Philippines - Engineering and Science Education Project

Document of The World Bank FOR OFFICIAL USE ONLY MICROFICHE COPY Report No. 9907-PH Type: (SAR) Report No. 9907-PH ASHER, S. / X81393 / E-8039/ AS2PH STAFF APPRAISAL REPORT PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT DECEMBER 20, 1991 Population and Human Resources Division Country Department I East Asia and Pacific Regional Office This document has a restricted distribution and may be used by reciplents only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (as of September 1991) Currency Unit = Philippine Peso (P) US$1 P 28.00 P 1 = USSO.036 ABBREVIATIONS AND ACRONYMS ADB - Asian Development Bank AIM - Asian Institute of Management CAD - Computer-aided design CNC - Computerized numerically controlled COA - Commission on Audit DBM - Department of Budget and Aanagement DECS - Department of Education, Culture and Sports DLSU - De La Salle University DOF - Department of Finance DOST - Department of Science and Technology ICB - International competitive bidding ITDI - Industrial Technology Development Institute LAN - Local area networking LCB - Local competitive bidding MAT - Master of Arts in Teaching MIRDC - Metal Industry Research and Development Center MOT - Management of Technology NCR - National Capital Region NEDA - National Economic and Development Authority O&M - Operation and Maintenance PAG - Project Advisory Group PCASTRD - Philippine Council for Advanced Science and Technology Research and Development PCIERD - Philippine Council for Industry and Energy Research and Development PICO - Project Implementation ard Coordinating Office PPAR - Project Performance Audit Report R&D - Research and Development RSTC - Regional Science Teaching Center S&T - Science and Technology SEI - Science Education Institute SELF - Science and Engineering Laboratory Fund SOE - Statement of Expenditure STCC - Science and Technology Coordinating Council SUCs - State Universities and Colleges TAPI - Technology Application and Promotion Institute TPAE - Technical Panel for Agricultural Education TPEE - Technical Panel of Engineering Education TPS - Technical Panel for Science UPD - University of the Philippines at Diliman UPLB - University of the Philippines at Los Banos USC - University of San Carlos FISCAL YEAR January 1 - December 31 ACADEMIC YEAR June - March FOR OFFICIAL USE ONLY PHILIPPIN ENGINEERING AND SCIENCE EDUCATION PROJECT Loan and Proiect Summary Borrowers Republic of the Philippines AAMnt: US$85.0 million equivalent eams: Repayable in 20 years, including five years of grace at the standard variable interest rate. Proiect D t In support of the Government's plan to upgrade the country's industrial technological capability, the project would increase the supply of well-trained science and technology (S&T) manpower by strengthening engineering and science education. The project would specifically aim to: (a) improve institutional mechanisms and criteria for funding and monitoring engineering and science education; (b) strengthen colleges of engineering and science which have met eligibility criteria by increasing their financial and resource management capacities, adjusting enrollment patterns to respond to S&T manpower needs, introducing new courses and programs concerned with management of the environment and technology, and improving the quality of instruction and laboratory practices in priority engineering and science fields; (c) improve science and math instruction in secondary schools to better prepare students for engineering and science colleges; and (d) increase institutional capacities to plan and coordinate S&T manpower development programs. The project would have a policy action plan and six investment components. The Policy Action Plan would cover: (a) the preparation and application of criteria and directives to improve the institutional framework for funding and monitoring the quality of engineering and science education, aimed in part at phasing out over-expanded substandard undergraduate engineering programs; and (b) the establishment of targets to improve the enrollment structure as well as the financial and resource management of institutions selected to participate in the project. The Investment Comoonents would support: (a) the development of programs, faculty and laboratories for (i) engineering education at five state and 14 private institutions, (ii) science education at four state and six private institutions, with environmental programs strengthened at three of these institutions, and (iii) management of technology at one state and two private institutions; (b) expanded reference book and journal collections, staff development, and networking arrangements for libraries at three engineering and seven science colleges; (c) in-service teacher training. library books, laboratory equipment and facilities for improved science and math education in 110 high schools and 22 teacher training institutions; and (d) the development of S&T manpower planning and monitoring capacity within the Department of Science and Technology (DOST). 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. Benefits: Quality and efficiency improvements expected at the institutions participating in the project would permit an annual output of about 5,000 and 2,000 better trained engineers and scientists, respectively. Outputs from project institutions would account for about 20% and 40% of the total annual graduates with bachelor's degrees in the pr4ority engineering and science fields, respectively, and about 25% and 100% increases in engineering and science graduates with advanced degrees. respectively. These engineers and scientists would possess the appropriate new technology skills and research capability needed for technology transfer and assimilation, and for efficient operations of non-traditional industrial plants. The project would also produce scientists and engineers trained to focus on protective measures for the urban and industrial environment and assure the collection of quality baseline data which are essential for environmental management. The project would also further expand access to improved high school sciene and math instruction to better prepare youth for higher education as well as for employment in S&T fields. The number of high schools with special emphasis on science and math would increase from the few currently available in major cities to 110 schools spread over 13 regions. Institutionally, the project would improve DOST's capacity to plan, coordinate and finance manpower development, strengthen the Technical Panels' monitoring and advisory roles, and develop a science and engineering library management system among the participating universities. With all these improvements combined, the project should improve the likelihood of the Government's success in achieving its goals of increasing industrial productivity and competitiveness. Rigks: There are several important risks. First, the social pressure to further expand underfunded and low quality programs may persist, resulting in a continued excessive mismatch between supply and demand. To minimize this risk, the standard-setting and monitoring roles of the Technical Panels for Engineering and Science Education would be expanded, and agreement would be reached with the Government on phasing out the substandard programs. Second, recurrent cost funding may be inadequate for O&M and periodic upgrading of laboratories due to the lack of trained staff and funds. The project would therefore provide incentives for improvement of laboratory classes and faculty, would create funds for O&M and upgrading of laboratories, and would include a study on mechanisms for financing long-term recurrent technical and financial needs. Third, a potential brain drain of faculty granted foreign scholarships is another concern. However, faculty would be bound by the current conditions of such awards that include a penalty to repay scholarship costs if they decide not to return to the country and, for those who return, an obligation to work at their institutions for a duration of twice the scholarship period. The effort to link the fields of scholarships to the equipping of specialized laboratories under the project would also minimize a loss of faculty as it would allow returning scholars to continue research and conduct effective teaching. Finally, this is the first time DOST would be managing a World Bank-assisted project. - iii - However, the risk this poses to successful project implem would be minimized by structuring management functions ar existing line offices already engaged in similar activiti developing the MIS for improved program monitoring and by providing technical assistance for project management. Estimated Costs: Local Foreig IoAt -------- US$ million -------- Engineering education 19.1 19.9 39,0 Science education and research 19.4 21.4 40.8 Management of technology 0.2 0.8 1.0 Library networks 3.0 6.3 9.3 High school science and math/in-service teacher training 8.8 7.3 16.1 S&T manpower planning and monitoring 1.0 1 09 Base Cost 51.5 56.6 108.1 Physical contingencies 3.3 6.1 9.3 Price contingencies 6& 7.3 131 Total Project Cost La A60.8 Financing Plan: Government 29.8 - 29.8 Private Universities 11.1 4.8 15.9 IBRD 1. 0 Total 630 67 9 Estimated Disbursements: IBRD Fiscal Year 1992 1993 1994 1995 1996 1997 ---------- US$ million---------- Annual 2.0 11.0 24.0 28.0 15.0 5.0 Cumulative 2.0 13.0 37.0 65.0 80.0 85.0 te of Return: Not applicable .us: IBRD No. 23074 Including taxes and duties estimated at US$13.8 million. - iv - PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Table of Contents Pace No. LOAN AND PROJECT SUMMARY I. MANPOWER FOR INDUSTRIALIZATION AND TECHNOLOGY DEVELOPMENT . . . . . 1 A. Industrialization......... ....... . . . . . . . 1 B. Technology . . . . . . . . . . . . . . . . . . . . . . . . . . 1 C. S&T Manpower . . . . . . . . . . . . . . . . . . . . . . . . 3 II. ENGINEERING AND SCIENCE EDUCATION. . ........... . . . . . 5 A. Overview of Higher Education........ ...... . . . 5 B. Issues in Engineering and Science Education........ . . . 6 Enrollment Structure........... ....... . . 7 Quality ........................... 8 Internal Efficiency ..................... 11 Regulations, Incentives and Monitoring........... 12 C. Strategy for S&T Manpower Development . ............ 13 Government Strategy and Programs . . ............ 13 Bank Experience and Strategy. . ......... . . . . . 14 III. THE PROJECT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 A. Objectives and Scope . . . . . . . . . . . . . . . . . . . . . 16 B. Detailed Project Description . . . . . . . . . . . . . . . . . 18 Policy Action Plan . . . . . . . . . . . . . . . . . . . . . 18 Engineering Education . . . . . . . . . . . . . . . . . . . . 20 Science Education and Research . . . . . . . . . . . . . . . 21 Management of Technology . . . . . . . . . . . . . . . . . . 22 Library Networks . . . . . . . . . . . . . . . . . . . . . . 23 Science and Math in Secondary Schools and In-service Teacher Training . . . . . . . . . . . . . . . . . . . . . . 23 S&T Manpower Planning and Monitoring . . . . . . . . . . . . 24 This report is based on the findings of a preappraisal mission which visited the Philippines in November 1990 comprising S.M. Asher (mission leader), V. Demetriou (sr. architect), K. Siraj (operations adviser), S. Gandhi (YP/economist), and consultants V. Desa (engineering education specialist), L. Holm-Nielsen (science education specialist), I. Irvine (environment specialist), S. Tiffin (technology management specialist), and S.Z Sung (procurement specialist); and an appraisal mission which viLfted the Philippines in March 1991 comprising Asher (mission leader), Demetrii-, and consultants Desa and R. Weiss (science education specialist). Cnsultants J. Laya (financial analyst) and H. Beemer (management expert) contributed during earlier preparation missiOns. Peer Reviewers were B. Searle, L. Briggs (ENTPH) and E. Thulstrup (PHREE). The document was cleared by B.O. Babson (Chief, EA1PH) and C.E. Madavo (Director, EAl). -v - Paae No. IV. PROJECT COSTS, FINANCING AND IMPLEMENTATION...... . . . . . . 25 A. Costs . . .'. . . . . . 25 Summary of Costs.. ......................... .....25 Basis of Cost Estimates. . ......... . . . . . . . 27 B. Financing.. ............... . . . . . . .28 C. Implementation................ . . . . . . . 30 Introduction............... . . . . . . . . 30 Management Structure, Functions and Staffing..... . . .31 Procurement. . ............. . . . . . . . .33 Disbursements.......... ..... . . . . . . 36 Monitoring and Evaluatiun, Audits and Bank Supervision . . 36 Status of Project Preparation . . . ........ . . . . . .38 V. IMPACT QNfTHE ENVIRONMENT AND WOMEN IN DEVELOPMENT . . . . . . . 38 VI. BENEFITS AND RISKS . . . . . . . . . . . . . . . o.. . . o. ...38 A. Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . 38 B. Risks....................... . . . . . .39 VII. AGREEMENTS REACHED AND RECOMMENDATION...... ..... . o . 40 TEXT TABLES 1.1: S&T Manpower Stock and R&D Manpower Per Million Population.............. .... . . . . 3 4.1: Summary of Project Costs by Component . . . . . . . . . 25 4.2: summary of Project Costs by Category of Expenditure . . 26 4.3: Financing Plan.......... ..... . . . . .29 4.4: Annual Budgetary Requirements. ..... . . 30 4.5: Procurement Arrangemants. ......... . . . . . .35 ANNEXES 1. Priority Sectors, Councils Responsible for Priority Sector Development, and corresponding Priority Academic Disciplines Supported under the Project . . . 42 2. R&D Personnel by Agency, Field anad Educational Qualification.......... ...... . . . .43 3. Skills That Employers Consider Most Important and Changes Recommended by Employees to University Education in Science and Engineering . . . . . . . . . 44 4. Percentage Shares of Female Undergraduate Enrollments in Selected Colleges of Engineering and Science by Field, 1990/91 . . .. . . . . . . 45 5. Targets and Monitoring Indicators--Engineering Education, Science Education and Teacher Training 46 6. Age of Main Laboratory Equipment (Undergraduate) 52 7. Budgeting in SUCs and Private Universities . . . . . . 53 - vi - Pace No. 8. Criteria for Selection of Engineering Degree Institutions; Criteria for Eligible Engineering Program Proposals; Criteria ior Selection of Science Degree Institutions; and Criteria for Selection of Secondary Schools with Programs in Science and Mathematics . . . . . . . . . . . . . . . . . . . . . 56 9. Project Institutions by Region . . . . . . . . . . . . 60 10. Technical Assistance Programs by Component and Year . . 61 11. Procedures, rriteria and Conditionalities Used in DOST-Supported Manpower Development Programs . . . . . 64 12. MOT Specializations to be Developed by UPD, DLSU and AIM . . . . . . . . . . . . . . . . . . . . . . . . . 71 13. Library Assistance by Institution and Field . . . . . . 72 14. High Schools and Institutions Responsible for In- Service Teacher Training by Region . . . . . . . . . . 73 15. Project Costs Summary . . . . . . . . . . . . . . . . . 74 16. Project Management Organization . . . . . . . . . . . . 78 17. Project Advisory Group: Draft Terms of Reference . . . 79 18. Disbursement Schedule and Profile . . . . . . . . . . . 82 19. Project Processing and Implementation Schedule . . . . 84 20. Selected Documents and Data Available in the Project File . . . . . . . . . . . . . . . . . . . . .85 MAP: IBRD No. 23074 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PRqJECT I. MANPOWER FOR INDUSTRIALIZATION AND TECHNOLOGY DEVELOPMENT A. Industrialization 1.1 Although the Philippine economy showed a temporary recovery in 1987- 89, with GDP growing at about 6% p.a., the annual growth rate during 1980-90 averaged 1.1%. This was significantly lower than the 5% to 10% growth achieved by the neighboring countries of Malaysia, Indonesia, Thailand and Korea during the same period. The stagnant economy combined with the relatively high population growth rate of around 2.4% led to the negative growth rate of real per capita GNP, -0.6% p.a., in the 1980s. 1.2 Contributing to the country's weak economic performance has been the slow pace of industrialization. During 1980-90, the industrial sector grew at a negative rate of -0.2% p.a., compared with about 5% to 9% in Indonesia, Malaysia and Thailand, and 12% in Korea. Within industry, manufacturing increased at an annual rate of about 9% in Thailand and Malaysia, and 13% in Indonesia and Korea, while in the Philippines it grew at a rate of only 1%. Wizh this rapid industrial growth of the neighboring countries in the 1980s came a significant transformation in the structures of their economies: during 1965-89, the percentage share of industry in GDP rose from a low 13% to 36% in Indonesia, 25% to 43% in Korea, 25% to 40% in Malaysia, and 23% to 38% in Thailand, compared with 28% to 33% in the Philippines. In terms of percentage increases, the share of industry grew over the period by about 177% in Indonesia, 60% to 72% in the other three neighboring countries, and by 18% in the Philippines. 1.3 The Philippines has also been losing its competitiveness in the external market. Annual export earnings between 1980 and 1990 increased at about 6% in the Philippines, against the considerably higher rates of 11% to 14% in Malaysia, Thailand and Korea. This slow growth of export earnings was in part due to low productivity which affected Philippine competitiveness. It is estimated that the current level of productivity in Pailippine manufacturing is only marginally higher than the 1973 level and has never been more than 20% higher than that level during the last two decades. At the same time, Thailand's productivity has more than doubled over the last 20 years and Malaysia's has grown by about 60%. 1.4 The state of Philippine manufacturing is illustrated by its garments industry which, as the second largest export industry after electronics, contributes approximately 20% of the country's current total export earnings. However, because the garments industry uses imported fabric for exports due to the inferior quality and higher price of locally-made textiles, local value-added in the industry is only an estimated 45%, which cuts the country's potential earnings from these exports by more than half. With the low productivity and quality of the textile industry as well as increasing labor costs and the rise of countries like China and Indonesia as major garments exporters, the Philippines is losing its competitive position. B. Technoloy 1.5 Despite these problems, the Philippines has good potential for economic growth as it is blessed with a strategically attractive geographical - 2 - location in the region, a relatively rich natural resource base, and a population of some 60 million, with over 80% literacy and a majority speaking English as a second language. However, to gain competitiveness and to achieve faster industrialization, the Philippines needs to further develop its technological capabilities. Technological advancement, which represents change in relationships between product inputs and outputs, improves methods of production and management, resulting in higher quality praducts at more competitive prices. Productivity increases associated with improved technology are estimated to account for a large proportion of industrial output growth, ranging in recent years from about 30% in Mexico, 55% in the Uni 'ed States and Korea, to over 60% in Japan. 1.6 Although the level of technology in Philippine manufacturing is now on a rising trend, until the late 1980s it was markedly lower than that of neighboring countries. Total factor productivity, which represents the portion of growth traceable to increased efficiency from the use of improved technology, was -0.1 in the Philippines in the early 1980s, compared with 1.7 in Thailand, 2.1 in Indonesia, and 4.5 in Korea. Measured in terms of incremental capital output ratios, Philippine industry also experienced chronically high ratios, indicating higher investment costs per unit of output due to poor engineering, inefficient operation ane management, and less than optimum use of installed capacity. In the late 1970s, the average incremental capital output ratio in the Philippines was about 4, compared to about 3 in Indonesia, Korea, Malaysia and Thailand. By the early 1980s, the ratios in the latter countries rose to 5 or 6, while the ratio for the Philippines soared to 36, reflecting capital-intensive investments and excess capacity during the severe recession of 1983-85. 1.7 Technological development depends on a number of factors. Industrial and trade policies promoting fiscal incentives, liberalization of import restrictions and lowering of tariffs encourage competition and lead entrepreneurs to acquire more advanced technology. At the same time, a lack of technological information and special credit lines or fiscal incentives for research and development (R&D) discourages technology transfer and its assimilation and diffusion. Also important are the existence of a long-term national technology development plan, appropriate R&D institutions, manpower well qualified in science and technology (S&T) areas, and support services such as technology extension and quality standards and testing. Recent!y, to create an environment more conducive to technological development, the Philippine Government began to put in place some of these key requirements. 1.8 Recognizing technology as a key to accelerated industrialization and also as a complex field cutting across sectors and agencies, the Government established a Science and Technology Coordinating Council (STCC) under a Presidential Order in April 1989. The STCC is chaired by the Secretary of Science and Technology and includes eight Secretaries (i.e., Trade and Industry, Agriculture, Health, Transportation, Education, Foreign Affairs, Environment and Natural Resources, National Defense) as well as representatives from private industry and academe. The Council's mandate is to formulate implementation strategies for a ten-year technology development plan broadly s.t out in 1988 by a special presidential task force on science and technology, and to ensure implementation of those strategies. The long-term plan focuses on upgrading technology in 15 economic sectors with major potential for increased productivity and value added (Annex 1). Strategies for the priority sectors are being developed by subcouncils created for each sector. -3 - 1.9 The ten-year technology development plan calls for: (a) providing appropriate policies and incentives to encourage foreign and domestic investments, export promotion, and technology upgrading; (b) increasing R&D expenditures by raising the contribution of the private sector; (c) upgrading the capability of government R&D institutions and linking them more closely to industry; (d) improving technology support systems by expanding technology extension, information, testing and other service networks; (e) strengthening S&T manpower by expanding graduate education and research in priority engineering and science fields (Annex 1) and stressing experimental aspects of graduate and undergraduate training; and (f) increasing public awareness of the role of science and technology in development as well as industry's awareness of the need to put available technology into productive cse. 1.10 Initial improvements in the policy framework to promote investments and technology were intro,duced in 1987 under the Omnibus Investment Code administered by the Board of Investments. The Department of Science and Technology (DOST), with its mandate to coordinate all technology programs, is also promoting S&T by, amor;6 other things, introducing an incentive system for S&T careers and establishing a science center for the public. In addition, programs now beiag supported by bilateral aid agencies will expand standards and testing services and improve R&D staff and facilities. In this regard, the Government has requested World Bank assistance in restructuring selected R&D institutions, introducing tecnnology financing, particularly for industrial start-ups, establishing services to improve productivity in selected industries, and strengthening S&T manpower. The Bank is reviewing these requests under two projects, one of which, the proposed project, would address the request for S&T manpower development. C. S&T Manpower 1.11 The Philippines has an exceptionally large stock of manpower trained as technicians, engineers and scientists because of its traditionally high enrollment ratins in tertiary education. In the 1980s it had 34,700 such manpower per million population, compared to 2,500 in Korea and 1,800 in Malaysia (Table 1.1). However, in terms of the number of S&T ranpower per million population engaged in R&D (including university teaching), the Philippines had 160 compared to 1,150 in Knrea and 180 in Malaysia. These comparisons point to the qualitative and structural weaknesses now surrounding S&T education in the Philippines, as discussed further in Chapter II. Table 1.1: S&T MANPOWER STOCK AND R&D MANPOWER PER MILLION POPULATION Potential Actual R&D as % Country S&T Manpower R&D Manpower of S&T Manpower Korea 2,540 (1986) 1,147 (1986) 45 Malaysia 1,805 (1982) 182 (1983) 10 Philippines 34,686 (1982) 156 (1982) 0.4 Thailand 1,121 (1984) 55 (1984) 4 Indonesia 1,207 (1986) 58 (1986) 5 Sources: UNESCO, National Statistical Yearbook and World Bank data. 1.12 The majority of S&T manpower in the Philippines hold bachelor's degrees or non-degree diplomas and certificates; they are generally weak in practical and experimental work ard are not trained to undertake independent research. This situation is illustrated by the qualifications of staff at the two major R&D institutes attached to DOST, the Industrial Technology Development Institute (ITDI) and the Metal Industry Research and Development Center (MIRDC). Of ITDI's current staff of 594, only 31 (5%) hold master's degrees and 7 (1%) have doctoral degrees. The staffing situation at MIRDC is even more inadequate, with only two Ph.D. degree and no master's degree holders in the entire staff of 280 (Annex 2). 1.13 Furthermore, the gap between industry's needs for more skill-intensive S&T manpower and the capabilities of the current manpower is widening. Nontraditional export-oriented industries such as electronics, chemicals, food processing and metal engineering increasingly require people trained in high- precision measurement technology, use of modern control instrumentation, and automated production of a wide range of items. The current graduates from engineering and science colleges are unfamiliar with these new technologies and consequently require extensive on-the-job training during relatively lengthy probation periods. According to the Semi-Conductor Electronics Industry Federation, which has 31 member companies covering 90% of the country's semi- conductor exports, cowrany training expenses have risen more than three-fold in the last two years, and -he average annual salary of engineers during the last five years has grown faster than that of all other types of personnel in the industry due to the scarcity of qualified graduates to meet rising demand. Faced with inadequately trained S&T manpower, a recent survey of manufacturing firms in Metro Manila indicated that employers are willing to pay salaries with an average premium of 25% to those with appropriate qualifications. 1.14 Also of concern is the acute shortage of qualified manpower in environmental science and engineering. Recent surveys by the Department of Environment and Natural Resources and the Marine Science Department of the University of the Philippines at Diliman (UPD) indicated shortages of manpower trained in environmental data collection and analysis and in assessment of the environmental impacts of industrialization and urbanization. A variety of issues indicate the critical need for these disciplines: coastal fish production is declining due to increasing destruction of the mangrove forests and coral reefs where marine fish breed; agricultural productivity has decreased, partly due to soil erosion following deforestation; and water pollution from improper solid waste disposal and wastewater treatment has led to ecological damage and poor public health conditions. To counter these problems, one of the 15 priority sectors to be addressed under the technology development plan (para. 1.8) is environmental control and management. 1.15 In sum, to promote R&D activities for technology upgrading, an increased number of scientists and engineers with -raduate training in basic and applied sciences and high technology is needed. Also, well-trained manpower is required for efficient operation of new technologies in emerging nontraditional industries and for the impact assessment and management of industrialization on the environment. For the development of this manpower, both employers and employees agree that universities must improve laboratory facilities, increase hands-on practical training, adopt a more problem-solving approach, and create better links with industry (Annex 3). -5- II. ENGINEERING AND SCIENCE EDUCATION A. Overview of Higher Education 2.1 In 1988, the Bank carried out a study of the Philippine education sector, including a review of the higher education system (Report No. 7473-PH, December 1988). As identified by that study, the strengths of the higher education system are the high ratio of enrollments in the 17-20 age group and the dominance of the private sector in the system. 2.2 Quantitatively, the Philippine education sector is highly developed. Virtually all children in the 7-12 age group are enrolled in six years of elementary schooling, and two thirds of these graduates proceed to secondary education, which has an enrollment ratio of 68%. At the end of secondary schooling, about 90% of the students take the National College Entrance Examination, a vehicle to screen entrants to degree programs; thereafter, approximately one third of the age group population is enrolled in tertiary education, representing one of the highest ratios in the world, comparable to that in the United States, Japan and Korea. 2.3 Females are equally represented throughout the system, and are slightly more dominant at the tertiary level as they outnumber males by nine to ote in teacher training, which accounts for about 20% of total tertiary enrollments. The number of female students is increasing in engineering and science fields, with particular growth in industrial and chemical engineering and computer science. At the large engineering colleges in Metro Manila, female students now account for 30% to 70% of enrollments in these fields (Annex 4). 2.4 Of the 1.6 million enrollments in tertiary education, the overwhelming majority (82%) are in private institutions, which now number some 730 and account for over 70% of all tertiary institutions. All private schools are legally incorporated and are of three types--stock (32%), non-stock (48%), and foundations (20%). Each school's general policies are decided by a Board of Trustees or its equivalent, which is elected or appointed by stockholders or members, or, in sectarian institutions, by the bishop or superior of the order or congregation. On average, private institutions obtain about 909 of their revenues from student fees, although non-sectarian schools depend even more on fees. Students pay an average tuition of about 1,900 pesos per year. 2.5 The remaining 18% of tertiary students are enrolled in over 260 public institutions, which-are of three types--chartered, non-chartered, and local government-operated. The 80 chartered institutions are state universities and colleges (SUCs), all individually chartered by law. The highest policy-making body of each SUC is its Board of Regents, which has the Secretary of Education as its ex-officio chairman. Overall, however, SUCs operate independently of the Government's main agency for education, the Department of Education, Culture and Sports (DECS), not only in academic matters but also in budget preparation, legislLtior and execution, as they deal directly with the Department of Budget and Management (DBM) and the Congress. On average, these institutions are financed about 85% by national budget allocations, 13% by tuition fees and 2% by commercial operations and other sources. 2.6 Non-chartered institutions are the most numerous (at 183) in the public education sector, but their overall enrollment at 60,000 (4% of total tertiary enrollments) is small compared to the chartered institutions at more - 6 - than 230,000 enrollments (14% of the total). These schools are often upgraded from vocational secondary schools and usually carry out programs in teacher training, vocational arts and trade, and agriculture. They are under the direct control and supervision of DECS and are funded by national budget allocations to DECS, receiving about 2%-3% of the DECS budget. Students in non-chartered institutions pay an average annual tuition of about 300 pesos, while students in chartered institutions pay about 800 pesos. 2.7 Local government units also operate a few institutions (e.g., the City University of Manila), which may or may not be created by law. 2.8 In 1988, national government expenditures for education (capital and recurrent costs) were equivalent to 2.8% of GNP. Of the National Government's total recurrent expenditures that year, about 20% went to education, of which 60%, 23% and 17% went to elementary, secondary and higher education, respectively. This distribution of public resources, made possible by the private sector's major participation in secondary and tertiary education, is considered efficient and equitable in view of the externalities of elementary education and the need to create a broad education base. B. Issues in Engineering and Science Education 2.9 As noted in the Bank's education sector study, the strengths of the Philippine system of higher education--the high enrollment ratio and the dominance of the private sector--are paradoxically linked to the system's main weaknesses, i.e., its poor quality and imbalanced enrollment structure. The study also found that the attractive private rate of return on higher education combined with the limited number of places in public tertiary institutions had led to an excess demand for higher education and the proliferation of private sector institutions to meet that demand. However, the system is geared more to quantity than to quality, as individuals are willing to pay for educational credentials but not for the costly capital inputs, both human (faculty with graduate education) and physical (library books and laboratory equipment), associated with educational quality. The reliance on private funding has also meant that programs which are more expensive and important for their externalities, such as science education, graduate training and research, are only minimally provided. In addition to these system-wide weaknesses, engineering and science education programs suffer from internal inefficiency, over-regulation, and inadequate incentives and monitoring. The main problems relating to these issues are as follows. Enrollment Structure - Proliferation of relatively low-cost undergraduate engineering programs, resulting in an oversupply of engineering graduates. - Disproportionately low graduate enrollments, severely limiting the output of qualified faculty and researchers. Quality - Failure of current engineering and science education curricula to adequately reflect the emerging needs of the country's technology development. - 7 - - Serious underinvestment in the development of faculty, laboratories and libraries. - Poor preparation in science and math of students entering engineering and science education. Internal Efficiency - Inefficiency in the use of faculty and facilities, the retention of students and the time needed for graduation. Regulations. Incentives and Monitoring - Inflexibility in deciding on academic matters and lack of incentives for quality improvement. - Inflexibility in deciding on financial matters and lack of incentives for income generation. - Lack of consistency in monitoring and enforcement of standards. Enrollment Structure 2.10 Proliferation of Undergraduate Engineering Education Programs. Undergraduate engineering education has expanded rapidly, leading to a major oversupply of graduates and the dilution of efforts to improve quality. In 1990, there were 184 institutions offeiing engineering programs. Enrollments in these programs accounted for about one fifth of total. enrollments in bachelor's degree programs, the highest level next to business administracion. From 1982 to 1989, the number of engineering graduates doubled from 15,100 to 36,500. In 1989, the Philippines had 630 engineering graduates per million population, compared with 440 and 320 in Taiwan and Singapore, respectively. According to local professional engineering associations, only a third of these graduates found employment as engineers, while another third worked as technicians and the remainder worked in cther occupations. 2.11 To address this situation, DECS recently directed one of its nine technical advisory bodies, the Technical Panel of Engineering Education (TPEE), to prohibit the initiation of new undergraduate engineering programs in private universities, and DECS efforts are being increased to monitor quality standards and phase out substandard programs. This has reduced the number of private engineering institutions from 155 in 1988 to 138 in 1990. During the same period, however, engineering colleges/departments in SUCs increased from 39 to 46, because TPEE has no mandate to evaluate SUC programs and DECS has only very limited power over SUCs. This increase was unfortunate in view of the finding of a 1987 study which indicated that nearly half of all SUC engineering schools failed to meet TPEE's minimum standards. TPEE's role should therefore be extended to all engineering institutions, public and private, and substandard private undergraduate engineering programs should be phased out. As for SUCs over which DECS has only limited authority, TPEE evaluation results should at least be made known to the public. 2.12 Low Graduate Enrollments. In contrast to the high number of undergraduate enrollments, graduate education in the Philippines is ialatively undeveloped. Only 2% of tertiary enrollments are in graduate education, compared - 8 - with 5% to 10% in many developed countries. In the mid-1980s, the number of doctorates granted per 100,000 population was 0.35 in the Philippines compared to 16 in the United States and 5 in Japan. The number of graduate students in scientific fields is particularly small, with only 2% enrolled in mathematics and natural sciences compared to 39% in business administration and 23% in engineering. As a result, little S&T research is carried out. It is estimated that less than 5% of the SUCs' budget was spent on research in 1988, compared with major universities in industrialized countries which typically devote some 20% of their budgets to R&D. 2.13 The limited development of graduate education in the Philippines is largely due to the dominance of the private sector in tertiary education (para. 2.9). The private sector has concentrated on undergraduate education, with its relatively low cost and large private benefits, for which students are willing to pay. As graduate education and research are costly and their benefits are not readily captured by individuals, students pursue doctoral degrees if their costs are subsidized or if a sufficient wage premium is paid later to cover the costs of education. However, salaries for faculty and researchers are relatively low, and private benefits are not large enough to cover the costs of graduate education, at least in the short term. Consequently, pursuit of graduate education and research has been limited in the Philippines. Increased public funding in support of these activities is therefore warranted. Quality 2.14 Curricula. DECS prescribes minimum curricular requirements, course descriptions and curricular structures for universities and colleges, based on the recommendations of technical panels in nine disciplines, including panels for engineering and for sciences. The undergraduate curricula for engineering and for sciences, respectively, require 195 credits in five years and 165 credits in four years. The structure is, however, excessively biased toward social sciences and languages, allocating about 25% of the engineering curriculum and sometimes over 45% of the science curriculum to these areas. This reflects an effort to compensate for the country's ten-year elementary and secondary school cycle, which is two years shorter than that in most other countries. Even if private institutions want to use some of the time allocated to social sciences and languages for more pertinent subjects, they are unable to do so because of the DECS requirements. To provide private universities with more flexibility, increased academic autonomy should be granted. 2.15 Engineering and science programs are not sufficient to fully respond to the needs of national industrial technology development. For example, there is no technology management program to develop managerial skills among engineering and science students and to provide business administration students with a technological orientation. Such a program is essential to increase the recognition of the role of technologies and exploitation of technologies available. 2.16 Furthermore, the engineering curriculum is dominated by courses related to the design function, although demand. within industry is greater for production skills focused on manufacturing and quality control engineering. To bring university education closer to these industry needs, the UP College of Engineering started an industry linkage program in 1986, with the Philippine Council for Industry and Energy Research and Development (PCIERD) covering administrative costs during the program's first year and the firms participating - 9 - in this program assuming these costs thereafter. The UP program offers third- and fourth-year students an elective two-semester training course which includes integrated company lectures and plant visits under the supervision of company personnel. In addition, the College of Engineering at De La Salle University (DLSU) has recently introduced a new degree program in which students spend their fifth year receiving structured on-the-job training. These linkage programs have improved the curriculum as well as students' job placements. The linkage programs should therefore be expanded to other engineering colleges, and PCIERD start-up assistance should be extended to other colleges. 2.17 The teaching of environmental science also needs improvement. Sixteen universities currently offer environmental courses, under the coordination of the Environmental Education Network of the Philippines with a secretariat located in the Institute of Environmental Science and Management at the University of the Philippines at Los Banos (UPLB). Most of the courses are included within regular science and engineering programs, and a few institutions have developed graduate programs with a significant environmental emphasis. However, courses on important subjects such as the coastal environment or the environmental impact of urban and industrial development (para. 1.14) need improvements. Greater attention to teaching scientific data collection procedures is also needed to improve baseline data. 2.18 Faculty. The capacity of engineering and science faculty to teach and carry out research is often constrained by their lack of adequate educational qualifications and their heavy workloads (Annex 5). A survey of 19 of the better quality engineering colleges indicated that a majority of the full-time faculty had only bachelor's degrees. The percentages of faculty without graduate degrees ranged from 61% in chemical engineering, to 77% in mechanical engineering, to 96% in computer engineering. The educational qualifications of science and math faculty, however, seemed to be higher; a survey of ten colleges of science indicated the following percentages of staff had only bachelor's degrees: 12% in biology, 25% in statibtics, about 40% in mathematics and computer science, and about 50% in chemistry and physics. Overall, however, major efforts are needed in faculty upgrading to meet DECS targets which require at least 50% of engineering faculty and 70% of science faculty to possess graduate degrees. 2.19 The faculty's capacity for effective teaching and R&D is also constrained by its heavy teaching load, which ranges from 24 to 30 hours a week for most full-time faculty, as well as high student-faculty ratios, particularly in engineering. At the 19 engineering colleges mentioned in para. 2.18, the student-faculty ratios run as high as 53:1 in mechanical engineering, 73:1 in computer engineering, and 90:1 in industrial engineering. In comparison, at the 10 science colleges surveyed, the student-faculty ratios are acceptable in all disciplines except biology (with a ratio of 49:1). The teaching load should therefore be cut back by about 20% to a range of 20 to 25 hours a week to more closely approach the DECS guideline of 18 to 20 units a week, and student-faculty ratios in engineering should be lowered to a more acceptable 20:1 to 50:1, depending on specific fields. 2.20 Laboratories. The low quality of science and engineering education and the very limited work on R&D are in part due to three basic deficiencies in university laboratories: shortages of basic instruments, lack of modern equipment, and poor operation and maintenance (0&M). - 10 - (a) Equipment Shortages. DECS, with advice from the technical panels, establishes minimum equipment standards for adequate training, but these standards are compromised by funding constraints. In 1989, for example, the previous (1986) equipment standards for undergraduate engineering education were revised by reducing the already low requirements by 20%. Similar guidelines for science education are considered too high to be met by most science colleges, and lower standards set by the Philippine Council for Advanced Science and Technology Research and Development (PCASTRD) are used instead. (b) Outmoded Eauipment. Since the 1960s when major investments were made to equip laboratories, funding of laboratory equipment has been insignificant, with the exception of some isolated bilateral assistance to university laboratories and a 1977 Asian Development Bank (ADB) project which assisted 20 engineering institutions. Even in the relatively well established and larger engineering colleges, the main items of equipment are on average 20 to 25 years old (Annex 6). Research equipment is highly inadequate, particularly to carry out R&D in emerging technology fields like materials science, instrumentation and control, and microelectronics, and even equipment installed under the ADB-assisted project is considered rudimentary corpared to that in more industrialized neighboring countries. Wichout access to modern equipment, students graduate with no knowledge of new technologies and their usage. (c) Poor 0&M. Laboratory 0&M is deficient throughout the university system. This is due to: (i) inadequate budgetary allocations for laboratory 0&M; (ii) the practice of assigning responsibility for laboratory O&M to inexperienced junior staff with little authority in decision making; and (iii) the old age of equipment, which requires more frequent repair, servicing and replacements of spare parts. The universities' inadequate recognition of the value of laboratories is reflected in the fact that faculty teaching a three-hour laboratory session are normally paid for only one unit of work, while pay for a three-hour lecture session is based on three units of work. 2.21 These weaknesses highlight the critical need to build up university science and engineering laboratories with basic as well as up-to-date equipment and to improve laboratory O&M through increased funding and the appointment of more senior faculty for this purpose. These measures would improve the quality of instruction, encourage research, and assist the Philippines to approach the standards of the region's more industrialized countries. 2.22 Libraries. The main areas of concern regarding current library services are as follows: (a) Inadequate and Out-of-date Collections: Library collections of books and journals are inadequate for teaching and research. Even at the engineering library at UPD, considered the best in the country in this subject, book and nonbook holdings represent only 47% of the number recommended by Philippine Library Standards, while current journal holdings are only 14% of recommended standards. The situation is even worse if the age of books is considered: only an estimated 20% of the engineering books at the UPD library have copyright dates after 1975. - 11 - Funding for subscriptions to technical journals is also unpredictable and irregular, creating large gaps in collections; (b) Outdated Procedures and Practices: There is no central facility for procurement of library materials, resulting in inefficient small-scale and uncoordinated procurement practices. Operating procedures such as opening hours, access to networking facilities and lending policies, also limit the effectiveness of the services provided; and (c) Inadequate Facilities. Equipment and Staff: Severe physical and technical constraints limit the volume of materials housed, the provision of adequate reading space, and the services needed to keep up with new information. Librarians are also inadequately trained in information services and library system management. To support teaching and research, improvements are needed in library collections, service procedures .nd practices, physical facilities, equipment and staff capabilities. 2.23 Preparedness in Science and Math. Due to poor science and math teaching in secondary schools, engineering and science students are ill-prepared for university courses. This poor preparation is a major cause of a dropout rate as high as 40% among first and second year students. In national tests administered by DECS in the mid-1980s, the achievement of secondary students in a range of subjects was poorest in science. Student performance is also poor when compared internationally. In a recent science test given to a sample of 14 year old students by the International Association for the Evaluation of Educational Achievement, Filipino students correctly answered an average of 11.5 questions out of 30, compared to 16.5 for students in Thailand and Singapore, 18.1 for students in Korea and 20.2 for those in Japan. The Bank's sector study attributed the students' weak achievement to the absence of adequate science laboratories and, more important, to poor teacher performance, because most teachers, especially of physics, were not originally trained in the subject they teach. Thus, development of university engineering and science education will depend largely on raising high school student achievement levels in science and math by upgrading teachers' subject competency and laboratory facilities. Internal Efficiency 2.24 Low graduation rates among both undergraduate and graduate students contribute to the wasteful use of scarce resources. Only about 30% of first-year students in engineering and sciences actually graduate, with most dropouts occurring in the first two years due to failures in math and science examinations, especially physics (para. 2.23). These students either transfer to other disciplines or leave the universities entirely. The failures are clearly linked to the students' weak high school training in these essential fields combined with low university faculty competence (para. 2.18). 2.25 Graduation rates in master's and doctoral programs are also low. During 1986-89, only 10% of students enrolled in engineering master's programs graduated; theoretically, 30%-50% should have graduated from these three- and two-year programs. The factors contributing to this very poor performance are: (a) the part-time status of many students, who often also teach at local colleges and have limited time to study; (b) entry-level salaries in industry which fail - 12 - to compensate for the cost of a completed graduate degree; (c) a lack of research laboratories; and (d) an overemphasis on the thesis in the engineering graduate program, which unnecessarily prolongs the time needed to complete the program to as much as four years. It is therefore recommended that: the number of full-time graduate students be increased through a faculty scholarship program; industry introduce more attractive remuneration in recruiting engineers and scientists with graduate degrees; the networking of institutions be supported to encourage consortium arrangements and thus to make facilities more widely available; and the thesis for an engineering master's degree be replaced by a field project associated with industry problem-solving, process planning, or incubator projects. Regulations. Incentives and Monitoring 2.26 Academic Matters. To maintain minimum quality standatds in the growing number of private institutions, the Government in the 1970s introduced numerous regulations. These governed class size (not to be larger than 50) and time period (a class period to last 60 minutes), frequency of textbook changes (not to be changed more than once every six years), curricular changes (to require prior government approval), etc. While these regulations were largely not enforced, they could potentially have hampered the responsiveness of the system to changing needs. In 1989, the Government recognized the existing situation by issuing revised regulations on private education, relaxing many of previous ones, with the important exception of curricular changes which still require DECS approval (para. 2.14). Private universities are allowed to make changes only in electives, which account for only 10% of a curriculum. Chartered state universities and colleges enjoy curricular autonomy. Granting of curricular autonomy to private universities requires congressional approval. In 1990 a bill was filed by three Senators to introduce an act that would provide equality in curricular autonomy for private higher education institutions. It is pending in the Senate. 2.27 Recently, to replace external regulation with self-regulation, universities and colleges have been given incentives to regulate themselves through four accreditation associations. As they meet increasingly stringent requirements (four levels) set out by the associations, they are granted administrative, financial and academic autonomy, and finally subsidies when they reach the highest (fourth) level. Two major issues remain, however. The first is the consistency of criteria and standards among the four accreditation associations. The other is the lack of incentives offered to private institutions since the GovernmLent cannot provide them with flexibility in curricular changes, subsidies or tuition deregulation. A comprehensive study is therefore needed to review problems in the existing accreditation systems and to recommend alternative approaches, with associated plans of action. 2.28 Besides accreditation, which is voluntary, educational quality is overseen by nine technical panels created to advise the Secretary of Education on the major disciplines. Each panel consists of school and industry representatives who, with the assistance of local experts, set out quality standards for degree programs, monitor their implementation and submit recommendations to the Secretary of Education. The Technical Panel for Engineering Education (TPEE) is one of the older panels and has well-defined monitoring standards. In contrast, the Technical Panel for Science (TPS) was created only in 1990 from a subpanel under the Technical Panel for Arts and - 13 - Science. TPS now needs to develop its uemb-:rship and formulate standards appropriate for science education in the Phiippines. 2.29 Financial Matters. SUCs have no incentive to internally generate income. SUC income from fees, charges, etc. goes to the national treasury for rebudgeting as general appropriations (Annex 7). The University of the Philippines (UP) is, however, allowed to retain its income, except that derived from the sale of products. Income retention is also applied internally at UP; each college and department can retain the fees collected, including laboratory fees, for academic activities. This provides the colleges and departments with an incentive to raise fees as a means of augmenting normal budget allocations. It is recommended that all engineering and science colleges be allowed to retain income in the manner now practiced by UP in order to finance their high-cost programs. 2.30 Private universities are almost entirely funded by student fees, but government-imposed requirements make it difficult for them to increase fees. Under a 1989 law (Government Assistance to Students and Teachers in Private Education), fee increases require consultations with student governments or councils, alumni and faculty associations. Consultation has been interpreted by some student groups to mean consent, resulting in prolonged negotiations and often in student strikes and other class disruptions. The Government then intervenes to set a ceiling on fee increases for the next year. If private universities are to improve their quality, limits on fee increases should not be applied to special development fees earmarked for faculty, libraries, laboratories and other capital investments. C. Strategy for S&T Manpower Development Government Strategy and Programs 2.31 In support of the Government's plan to develop technology for industrialization of the economy (para. 1.8), the Science and Technology Coordinating Council (STCC) has prepared a plan for S&T manpower development. The S&T manpower plan aims at development of university education and research by improving faculty and facilities, providing research grants, and linking the universities with R&D institutes and industry. Emphasis will be given to basic sciences and mathematics as well as the specialized science fields of materials science, computer sciences, biotechnology, and pharmacology. Priorities in engineering are computer engineering/electronics and communication engineering, chemical engineering, mechanical engineering, materials engineering, electrical engineering, instrumentation and control, and industrial engineering (Annex 1). The plan also calls for the strengthening of environmental studies and t' introduction of graduate programs in technology management to help promoce an understanding of technological innovations and their influence on the economy and human life, and to provide skills to effectively manage such innovations. DOST will be responsible for coordinating efforts to develop high-level S&T manpower since the Secretary of DOST is Chairman of STCC, which has overall responsibility for coordinating and monitoring all aspects of technology development. 2.32 The plan supports a "flagship" approach to university development. This is a selective approach which targets development assistance to qualified institutions, public or private, to create a network of flagship and other leading institutions. Flagship universities will conduct instructional programs up to the Ph.D. level and engage in scientific research, whereas other network - 14 - institutions will concentrate mainly on undergraduate programs and involve themselves in applied research and extension needed in the regions. Flagship universities will provide leadership and assistance to other institutions in the network. The plan also calls for the phasing out of substandard undergraduate engineering programs, which have proliferated since the mid-1970s. 2.33 The Government also plans to improve secondary school-level science and mathematics to help prepare students for careers in S&T areas, and also to strengthen vocational and technical education to provide the skilled manpower needed for industrialization. 2.34 The Government is concerned not only with manpower production but also with its effective deployment. A recently-introduced S&T career system, beginning first in DOST, provides higher salaries to scientists and engineers, without requiring them to assume administrative positions. A modest scheme has also been introduced to attract expatriate scientists and engineers with fiscal incentives. 2.35 Implementation of the S&T manpower development program would be supported under the proposed project, using an integrated approach. This would be a change from the ad hoc assistance previously provided by bilateral sources to science and engineering education in the Philippines. This assistance included: aid to Don Bosco Technological College from the Government of Italy in developing computer science and engineering programs with computerized, numerically controlled (CNC) and computer-aided design (CAD) systems; United Nations Development Program support in modernizing the microprocessor control instrumentation laboratory at Rizal Technological College; and Japan International Cooperation Agency assistance to the Technological University of the Philippines for modern instructional equipment and to the University of Ateneo de Manila in building its Chemistry Institute. An exception to this individual assistance was the ADB-assisted engineering education project (1977- 84), which helped improve 20 engineering colleges in undergraduate education in civil, mechanical, chemical and electrical engineering (para. 2.20). Bank Experience and Strategy 2.36 Since 1965, the Bank has provided financing of US$432 million for nine education projects in the Philippines. The thrust of four of these projects was to provide basic knowledge and skills through support for textbooks (Ln. 1224T- PH, 1976), educational radio (Ln. S008-PH, 1978), and comprehensive development of elementary education including curricular revision, instructional materials, in-service teacher training, classrooms and equipment (Ln. 2030-PH, 1981; Ln. 3244-PH, 1990). The thrust of the remaining five projects was to develop technical and vocational manpower in specialized fields through support to education and training in agriculture (Ln. 392-PH, 1964; Cr. 349-PH, 1972; Ln. 1374-PH, 1977), fisheries (Ln. 1786-PH, 1979), and industrial skills (Cr. 349-PH, 1972; Ln. 2200-PH, 1982). 2.37 Except for the eighth and ninth projects, all have been completed. Project Performance Audit Reports (PPARs) have been prepared on the first six projects (SecM75-560, SecM82-898, SecM84-283, SecM86-781, SecM86-885, SecM90-850) and a Project Completion Report was recently prepared for the seventh project aimed at improving elementary education. The main issues identified by these reports were delays in implementation and disbursement due to protracted procurement processes and complex budget release and payment procedures. These - 15 - problems are being addressed as general country-wide issues by the Government and the Bank, and will be considered in the Bank's 1992 Country Economic Memorandum which will focus, inter alia, on process and procedural issues related to investment planning and implementation. In addition, the PPARs point out the critical importance of preparing for procurement of project inputs prior to implementation and the need to avoid, or minimize the impact of, changes in the project management structure and key personnel during implementation. 2.38 Of particular relevance to the proposed project are lessons learned under the Fourth (Agricultural) Education Project (Ln. 1374-PH) and the Fishery Training Project (Ln. 1786-PH), as they shared the proposed project's objective of improving the quality 3f tertiary education in their respective fields. The Fourth Education Project (closed end-1983) aimed to increase the supply of well- qualified agriculture manpower by improving the quality of agricuitural education and training. For this purpose, the project supported establishment and strengthening of three new institutions--the Technical Panel for Agricultural Education (TPAE), the Visayas State College of Agriculture (VSCA) and the Philippine Training Centers for Rural Development--as well as improvement of the quality of academic staff and teaching/research facilities at UPLB in forestry, animal sciences and veterinary medicine. The PPAR (SecM86-781, 1986) concluded that the project achieved its major objective of building UPLB and VSCA into strong institutions. However, the Report notes that while TPAE was established and produced guidelines for maintaining educational standards and regulating the proliferation of agricultural institutions, the standards are not being enforced because TPAE acts only as a consultative and advisory body to DECS. Other lessons were that: (a) end-users of laboratory equipment should be involved in defining equipment needs and in testing delivered equipment; (b) adequate installation space, access to spare parts and follow-up service should be assured before ordering equipment; and (c) accounting and auditing of project funds should be carefully monitored to avoid discrepancies in project costs which arose under this project. 2.39 The Fishery Training Project (closed end-1987) was designed to (a) support the Government's sector development strategy by strengthening fishery training and research capacity in selected areas, and (b) help rationalize and upgrade the existing fishery training and research system, with the UP College of Fisheries as the apex institution supervising seven regional institutes of fishery technology and training centers. The PPAR for the project (SecM90-850, 1990) found mixed results. Facilities were built and installed, curricula developed, and the institutional framework was improved, but the institutions were underutilized, enrollments were short of expectations, and course preference and research were skewed toward inland rather than, as anticipated, marine fishery. The Report points out that the latter results were chiefly attributable to lower than anticipated development of the fisheries sector, especially commercial fishing, constraints in fishery extension, and the lack of firm linkages between the training institutions and the employers or end-users. It also notes that in the absence of political will, Bank involvement has little impact on slowing the proliferation of substandard institutions and programs. 2.40 Also relevant to the proposed project is the experience of the ADB- assisted Engineering Education Project (Ln. 306-PH, 1977), for which a project audit report was prepared in 1987, two years after loan closing. The project assisted one state and 19 private engineering colleges to upgrade their programs in civil, mechanical, chemical and electrical engineering, with the loan proceeds on-lent to the private institutions. Three main lessons are noted. First, the - 16 - selection of participating institutions should take into account their capabilities to use investment funds effectively by examining their qualitative standards and management commitment. Second, similar to the lesson under the Bank's agricultural project (para. 2.38), lists of equipment to be provided under a project should be prepared in line with the curricula being offered and with close participation of the faculty responsible for laboratory courses to avoid procuring unrelated or inoperable equipment. Third, if funds are on-lent to private universities, the loans should be subsidized and made in the local currency to avoid the effect of foreign exchange fluctuations. Since student fees are subject to government-imposed ceilings, private institutions are unable to meet cash flow requirements far exceeding original expectations. 2.41 The proposed project has been designed in the light of the above experience gained and lessons learned. Rationale for Bank Involvement 2.42 In support of its technology development plan, the Philippine Government requested Bank assistance in improving the technological capabilities of local industries and in increasing the supply of S&T manpower for both industry and academe. The Government's goal in upgrading technology, i.e., to increase economic efficiency and productivity, is also the chief objective of the Bank's own country assistance strategy. The Bank has therefore responded to the government request through the proposed project as well as an industrial technology development project now being prepared to assist specific manufacturing industries. The proposed project would also allow the Bank to continue its dialogue with the Government on major policy issues in higher education, which were identified in the Bank's 1988 education sector report, and to assist the Government in selecting appropriate measures to address those issues. III. THE PROJECT A. Objectives and Scope 3.1 The overall objective of the project is to support technology development for industrialization in the Philippines by increasing the supply of well-trained science and technology (S&T) manpower. Toward this objective, the project would strengthen engineering and science education in priority fields for selected economic sectors (paras. 1.8-1.9). 3.2 To address the main issues in engineering and science education as described in Chapter II, the project's specific objectives are to: (a) Improve the institutional mechanisms and criteria for funding, and monitoring the quality of, engineering and science education; (b) Strengthen engineering and science education in priority fields at selected institutions by: - adjusting the enrollment structure to respond to S&T manpower needs; - 17 - - improving the curricula through the expansion of university- industry linkages, strengthening of environmental education and introduction of technology management programs; - upgrading educational quality through improvements in faculty, laboratories and libraries; and - strengthening financial and resource management by improving institutional capacities for income generation, resource utilization, and laboratory operation and maintenance; (c) Improve science and math education at selected secondary schools and the capacity of selected teacher training institutions to provide in- service teacher training in these subjects; and (d) Strengthen DOST's capacity to plan and coordinate S&T manpower development programs. 3.3 To address these objectives, the project would have a policy action plan and six investment components: (a) Policy Action Plan. The Plan would cover (i) the preparation and application of criteria or directives to improve the institutional framework for funding and monitoring engineering and science education, and (ii) the establishment and attainment of targets and actions to improve the enrollment structure as well as financial and resource management of selected project institutions; (b) Engineering Education. Funds would be provided for faculty development, expert services, initial operational costs for university-industry linkages, laboratory equipment, and renovation and expansion of laboratory buildings to improve undergraduate and graduate programs in priority fields at five public and 14 private colleges of engineering. The project rould also finance scholarships to upgrade the quality of engineers in industry and R&D institutions and encourage new graduates to pursue further training at the project's engineering colleges offering graduate programs; (c) Science Education and Research. Funds would be provided for faculty development, expert services, laboratory equipment, and renovation and expansion of laboratory buildings (i) to strengthen undergraduate and graduate education in priority fields, including environmental educatiou, at four public and six private colleges of science, and (ii) to develop research capacities in two leading universities. As in engineering education, the project would finance scholarships to scientists in industry and R&D institutions and new graduates to receive further training at the project's science colleges offetng graduate degrees; (d) Management of Technology. To help bridge the gap between technology and its utilization, funding would be provided for faculty development, expert services, books and journals for the colleges of engineering, science and business administration at three universities. These inputs would help introduce courses as a major in - 18 - management of technology (MOT) in the master's program in business administration, as well as short courses aimed at government and industry personnel; (e) Library Networks, Staff training, books, journals, equipment, and renovation and expansion of library facilities would be provided to strengthen libiaries at three engineering and seven science colleges and to develop a system of networking among these libraries; (f) Secondary School Science and Math/In-service Teacher Training. Funds would be provided for teacher upgrading, books, laboratory equipment, and renovation and expansion of laboratory facilities at 110 secondary schools and 22 teacher training institutions responsible for in- service teacher training; and (g) S&T Manpower Planning and Monitoring. Staff training, expert services and equipment would be provided to strengthen the roles of DOST, TPEE and TPS in S&T manpower planning, coordination, and monitoring and evaluation. B. Detailed Proiect Description Policy Action Plan 3.4 The Plan has two parts. The first aims at improving the institutional framework for overall engineering and science education and would include the following actions: (a) DOST in consultation with DECS would establish and utilize criteria to identify flagship and other leading institutions to create a collaborative network as well as programs eligible for funding under the project; (b) DOST in consultation with DECS would specify the collaborative roles of flagship and other network institutions in teaching and research in priority S&T fields; (c) DECS would issue a directive requiring TPEE to monitor engineering programs in both public and private institutions and, if recommended by TPEE, would phase out substandard degree programs in private institutions or convert them to non-degree programs; (d) DECS would issue a directive activating the Technical Panel for Science (TPS) along with a plan of action; and (e) DECS would carry out a study to review the standards, incentives and organizational set-up of existing accreditation systems, identify key issues, and recommend solutions to those issues. In conjunction with this part of the Action Plan, the project would finance four three-month scholarships to strengthen TPEE and TPS of DECS, and 24 months of local and six months of foreign expert services for the study of accreditation. - 19 - 3.5 DOST, in consultation with DECS, has already prepared criteria satisfactory to the Bank for selecting engineering and science institutions and programs eligible for project funding as well as the roles of flagship and other institutions. The criteria stress: instructional quality in priority fields and geographical dispersion for identifying institutions in the network, and graduate education and research quality for identifying flagship institutions (Annex 8). Based on these criteria, DOST has selected 19 out of over 180 engineering colleges as qualified for funding (Annex 9). Three of the 19 schools would be developed as flagship institutions where master's degree programs would be strengthened, and faculty from the other 16 institutions would receive additional training. In science education, DOST has selected 10 institutions out of 37 for funding (Annex 9). Doctoral programs would be developed at four of these colleges, and master's programs at six. The engineering and science institutions selected for support under the project have developed program proposals prepared and justified within the context of five-year institutional development plans, covering programs, enrollments, staff, physical facilities, and financial and resource management. The Government has also taken initiatives on other actions by issuing DECS directives authorizing its TPEE to evaluate and monitor undergraduate engineering programs at state universities and TPS to review the undergraduate science curriculum and establish minimum quality standards, and by preparing terms of reference for the study of accreditation arrangements. 3.6 The second part of the Action Plan would improve financial and resource management, including laboratory operation and maintenance, of project institutions through the following actions: (a) A Memorandum of Agreement would be signed between DOST and each project university stating university arrangements for adjusting the enrollment structure as required, lowering student-faculty ratios, reducing teaching loads, reducing the number of years needed to graduate, improving laboratory operation and maintenance, and increasing linkages with industry; (b) DECS would issue a directive allowing project universities to (i) charge a special laboratory development fee to cover the costs of capital investments, and (ii) count one laboratory session of three hours as two units, rather than the current one unit, for the purpose of charging a laboratory tuition fee and paying equipment maintenance and salaries of faculty responsible for laboratory courses; (c) Each project university would create a Science and Engineering Laboratory Fund (SELF), out of the proceeds from special laboratory development and tuition fees, to help upgrade, operate and maintain laboratories, and cover salary increments for the faculty teaching laboratory courses; and (d) DOST would conduct a study to review the expected repair, servicing and spare parts requirements of project laboratories, examine the availability of technicians and maintenance and repair shops to meet these needs, and recommend improved arrangements to respond to the needs. The project would finance 14 months of local expert services for the study. 3.7 The Government has already produced the signed Memorandum of Agreement between DOST and each project institution and agreed that its modifications would - 20 - be made in consultation with the Bank. Terms of reference for the study on laboratory O&M satisfactory to the Bank h ve also been prepared. Further, agreements have been reached between the Government and the Bank that: (a) the issuance of a DECS order allowing the project private universities to charge the special laboratory development fee and the special laboratory tuition fee based on one laboratory session as two units would be a condition of effectiveness; (b) by December 31, 1992, the project state universities would obtain approval for the same from the respective Boards of Regents; and (c) by December 31, 1992, a SELF would be established out of the proceeds from these fees in each project university. 3.8 In view of various policy initiatives sought under the project, the involvement of DECS, which is responsible for educational policy formulation and supervision, would be essential. To assure effective collaboration between DOST and DECS throughout project development and execution, a Memorandum of Agreement acceptable to the Bank has been signed between the Secretaries of these two Departments. Engineering Education (US$46.5 million equivalent including contingencies) 3.9 The project would support 19 selected engineering colleges, three of which--colleges of engineering at the University of the Philippines at Diliman (UPD), De La Salle University (DLSU) and the University of San Carlos (USC)-- would be developed into flagship engineering institutions. The other 16 would be developed into leading institutions in the National Capital Region (NCR) and Regions I, IV, VI, VII, X, XI and XII. Development of these institutions would be complemented by support for establishment of a university-industry linkage program (para. 2.16), with the project financing the first year's administrative costs. 3.10 The engineering colleges to be assisted under the project currintly have about 250 graduate and 26,200 undergraduate students in priority fields, i.e., computer engineering (as part of electronics and communications engineering), electrical engineering (with focus on instrumentation and control), materials engineering, chemical engineering (with focus on process engineering), mechanical engineering (with focus on design and manufacturing), and industrial engineering (Annex 5). The students in priority fields account for about 40% of the schools' total engineering enrollments or 30% of all degree engineering enrollments in the country. Under the project, enrollments in the priority fields are expected to rise by nearly 20%, while overall engineering enrollments would remain unchanged as the increase would be offset by the current decline in enrollments in civil engineering and geodetic engineering, which have expanded most rapidly and suffer from a serious oversupply of graduates. Also in the priority fields, the share of graduate enrollments would rise from the current 1% of total undergraduate enrollments to 2-3% of the projected undergraduate enrollments of 34,000 by 1996/97. 3.11 The 19 project institutions currently have 450 full-time and 170 part- time faculty (full-time equivalent of about 530), of which about 30% of full-time and 20% of part-time faculty have graduate degrees. To help bring the percentage of faculty with graduate degrees to about 60% by 1996/97, when a total of 700 faculty are projected, the project would finance scholarships for local and foreign master's and doctoral degrees (Annex 10). These scholarships would be awarded to faculty who are already teaching or will be teaching at the 19 institutions, according to terms and conditions being applied by DOST's PCIERD in - 21 - administering its ongoing grant-in-aid program funded from DOST's regular budget. Terms and conditions for the scholarships have been reviewed and agreed with the Bank (Annex 11). In addition, the project would support in-country, three-month upgrading training and 36 man-months of foreign expert services to improN the curricula and teaching (Annex 10). Terms of reference and the appointment schedule of all expert services to be obtained under the project have been prepared and are acceptable to the Bank. 3.12 The project would equip the schools' laboratories with three levels of engineering instrumentation. Laboratories of the three flagship institutions would be brought up to standards prevailing in the more industrialized countries in the region, thus enabling them to conduct improved and expanded graduate and research programs. The undergraduate laboratories at all 19 institutions would receive DECS/TPEE-recommended intermediate-level equipment, which is above the minimum-level and closer to the standard in more advanced neighboring countries. In addition, the project would upgrade the laboratories of project institutions to DECS/TPEE minimum standards needed to support priority fields. While the Government, through DOST, would provide graduate and intermediate-level equipment without charge, it would be the responsibility of individual project universities to bring needed laboratories to the minimum standards. The Government has assured the Bank that all project universities, state and private, would meet the minimum standards by May 31, 1993. 3.13 Further, the project would set up funds for local master's and doctoral scholarships to upgrade the quality of engineers in industry and R&D institutions and to encourage outstanding new gradu-tes to pursue further training (Annex 10). The scholarships would be awa led according to the eligibility criteria, award conditions and selection processes agreeable to the Bank. Science Education and Research (US$48.8 million equivalent with contingencies) 3.14 Ten colleges of science, including three within the University of the Philippines (UP) system, have been selected for project support in accordance with agreed criteria. Five of the schools are in NCR, two in Region VII, and one each in Regions IV, X and XII. Doctoral programs would be strengthened at four of the colleges. Programs in chemistry, physics and math would continue to be developed based on the consortium arrangement among UPD, DLSU and Ateneo de Manila University. Master's programs would be strengthened at six of the ten colleges. 3.15 The selected institutions enroll 1,350 and 9,740 students in graduate and undergraduate programs, respectively. They account for nearly all graduate and 40% of undergraduate enrollments in science in the country. By 1996/97, undergraduate enrollments would increase by about 30% (to 12,500) and graduate enrollments would double (to 2,800). The percentages of students in computer science, physics and earth science would rise significantly from 17% to 26%, 4% to 7%, and 0.5% to 1.0%, respectively, while the share in biology would decrease from 45% to 34%. 3.16 The ten project colleges have 810 full-time and 190 part-time faculty (about 900 full-time equivalent). On average, 50% of the faculty have graduate degrees, with biology faculty having the highest percentage at 88%. By 1996/97, there would be about 950 full-time equivalent faculty. To help meet the target of 70% of faculty with graduate degrees by 1996/97, the project would finance - 22 - local and foreign scholarships for master's and doctoral degrees, and local and foreign fellowships for one-year as well as two-month research and training to help update knowledge and skills of faculty and laboratory technicians (Annex 10). The scholarships and fellowships would be administered following procedures used by DOST's Philippine Council for Advanced Science and Technology Research and Development (PCARTRD) in managing its grant-in-aid program for staff training and research activities. Its terms and conditions have been reviewed and found satisfactory by the Bank (Annex 11). Ten man-months of foreign expert services would also be supported under the project to help improve the quality of instruction and research. 3.17 The project would finance two types of scientific equipment: equipment for laboratories for basically instructional purposes; and equipment for inter- university shared facilities for graduate and research work. Equipment for shared facilities would be installed in the National Chemical Instrumentation Center at Ateneo de Manila University for chemical characterization and identification, the Materials Science Facility Center at UPD for quantum functional devices such as laser diodes and high electron mobility transistors, and the Microelectronic Facility Center also at UPD for the design, fabrication, verification and testing of integrated circuits. The shared facilities would be used for inter-university research and training, and for services for industry and government. Understandings between the Government and the Bank have been reached that the final composition of sophisticated research equipment and its procurement timing would be determined by DOST with technical inputs of a Project Advisory Group to be set up (paras. 4.9, 4.10), taking into account that the need of researchers would be met and no equipment would be underutilized. 3.18 To improve the quality of scientists in industry and R&D institutions and to encourage outstanding new science graduates to pursue further training, the project would provide local master's and doctoral scholarships (Annex 10), according to the eligibility criteria, award conditions and selection processes satisfactory to the Bank. 3.19 Graduate programs in environment studiej would be supported at the Departments of Chemistry, Biology and Chemical Engineering in the Colleges of Science and Engineering of UPD, the Departments of Chemistry and Biology in UPLB's College of Science, and the Department of Chemical Engineering in DLSU's College of Engineering. The programs would entail 15 units o" core courses, at least nine units of environment-related courses, and preparation of a related thesis. The project would finance scholarships for local and foreign doctoral and master's degrees for faculty development, 12 man-months of foreign expert services for program improvement (Annex 10), and equipment for improved laboratory practices. Management of Technology (US$1.2 million equivalent including contingencies) 3.20 The project would introduce graduate-level and short-term courses in management of technology (MOT). The graduate courses would be introduced as a major in MOT within the master's program in business administration (MBA) offered at UPD, DLSU and the Asian Institute of Management (AIM). The MOT program would introduce MBA candidates, about 40% to 45% of whom have engineering and science degrees, to the use of technology as a tool for innovation, productivity and profitability. Each institution would focus on different specializations within MOT (Annex 12). - 23 - 3.21 The three institutions would also develop short courses (one to four weeks), targeted to S&T policy makers in DOST and other relevant government agencies, managers of public and private R&D institutes, and entrepreneurs in business and industry. The courses would be aimed at developing an understanding of such topics as the implications of technology development, processes involved in technology transfer and diffusion, marketable technologies, funding, utilization, maintenance and further development. A fee would be charged to participants in the short courses. 3.22 The project would fund foreign scholarships for master's and doctoral degrees to develop faculty trained in this new field of MOT, and three-month foreign training and 18 man-months of foreign expert services to assist with program development and faculty upgrading (Annex 10). The project would also finance development of case studies, instructional materials, and books and journals. This component would be coordinated by DOST's Technology Application and Promotion Institute (TAPI). Library Networks (US$12.9 million equivalent including contingencies) 3.23 To support improved teaching and research in engineering and science, the project would expand the reference book and journal collections as well as the services of the leading national institutions responsible for faculty development under the project, i.e., seven colleges of science and three colleges of engineering, and a networking system would be established among the libraries. Lists of required books and journals would be submitted by the faculty of these institutions and reviewed by a library implementation advisory group attached to PCASTRD. Each library would be allowed to acquire up to 100 books per discipline (Annex 13). For serials selected for advanced graduate and research work, one copy of each title and up to 50 titles per discipline would be procured, with all titles held at the Colleges of Science and Engineering at UPD, except for biotechnology to be held at UPLB. 3.24 The project would also develop library networking to provide all members of the participating institutions with access to the expanded collections. A central data base of all materials in the selected libraries would be created, and an integrated library management system would be installed for such functions as cataloguing, acquisitions, circulation control and an online public access catalog. Besides software for the integrated system, the project would finance necessary cabling and equipment for local area networking (LAN). The University of San Carlos would be included in the network as a demonstrator to link libraries beyond the selected institutions in the Manila area. 3.25 To train staff in information science and the application of information technology, the project would finance foreign master's degree scholarships and local and foreign four-month scholarships, according to agreed terms and conditions, and 14 man-months of local and 8 man-months of foreign expert services (Annex 10). The Government would appoint a systems librarian and LAN administrators for each project library, according to terms to be agreed with the Bank. Members of the participating institutions would have access to the collections without undue restrictions and formality. Science and Math in Secondar: Schools and In-service Teacher Training (US$19.1 million equivalent including contingencies) - 24 - 3.26 Science and Math in Secondary Schools. The project would improve instruction of science (physics, chemistry and biology) and math subjects in selected public schools through the establishment of special honor classes and the provision of in-service teacher training, library books, laboratory equipment, and renovation and expansion of laboratory facilities. From among DECS regional leader high schools, 110 schools have been selected based on their relatively higher capabilities to deliver science and math courses, their access to teacher training institutions and the commitment of school heads to improve these courses (Annex 14). The selected schools have large enrollments, varying from about 1,000 to over 8,000 per school, and an estimated 3,500 science and math teachers. The project would finance certificate scholarships which would be completed in either two summers of full-time instruction or three semesters of Saturday-only instruction (Annex 10). There would be two types of programs, one geared to teachers with bachelor's degrees in the subject they teach and one for teacliers with degrees in other subjects; however, the content of both programs would be concentrated on the subject areas. DOST has prepared target and monitoring indicators to measure the impact of science and math enrichment courses introduced in 110 high schools. An understanding has also been made with the Government that DOST would collect related base data by August 31, 1992. 3.27 In-Service Teacher Training. To improve in-service training of science and math teachers from the selected high schools, the project would strengthen the capability of 12 Regional Science Teaching Centers (RSTCs) and 10 nearby teacher training colleges which would supplement the training capacity available in the RSTCs. RSTCs are already carrying out in-service training programs in science and math under the sponsorship of DOST's Science Education Institute (SEI). The RSTCs and the teacher training colleges would not only provide training, but would also assist and monitor the installation and operation of laboratory equipment provided to high schools under the project and the overall implementation of special science and math classes to be established. To further improve the institutions in these functions, the project would finance faculty scholarships for master's of arts in teaching (MAT) science and math (Annex 10). The project would also support the upgrading of laboratory equipment and facilities. DOST has prepared satisfactory design plans and equipment requirements for each high school and teacher training institution, together with estimated costs and an implementation plan. S&T Manpower Planning and Monitoring (US$2.3 million equivalent including contingencies) 3.28 The project would strengthen DOST's management information system (MIS) to improve its planning and administration of S&T manpower and R&D development programs. Initial development of the MIS under the project would focus on S&T manpower development. The project would assist in setting up data bases on the profiles of academic institutions relating to: (a) enrollments; (b) faculty; (c) programs offered; (d) finance; (e) major R&D undertakings; and (f) employment status of graduates. The project would provide the necessary computer hardware and software, and 12 man-months of local and 10 man-months of foreign expert services (Annex 10). A further three months of in-country training would be provided to DOST staff in data analysis and use of information for planning and evaluation of programs. In addition, the project would help DOST administer the proposed project through support to related project monitoring, periodic implementation review workshops, and hiring of expert services for project management. - 25 - IV. PROJECT COSTS. FINANCING AND IMPLEMENTATION A. Cot Summary of Costs 4.1 The total cost of the project is estimated at Peso 4,237.4 million (US$130.7 million equivalent), including foreign exchange costs of about US$69.9 million and taxes and duties estimated at about US$13.8 million. Tables 4.1 and 4.2 summarize the estimated costs by project component and category of expenditure, respectively. Detailed costs are provided in Annex 15. Table 4.1: SUMMARY OF PROJECT COSTS BY COMPONENT Peso Milion US$ Milion % % Component LocaL Foreign Total Local Foreign Total Foreign Base A. Engineering Education 1. Graduate 297.8 237.6 535.3 1.06 8.5 19.1 44 18 2. Undergraduate/Intermediate 115.3 187.7 303.3 4.1 6.7 10.8 62 10 3. Undergraduate/Minimum 122.0 131.6 253.6 4.4 4.7 9.1 52 8 Subtotal A 535.1 556.9 1,092.0 19.1 19.9 39.0 51 36 B. Science Education and Research 1. Graduate Natural Sciences 387.7 396.1 783.8 13.8 14.1 28.0 51 26 2. Graduate Environ. Sciences 58.2 46.7 105.0 2.1 1.7 3.7 45 4 3. Undergraduate 97.8 155.6 253.5 3.5 5.6 9.1 61 8 Subtotal 8 543.7 598.5 1,142.2 19.4 21.4 40.8 52 38 C. Management of Technology 4.3 23.2 27.5 0.2 0.8 1.0 84 1 D. Library Networks 83.7 176.2 259.9 3.0 6.3 9.3 68 9 E. High School Science & Math and In*service Teacher Training 1. High School Science & Math 194. 140.0 334.5 6.9 5.0 11.9 42 11 2. In-service Teacher Training 53.0 63.2 116.3 1.9 2.3 4.2 54 4 Subtotal E 247.5 203.2 450.8 8.8 7.3 16.1 45 15 F. Planning & Management 1. Information System 4.7 3.5 8.3 0.2 0.1 0.3 63 0.3 2. Project Management 19.1 16.9 36.0 0.7 0.6 1.3 47 1 3. Planning & Monitoring 2.9 6.8 9.7 0.1 0.2 0.3 70 0.3 Subtotal F 26.8 27.2 54.0 1.0 1.0 1.9 51 2 Total Base Costs 1,441.1 1,585.3 3,026.4 51.5 56.6 108.1 g i00 Physical Contingencies 91.5 170.0 261.4 3.3 6.1 9.3 65 9 Price Contingencies 454.1 495.4 949.6 6.0 7.3 13.3 55 12 Total Costs 1&986.7 2,250.7 4 237.4 60.8 69.9 130.7 4 ILI - 26 - Table 4,2: SUMMARY OF PROJECT COSTS BY CATEGORY OF EXPENDITURE Category of Peso Million US$ MiLlion % % Expenditure Local Foreign Total Local Foreign TotaL Foreign Base I. Investment Costs A. Overseas training 1. Degree programs 5.3 171.3 176.6 0.2 6.1 6.3 97 6 2. Other training 1.7 53.9 55.6 0.0 1.9 1.9 97 2 Subtotal A 7.0 225.2 232.2 0.2 8.0 8.3 97 8 B. In-country training 1. Degree programs 197.4 49.4 246.8 7.1 1.8 8.9 20 8 2. Other training 42.5 10.6 53.1 1.5 0.4 1.9 20 2 Subtotal B 240.0 60.0 300.0 8.6 2.1 10.7 20 10 C. Substitute teacher salaries 224.3 0.0 224.3 8.0 0.0 8.0 0 7 D. Equipment 1. Minimum Standards 42.7 118.7 161.5 1.5 4.2 5.8 74 5 1. Undergraduate 61.7 171.4 233.1 2.2 6.1 8.3 74 8 2. Graduate & research 187.5 521.1 708.6 6.7 18.7 24.4 74 24 3. Miscellaneous 36.2 100.5 136.7 1.3 3.6 4.9 74 5 Subtotal D 328.2 911.7 1,239.9 11.7 32.6 44.3 74 41 E. Books and journals 72.2 200.6 272.8 2.6 7.2 9.7 74 9 F. Civil works 165.0 70.7 235.7 5.9 2.5 8.4 30 8 G. Technical assistance 1. Local experts 4.7 0.8 5.5 0.2 0.0 0.2 15 0.2 2. Foreign experts 12.9 38.8 51.7 0.5 1.4 1.8 75 2 Subtotal G 17.6 39.6 57.3 0.6 1.4 2.0 69 2 H. Management & supervision 14.5 3.6 18.1 0.5 0.1 0.6 20 1 Total 1.068. 1.511.4 2.580.1 38.2 54.0 92.1 2 85 II. Recurrent Costs A. Incremental 0&M 295.4 73.9 369.3 10.6 2.6 13.2 20 12 B. Incremental salaries 77.0 0.0 77.0 2.7 0.0 2.7 0 3 Total 372.4 73.9 446.3 13.3 2.6 15.9 17 15 Total Base Costs 1I1.1 1,585.3 3,026.4 51.5 56.6 108.1 L2 L00 Physical contingencies 91.5 170.0 261.4 3.3 6.1 9.3 65 9 Price contingencies 454.1 495.4 949.6 6.0 7.3 13.3 55 12 Total Costs LA 197 2250.7 4,237.4 60.8 69.9 130.7 L4 J ,g Includes US$13.8 million equivalent in identifiable taxes and duties. - 27 - Basis of Cost Estimates 4.2 Base Costs and Contingencies. Base costs are expressed in September 1991 prices and were calculated as follows: Training: (a) overseas training: degree programs--US$25,000 per student- year, one-year research fellowships--US$35,000 per fellowship, two-month research fellowships--US$10,000 per fellowship, and three-month training-- US$15,000 per candidate; and (b) in-country training: doctoral programs-- US$2,750 per student-year, master's programs--US$1,900 per student-year, one-year research fellowships--US$2,900 per fellowship, two-month research fellowships--US$700 per fellowship, and three-month training--US$700 per candidate. EauiRment: on agreed detailed lists priced for similar imported or locally available items and recent experience in neighboring countries for similar items. Books and journals: on agreed quantities of similar items recently procured by universities in the Philippines and in other projects in neighboring countries. Civil works: on approved building proposals for the various components with acceptable area allocations and unit rates. Unit rates per square meter for civil works range from US$150 for basic additions to US$240 for high school laboratories inclusive of utility services. Technical assistance: foreign consultants--US$12,000 per staff-month, and local consultants--average of US$2,500 per staff-month. Operational support: project management/supervision activities on standard allowances for honoraria, travel and subsistence, and consumable materials. Incremental 0&M: for equipment--10% and for civil works--3% of the investment, per annum. Incremental salaries: standard government salary structure and allowances. Physical contingencies of 12% were allowed for civil works, equipment and books and journals and technical assistance, and 8% for overseas and in-country training. No physical contingency was allowed for related incremental O&M and salaries. Physical contingencies (US$9.3 million) represent 8% of base costs. Price contingencies (US$13.3 million, about 12% of base costs) plus physical contingencies, were estimated on the basis of the implementation schedule (Annex 19) and expected annual price increases of: local--10% for 1992 and thereafter; foreign--3.9% for 1992 and thereafter. 4.3 Foreign Exchange Costs. Direct and indirect foreign exchange costs were estimated at about Peso 2,250.7 million (US$69.9 million equivalent) including contingencies. Based on expenditures of similar projects in the Region, the foreign exchange component for the major categories was estimated as follows: (a) civil works 30%; (b) equipment and books 74%; (c) overseas training 97%; (d) foreign consultants 75%; (e) in-country training, operational expenditures for project management/supervision and incremental O&M 20%; and (f) local consultants 15%. - 28 - 4.4 Taxes and Duties. Identifiable taxes were estimated at about Peso 438.7 million (US$13.8 million equivalent). Estimated taxes were based on the current practice of imposing a value-added tax of about 10% on all contracts for civil works and goods and services. Import duties and taxes are estimated at about 26% of CIF costs. B. Financing Sources of Financing 4.5 The total project cost of US$130.7 million would be financed as follows: (a) The proposed IBRD loan of US$85.0 million would finance 73% of the total project cost, net of taxes and duties (65% including taxes and duties), covering 100% of foreign exchange costs (US$65.1 million, excluding US$4.8 million for minimum standards equipment to be financed by project universities independently) and 45% of local costs (US$21.2 million); (b) The Government would finance 23% of the total project cost including taxes and duties, through budgetary appropriations to: - DOST to cover the outstanding capital expenditures (excluding those related to minimum equipment and substitute teachers' salaries while faculty would be on further training) and related taxes and duties; - State universities to cover the cost of minimum equipment, the salaries of substitute teachers and new faculty, and incremental O&M expenses; and - DECS to cover the salaries of substitute teachers and new faculty, and incremental 0&M expenses, for DECS-administered high schools and teacher training institutions; and (c) Private universities would finance 12% of the total project cost inclusive of taxes and duties, to cover the cost of minimum equipment, the salaries of substitute teachers and new faculty, and incremental O& expenses. To meet expeditiously the needs for minimum equipment, an agreement has been made with the Social Security System (SSS) that the necessary funds would be made available to interested project universities under its prevailing terms and conditions. The financing plan is detailed in Table 4.3 below: - 29 - Table 4.3: FINANCING PLAN (US$ million) % Share GOP Priv- IBRD Category of State Sub- ate A Finan- Expenditure DOST Univ. DECS total Univ. IBRD Total cing Overseas training Degree - - - - - 9.1 9.1 100 Other - - - - - 0.9 0.9 100 In-country training Degree - - - - - 10.6 10.6 100 Other - - - - - 2.3 2.3 100 Substitute teacher salaries a - 4.6 0.1 4.7 4.3 - 4.5 - Equipment Minimum standards - 1.9 - - 4.7 - 6.6 - Undergraduate 1.9 - - 1.9 - 8.4 10.3 81 Graduate & research 5.8 - - 5.8 - 25.1 30.9 81 Miscellaneous 1.1 - - 1.1 - 4.8 5.9 81 Books & journals 2.6 - - 2.6 - 11.1 13.7 81 Civil works 0.6 - - 0.6 - 9.5 10.1 90 Technical assistance - - - - - 2.4 2.4 100 Management & supervision Z - - - - - 0.8 0.8 100 Incremental O&M 0.0 6.9 2.4 9.3 5.8 - 15.1 - Incremental salaries 0.0 1.3 0.6 1.9 1.1 - 3.0 i Including identifiable taxes and duties estimated at US$13.8 million equivalent. Lh Cost of engaging substitutes for teachers taking degree training programs. LQ Mainly expenditures directly related to the management of the project such as travel, consumable materials, honoraria, etc. JA About 73%, net of taxes and duties. Feasibility and Sustainability 4.6 Annual budgetary requirements to meet the project's counterpart funding needs of Pesos 1,492.0 million are estimated as follows: - 30 - Table 4.4: Annual Budgetary Requirements 1992 1993 1994 1995 1996 Total --------------------Peso Million--------------- DOST 26.2 124.4 164.3 34.2 35.7 384.8 State Universities 74.4 49.1 90.7 132.2 139.8 486.3 DECS 4.2 9.6 20.0 33.3 38.1 105.2 Private Universities 155.3 44.0 80.1 115.3 121.0 515.7 Subtotal 260.2 227.0 355.2 315.0 334.6 1,492.0 IBRD 173.2 851.8 972.1 387.2 361.1 2,745.3 Total 4334 1,078.9 1,327.3 702.1 695.7 4,237.4 In light of the Government's current severe fiscal problems, the project is designed to reduce the budgetary burden in the first implementation year. Understandings have been reached with the Government that the Department of Budget and Management (DBM) would assure needed FY92 and subsequent allocations for the project, and participating private universities would assure the provision of counterpart funds through the Memoranda of Agreement (para. 3.7) 4.7 Incremental recurrent expenditures when the project becomes fully operational (1997) are estimated to account for about 0.4% and 0.07% of projected DOST and DECS budgets, which would be minimal increases. By contrast, corresponding incremental O&M expenditures for engineering and science colleges in state and private universities would be significant accounting for 15-25% of total recurrent expenditures of the colleges. To help meet this increased budgetary burden, the project is designed to improve cost recovery and institutional capacity. The relaxation of currently regulated tuition fees by allowing project universities to charge special laboratory development and tuition fees would increase their ability to finance incremental recurrent expenditures. The income from these special fees would be used to create a revolving Science and Engineering Laboratory Fund (SELF) in each project university. Measures to improve the project's technical sustainability would include instituting of appropriate funding criteria for engineering and science education, strengthening of standard-setting and monitoring roles of TPEE and TPS, and development of DOST capacity to coordinate and monitor S&T manpower programs. C. Implementation Introduction 4.8 DOST would be responsible for overall management of the proposed project in cooperation with DECS (para. 3.8). DOST, which was elevated in January 1987 to a Cabinet-level agency from the former National Science and Technology Authority, is responsible for the formulation of a national S&T plan and monitoring and coordination of its funding and implementation. DOST also undertakes R&D, where needed, for S&T development. DOST is organized into a - 31 - central office, five sectoral planning councils, seven R&D institutes, five service institutes, three attached agencies, and 12 regional offices. The central office provides staff services related to Department-wide planning and evaluation, financial management, and administration and legal matters. The sectoral councils carry out sector-level planning, monitoring and coordination, and administration of grant-in-aid programs for R&D and training. Each council has a governing council for policy decision making and an executive office, supported by a technical advisory committee whose members are drawn from a long list of local S&T experts. DOST's service institutes such as the Technology Application aad Promotion Institute (TAPI) and the Science Education Institute (SEI) provide, inter alia, grants and venture financing for projects in emerging fields and administer scholarships for the development of science and technical education at high schools and teacher training institutions. Management of the proposed project would be organized by mobilizing the central office and several of these councils and institutes. Management Structure, Functions and Staffing 4.9 The organizational structure for project implementation would comprise three main bodies: (a) the Steering Committee headed by the DOST Secretary with technical inputs from the Project Advisory Group (FAG); (b) Working Groups composed of key units in participating councils and institutes (i.e., PCIERD, PCASTRD, SEI, and TAPI); and (c) the Project Implementation and Coordinating Office (PICO) created in the central office. The organizational structure is detailed in Annex 16, and the main functions and staffing of each are described below. 4.10 Steering Committee. The Committee would act as the policy making and major resource allocation body, ensuring that plans and programs are duly executed and working closely with PAG. The Steering Committee would be chaired by the DOST Secretary, with the DECS Secretary as first co-chairman and the representative of private universities as co-chairman. Its members would include an industry representative, the DBM Undersecretary, the Deputy Director General of the National Economic and Development Authority (NEDA), the DOST Undersecretary for S&T, and the PICO manager who would also serve as secretary. The PAG, chaired by a Filipino expert and composed of two local and two foreign S&T experts, would meet jointly twice a year, with each member devoting about four weeks annually. The members would visit project sites, discuss project implementation with the staff concerned, and review appropriate documents to assess overall project progress and provide technical advice to the Steering Committee. Each Filipino member would devote an additional week a year to provide a more frequent technical feedback to the Steering Committee. Terms of reference for PAG agreeable with the Bank have been prepared (Annex 17) and its chairman has been appointed. Further, an understanding has been reached with the Government that appointments of the remaining four PAG members would be a condition of loan effectiveness. The PAG members including the chairman would be appointed for the first two years, and their continued services for the remainder of the project period would be determined at that time. 4.11 Working Groups. These groups were created during project preparation and have been actively involved in the design of their respective components. They would continue their work during project implementation in close cooperation with the project institutions. Particular efforts would be made to ensure that the needs and requirements of end-users are met and that agreed criteria are followed. Below is a brief description of these Working Groups, their individual functions and staffing strength: - 32 - PCIERD Working Group - The Human Resource and Institutional Development Division of PCIERD would be responsible for managing the engineering education component. The existing ten staff of this Division would be strengthened with additional members from the participating university libraries to coordinate the program and interface with user groups. PCIERD has four divisions totalling 58 staff. PCASTRD Working Group - The Human Resource and Institutional Development Division of PCASTRD would be responsible for managing the science education and research and the library development components. The Working Group of nine staff would handle the additional work created by this project. PCASTRD has four divisions totalling 35 staff. SEI Working Group - The Science and Technology Education Division of SEI would manage the secondary school science and math/in-service teacher training component. SEI has three divisions with a total of 52 staff. DECS would also play an important role in this component through its regional offices and would contribute to the administration of related teacher training programs and the receipt and installation of equipment at the project high schools and teacher training institutions. TAPI Working Group - The Office of the TAPI Director would manage implementation of the MOT component. 4.12 In coordination with project institutions, the Working Groups would undertake the following tasks for their particular components: (a) Training: draft candidate selection criteria and procedures, identify and select candidates and training institutions, and evaluate programs; (b) Equipment Procurement: identify needs and prepare master lists; (c) Books and Journals: shortlist suppliers and identify titles, in cooperation with the Library subgroup; (d) Technical Assistance: identify needs, draft terms of reference, identify and select experts or institutions, and evaluate programs; (e) Civil Works: identify needs, liaise with users and provide information to design works, and make arrangements for final acceptance of works; and (f) Program Monitoring and Evaluation: monitor progress in the agreed indicators and evaluate the programs with assistance from the relevant Technical Panels. 4.13 Project Implementation and Coordination Office. The main responsibilities of PICO would be: (a) support to the Steering Committee and PAG; (b) coordination of the tasks of the Working Groups; (c) lia'son with the Bank and other involved agencies; (d) administration of centralized procurement under standardized methods and procedures; (e) administration and coordination of technical assistance services; (f) guidance for the design of civil works (mostly refurbishing of existing laboratories and upgrading of utilities) and overseeing of construction activities; (g) bookkeeping and financial administration of expenditures and loan proceeds; (h) preparation and submission of withdrawal applications to the Bank; (i) arrangement for timely audits of project accounts; and (j) monitoring of progress and preparation of semi-annual reports to DOST and the Bank. In addition, PICO would be responsible for the coordination of the MIS component which would set up, inter alia, project information systems for monitoring project implementation. 4.14 The DOST Assistant Secretary for Administration has been designated as the PICO manager. The manager would be assisted by a full-time deputy and about 25 full-time and 25 part-time staff who would be assigned to the sections in charge of eechnical assistance, equipment/library materials, civil works, and - 33 - accounting and finance (Annex 16). The deputy manager and section chiefs have also been designated. Appointment of other full-time PICO staff would be a condition of loan effectiveness. 4.15 In addition, PICO would obtain professional services to assist with civil works and equipment procurement. Consultant architects and engineers would help PICO execute design work, upgrade utilities and services for laboratories and workshops, prepare contract documents, and supervise civil works. They would also assist PICO in the equipment procurement process, involving (a) assessment of equipment lists and preparation of detailed specifications; (b) procurement planning including packaging of items and phasing; (c) determination of procurement methods, terms and conditions of contracting, and bidding documents; (d) evaluation of bids received; and (e) receipt, testing and installation. Experienced advisers would particularly be needed during the bidding and evaluation process of sophisticated scientific instruments and computers. Procurement 4.16 The loan proceeds would be used to finance procurement of the following expenditure categories: (a) Overseas and In-country Training (US$21.2 million equivalent). Placement of candidates in foreign institutions would be made on the basis of relevance and quality of the programs offered, costs, and prior experience. In-country graduate training would be arranged with leading local universities on the agreed programs. DOST would manage both local and foreign programs according to agreed practice; (b) Equipment (US$47.1 million equivalent, which excludes US$6.6 million for minimum standard equipment to be procured independently by project universities from own funds or SSS loans). Bid packages costing US$200,000 equivalent or more would be awarded on the basis of international competitive bidding (ICB) in accordance with Bank guidelines. Local manufacturers would be given a margin of preference in bid comparison of 15% of the c.i.f. price of competing imports or the actual customs duty, whichever is lower. Specialized equipment estimated to cost up to an aggregate of about US$6.8 million may be procured under contracts awarded through limited international bidding (LIB) procedures on the basis of evaluation and comparison of bids invited from a list of at least three qualified suppliers eligible under the Guidelines. Equipment contracts costing less than US$200,000 equivalent each would be procured through local competitive bidding (LCB) under government procurement procedures acceptable to the Bank and aggregating to a maximum of US$7.0 million. Off-the-shelf items not exceeding US$50,000 equivalent for each package and aggregating to a maximum of US$2.3 million, could be purchased through international and local shopping on the basis of competitive price quotations from at least three suppliers eligible under Bank guidelines. (c) Books. Journals and Instructional Materials (US$13.7 million equivalent). Because of the intellectual property rights or the specialized nature of the items involved, requirements under this component would be procured either on a sole source basis or from a limited number of suppliers. Whenever possible, procurement would be carried out under local or international shopping. Otherwise, they would be purchased directly from publishers or their authorized 34 - distributors. Procurement procedures may include the services of a publishing agent to assist in the selection of books by making available lists of published materials and delivery information, supply of library materials and in cataloging data. Selection of this agent would follow procedures acceptable to the Bank and on the basis of technical proposals reflecting project needs, drawn up by the Government and reviewed by the Bank. In addition, terms and conditions of the service contract would be reviewed by Bank staff; (d) Civil Works (US$10.1 million equivalent). Past experience in the Philippines has shown that contracts for civil works do not attract foreign bidders unless ,they are packaged to form contracts in excess of US$5 million. As this would not be feasible under the proposed project, because of the geographical dispersion of project sites, contracts for civil works (ranging from US$15,000 to US$300,000 equivalent) would be awarded on the basis of LCB procedures acceptable to the Bank. Interested foreign firms would, however, be allowed to bid; and (e) Foreign and Local Consultant Services (US$2.4 million equivalent). Consultant services would be selected and employed in accordance 'ith the "Guidelines for the Use of Consultants by World Bank Borrowers." DOST has prepared drafts of a procurement plan and standard bid documents for goods to be procured under ICB. 4.17 Procurement procedures to be used for the above categories are indicated in Table 4.5. - 35 - Table 4,5: PROCUREMENT ARRANGEMENTS (US$ million) Procurement Method Total Category of Expenditure ICB LCB OtherLa N.A. Costak Overseas training Degree - - 9.1 - 9.1 (9.1) (9.1) Other - - 0.9 - 0.9 (0.9) (0.9) In-country training Degree - - 10.6 - 10.6 (10.6) (10.6) Other - - 2.3 - 2.3 (2.3) (2.3) Substitute teacher salaries - - - 9.0 9.0 Equipment Minimum standards - - 6.6 - 6.6 (0.0) (0.0) Undergraduate 8.3 1.5 0.5 - 10.3 (6.7) (1.3) (0.4) (8.4) Graduate/Research 24.8 4.6 1.5 - 30.9 (20.0) (3.8) (1.3) (25.1) Miscellaneous 4.7 0.9 0.3 - 5.9 (3.9) (0.7) (0.2) (4.8) Books, journals and instructional materials - - 13.7 - 13.7 (11.1) (11.1) Civil works - 8.0 2.1 - 10.1 (7.6) (1.9) - (9.5) Technical assistance - - 2.4 - 2.4 (2.4) (2.4) Management and Supervision /c - - 0.8 0.8 (0.8) (0.8) Incremental O&M d - - - 15.1 15.1 Incremental salaries /d - - - 3.0 3.0 Total 3 150 500 2 N'68 V) (M)"I) t 5 LA Other procurement procedures include: shopping procedures; direct purchases for books and journals; and technical assistance engaged in accordance with Bank guidelines. It also includes minimum standards equipment procured independently by private universities, using own funds or loans from SSS. 1k Totals represent total estimated costs per category including physical and price contingencies. in Project management includes expenditures directly related to the management of the project such as travel, consumable materials and honoraria. 14 The Government and private universities would finance 100% of these expenditures. Not: Figures in parentheses are the respective amounts financed by the Bank. - 36 - 4.18 Bank Review. Preliminary architectural designs, terms of reference, letters of invitation for consulting services (local and foreign consultants), and master equipment lists indicating proposed packaging and cost estimates would be reviewed by the Bank prior to bid advertisement. Prior Bank review would also be required of all associated procurement documents relating to contracts for: (a) civil works exceeding US$200,000 equivalent (covering about 70% of the value and 55% of the estimated number of contracts); and (b) equipment and other goods exceeding US$200,000 equivalent (covering about 75% of the value and S0% of the estimated number of contracts). Other contracts would be subject to selective post-award reviews. Disbursements 4.19 The proposed Bank loan of US$85.0 million would be disbursed over a period of about five years. Disbursements are expected to be completed by June 30, 1997 (the Closing Date) and would be made against the following categories of expenditures covering the selected activities to be financed under the proposed loan: (a) equipment, books, journals, instructional materials--(i) 100% of foreign expenditures for directly imported goods; (ii) 100% of local expenditures (ex-factory) for locally manufactured goods; and (iii) 75% of local expenditures for other goods procured locally; (b) civil works--90% of total expenditures; (c) overseas and in-country training--100% of total expenditures; (d) professional and consulting services of local and foreign experts--100% of total expenditures; and (e) project management support--100% of total expenditures. 4.20 The program and disbursement forecast (Annex 18) is feasible considering DOST's ongoing undertakings in S&T research and training programs and priority and commitment given to the proposed investments. 4.21 Documentation of Expenditures. Withdrawal applications for consulting services and for works and goods with a contract value of US$200,000 equivalent or more would be supported by full documentation. Contracts below US$200,000 equivalent and other disbursements against programs not undertaken by contract such as in-country staff training or project management support would be made on the basis of Statements of Expenditure (SOE), for which supporting documents would be maintained by PICO. PICO would be responsible for aggregating the eligible expenditures under each budget and for preparing withdrawal applications for submission to the Bank. To the extent practicable, withdrawal applications would be aggregated in amounts of US$200,000 equivalent or more, prior to submission to the Bank. Monitoring and Evaluation, Audits. and Bank Supervision 4.22 Monitoring and Evaluation. Various indicators have been prepared to monitor progress in achieving quality and efficiency-related project objectives. Besides overall targets and progress indicators (Annex 5), each project institution has developed its own indicators for monitoring, which are incorporated in the Memoranda of Agreement (para. 3.7). DECS/TPEE has also produced a plan for phasing out currently substandard undergraduate engineering programs. SEI has produced monitoring and ta.get indicators to measure the impact of science and math enrichment courses in the project high schools (para. 3.26). A computer-based project management information system to be created at DOST under the project (para. 3.28) would provide information on, inter alia, scholarship awardees to follow up on their fields of study, location of schools, progress, and location after study completion, as well as equipment items to follow up on their installed location and working conditions. Detailed cost - 37 - estimates and implementation schedule (Annexes 16 and 20) would also serve as an important tool for project monitoring. The Government has assured the Bank that DOST would install a system to monicor scholarship programs by August 31, 1992. 4.23 PICO would hold weekly meetings with the Working Groups to coordinate implementation, review project progress and discuss problems and actions needed. Standard reporting formats making use of the computerized management information system would be developed to facilitate this review process. PAG would convene twice a year (May/June, December/January), review the overall project direction and provide expert advice to project institutions through the Steering Committee. It would also produce a report, which would be incorporated in PICO's semi-annual progress reports to be submitted to the Bank (around June and January). DECS/TPEE would also play a key role to help DOST monitor quality improvement and phasing out of substandard programs. 4.24 In addition to weekly and semi-annual review meetings, DOST with the support of DECS, would organize a project implementation review workshop each year, around March/April when a budget for the next year is prepared by a line agency for DBM submission. The workshop would include participants from outside DOST as well, including representatives from DECS, NEDA, DBM, the Department of Finance, industry and academe. It would review past performance and agree on the next year's plans and budget requirements. The Government would furnish the Bank for comment, prior to DBM submission, the proposed project implementation plan and budget requirements for the following year. Plans for each component would include a detailed breakdown and scope of all proposed inputs, planned procurement and training activities, and arrangements for the provision of technical services. DOST would also hold a mid-term project implementation review in late 1994. 4.25 Accounts and Audits. Separate project accounts would be prepared and maintained by PICO in accordance with sound accounting practices. The format of the accounts would be designed to reflect project breakdown as indicated in the project cost tables (Annex 15). Accounts and documentation supporting SOEs would be maintained separately and would be readily available centrally for review by visiting Bank missions. Accounts and SOEs for each fiscal year would be prepared and audited by independent auditors acceptable to the Bank. Certified copies of the audited accounts and financial statements for each fiscal year, together with a consolidated single auditor's report for the whole project, would be furnished to the Bank as soon as available, but not later than nine months after the end of each fiscal year. Responsibility for this consolidation of audit reports would rest with the Commission on Audit (COA). 4.26 Bank Supervision. The Bank supervision of implementacion of the proposed project would require resources considerably in excess of those normally allocated. The project is complex, involving three levels of education, i.e., graduate, undergraduate and high school programs. It would also cover a number of disciplines ranging from pure and applied sciences, advanced technology such as materials science and biotechnology, to science and math for teacher training and secondary schooling. This wide coverage would require expertise in various fields and, most important, effective coordination of programs. Periodic Bank supervision missions to the field would therefore require the assistance of consultants who are practicing engineers and scientists familiar with the state- of-the art in their fields. In addition, while Bank staff have held workshops on procedures and processes for procurement and loan withdrawal applications, they would need to continue assistance in these areas since the proposed project would - 38 - be the first Bank-assisted project to be implemented by DOST. Consequently, a total of about 15 staff-weeks would be annually required for field supervision of the project during the initial two years of implementation, declining to 12 to 10 staff-weeks thereafter. Status of Project Preparation 4.27 Project preparation is advanced. Assistance provided under the Japan Grant Agreement financed designs for the library and HOT components as well as preparation of lists of major equipment and the related procurement arrangements. The Bank has also provided advice on procurement planning, methods and phasing. With these inputs, equipment lists and cost estimates have been prepared and specifications and bidding documents are under preparation. All project institutions have been selected on the basis of agreed criteria, and adequate space to install new equipment exists with a few exceptions, where necessary upgrading or expansion would be carried out under the project. The management organization and staffing for the project have been agreed and personnel for key positions have designated. Staff development plans for the initial activities have been drafted and candidates for the first batch of fellowships identified. 4.28 The project would be implemented over a period of five years, January 1992 through December 1996, corresponding to five Philippine fiscal years. The loan would close by ne 30, 1997, six months after project completion. V. IMPACT ON THE ENVIRONMENT AND WOMEN IN DEVELOPMENT 5.1 The environmental impact of the proposed project would be long-term, remedial and preventive. By increasing the focus of environmental studies on the urban and industrial environment and scientific collection of quality baseline data, and by improving training and research capacities in fields such as hydraulic engineering and earth sciences, the project would contribute to improved management of environmental problems related to air and water and solid- waste disposal as a result of increasing urbanization and industrialization. 5.2 In comparison to other countries, developed and developing, women are overall well represented in universities in the Philippines. In fact, female enrollments are more dominant than male enrollments in many universities in biology, chemistry, mathematics, chemical engineering and industrial engineering. Women are however underrepresented in fields such as physics, mechanical and electrical engineering because of the nature of work involved and long-rooted tradition. Project support to science and mathematics enrichment courses in high schools should influence students in favor of moving into more diversified fields of engineering and science. VI. BENEFITS AND RISKS A. Benefits 6.1 Quality and efficiency improvements expected at the institutions participating in the project would permit an annual output of about 5,000 and 2,000 better trained engineers and scientists, respectively. Outputs from project institutions would account for about 20% and 40% of the total annual graduates with bachelor's degrees in the priority engineering and science fields, - 39 - respectively, and about 25% and 100% increases in engineering and science graduates with advanced degrees, respectively. These engineers and scientists would possess the appropriate new technology skills and research capability needed for technology transfer and assimilation, and for efficient operations of non-traditional industrial plants. The project would also produce scientists and engineers trained to focus on protective measures for the urban and industrial environment and assure the collection of quality baseline data which are essential for environmental management. 6.2 The project would further expand access to improved high school science and math instruction to better prepare youth for higher education as well as for employment in S&T fields. The number of high schools with special emphasis on science and math would increase from the few currently available in major cities to 110 schools spread over 13 regions. Institutionally, the project would improve DOST's capacity to plan, coordinate and finance manpower development, strengthen the Technical Panels' monitoring and advisory roles, and develop a science and engineering library management system among the participating universities. With all these improvements combined, the project should improve the likelihood of the Government's success in achieving its goals of increasing industrial productivity and competitiveness. B. Risks 6.3 There are sever&' risks. First, the social pressure to further expand underfunded and low quality programs may persist, resulting in a continued excessive mismatch between supply and demand. To minimize this risk the monitoring roles of both TPEE and TPS of DECS would be expanded, and agreement would be reached with the Government on phasing out the substandard programs. Annual implementation review workshops attended by representatives of Government, universities and the Bank would also closely monitor project objectives. Second, recurrent cost funding may be inadequate for O&M of laboratories and periodic upgrading due to the lack of trained staff and funds. The project would therefore provide incentives for laboratory classes and faculty, would create the S&T fund for O&M and upgrading of laboratories, and would include a study on mechanisms for financing long-term recurrent technical and financial needs. Third, a potential brain drain of faculty granted foreign scholarships is another concer-. But faculty would be bound by the current conditions of such awards that include a penalty to repay scholarship costs if they decide not to return to the country and, for those who return, an obligation to work at their institutions for a duration of twice the scholarship period. The effort to link the fields of scholarships to the equipping of specialized laboratories under the project would also minimize a loss of faculty as it would allow returning scholars to continue research and conduct effective teaching. Finally, this is the first time DOST would be managing a World Bank-assisted project. However, the risk this poses to successful project implementation would be minimized by structuring management functions around existing line offices already engaged in similar activities, by developing the MIS for improved program monitoring and by providing technical assistance for project management. - 40 - VII. AGREEMENTS REACHED AND RECOMMENDATION 7.1 The Bank has received assurances from the Government that: (a) by December 31, 1992, project state universities would obtain approval from the respective Boards of Regents to charge the special laboratory development and tuition fees based on one laboratory session as two units (para. 3.7); (b) by December 31, 1992, each project university would create a SELF (para. 3.7); (c) by May 31, 1993, all project universities, state and private, would meet minimum laboratory equipment standards (para. 3.12); (d) by August 31, 1992, DOST would install a system to monitor scholarship programs (para. 4.22); and (e) the Government would comply with project audit and progress reporting requirements (paras. 4.23 and 4.25). 7.2 Understandings have been reached between the Government and the Bank on: (a) terms of reference for studies on laboratory operation and maintenance and on accreditation criteria, incentives and institutional arrangements (paras. 3.5 and 3.7); (b) modifications to the Memorandum of Agreement in consultation with the Bank (para. 3.7); (c) terms of reference and the appointment schedule for expert services to be obtained under the project (para. 3.11): (d) scholarship eligibility criteria, award conditions and selection processes for engineers and scientists in industry, R&D institutions and new engineering and science graduates (paras. 3.13 and 3.18); (e) the final composition and procurement timing of sophisticated research equipment to be determined by DOST with technical inputs of PAG (para. 3.17); (f) appointments of a systems librarian and LAN administrators for each project library according to terms to be agreed with the Bank (para. 3.25); (g) access by the staff of participating universities to the network libraries without undue restrictions and formality (para. 3.25); (h) provision by the DBM and project private universities of needed FY92 and subsequent budgetary allocations for the project (para. 4.6); (i) terms of reference for PAG (para. 4.10); and - 41 - (j) review by the Bank of project implementation and budget plans for the following project year before submission to DBM (para. 4.24). 7.3 Conditions of loan effectiveness would be that DECS would have issued an order allowing project private universities to charge the special laboratory development fee and the special laboratory tuition fee based on one laboratory session as two units (para. 3.7), and that all PAG members and all full-time PICO staff would have been appointed (paras. 4.10 and 4.14). 7.4 Subject to the above agreements and conditions, the proposed project would constitute a suitable basis for a Bank loan of US$85.0 million equivalent to the Republic of the Philippines, repayable in 20 years, including a five-year grace period, at the Bank's standard variable interest rate. - 42 - ANNEX 1 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Priority Sectors, Councils Responsible for Priority Sector Development, and Corresponding Priority Academic Disciplines Supported under the Project Corresponding Corresponding Science High Priority Sectors Responsible Sector Engineering Technology Councls Disciplines Disciplines Agriculture Aquaculture A Marine Fisheries Forestry and Natural Resources Metals and Metal Engineering PCIERD Mch:nical Engineering Physics Indu trin Engineering Textile Industry PCIERD Industrial Engineering Chemistry Mining and Minerals PCIERD Materials Engineering Earth Science* Process Industry (coconut, PCIERD Chemical Engineering Chemistry polymers A sucrochemicals) Food A Feed Industry PCIERD Biology/sio- Technology Microbiology Energy PCIERD (PCASTRD) La Mechanical Engineering Physics Electrical Engineering Transportation PCIERD Construction Industry PCIERD Information Technology PCASTRD (PCIERD) Computer Engineering Computer Communication Science Engineering Physics Mathematics Electronics, Instrumentation PCASTRD (PCIERD) Electrical Engineering Physics & Control Instrument A Control Science Electronics Chemical Communication Instrument- ation Emerging Technologies (lasers, PCASTRD (PCIERD) Materials Engineering Material polymers, electronic Science materials A ceramics Physics environment) Chemistry PharmaceuticaIs PCHRD Pharmacology P Sectoral Council in brackets Indicates that it has secondary role. PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT RAD Personnel by AgercY. Field and Educational Qualification Field and Educational Qualification Engineering Humanities Agricultural & Medical Natural A Total No. Science Techno!egy Science Science Social Science TOTAL of Agency Personnel Masteral Doctoral Masteral Doctoral Masteral Doctoral Mastoral Doctoral Masteral Doctoral Masteral Doctoral ASTI 29 - - 1 - - - 1 - - - 2 0 FNRI 286 - 1 1 - 19 1 6 2 7 - 88 4 FPRDI 889 32 4 1 1 - - 4 1 5 - 42 6 ITDI 594 - - a 2 6 2 18 2 4 1 81 7 MIRDC 280 - - - 1 - - - 1 - - - 2 PAGASA 1462 - - 1 - - - 22 1 7 - 80 1 PCAMRD 47 7 2 - - 1 - 1 2 1 - 10 4 PCASTRD 88 - - 1 1 - - - 1 - - 1 2 PCHRD 68 - - - - 6 - - - 6 - 11 0 PIVS 10 - - - - - - 1 1 - - 1 1 PNRI 807 9 2 10 1 - - 27 9 4 - 50 12 PNSS 82 - - - - 1 - - - 1 - 2 0 PTRI 248 - - - - - - 1 - 1 - 2 0 SEI 78 - - - 1 - - - 1 3 1 a a STII 87 - - 1 - - - - - 4 1 6 1 TAPI 64 - - 1 - - - - - 2 - 8 0 TOTAL 4127 48 9 20 7 38 3 81 21 44 3 226 48 Source: DOST Note: ASTI - Advanced Science and Technology Institute FNRI - Food Nutrition Research Institute FPRDI - Forest Products Research and Development Institute ITDI - Industrial Technology Development Institute MIRDC - Metal Industry Research and Development Center PAGASA - Philippine Atmospheric, Geophysical and Astronomicli Services Administration PCAMRD - Philippine Council for Aquatic and Marine Research and Development PCASTRD - Philippine Council for Advanced Science and Technology Research and Development PCHRD - Philippine Council for Health Research and Development PIVS - Philippine Institute of Volcanology and Seismology PNRI - Philippine Nuclear Research Institute PNSS - Philippine National Science Society PTRI - Philippine Textile Research Institute SEI - Science Education Institute STII - Science and Technology Information Institute TAPI - Technology Application and Promotion Institute M z Z ft PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Skills That Employers Consider Most Important Changes Recommended by Employers Total Number of Respondents (In Order of Importance) Respondents (responses between 0-5) 0 1 2 3 4 5 More hands-on practical/laboratory training 24 0 1 1 1 7 14 More training in technologieslapplied science 22 0 0 0 4 9 9 Better links between university and industry 22 0 0 2 3 7 10 More library facilities/research approach 23 0 0 1 4 9 9 More problem-solving approach to training 23 0 1 0 4 11 7 Better language and writing skills 23 0 0 2 7 7 7 Better conunication/expression clarity skills 24 0 2 3 3 9 - Better development of conceptualizing skills 23 0 1 1 10 7 4 More emphasis on fundamentals of science 21 0 0 1 9 10 1 More policy planning training in S&T education 22 0 1 0 12 9 0 Better computer skills 24 0 1 6 11 3 3 More emphasis on theory and theoretical skills 21 0 0 5 10 5 1 Changfe Recommended by Employees to University Education in Science and Engineering Changes Recomended Total (In Order of Importance) Respondents 0 1 2 3 4 5 More laboratory facility 109 0 0 3 7 24 75 Better links with industry 110 1 0 8 5 26 70 More hands-on training 110 1 0 2 7 37 63 More library facility 110 0 1 3 10 32 64 Better trained teachers 104 0 0 11 7 26 60 More research approach 107 1 0 7 15 28 56 Source: WB Mission (November 1990) Market Survey Data M 'C Wi PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Percentage Shares of Female Undergraduate Enrollments in Selected Colleges of Engineering and Science by Field, 1990191 (Z) Name of College Electronics & Computer of Engineering Civil Mechanical Electrical Chemical Industrial Communication Science UP Diliman 21 2 4 49 46 - 40 De La Salle University - - - 37 29 8 41 Univ. of Santo Tomas 20 - 4 73 59 15 - Xavier University 28 0.5 3 64 -- Name of College of Science Biology Chemistry Mathematics Physics Computer Science University of the Philippines 58 66 66 39 - De La Salle University 58 57 61 23 45 Ateneo de Manila University 46 13 37 25 31 - 46 - ANNEX 5 Table 1 Page 1 of 6 PHILIPPINEV ENGINEERING AND SCIENCE EDUCa" 'N PROJECT Targets and Monitoring Indicators Engineering Education Indicators Objective 1990 1993 1996 Enrollments BS - Total 26,180 30,000 34,000 Z by Field: Chemical Engineering 12.69 12.5 11.85 Computer Engineering 6.44 6.5 6.60 Electronics/Communication Engineering 19.31 18.0 15.75 Electrical Engineering/a 17.46 19.0 21.90 Materials Engineering (Metal, ) Ceramics, Mining) ) 2.47 2.5 2.85 Mechanical Engineering/b 24.78 26.0 27.75 Manufacturing Engineering 0.61 0.5 0.50 Industrial Engineering 16.24 15.0 12.90 MS/PhD - Total 200 150 250 Full Time: - 50 150 Part Time: 200 100 100 Efficiency Drop out rate in 1st and 2nd years: 16-40 - 20 Number of years taken for graduation MS: 4 - 2 PhD: 4-5 - 4 Faculty FTE/Student Ratio: Chemical Engineering 1:22.1 - 1:20 Computer Engineering ) Electronics/Communication ) 1:73.3 - 1:50 Engineering ) Electrical Engineering 1:35.9 - 1:30 Materials Engineering (Metal, ) Ceramics, Mining) ) 1:13.2 - 1:20 Mechanical Engineering 1:52.7 - 1s35 Manufacturing Engineering - - 1:35 Industrial Engineering 1:89.5 - 1:35 /8 Includes specializations of power systems, instrumentation and control, electronics and computer engineering and communications. /b Includes specializations of power/energy, production engineering, machine design. -47 - ANNEX 5 Table 1 Page 2 of 6 Indicators Objective 1990 1993 1996 Size of Faculty/Department: Chemical Engineering 7.89 - 10.50 Computer Engineering 0.68 - 8.00 Electronics/Communication ) Engineering ) 4:15 - - Electrical Engineering 6.68 - 13.00 Materials Engineering (Metal, Ceramics, Mining) 2.58 - 5.00 Mechanical Engineering 6.47 - 14.00 Manufacturing Engineering - - 3.0 Industrial Engineering 2.50 - 6.5 Ouality I of Faculty by Educational Qualifications: Chemical Engineering PhD 9.0 - 10 MS 29.67 - 40 BS 61.33 - 50 Computer Engineering PhD - - 5 MS 3.85 - 25 BS 96.15 - 70 Electronics/Communication Engineering PhD 1.26 - 5 MS 5.70 - 25 BS 93.04 - 70 Electrical Engineering PhD 10.63 - 10 MS 20.87 - 30 Bs 68.50 - 60 Materials Engineering PhD 8.16 - 10 MS 20.41 - 40 BS 71.43 - so Mechanical Engineering PhD 5.67 - 10 MS 17.41 - 30 BS 76.92 - 60 Weekly Hours of Instruction (BS Level): 25-30 - 20-25 - 48- ANNEX 5 Page 3 of 6 Indicators Objective 1990 1993 1996 Industry-Academe Linkages Number of Engineering Colleges with Institutionalized Industry-College Linkage Programs 7 - 19 Budget Number of Engineering Colleges with Adequate Budgetary Provisions for Laboratory Operations and Equipment Maintenance 1 - 19 - 49 - ANNEX 5 Table 2 Page 4 of 6 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Targets and Monitorina Indicators science Education Indicators objective 1990 1993 1996 Enrollments BS - Total 9,740 9,400 12,500 4 by Field: Biology (Inc. Mol. Biol. & Biotech) 45.5 47.3 39.8 Chemistry 12.7 14.9 13.6 Computer Science 16.6 4.2 5.1 Earth Science 0.5 0.5 1.0 Mathematics 18.9 20.6 25.6 Statistics 1.9 2.0 1.8 Physics 3.8 5.1 6.6 Science - 5.3 6.5 MS/PhD - Total 1,350 996 2,924 % by Field: Biology 25.6 34.8 28.4 BioChemistry 0.5 Agric. Chemistry 1.4 24.0 24.0 Chemistry 17.9 Computer Science 21.6 3.2 3.0 Earth Science 4.5 6.1 14.9 Mathematics 18.0 19.2 15.7 Pharmacology - 0.1 0.3 Physiology - * * Statistics 0.5 7.7 2.3 Physics 0.5 4.8 11.4 % PhD of MS/PhD - Total 14.1% 19.4% 17.3% Efficiency Drop out rate in let and 2nd years: (Highest in Mathematics and Biology) Number of years taken for graduation MS: - - - PhD: - - - -50- ANNEX 5 Table 2 Page 5 of 6 Indicators Objective 1990 1993 1996 Faculty/Student Ratio: Biology 1:24 1:24 1:24 Chemistry 1:7 1:8 1:10 Computer Science 1:36 1:45 1:55 Earth Science 1:3 1:4 1:5 Mathematics 1:11 1:13 1:15 Statistics 1:12 1:14 1:16 Physics 1:4 1:6 1:8 Size of Faculty/Program: Biology 22.3 23.8 28.3 Chemistry 20.9 26.5 33.5 Computer Science 3.8 6.0 6.5 Earth Science 28.0 41.0 41.0 Mathematics 15.0 22.8 28.1 Statistics 8.0 11.5 9.5 Physics 12.1 19.1 22.6 Onality % of Faculty by Educational Qualifications: Biology BS 12.4 23.8 13.3 MS/PhD 87.6 76.2 86.7 Chemistry BS 47.9 53.5 42.0 MS/PhD 52.1 46.5 58.0 Computer Science BS 40.0 33.3 7.7 MS/PhD 60.0 66.7 92.3 Earth Science BS - 32.0 65.0 MS/PhD 100.0 68.0 35.0 Mathematics BS 38.8 41.1 35.2 MS/PhD 61.2 58.9 64.8 Statistics BS 25.0 26.0 37.0 KS/PhD 75.0 74.0 63.0 Physics BS 50.6 62.1 48.1 MS/PhD 49.4 37.9 51.9 Weekly Hours of Instruction (BS Level): 12-40 10-24 18.0 -51 - ANNEX 5 Table 3 Page 6 of 6 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Targets and Monitoring Indicators Teacher Training Indicators Objective 1990 1993 1996 Enrollments MS/MAT/PhD - Total 2 of MS/MAT/PhD Students 4.32 6.1? 7.7Z BS - Total 13,463 8,133 9,588 Z by Field: BS Elementary Ed 53.6Z 40.3? 24.62 BS Special Ed 1.9Z BS Secondary Ed 44.5% 59.7? 75.4? Efficiency Drop out rate in 1st & 2nd years: 1.7 2.1 2.1 Number of years taken for graduation MS: 2 2 2 PhD: - - - Faculty FTE/Student Ratio: 1:34 1:32 1:33 Size of Faculty/Department: 32 36 39 Quality Z of Faculty by Educational Qualification: PhD/EdD 10? 11 15 MS/MA/MAT 46? 55 65 BS 44? 34 20 Weekly hours of instruction (BS Level): 21 19 18 - 52 - ANNEX 6 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Age of Main Laboratory Equipment (Undergraduate) Age Age University of the Philippines Years De La Salle University Years Electrical Engineering Dept. Electronics & Comm. Eng. Dept. Electronics Lab - Electrical Circuit Labs 8 Communication Lab - Electrical Machinery Lab 20 Power Lab 25 Communication Lab 10-15 Micro-Electronics Lab - Digital Lab 10-15 Crystal Growth Lab 6 Radio Room 4-15 Micro-Electronics Lab 2-3 Chemical Engineering Dept. Chemical Engineering Dept. Fluid Flow Lab 35 Unit Operations Lab 17-25 Mass Transfer Lab 35 Process Control Lab 17 Heat Transfer Lab 35 Analytical Lab 30 Environmental Engineering Mechanical Engineering Dept. Lab 15 Refrigeration & Air Conditioning 17 Mechanical Engineering Dept. Fuels & Lubrication Lab 17 Heat & Power Lab 40 Heat Transfer Lab 14-17 Instrumentation 10 Internal Combustion Eng Lab 17 Steam Power 17 Hydraulic Machinery 17 Mining Engineering Dept. Manufacturing Management Dept. Pilot Plants 35 Machine Shop 17 Extractive Metallurgy Lab 20 Measurement Lab (New) 4 Batch Test Lab 20-35 Forging, Foundry 25 Scanning Electron Miscroscopy 9 Metallographic Lab 35 Industrial Engineering Dept. Processing Lab 35 Civil Engineering Dept. Civil Engineering Dept. Materials Testing Lab - Materials Testing Lab 17 Soil & Rock Mechanics Lab (New) 2 Geodetic Engineering Photographic Lab 20-22 Photogrammetric Lab 24 National Hydraulics Research Center 5-25 Computer Lab 20 IBM PCs 3-4 20 IBM XT PCs - - 53 - ANNEX 7 Page 1 of 3 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Budgeting in SUCs and Private Universities State Universities and Colleges (SUCs) 1. Like other agencies of government, the budget preparation process for SUCs is signalled by the "Budget Call" issued by the DBM. This document is released some time in February and establishes the target expenditure ceilings and the calendar of activities leading to the preparation of the budget for the next calendar year. Budget preparation takes place beginning about February to August, at which time the President submits the proposed Budget to Congress. 2. The budget offices of SUCs prepare their own internal budget call, asking for budget estimates from the component units of the institution (colleges, institutes, schools, and administrative and income producing units). The ceilings given by DBM to the SUC and the indicative percentage increase over the previous year's budget is normally communicated to Deans and other unit heads. 3. The SUC budget proposal is finalized by the SUC head with the assistance of the SUC budget office and normally of an SUC budget committee. They are then forwarded to the DBM through the Regional Development Council (in the case of SUCs outside of Metro Manila) or directly to DBM (in the case of SUCs located in Metro Manila). Budget proposals do not pass DECS. 4. The succeeding stages of budget preparation involve analyses conducted by DBM technical staff, Executive Review Board hearings to which agency heads (including the heads of the larger SUCs) are invited to make presentations, and Cabinet discussion of DBM recommendations. The President's Budget is finalized on the basis of Cabinet decisions. 5. With the enactment of the annual general appropriations act, the DBM proceeds to implement the approved expenditure program and notifies agencies of their respective expenditure ceilings for the coming year. This constitutes the signal for SUCs to prepare their respective internal operating budget within the approved expenditure ceiling, which is invariably lower than the proposal they originally submitted for the fiscal year. The internal budget incorporates personnel items (posts) approved by DBM. Universities are given the leeway to field approved posts to colleges/schools/units and to allocate non-personnel recurrent costs among their component units. 6. The General Appropriations Act (1990) includes new appropriations for SUCs identified by function (typically: general administration and support services, administration of personnel benefits, salary standardization, advanced education services, higher education services, research services, extension services, and auxiliary services). For each function, expenditure objects are specified (personal services, maintenance and other operating expenses, and capital outlays). Appropriations for locally funded and foreign assisted projects are similarly specified by expenditure object for each project. -54 - ANNEX 7 Page 2 of 3 7. The income of the ordinary SUC enters the national treasury and help support national appropriations for the SUC. The unique exception is made for U.P. which can retain the income. 8. Under a special law, the UP is allowed to retain and to budget for maintenance and operating expenses, all income earned from student fees and other sources. In addition, its approved national appropriations are released with minimum restrictions, thus allowing its board of Regents the authority to budget whatever funds are available for the institution. 9. The income retention formula at UP is also applied internally, such that each college/department is allowed to retain much or all of the fees that it collects, including laboratory fees. This constitutes a built-in incentive for the authorities concerned to raise fees as a means of augmenting normal budget allocations. Private Universities 10. Private schools are organized under the Corporation Code in the form of stock or non-stock corporations: (a) Schools organized as stock corporations are proprietary institutions with stockholders and Boards of Directors and which are otherwise governed by corporate law provisions that also apply to business enterprises. Most non-sectarian institutions are of this type; and (b) Schools organized as non-stock corporations include those that are part of religious corporations and those that are organized as foundations, with members rather than stockholders and with Boards of Trustees. 11. Budget practice varies from institution to institution, depending upon tne policies and practices instituted by their respective Boards. The larger and better run institutions would prepare annual budgets of income and expenditures, which are duly considered and approved by their Boards at the start of the school year. Budget discussions are frequently timed for consistency with application deadlines for student fee increases. 12. Generally, private schools would have a budget office or a budget officer responsible for the budget process. At the University of San Carlos in Cebu City, which appears to be typical, the process is as follows: (a) Budget guidelines are prepared by the University Budget Committee consisting of the President, the Vice Presidents for Finance, Academic Affairs and Administration, and the Chief Accountant; (b) The various colleges/institutes/schools/units ("cost centers") heads prepare their respective budget proposals much as their counterparts at SUCs; (c) The budget proposals are consolidated by the university budget office and presented, with recommendations, for discussion by the Budget Committee; and (d) The final budget proposal, incorporating the president's decisions, are presented to the Board of Trustees for final action. - 55 - ANNEX 7 Page 3 of 3 13. The University of San Carlos, like other well managed private schools, has a highly developed system of budget control and budget performance review. Expenditures are controlled by cost center and expenditure object on the basis of bu-Aigeted funds and monthly performance reports are prepared and reviewed individually by members of the Budget Committee. 14. Budgets are highly sensitive to student fee increases, potential or recent mandatory wage increases (such as increased cost of living allowances and minimum wages directed by law), and across the board increases in the public sector which may need to be matched by private schools: (a) Student fees are not always easy to obtain. Under R.A. No. 6728 ("Government Assistance to Students and Teachers in Private Education,* June 10, 1989), consultations with "student governments or councils, alumni and faculty associations" for college level student fee increases and that in case of disagreement, the alumni association of the school or any other impartial body of their choosing shall act as arbiter. Consultation has been interpreted by militant student groups to mean consent, resulting in prolonged negotiations and on occasion, in student strikes and other class disruptions; and (b) One recurring budget problem is increased wages mandated in the course of a school year which was not anticipated in the original student fee application and school budget. Schools generally respond to this by cutting down elsewhere to make up for the gap. 15. P.D. No. 451 (May 11, 1974) requires, among other things, that 60 percent of any increase in tuition fees must be used for "increase in salaries or wages of the members of the faculty and all other employees of the school concerned" and the remaining 40 percent of any increase, for institutional development, student assistance and extension services, and return to investment." Not more than 12 percent of authorized tuition fee increases may go for return on investment. Interpretation is not yet fully settled and in some schools where labor-management relations are not the best (such as the University of the East), teachers and staff took the position that the incremental fee income may be used only for basic salary increases and not for increased allowances and fringe benefits. These have resulted in a number of obvious illogical and untenable situations, including Court awards for large sums in backpay. In most cases, however, teachers and staff do not insist on applying the law literally and the school's ability to pay is the basis for negotiations. -56 - ANNEX 8 Page 1 of 4 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT A. Criteria for Selection of Engineering Degree Institutions 1. The selection process was carried out at two levels, each with its own set of criteria.J1 The focus of engineering manpower development was on the identified leading edges in industrial technology development, assimilation and diffusion. The first set of criteria was applied to assess the quality of the instructional programs at the engineering degree schools in the regions. The second set of criteria was to ensure satisfactory regional dispersion and necessitate a degree of commitment of each school to fulfil specific actions. First Level of Selection 2. Using TPEE Data, the EMDP Committee ranked/2 the schools based on the following criteria of selection: (a) Instructional Program Quality - Faculty (TPEE expects X of faculty with MS qualifications); - Laboratories/Facilities; - Library. (b) Instructional Program Quality - Faculty (TPEE expects 2 of faculty with MS qualifications); /1 Other factors given consideration in the earlier stages of the selection process were (i) Professional Board of Examination Performance of the Schools and (ii) quality of enrollments as assessed by (a) admission policy and entrance examinations and (b) the average NCEE cut-off scores at admission. /2 Rating Scale: A (5 points) - Significantly above TPEE Minimum Requirements B (4 points) - Slightly above TPEE Minimum Requirements C (3 points) - Satisfies TPEE Minimum Requirements D (2 points) - Slightly below TPEE Minimum Requirements E (1 point) - Significantly below TPEE Minimum Requirements Y (5 points) - With R.D. capabilities or has Relevant Graduate Program N (0 point) - No R.D. capabilities or no Relevant Graduate Program Ranking Weights: 1. Faculty 352 2. Laboratory 352 3. Library 20Z 4. R.D. Capability 52 5. Graduate Program 52 1002 - 57 - ANNEX 8 Page 2 of 4 - Laboratories/Facilities; - Library. (c) Research and Development Capabilities (d) Graduate Programs 3. At the first level of selection, the schools were selected based on their regional performance. For all regions, except NCR, the schools ranked as : first and second were included in the list. Since the national ranking of NCR schools is relatively higher than other regional schools, all schools in NCR ranked as first, second, third, fourth and fifth were included. Second Level of Selection 4. Regional Dibpersion. Schools in the predominantly agriculturally oriented regions (II, III, V & IX) were not considered. Furthermore, the number of schools allocated per region were based on the enrollment profile per region. 5. Validation of Selection and Confirmation of Schools Commitment to EMDP. Visiting teams from EMDP validated the selection through actual inspection visits to the schools. The teams also ought the schools commitment to send their faculty members for faculty development and to facility upgrading. B. Criteria for Eligible Engineering Program Proposals 6. The institution, presenting the proposal must be a member of the STCC-EMDP/TPEE approved network and the engineering department to be strengthened should have at least five faculty and an annual admission of 30 students. 7. The institution is committed to quality improvement of its undergraduate engineering degree programs. Creation of new departments should be associated with STCC's identified "leading edge" technologies. 8. Institution has a 5 year development plan that contains the following sub plans and targets for monitoring: Enrollment Plan: Actual for 1985-89 and projected for 1990-95 (a) enrollments/3 by year, level and field of study; (b) graduates by year, level and field of study; (c) internal efficiency or graduation rates by year and field of study. Staff Development Plan: Actual for 1985-89 and projected for 1990-95 (a) Teaching Staff by field, level and qualifications Recruitment Plan: No. of teachers hired by year, level and field (a) sources of recruitment (b) recruitment incentives /3 Define term enrollment - e.g. for one semester or the total of two semesters in a year. -58 - ANNEX 8 Page 3 of 4 Training Plan: (a) Number of staff trained by year and field, duration of training; (b) Proposed academic training (MS, Ph.D., Diploma Courses); (c) Proposed industry experience for teaching staff incentives on satisfactory completion of training. Curriculum Plan: (a) Present and Proposed Allocation of Teaching Time by field in - Lectures - Sciences, Engineering; - Laboratory Work; - Field Work, Industrial Practice. (b) Proposed New Teaching Programs - New Fields; - Consolidation of departments; - In-service courses for practitioners. (c) University-Industry Linkage - Number of students, Departments and Industrial Firms Participating; - Type of Memorandum of Agreement; - Number of new elective courses taught by industry representatives. (d) Proposed New Teaching/Learning Methods Physical Development Plan: (a) Inventory of existing building, laboratories - numbers and area, and numbers of equipment items per laboratory,number of work stations; (b) Deficit in equipment and space as compared with minimum TPEE requirements; (c) Targets for augmenting facilities and equipment by fields and student enrollments. Relationship of fields to national and region specific technology development goals; (d) Proposed academic space/laboratory utilization rates per week and per semester. Financial Plan Management Plan C. Criteria for Selection of Science Degree Institutions 9. The selection process was carried out at two levels, each with its own set of criteria. The first level concerned with selection of institutions to conduct graduate programs (MS and Ph.D.) PCASTRD had already developed criteria for its network of scientific R & D institutions. The second level concerned with selection of institutions that offered B.S. degrees. First Level of Selection (MS and PhD Programs) 10. Using PCASTRD data, the schools/colleges were selected on the basis of the following criteria: - 59 - ANNEX 8 Page 4 of 4 Strength of faculty (a) number of faculty with MS and PhD degrees in basic sciences and advanced technology areas; (b) student faculty ratio; and (c) ratio of full-time to part-time faculty members. Existence of graduate programs (a) MS and PhD programs in basic sciences and advanceA technology areas; and (b) ability to graduate students regularly of the (survivals first year students is one noted criteria). Laboratory equipment and library facilities R & Dv thrusts Location. Evidence of present and future industrial activity in the area Second Level of Selection (B.S. Programs) 11. As most of the institutions in the PCASTRD networks are in the Metro Manila area, the selection of non-network tertiary level schools for support of B.S. programs (B.S. in Sciences/Mathematics and B.S. in Education - basic sciences, general science) was based on DECS DATA using the following criteria: (a) Satisfactory instructional quality of existing degree programs; (b) The schools either provided service courses to engineering colleges in the PCIERD network or were identified as Regional Science Teacher Centers with capability to handle training programs for teachers in science education; (c) Adequate regional dispersion; and (d) Commitment of the head of the institution to improve its science education program. D. Criteria for Selection of Secondary Schools with Programs in Science and Mathematics 12. The selection process was carried out in conjunction with DECS, its regional offices and SEI. 13. The criteria used for selection of the High Schools were: (a) relative capability and potential for faculty development; (b) service area/sphere of influence within each region; (c) certified DECS Regional Leader School; (d) relatively good performance in various national examinations; (e) population of the schools; (f) special programs in science and mathematics education; (g) management commitment to improve science education; and (h) accessibility to a tertiary level node institution as feeder schools. -60 - ANNEX 9 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Project Institutions by Region Institution Region Engineering Science I Ilocos 1.Saint Louis University IV Southern Tagalog 2.Pablo Borbon Memorial Institute of Technology VI Western Visayas 3.Central Philippine University - 4.University of Negros Occidental- Recoletos VII Central Visayas 5.Silliman University 1.Silliman University 6.University of San Carlos 2.University of San Carlos X Northern Mindanao 7.Xavier University 3.Xavier University XI Southern Mindanao 8.Ateneo de Davao University 9.University of Mindanao XII Central Mindanao 1O.Mindanao State University- 4.Mindanao State Iligan Institute Technology University-Iligan Institute Technology NCR National Capital Region ll.Adamson University 5.University of the 12.Don Bosco Technical College Philippines, 13.De La Selle University Diliman 14.Mapua Institute of Technology 6.University of the 15.Rizal Technological College Philippines, Los 16.University of the Philippines, Banos Diliman 7.University of the 17.University of the East Philippines, 18.University of Santo Tomas Manila 19.Technological University of 8.De La Salle the Philippines University 9.Ateneo de Manila University 10.University of Santo Tomas - 61 - ANNEX 10 Page 1 of 3 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Technical Assistance Programs by Component and Year (Staff-months) Local Consultants Foreign Consultants Components 1992 1993 1994 1995 1996 Total 1992 1993 1994 1995 1996 Total A. Engineerina Education Visiting professors 24 12 36 6. Science Education Visiting professors Natural Sciences 2 2 2 2 2 10 Enviromental Sciences 3 6 3 12 Subtotal B 8 5 C. Management of Technology Visiting professors 3 6 6 3 18 D. Library Networks Expert Services 4 4 3 2 1 14 3 2 2 1 8 E. S&T Manpower Planning Equip. Serv. & Repair Study 2 10 2 14 Accreditation Study 2 12 10 24 2 2 2 6 Management Information System 3 3 3 3 12 Advisory Group Services 3 3 3 3 3 15 2 2 2 2 2 10 Procurement Services 12 12 12 12 12 60 6 6 6 6 6 30 Subtotal E 22 40 30 8 15 125 10 10 10 8 l TotaL 26 44 33 20 16 139 35 14 10 130 In-country Training Overseas Training Number Staff-months Number Staff-months of -------------------------------------------Of Caompnents Candidates 1992 1993 19914 1995 1996 Total Candidates 192 1993 1994 1995 1996 Total ............................. .. ------------------------------------------- ---- ------------------------------------- A. EmIneering Education Ph Program Batch 1 20 140 240 240 240 100 960 20 60 240 240 240 180 960 Batch 2 11 77 132 132 132 473 Batch 3 72 504 864 864 2,232 Subtotal 103 140 317 8761.236 1.0 36 20 60 240 240 240 180 960 MS Program Batch 1 152 1,064 1,824 1 824 1,824 760 7,296 Batch 2 183 1,281 2,196 2,196 2,196 7,869 rt Batch 3 212 1,484 2 544 2,544 6,572 Batch 4 215 1,505 2,580 4,085 Subtotal 762 1,064 3,105 5,504 8,069 8,080 25,822 Non-degree Programs 1,080 240 480 720 840 5,400 7,680 Sandwich Programs 47 132 432 564 Total A 32 7. 14576 37.16 67 60 240 240 372 612 1.22 B . Science Education rt Natural Sciences PhD Programs f Batch 1 42 294 504 504 504 210 2,016 7 21 84 84 84 63 336 M Batch 2 41 287 492 492 492 1,763 11 33 132 132 132 429 Subtotal 83 294 791 996 996 702 3779 18 21 117 216 216 195 765 '_3 MS Programs Batch 1 191 1,337 2,292 2,292 2 292 955 9,168 Batch 2 149 1,043 1,788 1,788 1,788 6,407 Batch 3 125 875 1,500 1,500 3 875 Batch 4 110 770 1,320 2,090 Subtotal 575 1.337 L335 4. 6350 5563 20 0 Non-degree Programs 1-year Research Fellowships 8 24 24 24 24 96 2-month Research Fellowships 8 4 4 4 4 16 3-month Special Training 350 210 210 210 210 210 1,050 3-month Training for Lab. Techn. 50 39 39 36 36 150 20 15 15 15 15 60 0 Subtotal 416 238 277 277 274 246 1312 20 15 15 15 15 60 M Sandwich Programs for Phos 60 360 360 720 Enviromental Sciences PhD Program Batch 1 9 63 108 108 108 45 432 3 9 36 36 36 27 144 Batch 2 7 49 84 84 84 301 2 6 24 24 24 78 Subtotal 16 63 157 192 192 129 733 5 9 42 60 60 L g22 NS Program Batch 1 35 245 420 420 420 175 1 680 5 15 60 60 60 45 240 o Batch 2 37 259 444 444 444 1,591 5 15 60 60 60 195 Batch 3 38 266 456 456 1,178 Batch 4 38 266 456 722 Subt.coa.t 148 §79 1 10 1 58 1J52 .11 - 65 - In-coutry Training Overseas Tralning Utmber Staff-.onths NwÉber Staff-months of ----------------------------------------- of ----------------------------------- C~ufnts Cenffites 1992 1993 19% 1995 1996 Ttoal Candidates 1992 1993 1994 1995 1996 Total 3-nonth Spclal Trainirg 2 3 3 6 2 3 3 6 Totat 8 1.M 2.177 5.242 7.553 9-398 8.171 32.541 105 30 17 §4 651 261 jM C. of Technot match 1 3 9 36 36 36 27 144 NS Program Btc 1 3 21 36 15 72 match 2 3 21 36 15 72 Sktotal 6 21 57 51 15 144 Total C 9 30 93 87 51 27 288 0.LjrpNeu R5 224 match 2 2 6 24 1 8 48 1 7 12 5 24 match 2 2 6 24 18 48 1 7 12 5 24 match3 1 3 12 9 24 1 7 12 5 24 S&ktotal 30 45 3 9 120 3 7 19 24 17 5 on-degr. Progrm Attach nts/Exchage Progr~ 80 360 360 240 960 20 72 72 60 24 12 240 0 w Total D E 36 394 ? i 9.8 23 7 9 E.ScotceneANt 56OMryScoletrk Certificate/DIplm Program match1 292 3,504 1,752 5,256 match 2 292 3,506 1 752 5,256 match 3 253 3,036 1 518 4,554 S~ttal 37 35.% 1.26 4. 1518 150 Tertiary 1odul Institutios MT Progr match 1 150 600 600 600 1,800 Total E 907 4.10 5.856 L j j8 16516 F. Sj 9 r PtM_jne Special Trainig for TPEE/TPS 4 12 12 Grard Tcytetl LP7 8,0 p 3.0203 21 109 225 87.654 208 L11 ffl1 6 1.1l15 21 WI -64 - ANNEX 11 Page 1 of 7 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Procedures, Criteria and Conditionalities Used in DOST-Supported Manpower Development Programs A. Procedures 1. MS and PhD Scholarships. Guided by the 15 "priority fields" established by the Presidential Task Force, DOST uses its Sectoral Councils (PCIERD and PCASTRD in the case of the proposed World Bank-supported Manpower Development Project) to implement the S&T manpower projects in engineering and natural sciences. Both PCIERD and PCASTRD set the specific areas in which they will award scholarships. These specific areas are selected within the context of the 15 "priority fields" as they relate to the specific mandate of the Council implementing the program. Hence, PCIERD and PCASTRD support scholarships in the following areas of concentration: PCIERD areas of concentration: (a) Compute,:/electronics and Communication Engineering; (b) Chemizal Engineering; (c) Mechanical Engineering; (d) Materials Engineering; (e) Electrical Engineering/Instrumentation and Controls. PCASTRD areas of concentration: (a) Advanced Science: - Biology/Micro-Biology - Chemistry - Mathematics - Earth Sciences - Physics - Engineering Sciences - Computer Science (b) Advanced technology - Microelectronics and Instrumentation Controls - Information Technology - Materials Science/Engineering and New Energy Sources - Laser Technology 2. Once the fields have been selected, the Councils in cooperation with the DOST, set the number of scholarships that will be available for work in the fields of concentration. After the numbers of scholarships have been set, the Council disseminates information on the availability of the scholarship grants, and sets in process the review process. PCASTRD asks for applications once a year in December. PCIERD screens twice a year. 3. Both PCIERD and PCASTRD follow similar scholarship review processes. This is because DOST has set overall review and screening procedures for all the Councils to follow. The first step in the procedure is an initial screer.ing process by the respective council human resource development iection to check that the administrative aspects of the application is correct and the candidate fits the administrative criteria required for the program. Then, the application is passed to an scholarship committee to review the applicant's academic merit - 65 - ANNEX 11 Page 2 of 7 and the appropriateness of the proposed study field and degree. If at this point the applicant has passed both the administrative and academic screening, he and the head of his institution is informed and the applicant is asked to seek admission to the institution which will provide his training. After this process, the names are submitted to the respective Council's Governing Council for final approval. 4. Once the Governing Council has approved the scholarship awards, the Council's human manpower development division prepares a budget, and sends the Memorandum of Agreement to the award recipient for signature. Once the signed Memorandum of Agreement has been returned to the Council, a check for the support of the scholarship recipient is sent to the institution where he will take his training. 5. The Council monitors the progress of the scholarship recipient by soliciting a copy of his registration, a preliminary plan of academic subjects/load as approved by the adviser, copies of the academic grades he receives at the end of each semester, thesis/dissertation outline, results of comprehensive examination, a thesis progress report, a final report including the diploma, final transcript, and copies of the thesis/dissertation manuscript. 6. Non-Degree and Training Courses. Non-degree and training courses are offered in-house (in the DOST for instance) or in local institutions. Foreign training grants are offered depending on their availability. Non-degree and training courses are primarily meant to upgrade technical or administrative skills. Again, procedures are similar across Councils and follow similar methods to those of selecting PhD and MS scholarship candidates. Applications are screened by an appropriate Council Manpower Development Committee (PCASTRD) or Scholarship Committee (PCIERD). Final lists of grantee are submitted to the appropriate Governing Council for approval. The Councils pay fees and other incidental expenses in connection with the participation of the grantee under this program. 7. Thesis and Dissertation Grants. This award is primarily awarded to assist in the support of research related to thesis and dissertation writing. It is offered in the form of a cash grant to applicants who work on their theses or dissertations in local (Filipino) graduate programs. Topics which can be supported are limited to the areas of concentration of both PCIERD and PCASTRD. Applicants must be endorsed by both their thesis panel or advisor and the head of the institution where they are studying. The grantees will receive a cash grant of not more than P30,000 for the master's degree and not more that P60,000 for the doctors degree. When the candidate completes the thesis, the grantee submits a report of expenditures. 8. Research Support. Research projects are supported by DOST within the overall framework of the 15 "priority fields" set out by the Presidential Task Force. The DOST Central Office as well as the Councils support research grants-- in-aid. Both PCIERD, and PCASTRD use a similar process of administrative review by the Council's application receiving unit, technical evaluation by the Council's Technical Review Panels (and when necessary because of a lack of expertise on the Review Panels, outside experts), initial approval by the Council's Technical Advisory Committee which recommends approval or rejection of the proposal. This recommendation of the Technical Advisory Panel is passed through the Council's Executive Director to the Governing Council for - 66 - ANNEX 11 Page 3 of 7 confirmation of the approval. After this last procedure, the Memorandum of Agreement between the Council and the unit conducting the research is prepared and signed, the funds are released to the unit and then the Council begins monitoring the progress of the research project. 9. The DOST Central Office follows essentially the same path as PCIERD and PCASTRD but asks appropriate Council's Technical Panel Review Committees to carry out the necessary technical evaluation process. Instead of the Governing Council making the final decisions on Central Office supported projects, the DOST Executive Committee (made up of the DOST Secretary, Deputy Secretaries, Assistant Secretaries, and Council Executive Directors) plays the primary role of reviewing and recommending approval or rejection of the proposal. The Councils then take over the administration, monitoring and review of implementation of the progress of the projects and prepares the final project evaluation. B. Criteria 10. There are three sets of criteria for awarding funds for PhD and MS degrees as well as other academic programs: (a) criteria used to decide on the specific fields to be strengthened; (b) criteria used to decide which institutions are to be strengthened by the scholarship programs; and (c) criteria used to allocate specific scholarship awards. The following is a brief description of each. 11. Specific Fields to be Strengthened. The Presidential Task Force Report on Science and Technology Development in March 1989 recommended that a Science and Technology Coordinating Council (STCC) undertake a program to strengthen the development of S&T manpower to meet the demands of the Philippine manufacturing and service sectors. In an effort to identify specific manpower development requirements to achieve these goals, the Task Force created Technical Panels which established specific manpower development fields within 15 "priority fields" or sectors where development was to be focused. 12. The criteria used in the selection of the specific areas within the 15 "priority fields" are: (a) Economic sectors that indicate maximum potential for contributions to GNP within the next fifteen years. (b) Sectors that provide the highest value-added possible in the conversion of raw materials to finished products. (c) Sectors that can compete successfully in the export market and build up necessary foreign exchange. (d) Sectors that are up to the level of technology where local scientists and technologists can innovate on processes and products that will increase the marketability of Philippine manufactures, particularly the export market, and enable the country to become self-reliant in the production of consumer and capital goods. (e) Sectors that improve the S&T Manpower Development Systems to produce the mix of skills and technical capabilities for self- sustained modernization and growth of the science and technology sector. (f) Sectore that have high employment generation potential. - 67 - 13. Specific Institations to be Strengthened. DOST has been responsibility for carrying out the specific manpower development pro rbcommended by the Task Force' Technical Panels and uses its Sectoral Councils implement these programs. The Councils, which are made up oi representatives of government agencies, public and private universitie colleges, as well as the private industrial sector, have established n institutions at which the manpower development programs will be carried Both PCASTRD and PCIERD have established these networks. 14. The criteria used by PCIERD to develop its network are as fo. (a) Demonstrated degree of academic leadership in the engi field. (b) Demonstrated excellence in the engineering fields to be strengthened. (c) Regional dispersion. (d) degree of industrial linkages. In addition, PCIERD relayed on the findings of the Technical Panel for Engineering Education (TPEE) of DECS/BHE and the Philippine Association of Schools, Colleges and Universities (PAASCU). 15. The criteria used by PCASTRD in developing its network are: (a) those Philippine universities and colleges which offer the degree in natural sciences. (b) those MS producit.g Philip?ine institutions which are judged be efficient (survival of the first year students is. one note criteria). (c) DOST Research Institutes which take part in natural science research (to be funded by the government and bilateral aid agencies) 16. PhD and MS Scholarships. The PCIERD criteria awarding scholarships scientific and technological manpower development programs are: (a) applicants must be from a PCIERD selected institution. (b) advanced training must be in one of the areas of concentration. (c) S&T expertise developed should be in areas of specialization with high domestic market potential (4) availability of qualified trainers and appropriate training facilities most be assured. (e) the program timeframe should be within manageable limits. (f) the program should be self-sustaining after a reasonable buildup period. The PCASTRD criteria for approval of PhD and MS awards are: (a) applicants must be from a PCASTRD selected institution and be accepted in a degree program in a network institution. (b) applicants must be a BS degree holder in any natural sciences or engineering courses relevant to the intended field of study. (c) applicants must not be more than 40 years of age at the time of the award or start of the scholarship. (d) the candidate's study plan is reviewed for the new courses and/or research he will undertake. Additionally, the advanced training must be in one of the fields of concentration. -68 - ANNEX 11 Page 5 of 7 (e) the sending institution's Dean or Chancellor must endorse the applicants's study program. 18. Non-degree and Training Courses. The criteria for non-degree and training course grants are similar to those used in the awarding of PhD and MS scholarships. Applicants must be BS degree holders, be accepted to train only at schools or institutions identified by the appropriate Council Scholarship Committee, submit an essay on the applicant's career and work plans, and receive the endorsement of his unit supervisot. 19. Thesis/dissertation Grants. Thesis/dissertation grants are used to support research which is done in association with completing an advanced degree in the advanced or engineering sciences. Therefore, it is available only to those who are participating in an MS or PhD degree program at an institution approved by the Council's Scholarship Committee. The applicant's proposal must be erdorsed by his thesis advisor and the head of the institution providing the training. 20. Research Support. The criteria used by PCIERD in awarding research grants are as follows: (a) The S&T project should result in a marketable product(s) and/or service(s). (b) preferred S&T project shall result in product(s) or service(s) with potential impact on socio-economic development through: - employment generation - foreign exchange savings (import substitution) - foreign exchange earnings (c) high probability of success (low risk factor) on the S&T project in generating the desired products or services which shall depend on: - availability of competent S&T manpower - availability of appropriate test and research facilities - funding requirements being within reasonable limits - manageable timeframe for completion of study (d) Contribution of the S&T project to technological advancement of the nation in terms of upgrading S&T manpower and knowledge. 21. The criteria used by PCASTRD in awarding research grants are as follows: (a) Projects must be in the PCASTRD Areas of Concern (see 3.9 (d) above). (b) Projects should help to develop a self-reliant mastery of strategic areas of advanced science and technology. (c) Projects should help develop a self-generating critical mass of R&D manpower in selected areas of advanced science and technology. (d) Projects should help develop a national system of high standard institutions in the advanced science and technology sector. 22. The criteria used by DOST Central Office in awarding research grants are as follows: (a) socio-economic impact (b) R&D capability of applicant (c) level of technology of applicant - 69 - ANNEX 11 Page 6 of 7 (d) strategic need for the R&D being applied for (e) likelihood of success (f) environmental impact (g) adaptability of R&D results in Philippine economy C. Conditionalities. 23. Conditionality on grants awarded by the DOST is set both by themselves, and in the cases of the use of foreign grant funds, guidelines set by NEDA and sometime the foreign donors. Conditionality is set to encourage compliance with the terms and conditions of the grants and are especially important in achieving the goals of strengthening faculty resources in DOST network schools. Not only is conditionality on the loans set to encourage return of Filipino scholarship holders from overseas, but also to encourage scholarship holders from the regions who study in Metro Manila universities to return to their regional universities. 24. PhD and MS Scholarships. One of the important aspects of conditionality is the amount of service that the grantee is expected to provide his own institution once he returns form the institution which provided the MS or PhD training. In the case of grantees who have received support for domestic short-or long-term study, the general rule is one for one, i.e., if one has a one year non-degree grant one serves one year, if one has a four year PhD scholarship, one serves four years. (PCHRD requires that grantees serve two years for every year of scholarship support.) 25. NEDA regulations which pertain to foreign scholarships stipulate the following formula: less than 2 month aborad = 6 months of government service 2 months to six months abroad = 1 year of government service 6 months to a year abroad = 2 years of government service 1 year and less than 6 months to 2 years = 3 years of government service 26. In addition to the terms and conditions set on the grantee, there are certain conditionalities set on the home institution of the grantees. In general, the recipient's institution shall: (a) pay the full salary for the grantee during the duration of the scholarship or grant. (b) will keep a position for the grantee to occupy after completing his training. (c) shall release the grantee from all duties and responsibilities during the duration of the scholarship or grant. (d) shall assist the Council in monitoring the progress of the grantee. (e) shall require the grantee to reimburse to the institution providing the grant the total amount spent (and in the case of the DOST/PCIERD-UP College of Engineering Project, an equity charge equivalent to 20Z of the total amount already expended and with interest at the prevailing legal rate at the time of the breach of revocation of the scholarship agreement) for his program for any of the following reasons: - 70 - ANNEX 11 Page 7 of 7 (i) transfer to another institution or agency outside the Council's network. (ii) willful abandonment of the scholarship or leave of absence without prior notice/approval. (iii) refusal to render service to his sending institution in accordance with the terms and conditions of the contract; (iv) gross misconduct. (v) refusal to follow the prescribed MS or PhD coursework or be under the direct supervision of the degree granting program. 27. Training and Non-degree Courses. Conditions pertaining to grants for training and non-degree courses appear to be the same as for MS and PhD scholarship programs. The periods of service for DOST training scholarships as stated in the contracts that DOST staff sign are: "no less than three years for every year or a fractions thereof not less that two -.onths of scholarship, training or study grant, where the scholarship, fellowship or training is for a period of less than two months the service shall be not less than one year." 28. Thesis/Dissertation Grants. Conditions pertaining for thesis/ dissertation grants appear to be the same as for MS and PhD scholarship programs. 29. Research Support. There do not appear to be the same type of conditionalities set on research grants as there are on individual study or training grants. There is, however, financial oversight of the research projects carried out by the Councils, and extensive final financial and project reporting procedures to the fulfilled at the end of the research project. -71 - ANNEX 12 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT MOT Specializations to be Developed by UPD, DLSU and AIM MOT Specialization Assigned Institution A. Stages of Development 1. Assessment of Needs UPD 2. Commercial Application AIM 3. Economics of Technology UPD B. Functional Applications 1. Rural AIM 2. Industrial DLSU a. High-tech b. Low-tech C. Organization: R&D Management 1. Academe DLSU 2. Government UPD 3. Private AIM D. Enterprise Planning UPD/DLSU/UPD-ISSI E. Creativity and Intuition AIM Note: MOT - Management of Technology UPD - University of the Philippines, Diliman DLSU - De La Salle University AIM - Asian Institute of Management ISSI - Institute of Small Scale Industries - 72 - ANNEX 13 Ph'LIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Library Assistance by Institution and Field ADMU DLSU MSU-IIT UPD-E UPD-S UPLB UPM UST Chemistry X X X - X X - X Maths/Stats X X X - X X - - Physics X X - - X - - - Earth Science - - - - X - - - Biology - - - - X X - - Pharmacology - - - - - - X - Computer Science X X - X - X - - Chemical Eng. - X - X - - - - Electrical Eng. - X - X - - - - Mechanical Eng. - X - X - - - - Met/Mining Eng. - - X - - - - Industrial Eng. - X - X - - - - Note: ADMU - Adamson University DLSU - De La Salle University MSU-IIT - Mindanao State University-Iligan Institute of Technology UPD-E - University of the Philippines, Diliman, Engineering College UPD-S - University of the Philippines, Diliman, Science College UPLB - University of the Philippines, Los Banos UPM - University of the Philippines, Manila UST - University of Santo Tomas -73 - ANNEX 14 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT High Schools and Institutions Responsible for In-Service Teacher Training by Region Institutions Responsible Region No. of High Schools for In-Service Teacher Training I 12 UP-Baguio St. Louis University Mariano Marcos State University II 13 Cagayan State University St. Mary's College III & NCR (North) 12 UP-Diliman Ateneo de Manila NCR (South) 9 Philippine Normal College De La Salle University IV 7 University of the Philippines - Los Banos V 12 Aquinas University Bicol University VI 6 West Visayas State College UP Visayas VII 6 University of San Carlos VIII 7 Divine Word University IX 6 Western Mindanao State University Ateneo de Zamboanga X & XI 10 MSU-IIT Xavier University XI 5 Ateneo de Davao University XI & XII 5 Notre Dame of Marbel College Total 110 - 74 - ANNEX 15 Page 1 of 4 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Project Cost Summary Tables Project Components by Year Peso and US$ Million Base Costs Peso US$ 1992 1993 1994 1995 1996 TotaL TotaL A. Eng. Education & Research 1. Graduate/Research 15.6 98.2 199.2 108.3 114.1 535.3 19.1 2. Undergrad/Intermediate 0.0 0.2 231.0 47.5 24.3 303.0 10.8 3. Undergrad/Minimun 167.0 21.7 21.7 21.7 21.7 253.6 9.1 Sub-totaL 182.6 120.1 451.9 177.4 160.0 1092.0 39.0 B. Sci. Educ. and Research 1. Graduate NaturaL Sciences 22.9 257.4 251.4 153.8 98.3 783.8 28.0 2. Graduate Envir. Sciences 4.2 31.6 30.7 22.2 16.2 105.0 3.7 3. Research 0.0 124.1 42.5 26.6 60.3 253.5 9.1 Sub-total 27.1 413.1 324.6 202.6 174.8 1142.2 40.8 C. Management of TechnoLogy 2.8 7.8 8.9 5.6 2.3 27.5 1.0 D. Library Networks 64.1 61.2 45.7 44.4 44.6 259.9 9.3 E. Second. Sch. Science/Math 1. Second. Schools Network 35.5 158.0 100.6 21.2 19.1 334.5 11.9 2. Science Teaching Centers 27.9 62.0 12.4 7.0 7.0 116.3 4.2 Sub-totat 63.3 220.1 113.1 28.2 26.1 450.8 16.1 F. S&T Manpower PLan/Monit. 1. Information System 4.7 0.9 0.9 0.9 0.7 8.3 0.3 2. Project Management 8.2 7.2 7.2 7.2 6.3 36.0 1.3 3. PLanning & Monitoring 6.0 2.2 1.5 0.0 0.0 9.7 0.3 Sub-totaL 18.9 10.3 9.6 8.1 7.0 54.0 1.9 Total BASELINE COSTS 358.8 832.6 953.7 466.3 414.9 3026.4 108.1 PhysicaL Contingencies 37.3 85.5 90.7 26.0 21.8 261.4 9.3 Price Contingencies 37.2 160.8 282.9 209.7 258.9 949.6 13.3 Total PROJECT COSTS 433.4 1078.9 1327.3 702.1 695.6 4237.4 130.7 Taxes 64.1 135.4 168.3 34.7 36.1 438.7 13.8 Foreign Exchange 279.0 594.5 783.0 299.5 294.6 2250.7 69.9 12/17/1991 Totals Including Contingencies TotMls Inctudi Contingencies Peso 1992 1993 1994 1995 1996 Totat 1992 1993 1994 1995 1996 Total A. Eng. Education 9 Research 1. Graduate/Research 17.5 124.3 274.6 158.0 183.8 758.1 0.6 4.0 8.6 4.6 5.1 22.9 2. Undergrad/Interediate 0.0 0.3 325.9 70.5 37.4 434.0 0.0 0.0 10.2 2.1 1.0 13.3 3. Undergrad/Ninimum 202.6 25.1 27.5 30.3 33.3 318.7 6.8 0.8 0.9 0.9 0.9 10.2 Sub-Totat 220.1 149.6 628.0 258.7 254.4 1510.8 7.3 4.8 19.6 7.6 7.1 46.5 8. Sci. Educ. and Research 1. GrJuate Natura( Sciences 25.2 331.7 344.7 226.6 156.7 1084.8 0.8 10.7 10.8 6.7 4.4 33.3 2. Gr-&uate Envir. Sciences 4.8 40.5 41.7 32.7 26.0 145.7 0.2 1.3 1.3 1.0 0.7 4.5 ' 3. Research 0.0 162.6 58.3 39.0 100.5 360.4 0.0 5.2 1.8 1.1 2.8 11.0 0 Sub-Total 30.0 534.8 444.8 298.2 283.2 1590.9 1.0 17.3 13.9 8.8 7.9 48.8 C. ~anagement of Technotogy 3.4 10.0 12.4 8.8 4.3 38.8 0.1 0.3 0.4 0.3 0.1 1.2 D. Library Networks 80.3 83.9 72.5 83.0 100.1 419.8 2.7 2.7 2.3 2.4 2.8 12.9 0 n E. Second. Sch. Science/Math 0 0 1. Second. Schoots Network 42.5 207.0 138.9 29.9 29.4 447.6 1.4 6.7 4.3 0.9 0.8 14.1 P 2. Science Teaching Centers 34.6 80.2 17.3 11.0 12.4 155.5 1.2 2.6 0.5 0.3 0.3 4.9 C: o --------------------------------------------- - -------------------------------------- ------- v 0 Sub-Total 77.2 287.2 156.1 40.9 41.8 603.1 2.6 9.3 4.9 1.2 1.2 19.1 (D 0 F. S&T manpower Plan/monit. 1. Information System 5.7 1.1 1.2 1.3 1.1 10.4 0.2 0.0 0.0 0.0 0.0 0.3 fl 2. Project Nanagefent 9.8 9.4 10.2 11.2 10.8 51.3 0.3 0.3 0.3 0.3 0.3 1.6 .- r 3. PLamnning & Honitoring 7.1 2.9 2.1 0.0 0.0 12.1 0.2 0.1 0.1 0.0 0.0 0.4 -4 Sub-Total 22.5 13.3 13.5 12.6 11.9 73.8 0.8 0.4 0.4 0.4 0.3 2.3 30 0 Total PPJECTS 0STS 433.4 1078.9 1327.3 702.1 695.6 4237.4 14.4 34.8 41.5 20.6 19.3 130.7 12/17/1991 CO Base Costs Foreign Exchange 1992 1993 1994 1995 1996 Total % Amount I. INVESTMENT COSTS A. Overseas Training 1. PhD Programs 5.8 25.4 53.2 53.2 26.4 164.0 97.0 159.1 2. NS Programs 0.7 3.5 5.1 2.8 0.5 12.6 97.0 12.2 3. Short-Term Training 7.1 4.6 4.6 4.2 2.1 22.7 97.0 22.0 4. Overseas SanduichProgrm 0.0 0.0 0.0 7.7 25.2 32.9 97.0 31.9 Sub-total 13.6 33.5 62.9 67.9 54.2 232.2 97.0 225.2 B. In-country Training 1. PhD Programs 2.6 0.5 12.8 16.4 13.9 52.2 20.0 10.4 2. MS Programs 13.3 40.5 52.4 50.2 38.2 194.7 20.0 38.9 3. Certficate/Diptom 4.9 7.4 6.7 2.1 0.0 21.1 20.0 4.2 4. 1-Year Research Felt. 0.2 0.2 0.2 0.2 0.0 0.6 20.0 0.1 5. 2-Month Research Fell. 0.0 0.0 0.0 0.0 0.0 0.2 20.0 0.0 6. Short-Term Training 3.0 5.3 7.1 7.8 8.0 31.2 20.0 6.2 Sub-total 24.0 59.9 79.2 76.8 60.2 300.0 20.0 60.0 M C. Substitute Teach. Sat. 14.3 43.3 59.4 60.2 47.0 224.3 0.0 0.0 D. Equipment 1. Minimum Standards 161.5 0.0 0.0 0.0 0.0 161.5 73.5 118.7 2. Undergraduate Programs 0.0 0.0 209.8 23.3 0.0 233.1 73.5 171.4 3. Graduate Programs 0.0 233.4 241.2 31.5 10.1 516.2 73.5 379.6 4. Research (Grad/Post Grad) 0.0 112.8 28.1 10.9 40.6 192.4 73.5 141.5 5. Miscellaneous 6.6 50.9 79.1 0.2 0.0 136.7 73.5 100.5 Sub-total 168.0 397.1 558.2 65.8 50.7 1239.9 73.5 911.7 0t E. Books & Journals 102.4 54.9 36.4 37.4 41.7 272.8 73.5 200.6 C F. Civil Works 2.2 174.0 47.9 6.6 5.1 235.7 30.0 70.7 G. Techncal Assistance o 1. Local Experts 1.0 2.2 1.5 0.6 0.3 5.5 15.0 0.8 1 2. Foreign Experts 8.3 18.5 13.5 6.4 5.1 51.7 75.0 38.8 o Sub-total 9.2 20.8 14.9 7.0 5.4 57.3 69.2 39.6 : H. Management/Supervision 4.1 3.7 3.7 3.8 2.9 18.1 20.0 3.6 Total INVESTMENT COSTS 337.8 787.1 862.6 325.4 267.2 2580.1 58.6 1511.4 II. RECURRENT COSTS 1. Incremental D&M 6.2 30.3 75.6 125.2 132.0 369.3 20.0 73.9 ' J. Incrementat Salaries 14.9 15.2 15.5 15.7 15.7 77.0 0.0 0.0 Total RECURRENT ;".,S 21.0 45.5 91.1 140.9 147.7 446.3 16.5 73.9 Total BASELINE COSTS 358.8 832.6 953.7 466.3 414.9 3026.4 52.4 1585.3 Physical Contingencies 37.3 85.5 90.7 26.0 21.8 261.4 65.0 170.0 Price Contingencies 37.2 160.8 282.9 209.7 258.9 949.6 52.2 495.4 Total PROJECT COSTS 433.4 1078.9 1327.3 702.1 695.6 4237.4 53.1 2250.7 Taxes 64.1 135.4 168.3 34.7 36.1 438.7 0.0 0.0 Foreign Exchange 279.0 594.5 783.0 299.5 294.6 2250.7 100.0 2250.7 12/17/1991 0 Totals Including Contingencies Totals Inctudi Contingencs Peso a 1992 1993 1994 1995 1996 Total 1992 1993 1994 1995 1996 Total 1. INVESTMENT COSTS A. Overseas Training 1. PhD Programs 6.8 32.1 72.3 79.8 43.6 234.6 0.2 1.0 2.3 2.3 1.2 7.1 2. MS Proram 0.8 4.4 6.9 4.2 0.9 17.2 0.0 0.1 0.2 0.1 0.0 0.5 3. Short-Terv Training 8.4 5.8 6.3 6.3 3.5 30.3 0.3 0.2 0.2 0.2 0.1 0.9 4. Overseas Sandwich Program 0.0 0.0 0.0 11.5 41.6 53.1 0.0 0.0 0.0 0.3 1.2 1.5 Sub-Totat 16.0 42.4 85.5 101.8 89.5 335.3 0.5 1.4 2.7 3.0 2.5 10.1 8. In-country Training 1. PhD Prograyns 2.9 8.2 17.5 24.8 23.0 76.4 0.1 0.3 0.5 0.7 0.6 2.3 X 2. MS Programs 15.2 50.7 71.7 75.6 63.4 276.7 0.5 1.6 2.2 2.2 1.8 8.4 3. Certificate/Diploma 5.6 9.2 9.2 3.2 0.0 27.2 0.2 0.3 0.3 0.1 0.0 0.9 4. 1-Year Research Fell. 0.2 0.2 0.2 0.2 0.0 0.8 0.0 0.0 n.0 0.0 0.0 0.0 e CL 5. 2-Month Research Fell. 0.0 0.1 0.1 0.1 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 6. Short-Term Training 3.4 6.6 9.7 11.8 13.3 44.9 0.1 0.2 0.3 0.3 0.4 1.3 C rt ..-- -. .-- -.- - - - - - - - - - - -----....-....--.............-....-.-....--... -. o-- - - -- - - - 0 r Sub-Total 27.4 74.9 108.4 115.7 99.8 426.2 0.9 2.4 3.4 3.4 2.8 12.9 D < C. Substitute Teach. Sal. 15.0 50.0 75.5 84.1 72.3 297.0 0.5 1.6 2.4 2.5 2.0 9.0 C 0 D. Equipment 1. Minimm Standards 196.8 0.0 0.0 0.0 0.0 196.8 6.6 0.0 0.0 0.0 0.0 6.6 c 2. Undergraduate Programs 0.0 0.0 295.9 36.2 0.0 332.1 0.0 0.0 9.2 1.1 0.0 10.3 3. Grduate Programs 0.0 306.2 340.2 49.0 17.3 712.6 0.0 9.9 10.6 1.4 0.5 22.4 0 4. Research (Grad/Post Grad) 0.0 148.0 39.6 17.0 69.5 274.1 0.0 4.8 1.2 0.5 1.9 8.4 C 5. Miscellaneous 8.0 66.7 111.5 0.2 0.0 186.5 0.3 2.2 3.5 0.0 0.0 5.9 ' 9' Sub-Total 204.8 520.9 787.1 102.4 86.8 1702.1 6.8 16.8 24.6 3.0 2.4 53.7 o C E. Books & Journals 129.3 79.9 61.1 74.3 97.7 442.2 4.3 2.6 1.9 2.2 2.7 13.7 .14 F. Civil Works 2.6 226.2 68.0 10.3 8.7 315.7 0.1 7.3 2.1 0.3 0.2 10.0 G. Technical Assistance ¢ 1. Loca Exprts 1.2 2.9 2.1 0.9 0.5 7.5 0.0 0.1 0.1 0.0 0.0 0.2 2. Foreign Experts 10.0 24.2 19.0 10.0 8.7 71.9 Z.3 0.8 0.6 0.3 0.2 2.2 4 Sub-Total 11.2 27.1 21.1 10.9 9.2 79.5 0.4 0.9 0.7 0.3 0.3 2.5 H. Management/Supervision 4.8 4.8 5.2 5.9 4.9 25.7 0.2 0.2 0.2 0.2 0.1 0.8 Total INVESTMENT COSTS 411.2 1026.2 1211.8 505.4 468.9 3623.5 13.7 33.1 37.9 14.9 13.0 112.6 11. RECURRENT COSTS A. Incremental LM. 6.5 35.1 95.8 174.8 202.6 514.9 0.2 1.1 3.0 5.1 5.6 15.1 8. Increentat Salaries 15.6 17.5 19.7 22.0 24.2 99.0 0.5 0.6 0.6 0.6 0.7 3.0 Total RECURRENT COSTS 22.1 52.7 115.6 196.7 226.8 613.9 0.7 1.7 3.6 5.8 6.3 18.1 e Total PROJECT COSTS 433.4 1078.9 1327.3 702.1 695.6 4237.4 14.4 34.8 41.5 20.6 19.3 130.7 12/17/1991 0 Ln - 78 - ANNEX 16 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT PROJECT MANAGEMENT ORGANIZATION STEERING COMMITTEE CHAIRMAN - DOST SECRETARY ADVISORY GROUP STCC CO-CHAIRMAN -DECS SECRETARY CAM ) PRIVATE UNIVERSITIES 2 PHIL EXPERTS REPRESENTATIVE 2 INTER. EYPERTS MEMBERS PRIVATE SECTOR REPRESENTATIVE - DBM UNDERSECRETARY - NEDA DEP. DIR. GENERAL - DECS UNDERSECRETARY FOR S&T MEMBER AND - PROJECT DIRECTOR COMMITTEE SECRETARY COA.PICO MIS ........... PROJECT DIRECTOR PLANNING AND DEPUTY PROJECT DIRECTOR EVALUATION TECHNICAL WORKING GROUPS OPERATIONS GROUPS PCIERD E ACCOUNTING - ****DESfPEE [ N IAC ENGINEERING PROGRAM ... ESTE N IAC PCASTRD TECHNICAL SCIENCE PROGRAM ... EsrsASSAC SEm EQUIPMENT AND SECONDARY ***** DECS _LIBRARY SCIENCE PROGRAM mATERIALS TAPI CIVIL WORKS MrTPROGRAM - 79 - ANNEX 17 Page 1 of 3 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Proiect Advisory Group Draft Terms of Reference Background 1. The Department of Science and Technology (DOST) will embark on a major science and technology (S&T) manpower development project in support of the Government's plan to strengthen the country's industrial technological capability. The World Bank will collaborate with the DOST by financing a large part of the project costs. The project seeks to improve graduate and undergrade programs in priority fields of science and technology at selected public and private universities and also to upgrade science and math education at selected secondary schools. It will be implemented between 1992 and 1996. To help oversee project implementation and provide technical advice to Steering Committee (SC), project's decision-making body, DOST will appoint a Project Advisory Group (PAG) in consultation with the World Bank. Membership and Contract Period 2. The PAG will be chaired by a Filipino expert selected from the Philippine S&T community and will include two additional members of the Philippine S&T community representing both public and private universities, and natural sciences and engineering. In choosing the Filipino members, links to industry should be given high priority. The remaining two members of the PAG will come from the international S&T community and include a representative in natural sciences with extensive experience in university teaching and research, and a representative in engineering from an engineering university with strong links to industry. It is desirable that the international members be chosen from candidates who are from or who have wide experience in countries similar to the Philippines in their S&T infrastructure. All members of the PAG should be prominent acientists, engineers, or educators at home and abroad with experience in management of educational and research processes. 3. The PAG will serve for the full period of project implementation. Individual PAG members will initi%lly be appointed for two years with the possibility, after review, of extended service through the completion of the project. PAG members are expected to familiarize themselves with the general implementation procedures of World Bank-supported education projects. Res2onsibilities 4. Areas of the PAG's responsibility will include advisory and evaluation functions as follows: a) The PAG will advise the SC on: - 80 - ANNEX 17 Page 2 of 3 - the current state of international and domestic S&T developments, especially as they impact on university education and research; - the structure and content of curricula for university S&T programs as well as science and math programs for secondary schools; - the most recent advances in scientific instrumentation, computational equipment and software, as well as making recommendations on equipment procurement; the progress of project universities and schools, and issues that might arise during the course of project implementation. Issues may concern the project objectives and targets related to faculty development, institutional management and facility utilization in project universities and schools. In particular, the PAG will review annually performance on key indicators, including those for Engineering Education, Science Education, and Teacher Training as spelled out in Annex 5 of the SAR; - appropriate programs of international exchanges including faculty exchanges, joint research opportunities, placement of graduate students, institutional twinning atrangements, and linkages with industry both within the Philippines and abroad. b) Additionally, in carrying out its evaluation responsibilities, the PAG will: - after each full PAG meeting, submit a report to the SC containing its findings and recommendations, with a copy to the World Bank. - prepare a mid-term report on the statis of project implementation, highlighting areas of good progress as well as areas requiring close follow-up, and submit the report to the SC with copies to the World Bank; - assist the DOST in evaluating the project at its completion, submitting a final evaluation report to the SC with copies to the World Bank. Workelan 5. The Philippine members of the PAG will devote approximately five veeks and the international members approximately four weeks annually to undertake advisory work for the SC. 6. The full PAG will meet twice a year, in approximately June/July and December/January. Additionally, Philippine members of the PAG will meet separately tvice more annually. Meetings will be called by the PAG chairman. 7. The PAG will make site visits to an appropriate sample of project universities and secondary schools at least once a year to review progress in project implementation, identify any important emerging issues, and provide - 81 - ANNEX 17 Page 3 of 3 appropriate advice to the SC. The PAC may also visit industrial firms as needed. These visits will take place at the same time as the regularly scheduled PAG meetings. 8. DOST's Project Implementation and Coordination Office will serve as a secretariat to provide necessary administrative and logistical support for all members of the PAG. - 82 - ANNEX 18 Page 1 of 2 PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Disbursement Schedule and Profile Disbursement Disbursement Semesters IBRD Cumulative Profile (%) from Fiscal Year Semester Cumulative as % of Asia Region Approval and Semester -----(US$ million)---- total Education Date 1992 1st 0.0 0.0 0% 0% 1 2nd 2.0 2.0 2% 3% 2 1993 1st 5.0 7.0 8% 6% 3 2nd 6.0 13.0 15% 6% 4 1994 1st 10.0 23.0 27% 14% 5 2nd 14.0 37.0 44% 22% 6 1995 1st 15.0 52.0 61% 34% 7 2nd 13.0 65.0 80% 46% 8 1996 1st 9.0 74.0 87% 58% 9 2nd 6.0 80.0 94% 70% 10 1997 1st 3.0 83.0 98% 74% 11 2nd 2.0 85.0 100% 82% 12 1998 1st 90% 13 2nd 94% 14 1999 1st 98% 15 2nd 100% 16 Closing Date: June 30, 1997 - 83 - ANNEX 18 Page 2 of 2 Disbursement Graph US$ Million 100- 40................ . . . . . . . . . . . . . . . . . S 60- 5' 20 12341234123412341234123412341234 1992 1 1993 1 1994 1 1995 1 1996 1 1997 | 1998 | 1999 IBRD Fiscal Years and Quarters -Appraisal Estimate + Profile - Asia/Educ. PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT Frolect Processing and Implementation Schedule Calendar Years CY91 CY92 CY93 CY96 CY95 CY96 CY97 JFM ANJ JAS OND JFN ANJ JASIOND AMJ JAS OND JFM ANJ JAS OND JFM ANJ JAS OND JFMIANJ JASIOND JFNjANJ JASIOND IORD Fiscal Years (July to June) FY92 FY9;. FY94 FY95 FY9 FY 7 Philippine Fiscal Years FY91 FY92 FY93 FY94 FY95 FY96 FY97 (January to December) Preparation Preapprafsat Appraisal *(3/91) Negotiations * 12/91) Board Presentation *(1/92) Effectiveness *(4/92) PREP YEAR PROJ YR.1 PROJ YR.2 PROJ YR.3 PROJ YR.4 PROJ YR.5 Major Implementation Tasks Trainig: USS22.9 million 1.4 3.8 6.1 6.4 5.2 (22.9) (1.4) (3.8) (6.1) (6.4) (5.2) Training Period ...I. ** 0 MU ME 1 M MEN m m mN m MM a Equiment: US$53.7 million 6.8 16.8 24.6 3.0 2.4 (38.3) (0.2) (13.7) (20.0) (2.5) (1.9) Procurement Plan ... WER ... ... ... ... ... ... ... ... ... ... Master Lists ... ... IM ME ... ... ... ... ... ... ... ... ... . . . . . . . . . . . Grouping/Packaging....mo...... M......mm.............. Specs &.......d..g.......... ... ....MMM... ... ....M-... ... ....M-... ... ....... ... ... Bidding/Eval/Awards Placement of Orders & letivery ... ... ... ... ... ... Vm * m Im * em .m I M * Testing & Acceptance ... ... ... ... ... ... ..M M BookslJournals: US$13.7 million 4.3 2.6 1.9 2.2 2.7 (13.7) (3.5) (2.1) (1.5) (1.8) (2.2) Procurement Plan ... ... .. Select Suppliers .... ......M......M......M......M......... Title Identification M Placement of Orders ......... ...** ** * .m . ** * .m . * * .m * amE - m m... ...E *. Delivery Period ... ... ... ... ..* MW ..m . . * *** m .** m . *** - M ** m m M*. Civil Vorks: USS10.0 mil ion 0.1 7.3 2.1 0.3 0.2 (10.0) (0.1) (6.9) (2.0) (0.3) (0.2) Planning/Budgets ... ... ... ... ... ... ... ME ... ... ... M ... ... ... . ... ... ... Prep. of Projects . mm ..... Rep.e of Proect . . ....gyg ... ... ... ... ... ... .. ... ... g. Review of Proposals .......m.. ... ... ... ... ... ... ... ... . ...... ... M. ... ....... Approvals ... ... ... .. ... ... ... .. ... ... ..... ...... ..... a ... ... ... .. ... ....... Bidding/Evt/Anards ... ... ... ... .M ... ... ... M ... ... ... ... ... .. Construction Period ... ... ... ... ... M M M ... ... Technical Assistance: UA .4 mittion 0.4 0.9 0.7 0.3 0.2 2 .4) (0.4) (0.9) (0.7) (0.3) (0.2) Services Period . (. ... ... ...(0 Project Completion: Decemter 1996 (12/96)* Closing Date: June 1997 (6/97) Note: Figures in parentheses indiAte respective mouts to be financed by the Bank. - 85 - ANNEX 20 PHILIPPINES ENGINERRING AND SCIENCE EDUCATION PROJECT Selected Documents and Data Available in the Proiect File 1. Science and Technology Master Plan (DOST, July 1990) 2. Policies, Standards and Guidelines for Engineering Education (TPEE/DECS, April 1988) 3. Policies and Standards for Basic Sciences (DECS, December 1989) 4. Science Education Development Plan, Volumes I and II (DECS, November 1985) 5. The Macro-Plan for Engineering Education in the Philippines (DECS, October 1990) 6. Directory of Engineering Schools, (DECS, May 1989) 7. Annual Report of the S&T Coordinating Council, 1989-90 (STCC, 1991) 8. DOST Annual Report, 1990 (DOST, 1991) 9. Feasibility Study on S&T Manpower Development Program (DOST, July 1991) MAP SECTION IBRD 23074 tio.120- 124' 128- ENGINEERING AND SCIENCE EDUCATION PHILIPPINES OCO INSTITUTIONSYREGION ENGINEERING AND SCIENCE CORDILLERA ADMNISTRA1VE REGION (CAN EDUCATION PROJECT Sant Loos Universiy 20. fl CAAYAN VALLEY2. r0 CEGYNTALL ENGINEERING INSTITUTIONS CENTRAL LUZONBTNS IV SOUTHERN TAGALOG BATANES SCIENCE INSTITUTIONS 2 Pablo Barbon Mmora lntlitmt. of T.chnoogy A DOST v BICOL DECS Vi WESTERN VISAYAS NATIONAL CAPITAL 3 Central Philippin U.niveity 4 Unvry of N.9ro REGION BOUNDARIES Vii CENTRAL ISAYAS INTERNATIONAL BOUNDARIES 5 SillIman Unv.rity 0 Tuggara 6 Uni~eity of San Carlo CAR KILOMETERS 0 100 200 300 2 u-~ Sn Fernandeo MILES 0 50 100 150 200 v I Ii EASTERN ViSAYAS IX WESTERN MNDANAO X NORITHERN MINDANAO 7 X-v~er Un-versity L U Z CY N Xi SOLTHERNMINDANAO n-~ci. 8 Atenro d. Dao Universy 1 1i 131 d 9 Univoeity of Mindanao l',17.<.1 MANkA Xi1 CENTRALMINDANAO NCR 10Mndanao State University l~gan I~stite of Technology ,1 ,-.,5, oe CATANDU.ANES NATIONAL CAPITAL REGION (NCR) 11 Ad~on Univarty Lega.p. 12 DonBoso TehniaI Colg Iv 13 D L. Saljo Unirsily MINDORO 14 Mapu Institute of To.hnology 15 Rial Technological College SAMAR 16 Technological Unrveity of t the Philipp.nes Vili Univereity of Ph.ppine., Dilian l8 Uniersuty of Santo aTor. 19 University of the East PANAY At, ~ de M Vv 0Tacloban 6 3Moio LEYTE CEBU B *..* PALAWAN SVIS A Y S m Martin OHOL NE OS 58 Cagoyan X1 s'd Oro. MI D NA O uG oZm C.. 9. ro;.o , -,r~ h-. bt- p~tte by X11 PHIIPPINES får thd coroence &o re ad ä .."-l for the int.e. as. o f World B-nk Grop The d- 6oo usd ond the bo-odoret shown aE Itsado ot oth", m tIe2 NAVI PgIl o .ofT Wod n p SULU -y Met on m e- -uch bodarios N O 0 N f S A 20- 124-1 12L 120 12A NOVEMBOER 191