Morocco - Fourth Education Project

Document of The WVorld Bank FOR OFFI]CIAL USE ONLY Report No. 2094-MOR STAFF APPRAISAL REPORT FOURTH EDUCATION PROJECT IN THE KINGDOM OF MOROCCO Marc:h 19, 1979 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without Worid Bank authorization.  CURRENCY EQUIVALENTS (September 1978) Official Rate US$ 1.00 = Dirham (DH) 4.10 DH 1.00 - US$ 0.24 Measures 1 m= 3.28 feet 1 m2 = 10.76 square feet 1 km2 = 0.38 square mile 1 hectare = 2.47 acres Fiscal Year January 1 to December 31  FOR OFFICIAL USE ONLY KINGDOM OF MOROCCO STAFF APPRAISAL REPORT FOURTH EDUCATION PROJECT Table of Contents Page No. Basic Data I. THE EDUCATION SECTOR ................................1 Socio-Economic Background ...........................1 Education Development ancl Policy .................... 2 Education Issues ........ ............................ 4 Technical Manpower Requirements ..................... 7 Education Finance ................... .-...... -.... 8 Bank Strategy and Lending for Education .... ......... 9 II. THE PROJECT .............. ............................ 10 Introduction ......................................... 10 Objectives and Scope ................................. 10 Technical Lycees ....... ............................ il Regional Technical Teacher Training College ....... 12 Higher Institutes of Technology ................... 13 National Institute of Applied Engineering ......... 14 Mohammedia Engineering College Extension ... ....... 14 Evaluation System ................................... 15 Teacher Requirements ................................ 15 Technical Assistance ................................ 16 Pre-investment Designs .............................. 17 III. PROJECT COSTS, FINANCING, IMPLEMENTATION AND DISBURSEMENTS ....................................... 17 Cost of Project ..................................... 17 Recurrent Costs ..................................... 20 Implementation ...................................... 20 Administration ...................................... 20 Architects and Preliminary Designs .................. 21 Sites ............................................... 21 Bank Review and Approvals ........................... 21 Procurement ......................................... 21 Disbursements .22 IV. BENEFITS AND RISKS .................................. 22 Benefits .......... .................................. 22 Risks . ............................................... 23 List of Critical Activities .......................... 24 V. AGREEMENTS REACHED AND RECOMMENDATION ............... 25 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without Worid Bank authorization.  Table of Contents (Continued) ANNEXES Page No. 1. CHARTS AND TABLES Chart 1 Structure of the Education and Training System 26 Chart 2 (a) Implementation Schedule - 5 Technical Lycees, TTTC, Institute of Applied Engineering 27 2 (b) Implementation Schedule - 6 Technical Lycees, Institutes of Technology 28 2 (c) Implementation Schedule - Mohammedia Engineering College Extension 29 Tables 1.1 Comparative Education Indicators 30 2.1 Technical Assistance Requirements 32 3.1 Unit Capital Costs and Areas per Student 33 3.2 Contingency Allowances 34 3.3 Estimated Schedule of Disbursements 35 2. RELATED DOCUMENTS AND DATA AVAILABLE IN THE 'PROJECT FILE 36 MAP  KINGDOM OF MOROCCO Basic, Data (1976).P Total Population (1978) 18.8 million Current Rate of Population Growth 3.0%p.a. Per capita GNP (1977) US$570 Literacy Rate about 28% Primary School Enrollment as a Percentage of Age Group 7-11 65% 2/ Lower Secondary School Enrollment as a Percentage of Age Group 12-15 21% 3! Upper Secondary School Enrollment as a '2/ Percentage of Age Group 16-18 11% _ Higher Education Enrollment as a Percentage of Age Group 19-22 4% 2_ Central Government Expenditures on Education as a Percentage of Tota:L Government Expenditures 15.2% Central Government Expenditures on Education as a Percentage of GNP 6.3% 1/ See Annex 1 for comparative educational data. 2/ Gross enrollment ratios.   I. THE EDUCATION SECTOR Socio-Economic Background 1.01 Economic and social policies in Morocco in the 1960s were markedly conservative and led to slow economic growth and widening disparities in the distribution of income. New policy orientations emphasizing the equal importance of faster economic growth and a more equitable distribution of its benefits were set out in the 1973-77 plan. The plan called for export-led growth concentrated in the manufacturing and mining sectors and expansion of rainfed agriculture and tourism. A high target growth rate for GDP (real terms) of 7.5% p.a. was set for the plan period and actual achievement is expected to be 7.3% p.a. This rate is a significant improve- ment on the previous decade when growth averaged 3.6% p.a. in real terms. The plan also emphasized expansion of the social sectors, particularly education, and improvement in the distribution of income. Within the edu- cation sector, significant progress has been made with total enrollments increasing at over 8% p.a. in the plan period. 1.02. The interim plan for 1978-80, although reflecting less optimistic economic conditions, is expected to continue to emphasize economic growth and the distribution of its benefits. The export sector will again receive priority. However for the next few years, the social sectors will be subject to the constraints on public expenditure brought about by falling export prices (especially for phosphates), rising military expenditures and increased public debt service. Nevertheless the education sector will continue to receive high priority as indicated by its prominence in the 1978 budget. 1.03. The population of Morocco (estimated at 18.8 million in 1978) is distributed largely according to the clictates of topography and climate with most people occupying the cities and rich agricultural plains of the central and northwest regions. Population density in 1976 was estimated at 60-140 persons per km2 in the four provinces of the north and west compared with about 15 in the three provinces of the south and east. Sparse population ensures that the provision of education facilities in the latter is both difficult and expensive, leading to inequalities in the distribution of educational opportunities (para. 1.14). Population is currently growing at the high rate of 3.0% p.a. and high fertility rates are expected to sustain this growth rate until the 1990s, thereby maintaining pressure on the educa- tion system for continued rapid expansion. Migration to the urban areas has continued at a significant rate with t:he urban population accounting for an estimated 40% of the total in 1978 comapared with 29% in 1960. Migration overseas for employment has not been quantitatively significant according to available data with an average of arotnd 23,000 workers departing per annum between 1973 and 1977. However, the economic impact of workers' remittances remains important -- estimated at over $600 million in 1977. Although little is known about the skill structure of migrating Moroccans, present skill shortages are undoubtedly being exacerbated by the outflow.  - 2 - 1.04. Employment in Morocco increased at an estimated 3.4% p.a. during the plan period 1973-77 or at about the same rate as the growth of the labor force. Agriculture is still the major, though declining, source of employ- ment, accounting for an estimated 47% of employment in 1977 compared with 67% in 1960. Employment growth in the secondary and tertiary sectors (estimated at 7.1% and 5.7% p.a. in 1971-77) was probably sufficient to stabilize the level of unemployment rather than reduce it in this period. Unemployment is estimated at around 10% with unmeasured but significarnt underemployment in the rural areas. Although the government has implemerLted some measures (land distribution, public works programs and assistance to handicrafts) aimed at reducing unemployment there has been a clear tendency to favor capital in- tensive methods of production. Investment incentives need to be changed to encourage labor intensive projects if the employment needs of a rapidly increasing population and a steady urban migration are to be met. Education Development and Policy 1.05. Demographic factors have played an important role in the recent development of Morocco's education system. The high growth rate of population is resulting in an increasingly youthful population and the pressure of social demand has caused the education system to expand rapidly at all levels in recent years. During the period 1971-77 primary enro]lments increased at 6% p.a., secondary enrollments at nearly 10% p.a., while enrollments in the universities increased 3.5 times. Gross enrollment ratios have now reached quite reasonable levels for a country at Morocco's stage of development, being 65% for primary (7-11 years), 21% for lower secondary (12-15 years), 11% for upper secondary (16-18 years) and 4% for higher education. 1.06. The enrollment targets of the 1973-77 plan have been exceeded in the primary and secondary schools, although in the latter the planned shift of enrollments from letters to math/science and technica] courses has not been achieved. Enrollment targets in the teacher training colleges have also been exceeded although it now seems that primary teacher needs were underestimated and a rapid expansion of primary teacher training is planned in the next few years (para 1.10). Progress towards reducing repeater rates at the primary level has been slow and although secondary repeater rates are not appreciably above plan targets, they are nevertheless still high (para 1.13). Moroccani- zation of the primary teaching service has been achieved and it seems certain that lower cycle secondary will be fully moroccanized by the target year 1980. 1.07. Education policies for the future will continue to be directed towards long term goals namely: (a) the expansion of primary education to provicde complete enrollment of the seven year age group by 1995; (b) arabization--the continued expansion of Arabic as the language of instruction, especially at the secondary level in science and technical courses;  - 3 - (c) moroccanization of the teaching service. This is complete at the primary level and it is planned to have the lower secondary level fully moroccanized by 1980; (d) the de-elopment of secondary and higher education to meet the country's needs for skilled manpower through the expansion of secondary technical education, higher institutes of technology and a greater orientation towards science and engineering in the universities; 1.08. Education is being given high priority in Morocco in accordance with its key role in the country's development. In general, educational policies have been soundly conceived and are relevant to long term objectives. Administration of the education system has been strengthened recently with the amalgamation of the Ministries of Primary and Secondary Education and Higher Education to form the Ministry of National Education and Training. This brings policy formulation for the whole formal education system under one minister who is served by two secretaries of state. The new ministry also contains a directorate of training, under strong leadership, which will coordinate the post-secondary training activities of other ministries. At the commune level, the policy of giving more responsibility for the management of primary schools to local government authorities will ensure a closer relation- ship between education and the social environment. 1.09. The problems of the education system (paras. 1.12-1.18) are well understood in Morocco, but their solution will be long term. The gradual generalization of primary schooling will progressively reduce inequalities of opportunity between sexes and regions, while arabization will reduce the language disadvantages now suffered by poorer children. More relevant curri- cula in primary and secondary schools, to be achieved through increased teaching of science and technical subjects, improved teach-ing aids and better qualified teachers will, in the long run, help to reduce repeater and dropout rates. Expansion of secondary technical schooling and higher technical and scientific education will increase t'he supply of crucially short skilled manpower. 1.10. However the pursuit of these policies will place an increasing burden on teacher training, particularly at the primary level and ultimately on the national budget. In 1977, there were only 4,500 students enrolled in primary teacher training colleges producing an output of around 2100 and this is highly inadequate in terms of teacher needs, estimated at 4,900 p.a. to 1990. This deficiency has been recognized by the government and the capacity of the primary teacher training system will be raised to 14,000 places by 1982. The supply of teachers at the lower secondary level is being met adequately by the system of regional teachers' colleges (enrollments 8,053 in 1977). Upper secondary teachers are drawn from university graduates who follow a one year teacher training course at the Ecole Normale Superieure (enrollments 219 in 1977). To increase supply, the government has introduced a special one-year course to upgrade teachers with suitable experience and  - 4 - academic potential. 1/ A program for the construction of eight ecoles normales superieures is also currently under consideration with priority to be given to the training of math/science teachers in four year courses. 1.11. In terms of overall financial resources, education and training currently accounts for a high 6.3% of GNP and this level of effort is expected to be maintained to 1990 (para. 1.22). Clearly, the government will need to exercise a high degree of cost consciousness in the future and emphasize measures to reduce unit recurrent capital costs in order to keep the burden of education within acceptable limits. Education Issues 1.12. While total enrollments at all levels have expanded rapidly in recent years, growth has been accompanied by significant qualitative problems. They are: (a) Efficiency 1.13. Despite improvements in recent years repeater and dropout rates are still high. In the primary cycle, 31% repeat and nearly 6% drop out, while in secondary the rates are about 16% and 7% respectively. In 1977, 98,000 or 26% of grade 1 enrollments were repeaters while 13,000 or 12% were repeating grade 6. Thus about one in four primary places and one in eight secondary places normally available to new admissions were preempted by repeaters. Examination success rates are low with only 33% passing the secondary entrance exam and 44% receiving the baccalaureat. These qualitative deficiencies are caused by a number of factors including socio- economic pressures for early termination of schooling, irrelevant curricula and lack of textbooks and teaching; aids and, at the primary level in particular, language problens and a shortage of qualified teachers. Within the university system the situation is even more serious with dropout rates of between 25% and 43% and repeater rates of 30%-53% for first year students. Only 30% of candidates received the licence in 1977. (b) Equity 1.14. Marked disparities in educational opportunity by sex and region continue to exist. The proportion of girls enrolled in primary schools was only 36% of total enrollments in 1977, barely an improvement over the 33% recorded in 1970. At the same time, urban girls have a much better chance of entering school than their rural counterparts--46% of new primary enrollments in urban areas were girls compared with 23% in rural areas. Regionally, 39% of primary enrollments are female in the north-west while the proportion is only 19% in the sout:hern region. At the secondary level girls accounted for only 35% of total enrollments in general secondary schools in 1/ The capacity of the special course is being increased under the third education project (Loan 1220-MOR) which is financing a training institu- tion for 275 trainees.  1977 although this is an improvement over the 26% enrolled in 1970. Within technical secondary schools only 22% of enrollments are girls. Marked regional disparities by sex also occur at the secondary level with girls accounting for 38% of total enrollments in the north-west region compared with less than 20% in the southern region. In primary teacher training, female enrollment has reached 44% but declines to 22% in lower secondary teacher training. In the universities only 20% of enrollments are female. (c) Language 1.15. The continued widespread use of French as the language of instruc- tion together with the slow rate of arabization of the curriculum have posed serious problems within the school system. The introduction of French in grade 3 and its increasing use thereafter has raised learning difficulties for children from poorer homes who lack contact with the language outside the school environment. This in turn has contributed to increased repeater and dropout rates. Tardiness in producing textbooks and teaching aids in Arabic as well as teachers capable of teaching in the language have held up arabiza- tion in both primary and secondary levels, although in the former, the teacher service is fully moroccanized. At the secondary level, arabization has commenced in history, geography and philosophy but progress will continue to be hampered in science and technical courses by the lack of textbooks in Arabic and the high proportion of non-Moroccans (35%) in the teaching force. (d) Relevance 1.16. Primary education has a strcng literary bias which is similarly reflected in the secondary schools and universities. Thus the two-thirds of primary school leavers who do not enter secondary school have received an education which has scant relevance te life after school or the need to find gainful employment. About 60% of teaching time in the lower secondary cycle is devoted to letters but an attempt is being made to make learning more practical through the establishment of the "introduction to technology" course (para. 2.06). Within the upper cycle of the general secondary schools, 49% of enrollments are in letters compared with 47% in science and 4% in technical and commercial courses. At the universities, the pattern is much exacerbated with nearly 77% of students enrolled in law and arts compared with 9% in science and 1% in engineering. Over the past five years, 61% of graduates have come from the faculties of law and arts and if these trends continue Morocco will soon have a surplus of non-technical graduates posing future pro- blems of high level underemployment arid unemployment. To make the university system more relevant to the country's high level manpower needs, a substantial reallocation of resources is needed irn favor of science and engineering courses. (e) Manpower Training Problems 1.17. Shortages of skilled and experienced manpower in Morocco have acted as a serious constraint to economic and social development. At the higher levels shortages have been alleviated by the employment of large numbers of expatriates but this constitutes merely a temporary and costly expedient and  -6- should not obscure the urgent need to develop local sources of manpower supply. Development of higher education has favored the universities, which in 1977 had enrollments of 45,000, rather than the higher institutes of technology (enrollment 6,000). Within the universities, as noted in para. 1.16, there exists a strong bias towards arts and law courses suggesting the need for a redirection of resources in favor of science and engineering courses in the universities and towards the non-university institutes of technology. The problem is recognized in current policies for the development of higher education which call for the establishment of four institutes of technology, two applied engineering institutes, a school of architecture, the extension to Mohammedia Engineering College and three faculties of science. It is not clear at this stage whether policies for the restructuring of university enrollments in favor of science/engineering courses will be at the expense of resources allocated to arts/law courses or whether these will continue to expand and additional resources made available for expansion in science and engineering. If the latter is intended, it will cause additional pressure on an already high education budget. 1.18. At the middle and lower levels, shortages are particularly crucial and the training infrastructure inadequate. Technical secondary schools enroll only one student for every 13 in general secondary schools. In the non-formal sector the artisanat training scheme covering 15 trades enrolls only about 4,000 trainees; training in Ministry of Labor vocational schools (8,200 enrollments including 3,600 in six month courses), health training (4,500), agriculture (1,500) and tourism (1,200) service the other major fields of middle and lower manpower demand and outputs from the system are estimated to meet only about one third of requirements. Apart from quantita- tive inadequacies, vocational training undertaken in different ministries suffers qualitative deficiencies resulting from a shortage of trained in- structors and teaching materials and has lacked a coordinating mechanism comparable to the Directorate of Training recently established to serve this purpose for post-secondary training (para. 1.08). 1/ At the lowest level, pre-employment training in six month courses enrolls 3,600 trainees. These courses provide the first opportunity for training to those who may not have completed primary schooling but since even the simplest formal courses require at least some primary education, the 35% of the age group who do not attend primary school, together with older illiterates, are excluded entirely from future training opportunities. The need for literacy programs and expanded low level skill training is therefore an obvious priority. The 1973-77 plan called for the establishment of the National Bureau of Literacy within the Ministry of Education with an interministerial commission to coordinate its work. However the Bureau has not been established and the plan target of giving some literacy training to 2.5 million illiterates remains unmet. 1/ The situation is expected to improve following a recent decision to make the Ministry of Labor and Vocational Training responsible for coordinating all lower technical/vocational training.  -7- Technical Manpower Requirements 1.19. The achievement of Morocco's hopes for a rapidly growing and modernizing economy rests to a great extent on the availability of skilled technical manpower. Reliance on expatriates to fill crucial gaps in manpower demand is both very costly and incompatible with the long term needs of a self-reliant economy and society. Technically trained Moroccans are needed in large numbers to fill high level technical posts, to assume managerial responsibility and at the middle leve:L to meet the requirements for tech- nicians to operate and maintain increasingly complex systems of production. The structure of the education system in Morocco does not serve well the country's needs for technical manpower. At the upper secondary and higher levels, enrollments are strongly biased in favor of non-technical courses and the accompanying table indicates clearly the highly inadequate supply of technical manpower at the present time. Education policies for the future emphasize strongly the need to develop middle and higher technical education and the fourth education project that is described in this report will make a significant contribution to this objective. Manpower Requirements, 1977-90 Additional Annual Output f rom: Annual Average Output from Proposed Institutions Requirements System Project Proposed for Category 1977-90 1977 Institution 1978-82 Engineers 5-year course 580 112 400 /1 4-year course 1,160 275 190 190 Higher Technicians 4,400 407 550 550 Middle Technicians Industrial 11,700 1,499 2,180 Commercial 13,500 :3,906 1,020 Technical Teachers 310 0 /2 240 /1 This is the estimated output froam an enrollment capacity of 2,200 at the Mohammedia Engineering College. The proposed project covers an expansion of the college to this capacity. Enrollments in 1977-78 were 535. /2 At present there is no specific t:raining in Morocco for technical teachers, 60% of whom are expatriates.  - 8 - 1.20. The inadequacy of basic data in Morocco has made estimates of future technical manpower needs difficult and figures should be regarded only as general orders of magnitude. Nevertheless the gap between estimated annual requirements and current output demonstrates the general dimension of the manpower shortage in Morocco. It is estimated that annual requirements for engineers in Morocco during 1977-90 will be 1,740 p.a. of which 580 will be "ingenieurs d'etat" (five year course) and 1,160 "ingenieurs d'application" (four year course) compared with a current output for both categories of 387.1/ Requirements for higher engineering technicians in the same period are estimated at 4,400 p.a while outputs were only 407 in 1977. Middle level technical manpower requirements are expected to average 11,700 industrial technicians p.a. and 13,500 commercial technicians. Outputs of these cate- gories in 1977 were 1,499 and 3,906 respectively. 1.21. The project institutions would make a signil icant contribution to the long term requirements for teclanical manpower in Morocco and an especially important contribution to the planned expansion of the higher education system. The extension to Mohammedia would raise its enrollment capacity f rom 535 to 2,200 and an annual output of around 400 ingenieurs d'etat could be expected. The applied engineering college, with an estimated output of 190 p.a. is one of two to be established and current proposals also call for the establishment of four higher institutes of technology, the first of their kind under the Ministry of National Education. The project would finance two of these which together would graduate 550 higher teclhnicians a year at full capacity. The 11 technical lycees would more than double current capacity and would eventually graduate 2,180 engineering technicians and 1,020 commer- cial technicians per year. The majority of graduates are expected to enter direct employment to ease the critical shortage of middle level technicians. The technical teacher training college would play a major role in supporting the expansion of technical education by providing 240 technical teachers a year or 77% of estimated annual average needs. Education Finance 1.22. Expenditures on education in Morocco have reflected the rapid rate of growth of enrollments at all levels in recent years. Overall enrollments increased at around 8% p.a. betweEtn 1973 and 1977 and this educational effort has imposed an increasing burden on the economy with total public expenditure on education, as a proportion of GNP, rising from 4.2% in 1972 to 6.3% in 1976. Assuming that education continues to receive high priority in national development, current trends indicate that education will account for around the same proportion of GNP by 1990. Although the burden of educational expenditures is not expected to increase appreciably, it is nevertheless quite high for a country at Morocco's stage of development and it emphasizes the need for close control of educational expenditures. In 1973-77, recurrent costs in primary and secondary education rose at arotnd 10.5% p.a. due mainly 1/ Output figures do not include Moroccan graduates of overseas institu- tions. In 1977 there were 773 Moroccans studying engineering and technical courses overseas.  - 9 - to increases in teachers' salaries. There are clear opportunities for lower- ing unit costs through raising the relatively low internal efficiency of the school system. The government is expected to exercise close control over boarding and scholarship costs and teachers' salaries, which account for 85% of recurrent expenditures in primary and secondary education. Furthermore, substantial savings are expected to accrue through the moroccanization of the secondary teaching service which is currently 35% expatriate. The ongoing effort to improve school location planning will continue as a matter of priority and every effort will be made to reduce unit construction costs and ensure appropriate space standards in educational facilities. Bank Strategy and Lending for Educatien 1.23. Growth, modernization and self-reliance within Morocco will place a particularly heavy responsibilitv ori the education and training system to improve the general educational level of the population and especially to produce the skilled manpower required to achieve Morocco's long term develop- ment objectives. Education policies in Morocco have been directed towards these ends by emphasizing the generalization of primary education, moroccan- ization, arabization, and expansion of secondary and higher education to meet manpower needs. Nevertheless quantitative expansion has been accompanied by qualitative deficiencies especially inL the form of low internal efficiency and lack of relevance of teaching to national needs (paras. 1.13 and 1.16). 1.24. Bank lending in the education sector (two credits and one loan) has been consistent with the government's objectives and the need to mitigate the problems of the education system. Lending has concentrated on: (a) expansion and qualitative improvement of secondary education as a basis for producirg urgently needed manpower; (b) the expansion of teacher training in support of the policy of moroccanization; (c) the expansion of manpower training capacity in specific priority sectors (agriculture,health and tourism); and (d) support for more relevant and equitably distributed rural education through the construction of experimental primary schools in the most deprived rural areas. The first credit (79-MOR for US$ 11 million) in 1965 provided for the construction and equipment of 21 secondary schools (three were later deleted) offering a mix of general academic and vocationally oriented short courses. The latter were never implemented following a government reform which abolished vocational courses in the formal education system and thus the impact of the project was reduced. There were also substantial delays in implementation due to poor project management in the early stages. Implementation was in the hands of part-time officials; weak decision making capability and cumbersome disbursement procedures also con- tributed to the delays. The situation steadily improved following the crea- tion of a separate, permanently staffed project unit as specified in the second credit agreement. 1.25. The second credit (266-MOR for US$ 8.5 million) in 1971 provided strong support for teacher training through the establishment of seven teacher training colleges and the qualitative improvement of science and technical teaching through the provision of science laboratories for 6 general sec- ondary schools, and equipment for 10 technical and 13 commercial schools.  - 10 - Construction and equipment were also provided in support of forestry training. Implementation of this project proceeded satisfactorily and is now complete. The third project (Loan 1220-T-MOR for US$ 25 million) in 1976 continued support for manpower training in specific sectors (agriculture, health and tourism), secondary education and teacher training ancd also provided 47 primary schools with practically oriented curricula to increase educational opportunities and the relevance of primary schooling in rural reas. Imple- mentation of this project is proceeding satisfactorily. 1.26. The proposed fourth education project concentrates on meeting Morocco's crucial needs for technicians and engineers and training technical teachers. This project is vLewed as a specifie effort: in middle and higher technical education to relieve Morocco's severe shortages of technical man- power. Future lending is expected to emphasize lower level training needs for particular priority sectors (such as agriculture and health) and voca- tional training for industry with emphasis on skill upgrading for the poor. With regard to the latter, areas for future Bank lend-ing will be identified in a study of lower level vocational and technical training being financed under the third project. II. THE PROJECT Introduction 2.01 The proposed project was prepared by the Moroccan government, in part by means of engineering studies financed under the third education project.l/ Bank pre-preparation missions visited Morocco in June and October 1977 and a Moroccan preparation mission came to Washington in November 1977. A Unesco mission assisted in project preparation in Jianuary 1978. The project (loan amount $113 million) was appraised by Messrs. W.E. Rees (economist, mission leader), A. Andonyadis (architect), J.C. Jones (technical educator, consultant) and R. Dugre (engineering educator, consultant) during February 13 - March 10, 1978. The government presented a list of nine prepared items of which five were appraised in line with government and Bank priorities and the limit imposed by the estimated loan amount. Slow progress in design develop- ment necessitated further visits by the mission architect in November 1978 and January 1979 and has led to a considerable delay in finalizing project documents. Objectives and Scope 2.02 The project is designed to increase the supply of (a) middle and higher technicians and engineers to meet Morocco's urgent demand for these uianpower categories; and (b) technical teachers for the expanding system of technical lycees and for the "introduction to tec'nnology" program in 1/ The engineering studies were for five technical Lycees, the technical teacher training college and the applied engineering institute.  - il - the general lycees. The project institutions would be located in accordance with government policies for decentralized development and the need to dis- perse training opportunities among regional centers of development. The project would comprise: (a) Construction, furniture and equipment for: Estimated Estimated New Annual Annual Grades Places Intake Output (i) 11 Technical lycees 10-12 10,160 3,330 3,200 (ii) Regional Technical Teachert Training Institute 13-15 660 250 240 (iii) 2 Higher Institutes of Technology 13-14 1,152 580 550 (iv) National Institute of Applied Engineering 13-16 768 200 190 (v) Extension to Mohammedia Engineering College 13-17 1,665 500 400 (b) Technical assistance related to (i) - (iv) above (20 man-years of experts and 1-1/3 man-years of fellowships). (c) Technical assistance for the project implementation unit (8 man- years). (d) Pre-investment designs for the preparation of a future education project. (a) Technical Lycees 2.03 The project would provide for the construction and equipment of Il technical lycees offering three-year industrial and commercial courses at the upper-secondary level (grades 10-12). Outputs are estimated at 2,180 indus- trial and 1,020 commercial technicians. The courses are designed with specific reference to the needs of industry and commerce for middle-level technicians and it is expected that a majority (85-90%) of graduates would seek such employment with the remainder enter