Burundi - Second Education Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-2684-BU REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF BURUNDI FOR A SECOND EDUCATION PROJECT January 9, 1980 I Ths document has a restricted distribution and may be used by recipients only In the performance of I their official duties. Its contents may not otherwise be disclosed without World Bank authoriation.  CURRENCY EQUIVALENTS Currency Unit - Burundi Franc (FBu) US$1.00 - FBu 90 FBu 1 = US$0.011 ABBREVIATIONS EEC - European Economic Community ILO - International Labor Organization UNDP - United Nations Development Program UNESCO - United Nations Education, Science and Culture Organization FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY BURUNDI SECOND EDUCATION PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Burundi Amount: US$15.0 million (IDA) Terms: Standard Project Description: (i) Purpose: To assist the Government in (a) training middle level technicians and skilled workers in industrial trades and secretarial/administrative skills; (b) implementing and evaluating the reform of the educa- tion system; and (c) strengthening the planning, super- vision and project implementation capacity of the Ministry of Education and its related services. (ii) Components: (a) construction, furnishing and equipping of two new boarding technical schools, a Mechanics Department and a Typist and Bookkeeper Training Depart- ment in two existing schools and staff housing; (b) provision of equipment, materials and vehicles to the Planning Unit of the Ministry of Education, the Technical and General Secondary Education Bureaus and the Project Implementation Unit; and (c) technical assistance and preinvestment studies. (iii) Benefits: Increased availability of skilled manpower in essential trades required to support Burundi's economic development programs; improved efficiency and quality of technical education; improved performance of education planning and project implementation services of the Ministry of Education. (iv) Risks: The project does not face unusual risks. Recruitment of national teachers of the desired quality may prove more difficult than anticipated and some delay may occur in recruiting suitably qualified expatriate teachers. These risks have been taken into account in the design of the project and are acceptable given the high priority accorded to technical education in Burundi (which is reflected in the increasing share of budgetary funds allocated for this purpose). This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Costs: (US$' million) Local Foreign Total Civil Works furniture equipment, materials and vehicles 2.85 8.00 10.85 Technical assistance and professional services 0.24 0.99 1.23 Project administration 0.11 0.21 0.32 Total 3.20 9.20 12.40 Contingencies allowances Physical (10%) 0.32 0.92 1.24 Price (32%) 1.13 3.23 4.36 Total Project costs 4.65 13.35 18.00 (net of taxes) 3.95 13.35 17.30 (US$' million) Financing Plan Local Foreign Total Government 2.3 -- 2.3 IDA 1.6 13.4 15.0 Total 3.9 13.4 17.3 Estimated Disbursement: US$' million Bank FY 1981 1982 1983 1984 1985 Annual 0.70 4.40 5.90 3.00 1.00 Cumulative 0.70 5.10 11.00 14.00 15.00 Appraisal Report: Report No. 2659-BU dated January 7, 1980. Map: IBRD 14428  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF BURUNDI FOR A SECOND EDUCATION PROJECT 1. I submit the following report and recommendation on a proposed Development Credit to the Republic of Burundi for the equivalent of US$15.0 million on standard IDA terms to help finance a Second Education Project. PART I - THE ECONOMY 2. The last economic memorandum on Burundi (1838-BU) was distributed to the Executive Directors on April 25, 1978. An Economic Mission visited Burundi in November/December 1979 and its report will be distributed in June 1980. Preliminary conclusions of the Mission are provided below and updated country data in Annex I. Background 3. With an average GNP per capita of about US$140, Burundi is one of the poorest countries in the world and is designated as "least developed" by the United Nations. Of a population of about four million, only 90,000 are wage earners; the remainder depend mainly on subsistence agriculture. The Government is facing several critical problems in its efforts to develop the economy: the capability to prepare and manage programs and projects is weak; the agricultural labor force is largely untrained; and population growth keeps straining Burundi's productive resources, particularly in agriculture. Despite a stated policy of "spaced births", the problems of population pressure cannot be solved in the immediate future. A major effort must be made to increase agricultural productivity. Agricultural yields have been declining, as more and more marginal land has been brought under cultiva- tion. The search for more arable land has caused large-scale deforestation, resulting in a severe lack of firewood in the rural areas and forcing the development of alternative energy sources. 4. Improvements to the internal transport system will be of limited effect unless reliable external links can be established. Shipments of imports and exports through the principal outlets via Tanzania have tradition- ally encountered frequent delays due to bottlenecks in the port of Dar-es- Salaam, underinvestment in the railway link between Tabora and Kigoma on Lake  - 2 - Tanganyika, and losses because of theft. However, some action is being taken to improve the situation. For example, several donors (Canada, ]3elgium and the European Development Fund) are considering financing the rehabilitation of railway and port infrastructure in Tanzania. The link via Rwanda and Uganda to the former East African Railways and the port of Mombasa (Kenya) is becoming increasingly attractive with the continuing improvement in national highways between Bujumbura and Mombasa. 5. Recent Economic Developments. Over the period 1973-78, Burundi's GDP grew at a rate of only 3.6 percent per annum in real terms compared to the 2.2 percent annual growth of its population. Growth was concentrated mainly in the capital city, particularly in manufacturing and construction activity. Food crop production grew significantly more slowly than did population, while the production of export crops (including coffee, the main source of foreign exchange earnings) tended to decline. 6. The overall investment rate of the economy rose considerably in 1977-78, when it accounted for 12.7 percent of GDP, but it is still below the average for low-income countries. The allocation of investment between production and infrastructure, one-third and two-thirds, respectively, has not changed noticeably in recent years. The bulk of investment in the rural areas has been to a large extent financed by official external aid and has been allocated mostly to export crops. In 1978, the public sector accounted for about 94 percent of gross fixed capital formation. This has been accom- plished largely by government investment in social and transport infra- structure and by the activities of public corporations. Investment by private enterprises has been relatively weak, reflecting in part the excess capacity prevailing in certain industries and the limited financial and managerial capabilities of most private firms. 7. Owing to high coffee prices in 1976 and 1977, export earnings, in- come and Government revenue rose sharply in those years. By the end of 1977, Burundi had accumulated about US$89 million in net foreign reserves, equiva- lent to 11 months of imports. The improvement in the terms of trade resulted in income gains equivalent to an increase of about one-fourth of GDP over 1975. These increases accrued primarily to the Government through higher export taxes; the rest was shared by the small coffee producers through increases in producer prices. The increase in Government revenues allowed substantial increases in current and investment expenditures. In spite of these, overall budgetary transactions, which had showed a small deficit in 1975, registered a surplus in 1976 and 1977 due to the higher growth of tax revenues. 8. In the wake of a 50 percent decline in the average price of coffee exports, rapid import growth stemming from strong consumer demand, rising public investment, and significant increases in import prices and costs of insurance and freight, Burundi lost US$9 million of its reserves during 1978 (despite a large increase in grants and net disbursements of external loans). By August 1979, net international reserves had fallen to US$40 million, equivalent to about five months of imports. Faced with a significant decline in revenues from coffee exports, and with rapidly rising expenditures, after  - 3 - two years of surpluses, the Government was forced to borrow from the banking system to finance its overall deficit (2 percent of GDP). 9. Most recently and as a result of the hostilities in Uganda, Burundi has encountered severe difficulties in transportation which led to acute shortages of fuel, cement and certain consumer goods in late 1978 and the first half of 1979. Since July/August considerable improvement in the overall supply situation has taken place. Despite this, during 1979 productive sector activity is estimated to have stagnated and investment declined in real terms. The shortages which prevailed over the first half of this year, significant increases in the domestic price of oil products, rapidly rising import prices, transportation and freight charges as well as continued pressure from the fiscal deficit have raised the domestic inflation rate to an unprecedented 25-30 percent. 10. Government Development Strategy. Since 1977 the Government has designed a new strategy to achieve social justice, ethnic reconciliation and improved living conditions in the rural areas. The poll tax, which was levied on all males, was replaced by compulsory deposits which can be withdrawn after three years. In addition, the traditional obligation for small farmers to provide services to landowners in exchange for the right to cultivate land has been abolished. Likewise, land which was obtained in an irregular manner for speculative purposes has been returned to the state or to the farmers who cultivated it. Other aspects of the new policies, which are embodied in the Third Five-Year Plan (1978-82), are: (a) to emphasize agri- cultural production to face the increasing needs for food supplies of the fast-growing population; (b) to increase the rate of economic growth substan- tially in order to provide greater employment opportunities and more income to the poorest segments of the population; (c) to raise the investment rate significantly; (d) to give the Government a more active role in mobilizing financial and manpower resources and in participating in mixed enterprises in the commercial and productive sectors; and (e) to foster decentralization of economic and social activity away from the capital city and achieve a more balanced geographic distribution through the creation of development poles, voluntary settlement of the peasant population in villages, and migration from densely populated areas. To facilitate the implementation of its strategy, the Government has strengthened the role of planning by elevating the planning otganization to the rank of ministry and by giving it a key role in the allocation and monitoring of public investment. 11. External Assistance and Prospects. Economic prospects are less favorable than in recent years as a result of expected declines in coffee prices. Three major challenges which the Government currently faces are limiting the loss of reserves, preserving its revenue base, and containing inflationary pressures. This will require cautious budgetary policies and a significant reduction of the Government's investment targets for the remainder of the Third Five-Year Plan. In addition, the producer price for coffee will have to be reduced in real terms, as the world market price for this commodity is expected to average in real terms, during 1980-82, only 56 percent of the 1976 level. The Government is currently revising its policies  - 4 - in all of these areas. Most recently, it reduced its investment targets for 1980-84 by 40 percent in real terms. Likewise, for the period October 1, 1979 to September 30, 1980, the Government has prepared, with the IMF's assistance, an economic and financial program whose major objectives are to reduce signi- ficantly the rate of inflation and to limit the balance of payments deficit. In conjunction with this program, the IMF authorized last October drawings of SDR 8.3 million in the form of Trust Fund resources. At the same time, SDR 9.5 million in compensatory financing for the shortfall in coffee exports experienced in 1978-79 were authorized by the IMF. 12. If the Government continues to focus on development and strengthens its administration, it may achieve a steady, albeit slow, improvement in per capita income. If mining of Burundi's nickel resources proves feasible, the prospects over the next ten years would be much better. However, the commer- cial viability of exploiting these deposits has yet to be established. Regional development in Central Africa will also be important to Burundi's economy. In September 1976, Burundi, Rwanda and Zaire signed a convention establishing the "Economic Community of the Countries of the Great Lakes." The Community, which has its seat in Gisenyi, Rwanda, aims inter alia at stimulating and intensifying intra-regional trade and cooperation in a wide range of activities. A major objective of the Community is the electrifica- tion of the Great Lakes region. The three countries have also agreed to set up a joint development bank, to exploit methane deposits around Lake Kivu, and to develop a fishing industry around Lake Tanganyika. They have also instructed the Secretariat to investigate ways of improving the transport system around the lakes in order to ease the transport bottlenecks in Burundi and Rwanda. 13. Disbursements of long-term loans and capital grants averaged US$34 million per annum during 1977-78, most of it coming from Belgium, the Federal Republic of Germany, IDA, the UN agencies and the European Development Fund. In the 1975-78 period, total long-term capital inflows amounted to about US$110 million, of which US$64 million was in the form of grants. On December 31, 1978, Burundi's external medium- and long-term debt amounted to about US$63.6 million (excluding undisbursed amounts), of which IDA held 22 percent. Debt service averaged 3.5 percent of export earnings during 1978. Due to the large proportion of grants in external assistance, IDA will probably continue to hold an important proportion of Burundi's outstanding debt. Notwithstand- ing the low debt service ratio, Burundi is unable to absorb any borrowing on commercial terms, because of its poverty and the instability of its export earnings. External aid should therefore be on grant or very concessional terms and continue to include a substantial share of local cost financing. PART II - BANK GROUP OPERATIONS 14. Since IDA lending started in Burundi in 1966, twelve Credits have been made totalling US$55.2 million; one Credit (US$1.1 million) helped improve water supply to Bujumbura; four Credits (US$17.3 million) were for agriculture (two for coffee production, one for fishing and one for forestry); three Credits (US$19.4 million, including an engineering  - 5 - c:redit -f US$400,000) helped start a highway maintenance and improvement program; a US$10.0 million Credit is supporting the improvement of primary education; two Credits (US$4.0 million) were made for technical assistance and the National Economic Development Bank received a Credit of US$3.4 million. Nine ou these Credits (US$44.1 million) were made after 1973 since civil strife in the years before made lending difficult. The Second Coffee Project and the Fisheries Project are being cofinanced by the Kuwait Fund (US$1.0 million) and the Abu Dhabi Fund (US$1.2 million) respectively. The Second Highway Project is cofinanced by the Arab Bank for Economic Development in Africa (BADEA) in an amount of US$6.0 million. The Forestry Project is cofinanced with a Credit of US$1.2 million equivalent made from the EEC Special Action Account. Annex II contains a summary statement of IDA Credits and notes on the execution of projects and the status of disbursements as of November 30, 1979. 15. Project performance has been uneven, reflecting the lack of local management capacity and technical skills which is likely to remain a major constraint to development for some time to come. This situation has parti- cularly delayed the execution of the Fisheries and the Second Coffee Projects, although the implementation of the Second Coffee Project has recently improved. Disbursement of the Credit to the National Economic Development Bank has been lagging because of the general sluggishness of the industrial sector. On the other hand, implementation of the First Education project and Second Highway project is satisfactory. IDA Credits for the Forestry and the Technical Assistance projects which were approved in May 1979 have become effective and project execution has started. 16. Future IDA operations in Burundi will continue to focus on improv- ing agricultural productivity, transportation and education, and to include assistance for project management and technical expertise. An urban project to help improve the living conditions of the urban poor in Bujumbura and a telecommunications project to improve the domestic telephone and telex system were appraised in December 1979. Preparation of an agricultural development project, which would aim at improving the living standards of the rural population in one of the poorest areas of the country, was completed in October 1979 and the project is expected to be appraised shortly. Further improvements of the road sector will be envisaged under a third highway project to facilitate the distribution of foodstuffs between surplus and deficit areas and reduce regional price differences. PART III - THE EDUCATION SECTOR 17. During the first half of this century, formal education was intro- duced by Christian missionaries and expanded under Belgian administration. Until shortly before independence (1962) the main emphasis was placed on primary schooling. Most institutions of secondary and higher education have been established since independence. Education was generally based on European patterns with little relation to the local environment. Most serious was the fact that education was reaching only a small percentage of the populat- ion. Although primary school enrollment has slightly increased since the  -6- inception of the First Education Project, enrollment at this level is still estimated to comprise only about 23 percent of the relevant age group while at secondary and higher education levels, enrollment ratios are only 2.5 percent and 0.5 percent, respectively, among the lowest in Africa. 18. The educational system comprises three types of schools: govern- ment schools, government-subsidized private schools and a limited number of independent private schools. To improve the educational system, the Government, with UNESCO's assistance, introduced a major reform in 1973. As a first step, the curriculum of primary education was revised emphasizing "ruralization" and the use of the national language, "Kirundi", as the only medium of instruction instead of French. Primary schools would be community schools making them centers for adult education and civic activities as well. Secondary and higher education would be reorganized and adapted to the needs of Burundi, and would be made more efficient. 19. Primary Education: The reform of primary education is proceeding satisfactorily. The Government plans to enroll some 10,000 additional students annually to reach about 200,000 students (about 28 percent of the relevant age group) before 1985. In addition, the Government's Five Year Development Plan provides for the establishment of literacy centers. Similar centers are already being operated by private religious organiza- tions offering three shifts of two days of instruction each week over a period of six years. Currently, the religious literacy centers provide about 300,000 student places and the government-supported centers would add another 20,000. 20. Secondary Education: Secondary education is composed of general secondary education, teacher training, and vocational and technical courses in various trades. General secondary education, which consists of a common junior course of four years and a senior level of three years, has been expanding rapidly over the past years (about 12 percent per year) and attained an enrollment of about 7,900 students in 1978/79, spread over 29 schools. Because of inadequate laboratories, equipment and teaching materials, secondary education is overly theoretical and most students are insufficiently prepared to enter higher education, in particular in the technical and scientific fields. The Government is initiating a reform of general secondary curricula and teaching methods to improve quality and relevance of training. 21. Higher Education is provided by the National University of Burundi. About 1,700 students were enrolled in the University during 1978/79, of whom 54 percent were in law, arts, economics and administration, and 40 percent in sciences (including engineering), medicine and agriculture. Efficiency in higher education is considered low, in particular in sciences, because the teaching staff (of whom 60 percent are expatriate) utilize learning standards with which students can hardly cope due to their inadequate preparation at the previous level of education. 22. Technical Education: The Ministry of Education provides technical and vocational education in 13 schools of different levels. Technical secondary courses of three to four years' duration are given in woodwork,  - 7 - electrical technology, mechanics, construction and civil engineering. Voca- tional training is conducted in bricklaying, woodwork, automechanics and metalwork. In addition, there are three agricultural schools, one school for public works, and four paramedical training centers. During the last three years technical education has been growing rapidly, at about 14 percent annually. However, the present system is still neither quantitatively nor qualitatively in line with the development needs of the economy. Most of the technical schools have inadequate facilities and equipment for the specific training they are supposed to provide. Their efficiency is generally low. 23. Manpower Needs. With ILO assistance, the Government has carried out a study of Burundi's manpower needs and training requirements for the period 1979-2000. Most of the 2 million people who constitute Burundi's labor force are engaged in subsistence agriculture. About 90,000 workers are employed in the modern sector, including almost 60,000 people in govern- ment services, parastatal institutions and mixed enterprises. Manpower projections indicate that employment in the modern sector will more than double by the end of the next decade. In particular, demand for technical manpower requiring specialized secondary education is expected to increase substantially. 24. In view of this increasing demand for technical manpower and to strengthen Burundi's overall project implementation capacity, the Government has decided to improve and expand technical education rapidly, adapt it better to employment opportunities and make it more efficient. It intends to set clear objectives for each level of education, to develop new curricula consistent with these objectives, to establish a minimum age of 15 years and raise academic standards for admission into technical education. Since general education would thus be sufficiently mastered before admission to technical education, the Government also plans to reduce general education components in technical education programs and better adapt these components to the needs of technical and vocational training. This would result in shorter course duration and an improvement of annual output of existing facilities. 25. In addition to curriculum improvement, the Government plans to increase the capacity of the technical education system through expansion of existing schools, and construction of new facilities. Two major technical schools located at Kamenge near Bujumbura will be expanded, namely the Technical Secondary School (from 600 to 950 student places) and the Commercial Secondary School (from 174 to 530 student places). The school for Con- struction Trades at Gihanga, one of the most-efficient schools, the structures of which are deteriorating because of unsuitable foundations, will be replaced by a larger school (with an increase in capacity from 120 to 380 student places) near Bubanza. The school for Public Works in Bujumbura will be expanded, as a temporary resource (from 110 to 270 student places), pending construction of new facilities in Gitega. The capacity of agricultural extension staff training schools will also be enlarged. 26. After completion of the expansion of technical school facilities and the revision of curricula expected by mid 1983, the capacity of technical education (including agricultural education) would consist of about 1,300  - 8 - student places for middle level technician training and about 2,400 student places for skilled and semi-skilled worker training, which would result in an annual output of 350 middle level technicians and 650 skilled and semi-skilled workers. This compares to an expected annual demand of about 1,700 middle level, technically trained people for the next decade. For the period 1988- 1992 annual demand for these categories of qualifications would increase to about 2,500. The expanded technical school system would provide about 40 percent of the total expected requirements when the schools are fully operational. The remaining requirements for technical manpower would have to be met through on the job training 27. Administration: The Ministry of Education is generally responsible for the management of the education sector. Education planning is carried out by a Planning Unit established in 1977. The implementation of the primary reform and the supervision of the primary system has been entrusted to the Rural Education Bureau, a semi-autonomous department within the Ministry, while the reorganization and reform of secondary education are being introduced under the responsibility of the Secondary Education Bureau and the Inspectorate. The Technical Education Bureau, which was created in 1977 within the Directorate General of Secondary Education, is responsible for the development and implementation of technical education reforms. 28. Education Finance: Government expenditures for education have risen in real terms at an average rate of 13 percent per year between 1974 and 1977, reaching US$15.0 million equivalent in 1977 1/. The share of education recurrent expenditures in the Government's budget averaged about 22 percent and is expected to rise to 25 percent by the mid-1980's. While this is a heavy burden on the Government's budget, it is similar to that of other African countries at comparable level of development, giving high priority to education. In 1978, recurrent expenditures for primary education absorbed about 44 percent of total recurrent education expenditures, followed by recurrent expenditures for general secondary and primary teacher training (about 26 percent) and higher education (about 20 percent). Total investment in education for 1979-83 has been estimated at about US$70.0 million equiva- lent (in 1978 prices), about 20 percent of total projected investments. As a result of the expansion of the technical school system, recurrent expenditures for technical education are expected to increase from about 6 percent of total recurrent education expenditures in 1978 to about 9 percent in 1983. 29. External Assistance: Total official foreign aid to the education sector amounted to US$16.9 million in 1977, about 51 percent of total educa- tion financing. From 1974 to 1977, the level of official foreign aid remained almost static while the Government's contribution increased rapidly. Belgium is the major source of bilateral assistance and provides a substantial number of teaching staff (about 110 teachers), technical advisers and fellowships. Belgium also assists in financing the extension of the Technical Secondary 1/ Latest year for which full data are available.  - 9 - School iii Kamenge and developing the engineering department of the University and intends to provide teaching staff for the technical schools envisaged under the proposed project. France provides teaching staff and technical assistance. About 2,075 students, of whom 562 (or 27 percent) are receiving technical training, are at present benefiting from fellowships from a variety of sources. The European Development Fund finances about a third of these technical fellowships and is prepared to increase its assistance in the near future. UNDP has also expressed interest in providing equipment and specialists' services to technical education. 30. Bank Group Experience: Since IDA first became associated with the development of Burundi's education sector in 1973, a regular exchange of views has taken place with the Government on the implementation of the reform of the educational system. During preparation and implementation of the First Education Project regular discussions have been held with the Government on issues such as equitable access to primary education, school distribution and ruralization of the curriculum, as a result of which the Government made several modifications in its primary education system to make it more effi- cient and equitable. Implementation of the First Education Project (Credit 679-BU) has generally been satisfactory, although the project has encountered considerable difficulties, which were beyond the control of the Government. Initially, it proved difficult to find adequate local contractors to carry out school construction on sites dispersed throughout the country, which required the establishment of the Project Unit's own construction force. Once construction had gotten well underway, regional shortages of cement caused work stoppages on several occasions, in particular during the past year because of transport difficulties resulting from the hostilities in Uganda. The latter events brought project execution virtually to a halt and have delayed its completion by about a year. Because of sharply increased costs of supplies, the available Credit funds may not permit the construction of all 100 schools originally envisaged. To date twelve primary schools, a teacher training center and the printshop for the Rural Education Bureau have been completed and another eight primary schools are nearing completion. The project is expected to be completed by 1983. PART IV - THE PROJECT 31. The proposed project was identified by an IDA-UNESCO Mission in 1978 and prepared by the Government with UNESCO's assistance. In November 1978, IDA approved an advance of US$135,000 from the Project Preparation Facility, which would be refinanced by the proposed Credit, to help finance a preinvest- ment study on technical education to prepare the project. The project was appraised by IDA in May 1979. Negotiations were held in Washington from November 29 to December 3, 1979. The delegation from Burundi was led by Mr. Jean-Baptiste Ndikumana, Project Director, Ministry of Education. A Staff Appraisal Report on the Second Education Project in Burundi (Report No. 2659-BU) is being circulated to the Executive Directors separately. The main features of the project are highlighted in the Credit and Project Summary given at the beginning of this Report, supplemented by Annex III.  - 10- Project Objectives and Description 32. The project, which would be carried out over a period of five years, would assist the Government in: (a) training middle-level technicians and skilled workers in industrial trades and secretarial/administrative skills; (b) implementing and evaluating the reform of the education system; and (c) strengthening the planning, supervision and project implementation capacity of the Ministry of Education and its related services. The project would provide for the construction, furnishing and equipping of 1,080 tech- nical secondary student places, 990 student dormitory places and the equipping of major ministerial services. Specifically, the project would comprise: (a) construction, furnishing and equipping of (i) two new boarding technical secondary schools (including staff housing); (ii) a Mechanics Department in an existing technical secondary school; and (iii) a Typist and Bookkeeper Training Department in an existing commercial secondary school (including boarding and staff housing); (b) provision of equipment, materials and vehicles to the Planning Unit of the Ministry of Education, the Inspectorate, the Technical and General Education Bureaus and the Project Implementation Unit; and (c) technical assistance and preinvestment studies. Project Schools 33. Construction Trade Training School: This new school (which would be the only secondary school in the densely populated district of Bubanza) would enroll 380 students and have an annual output of 110 graduates following a three-year course in masonry/concrete construction, plumbing, electrical installation and general mechanics. The curriculum would consist mainly of workshop and field practice and related theory, and some general education (Kirundi, French, mathematics and sciences) related to technical subject matters. Graduates from the school are expected to be hired as skilled workers by public and private construction agencies or to start a private business of their own. 34. School for Public Works: The new Public Works School would replace the existing secondary public works school located on an unsuitable, con- stricted site in Bujumbura. It would be located in Gitega, the second largest town in Burundi situated in the center of the country, where the Government intends to establish its second major development pole after Bujumbura. The site is suitable for practical training, in particular with heavy equipment. The school would provide three-year programs in surveying, construction supervision, drafting and rural engineering/hydraulics for about 270 middle- level technicians, and training in heavy-duty equipment operation and main- tenance for about 60 skilled workers. Workshop and field practice would represent a substantial part of the training program. The annual output is  - 11 - expected to be 95 middle-level technicians and skilled workers. The school would also be used to upgrade the staff of the Ministry of Public Works. School graduates are expected to be employed by the Ministry of Public Works and private construction firms. Responsibility for the operation of the school would be transferred to the Ministry of Education before June 30, 1983 (at present the Public Works Ministry is in charge of the public works school in Bujumbura) because the Ministry of Education is better equipped to support and supervise training programs (Section 4.04 (b) of the draft Development Credit Agreement). 35. Mechanics Department: A new Mechanics Department would be con- structed at the Technical Secondary School in Kamenge near Bujumbura which would offer a three-year course to 90 students with an expected annual output of 25 middle level technicians specialized in general mechanics and industrial drawing. The site for the school was selected because Bujumbura is likely to remain the main industrial center of Burundi. The curriculum would include about 70% of technical instruction, half of which would be workshop practice, and also some general education in languages, mathematics and sciences as required by the vocational program. The Mechanics Department would be used as a model for the reorganization of the Technical Secondary School and for replication of its program orientation in other technical schools. Belgium has agreed to finance the construction of 250 dormitory places for the school (in addition to the 370 places already available) which would also be avail- able to the students of the Mechanics Department. The Government would provide staff housing (Section 4.06 of the draft Development Credit Agreement). 36. Typist and Bookkeeper Training Department: The project would provide a new department in the existing commercial secondary school in Kamenge near Bujumbura to train typists and bookkeepers. The Department would be the only training institution in Burundi for this type and level of skills. It would provide 280 student places of which half would be for girls. The two-year course would include vocational training (almost two thirds of the curriculum) and general education, mainly in languages. The expected annual output would be 130 graduates equally distributed between typists and bookkeepers. Although the two programs would be separate, they would include a common core of bookkeeping, typing and office procedures to provide students with a wide range of professional competence. Teaching Staff 37. About 90 teachers would be required for the proposed project, most of whom would be teaching technical subjects. National teachers for industrial and technical subjects would be recruited from engineers and technicians expected to return from studies abroad before the proposed project schools become fully operational in 1985. A sufficient supply of national teachers is expected to be available; at present, 196 students are following technical and engineering courses in Burundi and 336 engineers are being trained abroad. These students benefit from fellowships offered by the Government in exchange  - 12 - for a commmitment to serve for at least 10 years upon graduation in positions specified by the Government, including education. In addition, a salary incentive of about 30 percent of the basic salary is already offered to university graduates joining the teaching profession. The Government also utilizes its own ministerial technical staff in part-time teaching. 38. Foreign aid (Belgium, France and UNDP) is expected to provide expatriate teachers to fill positions for which national teachers might not be available in time and to give pedagogical advice to newly trained national teachers. No difficulty is anticipated in recruiting the required number of national teachers for general and commercial subjects from exist- ing training institutions in Burundi. The Government would ensure that the project schools would be staffed at all times with experienced and qualified personnel including teacher trainers to provide pedagogical guidance to national teachers (Section 4.09 of the draft Development Credit Agreement). Finally, after adequate training on the job, the most suitable graduates from the technical schools financed by the proposed project, could be selected as teachers for the technical education system at large. Common Elements of the Technical Education Components 39. To improve the efficiency of technical education, the Government would take the following measures before December 31, 1981 (Section 4.05 of the Development Credit Agreement): (i) students admitted to industrial and commercial courses for skilled worker training must be at least 15 years old and must have completed at least two and three years, respectively, of the four-year junior cycle of general secondary education; (ii) students entering middle level technician training must have successfully completed the junior cycle of general secondary education; and (iii) most graduates from technical training courses would not proceed to the next higher level of training; only the most promising students would be given an opportunity to enter the next higher level but only to the extent that their number would not exceed 10 percent of the students entering that level. This measure would result in most graduates joining the labor market at the level and in the special- ization for which they have been trained instead of continuing studies (as is often done in the present education system) for which they do not have the proper background. The Government would also ensure that before September 30, 1980, employers participate in the organization and operation of technical schools so that training programs would better respond to the needs of the economy (Section 4.07(a) of the draft Development Credit Agreement); employers would partici- pate in schoolboards, curriculum development, in-school and in-plant training  - 13 - activities, and graduates' vocational guidance and orientation. In addition all students would be boarders as project school students would be recruited on a nation wide basis and no adequate accommodation is locally available. Preinvestment Studies 40. The Government intends to establish a basic education system which would combine the best features of the existing formal primary education and literacy programs to reach universal literacy by the end of this century. In order to determine whether the expansion of the present literacy programs is justified and what the new basic education system should be, a study would be carried out to evaluate the cost effectiveness of literacy centers as compared to primary schools and to analyze the geographic distribution of the literacy centers and primary schools. The study is expected to be completed by mid- 1980. Another preinvestment study, focusing on technical education, helped prepare the proposed project, as indicated in para. 31. Technical Assistance and Professional Services 41. Two expatriate engineers would be hired for three and a half years each to assist the Mechanics Department of the Secondary Technical School and the Public Works School in monitoring and controlling delivery and installa- tion of equipment, preparing the plans of operations and coordinate the completion of syllabi. In addition they would manage the implementation of vocational training programs and train counterparts and technical teachers. The Project Implementation Unit established in the Ministry of Education during the First Education Project would be strengthened by an additional full time architect, two additional construction supervisors and a procurement specialist. The execution of the basic education study would require about 6 man months of specialist's services. All specialists would have adequate qualifications and experience and be employed under terms and conditions satisfactory to the Association (Section 3.02 of the draft Development Credit Agreement). Project Implementation 42. The Project Implementation Unit would be responsible for the exe- cution of the project including administrative and financial control, and design and supervision of construction of project buildings. The Unit is presently headed by a Burundi national assisted by an expatriate architect, an accountant and two construction supervisors. The total manpower of the unit, including the additional staff to be hired during the project (para. 41) would comprise about nine professionals and their support staff. Construction works would be carried out by private contractors for the academic and boarding facilities of the Construction Trade Training School and the Public Works School. The construction force of the Project Implementation Unit and/or local sub-contractors selected on the basis of local competitive bidding would build staff housing, the Mechanics Department of the Secondary Technical School and the Typing and Bookkeeping Department of the Commercial Secondary School; based upon experience in the first education project, this method of construction can be expected to be more economical and efficient for these project items than using private contractors.  - 14 - 43. The Technical Education Bureau of the Ministry of Education would prepare and furnish to the Association before December 31, 1981 a tracer and evaluation program to follow and assess the activities of technical education students during their training and after their graduation and to assess the Borrower's technical education system. Implementation of this program, which should be satisfactory to the Association, would start before September 30, 1982 (Section 4.03 of the draft Development Credit Agreement). The evaluation would indicate whether the new curricula, course duration and admission requirements for the project schools need to be modified. Project Cost and Financing 44. The total cost of the project has been estimated at US$17.3 million (net of taxes amounting to about US$0.7 million) of which US$13.4 million (or 77 percent) in foreign exchange. The proposed US$15.0 million IDA Credit would finance about 87 percent of total project cost net of taxes. This proportion of IDA financing, including the financing of US$1.6 million of local costs, is justified in view of Burundi's very limited financial resources (para. 13). The Government would contribute about US$2.3 million (about 13 percent, excluding taxes). Recurrent costs generated by the project have been estimated at about US$0.8 million annually, which amounts to about 3 percent of the projected recurrent budget of the Ministry of Education for 1985. Procurement 45. Civil works contracts would be awarded as follows: (a) civil works contracts for the academic and boarding facilities of the Construction Trade Training School and the Public Works School (about US$7.2 million equivalent including contingencies) would be awarded on the basis of international competitive bidding in accordance with Bank Group Guidelines; (b) construction of staff housing, the Mechanics Department and the Typing and Bookkeeping Department (about US$3.9 million equivalent including contingencies) would be carried out by the construction force of the Project Implementation Unit and/or local sub-contractors selected on the basis of local competitive bidding; and (c) contracts for furniture, equipment and vehicles (about US$4.3 million equivalent including contingencies) would be awarded following inter- national competitive bidding in accordance with the Bank Group's guidelines for procurement, except for contracts costing less than US$50,000 (within a total limit of US$600,000) which would be awarded following competitive bidding in accordance with local procedures satisfactory to the Association. Disbursement 46. Disbursement would be as follows: 85% of total expenditures for civil works under contract and 75% of local expenditures for civil works carried out by force account; 100% of foreign expenditures and 85% of local expenditures respectively for directly imported and locally procured construc- tion materials, furniture, equipment and vehicles; 100% of foreign expendi- tures and 80% of local expenditures for technical assistance; 65% of total expenditures for salaries of the Project Unit's staff and national specialists  - 15 - carrying out the Basic Education Study and 85% of local expenditures for other operating costs; and 100% refunding of the Project Preparation Facility advance. Benefits 47. The proposed project would assist in training specialized manpower in key trades thereby reducing the shortage of skilled staff, which is a major constraint to the economic development of Burundi; the project output would be about 360 graduates per year. The reform of curricula and teaching methods in the project schools would improve the relevance of the technical education system to the actual requirements of the economy and provide a model for replication in other institutions. As a result, a larger number of students are expected to elect technical education thereby easing the demand for general secondary education. Limiting the flow of students from lower level to higher level technical training would ensure the availability of qualified manpower at the levels and in specializations more urgently required thus making the system more rational and more responsive to manpower needs. Students would also benefit from the experience of private and public employers participating in the organization and operation of the schools. The strengthening of the Ministry of Education and the improvement of education planning and implementation services would come at a critical time when a comprehensive reform of the education system is being developed. Risks 48. The project would not face any unusual risks. It may not always be possible to attract national teachers of the required quality in time and some delay may occur in recruiting qualified expatriate teachers and specialists required to help introduce the innovative concepts of the technical education reform. However, these risks are inherent to the overall development process in Burundi and have been taken into account in the design of the project. As already indicated in para. 38, the Government has agreed to ensure that the project schools would be staffed at all times with experienced and qualified personnel (Section 4.09 of the draft Development Credit Agreement). Generally, the risks will be minimized because of the priority the Government has given to technical education. Therefore the legislative and administrative actions required to introduce the new curricula and to implement the project are expected to be completed rapidly and sufficient budgetary funds for recurrent and capital expenditures are expected to be made available. Close supervision by the services of the Ministry of Education, including the Project Implementation Unit, would further limit possible risks during execution of the project. PART V - LEGAL INSTRUMENTS AND AUTHORITY 49. The draft Development Credit Agreement between the Republic of Burundi and the Association and the Recommendation of the Committee provided for in Article V, Section 1 (d) of the Articles of Agreement are being dis- tributed to the Executive Directors separately.  - 16 - 50. Features of the draft Development Credit Agreement of special interest are referred to in Annex III of this report. There are no special conditions of effectiveness. 51. I am satisfied that the proposed Credit would comply with the Articles of Agreement of the Association. PART VI - RECONNENDATION 52. I recommend that the Executive Directors approve the proposed Credit. Robert S. McNamara President Attachments Washington, D.C. January 9, 1980  -17- ANNEX I Page 1 of 5 TABLE 3A BURUIDI - SOCIAL INDICATORS DATA SHEET LAND3UGA (THOUSAND SO. K21) aGRUN01t REFERENCE GROUPS (ADUSTED A4-RAGES LAND ',RhEA ("ROUSAND 30. 1M.) - MOST RECE ESTImA -S) TOI. 27.8 SAME SAME NEXT 'dIGHER AGRICULTURAL 16.9 MOST RECENT GEOGRAPHIC INCOME INCOME 1960 lb 1970 lb ESTIMATE /b REGION /c GROUP Id GROUP /e GNP PER CAPT'A (US$) 50.0 80.0 140.0 306.1 209.6 *67.5 ENERGY C0NSUF TION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) 10.0 /f 15.0 12.0 80.6 83.9 262.1 POPLLATION AND VITA. STATISTICS POPULATION, MID-YEAR (MILLIONS) 2.9 3.6 4.1 URBAN POPULATION (PERCENT OF TOTAL) 2.0 2.G 5.0 17.1 16.2 24.6 POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILLIONS) 7.0 STATIONARY POPULATION (MILLIONS) 20.0 YEAR STATIONARY POPULATION IS REACHED 2160 POPULATION DENSIT'Y PER Sp. !. 104.0 129.0 147.5 18.4 49.4 45.3 PER SQ. "2. AGRICLLTIUR.AL LAND 181.0 222.0 242.6 50.8 252.0 149.0 POPULATION AGE STRUCTURE (PERCENT) 0-14 YRS. 42.5 42.5 42.1 44.1 43.1 45.2 15-64 YRS. 54.6 54.7 54.3 52.9 53.2 51.9 65 YRS. AND ABOVE 2.9 2.8 3.6 2.8 3.0 2.8 POPU'LATION GROWTH RATE (PERCENT) TOTAL 2.0 2.4 2.2 2.7 2.4 2.7 URBAN 5.3 2.4 5.0 5.7 4.6 4.3 CRUDE 3IRTH RATE (PER THOUSAND) 48.0 47.0 47.0 46.3 42.4 39.4 CRUDE DEATH RATE (PER THOUSAND) 27.0 24.0 20.0 17.2 15.9 11.7 GROSS REPRODUCTION RATE 2.6& 2.8 3.1 3.1 2.9 2.7 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) .. .. .. USERS (PERCENT OF MARRIED WOMEX) ,. .. .. .. 12.2 13.2 FOOD AND NUTRITION INDEX OF FOOD PRODUCTION PER CAITA (1969-71-100) 88.8 101.0 95.0 94.3 98.2 99.6 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 82.0 99.0 99.0 89.5 93.3 94.7 PROTEINS (GRANS PER DAY) 47.0 61.0 .. 55.8 52.1 54.3 OF WHICH ANIMAL AND PULSE 28.0 40.0 .. 17.9 13.6 17.4 CHILD (AGES 1-4) MORTALITY RATE 41.0 36.0 28.0 22.3 18.5 11.4 HEALTH LIFE EXPECTANCY A. BIRTH (YEARS) 37.0 40.0 45.0 47.0 49.3 54.7 INFANT MORTALITY RATE (PER THOUSAND) .. 140.0 .. .. 105.4 68.1 ACCESS TO SAnF WATER (PERCENT OF POPULATION) TOTAL .. .. , 20.3 26.3 34.4 URBAN *' 77.0 914.0 53.9 58.5 57.9 RURAL .. .. ., 10.1 15.8 21.2 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. .. 22.5 16.0 40.8 URBAN .. 95.0 62.5 65.1 71.3 RURAL .. .. .. 13.9 3.5 27.7 POPULATION PER PHYSICIAN 63000.0 59000.0 45430.0 17424.7 11396.4 6799.4 POPULA-ION PER NURSING PERSON 5420.0 7500.0 6240.0 2506.6 5552.4 1522.1 POPULATION PER HOSPITAL BED TOTAL 730.0 790.0 760.0 502.3 1417.1 726.5 URBAN .. 70.0 .. 201.4 197.3 272.7 RURAL .. 730.0 .. 1403.6 2445.9 1404.4 ADdISSIONS PER 'HOSPITAL BED .. .. .. 23.4 24.8 27.5 HOUSING AVTERAGE SIZE OF H0USEHOLD TOTAL ... .4.9 5.3 5.4 URBAN .. .. 6.5 4.9 4.9 5.1 RAL .. .. 5.0 5.5 5.4 5.5 AVERAGE N.tBER OF ?ERSONS PER ROOM TOTAL .. .. .. URBAN .. .. .. RURL .. .. .. . .. ACCESS -O ELECTRICITY (PERCENT OF DWELLINGS) 7.A.L.. 22.5 28.I RURAN .. .. 21 ., 1. 9.1 RULu. ...9. , . 9,  -18- ANNEX I Page 2 of 5 TABLE 3A BURUNDI - SCCIAL :ND.CATORS DATA SHEET BURUNDI REFERENCE GROUPS (ADJUSTED AVERAGES M- OST RECENT ESTIMATE) - SAME SAMIE SEXT HIGHER 7OST RECENT GEOGRAPHIC INCIME INCOME 1960 /b 1970 /b ESTIMATE ib REC'ON ;c GROUP /d GROUP /e EDUCATION ADJUSTED ENROLL.ENT RATIOS FRLMARY: TOTAL 18.0 35.0 23.0 59.0 63.3 82.7 MALE 27.0 47.0 290O 64.2 79.1 87.3 PEMALE 9.0 23.0 17.9 44.2 48.4 75.8 SECONDARY: TOTAL 1.0 2.0 2.5 9.0 16.7 21.4 MALE 1.0 3.0 3.5 12.0 22.1 33.D FEMALE ;.0 1.0 1.5 4.4 10.2 15.5 VOCATIONAL ENROL. (2 OF SECONDARY) 35.0 24.0 12.9 7.0 5.6 9.8 PUPIL-TEACHER RASIO PRIMARY 36.0 37.0 32.0 42.2 41.0 34.1 SECONDARY 15.0 12.0 i6.o 22.9 21.7 23.4 ADULT LITERACY .ATE (PERCENT) 13.9/f .- 25.0 20.8 31.2 54.0 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 0.8 1.0 1.3 4.0 2.8 9.3 RADIO RECEIVERS PER THOUSAND POPULATION . 18.0 27.0 44.3 27.2 76.9 TV RECEIVERS PER THOUSAND POPULATION .. .. .. 2.9 2.4 13.5 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION .. 0.1 0.3 5.6 5.3 18.3 C INEMA ANNUAL ATTENDANCE PER CAP ITA .. . .. 0.4 1.1 2.5 LABOR FORCE TOTAL LABOR FORCE (THOUSANDS) 1500.0 1700.0 1900.0 FEMALE (PERCENT) 45.1 44.8 44.4 31.9 24.8 29.2 AGRICULTURE (PERCENT) 90.0 87.2 85.0 77.6 69.4 62.7 INDUSTRY (PERCENT) 3.0 3.9 5.0 7.9 10.0 11.9 PARTICIPATION RATE (PERCENT) TOTAL 52.7 51.2 49.6 40.8 36.9 37.1 MALE 58.5 57.2 55.8 53.9 52.4 48.8 FEMALE 47.0 45.3 43.4 25.6 18.0 20.4 ECONOMIC DEPENDENCY RATIO 0.9 1.0 0.9 1.2 1.2 1.4 INCOME DISTRIBUTION PERCENT OF PRIVATE INCOME RECEIVED BY H'GHEST 5 PERCENT OF HOUSEHOLDS .. .. .. .. .. 15.2 HIGHEST 20 PERCENT OF HOUSEHOLDS .. .. .. .. .. 48.2 LOWEST 20 PERCENT OF HOCSEHOLDS .. .. .. .. .. 6.3 LOWEST 40 PERCENT OF HOUSEHOLDS .. .. .. .. .. 16.3 POV`ERY TARGET GROUPS ESTILMATED ABSOLUTE POVERTY LNCOME L