Sri Lanka - Second Vocational Training Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 16180 IMPLEMENTATION COMPLETION REPORT DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A SECOND VOCATIONAL TRAINING PROJECT (Credit 1698-CE) December 19, 1996 Population and Human Resources Division Country Department 1 South Asia Region This document has a restricted distribution and may be used by recipients only in the perfornance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = SLRupees (Rs) US$1.00 = Rs 50.0 (January 1996) FISCAL YEAR (FY) and ACADEMIC YEAR (Govermnent of Sri Lanka ) January 1 - December 31 PRINCIPAL ACRONYMS USED CITP Construction Industry Training Project DCA Development Credit Agreement GTZ Deutsche Gesellschaft fuer Technische Zusammenarbeit GDP Gross domestic product GNP Gross national product GOSL Government of Sri Lanka ICTAD Institute for Construction Training and Development ICB International Competitive Bidding IDA International Development Association ILO International Labor Organization MEHE Ministry of Education and Higher Education MOFP = Ministry of Finance and Planning NCCASL National Construction Contractors Association of Sri Lanka NAITA National Apprenticeship and Industrial Training Authority NCB National Competitive Bidding OUSL Open University of Sri Lanka PCU Project Coordination Unit SDR = Special Drawing Rights SEC = State Engineering Corporation UNDP = United Nations Development Program UDA Urban Development Authority Vice President J. Wood Director M. Nishimizu Division Chief B. Herz Task Managers A. Aime and M. Allak  FOR OFFICIAL USE ONLY TABLE OF CONTENTS PREFACE jage EVALUATION SUMMARY Introduction i Project Objectives i Implementation Experience and Results i Other Donor Inputs iv Other Project Features iv Cost Recovery v Sustainablity of the Project and Future Operations v Key Lessons Learned vi Part I- Project Implementation Assessment A. Background 1 B. Project Objectives and Description 2 C. Linkages to the First Vocational Project 3 D. Achievement of Objectives and Factors Affecting the Project 4 Component 1: Institutional Development 5 Component 2: Skill Training 5 Component 3: Management Training 7 Component 4: Instructor Training 7 Component 5: Monitoring and Evaluation 7 E. Other Donor Inputs 8 F. Studies 8 G Other Activities 9 H. Cost Recovery 9 I. Project Sustainability 10 J. Evaluation of Program Objectives 11 K. Bank Performance 12 L. Borrower Performance 12 M. Future Operations 13 N. Key Lessons Learned 13 Part II- Statistical and Data Tables Table I Summary of Assessment Table 2 IDA Credits Relevant to the Project Table 3 Project Timetable Table 4 Credit Disbursements: Cumulative, Estimated and Actual This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Table 5 Key Indicators for Project Implementation Table 6 Project Targets and Achievements Table 7 Studies Included in the Project Table 8-A Project Costs Table 8-B Project Financing Table 9 Status of Legal Covenants Table 10 Bank Resources: Staff Inputs Table 11 Bank Resources: Missions Table 12 Summary of Technical Assistance and Consultants Used Annexes 1. Mission's Aide-Memoire (with Operation Plan) 2. Borrower's Contribution to ICR Miscellaneous Attachments A List of Institutions where Tools Equipment were Supplied B List of National and Provincial Seminars Used to Disseminate New Technology C Overview of the Role of the National Association of Construction Contractors of Sri Lanka D Summary of Construction Norms and Tendering Procedures/documentation Standardized Through ICTAD E List of Fellowships Awarded by the Project F Construction and Rehabilitation Works Carried Out by ICTAD Map: No. 28407  IMPLEMENTATION COMPLETION REPORT Democratic Socialist Reiublic of Sri Lanka Second Vocational Trainin2 Proiect (Credit 1698-CE) PREFACE This is the Implementation Completion Report (ICR) for the Second Vocational Training Project in the Democratic Socialist Republic of Sri Lanka for which a credit in the amount of SDR 10.0 million (US$ 15.0 equivalent) was a approved on May 5, 1986 and made effective on April 4, 1987. The Credit was closed on June 30, 1996 with one year extension of the project closing date with SDR 10.0 million (US$ 15.0 equivalent) disbursed. The project was cofinanced by a UNDP/ILO technical assistance component for US$3.5 million from 1987 to 1992. The final disbursement was approved on November 21, 1996 and all the Credit funds were expended with an undisbursed balance of zero. The ICR was prepared by Messrs. M. Allak, A. Aime and Ms. S. Vedamuthu with the assistance from Ms. R. Serrano (SAIPH) of South Asia Region. Peer reviewers were Messrs. G. Sinclair, B. Parvez, and J. Bregman. The report was reviewed by Ms. L. Lowenstein (SAl CO), Ms. V. Abraham (LOAAS), Messrs. Singh/Litvak (SASVP), J. Socknat (ASTHR), and by the Environmental Division (ASTEN). The report was also reviewed by Mr. P. Blay, Acting Division Chief, and Mr. H. Gassner, Acting Project Advisor. The borrower provided comments on the draft ICR and its own evaluation of the project is included in Annex 2 of the ICR. The preparation of this ICR was begun during the Bank's final supervision mission in May 1996 and is based, inter alia, on the Staff Appraisal Report (Report No.5958-CE), the Credit Agreement, supervision reports, correspondence between IDA and the Borrower, and internal IDA memoranda.   IMPLEMENTATION COMPLETION REPORT Democratic Socialist Republic of Sri Lanka Second Vocational Training Proiect (Credit 1698-CE) EVALUATION SUMMARY Introduction 1. This was the second project financed by International Development Association (IDA) in the vocational training sector in the Democratic Socialist Republic of Sri Lanka. The project was designed to complement the first vocational training project (Credit 1130- CE) and to address the increasing local and foreign demand of skilled manpower in the construction industry. The aims of the project were to: (i) create and upgrade an institutional framework to sustain training and industry development efforts started under Credit 1130-CE; (ii) increase the supply of semi-skilled, skilled, and managerial personnel to the industry; and (iii) improve the quality of manpower supplied to the sector. The project implementation was successful and achievements met and surpassed the targets set during preparation Proiect Obiectives 2. Project objectives were to: (i) establish the Institute for Construction Industry Training and Development (ICTAD) and support an intensive management training program; (ii) increase the supply of skilled and semi-skilled workers for construction industry through training in construction related trades and workers certification; (iii) support an extensive training programs for managers and supervisors of all grades in the public and private sectors; (iv) increase the number of qualified skill trades and management instructors in order to improve the quality of construction training; (v) support the establishment of a system for monitoring project inputs (financial and material) and outputs (trainees) in a an up-to-date and timely manner through conducting training needs assessment studies and tracer studies. (vi) institute a cost recovery system in vocational training for the construction trades through the fees, the sale of trainee products and services and other income generating activities. Imiplementation Experience and Results 3. The project objectives were complementary to the first vocational training project and in line with the evolving sector's needs. The project took advantage of initial capacity i  building and lessons learned from the first project. The project was designed for eight years. Its effectiveness was delayed by one year. The delay in effectiveness was due to the lengthy process it took to clear the UNDP financed technical assistance component. The closing date was extended by one year, based on the delay in project effectiveness and some interruptions due to political disturbances. The credit amount was reduced in 1994 from SDR 13 million to SDR 10 million due to large currency fluctuation of the Rupee combined with accrued SDR and lower training costs. The provisions of the Development Credit Agreement have been complied with, with only minor amendments. The implementation reports show an impressive achievements over the project period in the areas of institutional development, training activities, training links to industry needs, cost recovery, and sustainability that has met or surpassed the project targets. The implementation results of each project component are outlined below: Component 1 - Institutional Development 4. ICTAD was established in the first year as a semi autonomous authority. Its headquarters and workshops at the training centers were built and fully equipped with modem facilities. ICTAD's organizational chart and cadre were finalized and qualified staff was appointed. During the project period, ICTAD's embarked on an intensive staff development program that involved 28 foreign and 194 local experts and 106 foreign and 255 local training fellowships. Such an investment had considerable returns as it upgraded the staff and management skills and provided them with wide exposure on latest technology and operation techniques that were applied during project implementation. Such training and international exposures increased the staff horizons enabling them to undertake important cost recovery measures and to prepare ICTAD's sustainablity plan for 1996-2000. Component 2 - Skill Training 5. To increase the supply of semi-skilled, skilled and managerial personnel to the construction industry, ICTAD trained over 71,000 new and 51,000 existing workers in construction related crafts (142 percent and 196 percent of the project target respectively). ICTAD used updated training modules, with 70 percent of the courses offered in existing government training centers and 30 percent in NGO and private sector centers. That flexible approach allowed training to be undertaken at lower costs with coverage in all parts of the country. The delivery of courses was based on annual construction industry surveys and special regional needs identified by the construction industry. Tracer studies showed that 80 percent of the trainees usually found employment contrary to a range of 20 to 60 percent in other national vocational/technical programs. In addition, workers' salary increased substantially after training, for example, the salary of the heavy machinery operator increases by 166 percent after training. ICTAD provided career counseling and facilitated workers integration in the labor market. 6. As for trade testing and upgrading, the appraisal target of 40,000 workers was reviewed in 1994 by IDA and the Government and was found to be unrealistic in respect to the type and level of trade testing. ICTAD and its partner agency (NAITA) has ii  managed to test only 23,900 workers representing 60% of the original target. Main problems were insufficient incentives for domestic construction workers to seek certification and the low passing rate of those who were tested (50%). Emphasis was made on "bridge" training of employed craftsmen to upgrade the skills required in the trade testing in order to improve the pass rate. ICTAD established an outreach program with NCCASL to provide trade test awareness programs, on site bridge courses, and self assessment instruments to help workers determine their strengths and weaknesses in the skills required. Component 3 - Management Training 7. Substantial progress was achieved in management training. The total trained in upper, middle and lower levels of management was over 6,500 managers (125 percent of appraisal estimate). In relation to the original targets, training was more heavily concentrated among the upper and middle management. Within the management program, ICTAD conducted open management programs for over 300 construction plant managers. The delivery of ICTAD management training programs has resulted in improved preparation of bid documents, introduction of modernized construction management techniques and record keeping, better use of skilled and unskilled workers and equipment/technology at construction sites, and increased contractor willingness to use more suitable construction materials. These measures resulted in better constructed buildings. An important contribution has been the establishment of the National Construction Contractor Association of Sri Lanka (NCCASL) which established a code of ethics for their members to follow. Component 4 - Instructor Training 8. The instructors' training and updating in skill trades, introduction of heavy equipment operator training and upgrading of mechanics, and introduction of management courses were given priority attention. About 1,200 instructors were trained (233 percent of the target). The instructors were upgraded to teach training modules (with ILO assistance in preparation and initial training) and as a result improved the quality of construction training in the institutions and increased program responsiveness. It also lead to the establishment of fee generation activities supported by the construction industry. Component 5 - Monitoring and Evaluation 9. The establishment of ICTAD as a semi-autonomous entity, overviewed by a Board of Directors which met monthly, greatly facilitated project implementation and monitoring activities. The monitoring process was improved annually and resulted in well-prepared progress reports that enabled management to address, with occasional delays, most of the arising issues identified by the Government, construction industry, contractors and the IDA missions. 10. ICTAD has taken pioneering actions to establish and update the links between training activities and construction industry needs. Industry was asked to identify its iii  training needs and give feedback on the various training programs to increase responsiveness of the training programs and their content. ICTAD has conducted four training needs assessment surveys for the construction industry and four tracer studies based on sample surveys covering up to 17 percent of the graduates. The monitoring process was frequently examined to increase response. The final supervision mission met with the ICTAD's Board of Directors and the NCCASL and they praised ICTAD for its responsiveness to training needs in the construction industry and their assistance with the introduction of new technology. NCCASL indicated that if ICTAD had not been established as a semi-autonomous entity, the above progress would have been nearly impossible within the national bureaucratic structures. 11. The project financed studies of different aspects of employment and training in the construction industry, which were useful in shaping policies and industry practices. An UNDP co-financed (ILO executed) technical assistance component provided much of the technical support for the studies. Other Donor Inputs 12. A UNDP/ILO technical assistance and fellowship project (US$3.5 million) supported the institutional and staff development and strengthening at ICTAD from 1987 to 1992, followed by IDA funded technical assistance. ILO experts made some important contributing towards the development of management skills and training modules. However, ICTAD felt that during the initial period of the project, the rigid pattern of technical assistance recruitment reduced the benefits of that component. The process of recruiting LO experts was lengthy, their recruitment was for long duration, and their qualifications were not always responsive to training needs. When the ILO contract was ended, ICTAD started managing the component under the IDA credit in a more flexible way, i.e. recruiting specialists faster, mostly for shorter duration and according to the sector's emerging requirements. Other Proiect Features: 13. The eight years allocated for project implementation allowed the project to fully assess its activities and due to the favorable SDR rate enabled ICTAD to carry out some additional related activities (all falling within the original project description), all of which have had and will continue to have great impact on the construction industry. These activities are: (i) registration and training of construction contractors and organization of a contractors guarantee fund; (ii) development of standardized bidding documents for the construction industry which have now become the standard National Competitive Bidding documents (NCB) accepted by the Government and the Bank; (iii) development of guides for contractors and alternative construction materials and bringing new technology and equipment to the country; (iv) updating and improvement of construction statistics and information dissemination; (v) building a permanent supervisory and management training center to assist with the introduction of new training programs and technology; (vi) as a result of the ICTAD staff and some industry representative training and participation in external seminars, Sri Lanka construction industry has established strong permanent links iv  to construction industry, labor organization and training centers in Asian countries; and (vii) building a permanent residential complex for the staff and trainees at the Operators Training Center at Anuradhapura. Cost Recovery 14. The only provision of cost recovery under the project, as originally approved, was to recover the cost of materials from the trainees to ensure the availability of essential and better quality training materials. ICTAD, however, went much further. It embarked on aggressive ways of income generating and greatly exceeded the cost recovery target. The total revenue produced increased more than six times during 1989-1995, reaching Rs 32 million (US$800,000); as a share of operating costs, revenue increased from 6 to 30 percent during the same period. ICTAD's success in income generating compares favorably with that in other countries for comparable projects. However, we were pleased that ICTAD is working on plans to increase recovery further to 42% by 2000 and it needs to continue efforts to maximize revenue so as to ensure sustainability in a difficult fiscal environment. 15. ICTAD's close involvement with industry and trade associations has yielded better quality training and employability of graduates; it has used these contacts to make more relevant the courses offered by the training institutions through which it works. The example of close links with employers is one that needs to be followed by other vocational and technical training institutions in Sri Lanka. It should be noted that in effect ICTAD has taken over from the ministries concerned part of the work of coordinating public sector training institutions, so reducing costs to those ministries. Sustainabiltity of the Project and Future Operations 16. The Government has strong commitment to the future of ICTAD following project closing date (June 30, 1996). A draft Cabinet Memorandum, outlining the Construction Act and ICTAD's functions and activities, was approved by the Cabinet in March 1996. The bill is scheduled to receive final approval by the Parliament in early 1997. Continuing the practice established under the project, ICTAD has prepared a detailed Business Plan for 1996-2000 and a summarized Financing Plan. According to these plans, ICTAD is expected to receive Rs 30 million annually to cover salaries and overhead expenditure during 1996-2000; meanwhile, ICTAD's income generating activities were expected to increase substantially and reach Rs 29.5 million by 2000 and would cover 42 percent of total costs. 17. Furthermore, plans for ICTAD to audit Government and foreign contracts in construction industry for a 0.25 percent fee of the total contract value are under way and a provision has been made in the draft construction bill for ICTAD to undertake technical auditing on consultancy basis as needed. Such an activity is expected to generate significant income estimated at Rs 38 million (more than operational costs in 1995). v  ICTAD is currently revising its business plan to reflect these additional activities and expect further increase in income generation by 2000. 18. The Bank does not plan a future operation with ICTAD at this stage. It believes that the two projects have enabled that institution to be solidly established and sustained. ICTAD is expected to continue to play an important role in the strengthened construction industry. Key Lessons Learned 19. The following are the key lessons learned from the project implementation experience: * Project implementation was enhanced by ICTAD and IDA staff taking into consideration the experience and lessons learned during the first vocational project; * The establishment of ICTAD as a semi autonomous institution with policy and implementation authority enabled the institution to be staffed by younger and trained officers. Much of ICTAD's success can be linked to the hiring practices that were more flexible than public service practice; * The delegation of authority to a Board of Directors facilitated the addressing of emerging problems and enabled the institution to implement the project in a more responsive manner; * ICTAD was able to acquire the construction industry's support and become a major catalyst in the construction sector as a result of the institution's good performance and continued Government support. * The training assessments, tracer and impact studies facilitated responsive management decisions and more responsive training programs; * ICTAD reached a more favorable employment rate of graduates by the introduction of a timely career counseling system and by facilitating entry to employment; * The offering of responsive programs allowed ICTAD to gradually introduce cost recovery. The contractors supported the fee system as they experienced good skill transfer; * The combination of regional staff visits to similar training institutions enabled ICTAD to adapt international training courses/modules and develop a core of local expertise exposed to the latest technology and management practices; * ICTAD's practice of using existing Government, NGO and private sector facilities for its training activities was more economical and increased the use of training facilities and allowed courses to be given in more skills and in all regions of the country; * ICTAD's utilization of primarily short-term and skill focused technical assistance was more economical and facilitated capacity building in the construction industry; * The close collaboration between ICTAD and the related professional organizations such as Sri Lanka Institute for Engineers, Sri Lanka Institute of Architects, and the NCCASL (through representation in ICTAD Board of Directors), and the coordination of their activities, has facilitated implementation and addressed evolving needs; vi  * The carrying out of the eight training needs assessment surveys for the construction industry and tracer studies over the project period has lead to changes in training curriculum and has achieved substantial results in establishing the links between training programs and labor market needs; * ICTAD piloting income generation was a bold step within a society which advocates free services. This approach demonstrated a clear vision and strengthened the sustainability of ICTAD; * ICTAD's close involvement with industry and trade associations has yielded better quality training and employability of graduates; it has used these contacts to make more relevant the courses offered by the training institutions through which it works. The example of close links with employers is one that needs to be followed by other vocational and technical training institutions in Sri Lanka. vii   Democratic Socialist Republic of Sri Lanka Second Vocational Trainine Proiect (Credit 1698-CE) IMPLEMENTATION COMPLETION REPORT Part I: Project ImDlementation Assessment Project Identitv Name: Second Vocational Training Project Credit: 1698-CE Unit: South Asia Country: Sri Lanka Sector: Education A. Backaround: 1. The Government has invested in training programs as a necessary part of its strategy to successfully implement its industrialization and modernization program. The increased demand for skilled workers especially in engineering and construction trades within the country, and the migration of workers to the Middle East increased the demand for technical education and vocational training. The relative neglect of this field was recognized and the need to provide increased financing was also accepted. The provision for technical and vocational training increased from Rs 26 million in 1972 to Rs 348 million in 1983. The other major decision taken by the Government was not to restrict the outflow of skilled workers from the country, but to introduce more training programs which would produce skilled workers in sufficient numbers to meet the local and foreign demand. 2. The Government adopted an ambitious development program during the mid 1970s which committed a large share of public revenues to irrigation, power generation, and housing and urban development. These investments created substantial demands on the construction industry and created about 100,000 new jobs. In addition to the increased domestic demand on skilled workers, the outflow of skilled workers to the Middle East also grew significantly during this period. A large percentage of these were skilled and semi skilled workers in the construction industry, with drivers, mechanics, carpenters and masons accounting for nearly two-thirds of the total. This growth trend was slowed in the early 1980s as the Government was compelled to cut public expenditure to reduce the budget deficit and as a result, investment in construction was either reduced or maintained at the 1980 levels except in the case of foreign-funded construction activities. 1  3. Government projections for the construction sector for the period 1985-89 showed an annual growth rate of 8 percent for the investment and 3 percent for labor productivity. On this basis it was estimated that there was a total need for 120,000 workers in construction related trades in the economic sectors during that period. To assist with the reduction of that skill gap, introduce new technology and strengthen the construction industry and contractor development, the GOSL sought World Bank assistance. Based on Government data and Bank mission projections it was estimated that the total training needs for the project period 1987-1996 would be about 50,000 new entrants and the upgrading of about 26,000 existing workers for a total of about 76,000 persons (average of 8,400 per year). The training capacity developed under the project was calculated at about 6,000 workers per year and it was expected that these estimates would further be refined and updated through training needs assessment studies to be under taken during the project period. 4. Policy Context and Linkages to the Sector Policies: The project's direct linkages and response to national policies were very strong. National policies stressed were mainly related to meeting the local and foreign demand for skilled manpower, consolidate, coordinate, and certify different skilled training programs, increase the content of curricula and relevance to labor market needs, and ease the complete reliance of training programs on public financing and introducing cost recovery measures and user fees. The project's conceptual base and preparation was shared and well understood by the Government and IDA and was appropriate as a second IDA financed project in vocational training. The roles and responsibilities of the PIU and the implementing agency, the Institute for Construction Industry Training and Development (ICTAD), were well defined at the start of the project and were flexible enough to allow adjustments during implementation. The project has successfully addressed the national policies in construction industry training and achievement has surpassed t.ne SAR targets for most of its components as outlined below. B. Proiect Obiectives and Description: 5. The main objectives of the project were to: (i) create an institutional teamwork to sustain training and construction industry development efforts started under Credit 1130- CE; (ii) increase the supply of semi-skilled, skilled, and managerial personnel to the industry; and (iii) improve the quality of manpower supplied to the sector. The institutional development objective would be achieved by establishing and developing ICTAD. The manpower supply objective would be achieved by training about 50,000 new and upgrading about 26,000 existing semi-skilled, skilled, and managerial workers in the construction industry. The quality improvement objective would be achieved by (a) instituting an instructor training and upgrading program; (b) strengthening monitoring and evaluation of training and industry development; and (c) trade testing and certifying about 40,000 skilled workers and supervisors. 6. Another objective of the project was to institute a cost recovery system in vocational training for the construction trades through the fees, the sale of trainee products and services, and other generating activities. The cost recovery system would be 2  on the basis of a detailed study of the financial and economic costs and benefits of publicly financed construction industry training, the impact on the Government budget, and the proportions of costs to be shared by trainee, Government, and private sector. During negotiations, the Government provided an assurance that by December 31, 1989 the total cost of stipends and trainees tool kits would be supplied; and by December 1994, about 50 percent of the cost of consumable materials, would be financed from sources other than the general revenues of the Government. 7. The project components to achieve the above goals were: * institutional development: establishing the Institute for Construction Industry Training and Development (ICTAD) and supporting 11 staff years of expatriate expert services and 96 staff years of local expert services for the management training and 19.6 staff years of international and regional fellowships and 121.5 staff years of local training; * skill training: to increase the supply of skilled and semi-skilled workers for construction industry through; (i) extending training to construction trades not covered by existing programs, (ii) increasing the range of competencies of semi-skilled workers, and (iii) certifying the quality of skill training by testing workers to National skill Standards. During the project period, 72,000 skilled and semi skilled workers would be trained and/or upgraded in various trades, and of these 40,000 would be trade-tested and certified; * management training: during the project period, 5,700 new and existing managers and supervisors of all grades in the ministries and authorities related to construction and the private sector will be trained. Specific training would be provided to all levels of management (upper, middle and supervisory). Government provided an assurance that by January 1, 1990, all upper level management courses would be financed by the trainees or their employers; v instructor training: 500 instructors in skill trades, equipment operators and mechanics, and in management subjects were targeted to be trained to increase the number of qualified skill trades and management instructors; * monitoring and evaluation: the project supports the establishment of a system for monitoring project inputs (financial and material) and outputs (trainees) in an up-to- date and timely manner with quarterly progress reports. Support was also given to conduct four training needs assessment studies and four tracer studies. C. Linkaees to the First Vocational Proiect 8. The project objectives were enhanced by the lessons learned from the first vocational project and were complementary to the first vocational training project and in line with the evolving sector's needs. The project took advantage of initial capacity building and lessons learned from the first project. The following table illustrates these linkages. 3  First Vocational Project (Credit 1130-CE) Second Vocational Proiect (Credit 1698-CE) Projed mangemnt within Govement stt lacked flxibility A senu-autonomous mangeent structure (ICTAD) managed by a to be responsive board of directors with inter-ninisterial representation was established Limited training of staff in existing insituions ICTAD embarked on extensive training program thtu included intemational exposure for ICTAD staff and institutiots' trainers The goal of using exstang instutions for traiiing encountered ICTAD benefited from procedures clarified during the first project adninistrative difficulies Initiated construction indsry skill training ICTAD benefited from the experience ofthe first project and was and experienced major institutional / organizational problenms able to surpass appraisal training targets (130 to 160 peroent) and reaching less thmn 60 percent oftraining goals increased graduates' employability (average of 80 percent versus 20-60 percent in other programs) Encountered difficulties intritdicing heavy equipment training ICTAD was able to build on the heavy equipment training pilot (started only at the end ofthe project) program and set up the first national training center. Graduates were all employed and their salaries increased by an average of 166 Experienced major problems with developing training modules due The project included a UNDPIILO technical assistance component to attempting to create rather than adaptexisting modules. for the adaptation of existing ILO modules Experienced problem with implementation of needs assessmnit ICTAD successfully carried out eight needs asemett and tracer and tracer studies studies, increasing progran responsivenes to tndustry needs, building on the experience of the first project Availability of data from these studies facilitated the development of ICTAD's sustainability plan The development of linkages with the contractors was slow ICTAD increased its dialogue with the contrctors which rsltd in the developmtent of the NACCSL This enhanced the contactors and ICTAD interactions and in tum improved the responsivenes of the traning prograns D. Achievements of Obiectives and Factors Affecting the Project 9. The implementation reports show impressive achievements over the project period in the areas of institutional development, training activities, training links to industry needs, cost recovery and sustainability that has met or surpassed the project targets. Due to large currency fluctuation of the Rupee combined with accrued SDR value and lower training costs, the project financing was revised in 1994 and the total credit adjusted from SDR 13.0 million to SDR 10.0 million. The project was prepared for eight years and was extended once for one year (closing date was June 30, 1996). An overview of project disbursement pattern can be found in Table 4. 10. The project experienced several amendments to the Development Credit Agreement: (i) in August 31, 1989, changing the implementing agency from the Ministry of Local Government Housing and Construction to Ministry of Policy Planning and Implementation; (ii) in November 1990 adjustments were made to maintain reimbursement at 80 percent (category 4) to calendar year 1992 and declining afterwards (based on delay of project effectiveness and political turmoil); (iii) December 16, 1993: Three amendments--(a) the addition of a new Category "Agency Training Programs" at a disbursement rate of 80 percent--reallocation (SDR 2.0m) of funds from Category 4 to meet estimated expenditures; (b) the deletion of paragraph 4 of Schedule 4 regarding the transfer of contractor registration activities from the ICTAD the NACCSL; and (c) in Section 3.01 (a) substituting "the Ministry of Housing and Construction" for "the Ministry of Policy Planning and Implementation"; and (iv) in November 2, 1994, it was agreed to extend the project closing date to June 30, 1996. Overall the project objectives were achieved or exceeded, and the project components and their status are outlined below. 4  Component 1 - Institutional Development 11. The objectives were to establish the Institute for Construction Industry Training and Development (ICTAD) and support an extensive national and international training and upgrading program for its staff. The targets listed in the SAR were: 19.6 staff years of international and regional fellowships, 121.1 staff years of local training, 11 staff years of expatriate expert services and 96 staff years of local expert services for the management training. 12. The results were that ICTAD was established as a unit of Urban Development Authority immediately after project effectiveness (1986) to act as coordinator, enabler, facilitator, and policy formulator in training and other industry related activities. In June 1992, the institution became a statutory authority attached to the Ministry of Housing and Construction under State Industrial Corporation Act. Its headquarter was built and fully equipped with up-to-date equipment and facilities. Simultaneously, ICTAD's organizational chart and cadre were finalized, and qualified staff was appointed (many as counterpart to the UNDP/ILO experts who were assisting with the management and organization of training modules. When UNDP/ILO technical assistance support ended in 1992, the DCA was amended to include that support using primarily short-termed focused specialists. In addition to specialist training given by the technical assistance, ICTAD undertook an intensive staff development program that included 28 foreign and 194 local experts and 106 foreign and 255 local training fellowships. 13. The above staff capacity has been very positive as demonstrated by the effective management of ICTAD and it being sought-out by the public and private sectors to manage large construction sites, such as the Oberoi Hotel. All the work program of supplying workshops, studies, mechanic operator training center and heavy equipment training center were completed as scheduled by ICTAD staff and their use conforms with the goals established during appraisal. Component 2 - Skill Training 14. The Objective was to increase the supply of skilled and semi-skilled workers by training about 50,000 new construction workers and craftsmen, and upgrading another 26,000 exiting semi-skilled, skilled, and managerial workers in the construction industry (76,000 in total) and finally to test and certify about 40,000 workers. 15. The results were that the number of workers trained have surpassed the target numbers set in the project SAR by a wide margin (Figure 1). A total of 70,484 new entrants 142 percent of goal was achieved (59,829 craftsmen, 4,286 mechanics, 2,972 operators, 1,132 supervisors). To improve quality, another 1,765 were upgraded. About 50,814 of existing semi-skilled, skilled, and managerial workers (28,649 existing craftsmen, 311 mechanics, 592 operators and 4,869 managers and supervisors and 16, 459 other training) were trained, achieving 196 percent of the appraisal goal. 5  Figure 1: Percentage of Number of Workers Trained to the SAR Target for Three Components 22S 200 31a Skre Skrx Mag Tr Intco Irz 17n tn ce n g ct n a private sectorcenterss . Th cobnto of goenetadN_cnesalwdtann 126 ...........l.0 _ , 1 _ coverage_ in al pat of th conr.Ti:apoca gral assse aA opeat at SkTrNew SkTrExt Mang. Tr Instuctor Tr 16. ICTAD trained and upgraded about 70 percent ofthe new workers in existing government technical colleges and training centers and about 30 percent in NGO and private sector centers. The combination of govevment and NGO centers allowed training coverage in all parts of the country. This approach has greatly assisted ICTAD operate at lower costs and to expand the use of its up-to-date training modules. However, due to ICTAD's requirement that all instructors be trained, prior to offering courses some initial delays occurred. Once staff1was trained and the necessary equipment supplied, the institutions ran timely and responsive training programs. The courses taught were based on annual construction industry surveys or special regional needs. The use of simple surveys contrary to complex mechanisms, often devised for projects, proved to be very suitable. This joint effort assisted the training centers improve their curriculum, provided them with training materials and in a few case physical facilities were upgraded. Finally ICTAD supplied the trainees with tool kits at subsidized prices and provided them with career counseling facilitating the sigh integration in the labor market. l17. As for trade testing and upgrading, the appraisal target of 40,000 workers supervisors was reviewed by the 1994 IDA mission and the Govert nent and was found to be unrealistic in respect to the type and level of trade testing. ICTAD and its partner agency (NAITA) has managed to test only 52% of the 1993 target and the challenge of meeting the target has been problematic throughout the project period. The total workers tested at the end of the project was 23,900 representing 60% of the original target. Main problems were insufficient incentives for domestic construction workers to seek certification and the low passing rate of those who were tested, averaging 50%. Emphasis was made on "bridge" training of employed craftsmen to upgrade the skills required in the trade test in order to improve the pass rate. ICTAD established an outreach program with NCCASL to provide trade test awareness program, on site bridge courses, and self assessment instruments to help workers determnine their strengths and weaknesses in the skills required. 18. To achieve the above skill training objectives, ICTAD built / rehabilitated workshops and supplied them with equipment in Government and NCTOs and private 6  institutions. In addition, ICTAD improved the first national heavy equipment operator training center where training and testing are carried out. Component 3 - Management Training 19. The objective was to train about 5,200 new and existing managers and supervisors of all grades in the ministries and authorities related to construction and the private sector covering all levels of management (upper, middle, and supervisory). 20. The results were impressive. The project trained 6,500 upper, middle and lower levels managers in the construction sector management reaching 125 percent of the SAR target (Figure 1). In relation to the original targets, training was more heavily concentrated among the upper and middle management. The numbers of trained senior managers was more than three times the target and the middle management number was more than double the target. Within the management program, ICTAD conducted open management programs for over 300 construction plant managers. The delivery of ICTAD management training programs has resulted in improved preparation of bid documents, introduction of modernized construction management techniques and record keeping, better use of skilled and unskilled workers and equipment/technology at construction sites, and increased contractor willingness to use more suitable construction materials. These measures resulted in better constructed buildings. An important contribution has been the establishment of the National Construction Contractor Association of Sri Lanka (NCCASL) which established the code of ethics for their members to follow. Component 4 - Instructor Training 21. The objective was to increase the number of qualified skill trades and management instructors through training 500 supervisors in skill trades, equipment operators and mechanics, and in management subjects. 22. The results were that instructors training in these categories were given a priority in the project implementation. The number trained reached almost 1164 instructors i.e. 233 percent of the target set in the SAR (Figure 1). This accomplishment enabled the instructors to teach update training modules and has improved the quality of construction training in the institutions. The result is that many of the training activities were able to establish more responsive programs and institute fee generation. Component 5 - Monitoring and Evaluation 23. The Objective was to asses the outcome of the training activities and to link training to industry needs by conducting four training needs assessment studies and four tracer studies. 24. The results were that ICTAD has taken pioneering actions to establish and update the links between training activities and construction industry needs. Industry is asked to identify its training needs and give feedback on the vari_u training programs. Their 7  inputs were used for business planning and to reform the training methods and curriculum. ICTAD has conducted four training needs assessment surveys for the construction industry and four tracer studies based on sample surveys covering 7 to 17 percent of the graduates. The monitoring process was well organized. Through the combination of progress reports examined by the ICTAD Board of Directors, tracer studies and impact studies, the project activities were suitably scrutinized and adjusted frequently to increase response. The final supervision met with the ICTAD Board of Directors, which was attended by the NCCASL, and were impressed by their keen desire to have training which leads to employment or improves the industries' performance. They praised ICTAD for its responsiveness to industry needs and for its assistance with the introduction of new technology. It was also observed that if ICTAD had not been established as a semi autonomous entity, the above would not have been possible. 25. These tracer studies and impact studies have provided a better understanding of the construction sector needs that have lead to changing and updating training programs and improving the external efficiency. The recent tracer study showed that 80 percent of the trainees have found employment, mostly in the private sector. In comparison, graduates from training centers not affiliated with ICTAD have a much lower employment rate that ranges from 40 to 65 percent depending on the level and quality of the center. In addition, the workers' salary in certain training programs increases substantially after training, for example, the salary of the heavy machinery operator increases by 166 percent after training. E. Other Donor Inputs 26. A UNDP/ILO technical assistance and fellowship project (SR 86/001) of US$ 3.5 million supported the institutional and staff development and strengthening at ICTAD from 1987 to 1992 followed by IDA funded technical assistance. Support accounted for about 11 staff years of technical assistance for primarily short-term consultants. The ratification of this support unfortunately delayed project effectiveness for a year after board approval and later in the project period increased costs forced ICTAD to depend on the credit funds to complete these activities. ILO experts made some important contribution towards the development of management skills and training modules. However, ICTAD felt that during the initial period of the project, the rigid pattern of technical assistance recruitment reduced the benefits of that component. The process of recruiting ILO experts was lengthy, their recruitment was for long duration, and their qualifications was not always responsive to training needs. When the ILO contract was ended, ICTAD started managing the component under the IDA credit in a more flexible way i.e. recruiting specialists faster, mostly for shorter duration and according to the sector's emerging requirements. F. Studies 27. Studies included in the project are outlined in Table 7. The key studies supported by the project included: financing study for ICTAD, employment study, training needs assessments, tracer surveys, analysis of outstanding claims of contractors, aggregate 8  production, sub-contractual services in the construction industry, approaches to attain Government objectives in quality of work, assessment of construction industry training requirements, study on the quality and durability of imported timber, employment patterns of ex-trainees/impact study, labor market information study and finally the sustainability study for ICTAD. All of these have contributed to ICTAD and the country's knowledge and improved the responsiveness of the construction industry in Sri Lanka. These studies made substantial impact on policy formulation, type and quality of timber utilized, training programs content and duration, trade testing, contract disputes, and revenue generation. 28. Although a high percentage of the study recommendations have been implemented, many still need follow-up. The sustainability study has allowed ICTAD to plan its post project activities and to find a permanent attachment with the Ministry of Housing. G. Other activities 29. ICTAD has carried out numerous activities, beyond the project objectives, all of which will have had and will continue to have great impact on the construction industry. These activities are: (i) registration and training of construction contractors; (ii) introduction of construction excellence awards for contractors; (iii) organization of a contractors guarantee fund; (iv) development of standardized bidding documents for the construction industry which have now become the standard National Competitive Bidding documents (NCB) accepted by the Government and the Bank; (v) development of guides for consultants and contractors; (vi) taking a lead in the development of alternative construction materials (roof tiles, bricks, etc.); (vii) bringing new technology and equipment to the country along with specialists from other countries to train in their use; (viii) updating and improvement of construction statistics and information dissemination; (ix) updating ICTAD staff and private sector representatives in the construction methodology through staff participation in international seminars/workshops and technology symposiums; (x) building a permanent supervisory and management training center to assist with the introduction of new training programs and technology; (xi) building a permanent residential complex for the staff and trainees at the Operators Training Center (OTC) at Anuradhapura; and (xii) purchasing construction equipment to strengthen the training and revenue generating capacity of OTC. As a result of the ICTAD staff and some industry representative training and participation in external seminars, Sri Lanka construction industry has established strong permanent links to construction industry, labor organization and training centers in Japan, S. Korea, Singapore, Australia, UK, USA, India, Hong Kong, and the Philippine. ICTAD staff is now being asked to present some of the knowledge and know-how it has applied/adapted to Sri Lanka in neighboring countries. H. Cost Recovery 30. The main provision for cost recovery under the project, as originally approved, was to recover the cost of materials from the trainees to ensure the availability of essential and better 'quality training materials. This measure was an important step in the right direction in a system that otherwise provides vocational and technical education and 9  training free of charge. ICTAD, however, went much further. It embarked on aggressive ways of income generating and greatly exceeded the cost recovery target. Revenue is derived from almost twenty activities: from hiring equipment, registration of contractors, sale of publications, fees on courses, workers' testing, and renting building facilities. The total revenue produced increased more than six times during 1989-1995, reaching Rs 32 million (US$800,000); as a share of operating costs, revenue increased from 6 to 30 percent during the same period (Figure 2). While ICTAD's success in income generating compares favorably with that in other countries for comparable projects, we were pleased that ICTAD is working on plans to increase recovery further to 42% by 2000. Progress in increasing cost recovery will assist in strengthening ICTAD's autonomy and sustainability. ICTAD needs to continue efforts to maximize revenue so as to ensure sustainability in a difficult fiscal environment. Figure 2: Revenue Generated and its Ratio to Operational Costs, 1989-1996 36 30 _ Revenue 30 - - % Rev to Costd 25 ,g 26-/ 20 .20~~~~~~~~~~~~~~~2 S f * * 3 3 156 315 * 16- _ _ _ _ e10 10 e 6 _ 0 0 1989 1990 1991 1992 1993 1994 1996 31. ICTAD's close involvement with industry and trade associations has yielded better quality training and employability of graduates; it has used these contacts to make more relevant the courses offered by the training institutions through which it works. The example of close links with employers is one that needs to be followed by other vocational and technical training institutions in Sri Lanka. It should be noted that in effect ICTAD has taken over from the ministries concerned part of the work of coordinating public sector training institutions, so reducing costs to those ministries. L Proiect Sustainability 32. The Government has strong commitment to the future of ICTAD following the project closing date (June 30, 1996). A draft Cabinet Memorandum, outlining the Construction Act and ICTAD's functions and activities, was approved by the Cabinet in March 1996. The bill is expected to be approved by the Parliament in early 1997. Continuing the practice established under the project, ICTAD has prepared a detailed Business Plan for 1996-2000 and a summarized Financing Plan. According to these plans, ICTAD is expected to receive Rs 30 million annually to cover salaries and overhead 10  expenditure during 1996-2000, meanwhile, ICTAD's income generating activities are expected to increase substantially and reach Rs 29.5 million by 2000 and would cover 42 percent of total costs. 33. Furthermore, plans for ICTAD to audit Government and foreign contracts in construction industry for a 0.25 percent fee of the total contract value are under way and a provision has been made in the draft construction bill for ICTAD to undertake technical auditing on consultancy basis as needed. This will involve streamlining the processes of tendering, award, and monitoring implementation. Such an activity is expected to generate significant income estimated at Rs 38 million (more than operational costs in 1995) and at the same time, it will require additional expenditure for creating a technical division with specialized staff. ICTAD is currently revising its business plan to reflect these additional activities and expect further increase in income generation by 2000. 34. In addition to the above, the project outcomes, as listed above, affecting the construction industry have been formalized and permanent improvement of that sector's operation is expected. The project, although lengthy in time, has been able to achieve substantial goals that a shorter operation would clearly not have achieved. The duration of the project has allowed most of the activities to be fully integrated into the system and thus sustained. J. Evaluation of Proaram Obiectives 35. The project was designed to complement the first vocational training and to address the increasing local and foreign demand of skilled manpower. The project implementation was successful and achievements surpassed the targets set during preparation. The overall project objectives fall within four major categories: (i) institutional building to sustain training and industry development efforts; (ii) increase the supply of semi-skilled, skilled and managerial personnel to the industry to improve the quality of manpower supplied to the sector, (iii) establish linkages with the labor market and make training more demand driven; and (iv) intensify cost recovery activities to enhance project sustainability . These objective categories and their activities and results are summarized in the following table: Objective Activity / Component Result Institutional building * Establishment of ICTAD Very successfiul imnplementatiorL ICTAD was * Intensive training progran for the staff established in the first year as a semi-autonomous and management of ICTAD authority and fully equipped with modern facilities and qualified cadre. ICTAD's management implemented an extsive staff development program that involved 28 foreign and 194 local experts and ________________ 106 foreign and 255 local training fellowships Increase the resources for the * Train workers in construction related Very successfully implemented ICTAD trainig supply of semi-skilled, skilled crafts reacded 142 percent for new workers and 196 and managerial personnel and * Trade testing and upgrading percetm of the targets set for existing workerL The improve manpower quality * M ganaent trajg number of trained managers and instrutors also * suistructortainig -rpassed the target (125 percent and 233 perent * supply of workshops and training centers respectively). As for trade testing the appraisal target of 40,000 workers was reviewed and was found to be unrealistic. ICTAD and NAITA has managed to test only 23,900 workers representing 60% of the originai target 11  Objective Activity / Component Result Linkages with the labor market * Conduct eight needs assessment and ICTAD has taken pioneeing actions to establish and tracer studies update the links between trining activities and * Conduct part of the training in industries construction industry needs. It has conducted four * Adjust training programs curriculum training needs assessment surveys for the construction industry and four tracer studies based on sample surveys covering 7 to 17 percent of the graduates. Part of the training is conducted in the industries and industry feedback are used to reform the training mnethods and curriculum. Cost recovery and generating revenue and cost recovery from ICTAD's revenue generating activities reached Rs sustainability hiring equipment and building facilities and 32 million by 1995 and covered 30 percent the from fees on courses, testing, and subscription operation costs. Plans for ICTAD to audit Government and foreign contrts in construction industry is expected to generate significant income estimated at Rs 38 million. ICTAD prepared a sustainability plan for 1995-2000 where generated income is expected to cover 42 percent of costs K. Bank Performance 36. Strengths and weakness: The Bank staff has contributed substantially to the project success through building supportive working relationship and providing effective professional advice and guidance during the project period. The project benefited from a detailed and upfront review of sector issues that led to an effective dialogue and facilitated consensus. The experience of first vocational training project implementation was utilized in designing this project and prepare feasible implementation steps with emphasis on the project's sustainability. IDA's supervision missions often helped to adopt creative and innovative alternatives in implementing the project such as the adoption of capacity building and delivery quality improvement of partner training agencies and the establishment of successful links through twinning arrangement with similar agencies. IDA's performance was satisfactory, and it assisted in setting a framework for the successful implementation that followed. However, the Bank during the last year and a half of the project implementation devoted very little time to this project. Field visits totaled only about 5 days, and increased monitoring would have reduced the major rush of activities during the last three months of project implementation. Other than the latter, the Bank assisted this project and its guidance enhanced its results. One advantage of this operation was that the Bank deployed primarily specialists in the field to supervise the project, facilitating communication and review of issues with the well trained national staff. L. Borrower Performance 37. Strengths and weakness: In general, the Government's performance in the project implementation is quite satisfactory. The Government played an important role during the preparation and appraisal of the project in addressing policy issues and needs in the construction industry. The establishment of ICTAD as a semi autonomous entity and the continuous Government support to that institution has helped make implementation successful. There has been some periods of work disruption and delay of project activities during the early years as a result of political disturbances and instability in 1988 and 1989. In 1994, there was another work disiuption and delay when ICTAD's Board of Directors 12  was dissolved. However, a new board and chairman were assigned after about four months and implementation resumed with the same level of efficiency. The procurement of equipment, goods, and materials, training activities and technical assistance, and studies were well managed and efficiently implemented. The Government made substantial efforts to utilize all the credit proceeds before the end of the project and ICTAD's management embarked on an aggressive program of procurement of needed equipment and training activities during the last few months of the project period. Government, particularly ICTAD staff, organized good mission agenda, prepared excellent progress reports, reduced the duplication of meetings, and facilitated the combination of the ongoing project reviews with discussions of the project's sustainablity plan. Overall, the Government facilitated throughout the project constructive dialogue and undertook timely communications with IDA. Government performance was highly satisfactory during the project. M. Future Operations 38. The Bank does not plan a future operation with ICTAD at this stage. It believes that the two projects have enabled that institution to be solidly established and sustained as indicated above. ICTAD is expected to continue to play an important role in the construction industry, and its model could be used by Government to address some of the other technical education needs. ICTAD, as a semi-autonomous agency, intends to continue to bid and contract its staff for both public and private sector management consultancies and assist with future training assessments. ICTAD is also expected to continue to play a role in the national competitive bidding process. ICTAD's ability to remain sustainable will continue to be linked to its semi-autonomous stature. If that stature was to be changed, ICTAD's sustainability would be more difficult to maintain. N. Key Lessons Learned 39. The following are the key lessons learned from the project implementation experience: * Project implementation was enhanced by ICTAD and IDA staff taking into consideration the experience and lessons learned during the first vocational project; * The establishment of ICTAD as a semi autonomous institution with policy and implementation authority enabled the institution to be staffed by younger and trained officers. Much of ICTAD's success can be linked to the hiring practices of staff that were more flexible than public service practice; * The delegation of authority to a Board of Directors facilitated the addressing of emerging problems and enabled the institution to implement the project in a more responsive manner; * ICTAD was able to acquire the construction industry's support and become a major catalyst in the construction sector as a result of the institution's good perforrnance and continued Government support. * The training assessments, tracer and impact studies facilitated responsive management decisions and more responsive training programs; 13  * ICTAD reached a more favorable employment rate of graduates by the introduction of a timely career counseling system and by facilitating entry to employment; * The offering of responsive programs allowed ICTAD to gradually introduce cost recovery. The contractors supported the fee system as they experienced good skill transfer; * The combination of regional staff visits to similar training institutions enabled ICTAD to adapt international training courses/modules and develop a core of local expertise exposed to the latest technology and management practices; * ICTAD's practice of using existing Government, NGO and private sector facilities for its training activities was more economical and increased the use of training facilities and allowed courses to be given in more skills and in all regions of the country; * ICTAD's utilization of primarily short-term and skill focused technical assistance was more economical and facilitated capacity building in the construction industry; * The close collaboration between ICTAD and the related professional organizations such as Sri Lanka Institute for Engineers, Sri Lanka Institute of Architects, and the NCCASL (through representation in ICTAD Board of Directors), and the coordination of their activities, has facilitated implementation and addressed evolving needs; * The carrying out of the eight training needs assessment surveys for the construction industry and tracer studies over the project period has lead to changes in training curriculum and has achieved substantial results in establishing the links between training programs and labor market needs; * ICTAD piloting income generation was a bold step within a society which advocates free services. This approach demonstrated a clear vision and has led to the sustainability of ICTAD. * ICTAD's close involvement with industry and trade associations has yielded better quality training and employability of graduates; it has used these contacts to make more relevant the courses offered by the training institutions through which it works. The example of close links with employers is one that needs to be followed by other vocational and technical training institutions in Sri Lanka. 14  PART II STATISTICAL AND DATA TABLES Table 1: Summary of Assessments Sri Lanka Second Vocational Training Project (Credit 1698 - CE) A. Achievement of Objectives Substantial Partial Negligible Not applicable 0,') (VI) (V) ) Macro Policies O O O3 0 Sector Policies 0 0 O 0 Financial Objectives Oe 0 0 0 Institutional Development 0 0 0 0 Physical Objectives 0 RI 0 0 Poverty Reduction 0 0 0 0 Gender Issues O E 0 0 Other Social Objectives O 0 O O Environmental Objectives O 0 Oe 0 Public Sector Management O El O 0 Private Sector Development Oe 0 0 0 Other (New Technology)) 0 El O 0 B. Project SuSinabil Like Unlike Uncertain 0 El E C. Bank Performance satisfactorv Satisfactorv Deficient Identification 3 0 0 Preparation Assistance a 0 E Appraisal O 0 el Supervision O 0 03 Hiehl-v D. Borrower Performance satisfactorv Satisfactorv Deficient Preparation O 0 El Implementation El 0 0 Covenant Compliance 0 E E Operation (if applicable) Ol 0 0 Iiighly HiJhl E. Assessment of Outcome satisfactorv Satisfactorv Unsatisfactoiy unsatisfactorv O 0 O E 15  IMPLEMENTATION COMPLETION REPORT SECOND VOCATIONAL TRAINING PROJECT CREDIT 1698-CE Table 2: IDA Credit Relevant to the Project Credit Number Purpose of Year of Project Title Project Approval Status Comments Cr. 1130-CE, Increase the supply of trained 1981 Good Project closed on Construction Industry manpower and to improve the December 31, 1986. Out Training Project level of technical of the Credit of US$13.5 management expertise so million, US$.97 was that the construction industry cancelled. can better meet the demands of Sri Lanka's investment program. Cr. 91 2-BAN, To strengthen management 1979 Marginal Project closed on June Vocabonal Training of vocatonal training, 30, 1987. Project increase the output of the training system and improve the productivity of existing workers. Ln. 2171 -EC, Expansion and diversification 1982 Good Project closed on June Second Vocabonal of Ecuador's vocational 30, 1990. Training Project training system. Cr. 1109-PAK, To modernize the physical 1981 Marginal Project closed on First Vocabonal Training and institutional infrastructure December 31, 1987. Project of occupational training. Ln. 1 252-PR, In addition to strengthening 1976 Good Project closed on Vocational Training the regional infrastructure and December 31, 1980. Project extending the mobile approach, the project was expected to reinforce the advisory services to enterprises and to introduce management training. Ln. 2200-PH, To broaden and strengthen 1983 Good Project closed on April Vocabonal Training industrial training. 30, 1991. Project Relevant Activties by Other Donors Organizabon Activity PerodlYear Status Comments United Nations 1. Expert Services (foreign) 1987-1992 Completed USS3.5m cost sharing, Development Program 2. Fellowships, both foreign UNDP, GOSUIDA. (UNDP) & local The technical assistance 3. Equipment requirements for the skill 4. Local consultants and instructor training components was financed by UNDP, and implemented by ILO. Project terminated on December 31, 1992. 16  PROJECT COMPLETION REPORT SECOND VOCATIONAL TRAINING PROJECT CREDIT 1698-CE Table 3: Project Timetable Date actual/ Steps in project cycle | Date planned | latest estimate Identification (Executive Project Summary) 03/83 06/23/83 Preparation 09/06/84 Appraisal 08/85 08/06/85 Negotiations Mar/Apr 86 03/18/86 Letter of development policy (if applicable) NA NA Board presentation 06/86 05/13/86 Signing - 11/07/86 Effectiveness Jul/Aug 86 04/15/87 First tranche release (if applicable) NA NA Midterm review (if applicable) 01/91 04/01/92 Project completion 12/31/94 06/30/96 Loan closing 06/30/95 06/30/96 17  IMPLEMENTATION COMPLETION REPORT SECOND VOCATIONAL TRAINING PROJECT CREDIT 1698-CE Table 4: Credit Disbursements: Cumulative Estimated and Actual (US$ thousands) FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 Appraisal estimate 300 4,480 7,760 9,520 10,660 11,760 12,840 13,880 15,000 15,000 15,000 Actual 894 3,044 4,094 4,944 6,062 6,728 7,869 8,925 10,843 11,785 13,885 Actual as % of estimate 298% 68% 53% 52% 57% 57% 61% 64% 72% 79% 93% Date of final disbursement Nov-96 Disbursement Pattem: EstirnateActual 16,000 14,000 * Appraisal estimate ,,12,000 S-Actual l> >l >l 10,000 8,000 ~6,000 I-4,000 2,000 0 6CX 0 IL 4 [ E lt 1.9  Table 5: Key Indicators for Project Implementation KEY IMPLEMENTATION INDICATORS IN ESTIMATED ACTUAL SAR/PRESIDENTS REPORTS 1. Institutional Development Objective - create an During the project period of 1.1.1 ICTAD established as a unit of Urban Development institutional framework to sustain training and 09 years. (from 1 986 - Authority (UDA) in 1986. industry development efforts started under credit 1995) 1.1 .2 ICTAD's Headquarters Building with 48,500 sq.ft. 1130 - CE Estimated project cost 13 million SDR constructed & fully equipped with modern facilities. 1.1 Establishing and developing the Institute for 1.1.3 ICTAD's organizational chart & cadre finalized and staff Construction Training and Development (ICTAD) appointed. 1.1.4 UNDP/ILO Technical Assistance project SR 86/001 (US$ 3.5M) implemented to develop & strengthen institutional capacities of ICTAD from 1987 to 1995. 1.1.5 Corporate planning process introduced and utilized to formulate strategies and operations of ICTAD; continued from 1988. 1.1.6 Staff development of ICTAD and partner agencies through provision of 106 foreign training fellowships & 255 local training fellowships. 1.1.7 Appointment of 28 Foreign Experts for 282 manmonths & 1 94 local consultants to provide specialized inputs to ICTAD activities. 1.1.8 Provision of equipment such as vehicles, computers & heavy equipment to ICTAD & machinery & equipment to Partner Agencies 1.1.9 Construction of buildings for Operator Training Center of ICTAD & 18 Storages & extensions to workshops of Technical Colleges (Partner Agencies) 1.1.1 0 ICTAD acted as coordinator, enabler, facilitator & policy formulator both in training and industry related activities and was accepted by constituents of construction industry through formal & informal links and operations. 1.1.11 Establishment of links with similar agencies abroad and ensuring regional 1.1.12 Establishment of ICTAD as a statutory Authority in June 1992 under State Industrial Corporation Act. 19  KEY IMPLEMENTATION INDICATORS IN ESTIMATED ACUAL SARI PRESIDENTS REPORTS 1.1.13 Preparation of Business Plan 1995 - 2000 which includes measures to increase cost recovery from the present 18% to 40% by the year 2000 to make ICTAD's operations sustainable. 1.1.14 ICTAD undertook income generation activities to meet identified training of persons. The revenue generated amounted to 18% of the operating cost. 1.1.15 ICTAD's role as coordinator/facilitator and policy formulator both in training and industry related activities are accepted by constituents of Construction industry through formal and informal links and operations 2. Manpower supply objective - increase the supply of 50,000 new entrant semi-skilled, skilled and managerial personnel to the construction workers industry. 2.1 Training about 50,000 new entrant construction 2.1.1 A total of 70,484 new entrants trained by June'96 workers Craftsmen (achievement 124%) wk Cam- 59,829 Craftsmen - 4,286 Mechanics - 2,972 Operators - 1,132 Supervisors - 1,765 Other training - (Awareness program) 3. Quality improvement objective - Improve the quality of manpower supplied to the sector 3.1 Institute an instructor training and upgrading 500 instructors 3.1.1 A total of 1164 instructors trained by June'96. program for 500 instructors (achievement 233%) a) 968 crafts, operator and mechanic training instructors and management training b) 196 construction management and other trainers 3.2 Training of about 26,000 existing semi-skilled, 26,000 existing semi- 3.2.1 A total of 50,814 existing personnel in the construction skilled and managerial workers in the construction skilled and managerial industry provided further training by June'96 (achievement industry workers in the construction 195%) industry - 28,649 Existing craftsmen - 311 Mechanics - 529 Operators - 4,869 Construction Managers & Supervisors - 16,456 Other training program 20  KEY IMPLEMENTATION INDICATORS IN ESTIMATED ACTUAL SAR/PRESIDENTS REPORTS (awareness & bridging courses) 3.3 Strengthen monitoring and evaluation of training 3.3 a)1 Conduct of Manpower Surveys Training Needs Assessments. a) monitoring training aspects 1. Mar. '89 Craft, operative levels - completed 2. Dec. '89 (Management level)- completed 3. 1993 completed 4. Nov.'96 to Apr. '96 (completed) 3.3 a)2 Conduct of Tracer Surveys (TS) TS 1 - June 1988 - completed S 2 - July 1988 - completed TS 3 - Oct. 1990 - completed TS 4 - 1995 - completed 3.3 a)3 Publishing the Directory of Construction Training Agencies 1991 - (English) 1995 - (English version) 1 996 - (Sinhala version 3.4 Trade testing about 40,000 skilled workers and (World Bank review 3.4.1 supervisors missions have (a) Trade testing of 23,900 construction workers and acknowledged that the supervisors. (60%). original SAR target is b) Establishment of a net work of trade testing centers. unrealistic) c) Formulation of National Skill Standards and Trade Tests 40,000 persons d) Assisting the National Apprentice and Training Authority (NAITA) to establish a through put capacity to test 2500 applicants annually. 4.0 Improvement of the operating environment 4.0.1 Establishment of mechanisms for monitoring of the construction industry development. li) Conduct of the competition "ICTAD Award for Construction Excellence" among construction contractors; conducted annually from 1991 to 1995. (ii) Establishment and operation of Provincial Construction Industry coordination-ordination Committee with the participation of Provincial Administration and the Provincial branch of the National of Construction Contractors Association of Sri Lanka (NCCASL); carried out from Nov. 1992 onwards. (iii) conduct of regular meetings with professional 21  KEY IMPLEMENTATION INDICATORS IN ESTIMATED ACTUAL SAR/PRESIDENTS REPORTS associations on the initiative of ICTAD to improve interaction; continued from 1 994. (iv) Setting up of a "Information Center and Issue of quarterly ICTAD bulletin of construction statistics - indicating cost indices; (v) Information on Price indices for materials, Labor Wages, dry hire rates for plant and equipment and composite indices for single story non-residential buildings etc issued. (vi) Introduction of alternative building materials such as the Micro Concrete Roofing (MCR) tiles (vii) Development of the local building industry (viii) Upgrading of Consultancy Services (ix) Standardization of a bidding documents (x) Preparation of manual on Fire prevention in buildings (Fire Code) (xi) Allocation of Construction Industry Sectoral Information as specific sector in the National Accounts facilitating provision of sector related information. 5.0 Development of Contractors 5.0.1 Promotion of the formation of the National Association of Construction Contractors of Sri Lanka (NACCSL) and assisting it with loans and other facilities for expansion. 5.0.2 Implementation of a system of registration and grading of contractors' 5.0.3 NICKELS membership being made a condition for tendering for government contracts 5.0.4 Development of small contractors through seminars, workshops and other awareness programs 22  SECOND VOCATIONAL TRAINING PROJECT - IDA -1698 CE TABLE 6 DIVISION: Training SECTION: Research & Development SAR TARGETS VS. ACHIEVEMENTS NO TYPE OF ACTIVITY SAR TARGET ACHIEVEMENT % ACHIEVED 1.0 TRADE TESTING 1.1 Overall (Gr. l1l, ll & I) 40000 23900 60 1.2 Grade III 24000 18747 78 1.3 Grade II 10000 5101 51 1.4 Grade I 6000 52 1 2.0 TRACER SURVEYS (T/S) 2.1 T/S#1: ICTAD Graduate of '81 to '85 sample population of 8.3% of 30,000 Sept '87 to Jun '88 Jun '88 2.2 T/S#2: ICTAD Graduate of '85 to '89 sample population of 8.9% of 27,500 Jul '89 to Jun '90 Oct '90 2.3 T/S#3: NATIONAL Graduates of '91 & '92 sample population of 17% of 15,660 Dec '91 to Jul '92 Mar '94 2.4 T/S#4: ICTAD Basic Training Graduates of '81 to '92 sample population of 7.3% Dec '93 to Jun '94 June '96 of 40,923 _ 3.0 TRAINING NEEDS ASSESSMENT (TNA) 3.1 TNA#1: Craftsmen, Operators and Mechanics Jan '88 to Sept '90 Mar '96 3.2 TNA#2: Construction Supervisors and Managers Jan '90 to Sept '90 Dec '96 3.3 TNA#3: All Construction Industry Persons Jan '92 to Jul '92 May '93 to Nov '93 3.4 TNA#4: All Construction Industry Persons Dec '93 to Jun '94 Jun '96 23  TABLE 7: STUDIES INCLUDED IN PROJECT STUDY PURPOSE STATUS IMPACT OF STUDY Study on financing of ICTAD to ascertain possibility of cost recovery relating to June 1987 - by Peoples Bank Recommendations considered but supported training programmes training Research Group found most recommendations not Cost (Rs.590,000) feasible. However ICTAD re-directed its activities to generate income from alternative sources in order to defray direct operational costs of training Tracer Survey - Ascertain affiliation rates & employment pattern of Tracer Survey conducted by Dept Remedial action taken particularly in Employment Status of past trainees (81 - 86) of Census & Statistics. Completed regard to on-site training as per ICTAD Trainees in January'88 recommendations Cost Rs.300,000 Training Needs Assessment for Ascertain training requirements of these Consultancy by Teams Ltd Results utilised for training policy Craftsmen, Mechanics in the categories of construction manpower Completed in March'88 formulation Construction Industry Cost Rs. 742,000 Training Needs Assessment of Ascertain training requirements of Supervisory & Consultancy by Teams Ltd. -do- Supervisory and Management Management personnel in construction industry Completed in December'88 Personnel in the Construction Cost Rs.712,000 Industry Tracer Survey (No 2) Ascertain affiliation of graduates of ICTAD Survey by Dept of Census & Remedial action taken as per sponsored training programmes and study their Statistics. Completed in June'90 recommendation - particularly with employment status since 1985 Cost - Rs.300,000 reference to National Trade Tests Cost Rs.235,000 24  STUDY PURPOSE STATUS IMPACT OF STUDY Study on Employment Generation Ascertain employment generation potential in Completed in 1991 Sensitised Ministry of Policy Planning, in Construction Industry of Sri construction industry Rs. 108,000 Housing Construction regarding Lanka employment potential and policy formulation Assist in settlement of outstanding claims of Completed in 1991 All disputed outstanding claims of Outstanding claims of Contractors contractors Consultants M/S Mudalige & contractors settled through mediation - for Construction Work carried out Nagalingam Ensured healthy relationships between for State Agencies Cost Rs.40,000 clients & contractors Ascertain actual situation of aggregate production Consultant Devenko (Sri Lanka) Created awareness. Action taken to Study on Aggregate Production in the country and to make appropriate 1991 structure aggregate industry recommendations Cost Rs. 500,000 Assessment of potential for sub-contracting in Sri February 1991 Results utilised for policy formulation Study on Subcontractual Services Lanka Cost Rs. 250,000 in the Construction Industry Ascertain strengths & weaknesses of Gramodaya Completed in 1992 Results utilised for policy formulation Study of Gramodaya Mandalaya Mandalayas relating to their undertaking of rural Cost Rs. 150,000 financial Ability, Quality of Work, construction contracts Attainment of Government Objectives and recommend measures for improvement 25  STUDY PURPOSE STATUS IMPACT OF STUDY Study on Training Needs to a) ascertain availability of manpower in Completed in 1993 Results utilised for policy formulation Assessment Manpower Survey construction industry and to b) assess their Consultant Devenko (Lanka) training requirements Ltd. Cost Rs. 1.5 Million Training needs assessment in the to ascertain training requirements of construction Completed in 1993 Results utilised for policy formulation construction industry workers Consultant Devenko (Lanka) LTD. National Tracer Survey (No 3) of to ascertain affiliation rates, employment patterns Completed in 1993 Results utilised for policy formulation ex. ICTAD trainees social status mobility Dept. of Census & Statistics Study on Kempas Timber to examine use of imported Kempas timber and Completed in 1993 Created an awareness of improving justification for its use Consultant Mrs Jayathilaka quality of timber through treatment Moratuwa University Cost Rs.150,000 Tracer Survey (no 4) Covering to ascertain affiliation - employment patterns of Completed in 1995- 96 Results utilised for policy formulation ICTAD trainees from 1982 - 1994 ICTAD ex-trainees Study on Labour Market to ascertain availability, utilisation demand/supply, Completed in 1996 Results expected to be used for policy information system (LMIS) training input/output and manpower trends of Consultant - Moratuwa University formulation construction personnel Cost Rs.900,000 26  PROJECT COMPLETION REPORT SECOND VOCATIONAL TRAINING PROJECT CREDIT 1698-CE Table 8A: Project Costs Appraisal estimate (US$M) Actual (US$M)* Local Foreign Local Foreign Components Costs Costs Total Costs Costs Total Institutional Development (ICTAD) 1.14 1.40 2.54 4.50 Skill Training 8.50 4.42 12.92 19.04 Management Training 0.96 0.53 1.49 2.25 Instructor Training 0.31 0.51 0.82 0.85 Monitoring and Evaluation 0.17 0.56 0.73 1.86 Baseline cost 11.08 7.42 18.50 28.50 Contingencies: Physical 0.63 0.41 1.04 Price increase 2.67 2.27 4.94 Subtotal 3.30 2.68 5.98 Total project cost 14.38 10.10 24.48 28.50 *Local and foreign data not available. 27  PROJECT COMPLETION REPORT SECOND VOCATIONAL TRAINING PROJECT CREDIT 1698-CE Table 8B: Project Financing Appraisal estimate (US$M) Actual (US$M) Local Foreign Local Foreign Source Costs Costs Total Costs Costs Total IDA: Civil Works & Professional Fees 2.07 2.07 1.26 0.88 2.14 Furniture 0.13 0.13 ) Equipment 2.60 2.60) Vehicles 0.23 0.23) Books 0.28 0.28) 0.06 3.54 3.60 Expert Services 1.50 1.50) Fellowships 0.86 0.86) 0.44 3.95 4.39 Salaries 1.42 1.42) Tool Kits 0.83 0.83) Consumable Materials 4.60 4.60) Operation & Maintenance 0.48 0.48 ) 3.52 3.52 Agency Training Programs 0.23 0.23 Subtotal 0.00 15.00 15.00 1.76 12.12 13.88 UNDP: Expert Services 0.70 0.70 0.82 0.82 Fellowships 0.32 0.32 0.50 0.5 Subtotal 1.02 1.02 1.32 1.32 Domestic: Government of Sri Lanka Civil Works & Professional Fees 0.23 0.23 0.09 0.09 Furniture 0.04 0.04 0.23 0.23 Equipment 0.37 0.37 0.33 0.33 Vehicles 0.13 0.13 0.21 0.21 Salaries 1.09 1.09 6.54 6.54 Tool Kits 0.63 0.63 0.06 0.06 Stipends 2.14 2.14 0.63 0.63 Consumable Materials 3.47 3.47 0.68 0.68 Operation & Maintenance 0.36 0.36 5.85 5.85 Subtotal 8.46 0.00 8.46 14.62 14.62 Total project financing 8.46 16.02 24.48 16.38 13.44 28.50 23  PROJECT COMPLETION REPORT SECOND VOCATIONAL TRAINING PROJECT CREDIT 169B-CE Table 9: Status of Legal Covenants Original Rsedl covenat Present Fuiiment Fu llmt Agremnt Secuon Type Stats Dae Date Descriptionof Cvenant Comments Credit 3.01, S 4, 1 Project C 08/30/87 Carry out a study on the financing of In compliance. (a) implementation vocational training in the construction program industry and review findings with IDA. 3.01, S 4, Project C 12131189 The cost of stipends and trainee tool kits to In compliance. 1 (b) (i) implementation be financed by sources other than general program budget revenues. 3.01, S 4, Project C 12/31/94 50% of cost of consumable materials (or In compliance. 1 (b) (ii) implementation some other percentage to be agreed with program IDA) to be financed by sources other than general budget revenues. 3.01, S 4,2 Project C Appoint all additional staff in ICTAD and In compliance. implementation CHPB at lvels and in accordance with program schedule agreed with IDA. 3.01, S 4, 3 Project C 06/30/80 Ensure that aN instructor training functions In compliance. implementation are transferred from ICTAD to the National program Technical Teachers Training College (NMC). 3.01, S4, 5 Project C 01109/90 Ensure that all upper-vel management In compliance. implementation training courses are financed by the program trainees or their employers. 3.01, S4,6 Project C 01131/88 Conduct four training needs assessments In compliance. implementation and review findings with IDA. program 3.01, S 4,7 Project C 01/31/88 Conduct four tracer studies and review In compliance anc implementation findings with IDA exceeded. The fourtl program study is beins completed, and ir addition, a projec impact study and sustainability plan were prepared 3.01, S 4, 8 Project C Undertake a mid-term review and In compliance. implementation evaluation of the project with IDA to make program adjustment in program based on implementation experlence. Article I, Financial C 04/15187 Open Special Account in the Central Bank. In compliance. 1.02 Article IV, Financial C Maintain records and accounts according to In compliance. 4.01 sound accounting practices. Article IV, Accounts C Have accounts, including the Special In compliance 4.01 (b) Account, audited annually by independent auditors. Article IV, Accounts C Fumish the audit report to the Association In compliance. 4.01 (b) within 9 months of end of year. Article IV, FinancialV C Maintain separate records and accounts for In compliance. 4.01 (c) Accounts statement of expenditure. 29  PROJECT COMPLETION REPORT SECOND VOCATIONAL TRAINING PROJECT CREDIT 1698-CE Table 10: Bank Resources: Staff Inputs Stage of Planned Revised Actual Project Cycle Weeks US$000 Weeks US$000 Weeks US$000 Through appraisal 61.0 103.6 61.0 103.6 61.0 103.6 Appraisal--Board 2.2 3.9 3.9 36.4 3.9 35.4 Board--effectiveness 8.8 16.1 8.8 16.1 8.8 16.1 Supervision 92.7 215.2 88.1 207.0 88,6 209.7 Completion 9.0 15.2 9.0 15.2 8.4 23.8 TOTAL 173.7 354.0 170.8 378.3 170.7 388.6 Board date: 5/13/86 Effectiveness: 4/15/87 30  PROJECT COMPLETION REPORT SECOND VOCATIONAL TRAINING PROJECT CREDIT 1698-CE Table 11: Bank Resources: Missions Performance rating Number Specialized Implemen- Develop- Stage of Month/ of Days in staff skills tation ment Types of project cycle year persons field represented status objectives problems Identification Jun/83 1 17 Sr. Economist Preparation Sep/84 1 5 Sr. Economist Appraisal Aug/85 6 17 Sr. Economist Economist Technical Educator Management Specialist Architect Construction Specialist Supervision I Jul/86 4 11 Sr. Economist 1 1 Conditions TechJAgricul.Specialist of effective- Architect ness not Management Specialist met Supervision II Mar/87 2 6 TechJAgricul.Specialist 1 1 Not yet Architect effective Supervision III Nov/87 1 9 TechJAgricul.Specialist 1 1 Trg.Shortfal Supervision IV May/88 2 5 Tech JAgricul.Specialist 1 1 Trg.Shortfal Sr. Architect Supervision V Nov/88 2 5 Projects Advisor 1 1 Trg.Shorffal Sr. Architect Supervision VI Nov/89 2 9 Sr. Architect 2 1 None Const. Ind. Specialist Supervision VII May/90 2 14 Sr. Architect 2 1 Trg.Shorffal Voc. Trg. Specialist Supervision Vil Nov/90 2 7 Sr. Architect 2 1 None Const. Ind. Specialist Supervision IX May/91 3 11 Sr. Architect 2 1 None Const. Ind. Specialist Voc. Trg. Specialist Supervision X Apr/92 3 10 Sr. Architect 2 1 None Voc. Trg. Specialist Const. Ind. Specialist Supervision Xl Jun/93 2 9 Sr. Implement.Special. 2 1 None Voc. Trg. Specialist Supervision XIl Mar/94 2 11 Sr. Implement.Special. S S None Voc. Trg. Specialist Ed. Moni. Specialist Supervision Xil Jan/95 1 15 Sr. Education Planner S S None Supervision XIV Apr/95 2 12 Sr. Education Planner S S None Economist Supervision XV Mar/96 2 5 Sr. Education Planner S S None Economist 31  Table 12 SUMMARY OF TECHNICAL ASSISTANCE AND CONSULTANTS USED A Technical Assistance programme funded on a cost sharng basis between the GOSL and the UNDP was identified in 1986 to support the Second Vocational Training Project (Credit 1698). The ILO was identified as the executing agency of the Technical Assistance Project titled UNDP/ILO Project SRL 86 001. In-terms of this programme a sum of US$ 3.5 M was identified for this purpose and the project commenced in February 1987. The Project provided technical assistance to a) strengthen the institutional framework of ICTAD b) improve the quality of training for construction personnel c) train different types and levels of skilled construction personnel d) upgrade ICTAD's management and supervisory training programmes; and e) increase the efficiency of the construction industry. Project Development Objectives The project contributed to achieving two of the national development objectives described in the GOSU UNDP fourth Country Programme for Sri Lanka. a) Rehabilitation and development of the physical infrastructure by enhancing the productivity and output of the construction industry; and b) Employment generation and increasing incomes by upgrading the skills of various levels of construction workers and hence their employability. Project Immediate Objectives The primary objective of this project was to provide technical assistance required to achieve the implementation of the overall project. Its immediate objectives were to a) Strengthen the institutional framework of the ICTAD through development of its organisational structure and staff capability in financial and general management and in monitoring and evaluation of project operations and training programmes. 32  b) Improve the quality of training of skilled construction workers, mecha,r-cs arc operators, and trainers, through training needs assessments, the cesign anr development of training programmes, improvement of learning materials, Cesign and development of skill standards and trade tests and the introduction of modern methods and procedures for the management of training programmes c) Assist in increasing and regulating the national pool of different tvpes arc !evels of skilled construction workers, operators, mechanics and trair,ers throucn national, regional and international fellowships, regular national training programmes and trade testing. d) Increase the efficiency of the construction industry through the introcucticn of new technologies and methods, provision of supporting services ;n manpower/ labour force analysis, construction statistics, survey data analysis and data processing and through strengthening the role and institutional capacity of the Association of Construction Contractors and other organisations. The project which commenced in 1987 terminated on 31st December 1992 Interms of the activities of the project the following inputs were provided during the project period. a) Foreign Experts The Services of 36 Foreign Experts were provided b) Fellowships 70 fellowships for 79.95 months costing US$ 838,115.00 were provided to staff of I ICTAD and its partner agencies. C) Local Training Programmes 47 local training programmes involving 77 ICTAD staff and costing approximately Rs. 273,675 were provided during the project period. 33  d) Local Consultants The services of local consultants were obtained on 41 external collaborator contracts costing Rs. 9,109,194.00 d) Equipment Equipment such as audio-visula aids, vehicles, computers, office equipment etc. costing US$ 851,542.00 were provided. The project which was managed by an expatriate Chief Techical Advisers from 1987 was taken over by an ICTAD officer who managed the project as National Project Director from June 1992 till the end of the project. Although the UNDP/ILO TA project terminated in December 1992 both the IDA and ICTAD felt the need for the continuation of Technical Assistance. Which was carried out from January 1993 to the end of the project. Under this programme 16 Foreign Experts were used (some on repeated assignments) During this period 83 officers were sent on fellowships with costing the project Rs. 26,437,280.55. Rs. 293,250/= was spent on local training of ICTAD Officers. The lists of Foreign experts engagea oy the Project both under the UNDPIILO TA Project and under the IDA TA Project from 1993 to the end of thie project are attached hereto. 34  Annex 1 SRI LANKA SECOND VOCATIONAL TRANNG PROJECT LAST SUPERVISION MISSION (MARCH 1996) AIDE MEMOIRE A. Introduction: 1. During the last mission of Messrs. Aime and Allak to Sri Lanka (March 4 -22, 1996), and according to the terms of reference dated February 13, 1996, Mr. Allak visited the Second Vocational Training Project (Cr. 1698-CE) for one week to carry out the final supervision before the project closing date in June 30, 1996. The supervision was focusing on assessing the progress of the projects components and its procurement and disbursement activities. Mr. A. Aime joined Mr. Allak in the last day and both attended the wrap-up meeting on March 22, 1996 which was chaired by the Secretary of the Ministry of Housing, Construction and Public Utilities and attended by the members of the board of directors and senior staff of the Institute for Construction Industry Training and Development (ICTAD). 2. During the visit, the mission attended a seminar on national vocational competence qualifications system (NVCQ) that was carried out by national and international experts. The NVCQ is a system of upgrading and testing that opens opportunities to construction workers to be promoted to higher skill and management levels. 3. The mission discussed the detailed final review progress report prepared by the five divisions of ICTAD and carried out with them a summary report of the divisions' activities. The summary report (attached) contains the project objectives and targets included in the SAR and the output achieved by the five divisions of ICTAD up to the end of 1995. The achievements were compared with the targets in the areas of institutional development, trade training, and research and development (surveys and studies). The report also includes ICTAD's achievement in cost recovery compared to the operational costs and the institute's disbursement pattern during the project period (see project progress summary below). B. Proiect Obiectives: 4. The project objectives were: to create an institutional frame work to sustain training and industrial development efforts started under the first construction project, to increase the supply of semi- skilled, skilled and managerial personnel to the industry, to improve the quality of manpower going into the construction sector. The project was revised and the total credit adjusted from SDR13.0 million to SDR 10.0 million (the projects' disbursement pattern is found in annex 1). The project is eight years old and has been extended once for one year (closing date is June 30, 1996). C. Proiect Prozress Summary: 5. The summary report of ICTAD's activities shows an impressive achievements over the project period in the areas of institutional development, training activities, training links to industry needs, cost recovery and sustainability that has met or surpassed the project targets. a. Institutional development. ICTAD was established as a unit of Urban Development Authority immediately after project effectiveness (1986) to acted as coordinator, enabler, facilitator and policy formulator in training and other industry related activities. In June 1992 the institution became a statutory authority attached to the Ministry of Housing and Construction under State Industrial Corporation Act. Its headquarters was built and was fully equipped with modern facilities and its organizational chart and cadre were finalized and qualified staff was appointed. During the last eight years, ICTAD's management embarked on an intensive staff development program that involved over 350 foreign and local fellowships. b. Training activities. ICTAD trains new workers and upgrade others directly in their own centers and indirectly through assisting other training centers in training the trainers, improving the curriculum, and providing training materials and physical facilities and by providing the trainees with equipment (e.g. 35  tool kits) at subsidized prices and career counseling. The number of workers trained have surpassed the target numbers set in the project SAR by a wide margin. ICTAD trained over 96,000 workers in crafts such as masons, carpenters, electricians, and senior and middle managers (130% of target). In addition, the Operator and Mechanic Training Division within ICTAD provided training on construction equipment mechanics and operators to 8,100 workers (131% of the project target). c. Training links to industry needs. ICTAD has carried out a pioneering actions to establish and update the links between training activities and construction industry needs. Part of the training is conducted in the industries for different duration depending on the type of training and usually industry feedback are used to reform the training methods and curriculum. ICTAD has conducted four tracer studies based on sample surveys covering 7 to 17% of the graduates and four training needs assessment surveys for the construction industry workers. d. Cost recovery: ICTAD's aggressive ways in generating revenue consist of almost twenty activities and most of the revenue comes from hiring equipment and building facilities and from fees on courses, testing, and subscription. The total revenue produced increased more than six times during 1989- 1994 and reached Rs32 million and its share to the operation costs increased from 6% to 30% during the same period. ICTAD has prepared a business plan called "Beyond 2000" that shows that cost recovery will be increased further to reach 42% of the operating costs by 2000. Furthermore, ICTAD is planning to audit Government and foreign contracts in construction industry for a 0.25% fee of the total contract value are under way. Such an activity is expected to generate significant income estimated at Rs38 million (more than operational costs in 1995) and in the same time, it will require additional expenditure for creating a technical division with specialized staff. ICTAD is currently revising its business plan to reflect these additional activities and expect further increase in income generation by 2000. D. Issues: 6. The current main issues are related to the disburement and the Supervision and Management Training building: * Disbursement up to the end of March 1996 reached SDR8.5 million out of the total credit of SDR10.0 million. The remaining balance of SDR1.5 is not likely to be disbursed by the project closing date (June 30, 1996). If all committed activities would be implemented, it is estimated that one million SDR will be spend by the closing date with the remaining balance likely to be canceled. * Construction of the Supervision and Management Training (SMT) building (total cost Rs54 million) started in December 1994 and was scheduled to be finish by February 1996. However, implementation delay occurred due to soil piling, roof selection, and cement shortages. During the field visit, the mission found out that the SMT building is over 60% finished and the contractor is paid about 50% of the total. Most likely the building will not be completed by the project closing date and the mission informed ICTAD that the project will only cover expenditures incurred prior to or at the latest by the projects' closing date. E. Actions: 7. The followings are the main actions that need to be undertaken by ICTAD: * The mission discussed with ICTAD management the ICR guidelines and what needs to be done by ICTAD and by the Bank after project closing date (copies of the ICR guidelines were left with them), and urged them to start preparing their part soon and complete it by September 1996. * The mission urged ICTAD to increase efforts to accelerate the implementation of the current activities such as the SMT building, and speed up disbursement of project activities before the project closing date. * The mission discussed ICTAD's sustainablity plan and its revision according to the institute's expanding activities in the construction industry, such as auditing Government and foreign construction contracts, and requested ICTAD to send the revised plan. 36  F. Summary and Recommendations: 8. The project is operating and progressing very well, has no overdue audit reports (1995 report is due in June 1996), and has received highest rating in achieving its development objectives, implementation progress, compliance with covenants, and its management performance. ICTAD is been managed by qualified and experience staff with good planning capacities and vision, who have been behind the project implementation success. 9. The mission recommends, when preparing the ICR, that more attention should be given to the project as an example of a project well designed, prepared and implemented. Efforts should be made to increase the visibility and profile of such a successful experience and to study key elements of success and draw lessons for similar or other activities especially with regards to project management and cost recovery and sustainability factors. G. Sustainability Plan by Government: 10. The Government has strong commitment to the future of ICTAD following project closing date (June 30, 1996). A draft Cabinet Memorandum, outlining the Construction Act and ICTAD's functions and activities, was approved by the Cabinet in March 1996. The bill is expected to be approved by the Parliament by early 1997. Continuing the practice established under the project, ICTAD has prepared a detailed Business Plan for 1996-2000 and a summarized Financing Plan. According to these plans, ICTAD is expected to receive Rs 30 million annually to cover salaries and overhead expenditure during 1996-2000, meanwhile, ICTAD's income generating activities is expected to increase substantially and reach Rs 29.5 million by 2000 and would cover 42 percent of total costs. 11. Furthermore, plans for ICTAD to audit Government and foreign contracts in construction industry for a 0.25 percent fee of the total contract value are under way and a provision has been made in the draft construction bill for ICTAD to undertake technical auditing. This will involve streamlining the processes of tendering, award, and monitoring implementation. Such an activity is expected to generate significant income estimated at Rs 38 million (more than operational costs in 1995) and at the same time, it will require additional expenditure for creating a technical division with specialized staff. ICTAD is currently revising its business plan to reflect these additional activities and expect further increase in income generation by 2000. 37  Annex 2 SRI LANKA SECOND VOCATIONAL TRAINING PROJECT(Cr. 1698-CE) EVALUATION SUMMARY 1.0 INTRODUCTION In 1981 the government of Sri Lanka established the Construction Industry Training Project (CITP) as a three year "Crash Programme" to meet shortage of manpower in the construction sector. The project which had an initial outlay of US$ 2.54 M concentrated mainly on manpower training. Although attention was given to such subjects as tender procedures, contractors grading systems, contract specifications, quantity surveying and quality control and strategic planning in construction sector etc. the accent was as the accelerated training of construction manpower. In order to affect the necessary changes in the industry and to provide continuity the temporary project (CITP) was transforned into the Institute for Construction Training and Development (ICTAD) which was established as a unit under the Urban Development Authority (UDA). ICTAD under took two major functions - training and industry development. ICTAD's training activities were centered around craft, supervisory and management, operator and mechanic training while industry development was handled by the industry development division which had three major functions a) technology development b) improvement of the operating environment of the construction industry c) contractor development The Project estimated to cost 13 M SDR and was spread over a period of nine years (from 1986 to 1995). The project also provided for a UNDP grant of US$ One Million to assist in the financing of the Technical Assistance component of the project. The goal of the project was to improve the efficiency and effectiveness of the construction industry in Sri Lanka. There were no major risks involved in this project. 2.0 PROJECT OBJECTIVES AND DESCRIPTION " The project objectives were to create an institutional frame work to sustain training and industrial development efforts started under the first construction project, to increase the supply of semi-skilled, skilled and managerial personnel to the industry, and to improve the quality of manpower going into the construction sector. The project was revised and the total credit adjusted from SDR 13.0 million to SDR 10.0 million. The project is nine years old and has been extended once for one year with the present project closing date being June 30, 1996." 3.0 IMPLEMENTATION EXPERIENCE AND RESULTS The Project duration was for a period of nine years (from 1985 to 1996) and is in accordance with the standard profile for education and training projects, in Sri Lanka. In view of domestic civil disturbances which affected project implementation from time to time the project was extended by one year with the project closing date fixed as 31st December 1995 and the credit closing being 30th June 1996. The project objectives were in line with construction sector needs & implementation was good and timely considering the complex nature of the project. 38  4.0 PROJECT PROGRESS The project achievements have been impressive over the project period in the areas of institutional development, training activities and industry development, Cost recovery and sustainability has met or surpassed the expected targets. The status of each activity is given below. a) Institutional development ICTAD was first established as a unit of the Urban Development Authority (UDA) in 1986 following the successful completion of its first IDA project, the Construction Industry Training Project (CITP) to act as enabler, facilitator, co- ordinator and policy formulator both in training and construction industry related activities. Immediately thereafter it moved into its headquarters building which was built and equipped by IDA. Its organisation chart and cadre was finalised and qualified staff appointed thereafter. During the project period ICTAD's management implemented a massive staff development programme/ which involved over 350 foreign and local fellowships. b) Training activities "ICTAD trained new workers and upgraded others using a variety of approaches - viz. (i) directly in their own centers; (ii) indirectly by assisting other training centers improving the curriculum and programs; (iii) training the trainers; (iv) providing training materials, equipment and physical facilities (some new and rehabilitation of others); (v) providing the trainees with equipment (e.g. tool kits) at subsidized prices; (vi) doing career counseling. "The majority of the training centers supported by ICTAD (70%/o) are sponsored by the Government and the rest are run by the NGOs and private sector. The number of workers trained have surpassed the SAR target numbers. To increase the supply of semi-skilled, skilled and managerial personnel to the construction industry, ICTAD trained over 96,000 workers as masons, carpenters, electricians, various construction skills and senior and middle managers reaching 130% of the project target. In addition, the Operator and Mechanic Training Division within ICTAD provided training on construction equipment mechanics and operators to 8,100 workers achieving 131% of the project target In responding to the emerging industry needs, the same division expanded its operations to train an additional 3,000 supervisors and drivers". c) Construction industry development ICTAD is recognised as a focal point for the development of construction industry in Sri Lanka. Its play a vital role in identifying shortcomings and initiating remedial action as far as construction industry is concerned. A considerable amount of work have been done and its impact on the construction industry is already felt. Industry is deeply appreciative of ICTAD's substantial contribution to strengthen the construction industry as a whole. ICTAD's significant contribution is identified below. (i) technology development Conducts studies on alternative construction materials such as compressed soil blocks, micro concrete roofing tiles (MCR), use of kempas and commonly used local timber etc. have been undertaken. Information on construction methods, materials, and equipment available in the other countries and relevant to local conditions have also been provided. Studies on appropriate technology have been carried out and information dessiminated, information on appropriate specifications, standard and building regulations have also been provided. (ii) improvement of the operating environment Construction statistics and price indices are published quarterly and the "Information Center" which has been set-up within ICTAD provides upto date information on construction statistics, cost analysis, price data, etc., available from the date base set-up in ICATD. A Construction Economics Unit which works very closely with the Dept of Censes and Statistics has been set up. The study on "up-grading of consultancy services" has been made and its recommendations 39  are now being implemented. A 'Directory of Consultants" have been published and a system of registration has been initiated. A manual on fire prevention in buildings has been prepared and publications of bidding procedures, contract conditions, pre-qualification requirements etc. have been made. (iii) development of private contractors ICTAD assisted the establishment of the National Association of Construction Contractors of Sri Lanka (NACCSL) with loans and accommodation within its premises. The association has now over 4000 members and several out station branches. A system of registration and grading of contractors has also been introduced and is working statisfactorily. Government contracts are awarded only to those who are registered contractors. A scheme for "National Construction Excellency Awards" have been introduced in 1990 and annual presentations are made with a view to achieving quality assurance at construction sites. A small contractor development programme was conducted through seminars and workshops and is expected to benefit the construction industry as a whole since the bulk of the construction work is handled by small contractors. (d) Cost recovery and sustainablity "'ICTAD's aggressive ways in generating revenue consist of almost twenty activities and most of the revenue comes from hiring equipment and building facilities and from fees on courses, testing, and subscription. The total revenue (cost recovery) increased more than six times during 1989 - 1994 period and reached Rs.32 million and the share of operation costs increased from 6% to 30% during the same period. ICTAD has prepared a business plan titled "Beyond 2000" that shows that cost recovery could be increased further to reach 42% of the operating costs by 2000. Furthermore, plans for ICTAD to audit Government and foreign contracts in construction industry for 0.25% fee of the total contract value are under way. This will involve streamlining the processes of tendering, award and monitoring implementation. Such an activity is expected to generate significant income estimated at Rs.38 Million (more than operational costs in 1995) and in the same time, it will require additional expenditure for creating a technical division with specialized staff. ICTAD has revised its business plan to reflect these additional activities and expect further increase in income generation by 2000. 40  PART I - PROJECT IMPLEMENTATION ASSESSMENT (A) BACKGROUND The intense economic activity and the buoyant trend in the construction industry following the implementation of an open economy policy of the new government in 1977, created a high demand for manpower skills in the construction industry. It also created the need for systems and procedures and sophistication in technology and improvement of the operating framework for the construction industry. In this background the Government of Sri Lanka (GOSL) with the assistance of the World Bank established and funded the Construction Industry Training Project (CITP) in 1981 (Project Credit 1130-CE), the main objective of which was to establish a unified modular system of training in construction related trades for large numbers of persons - who were to be trained to limited but employable skill levels. The project was successful in achieving all its objectives. Following the success of the CITP Project, the emphasis of which was training of manpower, both the World Bank and Government of Sri Lanka agreed to institutionalise the project to facilitate the development of the construction industry as a whole through which the improvement of the operating system of the construction industry would be given priority. It was in this background that the ICTAD was established in 1986 and World Bank funding under a project titled the Second Vocational Training Project amounting to 13 Million SDR was initiated. The project period was nine years. A Technical Assistance programme jointly funded by the UNDP and GOSL was also identified in terms of which the Technical Assistance programme was executed by the ILO. (B) PROJECT OBJECTIVES AND COMPONENTS 1) to create and institutionalise the frame-work to sustain training and industry development efforts. 2) increase the supply of semi-skilled and managerial personnel to the industry by training about 50,000 new entrants construction workers. 3) improve quality of manpower going into the sector by up grading about 26,000 existing semi-skilled and managerial works to the construction industry 4) qualitative improvement objective to be achieved by instituting an industry training programme to train around 500 instructors, up grading curricula monitoring and evaluating skilled training and trade testing about 40,000 skilled workers and supervisors. 5) improvement of the operating environment of the construction industry 6) development of domestic construction contractors 7) initiating a system of cost recovery of training of expenditure (C) PROJECT SUSTAINABILITY A number of income generating measures designed to increase revenue (cost recovery) were adopted which yielded an income of approx. Rs. 32 Million. ICTAD plans to undertake Technical Auditing of large government and foreign funded construction consultants for a 0.25% fee of the total contract which is expected to yield an income of Rs. 38 Million per year what will be more than the operational costs of the last year of the project. ICTAD has drawn up a Business Plan for its activities till year 2000 in terms of which ICTAD would be getting a limited government grant till year 2000 and from year 2000 ICTAD would generate sufficient income to be self financing. (D) BANK PERFORMANCE The staff of the World Bank made a significant contribution towards the success of the project trough very supportive working relationships and effective professional advice given throughout the project period. At crucial 41  stages of the operation of the project the Task Managers and review mission staff advised and at times coerced the project staff to think in terms of creative and innovative options/alternatives in implementing the project. The adoption of such concepts as "capacity building and delivery quality improvement of partner training agencies" and establishing successful links through twinning arrangements with similar regional agencies are just a few examples of such initiatives. The bank recognised the need for staff development particularly the senior staff to ensure effective inputs to project implementation through such exposure. To achieve this objective it ensured that fellowships were properly targetted in terms of project needs. One important reason for the success of the project has been the success of the fellowship programme which ensured that the project was always manned by trained personnel. The IDA also recognised the need for the continuation of the Technical assistance programme after te UNDP/ILO TA project terminated. This ensured that expert inputs both foreign and local were available while fellowships for staff not yet trained were also available. The Bank facilitated speedy resolution of issues by responding quickly (particularly towards the latter stages of the project) in all matters referred to it by the project. The review missions were timely, adequate and extremely effective and fruitful in monitoring project progress and in assisting project implementation activities. (E) ASSESSMENT OF OUTCOMES 1. Project relationship The success of te project was the result of the very cordial relationship which existed between the Bank and the project staff and between the Project and other participating groups such as the UNDP, ILO DER and other partner agencies. Another contributing factor was the high level of professionalism of all parties involved with the project. 2. Technical Assistance & Consultancy Services Technical Assistance was provided through the UNDP/ILO Project till Dec'92 and through a separate TA budget provided by IDA. TA was adequate and useful. However, the quality of the ELO experts made available was below expectations; while the quality of those obtained after Dec'92 through direct negotiations and approval of the IDA has been fairly high. While the fellowship programme was well targeted was extremely useful, the external collaborator program under which specialised services were made available to supplement in-house staff ensured that project activities did not suffer on account of non- availability of in-house staff. (F) PROJECT IMPLEMENTATION DATA The Staff Appraisal Report and the working paper supplied very useful information which was considered adequate. Communications between the GOSL and IDA was timely and will focussed. The project staff maintained good records which supplied upto date information on civil works, procurement, feliowships, disbursements and other matters which were made available to visiting review mission in time. (G) LESSONS LEARNT The Institute for Construction Training and Development (ICTAD) which was created through the Second Vocational Training Project had no physical facilities such as workshops for the training of large number of construction workers. ICTAD therefore had either to establish such physical facilities itself or utilize the facilities of institutions belonging to other state agencies. Although the successful utilisation of spare capacities of workshops of competing state agencies was a challenging exercise, ICTAD (the project) chose this alternative and ensured that the assistance and participation of host agencies was obtained through a well planned and coordinated 42  programme. For instance the technical training centers and workshop equipment and technical staff of the Ministry of Higher Education were utilized to conduct both the new entrant and further training programmes of the project. Through persuasion and successful relationships about 123,000 construction workers were trained utilising the spare capacities of these institutions. Likewise the facilities of the National Apprenticeship and Industrial Training Institute (NAITA), the Center for Housing Planning and Building (CHPB), the Department of Labour and State Engineering Corporation (SEC) and several other state agencies were obtained for this challenging exercise. The Project ensured that this exercise was successfully coordinated through a Steering Comnmittee of the Secretaries of the relevant Ministries which was chaired by the Secretary of the Ministry to which the project belonged. Since the Ministries involved were competing agencies each resisting any encroachment of its own area of operations, such an exercise would not normally be devoid of problems. All operational problems and issues were settled through this Steering committee which met regularly. This is a classic example of a successful implementation of a project with the active involvement, participation, and cooperation of competing agencies carefully monitored and coordinated by a Steering Comnmittee consisting of the executive heads of all the participating agencies. Tlherefore this has been a very challenging exercise where effective co-ordination has ensured its success. In a departure from the traditional project design practice where the technical assistance component includes a heavy share of foreign experts provision was available for the engagement of local expert staff as "external collaborators" to supplement the available in-house staff. Accordingly a large number of local consultants were recruited under the UNDP/ILO TA project and thereafter with IDA funds on the termination of the UNDPIILO project. The engagement of a multitude of local consultants in specialised areas has facilitated capacity building in the industry. There was also a considerable cost saving from this arrangement. The facility of engaging a large number of local consultants whenever needed to supplement in-house staff ensured its smooth operation and therefore has been one of the major contributing factors for the success of the project. The availability of sufficient technical assistance both through the UNDP/ILO TA Project and from IDA under the special TA budget on termination of UNDP ILO project has greatly facilitated the training of in-house staff through fellowships both foreign and local. The fellowship programme was well targetted in termns of project needs. The project therefore had the benefit of a team of qualified and well trained personnel who were exposed to the latest technology and methods practiced elsewhere. The exposure of senior professionals through fellowships granted for participation in seminars/ workshops and short study visits was of particular benefit to the project. Each officer returning on completion of a fellowship was expected to submit a report and make a presentation to the rest of the project staff so that some of their knowledge and experience was passed down to the others in the project. An important feature of this project has been the commitment of the government right throughout the project. All relevant state agencies and personnel from the highest to the lowest have acted with commitment and a sense of urgency in regard to the project activities. There has been a ready response to project needs particularly in respect of requests for amendment of the development credit agreement (DCA). The Board of Directors and the higher management always responded positively in regard to project related matters. The mechanism of monitoring project progress by the higher management through monthly progress and review meetings ensured achievement of project targets as scheduled. The establishment of the institution as a semi autonomous statutory body where policy formulation was through a Board of Directors which met every month greatly facilitated project implementation activities. The achievement of project objectives particularly relating to the improvement in the operating environment was made possible in view of the close collaboration and active corporation of the project with the different professional 43  bodies such as the Institute for Engineers, Institute of Architects, the National Association of Construction Contractors of Sri Lanka (NACCSL) etc. Apart from these bodies being represented in the Board of Directors, there was constant rapport and dialogue between them which facilitated industry development. The functioning of the Consultative Committees for training and Consultative Committee for industry development for sometime was also helpful to the project. ICTAD has taken some significant steps to ensure cost recovery and sustainability. ICTAD's aggressive ways in generating revenue consist of almost twenty activities and most of the revenue come from hiring equipment and building facilities and from fees of courses, testing, and subscriptions. The total revenue (cost recovery) increased more than six times during 1989 - 1994 period and reached Rs. 32 million and the share of operation costs increased from 6% to 30% during the same period. ICTAD has prepared a business plan titled "Beyond 2000" that shows that cost recovery could be increased further to reach 42% of the operating costs by 2000. Furthermore, plans for ICTAD to audit Govermment and foreign contacts in construction industry for 0.25% fee of the total contract values are under way. This will involve streamlining the processes of tendering, award and monitoring implementation. Such an activity is expected to generate significant income estimated at Rs. 38 Million (more than operational costs in 1995) and in the same time, it will require additional expenditure for creating a technical division with specialized staff. ICTAD has revised its business plan to reflect these additional activities and expect further increase in income generation by 2000. 44  Attachment A TOOLS & EQUIPMENT SUPPLIED TO TRAINING CENTRES I INSTITUTIONS EQUIPMENtT TYPES . TRAINING CENTRE I INSTITUTION WORKSHOP Hend Tool Portle Fixed A.V. Training Aldo Training Manualo Equipment EquIp mnt Equipment & Models Tool Kits aovernment Agencies 1. Dept of Technical Educaton x x x x x Training 28 Neo. Technical Colleges Ampam. Anurmdhapurn Badulla Baapitiya Bandarawela Battlcaoa Belatta Dambulla Gallo Gampaha Hasealka Hornagama Jaffna Kaiutama Kandy Kurunogala Kuliyapitiya Maradana Matare Mattakkuliya Monaragala Nuwara Ellyn Ratmnalana Ratnapura Samanthurai Warakapola Wariyapola 2. Dept. of Labour (Predecessor of the Vocationad Training Authority) A) 09 Noa. District Vocational x x x x x Skills Devolopm*nt Centres CVSDC - Orugodawatte DVSDC - Elpitiya DVSDC - Talalla DVSDC - Badulla DVSDC - Gampcda DVSDC Kurunegala DVSDC - Anuradhapura OVSOC - Kgaslle DVSOC - Kaltota B) 90 Noa. Mobile Training Centre x x x x (Masonry & Carpentry) Page 01 of 04 45  TOOLS & EQUIPMENT SUPPLIED TO TRAINING CENTRES / INSTITUTIONS EQUIPMENTTYPES | TRAINING CENTRE I INSTITUTION WORKSHOP Hand Tool Portable Fixed A.V. Training Aids Training Mnuansi Equlpm n Equlpment Equipment & Models Tool Kits Government Agencies Contd... 3. Dept of Small Industries x x x x x - 24 Noe. Training Centres Watapuluwa Hattepota Thai athu Oya Paiapathwala Tholabugolla -Galewela Morahena -Panwilatanna Udagama Pitimathalawa Morayaya- Minipe Hawaeliya Katukithula Nortan Brige Gampola Polgolla Waligodapola-Hatharaliyadda Harispatthuwa -Kandy I Kahawatta -Panwilatanna I Naula Matale Haguranketha Mailenlya Harasbadca Peradeniya i Meethalawa | Laxapana| * j 4. Dept of Social Services x x x x x I x 04 Noe Training Centres Wattegam a Seeduwa |Thelabuyaya Ketawala -Levia 5. DepL of Probatlon & Childcare x | x x x Services. Ranmrutugala Makol a Page 02 of 04 46  TOOLS & EQUIPMENT SUPPLIED TO TRAINING CENTRES I INSTITUTIONS EQUIPMENT TYPES TRAINING CENTRE J INSTITUTION WORKSHOP Hand Tool Portable Fixed A.V. Traning Aid- Training Manuals Equlpmon Equipment Equipment & Models Tool Klt Government Agencies Contd.. 6. National Youth Services Council x x x x - 19 Noa. Districts Gampaha Kalutara Kandy Matale Galle Matara Ham banto ta Kurunegala Puttlarnm Anuradhapura Polonnaruwa Baduila Monaragala Ratnapura Kegalle Colom no i Nu wara Eiya Ampara Vavuniya 7. NatIonal Housing Development K X X X Authority 14 Nos Districts Garnpaha Kandy | Mantadle Hamrbantota Kurunegala Puttlam Anuradhapura Badulla Monaragala Ratnapura Kegaile Colomnbo Ampara Page 03 of 04 47  TOOLS & EQUIPMENT SUPPLIED TO TRAINING CENTRES / INSTITUTIONS EQUIPMENT TYPES TRAINING CENTRE / INSTITUTION WORKSHOP Hand Tood Portable Fixed A.V. Training Aide Tralning Manuals Equlpmen Equipmnnt Equipment & Models Tool Kite a NON -Governmental Organlatlone - 19No. Tralning Centr.e x x x x x x x Suhadha YMBA- Rajagiriya YMBA- Dvulapitiya MICH -Dematagoda IORAA- Beruwula YEIC - Malpettawa Samradeepa- Anuradhapura Dehami Fdn.- Hakmana Isipathana- BDF - Horana ST. Vincents Home- Maggona Don Bosco TC- Negambo T.l Dlyanilla Sri Sonnuththara V.T.C.- Alawwa Manthinda V.T.C.- Matara CDF- Bellannwila TTC - Yakkala Sn Anyajothi FDN.- Thuththiripitiga De Mazenod T.I.- Kandana I.C.P.H.- Thihariya 9. Civil Engineering Facultie. of three Universities 1. University of Moratuwa Laboratory Field Testing Equipment realted to Construction Field 2. University of Peradeniya 3. Open University of Sri Lanka Page 04 of 04 48  Attachment B SEMlNARS CONDUCTED BY ICTAD TO DISSEM]ATE INFORMATION ON TECHNOLOGY AND OTHER CONSTRUCTION RELATED MATTERS * Contract Administration - 1990 onwards * Alternative material for timber - 1991 * Conversion Process for Lime/Dolomite - 1991 (Process improvement) * Introduction of fire code - 1991 * Micro Concrete Roofing Tiles (MCR) - 1991 onwards (New Technology) * Guidelines for site investigation - 1992 * Aggregate production/quarry operation - 1993 * Geotechnical Practices - 1993 * Quality control in construction - 1993 * Use of ICTAD Formula for price variation - 1993 onwards * Consultancy Practices - 1994 * National Conference on Project Management - 1994 * Shortage of Construction materials - 1994 * Cement - 1995 * Introduction of Standard Bidding Documents - 1995 and 1996 * Bricks - 1996 * Structural and reinforcement steel - 1996 * ISO 9000 for construction - 1996 49  Attachment C NATIONAL CONSTRUCTION CONTRACTOR'S ASSOCIATION (NCCASL) With the beginning of the first project (CITP credit 1130 CE) the NCCASL was established with project assistance in the year 1981. Form the year 1986 ICTAD with the assistance of IDA initiated a programme to upgrade the domestic contractors which in tum helped the Association. The Association grew in strength over the years and its membership now exceeds 3500. Today, it has nine branches operating throughout the island including the North nd East. All the branches are operating under the umbrella of the parent office housed in the ICTAD building itself. In addition to the Council of the parent office each branch has its own directorate to manage the operations and affairs within its purview. The Chairman of each branch also flunctions as one of the Directors of the parent body. Each branch has employed technical personnel (mainly Engineers) to advise and assist specially the small scale contractors. The Govemment of Srn Lanka, recogneed the Association by making the membership of the NCCASL a mandatory requirement for contractors to be eligible to tender for GOSL funded projects. Some of the noteworthy features of the NCCASL are; * Every member of NCCASL requires to adhere to the Code of ethics developed by it while tendering and executing construction contracts. * The professionalism of contractors has increased remarkably since the formation of the Association. * Many small scale contractors have benefited from the technical services provided by the Association. * NCCASL is represented on the Board of Directors of ICTAD. * It has taken a leading role in the establishment of a company (Construction Industry Guarantee Fund) to issue bonds and guarantees for construction works and in the formulation of the proposed Construction Act. * It makes representations to the policy makers for the development of the construction industry in general and issues related to contractors specifically. * NCCASL is a fulltime member of the Intemational Federation of Asia & Western Pacific Contractors Association (IFAWPCA) and plays leading role in its activities. * It conducts training programmes and related activities for the advancement of the contractors. 50  Attachment D Summary of Construction Norms and Tendering Procedures/Documentation Standardized through ICTAD ICTAD DOCUMENTS In addition to the training materials ICTAD's publications could be categorized as a) Contact Docunents b) Specifications for works c) General CONDITIONS OF CONTRACT * Conditions of contract developed by ICTAD are used as standard conditions of contract in all the state sector projects. The use of this document by the private sector in their projects is increasing. * ICTAD Conditions of Contract for small works is used by all the Provincial Councils and other state sector agencies in smaller works. 3 ICTAD has recently revised its contract conditions in line with the Standard Bidding Documents of the World Bank The World Bank has also accepted the use of ICTAD Conditions of Contract for Bank fimded National Competitive Bidding projects. * ICTAD Formula is used for reimbursement of price variation. * Consultancy service documents of ICTAD are used in all state sector projects. SPECIFICATION FOR WORKS ICTAD has developed the standard specification for works in the following areas and is being used widely right throughout the country. * Building Construction * Water Supply Works * Irrigation works * Land reclamation works * Coastal Works * Aluminium works * Floor Finishes GENERAL PUBLICATIONS ICTAD has also published the following documents * Construction statistics and indices * Tender procedure * Standard Forms used in Construction Management * Guide lines for registration of contractors * Series of documents on use of some important construction materials 51  Attachment E LIST OF FELLOWSHIPS - 1993 UNDER WORLD BANKfTA BUDGET NAME OF OFFICER FIELD COUNTRY PERIOD COST 01 Mr W D K Femando Study VisKts to establish links, USA, HongkonG 06-Mar-93 to 528,492.00 and attend seminars in USA on Philippines 10-Apr-93 Construction equipment 02 Mr K M D Perera Study Visits to Human Resource Bangkok 14-Mar-93 to 309,297.00 Management InstUtutions & Manag. 10-Apr-93 of Change & Conflict in Organi. 03 Mr G A K Gajaweera -do- Bangkok 19-Mar-93 to 303,395.00 10-Apr-93 04 Mr G T R Basnayake Mainteance Management of Plar UK 01-Apr-93 to 444,126.86 Equipment 31-May-93 05 Mr J S S Weerasinghe -do- UK 01-Apr-93 to 444,626.83 31-May-93 06 Mr R K A W Ratnayake -do- UK 01-Apr-93 to 444,126.86 31 -May-93 07 Mr B S Amarasinghe -do- UK 01-Apr-93 to 444,626.83 31-May-93 08 Mr D Jinasena Computer system for Accountane UK 17-Apr-93 to 703.761.70 & Auditors 1 1-Jul-93 09 Mr U L Perera -do- UK 17-Apr-93 to 703,761.70 1 1-Jul-93 10 Mr B D P De Silva Human Resource Management UK 17-Apr-93 to 703,761.70 11-Jul-93 11 Mr A B Punchi Banda Training In ATS Software Singapore 27-May-93 to 84,582.00 05-Jun-93 12 Mr L P C Llyanarachchi -do- Singapore 27-May-93 47,675.55 05-Jun-93 13 Mrs R G Nanayakkara Training Managers course) U.K. 27-May-93 to 691,896.50 14 Mr S Jayanetti -do- ) 28-Aug-93 691,896.50 15 MrS Neelaratne JICA- Training Programme on Japan 31-May-93 to 37,582.00 Maintenancee of Const. Machinery 03-Aug-93 16 Mr A S Munasinha Analysis of Labour Statistics for U.S.A 27-Sep-93 to 696,703.60 Policy formulation in the 12-Nov-93 Human Resources Sector 17 Mr M N M Zafar Project Management - DOL U.K. 06-Jun-93 to 822,998.28 Seminar on Labourforce Statistic Ireland 01-Aug-93 18 Mr N S Abeywardene Purchasing & Materials U.K. 05-Jun-93 to 1,134,929.61 Management 09-Sep-93 19 Mrs C Kulathilake Contractor Development U.K. 11-Sep-93 to 425,354.25 Enviommental, Impact 10-Dec-93 Assessment 20 Mr H H E Dharmapala Procurement & Stores Mgnmt Canada 18-Sep-93 to 429,765.25 10-Dec-93 21 Mr E I Munasinha Visit to Construction Industry Hongkong 07-Oct-93 to 399,997.00 22 Dr S M A Perera (Board) Training & Development Korea, Tokyo to 400,997.00 23 Dr M E Joachim Agencies In South Korea Singapore 31-Oct-93 422,091.00 (Ministry) IFAWPCA Convention 24 Mr W J R de Mel Study on information service Singapore 22-Oct-93 544,422.60 & Publicity programme, Hongkong Visit & Study development of SanFransisco to indices & other cost Pilippines information, 17-Nov-93 VisA to PCA, IFAWPCA. ACEL & CMDF on Project Management & Cost information activities. 25 Mrs S M D F Siriwardhane JiCA - 3rd Country Training Philippines 25-Oct-93 to 37,158.00 (Dept of Buildings) Programme 04-Dec-93 JICA FUNDED Total 11,898,025.62 52  LIST OF FELLOWSHIP - 1994 UNDER WORLD BANK TA BUDGET NAME OF OFFICER FIELD COUNTRY PERIOD COST 01. Mr P P Mahharachchi Organisation & Development for Australia 21-Jan-94 to 449,947.50 ICTAD Supervisors Training Singapore 08-Apr-94 02. Mr Zafar - ICTAD ) National Skill Standards & Trade Australia 12-Feb-94 360.936.00 03. Mr P D Dharmawardana) Testing Philippines to (NAITA) Singapore 201,929.00 04. Mr G 0 D Ekanayake I -do- 06-Mar-94 201,929.00 (NAITA) 05 Mr T G Weerasinghe Supervisory & Management Trainir Hongkong 16-Feb-94 291.010.00 (ICTAD) Pttiippines 06. Mr A G P Herath -do- Singapore to 128,704.00 (MOHE) 07. Mrs P M Kodikara -do- 128,704.00 (OUSL) 08. Mr K G Piyadasa -do- 06-Mar-94 128,704 00 (MOHE) 09. Mr G Neelaratna Industry Board Training Programmi Singapore 19-Feb-94 400.107.00 (ICTAC) Australia 10. tvMr G A M Sumanasekera -do- 209,127.00 (RCDC) I 1. Mr G A Makavita -do- to 239,901.00 (W A Perera & Co.) 12. Mr U L G A Perera -do- 232.260.00 ICOE) 13. Mr K G N Dharmapriya -do- 13-vlar-94 203.706.00 (CMOC) i4. Mr S G V A Gunasekera Const. Craft Training & Allied Australia 18-Mar-94 383,358.00 (ICTAD) Matters Singapore i5. Mr Daye Senaratna -do- Philipoines to 206.049.00 (DOL) 16 Mr K Kaluarachchi -do- 206.049 00 (MOHE) 1 0-Apr-94 17 Mr W P Somapala - NYSC -do- 206,049.00 18 Mr L P C Liyanarachchl 3rd intemational conference Malaysia 20-Mar-94 to 145.186 45 on "The Concrete Fulure and Singapore 28-Mar-94 post-seminar follow up 19 MrE I Munasinha & Study Visit Australia 06-Mar-94 to 435,880.00 20. K M D Perera -do- Melboume 01-Jun-94 435,880.00 Sydney Singapore 21 Mr K Wijaya Guna ardena Certificate/Diplonia in UK 09-Jun-94 to 437.016 00 Professional Studies 09-Oct-94 22 Dr M E Joachirr 22-May-94 to 115,933.00 28-May-94 23. Mis A B Punchi Benda & Study Tour China 09-Jul-94 to 572.037.50 24. W D K Femando South Aust 08-Aug-94 572.357.50 25. Mr A R W M M C Amarakoon U.K 16-Aug-94 tc 840.40J.25 USA Ph.i 20-Sep-94 26 Mi G A K Gaja-weera Study Tou. U K 27 -AUg-94 to 4-9U bO0 50 17-Oct-94 27. Mr D L Dharmastlr JlC'A Japan I 6-Aug-94 to 431 3 75 07-Nov-94 28 tMr K W D Suchantherstne HCA Japan la-Auo-94 to 431 13 7.