China - Agricultural Education and Research Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. 3819c-CHA STAFF APPRAISAL REPORT CHINA AGRICULTURAL EDUCATION AND RESEARCH PROJECT October 14, 1982 Projects Department East Asia & Pacific Regional Office 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.  CURRENCY EQUIVALENTS US$1.00 = Yuan (Y) 1.75 ACADEMIC YEAR September 1 - August 31 FISCAL YEAR January 1 - December 31 ABBREVIATIONS CAAS - Chinese Academy of Agricultural Sciences CAS - Chinese Academy of Sciences CAST - Chinese Association for Science and Technology CNTIC - China National Technical Import Corporation MOA - Ministry of Agriculture MOE - Ministry of Education NRRI - National Rice Research Institute PC - Project Commission P0 - Project Office SAC - State Agricultural Commission SSTC - State Science and Technology Commission  -i- FOR OFFICIAL USE ONLY CHINA AGRICULTURAL EDUCATION AND RESEARCH PROJECT Table of Contents Page No. BASIC DATA 1. AGRICULTURAL MANPOWER AND DEVELOPMENT . . . . . . . . . . . . 1 Overview .... . . . . . . . . . .I.. . . . . . . . . . . I Development Strategy in Agriculture . . . . . . . . . . . . . 1 Agricultural Manpower ... . . . . ... . . . . . . . . .. 2 2. AGRICULTURAL EDUCATION AND RESEARCH . . . . . . . . . . . . . 6 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Agricultural Education and Training . . . . . . . . . . . . . 8 Agricultural Research . . . . . . . . . . . . . . . . . . . . 11 Issues in Education and Research in the Agricultural Sciences 13 Government Plans and Strategy ... . . . . . . . . . . . . . 17 3. THE PROJECT . . . . . . . . . . . . . . . . . . . . . . . . . 19 Objectives and Scope ... . . . . ..... . . . . . . . . 19 Improvement of Quality ... . . . . ..... . . . . . . . 20 Expansion of Enrollment and Research Capacity . . . . . . . . 25 Improved Resource Organization and Management . . . . . . . . 27 National Rice Research Institute . . . . . . . . . . . . . . 27 Studies and Preparation ot Future Projects . . . . . . . . . 29 Project Evaluation . . . . . . . . . . . . . . . . . . . . . 30 4. MANAGEMENT AND IMPLEMENTATION . . . . . . . . . . . . . . . 30 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Administrative Responsibilities, Organization and Staffing 31 Selection Procedures and Criteria for Technical Assistance 33 Procurement Procedures .... . . . ..... . . . . . . . 34 Implementation Schedule .... . . . ...... . . . . . . 35 This report is based on the findings of an appraisal mission that visited China in October 1981. Mission members were: Messrs. F. Farner (educator, mission leader), P. Hsueh (computer specialist), D. Jamison (economist), D. Davies (economist), V. Billeh (educator), R. Cushing (agricultural reseach specialist, consultant), T. Ramos-Saco (agricultural educator, consultant), D. Hartzog (agricultural educator, consultant) and Ms. P. Harrell (educational planner, consultant). 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.  Page No. 5. COST AND FINANCING ................... 36 Overview.. ................. 36 Project Cost.. ................. 36 Project Financing . . . . . . . . . . . . . . . . . . . . . . 40 6. BENEFITS AND RISKS ................... 43 Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Risks ................... 44 7. AGREEMENTS REACHED AND RECOMMENDATIONS . . . . . . . . . . . 44 TABLES IN TEXT 1.1 Agricultural Labor Force Sensitivity Analysis . . . . . . . 2 1.2 Professional Agricultural Manpower in China, 1979 and Projections for 1990 . . . . . . . . . . . . . . . . . . . 4 2.1 Growth of Education, 1949-79 ... . . . . . . . . . . . . . 7 2.2 Educational Level of Teaching Staff by Age at 11 Agricultural Colleges . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.1 Project Institutions . . . . . . . . . . . . . . . . . . . . 21 3.2 Phasing of Staff Development Fellowships . . . . . . . . . . 22 3.3 Projected Increases in Experiments Per Course with Project Equipment in Use . . . . . . . . . . . . . . . . . . . . . . 24 3.4 Number of Undergraduate and Postgraduate Students at Colleges/ Institutes, Present (1980/81) and Projected (1985/86). . . . 26 5.1 Cost by Project Objective . . . . . . . . . . . . . . . . . 37 5.2 Cost by Category of Expenditure . . . . . . . . . . . . . . 38 5.3 Unit Prices for Construction . . . . . . . . . . . . . . . . 39 5.4 Annual Cost Escalation ... . . . . . . . . . . . . . . . 40 5.5 Financial Plan ... . . . . . . . . . . . . . . . . . . . 41 5.6 Schedule of Disbursements . . . . . . . . . . . . . . . . . 42  - iti- ANNEXES 1. Comparative Education Indicators 2. Enrollment and Staffing at Project Institutions a. List of Departments and Specializations by Project College (1981-82) b. Undergraduate Enrollment at Project Colleges by Grade, Area of Specialization and Sex (1980/91) c. Staff at Project Colleges by Rank, Age, Sex, Years of Postsecondary Education and Academic Experience d. Research Staff at Project Research Institutes by Rank, Age, Sex, Years of Postsecondary Education and Research Experience 3. Summary of Estimated Project Costs 4. Implementation Schedule 5. Project Indicators and Targets 6. Selected Documents and Data in the Project File CHARTS 1. Administration of Education in China 2. Structure of the Education System 3. Education Pyramid 4. Structure for Project Implementation MAP Location of Project Institutions  CHINA AGRICULTURAL EDUCATION AND RESEARCH PROJECT Basic Data (1979) General Total Population: 970.9 million Adult Literacy Rate: 66% Primary Secondary Higher Enrollment (grades 1-5) (grades 6-10/11) (grades 12-15) Total Formal Education (mln) 146.6 66.5 1.0 214.1 - as % of age group 93% 47% 1.2% Nonformal Education (mln) 21.2 4.7 0.9 26.8 Undergraduates Post- Teaching staff No. of (000) graduates excluding Higher Education insts. Eng. Sci. All (000) assistants (000) Key institutions 97 156.2 46.6 267.8 10.9 53.3 Other 536 189.2 23.5 752.1 4.6 104.5 Total 633 345.4 70.1 1,019.9 15.5 157.8 Research in Science No. of researchers: 420,000 Researchers per 1,000 people: 0.4 Research expenditure: US$3.8 billion Annual exp. per researcher: US$9,000 Expenditure on Education Total expenditure on education as % of total national income 3.1% Government expenditure on education as % of government expenditures 6.6% Government capital expenditure on education as % of government capital expenditures 1.5% Government recurrent expenditure on education as % of government recurrent expenditures 9.3% Percentage Allocation of Public Recurrent Expenditure on Education Primary - 32% Secondary - 38% Higher - 30%  1. AGRICULTURAL MANPOWER AND DEVELOPMENT Overview 1.01 China's continued ability to feed a growing population and to ensure an adequate supply of agricultural raw materials for an expanding industrial sector depends on increasing agricultural output. Expansion of production in the years ahead, however, faces serious obstacles -- the scarcity of arable land, major problems of soil and water conservation, and the decreasing mar- gin of return that can be expected from further inputs of labor. In addition, China's very successes in the past in achieving high yields per hectare through increased use of chemical fertilizers, expansion of water control, and development of high-yielding varieties make the task of raising yields still higher more difficult than in countries where farming is less developed. What is required are new breakthroughs in the agricultural sciences and technol- ogy--development of improved crop varieties, more efficient farm management, better disease and pest control--and their effective application at the farm production level. Yet China's training and research system, the instrument to effect such improvements, is at present inadequate to the task. As a result, shortages of trained agricultural manpower appear at both the skilled and professional levels and China has fallen further behind the advanced countries in her research capacity in the agricultural sciences. The project will assist in improving the quantity and quality of agricultural education and research, and strengthen planning in this field. Development Strategy in Agriculture 1.02 To face the challenge of the coming decades--keeping agricultural output ahead of population growth--China has given high priority to agricul- tural modernization. The long-term objective is to reach advanced world levels in yields of major agricultural products by the turn of the century. Current strategies to achieve this objective include: (a) renewed emphasis on agricultural research, both basic and applied, and a concomitant receptiveness to international exchange as a means to bring in advanced science and technology; (b) strengthening educational institutions so as to expand and improve the quality of educated agricultural manpower; (c) decentralization of decision making whereby production team, brigade and commune level cadres are given added responsibilities for farm management; (d) greater specialization in agricultural production to match cropping systems more closely to soil and climatic conditions; and (e) increased state investments in the agricultural sector, combined with judicious use of foreign assistance, both technical and financial.  -2 Agricultural Manpower 1.03 Agricu]Ltural Workers. China uses more labor per hectare in agri- culture than any other country in the world and this is reflected in the very low productivity of agricultural labor. The average Chinese agricultural worker contributes to GDP only one-sixth of what his industrial counterpart does. This relative contribution is substantially lower than that recorded in other developing countries where agricultural labor productivity averages between one-fourlh and one-fifth of industrial labor productivity. Such large productivity difi-erences between sectors are indicators that the current pat- tern of resource use is inefficient. If a modicum of efficiency is to be maintained in the country's allocation of labor among sectors, labor must begin to transfer out of agriculture. Yet, China will face difficulties in absorbing much displaced agricultural labor in other sectors. Without a transfer of labor from agriculture, the agricultural labor force will grow from 299 million in 1979 to about 385 million in the year 2000 due to the natural increase in the population. Moreover, if recent sectoral growth rates continue for the next two decades, 3% for agriculture and 7% for other sec- tors, the relative productivity of agricultural labor will decline precipi- tously. The folLowing sensitivity analysis projects the size of the agricul- tural labor force in relation to the probable range of growth rates for agriculture and the rest of the Chinese economy assuming that China's planners are successful in absorbing enough agricultural labor into other sectors to prevent a further decline in its relative productivity (Table 1.1). The Table 1.1: SENSITIVITY ANALYSIS SHOWING THE IMPLICATIONS FOR THE SIZE OF THE AGRICULTURAL LABOR FORCE IN THE YEAR 2000 OF A RANGE OF FEASIBLE GROW7H RATES IN THE AGRICULTURAL AND NONAGRICULTURAL SECTORS Rate of growlth in Rate of Growth in Nonagricultural GDP (percent) Agricultural GDP 5.0 6.0 7.0 (percent) Agricultural Labor Force (millions) ----- 3.0 340.2 316.0 291.0 3.5 352.0 328.5 304.0 4.0 363.3 340.6 316.7 Assumptions: 1. No deterioration in the productivity of agricultural relative to nonagricultural labor. 2. Current rates of population growth and labor force partici- pation will cDntinue. Source: The Basic Economic Report of China, Statistical Annex, provides basic productivity data and historical GDP growth rates for broad sectors.  - 3 - results illustrate that the severity of the problem of allocating labor among sectors diminishes the more successful the Government is at promoting agricultural development. However, the likely range of results confirms that the problem cannot be avoided and will figure prominently in all considerations of rural policy. 1.04 Middle and High Level Agricultural Manpower. Because of a lack of data and substantial changes which are occurring in the organization of agriculture and, consequently, occupational profiles, the Government does not have a clear picture of either the demand for or supply of trained agricul- tural manpower. The most reliable data available are from a survey of higher scientific and technical manpower which the Government conducted in 1979 after determining that a lack of high level manpower constituted the most serious constraint on the further development of the country's economy. The survey comprised only an enumeration of the number of graduates from institutions of higher education and did not include information on lower level technical and vocational training. The estimate of the current stock of trained high-level agricultural manpower is obtainable only by piecing together these rather fragile statistics. It is known, for example, that tertiary institutions -- colleges and universities -- graduated 243,000 agricultural professionals over the period 1949-1979 and that, of the currently employed professional staff, somewhat over 90% have been trained since 1949. These data are sufficient to estimate the range of probable numbers of agricultural professionals: from about 50,000 in 1948 growing to between 172,000 and 201,000 by 1979 (Table 1.2). The number of farm households per professional agricultural worker appears high by international standards and approximates ratios found in the world's poorest countries./l Yet, in fact, the applica- tion of technical know-how to agriculture is greater than these figures would suggest as a result of two factors: (a) the unusual efficiency of China's centrally-controlled and commune-based system in making use of limited technical manpower; and (b) the fact that the average level of education of nonprofessionals is higher in China than in other poor countries. /1 The LDC mean is 400-500 families per professional.  - 4 - Table 1.2: PROFESSIONAL AGRICULTURAL MANPOWER IN CHINA, 1979 AND PROJECTIONS FOR 1990 Existing stock of Farm Households/ professional manpower households professional (thousands) (millions) manpower 1979 200-170 176 815-1,020 1990 375-345 150-156 400-450 Note: Professional manpower stocks in 1979 and 1990 assume alternative attrition rates of 2 and 3% respectively. The range in the number of farm households is estimated under alternative assumptions of a 1.8 and 3.8% growth in agricultural GDP and an 8% in non-agricultural GDP as shown in Table 1.1. In 1979, there were 1.7 agricultural workers per farm household. The 1990 projection shows the number of workers per farm household ranging between 1.6 and 1.9. Source: Survey of Scientific and Technical Manpower, People's Republic of China, 1979. Figures on farm households are from the Statistical Annex to the World Bank's Basic Economic Report on China.  -5 - Given a lack of knowledge on agricultural organization and associated occupation profiles in China, it is not possible to assess with any degree of reliability the adequacy of current staffing of agricultural professionals in the fields of administration and teaching. We do know, however, that agricultural and teacher training colleges are not producing agricultural teacher trainers resulting in a shortage of teachers in agricultural secondary schools and polytechnics. The Government has not yet come to grips with this problem and it should feature prominently in the future dialogue between the Government and the Bank. Projections of professional manpower for 1990 (Table 1.2) show that China could approximate the LDC ratio of farm households to professionals (400 to 450) by 1990, a substantial improvement over the current situation. 1.05 Postgraduate Degree Holders in Agriculture. The projected supply of higher level manpower with postgraduate training clearly cannot meet national needs for advanced training and research during the next two decades. In 1979, there were not more than 3,000 with postgraduate training in agricul- ture. Of these, less than 10% held the doctoral degree or equivalent. Nearly all of these professionals are currently employed in the agricultural training and research systems. Given the size of the agricultural training system, a minimum of 10,000 professionals with postgraduate degrees, preferably docto- rates, are required for the training system alone. The needs of agricultural research institutes and administration require an additional 7,000 to 10,000 high level professionals, bringing the total current requirement to between 17,000 and 20,000. Yet with the current postgraduate enrollment in agri- culture at 850, the country will have a maximum of only 6,000 additional post- graduate professionals by 1990. Even with the most optimistic estimates of the number of postgraduate trainees in agriculture abroad, the total supply could reach only 7,000 in 1990. Clearly, China will be unable to undertake the enhanced agricultural research and training efforts necessary to implement its agricultural development strategy without tripling or quadrupling the number of graduates from postgraduate programs. This, however, assumes a perfect match between the profiles of requirements and actual stock whereas in reality the country is handicapped in planning for postgraduate agricultural training precisely because it has little knowledge of the current distribution of postgraduates among specializations and the longer term distribution of specialists required by its research program which is itself undefined. The real dimension of the shortage, in other words, may be even larger than the aggregate balance would suggest due to large imbalances by specialization and spatial distribution. A study of agricultural manpower and education should be emphasized in the Government's plan for the 1980s. 1.06 Agricultural Research. While the organizational infrastructure of the Chinese agricultural research establishment is in place, it is not func- tioning well enough. For reasons of social equity, the Government during the  - 6 - period 1966-1976, assigned higher priority to basic education, neglecting what were then regarded as elitist higher level educational and research institu- tions. As a consequence, research institutions were underfunded, staffs were allowed to deteriorate qualitatively because of a lack of high level manpower, and equipment became obsolete. The Government is now attempting to reverse this situation and has embarked on a program of staff upgrading through overseas fellowships, reestablishing links with the international agricultural research community and improving facilities and equipment. However, much remains to be done and planning for improvement is only in its initial stages. To provide a basis for rational planning, the Government has decided to launch a comprehensive study of its agricultural research needs and capabilities. The future development of the system will depend upon the findings of this study and the research priorities which are established. 2. AGRICULTURAL EDUCATION AND RESEARCH Overview 2.0i Determining priorities in education given a vast school age popula- tion, limited financial resources, and a commitment to rapid modernization on the socialist model has proven a difficult task for China's policymakers since 1949. Dramatic shifts in educational policy over the thirty year period reflect opposing views on the relative weight to give to improvement of educational standards versus mass education, ideological qualifications versus professional expertise, and to concepts of locally-financed and administered or state-sponsored schools. During most of the fifties, the early sixties and from 1976 to the present, educational policy stressed--with variations to suit the changing times--quality, professionalism, and centralization. The Great Leap Forward (1958-9) and the Cultural Revolution (1966-76) saw the pendulum swing toward mass education, ideological fitness and decentralization. In the case of the decade-long Cultural Revolution, innovation gave way to extremism, resulting in school closures, destruction of books and equipment, abandonment of usual academic standards, a shutdown of the Ministry of Educaticn, and China's general isolation from the international academic and research communities. 2.02 These setbacks nctwithstanding, China's record in educational development since 1949 has been impressive, especially on the quantitative side. Starting from enrollment ratios of 25% at the primary level and 2% at the secondary level in 1949, China had achieved ratios of 93% and 46% respectively by 1979. Although disruptive of education in some respects, the policies of the Cultural Revolution served to promote rather than retard the expansion of enrolled students, especially those of rural origin. Secondary school enrollments showed a remarkable jump of 45 million from 1965 to 1979 (Table 2.1). In nonformal education, this period saw a marked increase in spare-time university programs, night school and correspondence courses, and worker-peasant training opportunities sponsored by factories and lower level agricultural production units.  - 7 - Table 2.1: GROWTH OF EDUCATION, 1949-79 1949 1958 1965 1979 Primary Schools ( 000) 347 777 682 924 Enrollment (millions) 24.4 86.4 116.2 146.6 Enrollment ratio (%) 25 67 70 93 Secondary Schools ('000) 5.2 28.9 n.a. 147.3 Enrollment (millions) 1.3 8.5 14.4 60.3 Enrollment ratio (%) 2 17 16 46 Higher Universities/colleges 205. 791 434 633 Enrollment (millions) 0.12 0.66 0.67 1.02 Enrollment ratio (%) 0.3 1.6 1.4 1.2 Source: IBRD, Basic Economic Report on China Annex G (Education). 2.03 While primary and secondary school enrollment ratios for China have risen markedly above corresponding average ratios for 92 developing countries, at the tertiary level China has fallen far short with only 1.2% of the population in age group enrolled./l Moreover, not only in terms of quantity but also in terms of quality higher education in China at present is unable to meet the need for highly trained professionals particularly in the sciences. In large part, these quantity-quality constraints are traceable to the Cultural Revolution. Student intake into colleges and universities ceased altogether from 1966 to 1971 and when these institutions reopened in 1972, applicants for admission were selected on the basis of political-social criteria rather than academic achievement. While this measure had the salutory effect of increasing rural representation in the student body, it also resulted in declining academic standards. Apart from the quality of the student, the quality of institutional resources deteriorated during the Cultural Revolution. Outright destruction of books and equipment was a principal factor. Swelling of faculty size with inappropriately trained personnel and the severing of professional contacts with institutions outside China were others. 2.04 Since 1977, the Government has moved in the direction of reestab- lishing formal indicators of academic achievement such as the college entrance examination and the award of undergraduate and postgraduate degrees. /1 For elaboration on this point, see China University Development Project - Staff Appraisal Report (June 1, 1981), paras. 2.01 and 2.02.  - 8 - Certain colleges and universities have been designated "key" institutions,/l entitled to special funding and intended to play a leadership role within the educational system. At present the Government is seeking to build on this beginning, to improve both quality and enrollment ratios at the tertiary level as a first step in the drive for modernization. Agricultural Education and Training 2.05 Structure and Administration. The Ministry of Education (MOE) is the ultimate controlling authority for the entire educational system, though the functions of management, operation, and financing of schools are shared with other ministries and with the provincial, prefectural and county author- ities. Since the present is a time of transition in China's educational policy, it is difficult to define in precise terms the role of each agency, the length and content of curricula, and, even, in some cases, the classifica- tion of schools within the system. In bare outline, agricultural education and training are offered in both nonformal and formal programs. The former consist of: (a) short training courses for cadres /2 conducted at the agricultural colleges; and (b) spare-time /3 education organized at the commune and brigade levels. Formal programs are offered in tertiary institutions -- colleges and universities -- and at the secondary level in technical agricultural schools and senior secondary/middle /4 schools with agricultural programs. 2.06 Nonformial. Nonformal training opportunities in agriculture are many and varied, Agricultural colleges offer short courses for agricultural cadres drawn from prefec:ures, counties and communes. These programs have consider- able impact. For example, at the South China Tropical Crops College which offers 3 to 6 mon':h courses with 30-40 enrolled in each, some 20,000 cadres have been trained since the institution was founded in 1958. A second form of nonformal training is provided by prefectural and county research institutes which train extension workers from communes and brigades. The most exten- sively developed of the nonformal training programs in agriculture are the locally-financed and run adult education classes supervised by the MOE's Bureau of Worker-Peasant Education. The principal rural training unit is the spare-time technical secondary school operated by the commune. This offers a two-year senior secondary equivalency program in the agricultural sciences with the emphasis on practical production problems. Some agricultural courses /1 China designaled some primary, middle and higher educational institutions as key based on the concept that an efficient way to improve the quality of education is to allozate relatively more resources to selected institutions. This concept started in the early 1960s. /2 Cadre is used in the Chinese context to mean a trained technician/manager who functions to supervise and train others in turn. /3 The Chinese term yeh yu, "after working hours" or "spare-time", refers to part-time aduLt education programs for factory workers and peasants, usually conducted after regular working hours. /4 The terms are used interchangeably as the translation for the Chinese "zhong xue x:iao".  also are taught in the brigade-run spare-time junior secondary schools which likewise are school equivalency programs for adults. Precise data are not available on how many of those engaged in rural occupations are receiving or have received some form of spare-time (adult) education in agriculture. However, to give the order of magnitude here, the 1980 MOE figure for combined worker-peasant (i.e., both urban and rural) enrollments in spare-time technical secondary schools is 3 million with another 3.5 million in spare- time programs in middle schools, 8 million in general secondary schools and 16 million at the elementary level. 2.07 Formal. At the secondary level, most schools offering agricultural programs are administered jointly by either county or prefectural agriculture and education bureaus. Some communes also operate agricultural secondary schools with the assistance of county education bureaus. The MOE is formulat- ing a master plan to convert one third of all general secondary schools in rural areas into agricultural technical schools, a measure which may alter lines of administrative responsibility. At the tertiary level, the key colleges are centrally administered by the MOE and the specialized ministry concerned (e.g., the MOA/1, Ministry of Forestry, Ministry of State Farms and Land Reclamation) in a division of responsibilities where the MOE handles overall policy, curricula, and entrance examinations and the other ministry takes charge of finances and day-to-day management of the school. The provincial institutions are under the dual leadership of the agriculture and education bureaus of the provincial governments with guidance from the MOA's Bureau of Agricultural Education. The State Agricultural Commission (SAC) has certain oversight functions vis-a-vis the entire tertiary system in its capacity of coordinating agency for ministries and agencies concerned with agriculture. 2.08 Secondary Agricultural Education. According to the MOE's Planning Division, in 1981 302 general secondary schools were converted into agricul- tural technical schools at the senior secondary level with an estimated intake of 90-100,000 students. This is in addition to some 3,000 schools listed as "agricultural middle schools" (nong yeh zhong xue xiao) and enrolling around 320,000. The latter category includes both junior and senior schools offering some agricultural courses within a general curriculum. The combined enroll- ment from these two sources, the only two types of secondary institutions specifically designated "agricultural", represents less than 1% of total enrollees at the secondary level. The number of secondary agricultural grad- uates on the formal side is supplemented by the output from nonformal pro- grams, most importantly the commune operated spare-time technical secondary schools referred to above (para. 2.06). For the future, the MOE's plan to convert one-third of all general secondary schools in rural areas into agri- cultural schools will have the effect of bringing around 2.3 million youths into formal agricultural programs. /1 The MOA has recently been expanded to include animal husbandry and fishery. The new ministry is called the Ministry of Agriculture, Animal Husbandry and Fishery (MAAF).  - 10 - 2.09 Tertiary (Postsecondary) Agricultural Institutions. There are 73 agricultural institutions at the tertiary level with a total student enrollment in 1981 of 80,600 and teaching staff numbering 21,000. This represents around 8% of all enrollments at higher level institutions in China and 9% of staff. Nine of the 73 institutions have been given "key" status as compared with 54 in engineering and 6 in medicine. Forty-five of the 73 institutions, including 7 "key" c:olleges, are the responsibility of the MOA; the remaining 28 have as principal sponsoring agency the Ministry of State Farms and Land Reclamation (5), Ministry of Forestry (12) Ministry of Water Conservancy (3), General Bureau of Aquatic Products (5), and the Central Meteorological Bureau (3). Nine of the 73, accounting for some 6,000 students, are two-year postsecondary institutions. The rest are colleges now offering a four-year undergraduate course, restored from the three-year cycle in force during the Cultural Revolution. At the end of the 1980-81 academic year, the B.S. degree was once again awarded for completion of the four-year program. 2.10 Recent changes in admissions policy and curriculum reflect new directions in education in the period following the Cultural Revolution. Since 1977, students have gained admission to higher educational institutions on the basis of their scores on a uniform national entrance examination. The MOE prepares the examination, allots quotas of university places by province, and works with the institutions in determining the number of new entrants each may accommodate. Both the institutions and appropriate local authorities review applications and make final decisions on admissions. Students indicate preferences for three colleges/universities in three categories, national, provincial, and prefectural. In 1979, 4.7 million students sat for 272,000 places at all colleges and universities. For most students, agriculture is not the preferred field of study, a factor which is reflected in the lower entrance examination scores accepted by the agricultural colleges. The composite mean score for 11 leading agricultural colleges in 1980-81 was 369 compared to 417 for China's first-line university, Fudan in Shanghai. 2.11 On the question of the socio-economic background of Chinese students in tertiary agricultural institutions, mission estimates suggest that between 50-60% come from, farm families. This figure tallies with data available from Gansu Province which show 53% of students at the tertiary level of peasant origin. Key colleges recruit on a region-wide basis though the preponderant nunber of students comes from the province where the college is located. Certain colleges allow minorities special treatment in recruitment by alloting them extra points on the entrance examination. 2.12 The agricultural cclleges offer a large number of separate, highly specialized undergraduate programs. Since the interdisciplinary approach has received little emphasis, graduates tend to have knowledge of their own, often narrow, technical specialties, but limited understanding of the problems of agriculture as a total system. However, the gradual expansion of postgraduate degree programs will tend to reduce the need to provide depth through specialization at the undergraduate level.  - 11 - 2.13 Postgraduate Education. A new focus on developing postgraduate education has accompanied current efforts to increase the pool of highly- trained scientists. Until now, structured programs at the postgraduate level have not been part of the higher education curriculum. MOE records for the period 1949-66 show a total of only 16,000 students completing programs of formal study beyond the four year postsecondary level. Offerings at this level were interrupted entirely from 1966-76. When postgraduate schools reopened in 1978 they could accommodate only around 10,000 students; another 5,000 were attached to research institutions such as the CAAS. During the academic year 1980-81, 855 postgraduate students representing 1% of total tertiary enrollments were enrolled in the 73 agricultural colleges. In the summer of 1981, the MOE began a nationwide review of college/university programs for the purpose of authorizing award of advanced degrees. Post- graduate level and faculty research is taking on increased significance as higher education institutions accept research projects assigned by the Government. Agricultural Research 2.14 Overview. In research as in education, the past thirty years have witnessed often profound shifts in policy. At issue has been the relative emphasis to give to professionalism versus ideological qualifications, to "hard research" versus research related to practical production problems, and to the build-up of a scientific elite versus extension of the "mass scientific network". In agricultural research, the net result over the period has been impressive advances in some areas - in developing high-yielding varieties of rice and rust-resistant wheat, for example. At the same time, the quality and volume of research has not been sustained, in part due to prolonged periods of isolation from international research and development activities. 2.15 The present research agenda identifies scientific research and the popularization of results as the key to accelerating growth in an already intensively-worked agricultural sector. Along with continued research on major grain crops, planners are calling for experimental work in farm management, farm mechanization, chemical fertilizers, and cropping patterns. Much emphasis has been placed as well on tackling problems of resource use - water conservation, soil erosion and deforestation. Implemen- tation of this research and development program requires an effective research structure and adequate skilled and professional manpower. 2.16 Structure. Since 1977, long-term research planning has been rein- troduced, professional societies reestablished under the Chinese Association for Science and Technology (CAST) and the system of professional rather than political management of research organizations brought back into use. The State Science and Technology Commission (SSTC) is again at the forefront of planning and administration of China's scientific work with CAST and the Chinese Academy of Sciences (CAS) also playing important policy making roles. Each of these agencies at the apex of the research structure supervises the work of affiliates at the provincial level. The CAS, for example, supervises the work of over 100 research institutes handling both basic and applied research projects.  - 12 - 2.17 Another major part of the research structure is ministry-supervised research. In agricultural research, the most prominent of the ministerial agencies is the Chinese Academy of Agricultural Sciences (CAAS) under the MOA. The CAAS is responsible for 32 research institutes, 14 in Beijing and 18 in other regions. Its total research staff numbers about 7,500. In similar fashion, the Ministry of Forestry's Academy of Forestry Sciences and the Research Academy of Aquatic Sciences under the General Bureau of Aquatic Products function as supervisory bodies for specialized research in these fields. Other ministries/agencies coordinate specialized research directly. These include (a) the Ministry of Water Conservancy which oversees 33 research organizations with a staff of 4,800 and (b) the Central Meteorological Bureau which has responsibility for the National Meteorological Research Institute. Funding for ministry-affiliated institutes is funneled through specialized bureaus within the ministry - the MDA s Bureau of Animal Husbandry formulates the budget for the CAAS' Institute of Animal Husbandry, for example. Additionally, funds for special projects judged to be of national importance are allocated direztly by the STC. 2.18 In the last few years, a number of national research institutes have established graduate programs. The CAAS, for example, currently has 80 students enrolled as master's degree candidates in its affiliated institutes. Plans are to admit 50 students a year, including both new university graduates and past graduates assigned to rural areas during the Cultural Revolution. All are required to take a national postgraduate admissions examination. Given current limitations on college/university resources, making use of the research institutes for postgraduate training is seen as a means to he:Lp rapidly increase the stock of young, well-trained scientific researchers. 2.19 Since 1977, agricultural colleges and universities have stepped up both basic and appLied research activities. How such projects are assigned and financed is noit entirely clear, but the CAS, the MOE's Bureau of Science and Technology as well as provincial level bureaus appear to play important roles in the process. The key comprehensive universities /1 are the most likely source of graduates and postgraduates capable of conducting research in basic sciences related to agriculture. 2.20 Providing the base of support for the research structure is the mass scientific nestwork"; specifically, the various research organizations run by the provinces, prefectures, and counties. At the provincial level, academies of agricultural science take the lead in conducting research. They also are responsibLe for managing a complex of associated research institutes. For example, in Sichuan, the provincial academy of agricultural science coordinates the work of 11 research institutes, mostly organized on a crop- specific basis. Sichuan also supports around 20 prefectural level institutes and over 170 county-level establishments which have diverse programs of research and demonstration. Nationwide, there are some 1,340 agricultural research institutes at the prefectural level and above, with a total research staff of 46,000. (,These figures do not include research units at colleges and universities). /1 Prime examples are those assisted in the first University Development Project.  - 13 - 2.21 Linkages among various parts of the research structure are based partly on personal contacts and precedent. In some provinces, ties between the provincial bureaus of agriculture, the provincial research academies and colleges and universities are weak or nonexistent. Where close coopera- tion exists, it is often fortuitous or stems from particular personal ties. 2.22 Extension Network. In general, research is the major function of the national, provincial and prefectural organizations while the counties, communes, brigades and production teams are primarily responsible for extension services, demonstration and training. However, in keeping with some of the more innovative aspects of the Cultural Revolution, a major effort has been made to integrate more fully the research, extension and training systems, to ensure not only ettective dissemination of research results among tarmers, but also a constant flow ot information on research needs from the production units to the higher level researchers. In some regions brigades and production teams have taken on the task of conducting applied research and demonstration activities. For their part, provincial and prefectural institutes have introduced short-term training courses for brigade and team research and extension personnel, most of whom are locally-trained "peasant technicians." China's extension network has functioned as an extremely effective means of channeling new technology and research results to farmers while maximizing the value of a limited number ot well-trained agricultural technicians. Nevertheless, the shortage of accountants, economists, and properly trained managers remains a matter of serious concern. Issues in Education and Research in the Agricultural Sciences 2.23 Two major constraints impede efforts to apply science and technology to improve agricultural development: the shortage of well-trained manpower in the agricultural sciences and the inadequacy of the research output in these fields. There are three main weaknesses in the ability of the present systems of higher education and research in agriculture to overcome these constraints: (a) poor quality ot teaching and research work as a result of insufficient and obsolete equipment, deficiencies in the academic qualifications of teaching/research staff, and narrowly conceived curricula; (b) low output in terms of number of graduates and volume of research, attributable in large part to inadequate and substandard space and lack ot postgraduate programs; and (c) inefficient organization and management of resources at both national and institutional levels arising from weaknesses in planning in the manpower and research areas and from a lack of experience in modern management methods.  - 14 - Poor Quality of Output 2.24 Equipment, Colleges and research institutes are hamnpered in their efforts to improve teaching and research quality by an insufficiency of certain types of basic equipment and a shortage of sophisticated equipment for more advanced research. The need for basic teaching equipment is particularly acute. The SAC estimates that the present quantity of equipment at the agricultural colleges allows for conducting only 50-60% of the experiments required by the MOE per course. Review of the equipment resources of 11 agricultural colleges shows particular inadequacies in the areas of quality optical instruments, chemical testing instruments, and small-scale computers. In addition to equipment and instruments per se, institutions often lack such support items as piped water, gas, and reliable electricity. At the post- graduate and research level, equipment is not only in short supply but is often obsolete, a result of Clhina's isolation from the international research community in the last decade. Up-to-date equipment with a high-degree of dependability and precision is essential if China is to conduct top-level research in the agricultural Sciences. 2.25 Staff Qualifications. The teaching and research staff of the agricultural colleges and institutes do not hold post-graduate degrees and lack exposure to the international R&D dimension, factors which in turn affect the quality of both the graduates and research work produced by these insti- tutions. Data supplied by the SAC on 11 agricultural colleges /1 indicate that over 80% of thei teaching staff have had less than 5 years of post- secondary education. Half of these are in the below 45 age group, the very people who soon will, move into senior positions. Moreover, as the accompany- ing table illustrates, within this same age group, those with five or Table 2.2: EDUCATIONAL LEVEL OF TEACHING STAFF BY AGE AT i1 AGRICULTURAL COLLEGES Years of Postsecondary Education % of Age less than 4 4 - >5 5 - 6 Over 6 Total total Under 30 453 27 - - 480 9 30 - 45 284 1,451 254 53 2,042 40 46 - 60 121 1,753 263 126 2,263 44 Over 60 11 199 52 115 377 7 Total 869 3,430 569 294 5,162 100 % of Total 17 66 11 6 100 Source: SAC data on staff of 11 agricultural colleges. /1 SAC has provided data on 11 of 12 leading agricultural colleges.  - 15 - more years of post-secondary education - the prime candidates for fellowships for overseas study - are relatively underrepresented. Data on representative research institutes confirm the above picture: about 80% of total research staff have had no more than 5 years of postsecondary training, half of these in the below 45 age group. 2.26 The profile of teachers and researchers in the top echelon suggest that age and experience far outweigh academic credentials in promotion to higher ranks. Out of the total 190 professors at the 11 agricultural colleges (4% of all teaching staff), 98% have had more than 20 years of experience, 86% are over 60 years of age, while only 42% can claim more than 6 years of formal post-secondary education. Likewise, the typical senior researcher is rich in experience (100% with 20+ years), elderly (78% over 60), but short on formal qualifications (28% with 6+ years of postsecondary education). 2.27 A further factor affecting teaching quality is that about half of all faculty members are graduates of the college where they are now teaching. Figures are higher for lecturers (51%), instructors (49%), and assistants (67%) than for associate professors (37%) and professors (22%). At a time of effort to revitalize institutions, the Government has recognized the importance of reducing "inbreeding" through an increase in inter-university exchanges. 2.28 Curriculum. The undergraduate curriculum at the agricultural colleges suffers from two major shortcomings (a) it is divided into too many separate specializations much to the neglect of broad agricultural problems, and (b) it lacks adequate coverage of the social sciences, When applying for college admission, a candidate must indicate not only his choice of broad professional field (e.g. agriculture, animal husbandry, forestry) but also the specialization within that field (e.g., horticulture, animal diseases, forestry engineering). Specializations are narrowly defined and "closed" in the sense that there is little scope for outside electives. The tendency towards compartmentalization means that a student learns a narrow technical specialty without ever relating it to other fields within the agricultural sciences and to farming as a total system. Yet an integrated and flexible approach to the study of agriculture is becoming increasingly important as China implements new agricultural policies which, as time goes on, may give rise to changing manpower profiles. Current new directions in agriculture also make it necessary to introduce into the curriculum courses in the social sciences - farm management, rural sociology, and education/extension. Around half of the 73 agricultural colleges have set up departments of agricultural economics. Current enrollment in the field, however, is only 3% of the total for all fields of study. Low Level of Output 2.29 Space. Problems of lack of space and/or substandard facilities at agricultural colleges and research institutes have impeded increases in enrollments and volume of research./I Removal of entire institutions to /1 Shortage of equipment (para. 2.24) also acts as a constraint to increasing the supply of graduates and research work.  - 16 - outlying areas during the Cultural Revolution resulted in loss or deterioration of physical plant at the home base as buildings were occupied for new purposes. The return of institutions to their original sites in the 1977-79 period has posed problems of reoccupation, renovation, and replacement of school buildings. At present, dormitories and administrative buildings are notably overcrowded. Moreover, while available laboratory and classroom space is usually adequate from the standpoint of sq m per student, it is frequently substandard in terms of lighting and ventilation. 2.30 Postgraduate Programs. The current supply of well-qualified researchers and, consequently, the volume of research in the agricultural sciences are severely limit:ed. This is in part due to past neglect of postgraduate study programs (para. 2.13). Postgraduate enrollments now account for only 1% of total enrollment at the 73 agricultural colleges and universities. Both colleges and research institutes are in the process of launching new postgraduate studies programs in the hope of producing much needed high level researchers in as short a time as possible. There is some danger that a concern for speed will outweigh the need for prudent planning, that postgraduate students will begin their programs in the absence of carefully developed advanced degree requirements and procedures and before sufficient senior staff, necessary equipment and library facilities are available. Inefficient Organization arLd Management of Resources 2.31 Linkages. While the vertical research, extension and training structure is notably efficient, institutional cooperation along horizontal lines needs strengthening if China is to make best use of limited finances, equipment and supply of highly trained manpower. Formal coordination on research projects and communication of research results among entities working on similar problems would contribute to more and better quality research work. At present, research institutes under the various ministries and research programs in higher educational institutions generally operate separately. To cite an example, in Wuhan, the Central China College of Agriculture, the Provincial. Academy of Agricultural Science, and the Agri- cultural Mechanization Research Institute operate separate facilities within a short distance of each other with insufficient coordination of effort, The frequent result of this lack of collaboration is excessive duplication of research work. For example, a recent survey of Shanghai scientific research and higher education projects revealed unnecessary overlap in 28 out of 63 projects carried out in 1978 and 1979. 2.32 Staff Utilization. More efficient utilization of existing staff would enable Chinese agricultural colleges to expand enrollments significantly without increasing staff size. The teacher/student ratio for the 73 agricul- tural colleges is 1:3.6 which is about three times lower than corresponding ratios in other countries. As a result, average teaching loads are notably low: 4-6 hours per week for professors, 6-8 hours for associate professors, 10-12 hours for lecturers and 8-10 hours for assistants.  - 17 - 2.33 While improvement in the ratio is warranted, the extent of improve- ment will be limited by several factors. First, the present large staff size is in part a legacy of the Cultural Revolution when it was common practice to swell faculty ranks with ideologically but not academically qualified staff. Many of these staff members now have only minimal teaching duties and are themselves students in various upgrading programs. At 11 agricultural colleges, for example, one fourth of total teaching staff is participating in various programs of this kind. Second, it is accepted practice in China to retain faculty long past what would be considered normal retirement age elsewhere. Many of these faculty members are engaged in specialized research and have reduced teaching loads. Third, the institutions consider it desirable to offer as many specializations as possible, which, in view of the small total enrollment, leads to the need for a very diversified-- and therefore large--staff. Finally, there is a prevailing belief that quality education means classes that are strictly limited in size which again implies a sizeable faculty. 2.34 Space Utilization. Poor utilization of space also impedes expansion of enrollments. As a general rule, lecture halls are used only in the morning and laboratories only in the afternoon with the result that each type of facility stands idle for half the day. School cafeterias are overcrowded because all students are scheduled for meals at the same time. School facilities are not functional for many weeks of the summer vacation or are only in partial use for various cadre training programs. 2.35 Management of Library Facilities, Records, and Financial Resources. The problems of poor staff and space utilization are compounded by weaknesses in library management, record-keeping, and accounting practices. In the latter two areas, use of outdated methods impedes day-to-day efficiency and acts as a brake to institutional planning. In the case of college libraries, while the majority have adequate book collections, few offer audio-visual materials and most operate inefficiently, open only 7 hours per day and staffed by poorly trained personnel. Even the CAAS Central Library which is designed to serve as the national clearinghouse for completed and ongoing agricultural research, suffers from this shortage of trained library staff as well as from the glaring lack of computer facilities. If managed well, the computer centers planned by all colleges have the potential to overcome some of the above management weaknesses. These centers should be used eventually not only for teaching and research but also for storing and processing financial and academic records. Government Plans and Strategy 2.36 Planning. As part of current planning for economic readjustment, the Government has outlined a program of strengthening higher education and research in the agricultural sciences. In the broadest sense, such a program addresses China's problem of how to accelerate the agricultural growth rate given three major constraints: a vast population, a limited resource  - 18 - base, and a diminishing margin of increase that can be expected from applica- tion of modern inputs. In particular, it reflects current efforts to reverse the effects of the Cultural Revolution which caused severe dislocation of the higher education and research communities thus retarding China's development progress in a number of areas. Research and teaching in agriculture, as in other science and technology fields, generally lags a decade and more behind that of more advanced countries. Shortages of educated manpower in agricul- ture appear at both the college graduate and postgraduate levels. 2.37 Government plans call for improving the quality, expanding the output and increasing the teaching and research capabilities of the agri- cultural education and research systems. Efforts are being made to develop teaching and research units that in terms of faculty, equipment and level of graduate will exist on a par with high standard institutions in developed countries. In researc'n the goal is to lay the foundation during the 1980s of a comprehensive and productive research system enabling China to achieve world levels in the agricultural sciences by the end of the century. 2.38 Strategy. Since 1977 the Government has taken major steps in the direction of quality improvement in higher education. A national college entrance examination was reintroduced in 1977; 1981 saw revival of a system of awarding academic degrees. Increasingly, teachers and researchers are being sent abroad for advanced degree study or are studying on an exchange basis at universities and colleges within China. A survey of 11 agricultural colleges shcws a total of 102 faculty members on fellowships and study tours abroad during 1981-82 and another 93 slated to go overseas in 1982-83. Program locations cover Europe, North America, Japan and Southeast Asia. Categories of training include the 2-3 month study tour, 1 year advanced non-degree trairLing, 2-3 year master's degree programs and special arrangements such as the visiting scholar and cooperative research programs. In-country training for faculty of the 11 colleges, including those on leave for advanced study and those taking short-term courses at their own institutions or at other institutions within China, has assumed considerable importance. Over 50% of the faculty at Northwest Agricultural College is participating in some form of upgrading program; for another 5 colleges, the figure is between 20 and 30%. 2.39 As part of its strategy to strengthen agricultural education and research, the Government has selected 11 agricultural colleges and 6 existing research institutes for an intensive development program. The 17 institutions were selected on the basis of geographical location, size of enrollment, quality of faculty/staff, and, overall, an assessment of their potential contributions to an improved system of agricultural education and research. The 11 colleges were chosen so as to provide in each of 6 major geographic areas a good quality higher agricultural college. Nine of the 11 have "key" status, The 11 colleges enroll 24% of undergraduates attending all 73 agricultural colleges and universities. The proportion of professors and associate professors to total teaching staff (16%) is double the figure for all 73 (8%). On the research side, 5 of the 6 institutes designated by the  - 19 - Government for special support represent important elements of the agricul- tural system - animal husbandry, aquatic products, meteorology, water conservation and forestry while the sixth, the CAAS library and information service, will serve as the clearinghouse for the entire agricultural research system. In addition to its development program for the 6 existing institutes, the Government has established a major new institute to serve national needs in rice research. Plans for the National Rice Research Institute (NRRI) call for construction of buildings and development of an experimental farm on two sites near Hangzhou (Zhejiang). The Institute will undertake long-term projects in research, coordinate the work of existing provincial rice research institutes, and conduct postgraduate level training programs. 2.40 External Assistance. The Government expects to finance the planned expansion and improvement program for agricultural education and research with its own resources and major assistance from the Bank group. Some multi- lateral aid is being provided by UNDP;/l bilateral cooperation includes assis- tance in feasibility studies, fellowship programs, and exchanges of scholars. 3. THE PROJECT Objectives and Scope 3.01 In support of the Government's program of strengthening higher education and research in the agricultural sciences, the proposed project will assist 11 colleges, 6 existing research institutes, and the new NRRI. In addition, the Government will undertake two studies of agricultural manpower and the agricultural research system (para. 3.22). 3.02 The project will pursue three broad objectives to assist the 18 institutions: (a) to improve the quality of teaching and research by: (i) implementing a program of overseas fellowships and study tours for faculty/staff; (ii) arranging for visits of expatriate specialists; and (iii) providing necessary modern scientific equipment, books and materials. /1 The UNDP has a project underway to assist 5 key agricultural colleges (4 of which are in the Agricultural Education and Research Project, one in University Development I) to improve teaching and research, upgrade staff, and improve physical facilities and equipment. The Government input is Y 4.1 million, the UNDP input US$800,000.  - 20 - (b) to expand enrollment and research capacity by: (i) rehabilitating facilities and constructing new dormitories, classrooms, and laboratories; and (ii) developing new programs at the postgraduate level. (c) to strengthen the organization and management of resources in agricultural education and research by: (i) arranging overseas training programs for administrators, librarians, and computer center directors; and (ii) providing specialist services in the management field. Association assistance in the effort to achieve these objectives will take the form of financing for imported equipment and technical assistance. Civil works and domestic equipment will be provided by the Government. Project institutions to be assisted under the project are shown in Table 3.1./1 Improvement of Quality (estimated outlay of US$80 million excluding contingencies) 3.03 Staff Development. The proposed project will help strengthen the professional qualifications of the teaching and research staff at the 11 agricultural colleges and 6 research units. At present, only 17% of college teaching staff and 20% of research institute staff have five or more years of higher education (para. 2.25 and Annex 2c and d) and even those with the best academic credentials are outdated in their knowledge. Recognizing the need for additional well-trained scientists in order to achieve current development objectives, the Government in recent years has encouraged research and teazhing units to send staff for professional training abroad. In support of this policy, the proposed project will provide 633 overseas fellowships and grants totalling 720 man-years to strengthen staff capability in the agricultural sciences. According to present estimates, 429 persons will be sent abroad from the 11 agricultural colleges: 35 for 3-year doctoral programs, 120 for 2-year master s degree programs, 114 for a year of advanced study with 160 participating in 2-6 month study tours in various science specialties. The 6 institutes will sponsor a total of 204 persons for overseas study and observation: 6 doctoral and 27 master's degree candidates, 87 candidates for advanced study and 84 participants in academic study tours. Thus, around 8% of total staff and 16% of those under age 45 at the colleges and institutes will receive upgrading in various science fields under the project. In addition, the proportion of staff with higher academic capability (6+ years of postsecondary education) will be almost doubled with the under-45 age group registering a near three-fold increase. /1 As a newly established institute, NRRI is treated in a separate section (para. 3.18).  - 21 - Table 3.1: PROJECT INSTITUTIONS 1980/81 Teaching/ Ministry/Bureau Enroll- Research College/Institute affiliation Location ment /a staff Nanjing Agricultural MOA Nanjing, 1,147 484 College Jiangsu (136) Central China MOA Wuhan, 2,361 675 Agricultural College Hubei (374) South China MOA Guangzhou, 2,054 674 Agricultural College Guangdong (528) Northwestern MOA Xian, 2,178 555 Agricultural College Shaanxi (306) Soutlhwestern MOA Chongqing, 2,527 474 Agricultural College Sichuan (528) Shenyang Agricultural MOA Shenyang, 1,901 592 College Liaoning (410) South China Tropical Ministry of State Hainan, 677 180 Crops College Farms & land Guangdong (100) Reclamation Beijing Forestry Ministry of Forestry Beijing 940 323 College (227) East China Technical Ministry of Water Nanjing, 2,680 629 University of Water Conservancy Jiangsu (309) Resources Shanghai Aquatic General Bureau of Shanghai 709 276 Products College Aquatic Products (105) Nanjing Meteorological Central Meteoro- Nanjing, 1,176 300 College logical Bureau Jiangsu (317) CAAS Animal Husbandry CAAS (MOA) Beijing 120 Research Institute CAAS Library and CAAS (MOA) Beijing 124 Information Center Center for Monitoring Ministry of Forestry Beijing 130 Forestry Resources Survey & Planning Institute Water Conservancy Ministry of Water 8 locations - 1,929 Research Centers Conservancy see map Lake Taihu Experimental General Bureau of Wuxi, 41 Base Aquatic Products Jiangsu Mleteorology Data Central Beijing 48 Service Center Meteorological Bureau National Rice Research CAAS Hangzhou, Institute Zhejiang - - /a Female enrollment in parentheses.  - 22 - 3.04 The distribution of fellowships and grants by subject area shows broad coverage of all major fields: 43 specializations are listed by the project colleges and 25 by the institutes. In terms of man-years, relative weight has been given to the fields of general science, agriculture and engineering. The preponderance of fellows (84%) will study in English speaking countries with 13% studying in Japan and the remaining few going to non-English speaking countries. Fellowships would be phased as follows: Table 3.2. PHASING OF STAFF DEVELOPMENT FELLOWSHIPS FOR PROJECT COLLEGES AND INSTITUTES Fellowships /a 1932 1983 1984 Total Doctoral 10 24 7 41 Master's 30 84 33 147 Advanced study 30 94 77 201 Total 70 202 117 389 /a Note that this table does not include study tours. Source: Based on SAC data supplied to the Appraisal Mission. 3.05 Fellowslips will be awarded according to procedures and criteria agreed upon betweejn the Government and the Association (para. 4.09). Before departure for overseas study: fellows and study tour participants will be trained in appropiiate foreign languages. For purposes of the project, the SAC will establish foreign language facilities offering courses of 3-12 months- duration t:o approxiinately 150 persons per year. Assurances were obtained from the Government: at the time of negotiations that foreign language training will be carried out in accordance with programs acceptable to the Associatiorn. 3.06 The fellowship/grant program will be managed by the SAC Project Office with the assistance of the Project Commission (PC) (para. 4.06) and appropriate depart:ments within the colleges and institutes. These groups will work closely with the overseas institutions which will receive the fellows and grantees. 3.07 Specialist Services (academic and language training). The proposed project will finance specialist services in the agricultural sciences and language training areas as follows: (a) short-tErm assignmaents of expatriate specialists in various agricultural scienices for a total of about 7 man-years of services. Such spE>cialists will be used not only as lecturers in their specialized fields but also as consultants who will advise  - 23 - colleges and institutes, inter alia, on curriculum development, staff development, and establishing postgraduate degree programs. (b) language training experts to staff the project language training facilities (total of 30 man-years). The Government will submit for Association review draft terms of reference for specialist services before signing technical assistance contracts. Specialists will be selected in accordance with the Association's "Guidelines for the Use of Consultants by World Bank Borrowers" (August 1981). 3.08 Equipment. Due to the neglect of education and research during the Cultural Revolution, equipment in project institutions is obsolescent and insufficient to meet the basic needs of training and research. The project will seek to remedy this by providing the essential equipment and materials categorized as follows: (a) laboratory equipment and instruments; (b) com- puters; (c) library and audiovisual equipment; (d) books and journals; and (e) laboratory materials and reagents. Government funds will be applied to the purchase of items available within the country, including some laboratory equipment, books and journals in Chinese, and laboratory materials and reagents. Remaining items in the laboratory equipment and books categories as well as all computers and audiovisual equipment procured from international competitive bidding or direct purchase from foreign countries will be financed from credit proceeds. During negotiations, assurances were obtained from the Government that buildings suitable to accommodate equipment to be installed will be available before delivery of equipment to project institutions. 3.09 Laboratory Equipment and Instruments. Given the preponderance of undergraduates at the 11 agricultural colleges, the major portion of labora- tory equipment items allocated to the colleges from total project funds will be used for practical training in undergraduate courses. To a lesser extent, equipment will be supplied to specialized laboratories designed for post- graduate training and research. Laboratory equipment for the research institutes will be used almost entirely for research, although, as noted earlier (para. 2.18), some of these institutions have graduate training programs as well. There will be considerable diversity in the type of equipment provided to match the range of research concerns represented by the institutes. 3.10 In terms of subject matter, equipment items will be used in teach- ing the courses required in an agricultural sciences curriculum, including agronomy, plant physiology, soil chemistry, plant genetics, and animal diseases. Over 75% of equipment will be common to all 11 colleges and will include a range of items from basic equipment (glassware, hardware, simple balances) some of which will be provided through local funding, standard equipment (pH meters, spectrophotometers, monocular microscopes), advanced equipment (gas and liquid chromatographs, atomic absorption spectrophoto- meters, and research microscopes), and, only exceptionally, over the life of  - 24 - the project, such pieces of very advanced and special equipment as electron microscopes and remote sensing devices. About 10% of total project equipment assistance has been termed undesignated to permit the PC flexibility in making final procurement decisions. 3.11 Laboratory equipment provided under the project will permit the 11 colleges to increase the percentage of experiments conducted per course out of the total required by the standard syllabus from 59% to 83% (Table 3.3) as well as meeting the basic research needs of both the colleges and research institutes. Not only will the quantity of experiments increase as equipment is acquired under the project, but also the quality of laboratory Table 3.3: PROJECTED INCREASES IN EXPERIMENTS PER COURSE WITH PROJECT EQUIPMENT IN USE (%) Percentage of experiments carried out With At project College present equipment Nanjing Agricultural College 50 60 Central China Agricultural College 62 87 South China Agricaltural College 57 75 Northwestern Agricultural College 81 94 Southwestern Agricultural College 60 85 Shenyang Agricult-iral College 70 90 South China Tropical Crops College 40 80 Beijing Forestry College 60 95 East China Technizal University of Water Resources 75 88 Shanghai Aquatic Products College 51 89 Nanjing Meteorological College 40 70 Average 59 83 Source: Estimates prepared by project colleges.  - 25 - work is expected to improve as students and researchers gain access to better equipment. Both aspects will contribute to improved programs of instruction and research. 3.12 Computers. Computers to be financed under the project fall into two main categories: (a) high-end mini computers serving the general needs of teaching, research and records management at the project institutions, and (b) low-end main-frame computers appropriate to specific research requirements of certain of the research institutes. So that all colleges might begin basic computer training courses even before the mini computer units can be made operational, the project will provide the 7 colleges which now have no computer facilities with microcomputer classrooms, each equipped with 15 microcomputers. Of the four institutes slated to acquire larger computer units, one, the Nanjing Water Conservancy Institute, will establish a combined facility with the East China Technical University of Water Resources, thus reducing total acquisition costs. The latter college will absorb 10 out of a total 19 fellowships/grants offered the project colleges in the computer field. The Meteorology Data Service Center (MDSC) will receive the preponderant number (18 out of 20) on the institute side. With equipment and specialist services provided under the project, the CAAS Library and Information Center will undertake a feasibility study on compu- terization of foreign and Chinese agricultural literature specifically useful to the Center and more generally answering a need at all project colleges and institutes. 3.13 Library and Audiovisual Equipment. To help strengthen library facilities at the project institutions, project funds will be applied to: (a) acquisition of up-to-date books and journals; and (b) creation of audiovisual units within the library systems. Such basic audiovisual equipment as slide projectors and cassette players, virtually nonexistent at present, will serve as an invaluable teaching aid, thus leading to an improvement in the quality of training. Expansion of Enrollment and Research Capacity (estimated outlay: US$55 million equivalent in local funds, excluding contingencies) 3.14 Expansion of Space. To increase enrollments at the 11 agricultural colleges and add to postgraduate intake and research facilities at the six institutes, the project includes a civil works program to rehabilitate and expand laboratory, dormitory, and classroom space. The estimated total area to be constructed is 375,000 sq m at 60 sites with an additional 33,600 sq m at 15 sites to be remodelled. Remodelling costs are expected to total Y 3.1 million; construction costs have been calculated at Y 90.6 million. Work in both categories is underway already at 10 of the 11 project colleges and five of the six institutes. Based mainly on the provision of additional space, the colleges and institutes have projected undergraduate and postgraduate enrollments as follows (Table 3.4):  - 26 - Table 3.4: NUMBER OF UNDERGRADUATE AND POSTGRADUATE STUDENTS AT COLLEGES/INSTITUTES, PRESENT (1980/81) AND PROJECTED (1985/86) Enrollment Undergraduate Postgraduate 1980/ 1985/ 1980/ 1985/ Institution 81 86 81 86 Nanjing Agricultuaral College 1,147 2,055 54 300 Central China Agricultural College 2,361 2,731 34 219 South China Agricultural College 2,054 2,730 71 200 Northwestern Agricultural College 2,178 2,700 41 120 Southwestern Agricultural College 2,527 2,820 10 459 Shenyang Agricultural College 1,901 2,880 7 250 South China Tropical Crops College 677 1,080 - 45 Beijing Forestry College 940 1,590 17 120 East China TechniLcal University of Water Resources 2,680 3,028 96 96 Shanghai Aquatic Products College 709 900 - 50 Nanjing Meteorological College 1,176 970 17 50 Subtotal 18,350 23,484 347 1,909 CAAS Animal Husbandry Research Institute - - - 15 CAAS Library and Information Center - - 5 5 Center for Monitoring Forestry Resources - - - - Water Conservancy Research Centers - - 84 90 Lake Taihu Experimental Base - - - 8 Meteorological Data Service Center - - - - Subtotal _ - 89 118 Total 18,350 23,484 436 2,027 3.15 Development of Pc,stgraduate Programs. To assist in increasing the number of students studying at advanced levels, the project will support the development of formalized postgraduate programs. Colleges and institutes are in the lnitial stages cf preparing such programs (para. 2.13). Project support will take the form of advisory services of expatriate specialists (para. 3.07) and the provision of sophisticated equipment items (para. 3.09). Over the life of the project, the colleges/institutes expect the addition of around 150 postgraduate pragrams and more than a four-fold increase in postgraduate enrollment.  - 27 - Improved Resource Organization and Management (estimated outlay: US$3 million, excluding contingencies). 3.16 Institutional Management. Better management of existing human and physical resources by project institutions will bring about some improvement in the quantity and quality of graduates and research even without additional resource inputs. Management weaknesses are evident in the areas of staff and space utilization, financial and academic records keeping, and operation of library facilities (paras. 2.32-2.35). More efficient management is also the key to optimum use of the computer centers planned by all colleges. The proposed project will address management needs through provision of specialist services and fellowships. A total of 5 man-years will be applied specifically to advisory services in the management field. Management specialists will review current operation of selected project institutions, offering advice on improved management systems and practices and recommending more effective inter-college/institute linkages. Academic specialists also will assist in this area to the extent possible. On the fellowship side, staff development proposals drawn up by each project institution call for sending over 100 college/institute administrators (including presidents or vice presidents of colleges and institute directors, registrars, and managers/ designate of the computer centers) on 4-6 month study tours to observe management of similar institutions abroad. Such visits account for 14% of the total number of fellowships/grants provided the colleges and 21% of those allotted the institutes. Closely related to improvement of institutional resources are a number of fellowships and grants in library science and related fields. To build library staff capability, 13 college staff members will participate in overseas programs, including seven in master's in library science programs and six in short-term visits to libraries. Four staff members of project institutes will be enrolled in advanced degree programs in library science, one at the doctoral level and three at the master-s level. The related field of information science accounts for another 13 degree or advanced study candidates with three additional staff members to participate in study tours on microfilm techniques. 3.17 The Government expects that, after completion of project invest- ments, the teacher/student ratio will be raised from the present 1:3.6 to 1:5, the percentage of space utilization will be increased from under 40% to over 60%, library open hours will be extended from 40 to 80 hours per week, and "open stacks" library operation instituted. National Rice Research Institute (NRRI) (estimated outlay: US$29 million excluding contingencies) 3.18 Overview. The development of high-yielding rice varieties by Chinese scientists from the late 1950s on contributed to substantial and essential increases in total rice production. China now ranks as the largest producer and consumer of rice in the world. A continuation of past successes is critically important if China is to meet the future food needs of her  - 28 - expanding population. However, the present system of rice research is inade- quate to the task. Basic research is weak and the development of new research methodologies a neglected area. The network of provincial and prefectural rice research institutes, while extensive, operates without benefit of a central coordinating agency thus inviting duplication of research efforts. To overcome these constraints, the Government has established a national rice researclh institute under the CAAS. Plans and designs for the new institute have been formulated through the joint efforts of the CAAS and the International Rice Research Institute (IRRI)./1 IRRI will continue to play a central advisory role in NRRI's development. 3.19 Objectives. NRRI is expected to play a major role as a center of excellence in the rice research area. While details of the institute's policies and operations are not yet settled, its specific objectives are to: (a) carry out projects in rice research of national and long-term significance and requiring sophisticated equipment and facilities; (b) develop new research methodologies in all areas related to rice production; (c) enlarge the pool of highly-trained researchers by providing both an overseas training program for NRRI senior staff and a postgraduate study program for recent university graduates; and (d) coordinate the research efforts of provincial and prefectural rice research institutes thus fostering efficient use of limited resources. The research programs to be developed are defined by major problem areas: genetics, plant pathology, entomology, cereal chemistry, plant physiology, soil science, agronomy, agricultural engineering and agricultural economics. 3.20 Scope. NRRI is to be located at the Huang-Tien-Fan State Farm in Fil Yang County of Hangzhou City, Zhejiang province. The State Farm, with about 450 hectares of riceland, will be converted to an experimental farm. This site was chosen because its soils, climate and major insect pests and diseases are representative of a large area of China's rice production. Project works on the farm will involve construction of 107,000 sq m of new facilities and remodeling of 5,000 sq m of existing facilities. Buildings to be constructed include workshops, laboratories, greenhouses, a germ plasm bank, storage facilities, drying and threshing areas, offices and dormitories. The project will assist the Government in providing such equipment as laboratory instruments, computers, audio-visual training equip- ment, and farm machinery geared towards development of the fields mentioned above. In addition, the project will finance the construction of a build- ing complex in Hlangzhou City for convening international conferences and /1 For details, see A Design for the National Rice Research Institute in the People's Republic of China, International Rice Research Institute, October, 1981.  - 29 - exchanging information, housing senior and middle level NRRI scientists and visiting foreign scientists, and for maintaining a city office for liaison with other national and international scientific organizations. 3.21 Staff Development. NRRI will have a staff of about 350 persons, including more than 60 scientists to be selected among the nation's best rice scientists. To train the staff to carry out the functions of the institute and to improve the quality of research, NRRI will set up training programs for its 150 professional staff as part of the project. The local training program will consist of: (a) short-term group training in research, running from a few weeks to six months and emphasizing a multi-disciplinary approach to research; (b) short-term individualized non-degree training; (c) short-term group training for county, prefectural and provincial administrators who play an important role in the popularization of new rice varieties and technologies; and (d) master's and doctoral degree programs. The overseas training program will consist of fellowships for short-term group training and individual non-degree and postgraduate degree studies and participation in scientific conferences. Staff development will also take the form of specialist services, totalling 5 man-years. Under the project, NRRI will employ foreign rice scientists to deliver lectures and assist in research. Studies and Preparation of Future Projects (estimated outlay: US$3 million excluding contingencies) 3.22 Studies. Chapters 1 and 2 have identified a number of gaps in knowledge about the organization, financing and management of China's agri- cultural research system and agricultural manpower. To address this problem, the Government has launched two major studies on agricultural research and manpower. The purpose of the studies is to facilitate development of agri- cultural education and research and identify and prepare future investments in those areas. Two special task forces composed of senior Chinese specialists have been formed to conduct the studies under the overall coordination of the SAC. The research study will consist of two phases. The first phase will aim at establishing the high priority agricultural development objectives and areas of research focus to attain the objectives. The second phase, to be formulated on the basis of the first phase findings, will consist of detailed studies leading to proposals for strengthening and modernizing of the agricultural research system. A draft report is expected to be completed around mid-1984. The manpower study will be conducted in a pilot province. Its objectives are twofold: (a) to assess the future requirements for high and medium level manpower in agriculture as a basis for the identification of  - 30 - future investment in agricultural education; and (b) help develop Chinese expertise in manpower planning and manpower survey and projection method- ologies. The study is scheduled to be completed around March, 1985. To assist the Government in ccnducting these studies, the Association will pro- vide technical assistance during supervision and sector missions. Additional technical assistance will be included in the credit. The Government has agreed to carry out the studies in accordance with timing and terms of reference acceptable to the Association, and to provide the Association with a summary and analysis of the findings. Understandings on the schedule and scope of the studies were reached at negotiations. 3.23 Preparation of Future Projects. China has important needs for further development in the agricultural education subsector. An example of a priority area for future investments is agricultural teacher education, particularly at the secondary school level where an inadequate supply of teachers of agricultural science is impeding the Government's efforts to raise both the quantity and quality of agricultural education and training. To prepare for future investments in such areas, the project may include technical assistance in the form of specialist services and fellowships. Project Evaluation 3.24 The project will contain an evaluation component under which pro- gress towards project objectives will be measured during and at the end of the project and for some years thereafter. For this purpose, project objec- tives have been translated into 20 measurable indicators in four categories: quantitative change, qualitative change, research improvement and management improvement (Annex 5). For an index of project performance relative to manpower needs, colleges and institutes will conduct annual tracer surveys on graduates to monitor the match between employment and field of academic specialization. These surveys will be inaugurated at the beginning of the project and continued until 1989 so as to include evidence after the comple- tion of the project in 1987. Assurances on monitoring and evaluation of the project were obtained from the Government at negotiations and understandings on the project indicators and targets were reached. 4. MANAGEMENT AND IMPLEMENTATION Overview 4.01 Management arrangements for project implementation will rely on existing organizations aided by newly created project units in the SAC and each of the 18 colleges/institutes. NRRI will be included in the imple- mentation arrangements described in the paragraphs to follow. These arrangements include: (a) comprehensive plans for administrative responsibilities, organization and staffing; (b) procedures and criteria for selection of fellowship recipients and specialists; (c) procurement procedures for civil works and equipment; and (d) a realistic implemaentation schedule.  - 31 - Administrative Responsibilities, Organization and Staffing 4.02 Responsibility for implementing the project will rest with the State Agricultural Commission (SAC)./1 The Deputy Director of the SAC's Bureau of Science and Education will assume overall responsibilty for directing the project. In his capacity of Project Director, he will be assisted by the division chiefs of the Bureau's Education Division and Science and Technology Division. The day-to-day management of the project will be assigned to a specially created Project Office (PO) established by the Bureau of Science and Education. Two coordinators, one responsible for equipment and civil works, the other for staff development, and additional staff to handle accounting, procurement, staff development and secretarial tasks will operate the PO on a full-time basis. The PO will coordinate inputs from the SAC, the six ministries/agencies under the SAC that are involved in the project, the recently established Project Commission (PC), and the colleges and institutes on all matters related to project implementation. It will work as well with other ministerial agencies, most importantly the China National Technical Import Corporation (CNTIC) of the Ministry of Foreign Economic Relations and Trade, the Government's agent for international equipment procurement, In addition, in its capacity as responsible implementing agency, the SAC acting through the PO will: (a) ensure compliance with government plans and project objectives on the part of all agencies involved in the project; (b) monitor the preparation of architects' briefs, civil works designs, appointments of civil works and furniture contractors and supervision of the capital works program; (c) review equipment lists and specifications to ensure that project equipment is of high priority and has appropriate specifications; (d) prepare equipment tender documents for international competitive bidding and work with the CNTIC whose responsibilities are to conduct bidding and evaluation and award equipment contracts; (e) monitor procurement of local equipment and give assistance to the project institutions in this respect; /1 In mid-1982, the Government announced its plans for reorganizing, and in particular consolidating, its bureaucracy in an attempt to improve efficiency. As part of this program, the SAC is being disbanded and many of its functions and staff would be transferred to a new Ministry of Agriculture, Animal Husbandry and Fishery (MAAF). Despite these and continuing organizational changes made since the project was negotiated in April, the project will be implemented by the same offices and groups of people (though as members of different agencies, particularly MAAF). A period of transition is now in effect, as the complete government reorganization has yet to be implemented. For these reasons, the descrip- tion of implementation arrangements in force at the time of negotiations has not been changed in the President's and Staff Appraisal Reports. The legal documents referred to the SAC 'land any successor thereto" to cover changes resulting from the reorganization.  - 32 - (f) recruit specialist services and administer placement of fellows on overseas training programs; (g) review the project budgets and monitor and control project costs in accordance with approved budgets; (h) maintain records and accounts, prepare and submit disbursement applications to the Association and maintain a general liaison with the Association; (i) monitor and evaluate progress and submit periodic (quarterly, annual, midproject and completion) reports to the Association; and (j) monitor progress of the project studies. Assurances were obtained from the Government at negotiations that the PO, staffed by qualified personnel, will continue to assist the SAC in the afore- mentioned functions during the five-year life of the project. 4.03 College/Institute Level Administration. Each college/institute has established a project imnplementation unit with an appointed director, usually a college dean or equivalent, and staff representatives from each of the specializations to be assisted in the project. The director of the project unit is to be assisted by an office responsible for the day-to-day manage-ment of the project and staffed by a manager and officers in charge of equipment, data gathering and other administrative matters. The project units will: (a) appoint all civil works and furniture contractors and supervise their work; (b) assist the PC in drawing up equipment specifications; (c) supervise installation of equipment and its operation and maintenance; (d) procure local equipment; and (e) prepare project budgets and annual implementation schedules. 4.04 Organization of NlaI. The Institute will be established under CAAS, Ministry of Agriculture and jointly administered by the Zhejiang Provincial Governme.nt. NRRI will be headed by a Director, Four deputy directors will assist; him and provide guidance for the administra- tive, research, training and. coordination functions. The scientists to carry out the research programs will be organized into disciplinary research departments. A prcject implementation unit will be established with the same responsibilities as the project units in the other 17 institutions. 4.05 Organization of the Studies. The SAC will be responsible for carrying out the two studies. It has created two special task forces staffed with senior agricultural research scientists and manpower research- ers to implement the studies.  - 33 4.06 Project Commission. A Project Commissi.- -P-) made up, o- r- sentatives from the 18 colleges/institutes has been formed to assist Lr project implementation. It coinDrises four teams of 5-6 members eac&K (a) optical equipment; (b) analytical equipment; (c) computerss; and (d) ibrary science/audiovisual techniques and staff' development, The ""'s majk E func- tions are: (a) to provide technicaal expertise in all specializatiors so as to guide the project effectIvely; '(b) to assist the PO in reviewing equip- ment lists, drawing up equipment specifications, and evaluating bids from suppliers; (c) to review college/institution staff develomme.t plans and help select study locations and subjects for overseas training fellowships; and (d) to determine requirements for specialist services and supervise selection of specialists. Over the five-year life of the project the PC also will be concerned with (a) arranging Lor installation of equipment; and (b) advising project institutitons oni the most effective use and maintenance of equipment. Assurances were obtained from the Government at negotiations that the PC will continue to carry out the aforementioned functions and responsi- bilities until completion of project investments. To assist the PC in its initial task of reviewing equipment and staff development proposals of the project institutions, a UNDP-financed study tour was arranged for PC members. They visited colleges and universities, -esearch institutes and equipment manufacturers in the US, LrK, West GermanJr and Japan for four weeks during January/February 1982. 4.07 Project Implementation Staff. An overall project implementation chart identifying lines of responsibility is shown in Chart 4. Staff of the Project Office and the 18 project urits will be selected from existing staff of the SAC and the colleges/instittutes. The Project Office will consist of about 10 staff members. The number of project implementation personnel at each institution will average around 15; depending on the scope of the project at the institution. Tne need to appoint additional staff will be determined on the basis of periodic reviews conducted by the SAC and the project institutions. 4.08 Maintenance. Provislons have been made for the maintenance of project buildings and equipment- Each project institution sets aside funds for maintenance in its annual budget. Each will appoint staff to oversee the maintenance of project equipment and buildings. Maintenance personnel will be advised by the PC on the most effective use and maintenance of equipment. Selection Procedures and Criteria for Technical Assistance 4.09 Fellowship and training granit recipients will be selected in accordance with criteria and procedures agreed upon by the Government and the Association. These will include submitting to the Association an overall staff development plan clearly defining training needs and objectives and possible locations of study. Candidates for training will be nominated by each college department or institute division and will be chosen by a selection committee staffed by senior management, Administration of contracts of fellows at overseas universities will be the responsibility of the SAC. Candidates will be selected from existing staff and graduate-level students of project institutions, and from staff whose foreign language proficiency (after language training) is adequate for study abroad. Understandings between the Government and the Association on the criteria and procedures for  - 34 - fellowship selection were reached at negotiations and assurances obtained from the Government that selection will be made on the basis of such criteria and procedures. Procurement Procedures 4.10 Civil Works. The Government will finance all civil worKs construc- tion under the proposed project from its own resources. Under traditional contractual procedures, the Government selects civil works contractors on the basis of availability and capability rather than price considerations. Unit costs are low by international comparisons. Payments to the contractors are made periodically against their bills for material, labor and overhead. Such bills are revriewed and certified by site supervisors representing the Capital Construction Bank which is responsible for making payments to contractors and maintaining economy and efficiency in construction. Architectural designs for the project are being prepared by design bureaus at the central ancl provincial levels. 4.11 Equipment. Under the proposed project, equipment worth about US$72 million equivalent before contingencies, or 42% of the total cost will be procured and distributed to the project colleges and research institutes. Equipment will be procured in accordance with acceptable lists which have been prepared by project institutions, reviewed by the PC (para. 4.06) and PO (para. 4.02) and approved by the SAC and its consti- tuent ministries/bureaus. Equipment will be procured in two phases spread over about two years. Bidding documents and specifications for inter- national competitive bidding were prepared withl Association/UNDP assistance in March 1982 and invitations to bid are expected to be issued in late 1982. The SAC, acting or. behalf of its constituent ministries/bureaus, will carry the overall respornsibility f-or procurement and administration. It has the implementation capability of handling shipside acceptance, clearing of customs, storage, repackaging and redistribution, domestic insurance, final acceptance, installation, initial testing and initial operation. The CNTIC which has experier1ce in equipment procurement under international competi- tive bidding procedures, will assist the SAC in procurement by handling bid invitation, bid evaluation and contract awards. Advice on installation, operation and maintenance of- the laboratory equipment, will be provided under the project by the PC/'PO. Assurances were obtained from the Govern- ment during negotiations that buildings suitable to accommodate equipment to be installed will be available before delivery of equipment to project institutions. 4.12 The equipment lists have been divided into two categories by the SAC in accordance with estimated sources of supply. One list, 37% of the total, contains basic and standard laboratory equipment, laboratory materials and reagents, and books and journals in Chinese. These are available from local suppliers and the quality is reasonable. Such items will be financed by the Government and procured within China in accordance with local pro- cedures satisfactory and acceptable to the Association. The Association is satisfied that such procedures are economic and efficient, because (a) the price of the items in this list manufactured in China are generally lower  - 35 - than those in the international market, and (b) it takes less time to obtain these miscellaneous items from the local market than through international competitive bidding. The second equipment list, 63% of the total, contains sophisticated equipment which are unlikely to be manufactured by local industries. The bulk of this equipment will be procured through international competitive bidding and financed by the Association. Equipment items in this group will be grouped into packages to the extent possible for bulk procurement. Each invitation to bid exceeding an estimated cost of US$200,000 will be subject to international competitive bidding. Local manufacturers will be permitted to participate and will be extended a 15% preference margin, or the prevailing customs duties, whichever is lower, in the evaluation of bids. Items and groups of items estimated to cost less than US$200,000 in each contract and not exceeding an aggregate amount of US$6.0 million may be procured through: (a) limited international tendering, whereby contracts will be awarded on the basis of comparison and evaluation of quotations obtained from at least three suppliers; and (b) direct purchase for proprietary items or where justified by the need for standardization. 4.13 Prior Association review of contract awards would exclude small-size contracts (US$200,000 or less) estimated to cover less than 25% of the total value of all contracts. Post review of such small size contracts would be performed by supervision missions on a sample basis. Implementation Schedule 4.14 The proposed project will be implemented over a five-year period (Annex 4). (a) Civil Works. Remodelling and construction work at some construction sites is already well underway so that more than one third of the civil works will be completed in the first year. Of the remodelling works for 33,600 sq m at 15 construction sites, more than half is expected to be completed in 1982 and the balance by the end of 1985. Of the 375,000 sq m of new construction at 60 sites, 30% is expected to be completed in 1982, 25% in 1983, 20% in 1984, 15% in 1985 and the balance in 1986. The remodelling of 5,000 sq m and construction of 107,000 sq m for NRRI are expected to follow a similar implementation schedule. (b) Equipment. All equipment lists have been prepared. The specifications and bidding documents for the first phase of foreign equipment procurement (estimated at 50% of total equipment procurement) were prepared around March, 1982. Invitations to bid will be issued in early 1983 for the first phase and in late 1983 for the second phase. Delivery of equipment is expected to be completed by early 1986. (c) Technical Assistance. By mid-1982, the Government will: (i) make arrangements to set up foreign language training courses for fellows  - 36 - and prepare a detailed schedule for conducting the courses; (ii) select the first group of fellows according to criteria and procedures agreed between the Government and the Association, and proceed with their placement in foreign universities; (iii) prepare draft terms of reference for specialists who will assist in teaching and research programs and management improvement. The technical assistance program is expected to be completed by June, 1987. The Closing Date will be June 30, 1988. 5. COST AND FINANCING Overview 5.01 Project costs will be incurred in achieving the following objec- tives: (a) improvement in the quality of teaching and research at project institutions; (b) expansion of overall enrollments at the colleges and of postgraduate intake and research facilities at the institutes; and (c) improvement of organization and management of resources. Project costs include the following categories: (i) construction and remodeling of build- ings, both in progress and planned; (ii) equipment, both locally procured and imported; and (iii) technical assistance. Association financing generally will cover the costs of imported equipment and technical assistance. Project Cost 5.02 Summary Costs. The total cost of the proposed project is esti- mated at Y 353 million or US$202 million equivalent, including contingen- cies. The estimated costs by project objective and category of expenditure (Annex 3) are sunmarized below in Tables 5.1 and 5.2.  - 37 - Table 5.1: COST BY PROJECT OBJECTIVE For- For- Local eign Total Local eign Total Project objective - (Yuan million) - - (US$ million) -- Improvement of Teaching and Research Quality Fellowships and academic study tours 2.7 23.4 26.1 1.5 13.4 14.9 Specialist services Academic - 2.1 2.1 - 1.2 1.2 Language training 3.0/a 3.1 6.1 1.7 1.8 3.5 Equipment 46.1 79.3 125.4 26.3 45.3 71.6 Subtotal 51.8 107.9 159.7 29.5 61.7 91.2 Expansion of Enrollment and Research Capacity Furniture 4.3 - 4.3 2.5 - 2.5 Construction & Remodelling 124.6 - 124.6 71.2 - 71.2 Subtotal 128.9 - 128.9 73.7 - 73.7 Improvement of Organization and Management of Resources Management study tours - 1.3 1.3 - 0.8 0.8 Specialist services - management - 0.9 0.9 - 0.5 0.5 Management expenses 3.0 - 3.0 1.7 - 1.7 Subtotal 3.0 2.2 5.2 1.7 1.3 3.0 Studies and Preparation of Future Projects 3.0 1.8 4.8 1.7 1.0 2.7 Baseline Cost 186.7 111.9 298.6 106.6 64.0 170.6 Contingencies Unforeseen 9.3 5.6 14.9 5.3 3.2 8.5 Price escalation 25.0 14.4 39.4 14.3 8.2 22.5 Total Project Cost 221.0 131.9 352.9 126.2 75.4 201.6 /a Civil works for language training facilities.  - 38 - Table 5.2: COST BY CATEGORY OF EXPENDITURE Local Foreign Total Local Foreign Total % of -- (Yuan million) --- --- (US$ million) -- total Civil Works Furniture 4.3 - 4.3 2.5 - 2.5 1.5 Construction and remodelling 127.6 - 127.6 72.9 - 72.9 42.7 Subtotal 13L.9 - 131.9 75.4 - 75.4 44.2 Technical Assistance Fellowships 2.7 24.8 27.5 1.5 14.2 15.7 9.2 Specialist services - 7.8 7.8 - 4.5 4.5 2.6 Studies and management expenses 6.0 - 6.0 3.4 - 3.4 2.0 Subtotal 8.7 32.6 41.3 4.9 18.7 23.6 13.8 Equipment Materials L.7 - 1.7 1.0 - 1.0 0.6 Books 4.6 1.6 6.2 2.6 0.9 3.5 2.1 Scientific equipment 39.8 46.9 86.7 22.7 26.8 49.5 29.0 Computers - 19.2 19.2 - 11.0 11.0 6.4 Other equipment - 11.6 11.6 - 6.6 6.6 3.9 Subtotal 46.1 79.3 125.4 26.3 45.3 71.6 42.0 Baseline Cost:s 186.7 111.9 298.6 106.6 64.0 170.6 100.0 Contingencies Unforeseen 9.3 5.6 14.9 5.3 3.2 8.5 5.0 Price escalation 25.0 14.4 39.4 14.3 8.2 22.5 13.2 Total Project: Cost 22L.0 131.9 352.9 126.2 75.4 201.6  - 39 - 5.03 Bases of Cost Estimates. Base costs refer to April 1982 prices. Construction costs have been estimated on the basis of existing sketch plans, recently started construction, and analysis of unit prices of recently completed comparable buildings. Comparable facilities at the various project institutions cost about the same, but unit costs for facilities with different functions vary, depending on the purpose as follows: Table 5.3: UNIT PRICES FOR CONSTRUCTION Facility Price/sq m in US$ Classrooms 110 Laboratories 135 Libraries 125 Dormitories 85 Administration 90 These unit costs are low by international comparisons. Equipment costs have been based on master equipment lists. Specialist services costs, including salaries, housing costs, allowances and international air fares have been estimated at US$7,500/man-month except for those in language training which are estimated at US$5,000/man-month. Fellowship training and study tours are estimated at US$1,500/man-month. 5.04 Estimated project costs include the following contingency allowances: (a) physical contingencies (US$8.5 million), estimated at 5% of the base cost of all project items; and (b) price contingencies (US$22.5 million), calculated on the April 1982 base cost plus contingencies in accordance with the following estimates of price escalation (Table 5.4).  - 40 - Table 5.4: ANNUAL COST ESCALATION Civil works, equipment (except computers) and technical assistance Computers Year Local Foreign Foreign/a 1982 8.0 8.0 4.0 1983 8.0 8.0 4.0 1984 7.5 7.5 4.0 1985 7.0 7.0 4.0 1986-87 6.0 6.0 4.0 /a The estimated low increases for computers are based on review of historic cost data for this item. 5.05 The foreign exchange component is estimated at US$75 million or about 37% of total project costs. This foreign exchange component was derived from analyses of the amounts and composition of imported equipment and technical assistance under the proposed project. The resulting foreign exchange contents amount to 63% for equipment and 80% for technical assistance. 5.06 Duties and Taxes. The Government will bear any charges for customs duties levied on goods imported for the project. Cost estimates for the project exclude any such costs. Project Financing 5.07 The tctal project cost of US$202 million will be financed as follows:  - 41 - Table 5.5: FINANCIAL PLAN Asso- Estimated average Category of expenditure Government ciation Total Association financing ----- (US$ million) ---- (% of total expendi- tures) Civil works and furniture 85.3 - 85.3 0 Imported equipment - 50.5 50.5 100 Locally procured equipment 29.8 - 29.8 0 Specialist services - 5.4 5.4 100 Fellowships 1.6 16.3 17.9 91 Studies and management expenses 4.2 - 4.2 0 Unallocated 5.3 3.2 8.5 38 Total 126.2 75.4 201.6 37 5.08 Recurrent Expenditures. The project will increase the recurrent outlays for higher agricultural education and research by US$16 million or by 7%. This represents less than one half of 1% increase in the total budget for all levels of education, training and research in the country which, in 1980, was about US$12.3 billion. About 50% of the increase in recurrent expenditures will finance increased enrollments at project institutions. The remainder will finance the operation and maintenance of new scientific equipment including computers. 5.09 Disbursements. The proposed credit of SDR 67.8 million (US$75.4 million equivalent) will be disbursed over a period of five years. Disbursements will be made on the basis of: (a) 100% of the c.i.f. cost of imported equipment or ex-factory cost of locally manufactured equipment procured in competition with foreign goods; and 75% of invoiced cost of imported equipment pro- cured locally; (b) 100% of the cost of specialist services; and (c) 100% of the foreign costs of overseas fellowships. 5.10 To the extent practicable, withdrawal applications will be aggre- gated in amounts of US$100,000 or more prior to submission to the Association for disbursements. The SAC will submit all applications for withdrawals.  - 42 - Apart from direct payment to suppliers or payments by the use of letters of credit and qualifiead agreements to reimburse, the Bank of China will be the recipient institution for reimbursements from the Association. Estimated disbursements under the proposed project are shown in Table 5.6. Table 5.6: SCHEDULE OF DISBURSEMENTS /a (US$ million) Projection Disbursed by Year Regional Ave (Actual) for for all IBRD fiscal year Estimate for education sectors and semester Semester Cumulative this project projects US$ million ---- --------------