Morocco - Vocational Training Project

Duamt tf The World Bank FM3 OMICIL USE ONLY Rup*N , 12320 PROJECT COMPLOt REPOr OCTIO TRAIING PROJECT (LOAN 2479-NOR) SEPTEMBER 17, 1993 MICROGRAPHICS Report No; 12320 Type: PCR Population and Human Resources Operation Diviion CoMutry Department I Middle Sast and North Africa Region Tis document hbs a reticted dlttibnoD an may be used by recipients only in tbe perfomance of eir offical duts. Its contents may not otberwis be disclosed wthout World Buak aoation.  EtVOLlMON -OF 3ME ENLAj; BA1 Atapprl: Octaoba 1984 US I D9.1 Pedod Average: 198S USS I D DH 10.0 1986 US I =DH 9.1 1987 USS I -DH 83 1988 U$1 - DU 8 1989 US$ = DHM8 199 IMS I DR Al 1991 US$ I DH 8.7 E8mate 1992 US$ I DH 8.7 BOPRQOWERCA ER enuaty I - December31 A.PFC Vocational and StfFTai dandtio Adm.iitatio de k Fomafion Proslione&let doe l Fomadon des Cadres CNIA National Cwousel for Yoth Cornell National d bl Jmuee at Avenir EDI Economic Deveopm2ent Instt Insit do ddvelQPP4M*d6WUDmiqu. EEC Ecropen Economic Communty CbmmunMa6 ues m _d _omanu IlC ntTuctoTraing Cter ILO InternatnLabour O _nizaon Bueu iteatioa dv Ttvail MP Natna sbt for Tann and Pedgoi Reaeb hIiat Nationa do Forataion ot de Recherche Paogiqe MIS Man nt noaion Sytem Syat&n de Geation do Pinfbrmadon LSMS Livg Stanads Maument Survey MTU Nobile Traing Units oFpPr Office for Voca St Tring and Bmpyniet Prmotion Oflice dole rowmtion Profeasonnell et de P romotion du Tmvail PNAP Nadonal Project Analysis Prgam Prgmme Natonal d'Analye de Protss VTC Vocton Taing C_ntsn Ctes do Pomaltion psOSionne10%  FOR OFFICAL USE ONLY THE WORLD BANK Washingt D.C. 2433 U.SA OOptatone Ealuation September 17, 1993 MMORANDUM TO 1IE EXEClUTfYE DlRECIORS AND THE PRESIDENT SUBJECT: Project Completion Report on Morocco Vogational Training Project (Ln. 2479-MZR% Attached is the Project Completion Report on Morocco - Vocational Training Project (Loan 2479-MOR) prepared by the Middle East and North Africa Region. Part II was prepared by the Borrower. The project's preparation, desgn, implementation and outcomes were deficient, and are rated unsatisfactory. For a first intervention in the vocational training subsector the range of risks was inadequately identified. TIbough the project achieved a major objective in expanding vocational training capacity and graduate output, the labor market and economic analysis on which training needs were based was incorrect, leading to a mismatch of graduate skills with job opportunities and consequent unemployment Progress on key policy reforms did not occur as planned because of failure during preparation and appraisal to secure Borrower commitment to use TA for studies, combined with insufficient Bank-Borrower dialogue during implementation. Neglect of these process factors meant that few actionable recommendations were produced. Despite being subject to only minor project implementation bottlenecks, mainly on procurement, and despite the borrower's high commitment to the expansion of training, project management lacked three critical features: an authoritative mechanism for subsector coordination, ongoing technical advice and indicators to monitor progress. These deficiencies signal that institutional development objectives were only partially achieved. The fact, though, that the implementing agency achieved significant savings on chvil works and equipment contracts points to increasing expertise in carrying out investment projects. Sustainability is uncertain because of the failure to make much headway on subsector reform studies and uncoordinated subsector management However, the apparent adequacy of government funds for the subsector and commitment to a second project provide a basis for remedial actions to better ensure that training matches labor market needs. Part I of the PCR is a candid account of Bank and Borrower deficiencies and is mafred by only minor inconsistencies and data gaps. Part II describes project implementation without comment and mentions good Bank-Borrower cordiality. It is intended to audit the project together with the follow-on project (Ln. 2779-MOR). Attachment : |This docnn hu a resEeRed dbtrbution andi may be used by recipients only in th pe -7nat, a of their ofIcial l duft Us conlerf may not ofwkse ine disclosed wdSwut World I lank authorkfe  FOR OmCIAL USE ONLY KINGDOM OF MOROCCO VOCATIONAL TRAINING PROJECT (Loan No. 2479-MOR) PROJECT COMLTICnON REPORT TABLE OF CONTENTS EVALUATION SUMMARY ............................ ii PAIT I. PROJECT REVIEW ROM BANK' S PERSPECTIVE ............ 1 PROJECTIDENTITY ............................ 1 PROJECT BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 The Economic Context . . . . . . . . . . . . . . . . . . . . . . . 1 Manpower Requirements and Training Capacity . . . . . . . . . . . . 2 PROJECqT OBJ .CTI . . . . . . . . . . . . . . . . . . . 2 PROJECT DESIGN. 3 The Labor Market and Job Insertion . . . . . . . . . . . . . . . . 3 Managerial and External Efficiencies . . . . . . 4.. . . . . . . . 4 Project Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Lack of Indicators . . . . . . . . . . . . . . . . . . . . . . . . 4 PROJECT IMPLEMENTATION . . . ...................... 5 Project Amendments . . . . . . . . . . . . . . . . . . . . . . . . 5 PROJECT RESULTS AND OUTCOME . . . . . . . . . . . . . . . . . . . . . . . 6 Project Quantitative Objectives . . . . . . . . . . . . . . . . . . 6 Mobile Training Units . . . . . . . . . . . . . . . . . . . . . . . 6 Technical Assistance and Consultant Services . . . . . . . . . . . 7 Lackof Dialogue. 7 Lack of Quality Control. 7 Lack of Ownership. 8 Project Impact on Employment . . . . . . . . . . . . . . . . . . . 8 PROJECT SUSTAINABILITY . . . . . . . . . . . . . . . . . . . . . . . . . 9 MAJOR LESSONS LEARNED . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Labor Market Forecasts. 9 External Efficiency .10 The Measurement of Performance . . . . . . . . . . . . . . . . . . 10 Managerial Efficiency . . . . . . . . . . . . . . . . . . . . . . . 10 Ownership of the Technical Assistance Component . . . . . . . . . . 10 Mobile Training Units . . . . . . . . . . . . .... . . . . ... . .10 This doument hasa restritetd disiubuion and may be usd by rpients only in te perormance of -their offici dutieshIts contents may not otherwise be dilcksod without World Bank authorization.  KINGDOM OF MOROCCO VOCATIONAL TRAMING PROJECT (Lo No. 2479-MOR) PRFOJE COMPLETION REPORT TABLIEOP QFTETS (Cont'd) PROJECT DOCUMENTATION AND BANK PERFORMANCE ... . . . . . ..... . 11 BORROWER PERFORMANCE .... . . . . . . . . . . . . . . . . . . . . . . 11 PROJECT RELATIONSHIP .... . . . . . . . . . . . . . . . . . . . . . . 11 PUT II. PROGRAM = RON BRCTV ...REVIEW........ 12 IDENTIFICATION OF THE PROJECT ..................... . 12 WITHDRAWAL OF FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 PURPOSE OF THE PROJECT . . . . . . . . . . . . . . . . . . . . . . . . . 13 INITIAL PROGRAM DOMICILED WITH THE OFPPT ............... . 15 UNSPENT CREDIT BALANCE APPLICATION PROGRAM . . . . . . . . . . . . 21 RELATIONS WITH THE BANK . . . . . . . . . . . . . . . . . . . . . . . . . 27 PMRT III. STATISTICAL INFORNATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Table 2: PROJECT TIMETABLE. 28 Table 3: CUMULATIVE ESTIMATED AND ACTUAL DISBURSEMENTS (US $ Million Eqtivalent) . . . . . . . . . . 28 Table 4: PLANNED AND ACTUAL COMPLETION DATES OF COMPONENTS . . . . 30 Table 5a: PROJECT COSTS BY CATEGORY . . . . . . . . . . . . . . . . 31 Table 5b: PROJECT FINANCING . . . . . . . . . . . . . . . . . . . . 31 TABLE 5c: PROJECT COSTS BY ITEM . . . . . . . . . . . . . . . . . . 32 Table 6: PROJECT RESULTS . . . . . . . . . . . . . . . . . . . . . 32 Table 7: STUDIES . . . . . . . . . . . . . . . . . . . . . . . . . 33 Table 8: STATUS OF COVENANTS ........ .. .. ...... . 34 TABLE 9: BANK MISSIONS ............... ...... . 35 MAP - IBRD 18273R1  KINGDOM OF MOROCCO VOCATIONAL TRAllING PROJECT (Leaw 2479MOR) PROJECT COMPLETON REPORT This is the Project Completion Report (PCR) for the First Vocational Training Project in Morocco, for which a loan of US$27.1 million (2479-MOR) was approved on November 27, 1984. The loan was closed on June 30, 1992 eighteen months behind schedule, and disbursements continued through November 4, 1992 reaching 85 percent of the loan. The undisbursed amounts were cancelled in December 1991 for US$3 million and November 1992 for US$1.06 million. The PCR was jointly prepared by the Population and Human Resources Division of the Middle East and North Africa Region (Preface, Evaluation Summary and Parts I and III), and the Office de la Formation Professionnelle et de la Promotion du Travail (Part II). Preparation of this PCR was started during the Bank final supervision mission of the project in October 1992, and is based on the Staff Appraisal Report, the Loan Agreement, the Project Agreement, supervision reports, correspondence between the Bank and the Borrower and internal Bank memoranda.  - iii - KINGDOM OF MOROCCO VOCATIONAL TRAIIG PROJET (Loa 2479-MOR) PROJECT COMPLETION REPORT EVALUATION SUMNARY 1 The project objectives were to address key sector issues by contributing to expanding vocational training capacity consistent with future needs for skilled labor force, improving coordination of vocational training, contributing to the financial viability of the main public vocational training institution and helping to develop appropriate future training activities. The project was to also help improve project selection and preparation in the public sector. The loan beneficiaries were (i) the Office for Vocational Training and Employment Promotion (Office de la Formation Professionnelle st de la Promotion du Travail, OFPPT) for the construction and equipment of 22 new Vocational Training Centers (VTC) as well as for other studies related to -training of instructors and curricula developmert: (ii) the Vocational and Staff Training Administration (Administration de la Formation Professionnelle et de la Formation des Cadres, AFPFC) for the studies dealing with coordination and financing of vocational training and development of future training activities; and (iii) the Ministry of Planning for a component aiming at improving project selection and preparation in the public sector. PROJECT EXECUTION 2 The project was 80 percent completed in August 1989, eighteen months before the closing of the Loan. Substantial savings on the loan utilization were realized due to favor-able prices in the Moroccan construction sector, to exchange rate gains and to workshop dimension standardization. As a result of these savings, US$10.5 million including US$6.5 million of unallocated funds, were expected to remain unspent from a total loan amount of US$27.1 million. 3 In April 1990, at the Government's request, the project was amended, and the savings reallocated into US$7.8 million for equipment and US$2.7 million for technical assistance and consultant services. The funds for equipment were used mainly to finance training sections in garment manufacturing and textile industries. Subsequently, the closing date was extended to June 3,0 1992. In order to conclude the loan by this date, the technical assistance component to be financed by the sarings was transferred to the Second Vocational Training Project (Loan 2779-MOR), which had already started.  - iv - 4 As a result of savings and transfer of the technical assistance to the second project, US$3 million were cancelled in December 1991. At the closing of the loan aecount in Novenber 20, 1992 another US$1.06 million remained unspent and was cancelled.= 5 WNeither the total unspent amount of US$4.06 million nor the 18 months delay sinificantly affected the project scope or implementation. The reallocation of the savings allowed the project c&uantitative objectives to be exceeded, since 30 VTCs were built or equipped instead of 22 planned at appraisal. The implementation of technical assistance components lagged behind schedule. However, all the components except one study were ccrpleted at the loan closing date. I =OJECT ESLTS AND IMPACT 6 The main project objective of expansion of the vocational training capacity was met. The enrollment capacitv increased by 6,630 instead of 4,775 planned, and the additional number of graduates per year to 3,000 instead of 2,200. However, the project's impact has not been as positive as expected. The vocational training graduates are currently experiencing serious difficulties in finding employment due to a substantial mismatch between their number and the economy's ability to absorb them, as well as between the diplomas they hold and the skills that enterprises need. This result is due to a lack of relevance of training as well as to a slower employment creation than anticipated in the project. 7 The technical assistance impact has also fallen short of expectations. Many project qualitative objectives are still to be achieved. SUSTAINABILITY 8 In the last few years, OFPPT's operational unit cost per student has increased at a rate above inflation without clear evidence that quality was being improved accordingly. To sustain and improve the project's economic impact, future projects need to focus on the quality and relevance of training, and on OFPPT's internal efficiency. MAJOR LESSONS _Ufi=RED AND RECOMMENDATIONS 9 The project has confirmed the unreliability of long-term forecasting of labor market supply and demand, as compared to methods based on labor market analysis and evolution. In addition, vocational training needs cannot be assessed outside the larger framework of the courtry's education system, and without prior assessment of the labor market institutional and regulatory framework. 10 The project has demonstrated that relevance of training and job placement of the graduates depend mainly on the ability of the training system to adapt to the changing needs of the economy. Future projects in Morocco should address these issues by creating built-in adjustment mechanisms, aiming at making VTCs. more autonomous and more responsive to their environment.  - v 11 The supervision experience revealed that the project suffered from the lack of a monitorable set of performance indicators. It has also emphasized the need to set future performance targets for the project's main components at full capacity. This project did not have a mid-term review, but the availability of such indicators would have permitted a more thorough project restructuring in 1-989, by making it easier to discuss with the Borrower to what extent the project was meeting its objectives, to take the nenessary measures to ensure their achievement in a timely fashion and to modify the project's content consequently. 12 The project his ailso revealed that the managerial efficiency of the OFPPT could be improved by a reforu of the vocational training tax system. A more effective system for allocating the tax would remedy the present lack of incentives for efficiency improvement, and introduce competition for financial resources among the vocational training providers. 13 The project implementation experience has suggested that Borrower ownership is easier to insure for physical expansion and equipment components than for technical assistance components aimed at qualitative objectives. This experience suggests that, to be effective, a technical assistance component that deals with policy issues at the national level should be considered as part of an overall decision-making process. This process should have at least two pbqses: (i) the carrying out of the studies on the one hand and (ii) consultation and preparation of concrete measures to Laplement study recommendations on the other hand. The project should make sure that 'an adequate structure for dialogue exists, and that all actors concerned are consulted and involved in the process. 14 In Morocco as in many other places in the world, the mobile training has proven to be a concept difficult to implement. Its use should therefore be carefully justified and limited to highly unusual situations.  KINGDOM OF MOROCCO VOCATIONAL TRINNG PROJECT -O n 2479-MOR) PROJECT COMPLETION RIEPORT . ~~PAB.T I . PRlJRCT ERVEV FROH BANK'S PUERPKC2Iy