Djibouti - Manpower and Education Development Project

Document of The World Bank FOR OFFICIAL UFE ONLY Report No. P-5149-DJI MEMORANDLTM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 4.6 MILLION TO THE REPUBLIC OF DJIBOUTI FOR A MANPOWER AND EDUCATION DEVELOPMENT PROJECT DECEMBER 1, 1989 4~~~~~~~~~~~~~~~~~~~~~~ This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENT Currency Unit = Franc Djibouti (FD) US$1 FD 176.83 FD100 = US$ 0.5i MEASURES Metric British/US Equivalent 1 meter (m.) X 3.28 feet 1 square meter (sq m.) - 10.76 square feet 1 kilometer (1 km.) = 0.62 mile 1 square kilometer (sq km.) = 0.39 sq. mile GLOSSARY AND ABBREVIATIONS AfDF African Development Fund CRIPEN National Center for Education Research, Information and Production EDF European Development Fund NCTE National Council for Training and Employment UNDP. United Nations Development Program SSP Service for Studies and Programming Fiscal Year School Year January 1st - December 31 October - June  FOR OFFICIAL USE ONLY DJIBOUTI MANPOWER AND EDUCATION DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: Government of Djibouti Beneficiary: Ministry of National Education Ministry of Labor and Welfare Prime Ministry Amount: SDR 4.6 million (US$ 5.82 million) Terms: Standard, with 40 years maturity On lending terms: Not applicable Financing plan: IDA US$ 5.82 million UNDP US$ 0.42 million EDF US$ 0.40 million Government US$ 0.88 million -__------------- Total US$ 7.52 million Economic rate of return: Not applicable Staff appraisal report: Report No. 8065-DJI Map: IBRD No. 21906 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.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF DJIBOUTI FOR A MANPOWER AND EDUCATION DEVELOPMENT PROJECT 1. The following memorandum and recommendation on a proposed development credit to the Republic of Djibouti for SDR 4.6 million (US $ 5.82 million equivalent) is submitted for approval. The proposed credit would be on standard IDA terris with 40 years maturity and help support the development of human resources in Djibouti. The project would be co-financed by a United Nations Development Program grant of US $ 0.42 million equivalent and an European Development Fund grant of US $ 0.40 million equivalent. 2. Background. The shortage of qualified national personnel hinders the development of Djibouti. Technical and administrative skills are seriously lacking, which has created a need for and dependence on expatriates. Djibouti natural resources are limited. While its long-term development goal of becoming an international export manufacturing and service center relies on its capacity to develop its human resources, only 9 percent of the population is literate. In the education sector, despite considerable progress at all levels since independence in 1977, primary enrollment remains low anI access rates to secondary education are decreasing. Technnical and vocational education is largely geared to skills which are not in demand and the institutions in charge of manpower, education and training development are weak. 3. The formal education and training sector is closely modelled on the French system. In 1988, education expenditures accounted for 13.9 percent of government recurrent expenditures while total education expenditures represented, in 1986, 5 percent of GNP. These figures understate the financing available to the sector since they exclude the French contribution which more than doubles total expenditures. Unit costs are high at all education levels but the corresponding outputs are modest because of the system's insufficient relevance to local conditions, particularly at primary and lower secondary level. 4. IDA involvement in Djibouti's education sector started in 1984 through the first education project expected to be closed by June 30, 1990. The main objectives of this project, which is progressing satisfactorily, are to expand primary education in Djibouti City and rural areas and to strengthen educational planning.  - 2 - 5. Rationale for IDA involvment. IDA's assistance strategy aims at helping the government reinforce the development of the country and designing a viable long term development strategy within which IDA and other donors can provide assistance to help diversify the economy. Given the scarcity of Djibouti's natural resources and the significance of human resources in the development process, manpower and education is therefore a suitable sector in which to pursue such a strategy. IDA's involvement is justified by the agreement reached with the government on: (a) a policy framework and investment program to improve the sector's cost-efficiency, access and quality; and (b) a financing plan of the education investment program by different donors (African Development Fund - AfDF; French Government, Kuwait and IDA with co-financing of the United Nations Development Program - UNDP - and the European Development Fund - EDF). 6. Policy framework. The project would support government policies and complement other donors'contributions to the investment program. This program aims at improving the coordination of vocational training with labor market patterns, increasirng access to education and upgrading its relevance and quality while improving the sector's cost-efficiency. These policies address: (a) coordination of vocational training: (i) improvement of employment data collection and analysis; and (ii) creation of a coordinating body. (b) access to educations expansion of capacity while tying it to recurrent cost financing capability. (c) quality of education: (i) improvement of the relevance of curricula at primary and lower secondary levels; (ii) strengthening of supervisory capacity in rural areas; and (iii) development of an education research and evaluation capacity. (d) improvement of the sector's cost-efficiency: (i) introduction of a new category of lower paid but qualified teachers; (ii) cancellation of new fellowships for secondary education abroad; (iii) reduction of support grants for secondary education; and (iv) review of the criteria for awarding secondary support grants and higher education fellowships (with emphasis on female enrollment). 7. Prolect objectives. The project objectives are to: (a) improve the coordination of vocational training with labor market demands; (b) increase access to primary education; (c) upgrade the quality of education at primary and lower secondary levels; and (d) improve the management of the education sector while reducing costs and improving resource allocation. 8. Project description. The project will have four main components: (a) coordination of vocational training. (i) development of the technical capacities of the National Service for Employment under the Ministry of Labor; development of data on employment and undertaking of studies geared to decision making and (ii) establishment of a National Council for Training and Employment (NCTE) under the Prime Minister to ensure proper liaison between vocational training and labor market. The project would finance technical assistance, training, equipment and furniture and related incremental operating costs.  - 3 - (b) access to primary education. Construction and equipment of three primary schools in the suburbs of Djibouti City and one school in the Southern Region (Ali Sabieh) providing an enrollment capacity, in double- shifts, of 4,500 or 17 % of 1988-89 enrollments. (c) quality of education. (a) establish a National Center for Education Research, Information and Production (CRIPEN) to (i) improve the educational programs; (ii) develop appropriate teaching guides and pedagogical documentation and (iii) evaluate the outcome of education and assist in training of education staff; (b) establish two primary school inspectorates in the rural North and South of the country to increase the freqaency and quality of pedagogical support to rural teachers. The project would finance civil works, furniture and equipment, textbooks, technical assistance and training, and incremental operating costs. (d) educational management. Strengthening of the Ministry of Education capacity for planning and management through the establishment of a Service for Studies and Programming (SSP) and related training and studies. The project would finance technical assistance, furniture and equipment, training and incremental operating costs. In addition, the project includes funds for the preparation of future investments. 9. The total costs of the project are estimated at US $ 7.52 million equivalent of which US $ 4.72 million would be in foreign exchange. The project cost summary and the financing plan are shown in Schedule A. Amounts and Methods of Procurement and Disbursement, as well as a Disbursement Schedule are in Schedule B. A timetable of key project processing events and the status of Bank group operations (IDA only) in Djibouti are given in schedule C and D respectively. A map showing the projects components locations in the country is also attached. The staff appraisal report, No. 8065-DJI dated November 17, 1989, is being distributed separately. 10. Agreed Actions. The government has agreed on the following: (a) conditions of effectiveness would be (a) the issuance of the legal texts related to: (i) the establishment of CRIPEN, nomination of its director, authorization of its budget and setting up of the commi.sions to review the primary and lower secondary education; (ii) the statute of primary education inspectors; and (b) that conditions for effectiveness of the co-financing by UNDP and EDF have been fulfilled. (b) conditions of disbursement on (i) the Nationral Service for Employment component would be the hiring of two additional staff with at least two years of higher education and (ii) the National Council for Employment and Training, the issuance of its creating decree. 11. In addition, the Government has agreed to: (a) ensure that at least 90% of primary school teachers be recruited at the level of assistant teacher (instituteur adjoint),  - 4 - (b) furnish to the association revised curricula for primary education, primary teacher training and lower secondary education, (c) replace pro-salaries for teacher trainees with reduced indemnities, (d) reduce by 602 tho number of grants in support of secondary education, (e) complete and make effective new criteria for awarding fellowships for higher education while freezing related budget, and (f) exchange views annually with the Aisociation on the Borrower's investment and recurrent expenditure budgets for the education sector for the coming fiscal year. Benefits. The benefits would bet (a) establishing a framework for expanding the education sector by increasing its cost-efficiency; tying sectoral investments to the government's capacity to meet the incremental recurrent costs and (b) improving the relevance and quality of education while assisting in institution-building throughout the sector. The most immediate impact on primary education would be an enrollment increase of 4,500 students, equivalent to about 17 percent of 1988/89 enrollments. More important long range contributions would be the restructuring and reduction of the cost of primary teachers without sacrificing qualityl important revision of the curricula at the primary and lower secondary levels and for primary teachers training leading to quality upgrading and to the progressive structuring through the National Commission for Vocational Training and Employment of the vocational training sub-sector. Risks The main risks associated with the project are the inadequate staffing and technical capacities throughout the educational and training system. Agreements reached on additional staffing and a sizable training program supplemented by special services in key areas are included in the project to help overcome these weaknesses. Recommendations. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Barber B. Conable President Washington, D.C. December 1, 1989 Attachments  Schedulo A DJIBOUTI MANPOWER AND EDUCATION DEVELOPMENT PROJECT ESTIMATED COSTS AND FINANCING PLAN PROJECT COST SUMMARY ESTIMATED COSTS FD (THOUSANDS) USt (THOUSANDS) Local Forelgn Total Local Foreign Total 1. Coordination of Vocational Training 8.0 121.0 127.0 84 684 718 2. Access to Education 278.2 267.9 681.1 1,646 1,469 8,004 B. Quality of Education 128.8 270.4 397.8 717 1,629 2,248 4. Education Management 27.8 98.8 120.9 16C 628 884 5. Studies and Future Investments 18.2 18.2 75 76 TOTAL BASE COSTS 483.7 755.8 1,189.6 2,462 4,276 8,727 TOTAL CONTINGENCIES 61.4 79.9 148.8 348 462 800 TOTAL PROJECT COSTS t/ 496.1 885.7 1,330.8 2,800 4,727 7,627 FINANCING PLAN USimillion Percent IDA 6.82 77 UNDP 0.42 5 EDF 0.40 6 Government g/ 0.88 12 7.62 100 Of which FD 17.6 million of taxes and duties equivalent to USt0.1 million.  Schedule B Page 1 of 2 DJIBOUTI MANPOWER AND EDUCATION DEVELOPMENT PROJECT PROCUREMENT METHODS AND DISBURSEMENT f Amounts and Methods of Procurement (US$ million - flgure. In parenthesis ore the amounts fInanced by IDA) Procurement Methods Total Project Element lCe LCB Other N.A. Cost Profesilonal Fees 0.1 0.1 Clvil Works 4.0 4.0 (8.4)b/ (8.4) Equipment, Textbooks, 067 0.1 0.2 1.0 VehiclIe: and Furniture (tO7)e/ (0.1)1/ (0.1)1/ (0.9) Toechnlcal Assistance 1.8 1.8 and Training Abroad t1.)1/ (1.) Incremental Operating Costs 0.6 6.5 (0.2)g/ (0.2) Studies and Preparatlon 0.1 0, of Futuro Investments (0.1)1/ (0.1) Total 67 4.1 2.2 0.5 7.5 (6.7) (8.5) (1.4) (0.2) (5.8) 33= =53=3 5R3n3 5=3t3 33333 _/ Consultant contracts would be awarded according to IDA guidelines. b/ Construction contracts for the primary schools (USU2.8), the inspectorates (US10,7), the Education Research and Production Centor and the extension of the education printshop (US30.6) would be awarded through local competitive bidding (LCB) procedurcs acceptable to IDA, In which foreign biddero have the opportunity to participate. e/ Contracts for major packages of equipment, textboooks, vehicles and furniture would be awarded on the basis of International competitive bidding (ICS) In accordance with IDA guldellneo Including foroign and local bidding sdvertisoment, public opening of bids and award to lowest bidder. (a margin of preference equal to 16 percent of the c.l.f. bid price of Imported goods or the actual customs duties and Import duties, whichever Is leos, will be allowed for domestic manufacturers). d/ Contracts for equipment, vehicles end furniture valued between US126,000 and US160,000 would be awarded through LCB procedures acceptable to IDA. e/ Contracts for Items of lese than USS26,000 would be awarded on the basis of at least three price quotations. f/ Technical assistance contracts would be awarded In accordance with IDA guidelines for the use of consultants. g/ Recurrent expenses would be Incurred through normal Government procedures acceptable to IDA.  Schedule B Page 2 of 2 DJIBOUTI ALLOCATION AND DISBURSEMENT OF THE IDA CREDIT DISBURSEMENT A/ (US$' 000)