Mauritania - Education Sector Restructuring Project

Document of The World Bank FOR OFFICIAL USE ONLY gZ~ /9S A3 - MAV Report No. 7213-MAU STAFF APPRAISAL REPORT ISLAMIC REPUBLIC OF MAURITANIA EDUCATION SECTOR RESTRUCTURING PROJECT June 28, 1988 Pop lation and Human Resources Operations Division Sahelian Department Africa Region This document has a restricted distribution and may be used by recipients only in the performance of  CURRENCY EQUIVALENTS Currency Unit - Ouguiya (UM) US$1.0 - UM 72.6 MEASURES 1 m = 1.09 yd. 1 m2 - 10.76 sq. ft. ABBREVIATIONS AND ACRONYMS AfDB - African Development Bank BOM - Bureau of Organization and Management CAFM - Center for Apprenticeship and Training CET - Technical Education College CFPCEG - Teacher Training College for Lower Secondary School Teachers CFPM - Maritime Training Center CFPP - Vocational Training and Upgrading Center CSET - Center for Higher Technical Education DP - Personnel Directorate DPC - Directorate of Educational Planning and Cooperation DREF - Regional Inspectorate for Primary Education EDF - European Developme~ Fund ENS - Secondary Teaches araining College FIAP - Federation des 1dustries et Armements de POche ISS - Higher Institute of Science IPN - National Pedagogical Institute LEP - Lycee of Professional Training MEN - Ministry of Education PCU - Project Coordination Unit SCS - School Construction Service SNIM - Societe Nationale Industrielle et Miniere UNDP - United Nations Development Program ZEE - Exclusive Economic Zone FISCAL YEAR SCHOOL YEAR January 1 - December 31 October - June  FOR OMCIAL USE ONLY ISLAMIC REPUBLIC OF MAURITANIA EDUCATION SECTOR RESTRUCTURING PROJECT TABLE OF CONTENTS Pane CREDIT AND PROJECT SUMMARY .............i I. INTRODUCTION ........................................ 1 II. THE EDUCATION SECTOR ................................ 1 A. Educational Structure ..1......... B. Main Education and Manpower Issues .............. 1 1. Low and Inequitable Development of Primary Education ................................. 1 2. Poor External Efficiency of Secondary and Higher Education ...................... 2 3. Poor Quality of Education ................. 4 4. Severe Financial Constraints and High Unit Costs ................................ 5 5. Weak Planning and Management Capacity ..... 7 C. The Government's Sectoral Strategy ............. 7 D. The Bank Group's Role .......................... 8 III. THE PROJECT ......................................... 9 A. Project Objectives and Description ............. 9 1. Sectoral Adjustment Program ............... 9 2. Expansion of, access to, and improvement in the quality and relevance of primary education ................................. 11 3. Improved internal and external efficiency of secondary and higher education ......... 14 4. Strengthening of planning and managerial capacities of key Ministries responsible for education and training activities ..... 19 B. Project Cost and Financing Plan . . 21 C. Project Implementation . . 21 1. Project Readiness, Management and Institution Building ...................... 21 2. Procurement, Disbursement and Special Account ................................... 23 IV. PROJECT BENEFITS AND RISKS .......................... 25 V. AGREEMENTS REACHED AND RECOMMENDATIONS .............. 26 This report is based on the findings of an appraisal mission that visited Mauritania in January/February 1988. The mission members were Birger Fredriksen (mission leader; sr. economist/education planner); Bernard Abeille (architect/ implementation specialist); Steve Berkman (technical/vocational training specialist); Diana Risen (operations assistant); Alain Mingat (economist/ consultant); and Jmrn Mygind (science education/consultant). This report was drafted by the mission members and completed by Hr. Fredriksen. Ms. Sabrina Mazza was responsible for the processing of the report. 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.  TABLE OF CONTENTS (continued) ANNEX 1-1 Basic Data 1-2 Selected Documents Available in the Project File 2-1 Structure of the Educational System 2-2 Statistical Profile of the Education System 2-3 Comparative Education Indicators 2-4 Enrollment and Graduates in Secondary and Higher Education 2-5 Financial Implications of Educational Policies 2-6 Trends in Scholarship Budgets for Secondary and Higher Education 2-7 Organizational Chart of the Ministry of Education 3-1 Criteria for Review of Sectoral Adjustment Program 3-2 Primary School Construction and Maintenance Program 3-3 Textbook Development Program for Primary and General Secondary Education 3-4 In-Service Teacher Training for Primary and General Secondary Education 3-5 Experimentation with Double-Shift Teaching in Primary Schools 3-6 Strengthening of Regional Inspectorates (DREP) 3-7 Science Teaching in General Secondary Education 3-8 Science Teaching in Higher Education 3-9 Restructuring of Technical Education 3-10 Vocational Training and Upgrading Center (CFPP) 3-11 Maritime Training Center (CFPM) 3-12 Summary of support to Strengthen the Planning and Management Capacity of the Ministry of Education 3-13 Summary of Support to Strengthen the Human Resources Divisions in Ministry of Economy and Finance and in the Ministry of Fisheries 3-14 Project Cost and Financing Plan 3-15 Summary of Recurrent Expenditures and Cost Savings Generated by the Project 3-16 Project Management and Responsibilities for Project Coordination 3-17 Implementation Schedule 3-18 Summary of Civil Works 3-19 Summary of Local and Foreign Specialist Services 3-20 Summary of Local and Foreign Training 3-21 Procurement Procedures 3-22 Disbursement Profile 3-23 Government and Local Contributions MAP IBRD 20862  ISLAMIC REPUBLIC OF MAURITANIA EDUCATION SECTOR RESTRUCTURING PROJECT CREDIT AND PROJECT SUMMARY Borrower: Islamic Republic of Mauritania Beneficiary: Ministries of Education, Fisheries, Labor and Finance Credit Amounts SDR 13.2 million (US$18.2 million equivalent) Termss Standard, with 40 years maturity Proiect Descriptions The project would assist the Government to implement reforms designed to correct distortions in costs and resource allocation in the education sector and to improve the quality and relevance of education. In addition to thereby helping lay the foundations for long-term development of the education system consistent with economic and fiscal realities, the project would help Mauritania maintain an acceptable level of investment in the education sector during this period of financial stringency. To ensure attainment of project objectives and help finance recurrent costs entailed by project investments, the Government and IDA have agreed on a sectoral adjustment program that would: (a) control and redirect enrollment growth in secondary general and higher education in line with expected resource availability and labor market demands, and to increase the share of the education budget allocated to primary education; (b) promote more efficient use of existing education resources; and (c) stimulate increased private financing of education. Within the framework of this adjustment program, the project woulds 1. Exvand access to. and improve the quality and relevance of, primary education by: (a) assisting local communities, through provision of matching contributions, to (i) construct 250 classrooms using low-cost building techniques and designs to be developed under the project; and (ii) rehabilitate 50 classrooms; (b) improving the efficiency of the learning process through (i) strengtheni'%, if the national capacity to develop, procure and ribute low-cost textbooks and teachers' -. s; and (ii) provision of in-service trainiig f - teachers; and (c) promoting a more efficient ,se of existing resources through (i) introducing the use of  multi-grade teaching in rural areas and double-shift teaching in urban areas; (ii) strengthening the capacity of the 13 primary school inspectorates to manage resources and monitor the quality of instructiont and (iii) transferring one of Mauritania's two primary school teacher training colleges to an area of the country where enrollment ratios are lowest, especially for girls. 2. Imorove the internal and external efficiency of secondary and higher education bys (a) improving the quality of science teaching in general secondary education through revision of programs, provision of in-service teacher training and science textbooks, creation of pilot science blocks in three lycees, renovation of about 100 classrooms, and provision of a kit of basic science equipment to all secondary schools; (b) strengthening the teaching of natural sciences in higher education through (i) rehabilitation and construction of supplementary facilities, and provision of pedagogical equipment and materials for the Higher Institute of Science CISS); and (ii) provision of pedagogical equipment for the Secondary Teacher Training College (ENS); (c) restructuring and improving the quality and relevance of technical education through (i) revision of training programs in technical secondary schools (by upgrading entry requirements from completion of primary to completion of lower secondary education, shortening programs from three to two years, and reorienting their content to respond to demands for trained manpower in growth sectcrs in the economy); tii) reinforcement of the two existing technical secondary schools (by introducing the new programs, reorienting enrollments in line with labor market demands and providing equipment and training materials); (iii) establishing two new schools -- one providing programs for the comercial sector and the other, programs to support the rural economy in the south; and (iv) strengthening the Center of Higher Technical Education (CSET); td) strengthening and diversifying vocational training programs to upgrade skills of workers in the  - iii - industrial and commercial sectors through reinforcement and expansion of the Vocational Training and Upgrading Center (CFPP); and (e) establishing vocational training programs for the fishing sector through expansion of the Maritime Training Center (CFPM). 3. Strengthening 2lanning and managerial canabilities of kev Ministries responsible for education and training bys (a) developing the capacity of the Ministry of Education to plan and manage resource use and to develop and implement policy reforms through reinforcement of the services of the Ministry in charge of planning, budgeting, personnel management and cost control; (b) developing the Government's capacity to better coordinate the provision of training programs with demand for trained manpower through reinforcement of the Human Resource Divisions in the Ministries of Finance, Labor and Fisheries; and Cc) maintaining the Government's capacity to prepare and implement education projects through continued support to the existing Project Coordination Unit.  - iv - Summarv and Proiect Cost Estimates (net of taxes and duties) Local Foreign Total (US$ million) 1. Expansion and Improvement of Primary Education (a) Construction of 250 clsss.'ooms and rehabilitation of 50 classrooms 2.1 1.4 3.5 (b) Provision of textbooks end teacher training 0.6 2.3 2.9 (c) More efficient resource use 1.2 2.8 4.0 Sub-total 4.0 6-.5 10.4 2. - Improved Internal and External Efficiency of Secondary and Higher Education (a) Science teaching in secondary education 0.3 1.8 2.1 (b) Sciesice teaching in higher education 0.7 2.7 3.4 (c) Restructuring and improvement in quality and relevance of technical educttion 0.6 3.7 4.3 (d) Strengthening and diversificationn of vocational upgrading programs 0.1 0.7 0.8 (e) Creation of vocational training pro- grams for industrial fisheries sector 0.5 4.7 5.2 Sub-total 2.1 13.6 15.7 3. Strengthen Education Sector Planning and Management Capacity (a) Development of Ministry of Education's capacity to plan and manage resource use 0.2 1.7 1.9 (b) Improve coordination of provision of training with labor market demands 0.0 0.6 0.6 (c) Project Coordination Unit 0.6 1.3 1.9 Sub-total 0.8 3.6 4.4 Total Base Costs 6.9 23.7 30.6 Physical Contingencies 0.6 1.9 2.5 Price Contingencies 1.5 2.9 4.3 Sub-total 2.1 4.8 6.8 Total Project Costs 9.0 28.4 37.4 Financing Plan: IDA 4.8 13.4 18.2 AfDB 2.1 14.9 17.0 Government 0.7 0.0 0.7 Local Communities/Private Sector 1.4 0.2 1.6 Total 9.0 28.5 37.4 cm_= __ - s Note: Totals may not add up due to roundings.  v Estimated Disbursementss IDA Fiscal Year 1989 1990 1991 1992 1993 1994 ----------------------USS million--------------------- Annual 1.3 1.5 1.8 3.2 6.3 4.1 Cumalative 1.3 2.8 4.6 7.8 14.1 18.2 Economic Rate of Return: Not applicable. Proiect Benefits and Risks. The sectoral adjustment program would help reallocate education resources in favor of primary education, thus ensuring an adequate level of investment in basic education services during this period of overall economic adjustment, and a redistribution in favor of the less well-off social groups of the benefits generated by public education spending (between school years 1986/87 and 1993/94, the primary enrollment ratio would increase from 551 to 74Z, and the share of girls in total enroll- ment from 401 to 44Z). Together, the project's investment and adjustment measures would help increase the social returns at all levels of education by improving skill levels of the labor force, thereby increasing its contri- bution to growth in the fishing, service and informal sectors, and improving its mastery of the technologies needed to exploit the country's meager agricultural and water resources. Most students would benefit from the project through more relevant programs, improved availability, relevance and quality of pedagogical materials and equipment, better trained teachers, and improved school buildings. The main risks aret (a) the Government's ability to contain growth of secondary and higher education and hence to provide the resources required to achieve the targets for growth in primary education and for quality improvements at all levels of education, and (b) the capacity of the economy to generate gainful employment for technical and vocational education graduates. To address the former risk, the sectoral adjustment program includes specific measures to redirect growth in enrollment and expenditures in general secondary and higher education in line with future resource avail- ability and labor market trends; implementation of these measures would be monitored through joint Government/IDA annual reviews. To minimize the latter risk, investments are directed towards sectors where there are demonstrated skill shortages, programs would be kept flexible to respond to changes in labor market demands, and employers would participate in the development of training programs and in their financing. Also, the reinforcement of the Government's capacity to plan and monitor the development of the country's human resources would help minimize these risks.  ISLAMIC REPUBLIC OF MAURITANIA EDUCATION SECTOR RESTRUCTURING PROJECT I. INTRODUCTION 1.1 The Government of Mauritan;a has requested IDA assistance in financing a project designed to help implement reforms designed to correct distortions in costs and resource allocation in the education sector and to improve the quality and relevance of education. Total project costs are estimated at US$37.4 million equivalent (net of taxes and duties), with a foreign exchange component of US$28.5 million. The Government would contribute US$0.7 million, the private sector US$1.6 million, the African Development Bank (AfDB) would cofinance with US$17.0 million, and the remainder, US$18.2 million, would be financed by IDA. 1.2 The project would be IDA's third contribution to the development of education and training in Mauritania, and the first in support of structural adjustment in this sector. The adjustment measures and accompanying investments were developed through a sector policy dialogue conducted with the Mauritanian authorities over the past two years. The Basic Data Sheet is found in Annex 1-1. II. THE EDUCATION SECTOR A. Educational Structure 2.1 A six-year primary cycle is followed by general secondary education comprising two three-year cycles, and by higher education at the University of Nouakchott, five post-secondary professional schools, or abroad. While still important, the Koranic schools have seen their traditionally important role decline during the last decade following the rapid urbanization brought about by the drought. Primary school teachers are trained in two teacher training colleges, and secondary school teachers are trained at the University and at the Secondary Teacher Training College (ENS). Technical education is provided in two schools at the secondary level and in one at the post-secondary level. At all levels of education, instruction is provided in two separate streams, Arabic and bilingual (Arabic and French). The Arabic stream accounts for 81Z of primary school enrollment and 712 of secondary school enrollment. While the Ministry of National Education (MEN) is responsible for most formal education, several technical ministries run their own training programs. Annex 2-1 shows the structure of the educational system. B. Main Education and Manpower Issues 1. Low and Inequitable Development of Primary Education 2.2 Given its weak natural resource base and acute ecological problems, Mauritania needs to give the highest attention to the development of its human resources, starting with primary education. While enrollment at this level has grown rapidly in the 1980s (8.92 annually between 1980181  - 2 - sad 1986/87 -- 9.9? for girls and 8.22 for boys , Mauritania's enrollment ratio of 552 (442 when repeaters are excluded) is well below the African average (about 80?) and masks marked regional disparities (in the 13 regions, the ratio ranges from below 252 to above 90?). In part, these disparities reflect differences in the ability of local communities to finance classroom construction, and regional differences in teacher supply. Girls constitute 40? of primary enrollment. Further enrollment expansion, especially in urban areas, is severely constrained by limited capacity as evidenced by overcrowded classes (average class size is 55; 422 of the pupils are enrolled in classes that have more than 70 pupils), and severe restrictions on new admissions at the start of each school year (more than 50? of all schools have only one classroom and admit children only once every sixth year). The recent drought has caused a sharp increase in rural to urban migration and in sedentarization of the nomadic population. This has accentuated the pressure on the limited available capacity in urban areas. In many rural areas, the migration has caused even lower population density and thus rendered provision of education more costly (19? of existing classrooms have less than 30 pupils). Severe budgetary constraints for the education sector, combined with a marked decline in the share of the education budget devoted to primary education (from 46Z in 1975 to 32? in 1987), makes it difficult to expand supply to meet demand. Annex 2-2 provides basic education statistics for Mauritania, and Annex 2-3 shows comparative education indicators for other countries. 2. Poor External Efficiency of Secondary and Higher Education 2.3 The contribution of Mauritania's secondary and higher education to national development is threatened by several interrelated weaknesses: enrcllment growth has been too rapid in relation to demand for skilled manpower and has diverted resources away from urgently needed investments to improve education quality, and from primary education; output mix is not well adjusted to labor market demands; quality of output is low and costs are comparatively high. The following paragraphs highlight the urgent need to correct these distortions, and to restructure and consolidate existing programs in order to develop institutions that are economically and pedagogically viable, and that respond to skill shortages in the economy. 2.4 Excessive growth. Between school years 1980/81 and 1986/87, enrollment in secondary aeneral education grew by 76Z (9.9? annually) and in higher education (excluding students abroad) by 556? (37Z annually). At the secondary level, growth was particularly high in the upper cycle (141?), resulting in an enrollment ratio for that cycle which is almost three times that of Senegal and four times that of other Sahelian countries. With about 7,424 students in 1987/88 (including 1,857 abroad), Mauritania now has the highest tertiary enrollment ratio in sub-Saharan Africa (52). Most of this growth took place at Mauritania's only University, which opened in 1981/82 (in Nouakchott) with 434 students, and grew to 3,937 in 1987/88 split between two faculties: Humanities (1,861), and Law and Economics (2,076). Annex 2-4 gives data on enrollments and graduates for secondary and higher education. 2.5 The above rapid enrollment growth has resulted largely from two factors. First, development of post-primary education in Mauritania is of recent date, and the system has not yet established the selection mechanisms common to other African countries. As a result, almost all those who successfully complete one cycle can continue to the next.  Second, a generous scholarship policy has stimulated demand (para 2.15). As a consequence, the number of higher education graduates will increase sharply in the next few years. This comes at a time when the Government has practically frozen new recruitmenit (except for teachers), the para-public sector is compressing its labor force, and the possibilities for employment in the formal private sector remiain very limited. Total modern sector employment is about 46,000 (7? of the economically active population), of which almost 601 is in the public and para-public sectors. 2.6 If no corrective action is taken, the magnitude of Mauritania's unemployment problem among university graduates is likely to become even more severe than in other countries in the region. In 1906, the country had 4,208 civil servants trained at this level. The same year, there were 84 vicancies for this category, 75 of which were for teachers. This compares to 795 graduates from national post-secondary institutions. As the age structure of the labor force is very young, replacement needs are minimal (about 20 annuelly for post-secondary g-aduates). A 1987 study estimates the total public and private sector demand for such graduates at about 250 per year during the next five years; this is less than the number of Mauritanians who return each year from training abroad (320 in 1987). While the Government's efforts to bring about adjustment and economic growth should help stimulate private secto. demand for post-secondary graduates, employment prospects for the type of graduates trained at the University (humanities and social sciences) are likely to remain modest in the foreseeable future. Therefore, given the country's low development of primary education and severe budgetary constraints, training of graduates from these fields of post-secondary education should in the future, and to a much larger extent than in the past, compete for public funds on the basis of labor market demands, and not on the notion that such education is a privileged activity largely exempted from economic considerations. 2.7 Output mix. In addition to containing overproduction of graduates in fields of study where employment prospects are poor, there is a need to better adjust the type and level of training provided to labor market demands, as excess supply in some areas coexists with severe shortages of key techni6al and managerial skills. Mauritania's modern sector labor force comprises a high share of persons who are either trained at the post-secondary level (12Z), or who are illiterate (28?), while the proportion trained at the secondary level and holding positions as middle-level cadres/technicians (18Z) or skilled workers (22?), is low (the remaining 202 are primary school graduates). Three recent studies have found shortages of middle-level technicians and skilled workers. Estimates of annual demand until 1995 range from 1,300 to 1,600 for skilled workers (normally lower secondary education graduates) and from 1,000 to 1,200 for middle-level cadres/technicians (normally holding the baccalaureat). 2.8 While current enrollment trends would produce a number of graduates that would exceed the above estimated demands for trained labor, a very small part of this enrollment is in technical or scientific fields of study. In higher education, almost all students studying in Mauritania are enrolled in humanities and social science programs. Training in natural sciences and mathematics has, until recently, been limited to teacher training programs. The main objective of the newly created Higher Institute of Science (ISS) is to provide science programs that address skill shortages in the Hauritanian economy. However, while enrollment in national institutions is largely in the humanities and social science  - 4 - programs, 812 of the 1,763 students studying abroad in 1986/87 were enrolled in medical (562 students), engineering (721), or natural science programs (147). Therefore, any manpower shortages in these areas are only partly due to a paucity of trained Mauritanians. As regards secondarv education, only 4? of enrollments are in technical schools, which provide rigid industrial programs that do not reflect changes in the structure of the Mauritanian economy -- hence the need to restructure and diversify the training of middle-level technicians and skilled workers away from traditional technical schools, towards short-term vocational programs that better respond to training needs in rural areas and in the informal sector. However, since technical programs are more costly than general education and because of the limited size of the labor market, such programs should be developed in close consultation with prospective employers, and they should be of short duration and flexible enough to allow for change when the market for a particular skill is saturated. There is also a need to strengthen and diversify programs designed to upgrade the skills of those already in the work force. 3. Poor Quality of Education 2.9 The quality of education in Mauritania is poor as evidenced by low and declining internal efficiency and examination pass rates at all levels of education. In primary education, the level of repetition is 14-212 in Grades 1-5 and 392 in Grade 6. Almost 302 of pupils drop out prior to the final grade, and only about 352 of those who took the primary school leaving examination in 1986 passed. The low efficiency is explained by factors such as overcrowded classes (para 2.2), severe shortages of training material (about three pupils per textbook for Arab language classes in urban areas; even higher scarcity in rural areas and for bilingual classes), and low quality of, and lack of support to, teachers (teachers' guides are scarce and those available are outmoded; in-service training is practically nonexistent and the inspectorate staff lacks the physical means to conduct school visits). 2.10 In general secondary education, the most obvious indication of declining quality is the falling pass rate for the baccalaureat, from 50.2? in 1980 to 25.8? in 1987 (21.5? in the natural science stream). This low quality of general secondary education -- which accounts for 94? of total secondary enrollment and consumes 292 of the education budget -- severely limits the overall contribution of education to social and economic development. Because general programs are less costly than vocational and technical programs, and because they provide skills that have both broad vocational relevance (e.g., language, mathematics, science) and enhance students' future trainability, good quality general secondary education is of crucial importance in the development process. In higher education, the internal efficiency is low in all institutions, but especially at the University where only about 222 of those who enter graduate at the end of the four-year cycle. This low internal efficiency in post-primary education is largely caused by low achievement levels of primary school leavers, lack of selectivity in entry to the two cycles of secondary education and the University, and scarcity of pedagogical materials and equipment. Annex 2-4 provides data on examination results in general secondary education.  - 5 - 4. Severe Financial Constraints and High Unit Costs 2.11 Severe budaetary constraints. Measured in constant prices, GNP per capita and the government budget declined during the last ten years. The share of the government budget devoted to education increased from 182 in 1975 to 25Z in 1983, but declined to 22Z in 1987. The financial squeeze in the education sector, arising from rigid budget ceilings and rising costs, is likely to become even tighter in years to come. On the one hand, the modest prospects for economic growth in the medium term and the many competing claims on public budgets leave little room for additional public funds foi education. On the other hand, as the school age population increases by about 3Z a year, and the aging of the teaching force implies an automatic annual increase in the salary budget, continuation of present policies will necessitate more funds even to maintain present enrollment ratios. Thus, the prospects for the expansion of and quality improvements in primary education depend largely on the extent to which the Government -- through increasing primary education's share of the education budget, and more efficient use of available resources and increased private financing -- can reallocate resources in favor of this level of education. Simulations indicate that, if the education budget were to increase (in real terms) by 3? a year and primary education were to maintain its present modest share of this budget (32?), the primary enrollment ratio would decline from 55? in 1986187 to 46? in 1993/94 (Annex 2-5). 2.12 High unit recurrent costs. In the early 1980s, education costs in Mauritania were among the highest in sub-Saharan Africa. 'While measures taken by the Government in recent years have caused costs to decline, they still remain comparatively high in secondary and higher education. In secondary education, the high costs are largely due tot (a) generous provision of non-teaching staff (252 and 19? of all salary costs in the first and second cycle, respectively); and (b) high share of expatriate teachers (28? in second cycle general, 34? in teacher training, and 69? in technical education). In 1987, 337 foreigners taught in secondary schools (20? of the secondary teaching force), 239 of whom were recruited through bilateral assistance and 98 on local contracts. The costs to the Government of using a foreign as compared to a national teacher is only about 1.1 times higher for a technical assistant but 2.4 times higher for a teacher recruited on a local contract. Unit costs in hiRher education, which in 1983 were well above the sub-Saharan average, declined by 40? during the three-year period 1983-86, when enrollment increased by 106? compared to a 24? increase in the nominal recurrent budget. However, the comparatively low average costs (US$1,600 in 1986/87) are largely due to low unit costs at the university (about US$950); costs at some of the professional schools are three to five times higher, and there is considerable scope for savings through restructuring and consolidating existing programs. Annex 2-2 provides data on unit costs. 2.13 High unit capital costs. About 45? of existing primary school classrooms have been built and financed by local communities; the remainder has been built by the MEN and financed by foreign donors. The MEN no longer finances classroom construction in primary education, and all 214 classrooms built in 1987 were financed by local communities. Classrooms financed by donors a few years ago -- made from cement blocks and 'hard' roofs -- cost about US$17,000 (US$300 per pupil place). This high cost is due to the use of imported building materials, inappropriate design and inefficient procurement procedures, and is about four times that of  - 6 - classrooms built by local communities using local materials. However, because of poor technical knowledge among local builders and lack of maintenance, these classrooms require frequent repairs and replacement. Therefore, the annual amortization costs for the two types of classrooms, taking into account costs of maintenance, repairs and replacement over a 25-year period, are quite similar (about US$18 per pupil-year). This high cost impedes expansion of primary education. A pilot study indicates that use of simple, low-cost/low-maintenance construction techniques, based on local materials and using l_cal labor supported by trained technicians, would enable communities to build good quality classrooms for less than US$8,000. While this is about double the investment costs for classrooms presently built by local communities, because of the lower maintenance and replacement costs, the annual amortization costs would be halved (about US$9 per pupil-year). 2.14 There is considerable scope for reducing unit capital costs through more intensive use -- in some cases combined with renovation -- of existing facilities. In primary education, this may be achieved by introducing double-shift teaching in urban areas and multi-grade teaching in rural areas. In general secondary education, many former dormitories are now vacant following the recent closing of boarding schools, and many classrooms are either unusable, or risk becoming unusable shortly, due to lack of maintenance. The degree of dilapidation of the Rosso Lyc6e (the largest and oldest in the country) is such that, if not repaired, the buildings will become totally unusable in the next few years. In vocational education, the ENFACOS (National School for Administrative, Commercial and Social Training, built in 1979 with a capacity of about 350 students) stopped operating last year, and SNIM's large Center for Apprenticeship and Training in Nouadhibou is only partially in use. In higher education, a first step towards utilizing existing facilities more efficiently was made in November 1986, when the MEN decided to eliminate excess training capacity for secondary school teachers by merging the Lower Secondary Teacher Training College (CFP/CEG) with the Secondary Teacher Training College (ENS). The new ENS resulting from this merger was set up in the buildings of the CFP/CEG, while the newly created Higher Institute of Science (ISS) has been temporarily set up in the buildings of the former ENS, awaiting its future transfer to Rosso (para. 2.18). 2.15 High student subsidies. Despite more restrictive eligibility criteria for scholarships introduced in 1984 and the reduction by about 30? in the monetary allocation per scholarship, the level of student subsidies remains high. In 1988, subsidies accounted for 18Z of the budget for secondary education, 52? of that for higher education (about half of which was for students abroad), and 202 of the total public education budget. In 1986, the share of scholarship holders in secondary education was 16? in the first cycle of general education, 43? in the second cycle, 75? in technical education, and 10O? in teacher training. In higher education, 59? of the students received scholarships, ranging from 45Z at the University to 100Z in the professional schools. Considering the bleak prospects for gainful employment for new graduates and the fact that many of those who benefit from these subsidies belong to the better-off social groups, a gradual reduction in the share of public resources devoted to scholarships would seem justified from an economic as well as an equity point of view. Annex 2-6 provides statistics on scholarships.  - 7 - 5. Weak Planning and Management Capacitv 2.16 The MEN employs more than one-third of Mauritania's civil servants and manages 222 of the Government's recurrent budget. The Ministry's ability to use these resources cost-effectively is hampered by its weak capacity for planning, personnel management and supervision of the quality of instruction. For example, its planning unit is understaffed; the school construction service lacks the staff and equipment required to ensure optimal locations of new schools and to assist local communities to improve the quality of the classrooms they build; the service responsible for personnel management lacks proper records and control systems (it is estimated that 5-10Z of the annual salary budget is wasted through incorrect payments of salaries and indemnities); and regional staff lack the meanp needed to perform their control and supervisory functions. Annex 2-7 gives the organizational chart of the MEN. C. The Government's Sectoral Strategy 2.17 As part of its Economic Recovery Program, the Government defined, in January 1986, an education sector strategy addressing most of the issues outlined above. The strategy recognizes that there will be little room for extra resources for this sector in the years to come; consequently, it includes a number of cost-efficiency measures. The strategy gives highest priority to primary education, where it aims to raise the enrollment ratio by 8-12 percentage points between 1985 and 1988 and improve the quality of education at this level. The improvements are to be partly financed through a more efficient use of existing teachers and classrooms, cost recovery for training materials, financing of school construction and maintenance by local communities, and promotion of private education. In secondary education, the strategy aims to: (a) introduce more selective criteria for admission to the two cycles of general education; (b) strengthen science teaching and shift a larger share of new students to restructured technical/vocational programs; and (c) reduce costs to the Government by replacing expatriate teachers, suppressing boarding facilities, and recovering costs for training materials. For higher education, the main objectives are to direct more students towards scientific fields of study, and to reduce unit costs through a reduction in student subsidies, replacement of expatriate teachers, reduction in lodging indemnities for teachers, and more efficient use of existing infrastructure. 2.18 The initial measures taken by the MEN to use existing facilities more efficiently (para. 2.14) have been considerably extended during the preparation of the present project. In secondary education, former dormitories will be turned into teaching space, the ENFACOS building will be used for the Commercial Lyc4e to be created under the project (para. 3.24), and SNIM's Training Center will be used for the new programs for the industrial fishing sector (para. 3.30). Furthermore, in order to: (a) establish the newly created ISS in an environment more favorable than Nouakchott for natural science teaching and research; (b) use more rationally the extensive facilities of the Rosso Lyc4e and solve the student transport problem faced by this school (located some 5km outside the town) since the closure of its boarding facilities; and (c) accelerate the development of primary education in areas where enrollment, especially for girls, is low, the MEN will reorganize the present use of some existing infrastructure. The measures to be taken in this regard include:  - 8 - (i) setting up the ISS in the buildings of the Rosso Lycee -- this will require the renovation of existing facilities at the Lycee as well as some new construction, (ii) setting up the Lycee in the buildings of the Rosso Primary Teacher Training College (ENI) -- this is one of Mauritania's two ENIs; it is located in the center of town in modern facilities of sufficient capacity to accommodate the Lycee; and (iii) transferring the ENI to Aloun (located in the eastern part of the country where enrollment ratios are particularly low) -- this will require construction of a new school. The facilities freed in Nouakchott by the transfer of the ISS to Rosso, used in conjunction with those recently vacated by the National School of Administration (which has moved to a renovated former secondary school dormitory), and a newly built library and student restaurant, will allow the needs for extra space at the University to be met without making new costly investments (a US$40-50 million project had been envisaged for this purpose). 2.19 The Government's education strategy addresses the right issues and deserves support as an integral component of Mauritania's broader economic recovery program. The strategy recognizes the urgency of correcting distortions in resource allocation and use in the education sector, and measures to this end have already been introduced. However, some of the more difficult measures still await implementation because theys (a) necessarily need to be phased over several years (e.g., those aimed at more selective admission to secondary general education or at reducing scholarships); (b) would require major investments (e.g., those aimed at restructuring technical education or at improving the quality of science teaching); or (c) must be concurrent with improvements in the managerial capacity of the education sector (e.g., those aimed at improving the efficiency of resource use). A major objective of the present project is to assist the Government to further develop and implement its education strategy. D. The Bank Group's Role 2.20 IDA has supported the education sector in Mauritania through two previous credits. The first (Cr. 459-MAU, closed in 1982) provided US$3.8 million in support of vocational training for the industrial sector, manpower planning studies, and an experiment aimed at modernizing Koranic education. The second credit (Cr. 1214-MAU, closing date June 30, 1988, following two extensions) provided US$5.7 million (plus US$5.0 million cofinancing from the African Development Bank (AfDB), US$3.0 from the European Development Fund (EDF), and US$1.6 from the Government) to financet (a) creation of the Lower Secondary Teacher Training College (CFPCEG); (b) strengthening of the Vocational Training and Upgrading Center (CFPP); (c) rehabilitation and extension of the Maritime Training Center (CFPM); and (d) creation of a Bureau of Organization and Management in the MEN. Except for the CFPM component, the project has been completed without major problems. About 75Z of the CFPM component was to be financed by the EDF. Following a three-year delay in the signing of the cofinancing agreement with Mauritania, the EDF cancelled its cofinancing in April 1987 on the grounds that the constructions foreseen in the project were no longer justified since SNIH's training facilities in Nouadhibou -- which were fully used at the time of project appraisal -- are now underutilized and should be used by the CFPM. This aspect was taken into account when the training needs in the fishery Pector were reappraised for inclusion in the present project.  - 9 - 2.21 During the last year and a half, IDA has conducted an active dialogue with the Government to help translate the sector strategy outlined above into concrete investments and policy measures. To this end, several studies have been conducted to analyze key sector issues and to develop policy options to address these issues. As a result, a broad convergence of views has emerged on the approach to follow. In the coming years, the Bank Group should focus its lending in the education sector on assisting the Government to further develop and implement this strategy. In this way, IDA would help Mauritania: (a) introduce important reforms that would lay the foundation for long-term development in the education sector consistent with current fiscal and economic realities; (b) maintain an adequate level of well-targeted investments in this sector during this period of fiscal stringency; and (c) coordinate donor assistance to the education sector within a common framework. III. THE PROJECT A. Proiect Obiectives and Description 3.1 The project would help the Government implement the education strategy outlined above. The strategy comprises reforms that are expected to gradually change Mauritania's educational system from a small, costly and essentially elitist system to one that is more equitable, relevant and efficient, where priority is given to quality improvement at all levels of education and to expansion of primary education, and where enrollment growth in secondary and higher education is controlled and redirected in line with expected resource availability and labor market demands. To attain this overall objective, the project would: (1) implement a sectoral adjustment program designed to correct distortions in costs and resource allocation in the sector; (2) expand access to and improve the quality and relevance of primary education; (3) improve the internal and external efficiency of secondary and higher education; and (4) strengthen planning and managerial capabilities in the education sector. Each of these four components are described below. 1. Sectoral Adjustment Program 3.2 To ensure attainment of project objectives and help finance recurrent costs entailed by project investments, the Government and IDA have agreed on an adjustment program designed to (a) increase primary education's share of the education budget, (b) reduce unit costs, and (c) stimulate increased private financing of education. The program comprises the following measures (all budgetary targets are in nominal terms): (a) Measures to increase primary education's share of the budget: (1) Ensuring that, through FY1993, the total annual scholarship budget for general secondary education, teacher training and higher education does not exceed its FY1987 level (UM584 million); (2) Ensuring that, through FY1993,the annual rate of growth in the recurrent budget for higher education (excluding scholarships) does not exceed 3Z. The base-year figure for  - 10 - this indicator is UM400 million which corresponds to the budget voted for FY1988. The agreed upon 3? annual rate of growth includes effects of the new salary scheme for higher education and of a gradual Mauritanization of the teaching force; (3) Ensuring that, through FY1993, the annual rate of growth in the recurrent budget for first cycle general secondary education does not exceed the rate of growth in the total public recurrent budget for education; (4) Ensuring that, through school year 1992/93, the number of new entrants to the first grade of second cycle general secondary education does not exceed the 1987 level (5000 pupils); (5) Ensuring, through FY1993, an annual rate of growth in the recurrent budget for primary education of at least 92; and (6) Ensuring that, through school year 1992/93, the annual enrollment at the Higher Institute of Science (ISS) does not exceed 600 students. (b) Measures to reduce unit costs: (7) Improving the control and management of Ministry of Education's staff to eliminate current waste (para 2.16); (8) Reducing the share of foreign teaching staff in secondary and higher education, and the number of non-teaching staff in secondary education (para 2.12); and (9) Increasing the internal efficiency at all levels of education (paras 2.9-2.10). (c) Measures to stimulate increased private financing of education: (10) Introducing new incentives to encourage the development of private education (e.g., tax exemptions, facilitate access to sites and train teachers for private schools, promote inclusion of non-religious subjects in Koranic schools to increase their contribution to literacy and numeracy); and (11) Increasing private sector contributions to the financing of public education (e.g., contribution of parents to training material, of local communities to school construction, and of employers to technical and vocational education). Asuming a 3? annual real growth in the Government's budget as well as in the total education budget, measures (1) - (4) would increase primary education's share of the latter budget from 32? in FY1987 to 38? in FY1994. ?his would maintain the primary enrollment ratio slightly above its 1986/87 lewel of 55? during this period, while maintenance of the present budget sbare would imply a decline to about 46Z in school year 1993/94 (Annex 2-5). Adding measures (7) and (8) to the above, and assuming that all sawings are allocated to primary education, would allow an increase in  - 11 - primary education's share of the education budget to about 442 in FY1994, resulting in an enrollment ratio of 66Z. Finally, the further resource increase for primary education implied by measure (5) would permit achievement of an enrollment ratio of about 74Z in 1993/94. Assuming that primary education's share of the education budget remains at 442 in PY1994 (the average for sub-Saharan Africa is 432), this would necessitate a gradual increase in the share of the Government budget devoted to education, from 22.4Z in FY1987 to 24.6Z in FY1994. However, introduction of measures (9) - (11) would help minimize the need for such an increase. 3.3 The above measures would be implemented by the MEN in consultation with the Ministry of Economy and Finance. By ensuring adequate growth of primary education during the economic adjustment process and redirecting enrollments in post-primary education towards fields of study that offer greater promisc for employment, the adjustment program is expected to help redistribute the benefits of education in favor of the less well-off social groups. Prior to negotiations, the Government provided IDA with a policy statement containing the above sectoral adjustment program approved by the Council of Ministers on March 23. 1988. At negotiations, the Government gave assurances that it will, prior to October 30 of each year, starting in 1989: (a) organize a meeting to review with IDA progress in achieving project objectives including those of the adjustment program; and (b) furnish to IDA (i) the draft recurrent budget for education for the upcoming fiscal year, and (ii) the draft investment budget for the education sector for the coming three years. Both draft budgets shall be acceptable to IDA as compared to the commitments made by the Government in the Sectoral Adjustment Program. Progress in implementing that program will be monitored in accordance with the quantified indicators given above for measures (l)-(6), while progress for measures (7)-(11) will be monitored in accordance with dated covenants listed ui.der the relevant project components and specific actions agreed upon with the Government. The criteria are summarized in Annex 3-1. 2. Expansion of, access to, and improvement in the quality and relevance of primary education 3.4 To attain this objective, the project would: (a) develop designs and techniques for building low-cost classrooms and assist local communities to build 250 such classrooms, as well as renovate 50 existing classrooms; (b) improve the efficiency of the learning process; and (c) promote more efficient use of existing resources in primary education. 3.5 Classroom construction and rehabilitation. To alleviate the constraints on access to and quality of education caused by the severe shortage and overcrowding of primary school classrooms (para 2.2), and to reduce unit capital costs (para. 2.13), the project would improve the capability of local communities to construct their own classrooms by: (a) developing low-cost construction designs and techniques for such classrooms, relying largely on local materials and labor; and (b) assisting local communities, on a cost-sharing basis, to build 250 classrooms using these designs and techniques. A prototype of a low-cost classroom is under development outside Nouakchott. The walls are constructed from locally-made bricks, and the roof is based on a vault structure of plaster made from locally-available gypsum. The design minimizes the need for timber and other imported materials, and can be used by local communities with technical support from the School Construction Service to be  - 12 - strengthened under the project (para. 3.33). The design is expected to allow for a 25-year economic life with limited maintenance, and to lower unit capital costs to about half the present level. Other prototypes will be developed -- largely based on improving designs already used by local communities -- for regions where gypsum is not available or where climatic conditions differ from those in Nouakchott. 3.6 The sites for new classrooms have been identified through a survey conducted for this purpose. To develop the local communities' ability to use the new construction technique, masons and supervisors would be trained, prior to launching the construction program, through a pilot program involving the construction of two classrooms in the capital of each region involved in the project. To participate in the construction program, communities would need to: (a) provide local inputs (construction materials, masonry, labor, sanitary facilities and fencing); and (b) have a catchment area for the school sufficiently large to allow at least 35 pupils per class. Under these conditions, the project would provide complementary construction elements, technical support to ensure good building standards, school furniture, and a kit of basic classroom supplies. School furniture would be manufactured by local artisans based on existing designs. The project would also rehabilitate 50 classrooms in schools included in the construction program. Annex 3-2 describes the construction and rehabilitation program. 3.7 The project would finances (a) civil works for (i) the construction of 250 classrooms using the low-cost designs developed under the project, limited to about 50Z of total costs and comprising superstructure, joinery, painting and transport, and (ii) renovation of 50 classrooms (maximum of US$1,500 per classroom including repair/replacement of school furniture); and (b) school furniture manufacturing materials and equipment for the MEN workshop in Rosso, and a kit of basic classroom supplies. At negotiations, the Government and IDA agreed on criteria for the location of the classrooms to be built during the first year of the construction program. At the annual review meetings (para. 3.3), the Government would discuss and agree with IDA on the annual construction program for the coming year, including site selection. 3.8 Improved efficiency of learning Rrocess. The quality of primary education is adversely affected by a critical shortage of pedagogical materials and lack of support for and supervision of teachers (para. 2.9). The IPN (National Pedagogical Institute) is responsible for the development and procurement of pedagogical materials and for retraining teachers. A National Textbcok Committee approves the contents of the materials developed by IPN and tested through classroom use during one school year. Many manuscripts are at an advanced stage of development, but IPN lacks the resources required for their editing, publication and distribution, as well as for retraining teachers. To ensure a sustained supply of low-cost pedagogical materials adapted to the Mauritanian culture, and giving adequate attention to environmental and health topics, the project would provide for: (i) completion of 24 textbook titles in mathematics and reading for primary education (one book in Arabic and one in French per grade and per subject); (ii) printing of about 350,000 books from these 24 titles; (iii) development and printing of about 60.000 teachers' guides in reading, grammar, mathematics, local environment studies, oral expression and physical education; (iv) renovationi of equipment at IPN; (v) construc-  - 13 - tion and equipping of storage facilities at IPN and regional inspectorates; and (vi) in-service training of teachers, inspectors and pedagogical advisors in areas such as the use of textbooks and teachers' guides, multi-grade and double-shift teaching, school maintenance, and management and timetabling. 3.9 Until now, most textbook manuscripts developed by the IPN have been edited and printed abroad. The project would strengthen IPN's capacity to do its own editing. Moreover, when the print shop currently under construction at the IPN is operational (in 1990), it would be economical to print locally some of the materials produced under the project. The textbooks produced under the project (including those for secondary education, cf. para. 3.17) would be sold at affordable prices, and the proceeds from the sales would be placed in a revolving fund to be used for textbook renewals. The average book life is estimated at three years. As the price charged would be below cost, the Government would contribute the difference to ensure that the fund has sufficient resources to renew the textbooks on a regular basis. Annex 3-3 provides details on titles by subject and grade level, and on production schedules. Annex 3-4 gives details on the in-service training programs. 3.10 The project would finances (a) civil works to build a storeroom at 1PN and at each of the 13 DREFs (para. 3.13); (b) furniture, equipment and two vehicles; (c) printing of about 350,000 textbooks and 60,000 teachers' guides; (d) 14 man-months of specialist services; (e) in-service training of primary school inspectors and pedagogical advisors, and a two- week in-service course for all primary teachers (about 3,000); and (f) cperating costs. At negotiations, the Government and IDA agreed on the regulations governing the sales of textbooks and use of the revolving fund. The Government gave assurances that it will: (i) open and maintain a Special Treasury Account for the renewal of textbooks on terms and conditions satisfactory to IDA; (ii) replenish this account by March 30 of each year, starting in 1990, with amounts sufficient to cover the costs of developing and printing school textbooks during that year; and (iii) ensure that (a) the proceeds of all textbook sales shall be deposited into this account, and (b) all funds deposited into the account shall be used only to defray costs of printing textbook titles for primary and secondary schools. 3.11 More efficient resource use. To increase the efficiency of resource use in primary education, the project would: (a) promote multi-grade and double-shift teaching; (b) strengthen the regional inspectorates (DREFs); and (c) transfer one of Mauritania's two primary teacher training colleges from a 'high' to a 'low" enrollment region. 3.12 To promote multi-grade teaching, the project would train teachers in use of this technique and help introduce it in areas where class size is below 35. During negotiations, it was agreed that any studies and specialist services required to test and implement this method would be financed through the funds reserved for studies under the Project Coordination Unit (para. 3.36). By enlarging single-classroom schools, use of this technique would permit their operating as multi-grade schools that would admit new pupils every year instead of every sixth year as is now the case (para. 2.2). To develop a suitable system of double-shift teaching, the project would provide for experimentation with such teaching in 30 urban classrooms during one school year. The project would finance: (a) ten man-months of specialist services to help design the experiment,  - 14 - develop training material and evaluate the results; (b) training of teachers for the experimental schools; and (c) incremental operating costs. At negotiations, the Government gave assurances that it would: (i) by December 31, 1989, agree with IDA on the detailed program chosen for the experiment with double-shift teaching; (ii) start the experiment no later than October 31, 1990; and (iii) discuss with IDA the final results of the experiment no later than September 30, 1991, and implement the recommendations of the review in a manner acceptable to IDA. Annex 3-5 describes the experimentation with double-shift teaching. 3.13 To improve the capacity of the MEN to monitor resource use at the regional and school levels, support teachers and monitor the quality of instruction, organize in-service training for teachers and headmasters, and supervise school construction, rehabilitation and maintenance, the project will strengthen all 13 regional primary school inspectorates (DREFs). The project would financet (a) civil works to renovate/extend buildings for the DREFs in Atar, Nouadhibou and Akjoujt, and construct new buildings for the ten remaining DREFs; (b) furniture and equipment for the 13 DREFs including one vehicle for each! and (c) incremental uperating costs related to the vehicles. Annex 3-L# provides details on project support for the DREFs. 3.14 One reason for Mauritania's marked regional disparity in the development of primary education (para. 2.2) is that teachers trained at the country's two primary teacher training colleges (ENI) -- located within 2OOkm of each other in "high enrollment areas (Nouakchott and Rosso) -- are reluctant to relocate to teach in the interior of the country. Therefore, to train teachers among residents of the two regions that have the lowest enrollment ratios -- Hodh el Charghi (29Z for boys, 19Z for girls) and Hodh el Gharbi (46Z for boys, 36? for girls) -- the MEN has decided, within the context of restructuring educational institutions described in para. 2.18, to transfer the Rosso ENI to Aloun, the capital of Bodh el Gharbi. The capacity of the new ENI would be similar to that of Rosso, i.e., about 500 students of whom about two-thirds would be graduates from lower secondary education and would follow a three-year program; the rest would hold the baccalaur4at and would follow only the last year of the three-year program. The project would finance: (a) civil works to build the new school in Aloun; and (b) furniture and equipment for this school. Details on the civil works for the new school are given in Annex 3-18. 3. Improved internal and external efficiency of secondary and higher education 3.15 To attain this objective the project would: (a) improve the quality of science teaching in general secondary education; (b) help create science programs in higher education; (c) restructure and improve the quality and relevance of technical education; (d) strengthen and diversify skill-upgrading programs for industrial and commercial sector workers; and (e) establish training programs for the industrial fishing sector. 3.16 Science teaching in secondary education. Quality decline in general secondary education (para. 2.10) is particularly marked in the natural science stream (41? of lycee enrollments). It is caused by factors such as low relevance of programs, severe textbook shortages, theoretical bias of teaching (reflecting similar bias in teacher training and lack of equipment and supplies needed for students to perform practical  - 15 - experiments) and lack of selectivity in entry to secondary education. To remedy this situation, the project would: (i) revise science programs; (ii) develop and print 12 textbook titles in Arabic in physics, chemistry, mathematics and natural sciences for lycee students (one book per grade and per subject); (iii) provide three science blocks (each containing one laboratory for physics and one for chemistry and natural sciences) in three lycees, in order to test the conditions under which laboratories can be provided in a sustainable manner to all lycees in the future; (iv) provide a basic kit of science equipment to all the remaining secondary schools; (v) train science teachers in the use of textbooks provided; and (vi) renovate classrooms that are in a particularly serious state of disrepair. 3.17 The project would finance: (a) civil works to construct the three science blocks and to renovate about 100 secondary classrooms; (b) equipment and supplies for these three science blocks, as well as a basic kit of equipment and supplies for the remaining 17 lycees and 23 colleges; (b) specialist services to help revise science curricula; (c) printing of about 120,000 science textbooks; and (d) retraining of all science teachers (about 220). Annex 3-7 details the project's support for science teaching !n general secondary education. 3.18 Science teaching in higher education. As part of its strategy to channel a larger share of tertiary enrollments into science programs, the Government created, in November 1986, the Higher Institute of Science (ISS). The ISS was temporarily set up in buildings freed through the merger of the CFP/CEG and the former ENS (para. 2.14). Its programs -- currently being developed by ISS staff assisted by the University of Nice. France -- would focus on applied sciences in three main areas: (a) exploitation of Mauritania's natural resources; (b) problems related to food security and the environment; and (c) communication and information sciences. The training would be provided through two two-year cycles. Later on, a third cycle would be established for post-graduate studies while qualified students would go abroad to follow doctorate programs. Total enrollment at the ISS would not exceed 600 during project implementation (para. 3.2). 3.19 The project would help set up the ISS in the buildings of the Rosso Lycee (para. 2.18). To this end, it would finance: (a) civil worke to renovate existing buildings at the Lycee (about 7,000 m2 of mainly teaching space, but including boarding and restaurant facilities), and to construct some additional facilities (about 1,700 square meters); (b) equipment and supplies for eight laboratories; (c) printing of two natural science books on Mauritania, and purchase of about 3,000 textbooks; (d) six man-mor,ths of specialist services to install laboratory equipment; and (e) 24 man-months of training abroad. At negotiations, the Gover=ment gave assurances that it will, by June 30, 1989, agree with IDA on measures to ensure that beneficiaries of boarding and restaurant services at the I88 bear the cost of such services, and implement these measures when said services have become operational. 3.20 To avoid the present duplication at the ENS of courses already provided at the ISS and the University, ENS programs would be limited to providing: (i) pedagogical training to University and ISS graduates for them to become secondary school teachers; (ii) training in subject matters pertaining to management of education resources and facilities; and (iii) in-service training for education sector staff. The new ENS is  - 16 - located in recently constructed buildings that are well maintained and equipped, and only a limited amount of supplementary pedagogical materials and equipment needs to be provided under the project to support the implementation of this reform. At negotiations, the Government gave assurances that, by June 30, 1989, ENS programs would be changed as described above. Annex 3-8 details the project's support for the ISS and the ENS. 3.21 Technical education. Mauritania's technical education is largely limited to rigid programs geared towards the needs of the mining sector. As future employment creation in this sector is expected to be limited, the Government has decided to restructure technical education to increase its relevance to potential growth sectors, i.e., fisheries, service industries, economic activities related to the two new dams on the Senegal River, and small-scale enterprises. Recent studies have found shortages of middle-level technicians and skilled workers in these sectors (para. 2.7). 3.22 Mauritania has two technical secondary schools, one in Nouakchott providing both lower cycle (Technical Education College -- CET) and upper cycle (Lycee) programs, and one CET in Nouadhibou. Created in 1964, the former school has 1,069 students (1987) in overcrowded facilities meant for 600 to 700 students. The Nouadhibou CET (opened in 1984) has 94 students, enrolled in marine diesel engines and refrigeration studies designed for the fishing industry. At the post-secondary level, the Center for Higher Technical Education (CSET) was set up in 1981 to train technical education teachers and instructors for the mining industry through two-year programs. It has 42 students and shares the buildings of the lycee. 3.23 The Government's program for restructuring technical education has four main elements. First, quality and relevance would be improved by: (a) upgrading the entrance requirements to the CETs from completion of primary to completion of lower secondary education. This would ensure more mature CET students with a better general education base, which would permit shortening the CET and the lycde programs from three to two years, while increasing the part of the 36-hour weekly program devoted to professional training from 14 to 26 hours (i.e., 251 more such training during the new two-year prog:am than during the former three-year program); (b) development of curricula for the new programs; and (c) provision of equipment and training materials. To reflect this increased professional emphasis, the technical schools will be renamed, respectively, College and Lycde of Professional Training (CEP or LEP). 3.24 Second, provision of technical education would be diversified and decentralized by: (a) reorienting existing programs -- this would imply reducing enrollment in the Nouakchott CEP/LEP, whose industrial programs presently account for 92Z of technical education students, from 1,069 to 675, including 180 in new programs for the construction trades and in small appliance repair, while enrollment in the Nouadhibou CET, in programs designed for the fishery sector, would increase from 90 to 180; and (b) creating two new schools -- one CEP and one combined CEP/LEP. The CEP would be placed in Boghe and would supply trained manpower to support the rural economy along the Senegal River, including activities generated by the two new dams on that river. It would enroll 210 students in courses in automotive mechanics, gas/diesel engines, maintenance and repair of agricultural equipment and of public works vehicles, rural building trades and small-scale vegetable farming. The new combined CEP/LEP would provide  - 17 - training for secretarial, accounting and office management jobs in the commercial sector. It would be installed in Nouakchott in buildings freed by the closing of the ENFACt.3 (para. 2.18) and would accommodate 240 students split between the two two-year CEP and LEP cycles. Presently, no institution is responsible fqr providing pre-employment training in these areas, although there is a high demand for such training, especially from women (while all students in existing technical schools are male, women make up 732 of those enrolled in commercial skill upgrading courses). 3.25 Third, to minimize the need for additional budget allocations to support the two new schools, the }EN woulds (a; gradually replace foreign teachers (para. 2.12) with nationals trained at the CSET; (b) compensate for increased costs brought about by the need to hire more technical teachers (to increase from 78 to 113) by reducing the number of general education teachers (from 42 to 17) and the number of support staff (from 87 to 59); and (c) promote private sector participation in the financing of technical education. The restructuring program would result in increases of about 122 (from 1,163 to about 1,305) in total enrollments in technical secondary schools, about 602 (from 400 to about 650) in the number of graduates per year, and about 202 in the annual recurrent budget. Fourth, to enhance the graduates' chances of finding gainful employment, employers would participate in the design and financing of training programs. Measures in this regard would include; (i) the establishment of a National Council on Vocational and Technical Education (on which key Ministries, and employers' and workers' associations would be represented) to advise on issues related to course offerings, iabor market demands, and ways of increasing the pcivate sector's financing of such education; and (ii) giving employers who pay the training tax (which brings in about UM 30 million annually to the national budget) the option of using these funds to finance the training of their employees at existing schools. Moreover, annual admission to each program would be monitored to reflect changes in labor market trends. The Government's capacity to conduct such monitoring, e.g., through regular labor market surveys and tracer studies of graduates, would be strengthened (paras. 3.33 - 3.35). Annex 3-9 describes the restructuring program and details the project's support for that program. 3.26 The project would finance: (a) civil works to construct the CEP in Boghe, to extend and renovate the CEP/LEP in Nouakchott, and to renovate the CEP in Nouadhibou as well as the buildings that will house the Commercial CEP/LEP; and (b) furniture and equipment for the CEP in Boghe and for the Commercial CEP/LEP, and supplementary equipment for the CEP in Nouadhibou and the CEP/LEP in Nouakchott, as well as for the CSET, including equipment needed for new courses at the Nouakchott CEP (in small appliance repair and building trades) and at the Nouadhibou CEP (in metal boat repair). At negotiations, the Government gave assurances that, by June 30, 1989: (i) the two new schools would be legally established with curricula and conditions of admission acceptable to IDA; and (ii) measures designed to involve employers in decisions on course content and in financing parts of technical schools' operating costs would be discussed and agreed with IDA. 3.27 Skill upgrading programs. Such programs are provided at the CFPP (Vocational Training and Upgrading Center), which opened in 1981 and was supported by the First and Second Education Projects (para. 2.20). The CFPP operates under the aegis of the Ministry of Labor, and its primary function is to upgrade skills of already employed commercial and industrial  - 18 - manpower. Most courses last for nine months; students attend classes three to four hours a day and work a half day. However, since no institution provides pre-employment training for the commercial sector (para. 3.24), the CFPP has enrolled students seeking such training in its upgrading courses. As a result, the share of employed students fell from 80Z in 1981 to 45Z in 1987; the remaining students were either unemployed (30Z) or had varying degrees of commitment for employment (25Z). In 1987, the CFPP had 665 students (up from 400 in 1986 due to the opening of Arab-language commercial courses) of whom 80? attended commercial courses. 3.28 The CFPP has been successful in several respects: its courses are developed in close consultation with employers and are kept flexible to respond to labor market demands; 407 of the Center's operating costs are financed through cost recovery; and unit costs are low (about US$400 or one-third of those of technical schools) due to the double-shift system and the fact that all 17 teachers are nationals. However, the trend towards providing pre-employment training has overextended the Center's capacity, and the quality of training has suffered. T7 aM4ress this issue, the Government has decided to restore the main thrust of the Center's training to its criginal purpose of manpower skill ievelopaent, and to diversify its program to include four new courses: air-co.adit.oning and refrigeration, industrial electricity and electro-mechanics, data processing, and management of small and medium-size enterprises. In support of this effort, the project would finance: (a) civil works to construct about 600 m2 of teaching space; (b) furniture, pedagogical equipment and one vehicle; (c) 12 man-months of specialist services to help develop training programs; and (d) training of teaching staff for the four new courses. Annex 3-10 details the project's support for the CFPP. 3.29 TraininR programs for industrial fishing. In 1986, fish products accounted for 652 of Mauritania's export revenues, and the fishing sector employed about 10,500 persons, 1,600 on shore and 8,900 in the fleet (of whom 6,900 in industrial fishing). Mauritania's Exclusive Economic Zone (ZEE) is one of the richest fishing zones in the world with an estimated potential annual capture of 600,000 tons. Of the 324 modern vessels fishing in the ZEE in mid-1987, 176 were Mauritanian-owned, 78 chartered and 70 fished on license. The national fleet is owned by 20 companies (nine have state financial participation) which are *L mesented by the FIAP (F4ddration des Industries et Armements de Peche). q1- fishing sector's contribution to the economy is constrained by lack of qualified local manpower; two-thirds of those employed in the industrial fleet are foreigners. Therefore, in April 1987 the Government adopted a new sector strategy aimed at conserving resources and increasing the value added from both industrial and artisanal fishing. Accelerated skill development is a cornerstone of this strategy in order to improve surveillance of the ZEE, to replace foreigners employed in the fleet, and to increase the productivity of artisanal fishing. A recent study estimates a need to train between 2,000 and 3,100 persons (officers, engineers, deck seamen) to replace foreigners in the national fleet, and 1,600 for jobs on shore. Due to the high cost of foreign manpower and recent labor unrest, there is a growing interest among shipowners to replace foreigners. In addition, the skills of more than 2,000 existing seamen should be upgraded. 3.30 The Maritime Training Center (CFPM) in Nouadhibou (run by the Ministry of Fisheries) is the only institution designed specifically to train manpower for the fishing sector. Expansion of the Center (in  - 19 - operation since 1981) was planned under the Second Education Project, but did not take place (para. 2.20), and training at the CFPM has been limited to three-month upgrading courses for deck seamen (about 600 have been retrained). Therefore, the present project would assist the Government to strengthen and expand the training capacity of the CFPM. The original plan of constructing a new CFPM has been abandoned. Instead, the CFPM will rent SNIM's Center for Apprenticeship and Training (CAFK) which is underutilized (para. 2.14). Located 12 km from Nouadhibou, the CAFM has excellent facilities which would allow 110 students per year to be trained in one-year pre-employment courses for deck seamen, motor and refrigeration engineers, and 205 in skill upgrading courses (two four-month courses each for 60 deck seamen, and one two-month course for 85 officers). Students for engineering courses would be selected through tests among CEP graduates who, prior to admission, would spend seven weeks at sea to test their aptitude for industrial fishing. The CFPM would have one boat where students would receive practical training under conditions comparable to those prevailing in industrial fishing. A part of the costs of operating the boat would be covered through the sale of its catch. The CFPM's governing board includes representatives of shipowners and workers. The FIAP has participated in the initial design of the training programs and will contribute towards the Center's operating costs. Also, employers would contribute towards the cost of the skill upgrading courses, and would accept trainees free of charge to undergo periods of practical training. 3.31 The project would finance: (a) minor civil works to rehabilitate workshops; (b) materials and equipment including one training boat; (c) 96 man-months of specialist services; and (d) incremental operating costs on a declining basis. At negotiations, the Government provided IDA with a copy of the contract it has entered into with the SNIM for lease of the CAFM; the costs associated with this lease would be financed by the Government. During negotiations, the Government gave assurances that, by June 30, 1989, it will review with IDA: (i) CFPM's draft curriculum; and (ii) measures for securing the financing of all CFPM's operating costs by the Borrower and potential private sector contributions, and implement these measures by September 30, 1989. Annex 3-11 details the support to the CFPM. 4. Strengthening of planning and managerial capacities of key Ministries responsible for education and training activities 3.32 To attain this objective the project would: (a) improve the capacity of the Ministry of Education (MEN) to plan and manage educational development; (b) develop the capacity of key ministries to coordinate their provision of training programs with trends in labor market demands; and (c) reinforce the existing project coordination unit. 3.33 MEN. To improve the MEN's planning and managerial capacities (para. 2.16), the project would strengthen the Directorate of Educational Planning and Cooperation (DPC) and the Personnel Directorate (DP). In addition, all 13 Regional Inspectorates (DREF) will be strengthened under another project component (para. 3.13). The project would strengthen the DPC's capacity to: (a) compile, analyze and publish education statistics; (b) establish and maintain a country-wide school map; (c) monitor the development and implementation of measures to promote (i) more cost-effective resource use -- including use of multi-grade and double- shift teaching (para. 3.12), (ii) expansion of private education (para. 3.2) and (iii) a higher share of female enrollment; (d) plan and supervise  - 20 - school construction; (e) and establish a community-based maintenance system. To achieve the laet objective, the DPC's School Construction Service (SCS) would develop a maintenance manual, train teachers in maintenance procedures, and provide kits of basic tools to schools. The DP's capacity to manage MEN staff and control personnel costs (para. 2.16) would be strengthened by updating and computerizing personnel records, and by providing training and equipment. The MEN's Bureau of Organization and Management would assist in organizing training activities included under this component. Annex 3-12 details project support for this component. 3.34 The project would finances (a) furniture and equipment for the DPC and the DP including one vehicle for the SCS; (b) 96 man-months of specialist services for the DPC (36 months for an educational planner, 24 months of short-term consultants to assist in the preparation of studies, and 36 months for an architect) and 12 man-months for the DP; (c) 72 man-raonths of training abroad for the DPC and 12 months for the DP; (d) funds for organizing local training related to SCS activities, school mapping and yearly seminars for DREF staff; and (e) incremental operating costs for the DPC and funds for the DP to conduct a complete census of MEN staff. At negotiations, the Government gave assurances that it will: (i) by June 30, 1989, determine the modalities for transferring school maintenance responsibilities to local communities, develop in agreement with these communities a school maintenance system satisfactory to IDA, and implement this system as from September 30, 1990; and (ii) by September 30, 1990, develop an action program satisfactory to IDA for promoting private education. 3.35 Coordination of training with labor market demand. To enhance the Government's capacity to coordinate the provision of trained manpower with labor market demands, the project would strengthen the Human Resource Unit in the Ministry of Finance, and the Human Resource Directorate in the Ministry of Fisheries. The for.er Unit would conduct/promote studies on the supply of and demand for different types of qualified labor, and ensure that investments in the education and training sector respond to these demands. The newly created Directorate of Human Resources in the Ministry of Fisheries would do similar work pertaining to the fishing sector. Outside the project, the UNDP would establish a Manpower Planning Unit in the Ministry of Labor. The project would finance: (a) furniture and equipment; (b) 27 man-months of specialist services for the Unit in the Ministry of Finance and 12 man-months for the Directorate in the Ministry of Fisheries; and (c) studies and local seminars. Annex 3-13 details project support for this component. 3.36 Proiect Coordination Unit (PCU). To enhance the institution- building effects of the project, its various components would be executed by the services concerned. However, as the project involves four different ministries, the PCU created under the Second Education Project and located in the Ministry Finance would be maintained and strengthened to ensure overall coordination of project activities and to serve as liaison between the Government and IDA. The unit is headed by a full-time director, responsible for supervision and coordination of project activities; it would support implementation of all project components in the areas of procurement, financial administration, documentation, monitoring and reporting. The current small staff (i.e., director, administrator and support staff), would be strengthened by an architect (for the first three years of the project) to assist in implementation of hardware components,  - 21 - and by an accountant. The project would finance: (a) furniture and equipment; (b) 85 man-months of specialist services (36 months for project architect, 30 months of short-term consultant services for pre-investment studies (including any studies/experimentation required to introduce multi-grade teaching, cf. para. 3.12), and 19 months for preparation of bidding documents, evaluation of project achievements and for project audit); and (c) operating costs. At negotiations, the Government gave assurances that the PCU will be staffed as described above. B. Proiect Cost and Financing Plan 3.37 The total project costs over the five years of implementation is estimated at US$37.4 million equivalent (net of taxes and duties) with a foreign exchange component of US$ 28.5 million (76Z). Base cost estimates are at January 1988 prices. The project would be financed by IDA (US$18.2 million or 49Z of total costs), AfDB (US$17.0 million or 45Z), contri- butions by local communities to primary school construction and by the private sector to operational costs of vocational training (US$1.6 million or 42), and budgetary allocations from the Government (US$0.7 million or 2X). The AfDB would finance printing of textbooks for primary education (paras. 3.8-3.9), and all investment costs related to science teaching in secondary and higher education (paras. 3.16-3.20), technical education (paras. 3.21-3.26), and vocational programs for the industrial fishing sector (paras. 3.29-3.31). The major assumptions in arriving at the cost estimates, as well as the detailed project costs by component, cost category and source of financing, are given in Annex 3-14. 3.38 Recurrent cost implications. Project investments would generate net incremental operating costs estimated at about US$6 million over the five-year implementation period; expressed as a percentage of the 1988 education budget, the costs range from 1.4Z in 1989 to 4.3Z in 1993. Salaries for teachers for the primary schools to be built account for 48X of these costs; the remainder is accounted for by increased recurrent costs in technical education (112) and in vocational programs for the fishing sector (41Z). The sectoral adiustment program (para.3.2) is estimated to generate cost savings of about US$20 million over the five-year implementation of the project; these savings would roughly equal the additional recurrent costs implied by the adjustment measure aimed at increasing the budget for primary education by 92 per year through FY1993. In summary, incremental recurrent costs generated by the project's investments and adjustment program are comparatively low, especially when compared to the many benefits the project is expected to generate. Annex 3-15 analyzes the cost savings and incremental recurrent costs generated by the project. C. Proiect Implementation 1. Proiect Readiness. Management and Institution Building 3.39 Project Readiness. The Government has provided IDA with a policy statement containing the Council of Ministers' approval of the Sectoral Adjustment Program (para. 3.3). Implementation plans and schedules have been prepared for each component and are found in the Annexes. Suitable sites for all classrooms, schools and office buildings to be constructed have been identified, and a survey of all construction activities has been completed (civil works under the project are summarized in Annex 3-18).  - 22 - The Government, assisted by UNESCO, is finalizing a prototype of a primary school classroom. Final site selection for the annual school construction program will be reviewed by IDA each year. Furniture, pedagogical material and equipment requirements have been reviewed by IDA and found acceptable. Most construction, furniture and equipment designs/specifications, and bid documents would be available at the time of credit effectiveness. Selection of key experts and training institutions were discussed at negoti&tions. The Government has already transferred the ENFACOS from the Ministry of Labor to the MEN (para. 3.24). At negotiations, the Government agreed with IDA on the items listed in paras. 3.7 and 3.10, and provide IDA with a signed copy of the contract mentioned in para. 3.31. The cross- effectiveness condition for the AfDB credit is not expected to cause any delays as the AfDB intends to submit the project to its Board in May 1988. 3.40 Implementation responsibility and schedule. Implementation details of each component are given in Annexes 3-1 through 3-13. Implementation responsibility for each component rests with the relevant Ministry Directorate. The Project Coordination Unit (PCU) would act as liaison with IDA Cor all matters related to project execution and would support the directorates in the areas of procurement, financial administration, documentation, monitoring, reporting and preparation of annual reviews. Project execution has been cautiously planned over a five-year period. Annex 3-16 describes the PCU and indicates implementation responsibility ior each project component. At negotiations, the Government gave assurances that the project would be implemented according to the arrangements and schedules agreed to at appraisal and summarized in Annex 3-17. 3.41 Specialist services and training. The project would provide a total of 151 man-years of specialist services (of which 70% by local staff), and a total of 2,155 man-years of training (of which 93% locally arranged). During negotiations, terms of reference for the specialist posts would be agreed upon. A condition of effectiveness of the IDA credit would be that an education planner has been employed in the DPC and that an architect and an accountant have been employed in the PCU. Details regarding specialist services and fellowships are given in Annexes 3-19 and 3-20.  - 23 - 2. Procurement, Disbursement and Special Account 3.42 Procurement. The following procurement arrangements would apply: Amounts and Methods of Procurement (USS million Including contingencies) Cat eory of Exp nditure ICe LCB OTHER N/A TOTAL COST 1. CiviI Works a. General contracts - 8.80 sJ - - 80 (Parts A,D) - (3.43) (8.43) b. School construction contract. - 1.39 - - 1.89 (Part A) - (1.89) - - (1.89) c. Com_unity input/private sector - - - 1.43 (1) 1.43 2. Furniture and Non-Podagogical Equipment a. Furniture and Equipment 2.B i/ - - - 2.09 (Part. A,D,F) (1.46) - _ _ (1.46) b. Furniture for schools 1.23 d - - 1.23 (Part. A,D) - (1.09) _ - (1.09) 8. Pedagogical Materials a. Textbooks 1. 78 d/ - - - 1.78 (Part A) (0.02) _ _ _ (0.02) b. Pedagogical equipment 8.40 e/ - - - 8.40 (Parts A,D) (1.11) _ _ - (1.11) 4. Specialist Services - - 68 fl 0.21 (2) 7.07 (Parts A,D,F) - - (4.84) (0.21) (6.06) S. Training - - 0.71 g/ 0.87 (8) 1.68 (Part. A,D,F) - - (0.48) (0.87) (1.30) 8. Operating Costs - - 4.04 0.14 (4) 4.18 (Part. A,E,F) - - (3.36) (-) (3888) Total Costs 12.27 10.92 11.61 2.64 37.44 Total Financed by IDA (2.57) (5.62) (8.63) (1.08) (18.19) _ _ _ _ _ _ _ ====~~~- = == - =__ Not.s: Capital letters and figures In parentheses show the components and amounts financed by IDA. Footnotes represented by small letters indicate amounts financed by AfDB and procured under Its procedures (in USa million): (a) 4.88; (b) 0.64; (c) 0.18; (d) 1.76; (e) 7.29; (f) 2.02; (g) 0.28. Part A: Expension and Improvement of Primary Edu-ation -- financed by IDA, except printing of textbooks (AfDB). Part , : Science Teaching in Secondary/Higher Education -- financed by AfDB. Part C: Restructuring of Technical Education - financed by AfDB. Part D: Vocational Training and Upgrading Center (CFPP) -- financed by IDA. Part E: Maritime Training Center (CFPM) -- financed by AfDS, except operating cost. (IDA + private). Part F: Strengthening of Management and Planning -- financed by IDA. (1) Represent. local communities' contributions for the school construction program (labor, local building materials, sanitary facilities, fencing and cash contributions). (2) Represent. services from Volunteers. (8) Represent. local training Including most In-service training. (4) Represents Industrial fisheries" contributions to support the operating costs of CFPM. Figures maw not add i p to total d a * roundi  - 24 - 3.43 Goods, including pedagogical materials, guides and textbooks (totalling US$2.58 million equivalent), representing about 682 of the total vasue of goods financed by IDA, would be procured through international coi.petitive bidding (ICB) in accordance with IDA guidelines and grouped, to the extent practical to facilitate competition in bidding, into bid packages of at least US$150,000 equivalent. 'Where ICB procedures are used, domestic manufacturers would be given a preference margin, in accordance with IDA guidelines, of 152 for goods manufactured locally, or the applicable customs duty, whichever is less. Other contracts for civil works and school furniture financed by IDA (totalling US$5.9 million equivalent), which are small in size, labor intensive, involve widely dispersed sites, and are not likely to attract foreign bidders, would be awarded through competitive bidding advertised locally (LCB) in accordance with procedures acceptable to IDA, provided that: (a) all bids shall be opened in public and bidders' representatives shall be allowed to be present; (b) no preference margin shall be granted to domestic manufacturers or suppliers; and (c) foreign companies shall not be required to be incorporated in Mauritania in order to participate in the bidding. Items purchased under the category of operating costs which cannot be grouped into bid packages of at least US$15,000 equivalent, provided the aggregate amount of such procurement does not exceed US$4 million equivalent, would be procured through international and local shopping on the basis of price quotations obtained from at least three foreign or local suppliers to ensure competitive prices, in accordance with procedures acceptable to IDA. Specialist services and training abroad financed by IDA (totalling US$5.3 million equivalent) would be procured in accordance with IDA guidelines. Bidding packages (announcement, bid documents and proposed contract awards) estimated at more than US$150,000 equivalent, representing about 772 of the total value of IDA-financed contracts, would be suoject to prior review by IDA. The remaining 232 of contracts would be subject to either: (i) post review for contracts estimated at between US$15,000 and US$150,000 equivalent; or (ii) random review by IDA supervision missions for contracts estimated at less than US$15,000 equivalent. Procurement of contracts for components financed by the AfDB on a parallel basis (totalling US$17 million equivalent) would follow procedures acceptable to the AfDB. During negotiations, the Government would give assurances that it will apply the procurement procedures and arrangements outlined above. Procurement arrangements are detailed in Annex 3-21. 3.44 Disbursement. The regional disbursement profile is eight years. However, in view of the fact that an experienced Project Coordination Unit is already in place and that most IDA-financed activities are scheduled to be completed during the first three years of th'.e project, the IDA credit would be disbursed over a period of five and a hal.f years on th= oasis of the categories shown in the table below. The project is expected to be completed by December 31, 1993. The estimated quarterly disbursement schedule is shown in Annex 3-22, while Annex 3-23 provides a summary of national contributions to the project.  - 25 - Allocation and Disbursement of the IDA Credit (US$ million) Proposed IDA X of Expenditure Category of Exnenditure Allocation Financed by IDA 1. Civil works contracts 4.3 100? 2. Furniture and non-pedagogical equipment 2.3 1OOZ 3. Pedagogical material 1.0 1OOZ 4. Specialist services 4.7 100? 5. Training 1.2 lOOZ 6. Operating costs 3.1 80? 7. PPF 0.5 8. Unallocated 1.1 TOTAL 18.2 3.45 Snecial Account. To facilitate disbursement, US$1.2 million equivalent, denominated in convertible ouguiya, would be advanced from the IDA credit and deposited in a local commercial bank. The amount is estimated to cover about three months of expenses for all IDA-eligible project expenditures. Replenishment applications to IDA would be aggregated into packages of at least US$100,000 equivalent and would be fully documented except for expenses related to contracts and/or expenditures valued at less than US$15,000 equivalent, which would be reimbursed against certified statements of expenditures (SOEs), and for which documentation would be retained at the Project Unit for random review by IDA supervision missions and for semi-annual audits. Reimbursement applications would also include a statement of account movements since the last application, with the balance certified by the bank holding the account, and a reconciliation showing that the balance represented is the original amount less payments await'ng reimbursement of small working advances. Given the availability of the Special Account, the minimum application for direct payments would normally be for the equivalent of US$20,000. 3.46 Accounting. auditing and reporting. The Project Director would maintain separate accounts for the IDA credit, the AfDB credit and Government counterpart financing. These accounts would be further subdivided into expenditures incurred for each component. At negotiations, the Government gave assurances that: (a) all project accounts, including disbursement against statements of expenditures (SOEs), will be audited annually by an independent auditor acceptable to IDA; (b) the Government will submit the reports to IDA for review by March 31 of each year, beginning in 1990; (c) the audit reports will certify that the funds were used for the purposes for which they were provided; and (d) the Project Director will submit to IDA semi-annual reports on project implementation and expenditures by June 30 and December 31 of each year, beginning in 1989, and a completion report within six months of the IDA credit closing date. IV. PROJECT BENEFITS AND RISKS 4.1 Benefits. The sectoral adjustment program would help reallocate education resources in favor of primary education, thus ensuring an  - 26 - adequate level of investment in basic education during this period of overall economic adjustment, and a redistribution in favor of the less well-off social groups of the benefits generated by public spending on education (between school years 1986/87 and 1993/94, primary education's share of the education budget would increase from 32Z to 44S, allowing the enrollment ratio to increase from 55t to 742, and the share of female in total enrollment from 402 to 442). Together, the project's investments and adjustment measures would help increase the social returns to all levels of education by improving educational and skill levels of the labor force, thereby increasing its contribution to growth in the fishing and service industries, and improving its mastery of the technologies needed to exploit the country's meager agricultural and water resources. 4.2 Most students would benefit from the project through more relevant programs, improved availability, relevance and quality of pedagogical materials and equipment, better trained teachers and improved school buildings. Better quality primary education would increase the utility of this level of schooling to those who cannot continue and would lead to greater efficiency at subsequent levels. The restructuration, diversification and quality improvement of technical and vocational education would help reorient enrollment in line with skill shortages in potential growth sectors in the economy. Improved quality of science teaching in secondary and higher education would help correct the current literary bias in general education, while consolidation of the higher education sub-sector would help develop institutions that are economically and pedagogically viable. 4.3 Risks. The main risks area (a) the Government's ability to contain growth in general secondary and higher education and hence to provide the budgetary resources required to achieve the targets for growth and quality improvements of primary education; and (b) the capacity of the economy to generate gainful employment for technical/vocation education graduates. To address the former risk, the sectoral adjustment program includes specific measures to control growth in enrollment and expenditures in general secondary and higher education; implementation of these measures would be monitored through joint Government/IDA annual reviews. To minimize the latter risk, investments are directed towards sectors where there are demonstrated skill shortages, programs would be kept flexible to respond to changes in labor market trends, and employers would participate in the design and financing of training programs. Also, the reinforcement of the Government's capacity to plan and monitor the development of the country's human resources would help minimize these risks. V. AGREEMENTS REACHED AND RECOMMENDATIONS 5.1 Prior to negotiations, the Governments (a) provided IDA with a policy statement containing the Council of Ministers' approval of the Sectoral Adjustment Program (para. 3.3); (b) transferred, from the Ministry of Labor to the Ministry of Education, the buildings of the former National School for Administrative, Commercial and Social Training (ENFACOS) to house the new commercial Lycee (para. 3.24); (c) identified suitable sites for all classrooms, schools, and office facilities to be built under the project; and (d) reviewed with IDA the furniture, pedagogical material and equipment to be procured (para. 3.39).  - 27 - 5.2 During negotiations, the Government and IDA agreed on: (a) criteria for the location of the classrooms to be built during the first year of the construction program (para. 3.7); (b) the regulations governing sales of textbooks and the use of the revolving fund resulting from such sales (para. 3.10); and tc) terms of reference for the specia >1t posts (para. 3.41). 5.3 During negotiations, the Government gave assurances that it will (a) by October 30 of each year, starting in 1989s (i) organize an annual meeting with IDA to review progress in achieving project objectives, including those of the sectoral adjustment program (para. 3.3); and (ii) furnish to IDA (a) the draft recurrent budget for education for the upcoming fiscal year; and (b) the draft investment budget for the education sector for the coming three years. Both draft budgets shall be acceptable to IDA as compared to the commitments made by the Government in the Sectoral Adjustment Program (para. 3.3); (b) open and maintain a Special Treasury Account for textbook renewal on terms and conditions satisfactory to IDA; replenish this fund by March 30 of each year, starting in 1990, with amounts sufficient to cover the costs of developing and printing school 'extbooks during that year; and ensure that (a) the proceeds of all textbook sales shall be deposited into this account, and (b) all funds deposited into said account shall be used only to defray the costs of developing and printing textbook titles for primary and secondary schools (para. 3.10); (c) by December 31, 1989, agree with IDA on the detailed program chosen for the experiment with double-shift teaching; start the experiment no later than October 31, 1990; and review with IDA the final results of the experiment no later than September 30, 1991, and implement the recommendation of the said review in a manner acceptable to IDA (para. 3.12); (d) by June 30, 1989, agree with IDA on measures to ensure that beneficiaries of boarding and restaurant facilities at the ISS bear the costs of such services, and implement these measures when said services have become operational (para. 3.19); (e) by June 30, 1989, restrict the function of the ENS tot (i) provision of pedagogical training; (ii) training in subject matters pertaining to management of education resources and facilities; and (iii) in-service training for education sector staff (para. 3.20); (f) by June 30, 1989: (i) establish the new CEP in Boghe and the new commercial CEPILEP in Nouakchott with curricula and admission criteria acceptable to IDA; and (ii) discuss and agree with IDA on measures designed to involve employers in decisions on course content and in financing parts of technical schools' operating costs (para. 3.26); (g) by June 30, 1989, review with IDA CFPM's draft curriculam and measures for securing the financing of all CFPM's operating costs  - 28 - by the Borrower and potential private sector contit'r: !'.- ;nd implement these measures by September 30, 1989 (pPerai i.' (h) by September 30, 1989, determine the modalities for tru-s ferv:Xng school maintenance reponsibilities to local cornunities; Ao0vQ1e;. in agreement with these communities a se)ool oiaintenance systeL satisfactory to IDA; and implement this cystem as fronL Septinher 30, 1990 (para. 3.34); (i) by September 30, 1990, develop an action program satisfactory to IDA for promoting private education (para. 3.34); and (j) implement the project according to the arrangements and schedules agreed upon during appraisal, including the procurement procedures and the arrangements for project management, accounting, auditing and reporting (paras. 3.36, 3.40, 3.42, and 3.46). 5.4 Conditions of credit effectiveness would be thats (i) an education planner has been employed in the DPC and that an architect and an accountant have been employed in the PCU (para. 3.41); and (ii) conditions for effectiveness of the cofinancing by the African Development Bank (AfDB) have boen fulfilled. 5.5 Subject to the conditions set forth in paras. 5.1 to 5.4 above, the project is suitable as a basis for an IDA credit of US$18.2 million equivalent on standard terms.  - 29 - ANNEX 1-1 ISLAMIC REPUBLIC OF MAURITANIA EDUCATION SECTOR RESTRUCTURING PROJECT Basic Data Gence.al GNP per capita US$420 (1985) Land area 1,031,000 km2 Population 1.7 million (1984) of which urban 31S Population density 1.6 per km2 Population growth rate 2.12 (1980-85) Crude birth rate 45 per thousand (1985) Crude death rate 25 per thousand (1985) Infant mortality rate 170 per thousand (1985) Life expectancy at birth 45 (1985) School Enrollment Enrollment Pupil/Teacher (1986-1987) a/ Ratio (2) 2 Female Ratio Primary Education 55 40 50 Secondary Education 16 29 23 Higher Education 4.8 23 21 Education Expenditures (FY87) a/ Public recurrent expenditures on education as 2 of total Government recurrent budgets 22.02 Distribution of public recurrent expenditures by level of education: Primary Education 322 Secondary Education 392 Higher Education 252 Central Administration 3S Other 12 Public Recurrent Expenditures per Student (1984)b/ US$ Primary Education 123 Secondary General Education 502 Higher Education 1,600 (1986/87) a/ More details are provided in Annex 2-2. b/ Cost estimates include expenditures on central administration. bs annim.txt (min)  - 30 - ANNEX 1-2 Page 1 of 2 ISLAMIC REPUBLIC OF MAURITANIA EDUCATION SECTOR RESTRUCTURING PROJECT Selected Documents Available in the Proiect File 1. "UNESCO-FADES Feasibility Study on the Development of Low-Cost Education Buildings and Facilities: Mauritanie -- Etudes Pr4liminaires", UNESCO-BREDA, Dakar, November 1984. 2. "Qualification et formation en Mauritanie", ILO, Geneva, 1985. 3. "CoOt et financement de l'education et de la formation en Mauritanie", MinistOre de l'Education Nationale, BOM, mai 1984. 4. 'Annuaire des Statistiques Scolaires", 1982/83 to 1986/87. 5. "Prograume de redressement economique et financier 1985-1988: Secteur Education/Formation", Ministare de l'Education Nationale, janvier 1986. 6. 'Efficacit4 interne de l'enseignement fondamental en Mauritanie", Ministare de l'Education Nationale, BOM, janvier 1985. 7. "CoUts, financement et politique de l'education en Republique Islamique de Mauritanie', Alain Mingat et Jean-Pierre Jarousse, Ministere de l'Education Nationale, novembre 1986. 8. "Structures, coftts et financement de l'enseignement sup6rieur en Republique Islamique de Mauritanie", Jeanne Lamoure, Ministere de lVEducation Nationale, mai 1987. 9. "Projet de Restructuration du Secteur de l'Education en Republique Islamique de Mauritanie". Project preparation document prepared by the Ministere de l'Education Nationale, June 1987.. 10. "Etude sur l'adequation entre l'emploi, l'education et la formation en Mauritanie", Baccar Taoufik, Ministere de l'Education Nationale, septembre 1987. 11. 'Transformation de l'Ecole Normale Superieure en un Institut Superieur des Sciences", Universite de Nice, 1987. 12. "Etude de la formation dans le secteur des pOches: Partie I -- Etude Globale, et Partie II -- Centre de Formation Professionnelle Maritime (CFPM) de Nouadhibou", Ministere des P#ches et de l'Economie Maritime (Study prepared by RDA International), octobre 1987.  - 31 - ANNEX 1-2 Page 2 of 2 13. 'Centre de Formation Professionnelle Maritime de Nouadhibou: Volumes I et II", Ministbre des POches et de l'Economie Maritime (Study prepared by SODETEG), septembre 1987. 14. "Le systame educatif mauritanien a travers son evaluation, son contenu, son efficacite et son coat', Abdoul Sow, IIEP, 1984. 15. "Islamic Republic of Mauritanias Investment Climate Assessment and Private Sector Survey', USAID/Mauritania, August 1986. b:annl-2.txt (sar)  - 32 - ANNEX 2-1 Page 1 7o 2 MAURITANA CURRrNT STRUCTURE OF THE EDUCATION 5TM AWC h ft. lok on ___ 1SPwn Secandwv. a cwicu ~~~~~~~~~~~~ ~~~ lqs&d*poc O-U - _ C.P - CuIUaot dAoflhj ~~~WEVSRuRM do PE Rabltd TtugwitYtli M - Mtu~ (Wi~fhIywm.) MEnowb SWoI gabo (FinaLnudfamxit CA -kgb 4omc.widwuftttwf In b MS-i MT _ I -mom" ax*-vft me) __ l~ ~~Cfdlrvcl dwtWdm*WtC" PER_EONO  - 33 - ANNEX 2-1 Pale 2 of 2 MAURIAA POPOSED STRUCR OF 1KE EDUCATION SYSIEM W anIC . . 2 d b m 1 31_ mwmv~ ~ ~~Ei _ E E R *1 2j X 4 Z 4 4 ~~~~~4 4