Turkey - Industrial Training Project

Doan MICRO1 i CHE COPY The Wo: Report No. 9836-TU Type: (PCR) CIIAI, L.- ( / X31754 / T- 903S4/ OEDD1 FOR OITcL ReporeN. 9835 PROJECT COMPLETION REPORT TURKEY INDUSTRIAL TRAINING PROJECT (LOAN 2399-TU) AUGUST 23, 1991 Populatior and Human Resources Operations Division Country Department I Europe, Middle East & North Africa Regional Office Tbis document bas a restricted distribution and may be used by recipients only In the performance of their offcial duties. Its contents may not otberwise be disclosed without World Bank authorization.  Acronyms ELT: Englisn Language Training IBL: Industry--based learning ITU: Industrial Training Unit, YOK OJT: On-the-job training SIS: State Institute of Statistics SPO: State Planning Organization TEKSIS/ BC/GE: TEKSIS/British Council/General Electric (consortium) TTC: Technician Training Center, Y6K YOK: Council of Higher Education SEGEM: Industrial Training and Development Center Financial Data 1984 1985 1986 1987 1988 1989 1990 -------------------------------------------------------------------__----- Exchange Rate: 366.7 522.0 647.5 857.2 1422.3 2121.7 2608.6 Local Inflation Rate: 50.4% 43.2% 29.6% 32.0% 68.3% 69.6% 52.3%  THE WORLD BANK 1*FOR OMCIAL USE ONLY Washington. D.C. 20433 U.S.A. Olkh cd Dmtetc.Cwwa Opecatom IvAMuatrn August 23, 1991 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report: TURKEY - Industrial Training Proiect - (Loan 2399-TU _ Attached, for information, is a copy of a report entitled "Project Completion Report: Turkey - Industrial Training Project (Loan 2399-TU)" prepared by the Europe, Middle East and North Africa Regional Office, with Part II of the report contributed by the Borrower. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment a7' This document has a restricted distribution and may be used by recipients only in the performance of tbeir official duties. Its contents may not otherwise be disclosed without World Bank authorization.  FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT TUWY INDUSTRIAL TRAINING PROJECT (LOAN 2399-TU) Table of Contents Page No. Preface ............................ **.*-.. 1... Evaluation Summary ....... ... ...4*....... ......4 it PART Is PROJECT REVIEW PROK BANK'S PERSPECTIVE A. Project Identity ..... .... ...... .............. 1 B. Background ...... . ,.. .............. *1. .... .. ...... C. Project Objectives and Description ........ ...... 1 Project Objectives ...................... . .. . .. . .. ........... 1 Project DescrLption . ......... ............ .*. . ............ .. .. 2 Project Design and Preparation 2........................... 2 D. Project Implementatlon . ..... .. ... ... .... O..*. . . .. .. ..3 Loan Effectiveness & Start-up ....... ...... .............. 3 rmplementation Schedule .............. . ... .................. . 3 Procurement . ............................. . . .......... 3 Project Costs and Loan Allocatlon ...................... .. 3 E. Project Results .................. .... .................. ..... 5 YOK Project Objectives .......... . . ........................... 5 YOK Project Activities . ................... ............... 6 YOK Project Impact . ............................ .. ...... 8 SEGEN Project Objectives ....... ......... 8 SEGEM Project Activities .. *..o.. ........... ... ...*. ........ 9 SEGEM Project Component Impact ............................. 9 SS Project Component Impact ................... 10 F. Project Sustainability ................. .*40400 ......... 10 G. Bank Performance ... . . ............... . ........... . .*. 11 H. Borrower Performance ............6.....*. ................. . 11 I. Bank-Borrower Project Relationship ........................ 12 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Table of Contents (contd.) J. Consulting Services .. .................. ......... ...... 12 R. Findings and Lessons ....... ............. ... .... *....... 12 PART It: PROJECT REVIEW FROM TPS BORROWR' S PERSPECTIVE A. YOK ........................... . .. ........... .***.**... 15 B. SEGEN ............ ......... ****....o ....... 16 C. SIS ............ .... 0....... .000..... ...... is ^1 PART III: STATISTICAL INFORNATION .............. ...... ..... ..... . 20 Table 1. Related Bank Loans ................................. .. 20 Table 2. Project Timetable ..... ................ *..O**** ... 21 Table 3. Cumulative Estimated and Actual Disbursements ...... .... 22 Table 4. Project Implementation Indicators .... ................. 23 Table 5. Project Costs and Financing ......... . ........... 24 Table 6. Compliance wlth Loan Conditions ....................... 25 Table 7. Use of Bank Resources . ........ e .... ....... ... ...... 27  PROJECT CO0PLETION REPORT INDUSTRIAL TRAINING PROJECT (LO&N 2399-TU) Preface This Project Completion Report (PCR) is on the Industrial Training Project in Turkey, for which Loan 2399-TU in the amount of US$36.8 million, was approved on March 27, 1984. The- Loan closed on December 31, 1990, tafter a six- month extension. Ninety-nine percent of the Loan was disbursed, and the last disbursement was made on January 24, 1991. The PCR was prepared jointly by the Population and Human Resources Division, Country Operations I of the EMENA Regional Office (Preface, Evalt4ation Summary, Parts I and III), and the Borrower (Part II). Preparation of this PCR was started during a Project Completion Mission in October/November 1990, and is based on the observations and conclusions of that mission, supervision reports, and the Bank's correspondence files. Conclusions also reflect the findings of a report prepared by the Resident Mission based on interviews with teachers of project-supported schools. ThL report and a consultant's report for the completion mission are avaLlable in files.  - iii - RQPRLCT COMPLETION REPORT TURREX INDUSTRIAL TRAINING PROJECT ILOAN 2399-TUI Evaluation Summary A. Qbiectiveg i. The main sector objectivo for the Loan war to support the Government in improving and expanding services for industrial training. The project was designed to respond to industry's need for skilled labor to maintain and increase rates of growth of manufactured exports. Modernizi:;g industries was critiVeal to maintaining competitiveness in international markets, requiring skilled labor and modern production and marketing techniques. Specific project objectIvos were to strengthen the institutional capacity of the Council of Higher Education (YOK) and the Industrial Training Center (SEGEM) to monitor pre-service and in-service industrial training programs, and to alleviate scarcities of skilled labor through expansion and improvement of their technical education and training programs B. Imnlementation Experience ii. The project was supported by the implementing agencies throughout its execution. Project implementation had positive results, and the project generally met its objectives with the exception of the institut.,on-building objectives which fell far short of being reached. Most physical targets were achieved in terms of construction and equipment procured, and enrollment in project-supported training centers far exceeded appraisal estimates. There were some delays in project execution when compared to the timing proposed at appraisal for implementation of the various activitieso. The project closed after a six-month extension, having disbursed 99% of the Loan. There were three important project implementation problems: (a) the chronic shortage of full-time staff to work on project execution and the resulting lack of impact on institution-building as envisaged at appraisal: (b) lack of qualified fellowship candidates to be able to adequately implement the overseas training component; and (c) failure to implement an in-service teacher training component. These problems diminished the benefit of the project, in particular the impact of the technical assistance financed by the Loan. C. Results iii. The main policy objective for the project was to shift the orientation of technical education and training from a formal academic process to one concerned with producing skilled technical manpower needed by the manufacturing industry; this objective was generally achieved, and a link has started to develop between the education and training sector and industry.  - iv - iv. The project met most of its physlfal targeta, as the eight vocational colleges, renamed Technician Training Centers (TTC), and the 8EGEM Training Center are now fully equipped and starting to operate with aw curricula, and with recognition from industry. A component for in-service training was not implemented as it proved difficult for TTC teachers to take on the additional task of in-service training. In retrospect, the absenco of this component diminished the impact of the projectt the use of laboratorles and equipment and the quality of instruction are below optimum at present; some teachers do not know how to use the equipment, or the equipment is idle because of teacher shortages in certain programs; however, use of equipment is expected to improve as teachers become more familiar with the new curricula and equipment. VI The institutional development objective. as set at appraisal for both YOK and SEGEM were not fully achieved. At present these agencies have limited capabilities to plan, administer, and manage jointly technician pre-service, in- service, and on-the-job training; the expected transfer of knowledge and experience to these agencies from the substantial technical assiatance financed by the Loan was limited because of lack of counterpart staff. D. Sustainabillitv vi. The Government and implementing agencies have been advised on the need to take certain measures to ensure project sustainability, mainly: (a) the establishment by YOK of an in-service training program for TTC teachers, to improve knowledge on the use of equipment, provide more training materials in Turkish, and assist in organizing laboratory sessions; (b) the monitoring by YOK's Industrial Training Unit (ITU) and by SEGEM, of provisions for an adequate operating budget for the Centers; and (c) the critical need to assess the staffing requirements of YOK and 8EaEM to ensure their effectiveness. E. Findings and Lessons Learned vii. As this project was considered a pilot project, a Second Industrial Training Project was approved in FY88 (Ln. 2922-TU for US$115.8 million). The Second Project expands the model for technician training introduced under the first project to 20 additional TTCs, and also provides further technical assistance to YOK. However, the problems that occurred under this first project persist into the ongoing Second Project; efforts should be pursued to surmount the more important problems if further Bank funding is to be provided through YOK. An additional 66 of the 98 vocational colleges remain to be developed. viii. This report's recommendations, which are highlighted below, should be addressed in the context of the ongoing implementation of the Second Project. TTCe (Vocational Colleges) supported by the project should develop non-formal programs to offer continuing education and training to the local community and local industry, in addition to the standard 2-year curricula.  - v - To provide linkages between education in TTCs and employment, systems should be developed for standardize testing, certification, and monitoring of program quality and employment of graduates. A decentralized in-service teacher-training program should be establlohed within model TTCs to improve knowledge of new curricula and new equipment. wiven the limited capacity for institution- building at the central government level, certain responsibilities such as curriculum development should also be decentralized. Increased project and sector staffing is essential for the institution-building of YOK, also being supported under the Second Project. Terms of reference and contracting of key staff required to achieve project investment and sector objectives should be agreed as a Condition of Effectiveness. Systematic training and assistance should be provided by the Bank in the field of procurement to prevent delays and complaints from bidders. Project audLts carried out by Treasury are insufficient ln scope for the typee of activities financed under PHR projects, and private audits, with terms of reference satisfactory to the Bank, should be agreed for future Loans.  PRJECT COMPLETION REPOR mm INDUSTRIAL TRAlNING PROJECT ILOAN 2499-TIB PART I: p7OJECT REVIEW FROM BANK'S PERSPECTIVE A. Prgject Identity Nasai Industrial Training Project Loan Number: 2399-TU RVP Unit: EMENA Region Countrys Turkey Soctors Education and Training B. Backaround 1, Sector Development Objectives (at Appraisal). The main objective for lending for the education and training sector in Turkey was to support the Government's policy to improve industrial productivity. This included training for technology development, and the development of appropriate industrial training programs and policies, including the development of measures to reduce the burden of recurrent expenditures of industrial training on Government. 2. Policy ConteAt. The project supported the implementation of the three main Government industrial training policies: (a) Improve Effectivenv-k5 Agencies involved in industrial training should improve effectiveness by linking their training more directly to the needs of industry through cooperative programs with local industry; (b) Expansion of Provision of Trainings To increase the provision of industrial training, new options would be considered, for example, a national system for training services to small-scale enterpriieso and (c) Institutional Development. The establishment of an appropriate institutional framework and a legal and financial basis for training levies on all industrial employers would be essential elements for industrial training to prosper, and to encourage private industry to undertake more training. C. Proiect Objectives and Descri-tion 3. Project Objectives. The project's specific industrial training objectives were consistent with the Governments economic objective to maintain high rates of growth of manufactured exports by improving productivity with better trained, skilled labor. The project had three main objectives: (a) to strengthen the institutional capacity of YOK and SEGEM to provide industrial training programs; (b) to alleviate scarcities of technicians in industry by assisting the development of pre-service technician training programs; and  (a) to improve industrial productivity by developing SEGEM's (Industrial Training and Development Center) in-service, on-the-job, industrial training programs for middle level manpower and profetsional staff, and to esatablish a basis for a national industrial trainlng system. 4. Project Description. To achieve the above-mentioned objectives, the project provided fort (a) equipment, furniture, and minor refurblihing for eight pilot Technician Training Centers (TTCs) under YOKt and technical assistance to YOK for curriculum and staff development for TTC*, and to strengthen the TTC management system and future project development; (c) equipment and technical assistance to SEGEM for the development of a framework for a national industrial training system, and for program expansion; and (d) overseas fellowship training for staff of S'8 (State Institute of Statistics). As these actLvities involved three distinct implementing agencies, Section N of this report will addrees project results by Agency. 4. Project Design and Preparation. The project was designed to help meet the gap between industry's demand for highly skilled labor and shortages of advanced technical training programs. Project preparation proceeded on schedule according to the scope agreed at identificationt SEGEM, having assumed responsibilities for providing in-service, on-the-job training, would need further support in the form of equipment and technical assistance for institution building. YOK, as a newly created agency responsible for post-secondary education would require assistance with its plan to upgrade and remodel the existing two-year, post-secondary institutions offering a variety of two-year vocational education programs. The project proposed to convert about eight of the then existing 53 vocational colleges (now 94), into more well suited Industrial Training Centers. The project wab considered to be a pilot, with possible extension to other Centers. A Second Industrial Training Project upgrading an additional 20 Training Centers, and including support for Technical Teacher Training in four Faculties, was approved by the Board in March 1988 (Ln. 2922-TU, for US$115.8 million). Retroenective on Proiect Desion and Qrganizati2a S. The project was well designed, and was responsive to Turkey'r priority needs for industrial training as outlined above. This is reflected in the success of the project at completion, now delivering modern training to a much larger number of students than anticipated. However, it is useful to note as a lesaon that the risks identified during project preparation persisted during  -3- implementation, and still remain under the ongoing follow-up project; there risks related mainly to institutional development and staffing. 6. In&sttutional Devolopnent in Weak ISnl.msnting Asenai-s. A substantial technical assistance program was included in the desjgr, of the project to assist the Government achieve institution-building objectives. The agencies were to improve coordination, monitoring, and policy development for technical and vocational training. Because of lack of staff in the project agencies at appraisal, the technical assistance was to provide as well, administrative support to avert risks in project implementatior. In the case of YOX in particular, this created extreme dependency on consultants, which has continued under the Second Project. Project staff are gener_lly professors seconded from their teaching positions, who usually teach 10 hours per week. This system is aloo used as a reward to increase income. The problem arises from the low pay structure for civil servants, including teachers, and decreases the effectiveness, commitment, and accountability of staff in public agfncies. The Bank reluctantly accepted this arrangement, and was to monitor it closely. Agreements reached under the Second Industrial Training Project to duly staff an "Industrial Training Unit" and integrate the work of consultants have also failed. Lesson: Institution buildinq oblective shbopld be hiahlighted in Loan Aareements: kov 4ncremental *ositions regaured to achileve groect obiectives should bea svecified to ensure-accountability both-at the gentral gp_vrnment andA imalementing acencv levels: terms-of-roference and contractina of key staff should be defined as a Condition o_f ffectivoness. 7. Lack of Inter- and Sntra-Sector Coordination. An issue identified during preparation was the lack of coordination across sector agencies, as well as the need for linkages with industry, which would be a key to the success of technician training. The Bank agreed to two parallel project implementation units as it would h-va been difficult for the two agencies to work together. In retrospect, conceding to thia separation did not strengthen sector coordination, in particular, the role envisaged for SEGEM to oversee the relevance of technical a, J vocational education to needs of industry and labor markets. Lessons acause eoctor coordnation and *ccountability are difficult in Turkey, the Bank should oromote more the role of SPO in achievina these obiectiveu. D. Proiect Implementation 8. Loan Effectiveness and Start-up. A two-month delay occurred in Loan effectiveneos due to procedural delays in issuance of a Ministerial Decree to ratify the Loan and Project Agreements. YOK was able to start implementation quickly with the contracting of technical assistance, and continued a steady pace throughout the project years. SEGEM, however, experienced long delays in start up because of problems in agreeing on 4he work program for the technical assistance. SEGEM also had to work with the uncertainty of not having a permanent legal status, which caused the postponement of project activities. These delays persisted throughout project implementation resulting in a six-month extension of the Loan Closing Date.  9. Implementation Schedule. (a) YORt The operation of TTCs was delayed by two year. mainly because of slow construction; equipment had to be temporarily stored until buildings wete completed, causing frustration for teachers and suppliers not being able to start their training and installation. The implementation of the technical assistance proceeded well, with delays mainly in the fellowship program; lack of qualified teacher candidates for overseas fellowships with appropriate language skills is now a well-recognized problem for Turkey. (b) BEGEM: Both the implementation of the technical assistance and start up of the SEGEM Training Center suffered long delays (four years). The main reason for the delay was the legal uncertainty under which SEGEM operated which caused itL management to be cautious and hesitant. The Ministry of Industry and the Bank expected the legislation to be passed easily, but it proved to take five years. (c) SIB: The total implementation of the fellowships for 8IS took three years longer than envisaged at appraisal because of the lack of suitable candidates with the appropriate English language training (ELT) -- SIS ensured the success of the program by having its fellows first receive sufficient ELT before approving their departure. 10. Procuresent. (a) YoKs At the time of shortlisting firms for technical assistance, the issue of conflict of interest was raised with the Procurement Unit; this was due to the fact that the local company shortlisted, TEKSIS, was assisting YOK in project preparation and was closely linked to YOK. At the Bank's request, YOK confirmed that it had severed all contractual relationships with TEKSIS, and it wished TEKSIS to be shortlisted. A consortium of TEKSIS/British Council/General Electric was awarded the contract. The issue of conflict of interest resurfaced when allegations were made of equipment awards favoring companies closely related to the same holding company as TEKSIS. Several other complaints were received regarding YOK's evaluation and recommended contract awards for equipment. (b) SEGEK and 8I3: No procurement problems arose in the bidding process with these agencies. Lesson: The issue of conflict of interest is a serious concern that may cause many Problems, often real and/or alleged. The Government and imolementina agencies should be made aware. throuah systematic trainina, of their res2onsibilitiel in 2reventine procurement groblems such as collusion of firms. 11. Project Costs and Loan Allocations. The Actual Total Project Cost is estimated at US$52.4, with the Dank financing US$36.4 million, or 69% of total costs. At appraisal, the project cost was estimated at US$44.4 million, with the Bank financing US$36.8 million, or 83% of total costs (see Table 5). The Government contributed to the project a substantially higher amount than appraised mainly because of high6r expenditures than originally allocated for construction and for teacher's salaries--while the appraisal envisaged only refurbishments, five of the eight TTCs were constructed new and the other three had new wings added. Also, teacher's salaries have increased substantially relative to 1985 wages. The additional US$8.0 million provided by the Government reflects the importance given to Technical and Vocational education in Turkey. These additional funds were all budgeted directly by the various universities to which the TTCs are attached. Regarding Bank financing, in YOK, there was an  -5- increase in the amount allocated for consulting aervices from US$3.8 million to US$5.5 million, and in SEGEM for equipment from US$1.0 million to US$2.1 million. Lesson: xenditurm* on consultina services will continue to be high due to lack of proiect imElementing caeacity of executino paencies. E. Proiect Results (i) Council of Higher Education 1YOK) (83% of 2roiect costal (a) YOK Project Objectives 12. The main policy objecteve of the project was to shift the orientation from formal academic education, to one concerned with producing skilled technical manpower needed by the manufacturing industry, to improve quality and productivity in manufacturing (see para 2). This objective was generally achieved for the project facilities, and a link has been developed between these Centers and industry. Industry is collaborating well in cooperative work programs and is slowly understanding the philosophy and value behind their involvement in advisory committees for the functioning of Technician Training Centers (TTC). Plant managers and entrepreneurs that have developed links with the Training Centers can appreciate the difference between pre and post project schools, which have shifted from theoretical training to fully equipped technology centers promoting higher standards. The eight project TTCs are operating with new curricula, integrating ir.i.ustry-based-learning (IBL), with the recognition from industry. Because student selection, IBL, and employment of graduates is all carried out at a national level, there appears to be a high employment rate of graduates, based on the information provided by two TTCs which have followed up on their graduates. This national selection process is a positive policy for Turkey as it promotes mobility and thus more equity across rural and urban areas, in access to education and employment. 13. One aspect of the project was that "Vocational Colleges of Higher Education" were to be renamed "Technician Training Centers" to reflect the superior technology education level of graduates of upgraded schools. However, this change in name did not take place as employers still place a premium on graduates from "vocational" colleges; furthermore, students also attach a premium to higher chances for employment as graduates of vocational colleges and see better opportunities to become entrepreneurs. The number of applicants for these schools far exceeds their enrollment capacity. Although the project is ahead of industry in technology and many graduates will be under-employed technically, this is a necessary step in modernizing industry and fully supports the objectives stated at project identification (see para 5). 14. An important project goal was the Institutional development objective to assist the Council of Higher Education (YOK) to develop the capacity to efficiently plan, monitor, and coordinate higher level technician education in  Turkey. This objectLve was not achieved as defined at appraisal, and, more importantly, it is not being achieved under the follow-up protect which also has a substantial technical assistance component. YOK has not todate staffed satisfactorily the Industrial Training Unit (ITU), resulting in a lack of transfer of knowledge and expertise from the technical assistance. The technical assistance itself did contribute significantly to the development of the concept of TTC model to deliver technical level education in Turkey. It is also important to note that, under the technical assistance contract, local and foreign experts worked jointly which guaranteed the success of the program, and its relevance to Turkey. Lessonst (ii As institutional develonMent obiectives are also not beina achioeve under tho leconfi Industrial Trainina Prolect ILn.2922-TU. the Government should considor agnointina a Zask Force to assess the rol- of YOK. and to asses the offectiveness of the use of Bank fuds for finanoina technical assistanco in such cases. A continued disannointment to the Bank has been the lack of staff in YOK and the lack of integration of the teohnical assistance. Eiiv Failure to stronathen YOK as a lead rofessionsal reaulatorv aaoncy coints to alternative xolutions such as the need for decentralisation and delegation of such resnonsibilities directly to lat universities, orofessional associations. and/or local authorit-es. (b) YOR Project Activities 15. Physical Targets. The construction and equipping of eight TTCs, the development of currlcula in 11 technical program specializations, and the provisions of overseas fellowships for teachers, and TTC managers, were mostly completed as appraised; exceptions were in the underrun of fellowships and the dropping of the petroleum technology program and in-service training component. In terms of student enrollment, at present enrollment is more than twice that envisaged at appraisal--it was estimated at appraisal that 8,000 technical graduates would be produced over a 10-year period; based on today's enrollment, 22,400 graduates would be produced over that period. A much larger number of students can be appropriately trained given the size of facilities and availability of well-equipped laboratories, although the quality of training is not yet the optimum because of shortages of well-trained teachers and lack of training materials. This greater enrollment also responds to the large demand for education at all levels, with applicants far exceeding available place3. Thus, the objective of producing skilled labor for industry is being achieved. 16. Use of Equipment. The instructional laboratory and workshop equipment purchased has been generally of good quality and sufficient in quantity (although in some programs there was excess of certain equipment). The planning and monitoring for the provision of appropriate furniture and laboratory/ classroom arrangement was rather weak for the desired high-tech environment of a TTC. Delays in construction also affected the commissioning and use of equipment which had to be stored for prolonged periods. The textbooks and laboratory manuals have been mostly in English, presenting a problem to instructores; those who have sufficient English knowledge have been able to translate them at their own initiative; generally, the utilization of equipment  has been lse than expected, in particular by teachers who have not had the English language skills. Also, equipment war purchased for schools which do not offer a program; this seemed to be the case for the roads engineering program, where the equipment is sitting idle. In particular, there has been little use of the MV2000 Data General computers because of lack of installation and training in a networked environment. Also, no software war provided for use in the PC environment, which is predominant in industry. Lesson: The aggrooriate use of the oquiDment and curricula in TTCs affects aualitv of anstruction and of qraduates: this grocess should be monitored by YOK, yroviding assistance where nocessary. Lessons are beinq used under tho Second Project to iaorove the use of eauioment and quality of instruction, but additional staff are necessary in YOK to focus on this task. 17. Instructor In-service Training. A decision was made early in the project, with Bank agreement, not to go ahead with the development of an Instructor In-Service Training Program as appraised. The reasons for this decision were not documented specifically, although one reason appears to have been that teachers and TTC facilities would be overburdened if they also undertook this task. In retrospect, this was a mistake for the project, as lack of appropriate teacher training, and lack of teaching materials, has been an important weakness of the project, diminishing the quantity and quality of education being provided at the TTCs. The lack of an in-service training program was further aggravated by: poor English language knowledge of fellows; inadequate instructor training programs overseas which focused on students rather than teachers; and a 30% drop-out rate of trained fellow instructors., 18. A strong staff development program and in-service training is a key to the success of technical education, in particular since many of the present TTC instructors have not had any opportunity to update their skills and learn new technologies. Certain privileged teachers with leadership qualities, have taken the initiative to translate materials and benefit from the equipment and materials available in English; others are very limited in their capacity. Teachers have indicated their interest for in-service training through the use of exemplary teachers and TTC administrators. In future, as TTCs develop, a model for decentralized in-service training should be supported. L4rson: Immediate efforts need to be made by YOK to supoort the start-up of an in-service ,instructor trainina model throuch TTCs. includina 2rovision of laboratorv/ workshop materials. This should be reviewed in the context of the Second Proiect (Ln.2922-TU) suPoortino the development of the four Faculties for technical teacher education. Teachers that participated in fellowships can leave their jobs after completing the compulsory service required, or after refunding the cost of their fellowship. Electronics is one field where teacher retention is difficult as the private sector offers more attractive salaries and opportunities.  (c) YOK Project Impact 19. Notwithstanding certain deficiencies mentioned above, the ,roject has brought high benefits to the training of skilled technicians to improve industrial quality and productivity. Based on interviews, one concludes that teachers and industry are appreciative of what the project has brought to Turkey, recognizing that this is an important step in improving labor productivity. Industrialists are now beginning to recognize the benefit. of a relationship with their teaching institutions, not only because of the skilled manpower they will receive, but because of the assistance TTCs can provide for improved technology in manufacturing, and quality control through testing and research services.2 Although TTCs are not operating to their potential because of recognized weaknesses, they are expected to overcome these problems as they gain experience and continue to receive support from YOK's Industrial Training Unit (ITU) responsible for project management and vocational higher education in YOK. Substantial improvement has already been observed from one year ago when Centers were less experienced. (ii) Industrial Training and Developoent Center (SEGEM) (15% of costs). (a) SEGEN Project Objectives 20. The SEGEM component was to address two of the main reasons for low labor productivity in industry: (a) the lack of an appropriate institutional framework for in-service industrial training programs; and (b) the lack of a financial incentive for employers to provide training, resulting in poor use of existing manpower in industry (see para. 2). The main policy objectivea of the component were generally achieved as project activities financed a body of krawledge which assisted in the adoption, in April 1990, of a national policy for in-service, on-the-job training programs for small and medium scale industries (KOSGEB). This new law created a powerful and large agency, empowered with an annual budget of US$400 million. A substantial source of revenues for this budget would come from earmarked taxes to industry. SEGEM was instrumental in developing and assisting in the passage of the legislation. 21. specific program objectives to train middle level manpower and professional staff were partly achieved, as the component was late in taking off, and did little tralning in the last project year. SEGEM's training programs were offered mainly to the larger public sector companies which were able to pay for services. At the time of appraisal SEGEM was training annually about 4,800 participants for the public sector and 2,000 participants for the private sector. The number of participants for the public sector peaked in 1987-88 (6,319 participants), and decreased through 1990 because of the indecision about SEGEN's 2 Some TTCs have obtained approval from the Turkish Standards Institute for testing and certification of products.  - 9 - legal status. For private sector enrollment, the number decreased throughout the project life. SEGEM staff also provided consultancies to industry, with an average of three per year during the project years, through 1989. SEGEM's new mandate iu to provide in-service-training for private small and medium enterprises, with no direct charges to the enterprise. Lesson: Coat recovery is feasible for in-service traLnine from woll-establish&d laraer firms in Turkey. noe Government should omot the develonm0 nt of arivate-sector. fg-charaine trainina institutes.. (b) BEGEt Project Activities 22. Physical Targets. The project did meet its physical targets through contracting technical assistance for the development of a National Industrial Training System (NITS), and through the development of programs for in-service training activities at its newly equipped training center. SEGEM also received support through the project to develop an assistance program to help enterprises execute their own training programs. However, a pre-investment/feasibility study for a second project was not carried out becaune of SEGEM's instability during the project years. Fourteen major reports were produced towards "A Proposal for a National Industrial Training System for Turkey" (available in files). The main conclusions were that there is a great need for coordinating industrial training in Turkey through the establishment of a committee at the national level, the development of occupational standards and a national accreditation system, and the improvement of labor market information systems. Unfortunately, few SEGEM staff were able to work closely with foreign experts and it is anticipated that it will be difficult for SEGEM to continue workings towards a national industrial training system g.ven its limited staff. Lesson: For technical assistance exoenditures. the government should keep in mind that the benefits from these exoenditures in terms of institutional develooMent and orofessional staff developnent are directly Po&oMrtional to the number of counterpart staff 2rovided to work with foricin experts. * oovernment should give oreat imyortance t__ monitorina the iolementation of such arooraus to onsure that the maximum benefit is derived from these expenditures. 23. There were two main reasons for the long delays in the implementation of this component: (a) problems between the client and the consulting firm on the appropriate candidates and activities to develop a proposal for a National Industrial Training System; and (b) the final approval of the legislation establishing KOSGEB, which was expected in 1983, and was passed at the conclusion of the project, in April 1990. As A result of these delays, the Ankara Training Center, equipped with project funds, became operational only in 1991. (c) 5E303 Project Component Impact 24. As mentioned earlier in the objectives (para. 21), SEGEN was instrumental in the passage of the new Law that goes far beyond SEGEM's operating objective of providing training and consultancies to industry. It is a  - 10 - comprehensive program designed to assist small and medlum size industries to support their development to compete effectively with high quality foreign industries. To provide these services, eight Centers will be established, including entrepreneurship development, quality control, marketing, and financing. SEGEM's main role is expected to be in the provision of training, in particular in the 11 program specializations supported by the project, and will assist enterprises to develop new technology and train employees in modern production methods. At present, SEGEM estimates that 240 seminars ;.111 be offered in 1991 to workers in small and medium scale industries, free-of-charge, including accommodations at their Ankara location. SEGEM also plans to continue offering training on-site, with two-hour seminars. Adequate staffing is now the main concern for the operation of the Centex. (iii) State Institute of Statistics (S!S) (2% of orolect costsa. (a) SIS Project Component impact 25. Although small, this component achieved well its objective of providing fellowship training to a number of its staff, to improve quality of its national statistics, in particular, national economic indicators. Eighty-eight percent of staff (or 36 of 41) that received fellowships have remained in SSS, and the opportunity provided them with professional development within the Agency. All of the fellowships were carried out in the US through the Census Bureau. SIS conscientiously administered this program through careful selection and language training for its fellows, to ensure that maximum benefit would be derived. flu received no technical assistance for the oroanization and administration of the proaram. and should be recoanized for their effective management. F. Proigct Sustainabilitv 26. YOK Project Component. An average of US$3.3 million has been financed by the Bank per TTC in equipment and fellowships only. There are three key factors that need immediate attention to guarantee that the expected benefits from this Loan and for the Industrial Training II Loan to produce positive returns: (a) the establishment of an in-service instructor-training program through model TTCs, to improve the knowledge of the use of the equipment, provide more training materials in Turkish, and assist in organizing laboratory sessionso ongoing workshops organized by consultants under the Second Project are insufficient to increase the use of the equipment and teaching quality-- Additional funding should be provided for model TTCs to develop and organize instructor training and conduct workshops taught by teachers who excel in their areas (see paras. 16-17); (b) the monitoring by YOK's ITU, of the provision of an appropriate operating budget to guarantee a minimum staffing, and of supplies and maintenance for the Centers; and (c) the critical need to assess the effectiveness of YOK's ITU and staffing to oversee technical and vocational higher education in Turkey (see paras. 6,14).  - U1 - 27. 5X363 Project Component. Because of the strength of the now legislation, 8S3EM has secured excellent resources to maintain operations at a high quality level. However, because of recent Government hiring restrictions, SEGEM will not have the expected staffing, and may continue having difficulties in attracting and retaining staff. The Bank will continue monitoring progress in the start-up of the Ankara Training Center, and through the Ministry of Industry and Trade, developments in making the new legislation operational. G. Bank Performance 28. The project was carefully prepared by the Government with Bank assistance, and this is reflected by the fact that it was successfully completed. The preparation and appraisal of the project were carried out with relatively modest Bank staff resources equivalent to a total 83 staff weeks. Supervision resources were below average with 7.6 staff-weeks per year. 29. The Bank identified at Project Preparation, the risk of not achieving the desired institutional development objectives of the project, and accordingly, more technical assistance was included in the project design; it was also agreed that greater supervision would be required. However, the technical assistance did not result in institution-building, and no additional supervision resources were spent. Lessons The same situation is reo-atino itself under th onoina Second Prolect (nLa 2922-TUb. where tecbnical assistance is not achievins the desired results (car-as 6 141. 30. Project execution is recognized to be an imposition on any implementing agency, in particular given their inherent weaknesses. Project management requires a multitude of skills to ensure the timely execution of project investment activities as well as management of sector policy adjustments and daily project admLnistration, including procurement, accounting, and auditing. The importance of project management and supervision is underestimated by both the Bank and the Borrower given the limited resources given to these tasks. Lesson: The Bank and the Governmnt should work closely in aivina orioritv to secure the necessary additional resources to execute and sunervise H. Borrower Performance 31. All three implementing agencies fully supported the project from preparation through implementation and were cooperative with the Bank. They performed relatively well in contracting the requLred technical assistance, and in making available the appropriate local counterpart funds. Their willingness to work with foreign and local consultants was generally good, with some exceptions which caused delays in project execution. 32. YOK failed, however, to act on an issue that was repeatedly raised by almost every mission for the seven years of project implementation--to provide  - 12 - the adriquate full-time staff for project management and for overseelng technLcal and vocational higher education. This contlnues to be an issue under the follow- up project. 33. SEGEM and SIS were very cautious ln using Bank funds, and enoured that expenditures were justified, although this delayed the project and diminished benefits. I. Dank-Borrower Project Relationshin 34. The main strengths of the Dank-Borrower relatlonship has been the good will to continue to address the weaknesses in the sector, with which implementing agencies have to work with. Generally, work relationshipo were good, even though basic problems persisted throughout the length of the project. J. Consulting Services 35. YOK utilized a substantial amount of Bank funding (US$5.5 million) for services of consultants through TEKSIS/BC/GE. The second project provides a further US$7.5 million also for experts services only. One of the main objectives of this substantlve technical assistance is to promote the development of YOK; however, this is still not taking place under the Second Loan, and there appears to be a lack of commitment to take action and assume responsibilities directly and with limited technical assistance. Lesson: SPO and Treasury need to- address the staffina constrAints in the education sector aaencies that haye led to heavy reliance on costly technical assistancze to be used even for sianle administrative and accountina duties. 36. SEGEM used the consulting services of the ILO. SEGEM initially turned down several candidates, and did not find satisfactory the work of consultants. Once agreements were reached on the revision of the work programs, the consultancy continued smoothly and was productive. K. Findinos and Lessono 37. At present, a Second Industrial Training Project (Ln. 2922-TU) is under implementation, expanding the model of Technician Training introduced under this pilot project to 20 additional TTCs; the Second Project also provides further technical assistance for YOK. Under thls firat Project, objectives regarding institution-buildlng and teacher development were not achieved, but Bank financing for these activitles continues under the Second Project. The Government should address the weaknesses of YOK that persist and are still preventing the same objectives from being achieved under the ongoing Second Project. Progress should be demonstrated in these areas before further Bank- funded expansLon of the technlcal and vocational education system continues.  - 13 - 38. The following recommendations need to be addressed in the context of the ongoing iniplementation of the Second Industrial Training Projects Us- of ZTC* lVocational Collesasu as Communitv Facilities: A policy should be adopted by the sector to encourage the use of education and training facilities by the community and industry. Mass media may be used to promote continuing education offered during evening hours and the summer, in particular for women. A separate administrator for extended programs could be appointed in schools, who would oversee the operation of these activities. |"nitoring and Xvaluation systems: One of the objectives of this training project was to provide for graduates a direct link to employment opportunities. The success of training programs should be monitored through the development of a standardized and computerized system to: (i) follow-up on employment of graduates (perhaps through Social Security Numbers); (ii) determine employer satisfaction; and (iii) monitor compliance by TTCs of quality teaching standards until testing and certification can be applied uniformly (see para. below). Standardized Graduate Examninations An Vocational Colloaes of Higher Education (TTCUbs For formal two-year programs offered in these vocational colleges, standardized graduate examinations should be established as a step to ensure quality standards across TTCs. This may be first initiated in the 28 TTCs supported by the two Industrial Training projects as they are consistent in quality of resources. Proiect Staf fina is Essential for- Institutional Develogment:i The institutional development objectives of the project fell far short of being achieved mainly because of lack of permanent counterpart staff in the implementing agencies. To ensure better prospects of achieving these objectives in future projects, it is recommended that by Loan Negotiations, terms of reference for key staff in the implementing agency be finalized, and that their contracting should be a Condition of Effectiveness. In-service Training is Essential for the Use of New Eouipvent and New/UyMraded Curricula. Well planned, national in-service training is essential to update the skills of existing teachers if new equipment is to be used effectively and efficiently; at present, there are too many teachers whose technical knowledge is outdated, and who have not benefitted from continuing education. The magnitude of this problem is serious as teachers have trouble using equipment and lack teaching materials. The extensive fellowship program financed under the project was not effective in making teachers proficient in the use of specific equipment and underetand complex training materials, almost always available in English only. Overseas fellowship programs serve general educational development objectives, while in-service training is necessary for knowledge of new curricula and equipment-specific training. As TTCs  - 14 - develop, they should conduct In-servic^ Teacher Training program., auA a formal system should be developed to support such activities. Intra- _ t Coordingltio & Acgountabilty is Eez9ssarv .g RnsurA the eyvelogealt of the Zucgwtiog and Trainina Sectgor To promote sector development, and improve project managemenf and efficient use of sector financLal resources, the Bank should make it an explicit objective to routinely involve in project implementation issues, both SPO and Treasury/Finance. Specifically in this project the two implementing agencies, YOK and SEGEM were to work closely with Lndustry to achieve sector development objectives; very little of the cooperation envioaged at appraisal took place, and the agencies implemented their programs separately. Procurement of Servic2s and oogds: Handling complaints from bidders was time consuming under this project. More direct assistance to the Borrower and further training is needed by the Bank on procurement procedures to avoid rllegations of misprocurement. The Resident Mission is expected to play a more active role in the area of procurement and provide training courses on a continuing basis. Audit Comolisace. Although audit reports were systematicaily carried out by Treasury Auditors, the scope of the audits was very limited; no site inspections were carried out or assessment of project expenditures, and no management letter was prepared. As improving Treasury auditors is a long- term solution, for social sector operations in the near future, private audits should be required, with Terms of Reference agreed during negotiations. Also, stricter audit requirements are essential to operations where very large technical assistance contracts are involved.  - 15 - PART II. PROJECT REVIEW FROM THE BORROWER'S PERSPECTIVE The following are the evaluations submitted by the three implementing agencies. A. XQZ (1) Project Achievements In general all objectLves of the Project have beeni achieved in time. 20 curricula on the main 12 areas (Control and InstrumentatLon, tlecolmunic.tions, industrial electronica, electrical *ngineering (4), mechanical englneering (2), air conditioning and refrigeration (2), foundry technology, agricultural engineering (2), computar science, petroleum engineering, petrochemical and refinery, construction technology (3)), have been developed. 199 instructors were trained abroad during the project period. Training have been provided to some YOK administrators and project school managers abroad. In addition, project school managers had undergone various managemnt programs. The most up to date equipment have been procured and put into use in eight TTCc. Already existing school-lndustry link has been tightened by industry based training and by establishing better functioning advisory boards. The TTCU are now offerLng various courses to the community, enrollment of student exceeded figures foreseen at the Project Appraisal Report. TTC instructors already prepared some 20 course documents and books. The TTCc have started to function as quality control institutLons to their communities. Improvements encountered at t}soe TTCs are considerable in every respect. But additional time is needed for further progress in curriculum implementation, equipment utilization and services provided to the community. (ii) Bank Performance Close cooperation between the Bank and the Borrower is essentlal. The projects initiated during the years of 1984-1985 suffered lack of strong cooperation. As an example, in the first industrial training project, in-service teacher training function was assigned to the Izmir TTC, currlculum development actlvities were assigned to Izmir and Istanbul TTCo. The existing 3 Technlcal Education and 1 Vocational Education FacultLes should be considered as institutions to provide in-service teacher training and curriculum development. Besides, the improvement of these institutions in the first project should have been taken as priority need. High turn over of the World Bank experts assigned for particular projects is causing some misleading evaluations. Providing a thorough orientatlon to the newly assigned experts about the educational system and legal structures of institutions may help considerably to the function of supervision. In this respect, the functions of the Resident M$ision could be extended.  - 16 - B. 8EEM SUMMARY AND BACKGROUMD The Industrial Training and Development Center (SEGEM) was founded in 1978 as a semi autonomous Industrial Training Agency attached to Ministry of Industry with the main objectives of - Arranging training programmes for newly employed university graduates - Upgrading skills of professionals in industry - Developing the skills of its own staff - Providing documentation and infozmation services to industry To further __.'engthen SEGEM's capabilities, the government signed a loan agreement (US $ 3,620,000) with the World Bank in 1984 as part of an overall larger loan to fulfill the objectives of: 1 - Designing and coordinating National industrial training system 2 - Providing equipment for the production of training materials and audiovisual aide 3 - Expanding the scope and quality of SEGEM's Industrial Training activities 4 - Undertaking engineering and feasibility studies for future technical programmes As a starting point in the implementation of the project, SEGEM prepared a letter of invitation for consultancy in technical assietance based on guidelines provided by IBRD. Twenty four organizations submitted quotations and SEGEM evaluation committee ranked ILO in the first place among the 6 short listed organizations. After negotiations between SEGEM and ILO US $ 1,869,275 was allocated for the execution of part 8-5,6 of the loan agreement by ILO on the lasis of expenses plus 13% overhead charges, thus allocating the remaining US $ 1,750,725 for the procurement of equipment and materials as stated in part 4-A of loan agreement. ILO recruited thirty one foreign experts for a total of 154 months, arranged 47 overseas fellowship programs for 29.44 months and procured US $ 241,022 worth of audiovisual equipment during the project for a total of US $ 144,394. The remaining amount was reallocated for the purchase of laboratory equipment and materials in addition to the initial allocation of US $ 1,750,725.  - 17 - The final report prepared by ILO is included in the appendix to be referred for further information. Equipment and materials for the following technology laboratories have been procured through international and local biddlng and a "training center of excellence" has been established. - Hydraulics Lab. - Pneumatics Lab. - Flexible manufacturing systems Lab. - Heating, ventilating, air conditioning, refrigeration Lab. - Non destructive testing lab. - Welding Lab. - Fire alarm and extinguishing systems Lab. - Computer Lab. - Electronics Lab. - Electricity Lab. At project and a law had been passed by the Parliament (April 1990) to merge SEGEM into a larger organization, KOSGES, with basic objectives to support the Small and Medium Industrial Sector through loans, technical asseitance, training and consultancy. The law also provided a legal base to continue the programs which SEGEM had been undertaking. DISCUSSION AND RECOMMENDATIONS A) Assee3ment of achievements of the project objectives The project has been very successful in its objectives to strengthen SEGEM's activities in scope and quality by establishing a trainlng center of excellence. The functions of training and consultancy which SEGEM had been undertaking have easily been incorporated in XOSGEB to support the development of small and medium industries and 50 training programs have been arranged to date with more than 200 more planned for 1991. SEGEM's modern training laboratories has enabled 1OSGE0 to offer immediate services to small and medium enterprises. An audiovisual equipment and training materials production unit has been established which also could be very easily incorporated in KOSGEB to continue its activities. SEGEM staff have been trained by foreign experts to develop their own training capabilities and in various subjects such as modules of employable skills, occupational stnndards and training methodology, thus they became qualified to continue activities after KOSGEB took on its responsibilities. Overseas training in various technical fields was also offered to SEGEM staff to strengthen their capabilities. The consultants assigned to design the framework of a National system produced 14 technical reports including draft legislation to incorporate the system into  - 18 - an overall human resources development and employment program which provided appreciable contribution to the SPO/WB. task force research project. Conclusions and recommendations provided by theme reports will be given due consideration by KOSGEB to satisfy the great need for coordinating Industrial training in Turkey, an issue which K(SO5E is well aware of and willing to undertake. As for the industrial training consultancy facility, the technology training equipment will again provide substantial aid to give KOSGEB the capability to serve as a center to develop new technology and to traln employeos in modern methods of productivity improvement. B) Assessment of the Bank's performance The Bank was quite supportive and cooperative during the implementation of the project but substantial delays experienced in dlsbursement process especially the reimbursement of L/Ce caused difficulties and led to further delays in procurement. The borrower thinks that it is useful for the borrowers to obtain more detailed, reqular, statements of expenditure from the Dank ehowing the amounts debited from the loan (and their USS equivalents) in order to be able to check out the balances regularly and decide on further expenses. C) Assessment of the Borrower's perfcrmance The loan has been almost fully disbursed which indicates that the selection of appropriate candidates to be employed as experts and the pending legislation to formalize the status of SEGEM and SEGEM's being instrumental in the passage of the new law. Because of the entitlement to severan( pay a substantial amount of SElEO personnel resigned and SEGEM does not .;4 11 have the expected staffing due to recent hiring conatraints, for this reason the technology laboratories are not perfectly operational yet. C. State Tnstitute of Statistics (SIS1 Industrial Training Project 2399-TU Part C which was allocated for the State Institute of Statistics was successfully completed at the end of 1990. This component covered only overseas fellowship training in statistics for SIS staff. The project achieved its objective of providing fellowship training to a number of our staff, improved quality of our national statistics; in particular, various fields of economic statistics and computer usage.  - 19 - 8I8 completed the fellowship program through the US Census Bureau Contract. A total of 41 SIB staff received 207 man/months of training in the USA at the Bureau of Labor Statistics, bareau of Economic Analysis and International Statistical Programs Center. All candidates participated in refresher training in English at the Turkish American Association in Ankara before going to the USA. We have found the fellowship program highly useful because our returning staff have greatly contributed to the work of our institute, the training has assisted in their professional development, and allowed many of them to be promoted to more senior posts. SI8 would like to express their sincere thanks to the World Bank staff who assisted in managing the project successfully.  - 20 - PART III: STATISTICAL INFORMATION Table 1. Related Bank Loans ------------------------------------------------------------------__------ Project Title/ Year of Loan Number Purpose Approval Status -------------------------------------------------------------__----------- Education Project Secondary Technical Educ. 1971 Closed, 1981 (Loan 748-TU) Industrial Schools Secondary Technical Educ. 1985 Ongoing (Loan 2536-TU) Non-Formal Voc. Trg. Vocational Training 1987 Ongoing (Loan 2776-TU) industrial Training II Higher Technical Education 1988 ongoing (Loan 2922-TU) (Expansion of Ind. Trg. I) National Education General Primary & Secondary Ed. 1990 ongoing (Loan 3192-TU) --------------------------------------------------------------__-----------  - 21 - Table 2. Proiect Timetable Chronology Planned Actual --------------------------------------------------------------__----------- Issues Paper: 09/14/82 Identification (Note #1) 10/18/82 11/21/82 Preparation (Note #2) 02/09/83 02/14/83 Appraisal (Note #3) 05-06/83 05/23/83 Loan Negotiations 12/15/83 02/14/84 Board Approval 03/27/84 Loan Signing 04/16/84 Loan Effectiveness 07/16/84 09/18/84 Project Completion 12/31/89 12/31/90 Loan Closing 06/30/90 12/31/90 -----------------------------------------------------------__------------- COMMENTS REGARDING ISSUES RAISED AT EACH STATE OF THE PROJECT CYCLE: NOTE 1: The identification mission raised the issue of selection of the appropriate implementing agency. One PIU and one lead agency was to be chosen (either YOK or SEGEM) and they were to work closely in the YOK TTCs and with local industry. The issue was to be addressed durlng Preparation. NOTE 2: The issue mentioned above regarding project management was resolved as each agency was able arnd willing to execute their own components. It was proposed that YOK would also depend on its own channels to develop links with industry. The Bank 'would encourage collaboration, and the agencies gave assurances of their working closely during project execution. The preparation mission raised the issue that there appeared to be an absence in YOK of a well-defined management system for the administration and development of the vocational (meslek) education programs. YOK gave assurances that this would be addressed. Technical assistance would be provided to assist YOK in developing its management structure. NOTE 3: The pending legal status of SEGEM was raised at Appraisal as an issue, as SEGEM's existence was approved only until 1984, with the completion of a UNIDO projectl however, a law to define its permanent status was to be enacted by end 1983, and the Ministry of Industry provided assurances that the legislation was of priority.