Tunisia - Higher Education Restructuring Project

Document of The World Bank FOR OFFICIAL USE ONLY MICROFICHE COPY Report No. 9795-TUN Type: (SAR) EXPERTON, / X35176 / H-4107/ EM2PH ReportNo.9795-TUN STAFF APPRAISAL REPORT REPUBLIC OF TUNISIA HIGHER EDUCATION RESTRUCTURING PROJECT FEBRUARY 26, 1992 Population and Human Resources Division Country Department I Middle East and North Africa Region I 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.  REPUBLIC OF TUNISIA HIGHER EDUCATION RESTRUCTURING PROJECT STAFF APPRAISAL REPORT CURRENCY EOUIVALENTS (As of October 1991) Currency Unit - Tunisian Dinar (TD) US$1.00 - TD 0.92 TD 1.00 - US$1.08 FISCAL YEAR January 1 - December 31 GLOSSARY OF ABBREVIATIONS ASAL Agriculture Sector Adjustment Loan CRU Committee for University Improvement (Comitd de Renovation Universitaire) DAF MES Administrative and Financial Department (Departement Administratif et Financier) ENS Teacher Training College (Ecole Normale Superieure) ENSET Training College for Technical Teachers (Ecole Normale Superieure d'Enseignement Technique) EPA Public Establishment with Administrative Purpose (Etablissement Public a caractere administratif) ETSL Education and Training Sector Loan FSR Foundation for Scientific Research (Fondation pour la Recherche Scientifique) IST Higher Technical Institute (Institut Sup6rieur Technique) ISET Higher Institute of Technology (Institut Superieur des Etudes Technologiques) MES Ministry of Education and Sciences (Ministere de l'Education Nationale et des Sciences) PERL Public Enterprise Restructural Loan PNRU National Program for University Improvement (Programme National de Renovation Universitaire) SAGES Normative Resource Allocation System (Systeme d'analyse et de gestion de l'enseignement sup6rieur) SAL Structural Adjustment Loan SIVP Program financing internships in industry (Stages d'insertion dans la vie professionnelle) UEPP MES Evaluation, Projects, and Programs Unit  FOR OMCIAL USE ONLY REPUSIUC OF TUNISIA HIGHER EDUCATION CSTRUCUING PROJE STAFF APPRAISLUREPOR TAUSe Of Cone Loan Summary . Basic Data v I. ECONOMIC DEVELOPMENT AND HIGHER EDUCATION . Background ........ 1 The Higher Educaion System. 3 Major Issues in the Higher Education Sector. 6 A. Imbsance btween higher education output and labor market needs .6 B. Low internal efficiency and the high cost per graduate. 7 C. Overcentralizad management, and Inefficient distbution and use of available resour es. 9 The Governme's Setor Strategy .10 Expeience with Past Bank Lending .12 Rationale for Bank Involvement .13 IL THE PROJECT .14 Project Objectives and Scope .14 Project Description .14 A. The creation of Higher Institutes of Technology (ISETs) .15 B. The National Program for Universky Improvemernt (PNRU) .1 C. The strengthening of MES capacities and project management .20 111. PROJECT COSTS, FINANCING AND IMPLEMENTATION .23 ProJect Costs .23 Project Financing . 26 Procurement ...... 27 Disbursements ...... 30 Implemenation and Management . 31 Supervision, Monitoring and Evaluation .32 [V. ENVIRONMENTAL IMPACT, BENEFITS AND RISKS .34 V. AGREEMENTS REACHED .35 ANNEX I: STATISTICAL ANNEX .39 ANNEX II: DESCRIPTION OF THE NEW TECHNOLOGICAL INSTITUTES (ISETS) .49 ANNEX III: DEVELOPMENT OF THE ISET TEACHER TRAINING CAPACITY .59 ANNEX IV- NATIONAL UNIVERSITY IMPROVEMENT PROGRAM .6 ANNEX V: INSTITUTIONAL STRENGTHENING COMPONENT .70 ANNEX VI: DISBURSEMENT SCHEDULE .75 ANNEX VII: BACKGROUND DOCUMENTS AVAILABLE IN FILES. 76 This report is based on the findings of an appraisal mission that visited Tunleta in October, 1991. Hission members wvr. William Experton (Mission Leads: and Education Econocdeit); Josephine Douek-Eykin (Science and Teehnolowy Specialist); Claire Voltaire (Operations Analyst); Gustaaf Brent Van tampon (Consultant Architect); Jacques Maseran (Consultant, Technical Educator) and GuyTllAin (Consultent. Adiinsetrator) ZmaLliaafsSz: Willam Experton (M1H11); DivLsLon CnhL*: Andrew Rogerson (lMIPS); Drector: Pieter Bottelier (MIl); Eg!r rrLcs: Peter Hoock (APTD) Jail Salmi (PlEE). 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.  REPUBLIC OF TUNISIA HIGHER EDUCATION RESTRUCTURING PROJECT STAFF APPRAISAL REPORT Loan Summary Borrower: Republic of Tunisia A&2un&: US$75 million equivalent Terms: 17 years, including five years grace, at the standard variable interest rate. DescriRtion: The proposed project aims at making the higher education system more cost effective and responsive to the needs of the country. More specifically it will: (i) diversify the higher education system in order to improve the output of a trained technical and managerial labor force; (ii) provide incentives to universities to revise curricula to enhance the quality of teaching and learning, increase the relevance of teacher training programs, reduce the average duration of study, and improve internal efficiency; (iii) strengthen the planning and managerial capacities of the higher education system and implement a normative system for resource allocation across and within decentralized higher education institutions. The main components of the project will be: The creation of a new generation of Higher Institutes of Technology (ISET). These institutes would be geared towards labor market needs and would offer short programs aimed at training technicians and middle managers at a more effective cost per graduate. Five ISETs would be developed in the main economic and industrial regions (Tunis, Nabeul, Gabes, Sfax and Sousse), with specific characteristics which represent a radical departure from the conventional university framework: an enrollment limited to 1500 to 1800 students per ISET; an intensive program of about 2000 hours including compulsory internships in businesses and selective entrance requirements. Curricula would include disciplines related to industry (e.g. mechanical, electrical and electronic engineering, and maintenance) and service (e.g. management and marketing) sectors adapted to local enterprises and regional employment characteristics. Their legal status would allow for increased financial and administrative autonomy, participation of employers in the management board, ability to charge fees for services, recruitment of professors under fixed-term contracts and offering of training contracts to enterprises. To reduce the dramatic shortage of technical teachers (1,100 positions in the  v ii - existing institutions, of which 251 are foreign teachers) and minimize the brain drain inharent to overseas-educated post- graduates, a permanent training capacity will be developed in Tunisia. It will train the required (600) technical teaching staff for the ISEts under the project. The creation of a National Program for University Improvement (PNRU): This program would channel funds, through a competitive and transparent process, towards existing universities with a view to increasing their internal and external efficiency and improving the quality of instruction and learning. These resources would be used as an incentive for universities to reform their programs and curricula. Sub-projects proposed by universities would be selected by a pluridisciplinary committee (the Committee for University Improvement, CRU). Resources would be allocated according to well- defined selection criteria and operational guidelines included in a procedural manual developed before appraisal and already used by universities in a draft form. The selection criteria reflect the main features of the Government reform program: new undergraduate study programs, diversification of streams to increase career options, improvement of secondary teachers training programs, and reorganized doctoral studies. The strengthening of the planning and managerial capacities of the higher education system: Planning and management would be improved at both MES and higher education institutions level. This would involve: the design and implementation of a normative system for resource allocation and of a performance-based budgetary allocation system; the introduction of appropriate management information systems, in particular with regards to student admissions and records, facility utilization and course timetables; the establishment of an evaluation body and the implementation of an accreditation system for the higher education system; the training of university administrative and management staff; and the strengthening of the Ministry of Education and Sciences (MES) organizational structure to implement the reform program, including all project components. Aengfits: The project is expected to make higher education more cost- effective and more consistent with the country's needs and resources. An improved response from the higher education system to the demands of the economy, i.e. producing graduates with the appropriate skills at a lower cost, would lead to increased productivity and growth. Risks: The success of the reform being implemented by the Government will depend upon the ISETs' ability to fulfill their mandate as originally laid out in their statute, as well as the willingness of the university community to implement the reform program. These risks have been reduced through extensive Government consultations with the academic community since 1990 to ensure participation of  - iii - all concerned parties in elaborating the objectives of reform and the measures to be implemented. In addition, the project will minimize the potential impact of these risks by: creating ISETs as independent entities outside the university system, employing their staff under new conditions of service and providing them with appropriate training ; and using the University Improvement componen; and the new budgeting procedures as incentives for individual university departments to buy into the reform process.  -iv - - - OT MILLION - U8$ MILUON LOCAL FOREIGN TOTAL LOCAL FOREIGN TOTAL ESTIMATED COSTS HIGHERINTITUTESOFTECHNOLOGY (ISET) Program Ovp t 0.2 0.3 0.5 02 0.4 0.8 Conseructlon 23.3 10.5 34.1 25.3 11.5 37.1 Equipment & Ped.materala 2.0 14.8 17.1 2.8 1B.$ 15.8 Human Resourc" ODvelopment 6.3 112 17.5 6.e 12.2 19.0 Sub-11aI 323 36.9 6.2 35.1 402 7812 NATIONAL PAORAM FOR UNIVIERSTY IMPROVBJENT(PNRU) 52 22.t 23.5 6.3 24.7 31.0 MANAGEMENT & PLANNING CAPACITIES Reources allocation ysem 012 0.2 0.4 0.2 0.2 0.5 Management and Maintenance system. 0.2 0.6 0.8 0.2 0.7 0.9 Evaluation 0.1 0.2 0.3 0.1 0.1 02 Management Training 2.2 0.8 3.0 2.4 0.9 3.3 Project management o.e 0.4 1.2 0.5 0.5 1.3 Sub-to 3.4 22 6.6 3.7 2.4 6.1 mamma mama manmm mamma MAmNIa =agog= TotalSass Cogs 41.5 61.5 103.3 45.1 Eli 112.3 PhyIca Contingencisa 12 1.4 2.6 1.3 1.5 2.5 Pdoc Contngencies 4.5 6.7 102 4.9 62 11.1 TOTAL PROJECT COSTS 472 69.0 1161 51.3 75.0 126.3 FINANCING PLAN Govenment 472 472 51.3 51.3 IBRD 69.0 69.0 75.0 75.0 Todal 74 0 20 1162 51 7Z 120 |LOAN DISSURSEMENT SCHEDULE (US$ MILUON) BFank FiaaYour 93 94 95 90 97 Os 99 Annual 5.5 12.5 15.5 19.5 14.0 7.0 1.0 Cumulatve 8.6 15.0 33.5 63.0 07.0 74.0 75.0 |ECONOMIC RATE OF RETURN Not applicable 1 Ineluding US$ 5.6 mIlfln In tas and duts Total may not add up due to rounding.  - v - REPUBLIC OF TUNISIA HIGHER EDUCATION RESTRUCTURING PROJECT STAFF APPRAISAL REPORT Basic Data Cuntry Data Base Xgal Per Capita Income (US $) : 1,420 1990 Total Population (millions): 8.1 1990 Population Growth Rate (X) : 2.2 1989 Illiteracy (population over 10 years of age) 37.1 1989 Nale Illiteracy Rate (males over 10 years of age): 26.3 1989 Female Illiteracy Rate (females over 10 years of age): 48.1 1989 Urban population (X of total): 54 1989 Education Enrollment Data Primary Enrollment (grades 1-6) 1,397,408 1990/91 Lower Secondary Enrollment (grades 7-9) 294,789 1990/91 Upper Secondary Enrollment (grades 10-13) 190,996 1990/91 Net enrollment rate (age 6 to 13) 88.21 1990 Boys 93.9X 1990 Girls 82.3X 1990 Higher education: Passing rate at the end of secondary (baccalaureat) 29Z 1991 Number of baccalaureat holders: 17,821 1991 Higher education enrollment: 68,535 1990/91 Enrollment as percentage of age group 20 to 24: 8.51 1990/91 Percentage of females in higher education: 39.41 1990/91 Number of graduates of higher education: 5,552 1990 Public Exoenditure in Education Total Education budget as X total government budget: 17.9 1991 Total Education budget as X of GDP: 5.9 1991 Education recurrent budget as X of government recurrent budget: 24.7 1991 Education investment budget as X of government investment budget: 5.4 1991 Higher Education recurrent budget as 1 of Education recurrent budget: 19.1 1991 Higher Education investment budget as 1 of Education investment budget: 41.8 1991 Higher education total budget as X of Government total budgz.t: 3.8 1991 Higher education total budget as 1 GNP : 1.3 1991  REPUBLIC OF TUNISIA HIGHER EDUCATION RESTRUCTURING PROJECT STAFF APPRAISAL REPORT CHAPTER I: ECONOMIC DEVELOPMENT AND HIGHER EDUCATION BACKGROUND 1.01 Tunisia is wurking to overcome the difficulties brought about in the early 1980s when high levels of public expenditure growth and State regulation coincided with falling revenues from oil exports. By 1986 the balance of payments had reached a crisis state and, after a short period of demand restraint, the Goveriment introduced reform policies which broadened into a wide-ranging structural adjustment program. The government's strong commitment to this program has been supported by the Bank through six adjustment operations - two Agricultural Adjustment Loans (ASAL) in FY87 and FY89 (Lns. no. 2754 and 3078), the FY87 Industry and Trade Policy Adjustment Loan (ITPAL, Ln. no. 2781), the FY88 Structural Adjustment Loan (SAL, Ln. no. 2962) the FY90 Public Enterprise Restructuring Loan (PERL, Ln. no. 3109) and the FY92 Economic and Financial Reform Support Loan (EFRSL) (Ln. no. 3424-TUN). Having corrected major imbalances, the Government is confronting the problem of determining the efficiency and level of investment needed to sustain an adequate growth rate, while maintaining macroeconomic stability. 1.02 The structural reform program promotes efficiency and growth by removing obstacles to competition (relaxation of domestic price controls, replacement of import restrictions with tariffs, reduction of administrative controls, tax reform, and liberalization of banking). The private sector is expanding as a result of this liberalization, and small-scale industries have an increasing need for a diversified and qualified labor force. Given Tunisia's limited domestic market and the fact that the most obvious import substitution industries are already well developed, the Government is actively pursuing an export-driven growth strategy. Since 1986, export performance has been remarkable, growing at, an average rate of 13.5X per annum. The impending unification of Europe in 1992 and the recent changes in Central and Eastern Europe have heightened the Government's concern for developing a well-educated, highly skilled flexible labor force which will contribute both to creating a manufacturing, processing and services base with internationally competitive domestic enterprises, and to attracting foreign investment. The education and training system will therefore play a major role in meet,ng tle challenge of a rapidly changing economy. 1.03 Tunisia has invested heavily in its human resources, particularly in family welfare, education and training. Progress is already visible in many areas: between 1965 and 1989, infant mortality was more than halved from almost 160 to 52 per thousand, life expectancy at birth rose from 48 to 62 years, and adult literacy rates increased from 15X to 62%. Tunisia intends to improve its literacy rate even more during the 8th Plan by focussing its efforts on the rural population, and more specifically on rural women. An active family planning policy, carried out with Bank and USAID support since the 1960s, contributed to a decline in the total fertility rate from an average of 7 children per woman in  1956 to 3.5 children per womat in 1989. As mortality also declined by 45%, the population grew from 5.6 million in 1975 to 7.9 million in 1989, o- annual growth rate of 2.5%. Tunisia has also achieved a remaikable quantitative increase in school attendance. In 1990/91, 1,398,119 children were enrolled in public primary education (88.2% of the 6 to 13 year-old age group), 485,785 in public secondary education, and 68,535 in higher education (8.5% of the 20 to 24 year. old age group). The financial needs of its education and health sectors will remain significant in the future if Tunisia is to sustain these efforts with a population growth rate of 2.2% per annum. 1.04 Despite these remarkable quantitative achievements, serious shortcomings still exist. Only 1 in 3 children progresses beyond grade 6, 1 in 5 beyond grade 9, and 1 in 20 enters higher education. In a cohort of 1000 children starting at the primary level, only 56 will reach higher education and only 27 will complete higher education. The internal efficiency of the education system is seriously impeded by a lack of facilities in secondary education and the poor quality of programs. Possession of a secondary school diploma (baccalaur6at) automatically qualifies a student to advance ti higher education. The number of qualified secondary school graduates (17,82' in 1991) has been increasing at an average of 8% p.a. for the last four years a 'd will reach 40,000 in the year 2000. The objective of the Government is to increase by 2000 gross higher education enrollment (including overage students) from 8.5% to 14% as a share of the 20-24 year-old group, which implies an anticipated enrollment growth rate of 7.8% p.a. for 1990-2000. The substantial growth of enrollment in higher education has put pressure on public resources. The expanding gap between the recurrent budget growth in real terms, of 4.1% p.a. between 1980 and 1988 and the 7.1% p.a. increase in enrollment over the same period has resulted in a deterioration of students' learning and living conditions in most universities. The anticipated enrollment growth rate of 8% p.a. for 1989-2000 makes urgent action imperative. Containing expenditure through more cost-effective curricula, cost-recovery measures, improvement in budget management and more effective governance of universities is therefore essential. 1.05 The labor force has grown from 1.4 million in 1975 to almost 2 million in 1989, at an average annual rate of 2.7%. Even though this growth has been slowing down since 1985 due to demographic momentum, it still outstrips the population growth. However, the rate of job creation has slowed considerably from 47,000 per year in the first half of the 1980s to 39,000 per year between 1985 and 1989. The unemployment rate for job seekers aged 18 to 54 (316,000 workers), which increased only slightly between 1975 and 1984, rose to 15.3% in 1989. The unemployment rate for the younger age group (18-24) is as high as 30%. While workers with a post-secondary education qualification still find employment more easily than the less educated, their situation has also deteriorated over the last 5 years. According to a 1989 survey, unemployed graduates numbered about 6,300 in 1990; this total stuc'k is equivalent to the number of students graduating aach year. One reascn for this is that higher education is not expanding in conjunction with labor market skill requirements. Tlis results in an increasing mismatch between the type of training offer3d in universities and the skills required to enter the job market. Students' qualifications do not match the skills demanded by potential employers. This is especially so for technicians, managerial staff and secondary school teachers. In addition,  - 3 - graduntes tend to enter the job market at levels and in sectors which do not correspond to their expectations. 1.06 To support the overall adjustment process, the Government is engaged in a program of far-reaching reforms of the education and training system, which are being introduced in two phases. The first phase, supported by the Education and Training Loan no. 3054-TUN (FY 89), is designed to expand education and training and to improve their cost-effectiveness and consistency with the country's medium-term needs. This will be achieved thzough three major policy changes: (i) allocation of a larger share of resources to quality basic education (grades 1-9); (ii) improvement in the quality and relevance of upper secondary education (grades 10-13) while better controlling access; (iii) promotion of pre- and in-service training in collaboration with employers in the productive sectors as well as resource mobilization. Measures have also beea taken to increace placement into existing jobs, particularly for primary and secondary school drop- outs (Employment and Training Fund, Loan no. 3255-TUN). 1.07 The second phase ci: the reform, initiated by the 1989 law on Higher Education and Scientific Research, regrouped faculties and institutions under the authority of six universities and put in place more democratic management structures. It will be suppo- ted by the proposed project. It is designed to restructure higher education to improve the quality of education and its responsiveness to the needs of the country, to increase its cost-effectiveness, and to improve the planning and management capacities of Ministry of Education and Sciences (MES) and educational institutions. This would be achieved by: (i) creating Higher Institutes of Technology (ISET) geared towards labor market needs and offering cost-effective, shorter duration programs aimed at producing technicians and middle managers; (ii) enhancing the quality and relevance of existing university programs; (iii) developing a budgetary and resource allocation system which would provide incentives for efficiency and, in the context of greater institutional autonomy, the development of managerial capacity. tHE HIGHER EDUCATION SYSTEM 1.08 Since independence in 1956, Tur.isia has placed high priority on its human resources and has made considerable progress in developing its higher education system. Since the creation in 1960 of the "Tunisian University", enrollment grew from 2,500 to 68,535 students. In 1990, 5,552 students graduated, compared to less than 900 in 1970. A sizeable full-time academic staff of about 3,900 now exists, of which 87% are Tunisian nationals. It is estimated that 40% of enrollment are first-generation university students (i.e. whose parents hold no university degrees). Women represent 39.4% of total higher education enrollment. The percentage of women differs significantly from one discipline to another: women represent 48.6% of enrollment in Humanities, 37.9% in Law, Economics and Administration, 31.8% in Fundamental Sciences, 51.3% in Paramedical and Medical Sciences and only 17% in Technical Sciences. This distribution is largely determined by enrollment rates in secondary education where girls represent 42.5% and by their low participation rates in disciplines which emphasize mathematics (37.2% in Math-Sciences, 26.6% in Math, 22.4% in Industrial Technics). Despite a substantial growth in enrollment during the last ten years  - 4 - (7.1% p.a. for the period 1980-1989), enrollment in higher education represetits only 8.5S of the 20-24 year-old age group and there is increasingly strong social pressure for access to higher education. To accommodate this, the Government plans to expand enrollment from the present level to 145,000 students by the vear 2000. 1.09 The higher education system cu.rently consists of six multidisciplinary universities comprising 19 faculties and 44 schools and institutes (see Asnex I, table 1). Four universities are serving the Tunis and North areas (Tunis I, II, III, and the University of Zitouna) and receive 70% of the students; 16% of the students are enrolled at the "Central University" in the Sousse and Monastir area; and the 'Southern University" covering the Sfax, Gabbs and Gafsa regions represents 14% of total enrollment. The distribution of enrollment in the five major discipline areas is as follows: Fundamental Sciences 14.6%; Humanities 28%; Medical studies 1z.2%; Law, Economics and Administration 30%; and Technical Sciences 14.4% (see Anne:; I, table 2). 1.10 The higher education system has two types of programs: (a) two to three-year programs of post-secondary studies in institutes leading to a higher technician diploma; and (b) programs delivered in faculties and consisting of (i) a four-year program in faculties divided into two parts of t4o years duration each (first and second cycles) and leading to a master's degree (maitrise); (ii) a two-year post-graduate program leading to a post-graduate diploma (Dipl6me d'Etudes Approfondies, DEA); and (iii) a research program which can lead, depending on the subject, to a third cycle doctorate and/or the State Doctorate which is more theoretical. Medical studies last a minimum of seven years, and engineers have four- (ingenieur d'application) or six-year (ing6nieur d'etat) training programs. All university diplomas are awarded nationally. There is at present no national system for monitoring and evaluating the programs of study. 1.11 The posse.sion of a seco-Aary school diploma (baccalaureat) automatically qualifies students for place in higher education. The baccalaureat is selective; the average -access rate during the last five years was about 30% [28.21 in 1991 (36.7% in the public sector, 10.8% in private schools)]. A centralized computer system allocates students to disciplines and establishments according to their subject-weighted baccalaur4at results, their preferences (three choices) and the size of the student intake in each institution. This selection process, based mainly on mathematics, results in a preferential hierarchy of disciplines and institutions: the best students are attracted to disciplines which offer the best prospects in the labor market, such as medicine, engineering, or management, in establishments with fixed quotas for entry. The system is rigid but transparent. Fifty-five percent of the candidates are given their first choice, 30% their second or third choice, and 15X are not given any of their choices. As a result, they end up in faculties teaching the less valued disciplines such as social sciences or humanities, which are already overcrowded. They are therefore not motivated and have low job prospects. 1.12 The higher education system is financed entirely through public funds and its programs are under the authority of the MES. However, about 20 schools or institutes (which enrolled some 3,000 students in 1989/1990) in specific professional areas such as telecommunications, agriculture, music and aeronautics are managed by their parent ministry. The administration of higher education  remains highly centralized. The MES is responsible for planning all aspects of higher education including budgetary allocation, administration, management, pedagogy, setting staff salaries and allocating assignments to the various institutions, as well as student services. 1.13 At present, students pay practically no tuition fees (DT 2.5 per year) and all financing comes from the Government budget. The share of the higher education recurrent budget in the Government budget has remained virtually unchanged over the last five years. In 1989, it represented 19X of the total education budget and more than 41 of the Government budget. Salaries represent 49.2% of the total recurrent budget, while 15.71 is allocated to institutions for their operating expenses such as library books, classroom supplies, and utilities, and for purchasing small items of equipment and building maintenance (see Annex I, pie chart 1). The remaining 29.2% cover student support in terms of scholarships and payments for board and lodging. 1.14 Student service expenditures cover cafeteria and boarding costs (which represent 10% of total operating budget), scholarships (16%) and loans and miscellaneous grants and services (3%). Cafeteria services are highly subsidized and available to all students; the price paid by the student represents an estimated 15X of their real cost. Housing is available, for a limited duration (3 years for male students, 4 years for female students), to students who qualify according to criteria based on distance and parents' income. The share of the total budget devoted to scholarships is declining compared with its 1984 level (291). Scholarships are available for students from families with an annual income equal to or less than 1,450 DT, a figure which is slightly below the net salary of a primary education teacher with one child. About 451 (30,000 students locally and 1,655 abroad in 90/91) of the total enrollmeut benefit from scholarships. Scholarships amount to 40 DT per month (of which charges for meals and boarding absorb about 60%) and are reduced to 32 DT if the student repeats a year. Post-graduate scholarships amount to 140 DT per month while the average overseas scholarship is 400 DT per month. In 1987, a loan system was set up by the MES to assist students with the payment of their living expenses. The annual income ceiling for eligibility is 4,200 DT. The loan is 400 DT per year with a 2.5X interest rate. It is reimbursed in monthly installments representing 151 of the student's salary after one year in the job market. The loan system is run by the MES rather than the banking system. Its impact cannot be evaluated yet since none of the 4,623 students presently receiving loans has graduated yet, and no repayments have fallen due. 1.15 All university staff are civil servants. Academic staff are employed in one of four grades: assistant, maitre assistant, maltre de conference and professeur. To enter the first grade of assistant, one must hold a DEA. Promotion to the second grade (maitre assistant) is dependent on completion of a third cycle doctoral thesis and on 2 years experience. Maitre de conference are selected among state doctorate holders. Attaining the most senior academic appointment, professor, requires at least four years tenure in the previous grade. Titular professors are tenured and attached to a specific university. Conditions of service for academic staff va-;y according to grade and are based on the number of lectures or practicals to be given each week. While all grades are expected to do research, the system offers few incentives in that regard. For the two senior grades (maitre de conference, professor), this figure is four  - 6 - and a half hours of lectures per week; maitre assistants are required to deliver nine hours of practical or similar work and the assistants 13 hours. Currently the academic year is 27 weeks. MAJOR ISSUES IN THE HIGHER EDUCATION SECTOR A. Imbalance between higher education output and labor market needs 1.16 The university system, which offers non-specialized tralning programs, is not sufficiently diversified to provide students with the knowledge and skills required by the labor market. This is one of the major causes of current graduate unemployment (6,300 in 1990), which mainly affects students from standard academic programs. Seventy percent of students are currently enrolled in academic four-year undergraduate programs in traditional faculties whose main purpose is to prepare students for post-graduate studies. Only 30% are enrolled in vocational programs such as health, engineering, agriculture, commerce and other highly specialized fields. There is little interaction between employers and the higher education system, as exemplified by the low level of contract activity between higher education establishments and industry and commerce, be it for research, problem solving or training. Although university statutes require the participation of non-academics on their governing councils, the influence of employers on the design of new programs remains limited. There have been no tracer studies to determine the means of enhancing the employment prospects of university graduates. In addition, there is no student career counselling within the universities. The lack of available information on the labor market, the rigidity of the reorientation system and the compartmentalization of programs prevent students from adapting their studies to the needs of the market. There are very few resources available to inform students of the needs of the labor market and no possibility for them to choose between options in the program so as to reorient their studies accordingly. Finally, the centralization of the system further impedes dialogue between employers and the higher education system. 1.17 The majority of higher education curricula are biased towards academic knowledge and, as a result, the high demand of the private sector for technicians and managerial staff remains unsatisfied. Higher education programs and output remain mainly oriented towards meeting public administration needs, though its share of job creation is decreasing and now represents only 20% (in 1989, 9,000 new jobs were created in the civil service of which 7,200 were in the MES). The private sector represents 80% of job creation of which industry, services, construction and public works and agriculture represent 34%, 41X, 3.61 and 1.4% respectively. The most dynamic sectors are trade and services, tourism, textiles, chemicals and diversified industries in mechanics and electricity. Accountancy, management, marketing, computer and office technology, industrial maintenance, mechanical engineering, electricity and electronic engineering are skills for which there is a high unsatisfied demand. In 1990-1991, only 1050 students graduated with a management related specialty, 698 with an engineering degree and 985 as technicians. The high labor market demand for qualified managers and technicians is confirmed by information collected from the following sources during project preparation: (i) a study on "The training of technicians  in Tunisia" financed by the fifth Education Project (Ln. no. 2230-TUN); (ii) a pre-feasibility study on ISETs, carried out in 1990 and including 50 of the main industrial and commercial employers in Tunisia; and (iii) an analysis of the 1990 Employment Survey and the results of the Program Financing Internshlps in Industry (SIVP). Despite the unreliability of long-term employment forecasting and cross-country occupational profile comparisons, it should be noted that Tunisian industry and service sectors have a very low percentage of professionals (5.6%) (administrative staff (4.1%), technicians and engineers (1.3%), and marketing staff (0.2%)) compared to OECD averages, which indicates a considerable potential for skill upgrading over time. 1.18 The higher education system has not been able to satisfy the high demand for qualified secondary school teachers in certain disciplines. Until last year, secondary school teacher training took place in the three teacher training colleges. These colleges, "Ecoles Normales Superieures" (ENS), were responsible for teacher training in math and sciences (Bizerte), arts and humanities (Sousse) and technical subjects (ENSET in Tunis). A review of their operations by the ministry showed that the curriculum and delivery methods were often irrelevant and obsolete and, compared with total enrollment, very few students completed their degree. As a result, the number of graduates produced was insufficient; in 1988/89, 58 graduated from the Bizerte ENS, 61 from the Sousse ENS and 122 from ENSET Tunis. This is completely inadequate compared with 970 new unfilled positions for the same budget year. As a result, secondary school teachers had to be recruited from subject specialist university undergraduates with no training in pedagogical skills. It is estimated that at present 50% of secondary school math teachers and 75% of French teachers are not fully qualified for the posts they hold; other subjects are similarly deficient. To keep pace with the expected increase in secondary education enrollment resulting from the basic education reform, improved access to general secondary education and the phasing out of MES technical education, the MES plans to recruit an average of 1,320 teachers per year for literary subjects and 720 for sciences for the period 1990-96. In the present context, this would result in a severe shortage of qualified teachers, estimated at 1400 in French, 900 in mathematics, 600 in Arabic and 400 in history and geography for the period 1990- 96. Urgent action is therefore needed to increase the system's internal efficiency to train a larger number of qualified teachers. B. Low internal efficiency and the high cost per graduate 1.19 The internal efficiency of the higher education system is very low and is one of the major causes of the high cost of producing graduates. Upon entry to a faculty, undergraduates follow a four-year program which is not diversified enough to allow the rapid integration of students into the labor market. Of 1000 first-year students, 430 drop out during the first two years (first cycle), a further 98 in the second two years (second cycle), and, of the remainder, 150 obtain a higher technician diploma or a paramedical diploma, and 322 become graduates (Annex I, chart 2). It is estimated that repeaters and drop-outs inflate the cost of producing a graduate by 120% on the average (99% in technical sciences, 34% in medical sciences, 164% in fundamental sciences, 192% in humanities, and 130% in social sciences) (see Annex I, table 7). This inefficiency can be attributed to: (i) excessive uniformity and rigidity in  - 8 - course design; (ii) inadequate curricula and teaching methods; (iii) the unavailability of suitable academic staff; and (iv) insufficient complementary resources including libraries, computers and technical equipment. 1-20 The absence of a formal system for evaluation, review and revision of existing curricula and methods of delivery has led to excessively unlform undergraduate course design and inadequate curricula and teaching methods. As a result, existing programs are not diverse enough to meet the different expectations of the students nor to provide them with the knowledge and skills required by the job market. There is little preparation for the world of work either in the curriculum content or in the conditions of service and activities of the academic staff. The university year lasts 27 to 32 weeks. Apart from their required teaching time, teachers have little contact with the students. Obligations for research and other publications, cortract work, or administrative and management tasks are not monitored. Teaching methods are further adversely affected by insufficient investment in physical resources, resulting in deficiencies in the facilities and in the learning experience of the majority of undergraduates - book stocks and computer availability are notable examples. 1.21 The higher education system has been unable to recruit sufficient qualified teachers to fill its vacant positions. In universities, of the 603 posts created in 1989, only 301 were filled. Shortages are reported in the usual disciplines of computer science and management as well as math, English, Arabic and economics. The low availability of academic staff is due mainly to the very low doctoral studies output and a mismatch between the supply of academic staff and excessively high qualifying standards for academic appointments. The salary and conditions of service of university teaching staff are considered attractive compared to other careers. However, the differential in salaries between the grade of "assistant" and that of a "maitre assistant" is an insufficient incentive. In 1988/89, only 36 doctoral theses were successfully presented, of which only two (these d'4tat) qualified the candidates for the grade of professor. While the overall student: staff ratio of 16:1 and the percentage of senior appointments (21%) compare favorably to international norms, they vary widely among institutions and disciplines. There is one teacher for every eight students in technical sciences, 1 for every 23 in humanities, one for every 30 in social sciences, one for every eight in medicine, and one for every fifteen in fundamental sciences. In some overcrowded institutions, the student:teacher ratio can be much less favorable: in the Faculty of Law and Political Sciences of Tunis, the ratio is one teacher for every twenty-eight students, it is one for every thirty-two in the Faculty of Law in Sousse (see percentages of qualified staff by disciplines (Annex I, tables 7 and 8)). In addition, humanities and, to some extent, social and technical sciences have an insufficient number of senior staff (Humanities: 11.7%; Social Sciences: 14.8%; and technical sciences: 15.7%). 1.22 Present physical resources are insufficient to provide the student population with an adequate learning environment. With an average of 8.27 m2/student, building facilities fall within international norms. However, there are large disparities in available space or space allocated between institutions for the same disciplines: in humanities it varies from 1.23 to 12.28, in social sciences from 2.96 to 7.88, in fundamental sciences from 3.35 to 18.41, in  - 9 - technical sciences from 2.77 to 42.94, in medical sciences from 4.43 to 26.38. In addition, the use of building facilities could be optimized by improved scheduling and the extension of the academic year. Maintenance of buildings is insufficient and, as a consequence, many buildings need to be repaired (a survey has been made during project preparation to appraise the amount of rehabilitation needed). However, the main constraint to pedagogic improvement is the very low level of available equipment. There are few open-access libraries, and the number of volumes per student is absurdly low, as is the supply of basic study facilities - desks, tables and lights. Most existing technical equipment is obsolete; therefore, the science and engineering students are certainly not being trained for today's world. Previously, strong links with higher education and research centers overseas had helped mitigate these deficiencies. However, with the increase in the number of students, this can no longer be an automatic solution to resource deficiencies. The absence of adequate maintenance programs and spare parts budgets further serves to diminish the utility of some equipment. C. Overcentralizedmanagement. inefficient distribution and use of available resources 1.23 The Higher education system is highly centralized and lacks the flexibility needed to respond efficiently to the needs of the economy. The 1989 law created universities as autonomous and decentralized entities and reinforced the decision-making mechanisms to increase the participation of all concerned parties at the university level. Through these measures, the MES aims at addressing the management issues existing at the following levels: (i) At the central level: The daily management tasks generated by enrollment growth overshadow the planning, quality and output monitoring, and policy formulation functions. The permanent professional staff of the Ministry is too small to handle this increased work load and the current practice is to second staff into the ministry from academic posts. In addition, some functions, such as student orientation and career counselling, pedagogic evaluation, maintenance of .acilities and equipment, pedagogic research and program development, are nonexistent or insufficient and need to be strengthened. (ii) At the university level: The recent creation of universities (law of 1989) as institutional intermediaries between the MES and the faculties, institutes and schools is a first step towards decentralization of responsibilities and greater efficiency. However, their functions, staffing and links with the MES and the faculties, schools and institutes remain to be defined. (iii) At the faculty, school and institute level: Individual institutions lack the financial, managerial and academic autonomy that would permit them to adapt quickly to a changing environment and improve their efficiency. Their entire staff is managed at the central level by MES. Individual institutions have no direct management of the external resources they could generate from research or training  - 10 - contracts. This is a disincentive to improving performance and efficiency, seeking additional funding, or taking any initiative involving changes in curricula or use of available resources. 1.24 Facilities, equipment, human resources and recurrent budgets are allocated largely by extrapolation of past prac-1ces. Allocations do not take into account policy changes, reward highly performing institutions or sancti.on poor performers. There are no monitoring tools on which decision makers could rely to reorient the system toward more cost-effective training or to correct disparities, or which could take into account sector-specific factors such as sharp rises in enrollments, research objectives or pedagogic enhancements. Consequently, disparities among institutions for the same kind of training are sometimes substantial and lead to inadequate distribution of scarce resources. THE GOVERNMENT'S SECTOR STRATEGY 1.25 The Government is carrying out a substantial investment program whose main characteristics are to develop Tunisia's human resources potential and increase social mobility. The Government intends to increase the share of gross higher education enrollment in the 20-24 year-old group from 8.5% to 14X in 2000, which implies an anticipated enrollment growth rate of 7.8% p.a. for 1990-2000. To achieve a sustainable rate of expansion of higher education within the constraints of public resources while improving its responsiveness to the needs of the country, the Government is committed to progressively restructuring and diversifying the higher education system. Within universities, it proposes to renovate programs and curricula so as to increase the quality and reduce the average cost per graduate; outside of the university system, it intends to create more cost-effective and vocational-oriented institutions. 1.26 As a first step, in July 1989 the Government passed a law aimed at reorganizing the Higher Education and Scientific research system. This law was to serve as the framework for reform implementation, to promote a more autonomous management of institutions, and to facilitate diversification of the system to make it more flexible and responsive to its environment. As mentioned in para. 1.09, six universities were created from existing faculties, schools and institutes as an intermediate planning level. Some of ministries' current manaement functions will be transferred progressively to these universities. These newly created universities are run by University Councils composed of staff representatives elected by each dependent institution, representatives of the economic, social and cultural community designated by the Minister and student representatives. The President of the Council is appointed by the President upon recommendation of the Minister. Each faculty is run by a Council and its dean elected for three years. Directors of Schools or Institutes are appointed by the President upon recommendation of the Minister and after consultation with the teaching staff. In the context of its Eighth Plan, the MES will progressively redistribute administrative functions between the HES and the universities and strengthen their management capacities. This law also included the creation of the Foundation for Scientific Research as an independent entity with the status of a public commercial and industrial body. Its mandate is to be accountable and responsible for the allocation of investment and operative  - 11 - funds, monitoring their use and the outcome of projects they support against agreed research priorities. 1.27 A consultation process, initiated by the MES, to define structural changes in curricula and new program contents in all the main disciplines was launched at national level in July 1990. To this effect, 16 commissions were created and have presented their conclusions to the MES. A document will be issued by the MRS during the first semester of 1992 describing the main proposed changes in curricula and programs. Some of these changes are already being implemented in some disciplines: (i) in engineering schools, the curriculum has been modified to a three-year program and students are required to complete successfully a two-year preparation program prior to applying for a place in these schools; (ii) secondary school teachers are no longer trained in specific teacher training institutions (Ecole Normale Superieure, ENS), but in faculties through a specific two-year option in the second cycle, which includes pedagogical and discipline-related studies; and (iii) in technical studies, a new generation of educational institutions called ISETs is being created to train technicians and middle managers for manufacturing and service industries, in short programs of five semesters of study (see description in para. 2.04). Twelve institutions would be developed within the next 10 years, and five have been programmed in the Eighth Plan (1992-1996). 1.28 In universities, curricula and programs in all disciplines will be progressively diversified by: (i) reorganizing the first two years of study; (ii) introducing an orientation process upon entry into the second cycle, and creating options leading to different ranges of careers, research, teaching and non- academic jobs in industry and services; (iii) reorganizing the third cycle and, in particular, the intermediate diploma (DEA) and introducing a single thesis (instead of the present two). The existing programs will be progressively strengthened and redesigned in order to improve the quality and occupational relevance of education. In some institutions, the current exam system of a single final set of exams will be replaced by a credit accumulation system. Equipment and pedagogical materials will be improved. Training will be made more cost-effective by increasing the duration of the academic year and improving the condition of services of teaching staff. The educational institutions will have more flexibility to change their programs through an accreditation system. An evaluation body will be created to monitor and evaluate the efficiency of programs. Educational institutions will have the possibility of employing part- time associate professors and professionals under temporary contracts. 1.29 The growth of expenditures will be restrained mainly by: (i) restructuring and diversifying programs in universities in order to increase internal efficiency and reduce the cost per graduate and (ii) creating ISETs where the anticipated cost per graduate will be half of the average actual cost per graduate in the university system. In addition, the following actions will be taken: (.) resources (facilities and teaching positions) will be progressively redistributed among universities according to established norms so as to avoid underutilization of resources; (ii) a new norm-based funding system will be used as an incentive to promote more cost-effective programs; (iii) a student loan scheme will be developed and scholarships targeted towards students from underprivileged groups; to that end, the ceiling for scholarship eligibility  - 12 - has not been raised since 1989, leading to a progressive shift from scholarships towards student loans. EXPERIENCE WITH FAST BANK LENDING 1.30 Since 1962, IDA has committed 10 credits to Tunisia amounting to US$75.2 million, and the Bank has committed 85 loans amounting to US$2,318.5 million, both net of cancellations. Project implementation is generally satisfactory, and important policy changes and institutional improvements have been achieved. The pace of disbursements has been accelerating. Past Bank lending emphasized support for long-term investments in infrastructure, social development and, more recently, agriculture and industry. As of April 30, 1991, the sector share of Bank Group commitments was as follows: agriculture - 23.5X; industry and energy - 23.8%; transport and urban infrastructure - 30.31; human resources - 10.3%; and non-sector lending - 12.1X. 1.31 Adjustment lending to Tunisia started in FY87. A first Agriculture Sector Adjustment Loan (ASAL, Loan 2754-TUN), approved by the Board in September 1986, supported the Government's sector reform program and focused on prices, public investment, and support services. An Industrial and Trade Policy Adjustment Loan (ITPAL, Loan 2781-TUN), approved by the Board in January 1987, focused mainly on import tariffs and price control. A Structural Adjustment Loan (SAL, Loan 2962-TUN), approved in June 1988, supports the Government's medium- term macroeconomic program and its measures to liberalize trade, decontrol prices, increase the efficiency of financial intermediation, and reform taxation. A Second Agricultural Sector Adjustment Loan (ASAL-II, Loan 3078-TUN), approved in June 1989, follows up on the measures undertaken under ASAL-I and focusses primarily on further liberalizing the agriculture sector and strengthening essential support services. A Public Enterprise Reform Loan (PERL, Loan 3109- TUN), approved in July 1989, supports efforts to institute reforms in public enterprise management, to restructure some major loss-making enterprises, and to divest assets which can be transferred to the private sector. Finally, the Economic and Financial Reform Support Loan (Ln. 3424-TUN), approved on December 12, 1991, is supporting (i) the liberalization of the economy through external trade and price reforms; (ii) the promotion of financial markets to bring bank regulations to international standards; (iii) improvements in the efficiency of the special incentives to economic activities; (iv) reform of the social security system; and (v) the establishment of coordinated external debt management. 1.32 The Bank strategy to improve the efficiency of public institutions and thereby reduce their resource needs while improving services applies particularly to its lending in the human resources sector. Bank lending to Tunisia has evolved from projects focussed on specific sub-sectors in education and health to projects building on the overall framework of public finance discipline and enterprise reform pursued in the SAL. The very first Bank loan in education was made in Tunisia in FY63. These first projects (two credits and four IBRD loans) supported the Governments's programs to improve primary and secondary schooling, teacher training, and formal and non-formal trade training for skilled workers and to strengthen family planning and maternal and child care. The more recent projects support far-reaching systemic reforms. The  - 13 - Education and Training Sector Loan (ETSL, Loan 3054-TUN), approved in June 1989, entails the restructuring of the education and training system so that a much larger number of children would benefit from sound education and training, helping to prepare them for active careers in a fast-changing economy. It also includes the development of pre-service and in-service training in collaboration with companies in the productive sectors, and mobilization of additional resources for training. The Employment and Training Fund (Ln no. 3255-TUN) which became effective in FY91, aims at (i) accelerating the adaptation of the labor force to rapidly changing job patterns and (ii) developing in-company training activities. The Population and Family Health project, which has been approved in FY91. will contribute to Tunisia's efforts to control its demographic growth through an integrated approach of family planning, maternal and child health, and bas'c health care delivery. Finally, the Hospital Restructuring Support Project, which was approved in FY91, will address major efficiency and service quality issues in the health sector and help alleviate the heavy burden imposed on public resources. 1.33 Past Bank involvement in Tunisia's human resources sectors has shown the need to focus on quality in education and improving government expenditure patterns. Implementation of previous projects has shown that the main constraints relate to: (i) setting up a strong full-time coordination and implementation unit; (ii) emphasizing institution building; and (iii) improving the flexibility of institutional arrangements. This project will specifically address these issues in supporting a qualitative reform including a wide-ranging institutional building component. RATIONALE FOR BANK INVOLVEMENT 1.34 The Bank's advice has been instrumental in helping the Tunisian Government to design the two main institutional elements of this strategy: an incentive mechanism to encourage reform of existing courses, and market-friendly governance arrangements for new institutions. Continued involvement will be essential to launch, implement, and monitor them. This effort will also complement Bank support for the reforms initiated in primary and secondary education (FY 89 Education and Training Sector Loan, Loan no. 3054-TUN) and the measures taken to increase labor mobility (Employment and Training Fund, Loan no. 3255-TUN). In particular, improved efficiency in higher education will reduce the shortage of qualified secondary school teachers. More broadly, the proposed project complements the macroeconomic reforms already introduced, with Bank support, to improve the competitiveness of an increasingly outward-oriented economy.  - 14 - II. THE PROJECT 2.01 The project supports the government reform program to restructure and diversify higher education as described in para. 1.28-1.33. Translating the Government reforms into specific policies to be implemented as part of the proposed project implies: (i) creating new institutions endowed, through an appropriate legal and organizational framework, with the needed administrative and managerial capacities and accountability; (ii) reviewing, revising and restructuring university curricula and programs; and (iii) reconsidering resource allocation mechanisms among institutions. 2.02 PROJECT OBJECTIVES AND SCOPE: The proposed project aims at making the higher education system more responsive to the country's needs, while at the same time being more cost-effective. Specifically, the project would: (i) diversify the higher education system in order to improve the output of a trained technical and managerial labor force; (ii) provide incentives to universities to review and revise curricula in order to enhance the quality of teaching and learning (especially with regard to practical work, student-centered and experiential learning), increase the relevance of teacher training programs, improve the internal efficiency of the educational system, and reduce the average duration of study; and (iii) improve the distribution and use of resources in line with set strategies through the implementation of a normative system for resource allocation and the development of a new management system to suit the needs of more autonomous higher education institutions. 2.03 PROJECT DESCRIPTION: The main components of the project would be: (i) The creation of a new generation of Higher Institutes of Technology (ISET). These institutes would be distinct from universities, geared towards labor market needs and would offer short-term programs aimed at training technicians at a more effective cost per graduate. Five ISETs would be developed under the project, with specific characteristics in common (size, duration and content of programs, student selection, private sector participation, management, and teaching staff conditions of employment). Curricula would include disciplines related to the industry (mechanical, electrical and electronic engineering, and maintenance) and service (e.g. management and trade) sectors adapted to local enterprises and regional development characteristics. They would have a customized legal status which would allow for increased financial and administrative autonomy, participation of employers in the management board, ability to charge fees for services, recruitment of professors under fixed-term contracts and offering training contracts to enterprises. To reduce the dramatic shortage of technical teachers (1,100 positions in existing institutions, of which 25X are filled by foreign teachers) and minimize the brain  - 15 - drain inherent in overseas-educated post-graduates, a permanert training capacity will be developed in Tunisia to train 600 technical teaching staff for the ISET under the project. (ii) The creation of a National Program for University Improvement (PNRU): This program would channel funds, through a competitive and transparent process, towards universities with the goal of increasing their internal and external efficiency and improving the quality of instruction and learning. These resources would be used as an incentive for universities to reform their programs and curricula. Sub-projects proposed by universities would be selected by a pluridisciplinary committee (the Committee for University Improvement, CRU) and resources allocated according to well-defined selection criteria and operational indicators reflecting the main features of the Government reform program. (iii) The strengthening of the planning and managerial capacities of the higher education system: Planning and management would be improved both at the MES and educational institutions levels. This would involve: the design and implementation of a normative system for resource allocation and of a performance-based budgetary allocation system; the introduction of appropriate management and information systems, in particular with regard to student admissions and records, facility utilization and course timetables; the creation of an evaluation and the implementation of an accreditation system for the higher education system; and the training of higher education administrative and management staff. A. The creation of the Higher Institutes of Technology ISETs) (USS75.2 million total base cost) 2.04 The proposed project would support the creation of five ISETs in the main economic and industrial regions of the country. To this end, three ISETs would be built respectively in Tunis, Sousse and Sfax, and two existing facilities in Nabeul and Gabbs would be converted into ISETs. Each ISET would have the following characteristics (see Annex II): (i) the objective of training technicians in an intensive program of 2,000 hours duration (five semesters) including a period of work experience and an end-of-studies project; (ii) a total enrollment limited to 1500 to 1800 students in five departments covering industry and services, organized so as to encourage links between the disciplines in line with the needs of local industries; (iii) a customized legal status providing them with specific governance characteristics which differ from that of universities and which will enable them to manage the resources they generate; to have professionals as members of their Board of Directors; to implement cost-recovery measures; to recruit contracted teaching staff; to  - 16 - offer in-service training services to industry on a contractual basis; to enter into contractual arrangements so as to promote technology transfers and the local development of diversified enterprises; and, in general, to revise programs and pedagogy in line with the needs of the economic environment. (iv) the status, recruitment, career and conditions of service of the teaching staff would be designed to: encourage recruitment of specialists; increase links with industry through technology transfers and in-service training programs; provide incentives for teacher involvement in student progress, achievement and professional orientation; reduce training costs by increasing the teaching load to 384 hours per year (more than twice the teaching load of a university professor); and, to that end, provide attractive career prospects and remuneration; (v) students would be selected from baccalaureat holders on the basis of past educational performance and interviews; a few places would be offered to students who had completed secondary education and had some professional experience; (vi) the occupational relevance of courses would be emphasized; teaching would be based on work in groups (25 to 30 students), intensive practical work, internships, and projects in their applied disciplines or subjects, and would involve the participation of practicing professionals in the disciplines studied. (vii) each ISET would mix disciplines related both to the service and industrial sectors in order to: (i) encourage cross fertilization between disciplines; (ii) satisfy the diversified needs of local enterprises; (iii) attract equally men and women in technical studies. 2.05 The Government has sent to the Bank the draft laws as approved by the '.inisterial Council, establishing the legal framework of the ISETs and creating the ISETs of Tunis, Sousse and Sfax, as well as the draft decrees defining (i) the mandate, structure and management of the ISETs; (ii) the conditions of service of their teaching staff; (iii) their career and salary scale; (iv) their fringe benefits; (v) guidelines for organization of the competitive exams (for technology and management teaching in secondary schools); and (vi) conditions of study, exams and internships in ISETs (para. 5.01). As a condition of effectiveness, the above-mentioned laws and decrees will be formally promulgated or issued (publication in the official Gazette) (para. 5.02). In addition, the law converting the ISTs of Nabeul and Gabes into ISETs shall be published in the official Gazette by December 31, 1992 (para. 5.03); all these laws and other decrees and regulations relating to the establishment and operation of the ISETs shall be maintained in force following the establishment of the ISETs (para. 5.03). 2.06 Program development (USSO.5 millionl. Each ISET would have a combination of the following departments: mechanical engineering, electrical and  - 17 - electronic engineering, industrial maintenance, mining and civil engineering, chemistry, biology and bio-technology, management, office administration and technology, commercialization techniques, and social and paralegal disciplines. Program content for each of these departments would be specified IntLer.ALJ according to a survey of local enterprises, economic development prospects and regional employment characteristics in each ISET locale, vhich vwll be carried out by December 31, 1993 (para. 5.03). To that end, the project would finance five months of expert services for each of the main disciplines up to a total of 55 man-months. Equipment specifications shall be derived from this survey. 2.07 Construction and related activities (USS55.7 million). The proposed project would finance land acquisition, architectural studies, the construction of the ISETs of Tunis (21,200 m2), Sousse (14,350 m2) and Sfax (17,750 mz), and the conversion of the IST of Nabeul (16,000 m2 to renovate) and of the IST of Gabbs (13,500 m2 of which 5,250 m2 to renovate and 7,800 M2 to build) into ISETs. The planning of construction has been programmed to take into account the need: (i) to simultaneously open several ISETs, so as to increase their impact; (ii) to coordinate the opening of departments with the training of teachers; and (iii) to schedule work accordingly so as to permit the progressive opening of departments. Participation of local contractors will be encouraged so as to further the links between the ISETs and their economic environment. On the basis of the needs identified during program elaboration (see para. 2.06), the project would finance the required equipment, furniture, books and pedagogical materials for all the departments (see Annex II). Documents confirming the acquisition by or transfer to MES of the land for four of the ISETs have been transmitted to the Bank (para. 5.01). The site for the fifth ISET (Nabeul) is already the property of the MES. Human resources develoRment (USS19 million) 2.08 To implement this program, the Government would progressively create 600 teaching positions and 300 technical and administrative positions to constitute the tenured workforce. When funcrioning at full capacity, this staff would deliver 70X of the teaching load, the remaining 30X being covered by fixed- term contract staff recruited from practicing professionals. The tenured teaching staff would be selected from the following groups: (i) students with master's degrees in relevant disciplines (baccalaur6at plus four years) or engineering (baccalaureat plus six years) studying in Tunisia or abroad; (ii) professionals from industry and services; and (iii) staff currently employed to teach at the ISTs. All tenured staff would receive appropriate training depending on their background, experience, and the disciplines they would be teaching at the ISET. The project would contribute to developing the permanent training capacities in Tunisia needed to meet the ISETs' needs for teaching staff over the next 10 years (10 to 12 ISETs) so as to avoid the brain drain of overseas educated post-graduate students. To that end, a small unit, charged with the design, coordination and monitoring of this training, and housed in the Preparatory Institute for Science and Technology (Institut Preparatoire aux Etudes Scientifiques et Technologiques) would be created. Training programs would be sub-contracted to existing establishments in relevant disciplines. Technical assistance and the supply of complementary equipment to these establishments would be provided under this project, as necessary, to bring the level of these training programs to international standards (para. 2.09 and Annex III).  - 18 - 2.09 Training of ISET teaching staff: Each training program (see details in Annex III) for the ISET teaching staff would comptise: (i) a core training of up to eight months in basic and specialized subjects; (ii) a three-month program in pedagogic theory and practice in the relevant subjects to be provided in similar institutions overseas; (iii) a three-month work internship. Over the duration of the project, about 500 students would attend the complete training cycle; about 150 trainee teachers in general subjects (such as communications skills, languages, and applied mathematics) would not have an internship in enterprises; those students who had completed six years of post-secondary studies would not be required to participate in the pedagogic training or in the internship program. During the first year of their training, students would receive scholarships; entry to the second year of training would be contingent upon successful completion of the first year. During that period, students would be under contract with MES. The acceptance of students as part of the ISET teaching staff would be based on their obtaining an aptitude certificate upon completion of the training cycle. The project would finance: 24 man-months of foreign expert services to assist in the design of the above training programs; training contracts in Tunisia which have been estimated on the basis of US$55/hour for a 10-student group; scholarships in Tunisia estimated at US$165/month; and participation of foreign teachers estimated at US$110,000/year. Training costs and miscelianeous expenses abroad (subcontracted and pedagogic training) have been estimated at an average of US$16,500 per student for the eight-month training cycle and at US$9,000 per student for the threl-month pedagogic training. Finally, scholarships during the internships in enterprises and in the school environment have been estimated at US$330/month per student. The project would also finance expert services and miscellaneous costs for the preparation and delivery of exams and diplomas (estimated at US$300,000). Bilateral and twinning arrangements between ISETs and similar foreign institutions will reinforce this component by providing supplementary internship possibilities, technical assistance and exchanges of visiting professors. 2.10 Implementation and Evaluation. This component would include the provision of specialist services for the following tasks: (i) technical assistance to the ISETs' department managers during the first year of activity of each ISET (estimated at 23 man-months); (ii) assistance to courses, programs and student evaluations (estimated at 46 man-months over the first two years); (iii) a mid-program evaluation (estimated at four man-months). B. The National Program for University ImRrovement (PNRU) (USS31 million) 2.11 The National University Improvement Program is designed to provide incentives for quality and efficiency improvements in universities by allocating criteria-based resources in addition to their standard recurrent and capital budgets. This program provides funding for the implementation of reforms within the scope of the 1989 Law. These reforms include upgrading, strengthening and re-designing the programs to improve their quality and occupational relevance for the graduates. Individual institutions (faculties, schools and institutes) would be invited to participate by preparing sub-project proposals which would be evaluated through a competitive selection process involving open review and assessment. Some sub-projects may involve several institutions and others may be integrated with institutional development proposals.  - 19 - 2.12 There are seven categories of sub-projects within this program corresponding to the main focal points of the Government strategy: the introduction of new undergraduate study programs at the introductory general study stage (first cycle); the diversification of the second cycle streams to increase career options (research, non-academic employment aimed at labor market needs); also in the second cycle, the improvement of secondary-teacher training programs; improvement of programs to train engineers; expansion of computer availability in all disciplines and improvement in library and related services; and reorganized doctoral studies. 2.13 The sub-project proposals would be evaluated and a selection made annually using criteria based on the extent to which they will improve: a) teaching and learning; b) employment prospects; c) efficiency in the use of available resources and, d) a realistic appraisal of the capacity to implement within the time frame indicated. The selection criteria and operational indicators (see Annex IV) are included in the PNRU procedural manual which was discussed and agreed upon during the appraisal mission; the final version will be forwarded to the Bank for approval prior to effectiveness (see para. 5.02). The selection methodology, and more specifically the weight given to each criteria, will be defined each year by the CRU according to investment priorities in line with the implementation of reform. This allocation mechanism is likely to become a permanent feature of the higher education funding s-J.tem as discussed below. To ensure the development of best practice during implementation, the manual may be modified on an exceptional basis and the char.ges proposed by the CRU discussed and agreed upon with the Bank prior to their imklementation. 2.14 Operati'l of the National University Improvement Program. The Committee for Unive:.-ity Improvement (CRU) would be created to implement the PNRU. It would have the following membership: a representative of the MES Minister, the Directo. of Higher Education of the MES, the Director of the Foundation for Scientt. lc Research, the university presidents, representatives from the economic and scial sectors, and academia. The CRU would meet at least three times a year to define the PNRU priorities in conjunction with the implementation of reforms, allocate the PNRU budget for the relevant fiscal year, select sub-projects from those submitted by universities, and monitor their subsequent implementation according to the agreed-upon criteria and operational indicators (see Annex IV). 2.15 An executive secretariat situated within the Unit for Evaluation, Projects and Programs (UEPP) of the MES, comprising its manager and two senior full-time project officers, will service the CRU and will be responsible for the smooth running of the PNRU. Its main function will be, for the inaugural meeting, to draft and submit an outline work program for the duration of the project and a detailed timetable of work for the coming year. To avoid delay in launching the project it will also prepare and present for the selection process those sub-projects that have already been submitted. In subsequent meetings it  - 20 - should present regular progress reports on the implementation of approved sub- projects and review its work program and timetable. The secretariat will also be charged with ,.ie responsibility, as defined in the procedural manual, for ensuring the distribution of information to universities and their staff on the eligibility of sub-projects for funding by the PNRU, application forms and procedures, and timetables for the submission and evaluation of proposals. 2.16 As necessary, the secretariat will provide expert advice to the universities to assist them in the preparation of sub-project proposals and to evaluate their technical feasibility. It will check that the proposals received conform to the selection criteria and operational indicators and follow the procedural manual. After the CRU has selected the sub-projects to be implemented in the coming fiscal year, the secretariat will communicate the results to the universities and ensure that the necessary budgetary allocations are made to the universities through the PNRU. It will also initiate a program to monitor the implementation of the selected sub-projects. The project will have the funds necessary to contract appropriate expertise for sub-project evaluation and the preparation of equipment specifications for inclusion in tender documents. The manager of the UEPP will also serve as a liaison with the Project Coordinator by providing regular progress reports on the activities of the CRU and the implementation of the sub-projects. 2.17 The Government has transmitted to the Bank the Ministerial Decision establishing the CRU and appointing its membership. The CRU shall be maintained during the execution of the Project. Sub-projects above US$500,000 and the first ten sub-projects selected, whatever their cost, will require prior approval from the Bank. To facilitate management of sub-projects both by the MES and the Bank, the list of all sub-projects approved by the CRU and selected by the MES would be transmitted to the Bank including, for each sub-project, a unique identification number, a brief description and its total cost (para. 5.03). This process of sub-project selection and approval will be linked with the annual investment budget preparation to permit the inclusion of the selected sub- projects in the budget. C. The strengthening of MES caRacities and project management (USS6.1 million total base cost) 2.18 The MES would develop and introduce a normative allocation system (SAGES) (US$0,5 million) for human, physical and financial resources (see Annex V), in order to create incentives for efficiency, which would include the following: (i) Initial phase: Initiated during project preparation, this phase has consisted of the development of a data bank on the actual organization and functioning of higher education, including: (i) data on teachers, student-teacher ratios, administrative, technical and support staff, and facilities; (ii) a review of existing program strueture -- pedagogy practiced in terms of number of hours delivered per year and per discipline--; (iii) student distribution in the various programs, for each year according to the course contents.  - 21 - (ii) Second phase: Once the above-mentioned data has been collected, norms for resource allocation would be defined in order to achieve optimal use of allocated resources. Finally, this system would provide decision makers with the projections and simulations which would facilitate both the budgeting process and decisions regarding the creation of new programs. This new budgeting system will be implemented beginning with the 1995 budget (para. 5.03). To that end, the project would finance experts' services, computer equipment and related software, and training for MES, university and faculty staff. 2.19 Managerial and maintenance capacities (US$0.9 million) would be developed in the universities, facultiRs, schools and institutes, particularly in the areas of student admissions, records, facility utilization and course timetables (See Annex V). The project would finance: in an initial phase, a study to review existing systems in all establishments; in a second phase, the design and development of the software programs and data bases; in a third phase, the implementation of the system, provision of computer equipment in institutions, the foreign costs of training the MES specialists who would manage the system, and information seminars for future users. 2.20 A national evaluation committee (US$0.2 million) for the higher education system has been created and its members appointed, to monitor and evaluate the efficiency of programs. In addition, an accreditation system for the new curricula proposed by all institutions would be developed within the MES. Financing for these programs and curricula will be contingent upon accreditation. The project would finance six man-months per year of expert services to appraise programs and participate in evaluation juries as peer reviewers in selected disciplines and subjects. 2.21 Management Training (US$3.3 million): To provide universities with the means to fulfill their new mission as institutional intermediaries, improve their management (e.g. student admissions, students' educational records, budget) and optimize the use of existing resources (staff, facilities and equipment), a university management training program will be developed (see Annex V). About 200 persons (40 per year) will be trained over the period 1992-98. To that end, the project will finance two man-months of expert services for a study to design specific training programs and define course content and duration, to be carried out prior to the implementation of the management training program (para. 5.03). Training would be both theoretical and practical and would include two two-month internships (one abroad and one in Tunisia). Candidates would be recruited competitively from master's (or equivalent) degree holders. The project will finance student scholarships and stipends, training and internship costs, and related computer equipment. In-service training will also be organized for the existing 160 university managers during the project. Each participant would receive four weeks of training. 2.22 Proiect Management (US$1.3 million): To ensure the timely implementation of the higher education reform and, in particular, the measures included in this project, MES will strengthen its organizational structure by creating the following functional units which will be placed under its authority:  - 22 - - A new Unit for Evaluation, Projects and Programs (UEPP), which will initiate and coordinate all actions to be implemented under the higher education reform, and implement the PNRU in line with its procedural manual and the terms of the loan agreement for this project. It will liaise with the CRU and the National Evaluation Committee which are placed under the Minister's responsibility. - A new Unit for Technological Studies, which will be responsible for implementation of the ISET program. It will carry out, with appropriate managerial staff, the development and implementation of all ISETs' programs, as well as the design and implementation of the training program for the ISETs' teaching staff. - A new unit, within the Department of Planning and Statistics, which will be created to develop and monitor the administrative, financial and university management rationalization program both at the MES and university levels. - A new academic planning and development unit which will be charged with the development of architectural programs reflecting the requirements of the new selected pedagogic programs. - Under the authority of the MES Secretary General, a project coordinator who will coordinate with the relevant MES Departments and units and the World Bank. In cooperation with all Departments and Units, he or she will monitor project disbursements and procurement, serve as a liaison with other Ministries, and prepare periodic reports reviewing progress on all components of the project (para 3.19). 2.23 As a condition of effectiveness, the Government shall confirm that: (i) a Project Coordinator has been appointed; and (ii) the organizational units in charge of implementing the PNRU and ISET have been established within MES and their managers appointed (para. 5.02). In addition, the Project Coordinator shall be maintained during the execution of the Project; the units in charge of the implementation of the PNRU and ISET programs, as well as the evaluation body and the academic and planning development unit, will be formalized by December 31, 1993 and provided with all the resources required to fulfill their mandate (para 5.03). 2.24 To make these units functional, the project would finance complementary computer and office equipment, vehicles, and expert services.  - 23 - III. PROJECT COSTS. FINANCING AND IMPLEMENTATION PROJECT COSTS 3.01 Project costs, including indirect taxes and duties, are estimated at 116.2 million Tunisian Dinars (TD) or US$126.3 million equivalent and include: (i) for the ISETs, the costs of land acquisition, building construction and rehabilitation, equipment and educational materials, training services and scholarships for the teacher training, and expert services; (ii) for the PNRU, a lump sum to finance equipment, fellowships and expert services for sub-projects selected according to defined criteria and (iii) computer, office equipment and vehicles and expert and training services for the strengthening of managerial capacities at the MES, university and institution levels. Table 3.1: SUMMARY OF PROJECT COSTS BY PROJECT ITEM 1/ 4% % TOTAL - DOTMILLION- -USS MILLION - FOREIGN BASE LOCAL FOREIGN TOTAL LOCAL FOREIGN TOTAL E)CH. COSTS ,m .... ....n amo a .. ....... ... m . maUUma HIGHER INSTITUTES OF TECHNOLOGY (ISET) Program Development 0.2 0.3 0.5 0.2 0.4 0.5 69.7% 5.0% Con0tuctIon 23.3 10.8 34.1 25.3 11.8 37.1 31.8% 33.0% Equipment & Pedmaterials 2.6 14.5 17.1 2.8 15.6 18.6 65.0% 10.6% Human Resources Dvelopment 6.3 11.2 17.5 6.8 12.2 19.0 64.1% 16.0% Sub-total 32.3 36.9 69.2 35.1 40.2 75.2 53.4% 67.0% NATIONAL PROGRAM FOR UNIVERSITY IMPROVEMENT (PNRU) 5.8 22.7 28.5 0.3 24.7 31.0 79.7% 27.0% MANAGEMENT & PLANNING CAPACMES Resources allocaion system 0.2 0.2 0.4 0.2 0.2 0.5 51.1% 4.0% Management and Maintenance sstem 0.2 0.6 0.8 02 0.7 0.9 70.6% 8.0% Evaluation 0.1 0.2 0.3 0.1 0.1 02 72.7% 2.0% Management TraIning 2.2 0.8 3.0 2.4 0.9 3.3 26.2% 2.9% Projt management 0.8 0.4 1.2 0.S 0.5 1.3 35.4% 1.2% Sub-toal 3.4 2.2 5. 37 2.4 6.1 38.0% 5.6% mamma Mumma Mumm. a .Mmm Mumma mam.* Totl Sas Costs 41.5 61.8 103.3 451 S7 1123 59.9% 100.0% Phyica Contingencies 1.2 1.4 2.6 1.3 1.5 2.8 63.7% 2.5% PrIc Contngencies 4.5 5.7 10.2 4.0 6.2 11.1 5.3% 9.o% TOTALPROJECTCOSTS 472 69.0 116.2 51.3 76.0 126.3 59.4% 112.4% j/ Includlng USS9.6 million In taxes and dutles. ND. Sub-totats may not add up due to rounding.  - 24 - 3.02 A summary of project costs by category of expenditure is given below. The amounts and categories of expenditures for the PNRU has been estimated on the basis of expenditures for a sample of typical sub-projects presented by the universities; the costs of rehabilitation, equipment, educational materials, fellowships and expert services for this sample has been proportionately applied to the total amount of the PNRU. TabLe 3.2: PROJECT COSTS BY CATEGORY OF EXPENDITURE Il % % TOTAL > - OT MILLION USS MILLION - FOREIGN BASE LOCAL FOREIGN TOTAL LOCAL FOREIGN TOTAL EXUH. COSTS HIGHER INSTffUTES OF TECHNOLOGY (ISE) Land Acquisition 4.6 0.0 4.6 6.0 0.0 5.0 0.0% 4.5J Civil Works 19.0 11.0 30.0 20.6 12.0 32.6 3.8W 29.0% Equipment & Pedagogica Mat 2.8 15.8 18.6 3.0 17.2 20.2 85.0W 18.0% Expert services 1.3 1.0 2.3 1.4 1.1 2.5 44.0W 2.2% Training servces 2.5 9.1 11.6 2.7 9.9 12.6 78.4W 11.2W Scholuaship & Fellowships 2.2 0.0 2.2 2.3 0.0 2.3 0.0% 1.8W Sub-total 32.3 30.9 69.2 35.1 40.2 75.2 53.4% 66L9% NATIONAL PROGRAM FOR UNIVEISITY IMPROVEMENT(PNRU) 5.8 22.7 28.5 62 24.7 31.0 70.6W 27.6W MANAGEMENT & PLANNING CAPACMES EquIpment 0.1 1.0 1.1 0.1 1.1 1.2 90.0% 1.1W Exprt services 0.4 0.5 0.9 0.5 0.5 1.0 492W 00W TraInIng services 0.1 0.3 0.4 0.1 0.3 0.4 83.8W 0.3% Soholarships & Fellowships 2.8 0.4 3.2 3.1 0.4 3.5 11.7% .1W subtowl 3.4 2.2 5.6 3.7 2.4 6.1 30.3W 5.4W Total Base Cost 41.5 61.8 103.3 45.1 67.3 112.3 59.9W 100.0% Physical Contngoenlees 1.2 1.4 2.0 1.3 1.5 2.8 53.7% 2.5W Price Condlngencles 4.5 6.7 10.2 4.0 0.2 11.1 5.3W 119W TOTAL PROJECTCOSTS d42 6O. 116.2 61.3 7. 126.3 604% 112.446 I/ Including US$ 9.6 million In taxes and dutlf Toal may not add up due to rounding. 3.03 Aasis of Cost Estimates. Costs of construction and rehabilitation of facilities are based on joint Bank/NES preliminary estimates. The costs of these works average US$435 per m2 (400DT per m2) for new construction and the extension of current facilities, and US$109 per m2 (1OODT per m2) for rehabilitation of the existing structures. Furniture and equipment costs have been estimated on the basis of recent contracts in similar schools in Tunisia and Europe. Needs and costs of computer equipment and installation for each of the facilities are based on their student capacity and the characteristics (infrastructure, administrative staff, activity) of each facility. Office  - 25 - equipment costs have been calculated on the basis of quotations and mission estimates. Technical assistance costs - US$15,000 per man-month of foreign specialist services and US$5,000 per man-month of local specialist services - have been estimated on the basis of recent prices for comparable technical assistance. The man-month costs of foreign specialists include housing, relocation costs, subsistence, office services, fees, overhead and recruitment costs. The cost of recruiting foreign teaching staff has been estimated at US$110,000 per year. The cost of training academics and senior technicians in institutions similar to the ISETs has been estimated at US$5000 per month including travel, stipends, fees, housing, and miscellaneous expenses. Base-cost estimates reflect prices as projected for the time of effectiveness (July 1992). 3.04 Customs Duties and Taxes. Equipment and works acquired by MES are exempt of direct taxes and duties. Project costs include an estimated US$9.6 million in indirect taxes and duties. 3.05 Contingency Allowances. Project costs include a contingency allowance for unforeseen physical additions (US$2.8 million), equal to 2.3X of the estimated base cost of the project. Price contingencies between effectiveness (July 1992) and the end of project implementation are estimated at US$11.1 million equivalent, or 9% of base cost plus physical contingencies. No contingencies have been applied to the PNRU component since it is a lump sum amount. Total contingencies represent 11.5% of the base cost. Price increases have been applied to both local and foreign costs and for all categories at a 3.4% annual rate. It is expected that differentials between foreign and local inflation during project implementation would be reflected in an adjustment to the exchange rate. 3.06 Foreign Exchange ComDonent. The foreign exchange component has been determined by: (a) estimating at 40% the indirect foreign exchange costs of construction and rehabilitation and assuming that architects would be recruited locally; (b) assuming that all equipment would be imported and all furniture procured locally; (c) determining the foreign and local specialists who will need to be recruited; and (d) assessing local training capacities and the requirements for training services abroai, fellowships, scholarships and stipends. The foreign exchange component of the PNRU was extrapolated from a sample of sub- projects submitted by the universities. The resulting foreign exchange percentages are summarized in Table 3.2 above. Total foreign exchange costs, including contingencies, have been estimated at US$75 million, or about 59.5% of total project costs. Recurrent Costs 3.07 The average annual recurrent cost per ISET student (TD 4,000) will be twice that of university students, as a result of the improved student-staff ratio, the increased number of contact hours of training (1,000 hours per year compared to 375), and the practical work content of technological disciplines. However, due to the design of the ISET program in five semesters of study and the low anticipated repetition and drop-out rates, the expected recurrent unit cost per ISET graduate (TD 10,000) will be half the average unit cost of a university graduate; this will globally increase the cost-efficiency of the higher education system. At project completion (1998), ISET students will represent 7% of total  - 26 - higher education enrollment and between 20Z to 30X of all graduates. All other things remaining equal, the creation of the ISETs will contribute to reducing the average overall recurrent cost of higher education graduates by about 12X while increasing the number of graduates of the higher education system by 252. 3.08 In universities, incremental recurrent costs would result primarily from higher maintenance costs for equipments and libraries. However, the increased quality of teaching will reduce drop-out and repetition rates, and therefore the cost per graduate, which will largely offset the increase in maintenance costs. PROJECT FINANCING 3.09 The proposed Bank loan of US$75 million would finance 1002 of the foreign exchange component of the project, equivalent to 64.52 of total project costs net of taxes. The Government would finance the balance of project costs of US$51.3 million. Project financing would be as shown in Table 3.3. In order to facilitate the timely development of project activities, retroactive financing of up to US$4 million would be included. This will enable the recruitment of experts to develop teacher training programs for the ISETs' related curricula and equipment lists, the appointment of architects and other experts for the topographical and geotechnical studies to be carried out prior to construction, and the provision of office equipment necessary for the implementation of the PNRU. Retroactive financing would be limited to project expenditures incurred after the appraisal mission. Table 3.3: FINANCING PLAN ----- US$ Million ----- Category of Expenditure IBRD GOVERNMENT Total HIGHER INSTITUTES OF TECHNOLOGY (ISET) Land Acquisition 5.0 5.0 Civil Works & Arch. Services 13.2 19.4 32.6 Equipment/Ped. Materials 17.2 3.0 20.2 Expert Services 1.0 1.5 2.5 Train. Serv., Scholarships & Fellowships 10.0 4.9 14.9 Unallocated 7.4 5.6 13.0 PROGRAM FOR UNIVERSITY IMPROVEMENT (PNRU) 23.4 7.6 31.0 MANAGEMENT AND PLANNING CAPACITIES Equipment/Ped. Materials 1.1 0.1 1.2 Expert Services 0.5 0.5 1.0 Training Services 0.3 0.1 0.4 Scholarships/Fellowships 0.4 3.1 3.5 Unallocated 0.5 0.4 0.9 Total 75.0 51.3 126.3 Totals mnay not add up due to roundin8  - 27 - OCUREMENT 3.10 Procurement arrangements for the components to be financed under the project are summarized in Table 3.4 below. Procurement would be carried out by the Administrative and Financial Department (DAF) of the MES with the support, whenever required, of the Centre National Pedagogique for the purchase of foreign equipment and of the Ministry of Equipment for civil works. TABLE 3.4: SUMMARY OF PROPOSED PROCUREMENT ARRANGEMENTS a/ (including contingencics, taxes & duties) (USS million equivalent) PRUDENT Ica LIB LCB SHOPPING OTHER N.A. TOTA HIGHER INSTTUTE OF TECHNOLOGY (ISETI Land Acquisition 5.6 6.6 <:~~~~~~~~~~~~~~~ 0.- :0*: f Civil works (ncluding arch. voes) 34.1 4.0 38.1 Equipment. Books & pod. mat. 20.6 3.5 0.5 24.6 '17 ; . . , 2;.: 0., 20 Expert & Training services 19.3 19.3 s -: ;- '- -: t12.S5 Scholarships 1.6 1.0 0.9 ~~~~..04 Sb-Wl 20. 0.0 34.1 75 26.1 5*. 69.1 ofwhichBank: 17* 09 18.6 4* 12* .09 '4.. OGROAM FOR UNIVERSIT IMMPROVMENT (PNRU) bJ Civil Works 2.5 0.8 3.9 Equipment, books & ped. mat. 14.6 7.0 2.5 0.6 24.6 i ...: :e'".:':- :B. :::.-^.: . :.. .:: '... ...;:. .....:fU ' . :. ' '''S :.''.:'E:'-:B.::S'':.' Expert wervcess 1. 1.6 9' ~ ~ ~ ~ ~ ~ 0 '''4' '''*'B f''' R."' Fellowships t.8 t.0 Sub-toa 14.0 7.0 2.5 3.3 3.6 81.0 clbOdOfardr. ? 6 ~ O6. ~ MANAGEWENT& PLANNING CAPACMES Equipment & Pedagogical materals 1.0 0.4 1.4 Expert and Trainingsrvic t .5 1.5 ,ER5 i.;............; YBRf. ,RBR.Y ... ....... ..... ........-.BY Scholdrhipe/F loouwiip. 3.2 32 R ,f R g'" E V , E;"'B' gf~~... E.R'.:. R .;iY. Sub-tl 1.0 0.0 00. 0.4 4.7 01 of whl sncb... . TOTALPROJECT: 302 7.0 36.6 112 852 Si 126.3 of which Be*8. 6 860. 01 0 7 a/ Shaded figures are tho repective amounts financed by the Bank loan. bl Procurement a.-rangemente or the PNRU are only Indicatve and hav been derived from a sample of sub-protecs received fom universides.  - 28 - 3.11. International Competitive Bidding (ICB) procedures, in accordance with the Bank's "Guidelines for Procurement Under IBRD Loans and IDA Credits" (May 1985), would be used for the procurement of 60X of the total value of books, equipment, spare parts and vehicles: (i) For the ISETs, equipment will be grouped, whenever possible, into packages of goods, the contents of which could typically be supplied by one supplier; it is estimated that these will represent 30 packages of about US$100,000 each; to the extent possible, slicing and packing technique would be adopted to attract both large and small companies; (ii) For the PNRU, goods will be grouped into packages whenever it is compatible with the timely implementation of the sub-projects; on the basis of the sample of sub- projects examined during the appraisal mission, it has been estimated that about half of all equipment would be grouped into ICB packages of about US$100,000 each. In the comparison of bids for equipment to be procured through ICB, domestic manufacturers would be allowed a preferential margin of 15X, or the existing customs duty applicable to non-exempt importers, whichever is lower, over the c.i.f. prices of competing imports. Other items, i.e. the remaining 40X of equipment, books, vehicles and spare parts, would be suitable for other procurement methods as described below: (i) Limited International Competitive Bidding (LIB) procedures may be used for the procurement of PNRU equipment for which only a few suppliers exist; this procedure shall apply to contracts estimated to cost less than the equivalent of US$500,000 per contract up to the aggregate amount US$7 million in total. (ii) Local competitive bidding (LCB): Because of their scattered location and the phased scheduling of construction (see para. 2.07), civil works contracts for the ISETs (construction, rehabilitation and conversion of the existing facilities) estimated to cost more than the equivalent of US$50,000 per contract, up to the aggregate of US$34.1 million, are unlikely to attract foreign contractors; LCB procedures, which are generally consistent with the need for economy and efficiency in the execution of the works, will therefore apply. The Government provided assurances at negotiations that (i) opening of bids shall take place in public, in the presence of the bidders wishing to attend; (ii) bid evaluation criteria will be stated in the bidding documents; and (iii) no preference will be granted on the basis of national origin of the bidder, of the legal nature of the bidder, or of financial facilities offered by a bidder such as export credit or suppliers credit. (iii) Shopping, based on price quotations obtained from at least three suppliers may be used for: - Small civil works contracts, especially for the ISETs, in an amount less than US$50,000 per contract, and up to a total aggregate amount of US$4 million; - Sundry items, such as library books, complementary pedagogical, office and computer equipment for the ISET teacher training program and the institutional development component, and equipment for the PNRU when grouping into  - 29 - packages is impracticable due to the concept of free standing sub-projects; each of these contracts should not exceed US$100,000 and their total aggregated amount US$6.4 million equivalent; (iv) Direct contracting: Pedagogical materials and customized computer software for which there is only one supplier identified, as well as spare parts which are only available from the original manufacturers may be acquired through. direct contracting; these contracts are estimated at a maximum aggregated amount of US$1.0 million; (v) Fellowships and stipends (estimated to cost about US$6.5 million) for the training programs would be paid directly to the beneficiary. 3.12 Bank Prior Review for Civil works. EguiRment and Pedagogical Materials: To facilitate procurement, standard bidding documents for civil works, equipment and pedagogic materials, to be used for all LIB, ICB, LCB procurement under the project, will be elaborated by MES and approved by the Bank before the first bid is launched. In addition, for all contracts over US$350,000, the following documentation shall be transmitted to the Bank for prior review, according to the Bank Guidelines on Procurement (May 1985): (i) before bids are invited, the text of the invitations to bid and the specifications, other bidding and draft contract documents, and a description of the advertising procedures to be followed for the bidding; (ii) after bids have been received and evaluated, and before a final decisioia on the award is made, the minutes of the evaluation, comparison and selection committees, including the name of the bidder to which the award is proposed; and (iii) two conformed copies of the contract promptly after its execution and prior to the corresponding withdrawal application. It is estimated that this review would cover about 70% of the total value of equipment contracts of US$50.6 million equivalent. The remaining 30% would be subject to selective post award reviews. For the PNRU, all bidding documents and contracts will include a reference to the sub-project to which they apply. 3.13 Technical Assistance. Specialist services, including architectural services, would be selected in accordance with principles and procedures acceptable to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by The World Bank as Executing Agency" (August 1981). For all contracts over US$50,000, draft terms of reference, estimated costs, a short list of consultants and firms, selection procedures, letter of invitation, and contracts will be reviewed with the Bank prior to inviting proposals; the minutes of the evaluation committee, the winning proposal and the negotiated contract will also be reviewed by the Bank prior to contract signature. Contracts under US$50,000 will be subject to selective post-award reviews.  30 - DISBURSEMENTS 3.14 The proposed project would be disbursed over a period of about seven years, which is comparable to the average disbursement profile for all sectors in Tunisia (eight years). Project completion would be June 30, 1998, and the loan accounts Closing Date would be December 31, 1998. Loan disbursements would be made against: TOTAL AMOUNT PERCENTAGE DISBURSEMENT (US$ million) Higher Institute of Technology (ISET) 15.5 40X of the total expenditures on civil works, including architectural fees for the construction and conversion of facilities; 21.0 100% of the foreign expenditures for directly imported equipment including vehicles, furniture and educational materials and 100X of the ex-factory expenditures for locally manufactured equipment and furniture; and 85% of local expenditures for other items procured locally; 12.5 100X of the foreign expenditures and 85Z of local expenditures for consultant services, training services and fellowships. National Program for University Improvement (PNRU) 23.4 100% of the foreign expenditures for directly imported equipment, furniture, bvoks and educational materials and 1001 of the ex-factory expenditures for locally manufactured equipment and furniture; and 851 of local expenditures of other items procured locally; 1001 of the foreign expenditures and 851 of local expenditures for consultant services, training services and fellowships. Management and Planning Capacities 1.3 1001 of the foreign expenditures for directly imported equipment including vehicles, furniture, books and educational materials and 100X of the ex-factory expenditures for locally manufactured equipment and furniture; and 85% of local expenditures of other items procured locally; 1.3 1001 of the foreign expenditures and 85% of the local expenditures for consultant services, training services, scholarships and fellowships. 3.15 Withdrawal applications would be fully documented, with the exception of those in respect of expenditures under contracts valued below US$200,000 equivalent, and for stipends, allowances and fellowships for the ISET teacher  , 31 - training and management training, in which case applicatiors would be on the basis of certified Statements of Expenditure. Documentation in these cases (including lists of recipients and amounts paid for scholarships and stipends) would be retained by the Borrower for at least one year after receipt by the Bank of the audit report for the year in which the last disbursement was made. This documentation would be made available for review by the auditors and by Bank staff upon request. 3.16 Disbursement requests for all items financed under the PNRU will include, in addition to standard information, the identification number of the sub-project to which they apply as well as the estimated total amount of this sub-project (para. 2.17), and, for all sub-projects above the US$500,000 thres&told for prior review by the Bank, the date of the telex of Bank approval. Loan disbursements under the PNRU will be limited to a total amount of US$23.4 million equivalent. 3.17 Snecial Account. To facilitate timely project implementation, the Government would establish, maintain and operate, under terms and conditions satisfactory to the Bank, a Special Account in US dollars with the Central Bank of Tunisia to which the World Bank would make an initial deposit, equivalent to about US$3 million, representing approximately four months of projected Bank expenditures. The Special Account would be replenished monthly (or at the latest every three months). Documentation for replenishment of the Special Account would follow the same procedure as in paragraph 3.15. In addition, monthly bank statements reconciled by the Borrower would accompany all replenishment requests. Until the Special Account is funded, the minimum size withdrawal applications acceptable by the Bank would be US$75,000 equivalent, after which applications submitted outside of the Special Account would be for amounts equivalent to at least 10 of the amount advanced to the Account. 3.18 Accounts and Audits. Separate accounts for the project would be ma--intained. Each year a detailed statement reflecting project expenditures during that period, and projected expenditures for the forthcoming year, would be prepared. Within 45 days after the end of each year, copies of these statements would be submitted to the Bank to facilitate supervision. Project accounts including the Special Account (para.3.17) would be audited in accordance with the March 1982 Bank "Guidelines for Financial Reporting and Auditing of Projects Financed by the World Bank". Within six months of the end of each fiscal year, the Bank would be provided with an audit report of such scope and detail as it may reasonably request. Such a report would include a separate opinion by the auditor on disbursements against a certified statement of expenditures, and after each fiscal year. The Government provided assurances to this effect during negotiations (para. 5.03). IMPLEMENTAT ION AND MANAGEMENT 3.19 A project coordinator will be appointed to coordinate the implementation of all activities under the project with all departments and units involved (para. 2.22), monitor progress of each component, prepare yearly implementation plans, monitor procurement and disbursements, and serve as a liaison with the Bank. At least once a year, he or she will prepare a progress  - 32 - report to review progress towards the project implementation targets and objectives based on the agreed-upon monitoring indicators (para 3.22), and implementation schedule. This report will also include a description of the detailed activities for the coming year, which will be reviewed and agreed during annual meetings c mposed of the General Secretary and of a representative of the MES departments and units involved in the implementation of project activities. 3,20 The PNRU and ISET components will be implemented and managed by the two new units established within MES (para. 2.22 & 2.23). The manager of the PNRU unit will be assisted by two senior project officers. The manager of the ISET unit will be assisted by at least five specialists for the main ISET disciplines. The institutional component will be implemented by the Department of Planning and Statistics, reinforced by a small unit created to elaborate on and implement the administrative, financial and university management rationalization program (SAGES). The DAF will ensure the administrative, procurement and disbursement aspects of the project, as part of its normal activities. The new units created within the MES organizational structure will be formalized into Departments as part of the strengthened MES organizational structure by December 31, 1993 (para. 2.22 & 2.23). SUPERVISION. MONITORING AD) EVALUATION 3.21 Supervision. The project would be supervised and monitored by the Bank through the normal supervision mechanism. About 30 staff-weeks will be required during the first two years of implementation and 50 staff-weeks over tne following five years. Supervision would rely on annual progress reports (para. 3.19) prepared by the Coordinator and on Bank missions to elaborate remedial measures, when needed. A project completion report would be submitted to the Bank within four months of the loan closing date (para. 3.14). At negotiations, the Government provided assurances to that effect (para. 5.03). 3.22 Monitoring and Evaluation. The monitoring and evaluation of the project would be based on two sets of indicators, to be included in the periodic progress reports: (i) project implementation indicators that would help monitor the smooth and timely implementation of the project activities, and would be based on bi-annual updates of a detailed implementation schedule; and (ii) performance indicators monitoring attainment of the project objectives and serving as a basis for the design of corrective measures when needed: For the ISETs comRonent: - Number of graduates compared with the number of students enrolled for that cohort - Graduates employed in the labor market, and use of their training within one year of qualifying, type of employment - Cost per graduate produced according to discipline - Number of teachers trained and employed in the ISETs - Effective number of contact hours  - 33 - - Share of ISET resources in total recurrent budget For the ppRU comRonent, the sub-projects should include achievement targets within the project timeframe relating to the relevant indicators (para. 2.13) for each individual sub-project. Examples of such targets could include: the introduction of new options relating to potential employment; improvement in the quality and quantity of central facilities (libraries, etc); the level of student usage of equipment included in the project; improvement in the student pass rate for each year of study; and greater efficiency in the use of specialist resources. Performance will be monitored against these targets. For the Planning and Managerial Capacity component: - Annual progress towards introducing a norm-based budget and meeting the norms set up for budgetary and physical resources allocated to the institutions - Number of managerial staff trained - Number of programs evaluated - Reduction of disparities within institutions - Number of institutions implementing computerized system for student records.  - 34 - IV. ENVIRONMENTAL IMPACT, BENEFITS AND RISKS ENVIRONMENTAL INPACT 4.01 This proposed project was reviewed under the Bank's Environmental Assessment procedures and was determined to be in screening Category C, which includes projects which are not expected to result in significant negative environmental impact. BENEFITS 4.02 The project is expected to increase the cost-effectiveness of higher education and make it more relevant to the country's identified needs and resources. An improved response by the higher education system to the demands of the economy, i.e. producing graduates with the appropriate skills, would lead to increased productivity and growth. More specifically, the project would provide competitive and export-oriented industries with high-level technicians. Moreover, a better trained labor force will attract foreign investment. Higher education is a major vehicle for promoting evolutionary changes in attitudes and behaviors in a society. The ISETs could have several advantages over traditional universities in improving access to more vocationally-oriented studies and creating more employment opportunities for women: they will recruit locally, their programs will be short-term, and the wide range of disciplines might attract more women to technical fields. As a consequence it is expected that the percentage of women enrolled in technical subjects will increase. RISKS 4.03 The success of the reform being implemented by the Government will depend upon: (i) the ISETs' ability to fulfill their mandate as originally laid out in their statutes; (ii) the willingness of the university community to implement the reform program. These risks have been reduced by: (i) Government consultations with the academic community, launched in 1990, to ensure participation of all concerned parties in the elaboration of the objectives of reform and the measures to be implemented; (ii) development of an implementation strategy based on a continuous dialogue with the various university councils established as part of the 1989 Law. In addition, within the project, these risks have been addressed by: (i) creating ISETs distinct from the university system, providing their staff with appropriate training, and employing them under new conditions of service; (ii) using the University Improvement component and the new budgeting procedures as incentives for the institutions to participate in the reform process.  - 35 - V. AGREEMENTS REACHED 5.01 The draft laws establishing the legal framework of the ISETs, and creating the ISETs of Tunis, Sousse and Sfax, as well as the draft decrees defining, intgr alia. the conditions of service of the ISET teaching staff have been approved by the Ministerial Committee and transmitted to the Bank (para 2.05). The Government has also provided evidence that the land for the ISETs has been acquired by or transferred to MES (para. 2.07). 5.02 Effectiveness conditions are the following: (i) Publication in the official Gazette, in a form and substance satisfactory to the Bank, of the law establishing the legal framework of the ISETs, the law creating the ISETs of Tunis, Sousse and Sfax, and the decrees necessary for the implementation of those laws (para. 2.05); (ii) Transmission to the Bank in a form and substance satisfactory to the Bank of the PNRU procedural manual (para 2.13); (iii) Establishment within MES and under arrangements satisfactory to the Bank, of the organizational units responsible for the implementation of the PNRU and ISET programs (para. 2.23); (iv) Appointment within MES of each of the managers of the UEPP, of the Unit for Technological Studies, and of a project coordinator (para. 2.23). 5.03 In addition, the following was agreed upon during negotiations: (i) The law creating the ISETs of Nabeul and Gabes will be published in the official Gazette by December 31, 1992 (para. 2.05); (ii) The law establishing the legal framework of the ISETs, the law creating the ISETs, the decrees and other regulations relating to the establishment and operation of the ISETs shall be maintained in force following the establishment of the ISETs. (iii) Program content for each of the ISETs' departments would be specified according to, inter alia, a survey of local enterprises, economic development prospects and regional employment characteristics in each of the ISET locales, which will be carried out by December 31, 1993 (para. 2.06); (iv) The Project Coordinator would be maintained for the duration of the project (para. 2.23), as would the CRU (para. 2.17) which would be responsible for selecting sub-projects for financing by the PNRU, in accordance with the selection criteria and process defined in the procedural manual (para. 2.13); proposals estimated in an amount equal to or in excess of US$500,000, and the first ten sub-projects regardless of their cost, will require prior review by the Bank; a  - 36 - list of all sub-projects selected by the CRU and approved by the MES would be transmitted to the Bank, including, for each sub-project, a unique identification number, a brief description and the total cost (para. 2.17). Total loan disbursements on the PNRU will be limited to US$23.4 million equivalent (para. 3.16); (v) TLe new budgeting system will be implemented for the preparation and allocation beginning with the 1995 budget (para. 2.18); (vi) The study to define training programs and course contents for the management training of university administrative staff will be completed prior to implementation of the training program (para. 2.21); (vii) The units in charge of the implementation of PNRU and ISET programs, as well as the evaluation, academic and planning development unit (UEPP), would be formalized by December 31, 1993 and provided the needed resources to fulfill their mandate (para. 2.23); (viii) Project accounts, including the Special Account, would be audited by auditors acceptable to the Bank and in accordance with appropriate auditing principles; within six months of the end of the Government's fiscal year, the Bank will be provided with (i) certified copies of the project accounts; (ii) an audit report of such scope and detail as the Bank may reasonably request, including a separate opinion by the auditor on disbursements against certified statements of expenses (para 3.18); and (ix) Annual progress reports, including a revised implementation schedule, will be prepared by the Project Coordinator and reviewed and agreed upon with the MES Departments and units involved in the project (para. 3.18); this report will be made available to the Bank for joint review. In addition, a completion report will be submitted to the Bank within four months of the Loan Closing date (para. 3.20). 5.04 Subject to the above conditions, the project constitutes a suitable basis for a Bank loan of US$75 million to the Republic of Tunisia.  - 37 - ANNEXES Table of Contents ANNEX I: STATISTICAL ANNEX Table 1. Higher education and student numbers by gender and academic staff, by discipline and institution. Table 2. Student numbers by discipline and university 1990/91. Table 3. Distribution of graduates by level and university 1990/91. Chart 1. Higher education recurrent budget allocation. Table 4. Recurrent and investment expenditures Table 5. Number of third cycle theses and state doctorates (1988/89). Table 6. Student repetition rate in a selection of higher education institutions (1989/90). Table 7. Student/academic staff ratio by discipline - NES - 1986/91. Table 8. Student staff ratio by grade - 1990. Chart 2. Student flow in the university program structure showing internal efficiency ANNEX II: THE HIGHER INSTITUTES OF TECHNOLOGY (ISETS) I. Legal status Table 1: ISETs' main characteristics II. Management of the ISETs III. Disciplines and options IV. Teaching staff V. Selection of students VI. Diplomas and anticipated professional outlets VII Pedagogy VIII. Standard course layout Table 2: Teaching load in hours by type of department Table 3: Standard course layout ISETs students flow chart IX. Spatial organization and estimate of areas X. Equipment Table 4: Summary table of the surface areas and the realisation costs of the ISETs - Civil Works ANNEX III: TRAINING OF THE ISETS' TEACHING STAFF I. Institute of technology teachers - estimated numbers needed II. Tkaining program for institute of technology teachers II.1. General and technological training A. Training fully contracted to local institutions B. Training partially contracted to local institutions C. Training subcontracted abroad D. Scholarships for students in Tunisia E. Summary of general and technological training costs over 5 years II.2. Pedagogic training abroad II.3. Internships in enterprises II.4. Induction to teaching duties II.5. Total 5-year training budget for ISETs' teaching staff  - 38 - ANNEX IV: NATIONAL UNIVERSITY IMPROVEMENT PROGRAM Criterion I - Consistency with Objectives A. Improvement in the quality of education and training B. Improvement in Matching Training to Labor Market Requirements C. Better Use of Available Resources Criterion II - Capacity to carry out the sub-project ANNEX V: INSTITUTIONAL STRENGTHENING COMPONENT A. Presentation of the SAGES system I. Establishment of the Higher Education Data Bank (Banque de Donn6es de l'Enseignement Sup6r.- BADES) II. Budget Management System III. Cost accounting B. Management of progress end monitoring of students C. Training program for higher education managers 1. Basic training II. Refresher training ANNEX VI: ESTIMATED DISBURSEMENT SCHEDULE ANNEX VII: BACKGROUND DOCUMENTS AVAILABLE IN FILES  ANNEX I-39 ANNEXI Paw I of 10 Pa 1 of 10 TABLE 1: HIGHER EDUCATION STUDENT NIMBERS BY GENDER AND ACADENIC STAFF, BY DISCIPLINE AND INSTITUTION Stuients Enro ted I Nuer of Teachers Institutes/Facultti Fmtle Male TOTAL Prof.& Asa.& Autres TOTAL _ Mit.Conf. Nai.Ass. Cata. I. MES FUNDAMENTAL SCIENCES Faculty of Sciencs - Tunfa 1,672 3710 5,382 98 217 30 345 Faculty of Scinces -Bizerte 205 257 462 Faculty of Sciences - lizerte 96 153 249 21 53 9 83 Faculty of Scielnes - Mstir 465 1260 1,725 0 0 0 0 Faculty of Scienes Sfax 523 946 1,469 26 74 10 110 USU-TOTAL 2,961 6,326 9,287 20 52 1 73 ARTS. NUUMNITIES. AND ISLAMIC STUDIES Faculty of Humanities - Tunis 2,621 3028 5,649 36 97 34 167 Feculty of Hunnitfes - Manouba 2,755 3161 5,916 32 160 70 262 Modern Lanuages - I.B. 642 367 1,009 4 52 103 159 Instftute of Theology 311 479 790 12 18 8 38 Institute of Religious Scienees 316 411 727 5 20 2 27 Institute of llsmic Civilizatior 275 455 730 7 9 1 17 Faculty of Humanities - Sousa 281 230 511 1 59 10 70 Faculty of Huanities K Irouan 1,013 1115 2,128 1 66 22 89 Faculty of Humunitfes - Sousse 570 444 1,014 0 7 12 19 I.P.S.I. 282 136 418 4 27 11 42 Institute of Information 336 127 463 1 12 2 15 Faculty of Humanities - Sfax 711 709 1,420 2 33 17 52 SUB-TOTAL 10,113 10,662 20,775 105 560 292 957 MEDICAL SCIENCES Faculty of Medicine - Tunis m 1016 1,788 180 273 11 464 Faculty of Medicine - Monastir 326 161 787 14 32 0 46 Faculty of Pharmacy - Monestir 528 302 830 10 25 3 38 Faculty of Dentistry 347 278 625 S 6 2 13 Faculty of Medicine - Sousse 467 533 980 29 40 2 71 Faculty of Medicine - Sfax 302 550 852 30 48 2 80 SlB-TOTAL 2,722 3,140 5.862 268 424 20 712 LAW. ECONOMICS & ADMINISTRATION Faculty of Economics - Tunis 1,210 2204 3,414 19 72 24 115 Faculty of Law - Tunis 1,558 2452 4,010 15 60 10 85 I.S.G. 916 1143 2,059 7 63 31 101 Inst. Advanced Coanrecal Studif 482 899 1,381 5 50 18 73 Faculty of Law & Pot. Se. - Tunl 405 701 1,106 15 12 7 34 Faculty of Management - Hot.Tuni 96 331 427 1 11 6 la Higher Institute of Accounting 331 142 473 0 11 4 15 Faculty of Law - Sousse 731 1415 2,146 6 47 1 54 Faculty of Economics & Adfinistra 944 1660 2,604 8 98 17 123 Faculty of Lw Sfax 499 759 1,258 3 25 0 28 SUB-TOTAL 7,172 11,706 18,878 79 449 118 646 TECHNICAL SCIENCES National Engineering School * Tu 113 963 1,076 40 87 45 172 Nat. School of Sc. & Techn. 94 1044 1,138 21 90 23 134 Nat. School of Sc. and Eng. 26 118 114 3 15 6 24 I.T.A.A.U.T. 392 458 850 1 76 29 106 I.P.E.I. - Nabeul 47 402 449 6 32 15 53 I.S.T. - Nabeul 77 576 653 6 37 2 45 E.N.I.M. 110 525 635 10 47 16 73 I.S. Textiles Ksar Helal 7 68 75 2 11 1 14 E.N.I.S. 121 563 684 35 107 18 160 I .N. I .G. 64 551 615 17 74 14 105 I.S.T. Gabes 5 163 168 8 17 8 33 I.S.T.I. - Mines Gafta 23 345 368 9 22 4 35 SUS-TOTAL 1,079 5.776 6,855 158 615 181 954  ANNEX I ANE I Peg 2 of 10 -40 - Page 2 of 0 TABLE 1s HIGHER EDUCATION STUDENT NUM9ERS BY GENDER AND ACADENIC STAFF, BY DISCIPLINE AND INSTITUTION Students Enr o led NLaber of tewhersc Institutea/Faculttie Finalo Malo TOTAL Prof.& AM Autros TOTAL _ NaIt.Conf. Maf.Aes. Cat"g. Teecher Trng. Inst. - Tuni 82 63 145 14 14 Teacher Trin. Inst. -N. Ayari 102 134 236 19 19 Teacher Trng. Inst. - Korba 75 73 148 21 21 Teahor Trng. Inst. -Jondoub 68 67 135 16 16 Tecwher Trng. Inst. -Nteur 60 99 159 21 21 Teacher Tren. Inst. * sou- s 81 113 194 13 13 Teacher Trng. Inst. - Kaircuan 75 131 206 22 22 Teacher Trng. Inst. - Sfax 74 77 151 7 7 Teacher Trng. tInt. -Gabes 63 114 17t 17 17 tUITOTAL 680 871