Ghana - Vocational Skills and Informal Sector Support Project

Document of The World Bank FOR OFFCIAL USE ONLY Report No. P-6471-GH MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN THE AMOUNT EQUIVALENT TO SDR 6.6 MILLION TO THE REPUBLIC OF GHANA FOR A VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT MARCH 9, 1995 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.  CURRENCY EOUIVALENTS (October 1994) Currency Unit = Cedis US$1.00 = 1000 Cedis ACRONYMS AND ABBREVIATIONS CAS Country Assistance Strategy EdSAC Education Sector Adjustment Credit I & 11 (Cr. 1744 & 2140-GH) GLSS Ghana Living Standards Survey GOG Government of Ghana ICB International Competitive Bidding IDA International Development Association ILO International Labor Organization JASPA Job and Skill Program for Africa MOE Ministry of Education MESW Ministry of Employment and Social Welfare NACVET National Council for Technical and Vocational Education and Training NGO Non-Governmental Organization SDR Special Drawing Rights TRP Transport Rehabilitation Projects UNDP United Nations Development Program FISCAL YEAR SCHOOL YEAR January 1 - December 31 September - June (Basic and Tertiary) January - December (Senior Secondary) STRUCTURE OF EDUCATION IN GHANA Years 1 - 6 Primary 7 - 9 Junior Secondary 10 - 12 Senior Secondary 13 - 16 University  FOR OFFICIAL USE ONLY REPUBLIC OF GHANA VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Ghana Beneficiaries: Informal Sector Master Craftsmen and Apprentices Executive Agencies: Projects Management Unit/Ministry of Education National Council for Technical and Vocational Education and Training/Ministry of Education Credit Amount: SDR 6.6 million (US$9.6 million equivaleit) Terms: Standard IDA, with 40 years maturity Financing Plan: Local Foreign Total - ---------US$ Million------------------------------ IDA 3.4 6.2 9.6 Government of Ghana 0.9 0.0 0.9 Trainees 1.5 0.4 1.9 Total Project Cost 5.8 6.6 12.4 Economic Rate of Return: Not applicable Program Objectives Category: Human Resources Poverty Category: This project is part of the Program of Targeted Interventions since the proportion of the poor among the beneficiaries will be significant. Staff Appraisal Report: Report No. 13691-GH Map: IBRD No. 26746 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.   MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF GHANA FOR A VOCATIONAL SKILLS INFORMAL SECTOR SUPPORT PROJECT 1. I submit for your approval the following report and recommendation on a proposed development credit to the Republic of Ghana for SDR 6.6 million (US$9.6 million equivalent). The proposed credit would be on standard IDA terms, with a maturity of 40 years, to help finance a project for improving the skills of informal apprentices and mastercraftsmen who are already employed in the informal sector in order to improve product quality and productivity in selected occupational areas. The Government and beneficiaries will contribute US$2.8 million equivalent. 2. Economic Background. Under the Economic Recovery Program (ERP) adopted in 1983, the Ghanaian economy moved from a state of near collapse to a state of consistently strong growth. Real GDP has grown at an annual average rate of around 5 percent since 1983, relative to an average of minus 2 percent during the previous decade. Significant policy reform and fiscal adjustment made such a turnaround feasible. Policy reform involving the reform of the trade and exchange rate systems, the elimination of price controls, liberalization of interest rates and investment regulations, created the necessary incentives for efficient growth. In addition, increased revenue mobilization under the ERP permitted the Government of Ghana (GOG) to invest substantially in the social sectors, including education, while reducing fiscal deficits at the same time. 3. However, the election-related fiscal shock of 1992 and subsequent developments have brought the macroeconomic issue back to the fore. In the run-up to the 1992 elections, public service wage increases and revenue slippages led to the re-emergence of relatively large fiscal deficits and their financing mostly through increases in Central Bank credit. Although the fiscal situation improved significantly in 1993 albeit not as much as planned and the economy grew by 5 percent, annual inflation rose to 27 percent by December 1993. Lower GDP growth in 1994 and continued monetary expansion originating from the Central Bank's financing of the deficit led to a further rise in inflation by the end of 1994, which amounted to about 29 percent. However, stabilization efforts in 1995 are intended to re- establish fiscal balance. 4. Ghana's growth rate is projected to rise to 5.6 percent by the turn of the century. A higher growth rate is predicated on the GOG's commitment to restore and maintain macroeconomic balance from 1995 onwards, proceed expeditiously with privatization, improve capacity in public and private sectors and accelerate the investments in infrastructure and human resource development. In the immediate years, most of the expected growth is likely to originate from agriculture, mining, financial services and transport; higher manufacturing growth is projected to follow with a lag. 5. Countrv/Sector Background. Ghana has approximately 16 million inhabitants and an annual population growth rate of 3.1 percent (1992). It is well endowed with natural resources, including arable land, forests, and sizable mineral deposits of gold, diamonds, bauxite, and manganese, as well as considerable potential for hydroelectric power. The economy has traditionally depended on primary production and exports of cocoa and minerals. Most of the Ghanaian labor force is employed in agriculture. Agriculture production, primarily small scale, is concentrated in staple food crops and cocoa. 6. Ghana's economic recovery program puts considerable emphasis on education and training to provide the basic knowledge and skills required for development in both the formal and informal sectors. The existence of a well trained workforce, able to adapt to changing market demands becomes even more  - 2 - important as Ghana tries to accelerate its growth in the 1990s. The educational sector reform program which started in 1987 at the primary and junior secondary levels, has been extended to the senior secondary level in 1991, and to the tertiary level in 1994. The program has devoted great attention to prevocational training, so that all students gain manual skills and dexterity as well as academic knowledge, and thus will be more easily trainable to meet changing labor market demands. 7. Although accurate labor force data is scarce, some information is available that provides an indication of general trends. The Ghana Living Standards Survey (GLSS) has shown that in 1991/92 about 32 percent of urban employment was in the informal sector whilst according to the Job and Skill Program for Africa (JASPA) in 1989, 38.3 percent of the urban labor force, or 911,000 people were employed in the urban informal sector, excluding those involved in the informal sector on a part-tine basis. The same report estimated that urban informal sector employment was growing at about 5.6 percent per annum, whilst employment growth in the formal sector was less than 1 .0 percent per annum. The JASPA report also estimated that the urban informal sector in Ghana was contributing around 22 percent of GDP. 8. In 1991, there were 155 vocational and artisanal training centers run by ten different Government agencies; and 250 private for profit and NGO run institutions, the largest number of which are involved in training in commercial and secretarial areas. The mnajority of these skill training centers, both Governmental and private sector are poorly staffed and equipped, and do little to help their graduates find productive and gainful employment. Virtually none provide short focused training for those already in employment or in informal apprentice training schemes, but instead concentrate on training for formal employment that does not exist. 9. In 1990 the government established the National Council for Technical and Vocational Education Training (NACVET), which falls jointly under the Ministries of Employment and Social Welfare (MESW) and of Education (MOE). NACVET was set up by the Government in an attempt to rationalize the whole system of vocational training, to help it build on the skills acquired in the new Junior Secondary School system, and to enable training centers to integrate with formal and informal apprenticeship schemes. The NACVET secretariat is responsible for preparing curricula for all the different types of training institutions, for accreditation of courses, for arranging programs for the training of teaching personnel, for monitoring and evaluation, for trade testing, and for servicing the Council. It has not yet been involved in policy analysis. 10. This project will draw from the conclusions of a 1989 sub-sector study, "Basic Education for Self Employment and Rural Development" (Report No.7593-GH), especially those relating to the importance of up-grading the skills of informal sector skilled workers in order to increase their earnings and productivity, and also the need to restructure formal Ministry of Education training institutions so that they will also offer short courses to informal sector apprentices. 11. The project also draws from the work of an International Labor Organization (ILO) umbrella project on developing strategies for achieving economic growth through micro and small enterprises development in Ghana; and a United Nations Economic Commission in Africa pilot project on micro enterprise development. 12. Project design is largely based on three previous experiences launched between 1989 and 1992. First, the retraining of 16,000 redeployees using informal sector master craftsmen under the Program of Action to Mitigate the Social Costs of Adjustment. Second, providing short training for master craftsmen and apprentices belonging to the Ghana National Association of Garages. Equipment kits were also given to the trainees. This program was financed out of IDA's first and second Transport Rehabilitation Projects. Third, a pilot especially designed as an input into the preparation of this project to find out the extent to which public and private training institutions would be prepared to participate in short training of youth already employed in the informal sector. The program was financed out of the Second Education  - 3 - Sector Adjustment Credit (EdSAC, Cr. 2140-GH). Although evaluation of these training courses was carried out, there has been no systematic evaluation of how the trainees have used their new skills. The Government is aware of the need for such analysis, and through this project will establish a system of tracer studies to monitor and evaluate training outcomes. 13. From these experiences and discussions with master craftsmen, apprentices, and trade associations, it was apparent that there is a strong demand for short, highly focused competency-based training in almost all skill areas. However the trade associations emphasized that training by itself, though useful, was not enough. Basic but high quality tools are needed by the apprentices; and key simple items of modern equipment by the master craftsmen. In addition, if any informal business is to expand, then access to credit, and appropriate and convenient sites from which to operate are essential. In response to these concerns, the Government is creating service sites from which informal craftsmen can operate, and mutualist credit associations provide some credit. 14. Project Objectives. The project has three main objectives. First, to redirect the focus of both public and private vocational training institutions towards the provision of short, focused, practical, competency based, demand driven training for people already in employment. Secondly, to improve informal sector product quality and productivity in five selected occupational areas. Third, to create an institutional capacity that will ensure that Government has access to regular labor force, employment, and earnings data that will enable it to make reasoned decisions as to the types of training that should be supported in future. 15. To achieve the above objectives, a number of secondary objectives have been defined to (a) strengthen the linkages between trade associations, and public and private training institutions; (b) improve the content and relevance of training activities, including entrepreneurial training; (c) ensure that graduating trainees have the necessary tools to apply productively what they have learnt; and (d) establish a viable system for monitoring and analyzing the labor market on a continual basis. 16. Proiect Description and Financing. The project will support short term training, equipment provision, and institutional development in 14 public and 26 NGO and private training institutions in five trade areas where demand appears to be greatest, namely: (a) electrical installation--to respond to demand created by the national electrification program; (b) refrigeration and air conditioning--as an extension of the electrical installation and expansion of the electric power network, as well as meeting environmental needs to introduce non-chloroflurocarbon technologies; (c) woodworking and joinery--to respond to new export regulations designed to increase the value added of timber exports; (d) dressmaking and tailoring-- to improve quality, productivity and efficiency in these occupations and increase the earning power of women; and (e) blockwork and concrete products--to improve quality and durability of housing and public infrastructure and increase efficiency of the construction industry. 17. The project will concentrate on the following areas: (a) Short duration practical courses for apprentices and mastercraftsmen/women (US$3.7 million). The delivery of training services to the target population will be carried out in all 40 Government and private training institutions mentioned in paragraph 16 above. Each of these is expected to conduct an average of three training cycles per year per trade for approximately 5,000 apprentices and 1,000 masters. Any apprentice or master will only be admitted into a training program if he or she possesses an intake voucher, distributed by NACVET to the trade association for onward transmission to their members. Over the project duration, it is anticipated that roughly 25,000 persons will have their skills upgraded in the five occupational areas. Support to the training institutions will include: (i) provision of tools, equipment, and materials (US$2.3 million), (ii) staff training (US$0. 1 million), and (iii) upgrading of physical infrastructure (US$0.6 million). Mastercraftsmen, in addition to being trained in the highest quality  -4 - public technical institutes, will receive entrepreneurship training in MESW's Management Training and Production Institute (US$0.7 million). (b) Assistance in obtaining tools and eguipment for trainees at a subsidized cost (US$6.1 million) to improve the quality of production when they return to the work place. In that context, the project would procure basic tool kits that would be available to both apprentices and masters at a subsidized cost. The tool kits would be inexpensive, and the subsidy level adjusted so that it would never exceed the opportunity cost to the trainees of attending the training. Trade associations will be involved in selecting the tool kits to be used by their members. Proceeds from the sale of the tool kits will be deposited in a revolving fund to be used for procuring additional training and tool kits. (c) Strengthening the capacity of the Planning, Budgeting. Monitoring and Evaluation Division of the Ministry of Education (US$0.4 million) to set up a Tracer Study Unit for designing and executing tracer studies both of formal vocational and skill training programs, and of the new program under the project. (d) Developing the capacity of NACVET (US$0.9 million) in the areas of policy analysis, competency based curriculum and materials development, and monitoring and evaluation and to enable NACVET to ensure the smooth technical implementation of the project. (e) Carrying out a Labor Force Survey the Ghana Statistical Service will carry out the first comprehensive labor force survey over the past two decades. There will be an in depth inquiry into the structure and distribution of wages and conditions of work. Bench mark data correlating these with educational and training qualifications will be collected. Mutually consistent data on employment and unemployment and wage statistics in both the formal and informal sectors, and in rural and urban areas will be collected and analyzed. The sample frame and baseline will be given to MESW for regular updating. The survey will be managed through this project but financed through the ongoing Economic Management Support Project (Cr. 2224-GH). (f) Strengthening the capacity of the Ministry of Employment and Social Welfare (US$0.7 million) to collect, analyze, and regularly update labor force and employment data, especially relating to the informal sector, to enable it to update on a twice yearly basis the data from the Labor Force Survey established and carried out under this project by the Ghana Statistical Service. This will be done through the MESW's Public Employment Centers and Employment Information Branch. (g) Providing for project management and coordination (US$0.6 million) for the daily administrative implementation of the project. This would include adequate manpower, office equipment and vehicles, staff training, and fieldwork. 18. Proiect Implementation. All technical aspects of implementation will be the responsibility of NACVET. Physical aspects of implementation (procurement of goods, works and services, disbursements, accounting and auditing) will be the responsibility of MOE's Projects Management Unit which is responsible for all externally funded projects from all donors in the education sector. Also, as the project is designed to assist those already employed through providing required short competency based training at convenient times, extensive participation of the relevant trade associations and/or mastercraftsmen in: (i) training program content, (ii) tool and equipment specification, and (iii) trainee selection will be an essential aspect of project implementation. 19. Proiect Sustainability. It is expected that the project's long-term sustainability will be achieved through (a) forging links between training institutions, the trade associations, and the informal sector in  general; (b) establishing competency based training as an effective and viable approach to improve worker productivity; (c) strengthening labor market data collection and analysis; (d) creating incentives for training providers to shorten traditional long term training programs; (e) establishing a revolving fund to ensure future training, tool kits, and equipment purchases; (f) ensuring that Government pays fees to all training institutions from its own matching funds from project inception; and (g) creating an awareness that training must be complemented by improvements in equipping the work place if it is to be effective. Through the nurturing and acceptance of these concepts, it is expected that they will become part of the education and training system and will remain as such beyond the life of the project. 20. Lessons Learned from Previous IDA Involvement. The lessons drawn from the TRP and EdSAC supported pilots in the design of the project have been discussed in paragraph 12 above. Other Bank projects with similar objectives in Indonesia and Kenya have been considered during project preparation. The main lessons from previous IDA projects in Ghana, which have been incorporated into the project design are the need for a simple, coherent project structure, with a limited number of procurement actions, a minimum amount of technical assistance, and some degree of flexibility during implementation. Finally, there will also be annual reviews and a mid-term review which will allow for a mid-course change in direction, if necessary. 21. Rationale for IDA Involvement. The project is consistent with the Country Assistance Strategy (CAS) and is specifically mentioned in the CAS that was discussed by the Board on April 14, 1994. It is integral to the Government's objective of rapid growth and poverty reduction. Investments in human resource development--especially primary education and vocational training--will not only be a key input into private sector growth but will also ensure that the poor are sufficiently literate and skilled to benefit from rapid growth. By supporting the provision of informal sector competency based training services and by increasing the capacity of local institutions to manage the provision of such services the project will contribute to both growth and poverty reduction. 22. Both the 1987/88 and the 1991/92 GLSS show that a significant percentage of the population in Accra and other large cities are classified as poor. Informal sector apprentices are amongst the urban poor, and this project, by increasing the productivity and eventual earnings of these informal sector workers will help reduce urban poverty. This is the first Bank education project in Ghana that has provided direct assistance to private sector education and training institutions. There has been, up to now, almost a complete lack of labor force, employment and earning statistics. The project will support both the Ghana Statistical Service and the Labor Department of MESW in developing a capacity to provide such data on a regular basis. It will also enhance the capacity of the MOE to carry out tracer studies to find out what is happening to graduates of various programs run by public and private institutions. 23. The project has taken a relatively long time to develop (11' years) in order to ensure that its quality at entry is high. According to the CAS, projects should have shorter life spans - this project is to be implemented over five and a half years. The CAS also emphasized that there should be greater Government involvement in project preparation - the project was entirely developed by a Government task force. There should be involvement of implementing agencies in the project design stage - not only were there four workshops involving beneficiaries, but also the leader of the Government task force has since been appointed as the Project Manager for all vocational projects under the MOE. 24. Given the paucity of reliable data on the informal sector and its training needs, it is felt that the first project in this area should be relatively small, dealing with a limited number of trades and institutions. The effectiveness of this approach and the degree of resistance from institutions as they move away from time based to competency based training will be carefully monitored. In addition labor force data will be collected, and used to identify skill areas that should be dealt with in any future programs to be supported by public or donor sources. It is essential to move away from supply driven programs, or worse still equipment supplier driven programs to a more demand driven approach.  - 6 - Currently the main employment opportunities for new entrants to the labor force are in the informal sector, and thus it is important for both growth and long-term social stability that informal sector employment is encouraged and its productivity enhancement supported. 25. Donor Coordination. Recent support to the sector by other donors incudes: (a) ILO/UNDP US$2.0 million for competency based training, (b) Germany for assistance to selected National Vocational Training Institutes, (c) Canada for support to the polytechnics, and (d) other support by the European Union and various NGOs. An important element for the success of the project is to get the support and involvement of other donors in competency-based short term training for the informal sector. In order to sensitize other donors to the benefit of delivering the type of training financed under this project, and to eventually agree on a common approach for the informal sector, dialogue between the Government, the Bank, and the other donors has been undertaken and will be intensified. Part of this dialogue has been taking place at the monthly education donor coordination meetings held in Accra where the project concept has been discussed and where progress and results of the program could be demonstrated and requests for support to allow the expansion of the program made. In addition, a Government/Donor conference to establish new criteria for assistance in the sub-sector would be carried out at the mid-term review of the project. Furthermore, the Government has prepared a Letter of Informal Sector Training Development Policy which lays out the foundation for a Government overall strategy on vocational and technical education with special attention to the development of the informal sector. 26. Agreed Actions. The Government has (a) submitted to IDA a signed Letter of Informal Sector Training Development Policy for the sub-sector laying out the foundation for a Government overall strategy on vocational and technical education with special attention to the development of the informal sector; (b) appointed a Project Manager and an Executive Director and his Deputy for NACVET, all with qualification and experiences satisfactory to IDA; (c) presented a draft implementation manual containing details on the physical and technical aspects of project implementation as well as a first year work program; and (d) started a comprehensive nationwide labor force survey. During negotiations Govermnent agreed to (a) submit by September 30 of each year, the budget for the project for the following year, which will show the needed Government matching fund contributions to project activities by quarter, and thereafter implement such budget; (b) carry out a mid-term review between July and December 1997, focusing on overall progress made in implementing project development and performance objectives; the effectiveness of the training programs; and the quantitative deliveries. The MOE will prepare, two months before the review, the report in sufficient detail for a comprehensive review. Based on the review, an Action Plan, acceptable to IDA will be prepared by MOE for the further implementation of the project; (c) carry out annual reviews to be held no later than October 31 of each implementation year to assess progress and evaluate performance during the previous year especially focusing on the ability of apprentices and masters to pay tuition fees and costs of tool and equipment kits; review and agree on the work program and budgetary allocations for the following year; (d) use IDA's standard bidding documents; (e) ensure that the Government shall maintain qualified and experienced management personnel, assisted by competent staff in adequate numbers in NACVET; and (f) complete the comprehensive labor force survey not later than August 31, 1996. As a condition of disbursements for the release of funds to the Ministry of Employment and Social Welfare for its Labor Force Data System, the Government will appoint qualified staff to the Employment Information Bureau and the five preliminary processing centers. 27. Environmental Aspects. The project has been classified as category C, in view of its negligible environmental impact. 28. Program Obiective Categories. The project's major contribution aims, through the rationalization and upgrading of vocational training, to improve informal sector productivity and to reduce poverty. 29. Proiect Benefits. An awareness will be created of the inefficiencies of long, largely theoretical vocational skill training for a modern sector employment that does not exist. The Government will  - 7 - redirect a part of the resources it currently devotes to this long duration training to more effective, short competency-based training for those already in informal sector employment or apprenticeship programs. Both public and private training providers will become more responsive to labor market realities. Training beneficiaries, represented by the informal sector trade associations, will play an increasing role in determining training course content and trainee and equipment selection. The quality of goods and services produced by the informal sector will improve and productivity and earninlgs will increase, which will in turn lead to an expansion in informal sector employment. The institutional structures for managing an effective vocational training system will be strengthened, and eventually only those institutions that offer meaningful training will be accredited and supported. A system will be developed and put in place that will provide the Government with a regular source of up-to-date labor force data, including data on changes in employment and earnings in different skill areas. Finally, donors will redirect their support for vocational and skill training towards short demand driven programs. 30. Risks. First, the key implementation agency, NACVET, thouglh created in 1990, has up to now, played almost no role in the technical and monitoring aspects of managing the vocational skill training system in Ghana. Second, public and private training providers are not yet fully committed to the provision of practical competency based training for masters and apprentices who might have very low academic qualifications. Third, participants in the new short courses might not always be drawn from apprentices or others who are already employed, but from the unemployed who are ready to grasp at any low cost training that might lead to their eventual employment. Fourth, the unclear division of responsibility between the Ministry of Education and the Ministry of Employment and Social Welfare in the area of vocational and skill training might lead to a dissipation of energies by these agencies on matters not directly relating to project implementation. The first risk has been mitigated by the appointment of the NACVET Director and Deputy Director as well as other key professional staff. The second risk will take some time to be reduced, as only when the institutions have experience in providing new short competency-based training will they be able to make a judgment as to how they might manage such training in the long run. The third risk will be minimized by distributing "intake vouchers" to trade associations for onward distribution to their members. As far as the final risk is concerned, an independent consultant will make recommendations to cabinet as to the delineation of responsibility in skill training between the two Ministries. 31. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed Credit. Lewis T. Preston President by Sven Sandstrom Attachments Washington, D.C. March 9, 1995  -8 - Schedule A REPUBLIC OF GHANA VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT Summary of Project Costs and Financing Plan (US$ million, including taxes and duties) Project Cost Estimates: Local Foreign Total 1. Provision of Training A. Provision of Training for Apprentices 2.2 3.6 5.8 B. Provision of Training for Mastercraftsmen/ Women 1.0 1.5 2.5 2. Institutional Framework A. Technical Implementation (NACVET) 0.6 0.2 0.8 B. Strengthening of the PBME 0.2 0.1 0.3 C. Project Management and Coordination 0.5 0.1 0.6 3. Labor Force Database 0.5 0.1 0.6 Total Base Costs 5.0 5.6 10.6 Physical Contingencies 0.4 0.6 1.0 Price Contingencies 0.4 0.4 0.8 TOTAL PROJECT COSTS 5.8 6.6 12.4 (Totals may not add up due to rounding) Financing Plan: Taxes and Local Foreign Duties Total IDA 3.4 6.2 - 9.6 Government of Ghana 0.3 - 0.6 0.9 Trainees 1.5 0.4 - 1.9 TOTAL PROJECT COSTS 5.2 6.6 0.6 12.4  -9- Schedule S Page 1 of Z REPUBLIC OF GHANA VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT Summary of Proposed Procurement Arrangements (USS million equivalent, including taxes and contingencies) Procurement Methods TOTAL Project Element ICB LCB OTHER N.I.F. COST 1. Works 1.1 Rehabilitation 1.041 1.041 (0.937) (0.937) 2. Goods 2.1 Workshop Equipment for Training Institutions 0.855 0.855 (0.855) (0.855) 2.2 Office Equipment and Furniture 0.171 0.171 (0.153) (0.153) 2.3 TooL Kits for Trainees 5.008 1.118 6.126 (5.008) (5.008) 2.4 VehicLes, Motorcycles 0.217 0.037 0.254 and BicycLes (0.217) (0.037) (0.254) 3. Consultancies 3.1 Project Supervision, Implementation and 0.599 0.599 Monitoring support (0.599) (0.599) 3.2 InstitutionaL DeveLopment 0.121 0.121 (0.121) (0.121) 4. Training 4.1 Local Training/Workshops 2.242 2.242 (0.746) (0.746) 4.4 Training Abroad 0.021 (0.021) (0.021) (0.021) 5. Miscellaneous 5.1 FieLd ALlowances 0.079 0.079 (0.079) (0.079) 5.2 Honorariumx 0.058 0.058 (0.058) (0.058) 6. IncrementaL Recurrent Costs 0.735 0.081 0.816 (0.735) (0.735) TOTAL 6.080 1.212 3.892 1.199 12.383 IDA Financing (6.080) (1.090) (2.396) (0.000) (9.566) Note: Totals may not add up due to rounding. Figures in parentheses are the respective amounts financed by the IDA credit. N.I.F. = Not IDA-Financed. IncLudes contribution by trainees, taxes and duties and Government financing of equipment distribution.  - 10 - Schedule B Page 2 of 2 Summary Disbursement Schedule Amount of the Credit Allocated Percent of Expenditures Category of Expenditures (US$ Million) to be Financed by IDA I. Civil Works .86 90% 2. Equipment, Vehicles, and Furniiture 5.55 100% foreign expenditures 90% local expenditures 3. Training .74 100% 4. Consultant's Services .65 100% 5. Operating Costs .58 90% 6. Refunding of PPF .23 7. UJnallocated .95 Total Credit Amount 9.56 Note: As a condition of disbursement for the release of funds to the Ministry of Employment and Social Welfare for its Labor Force Data System, the Government will have appointed qualified staff to the Employment Intormation Bureau and the five preliminary processing centers. Estimated Credit Disbursements (US$ Million) ID)A Fiscal Years FY96 FY97 FY98 FY99 FY00 FY01 Annual 2.4 1.8 2.0 1.3 1.2 0.9 (Cumulative 2.4 4.2 6.2 7.5 8.7 9.6 l.conomic Rate of Reiurn: Not applicable  - 11 - Schedule C REPUBLIC OF GHANA VOCATIONAL SKILLS AND INFORMAL SECTOR SUPPORT PROJECT Timetable of Key Processing Events (a) Time taken to prepare the project: 21 months (b) Prepared by: Government, with IDA assistance 1/ (c) First IDA mission: March 1994 (d) Appraisal mission: June 1994 (e) Negotiations: February 1995 (f) Board Presentation: March 1995 (g) Planned date of effectiveness: June 1995 (h) Relevant PCRs and PPARs: 1. Performance Audit Report and Project Completion Report: Ghana, Health and Education Rehabilitation Project (Cr. 1653-GH). (Report Number: 13240-GH), June 29, 1994. 2. Performance Audit Report and Project Completion Report: Ghana, First Education Sector Investment Credit (Credit 1744-GH), OED, (Report Number: 12622-GH), August 4, 1994. 1/ This report is based upon the findings of an appraisal mission which visited Ghana in July 1994. The mission members consisted of Messrs./Mmes. Nicholas Bennett (Mission Leader/Principal Planner, AF4GA), P. Stephens (Project Officer, AF4GA), J. Angers (Operations Analyst, AF4PH), S. Berkman (Technical Training Specialist, AFTHR), A. Komenan (Labor Market Specialist, AFTHR), and J. Cresswell (Technical Training Specialist-Consultant); and a post-appraisal mission composed of Messrs. Nicholas Bennett (Mission Leader/Principal Planner, AF4GA), S. Berkman (Technical Training Specialist, AFTCB), and Tsri Apronti (Project Officer, AF4GA). Messrs. Ian Morris (SA3PH), John Middleton (SA2PH), and Joseph Bredie (AFTHR), are the Peer Reviewers for the project. The report was written by Mr. Bennett, with contributions submitted by the mission members. Messrs. Ian Porter and Olivier Lafourcade are the managing Division Chief and Department Director, respectively, for the operation.  - 12 - Schedule Page I of2 THE STATUS OF BANK GROUP OPERATIONS IN GHANA STATvIEENT OF IBRD LOANS AND IDA CREDITS (As of Decem"ber 31. 1994) Amount in USS Million (less carncellation) Loan or Cre,i, Fiscal Number Year Borrower Purpose Bank IDA Undisbursed 9 loans and 52 credits Fully disbursed 189 72 176 20 04 Ot vhich SALs and Progam l.danl' Cr 1393 83 Ghana R.:coo. Imports 40 00 0 00 F-0090 84 Ghana Export Rehab. 35.89 0 00 Cr. 1435 84 Ghana Export Rehab. 40 10 0.00 Cr. 1573 85 Ghana Recons. Import 60.00 0.00 A-0030 86 Ghana Recons. Import 26.97 0.00 Cr. 1672 86 Ghana Industrial Sector Adjust 28.50 0.00 A-0 130 86 Ghana Industrial Sector Adjust 25.00 0.00 Cr. 1744 87 Ghana Education Sector AdjusL 34.50 0.00 Cr. 1777 87 Ghana SAC 1 34.00 0.00 A-0250 S7 Ghana SAC 1 81.00 0.00 A-0251 8S Ghana SAC I 15.00 0.00 Cr. 1911 S8 Ghana Financial SectorAdjust 100.00 0.00 Cr. 1911-1 89 Ghana Financial Sector AdjusL 6.60 0.00 Cr. 2005 89 Ghana SAC 11 120.00 0.00 Cr. 2005-1 90 Ghana SAC 11 5.70 0.00 Cr. 2005-2 91 Ghana SAC 11 830 0.00 Cr.2236-0 91 Ghana Private Invest Promotion 120.00 0.00 Cr.2236-1 92 Ghana Private Invest. Promotion 6.10 0.00 Cr.2236-2 93 Ghana Private Invest Promotion 6.54 0.00 Sub-Total 794.20 0.00 Cr. 1819 87 Ghana Petroleum Ref. & DisL 15.00 4.55 Cr. 1847 88 Ghana Public Enterprise TA 10.50 4.08 Cr. 1854 88 Ghana Cocoa Rehabilitation 40.00 26.96 Cr. 1858 88 Ghana Transpon Rehabilitation l 60.00 11.23 Cr. 1921 88 Ghana Mining Sector Rehab. 40.00 11.56 Cr. 1946 89 Ghana Telecomunications 11 19.00 3.50 Cr. 1976 8 89 Ghana Forest Res. Mvtanagement 39.40 16.94 Cr. 1996 89 Ghana Private SMSE Dev. 30.00 8.64 Cr. 2039 89 Ghana Water Sector Rehab. 25.00 15.10 Cr 2040 89 Ghana Rural Finance 20.00 .36 Cr 2061 90 Ghana Fifth Power (ECG) 40.00 15.85 Cr. 2109 90 Ghana VRAiSixth Power 20.00 17 80 Cr. 2140 90 Ghana Education Sector Adjust II 50.00 8.17 Cr. 2157 90 Ghana Urban 11 70.00 49.85 Cr. 2180 91 Ghana Agic. Diversification 16.50 15.10 Cr. 2192 91 Ghana Transport Rehabilitation 11 96.00 64.63 Cr. 2193 91 Ghana Health & Population 11 27.00 21.96 Cr. 2224 91 Ghana Econ. Management Support 15.00 8.61 Cr. 2247 91 Ghana National Agric. Research 22.00 19.68 Cr. 2278 91 Ghana Comm. SecondarySchis. 14.70 2.27 Cr. 2318 92 Ghana Financial Sector Adjust 11 100.00 43.05 Cr. 2319 92 Ghana National Feeder Roads 55.00 49.73 Cr. 2345 * 92 Ghana Agricultural Sector Adj. 80.00 20.98 Cr. 2346 92 Ghana Nat. Agnc. Exten. 30.40 25.91 Cr. 2349 92 Ghana Lit. & Func. Skills 17.40 13.04 Cr. 2426 93 Ghana Envtal. Resource Mgt. 18.10 15.88 Cr. 2428 93 Ghana Tertiary Education 45.00 41.43 Cr. 2441 93 Ghana National Livestock Services 22.45 19.89 Cr.2467 93 Ghana National Electrification 80.00 79.78 Cr.2498 93 Ghana Urban Transport 76.20 79.55 Cr.2502 93 Ghana Enterprise Development 41.00 41.66 Cr.2508 93 Ghana Primarv School Devt 65.10 66.20 Cr. 2345-1 b * 94 Ghana Agricultural Sector Adj. 5.74 6.06 Cr.2555 94 Ghana Agricultural Sector Invest 21.50 20.59 C2568-0 94 Ghana Local Government Dev. 38.50 40.64 C2604 94 Ghana Comm. Water& Sanitation 21.96 23.33 C2665 95 Ghana Private Sector Development 13 04 13.04 TOTAL 186.22 2666.81 872.91 of which has been repaid 139.18 26.76 TOTAL now held by Bank and IDA 47.04 2640.05 Amount sold 0.3# of which repaid 0.38:t TOTAL undisbursed 872.91 a Approved dunng or after FYSo b Not yet efrective SAIJSECAL or qwuck disbursing component  - 1.3 - GHANA Schedule D STATEMENT OF IFC INVESTMENTS Page 2 of 2 (As of December 31, 1994) Original Gross Commitments Fiscal Amount in USS million Year Borrower Type or Business Loan Equity Total 1985 Ashanti Goldfields Corp. Mining 55.0 - 55.0 i/ 1987 Keta Basin Oil Exploration Oil - 4.5 4.5 2 1987 Canadian Bogosu Resources Mining - 0.5 0.5 1989 Canadian Bogosu Resources II Mining - 0.5 0.5 1990 Continental Acceptances Ltd. Merchant Banking - 0.9 0.9 1990 Wahome Steel Ltd. Steel Mfg. 3.2 - 3.2 1989/90 Canadian Bogosu Resources JII Mining 47.5 0.5 48.0 3/ 1990 Ashanti Goldfields Corp. II Mining 70.0 - 70.0 4/ 1990 Iduapriem Mining - 3.0 3.0 1991 Alugan (AEF) Aluminum 0.3 - 0.3 1991 Plastic Laminates (AEF) Plastics 0.6 - 0.6 2/ 1991 Hotel Investments (Ghana) Ltd. Tourism 4.2 - 4.2 1991 Dimples Inn (AEF) Tourism 0.2 - 0.2 2 1991 Canadian Bogosu Resources IV Mining 0.8 0.4 1.2 1991 Continental Acceptances II Merchant Banking 3.0 - 3.0 1991 Securities Discount House Discount House - 0.2 0.2 1991 Appiah-Menkah (AEF) Soap Mfg. 0.9 - 0.9 1991 Iduapriem II Mining 36.5 - 36.5 5/ 1992 Ghanal Aluminium - 0.4 0.4 1992 Packrite (AEF) Cardboard Mfg. 0.6 - 0.6 1993 Achimota Brewery Beer Mfg. 3.5 1.0 4.5 2 1993 Wahome Steel II Steel Mfg. 2.0 - 2.0 1993 Ecobank Merchant Bank 6.0 - 6.0 1993 Continental Acceptances n Merchant Banking 5.0 - 5.0 1993 Polytex (AEF) Plastic Bags 0.4 - 0.4 1993 BMK - Primewood (AEF) Particle Board 1.0 1.0 1993 Combined Farms (AEF) Agribusiness 0.4 - 0.4 1993 Ashanti Goldfields (AMEP) Mining 140.0 - 140.0 61 1993/94 Ghana Leasing Capital Markets 5.0 0.8 5.8 1994 Ghacem Cement 3.0 0.0 3.0 1994 Palm Royal (AEF) Tourism 1.0 0.0 1.0 1994 Afariwaa (AEF) Agribusiness 0.4 - 0.4 1994 GHUMCO (AEF) Manufacturing 0.6 0.6 1995 Shangri-la Hotel Tourism 0.3 - 0.3 Total Gross Commitment 391.4 12.7 404.1 Less repayments, cancellations 254.3 5.1 259.4 and exchange adjustments Net Commitments Held by IFC 137.1 7.6 144.7 Total Undisbursed 26.0 0.5 26.5 1/ Includes a USS27.5 million participation. 2/ Inveatmenta which have been fully cancelled, terminated. written-off. sold, rcdeemed, or repaid. 3/ Includes a US$29.0 million participation. 4/ Includes a US$35.0 million participation. 5/ Includes a USS30.0 million participation.   IBRD 2(s746s B U R K I NA FASO GHANA (2; -T-umo r-7N / Bo I .) 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BEeA S TERN Juobeso os / (New / Obos JAs ren Odarecsi pk\ W'o~~~~~~~~~~~s~~~r see As,t Ko.de I0b, . 2 Adr B.Donkwo NQeese SirusirN KOFOR DUA So,5,sor B N 55150 Desso- ...~~~ Ec. lose Arroh- oDj .g~ on OHf n Ak owodoo r Keto E-ce 9 0.,ka, Fos, .-3s. Ado AS TE R W N T RNA L Akfer soo n vso srrrAd W ~ ~ ~ s0 Eo S ?N L sProso A,sroSoer,o >4 Tem-o Aboro Arolsko / f4S2ACCRA A C C R A i \n