Malawi - Third and Fourth Education Project : Malawi - Fourth Education Project

Document of The World Bank FOR OFFICIAL USE ONLY RePor No. 8480 PROJECT PERFORMANCE AUDIT REPORT MALAWI THIRD EDUCATION PROJECT (CREDIT 910-MAI) FOURTH EDUCATION PROJECT (CREDIT 1123-MAI) MARCH 30, 1990 Operations Evaluation Department This document has a restricted distribution and may be used by reciplents only In the performance of their oficial duties. Its contents may not otherwise be disclosed withot World Bank authorization. CFTC - Commonwealth Fund for Technical Co-operation CIDA * ;anadian International Development Assistance DANIDA - Danish International Development Agency DCA - Development Credit Agreement DDC - District Development Committee DEO - District Educational Office EEC - European Economic Comunity EPD - Economic Planning Division (Office of the President and the Cabinet) ICB * International Competitive Bidding IDA - International Development Association IPA * Institute of Public Administration JC Junior Certificate JVOC - Japan Volunteer Overseas Co-operation MBC - Malawi Broadcasting Corporation MBS M Malawi Book Service MCC - Malawi Correspondence College MCDE - Malawi College of Distance Education (formerly MCC) MCE - Malawi Certificate of Education MCETB - Malavi Central Examination and Testing Board MIE - Malawi Institute of Education mi - Malawi Institute of Management MK - Malawi Kwacha MI. - Ministry of Local Government MOA - Ministry of Agriculture MOEC - Miniacry of Education and Culture NOw - Ministry of Works MSCE - Malawi School Certificate of Education ODA - Overseas Development Administration (UK) OPC * Office of the President and Cabinet PCR - Project Completion Report PlU - Project Implementation Unit PSLC - Primary School Leaving Certificate REO - Regional Educational Office SDR - Special Drawing Rights TTC - Teachers' Training College Government of Malawi Fiscal Year April 1 - March 31 TIH WORL BANKFOR OFI L U ONLY Washagton. D.C. 20433 USA OAce el Dimctor-Generd Operatikne lteduhan March 30, 1990 MERORANDUM TO THEEXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Performance Audit Report: Malawi - Third Education Project (Credit 910-MAI) and Fourth Education Project (Credit 1123-MAI) Attached, for information, is a copy of a report entitled "Project Performance Audit Report: Malavi - Third Education Project (Credit 910-MAI) and Fourth Education Project (Credit 1123-MAI) prepared by the Operations Evaluation Department. Attachment This document has a estricted distuibution and mey be used by rcipleWas only in the performance of their offcial duties. Its coantats may no otherwise e discosed without WorM Bank authoriastion. PROJECT NLOU3WO ARI R MALAVI THIRD EDUCATION PROJECT (CREDIT 910-MAI) FOUTj= EDUCATION PROJECT (CREDIT 1123-all Table of Contents Page No. PREFACE ...................................................... i BASIC DATA SHEET ............................................. ii EVAUATION SMMAY ........................................... x PROJECT PERFORMANCE AUDIT REPORT 1. Project Background .......................... 1 Introduction ........................................ 1 Project Objectives and Scope .. 2 Project Cost and Financing Plan ... 3 Implementation Plan ................................. 3 II. ProlectImplementation_and_Outcome ................ 4 Project Management and Implementation Process ....... 4 Civil Works ....................................... 4 Furniture and Equipment ...................... 5 Technical Assistance ........................ ...... 5 Project Cost ........................................ 5 Sustainability ...................................... 6 Bank Group Performance .............................. 6 III. Findings and Issues ........................ ..6......6 Overview ........................................... 6 Project Design and Supervision ...................... 7 Access and Quality in Primary Education ............ 9 Access and Quality in Secondary Education ........... 10 This document has a restcted dbtbutk and may be used by rcints ony In ts perfmanme of thr offcial dutes. Its contents may not otherwise be discosed without WorM Bank sutherladon. PROJYMT PE&EOMUMC AUDIT REMR NALAWI THIRD EDUCATION PROJECT (CREDIT 910-MAI) FURTH EDUCATION PROJECT (CRED 1123-MAI PREFACE This is a performance audit of two education projects in Malavi: the Third Education Project, for which Credit 910 in the sum of US$14.5 million equivalent was approved on May 17, 1979, and EEC Credit 12-MAI in the amount of US$7.5 million equivalent was signed on June 19, 1979; and the Fourth Educatio. Project, for which Credit 1123 amounting to US$41.0 million equivalent (SDR 32.2 million) was approved on March 26, 1981. The Closing Date for Credit 910 was postponed from June 1984 to December 1985, although disbursements continued through February 1988 when an undisbursed balance of about US$524,000 was cancelled and the account closed. Like- wise, the Closing DAte for Credit 1123 was postponed from December 1985 to December 1986, and the account was finally closed in July 1987 when an undisbursed balance of SDR 8.28 million (about US$10.50 million equivalent) was cancelled. As the projects shared certain broad objectives and over- lapping components, a single audit covering a longer implementation period would provide a broader perspective of implementation experience and lessons learned. The PPAR is based on the Project Completion Reports (PCR9), on the Third Education Project (Credit 910-MAI) and !ourth Education Project (Credit 1123-MAI);Y the respective Credit Agreements (dated June 19, 1979 for Credit 910 and May 29, 1981 for Credit 1123), Staff Appraisal Reports (No. 2277-NAI, dated May 1, 1979 for Credit 910, and No. 3183-MAI, dated February 18, 1981 for Credit 1123), and President Reports (No. P-2475-MAI, dated May 2, 1979 for Credit 910 and No. P-2940-MAI, dated March 6, 1981); Board discussion records of these projects; internal Bank memoranda on the projects; discussions with Borrower and Bank staff associated with the projects; and correspondence with the Borrower in regard to Credit 1123 only, as all the correspondence pertaining to Credit 910 was lost by the Region during the Reorganization. Selected project institutions were visited by an OED mission to Malawi in July 1988, following the receipt of draft PCRs on the two projects. The two PCRs provide a generally satisfactory account and assess- ment of project experience and review the performance of the Bank Group and the project executing agency. The PPAR agrees with the main conclusions of the project evaluation summaries of the PCRs. In addition, the PPAR high- lights some key issues arising in regard to primary and secondary educa- tion. The Operations Evaluation Department acknowledges the cooperation accorded the OED mission by the Ministry of Education and Culture, espe- cially the Planning Unit and the Project Implementation Unit. As is customary in the preparation of audit reports, copies of the draft audit report were sent to the Borrower and the co-financier for comment in December 1989. No comments have been received. 1/ The PCRs were prepared by UNESCO on behalf of the tfrica Regional Office, and issued by OED as Report Nos. 8196 and 8195 tespectively on November 27, 1989. fallDI 910-RAtt Rev. Proleet Data Item Appraisal Actual Estimate Total Project Cost - in USS (million) 26.62 25.85 - Cost underre f (5) - 3 - in mucha (million) 22.10 26.48 - Cost overrun (5) * 20 Credit Amount (US$ million) IDA 14.5 EEC (US$ million equivalent) * 7.5 - Disbursed (IDA 23 June 1986) * 13.97 (EEC Aug 1982) * 6.781J - Cancelled (IDA 23 June 1966) * 0.53 (MEC) 0 - ABpaid- * Outstanding (IDA) (31 Moy 1988) 13.97 Date Physical Components Completed 31 Dec. 1983 31 Nay 1986 No. of Months since Credit Signature 54 83 Proportion Completed by above Date CS) 100 Tim overrun ( 54 Date of Overall Project Copletion 31 My 1986 No. of manths since Credit Signature 54 83 Proportion completed by above date (5) 100 Tim overrun (5) 54 Institutional Performance Good Good camelatie Estimated ad Actul elsbursemeat (US$ Willis") M mL z nu taI EM no A E UaM Appzala Sat. (IDA) 0.10 1.30 4.90 10.20 14.20 14.50 Appaisal Rat. (XBC) 0.0 2.45 7.00 7.30 Actual (IDA) 0.26 2.44 5.92 10.28 12.37 19.18 13.93 13.97 Actual (BBC) 0.0 1.71 6.56 6.78 Actual as a of nstaste (IDA) 260 288 120 100 87 91 96 96 (MB0) - 70 94 90 - - )/ The currency amounts were disbursed in accordance with the Special Action Credit Agreement. The sum of US$6.78 disbursed varies from the stated Credit amount because of exchange rate adjustments during implementation between the US currency and the relevant EEC currencies. OIER PMJECT MTA Item Original Plan Actual First Mention in File - Nov 1977 Government's Application - 14 April 1978 Negotiations * 2-6 April 1979 Board Approval - 17 Mey 1979 Date of Credit Agreement 19 June 1979 Effectiveness Date 19 Sept 1979 19 Sept 1979 Closing Date : IDA 30 June 1984 31 December 195* EEC 31 December 1982 27 August 1982 Borrower Republic of Nalawi Executing Agency Ministry of Education and Culture Fiscal Year of Borrower 1 April to 31 March Follow-on Projects: Name Fourth Education Fifth Education First Education Sector Credit Credit Number 1123-MI 1330-MI 1767-MI Amount of Credit (US$ million) 41.0 34.0 27.0 Credit Agreement Date 29 Nay 1981 5 Fay 1983 7 May 1987 * The CreLt Account was closed on Februay 12, 1988 when the undiabursed balance of W$23,7$6.34 oanaelled. COUNTRY EXCHANGE RATES Name of Currency (abbreviation) : Malawi Mascha (NK) Exchange Rate Appraisal Year (1979) US$1.00 - MKO.83 Intervening Years (average) US$1.00 * MKl.18 Completion Year (1986) US$1.00 * NK2.46 (Staff week*) zz 7A ZZ 2 2 22 IMR M aE 1 ft l.a 1" Pre- appraisal 1.3 0.2 16.8 0.2 - - - - - - - * 18.5 AppraLsaL - - 0.1 62.2 - - - - - - - - 62.3 Nesotiation - - - 13.9 - - - - - - - - 13.9 Supervision - - - 6.2 10.1 5.7 21.7 9.9 13.5 4.9 2.6 7.2 81.9 Total 1.3 0.2 17.0 82.6 10.1 5.7 21.7 9.9 13.5 4.9 2.6 7.2 176.7 iSSION MA Seat -bnth/ No. Of No. of Staff I-te of By Year weeks Persons Weeks Report Sector Survey/Identification IDA/FA0 Nov 1977 n.a n.a 17.0 Feb 19781 Preparation IDA Feb 1978 2.0 1(SNS) 2.0 Kar 1978 Appraisal ICA Jul 1978 3.0 S(A.E,EP,NS,GE) 16.0 1 Oct 1978 Post-Appraisal IDA Dec 1978 1.0 2(A,EP) 2.0 4 Jan 1979 Total A.0 SupervisionY 1 IDA Dec 1979 0.2 6(EP.E.A.E.P.NS) 1.2 30 Jan 1980 Supervisionj/ 2 IDA Jun 1980 0.5 3(EP.E,A) 1.5 5 Aug 1980 Supervision-/ 3 IDA Nov 1980 1.0 1(A) 1.0 ! Feb 1981 Supervisionj/ 4 IDA Jul 1981 1.0 3(E.A.TE) 3.0 20 Dec 1981 Supervisioni/ 5 IDA Dec 1981 1.0 3(E.A,TE) 3.0 12 Feb 1982 Supervisio,&/ 6 IDA Feb 1982 0.5 1(EP) 0.5 22 Apr 1982 Supervision/ 7 IDA Jun 1982 0.5 3(E.EP.A) 1.5 16 Aug 1982 Supervisionlo/ 8 IDA Nov 1982 0.5 2(E,EP) 1.0 14 Dec 1982 SupervisionI/l 9 IDA Feb 1983 0.5 2(EP.A) 1.0 15 Apr 1983 Supervisionly 10 IDA Oct 1983 1.0 2(E.A) 2.0 29 Dec 1983 SupervisionlW 11 IDA Par 1984 1.0 2(E.A) 2.0 19 Apr 1984 SupervisionlW 12 IDA Oct 1984 1.0 2(M.A) 2.0 21 Nov 1984 SupervisionlI 13 IDA Jul 1985 1.0 2(A,OA) 2.0 15 Oct 1985 Supervisionll/ 14 IDA Jun 1986 1zo 3(E.GE.A) 3.0 22 Jul 1996 Sub-total 24.7 Completion IDA Mbr 198t 2.0 1(A) 2.0 Jun 1987 Unesco Nar 1988 0.5 2(A,GE) 1.0 (Dec 1988) Total 27.1 A - Architect S a lbss-media Specialist E * Economist O * Operations Assistant EP - Education Planner P a Printing Consultant GE - General Educator SNS a School-Mbpping Specialist TE - Technical Educator J/ The Project was identified during the Education Sector Review. The identification report was dated February 1978. j The Project was prepared by the GovernMnt. School-mapping was carried out to support the Government preparation work. 1/ Combined with supervision of Education II atd preliminary discussions on Education IV. 4 Combined with appraisal of Edu-ation IV and SPN of Education II. Y/ Combined with supervision of Education II and pre-negotiations discussions on Education V. V/ Combined with supervision of Education II, IV and a reconnaissance of Education V. Z/ Combined with supervision of Education IV and preparation of PCR on Education II. 8f Combined -th supervision of Education IV and identification of Education V. 2/ Combined with supervision of Education IV and appraisal of Education V. 1JO Combined with supervision of Education IV and post-appraisal of Education V. 1J1 Combined with supervision of Education IV and discussions on implementation of Education V. ly Combined with supervision of Education IV and V. 13f Combined with supervision of Education IV, V and appraisal of Education VI. ALLOCAMON OF CUDIT PROCEEDS Credit 910-MA Original Actual Category Allocation Disbursements Civil Works 1,070,000 9,874,400.68 Furniture 1,920,000 1,430,350.80 Equipment 960,000 997,518.71 Consultant services 580,000 1,005,328.60 Studies 290,000 54,884.36 Project Administration 480,000 604,760.51 Unallocated 3,200,000 - Total dibued 13,9M?,3.88 Cancelled 532,758.34 Toal Creit 14,500,000 14,5,000.00 Credit EEC 12-MAI (118$) Categor Original Actual Allocation Disbursement Primary textbooks 2,800,000 2,530,089.60 Civil Works 2,100,000 3,006,947.88 Equipment 1,000,000 1,199,679.94 Furniture 200,000 47,545.89 Unallocated 1,400,000 - Total diaM 6,784,263.31. V1 Ae"tLas to the Dsbursma offieer, Counay Team AF, the last pPment tar Credit 910 ws mede with Appieetime No. 128 on July 23, 196, for UK 74,314.12 (UB$40.924.80 oquivalent). An undisbugase balance of =Sss,7s6.34 was canoelled on rebuaWs 12, 198. Thus, the total amuncS diasbused at o4e*lled were Disbursed US$13,976,243." Cancelled s2s,756.s4 M8814.500,000,00 It The dUftemene between the actual diabursement sag the EBC Credit of Us$7.5 Million is due to the eobante rate adjusteant. * VI * FUIRTS EDUCATIU PAA1ECT CMERIT 115MBlam BASC DATA Key Prject Data Appraisal Estimate Actual Total Project Cost - In US$ million 53.76 33.301, - Underrun (%) - 38.1 1/ - In Malawi Kwacha (million) 42.74 45.8W" - Overrun(%) 7.3 Credit Amount - In US$ million (equivalent) 41.00 41.00 - in SDR million 32.20 32.20 Disbursed (US$ million)(30 October 1987) - 25.20 (SDR million) - 23.92 Cancelled (US$ milllon)(30 October 1987) - 10.50 (SDR million) - 8.28 Repaid - - Outstanding (US$ million) - 30.52!2 Date Physical Components Completed 30 June 1985 June 1986 eroportion completed by above date (%) - 95 No. of months since Credit Signature 49 61 Time Overrun (%) 27 Date of Overall Project Completion 30 June 1985 December 1986 Proportion Completed by the above datb (%) 100 100 No. of months since Credit Signature 49 67 Time Overrun (%) - 37 Institutional Performance Good Good Cumulative Estimated and Actual Dilmraemeat En a EA EMA EWla lU E Appraisal Rat. (USS) 0.50 9.00 25.0 37.00 41.00 Appreasal Est. (SDR) 0.39 7.07 19.63 29.06 32.20 Actual (US$) 4.37 11.00 18.10 23.00 24.57 23.20 Actual (SDR) 0.0 3.96 10.15 17.07 21.94 23.43 23.92 Actual as I Est. (5) 48 44 49 56 60 61 (KU) 5 52 59 i8 73 74 1t The devaluation of the Natudan Keacha during the project Ialemntation period accomted for much of the difference between apraisel estiated and actual project cost. omn the Credit Agre-ent was signed in fay 1981, the exchange rate was US$1 * N 0.895 and Wien the project was completed in December 1986. the rate was LWi a N 2.46. Vl Includes an exchane adjustment of USS5.3 million. I/ T: * onvrson of actual SOts disbursed into US doters oqivalent wse based on year everages of SDA eshae rates for the relevant years. Source: INF, International Financial Statistics, November 1989, p. 18. Other Project Data Original Revisions Actual Plan First Mention in files April 1979 Government's Application February 1480 Negotiations - 14-16 January 1981 Board Approval 26 March 1981 Date of Credit Agreement 29 May 1981 Effectiveness Date 27 August 1981 2 Oct 1981 Closing Date 31 December 1985 31 Dec 1986 31 Dec1986* Borrower Republic of Malawi Executing Agency Ministry of Education and Culture Fiscal Year of Borrower 1 April - 31 March Follow on Projects Name : Fifth Education First Education Sector Credit Credit Number : 1330 - MAI 1767 - MAI Amount of Credit - US$ (million) : 35.761/ 27.0 Credit Agreement Date: 5 May 1983 7 May 1987 Country Eodhane Rate Name of Currency : Malawi Kwacha (MK) Exchange Rates : US$1 = MKO.795 Appraisal Year 1980 Intervening Years (annual average): 198i US$1 = MKO.895 1982 US$1 = MK1.055 1983 US$1 = MK1.175 1984 US$1 = MK1413 1985 US$1 = MK1.719 Completion year : 1986 US$1 = MK2.46 1/ SDR million 30.9 * The credit account was closed on July 30, 1987 when the undisbursed balance of SDR 8.28 million was cancelled. MISION DATA Missfen Sent Month/Year No.of Wo.of Utaff Date of Weeks Persons Weeks Report Identification IDA June 1979 n.a n.a n.a July 1979 Pre-Appraisal IDA Nov-Dec 1979 3.0 5(A,E,GE, 15.0 Jan 1980 AV,TVE,P) Appraisal IDA May-June 1980 n.a (E,FPL,A) n.a 18 Feb )981 Total 15.0 Supervistan- 1 IDA July 1981 1.0 3(EPL,E,A) 3.0 28 Sep 1981 Supervisi 2 IDA Nov-Dee1981 1.1 3(E,A,TVE) 3.3 25 Jan 1982 Sprso 3 IDA Jan-Feb 1982 0.5 1(EFL) 0.5 26 Apr 1982 SupervisioT 4 IDA May-June 1982 1.0 3(EPL,E,A) 3.0 24 Aug 1982 SupervisionV 5 IDA Oct-Nov 1982 0.5 2(E,EPL) 1.0 9 Dec 1982 f /6 IDA Feb 1983 0.1 2(EPL,A) 0.2 15 Apr 1983 Supervision, 7 IDA Oct 1983 0.8 2(E,A) 1.6 29 Dec 1983 Supervisioat 8 IDA Feb-Mat 1984 0.7 2(E,A) 1.4 16 May 1984 SupervIsion 9 IDA Sept-Oct 1984 0.6 2(E,A) 1.2 21 Nov 1984 Supervisio 10 IDA July-Aug 1985 0.4 2(EPL,A) 0.8 15 Oct 1985 8/ Supervision , 11 IDA May-June 1986 1.0 4(E,A,GE) 4.0 28 Jul 198e Supervision- 12 IDA Dec. 1986 0.5 3(2E,A) 1.5 29 Dec 1986 SupervizIo 13 IDA April 1987 0.2 1(E) 1.2 17 Apr 1987 Sub-t otal 8.4 22.7 Completion Unesco Feb-Mar 1988 2.7 2(EPL,A) 5.4 (July 1988) -111 Total 28.1+-- n.a. = not available. Some files were not availatle at the time of the mission. References: A = Architect AV = Audio-Visual specialist E = Economist EPL = Education Planner GE = General Educator F = Printing Specialist TVE = Technical/Vocational Specialist L/ Combined with supervision of the Second and Third Education Projects and a reconnaissance of the Fifth Education Project. 2/ Combined with supervision of the Third Education Project and preparation of PCR on the Second Education Project. 3/ Combined with supervision of the Third Education Project and identification of the Fifth Education Project. 4/ Combined with supervision of the Third Education Project and appraisal of the Fifth Education Project. 5/ Combined with supervision of the Third Education Project and Post-appraisal of the Fifth Education Project. 8/ Combined with supervision of the Third Education Project and discussions on implementation of the Fifth Education Project. 7/ Combined with supervision of the Third and Fifth Education Projects. 8/ Combined with supervision of the Third and Fifth Education Projects and appraisal of the First Education Sector Credit. 9/ Combined with supervision of the Fifth Education Project. 10/ Combined with supervision of the Fifth Education Project and discussions on the First Education Sector Credit. 11/ The number of staff weeks was estimated roughly on the basis of the number of projects supervised. -ix - Alocation of Credit Proceeds Amount Actual Allocated Disbursement Category (SDR equivalent) (SDR) Civil Works 18,640,000 19,640,604.64 Furniture 1,730,000 560,788.21 Equipment 1,830,000 1,308,547.06 Operating expenditure of PIU 400,000 926,279.89 Consultants' Services Parts A and B 1,970,000 1,409,540.03 Part C 70,000 77,345.85 Unallocated 7,560,000 Total Disbursed 23,923,105.68 Cancelled (30 October 1987) 8,276,894.28 Total Credit 32,200,000 32,199,999.96 (Stat weeks) J2n fi M11 a~ 11 All aI Al a 2ML app=a1 0.s s0.8 0.1 - - - - - - 21.4 Appra"" - 6.4 28.2 - - - - - - 34.6 Negottatoef - - 12.1 - - - - - 12.1 SupeVLsion - - 0.1 15.0 10.0 12.0 8.1 9.1 5.5 0.1 59.9 Otser - - 0.2 - .1.5 0.5 - - - - 2.1 Total 0.5 27.3 40.6 15.0 11.4 12.3 8.1 9.1 5.5 0.1 130.1 MAIAWI THIRD EDUCATION PROJECT (CREDIT 910-MAI) FOURTH EDUCATION PROJECT (CREDIT 1123-MAII Introductio The Third Education Project (Education III) was first discussed with the Government during an IDA Education Sector Review mission in November 1977. Following the Government request in April 1978 for financing, the project was appraised in July 1978 by an IDA mission, which was followed by a post-appraisal mission in December 1978. The Government also requested financial assistance from the European Economic Community (EEC). The IDA Credit Agreement and the EEC Special Action Credit Agreement, both signed on June 19, 1979, provided the equivalent of US$14.5 million and US$7.5 million respectively to help finance the total estimated project cost of US$26.62 million. The Credit Agreements became effective in September, 1979. The Closing Date was postponed from June 1984 to December 1985, but the proje- : was completed only at the end of 1986 and disbursements continued through February 1988 when an undisbursed balance of about US$524,000 was cancelled and the credit account closed. The actual project cost was US$25.85 million equivalent, about 3 percent below the appraisal estimate. The Fourth Education Project (Education IV), identified in June 1979 by an IDA mission and prepared by the Government with some IDA assistance, was pre-appraised in November 1979 during which the proposed project was reformulated to focus on areas of highest priority. The project was appraised in May-June 1980 and the estimated cost was US$53.76 million equivalent, which was to be financed by an IDA Credit of US$41.0 million equivalent (SDR 32.20 million), and by Government funds totalling US$12.76 million equivalent. The project was approved by the Board on March 26, 1981 and, following Credit signing on May 29, 1981, the Credit became effective on October 2, 1981. The Closing Date was postponed from December 1985 to December 1986. Although the project was effectively completed about June 1986, the account was closed only in July 1987 when the undisbursed balance of SDR 8.28 million was cancelled. Actual project cost was US$33.3 million equivalent, or 38 percent lower than the appraisal estimate. The large cost underrun was the result of the combined effect of the devaluation of the Malawi Kwacha and the appreciation of the US dollar against the Kwacha and the European currencies. -xi Obecties and Projegt Content Education III and IV had overlapping objectives aimed at improving efficiency and access in primary and secondary education, assisting in the provision of key manpower needed for econom,2 development, and strength- ening the planning and management of education and human resource develop- ment. Education III involved the construction of about 1,000 classrooms for 50,000 student places and 500 teachers' houses; distribution of about 2.2 million textbooks; and expansion of an existing teacher training college by 120 places. In secondary education, Education III was to pro- vide facilities and equipment for the Malawi College of Distance Education (MCDE), three technical schools, five secondary schools, an agricultural college, and Chancellor College, University of Malawi. Education IV was to provide 3,960 new secondary school places through the expansion of six existing schools and the construction of five new ones and further expand Chancellor College with 168 additional places. Education IV would also finance a number of pre-investment studies. Implementation Experience Overall the two projects have achieved their basic objectives, despite implementation delays. In Education III, implementation was delayed by, among other things, shortages of building materials and trans- port, and difficulties in managing the large, dispersed self-help primary school construction program. Nevertheless, Education III met most of its physical objectives. Insufficiency of Government funds and administrative problems, however, necessitated the transfer of the extension work on the five secondary schools and four of the five pre-investment studies to Education IV. In Education IV, project start-up was slow because of diffi- culties in acquiring consulting services for preparing tender documents for secondary schools. Actual construction work was further delayed by admin- istrative problems, shortages of bricks and cement, and the tardy release of Government funds. In physical design, the secondary schools were pro- vided with unnecessarily wide covered walkways between teaching blocks but no covered access between the walkway and the classrooms, so that there was no protection for students and teachers against inclement weather. Adjoin- ing the classrooms and some administrative areas were open patios which were not in the appraisal worksheets. As they had no particular function, they appeared to be wasteful. Education IV met most of its physical objectives. On the whole, the PIU performed well, with technical assis- tance from the Danish International Development Agency (DANIDA), the Commonwealth Fund for Technical Co-operation (CFTC), and the Japan Volunteer Overseas Co-operation (JVOC). Results The quantitative success of Education III (1,080 primary school classrooms, 50,400 school places, 2.7 million textbooks distributed) was mitigated by some significant qualitative shortfalls. The project was less successful than expected in providing more equitable access to primary schooling because the self-help school construction program resulted - xii - inadvertently in the Northern region, which already had high enrollment rates, receiving a higher proportion of classrooms than the Central and Southern regions. Some of the textbooks purchased and distributed were not up-to-date or in accord with the curriculum, and the distribution of textbooks was unbalanced, resulting in Grades 1 and 2 being better provided with books than the higher grades. While the 30 MCDE centers were duly provided with improved physical facilities, they were insufficiently equipped and inadequately provided with trained teachers to improve internal efficiency. The commercial courses in the technical schools were fully enrolled for the evening classes but under-enrolled for the regular day classes. The Colby Agricultural College, which was provided with furniture and equipment and a number of staff houses, was closed in 1983, only four years after Credit signing, and the students transferred to the National Resources College as part of the Government effort to centralize the training of technical assistants. While good work was done on the production of educational materials, the Malawi Institute of Education (MIE) could not meet the objective of providing annually six-week in- service training courses to 600 primary teachers and shorter courses to another 200 inspectors, district education officers, secondary teachers, and others, mainly because of inadequate facilities and staff. Instead, the MIS has had to modify the objective to training the trainers who would then carry out the training of primary teachers at the district and local levels. Of five main studies, only one (school mapping, whose results helped the second phase of the primary school construction program) was carried out; the rest were transferred to Education IV. In Education IV, secondary school enrollments increased by 4,370 compared with the project objective of 3,960. At Chancellor College, enrollment in the Faculty of Education increased from 314 in 1982 to 416 in 1986, while the 1986 output of 203 trained secondary teachers was 56 per- cent higher than the pre-project output of 130. Altogether twelve studies were undertaken, most of them being based on or spun off from the original four studies transferred from Education III. A National Education Plan was also prepared. Despite a few shortcomings, the studies on the whole pro- vided valuable information for the development of the education and training system. Sustainability The main primary and secondary school components, the secondary teacher training program at Chancellor College and the Malawi Institute of Education are likely to be sustained as they are integral parts of the general education system. The level of sustainability, however, will depend on the proportion of recurrent funding allocated to maintenance of physical facilities, equipment, textbooks and teaching materials. As there have been signs of deterioration of physical facilities, a serious shortage of textbooks and teaching materials, and inadequate numbers of trained teachers, it is unlikely that sustainability will be at a high level unless recurrent expenditures in the above areas are increased substantially and maintained, and more qualified teacaers are posted to the schools. - xif - Findings and Lessons Despite some design and implementation problems in Education III, overall IDA and Borrower performance was satisfactory. With hindsight, however, IDA could have done better. Evidently the quantitative aspects of the project absorbed a disproportionate amount of the Bank Group's atten- tion, and insufficient concern was shown for qualitative issues, such as the geographic distribution of primary schools and the appropriateness of the textbooks provided to the schools. Regarding the MCDE. increasing access to the centers by providing more physical facilities without a corresponding improvement in teachers and learning materials did not raise internal efficiency. In Education IV, the expansion of secondary school enrollment by about 4,400 helped to relieve the bottleneck in the develop- ment of middle- and higher-level manpower, but it was barely sufficient to keep pace with the population growth, so that the total enrollment repre- sented only about 4 percent of the relevant secondary school age group, one of the lowest in the region. Both projects evidently did not provide any significant support for institution-building. After 20 years (1967-1987) of implementing IDA-financed projects, the PIU has remained weak in tech- nical personnel which hitherto has been augmented by expatriate specialists through bilateral technical assistance. The experience of these two projects suggests the need for designing and undertaking special measures for institution-building, specifically by providing the PIU with local architects and engineers, and for in-depth sector knowledge before embark- ing on any investment in agricultural education and training. Other lessons include the following: (a) During project generation, greater attention should be given to the project's recurrent cost implications and the Borrower's ability to accommodate them to ensure that the investments made can be sustained; (b) A school textbook program should be based on a careful review of existing materials to ensure that they are appropriate for the curriculum and should have sufficient recurrent funds to replace book stocks regularly; (c) Nonformal secondary education programs, such as those offered through the MCDE, require systematic development that includes physical facilities, equipment, learning materials, and trained personnel to manage them, if they are to be effective; (d) Sufficient time should be given to develop and test a prototype architectural design intended for a number of schools before large scale construction is undertaken; and (e) Project planning should include verifying and taking the necessary steps to ensure the availability of local building materials where the project involves a large construction program. PROJECT PERFORMANCE..AUDITX.UPODT THIRD EDUCATION PROJECT (CREDIT 910-MAI) FOURTH EDUCATION PROJECT (CREDIT 1123-MAI) 1. PROJ=C _BACKGROUND Introductio 1. A realistic and pragmatic approach has characterized Malavi's economic policy since independence in 1964. Despite severe physical, financial and human resource constraints, the Government was determined to to achieve rapid and sustained economic development. An export oriented growth strategy was adopted, relying on agriculture and agro-based manufacturing. Foreign capital and managerial skills were liberally used to establish an open, market oriented economy, with the private sector taking the lead. While encouraging local initiative and economic participation through the state-owned Malawi Development Corporation, the Government itself invested its own resources in income-generating activities such as small-holder agriculture, infrastructure and public utilities which were unlikely to attract private investment. This strategy produced an impressive record of economic achievement over the first 15 years following independence up to 1979, with an average annual GDP growth of about six percent. Much of the growth was due to Malawi's emphasis on agriculture at a time when most other sub-Saharan countries chose industrialization as their development strategy. Structural weaknesses in Malawi's economy, however, began to emerge by the mid-1970s, and these combined with adverse external factors to produce the recession from 1979 to 1982, after which the economy began a slow recovery. This upturn, however, suffered a setback in 1986 when drought coincided with a number of other adverse factors to produce a real contraction of the economy. 2. During the decade following independence, Malawi was severely short of trained manpower. A major characteristic of the labor market was the heavy reliance on expatriates who were employed in key managerial positions and in secondary and tertiary educational institutions. The basic cause of the shortage of qualified Malavians could be traced to restricted access to secondary education, from which the limited output of graduates was insufficient to meet the immediate manpower needs of the economy and to supply the numbers for tertiary level training. While government education policy emphasized the provision of middle and high level manpower required for the economy, secondary enrollment expansion was restricted to about, three percent per year. This was based on a real shortage of teachers and also concern over the possibility of unemployment of secondary school graduates in the future. Central government participation in primary education was, until the 1970s, limited to payment of teachers' salaries, training teachers, and school inspection. Local authorities were responsible for the provision of physical facilities, -2- furniture, equipment and textbooks. From the mid-1970s, with assistance from the Bank, the EEC and other bilateral aid agencies, the central government began to take a more active role in the development of primary education where population growth and insufficient investment in physical facilities had led to rapidly deteriorating conditions. 3. The Third Education Project (Education III) vas identified during an IDA Education Sector Review mission in November 1977. The project was appraised in July 1978, post-appraised in December 1978, and negotiations were held in April 1979. A Credit of US$14.5 million equivalent was approved on May 17, 279, and the Credit Agreement was signed on June 19, 1979 at the same time as the Credit Agreement with the European Economic Community for US$7.5 million equivalent. The IDA and EEC Credits became effective on September 19, 1979 (SAR No. 2277, dated May 1, 1979, paras. 5.01-5.06; PCR No. 8196 on Credit 910-MAI, dated November 27, 1989, Basic Data and para. 3.01). 4. The Fourth Education Project (Education IV) was identified in June 1979, pre-appraised in November 1979 and appraised in May 1980. Negotiations were held in January 1981, followed by Board approval on March 26, 1981 for a Credit of SDR 32.2 million (US$41.0 million equivalent). The Credit became effective on October 2, 1981 (SAR No. 3183-MAI, dated February 18, 1981, paras. 5.01-5.06; PCR No. 8195 on Credit 1123-MAI, dated November 27, 1989, Basic Data and para. 3.01). Project Obiectives and Scope 5. As noted above, Education IV was identified at the time the Credit Agreement for Education III was signed. Both projects shared the immediate objectives of improving educational access, efficiency and quality, and the long-term aim of assisting in skilled manpower development. Both projects also had their impetus from preceding projects: Education II (Credit 590- MAI), which financed a pilot primary school construction program, prepared the way for Education III, while Education I (Credit 102-MAI), which pioneered the improvement and expansion of secondary education, prepared the way for Education IV. 6. Education III had four main components dealing with primary and secondary education, in-service staff training and educational support services, and studies. The first component comprised constructing, furnishing and equipping 1,000 classrooms, each to accommodate 50 pupils, and 500 teachers$ houses; provision of about 2.2 million textbooks; and expansion of the Mzuzu Primary Teacher Training College (PTTC). The second included constructing, equipping and/or furnishing: (a) 30 centers for the Halawi College of Distance Education (MCDE, formerly known as Malawi Correspondence College or MCC); (b) boarding facilities for 280 students in five secondary schools; (c) facilities at Chancellor College, University of Malawi, to increase enrollment from 105 to 330 to train secondary teachers; (d) facilities for commercial education in three technical schools; and (e) six staff houses and a student dormitory at Colby Agricultural College. The third involved providing 50 vehicles for the school inspectorate and educational institutions, and facilities for the Malavi Institute of -3- Education ( IIE) to accommodate 150 students and 30 staff. The fourth * component dealt with (i) a primary school mapping study; (ii) a tracer study of secondary school teachers and graduates of commercial courses; (iii) a study of the costs, durability and financing of primary school . textbooks; and (iv) studies for the ;-reparation of a national education plan and evaluation reports on the Sucond and Third Education Projects. (Further details are presented in PCR No. 8196, p. ix; paras. 1.15-1.16, and Table 1.1.) 7. Education IV had three main components dealing with secondary education, improvement of the education system, and studies. The first component involved constructing, equipping and furnishing (i) five new schools and expanding six existing schools for a total of 3,960 classroom places, 3,840 boarding places, and 195 staff housing units; and (ii) laboratories and workshops for about 170 student places and 23 staff housing units at Chancellor College. The second involved the preparation of a National Education Plan for Malawi's education and training system up to 1990. The third component dealt with two pre-investment studies on a 420-place PTTC and a 100-place Institute of Public Administration and three of the four groups of studies transferred from Education III. (For further details, see PCR No. 8195, para. 1.12, and Table 1.1.) Proiect Cost and Financinz Plan 8. Education III was estimated to -c6st about MK 22.10 million or US$26.62 million equivalent, including contingencies and government taxes and duties. The IDA and EEC Credits totalling US$22.0 million equivalent, representing 86% of the total project cost of US$25.7 million net of taxes, was to finance all foreign exchange costs and 74% of local costs net of taxes. In Education IV, the estimated total project cost was MK 42.74 million or US$53.76 million, including contingencies and US$2.5 million equivalent of government taxes and duties. The IDA Credit of SDR 32.2 million (US$41.0 million equivalent), representing 80% of the total cost net of taxes, would finance all the foreign exchange costs and 64% of local costs net of taxes. Implementation Plan 9. Education III was expected to be implemented over a period of about five years, including six months for completion of disbursements. Education IV was projected to require four and one half years. Both projects were to be under the supervision of the existing Project Implementation Unit (PIU) which had functioned well in regard to the implementation of Education II which was still on-going at the time Education III was being processed. To ensure effective implementation, Education III was provided with 38.5 man-years of specialist services financed by the Danish International Development Agency (DANIDA), the British Overseas Development Administration (ODA), the Japanese Volunteer Overseas Co-operation (JVOC), and UNDP. In Education IV, the same bilateral agencies continued their assistance, except that the Commonwealth Fund for Technical Co-operation replaced the ODA in providing the specialist services. -4- II. PROJECT IMPLEENTATON AND OUTCME Proect Management and IMplementation Pr9cess 10. As the PCRs for both Education III and IV have provided a compre- hensive and detailed account of project implementation experience, this audit will highlight the major aspects of implementation and outcome. 11. For both projects, overall implementation performance was good, with satisfactory control of time, quality and cost. The PIU was staffed by a director, a senior procurement officer, an accountant, a quantity surveyor, three architects and three architectural assistants, two super- vising engineers and several support staff. The reliance on expatriate architects and engineers provided through bilateral aid resulted in very little accumulation of technical experience in the PIU, an integral part of the Ministry of Education and Culture (NOEC). During the implementation period, Malawi was adversely affected from 1982 by transport problems when the Mozambique ports of Nacala and Beira, through which imports to Nalawi were shipped, became inoperative because of the ongoing civil strife in Mozambique. Imported equipment and materials had to be transported through Dar-es-Salaam or Durban which were longer, more expensive and time- consuming routes. 12. In Education III, the Closing Date was postponed from June 30, 1984 to December 31, 1985 to accommodate the delay in completing the self- help primary school construction program. In Education IV, the Closing Date was extended from December 31, 1985 to December 31, 1986. Actual project completion was about June 1986, instead of a year earlier. The delay was due to the addition of two schools for extensions transferred from Education III, shortage of building local and imported materials (the latter due to restrictions on foreign exchange) and the tardy release of local funds. Civil Works 13. In Education III, the District Development Committees (DDCs) were responsible for deciding on the location of about 40 percent of the primary school classrooms and teachers' houses to be built. The remaining 60 per- cent were to be distributed on the basis of equity guided by the school mapping study. The 1983 evaluation found that the self-help program was hampered by a number of problems arising from criteria for locating classrooms in areas where there were other self-help projects (e.g., health) nearby, thereby creating competition for building mterials and labor. In many cases, access to sites was poor or difficult. Evidently the Government and the Bank underestimated the complexity of organizing and coordinating the self-help primary school construction program, which extended overall project implementation by 18 months (PCR No. 8196, paras. 2.04-2.06). Nevertheless, all project items were implemented, except the construction of boarding facilities in the five secondary schools. Work on these schools was transferred to Education IV. 14. In Education IV, the 79,800 sq. meters of actual gross area constructed was 24 percent more than the 64,300 sq. meters estimated at appraisal. The increase was due to the construction of new student hostels, which was found to be cheaper than renovating old hostels, and the extensions of two additional schools (PCR No. 8195, paraa. 2.14-2.15). Furniture and Bauipment 15. Under Education III, the PIU carried out all procurement of furniture and equipment: 57 percent through ICB, 40 percent through direct contracting and 3 percent through local tender. The PIU used a standard, simple and inexpensive design for the primary school furniture (PCR No. 8196, paras. 2.09-2.12). In Education IV, the furniture supplied was generally satisfactory, and the equipment appeared adequate, although some items were not relevant to the curriculum (PCR No. 8195, para. 2.17). Technical Assistance 16. Overall technical assistance (TA) in both projects was satisfac- tory. In Education III, out of the total 38.5 man-years provided by bilateral agencies, 64 percent or 24.5 man-years were contributed by DANIDA (architects and engineers) and JVOC (architects); 14 percent or 5.5 man- years were by ODA to assist in procurement; and 22 percent or 8.5 man-years by UNDP to carry out studies. The TA program was successful in establish- ing commercial streams at the technical colleges (formerly schools) and in strengthening PIU in planning, contracting and execution of civil works (PCR No. 8196, para. 2.15). In Education IV, DANIDA and JVOC continued their TA support from Education III, augmented by assistance from the CFTC. The TA program resulted in the completion of 12 studies and the preparation of a National Education Plan (PCR No. 8195, paras. 2.18-2.19; 4.09). groject Cost 17. The actual cost of Education III was MK 26.5 million or US$25.9 million equivalent, the former about 20 percent higher, the latter about three percent lower, than the respective appraisal estimates. The lower dollar cost was due to the reduction of furniture cost by 41 percent, of equipment cost by 18 percent and the transfer of the studies to Education IV. The appreciation of the US dollar against the Kwacha also helped to reduce the project cost in dollar terms. As there was an undisbursed balance of about US$524,000 which was cancelled, the IDA and EEC Credits effectively financed 86 percent of the total project cost excluding taxes (PCR No. 8196, para. 3.01 and Table 3.2). In Education IV, .the actual project cost was MK 45.85 million or US$33.30 million equivalent, the former about seven percent higher, the latter about 38 percent lower, than the respective appraisal estimates. The large cost reduction in dollar terms was due to the devaluation of the Kwacha and the appreciation of the US dollar against the Kwacha as well as all European currencies during rroject implementation. This resulted in the cancellation of an undis- bursed balance of SDR 8.28 million, which represented 26 percent of the original Credit of SDR 32.2 million (PCR No. 8195, para. 3.01 and Table 3.1). 6- SustainabLi 18. The sustainability of all the educational institutions supported by both projects is not in question, as they are integral parts of the education and training system which the Government is committed to support. The lne of sustainability, however, will depend on whether the allocation of recurrent funds for primary and secondary education and their supporting services will be increased significantly over the current level to raise the quality of maintenance of facilities, equipment and teaching materials, especially textbooks. Evidently there is no effective maintena.we program for the schools, partly because maintenance is hamstrung by a bureaucratic procedure requiring action by the Ministry of Works, partly because of the inadequacy of funds. The result is that in many schools cupboard doors are falling off, faucets and toilets are leaking, equipment is not functioning and cannot be replaced, and some classrooms are without serviceable furniture. In primary schools, one third of the textbtoks supplied under Education III needs replacement. In secondary schools and the MCDE centers, there is a general shortage of textbooks and reference materials. If these conditions are not improved quickly, it may be concluded that the institutions are unlikely to function at a high level of efficiency. Bank Group Performance 19. Overall Bank Group performance was generally satisfactory. Supervision missions were helpful though not too meticulous with details. The Bank Group was reasonably flexible during implementation in approving two amendments to Credit 910 involving the transfer of secondary schools to Education IV and re-phasing the assistance to Chancellor College under both projects, but the overall positive impact of Education III and IV was mitigated by certain design and supervision shortcomings. Apparently, greater concern was shown for physical and quantitative aspects than for qualitative developments of the project. Both projects apparently overlooked the need to assist in the institution-building of the PIU, an integral part of the MOEC. After 20 years (1967-1987) of implementing IDA financed projects, Malavi still did not have a local permanent implementation capacity, the Borrower having to continue to rely on expatriate expertise in architectural and engineering skills (PCRz Nos. 8196 and 8195, Chapter V). The good news is that remedial action on the main drawbacks of Education III and IV, pertaining to the training of local architects, appears to have been taken in the follow-up projects (Education V, Credit 1330-MAI, May 1983, and the First Education Sector Credit, Credit 1767-MAI, May 1987). III. FINDINGS AND ISSUES Overvie 20. Both projects were successful in achieving their quantitative targets, but some qxtalitative shortfalls were evident, especially in Education III which -wa more complex in design and more ambitious in scope than Education IV. Nwvertheless, both projects have made significant contributions to the improvement of primary and secondary education and 7- thus the long-term skilled manpower development of Malawi. The main findings and principal issues of this audit are centered on the adequacy of project design and supervision, and access and quality in primary and secondary education. Proiect Design and Supervision 21. Project generation from identification to Board presentation took about 18 months for Education III and about 24 months for Education IV, the former requiring 36 staff-weeks and the latter 15 staff-weeks. Despite requiring more resources for project generation, Education III appears to have been inadequately appraised. The fact that Colby Agricultural College was closed in 1983, less than four years after Credit signing, suggests that insufficient attention was given to the long-term development of the College in relation to agricultural education and training in Malawi before a decision was taken to provide it with additional facilities. Apparently no agricultural educator was involved in project generation or supervision. In the primary school textbook component, evidently inadequate attention was given to reviewing the quality and relevance of the textbooks to be distributed and to storage facilities in classrooms. Many of the textbooks, designed in the 1960s, were apparently inappropriate to Malawi in the 1980s. The study on the costs and durability of textbooks found that the lack of suitable storage facilities was a major contributor to the premature destruction of textbooks (PCR No. 8195, para. 4.10). The project allocated HK 2.75 million (US$3.32 million) to supply the first generation textbooks, after which the continuation of the book supply was to be the responsibility of the Government. But Government recurrent funding for education had been declining in real terms. For example, real per student expenditure in 1980/81 was about half of that in 1970/71 (R. M. Jones, "An AnalysIs of Recurrent Expenditure in the Education Sector," MOEC, November 1981, revised July 1982, pp. 5-6). The appraisal report offered the comforting assurance that most of the project components offered "minimum risks and uncertainties, since the various Government agencies to be involved in the project... are capable of implementing major educational programs" (SAR No. 2277-MAI, dated May 1, 1979, para. 7.02), but no mention was made about the uncertainties of recurrent funding. At any rate, the shortage of funds to replace damaged or worn-out textbooks suggests that the recurrent cost implications of this investment were underestimated. Without the supplementary support provided by the First Education Sector Credit, it is doubtful whether the textbook program could be sustained, given the financial constraints of the Government.Y 1/ By contrast a similar textbook component in the Lesotho Third Education Project (Credit 1148-LSO), appraised in 1980, had a carefully crafted arrangement to ensure that the textbook program would be self- sustaining. The project design included the establishment of a nominal book-usage fee which would be collected during the project implementation period and placed in an interest-bearing account which became a self-sustaining revolving fund. The money from the annual usage fees and interest earned was expected, within five years, to be available for annual book replenishment. This would enable the Government to replace books as necessary at little additional cost. To oversee the textbook program, a textbook specialist was attached to the MOE for three years. -8* 22. Regarding the primary school classroom construction program, the community self-help approach was evidently incompatible with the equity objective, for it turned out that the better endowed communities were better able to take advantage of the opportunity to construct more class- rooms than the poorer communities could. The outcome was that the Central Region received proportionately fever clasqrooms than the Northern or Southern Region (PCR No. 8196, Table 4.1).1/ Thus, the project had the effect of accentuating rather than ameliorating the existing regional dis- parities in classroom availability. A survey showed that the shortfall in classrooms was highest in the Southern region with 33 percent, followed by the Central region with about 23 percent, and lowest in the Northern region with about 20 percent (SAR No. 6428, Education Sector Credit, dated February 24, 1987, para. 2.12). The evaluation of the self-help primary school construction program attributed the 18-month delay in implementation to the fact that the program was upoorly conceived and inadequately managed," a criticism which the PCR considered justified. The evaluation investigating the cost-effectiveness of the self-help program came out in favor of using commercial contractors to build schools. It also suggested, however, that if self-help projects were to be repeated, three guidelines should be observed: (a) the scale should be reduced to avoid overwhelming the existing resources, locally and nationally; (b) a special technical unit be established to coordinate the program; and (c) basic classroom structures (roof and floor) be provided, leaving the local community to complete the building (PCR No. 8195, para. 4.15). 23. In Education IV, shortcomings in the new standard secondaryr school design were not detected at an early stage to bring about a coxetaction. Instead, the "over-designed" covered walkways and open patios were repli- cated in all the secondary schools built. The review of equipment lists and books could have been more thorough to ensure that the project schools were appropriately supplied. Practically all the supervision missions were combined with activities relating to other projects, either on-going or being generated, so that some of the finer points of supervising a project that appeared to be "going well" tended to be overlooked. At any rate, when the first one or two secondary schools were being completed, there should have been a review before the rest were constructea. Clearly, when a new standard school design is being introduced, there should be a trial period to resolve architectural problems before large scale reproduction. Finally, both projects apparently overlooked the need to assist in the institution-building of the PIU, an integral part of the MOEC. After 20 years (1967-1987) of implementing IDA financed projects, Malawi st:1.11 did not have a local permanent implementation capacity, i.e., the Borrover had to continue to rely on expatriate expertise in architectural and engineer- ing skills (PCRs No. 8196 and 8195, Chapter V in each PCR). The attempts f/ The Region explained that the deviation from the planned construction program "must be because the Borrower wanted to ensure that the self- help primary school component was completed on time and hence some classrooms were reallocated away from communities lacking in self-help spirit to those with strong motivation to complete their quota." The First Education Sector Credit has modified the self-help element to correct the imbalance in the provision of primary schools. address the above issues by Education V and the First Education Sector Credit appear to be inadequate. The Second Sector Credit, however, might make a difference. Access and Ouality in Primary Education. 24. The primary school classroom construction was the largest compo- nent in Education III, accounting for 27 percent of the total actual proj - ect cost (PCR No. 8196, Table 3.1). The project provided a total of 50,400 school places, compared with the target of 50.000. This represented about 31 percent of the increase (162,860) in primary enrollment from about 779,700 in 1979/80, when the project was appraised, to 942,540 in 1985/86 when the project was completed. While the additional classrooms allowed more children to attend school, they were barely sufficient to keep pace with the overall enrollment increase, and thus did not significantly increase the enrollment ratio of the primary school age population. Generally, conditions remain as crowded as ever. It is not uncommon to find 100 or more pupils in a class with no desks or chairs. The output of teachers, while increasing in absolute terms, has not been sufficient to reduce the 1980/81 average pupil-teacher of about 63:1 to anywhere near the objective of 50:1. In fact, the pupil-teacher ratio may have deteriorated since then. Access to primary schools may have improved slightly, but quality in respect of physical accommodation is far from being achieved (PCR No. 8196, paras. 4.04-4.05). 25. Another aspect of quality is the availability of textbooks. The project provided 2.7 million, compared with the target of 2.2 million, textbooks. Each pupil was supposed to receive a set of three books (Chichewa, English, and arithmetic), but it is unclear whether this objec- tive had been achieved and sustained. Apparently textbook distribution was uneven, with the result that some classes and schools were better suppliad than others. The concern over meeting the quantitative textbook target led to the neglect of quality. Insufficient time was allowed for the review of textbooks to ensure that they were up-to-date and relevant to the curri- culum. Many of the textbooks, written in the mid-1960s, apparently were inappropriate to the changing conditions in Malawi, but once adopted they served as the basis for the teachers* guides which were prepared by the Malawi Institute of Education (MIE). To be sure, the textbooks met a felt need in the primary schools, but when such -a relatively large investment was being made, more care should have been taken to ensure minimum quality siandards. The question is whether the MOEC can provide the resources to revise the textbooks to bring them in line with the planned revision of the primary school curriculum (PCR No. 8196, paras. 4.07-4.09).1/ 3/ The Region declared that, in hindsight, the primary school curricula "should have been revised and appropriate textbooks produced," but the project "had a limited objective of ensuring that primary school children were provided with instructional materials." The proposed Second Education Sector Credit will finance curriculum revision work and production and distribution of revised textbooks based on the new curricula. - 10 - 26. A more immediate need is the replacement of worn-out books. The project had assumed that the textbooks would last an average of five years. With the lower quality cover paper used, inadequate school storage facili- ties, placing the books on the unpaved floor of many classrooms without desks and chairs, and exposure to rain as the children take the books home, the textbook life expectancy is more like three years, at best. The audit mission learned that at least one third of the textbooks smpplied by the project was no longer usable and needed to be replaced immediately, but local funds were not available or insufficient to meet the need. The First Education Sector Credit, currently in progress, addresses this issue, but the question remains whether the textbook program can be sustained without continuous external funding. Meanwhile, any general improvement in the quality of primary education should take into account the quality as well as the availability of textbooks, particularly to compensate for the unfavorably high average pupil-teacher ratio. Access and Quality in Secondary Education 27. Both Education III and IV were designed in part to improve access and quality in secondary education. As admission to the regular secondary schools has been limited by the number of places available (and this number is about 12 percent of the number of students who annually pass the Primary School Leaving Certificate or PSLC examination), an alternative route to the pursuit of secondary education has been provided by the Malawi College of Distance Education (MCDE), headquartered in Blantyre. Education III provided 30 additional MCDE centers to cater to about 2,700 fee-paying students. The effectiveness of the distance education program, which pre- pared students for the Junior Certificate (JC) or the Malawi Certificate of Education (MCE), depended on: (a) the supply of printed instructional materials, supplemented by reference materials in the library of the MCDE centers; (b) the quality of radio lessons broadcast from Blantyre, the broadcasts being dependent on the quality of radio receiver sets; and (c) the quality of guidance provided by the tutorial staff at the centers. Many of the centers are overcrowded, understaffed, inadequately provided with reference materials, and often without working radio receiver sets. Clearly, the improved access to the MCDE centers has not been matched by an improvement in the quality of the learning environment&./ 28. In a comp.-rison of the cost-effectiveness of the night schools, the nonformal MCDE and the formal secondary schools, using the 1981/82 examination pass rates as the measure of effectiveness, it was found that the not costs to the Government per graduate were lowest for regular secondary schools at MK 549, higher for night schools at MK 630, and highest for the MCDE at MK 1,086. However, viewed as a maximization of places (i.e., an oRgortunity for secondary education) at minimum cost, the MCDE would appear to cost a quarter of the government expenditure per pupil .4/ The Region explained that the MCDE center managers were never meant to teach but to supervise. The supervisors, however, were primary school teachers, whereas the students they supervised were preparing for the Junior Certificate and Malawi Certificate of Education. It iras not clear what "supervision" in these circumstances meant. At any rate, the quality issues raised by this audit report are being addressed. - 11 - of HK 180 in a regular secondary day school. The weighted average net cost for all secondary schools would be about six times the per student cost of the MCDE. Given the extremely limited number of places in secondary schools, the MCDE has been a substitute both for Standard VIII (the last year of the primary cycle where many students might otherise repeat the PSLC examination and therefore occupy valuable places) and Form I; i.e., it reduces the congestion in primary schools and relieves the pressure to expand secondary schools (R. N. Jones, *Issues in the Financing of Education Recurrent Expenditure in Malawi, MOEC, Lilongwe, July 1982, paras. 26-33). As the MCDE system is in place, a marginal increase in investment in better equipment and reference materials, and provision of better qualified teachers could significantly improve its internal efficiency by increasing the pass rate. The plan under the First Education Sector Credit to replace the MCDE tutors with suitably qualified teachers without simultaneously improving the equipment and supply ox learning materials may frustrate the aim of making the MCDE a viable alternative to the formal system.