group projects. Cost Estimates ix. The total cost of the project, including US$1.0 million in taxes and customs duties, is estimated at US$9.5 million with a foreign exchange compo- nent equivalent to the proposed loan of US$6.3 million, 66% of the total cost or 74% of the net-of-tax cost of US$8.5 million. Cost estimates for con- struction are based on recent contracts for building construction in Liberia similar to those in the project, estimated for January 1977. The estimated average cost of construction is US$250 per square meter of gross area, which compares favorably with prevailing costs for similar construction in neigh- boring West African countries. The cost of technical assistance is estimated to average US$36,000 per man-year and is based on recent experience of Unesco and the Government in recruiting technical assistance personnel for Liberia under direct contract. The project cost includes an allowance for physical contingencies consisting of 6% for civil works, architects' fees and furni- ture, and 8% for equipment. The allowance for price increases is 24% of the base cost plus physical contingencies. Procurement and Disbursement x. Civil works valued at US$3.8 million, furniture valued at US$0.3 million, and equipment valued at US$1.4 million would be procured on the basis of international competitive bidding in accordance with the Bank's guidelines. Furniture, equipment, vehicles and other items which cannot be grouped in pack- ages of at least US$50,000 equivalent each, or which are not suitable for in- ternational competitive bidding, would be procured on the basis of quotations or through local competitive bidding, following procedures acceptable to the  - iv - Bank. The value of such purchases is expected to be about US$0.2 million. Local manufacturers of furniture and equipment would be allowed a preferential margin of 15% of the c.i.f. price of competing imports or the total applicable customs duties and import taxes, whichever is lower. xi. The funds from the loan account would be disbursed as follows: (a) 55% of total civil works expenditures, including pro- fessional fees (US$2.4 million); (b) 100% of foreign expenditures for directly imported and 65% of expenditures for locally procured furniture and equipment (US$1.3 million); (c) 85% of total expenditures for technical assistance (US$0.9 million); and (d) 100% of foreign expenditures for fellowships (US$0.8 million). US$0.9 million would be unallocated. All disbursements would be fully docu- mented. Any funds remaining undisbursed at the completion of the project would be cancelled. The project is expected to be completed in about 3-1/2 years after loan signing. xii. The Project Implementation Unit, which has so far kept records of project expenditures in a satisfactory manner, with an annual audit by an independent firm of auditors, would continue to maintain project accounts with such independent audits. xiii. The proposed project constitutes a suitable basis for a loan of US$6.3 million for a term of 20 years, including a 4-1/2 year grace period.  LIBERIA APPRAISAL OF A THIRD EDUCATION PROJECT I. INTRODUCTION 1.01 This report appraises a third education project for Liberia, for which a Bank loan of US$6.3 million is proposed. The first and second projects together with the proposed third project provide a phased and co- ordinated program of assistance for education spanning eight years (1972-80) that is helping Liberia to develop a sound education system. 1.02 Credit 305-LBR. The appraisal report of the first education project (US$7.2 million, signed in May 1972), indicated that the Liberian education system was poorly suited to the needs of the country. There were a number of good educational institutions, but the major part of the system suffered from lack of planning, administrative weaknesses, uneven distribution of schools, inadequate financial provision, underpaid and ill-trained teachers, unsuitable physical facilities, shortages of teaching materials, academically biased cur- ricula, and lack of effective technical and agricultural training. 1.03 To help overcome some of the these difficulties, the first project emphasized educational planning. The preliminary step was the preparation of an indicative manpower plan, which represented one of the first elements in drawing up the National Socio-Economic Development Plan (1976-80). It also led to the setting up of a Division of Manpower Planning in the Ministry of Planning and Economic Affairs, and recommended the creation of a National Training Board; the latter is being established and will be supported under the proposed third project. The project also assisted the University of Liberia in publishing a long-range plan (1976-87) which clarified University objectives, recommended changes in policy, proposed alternative enrollment and financial projections, and prepared an outline plan of the physical facilities needed for future development. Together, the manpower and university plans provided data which enabled the Government to prepare, with project-financed technical assistance, a draft Long-Range Education Plan (1976-84); funds are included under the second project for its completion. This plan provided the first reliable enrollment projections and financial requirements for all levels of Liberian education and was influential in bringing about improvement in teachers' salaries. It also formed the basis on which priorities for Bank investment in the second and proposed third projects could be determined. 1.04 Constraints in planning, administration and funding limited the ex- tent to which the first project could contribute to an improvement in physical facilities. A start was made, however, in certain areas of high priority: (a) construction of a new College of Agriculture and Forestry and two multi- lateral high schools with a science/agricultural/technical education bias, (b) extensions to a rural teacher training institute for primary teachers, and (c) provision of science teaching equipment to the Teacher College of the University of Liberia for secondary teachers.  -2- 1.05 Loan 1266T-LBR. Planning work under the first project defined more clearly the deficiencies in the system and provided support for Bank sector and identification studies leading to the second education project. The second project (US$4.0 million, signed in July 1976) provides assistance to the Ministry of Education to: (a) improve its organizational structure and procedures for financial and personnel administration and for procurement and distribution of educational supplies, (b) strengthen curriculum develop- ment, educational testing, textbook production, and adult education, (c) in- crease access to education in rural areas through the construction of commu- nity schools in some 45 villages and through further expansion of primary teacher training, particularly for women, and (d) prepare project items to be financed under the third project. 1.06 First and second project implementation. The first project estab- lished a Project Implementation Unit (PIU) within the Ministry of Educa- tion -- a unit on which other parts of the Ministry and other donor agencies, including the African Development Bank (ADB), are becoming increasingly dependent. At the early stages of project implementation, there were delays in the construction program due to lack of experience in project administra- tion, shortages of certain building materials, and limited capacity of the local construction industry. The latter difficulty was overcome by breaking down civil works contracts into smaller packages which local contractors could execute more easily. The education and university planning components have proceeded satisfactorily, and the project is expected to be completed with a six-month delay and with only a modest cost overrun, to be financed by the Government. Experience gained by the PIU in implementing the first project has markedly improved performance under the second project; since loan effectiveness in July 1976, construction contracts have been awarded and project implementation is on schedule. 1.07 Because skills in project administration, as well as in planning and technical teacher training, were not readily available in Liberia, the first project provided technical assistance and fellowships in these areas. As the project developed, it became clear that manpower shortages were more acute than had been anticipated and the need for technical assistance more persistent. It also appeared that insufficient emphasis had been placed on training Liberians through fellowships or on-the-job training by the tech- nical assistance personnel. Under the second and proposed third projects, the training components have been increased substantially, and technical assistance will be provided where critical staff shortages still exist. 1.08 Third project preparation. Bank missions that visited Liberia in April and November 1974 to identify the second education project found that some of the many project items for which assistance was requested were ready for financing, while others needed further preparation; it was decided to include the latter in the proposed third project. The project was prepared jointly by the Bank, Unesco and the Government. The appraisal mission, which visited Liberia in August 1976, comprised Messrs. R. Romain (general educa- tor), J. Coates (economist), W. Cooper (technical educator) and G. Hadjicostas (civil engineer), and was joined by Mr. G. Abdi (loan officer).  -3- II. SOCIO-ECONOMIC SETTING A. Socio-Economic Conditions and Plans 2 2.01 Liberia, with an area of 111,400 km , has a population of about 1.5 million (1975 est.), about 28% of whom live in urban areas where the annual growth rate averages 8.6%, compared with 3.3% for the population as a whole. About 41% of the population is under 15 years of age. Per capita GNP in 1975 was US$410. Income distribution is uneven: about 5% of the population, comprising urban dwellers in the highest income groups, receive about 60% of the national income; 24%, comprising mostly urban and other modern sector employees, receive 15%; and 71%, comprising the labor force in the traditional sector (mainly subsistence agriculture), receive the remaining 25% of the country's income. 2.02 Real growth in GDP from 1964 to 1974 was good, reaching 5.7% per year. The modern sector, which accounts for 86% of output, grew at 6% per year. Iron ore mining by large concessions constitutes one-third of pro- duction in the modern economy, and together with rubber production provides about 80% of exports and one-third of Government revenues. 2.03 According to the National Four-Year Development Plan (1976-80), real growth over the 1976-80 period was projected to be about 6.8% per year. However, because of delays in the implementation of expected investments in iron ore mining and a reduction in the strength of the demand for the coun- try's main exports, a recent Bank economic mission has estimated that real growth for this period would be between 3% and 4%. 2.04 Growth in Liberia is now heavily dependent on developments in the exploitation of iron ore reserves, timber resources and rubber production -- all of which are dominated by foreign concerns. In an attempt to diversify production and exports, integrate the population into the modern economy, and provide a basis for future growth, the Government is: (a) promoting the ex- pansion of light manufactures, and the local processing of timber and rubber; (b) increasing the production of food and cash crops through special schemes and integrated rural development projects; (c) investing in roads, port facil- ities and utilities; and (d) increasing investments in education and training to develop the skilled manpower necessary to support economic expansion, over- see the maintenance of the country's renewable natural resources, and reduce the dependence on expatriate personnel. B. Manpower and Training Requirements 2.05 The shortage of Liberian manpower at all levels is one of the more serious development constraints, requiring the country to depend extensively on expatriates. The Government has decided that public and private sector training programs and employment policies should aim at Liberianizing the work force as expeditiously as possible. Based on the lower estimates for growth between 1976-80, and assuming production and investment in iron ore mining  increases in the early 1980's, the modern sector will require an estimated 14,000 new workers per year over the 1974-82 period; 43% of them will be needed for new work places, 49% for replacements and 8% for Liberianizing the existing work force (Annex 3). The greatest needs are for production and related workers (28%) and for agricultural and related workers (27%). Skilled craftsmen from these two categories will comprise about 20% of total annual demand; the remainder of annual demand includes professional, technical, administrative and managerial workers (13%); clerical, sales and service workers (22%); and other miscellaneous occupations (10%). 2.06 Manpower requirements of the forestry sector are estimated to be an additional 5,000 vocational, 800 technical and 140 professional person- nel over the 1975-85 period, or an average yearly requirement of about 600 workers. Total annual demand for skilled craftsmen in the electrical, auto- motive, mechanical and construction trades is about 1,700, with the Monrovia area requiring about 700. 2.07 A broad-based Government strategy for manpower development is being formulated. A National Council for Vocational and Technical Education and Training (NCVTET) has been established with public and private sector participation to coordinate national vocational training programs and poli- cies. Its secretariat is the Manpower Planning Division which was established under the first education project (para. 1.06) and has undertaken planning at the macro-level. This Division will monitor the progress of Liberianization, and in this context will ensure that manpower development plans and policies of individual firms and agencies are consistent with the Government's Liberi- anization and economic growth targets. An Agricultural and Industrial Training Board (AITB), to be established as an autonomous body responsible to the National Council, would coordinate and implement national policies and pro- grams related to agricultural and industrial training. The national strategy involves using a combination of private sector and Government-supported training programs to cover the public and private sector needs not met by the major private employers. The large concessions in mining and rubber will con- tinue to operate their training programs. In the public sector an Institute of Public Administration and a Civil Service Agency have been established to improve training and personnel administration. In collaboration with Sierra Leone, middle-level training programs are being organized for customs, for- estry and telecommunications. The customs and telecommunications training programs are underway. The Liberian Government is seeking assistance from the Bank for forestry and vocational training to meet specific manpower needs (para. 2.06). 2.08 Forestry Training. Efficient development of the forestry sector is constrained by the lack of trained personnel required to monitor the enforcement of concession conditions. The Government has therefore decided to reorganize forest management to ensure efficiency in the exploitation of existing timber resources and the conservation of Liberia's timber potential through reforestation. The Forestry Development Authority, in consultation with the private sector and with some financial commitment  from that sector, has decided to establish a training institute to produce forest rangers for the public sector and to train and upgrade workers for the private sector. The institute would be located in the forest area at Bomi Hills. Architectural designs and the training of instructors for the institute are being financed under the second education project. 2.09 Vocational Training. The problems which have received priority attention from the Government are: (a) the shortage of formal training facilities to supply the needs of existing small industries and of indus- trial development planned for the Monrovia area; (b) the lack of basic skills among adults in the villages; and (c) the lack of day-to-day admini- strative capacity to supervise and develop vocational training. To overcome these deficiencies, the Government is establishing in Monrovia offices for the Agricultural and Industrial Training Board (para. 2.07) and a Vocational Training Center to produce skilled workers for the Monrovia area. The Gov- ernment is seeking USAID assistance to establish skills training programs in the rural areas and to strengthen apprenticeship and in-plant training. Financing for the Vocational Training Center and the Agricultural and In- dustrial Training Board is proposed under the third Bank project. C. Education Sector and Development Strategy Background 2.10 The Ministry of Education controls general and technical education at the pre-university level. The NCVTET (para. 2.07) coordinates vocational training conducted by various agencies, including the Ministry of Labor, Youth and Sports, the Ministry of Agriculture, and the Forest Development Authority. Higher education is provided by two institutions -- the University of Liberia and the private state-aided Cuttington College. 2.11 Considerable progress has been made in improving access to education. Enrollment ratios of 65% at the primary and 15% at the secondary level represent a doubling during the period 1970-75; these, and pupil/teacher ratios of 35:1 at the primary and 26:1 at the secondary level, are about average for Africa. There has been little increase, however, in the funds devoted to the education sector: public expenditure in education in 1975 was about 13% of total Govern- ment expenditures and 2.5% of GNP, both percentages being among the lowest in Africa. 2.12 The result is, inevitably, a continuation of low-quality standards: classrooms have become more crowded and double and even triple shifts are widespread. Schools often lack the necessary teaching equipment and supplies. The teaching has remained largely theoretical, and science and practical sub- jects have been neglected. Only 2% of the pupils enrolled at secondary level in 1975 were in technical education programs. At primary level, only 25% of the teachers are trained and at the secondary level there are virtually no Liberian graduate science teachers. The Government has recently increased teachers' salaries, but at the primary level they remain at the equivalent  -6- of only twice the per capita GNP, the lowest in Africa. About 14% of the pupils entering grade 1 graduate from grade 12, and those who leave primary or secondary school at any stage are ill-prepared for technical or science- based studies or careers. Of the grade 12 graduates attempting the univer- sity entrance test, about half fail. Because of the low academic standard of the student intake, inadequate remedial services, lack of equipment and shortage of qualified and experienced teaching staff, the university experi- ences high attrition and repetition rates, especially in science-based pro- grams and among first-year students. 2.13 Neglect of the rural areas is evidenced in several ways. The schools in Monrovia are better financed than rural schools, costing US$70 per child compared with US$32 outside Monrovia. Only in that city is there a public school properly equipped for science and technology, and with 15% of the total population, Monrovia has 34% of total lower secondary and 55% of total upper secondary enrollments. The high illiteracy rate (60% of males and 85% of females over 15 years of age) is almost entirely a rural phenomenon. Government Strategy 2.14 The Government's educational objectives, summarized in the 1976-80 National Development Plan, are to: (a) Improve the quality of education at all levels, in particular by: (i) diversifying primary and secondary level curricula, and increasing the emphasis on science, technical and practical subjects; (ii) increasing the supply of trained teachers, train- ing school supervisors, strengthening examina- tions and testing services, increasing teachers' salaries, producing and supplying suitable text- books, and providing better school buildings; (iii) improving the programs and equipment for technical training and practical course work; (iv) improving the university by providing opportuni- ties to develop the staff through training and research on local problems, improving remedial services, providing better screening of entrants and better physical facilities, and restricting the growth of new programs; (b) Reduce geographical inequities by concentrating the expansion of school places in rural areas, especially under a community schools program for primary and  -7- adult education, and by providing laboratories and workshops in rural secondary schools. 2.15 To implement its strategy, the Government is relying on Bank assist- ance. It is also seeking help from other external agencies, including USAID, EDF and ADB, for projects concerned with in-service primary teacher training, the community schools program, science/technology centers for rural secondary schools, and the strengthening of technical education. D. Role of the Bank 2.16 The first Bank Group project aimed primarily at strengthening the planning and administrative structure of the Ministry of Education, improving secondary education, and training the necessary teachers to enable the Govern- ment to achieve its sector objectives: improve the quality of education and redress the geographical inequities in educational opportunities. The second project strengthens the education system at its base through construction of well designed and equipped community schools. The proposed third project would supplement the objectives of the first two projects, and would improve and better distribute secondary education facilities, particulary in science and technology, and assist in meeting the skilled manpower needs of industry and forestry. III. THE PROJECT A. Summary 3.01 The proposed project would be implemented over the period 1977-80 and comprises: (a) Strengthening the industrial training system through: (i) construction, furnishing and equipping of build- ings for an industrial training board and a voca- tional training center; (ii) 9 man-years of technical assistance and 23 man- years of fellowships to help establish the indus- trial training board and the vocational training center; and (iii) 10 man-years of fellowships, together with equip- ment and vehicles, to develop manpower planning; (b) Strengthening forestry training through:  -8- (i) construction, furnishing and equipping of a training institute for forest rangers and forest workers; and (ii) 2 man-years of technical assistance and 7 man- years of fellowships to help establish the institute; (c) Improving secondary education, particularly in science and technology through: (i) construction, furnishing and equipping of 4 science/technology centers at rural secondary schools, and providing vehicles to transport children from outlying schools to two of these centers; (ii) 17 man-years of technical assistance to help establish the science program and to prepare a school map; (iii) 36 man-years of fellowships to train administra- tors (for science, technical and secondary educa- tion programs), and secondary teacher trainers; and (iv) vehicles and equipment for field and office work to strengthen science and technology teaching programs and secondary teacher training; and (d) Strengthening the Division of Educational Facilities in the Ministry of Education by providing equipment, vehicles, 2 man-years of technical assistance and 7 man-years of fellowships. B. Project Composition Industrial Training 3.02 Agricultural and Industrial Training Board (AITB). The project would finance (a) construction, furniture and equipment for offices of an Agricultural and Industrial Training Board on the site of the proposed Vocational Training Center; and (b) 6 man-years of technical assistance, 14 man-years of fellowships and 4 vehicles for staff field work for the Board. The Board would be responsible for (a) job analysis and occupational stand- ards, (b) skill testing and certification, (c) apprenticeship and in-plant training, (d) vocational guidance, (e) development of programs and instruc- tional materials, and (f) administration and development of vocational train- ing institutions. Three specialists would be recruited for two years each to assist in establishing the Board's activities and seven Liberians would  - 9 - be trained on fellowships. The Board will play a vital role in overseeing the industrial training system on a day-to-day basis, monitoring training standards and policy, and administering the public sector training centers. Thus, details of arrangements for the creation of the Agricultural and Industrial Training Board were discussed during negotiations. The estab- lishment of the Board would be a condition of disbursement of funds for construction of the premises for the Board and for the Vocational Training Center (para. 3.03). 3.03 Vocational Training Center (VTC). The project would finance construction, furniture and equipment for a Vocational Training Center in Monrovia, with a capacity for about 270 trainees. This center would serve the Monrovia area and would train apprentices, upgrade industrial workers, and offer pre-employment training in four basic trades: mechanical, elec- trical, automotive and building construction. Training programs would be arranged to suit the needs of individual groups in part- and full-time courses. The second education project is financing 18 man-months for a vocational training consultant to help develop the training programs and architectural consultants to design the VTC. The proposed third project would follow up by financing 3 man-months for an equipment specialist, and 30 man-months for a vocational training adviser to assist in establishing the VTC. The project would also provide 9 man-years of fellowships to train five Liberians: four as department heads and one as director of the VTC. During negotiations, assurances were obtained from the Government that it will take the necessary measures to recruit and train instructors as required for the VTC (Annex 5). The Government has indicated that it would finance the VTC's operating costs, estimated at US$200,000 annually, but is investi- gating the feasibility of an industrial levy to help finance these costs. 3.04 Manpower Planning. The project would finance furniture, equipment and vehicles and 10 man-years of fellowships to strengthen and expand the Manpower Planning Division of the Ministry of Planning and Economic Affairs (para. 2.07). This Division, established under the first project for macro- level manpower planning, would be equipped under the project to (a) serve as the Secretariat of the National Council for Vocational and Technical Education and Training, and (b) undertake micro-level planning for the public and private sectors. Forestry Training Institute (FTI) 3.05 The project would finance construction, furniture and equipment for a Forestry Training Institute at Bomi Hills with hostel accommodation for 100 students and houses for 10 staff members. The FTI would offer a two-year pre-service course for forest rangers and shorter training courses for forest workers. The curriculum for the forest ranger program has been established with FAQ assistance and details of vocational training programs for forest workers are being developed by the Government. The site for the proposed Institute is owned by the Government and architectural designs are being prepared by the Ministry of Education. The project would also provide two man-years of technical assistance for a specialist in vocational training  - 10 - to help establish the Institute, especially in regard to the forest workers' training programs, and seven man-years of fellowships to train four instruc- tors. During negotiations, assurances were obtained from the Government that it will make eight additional houses available for FTI staff, in order to fulfill the FTI's total housing requirements. 3.06 The Training and Research Board of the Mano River Union, established in April 1976, would have overall responsibility for the operation of the FTI on behalf of the Governments of Liberia and Sierra Leone. This Board is co- chaired by the Deputy Ministers of Education of Liberia and Sierra Leone, and its membership is composed of representatives of the public and private sectors concerned with forestry in both countries. The Board would appoint the prin- cipal of the FTI, who would be responsible for the day-to-day management of the Institute. An advisory committee for forestry training has been estab- lished to assist the principal of the FTI in planning the development of the Institute. The training capacity of the FTI would be shared by the two countries: about 80% for Liberia and 20% for Sierre Leone. The FTI's annual output would be about 20 Liberian and five Sierre Leonean forest rangers, most of whom would enter Government service, and 70 to 90 forest workers who would be employed principally by the private sector. The FTI's operations would be financed out of the training and research budget of the Mano River Union, made up of contributions from the Liberian and Sierra Leone Governments and from the private sector, upon which a levy adequate to meet its share of the costs would be made annually. The Liberian Government, as owner of the physical facilities of the FTI, would guarantee the Institute an adequate operating budget. During negotiations, assurances were obtained from the Government of Liberia that it will provide the recurrent financing for the FTI and will en- sure that the FTI will be operated in accordance with appropriate educational and management practices. Secondary Education 3.07 Science/Technology Centers (STCs). The project would finance (a) construction, furniture, equipment and vehicles for four science/tech- nology centers at secondary schools in Robertsport, Greenville, Buchanan and Sanniquellie; and (b) 16 man-years of technical assistance for eight experienced science teachers. Each center would have science laboratories for grades 7-12, a technology workshop and a home economics unit for grades 7-9, a library, a canteen and administrative space. The STCs would have a total capacity of about 630 places, and serve about 2,200 pupils enrolled in the four schools. At Greenville and Sanniquellie the STCs would be attached to new school buildings that the Government will construct in 1978 and 1979, respectively. Science and technology teachers will be trained in special programs planned by the Government (Annex 5). During the two-year period between the opening of the STCs (beginning of 1979) and the output of the first group of graduate science teachers (end of 1980), the project would finance 8 experienced science teachers to assist in (a) organizing and establishing the centers, (b) introducing new teaching methods in science, and (c) providing in-service training for new teachers.  - 11 - 3.08 In addition to the pupils from the central schools attending the science centers, about 700 pupils from small village schools within a 30-mile radius would be transported to Sanniquellie and Buchanan for science classes one day a week. This would be a pilot scheme to determine the feasibility and costs of busing as a means of providing science and technology instruction to pupils from small village secondary schools. An analysis of estimated capital and recurrent costs for this and comparable alternatives indicates that trans- porting children to an STC is a cost-effective means of providing this type of instruction. 3.09 During negotiations, assurances were obtained from the Government that it will: (a) provide the new classrooms and related facilities, not included in the project, which are required for the schools in Greenville by December 31, 1978, and in Sanniquellie by December 31, 1979, and locate these classrooms and facilities at the sites selected for the STCs; (b) train teachers of science, technology and home econom- ics, and teacher-librarians for the STCs in accordance with a schedule acceptable to the Bank (Annex 5); and (c) maintain records of the problems and costs of trans- porting pupils to the STCs, as well as records on the proficiency achieved by the transported pupils, to evaluate the effectiveness of this method of deliver- ing science and technology instruction to pupils in small village secondary schools, and by June 30, 1978, submit to the Bank for approval the proposed format to be used for recording the necessary data. 3.10 Secondary Education Administration. The project would provide office furniture, equipment, vehicles, one man-year of technical assistance and 12 man-years of fellowships to strengthen and expand the divisions of secondary education, science education and technical education within the Ministry of Education. Fellowships would be provided to train administrators for secondary education -- one for science education and two for technical education, and two school supervisors for science. A school mapping special- ist funded under the project would prepare a school map by December 1978. This map would show the planned geographical distribution of school places by school and catchment area and would provide a framework for regulating the future establishment, growth and development of secondary schools. 3.11 Secondary Teacher Training. The project would provide science and audio-visual equipment, vehicles and 24 man-years of fellowships to enable the Secondary Teachers College of the University of Liberia to increase and improve its output of qualified secondary teachers. The fellowships would  - 12 - help to train existing staff of the College in science, English, mathematics, curriculum development and evaluation, and new staff in agriculture, home economics, business education, guidance and audio-visual media. Full-time staff would be increased from the present 15 to 21 by 1980; this would enable the College to increase its capacity from 180 to 360 students. Educational Facilities 3.12 The project would finance office equipment, vehicles, 2 man-years of technical assistance and 7 man-years of fellowships to strengthen the Division of Educational Facilities within the Bureau of Planning and Research of the Ministry of Education. The fellowships would train five Liberians in educational architecture, construction supervision, building inspection and cost estimation. The Division has been established by merging two units of the Ministry of Education which have been assisted under the first two proj- ects: the architectural section of the Project Implementation Unit (PIU) and the Educational Facilities Office of the Bureau of Planning and Research. The new Division would design and supervise all construction planned by the Ministry of Education as well as perform, for the PIU, architectural design and site supervision work for the three Bank Group projects. C. Project Costs and Financing 3.13 The cost of the project, including taxes of US$1.0 million, is estimated at US$9.5 million. The distribution of project costs by major category of expenditure is given in paragraph 3.16 and detailed in Annex 6(a). The breakdown of closts by project items is summarized as follows:  - 13 - Project Cost Summary (US$ million) % of Taxes Base Included Project Item Local Foreign Total Cost in Total I. Industrial Training System 0.9 1.9 2.8 38 0.3 Agricultural and Industrial Training Board 0.2 0.6 0.8 11 0.1 Vocational Training Center 0.7 1.2 1.9 25 0.2 Manpower Planning - 0.1 0.1 1 - II. Forestry Training Institue 0.5 0.8 1.3 18 0.1 III. Secondary Education 1.1 2.0 3.1 41 0.4 Science Technology Centers 1.0 1.5 2.5 33 0.3 Administration 0.1 0.2 0.3 4 0.1 Teachers' College - 0.3 0.3 4 - IV. Educational Facilities - 0.2 0.3 3 - Base Cost Estimate 2.5 4.9 7.4 100 0.8 Physical Contingencies (5%) 0.1 0.3 0.4 5 - Expected Price Increases (24%) 0.6 1.1 1.7 24 0.2 Expected Cost of Project 3.2 6.3 9.5 129 1.0 3.14 Base cost estimates are for January 1977 and take account of the prices of recent construction contracts in Liberia. The estimated average cost of construction, including site development, is US$250 per square meter of gross area, which compares favorably with prevailing costs for similar construction in neighboring West African countries. The cost of technical assistance is estimated to average about US$36,000 per man-year and is based on recent experience of Unesco and the Government in recruiting technical assistance personnel for Liberia. Contingencies and Price Escalation 3.15 The project cost includes an allowance for physical contingencies consisting of 6% for civil works, architects' fees and furniture, and 8% for  - 14 - equipment. The allowance for price increases is 24% of the total base cost plus physical contingencies, and is estimated on the basis of the following trends in the annual rates of increase in prices of both local and foreign goods: 1977 1980 (Annual Percentage Increase in Prices) Civil Works 13 12 Furniture 10 10 Equipment 9 8 Technical Assistance 8 8 Fellowships 8 8 Detailed calculations for physical contingencies and price escalation are given in Annex 6(b). 3.16 Estimated project costs (including taxes) by category of expen- ditures are: (US$ million) % of Taxes Base Included Local Foreign Total Cost in Total Civil works (incl. professional fees) 1.8 2.0 3.8 52 0.3 Furniture 0.1 0.2 0.3 4 0.1 Equipment 0.4 1.0 1.4 19 0.3 Technical Assistance 0.2 0.9 1.1 15 0.1 Fellowships - .8 .8 10 - Base Cost 2.5 4.9 7.4 100 0.8 Physical Contingencies (5%) 0.1 0.3 0.4 - Expected Price Increases (24%) 0.6 1.1 2.7 0.2 Total Project Cost 3.2 6.3 9.5 1.0 3.17 The foreign exchange component amounts to US$6.3 million, repre- senting 66% of the total project cost of US$9.5 million. This has been calculated as follows: civil works, 55%; furniture, 53%; equipment, 72%; technical assistance, 85%; and fellowships, 100%. Local currency expen- diture would amount to US$3.2 million, or 34% of the total project cost. Financing of the Project 3.18 The proposed Bank loan of US$6.3 million would finance the project's foreign exchange costs, equivalent to 74% of the net-of-tax costs. The  - 15 - balance of the project costs of US$3.2 million, including US$1.0 million in taxes, would be financed by the Government. The distribution of Government and IBRD financing is given in Annex 6(c). Project Recurrent Costs 3.19 By full development in 1983, the project would increase the Govern- ment's recurrent expenditures by US$700,000, or about 2% of budgetary ex- penditures for education in that year. This increase would be distributed as follows: Agricultural and Industrial Training Board and Vocational Training Center, 42%; Ministry of Agriculture and Forestry, 28%; Ministry of Education, 23%; Ministry of Planning and Economic Affairs, 6%; and the University, 1%. During negotiations, assurances were obtained from the Government that ade- quate budgetary provisions for the operation of project institutions will be made on time, and that the new Division of Educational Facilities will be established with a budgetary allocation by July 31, 1977 (para. 3.12). Arrangements for budgetary provisions for the FTI, the AITB and the VTC will be reviewed by the Government and the Bank when approval is given for each construction contract. IV. IMPLEMENTATION 4.01 Project Administration. The Project Implementation Unit (PIU), established within the Ministry of Education to implement the first two education projects, would be responsible for implementing the third project. It would liaise with staff from other ministries and departments of govern- ment concerned with the project, notably the Ministry of Labor, Youth and Sports and the National Council for Vocational and Technical Education and Training for vocational and industrial training, the Ministry of Planning and Economic Affairs for manpower planning, and the Ministry of Agriculture and the Forestry Development Authority for forestry training. Each of these agencies has already nominated liaison staff. 4.02 To handle the additional workload of the third project, the PIU will be strengthened by the appointment of a third Deputy Project Director starting in May 1977. The Project Director would continue to be responsible for the duties relating to the second project, outlined in Article III, Section 3.01, of Loan Agreement No. 1266T-LBR dated June 7, 1976. To ensure that the PIU will be adequately staffed, assurances were obtained during negotiations that the staff will include the following competent and experienced personnel: (a) a Project Director, under terms and conditions of employment acceptable to the Bank, (b) three Deputy Project Directors, (c) an accountant, and (d) a procurement specialist. 4.03 To give the Ministry of Education the capacity to undertake most of its own architectural design and construction supervision work, the Government  - 16 - has decided to establish a Division of Educational Facilities (para. 3.12). When this Division is fully staffed with trained personnel, it would enable the Ministry to become independent of the need for consultants for most of the architectural work, and should preclude delays in design work that might otherwise occur with the appointment of consultants. This Division will be responsible for the design and site supervision work for all three Bank Group projects. 4.04 Technical Assistance and Fellowships. The project includes 30 man- years of technical assistance as detailed in paras. 3.02, 3.03, 3.05, 3.07, 3.10, 3.12 and Annex 7. The Government expects to enlist the assistance of ILO in recruiting vocational training specialists for the Industrial Train- ing Board and the Vocational Training Center, and of Unesco in recruiting the school mapping specialist. Science teachers and other technical assistance personnel would be recruited directly by the Government. During negotiations an assurance was obtained from the Government that it will employ, through technical assistance financed under the project, only persons whose qualifi- cations, experience and terms and conditions of employment are acceptable to the Bank. 4.05 The project would provide 83 man-years of fellowships as indicated in paras. 3.02-3.05, 3.10-3.12 and Annex 7. During negotiations, assurances were obtained from the Government that it will award fellowships to suitably qualified persons, enroll them in training programs satisfactory to the Bank, provide an appropriate budget and positions to absorb the trained personnel, and require the recipients to serve at least two years in the positions for which they were trained. 4.06 Sites. The sites for all project buildings have been selected and agreed upon with the Bank. They are either already in Government's possession or in the process of being transferred to it. 4.07 Procurement. Civil works valued at US$3.8 million, furniture valued at US$0.3 million, and equipment valued at US$1.4 million would be procured on the basis of international competitive bidding in accordance with the Bank's guidelines. Furniture, equipment, vehicles and other items which cannot be grouped in packages of at least US$50,000 equivalent each, or which are not suitable for international competitive bidding, would be procured on the basis of quotations or through local competitive bidding, in accordance with proce- dures acceptable to the Bank. The value of such items is estimated at about US$0.2 million. Local manufacturers of furniture and equipment would be allowed a preferential margin of 15% of the c.i.f. price of competing imports or the total applicable customs duties and import taxes, whichever is lower. 4.08 Disbursements. The funds from the loan account would be disbursed as follows: (a) 55% of total civil works expenditures, including pro- fessional fees (US$2.4 million);  - 17 - (b) 100% of foreign expenditures for directly imported and 65% of expenditures for locally procured furni- ture and equipment (US$1.3 million); (c) 85% of total expenditures for technical assistance (US$0.9 million); and (d) 100% of foreign expenditures for fellowships (US$0.8 million). US$0.9 million would be unallocated. All disbursements would be fully docu- mented. Any funds remaining undisbursed at the completion of the project would be cancelled. Implementation schedules and estimates of disbursements are in Annexes 8, 9 and 10. The project is expected to be completed in about three and a half years after loan signing. 4.09 Accounts. The PIU, which so far has kept up-to-date records of project expenditures in a satisfactory manner, with annual audits by an independent firm of auditors, would continue to maintain the project accounts and such independent audits. During negotiations, assurances were obtained from the Government that the project accounts, with an audit report by a firm of independent auditors acceptable to the Bank, will be submitted to the Bank not later than four months following the close of each fiscal year. V. AGREEMENTS REACHED AND RECOMMENDATION A. Assurances 5.01 During negotiations, the Government provided assurances that it will: (a) take the necessary measures to recruit and train instructors as required for the Vocational Training Center (para. 3.03); (b) make available about eight houses for the staff of the Forestry Training Institute (para. 3.05); (c) guarantee financing for the Forestry Training Insti- tute and ensure that the Institute will be operated efficiently, in accordance with appropriate educa- tional and management practices (para. 3.06); (d) provide the new classrooms and related facilities, not included in the project, which are required for the schools in Greenville by December 31, 1978, and in Sanniquellie by December 31, 1979, and locate these classrooms and facilities at the sites selected for the science/technology centers (para. 3.09);  - 18 - (e) train teachers of science, technology and home eco- nomics, and teacher-librarians for the science/tech- nology centers in accordance with a schedule accept- able to the Bank (Annex 5) (para. 3.09); (f) maintain records of problems and costs of transport- ing pupils to the STCs, as well as records on the pro- ficiency achieved by the transported pupils, to evalu- ate the effectiveness of this method of delivering science and technology instruction to pupils in small village secondary schools and by June 30, 1978, submit to the Bank for approval the proposed format to be used for recording the necessary data (para. 3.09). (g) make adequate and timely budgetary provisions for the operation of project institutions and ensure that the new Division of Educational Facilities will be estab- lished with a budgetary allocation by July 31, 1977 (para. 3.19); (h) staff the Project Implementation Unit with the follow- ing competent and experienced personnel: (i) a Project Director, under terms and conditions of em- ployment acceptable to the Bank, (ii) three Deputy Project Directors, (iii) an accountant, and (iv) a procurement specialist (para. 4.02); (i) employ, through technical assistance financed under the project, only persons whose qualifications, ex- perience and terms and conditions of employment are acceptable to the Bank (para. 4.04); (j) award fellowships to suitably qualified persons, en- roll them in training programs satisfactory to the Bank, provide the appropriate budget and positions to absorb the trained personnel, and require the re- cipients to serve at least two years in the positions for which they were trained (para. 4.05); (k) ensure that the project accounts, with an audit re- port by a firm of independent auditors acceptable to the Bank, will be submitted to the Bank not later than four months following the close of each fiscal year (para. 4.09). B. Condition 5.02 A condition of disbursement of funds for construction of the premises for the Agricultural and Industrial Training Board and the Vocational  - 19 - Training Center would be the establishment of the Agricultural and Industrial Training Board (para. 3.02). 5.03 On the basis of the above assurances and condition, the proposed project constitutes a suitable basis for a Bank loan of US$6.3 million for a term of 20 years, including a 4-1/2 year grace period.  I  COMPARATIVE E0UCti'lP4' INDICATORS Page I of 2 NOVEMBER to, 1976 I I GNP/ I I GNP 11 TOTALIS OF PUBLIC I I I aPRI. :AV.PRI. I I :SEC I I ICAPITAS DEVUTEDIPUSLIC 4 EDUCATION tLITER- * PRI. :COMPLE- :STU- :SCH.TEACH:PROGRESS-: SEC. :STU- I I I AT I TO EDU,: EXP, I RECURRENT :ACY tENROLLITION :DENTSOSALARY INtION RATE :ENRULLtDENTStHIGHIER3 I