Barbados - Second Education and Training Project

Documlen of j The World Bank FOR OFmFCIAL USE ONLY Report No. P-4280-BAR REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO BARBADOS FOR A SECOND EDUCATION AND TRAINING PROJECT April 17, 1986 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: Until November 1973 : Eastern Caribbean Dollar (EC$) Since December 1973 Barbados Dollar (BUS$) December 1971 US$1.00 EC$1.975 EC$1.95 = US$0.506 Since July 1Y75 US$1.00 = BDS$2.UO HDS$1.UO = US$U.50 ABBREVIATIONS BCC - Barbados Community College BUS$ - Barbados Dollar .;I:AP - Barbados Institute of Managemeat and Productivity c)XC - Caribbean Examination Council LTVC - Erdiston Teacher Training College Ft'rh - Full Time Equivalent LCB - International Competitive bidding IUB - Inter-Americin Development Bank LCB - Local Competitive Bidding r'mU - Ministry of Education and Culture MOL - Ministry of Labor M4RSU - Manpower Research and Statistics Unit LNTB - National Training Board PIU - Project Implementation Unit SJPP - Samuel Jackman Prescod Polytechnic Sue - Statement of Expenditure TA - Technical Assistance UNESCU/CP - United Nations Educational, Scientific and Cultural Organization/Cooperative Program USAID - United States Agency for International Development UWI - University of the West Indies Government of Barbados Fiscal Year April 1 to March 31  &&.KBADOS FOR OMCIAL USE ONLY SECOND EDUCATION AND TRAINING PROJECT LOAN AND PROJECT SUMMIAY Borrower : Government of barbados Beneficiaries: Ministry of Education and C;itture National Training boara/Mini;try of Labor Training Administration Loan Amount : US$10.O million equivalent Terms : 15 years, including 3 years of grace at the standard variable interest rate. Project The proposed Project would cover 90 percent of the Description : Government's five-year investment plan in the education and training sector and would be financed, on a parallel basis, by the bank and the IoB. The objectives of the proposed Project are to: (1) Improve the quality and cost effectiveness of primary and secondary education by: (a) amalgamating Z1 small, uneconomic primary schools into 10 larger schools to obtain higher student-teacher ratios; (b) upgrading two existing secondary schools, equipping of a third existing secondary school and establishing one new secondary school with 1,,bO student places; (c) providing technical asslstance (44 staff months of fellowships and 3b statt months of specialist services) and training of about 1,500 teachers to improve (i) teaching of reading and writing in primary schools, (ii) textbook procurement and distribution systems, and (iii) testing and measurement practices; and (d) supporting a study to rationalize the teaching of special subjects in secondary schools; (Z) Improve the efficiency, quality, and industrial relevance of technical and vocational training by: (a) expan- ding the operations of the National Training board througn the construction, equipping and furnishing of three new skills training centers and upgrading one existing center; (b) upgrading and expanding of training tacilities at the Samuel Jackman Prescoa Polytechnic and the Barbados Community College and improving efficiency in the use of existing facilities; (c) improving the data processing capability ot the Manpower Research and Statistics Unit; (d) upgrading the training programs ot the Training Administration; and (e) providing technical assistance (39 staff months of specialist services and lb staff months ot fellowships) for the upgrading of course syllabi, improvements in administrative and financial management procedures, strengthening of the industrial advisory committees, industrial job analysis and follow up of on-the-job performance ot graduates. This document has a restricted distribution and may be wed by recipients only in the performance of their offlcial duties Its contents may not otherwise be discksed without World Bank authorization.  -i i- (3) Strengthen the institutional capacity to manage and plan the education and training system by financing: (a) technical assistance (26 staff months of specialist services and 26 staff months of fellowships) and training of 150 managers and 500 school teachers for improvement in (i) education planning and educational management, (ii) budgeting processes, (iii) school supervision practices, (iv) curriculum implementation strategies, and (v) educational materials production; (b) a study on the formulation of measures to achieve cost savings and greater efficiency in the utilization of education facilities and resources, as well as to address the issue of the additional recurrent costs that are expected to be generated under the proposed Project; and (c) the provision of adequate pedagogical and administrative facilities for the Ministry of Education and Culture. Risks: No significant risks are associated with the technical implementation of the proposed Project. There are, however, potential risks: (a) economies in primary and secondary education may not be achieved unless the Government maintains a freeze on the hiring of new teachers in the light of the decreasing population growth rate; and (b) difficulties may be encountered in meeting the incremental recurrent costs of the proposed Project. The latter risk would be minimized by the introduction of cost reduction measures recommended by the study to be financed under the proposed Project, the sharing of expensive facilities among schools and the adoption of measures to rationalize the selection of optional subjects taught in secondary schools. Estimated Cost a/ US$ Million Project Component Local Foreign Total Primary Schools 4.29 3.57 7.86 Secondary Schools 3.51 3.31 6.82 S. J. P. Polytechnic 0.03 0.23 U.26 Barbados Community College 2.14 2.79 4.93 Institutional Strengthening of MOE 1.84 1.82 3.66 NTB Skills Training Centers 1.52 1.76 3.28 Manpower Research Unit U.03 0.09 0.12 Training Administration 0.05 0.18 0.23 Project Implementation Unit 1.82 0.12 1.94 Base Cost (March 1986 Prices) 15.23 13.87 29.10 Physical Contingencies U.84 U.71 1.55 Price Contingencies 4.38 2.67 7.05 Total Project Cost ZU.45 17.25 37.70 aatt- a/ Net of Taxes and Duties estimated at USS3.4 million.  - iii - Financing Plan US* Hillion X of Local Foreign Total Total Government 10.70 0.00 10.70 28.4% IDB b.25 8.75 17.0U 45.1% IBRD 1.50 b.50 1U.00 26.5% Total 20.45 17.25 37.70 lUU.U% ". of Total 54.2% 45.87 1OU.= Disbursements: Bank Fiscal Year (US" Million) 19_6 19t7 1966 1Vb9 1990 1991 1992 1993 Annual 0.15 U.81 Z.Ub 2.79 Z.24 1.21 U.53 U.21 Cummulative 0.15 0.96 3.02 5.81 8.05 9.26 9.79 10.UU % of Total 1.5% Y.6% 3U.2% 58.1% 80.5% 92.b% 97.9% 100.UZ Rate of Return: Not applicable Map: IBRD 19396  BARBADOS SECOND EDUCATION AND TRAINING PROJECT BASIC DATA Land Area: 431 sq. km. Population: 1/ Total Population (mid-1984) 252,000 Density 580 per sq. km. Average Annual Growth (1974-84) 0.3% Literacy 99X GNP Per Capita (1984) US$4,340.00 Academic Year: September to June Enrollment (1984/85): Total Primary Enrollment 30,780 of which Male: 50.4% Female: 49.6% As Percentage of Age Group 5-11: 98% Total Secondary Enrollment 28,162 of which Male: 50.4% Female: 49.6% As Percentage of Age Group 12-16: 95.0Z Government Recurrent Expenditures on Education: as Percentage of Government Expenditures (1984) 20% as Percentage of GDP 8% 1/ Source: Barbados Statistical Service.  INTERNATIONAL BANK FOR RECONSTKUCTION AND) DEVELOPMENT REPORT AND RECOMMENDATIUN UF THE PKESIDENT TO THE EXECUTIVE DlRECTURS UN A PROPOSED LOAN TO bAkRADOS FOR A SECOND EDUCATION AND TRAINING PRWECT 1. I submit the following report and recommendation on a proposed Loan of USA10 million equivalent to Barbados for a period of 15 years, including 3 years of grace, at the Bank's standard variable interest rate, to help finance a Second Education and Training Project. In addition to the proposed Bank loan, the proposed Project would be cofinanced, on a parallel basis, by the Inter-American Development Bank (IDB) with a loan of US$17.0 million. The proposed terms and conditions of the IB loan have yet to be determined. If Ordinary Capital funds are used the IDB loan would be for a period of 25 years, including 4.5 years of grace, with a 9.5Z variable interest rate applicable at the date of disbursement. However, the proposed Project could qualify for financing under the IVB's Intermediate Financing Facility, in which case a 5Z interest subsidy would apply. PART I - TiE ECONOMY 2. An economic report (Barbados - Development Challenges, Report No. 5bU4-BAR, dated April 26, 1985) has been distributed to the Executive Directors. Annex I contains the basic country data. Background and Recent Economic Performance 3. Barbados, a small island in the Caribbean with limited natural resources and a high population density (584 per km2), has made impressive gains in recent decades. During the 19%Os and 197Us, growth averaged 5Z in real terms per year, with an average of 7Z in the 19bUs and 3Z in the 197us, and low population growth permitted per capita income to advance to US$4,340 in 19b4. In the meantime, the economic base developed from a monoculture producing and exporting (mainly sugar) to a more diversified structure featuring strong tourism and manufacturing sectors. by the beginning of the l9bUs, agriculture, tourism and manufacturing together directly contributed some one-third of the national product in roughly equal shares. 4. As a small open economy, Barbados is subject to fluctuations generated abroad and it suffered its most severe external shock in recent times during the 19b1-Bi world recession. Activity in the sensitive tourism sector, the largest export earner, dropped a cumulative 21Z over the two years 1981 and 19b2. The economic impact was compounded by poor sugar harvests and weakening commodity prices in the same years, with the result that the balance of payments and public finances deteriorated sharply. The authorities adopted a program of fiscal and monetary austerity that gained the support of the IMF, and in 1982 the Government entered into its first stand-by arrangement with the Fund. by the end of 1983, with the successful implementation of that stabilization program, the deterioration in the public finances and balance of payments was contained.  5. The economy emerged trom the l981-63 period with its economic structure severely weakened. Both the tourism and sugar sectors encountered severe financial difficulties in those years that continued into 1984. A number of hotel operations failed, debt service delinquencies multiplied and the sugar industry suffered substantial losses because ot both output and price declines. The manufacturing sector meanwhile was sustained by strong growth in the enclave electronics subsector whose performance more then outweighed the declines in the rest of manufactur- ing. The low economic activity in those years pushed unemployment from 1IX in 1981 to about l1Z by the end of 1983. Inflation, however, moderated along with the slower rise in import prices. 6. Economic activity revived in 19B4, and the economy registered positive growth for the first time in four years. GDP rose 2.4Z, mainly because of a 1UX increase in tourist arrivals, a 17X jump in sugar output (the first increase in four years) and continued strong growth in the enclave electronics components industry. tiowever, a major new sectoral setback created additional problems for the economy. The introduction in Trinidad and Tobago of restrictive import licencing measures impaired access of Barbados' domestic manufacturing exports to that important CARICOM market. The persistence of this access problem, along with payments difficulties experienced by Jamaican importers, has crippled an important subsector of Barbados' manufacturing. The positive GUP growth in 19b4 was accompanied by a further increase in unemployment, as several CARICOM-oriented manufacturers went out of business or cut back operations, and as cost-cutting strategies in the hotel sector made labor reduncant. 7. The difficult economic conditions were reflected in the fiscal and balance of payments outturns for the year. Following improvement during the adjustment program in 1982/83 and 19b3/84, the Central Government finances deteriorated in 19b4/8s5. The main problem was slow growth in revenues from the corporate profits tax and from import duties. Thus, while current expenditures grew IUX, current revenues grew only bX (its poorest performance in seven years) and the budget surplus fell by one-half in relation to GDP, from 2.3% of GDP in 1963/b4 to 1% of GUP in 19b4/b5. on the balance of payments, an improvement in the current account was almost offset by a worsening in the capital account, and the net reserve position remained weak at only one month's imports in liquid reserves. (Although total reserves were equivalent to two months of imports, one half represented illiquid assets of the suspended CAKRIUM Multilateral Clearing Facility; this was a credit facility created to increase intra-CARICUM trade and which was suspended in 19b3 after its USIUU million credit ceiling was reached; Barbados was the largest net creditor to the facility.) b. Preliminary data on economic performance in 19b5 indicate that the economy contracted slightly during the year. Sugar output remained at about last year's level, 1UU,UUU tons, tourist arrivals declined mainly because of a very poor summer season, and the electronics industry, which had been the mainstay of the manufacturing sector over the preceding four years, itself lost momentum in the face ot lower demand in the computer industry in 1985.  Development Strategy and Development Issues 9. Barbados' development has proceeded within a framework of general reliance on the market mechanism and private enterprise, both toreign and domestic, with the role of the Government largely reserved to the provision of supporting infrastructure and appropriate production incentives. The development strategy is outward-looking as is appropriate for a country with such a small domestic market (25:L,UUU people). Given the openness of the economy, the development strategy aims at diversifying the economic base so as to strengthen the resilience to external shocks. The traditional spugar industry, which has dominated Barbados' agriculture over many years but is now facing difficulties, has to be rationalized, while exploring for options for agricultural diversification to increase the country's domestic earnings and export income.- Tourism has grown rapidly in the past and the country will continue to have a comparative advantage in that field. In addition, the country has significant assets in its readily trainable labor force, proximity to the North American market, and good communications. To capitalize on ti-ase assets, enhancement of the quality and industrial relevance of the labor force through continued improvement in the education and training system has to be a central element of the Government's development strategy. 10. Barbados continues to face a critical issue concerning the competitiveness of its production in international markets. While the recent decline of the US$, to which the b* is pegged, has brought about some improvement, many of Barbados' competitors, including Jamaica and Trinidad within CARICUM, have had sharp devaluations over the past year leaving Barbados as a relatively costly destination for tourism and source of manufactures. In the sugar industry, although the decline of sterling against the dollar over the past year has brought about increased local currency earnings, costs remain high on an international basis. Tnese developments highlight critical imbalances in the cost/price structures of the sugar ana tourism industries, which experienced rapid wage increases in the years preceding the recession and falling prices during the recession years. Another urgent issue stems from the trade problems of CARICUt that have effectively curbed intra-regional trade, pointing to the need to reorient manufactured exports to extra-regional markets. Yet existing manufacturers have little experience or knowledge of those markets and would require strong incentives and support to make the shift. Inadequate capitalization of business firms in tourism and manufacturing, and weak management, particularly weak financial management, across all sectors are other sectoral problems exposed by the recent economic difficulties. II. The task ahead for the Government is to formulate and implement corrLctive measures for restoring the viability of these major producing and foreign-exchange-earning sectors. The problems in the sugar industry underscore the need to rationalize operations and to increase production efticiency, in addition to pursuing programs tor agricultural diversitica- tion. The Government intends to conduct an in-depth review ot the sugar industry, as a basis for informed policy-making about its future. Further mechanization appears to be a part of the medium- to long-term plan for the industry. The tourism industry needs to improve its operating efficiency and to expand its revenue-earning capacity by better targeting its promotion at the up-scale market. The hotel sector has already begun to  -4- rationalize its cost structure by adopting a more flexible employment policy and the Government has provided assistance to the tourism sector as a whole in the form of relief from some taxation and fees on tourists, reduction in water rates for hotels and an increase in the promotion budget. Manufacturing, meanwhile, is facing a most difficult transition. A strategy is required to diversify markets and products, attract new activities such as linkage industries that would help maximize local value-added, and to examine incentives needed for extra-regional exports. In all sectors, the approaches imply strong marketing efforts, and enhanced management and vocational training. Finally, appropriate macroeconomic policies are of the utmost importance for the country's international competitiveness. There is the need for the authorities to monitor and control wage increases, which in the recent past have exceeded domestic inflation by significant margins (4 to 8 percentage points). Even though the local currency has depreciated along with the US dollar against European currencies over the last year, the issue remains important and needs to be addressed. The Government, in its last budget statement, has strongly advocated wage restraint and the need for a proper balance between wage increases and productivity gains. The Government will need to set an example for wage restraint in its next (two-yearly) public sector wage negotiations. 12. The Government's public sector investment program for the medium term focuses on development and reconstruction of the economic intrastruc- ture--highways and highway maintenance, runway rehabilitation--and support of social infrastructure-sewerage development and improvements in vocational education and training. Its successful implementation will enhance the country's appeal to visitors and potential investors. The program is being implemented with support of significant amount of external assistance and is expected to have a substantial employment impact. Development Prospects and Creditworthiness 13. Leaving aside Barbados' susceptibility to exogenous tactors such as external price fluctuations and unpredictable weather, the economic outlook hinges strongly on the country's ability to address the tundamental development issues that have emerged in recent years. The failure of the economy to sustain the recovery begun in 1984 underscores the urgency for appropriate adjustment measures. The authorities have in the past displayed prudence in managing the economy and in maintaining fiscal responsibility. lt is essential that they continue this pertormance. It is a favorable sign that policy-makers and industry operators in the major productive sectors have begun to gather necessary information and to take measures to promote structural adjustment. Not least among the latter is the Government's promotion of wage restraint and productivity increases to enable Barbados to maintain its competitiveness in international markets. 14. Barbados' government and government-guaranteed external debt in 1984 stood at US$283 million equivalent. The accumulation ot debt slowed in 19b4, following a 27Z buildup in 19b3, and average annual increases in the two preceding years of bU7.. These increases were related to borrowings for large development projects in the public and private sectors. In the first half of 1985, the Government arranged foreign commercial bank loans totaling US$44 million to bolster its liquid external reserve position.  l ~~~~~~~~~~- 5 - Despite this increase, external debt in relation to export earnings remained low, at a ratio of 50X, in 195. The debt service ratio, which was 5.7% in 1984, is expected to remain within manageable bounds over the medium-term. BaIRce of payments projections indicate that the debt service ratio would peak at about 9X of exports in 1987, then decline to about 7.5% by 1990. Considering all of the above, Barbados continues to be creditworthy for Bank lending on conventional terms. 15. In 1984, the Bank's share in Barbados' outstanding public and publicly guaranteed external debt was 8.2x; its share in Barbados' external debt service was 12.3%. It is estimated that, by 199U, the Bank's share in Barbados' outstanding public and publicly guaranteed external debt would be about 9.6Z. The Bank's share in external public debt service would then be about 10.9%. PART II - THE BANK GROUP OPERATIONS 16. Barbados became a member of the Bank in 1974. Since then, the country has received, net of cancellations, US"60.0 million in loans from the Bank, covering nine projects, including one loan in supplemental financing (Annex II). These included assistance in the education, tourism, industrial, power and highway sectors as well as the financing of technical assistance to support the Ministries of Finance and Planning, and Agriculture. In addition, Barbados has benefitted from the bank's lending to the Caribbean Development Bank (CDB). The CDB lending to Barbados includes a US$2.6 million loan for an industrial development project in 1978; a US$3.0 million loan for the rehabilitation of two sugar factories in 1981; and a US$1.1 million loan for the manufacture of clay tiles in 1983. 17. Despite some delays and associated cost overruns, project implementation and loan disbursements have, in general, been satisfactory. With the exception of the Road Maintenance and Rehabilitation Project (Loan 2432-BAR), which was recently approved, the funds provided under all Bank-assisted projects have been substantially committed. 18. The Bank has also maintained a close dialogue with the Government through its economic and sector work and has, since the inception of the Caribbean Group for Cooperation in Economic Development (CSCED) in 197T, successfully assisted in helping to coordinate external donor assistance to Barbados. 19. In early 1984, the Bank approved a graduation program for Barbados (R84-33, dated February 13, 1984) which provides for, inter alia, a seven-year phase-out period (FY85/91), with a Bank lending program of around US$9 million annually in commitments over the period. We will, of course, carefully review Barbados' capacity to borrow from the markets to meet its capital requirements over the next several years. 20. In the meantime, the Bank lending program will seek to strengthen the economy and its long-term credit worthiness. The proposed Project fits into this strategy by focussing on one of the sectors in which institut'Ional capacity needs to be further strengthened. Similarly, bank lending over the remainder of the current five-year period has been  - 6 - formulated to support the Bank's graduation strategy and is expected to include: an agricultural development project; a sites and services project; a second industrial credit project; a second highway maintenance and rehabilitation project; and a possible rural roads project. PAiT III - THE EDUCATION AND TRAINING SECTU( Overview of Education and Training 21. Among Latin American and Caribbean countries Barbados has one of the most highly developed educational systems which is competently staffed and managed. A literacy rate of about 99Z is the result of easy access to schooling. Over 90% of the labor force has had at least six years of formal education, about 752 has had nine years of schooling. Primary, secondary and higher education institutions were established early in the 1700s, and during the colonial period coverage was gradually increased. After iudependence in 196b, the school leaving age was raised from 14 to lb and at present all children between the ages of 5 and 16 are enrolled in school. Vocational and technical training is still at an early development stage and is being established at the post-secondary level. Efforts are being made to provide adequate training opportunities to all youngsters who do not enroll in the university. Primary and Secondary education 22. Reaching universal coverage in primary and secondary education has been a major achievement, indicating the great importance the Barbados society accords to education. In 194-b5 about 31,U0U children were enrolled in some 13U primary schools; and some 24,OU0 children were enrolled in 21 government secondary schools. In addition, about 4,400 children were enrolled in 15 private secondary schools. The net enrollment rates of 98% at the primary level and 95% at the secondary level are comparable to those of the highly developed countries. A policy of automatic promotion is exercised, and consequently repetition rates are almost negligible. 23. In terms of quality, efforts are being made to adapt the original British curriculum to the Caribbean context. New syllabi for primary and secondary schools are being developed and are gradually being introduced in schools. The English school leaving examinations at secondary level have been replaced by those of the Caribbean Examination Council (CXC), which is now in charge of certifying knowledge and skills of secondary graduates both tor university entrance and direct employment purposes. These curriculum and examination reforms started after l9bb and have been financed through USAID loans. 24. Teachers are well trained. The Erdiston Teacher Training College (ETTC) trains primary and secondary school teachers and the University of the West Indies provides graduate level courses for school managers, offering certificates to university graduates who want to become secondary school teachers. In addition, the Barbados Community College (BCC) collaborates with the ETTC to provide training of industrial arts teachers. in 19b3/84 there were about 2,50U government school teachers. All primary school teachers and 702 of secondary school teachers were  classified as "trained' (i.e.. they had attended the ETTC courses or they had a University Certificate). The 'untrained" 30% (about 2U0) of secondary school teachers are mostly those approaching retirement age, thus, the MUE does not see a great need to train them given the high training costs involved. Vocational and Technical Training 25. Formal vocational and technical training is still in an early development stage in Barbados, with two institutions under the MUE having clearly defined responsibilities for such training. The Samuel Jackman Prescod Polytechnic (SJPP) provides skills level training for both lower ana upper secondary school graduates. The bCC provides post-secondary (grades 12-13) technician level education and training in industrial technology, tourism, health, commerce and applied arts. It also conducts the non-pedagogical training for secondary teacher trainees in cooperation with the ETTC. The teachers in both the BCC and the SJPP are well qualified and generally have industrial experience. 26. Non-formal vocational and technical training is provided mainly by the National Training Board (NTB), which was founded in 1979 under the Ministry of Labor (MOL). The NTB is responsible for planning and implementing short and intensive training schemes for unemployed youths and adults, upgrading programs for employed workers, the tormal apprenticeship training system, and on-the-job training programs. The recurrent costs of NTB are financed largely (60% in 19B4) from a national payroll levy (0.5%) on private sector wages; the rpmainder is provided by annual budget appropriations. The SJPP cooperates with the NTB in providing formal skills and technical theory training. In 1983, the skills training program for young people (16-25 years of age), was transferred from the MOL to the NTB. This modular curricula program, with courses ranging from 3-9 months duration, is conducted mostly in temporary and poorly equipped facilities. Issues in Primary and becondary Education 27. Low student-teacher ratios, high costs, low achievement, unequal access to adequate school facilities and managerial deficiencies are recognized by the Government as problems which should be overcome in the next five years. Zb. Due to the decline in population growth, school enrollments have been decreasing and are projected to continue to do so in the coming years. by 1990 there would be about 25,6U0 primary school age children (excluding reception age, that is, children below the school starting age of 5 years), down from 31,000 at present; and 23,6U0 secondary school age children, as opposed to 25,OUU at present. Student-teacher ratios have gone down from 24:1 in 1973 to 21:1 in 1983 as a result of the declining population growth rate coinciding with the appointment of new teachers in the late 197Us when new vocational courses were introduced in secondary schools. Although there is now a de facto freeze on the hiring of new teachers, student-teacher ratios are not expected to rise immediately, as the young age of the teaching force and the lack of alternate employment opportunities would not increase the attrition rate (about 12 per year) of teachers.  - t - 29. As public education is tree, the high coverage of the lormal education system places a high recurrent cost burden on the government budget. The Government subsidizes school meals, textbooks, school unitorms and transportation to primary schools, and provides bursaries to students in private secondary schools. In 1VU4, public education expenditures accounted for about bZ of GOP and about 20% of public sector expenditures. Public education's share of public sector expenditures is expected ro remain at the 1iZ to 2UZ level during the coming years. The high level ot Lthese expenditures, however, underlines the need to reduce costs and improve the etficiency ot the system. 3U. About 3UZ of primary school children perform poorly in the secondary school entrance examinations, and about bUZ of students tail the secondary school leaving examinations. Failure at the end of primary school is attributable to automatic promotion ot students, even when they cannot satistactorily pertorm at grade level. No remedial instruction programs are now available tor slow learners, particularly in basic reading and w)riting skills. This issue is especially severe when children who have not learned to read and write adequately are promoted to higner levels, tor they cannot then benefit from further attendance either in secondary schools or in vocational training programs. 31. Causes ot tailure in secondary schools need to be turther researcned. lThe CXC is beginning to correlate school achievement scores with other variables, but results are not conclusive. It is believea that one of the main causes of tailure is tnat students are not provided the time and the instructional materials needed to learn. There are great ditterences between the instruction times recommenaed in the syllabi and the instruction times that students actually experience in classrooms. Moreover, secondary school students are unable to benetit trom the recently revised curriculum because ot delays in implementation. 32. Another problem is that access to secondary eaucation is inequitably distributed: (a) due to lack ot public secondary scthool places, some 2,2UU children (dX ot the secondary school age group) are taught in primary school facilities (primary tops), where tney receive an inadequate education; (b) some l,bUU others (ow) are taugnt in small, inadequately stafted and poorly housed private secondary schools, which are closing down because they are not economically viable 1/; and (c) some 1/ There are 15 private 'assisted" secondary schools in barbados. 'These receive bursaries amounting to about USa47u per year per stucent (ot UbSob9b recurrent costs in the newer public secondary sctiools). About half these schools are small (less than 4UU students), have no room tor expansion, lack good teachers and are ot a much poorer standard than public schools. Some ot these poor quality schools are already in the process ot closing down due to lacK or students, as Lhe increase in tees to enable the schools to raise teachers' pay, improve tacilities and expand in order to be eco'iomically viable are not commensurate with the improvement in quality; nenice cney become unattorciable and theretore, unattractive to parents in spite ot the bursaries. As tne school owners have no resources to replace tnese schools, tne cost to the governmenc ot providing the necessary resources would equal or exceed those of building a new public school. In addition, the Goverment woula nave to continue providing the bursaries.  1,500 others (5x) attend public secondary schools built more than one hundred years ago, which are currently in unsatisfactory condition. It is estimated that, in addition to upgrading the old, dilapidated facilities, about 1,ZUU new secondary school places would be needed to enroll all school age children in adequate conditions. 33. Although there are good syllabi for secondary schools, the Curriculum Development Council has not set policies for defining which courses are to be offered in each school. Subjects are selected by independent School Boards, apparently without sufficiently analyzing the appropriate balance between curriculum requirements and instruction time in key subject areas. Moreover, due to the lack of clear guidelines on the teaching of vocational subjects, there are attempts by each scnool to acquire expensive, sophisticated equipment for the various vocational subjects offered. The need for a rational use of facilities is recognized in the Development Plan for 1983-88, but a tormal plan to introduce the sharing of workshops among schools in order to promote effective use of scarce qualified staff in technical subjects and eliminate the unnecessary duplication of plant and equipment has not yet been defined and little sharing has actually taken place. 34. Education management problems are compounded by the inappropriate and congested premises occupied by the Ministry of Education and Culture (MOE). These premises were originally designed as an outpatient clinic, are owned and also partly occupied by the Ministry of health, and do not permit room for expansion to accommodate both Ministries. Adequate rentable spaces are unavailable. Records and files are spread about on desktops and in boxes due to lack of storage space, and there are no rooms for meetings among staff from different departments. Under these circumstances, routine administrative procedures become cumbersome and inefficient, staff motivation is low, and productivity is greatly impaired from different departments. Under these circumstances, routine administrative procedures become cumbersome and inefficient, staff motivation is low, and productivity is greatly impaired. 35. Issues in Vocational and Technical Education. Vocational and technical training is still in an early development stage in Barbados, and must o-vercome major constraints if it is to effectively contribute to the attainment of the country's development objectives. There is a lack of reliable labor market information. Training programs in the formal sector for semi-skilled and skilled workers arnd technicians, and in the informal sector tor pL3duction and services entrepreneurs are of low quality and of little relevance to sectoral needs; hence, they offer little motivation to trainees. In addition, the existing training resources are not fully utilized because they are located in inappropriate, incompletely equipped facilities, randomly dispersed around Barbados. 36. Although the Manpower Research and Statistics Unit (MRSU) of the MOL undertakes periodic household surveys to determine employment levels, and some information on available manpower and job placement opportunities is available from official sources such as the Barbados Institute of Management and Productivity (BIMAP) and the Statistical Service of the ministry of Finance and Planning, there is a lack of labor market information in a form which can be used to systematically plan the  - 1U - country's training efforts to meet market demand. There is likewise a lack of information feedback from tracer studies on graduates of the system to determine the appropriateness at the training programs being offered. These inadequacies contribute to imbalances in available skills and result in missed opportunities when foreign investors interested in setting up operations in the country do not encounter the trained manpower they need. 37. The low quality of vocational and technical training is due primarily to inappropriate and/or obsolete equipment, lack of appropriate course syllabi and methodology (which are partly due to poor equipment) and the limited relevance of training programs to labor market needs. Although the qualifications of trainers are generally good, curricula need to be improved and defined in accordance with standards derived from occupational analyses. In addition, trainers have to be given the opportunity to keep up to date with constantly changing technological developments and their corresponding pedagogical techniques. Student motivation could be increased by improving the quality of instruction and making available the training options that would enable them to more easily obtain employment. 38. Training resources (teachers and those adequate facilities which are available) are inefficiently utilized. The existing small NTH skills training units are scattered around Barbados, and except for the facility in St. Lucy, are generally housed in makeshift workshops offering training in one or two skills with inadequate equipment. Consequently, programs are difficult to tailor to market needs, the number and quality of outputs are low, and administration of such a system cannot avoid being inefficient. Therefore, the consolidation of these efforts into a few strategically located facilities would increase performance levels and result in a more economic use of available resources. A similar situation exists with respect to the bCC: its training programs are also scattered in a number of inadequate locations outside the main campus, which has room for expansion. This penalizes students in the outside locations who have no (or more difficult) access to campus facilities (i.e., library, demonstration rooms, etc.), leads to duplication of personnel services, and contributes to a lower utilization of campus facilities. The SJPP on the other hand has workshops in eight areas of training, which are either unused or underutilized, due primarily to the lack of or incomplete equipment. These workshops could accommodate up to 70U secondary school students for vocational courses, and their more efficient use would avoid the duplication of facilities and resources. Government Strategy in the Sector 39. The Government's policy objectives include the equalization of educational opportunity, the modernization ot educational content in order to make education a meaningful tool for development through greater emphasis on vocational and technical training, and the realization of these objectives without increasing the relatively high cost of the system. The Uovernment has put into action strategies designed to address the deficiencies of the system. In pursuit of these objectives, the Government has obtained bilateral and multilateral assistance as follows: (a) the bank's First Education Project (Loan 1b42-BAR) improved student-teacher ratios in project schools, increased access and achieved economies ot scale  - II - in amalgamating primary schools and upgrading secondary schools. Teacher quality was improved through support for the ETTC; bIMAP's capacity to improve productivity through in-plant treining for workers and supervisors was strengthened; and key MOE officials were trainea in school administration; (b) the Inter-American Development bank (IDB) has supported training programs at the technician and skilled worker levels and tinanced the construction of tacilities for the BCC and the SJPP; and (c) other agencies (i.e. USAID, OAS, CIDA, and the british Governitent) have provided assistance in curriculum development, project execution aid to small enterprises and higher education. The Government has taken steps on its own to address the deficiencies of the system: (a) it has etlected a de facto freeze on the hiring of new teachers to prevent the decrease of student-teacher ratios which would otherwise occur due to the tailing population growth rate; (b) it has converted teacher training institutions to provide only inservice training ot public school teachers and stopped financing and training of new teachers; (c) it is taking steps tc reduce Government subsidies for school meals and student transportation; (d) it continues to support the amalgamation of primary schools to increase cost-effectiveness; and (e) it has introduced measures to reduce subject options oftered to secondary school students to increase class sizes and reduce the need for specialized facilities. The Government, however, taces the task of consolidating the initial successes in attaining its goals, and must overcome the adverse effects of the world recession on its economic performance. Accordingly the Government's plans tor improvements in efficiency, increase in vocational skills and opening new areas of training in modern technologies in order to provide the requisite manpower for its output diversification objectives, are deserving of external support. bank Strategy in the Sector 40. Previous bank Experience. The bank agrees with the Government's strategy and the proposed Project would be the second bank operation in the sector in Barbados. The First Education Project (Loan 1642-bAK of US$9.U million equivalent) assisted the Government strategy of combining measures to assure equity and relevant general education and skills training with measures to enhance the cost effectiveness of the system. The project also assisted the improvement of private sector management training by financing the BIMAP component. Specifically, the project comprised: (a) construc- tion, furnishing and equipping of ten primary schools to replace obsolescent schools; (b) expansion of six existing secondary schools; (c) expansion of the ETTC; (d) expansion of the facilities of JIMAP; and (e) provision of architectural and engineering services to the project unit and 3U staff/months of tellowships to BIMAP. Early implementation delays caused by site acquisition problems contributed to a 35X increase in project costs. The Government's difficulty in tilling the increased funding gap with counterpart resources exacerbated the delay as well as the cost increases. A supplemental loan of US3.U million was approved oy the bank on November 6, 19B3, under a Special Action Program, to finance the foreign exchange component of the project cost increase, and has brought implementation up to the planned pace with reasonable efficiency. The project has satisfactorily attained its objectives, all facilities are operational and the loan has already been substantially disbursed.  - 12 - 41. To enable Barbados to overcome the adverse effects ot the world recession (and its particular repercussions within the Caribbean regional market) on its economic performance, the Bank supports its plans to diversify its markets, improve efficiency and increase vocational skills. In the specific area ot hotel management, one ot the development priorities, BIMAP is currently planning the training programs for managers and entrepreneurs of small and medium sized hotels, in consultation with the barbados hotel Association and the darbados Development Bank. blSIAP has tEle qualified staff and facilities to carry out this training program effectively. The training needs in the agricultural sector, another priority area for development, are being addressed in a proposed agricultural development project which would be a follow-up to earlier bank-financed Technical Assistance Project (Loan 2115-bAK). The Bank also supports the efforts being made by the Government to increase the skills and competitiveness of its labor force, and to streamline and increase efficiency in the education sector. To this end, the bank would continue its collaboration with other bilateral and multilateral development institutions. The bank's involvement in the proposed Project is necessary because beyond consolidating the benefits realized under Loan lb42-BAK, it would (a) provide the requisite incentives to implement quality and cost eftectiveness measures such as the improvement ot student-teacner ratios, the rationalization of vocational subjects ia secondary schools and the formulation of measures to achieve cost savings and greater efticiency in the utilization of educational tacilities and resources; and (b) it would contribute significantly to institutional strengthening so as to enable Barbados to acquire the necessary toundation for human resources development for a competitive modern economy. :AKT IV - THE PRUJLCT Project Origin 4Z. The proposed Project was tirst presented to the bank in September 19b4 and reviewed by a Bank mission in Uctober 1984. It was identitied by a bank mission that visited Barbados in iebruary 19bJ. the proposed Project was prepared by the Mub, assisted by consultants under the UNESCO/CP and bank statt and was appraised in June 13bJ. Negotiations were held in Washington, D.C. in March 19io. The Barbados delegation was led by Mr. Branston Collymore, Permanent Secretary, Ministry or Education ana Culture. Supplementary data are contained in Annex Ill. Project Ubjectives and Content 43. The proposed Project would be a follow up on Loan 1b4Z-BAK and would cover 90Z 2/ of the hive-year investment plan tor the whole sector in order to address a broad range of critical issues. The proposed Project theretore comprises the tollowing items: (a) the institutional strengthening of the MUE; (b) the bUC component; (c) the i'41h component; (d) the MKSU component; (e) the Training Administration component; (t) the primary school component; (g) the secondary school component; and (II) tne _J lfbe areas not covered under this Project include: (a) agricultural training (para. 41); (b) prLvate sector management training (para. 41); (c) the student Kevolving Loan Iuncd (U64J.U milLion) financed by lUb Loan 7Z2/Sb-bA; and (d) repair and remodeliing ot other existing secondary schools tinanced entirely oy the Uovernment.  - 13 - SJPP component. The Bank would finance items (a) to (e), and IJB would finance items (f) to (h). The Bank would finance the administrative costs of implementing items (a) to (e). 44. The proposed Project aims to further develop Barbados' educational and training system and improve the capacity to manage it through a combination of policies and actions that would enhance the internal efficiency of education while improving the quality and relevance of instruction. These efficiency and quality improvements would enable the MOE to optimize previous investments and manage the system without further substantial financial assistance. because of its small size, there are no significant differences between the urban and rural populations of Barbados, thus the proposed Project would equally benefit all population sectors. The NTB component particularly addresses the improvement of the skills of the unemployed and thus the relatively poorer segment of society. 45. First, the proposed Project would support improvements in the quality and cost-effectiveness of primary and secondary education through: (a) The financing by IDB of the amalgamation of 21 small, unecomomic primary schools into ten larger schools by providing construction, equipment and furniture. The actual condition of the 22 schools only permit two out of the five nmalgamation options: (i) full replacement with new facilities, or (ii) remodelling and expansion of one school. Option (i) is necessary in nine out of the ten amalgamations. by amalgamating these schools, operational costs would be reduced by about 2U%, representing a 5% reduction in the operational costs of primary schools in the country. Expected savings in recurrent costs would recover the investment costs within a five-year period after project completion provided that the current freeze on the hiring of new teachers is maintained. The Government has provided assurances that the current student-teacher ratios would not be allowed to decrease from the levels prevailing during school year 1983 of 23:1 in primary schools and 19:1 in secondary schools. These ratios would not be increased beyond 35:1 at the primary level and 30:1 at the secondary level. (b) The tinancing by the Bank for improvements in the teaching of reading and writing in primary schools. The curriculum unit of the MOE would establish a system for diagnosing problems in reading and writing, and, once the system is in place, train one remedial education teacher in each school. Technical assistance (10 staff months (s/m) of fellowships and 12 s/m of specialist services) would be provided to the curriculum unit and about 1,50U teachers would be trained in diagnostic techniques. (c) The re-establishment of the National Curriculum Committee and financing by the Bank of the following tasks to be carried out by the Committee: (i) conduct a study to provide the basis for a policy on the teaching of vocational subjects in secondary schools and the reduction of recurrent expenditure at this level; and (ii) analyze results of CXC examinations to determine the revisions needed to make the existing syllabi more responsive to the country's development needs. The study on vocational subjects in secondary schools would consider, among other things, the cost of offering each optional subject, the minimum number of students required to offer a specific course, the minimum number of hours  - 14 - required per subject and the maximum number of subjects that a student should take in a year. Technical assistance (34 s/m of tellowships and 16 s/m of specialist services) and training (3UU teachers and .2 administrators) would be provided to the MOE to support the above activities as well as to improve the teaching of special subjects in secondary schools. A draft plan prepared by the Government for the sharing of workshop facilities among secondary schools and the SJPI was reviewed during negotiations. The plan would be finalized during the first year of implementation and put into effect by September 19bd. (d) The financing by the bank of improvements in the textbook procurement and distribution system. The proposed Project would finance six s/m of specialist services to assist the Supply Management Section of the MOE. A draft revised policy for textbook procurement and distribution would be prepared by July 1987, and would be reviewed by the Bank. Procurement of books for schools under the proposed Project would proceed only after the policy is agreed upon with the Bank and the IDB. (e) The financing by the IDB of the upgrading as well as acquisition of supplementary and replacement equipment and furniture for two existing secondary schools, the furnishing and equipping of a third existing secondary school and the building, equipping and furnishing of new 1,2UO place school. The additional number of places provided to the secondary school system would accommodate the existing "primary tops". The SUE is expected to eliminate these "primary tops" by the start of operations of the new Wotton/Kingsland secondary school in December 199U. 4b. Secondly, the proposed Project would foster improvements in the efficiency, quality and industrial relevance of technical and vocational training, through: (a) The financing by the lJB of supplementary equipment in the Samuel J. Prescod Polytechnic to replace obsolete equipment; peripheral equipment to maximize the existing training capacity in the skilled worker level programs of radio-stereo-TV repair, electrical installations and welding, the print shop and the food preparation laboratory. The provision of supplementary equipment would increase the utilization of four existing shops by about 25X, by accomodating up to 700 students in the secondary school day-release program and help formalize better coordination ot training programs among the cooperating schools. It would also increase enrollment capacity by up to 70 full-time students. About 30% of enrollments would be women. (b) The financing by the Bank of the construction, furnishing and equipping of purpose designed" technician level training facilities in the Barbados Community College. This would include the relocation of the Division of Applied Arts from its inadequate and desintegrating premises and the re-equipping and relocation of the health sciences training facilities from the Ministry of Health to the BCC main campus thus making the library and other teaching/learning services more easily available to students in these disciplines and increase their use factor. Additionally, laboratory facilities would be provided for the new computer science division, the new industrial electronics program and two additional shops for the mechanical and civil construction programs. These facilities would  - 15 - altogether annually accommodate about 4UU full-time and 42U part-time trainees (an increase of about 2UU) of which about 6UZ would be women. (c) The financing by the Bank of the construction, furnishing and equipping of three new skills training centers and equipping and furnishing of one existing center in the National Training Board. A total of 28b trainee places would be equipped to provide modular training to about 1, W . trainees annually in 24 skills programs of 3-9 months duration. The centers would cater to entry level skills training for unemployed youth and adults (ages 16 to 3U), apprenticeship training on a day-release basis in cooperation with local industry, and skills upgrading training for about 500 unemployed workers annually. About 2UZ of basic training enrollments would be women. (d) The financing by the bank of supplementary equipment to improve the data processing capability of the Manpower Research and Statistics Unit; and books and supplementary equipment to upgrade the tacilities of the Training Administration. (e) The financing by the Bank of technical assistance (ib8 s/m of fellowships and 39 s/m. of specialist services) for the vocational and technical training system for: (i) improving instructor capabilities in planning and upgrading course syllabi and laboratory/shop activities; (ii) improving administrative, financial manag-sent, accounting procedures and information gathering and processing; (iii) improving and expanding the existing industrial advisory committee systems of the SJPP and the BCC; (iv) formalizing on-the-job follow-up of graduates; (v) improving and institutionalizing the industrial job analysis efforts of the NTB and the MKSU; and (vi) assessing the needs in public sector management training and upgrading the training programs and materials of the Training Administration. 47. Thirdly, the proposed Project would seek to strengthen the institutional capacity to plan and manage the education and training system, through: (a) The financing by the Bank of technical assistance (2b s/m of fellowships, 26 s/m of specialist services and local training of 150 managers and 500 school teachers) to improve education planning, educational management, curriculum implementation practices in primary and secondary schools and school supervision, with emphasis being given to improve the budgeting process of MOE. In addition, the proposed Project would assist the MOE in improving the production of printed materials. (b) The financing by the bank of a study on the formulation of measures to achieve cost savings and greater efficiency in the utilization of facilities and resources, as well as to address the issue of the additional recurrent costs that are expected to be generated under the proposed Project. The study would include inter alia: (i) the selection procedures for public examinations; (ii) the marketing output of the technical/vocational system; (iii) maintenance costs; and (iv) areas of post-secondary education where savings may be realized. MOE would prepare Terms of Reference in consultation with the Ministry of Finance and present these to the Bank by December 1986.  - lb - (c) The financing by the bank of the construction, equipping and furnishing of appropriate facilities to house the MOE Pedagogical and Administration building. Project Costs and Financing 48. Project Cost. The total cost of the proposed Project is estimated at about US$37.7 million equivalent, net of taxes and duties. 3/ The foreign exchange cost is estimated at USS17.3 million or 4bX of total project cost, and the local cost at US$2U.4 million or 54X of total cost. 49. Basis of Cost Estimates. The baseline cost (in March 198b prices) is about US$29.1 million. Aggregate physical contingencies (5.3X over baseline costs) comprise 1UZ for site development and 5Z for all other categories of expenditure (building designs are adapted from standard plans developed under Loan 1642-BAR, equipment and furniture lists are complete, and the technical assistance package contract has been awarded). Aggregate price contingencies (23% over baseline costs including physical contingencies) are based on the following price escalation rates: (a) foreign: (i) 7.2% in 198b, 6.8% in 1987-88, 7% in 1989, 7.1% in 1990, and 4% in 1991-92 for civil works, furniture, equipment and educational materials; and (ii) 5% in 1986-92 for technical assistance (T.A.), professional services, project administration, studies and training; (b) local: (i) 10% in 1986, 11% in 1987-88, 12% in 1989-90, and 10% in 1991-92 for civil works and furniture; (ii) B.5Z in 19bb, 9% in 1987-90, and 8% in 1991-92 for equipment and educational materials; and (iii) 6% in 1986-9U, and 5% in 1991-92 for T.A., professional services, project administration, training and studies. The total foreign exchange cost including contingencies is estimated at US*17.3 million equivalent or about 46% of total project cost net of taxes, based on foreign exchange components of 46% for civil works (building and site development), 60U for furniture, 90% for equipment, 75% for expatriate technical assistance and fellowships, 5% for local training, project administration and studies and _UX for professional services. 5U. Financing Plan. The total project cost of about US$37.7 million would be financed by the bank, the IDB and the Government. The proposed Bank loan of US$lU.0 million equivalent would finance 27% of the total project cost and would cover 49% of the foreign cost and 7% of the local cost. In addition to the Bank loan, 45% of the total project cost would be financed, on a parallel basis, by the IDB with a loan of US$17.0 million which would cover 51% of the foreign cost and 40Z of the local cost. The Government would provide US$10.7 million to finance the remaining 28% of total cost and cover bOX of the local cost. The total cost of the Bank financed items would be US$17.8 million, and the ID financed items US$19.9 million. 51. Assurances were obtained during negotiations that the Government would provide its share of counterpart funds under the proposed Project in a timely fashion. To facilitate the early execution of the bank financed components, retroactive financing up to an amount of US$250,0UU is proposed 3/ Taxes and duties are estimated at US$3.4 million.  - 17 - to cover expenditures incurred (for construction, procurement, technical assistance and project administration) after October 1, 1985. Incremental Recurrent Costs 52. When in full operation by 199Z, the proposed Project is expected to generate additional annual operating costs (in March 1986 prices) of about US$0.66 million for the MOE and US*U.b3 million for the KOL/NTS. These amounts represent an increase of 1.1X above the MUE's approved 1984/85 recurrent budget, and 26% above that of NTB8's 1984/b5 budget. About 82% (US$0.54) of the MOE's additional recurrent budget is attributed to the BCC component. The increase on the Z0E budget is not expected to pose an undue burden as 60Z of the bCC incremental recurrent cost would continue to be funded out of the payroll levy. The substantial increase on the NTB recurrent expenditures is taken in comparison with its 1985 budget which is low as it is based on NTH's currently limited operations. This budgetary increase is expected to be met without undue difficulty through the payroll levy. The proposed Project would finance a study on (paragraph 47(b)) measures to achieve further reductions in recurrent costs. Status of Project Preparation 53. The Government has demonstrated its commitment to the proposed Project by providing, in its 1985/86 budget, the initial outlays and manpower resources needed to proceed with early implementation. Preparation for project implementation which commenced in early 1986 is well advanced, with the use of funds allocated for such purposes under Loan 1b42-BAK. Consultants have been contracted for the site surveys and design of the facilities to be built. Sites for all of the 18 project components which require new or additional civil works are already owned by the Government. bidding documents for the construction, furnishing and equipping of six institutions (3 primary, 2 secondary and 1 NTB skills center) are being prepared for the calling of bids by June 198b. The final architectural design for the BCC and sketch designs for the MOE building were reviewed during negotiations. The Government has awarded the contract for the management of the proposed Project's technical assistance package to an institution selected in accordance with Bank guidelines. The Government was advised of the Bank's concurrence with the proposed contract award in February 1986. Project Execution 54. Implementation Agency. The existing Project Implementation Unit (PIU) of the RUE, which has demonstrated a satisfactory performance in implementing Loan 1b42-BAK, has been officially designated by the Government to manage the implementation of the proposed Project. In view of the increased responsibilities under the proposed Project, the current PIU comprising a project manager, accountant, procurement officer, architect, quantity surveyor, engineer and support staff, has been expanded to provide it with the capability of monitoring the educational aspects of the proposed Project. The additional staff (a project educator, an administrative officer, and a training officer of the NTB to coordinate the  - 1i - execution of the NTh component) have been appointed. Costs of these additional staff are included in the total project cost. Key officers of the BCC, the SJPP, the tbLSU and the Training Administration have been designated with the responsibility of maintaining liaison with the PIU to ensure the efficient execution of their respective components. The PlU also has in-house, under renewable fixed term contracts, expatriate consultants (an architect, two engineers and a quantity surveyor) who render professional services for the design of standard school plans as well as construction supervision. This in-house arrangement permits the PIU flexibility in its design work and also, enables it to realize a ZU-3UZ savings in professional fees. The PIU professional staft are MOE regular personnel who are expected to be reintegrated into the Ministry after completion of the proposed Project. before completion ot the proposed Project, the MUX would review its needs for school construction and maintenance and would consult with the isank on the deployment of PeU staff. 55. Implementation Schedule. The proposed Project is expected to be implemented over a period of seven years from January 19Yb to December 1992, one year shorter than the relevant regional profile based on experience with Loan 1642-BAR. However, it is possible that if the proposed Project is implemented more efficiently and with fewer delays, the implementation period could be reduced to five years. This would result in project costs being reduced from US