Chad - Education Project

RESTRICTED FILE COPY Report No. P-62 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT FOR AN EDUCATION PROJECT TO THE REPUBLIC OF CHAD July 31, 1968  MITMEF?xTIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMENDATION OF THE PRESIDMET TO THE EXECUTIVE DIRECTORS ON A DEVELOPMENT CREDIT FOR AN EDUCATION PROJECT TO THIE REPUBLIC OF CHA.D 1. I submit the followAng report and recommendation on a proposed development credit in an amount in various currencies equivalent to US$ 18 mtnlion to the Republic of Chad to assist in the financing of an education project. PART I - HISTORICAL 2. The proposed credit would be the second Bank/IDA operation in Chad. A credit of $4.1 million for a highway maintenance project was approved by the Executive Directors on July 16, 1968. The Credit Agree- ment has not yet become effective. 3. The education project was identified by an IDA/UNESCO reconnais- sance mission in December 1965e It was prepared with the help cf a UNESCO mission in November 1966, and it was appraised by an IDA mission in May/ June 1967. 4. Originally the project comprised an industrial training center, a training center for agricultural technicians, and two small teacher training institutes. The Association's appraisal mission found that the industrial training center should be excluded from the project pending the results of a UNESCO/FAO survey of needs for technical education and vocational training, and that one larger teacher training center instead of the two small centers would be more economical and efficient. These suggestions were discussed with the Government and also with the French Governmentis Fonds d'Aide et de Coop6ration (FAC) which would provide the technical assistance required for a successful implementation of the project. Agreement between the Association, the Government and FA5 was reached on these suggestions early this year, so that the mission could complete its appraisal of the project. 5. Negotiations for the proposed credit were held in Washington from June 11 to June 13. The Government of Chad wras represented by a delegation headed by Hr. Georges Diguimbaye, Hinister of Planning and Cooperation.  -2- PART II - DESCRI?rIOS: OF THE PTOPOSED CREDIT Borrower: Republic of Chad Amount: Equivalent in various currencies of $1.8 million Purpose: To assist in financing the construction and equipment of a teacher training center in I-ioundou and a training center for agricultural techni- cians at Fort Lamy. Amortization: Over a period of 50 years, including 10 years of grace, in semi-annual installments on June 1 and December 1 each year. Commencing December 1, 1978, each installment up to June 1, 1988 to be one-half of one percent of the principal amount, and each installment thereafter to be one and one-half percent of such principal amount. Service Charge: 3/4 of one percent per annum on the principal amount of the credit disbursed and outstanding. PART III - THE PROJECT 6. A report on the project entitled "Appraisal of an Education Project in Chad" (To 6h7a) is attached. 7. The project would consist of the establishment of (i) a teacher training center in Moundou providing for an enrollment of 400 full-time students, (ii) a training center for agricultural technicians at Fort tamr with a capacity of 120 students, and (iii) technical assistance in the form of teaching personnel for the two centers iwhich would be provided by FAC. 8. Both institutions are designed to meet important needs of Chadts educational system. The lack of well-trained Chadian nationals in the administration and in the private sector, particuJlarly in agriculture, is one of the limiting factors for the economic development of the country. The raising of the level of education therefore has high priority in the Government's development plan, and the proposed project is integrated in an overall program to reach this objective. 9. The teacher training center at Moundou would lead to a badly needed improvement in the training of primary school teachers. At present it is estimated that only about 1I percent of primary school teachers are ade- quately trained. Besides the training of the 00 flull-time students, the center would conduct and supervise correspondence courses and in-service training for a further 400 students. It would also provide for special courses, such as advanced training for assistant teachers and upgrading courses for unqualified teachers. Curricula at the center would not be limited to educational and professional training, but wlould include work-  -3- shop practice, farm work and instruction in building maintenance. This is part of a commendable effort of the Government to adapt primary and second- ary education to the specific requirements of the country, and to train teachers who would not only contribute to economic development throuLgh their teaching but also through taking over responsibilities in coMMLDUfity development. 10. The agricultural center at Fort Lamy would train extension and supervisory workers in three-year courses comprising professional instruc- tion and practical work on farms associated with the center and in develop- ment projects in different areas of the country. It will have an annual output of abolt 30 agricultural technicians which is the minimum needed to staff extension services and agricultural projects with well-trained Chad- ians. A higher output is not feasible under present conditions in view of the limited supply of suitable candidates. The center iwill be inte- grated with the existing Animal Husbandry Institute at Fort Lamy and would form the nucleus of an expanded agricultural education system to be develop,ed in future years. 11. HIost of the teaching personnel required for the two centers irll be provided by the French Government which has also undertaken to organi.ze training for Chadian personnel to replace expatriate staff. This technical assistance ope-.ation by FAC is schetd-ied for a period of seven years. After this period, the total teach-.ng staff at the agricultural center and a lar&gt part of the teaching personnel at the teacher training institute will be Chadians. 12. Total cost of the project is estimated at $4 million, of which $2.1 million will be for construction and equipment and $1.9 million for technical assistance. In view of the poverty of Chad and of the efforts it is making to mobilize its oTm meagre resources, I consider that it is appropriate for the major part of the cost of this project to be financed externally. Of the total cost of $4 million, $1.65 rillion would be pro- vided by FAC as a grant to cover the foreign exchange component of the technical assistance, and $1.8 million would come from the proposed IDA credit for construction and equipment costs, of wjhich $1.5 million would be in foreign exchange. The Government would provide the balance of $5509000. All procurement for construction and equipment would be on the basis of international competitive bidding. PART IV - LEGAL INSTRUiETYrS AND AUTHORUTY 13. The draft Credit Agreement betwTeen the Republic of Chad and the Association and the Report of the Committee provided for in Article 5, Section 1 (d) of the Articles of Agreement are being distributed to the Executive Directors separately. 14. The draft Agreement conforms generally to the pattern of credit agreements for similar education projects.  PART V - THE EC51a0i4Y 15. The information provided in the section on the economy of Chad in my recent report on the Highwjay Iaintenance Project (P-619, July 3, 1968) remains valid. PART VI - COIPLIANCE 7TIH AITICIES OF AGREEMENT 16. I am satisfied that the proposed credit would comply wJith the Articles of Agreement of the Association. PART VII - REC,2,DATION 17. I recommend that the Executive Directors adopt the following Resolution: R3SOLUTION NO. Approval of a Development Cr rdit 'Go the Rc?piflic of Chad in an amount equivalent to US$ 1,800,000. RESOLVED: THAT the Association shall grant a development credit to the Republic of Chad in an amount in various currencies equivalent to one million, eight himdred thousand dollars ($1,800,000) to mature on and prior to June 1, 2018, to bear a service charge at the rate of three-fourths of one per cent (3/4 of 1,Z) per annum, and to be upon such other terms and conditions as shall be substantially in accordance ith the terms and conditions set forth in the form of Development Credit Agreement (Education Project) betwJeen the Republic of Chad and the Association, htich has been presented to this meeting. Robert S. McNamara President Attachment. 'Washington, D.C. July 31, 1968.