Zambia - Third Education Project

Document of The World Bank FOR OFFICIAL USE ONLY Repwrt No. 5551 PROJECT COMPLETION REPORT ZAMBIA - THIRD EDUCATION PROJECT (LO.AN 900-ZA) March 27, 1985 Edticatinn and Mannowpr Development Division Eastern and Souithern Africa Regional Office nThis document bas * restricted distribution and may be used by recipients only in the performnce of their official duties Its contents may not otherwise be dilclosed without World Bank authorization.  FOR OMCIAL USE ONLY PRW ECT COMPLETION MEPOMK ZAMBIA -THIkW EDUCATION PR(JECT GLOSSAIRY CSTI Central Supply and Tender Board ENlS Enrolled Nurses and Midwives School ESC Educational Services Center FI's Farm Institute kINDP First National Development Plan FTC's Farmer Training Center GoZ Government of the lepublic of Zambia HSTC health Services Training School HUE hinistry of Education NPTW Ministry of Power, Transport anci Wcrks NHA hational housing Authority NOR") Norwegian Agency for InteraLational vevelopment PIU Project Implementation Unit SAGS School of Agricultural Science SIDA Swedish International Development Authority SYDP Second Year Development Plan TTC's Teacher Training College UNYA University of Zambia First Education Project (Loan 592-Z&) Second Education Project kLoan 645-ZA) Third Education Project (Loan 900-ZA) k'ourth Education Project (Loan 135b-ZA) Fifth Education Project (Creait LZ51-Za) Lusaka Sites & Services Projecc (Loan 1057-ZA) IThis document has a restricted distribution and may be used by reipients only in the pformance of their ofiia duties.ts contents may not otherwise be disclosed without Word Bank authorization.  ZAMbIA - THIRD EDUCATION PROJECT (LOAN 900-ZA) COMPLETION REPORT TAbLE OF CONTENTS Page No. PREFACE i KEY PROJECT DATA ii HIGHLIGHTS ix I. SUNMARY AND RECONNENDAXIONS Project Objectives .................................. I Project Content ................ ...................... I Project Implementation .................*............. 1 Project Operating Outcome ..... ....... ................ 3 Recommendations ........................... --...... 4 Lessons Learned .................... ...... 5 II. INTRODUCTION ............................. . ...... 6 II. PROJECT BACKGROUND ................. ... Socio Economic Setting ...... ................. 7 The Education Sector ...... ........ 8..........*. 8 Project Identification ..*......*******.***....*... 9 Project Objectives .......... 0 **e***............... 9 Project Content ............................. *....... 9 Amendments to the Project .......................... 10 !V. PROJECT IMPLENENTATION Loan Effectiveness .......**... * .* *...................... 10 Project Management ... *............*.* ..... *......... 10 Physical Implementation ..... ......................... 13 Technical Assistance ...... ...... .................... 18 Bank Group Performance ...... ......................... 19  Page NO. V. PROJECT COSTS Capital Costs ................................ .***.* 19 Capital Cost and Financing... ......................... 20 Area and Cost Per Student Place ...................... 23 Water Supply and Sewer Treatment, Electricity, Siteworks and Teaching and Communal Buildings, Boarding and Housing ............................... 24 Disbursements ...................................... 25 VI. PROJECT OPERATING OUTCOMIE Medical Training Institutions ......... ............... 25 University School of Agricultural Sciences ........... 27 Farm Institutes (FIs) Farmers Training Centers (FTCs) and Mobile Training Units ... ........................ 27 Educational Services Center .. .................. ..... 28 Secondary Schools and Teacher Training Colleges ...... 29 Primary Schools and Maintenance Program ................. 29 Educational Outcome and Conclusions .................... 30 ANNEXES 1. Implementation Schedule, Comparing Planned with Actual Implementation 2. Provision of Technical Assistance 3. Total Project Cost of Physical Facilities in Kwacha and US Dollars in 000's 4. Places, Units and Areas of Physi cal Facilities 5. (1) Farmers' Training Centers, Schedule of Facilities Provided (2) Farmers' Institutes, Schedule of Facilities Provided (3-5) Secondary Schools, Schedule of Facilities Provided (6) Teacher Training Colleges, Schedule of Facilities Provided  PROJECT COMPLETION REPORT ZAMBIA - THIRD EDUCATION PROJECT (LOAN 900-ZA) PREFACE This is a project completion report (PCR) on the Third Education Project in Zambia, for which Loan 900-ZA was signed on June 6, 1973 for US$33.0 million equivalent. Subsequently, the Kingdom of Norway provided US$11.0 million on a grant basis to the Government of Zambia and the Bank loan was reduced to US$22.0 million. The grant was administered by the Bank. The loan and grant were completely disbursed in November 1983. The project completion report was prepared by Bank Group Staff. The valuable assistance provided by the Government of Zambia, in particular the Project Implementation Unit staff, during the preparation of this report is gratefully acknowledged. Following a review of the PCR by OED staff, it was decided not to audit the project and the PCR was sent for comment to the Borrower in December 1984. No comments have been received.  - ii - ZAMBIA - THIRD EDUCATION PROJECT LOAN 900-ZA COMPLETION REPORT KEY PROJECT DATA APPRAISAL 1. KEY DATA ESTIMATE ACTIJAL Total Project Cost (US$ Million): 40.08 39.51 Cost Underrun - 1z Disbursed, September 30, 1979 1/ 33.00 22.46 Disbursed, March 31, 1980 2/ - 23.60 Disbursed, October 2, 19803/ - 24.00 Disbursed 41 33.00 33.00 Date Original Physical Components completed 12/78 9/79 Time Overrun - 9 MONTHS Date Additional Physical Components completed 3/83 3/83 Number of Months since Loan signing 66 117 Proportion of Time Overrun Z - 77 Institutional Performance - Satisfactory Operational Outcome - Satisfactory Cumulative Estimated and Actual Disbursements (US$ Million) FY74 FY75 FY76 FY77 FY78 FY79 FY80 FY81 FY82 FY83 FY84 (a) Estimated at Appraisal 1.0 6.0 15.1 25.1 31.9 32.7 33.0 (b) Actual Disbursements 1.2 4.3 12.4 17.1 22.4 23.7 24.0 25.0 30.6 33.0 (c) (b) as Z of (a) 20 28 49 54 69 72 73 76 93 1/ Original Closing Date. 2/ On September 27, 1977 Closing Date postponed to March 31, 1980. 31 On October 2, 1980 additional items included in the Project and Closing Date postponed to March 31, 1983. 4/ Last disbursement November 9, 1983.  - :iii - 2. OTRER PROJECT DATA Original Actual or Item Plan Revisions Est. Actual First Mentioned in Files - 02/71 Government's Application - 07/72 Appraisal Mission - - 10-11/72 Negotiations 04/23/73 - 04/27/73 Board Approval 05/31/73 - 05/31/73 Loan Agreement Date 06/06/73 - 06/06/73 Agreement between Kingdom of Norway and IBRD and IDA 1/ 12/20/73 - 12/20/73 Effectiveness Date 08/09/73 - 08/09/73 Closing Date 09/30/79 First 03/31/80 Second 03/31/83 03/31/83 Amendments to Loan Agreement (i) Reallocation and establishment of new Category VI -- Imported Materials - 06/18/76 (ii) Closing Date postponed to March 31, 1980 09/27/77 (iii) Additional items added to the Project and Closing Date postponed to March 31, 1983 10/02/8 0 Borrower Republic of Zambia Executing Agency Ministry of Power Transport and Works Ministry of Education Fiscal Year of Borrower January - December Follow on Project Name Fourth Educ.Proj Loan 1356-ZA US/13.3 million Fifth Educ. Proj. Credit 1251-ZA US$25.0 million 1/ US$ 11.0 million (or 1/3 of actually disbursed proceeds of the loan) Grant Participation administered by the Bank.  - iv- 3. &ISSIboi DATA SENT kUNTHI NO. OF NO. OF MAN- DATE 0F iISSIUN BY YEAR WEEKS PERSONS WEhkS REPORT Identification FAO/Bank 8/1971 3.0 7 21 12/30/71 Preparation UNESCO/Bank/FA0 6/7/72 4.5 4 18 8/16/72 Appraisal Bank 10-11/72 4.0 6 24 5/09/73 Supervision I i/ 7/1973 2.1 2 (A,AG) 4.2 9/24/73 2 2/ 1/1974 2.0 1 (A) 2.0 3/15174 3 3/ 6-7/74 3.3 2 (A,GE) 6.6 9/18/74 4 4/ 3/1975 2.0 2 (A,AG) 4.0 5/09/75 5 5/ 7/1975 1.4 1 (E) 1.4 8/20/75 - 6 6/ 10/1975 1.4 3 (A,AG,GE) 4.2 10/31/75 7 7/ 3-4/1976 3.4 2 (A,AG) 6.8 5/14/76 I/ Comblned with supervision of First and Second Education Projects, Loans 592-ZA and 645-ZA. Z/ As above. / As above. 41 Combined with supervision of Loans 592-ZA and 645-ZA and with the supervision of the educational component - primary schools - of the Lusaka Squatters Upgrading and Site and Services Project Loan 1057-ZA. 5/ Division chief's review of principal aspects of implementation ot the three ongoing education projects and part of reconnaissance mission for a Fourth Education Project. b/ Combined with supervision of Loans 592-ZA and 64*-Z&, and the educatioual component of Loan 1057-ZA. 71 Combined with supervision of Loans 592-ZA and 645-ZA, and the educational component of Loan 1U57-ZA, and appralsal of a Proposed Fourth Education Project.  - V 3. kISSION DATA (CONTINUED) SENT tINT1I NO. OF NO. OF MNa- DATE OF MISSIUL BY YEARt WEEKS PERSONS WEEKS REPORT Supervislon b 8/ 10/1976 2.8 2 (A,E,CPS) 5.6 11/16/76 9 9/ .5-6/1977 3.8 3 (A,GEHE) 11.4 7/14/77 - 10 10/ 11-12/1977 2.6 2 (A,TE) 5.2 2/13/78 - 11 ill 5/1978 2.4 3 (A,TE,E) 7.2 6126/78 12 12/ 1-2/1979 2.4 2 (A,TE) 4.8 3/12/19 13 13/ 9/79 1.8 3 (A,TE,E) 5.4 10/30/79 14 14/ 3/80 1.8 4 (A,AG,TE,HE) 7.2 4/15/80 8/ As for '6 above. 9/ As for -6 above and Loan 1356-ZA, and identification of a Fifth Mducatlon Project. 10/ As for '9 above, and a review of the training component of the Third Highway Project ana discussions with the Government on timing of a Possible Yifth Education Project. H1/ Combined with supervision of First, Second and Fourth Education Projects Loans 592-ZA, 645-ZA and 1356-ZA and the educational component of Loan 1057-ZA. 12/ Combined with supervision of the Fourth Education Project Loan 135b-ZA and the educational component - prliary schools - of the Lusaka Squatter Upgradlng and Site and Services Project Loan 1057-ZA, and combined with a completion mission of the First education Project Loan 592-ZA. Regardlng the Second Education Project Loan 645-ZA a Project Completion Report aated Nay 7, 1979 was preparea following a completion mission in July-August 1978. 13/ Combined with supervision of Loan 1356-eA and educational component of Loan 1057-ZA projects, and discusions with the Government concerning a proposed Fifth Education Project. 14/ As for -13" above.  - vi - 3. MISSION DATA (CONTINUED) SENT MONTH/ NO. OF NO. OF MAN- DATE OF MISSION BY YEAR WEEKS PERSONS WEEKS MEPOIT Supervision 15 15/ - 10/80 2.0 3 (A,AGOTE) 6.0 12/01/80 16 16/ 3/81 2.4 4 (A,GE,TE,L) 9.6 4/29/b1 17 17/ l0-l/b1 1.4 2 (A,E) 2.8 12/28/81 18 i8/ " 9-10/82 2.2 3 (A,Th,E) b.b 11/18/82 Completion 19 19/ 4-5/83 1.7 3 (A,TE,E) 5.1 - Sub-Total 42.9 17A,6AG,4GE, 106.6 UE,8TE,IHE, lCPS Number of Supervision Missions - 18 Maximum Interval Between Missions - 43 weeks (10 months) --inimum Interval Between Missions - 13 weeks (3 months) Average Interval between Missions - 6.5 months 151 Combined with supervision of Loan 1356-ZA and discussion with the Goverment on the forthcoming Fifth Education Project. Supervision included the educational component -- primary schools --from the Loan 1057-ZA project included in the Project on October 2, 198U, as well as supervision of tne maintenance program for seconaary schools also included in the Project. 16/ Combined with supervision of Loan 1356-ZA ana appraisal of a proposed Fitth Education Project. 17/ Combined with supervision of Loan 1356-ZA. 18/ Combined with supervision of Fourth and Fifth Education Projects Loan 1356-ZA and Credit 1251-Za. 19/ Combined with supervision of Credit 1251-ZA and data collection for the completion report of Loan 1356-ZA. LEGEND: A - Architect AG - Agricultural Educator E - Economist GE - General Educator HE - Health Educator TE - Tecniical Educator CPS - Central Projects Staff  - vii - 4. COUNTKY EXCHIGE IATMS Name of Crrency Kwacha (K) Year Appraisal year average (1973) : US$ 1.00 - K 0.64 Intervening years average (1976) : US$ 1.00 - K 0.79 (1977) : US$ 1.OU - K 0.78 (1978) : US$ 1.00 - K 0.82 (1979) : USM 1.01) - K U.77 (1980) : US$ 1.00 - K 0.80 (1981) : US 1.U - K .u80 (1982) : US* 1.00 - K 0.83 Completion year average (1963) : US$ 1.00 - K 1.23  - viii - ALLOUCAT LUN OF LUAN PAOCEEDS Usg Original Revised Actual Category Allocation Allocation Disbursements (Oct. 1980) I. Civil works including related professional services 16,UOU,OU 23,UUU,U0O 26,003,771 II. Furniture YUU,000 9UO,UOU 826,176 III. Equipment, books and livestock 3,300,0Ou 4,200,OUU 4,965,567 IV. Technical Assistance 2,600,OOU l00,UOO 30,7U1 V. Project Unit expenses and locally procured transportation for Categories II and III 500,000 900,00U 956,85b VI. Imported Construction ?laterial 50U,00U 2,100,000 216,927 VllI. Unallocated 9,50U,OOU 1,00 ,Uou - Total 33,U00,000 33,0UU0,000 33, OU,OU0  -ix - PROJECT COMPLETION REPORT zAMBIA - THiRD EDUCATION PROJECT (LOAN 900-ZA) SIGHLIGHETS A loan of US$33.0 million equivalent to assist in the financing of the Third Education Project in Zambia was approved and signed on June 6, 1973. Subsequently, the Kingdom of Norway provided US$11.0 million on a grant basis to the Government of Zambia and the Bank loan was reduced to US$22.0 million. The grant was administered by the Bank. Total project costs were estimated at US$40.08 million. The project originally included the construction of new facilities for, extensions to and/or equipment for twelve medical training institutions, a University School of Agricultural Sciences seven farmers training centers, three farm institutes and two mobile training units; an educational services center; and sixty-one secondary schools and four teacher training colleges. In addition about 115 man-years of technical assistance plus fellowships were provided (para. 3.07). The project has been completed after undergoing several changes during the implementation process in 1976 and a significant modification in 1980 (para. 3.08). The Loan and grant were fully disbursed. Total project cost amounted to US$39.5 million which is one percent below the appraisai estimate of US$40.1 million (para. 5.01). The implementation of the original appraised project took six years versus the expected five years and four months. The closing date was postponed twice with the second closing date postponed to March 1983 including a modification to the scope of the project to allow for the utilization of undisbursed funds from savings largely from technical assistance and civil works (para. 3.08). The project content was amended in October 1980 and twelve primary schools and a maintenance program for secondary schools were included (paras. 4.27 and 4.28). From signing, the total implementation period was slightly less than 10 years. The experience of implementing this project points out the importance of the following matters: (a) although the original agreed project was completed only eight months beyond the appraisal schedule, careful review is needed when undertaking complex projects of this size and the resulting difficulties encountered in supervision and the coordination of unrelated subcomponents (para. 4.31). (b) the attention paid during the project implementation period of the primary school component to budgetary implications to ensure that adequate counterpart funds are available during the investment period and that sufficient operating funds are voted to make proper use of facilities (para. 6.13).  -x- (c) the need to reassess the Government's agricultural training approach and rural agricultural policy during the project implementation period in view of changing policy and country conditions. The farmer training centers and farmer institutes have not met with success because of policy changes made during the implementation period and due to a lack of operating expenditures and weak management of this component (paras. 6.05 and 6.06).  PROJECT COMPLETION REPORT ZAMBIA - THIRD EDUCATION PROJECT (LOAN 900-ZA) I. SUMMARY AND RECONMEkDATIONS Project Objectives 1.01 The principal objectives of the Third Education Project were to improve agricultural and medical training by eliminating gaps in certain levels of training; to assist the Borrowers's plans for rural development by strengthening farmer training programs; to integrate and consolidate a number of educational services responsible for education including curriculum development, audio visual aids, library, correspondence courses and printing; provide additional facilities to a nomber of secondary schools and teacher training colleges being constructed under the First Education project; to provide technical assistance for administration and teaching in project institutions, evaluation of farmer training programs, University planning and project management. Project Content 1.02 The project as appraised in October 1972 consisted of the construction of new facilities for, extensions to and/or equipment for the following: (a) 12 medical training institutions with 750 additional places; (b) a School of Agricultural Sciences (SAGS) (University of Zambia) for 170 students; (c) seven farmer training centers, three farm institutes for about 224 places and two mobile training units; (d) an Educational Services Center; (e) 61 secondary schools including 520 boarding places and 300 staff houses; (f) four teacher training colleges with 96 additional student places and 28 staff houses. The project also included 115 man-years of technical assistance specialists for planning, administration, and teaching, plus fellowships. An amendment to the agreement in October 1980 provided for 12 primary schools (of which 5 were constructed due to lack of local counterpart funds) and a maintenance program for secondary schools. Project Implementation 1.03 The original project became effective in August 1973, with a Bank loan of US$33.0 million. Subsequently, the Norwegian Government entered into a special arrangement with the Bank and the Zambian Government, whereby Norway agreed to provide US$11.0 million as a grant to Zambia, with the Norwegian funds to be disbursed pro rata as the Bank loan was drawn down and administered by the Bank. The project was executed under the direction of three Project Implementation Units, each responsible for specific parts of the project. The Project Implementation Unit I (PIU I) established in the Ministry of Education was responsible for the execution of the components under secondary and teacher education; PIU II, established at the University of Zambia (UNZA), which was in essence the  2 - office of the university architect responsible for all UNZA campus development, was responsible for the University School of Agricultural Sciences (SAGS); and PIU III, a new unit established under the third project at the Building Branch of the Ministry of Power, Transport and Works (M-1T), was responsible for the remaining comonents. The PIU I carried out its functions smoothly to completion. I PIU II suffered from discontinuity of service of its staff and the lack of key staff and in name was phased out in early 1980. PIU III was, during the early stages of implementation, assisted by PIU I. The director was in post from the outset but without key supporting staff; the Government requested and NORA) agreed to assist in providing key staff. Except for the first six months when the unit was short of staff, its performance was consistently good. The NORAD assistance apart from providing funds, recruited and maintained competent, qualified professionals for all key posts. The implementation of the original project took six years and a half versus the expected six years. The closing date was postponed six months from Septenber 30, 1979 to March 31, 1980 to allow receipt of final accounts. In October 1980, the closing date was postponed to MIarch 31, 1983 to allow the utilization of savings largely from technical assistance and civil works. 2/ 1.04 The project was amended in October 1980 and 12 primary schools and a maintenance program for secondary schools were included. As implemented, the final cost of the project was US$39.5 million, one percent lower than expected, with the Bank Group financing 82X and Government 18%. In terms of specific categories, civil works, construction materials, and PIU expenses had cost overruns mainly due to the primary schools being 402 larger than originally planned (due to change in design) and the implementation period being extended 30 months. The costs for the maintenance program were originally targetted at repairing about 61 schools. The limit of the total cost of the program was restricted mainly by the amount of counterpart funds provided by the Government and the amount of imported building materials and components to be procured within the 30 months. This flexibility resulted in a -cost overrun of 107% (para. 5.02). The shortfall of 992 of the cost of technical assistance was due to donors providing funds for these services (Annex 2). The cost of professional services, 53% lower than estimated at appraisal was partly due to the extensive use of existing standardized designs. The deletion of the SAGS component meant savings in the project (para. 4.03). Additional savings of 52% and 63% in the cost of furniture and equipment respectively were due partly to timely procurement. 1/ PIU I was phased out between September 30, 1979 and October 2, 1980, with some staff transferred to PIU III. 2/ The deletion of the School of Agricultural Sciences and a more rapid start of the original components resulting in savings in price contingencies.  -3- Project Operating Outcome 1.05 Standardized designs were used wherever possible for all project components. In general, the buildings are comfortable and easy to maintain. Designs for infrastructure specifically, the provision of water, sewerage, electricity and general site works, which were a major part of the works at farmer training centers, farm institutes, secondary schools and teacher training colleges were satisfactory. The objective of the medical education component was to assist in increasing the nubers of trained health manpower. With the exception of one secondary school and two rural health training centers, all institutions are operational and most are being fully utilized. New and extended facilities were provided, the output of trained health manpower has been increased and technical assistance requirements to assist administration and program development were, in most cases, adequately met by che Government. The Farm Institutes and Farmer Training Centers included in the project provided additional student and boarding places and did not differ from the appraisal report in either nuuier or area. However, continued lack of sufficient recurrent funds to carry out the programs at the institutes and centers resulted in the training institutions operating at about half capacity. The Government assurance that it would endeavor to achieve a 50% participation rate for women was not achieved. The Educational Services Center started on schedule and was completed as scheduled and is operational. However, the efficiency and capacity of the Center is handicapped by organizational and administrative problems. The project also provided additional facilities in term of water supply, housing, workshop facilities and hostels for 61 secondary schools and 4 teacher training colleges being financed under the Bank's First Education Project (Loan 592-ZA). Many of the facilities were originally intended to be financed from Government funds but the fall in the price of copper changed the financial situation and caused the Government to seek funds from the Bank. The difference in cost of civil works between appraisal and the actual was due to discovering that the buildings were in worse condition than originally anticipated and therefore requiring additional renovation. With the exception of a study concerning farmer training programs, the technical assistance provided under the project was not utilized; the Government preferring to obtain it through unilateral or bilateral assistance or by engaging local specialists. Architectural and engineering assistance was in place from the start of implementation and management assistance in place by early 1974, both provided by NORAD. Specialists for the health institutions and UNZA were in post ibout a year later than scheduled. Due to the deletion of the SAGS and the savings under technical assistance, the loan was amended in October 1980 and twelve primary schools and a maintenance program for secondary schools were included. Due to the lack of Government counterpart funds only five schools were constructed, however, student places at each school were increased due to design change and a total number of 3,080 places were provided, about 900 more than envisaged at appraisal. The maintenance program for the secondary schools was initiated based on a NORAD report  - 4 - that schools included in the First Education Project, inter alios, were falling into disrepair as the Government was short of funds to procure maintenance materials. NORAD provided the technical assistance personnel on a grant basis and the program progressed well and was efficiently implemented. A total of 61 schools were to be repaired in two phases, the first phase under the Third Education Project and the second which is continuing under the Fifth Education Project. About 40Z of the total target or 24 schools was reached. 1.06 With regard to the educational outcome of the project most of the components were completed satisfactorily adding new student/boarding/ teacher facilities to existing institutions resultig In increased student enrollment in the education system. For example, secondary school enrollment increased by about 20% during the period 1976 to 1980. Additional teachers have been trained through the teacher training colleges included in the project. New primary schools have contributed to substantially higher enrollment particularly in the urban areas. The new Education Services Center has contributed to imp-oved: (a) curricula for all general and technical education levels; (b) audio visual aids. production and distribution; (c) examination, testing and evaluation; and (d) library services. As the Center is relatively new naturally certain organizational and coordinating aspects of its operations need improvement. Education in the medical and health field has been improved through new and improved institutions although there is still a lack of adequately trained instructors and supervisors. The secondary school maintenance program has been very successful in improving institutions and facilities to enhance the quality and efficiency of secondary education. The least successful component is the agricultural education components, where the School of Agricultural Science (SAGS) was deleted from the project as a result of a change in higher education planning and policy (a science laboratory facility at the UNZA was added under the Fourth Education Project and agricultural training continued at the UNZA). Likewise the farmers institutes and training centers are severely underutilized because of lack of operating funds, change of policy and also decreasing commitment on the part of the Government to this type of training. 1.07 An overall assessment of the total project outcome is a difficult task because of the diversified and to some extent nonrelated project content. No doubt some project parts have been more successful than others but a general problem which has affected mst components has been the lack of Government capital and recurrent funds. A final conclusion would be that the project was successful with the exception of the agricultural education components. Recommendations 1.08 This Third Bank financed Education Project spans a period of twelve years from the identification stage in 1971 to a final closing in March 1983. During the implementation of this project, another new Bank  - 5 - financed education project was started (Credit 1251-ZA) and one (Loan 1356-ZA) completed. The size and complexity of the Third Project and the ensuing financial constraints in the country were the major factors in the difficulties experienced during the implementation period. More attention could have been paid during the project period to its budgetary implications to ensure that adequate counterpart funds were available during the investment period and that sufficient operating funds were voted to maka r roper use of new facilities. The original project was signed in June 1973 and the legal agreement did not include a covenant for the preparation of an evaluation report of the project. Several requests and draft outlines were discussed with GOZ during supervision between 1980-83 but no report was received. It would have been useful if the 1980 amendment to the loan agreement included this requirement. 1.09 Technical assistance was not used since the Government was able to fill the positions (in a timely manner) through grant arrangements with other donors. However, no specific reason was ascertained for the non-use of the overseas fellowship funds, although there still remains an acute shortage of qualified Zambian educators in most fields. The reluctance to use these funds indicates a need for better coordination and planning within Government and better supervision by the Bank. In future projects of this nature, it is recommended that: (a) emphasis be placed on the provision of fellowships to complement technical assistance: (b) more careful attention should be paid to studies ascertaining required numbers and categories of staff required for any training facility to be constructed; and (c) the funds be tied to a fixed implementation schedule which would see those staff in place before the infrastructure is completed. 1.10 With regard to the agricultural education component similar constraints as discussed above were experienced. In particular, the recurrent funds constraints seriously hampered the operation of the agricultural institutions in terms of lower student enrollment than expected and general shortage of funds for operating the institutions. Also, during the implementation period the Goverment policy with regard to agricultural training changed and placed emphasis on training on farm sites rather than institutional training. It appears that some of these problems could have been avoided if the Government's agricultural training approach anc rural agricultural policy had been studied more in depth during project preparation along with an assessment of government's commitment to this type of training. During implementation it might have been worthwhile also to consider modifying this component to better suit the new conditions. Lessons Learned 1.11 The project encompassed a great variety of components under different ministries and agencies resulting in difficulties in supervising and coordinating project activities both on the side of the Bank and the Government. In addition, there was a wide geographic spread of project  -6- institutions adding to previously mentioned constraints. Government coordination was consequently by and large lacking resulting in non-utilization of funds for technical assistance and fellowships. Government counterpart funds and funds to cover recurrent costs were not sufficient and as a result certain project institutions were never established and others seriously underutilized lacking funding for running costs. Also the sudden change in Government planning and policy with regard to higher education contributed to the deletion of SAGS from the project. The project was prepared in 1971 when sector work, did not form the major basis for project lending; consequently, this project covered a great variety of non-related components. Obviously, chances of greater success for this project would have increased if it had been prepared with a view to better reach educational objectives in a more coordinated manner and more attention paid to Government's ability to finance their share of operating costs. During the implementation of the project there has not been much overall coordination and follow up of the education outcome In the numerous institutions assisted. The addition of &n educationist to the PIU team could have had a positive impact on project results in this respect. 1.12 The introduction of the maintenance program for secondary schools was a positive experience whereby the GOZ gradually realized the importance of using scarce funds for rehabilitation rather than investing in new facilities. (This program is now continuing under the Fifth Education Project. It might have been more productive to introduce "maintenance" of the entire educational infrastructure, not only buildings but provision of textbooks, supervision, management and cost reduction - until the country shows signs of recovery. II. INTRODUCTION 2.01 This completion report is based on the findings of a mission by Ms. R. Brandenburg (economist) and MIessrs. J. Segerstrom (technical educator) and C. Hammerschmidt (architect, consultant) which was in Zambia May 1983. The mission visited three of the five primary schools, several farm institutes and farmer training centers and several secondary schools, medical facilities, the Educational Services Center and various Ministries related to the project. The mission determined how the project was executed as compared with appraisal estimates and analyzed the impact on education objectives and implementation of project institutions. 2.02 This report i3 based on: (a) information obtained from records, studies and data in Washington, particularly supervision and progress reports  -7- and from the Project Implementation Units (PIU), consultants' reports and other departments and ministries of the Government of the Republic of Zambia, (b) visits to project institutionsi and (c) discussions with staff of the PIU and other Government officials, principals, staff and students of project inz,titutioas and Bank staff familiar with the project. III. PKOJECT BACKG&OUND Socio-Economic Setting 3.01 At the time of appraisal there were great disparities in the degree of development between tihe industrial and traditional rural sectors. The increasing copper prices up to 1970 encouraged the Government to engage in substantial aevelopment schemes including projects which provided for increases in enrollments in all types of education. 3.02 The Government's Firsr (196b-1970) and Second (1972-Y7Wb) National Development Plans (F1DP and SNDP) aimed at spreading the benefits of development more evenly by (a) rapidly raising the general level ot education and developing technical, administrative and managerial skills to lessen aependence on expatriates; (b) increasing the productivity of traditional agriculture in areas with sufficient potential; (c) diversifying the economy to make it less dependent on copper; and (d) raising the general level of social welfare. The most efficiently implemented parts of the FNDP and the SNDP were the expansion of education and health facilities. There has been less progress towards achieving other goals of the First and Second National Development Plans. The Third National Development Plan (1979-83) contains the same objectives and little progress has been made in achieving its goals. Progress has been impedea. by the financial and economic crisis which has diverted the attention of policy makers from long-term objectives to dealing with day-to-day emergencies through a series of -stop gap" measures. 3.03 During the large part of project execution (1974-1983), Zambia's econony was in protracted economic depression. Between 1977 and 1980 real GDP declined an average of 2.5X per annum to its lowest level since 1971. The economic difficulties triggered a 40Z fall in the price of copper in 1975 caused a financial crisis in the balance of payments and Government accounts. The contraction of GDP had a severe impact on Government finances. Mineral revenue, which provided about 4UX of ordinary revenue  - 8 - curiag the early 1970s, has been uegligible siace 1975, due to low profitability of the mining companies. Wage increases were held below the cost of living, and recurrent expenditure for operations and maintenance fell in real terms. Defense expenditures and subsidies escalated during this period and added to large recurrent deficits. In January 1976 the Government took a series of austerity measures, including a reduction in recurrent and capital expenditures, increases in custom duties and sales, income taxes ana control over imports and foreign exchange transactions. Nevertheless, zambia's terms of trade have deteriorated steadily since then and by 1982, were 60 percent below the average for the early L9706. In 1962, copper prices reached their lowest level in real terms since the post World War II era. The balance of payments has also been in chronic disequilibrium since 1975, with current accounts deficits averaging b to 10. percent of GIP during most of this period and 20 percent of GDP in 198b/82. Other external factors have also been important causes of Zambia's present economic difficulties. For example, the Government has little or no control on the transport difficulties in neighboring countries on which Zambia is dependent for the movement of foreign trane. In addition, severe droughts required importation of food stuffs. The Education Sector 3.U4 At Independence in 1964, Zambia was one of the african countries least prepared in educational terms. Very few Zambians had completed higher or secondary education or participated in skill training. As a result, Zambia relied almost entirely upon expatriates for preparation ana execution of development programs. It was therefore apparent that national development could be gained only by placing major emphasis on education which consequently received priority in the various Development Plans during the 1964-76 period. In 1975 the Government prepared a dratt education reform proposal which was published in 1978 and expected to be implemented in phases starting at the beginning of the Third National Development Plan (1979-1983). The Plan aims at modifying the existing structure into four stages: a basic education, covering the first nine years of school; a secona stage, covering the present three-year senior secondary cycle; a third stage consisting of the present higher education cycle; and continuing education, including adult literacy and other types of non-formal education. To date, the Plan has nor been implemented in large part due to the recurrent and capital cost implications of the education expansion. The World Bank Group has played a major role in expanding educatioaal facilities in Zambia, including institution building. Five Bank Group-assisted projects have helpc.A Zambia's primary, secondary and commercial, agricultural and technical education. Four projects (including this Third Education, Loan 90U-ZA) have been completed successfully.  -9- Project Identification 3.05 A FAD/Bank mission visited Zambia in August 1971 to discuss education policy with Government and to identify items which could be financed in a proposed Bank project. The objectives of the proposed project would be to assist in achieving goals of the Second Five Year Development Plan concentrating on agricultural education and training at all levels and on technical and health education below university level including technical teacher training. Tne project was subsequently prepared in June 1972 on the basis of a BankIUNESCU/FAO Identification mission ana appraised by a bank mission in October/November 1Y7Z. The project was negotiated April 23-27, 1973 and a loan ot US$33.0 million was approved by the Bank's Boarci of Directors on May 31, 1973. Subsequently, the Kingdom of Norway provided a grant of US11.0 million to the Government (administered by the BanK) and the nank loan was reduced to USS22.0 million. Project Objectives 3.06 The project was aesigned to assist the Government's investment program to meet the manpower requirements of the economy in the late 197U's. It was expected to eliminate gaps in certain areas of agricultural and medical training, strengthen tarmer training programs, bring about economies and improve efficiency by integrating certain educational services and proviae additional facilities for a number of secondary and teacher training colleges. Project Content 3.07 The project as approved inc-luded: (a) -welve medical training institutions with an additional enrollment capacity of 953; 102b additional boardLng places and 41 staft housing units; (b) a University School of Agricultural Sciences for an additional 17U students ana 24 staff housing unitsi (c) the expansion or Improvement of 3 farmer institutes (Fl's) and 7 farmer training centers (FtC's) for an increased enrollment capacity of 224 students, 3b staff housing units, and the provision of 2 mobile training units; (d) a new Educational Services Center (ESC), integrating nine entities in one builaing;  - 10 - (e) the provision of additional facilities to secondary and teacher training colleges assisted under the First Education Project (Loan 592-ZA). Additional facilities including water supply and sewage treatment, housing, additional workshops, classrooms and library extensions, kitchens and dining halls, and boarding places; and (f) technical assistance for 115 man-years for specialists to provide essential staff for University planning, agricultural and medical education and project implementation plus fellowships for Zambian staff. Amendments to the Project 3.08 There were three amendments to the project: (a) the reallocation and establishment of a new Category VI - imported materials (June 18, 1976); This new category was created in order to allow the Bank to make direct payment to overseas suppliers of Imported construction materials on behalf of by the Borrower; (b) the original Closing Date, September 30, 1979, was postponed to March 31, 1980, to permit project accounts to be finalized; and (c) to utilize undisbursed funds, additional items (twelve primary schools and a maintenance program) were added in May 1980 to the project and the Closing Date postponed to March 31, 1983. IV. PROJECT IMPLEMENTATION Loan Etfectiveness 4.01 The Loan Agreement was signed June 6, 1973 and declared effective August 9, 1973,about one month ahead of schedule, following the establishment of the PIU. Project Management 3/ 4.U2 The Project was executed under the direction of three project units, each responsible for specific parts of the project. PIU I, established in the Ministry ot Education (MOE) 4J was responsible for 3/ Ar.nex 1, pages 1-3 shows the projected and actual implementation schedules. 4/ Responsible for implementation of the First Education Project. Responsible for implementation of the Second Education Project.  - 11 - execution of the components under secondary and teacher education; PIU II, at the University of ZaMbia (UNZA)5/, was responsible for the University School of Agricultural Sciences (SAGS); and PIU IlI, a new unit established at the Building Branch of the Ministry of Power, Transport and Works (IMPTW), was responsible for the remaining parts of the Project. 4.03 At the start of implementation PIU b/ was