Solomon Islands - Primary Education Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. P-3142-SOL REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO SOLOMON ISLANDS FOR A PRIMARY EDUCATION PROJECT February 10, 1982 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 Currency Unit = Solomon Islands Dollar (SI$) US$1.00 = SI$0.87 SI$1.00 = US$1.15 ABBREVIATIONS ADAB - Australian Development Assistance Bureau ADB - Asian Development Bank CPO - Central Planning Office (to October 1981) DAD - Development Administration Division (from October 1981) DBSI - Development Bank of the Solomon Islands EDF - European Development Fund MET - Ministry of Education, Training and Cultural Affairs MHAND - Ministry of Home Affairs and National Development (from October 1981) NPF - National Provident Fund NDP - National Development Plan OPEC - Organization of Petroleum Exporting Countries SITC - Solomon Islands Teachers College GOVERNMENT OF SOLOMON ISLANDS FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY SOLOMON ISLANDS PRIMARY EDUCATION PROJECT Credit and Project Summary Borrower: Solomon Islands Beneficiary: Ministry of Education, Training and Cultural Affairs (MET) Amount: SDR 4.3 million (US$5.0 million equivalent) Terms: Standard IDA Project Description: The proposed project aims at improving education management, upgrading the quality of primary education, and increasing primary enrollments. The project consists of (a) 34 fellow- ships in educational administration for national and provin- cial level education officers and for headmasters of primary schools; (b) in-service training to develop 20 master trainers, who would in turn prepare materials and conduct short courses once a year for all (1,200 to 1,400) primary school teachers, in groups of 20 to 24, starting in 1983; (c) provision of 150,000 textbooks, teachers- guides and other printed teaching materials; (d) building materials for construction of about 300 new primary school classrooms; (e) construction and equipment for the Solomon Islands Teachers' College (SITC), to permit an increase in its enrollment from 160 to 400, together with 16 man-years of fellowships for staff of the College; and (f) 17 man-years of foreign specialist services to help with training and management. In the primary schools, the Government's target is to increase the 1980 net enrollment ratio of 60% to a 1985 ratio of 70%. The proposed project would help meet about 75% of this target by focussing its assistance on areas in the widely scattered settlements not now served by primary education. To become eligible to receive assistance from the proposed project, the communities would undertake to provide land and labor to construct and maintain the classrooms. The main project risks are managerial and institutional. To reduce managerial risks, five expatriate project management personnel would be included in the proposed project, and an This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  -ii- adequate number of local personnel would be trained to assume future managerial responsibilities. A second risk is that the SITC might disregard the targets set by the Ministry of Education, Training and Cultural Affairs for primary teaching program entrants and use some of the new student places for secondary teaching programs. An assurance has been obtained from the Government that this would not be allowed to happen. Estimated Cost: Item Local Foreign Total ---- (US$ million) ---- Education management 0.1 0.5 0.6 In-service teacher training 0.1 0.6 0.7 Educational materials - 0.4 0.4 Classroom construction 1.5 0.9 2.4 Pre-service teacher training 1.3 1.1 2.5 Evaluation, management & studies - 0.4 0.4 Baseline costs 3.1 3.8 6.9 Contingencies: Physical 0.3 0.4 0.7 Price escalation 1.0 1.4 2.4 Total Project Cost 4.4 5.6 10.0 Less taxes 0.5 - 0.5 Net Project Cost 3.9 5.6 9.5 Financing Plan: (US$ million equivalent) Source of Funds Local Foreign Total Local communities 0.7 - 0.7 Government 2.6 - 2.6 ADAB 0.9 0.8 1.7 IDA 0.2 4.8 5.0 Total 4.4 5.6 10.0 Estimated Disbursements: IDA FY: 1983 1984 1985 1986 1987 1988 Annual 0.1 0.2 0.6 1.1 1.7 1.3 Cumulative 0.1 0.3 0.9 2.0 3.7 5.0 Rate of Return: N.A. Staff Appraisal Report: Report No. 3670a-SOL dated January 24, 1982.  REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO SOLOMON ISLANDS FOR A PRIMARY EDUCATION PROJECT 1. I submit the following report and recommendation on a proposed Credit to Solomon Islands for SDR 4.3 million (US$5.0 million equivalent) on standard IDA terms to help finance a Primary Education Project. Cofinancing by the Australian Development Assistance Bureau (ADAB) of US$1.7 million is under negotiation. PART I - THE ECONOMY 2. The Bank Group's first report since the country-s independence (The Solomon Islands: An Introductory Economic Report, No. 2553-SOL) is dated December 18, 1979. Basic country data are given in Annex I. Structure of the Economy 3. The Solomon Islands constitute a scattered archipelago east of Papua New Guinea. A British protectorate since 1893, the country became independent in July 1978. The country has a population of 230,000 and per capita GNP of US$460. Six main islands account for most of the population and the land area of some 29,000 sq km. Although the population is racially homogeneous (about 93% Melanesian), at least 87 vernacular languages are spoken. Most of the population reside in small, widely dispersed settlements along the coasts; 60X of the people live in localities with fewer than 100 inhabitants and more than 80% in localities with fewer than 200. The capital city of Honiara, situated on Guadalcanal, the largest island, has 16,000 inhabitants; other urban centers have less than 2,000 inhabitants each. The country's division into numerous islands, a low population density and the dispersion of the population in small settlements along coastal areas make inter-island shipping the main mode of transportation. 4. The Solomon Islands is a predominantly agricultural country. Agriculture, including forestry, livestock and fisheries, accounts for 70% of GDP and almost all exports. Subsistence (nonmonetary) production is an important component of total output. It contributes 40% of GDP, and nine out of ten households are engaged in subsistence food production to some extent. As is typical in the islands of the Pacific, the basic needs of the population are reasonably well met from subsistence activity. Reflecting the size of the subsistence sector, the proportion of the labor force working for money is limited. At the time of the 1976 census, only 21% of the labor force had been employed as full-time wage earners; and an additional 7% of the labor force had derived some cash income, mostly from copra or market gardening, in the week preceding the census. Thus, only 28% of the labor force had been engaged in cash earning occupations at the time of the census.  - 2 - 5. The economy has demonstrated remarkable dynamism in recent years. Betweeen 1973-79, real incomes grew at an average annual rate of nearly 8%, which, even after allowing for the country's unusually high rate of population growth of 3.4% annually, resulted in an increase in real per capita income of over 4% annually. Sustained expansion and increasing diversity of exports provided the main stimulus to growth. Exports as a proportion of GDP grew from 21% in 1960 to 37% in 1978, and to almost 60% in 1979. While copra accounted for almost 90% of exports in 1960, fish, timber and palm oil each accounted for a sizable fraction of total export proceeds in 1979. Large- scale commercial operations dominate production of all major exports except copra, which is the main smallholder cash crop. The exceptionally good performance in 1979 was due to an improvement of about 40% in the terms of trade and an export volume increase of 30%. However, a sharp deterioration in the terms of trade was experienced in 1980, with export earnings growing less than 2%. These wide fluctuations in export earnings show the susceptibility of the small island economy to international commodity price changes. Because of the worsened balance of payments situation, the Government devalued its currency by 6% in March 1981 and entered into a stand-by arrangement with the Fund in May 1981 equivalent to SDR 1.6 million. Development Issues 6. The Government-s development strategy, as reflected in the draft National Development Plan, 1980-84, recognizes the critical importance of expanding and diversifying opportunities for earning cash incomes, balanced development of smallholder agriculture and educational progress in the country's future development. Rapid growth of the working age population, the likelihood of a growing proportion of the labor force seeking cash earning opportunities and the anticipated slow growth of formal wage and salary employment suggest that if the demand for money incomes is to be reasonably met, the creation of cash earning activities in the rural sector must be accelerated. The importance of increased participation of the rural population in commercial agriculture is recognized in the Plan, which allo- cates substantial resources to extension services, research, transportation, marketing and credit. 7. The country faces formidable problems in the educational area. As recently as 1975, almost one half of the adult population had not received any formal schooling and only 5.5% had received education above the primary level. Rapid educational progress is essential for increasing the citizens participation in the economy; severe limitations of local skilled manpower and capital have necessitated a heavy reliance on foreign skills and capital, leading to a high (about 30%) foreign participation in the wages, salaries and profits generated in the Solomon Islands. The Plan has rightly identi- fied the improvement of quality and the enrollment ratio in primary education, and a substantial expansion of enrollments at secondary schools as the main priorities.  - 3 - 8. Reflecting the public sector's growing involvement in development, total Central Government expenditures between 1973-79 grew at an average annual rate of 10% in real terms, with development expenditures growing somewhat faster. Since the United Kingdom (UK) financed all development expenditures and provided grants for the recurrent budget, domestic resources did not constitute a constraint to development. In recent years, foreign resources have financed about 45% of total Central Government expenditures. Recognizing the need for greater efforts to mobilize domestic resources in the future, the Government has taken a number of policy initiatives. The most recent budget proposal envisages the virtual elimination of the grant for the recurrent budget and the opportunities for domestic borrowing from financial institutions have begun to be utilized. In addition, the National Provident Fund, established in end-1976, is emerging as a growing source of nonbank borrowing. Other policies to raise the country's low rate of domestic savings, estimated at 5% of GDP, include acquisition of equity in a commercial bank, and issue of savings certificates for sale through post offices; these measures should contribute to much needed improvement in savings facilities, particularly in rural areas. External Sector 9. External capital assistance more than tripled between 1973-78, rising from SI$3.6 million to SI$12.6 million, and the prospects for assis- tance over the plan period are also good. The UK, which accounted for almost all external assistance in the past and is committed to provide development aid of z26 million over 1978-81 as part of the independence settlement, will remain the major source of external assistance; however, concessional funds from both multilateral and bilateral sources have already begun to supplement UK assistance. The Asian Development Bank (ADB) is the main source of multilateral finance, but assistance has also been received from the European Development Fund (EDF) and the OPEC Fund. Australia and Japan are the major new sources of bilateral grants, and New Zealand is also expected to provide continuing support at a more modest level. Private foreign investment also plays an important role in the country s development; net direct foreign investment has accounted for over one third of the net inflow of medium- and long-term capital in recent years. 10. With the UK providing all development aid in the form of grants, the country's external public debt and debt servicing are negligible. At the end of 1980, public debt outstanding and disbursed amounted to SI$7.6 million, and servicing payments in respect of this debt were only 0.1% of exports of goods and services. The future investment rates needed to achieve a satisfactory improvement in the living standards of a fast-growing population as well as a growing use of loans from multilateral institutions will tend to raise future debt servicing obligations. In view of this, and the  - 4 - country's low per capita GNP, narrow revenue base and vulnerability to movements in world prices of primary commodities, it is desirable that the Solomon Islands' external public capital requirements continue to be met largely through grants and loans on concessional terms. 11. The country's low population density, the small fraction of land currently under cultivation, sufficient rainfall and relatively abundant fisheries resources suggest a substantial long-term potential for growth based on a further development of agriculture, forestry and fisheries. At the same time, the implementation of one or two bauxite mining projects, which could greatly enhance the country's foreign exchange receipts and tax revenues, is a distinct possibility in the 1980s. Nonetheless, measures to reduce the high rate of population growth are also needed to safeguard the country-s standard of living in the long term. PART II - BANK GROUP OPERATIONS 12. The proposed project is the second IDA lending operation to Solomon Islands. In March 1981 the Board approved the first ever IDA Credit to Solomon Islands in the form of a cofinancing operation with the ADB in the lead (see Annex II). The beneficiary of the first Credit was the Development Bank of Solomon Islands (DBSI). The general pattern of lending for this small country will consist of a relatively large lending operation every few years such as the one proposed herein, and more frequent small-scale projects, co-financed with the ADB. The Bank Group lending strategy is conditioned to some extent by the activities of other well-established donors and lenders. In general, however, the highest priority for Bank Group involvement will be accorded to those projects that address the problems of increasing rural cash incomes and improving and extending the educational system. The project proposed herein is clearly associated with the second problem area, and the next planned lending operation is likely to focus on the agriculture sector. PART III - PRIMARY EDUCATION The Need for Human Resource Development 13. The low educational development of the people of Solomon Islands is not only a serious constraint to economic development, but also limits the extent to which the benefits of economic growth can be captured for the citizens. The acute shortage of skilled local manpower has resulted in a heavy reliance on foreign skills. A high proportion of middleand high-level administrative, managerial, and technical posts in both the public and private sectors is held by expatriates. At the present time,  -5- only 60% of the relevant age group is enrolled at the primary level, 25% at the lower secondary level, 7% at the upper secondary level and 1% at the tertiary level. Clearly, the need for development of human resources is one of the main challenges facing the country in the years to come. While enrollment at all levels needs to be expanded, special attention must also be paid to quality primary education as the essential foundation for development of the education sector. Issues in Primary Education Overview 14. Primary education in the Solomon Islands is of six years duration and is given by a total of 344 schools, of which 289 are public and 55 are private. Until 1974, church related agencies provided most primary education. While some of these groups are still active, they are generally phasing out their assistance and the Government is increasingly accepting the responsibility for providing primary education. The existing primary education system suffers from the following problems: (a) deficiencies in management; (b) poor quality; (c) enrollment stagnation; (d) financial constraints; and (e) imbalances in opportunity for primary education among regions and between the sexes. Issues 15. Education Management. At the national level, the Ministry of Education, Training and Cultural Affairs (MET) is responsible for carrying out government policy for all aspects of education and training. Among its tasks in the primary education sector are review and approval of curriculum, registration of schools, payment of teacher's salaries and the setting of policies on teacher deployment, the mix of trained/untrained teachers and student intake. The administration of primary education within the countrys eight provinces is the responsibility of Provincial Education Boards. One of their major tasks is to employ and deploy teachers among the provinces' primary schools in accordance with quotas set by the MET. At the local level, community school committees are responsible for providing and monitoring public school facilities and teacher housing and also for giving guidance to teachers and headmasters on the preservation of local cultural values. The day-to-day administration of the schools is carried out by headmasters. 16. Education management is weak at all levels, largely due to lack of training in administration and planning. At the NET, this has resulted in weak enforcement of its policies in its dealings with Solomon Islands Teachers' College (SITC) and the Provincial Education Boards. These Boards themselves exhibit serious inefficiencies, particularly in their failure to deploy teachers evenly among schools and to obtain a balanced mixture of trained and untrained teachers at each school. The effectiveness of day-to-  day school administration also suffers, due to the headmasters- lack of training and marginal knowledge of government policies and procedures. 17. Education Quality. While instructional programs seem well-balanced and substantial improvements in curricula have been made, the quality of primary education is poor, largely due to a chronic shortage of textbooks and teaching materials and of trained teachers. Rural primary schools generally possess only a few textbooks, while urban schools are somewhat better equipped. Most schools have little in the way of materials with which to produce classroom aids. A printing center has recently been built at SITC-s Curriculum Development Unit for trial runs of the materials developed there, and the Government Printer has the capacity to do longer runs of soft-cover texts. However, there is a serious lack of funds for producing or purchasing textbooks and materials on a large scale, as well as considerable logistical problems in distributing materials to the widelv scattered schools. 18. Trained primary teachers are in short supply in the Solomon Islands. To meet staffing requirements, partly-trained or untrained teachers have been recruited. In 1980, out of a total of 1,172 primary teachers, 53% were trained, 24% were partly trained and 23% were untrained. The main constraints to an adequate teacher supply have been a combination of insufficient training facilities at SITC and a shortage of suitable trainees. The shortage of trainees is expected to be alleviated by recent increases in secondary school enrollments and improvements in teacher benefits. However, SITC's facilities need to be expanded to increase output to replace untrained teachers and to meet increasing demand for new teachers. Since a large number of partly- trained or untrained teachers are expected to remain in the system, in-service teacher training programs are needed to upgrade their skills. The existing trained teachers would also benefit from in-service training, particularly in classroom management/multiclass teaching, where SITC's teaching programs are weak. 19. Enrollment. Primary school enrollments have grown slowly over the past decade, from 25,100 in 1971 to only 28,900 in 1980, and enrollment rates have actually deteriorated from 66% in 1976 to 60% in 1980. Lack of trained teachers, coupled with administrative and financial problems arising as the Government assumed most of the responsibility for primary education, are the chief causes of slow growth in new facilities. The lack of sufficient faci- lities has also contributed to a dropout rate of 25% between Grades 1 and 6. Excessive commuting distance to school in many rural areas can make daily attendance arduous, particularly for the entry age students (6-9 years). The wide disparity in entry age, coupled with irregular intakes of students, has contributed to an undesirable age disparity within each class cohort./l /1 Many schools admit students only at two, three or even four year intervals.  20. Equality of Opportunity. Some of the country's provinces have much better access to primary school facilities than others, resulting in enroll- ment ratios ranging from 48% in Malaita to 73% in Honiara. (The overall average for the country in 1980 was 60%). School equipment and teaching aids also are not equitably distributed and some provinces have a disproportionate- ly high number of untrained teachers. There is also an imbalance between the numbers of girls and boys enrolled in primary schools. In 1980, girls constituted only 41% of total enrollments. Although this proportion has increased steadily from a level of 34% in 1971, further progress is necessary, especially given the context of Solomon Islands where women contribute at least 50% of labor to the agricultural work force. 21. Government Plans. The Government has three broad objectives for the education sector: (a) to provide equal education opportunities regardless of sex, religion, or location; (b) to establish linkages between education and national development; and (c) to provide skill training for its growing economy. As the first step in achieving these goals, the Government plans to focus attention on primary education to: (a) increase enrollment by 7% per year and achieve an enrollment ratio of 70% by 1985; and (b) improve the overall quality of the system. PART IV - THE PROJECT 22. The proposed project was prepared by the GQvernment with the Association's assistance and was appraised in April 1981. Negotiations were held in Washington from January 11 to January 13, 1982; the Solomon Islands delegation was led by the Permanent Secretary of Education, Mr. M.B. Sibisophere. A Staff Appraisal Report (No. 3670a-SOL dated January 24, 1982) is being distributed separately. Supplementary project data are provided in Annex III. Objectives and Strategy 23. The proposed project would support Government development plans in the education sector. It would: (a) help improve education management through provision of training for national and provincial level administra- tors and headmasters; (b) upgrade the quality of primary education through improved in-service teacher training and provision of textbooks and teaching materials to all primary schools; (c) increase primary enrollments through construction of new school facilities and expansion of preservice teacher training to provide the needed teachers; and (d) equalize education opportu- nities by improving the access to education of good quality in underserved areas. Project Details 24. Education Management. In order to upgrade the skills of national level education officers, the proposed project would provide short courses  - 8 - (two-months) for six staff in educational administration and one- to two-year courses for up to eight staff in educational administration, school location analysis, personnel relations supervision, budgeting and finance. The skills of 20 provincial level education officers and headmasters would be upgraded through two-month courses in administration. Most of these short courses would be conducted at the University of the South Pacific (Fiji) and the University of Papua New Guinea, while most of the longer courses would be conducted further afield. To prevent excessive depletion of staff, the training would be spread evenly over the project period. To supplement the training, the Ministry of Education, Training and Cultural Affairs (MET) would be provided with an education planning specialist for three years who would help identify and overcome management weaknesses at the MET and would assist in organizing and implementing the in-service training program for education administrators at all levels. 25. In-service Teacher Training. The current practice of alternate year intake is not considered appropriate because it promotes undesirable age disparity and retards enrollment expansion. It will therefore be replaced by a multigrade arrangement. To help overcome the shortcomings in the qualifica- tions of existing primary teachers and to encourage improved teaching prac- tices, the proposed project would provide in-service training with particular emphasis on classroom management and multigrade teaching techniques. This training would be conducted in two phases. First, a core group of 20 master trainers would be selected among experienced teachers, headmasters, and provincial staff, to receive six months of training. Negotiations are current- ly under way with universities experienced in multigrade teaching techniques to develop an appropriate course of training. This course would be conducted partly overseas and partly in the Solomon Islands. Second, after completing their training, the master trainers would prepare materials and conduct short courses (one to two weeks) at existing schools and teachers' resource centers for groups of about 20-24 teachers during school holidays. During the project period, each serving primary teacher would attend such a short course once a year, commencing in mid-1983. During negotiations the Government provided assurances that it would, by December 1982, prepare a plan to discourage the alternate year intake practice and promote multiclass teaching techniques (Section 3.06 of the draft Development Credit Agreement). 26. To assist in implementation of this component, the project would provide the services of two education specialists to supervise the work of the master trainers. These specialists would be hired for overlapping terms of three years each, to cover the entire project implementation period, and would be based at the Solomon Islands Teachers' College (SITC) and travel to course locations as needed. 27. Education Materials. In order to upgrade the quality of education and provide all primary schools with the necessary teaching materials, the proposed project would provide about 150,000 textbooks and teachers' guides, together with supplementary printed teaching materials. Selection of  _9- apDropriate materials and the development of teachers guides would be done by SITC-s Curriculum Development Unit and MET officials with assistance from the education specialists provided under the in-service training component (para. 26). Because of the diseconomies of textbook development for such a small country, the emphasis would be on purchasing or adapting suitable materials from the existing "South Pacific Series" for use in the Solomon Islands. 28. Primary Education Facilities. In order to help increase access to primary education for the country-s children, the proposed project would provide building materials for construction of about 300 new classrooms. This would meet 75% of the Government's goal to increase enrollments by 7% per year, from 28,900 in 1980 to 40,600 in 1985. Further increases during the project period would not be feasible because teacher training would provide staff for only 300 additional classrooms. Because of the low density of population, in most of the underserved areas, most of these new classrooms would be provided in the form of one-room school buildings at locations broadly determined by a 1981 school mapping exercise. The final selection of new classroom sites would be agreed between the MET and provincial governments during implementation in accordance with established priorities. 29. The new classrooms would be provided to the communities in the form of building material kits, generally precut for assembly on site. The Govern- ment has provided adequate assurances that a building kit would only be supplied to communities that are prepared to provide adequate sites, teacher housing, labor, locally available materials and maintenance (Section 3.08 of the draft Development Credit Agreement). 30. Preservice Teacher Training. To help alleviate the shortage of trained primary teachers and meet the demand for new teachers to be generated by the planned enrollment increases, the proposed project would finance the expansion of the SITC to 400 student places by 1987 (current enrollment is 160). Of these student places, 90% would be allocated to primary teaching programs, resulting in an output of 170 new primary teachers each year. This project component would include provision of civil works, equipment and furnishings for classrooms, library facilities, alterations to an existing assembly hall and to kitchen facilities, 22 additional staff housing units and new dormitory facilities for 210 students. The quality of SITC-s staff and teaching programs would also be upgraded through the provision of: (a) eight fellowships (two years each) for teacher trainers; and (b) assistance in organizing preservice training programs in multigrade teaching techniques to be given by the education specialists provided under the in-service training component (para. 26). To ensure that SITC will allocate adequate student places to primary teacher training programs, assurances were given by the Government at negotiations that the MET would by 1982 prepare a plan to improve SITC's selection policies to ensure that SITC will meet the MET-s enrollment targets by project completion (Section 3.07 of the draft Develop- ment Credit Agreement).  - 10 - 31. Project Management and Evaluation. In order to ensure efficient management and evaluation of project implementation, the proposed project would provide expatriate specialist services in the form of a Project Manager and an Accountant (eight man-years). This Project Management Team would be responsible for coordinating all project activities, supervising the technical and managerial aspects of all civil works components, and assuring the monitoring and evaluation of project progress. The Education Planner, located at MET (para. 24) would double as a Deputy Project Manager and be responsible for implementation of the educational aspects of the project. This would include advising the MET on education, planning and administrative matters, reviewing detailed proposals for school locations and preparing proposals for improved textbook acquisition and delivery systems. Project success would be evaluated in terms of increases in enrollments, increases in the number of fully trained teachers, changes in teacher:pupil ratios, methods of distribution, effectiveness and physical life of textbooks and teaching materials, and the numbers of in-service courses conducted and classrooms built. 32. Future Investments. The proposed project would include financing for studies to be conducted on issues in the education sector and for help in preparing future projects for external financing. Project Cost and Financing 33. The total cost of the proposed project, including estimated value of community inputs totalling US$0.7 million, is estimated at US$10.0 million. The proposed credit of US$5.0 million would finance 86% of foreign exchange costs (US$4.8 million) and 5% (US$0.2 million) of local costs. The ADAB has tentatively agreed to provide a grant of US$1.7 million equivalent for student hostels and technical assistance (14% of total foreign costs and 20% of local costs). The Government is prepared to assume this financing if ADAB financing does not materialize. Retroactive financing up to a maximum of US$100,000 would cover costs incurred after June 30, 1981, to assist in recruitment of technical assistance to ensure a prompt start of the Project. The Government would finance the remaining US$2.6 million. The contingency allowance of US$3.1 million would include: physical contingencies (US$0.7 million) estimated at 10% of the base cost of all project items; and (b) price contingencies (US$2.4 million) estimated at 12% annually for domestic purchases, and foreign price increases of 8.5% in 1982, 7.5% in 1983-85, and 6.0% thereafter on the base cost and physical contingencies. The costs of foreign specialist services are estimated at US$5,000 per man-month and include salaries, housing allowances, education and medical benefits, moving allowances and airfares. Overseas training costs would amount to about US$1,300 per man-month. 34. Annual recurrent costs generated by the project are estimated at about SI$ 0.7 million (US$0.8 million equivalent at 1981 prices). This would represent about 11% of the MET's recurrent budget in 1985. Although this is a  - 11 - large increase, the Government places a high priority on the project and is therefore likely to be able to provide finance for the recurrent costs. Implementation 35. The Development Administration Division (DAD) in the Ministry of Home Affairs and National Development would be the agency responsible for overall project coordination. Also involved in project implementation would be the Ministries of Education, Training and Cultural Affairs and Finance. To coordinate project activities, a committee would be formed consisting of members of these Ministries, chaired by a representative of DAD. This committee would meet periodically to review progress, resolve issues and establish guidelines for project implementors. To assist the Government in implementation, the Project Manager and Accountant would be located in DAD whereas, the Deputy Project Manager would be located at MET. As early recruitment of these managers and other specialists to be provided under the project is important to project success, the Government with Association concurrence selected the Commonwealth Fund for Technical Cooperation as a recruitment agency. This agency could also be utilized to help place fellow- ship trainees overseas. Procurement and Disbursement 36. Except for ADAB financed boarding facilities, construction of civil works for the SITC expansion (IJS$1.2 million) would be contracted through international competitive bidding procedures in accordance with the Association-s Guidelines. Primary school construction would be done by the communities selected to receive new classrooms (para. 29). 37. Traditionally imported building materials estimated to cost about US$0.5 million would be procured under contracts awarded after international competitive bidding, following procedures acceptable to the Association. Domestic manufacturers of these materials would be allowed a preferential margin of 15% or the existing customs duty over the c.i.f. price of competing imports, whichever is lower. Other building materials (mainly timber) would be procured in accordance with local competitive bidding procedures, accept- able to the Association. SITC equipment and furniture (US$200,000), library books (US$250,000) and textbooks/printed materials (US$300,000 total value) would be procured in accordance with existing government procedures, accept- able to the Association. These procedures include local bidding, stores contracts with local firms, indents with other government entities (e.g., the Government Printer) and procurement agreements with Australian-based broker firms. 38. The proposed credit of US$5.0 million would be disbursed on the basis of: (a) 70% of local expenditures for civil works; (b) 100% of foreign expenditures for directly imported building materials, equipment, furniture, and teaching materials; (c) 100% of local (ex-factory) cost for locally manufactured building materials, equipment, furniture and teaching materials;  - 12 - (d) 70% of local expenditures for imported building materials, equipment, furniture and teaching materials procured locally; and (e) 100% of foreign expenditures for specialist services and overseas fellowships (excluding those selected for ADAB assistance). Disbursements are expected to be completed by December 31, 1987. 39. Disbursements against various small and local expenditures, each less than US$1,000 and aggregating less than US$500,000, would be made against statements of expenditures to be certified by the authorized representative of the Government. Disbursements against remaining project expenditures would be made against full documentation- All agencies involved in project implementation would prepare and maintain separate accounts for the project in accordance with sound accounting practices. Such accounts, together with disbursement documents, would be audited annually by the Government according to standard government procedures. During negotiations the Government provided assurances that: (a) project accounts would be maintained in accordance with sound accounting procedures; and (b) auditing procedures acceptable to the Association would be applied annually during implementation (Section 4.01 of the draft Development Credit Agreement). Benefits and Risks 40. The proposed project would make a large contribution towards the development of the Solomon Islands- human resources and lay the groundwork for reducing the now heavy dependence on foreign skills. Specific benefits to be derived from the project would be: (a) institution building in the education sector, through in-service training and technical assistance to upgrade the skills of education management staff; (b) improvement in the quality of primary education, through provision of textbooks and teaching materials and in-service training of teachers and (c) increases in primary school enrollments, through provision of new facilities and expansion of preservice teacher training facilities to supply needed teacher staff. The proposed strengthening of the administrative and planning capacity of education management staff would not only benefit primary education, but also would provide the basis for effective future development of the education sector as a whole. Improvements in the quality of primary education would ensure that its graduates have an adequate background for secondary education, which is essential to the country's ability to produce sufficient middle- and high-level manpower. The provision of 300 new classrooms would raise the proportion of school age children enrolled in primary school from the present 60% to close to 70% on a countrywide average. At the same time, school location selection criteria used under the project would provide new facilities only to presently unserved or underserved areas. thus fostering a more equal access to education among regions. 41. The main risks of the project are managerial and institutional. Because the project components are highly interdependent, there is a risk that uncoordinated implementation of the components could result in failure to achieve full benefits within the implementation period. Project Management would therefore be strengthened through provision of qualified staff to  - 13 - prevent this from occurring. A second risk associated with the project would be that the SITC could disregard MET targets for primary teaching program entrants, as it has in the past, and use some of the new student places for secondary teaching programs. An assurance was given by the Government during negotiations that steps would be taken to prevent such an occurrence (see para. 30). PART V - LEGAL INSTRUMENT AND AUTHORITY 42. The Development Credit Agreement between Solomon Islands and the Association and the recommendations of the Committee provided for in Article V, Section l(d) of the Articles of Agreement of the Association are being distributed separately. 43. Special conditions of this project are listed in Section III of Annex III. 44. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 45. I recommend that the Executive Directors approve the proposed credit. A.W. Clausen President Attachments Washington, D.C. February 10, 1982  -14- ANNEX 1 Page 1 of 4 TABLE 3A SOLOMON ISLANDS - SOCIAL INDICATORS DATA SKEET SOL50ON ISLANDS REFERENCE GROUPS (WEIGHTED AVEHAGES LAND AREA (THOUSAND SQ. KM.) - MOST RECENT ESTIMATE)- TOTAL 28.9 MOST RECENT MIDDLE INCOME MIDDLE INCOME AGKICULTURAL 0.93 1960 /b 1970 /b ESTIMATE /b ASIA S PACIFIC LATIN AMERICA & CARIBBEAN GNP PER CAPITA (US1) 150.0 210.0 470.0 1136.1 1616.2 ENERGY CONSUMPTION PER CAPITA (hILOGRAMS OF COAL EQUIVALENT) 50.4 131.3 207.8 1150.6 1324.1 POPULATION AND VITAL STATISTICS POPULATION, MID-YEAR (THOUSANDS) 123.0 163.0 221.0 URBAN POPULATION (PERCENT OF TOTAL) 3.1 9.3 21.4 40.8 64.2 POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILLIONS) 0.435 STATIONARY POPULATION (MILLIONS) YEAR STATIONARY POPULATION IS REACHED POPULATION DENSITY PER SQ. KM. 4.3 5.6 7.6 373.1 34.3 PER SQ. KM. AGRICULTURAL LAND 132.3 175.3 230.1 2382.8 94.5 POPULATION AGE STRUCTUKE (PERCENT) 0-14 YRS. .. 44.6 47.8 39.8 40.7 15-64 YRS. .. 51.9 48.7 56.7 55.3 65 YES. AND ABOVE . 3.5 3.5 3.5 4.0 POPULATION GROWTH RATE (PERCENT) TOTAL 1.7 2.8 3.4 2.3 2.4 URBAN 13.0 13.8 12.7 3.8 3.7 CRUDE BIRTH RATE (PER THOUSAND) .. 41.0 49.0 29.7 31.4 CRUDE DEATH RATE (PER THOUSAND) .. 12.0 12.0 7.5 8.4 GROSS REPRODUCTION RATE .. .. .. 1.9 2.3 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) .. .. 3.4 USERS (PERCENT OF MARRIED WOMEN) .. .. .. 44.1 FooD AND NUTRITION INDEX OF FOOD PRODUCTION PEK CAPITA (1969-71-100) 111.0 100.0 137.0 123.7 108.3 PER CAPITA SUPPLY OF. CALORIES (PERCENT OF REQUIREMENTS) 81.0 80.0 81.0 112.6 107.6 PROTEINS (GUANS PER DAY) 40.0 41.0 42.0 62.5 65.8 OF WHICH ANIMAL AND PULSE 13.0 15.0 16.0 19.7 34.0 ChILD (AGES 1-4) MORTALITY RATE .. .. .. 4.8 7.6 HEALTH LIFE EXPECTANCY AT BIRTH (YEARS) .. 51.0 .. 64.0 64.1 INFANT MORTALITY HATE (PER THOUSAND) .- 52.4 .. 50.2 70.9 I A ACCESSjTO SAFE WATER (PERCENT OF POPULATION) TOTAL .. .. 31.0 45.9 65.7 URBAN .. .. 95.0 68.0 79.7 RURAL .. .. 24.0 34.4 43.9 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. .. 26.0/c 53.4 59.9 URBAN .. .. 94.07E 71.0 75.7 RURAL .. .. 20.07 42.4 30.4 POPULATION PER PHYSICIAN .. .. 6468.8 4428.7 1728.2 POPULATION PEE NURSING PERSON .. .. 834.7 2229.7 1288.2 POPULATION PEE HOSPITAL BED TOTAL .. .. 325.0 588.5 471.2 URBAN .. .. 168.8 579.6 558.0 RURAL .. .. 244.4 1138.5 ADMISSIONS PER HOSPITAL BED .. .. 18.0 HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL *- 5.4 5.6 URBAN .. 5.4 5.5 RURAL .. 5.4 5.6 AVERAGE NUMBER OF PERSONS PER ROOM TOTAL .. .. URBAN , . 1.9 RURAL .. .. ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL .. .. URBAN .. .. 80.0 RURAL .. ..  ANNEX 1 -15- Page 2 of 4 TABLE 3A SOLOMON ISLA r-ocIAL INDICATORS DATA SHEET SOLOMON ISLANDS REFERENCE GROUPS (WEIGHTED AVEWOES - MOST RECENT ESTIMATE)- HOST RECENT MIDDLE INCOME MIDDLE INCOME 1960 /b 1970 /b ESTIMATE lb ASIA & PACIFIC LATIN AMERICA & CARIBBEAN EDUCATION ADJUSTED ENROLLMENT RATIOS PRIMARY: TOTAL .. 61.0 72.8 99.8 101.7 MALE .. .. .. 100.6 103.0 FEMALE .. .. 58.8 98.8 101.5 SECONDARY: TOTAL .. 6.5 14.5 53.5 35.3 MALE .. .. .. 58.4 34.9 FEMALE .. .. 8.1 48.6 35.6 VOCATIONAL ENROL. (% OF SECONDARY) .. 18.0 16.0e 21.1 30.1 HIGHEST 5 PER PUPIL-TEACHER RATIO PRIMARY 21.0/d 24.0 26.0/e 34.2 29.6 SECONDARY .. 14.0 15.37T 31.7 15.7 ADULT LITERACY RATE (PERCENT) .. 9.0 .. 86.5 80.0 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION .. .. 5.0 12.7 42.6 RADIO RECEIVERS PER THOUSAND POPULATION 4.9 49.1 48.3 174.1 215.0 TV RECEIVERS PER THOUSAND POPULATION .. .. .. 50.6 89.0 NEWSPAPER ("DAILY GENERAL INTEREST') CIRCULATION PER THOUSAND POPULATION .. .. .. 106.8 62.8 CINEMA ANNUAL ATTENDANCE PER CAPITA .. .. .. 4.3 3.2 LABOR FORCE TOTAL LABOR FORCE (THOUSANDS) .. .. 22.7 FEMALE (PERCENT) .. .. 16.8 37.4 22.6 AGRICULTURE (PERCENT) .. .. 44.7 50.2 35.0 INDUSTRY (PERCENT) .. .. 15.0 21.9 23.2 PARTiCIPATION RATE (PERCENT) TOTAL .. .. 28.0 40.2 31.8 MALE .. .. 47.0 49.8 49.0 FEMALE .. .. 9.5 31.1 14.6 ECONOMIC DEPENDENCY RATIO .. .. 1.2 1.1 1.4 INCOME DISTRIBUTION PERCENT OF PRIVATE IN RECEIVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS .. HIGHEST 20 PERCENT OF HOUSEHOLDS .. LOWEST 20 PERCENT OF HOUSEHOLDS LOWEST 40 PERCENT OF HOUSEHOLDS .. POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOCE LEVEL (US$ PER CAPITA) URBAN .. RURAL .. .. .. 193.7 187.6 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. .. .. 513.9 RURAL .. .. .. 234.3 362.2 ESTIMATED POPULATION BELOW ADEQUATE POVERTY INCOME LEVEL (PERCENT) URBAN .. RURAL .. .. .. 32.2. Not available Not applicable. NOTES /a The group averages for each indicator are population-weighted arithmetic means. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Most Recent Estimate, between 1976 snd 1979. /c Percentage of households; /d 1965; /e 1975. May, 1981  -16- ANNX 1 Page 3 of 4 DEFINITIONS OF SOIAL. ItDICATORS Note.: Although the date are droi ftie soure,ettilly judge, h o:atotaiactlol,I hul ltb te htte a o ettt _Wtooilto blrht bet...e of the leck of et-d-odoed defiotiote. and toetpt eae b d iffeta,t cotrleinci cin h oe The etc... ease t -le f ~eolV id-etith orders of cogoitide itditetetreode. aid chorectpe cetitmjor diffe....ec heneotoite.. The moct gocuPe era (I1)the sein to-oIy troop of the cob jete cou..ryemd (2) ec..oonty gVtoup oth -tmoba highe., aeehiomte theo tomr ... cop ofte ilecti.uotty leoep fo "Capitol. S.rplue Otitootee group where Middle I.to.. North Aftc m Idl et'S rhocw becoeo. eene ec-clu iofftitte) - It the reference. group date the .n.ge r poplaio ooighrtd -rlnheeo ooo o ec otcnred show toly whet e_jot toy ofth icu lrelt a ropo datao that lodi-on_. Slnc the covrag of onoo mn h o cd...tcrt epend hon h -cealaiiy of dat eod to Ott toiforo, cauion moa he Iort=t to roantog aoragao of one todtoa-tortcanot... Taetrgacol eflt oprc he valu of L.41did ithoead q!c,,Icnlotoc oo cotti hd otl, rhn n `VT o-l-Pb,ofpuai-Ic (tona. Tnl-Totl. nceoc opiigbOao c nadnnr ubar. on -coal dootde by cboao -eroPo- nme ihorilhd AEic .ora --t-tot of egotuinnal _ reuadcaprot or,, per l,oo....y valahi . to phlt nod p,to-n g-cerl and oetlodh le o e foe crps, p...u..o. -oket awd 'cttheo gardoro cet Ittfmlco; lips dano. - oltoncroera. H""t':' r anhlaoot parmonItly etet Ott PER CaITa (Uii) I- liPiP per t..o ntoattcetscatplw,c d"a: core oe -o Included. R-olbeptea hotor tolds hecith o1n..ted by some. covrotni ald WaoOrldmoAtt (191P haoie)o 1Nil, cndiee -1m oattboo potoconly eto1ffd hbacfeclt (hAt hy 1970, mod 1919 dona. aedniloee c,ore s'cfo, eno . hitofrit-pottatico_ d.tcoc ond preoide a lotted nane f a-tI f-ulilfte . Fttiata ENERlY CINSID9TION FEi CAPITA - APonuo ..-l i-nnwto tf cemrtlentg (coalccl WpnHaseco opnlaccoaAOt tahgnrl:pieitnle,, eod ignie, ptroion, anerl ga ondhydro-, -uceo aod gecihaVimelelt- ao ua optoblclo uol hoep,itola cid sadiaadsnewy trility( to 'lgrw ofcol quooleon yen -oonn; 1960, 1970, end 1979 c-ters Sp-atlo-od hneptnole cr Included Oolyco.deorotl. data. Aid Teato parionolDd- Tonal number of adn-ism.. no or dischrges frc.h.i. l dIvided by the o-ah- of hada - POPILATION NDii VffAL. STAfTISTIC Toal Fe aIon _md-Teat (chu...d. A .1 of July l( (P60, 1970, and 1979 NHOUSING dan. Aoa..aa SInca .f.. beoll otrc- oar hcuaeold-toel weha, ood rural- Irhanfcocltioofoarcoc f tonol M- cnofc unba n.o ocalp... tic A ho-ahcl1df c..eIete f a group of indloldoalebi ha'2re Hiiggutt differen dainlln o tenri myof0 oaae of ofdn o hrpI tb.A hoorder or lodger may ormy cot he i-iaded it c..pcnite 991, 197 at19dna the ho..ehold tof nnin.,pupoe (onon n rar 191- Cuoren Fp.putaico pr-Jeo-ion tte baeed to 19ff he fperev pot ric in uhn ao crn cepedcoeeioma d ttlrplio by aeedanadte oclr Id ferinlityrae.doelilopa,repc tol.;calnoetlidettpraettatre Projection perae-re gcr mralt ratr ,coplt-o three 1enel -seu- ono,iupld Farce. lo life aipe-na-y at birth Increo... i. 0t~h toe- o aPer -a ine- cm eeet i- lrctrtitt (tr Ietf deliel-noe.ubn cdoe. leve, and femle lifa oei r aabtlloing at 77.3 yeeie. T1he pera- tooentoa deIIog wic alerriit it liigNaraee peet cerc .o.friln roa. dcha. Oeh...e leotl aictig d-clioe In of non b.uba,ancre do-11 inge epoiey rihoenyIa hb,, 'aIgncd one of tbe-eoinn -btel-ioa of mornliny EDUCATION tianienero ~ ~ fl ypln m-cee noyrnnTic hl.ra i. on groah elr riay1hol-tor olead female-IreG onimlesd.eml the hirnh rate Ia ql no the det rote .... ..e te eg aeu. r - anroer1 .. cIf all oge anhe prImer0 laa ma- perI wsge of repmonn- maipanneon. hio i. achivd onyAtr etlty toes eolnapn iimay s o-g pIumin(Normll incledee childt aged h-il ibr ralemleonI 1-1n ofunit a trdri I ae te ah geroooyasra hen odflItd for ditfro lthe ofprimary ed-rifa; foe of aeenrapaco ItolEe-erly. The enoi..oery po pulacino aoomcotrsoaboiie l dceioe "orolsat ma ....aed lid p-erea 'P"me 0tehat fteceecdchrneloo fnb uatnalc soe uplsar hb o abowa nhe offlbd too ae lintel. educanionreqciresao~~~~~ least foor Fesre ofepoa Peimary iarnim fear t . enrnor inonatumoe is reac hod -Th. year h-e -tat.cwary popolotton Drorld.e genral .oeiol or. teether, greiatg toetr..nfies. fat pepib elee has been reahed. .a.aily of 12 to 17 yeara of ag;crepoIdeore ooraa r g-erily Per.eo. ha. - Od-year ppoyclnion par aqua- kbll -ee (110 har-c-a of Vonanio_l eorAle1o . o.. V nIf erI'llry) - Not.eniamltatet 1os ae 960 19 aid 199dat.iodenbil. i _iuctia, or ona- rgtm tth prs tdge Par so. ha. aeienrlImod - Compen-c me ah... for aginlur ad metly or ae dopetter..te of se...idety iosltiaee. oily; 19i0. 1970 end 1979 dat. PbI1il-imeiba ratio - trimar. med aeadrv, - Total edtidmn eme11d Is Poeelanit Ag Irigr leaa - (hildren fl0-la e-rel. -ork'g -oga 015- pimar co,d a..oodery lana. divided by onhra of tsahera be the hiyas,ad reire:d 195 ysere eid oeIcaParne..a... of mid-yaer poyn- lroeseoding lanai. Iatino; 1960, 1970, am 197 dat. ido1n liosot.rate f-oprnee.t) - Linar.ne adm1re fable to read .A -itte) PPotaleron leiwni Nate fcrc.an - tota - -.-Ia gron canes- of totl mid- tea. perrentag of rtft1 eda ppeoo aged 15 years mmd aver. year Popaleatoc foe 1950-if, 1960-7i. ad 19110-79. Poalel -hrna taefenat ee - damoal growth -te of urban pop.- COtNSMPTIitt Ilation for 1N5i-6D 190-l,ailNI- Pemamosar Care tree hbeaad popoeim Peasemlar tae epetee atme Grcda Birt Vh Dan .fac th td( - 1 ooAlIre hirtha par iho.....d of aid-year raesaIogln te sight peraooa; eolodem .h...e..emec eat Ppnpolnlo; lO6O, 1970, ad1979 data mlitary -hirle.. trod. Deah hat fear aoad(-gtA' Idacihe pee thoe-de ot aid-year tadi D-anear fac thromaid pnoitetoo - Allptyrse of es..etIsee far ratio pooalo No 970, aed 1979 dae hemadocener geealpbiopeIboci f -Pepte"tte; emitdd a- iroastaerooo itm ta A- lsrg .. mbar- of daughnaeamo il o oi ....adrni-are tI ....tetee ad te 'acra th-m regiefet.e ad- eI t bar Ieme reproductte raind If hb eprinepramewn aga-epecifir far- eat. -e ta effert; dame far eemt year. may met ha _epa-bhl Imoe tilityrana.;.. nell floe-ya enege" moI inLi 1960, 1970, at 99.ee ro.otris ehlibe.d Pliroetog. of bfrthb-oonro1 de-ce ne opoeo aInoa faet(y yI...iog orogree. general poblic Par the..c..d popolattuc; ..eiidA I.e...mas TV emsier Fsmilo Piamoing -er rU ro.. o mo"rieenemtP-_Frcmnge of maried Iacoo..nrlea and to yVIr whet ragler... Imof VT a. re to sfem.t mmmoohldl-b earing ag 4Il-tyear( nbhus birth-contro d-itnee rnNarre Ctrcnleoto (necPrhoei Souhtof - m the -oergo ole- al_aoe_i m tameaegop.clto ofPNI "daily grora . onr. e me-Dpeo", fefti.d em a pertidnoa publlcenVino denote.d pr~lily to rerordiet ganre mae.f Ia nsimmeed toWn ANi NtRIIONie inb "daily" if in appear. aI oatfou ni e.ke. tInder of foolfoduoiocrCro lh-tIi Icdtm of terrapins.e..... Ciroi Al Aicdenre ore Cotre per Yea-t-ea..d me nth. .tnh- at prid-cnil.on c al iced onemdlet Pidoloealieo -dIm fee:d -md n..n ol itg nhe ya-, i-rldiog edseet- ma dri-e-ic oima it no noleedar yFar baa. Co iittoeotoygede(e.g ematan aid mobIl utI. lasiof enao inhih-rr diblstodroc-ihnn-nieone (e.g. -oftee.,id te -ae ac .dd. Agg_egat produlinto of oat h on...nry ie baeidno ADR OR iCE ..n.na aVerg pradiner pricemlhe Nf-f Pted17 ae Total taboo ro e fnh...a.daI - ..... lnally attire Petine. io.a.. tar rarlr eurrl ofclrie(erenofrnrme )-computed fIn. are eceadoermi o rbding ho-at-e, endecta, eti., --egy eqnioaleno of -ot food aepplita -nalable Im onuntr per cc pine ooei ouaion of all8 agm f isfitil..t to nert... nem te r per day. ArIloble eu V r opIsa d-nsit p-oductom, importe lee not onoperable; 1960,190 rod 1979 dane._ t Vnnilr -dr cc food poceuig dPPotme to' dietrlbutlno. tnt- Agr1cutira fopir-eo I b-lao forc InIaec,ftaty utn i moot 0c rettooed b cAlbead o hyholegI_1a.. ordo fo r nocol oc- fibtog a rtnaao na lbor force; i60, lP e Id 1979 data. niyad haaloh oonad PArigmloeni bep oanr, dy o-lghta, age lety(eco I .-tao for neoig oeruto,mmoett aid am die-itribul of ponn(atlnn. aid elcio 0 yaroco for otee atlan elenitciny, --to ai gRac. ecetg of totl Iahar fort.; 1960. hoteahod level: .9A1-.. 190,ad 197 dat. 1970 end1979 dale. Per -erin ceprlo of rtnt oacPa a)-Proi nao of per toput Fartiooelin cae -raret -tonal, mae,nd fe 1.1- Parniirpmio t me pspyly of find per day. tat enyply of tcd Ii Ae~fini re abov.- t- -iacoty ree are cmpetd IVaeorl mae Id fsmei 11har forrees qulcearto forall contrier eembit behy lilt proide for dbinim parca.ragee oftnl,mlead female RI. pooaIor of all eg.r.ep _t_1y; allwane fifgmaof oTolcrnim yrr df mod g0Vru of ewiel cod 1960, 1970, end 1079 date. These ore baaid om PIPeLO totsa rate. ,.I.. prnt,of ehich 11 rc aon be.a..ol prot. These eserd- refl.tniog age-ceo .nu-o- of oh ouerm,ad bogtime tred.A erdeere1- loethcthoa.. of 75gremeofcotul P....einmod "lfaam fIeetisa-eear f-o oIIoala.oIcIe_ etm l poenaaoeegefr themc,Pr..oard hf fun to nbaThr r-oonomn DO..oedenr letio - R.nto of ypnlm1ttrmom.der 15 aid i5 cad ease oldl Poo itrcy 191-I 190ad17 eo to the c-l labor f-or. Per apIa rrtei cuin fom olml ao pA eaPrt,,.t supply 0f food de- find ro olmle odpuce i irmapa dy;1961-hI 19 710ad1977 date. INOM DISTIBOiION ChIl (ares 1-ul ynooi thte Iotai th :Oura.. -. P;ca douh - o t-looioaod 1-Prencm f nncoIc (both In oah end klAt-d eivdbrlam aagru_0 er ,nocildc nleaegorfnomdolotgo Ihprmn,rot-d paoc, 2oro 0 parrea, emd poareen A4peFnet rfe don daror frmIf abl-e; 1960, 1971 and 1979 dote,o-oohlo Life onanan Iattirt fyomr ... Arp ocebar ci yerO of Lift remining Th olnntttmoa r -ey oprooooooe ma-ere of ponerrylea anbirt; 96. 97 cd 1979 dt.edeol einrrndottniaihnuie bisn f ralroRant (oar nbouecd.. dote d-oibo of to ntccrOtya Eni-td iheoluno i-PoVoon browh Leve.ll.(D procaita aho ma ofaeprS aemn(o It. Abeolurr poverty i_oo loo he that inoelm1 beima chubh a ina Atore tolefthate (trceniof ruait-oo.'ho rira - 000- o_t'iotoIm..llyadeqeoca dunV plea ce.... tel non-fond Ieulemmn Is met hen of pnl tti re.edirl mi.h reatob. ..c... no o.eafodh ornarauply(ole rae inae te . ocu trea h tuoronsIaed-cuoad ttrorlorn nom 1aa (US) oo -roial. - urban ed e-r.I cane teh emhabe Ort yonecttdb 1 hoeae, apoge,-od _alayole atnlRalaci-ne p ...rn Income Levli n-hr fr epetpt of theIr rospec fiwa populcinona .- Ioanuctao-urIpaIpuhhtc oneedoe noe nnmr han 200 --ar fcooh.ue my he Oeelttoorc-nco ry ra _1ne ie derio_d fec. the roraI ioed.red mbennihn reoalarteof nh,t hoo... menta etasloe itnbadlootm..otforhiah-roa of lirttgbaIehe-bra.- _lt.g.~~~~~ijlhi ':b 1,1~~~~taimotad IonolntlwAbeir Poet orm adIamef - oha dc tot oora no epcndadoy......tIIo...o pert of nOr day So ftobtg the poor'.I.t Nurbar of peoplo r -., -nbac, adrurl1) terod bytorc dlepoal u theob ectnad dipoo. with- P Itohib tetet,o uomarn aud omate1-wtsr bymor-rn efnn ort. ea of pit prioiee cod aicic Icnomi cod onlal Nate Dioletam lao loenallsnlona. torwottir ~~~Aelyata. mod PoenoaDaparmamt di, :.1,% -Ill, I .... ti"hg hy.i- M~~~~~~~~Ny 10981 foonianio ran fhrsoioo - P Pcaoododdbtibcfyonoegpe-  ANNEX 1 Page 4 of 4 COUNTRY DATA - SOLOMON ISLANDS AREA POPULATION DENSITY (1980) 27,556 sq km 229,000 (1980) 8.3 per sq km Rate of Growth: 3.4% (from 1970 to 1976) POPULATION CHARACTERISTICS (1976) HEALTH (1979) Crude birth rate (per 1,000) 44.6 Population per physician 7,373 Crude death rate (per 1,000) 11.7 Population per hospital bed 330 Infant mortality (per 1,000 live births) 78 /a ACCESS TO PIPED WATER (1976) - ACCESS TO ELECTRICITY (1976) X of population - uirban 93% % of population - urban 80% - rural 24% /b - rural EDUCATION Adult literacy rate (1970) 9% Primary school enrollment ratio (1978) 70% GNP PER CAPITA IN 1980: USS460 /c GROSS NATIONAL PRODUCT IN 1977 GOVERNMENT FINANCE Central Government SI$ Mln. % GDP US$ Mln. % 1979 1979 1977-79 GNP at market prices 76.4 100.0 Current receipts 19.3 19.1 17.4 Gross domestic investment 10.6 13.9 Current expenditure 20.1 19.9 20.2 Gross domestic saving 6.5 8.5 Current deficit 0.8 0.8 2.8 Exports of goods, NFS 34.4 45.0 Development expenditure 14.2 14.0 12.4 Imports of goods, NFS 38.5 50.4 External assistance and other (net) 15.0 14.8 15.2 MONEY, CREDIT AND PRICES 1974 1975 1976 1977 1978 1979 1980 - ------- (Millions SI$ outstanding at end perriod) -------- Money and quasi-money n.a. n.a. n.a. 20.4 28.8 42.8 37.7 Rank credit to public and private sectors /d 5.4 5.3 5.1 5.9 5.7 14.2 23.7 (Percentages or index numbers) Consumer price index (1970=100) 136.8 150.6 157.1 170.3 189.9 205.0 232.0 Annual percentage changes in: Consumer price index 18.q 10.1 4.3 8.4 11.5 8.0 13.2 Rank credit to public and private sectors /d n.a. -1.9 -3.8 15.7 -3.4 149.1 66.9 BALANCE OF PAYMENTS 1977 1q78 1979 1980 /e MERCHANDISE EXPORTS (AVERAGE 1978-80) (US$ Mln.) US$ Mln. % Exports of goods, NFS 36.0 40.2 74.7 85.7 Imports of goods, NFS 39.9 52.4 78.4 102.4 Fish 18.7 31.5 Timber 14.5 24.4 Balance on goods and NFS -3.9 -12.2 -3.7 -16.7 Copra 13.8 23.2 Palm oil 7.0 11.8 Investment income -3.3 -3.4 -4.7 -15.0 Other 5.4 9.1 Current transfers 12.9 20.2 19.8 19.9 Total 59.4 100.0 Balance on current account 5.7 4.6 11.4 -11.8 EXTERNAL DEBT, DECEMBER 1979 US$ Mln. Nonmonetary capital (net) 7.3 6.2 6.3 3.1 Other (net) -6.2 3.5 -10.3 -1.2 Public debt 3.6 Overall balance 6.8 14.3 7.4 -9.9 DEBT SERVICE RATIO FOR 1979 Lg % Increase in official reserves - 27.8 8.2 -7.1 Official reserves at end of year /f - 27.8 36.0 28.9 Public debt 0.03 RATE OF EXCHANGE IBRI/IDA LENDING, JUNE 1981 IDA (US$ million) 1974 1975 1976 1977 1978 1979 1980 Outstanding and disbursed - SI$1.(O = US$ 1.4408 1.3102 1.2252 1.1090 1.1447 1.1534 1.2096 Undisbursed 1.5 US$1.00 = SI$ 0.6941 0.7632 0.8162 0.9017 0.8736 0.8670 0.8267 Outstanding, incl. undisbursed 1.5 /a First births only. 7-; Access to potable water supply. 7c Calculated by the same conversion technique as the World Bank Atlas. All other conversions to dollars in this table are at the average exchange rate prevailing during the period covered. /d Mostly private. 7e Preliminary. 7?l With the Australian dollar circulating as the domestic currency, the country held no official external reserves prior to 1978. Lg Ratio of debt service to exports of goods and nonfactor services. June 22, 1981  -18- ANNEX II STATUS OF BANK GROUP OPERATIONS IN SOLOMON ISLANDS A. Statement of Bank Loans (none) and IDA Credits (as of September 30, 1981) Credit No. Year Borrower Purpose Amount Undisbursed 1115-SOL 1981 Solomon Island Development $1.5 million $1.5 million Government Bank B. Statement of IFC Investments None. C. Projects in Execution /1 Credit No. 1115: Development Bank of Solomon Islands; US$1.5 million Credit of April 30, 1981; Effective Date: July 29, 1981; Closing Date: June 30, 1985. This is part of a US$3.5 million credit package to finance the operation of the DBSI for investments in all sectors of the economy for the period 1981-82. The ADB is the lead cofinancier for this operation. Their US$2.0 million credit became effective on May 21, 1981 and disbursements from their credit have commenced. DBSI operations are proceeding approxi- mately as planned and disbursement requests for the IDA Credit are expected to commence soon. /1 These notes are designed to inform the Executive Directors regarding the progress of projects in execution, and in particular to report any problems which are being encountered and the action being taken to remedy them. They should be read in this sense, and with the under- standing that they do not purport to present a balanced evaluation of strengths and weaknesses in project execution.  -19- ANNEX III SOLOMON ISLANDS PRIMARY EDUCATION PROJECT SUPPLEMENTARY PROJECT DATA SHEET Section I: Timetable of Key Events (a) Time taken by the country to prepare the project: August 1980-March 1981 (b) The agency which has prepared the project: MET, CPO with IDA assistance (c) Date of first presentation to IDA: February 1980 (d) Date of departure of Appraisal Mission: March 26, 1981 (e) Date of completion of IDA negotiations: January 13, 1982 (f) Planned date of effectiveness: July 2, 1982 Section II: Special IDA Implementation Actions None Section III: Special Conditions (a) The Government will by4December 1982 prepare a plan to discourage alternate year intakes and promote multi-grade teaching (para. 25); (b) Project financed building materials would only be supplied to communities that provide suitable school sites and declare them- selves willing to erect and maintain the schools and provide teacher housing (para. 29); (c) MET will by December 1982 prepare a plan for improving SITC's selection policies and procedures to ensure that MET's enrollment targets are met (para. 30).   INN' ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ . sis' Ii7' 555 oN '55' 567- 1i' iNE ~~~~~ NESS~~~~~~~~UN.sur A NEW GU E A P Aifc Ocm EA A NEW GUiNEA BOUGAINiVILLE c kjit > % 5z8N5X N*5,l7 -r_ALIAi NW , G N I LAN DS CfR/I