Mozambique - Capacity Building : Human Resources Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No: 23553 IMPLEMENTATION COMPLETION REPORT (IDA-24360) ONA CREDIT IN THE AMOUNT OF SDR 34.1 MILLION (US $48.6 MILLION EQUIVALENT) TO THE GOVERNMENT OF MOZAMBIQUE FOR A CAPACITY BUILDING: HUMAN RESOURCES DEVELOPMENT PROJECT 03/29/2002 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (Exchange Rate Effective November 30, 2001) Currency Unit - Metical (Plual Meticais): Mt Mt. 1000 = USS 0.04 USS 1.00 - .Mt. 22,960 FISCAL YEAR January I Decemnber 31 ABBREVIATIONS AND ACRONYMS BM Bank of Mozambique CAS Country Assistance Strategy CDP Capacity Building Project CIDA Canadian Intemational Developinent Agency CSP Country Strategy Paper DCA Development Credit Agreement DAF Directorate of Administration and Finance EMUNet Eduardo Mondlane University Network EPU Pre-University Education (Upper Secondary Education) ERC Econormic Recovery Credit ERP Economic Rehabilitation Program ESAF Enhanced Structural Adjustment Program ESG General Secondary Education ESSP Education Sector Strategic Program ESW Economic Sector Work FMU Financial Management Unit FMS Financial Management System FRR Financial Rate of Return GEPE Educational Projects Management Unit (Gabinete Tecnico de Gestao de Projectos Educacionais) GIU University Building Office (Gabinete de Instalacoes Universitarias) HEI Higher Education Institution HEP Higher Education Project IC Inter-Ministerial Committee (Comissao Inter Ministerial) ICR Implementation Completion Report IDA Intemational Development Association ISP Superior Institute of Pedagogy (current Pedagogical University) MAE Ministry of State Administration MESCT Ministry of Higher Education, Science and Technology MINED Ministry of Education MPF Ministry of Planning and Finance NDSE National Directorate of Secondary Education NPV Net Present Value PCU Project Coordination Unit PIU Project Implementation Unit PPAR Project Performance Audit Review PPF Project Preparation Facility PSR Project Status Report SAF Structural Adjustment Facility SAR Staff Appraisal Report S[DA Swedish Intenational Development Agency UEM Eduardo Mondlane University UP Pedagogical University Vice President Callisto E. Madavo (AFRVP) Country Director Darius Mans (AFC02) Sector Manager: Dzingai B. Mutumbuka (AFTHI) Task Team Leader: Soren Nellemann (AFTHI)  FOR OFFICIAL USE: ONLY MOZAMBIQUE CAPACITY BUILDING: HUMAN RESOURCES DEVELOPMENT PROJECT CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 1 4. Achievement of Objective and Outputs 5 5. Major Factors Affecting Implementation and Outcome 12 6. Sustainability 14 7. Bank and Borrower Performance 15 8. Lessons Learned 18 9. Partner Cormnents 19 10. Additional Information 21 Annex 1. Key Performance Indicators/Log Frarne Matrix 22 Annex 2. Project Costs and Financing 25 Annex 3. Economic Costs and Benefits 28 Annex 4. Bank Inputs 29 Annex 5. Ratings for Achievement of Objectives/Outputs of Comnponents 31 Annex 6. Ratings of Bank and Borrower Performance 32 Annex 7. List of Supporting Documents 33 Annex 8. The Borrower's Evaluation Report: Eduardo Mondlane University 34 Annex 9. The Borrower's Evaluation Report: Ministry of Education 42 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.   MOZAMBIQUE CAPACITY BUILDING: HUMAN RESOURCES DEVELOPMENT PROJECT PREFACE This is the Implementation Completion Report (ICR) for the Mozambique Capacity Building: Human Resources Development Project for which Credit 2436-MOZ in the amount of SDR 34.1 million equivalent was approved on November 19, 1992 and made effective on December 1, 1993. The credit closed on September 30, 2001 after a two year and three months extension from the original closing date of June 30, 1999. The ICR was prepared by Keiichi Ogawa (Education Economist) and Noel Kulemeka (Senior Economist), under the supervision of Soren Nellemann (Task Team Leader), with administrative support from Brigida Arriaza (Program Assistant). It was reviewed by Dzingai B. Mutumbuka (Sector Manager), Johannes C. M. Zutt (Country Program Coordinator), and the staff in AFTH 1 Unit and the Mozambique country team. The ICR team particularly acknowledges the contribution provided by Bruce Jones (Senior Economist), Alexandria Valerio (Education Specialist), and William Saint (Lead Education Specialist). The implementation completion mission took place from December 10 to 21, 2001. The report is based on materials in the project file, the Borrowers' Evaluation Reports, site visits, findings from survey questionnaires and discussion during the completion mission, including attendance at two workshops - for UEM and MINED, respectively.   Project ID: P00 1797 Project Name: CAPACITY BUILDING HUMAN DEV. PROJECT Team Leader: Soren Nellemann TL Unit: AFTHH1 ICR Type: Core ICR Report Date: March 28, 2002 1. Project Data Name: CAPACITY BUILDING HUMAN DEV. PROJECT LICITF Mzmber: IDA-24360 Country/Department: MOZAMBIQUE Region: Africa Regional Office Sector/subsector: EV - Vocational/Technical Education & Training KEY DATES Original Revised/Actual PCD: 11/14/1990 Effective: 05/29/1993 12/01/1993 Appraisal: 04/18/1992 MTR: 12/30/1995 12/30/1996 Approval: 11/19/1992 Closing: 06/30/1999 09/30/2001 Borrower/lImplementingAgency: GOM/MINISTRY OF EDUCATION; GOM/EDUARDO MONDLANE UNIVERSITY Other Partners: SIDA STAFF Current At Appraisal Vice President: Callisto E. Madavo Edward V. K. Jaycox Country Manager: Darius Mans David Cook Sector Manager: Dzingai B. Mutumbuka David de Feranti Team Leader at ICR: Soren Nellemann Jacomina P. de Regt ICR Primary Author: Keiichi Ogawa; Noel Kulemeka; Soren Nellemann 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: L Institutional Development Impact: SU Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: S Project at Risk at Any Time: 3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: Overview/Background The Capacity Building, Human Resources Development Project, was designed in 1991-1992, when Mozambique faced a severe crisis of institutional and managerial capacity. The project was implemented  during a period of tremendous political changes and the transformation of the economy from a centrally administrated structure to one that embodies a market system and rapid economic growth. Throughout the life of the project, Mozambique's severe capacity constraint presented a critical barrier to the successful implementation of post-war national reconstruction and the Government's Economic and Social Rehabilitation Program supported by the World Bank. In 2000, the implementation was further affected by the floods and cyclones that hit the southern provinces of the country. In 1990, Mozambique had fewer than 3,000 university-trained people. Less than 15 percent of civil service personnel had a university degree and more than one-third of civil servants had less than 7 years of primary education. The limited number of highly trained and professionally experienced Mozambicans who could provide leadership and could assist in the planning and management of both public and private sector activities which were vital to the country's progress in the economic and social spheres, were usually siphoned off to emerging private institutions which offered better conditions of service and a more attractive work environment. In response to these circumstances, in 1991, the Government, with support from the World Bank and the Swedish Agency for International Development (SIDA) prepared two reports: the Capacity Building Policy Framework Paper and Capacity Building Sector Study. These reports laid out the critical elements of a strategy to build national capacity in the post-war period. The Capacity Building Strategy was one of the main pillars around which the Country Strategy Paper (CSP) was built. On this basis the Government and the World Bank developed a capacity building project which was subsequently divided into two projects at negotiation in July 1992. These were the Capacity Building Human Resources Development Project and the Capacity Building: Public Sector and Legal Institutions Development Project. While the two projects were separated into two distinct investment projects, the overall coordination remained under an Inter-Ministerial Committee (IC), which was established by the Prime Minister and presided over by the Minister of State Administration who was responsible for national capacity building programs. During the subsequent economic changes and the move from a one-party rule to a post-conflict democratic society, a number of political and institutional bottlenecks, which impeded effective implementation during the early years of the project leading to an early disbursement lag, were created (These developments were largely outside the control of the implementing agencies as well as the government). During the latter years of the project, the implementation accelerated significantly. In fact, the improved capacity at the UEM and the preparation of an evaluation of the implementation of the Eduardo Mondlane University (UEM) component in the year 2000, led to the development of a national strategy for higher education in 2000. Moreover, the evaluation of the UEM components played a key role in the design of the Higher Education Project which was approved on March 7, 2002 by the Board of the World Bank. Original Objectives The Capacity Building: Human Resources Development Project (CBP) supported two closely linked objectives to improve the number and quality of secondary school graduates and higher education professionals. The project was implemented through two distinct institutions, namely by the Eduardo Mondlane University (UEM) and the Ministry of Education's project implementation unit (GEPE - Gabinete de Gestao de Projetos Educacionais) under the overall coordination of the IC. Thus, in reality the project consisted of and was implemented as two distinct projects. The project objectives, as stated in the Staff Appraisal Report were to: (a) expand the quantity and improve the quality of university graduates, by stabilizing and motivating the Mozambican teaching faculty; enriching the leaming environment; upgrading and maintaining the UEM physical facilities; and improving organization and managerial practices; and - 2 -  (b) enhance significantly the quality of upper secondary education [Ensino Pre-Universtario (EPU): Pre-University Education] by taking important positive steps in the areas of teacher training; provision of books and other teaching/learning materials; school management and community involvement; and school facility rehabilitation. As the components were implemented by distinct institutions with separate objectives and outputs, the ICR provides separate assessments for each component in the two parts, namely the UEM component and EPU component. Assessment of Development Objectives and Design The project was well founded in detailed studies and economic sector work and closely linked to the Country Strategy Paper (CSP) and the Social and Economic Rehabilitation Program. In line with the overall country circumstances, the Bank's CSP identified capacity building as a major focus of future economic and sector work as well as policy reform and project investment. The focus on expanding the quality and quantity of university graduates and the strategy to stabilize the teaching force and improving the quality of existing secondary schools before an expansion of the upper secondary system were prudent and pragmatic. The approach was confirmed by the Council of Ministers in 1992. The objectives remained valid throughout the project implementation period. The subsequent paradigm shift by the government after the elections in 1994 had its own consequences. The decision to provide universal access to primary education and increasing the intake at the secondary level, resulted in an increased pressure on both teachers and administrative staff, dispersing the limited capacity available at the time in the MINED and GEPE. The separation of the original project into two projects was taken as a step to lower the complexity. Furthermore, the implementation of the EPU components through GEPE, which was well-established and functioning at the time, raised more concerns over the lack of experience at UEM. However, in the end the Government refocused priority on providing primary education combined with internal organizational and staffing issues in MINED's National Directorate of Secondary Education (NDSE), and shifted much of the project focus toward UEM with less attention being paid to the EPU component 3.2 Revised Objective: The objectives were not revised during the project implementation. 3.3 Original Components: The project financed the following two components: (a) University Stabilization (UEM): (Appraisal Estimate: US$ 30.3 million; 63% of project costs): The component aimed at expanding the quantity and improving the quality of university graduates by: (1) improving education quality through textbook/study materials acquisitions, local textbook publishing, focusing institutional linkages, additional library space, curriculum studies and a university-wide computer training program; (2) reducing staff losses by aiming at the completion of 92 partially constructed university apartments and renovation of 108 existing housing units; (3) training academic and administrative staff through graduate training abroad; (4) ensuring adequate regional and gender representation through the construction of two additional student residences; (5) restoring the physical plant with the building rehabilitation and establishment of a regular maintenance program; and (6) increasing accountability and strengthening management training by providing technical assistance and planning studies. -3-  (b) Quality Improvements in Pre-University Education (EPU) (Appraisal Estimate: US$18.1 million; 37% of project costs): This component was aimed at enhancing the quality of pre-university education by: (1) improving the quality of pre-university education by supporting the development of a new curriculum and examination system, increasing the availability of textbooks and other learning materials, providing teachers with pedagogical support in the form of teaching materials and supervisory visits, and improving the system of in-service teacher training; (2) stabilizing the EPU network by rehabilitating the existing schools, constructing dormitories and staff housing, and decentralizing the materials budget and maintenance activities; (3) strengthening management and maintenance capacities at the school level by in-service training for school directors and administrators; and (4) raising girls' enrollment rates by providing scholarships for girls, supporting community awareness programs, and increasing the number of female teachers. Assessment of Project Components Overall, the components were suited to achieving the development objectives. However, the project could probably have captured other key development aspects more clearly (if a log frame methodology had been used, for example). For instance, some of the sub-components addressed the issue of equity even though the development objectives only mentioned quality and expansion. When the project was prepared in 1991-92, the design of the project was innovative in a number of ways. It sought to improve the quality of education (graduates) by establishing twinning arrangements between UEM and other institutions abroad, providing needs-based scholarships for EPU female students, providing training to school directors and teaching/administrative staff (UEM/EPU), and decentralizing the budget management system (EPU). The project paid special attention to women's educational opportunities. Furthermore, when the project was prepared, there was a risk that the UEM would have difficulty attracting and retaining staff when they returned from graduate studies abroad. To minimize this risk, the project was designed to expand staff access to housing, as a meaningful staff retention incentive. This new policy was an effective way for recruiting and retaining qualified academic and administrative staff. This was particularly significant given the tight housing situation in Mozarnbique and more so in Maputo city. In addition, other measures, including external institutional linkages, availability of computers and reference books, opportunities to attend professional meetings, and campus renovation, also played a role towards creating an even more positive work environment and an enticement for staff to remain at UEM. 3.4 Revised Components: The scope and focus of the project was revised in three instances: (i) under the UEM component, the planned construction and equipping of two students' on-campus residences and a student social hall was altered to simply rehabilitating the existing facilities to make them more amenable for student living; (ii) under the EPU component, the project sought to rehabilitate 6 EPU schools but one of them was rehabilitated under the Second Education Project (Cr. 2200-MOZ, 1992 to 1998); and (iii) finally, following the devastating floods and cyclones that hit the southem provinces in the first quarter of 2000 resources were allocated to the emergency rehabilitation, including the repair of access roads and buildings of lower secondary schools and UEM. None of these revisions required the amendment of the Development Credit Agreement (DCA) since they were permissible within the original DCA. 3.5 Quality at Entry: The quality of the preparation may be rated retroactively as "satisfactory" although the complexity and delays that arose by having the project coordinated through the IC should have been anticipated given the already fragmented government with limited capacity. The subsequent, intemal bureaucratic disputes as - 4 -  well as the government's focus on the first free democratic elections could not have been anticipated at the time. The project design reflected lessons learned from the implementation of a previous operation (Education and Manpower Development Project) and was complemented by the Second Education Project. Experience in Mozambique identified the risk of weak capacity in project implementation as well as lack of local commitment to implement the project. For the EPU component, however, the implementation unit GEPE was considered one of the best Project Implementation Units (PIUs) at the time. Later on, the detached role of GEPE from MINED created a different set of problems during the implementation of education activities. In order to deal with the lack of experience at UEM, the project had included the appointment of key local implementation staff as one of the two conditions for effectiveness. For instance, the key staff for the UEM component that were mentioned in the DCA included Director, Senior Procurement Officer, Senior Accountant, Engineer and Architect. Although the director, engineer and architect had been hired and the other positions advertised, the selection of the other implementation staff were not on terms and conditions acceptable to the Bank. This led to an eventual delay in the effectiveness of the Credit, and the project became effective without having pre-selected all the key staff. Thus, full staffing for implementation at project entry was not completed for the UEM component. 4. Achievement of Objective and Outputs 4.1 Outcome/achievement of objective: The achievement of objectives and outputs under the project was "satisfactory", considering the events that Mozambique had endured since the project preparation, such as emerging from the civil war, political and economic transformation, as well as severe natural disasters. UEM Component: The development objective of UEM was "to expand the quantity and improve the quality of university graduates". The achievement is rated "highly satisfactory". While serious challenges exist, UEM has been strengthened academically and is of higher quality compared to what it was in 1992. The most recent data show that the number of students graduating annually from UEM has increased five times during the project implementation period between 1994 and 2001, from 148 in 1994 to 695 in 2000. At the same time, the internal efficiency of the UEM system has also improved considerably. For instance, the percentage of graduates who complete all degree requirements within the official prescribed time has increased from 5 percent in 1997 to 15 percent in 2000. Moreover, the quality of education, measured by the students' average examination scores, has improved. The overall average examination pass rate has improved from 39 percent in 1994 to 53 percent in 2000. Additionally, the quality of teaching and administrative staff has improved through training and effective staff retention mechanisms. In 1992, there were only 17 percent of full-time Mozambican teaching staff who held doctoral or master degrees; this has now increased to 46 percent as of 1999 (largely exceeding the target of 32 percent as stipulated in the SAR). - 5-  EPU ComDonent: The development objective of EPU which was "to enhance the quality of pre-university education" is rated (marginally) "satisfactory". In addition to the implementation of most planned activities (textbooks, training etc.), the internal efficiency as a measurement of enhanced quality in teaching at EPU improved during the project implementation. The repetition rate in EPU has declined from 17 percent in 1994 to 10 percent in 2000. The drop-out rate has also declined from 7 percent in 1994 to 3 percent in 2000. At the same time, the graduation rate has improved 14 percentage points: from 40 percent in 1994 to 54 percent in 2000. Regrettably, the graduation rate for female students does not change much: 50.6 percent in 1994 compared with 51.4 percent in 2000. The quality of education has also improved as measured by student performance at the national examinations. The average pass rate at examinations increased from 59 percent in 1994 to 66 percent in 2000, in alignment with an improved pass rate for female students from 54 percent in 1994 to 64 percent in 2000. Nevertheless, this component experienced significant delays and the issues of low quality still persist. These achievements and problems should be viewed against the backdrop of the Government's decision to expand and open-up education to its people, thus, shifting its resources and efforts towards this expansion. During the implementation of the project, enrollment at public EPU schools increased rapidly from 3,654 students in 1994 to 12,000 in 2001. This achievement was about 50 percent higher than the target of 8,300 students in EPU by 2000 as set by MINED. When the project was appraised in 1992, there were only 5 public EPU schools in the country (information for private EPU is not available at MINED); this number has now grown to 23 as of 2001. The number of graduates from public EPU has also increased three-fold from 637 in 1994 to 2,221 in 2000. In addition, the enrollment number of female students has increased from 1,271 in 1994 to 4,301 in 2001, while the number of female graduates has tripled from 258 in 1994 to 823 in 2000. This growth was supported by the project's scholarship program in which more than 800 female students were provided with school fees, supplies, and dormitory fees. Despite the rapid expansion, the enrollment share of female students has remained constant during the implementation period at 26 percent from 1994 to 2001. 4.2 Outputs by components: UEM ComDonent (Part A) UEM component is rated "highly satisfactory". Subcomponent A.1: Educational Quality Improvements. This subcomponent, which aimed to upgrade educational quality and improve graduate output through textbook acquisitions, local textbook publishing, focused institutional linkages, additional library space, curriculum studies, and a university-wide computer training program, has met with considerable success. Under the project, 4,350 book titles were imported and 159 textbooks titles were produced locally. A combination of imported and locally produced texts was provided for most of the introductory courses, which covered 20 percent of all courses offered. The targeted number of books distributed to each student was 5, but the ICR team's survey questionnaires to a sample of economics and engineering students found that each student has a range of 7 to 10 books, which exceeds the original target of 5. Moreover, the project supported critical capacity-building needs in the UEM Faculties of Economics and Engineering that were addressed through a strengthening strategy based on linkage agreements with selected universities located outside the country. The Faculty of Economics has greatly benefited from provision of equipment and research work but to a lesser extent from foreign teaching staff. The majority of the foreign teaching staff stayed in Maputo between two and four weeks, but a handful stayed one semester or longer. By some staff this was perceived as too little time to transfer capacity. On the other hand, the Faculty of Engineering has benefited from foreign teaching staff who taught from one semester to a year although the Faculty was not able to purchase all the equipment they had originally planned due to the late - 6 -  implementation and closure of the project. As originally planned, libraries and reading space serving the faculties of agriculture, architecture, economics, veterinary and medicine were expanded during the period of the project. In addition, studies on curriculum and distance education were undertaken and are currently being incorporated into the process of the on-going curriculum reform and new distance education program. They make up integral parts of the newly approved first Higher Education Project for Mozambique. Moreover, the project supported the acquisition of computer equipment with the assumption that the program was designed to integrate with the expansion of the information and technology network within the UEM. Training in information technology was locally organized for the departmental staff charged with teaching responsibilities. Computer training was expanded as a requirement course in all university departments. One outcome is the establishment of an 'Internet Cafe' at the UEM, providing students with access to the internet on a cost-recovery basis. Currently, the UEM's Information Center offers computer-training courses not only to its students and staff but also to non-matriculated people as a source of generating revenue. Moreover, additional activities achieved included the satellite system (Vsat), the financing of the e-mail system, and the planned EMUNet - LAN infrastructure, which will form the structure to improving administration and learning. Subcomponent A.2: Housing for Staff Retention. All civil works in this subcomponent were completed and their targets were met with the construction of 189 new staff apartments and the rehabilitation of an additional 108 staff apartments. However, the lack of affordable housing in Maputo continues to be a problem. The ICR mission confirmed that staff housing is a very important subcomponent to promote the quality of education since it has helped to attract and retain skilled academic and administrative staff by providing immediate access to housing as a short-term recruiting and retention incentive, and ensuring staffing stability over the long-term by offering the possibility of home ownership linked to the length of services. Subcomponent A.3: Staff Development. The implementation of this subcomponent was smooth and the level of achievement was remarkable. A fellowships management plan was carried out with the stipulation to train an initial 19 Ph.D. students, 25 Masters students, with various other short-term training courses within and outside Mozambique. The target was exceeded by threefold and a total of 128 fellowships for professional training of academic and administrative staff were granted during the project implementation. Of these, 41 were for PhD programs, 51 Masters degrees, 24 Licenciatura (honors degree) and 12 Bachelor's degrees. Out of this total number, 97 staff members have completed their studies and retumed to UEM. The remaining 31 staff members are still pursuing their studies, which may last up to the 2002 academic year. As a result, the proportion of UEM's Mozambican teaching staff with graduate degrees has increased from 17 percent in 1994 to 46 percent (the target at the appraisal was 32 percent). Subcomponent A.4: Ensuring Regional and Gender Representation. The planned construction and equipping of two students' on-campus residences and a student social hall was altered to simply rehabilitating the existing facilities to make them more amenable for student living due to the necessity of the rehabilitation of existing buildings. The rehabilitation of 6 student residence buildings was completed and the work improved accommodation for a total of 717 students, out of which 180 were new bed spaces with other social facilities. As a result, during the implementation period, the number of students who lived in on-campus residences increased by 53 percent from 696 in 1994 to 1,063 in 2001, while the number for female students increased 32 percent from 107 to 141. Moreover, the project had envisaged to achieve the provision of adequate space for female students and students comingfrom the provinces. This goal was partially achieved by converting the 'Colmeia' Hostel to a girls' hostel with an allotment of 176 beds. In spite of this, there was still insufficient space for girls and no attempt was made - 7-  to supply accommodation for other students coming from the provinces. According to the Director of the Social Services (who manages the student dormitory), the priority of selection is given to female students in general and currently, there is no female students on the waiting list. All the students who are eligible to apply for dormitory space are from the provinces (students from Maputo City are not eligible). In addition, the ICR team confirmed that the provision of students' residence is crucial in raising student enrollment from the provinces especially since the housing situation in Maputo is such a severe problem. Subcomponent A.5: Rehabilitation of the UEM Physical Plant. The rehabilitation of the UEM Physical Plant was achieved and in the process, critical capacity has been built. Rehabilitation of the physical plan presented an opportunity to rectify over 20 years of neglect and restore the university's current buildings to an acceptable state of repair. Besides the additional library and reading space in the 5 faculties as well as the new bookshops, the faculties of architecture, veterinary, medicine, engineering were all rehabilitated and upgraded. One new student residence was created (Karl Marx) and the existing student cafeteria renovated. Overall about 50% of the university infrastructure (or 25,000m2) was rehabilitated as planned. In addition, a "design and implementation of building maintenance program" was carried out, which included the procedures and training activities for staff responsible for the maintenance of the buildings. As part of the training, staff attended short-term courses outside Mozambique, including participation in conferences and study tours to South Africa. Systematic government budget allocation for maintenance continues to be a problem despite the inclusion of a covenant in 1998 to address this issue [it had been stipulated that "the Borrower shall cause UEM to: (i) open a maintenance budget line and allocate for 1995 an amount representing 0.19% of the replacement value (per square meter) of the University physical plant (517,000 Mz); (ii) increase the budget line for 1996 to 765,000 meticais representing 0.26%; and (iii) increase the maintenance budget line gradually to 0.5% by not later than December 31, 1999"]. Subcomponent A.6: Strengthening of Management and Accountability Capabilities. Significant capacity has been built at UEM in the area of administration, management and financial management. In order to strengthen management capacity, management training for key academic and administrative staff was conducted through short-term courses and seminars locally and abroad. Over 24 different courses (e.g., project management, management of data information, and procurement courses) were attended by 1,883 participants including academic and administrative staff. Moreover, the strengthening of the GIU's technical and administrative capabilities was accomplished through the participation in physical infrastructure management courses in South Africa and study visits to South African Universities. During the appraisal, the UEM proposed to strengthen its accountability to the government, its donors, and society in general by: (a) publishing an annual report which not only analyzes its institutional performance and provides key indicators and statistics, but also includes a financial statement; (b) organizing annual meetings for representatives of government donors and the private sector in which the annual report and coming year's work plan are discussed; and (c) producing semestral activity reports at the Faculty level for yearly discussion with representatives of relevant govermnents, donor and private sector institutions. Annual reports and semestral activity reports were produced but annual meetings had not been held since 1995. Another important outcome of this is the implementation of the financial management plan. With the assistance of an external consulting firm, new financial procedures, training of staff and decentralized operation of bookkeeping to each faculty were completed. For the new Financial Management System (FMS), information technology training was offered to the relevant staff, and various procedures manuals -8 -  and handbooks for accounts and management staff were prepared. Moreover, an Internal Audit Office was created with one of the two professional auditors on board. With the new FMS, regular internal audits were instituted for both donor and internally generated funds. Regular external audits were introduced and covered all UEM funds in the External Audit for the financial year ending 1999 and 2000, while an Audited Financial Report for the year ending 2000 was approved. As a result of this work, in 2000 UEM was able to increase its financial autonomy from the Ministry of Planning and Finance, thus, moving to a quarterly budget allocation formula. Overall, as a result of this capacity building effort, UEM was able to finance and direct the development of a national strategy for higher education, which led to the preparation of the new higher education project. Finally, UEM has put in place a new and more decentralized implementation structure for the new project. EPU Component (Part B) EPU component is rated partially "satisfactory" as follow: Subcomponent B.1: Improvement of Educational Quality. This subcomponent was partially achieved. Despite the improvement in the intemal efficiency, the political decision to expand rapidly the intake of students meant that the project had limited impact on improving the overall quality of the upper secondary level. For instance, although the number of qualified teachers (who possess either a bachelor's degree/Licenciatura or a higher degree) has increased from 140 in 1996 to 368 in 2001, the overall share of qualified teachers has declined from 90 percent to 76 percent during the same period because of this rapid expansion. Another important feature is a general lack of interest to pursue teaching by university graduates due to the high salary incentives in the private sector. On the other hand, the proportion of qualified teachers among the 5 existing schools at project appraisal has remained the same during this period (92 percent). Moreover, one of the major factors affecting the quality of secondary education has to do with teaching and learning materials. Under the project, 8,140 textbooks and 130 encyclopedia were purchased and delivered to EPU school libraries. Textbooks were delivered to schools as planned but due to the rapid increase in student numbers, teachers were given very little reference or instruction materials to the extent that in some cases, teachers had to revert to the notes that they took when they themselves were students. The project supported the development of a new curriculum and examination system. The new curriculum was implemented in 1995 after staff and teachers from the MINED, UEM and UP participated in a series of intensive discussion seminars. The process of preparing examination questions involved proposals made by school subject specialists, and evidence gathered indicates that questions have been consistent with the course materials. On the whole, it was felt that examination questions have improved. Moreover, teachers' guides for all the subjects at the secondary level were prepared and distributed to schools, and studies on textbook production and distribution were carried out. While recommendations for book production were made, production costs were deemed prohibitive and as a result, the plan did not proceed. Overall, book utilization has been and continues to be very poor in most schools. The Ministry carried out pedagogical seminars and periodic training at national and provincial levels, which covered both management and pedagogical issues. The training programs have tended to be unsystematic and irregular. Coverage has generally been too little to achieve substantial impact. On the other hand, the design and implementation of a training strategy by ISP (now Pedagogical University - UP) was realized with the introduction of new courses in technical drawing and philosophy. In cases where UP has satellite campuses, it has been possible for tutors of UP to assist with pedagogical support to secondary school teachers. A staff development program for NDSE was implemented, and 25 school directors and -9-  head teachers of pedagogy attended a three-month training course in Portugal. Several staff at NDSE have benefited from English language courses in Zimbabwe, while others have gone for distance leaming seminars in Botswana. On the other hand, the implementation of measures to increase the supply of EPU teachers met with limited success because of the lack of attractive incentive packages in the public sector. Very few UP graduates opt for teaching and as a result, many schools are staffed by under-qualified teachers. Subcomponent B.2: Stabilzation of the EPU Network - Civil Works Program. This subcomponent was largely achieved. The original plan in the civil works in EPU component was the rehabilitation, equipping and physical expansion of 6 EPU schools, the rehabilitation of one dormitory and construction of 4 new students' dormitories, and construction of 43 new staff houses. The project supported the rehabilitation of 4 EPU schools and the construction of one new school. Since the Bank's Second Education Project supported one of the planned school rehabilitation, the target of sustaining 6 EPU schools was fully met. However, the ICR mission identified that the quality of rehabilitation in two EPU schools in Maputo and Beira was not adequate because the buildings appear to be back to pre-rehabilitation condition. This raises serious questions about the quality of supervision and inspections by GEPE. Two new dormitories, which would provide accommodation for 455 and 256 students in Quelimanne and Xai-Xai, respectively, were successfully completed. Conversely, the construction of new dormitories in Beira and Maputo was cancelled due to the high costs vis-A-vis available funds. The rehabilitation of the dormitory in Nampula was not carried out due to the ownership issue of the property. Construction of teacher residences was accomplished as originally planned although in some instances not all houses were put to teachers' use as they were still used by education personnel. In one particular instance, only 50 percent of the houses built in Nampula are occupied by the EPU teachers, while the others are occupied by UP and technical/vocational school teachers as well as a ESG administrator. The Director of the school expressed concern as this resulted in jeopardizing his ability to attract qualified mathematics teachers. Subcomponent B.3: Building Management and Administrative Capacity. This subcomponent was partially achieved. The preparation and dissemination of materials on financial management, school regulations and planning was partially accomplished. General regulations for school administration were produced and disseminated; however, materials for financial management were not prepared. The problem encountered was a general lack of guidance on whether or not the management of school finances would be decentralized. The provision of short-term overseas training in planning, school administration, and educational technology for NDSE and EPU administrators was partially carried out in that some staff members were sent for training in Portugal. In addition, the strengthening of GEPE's staffing and office support was carried out to the extent that GEPE was able to hire legal services and to recruit a civil engineer/manager, a procurement officer and project accountant. On the other hand, the strengthening of Management and Coordination Capabilities of the Project Technical Unit of NDSE was marginally accomplished. The project was only able to support the coordinator of the Girls' Scholarship program. Subcomponent B.4: Improvement of Enrollment of Female Students. This subcomponent, despite administrative problems, exceeded its target four-fold. The project was able to support a large number of female students through scholarships although it had less impact on students' achievement. Only 280 scholarships were envisaged at the design stage to cover all school fees, school supplies and textbooks, housing, and transportation in primarily 4 EPUs from Beira, Natnpula, Quelimane and Xai-Xai. Each scholarship was initially estimated at US$50 per month. This amount was, however, reduced to US$15 to allow for an expanded coverage to all female students at both levels of secondary education. In addition, the Government saw it prudent to include needy boys, albeit in a selective manner, - 10 -  into the program. As a result 1,158 students benefited from the program. The implementation of this sub-component not only experienced significant delays in the disbursement of money and the selection of candidates but also bureaucratic bottlenecks at many levels. Moreover, while the emphasis of the criteria was clearly on supporting needy girls preferably from rural areas, evidence shows that the guidelines were not fully adhered to by the provincial staff. While no systematic impact assessment to evaluate the performance of the program toward achieving its objectives was ever conducted, there is evidence that its existence played a major role in motivating girls to remain in school. The program could have benefited from deliberate interventions that would have increased the supply of female teachers. The Staff Appraisal Report identified female teachers as one of the key factors that could increase the enrollment rate of female students, but no direct interventions were put in place to deal with the problem. On the contrary, the share of female teachers declined significantly from 16 percent in 1994 to 6 percent in 2001. 4.3 Net Present Valute/Economic rate of return: No attempt was made at appraisal to estimate the net present value (NPV) or economic rate of return (ERR), thus there is no baseline against which to judge a re-estimate for evaluation purposes. 4.4 Financial rate of return: No attempt was made at appraisal to estimate the financial rate of return (FRR) and therefore there is no baseline against which to judge a re-estimate for evaluation purposes. 4.5 Institutional developmient impact: The ICR team rated the institutional development impact as "high" for the UEM component, "modest" for the EPU component, and "substantial" for the overall rating. UEM: The project significantly contributed to the institutional development impact in promoting the quality of teaching/administrative staff through the provision of graduate fellowships and short-term training to staff. In addition, a large number of staff houses was constructed and rehabilitated. Almost all of the trained staff are still being retained at UEM. Moreover, various aspects of institutional development included the establishment of EMUNet, local book production, bookstores, and the rehabilitation of libraries. The GIU and Project Implementation Unit (PIU) gained experience in managing civil works and financial management/procurement matters, respectively. The experiences acquired from the project has also enabled UEM to come up with its new strategic plan, which became the basis for the higher education strategic plan in Mozambique and the new higher education operation. The new ministry (MESCT) and UEM recognize the importance of continued effort in strengthening institutional capacity to deal with the constraints and challenges the sector is currently facing. For instance, the following include increased graduation rates; improved general policy coordination; and increased monitoring of sector performance. - 11 -  EPU: Overall the institutional impact under the EPU component has been modest. Although limited institutional capacity has been created at the MINED (NDSE) level, some positive capacity has been built. As a result of teaching at EPU schools or university, a majority of the technical staff in the NDSE department has become more familiar with educational planning and administration. School directors and heads of pedagogy attended seminars in Portugal, while teachers attended pedagogical seminars that were organized by the NDSE. NDSE staff were able to make supervisory visits to secondary schools. In addition, NDSE staff participated in the preparation and review of the new curriculum, examination questions setting and reading materials. At least 6 subject specific seminars were organized over the period between 1996 and 1999. When the project was first prepared, the Provincial Directorates of Education were not functioning well due to the civil war. However, as the Directorates evolved into playing an important role in the administration of the girls' scholarship program, they have also provided overall supervisory services to the EPUs in general. 5. Major Factors Affecting Implementation and Outcome 5.1 Factors outside thle control oJfgovernment or implementing agency: Positive factors: In the period after 1995, the excellent relationship between the World Bank and UEM contributed positively to the implementation of the UEM component and the early inclusions of lessons learned into the follow-on operation. The Bank's flexibility and responsiveness to needs, such as those following the floods, is stated by the Government as one of the key positive factors affecting the implementation. While the move from war to peace and the Government focus on the development of the country are positive factors, they inevitably pose a negative influence on the attention given to the project. Negative factors: Floods and cyclones affected the rehabilitation, equipping and physical expansion of pre-university schools in 1998, 1999, and in particular 2000. Moreover, during the implementation of the UEM component there was a serious shortage of funds to cover both operating costs and counterpart investment costs, which threatened to halt implementation, particularly the planned rehabilitation and construction work (UEM did not have the revenue to support its negotiated share of 20 percent). The issue of the counterpart fund was resolved during the mid-term review (MTR) in 1996, when the counterpart share was reduced from 20 to 15 percent. Despite this reduction, the lack of counterpart funding persisted throughout the remaining period. The issue was continuously addressed during supervision missions and listed as one of the major problems for the delay of civil works; this concern was also presented in the larger context of the Bank's Mozambique portfolio reviews in 2001. Due to these as well as other negative factors listed below, the project closing date was initially extended by 12 months largely to complete the civil works activities. Following the floods, the project was further extended for another 15 month to provide the government with the financial resources for the emergency rehabilitation work. 5.2 Factors generally subject to government control: Negative factors: Overall the project suffered from political impasses and internal disputes at the level of the Inter-Ministerial Committee (IC), in which the World Bank was also involved. For example, the IC was responsible for the confirmation of the appointment of the project coordinators which delayed the effectiveness of the Credit. Much of the Bank's effort was focused on resolving these issues and maintaining the relationship with such key players as the Ministers of Justice, State Administration and Planning and Finance. Eventually, and after the elections in 1994, these issues were resolved when the committee was dissolved. - 12 -  5.3 Factors generally subject to implementing agency control: Positive factors: After the MTR, the positive and open attitude of the UEM staff towards addressing problems and issues greatly assisted in accelerating the implementation and disbursements. Negative factors: Under the UEM component, the slow implementation before the MTR in 1996 were mainly due to delays in the establishment of the PIU, the appointment of a project coordinator and a lack of institutional capacity in GIU to implement activities agreed to for the first year. Later on, the project coordinator left the position and this affected project knowledge, continuity in the handling of certain matters as well as management style. After 1996, despite an accelerated disbursement rate, two of the constraints - lack of dedicated full-time staff and unfamiliarity with the Bank's procurement procedures - were also identified as primary causes of delays in project implementation. This related particularly to the quality of tenders and evaluations, and the absence of a Bank procurement officer in the Country Office from whom quick advise could have been sought. EPU component: In the period before the MTR in 1996, project performance was negatively affected by the lack of coordination between NDSE, MINED and GEPE which resulted in a lack of general coordination; this in tum led to low levels of outputs in the quality of education. With a limited number of staff and poor knowledge of Bank procedures, the NDSE was not able to prepare lists of activities to be carried out or goods to be purchased. Other reasons for the delayed civil works include: a) construction time was underestimated by the client in the bidding document; b) there was a problem in the supply of materials as many building materials were imported, even from Portugal; c) transportation problems and unexpected changes in customs regulations and import facilities. In addition, bidding documents for the rehabilitation were prepared by inexperienced junior technicians instead of fully qualified professionals and as a result many important problems, such as the estimation of costs, were overlooked. Moreover, the MTR mission identified the reasons for the slow implementation in that the NDSE was unprepared for the responsibilities that were being assigned to it. For instance, at the top, senior officials were not able to manage project funds efficiently, and for a while, there was simply no director for the sub-sector; there was also very little executive vocation found among the staff. Conversely, since the new DNES Director was appointed in 1996, activity preparation procedures and project performance have improved. 5.4 Costs andfinancing: The total estimated cost of the project at the time of appraisal was US $60.3 million. The IDA credit was estimated to cover 81 percent of the total project cost at US $48.6 million. The govemment counterpart financing was estimated at US $10 million, while the anticipated financing from the beneficiaries amounted to about US $1.6 million. The total latest estimated costs of the project at completion (US $ 54 million), as obtained from the implementing agency records, do not include contribution from the beneficiaries. As of February 15th, 2002 the Capacity Building Project has disbursed US $54 million of the total project costs, which is equivalent to a sum of US$44 million or 94 percent of the IDA credit. It has an undisbursed IDA credit balance of US $2.6 million which will be cancelled. Under the UEM component, 103 percent of credit funds were disbursed with substantial outputs, while most rehabilitation of EPU schools under the EPU component was completed at the acceptable cost levels. However, due to delays from the seasonal floods and high costs of transportation and imported materials, some of the rehabilitation works exceeded their planned costs. This included the costs of the new EPU school in Xai-Xai as well as student dormitories in Xai-Xai and Quelimane. - 13-  The lack of counterpart funding, which was early on a cause for the delays of civil works, remained an issue throughout the project period until the share of counterpart funding was reduced for civil works from 20 percent to 15 percent at the MTR. During the project implementation, the Bank approved the transfer of funds as follows: under the UEM component US $1 million was moved from civil works to operation costs in 1994; in 1998, UEM and EPU each received 50 percent of the funds from the Unallocated Category. UEM used the money for consultancy services (mainly for additional training and financial strengthening of the university) and equipment (especially transportation for students and computers), while EPU proposed to use its share on civil works and furniture. Moreover, an amount of US $850,000 was transferred from the EPU component to UEM in 2001 in order for UEM to implement the EMUNet sub-component provision for the LAN infrastructure. Depreciation of SDR: The Governnent lamented the fact that about US $2 million was lost due to the appreciation of the US dollar against the SDR. 6. Sustainability 6.1 Rationalefor sustainability rating: Sustainability is rated as "likely". UEM: The overall improvements in UEM that the project supported are considered to be sustainable ( highly likely) for the following reasons: Government Ownerships: There is very strong commitment and ownership within UEM and the Government. Overall the current policy environment is excellent and conducive for the continuance of implementation. This commitment is further manifested by the establishment of the new Ministry of Higher Education, Science and Technology (MESCT) in 2000 and the development of a system-wide higher education project approved by the Council of Ministers. UEM has prepared its own strategic plan for the next 10 years from the experience gained in the Capacity Building Project. This became a base for the Bank's new Mozambique Higher Education Project, which is expected to be effective by June, 2002. This project will present continued support to UEM through the year 2007. Technical Aspects: The increased number of trained teaching and administrative staff is likely to be retained within UEM but at the same time, they are threatened by continued excess demand for qualified staff elsewhere in the economy. Economic/Financial Aspects: The economic and financial sustainability of UEM is very probable although it has had difficulty allocating and maintaining resources, and will continue to be dependent on donor contributions. In the past three years, the share of donor contribution (including both credit and donation) ranged from 30 to 50 percent of the university's total expenditure while its intemal revenue accounted for less than 1 percent. Consequently, the Government (Ministry of Planning and Finance) agreed to increase the share of the higher education sub-sector as a percentage of the whole education sector from 23 percent in 2001 to 25 percent in the next three years. This amount will be spent on improving the efficiency of the higher education sub-sector. UEM has embarked on a policy of increasing cost-recovery beginning 2002 among which is increased tuition fees. In addition, a new Higher Education Project will support the UEM's revenue generation from the services that will be provided, which includes catering, the opening of the library to the public, computer and internet services, hospital services and consultancies on research and development with various organizations. If the internal efficiency of the higher education system were to be improved (i.e. an annual increase of 5 percent in graduation rates) through the implementation of the new Higher Education Project, the efficiency gains from this measure at UEM will be around US$ 10 million by - 14 -  the end of 2006. EPU: The sustainability of the EPU component is considered to be "likely". Government Ownership/Other Stake Holders Involvement: MINED has adopted the sector-wide approach with primary education as the priority sub-sector within and outside of MINED. Through the ESSP and the new Higher Education Project, the Bank will continue to support upper secondary education (EPU) through the construction of ESG schools, teacher housing, and provision of study materials. At the time of appraisal in 1992, no donor agency was supporting EPUs; however, the British (DFID) is presently supporting the development of the strategic plan for secondary education. Technical Aspects: The increased number of trained teaching staff is likely to be retained but at the same time, it is threatened by continued excess demand for qualified staff elsewhere in the economy. As a result, many of the graduates from the Pedagogical University (UP) do not choose teaching careers at EPU. Moreover, nearly 25 percent of the teaching staff in EPU schools are academically unqualified (e.g., at the Joaquim Chissano EPU). The new Higher Education Project (HEP) has already identified that an adequate supply of well trained secondary school graduates is central to MINED's efforts to improve the quality and efficiency of secondary education. The UP plays a key role in this regard as the institution responsible for the training of secondary school teachers and the training of trainers for primary school teachers. The HEP will support UP with the implementation of its plan to improve the quality of its programs and to broaden their scope. A critical element will be to upgrade current EPU teachers through distance education modalities. The Minister of Education and the Minister of Higher Education has already agreed to develop a joint strategy for distance education. Finally, MINED has decided to absorb a significant number of GEPE staff into the ministry structure and has integrated the implementation of the ESSP into its regular structures. Economic/Financial Aspects: The overall government expenditure to the MINED has declined but in the meantime, the share for pre-university education has increased. The total expenditure on MINED as a percentage of GDP has declined from 4.4 percent in 1996 to 4.0 percent in 1999, while the recurrent expenditure share of EPU (upper secondary education) has increased from 2.9 percent to 4.5 percent during the same period. According to the Ministry of Planning and Finance (MPF) proposal, about 10 donor agencies, including the World Bank, will be lending support to the MINED and the total expenditure on MINED (as a percentage of the total education expenditure) will decline slightly from 77 percent in 2001 to 75 percent in the next three years. 6.2 Transition arrangement to regular operations: As mentioned above, since the new Bank's Higher Education Project will be in continuous support of UEM, and with ESSP currently supporting the EPU (upper secondary education), the transition to regular operations will take place smoothly. This transition is also supported by key technical staff who were previously involved in the implementation of the Capacity Building Project. 7. Bank and Borrower Performance Bank 7.1 Lending: The Bank's performance at identification and appraisal is rated as "satisfactory". The Bank's performance during identification and appraisal is very adequate, considering the state at which the country was in 1991/92. Due to security reasons, it was very difficult to conduct a thorough assessment of project - 15 -  components (except for those within the city boundary). The project was well documented and designed with the integration of the government strategy, CAS and ESW. It also identified key risks and ways to mitigate them. 7.2 Supervision: Supervisions were done through regular supervision missions and continuous assistance from Bank staff in the country office where the task manager resided until 1994. However, the Bank's supervision needs to be evaluated in two distinct phases: the period before the mid-term review (MTR) which was held in 1996, and the period after. Between July, 1993 and May, 1995, there were numerous missions, but only one formal supervision mission was documented per year. Also, three out of the four formal supervision missions (excluding the project launch mission) before the MTR were conducted by only one person, the task manager. Partially as a result of a lack of skills mix, the supervision mission's response to the immediate concerns in the project implementation was slow. This was reflected in several key issues related to the establishment of the Project Implementation Unit (PIU) at UEM, full staffing of Project Implementation Units (both GEPE and GIU), and borrowers' unfamiliarity with Bank's procurement procedures. By May 1995, only 5 percent of the credit had been disbursed. The project was down-graded to "unsatisfactory" on the implementing progress before the MTR, but it should probably have been down-graded earlier. However, it should be recognized that at the time both the Bank (and task manager) and the Government were heavily engaged in and preoccupied with the election process. This, combined with changes in the leadership at UEM and MINED just after the elections not only affected the policy dialog with the Bank, but also the Government's response to pending issues. Concurrently, the Bank's supervision was not getting adequate support as identified by a significant decline in the supervision expenditure: from US $77,000 in 1994 to US $47,000 in 1995 and US $57,000 in 1996. However, after clarity and a level of political stability had returned, the Bank's MTR supervision in 1996 provided far-sighted and constructive intervention to move the project up from an "unsatisfactory" to a "satisfactory" status. After the MTR, the Bank became more proactive and flexible in resolving problems related to the reduction of counterpart funds for civil works and to the reallocation of funds from the unallocated categories in the DCA amendment. The Bank's supervision was also proactive in the day-to-day management of the project, which contributed to the project's satisfactory status, resulting in extensive supervision mission aide-memoires. As a result, disbursements accelerated after 1996. Moreover, the Bank provided intensive support to the clients during the year 2000 flood emergency by extending the project's closing date and allowing for a reallocation of resources. One of the most successful collaborative efforts was the development of a national strategic plan for higher education, financed by the project, and the subsequent development and preparation of the new Higher Education Project approved by the Board on March 7, 2002 (this allowed for the inclusion of lessons learned from the implementation of the UEM component). On the other hand, the Bank supervision did not report on D.O. indicators throughout the project implementation. 7.3 Overall Bank performance: The overall Bank's performance is rated "satisfactory". The most positive aspect was the Bank's pro-activeness and flexibility in providing clear and adequate guidance to the Borrower on various elements and platforms of project implementation through an ongoing dialogue and the preparation of the new Higher Education Project. The satisfactory accomplishment of development objectives and output of components should be credited to both the Bank and the Borrower. Borrower - 16 -  7.4 Preparation: The government preparation performance is rated as "satisfactory" - "satisfactory" for the UEM component and "marginally satisfactory" for the EPU component. During the preparation of the project, there was a relatively high degree of government ownership and stakeholders' involvement, particularly at the level of the Inter-ministerial Committee (IC), which has been providing the leadership and direction for the project. While levels of commitment were very high at UEM compared with the National Directorate of Secondary Education (NDSE) at MINED, GEPE was nevertheless considered one of the best implementation units at the time. Concurrently, MINED was in general understaffed and overburdened, drawing on support from the outside. The project design for the UEM component was prepared by a committee of five senior UEM staff members who worked under the Rector's direct supervision. Representatives of the university department were also involved in working groups, which developed specific sub-components of the proposal. On the other hand, on many aspects, the Bank took on a leadership role in the preparation of the EPU component given the low level of commitment at MINED and NDSE. The school Directors, however, participated in the workshops in which the project components were discussed and reviewed. 7.5 Government implementation performance: The overall Government implementation performance is rated "satisfactory". Although many aspects could be criticized, like the inability to make timely decisions or dissolve the Inter-ministerial Committee in which members were preoccupied by the election process, the leadership and members' attention to the post-war period and first democratic elections were both desirable and critical for the continuation of the post-war construction period. These factors were largely outside the control of the Government and beyond their resources at the time. 7.6 Implementing Agency: The overall performance of the implementing agency is rated as "satisfactory" - "satisfactory" for UEM and "partially satisfactory" for EPU. Before the MTR, UEM encountered difficulties in allocating counterpart funds, which caused delays in the implementation of civil works, while MINED/NDSE lacked leadership and ownership of the project, leading to heavy dependence on GEPE to initiate almost every action. After the MTR, the Borrowers' implementation performance gradually improved over the life of the project. At UEM, the performance improved remarkably after a new Project Coordinator was appointed in 1995 and almost all of the activities were completed at the satisfactory level. All the planned civil works were also completed although most of them were implemented only in the final 3 years of project implementation. Whereas under the EPU comronent, despite the improvement in implementation during the second half of the project, the supervision of rehabilitation and construction was not adequate. The ICR mission identified that rehabilitation of some school buildings has not been successful and that the buildings are back to pre-rehabilitation condition. For instance, there is serious rainwater infiltration on the roof and the low-lying changing rooms are perrnanently under water. This, as previously stated, relates partly to the low quality of civil works supervision by GEPE. Even though GEPE (the implementing agency) specialized in civil works, its lack of experience gave rise to such outcomes. Furthermnore, as GEPE had no experience in the delivery of education services it eventually resulted in a dysfunctional relationship with MINED. 7.7 Overall Borrower performance: Overall Borrowers performance is rated as "Satisfactory". - 17 -  8. Lessons Learned The Higher Education Project benefited and future projects may benefit from the following lessons learned: * Coordination and authorization through an Inter-Ministerial Committee (refer to 3.1; 7.4): Cross conditionalities and invested decision making to an Inter-Ministerial Committee e.g. for the appointment of project coordinators, are difficult to manage and can create unnecessary complications leading to delays. Committees at this level should be involved in the overall progress evaluation, strategic directions and policy guidance. * Implementation through external PIU (3.1): To ensure effective learning outcomes and adequate ownership, project activities should be implemented through Ministry structures. This will also ensure closer collaboration with end-users in the procurement decision process and adequate alignment with government recurrent budget allocations. Finally, where necessary, project staff should have clear terms of reference and clarity in their report inside the Ministry/university structures. * Bank's responsiveness to change/flexibility in design and allocations offunds (7.1; 7.2) are increasingly becoming the critical features of successful projects. Both social and economic context, of a project or country can change so rapidly and dramatically. Only projects where the design alongside Bank's flexibility would be able to accommodate these changes, will the project be aligned with Government priorities and therefore enjoy full political support and ownership. * Knowledge of Bank procedures, procurement andfinancial management (5.3; 5.4): Good project progress and accelerated disbursements are closely related to the Borrowers' experience and knowledge of Bank procedures, and not just capacity per se. Forward planning, continuous training in Bank procedures, and high quality in the procurement processing and cash flow management are determinants of an effective implementation. The support of international or national consultants early on in the project phase can be critical for determining the time before adequate capacity and experience is in place. * Ownership, continuity and trust (7.2): Clear ownership by the people involved in the implementation of the project and long term continuity in the Bank team builds trust and insight easing implementation and maintaining a common focus on entailing strategy. * Rehabilitation vs. new construction (4.2): The Bank's experience in civil works has predominantly been in construction of new structures. Rehabilitation is also becoming an important area for Bank financing as more countries wean themselves out of civil strife and experience natural disasters. Rehabilitation is not only complicated but it is also specialized work. An important lesson though is that sufficient detail needs to be put into the design work through adequate elaboration of consulting engineers TORs to avoid unnecessary addenda during implementation. In addition, it is important to exercise tight supervision and monitoring of costs by both the client and the Bank. * Capacity Building (4.2): To promote capacity building within institutions, project activities should not only be limited to staff development, such as training, but they should also look at the broader issues of staff retention and non-salary incentives. One of the main successes of the project has been its high staff retention rates due to staff incentives and staff motivation policies. While staff incentives included the allocation of time to academic staff to provide part-time services to the p ivate sector (part-time teaching in private institutions), staff motivation policies supported a home ownership scheme where staff benefited from the house construction and rehabilitation program under the project. - 18 -  9. Partner Comments (a) Borrower/implementing agency: Eduardo Mondlane University (see details in Annex 8): Execution of Activities: The project activities, in general, were satisfactory. There was flexibility in the inclusion of some activities, which were not previously planned to be executed by the project. Until the project closing date in June 30, 2001, the project registered a financial execution of 100.3 percent out of SDR 19,695, the amount allocated to the UEM. The additional execution of 0.3 percent represents the disbursement of US $7,590 corresponding to SDR 6,500 drawn from the global amount of SDR 661,000 requested during the final project supervision mission, to be reallocated from Part B (MINED) to Part A (UEM) of the project, for the financing of some activities which had been previously cancelled because of the exhaustion of funds available. Scope of the Objectives: Overall, the project objectives were attained and contributed toward the following: a) improvement of the quality of the teaching and learning process; b) improvement of the accommodation conditions for the teaching and administrative staff; c) improvement of the academic qualifications of the personnel; d) improvement of the accommodation conditions for students; e) rehabilitation of the partial physical plant of the UEM; f) beginning of the strengthening of the financial management system; and g) improvement of the access to internet. Sustainability and Future Operation: The project activities are sustainable and will be continued in the scope of UEM Strategic Plan (PEUEM), with emphasis on: a) administrative efficiency; b) excellence and quality; c) development and financial sustainability; d) development of physical plant; e) stabilization and human resources development; f) increasing the number of enrollments; g) improvement of social conditions; h) assurance/iznprovement of the equity of gender; i) development of institutional twinning arrangement; j) simulation of the academic environment; and k) divulging the image of the UEM. These activities will be funded continuously by the Govermment of Mozambique, the World Bank's new Higher Education Project, and other donors. Drawing Lessons for the Future Operation: * The Project Implementation Unit (PIU) needs to be established before the initiation of implementation activities by the project, preferably during the phase of appraisal. * The procurement function (analysis of the bidding document, analysis of the evaluation report and attribution of the respective "No Objections") should be decentralized in order to be handled by the World Bank's country office. * The process of contracts awarding opens a room for equity in both quality and price, not only giving emphasis to the lowest price. * In the implementation of the new project, the depreciation of SDR through an exchange rate mechanism should be followed in such a way that funds of the credit will be maximized in favor of the beneficiary. Ministry of Education (see Annex 9) - 19 -  Quality of Pre-university Education: As a result of seminars and studies carried out under the project, a new curriculum frame for the pre-university education (EPU) was designed in 1994, establishing three fields of specialization, A, B and C, according to students' perspectives for higher education. Implementation of the new curricular frame started in 1995. A seminar for the review of the country's curriculum for upper secondary education and a review of its examination system was conducted in June 1996, resulting in the introduction of a new subject - philosophy - and the split of the then single subject "physics and chemistry" into two individual subjects. Moreover, as a result of studies and seminars realized under the project, a new exam system was designed and its implementation started in 1996. Twenty-five EPU school directors and pedagogic directors benefited from training courses in Portugal and a number of technicians at NDSE attended English language courses and seminars in Zimbabwe and Botswana. With regards to EPU teachers' training, eleven national and three regional seminars on specific subjects related to teaching methodologies were conducted. In addition, out of the project proceeds, technicians from NDSE carried out several pedagogic supervision visits to all EPU schools from 1994 till 1999. Altogether 8140 textbooks and 130 encyclopedia as well as various materials and supplies were purchased for school libraries. Didactic materials for sports, physical education and audio vision materials were also purchased for the EPU schools. Six punching and binding machines, 6 paper cutters, 18 projectors (and accessories), 13 photocopying machines, 8 multi-copying machines and, 24 typing machines, 18 computers, 12 printers were also purchased for EPU schools. Moreover, laboratory equipment for chemistry and didactic material for drawing were purchased for 6 upper secondary schools. Technical specifications for laboratory materials for chemistry and biology were prepared. Stabilizing the EPU networkl All the six EPU schools proposed for rehabilitation or construction from grassroots under the project were completed although one school (Josina Machel EPU school) in Maputo was omitted from the project because it had already been covered under the Bank's Second Education Project. The same cannot be said for the construction/rehabilitation of dormitories as only two of the proposed five dormitories were built. The construction of the other three donnitories had to be abandoned due to price overruns. The reason why the project allocation for construction/rehabilitation of student dormitories was not enough to cover all five proposed dormitories was the high standard of the adopted design. A more modest design would cost less and still meet the minimum comfort and functionality requirements generally accepted for secondary schools student dormitories in Mozambique. The same is true for the design of the Xai-Xai EPU secondary school. A better understanding of the local climate and construction practice would have helped the designer to use a more appropriate and less expensive design. It is also obvious that the designer did not take into consideration the budgetary limits for his design. The quality of construction works can be considered good although most construction contracts spanned longer than the contractual deadlines. This may be due to the unrealistic time spans stipulated by GEPE, and the inefficient network of supply of construction materials. In the case of rehabilitation works, the quality may be rated as regular, since some problems encountered before the rehabilitation were not resolved by the rehabilitation exercise. This may be attributable to the inexperience of the engaged consultants in designing efficient rehabilitation remedies. It should be mentioned that this was the first large scale rehabilitation exercise ever undertaken in the country at that time after an absence of more than twenty years of building maintenance/rehabilitation activities in the country. Building Management Capacity of EPUs and the National Directorate of Secondary Education: - 20 -  A national meeting of the secondary school directors was held in Maputo in October 1995 to discuss school management techniques and problems encountered by school managers. In 1997, twenty-five school directors were trained in Portugal in the fields of school administration and management. Raising girls' Enrollment Rates at the EPUs: A number of female upper secondary school students throughout the country, except for Maputo, benefited from scholarships (US $15 per student per month). The program started with 70 girls in 1994 and ended in 2000 with 355 female students. The program could have reached more girls if it were not for the bureaucratic problems faced during the implementation of the program and the low geographical coverage of the banking network in the country, which made it difficult or impossible to channel these scholarships. (b) Cofinanciers: N.A. (c) Other partners (NGOs/private sector): N.A. 10. Additional Information N.A. - 21 -  Annex 1. Key Performance Indicators/Log Frame Matrix Outcome / Impact Indicators: Indicator/Matrix - Projected In last PSR Actual/Latest Estimate A 1: Increase the number of graduates PSR did not indicate development outcomes. Number of graduates increased from 151 in 1992 to 695 in 2000. A.2: Improve graduation rates PSR did not indicate development outcomes. Graduation rate increased from 23 percent in 1992 to 49 percent In 1999. Percentage of graduates who complete all degree requirements within the official prescription tme increased from 4.8 in 1997 to 12.9 percent in 2000 (infomnation is not available between 1992 and 1996). A.3: Improve examination scores PSR did not indicate development outcomes. Pass rate on the finial examination improved from 38.6 percent in 1994 to 53.2 percent in 2000 (information is not available between 1992 and 1993). A.4: Improve drop-out and repetition rates PSR did not indicate development outcomes. Information Is not available. A.5: Improve quality of teaching staff The number of the Mozambican full-time The proportion of the Mozambican full-time teaching staff who held doctoral or master teaching staff who held doctoral or master degrees Increased from 46 In 1992 to 204 in degrees has also increased from 17 percent 1999. in 1992 to 46 percent 1999. A.6: Increase student/teacher ratio Last PSR did not indicate development The student/full-time teacher ratio increased outcomes. from 6.9 in 1992 to 9.3 in 1999 B.1. Improve average examination scores as Last PSR did not indicate development The average examination pass rate in EPU well as graduation rates outcomes. improved from 58.5 percent In 1994 to 66.0 percent in 2000. Graduation (completion) rate also improved from 40.0 percent in 1994 to 54.2 percent in 2000. B.2. Reduce drop-out and repetition rates Last PSR did not indicate development Drop-out rate declined from 6.8 percent in outcomes. 1994 to 2.8 percent in 2000. Repetition rate also declined from 16.9 percent in 1994 to 9.7 percent in 2000. B.3. Improve quality of teaching staff Last PSR did not indicate development The number of qualified teachers increased outcomes. from 140 in 1994 to 368 in 2001. However, the proportion of qualified teachers declined from 90 percent In 1994 to 76 percent in 2000. B.4. Increase the girs' enrollment rates Last PSR did not indicate development The girls enrollment in public EPU increased outcomes. from 1,271 In 1994 to 4,301 in 2001 and the share of girls enrollment also increased from 25.8 percent in 1994 to 26.4 percent in 2001. B.6. Increase student/teacher ratio Last PSR did not indicate development The ratio slightly increased from 25 in 1994 outcomes. to 26 in 2000. The student/qualified teacher ratio also increased from 32 in 1994 to 36 in 2000. A: Eduardo Mondlane University (expand the quantity and improve the quality of university graduates) B: Pre-University Education (enhance the quality of pre-university education) Output Indicators: fl h ; Indlcator/Matrix . Projected In last PSR Actual/Latest Estimate A.1. Expand students access to textbooks 4,350 titles of books were Imported by the On average 7 to 8 books has been provided and study materials (pmrvide at least 5 books project. Local production of textbooks to each student. to each student), and increase local textbook commenced and 30 original books were production (complete 124 texts) ed,ted by the UEM staff and published a series of study manuals. A.2. Expand computerization of UEM 60 computers, printers, software, and Computer training was expanded as a department supporting equipment was acquired and requirement courses In all university computer training was expanded as a departments. requirement courses in all university - 22 -  department. A.3. Establish linkage agreements Two twining arrangements with intemational Twinning arrangements were partially (economics, engineering) academic Institutions were achieved: (i) the achieved and the arrangement of Economic Faculty of Economics was linked to Faculty has an impact on the students (see Universidade de Roma Tor Vergata for a details on 4.2) period of 3 years; and (ii) the Faculty of Engineering was linked with Instituto Superior Tecnico de Usboa for 15 months. A.4. Increase housing stocks for staff The project constructed 92 on-campus Same as the last PSR retenUon apartment, renovated 108 on-campus apartments, and rehabilitated 100 off-campus apartments. A.5. Ensure the development of the 128 fellowships were granted during the Same as the last PSR Mozambican academic and administrative project: 41 doctoral program; 51 Masters staff (complete 3 doctoral and 35 Masters degrees; 24 Licenciatura (honors degree); degrees and staff retumed) and 12 Bachelor's degrees. A. 6. Strengthen management and 1,883 participants attended over 24 different Same as the last PSR accountability courses (e.g., project management, management of data information, and procurement courses). A. 7. Expand students' residences Accommodation for a total of 717 students Same as the last PSR was rehabilitated: out of which, 180 were new bed spaces. A.8. Establish effective maintenance Last PSR did not indicate it. No budget was allocated for the maintenance program (GIU functioning; maintenance training; budget increase from 0.5% to 2.0%) B.1. Develop new curriculum and A review of the existing examination system Same as the last PSR examination system was conducted resulting in the creation of three broad categories of student specializations: arts; sciences; and technical courses. B.2. Provide books/Leaming materials and Physics labs were equipped in 6 EPU 8,140 textbooks and 130 encydopedia were teaching kits schools and usage training for teachers was purchased and delivered to EPU school conducted. Books were provided in 12 EPU libraries schools but books utlization was poor in most schools. B.3. Provide training to teaching and 25 school directors and teachers went for a Same as the last PSR administrabve staff three months training in Portugal. Several staff members benefited from English language courses in Zimbabwe and others went for distance leaming seminars in Botswana. B.4. Rehabilitaton, equipping and physical 6 EPUs was completed. Same as the last PSR expansion of EPUs B.5. Increase dormitories and teachers One existing dormitory was rehabIlitated and Same as the last PSR houses 4 dormitories were constructed. 43 teacher houses were constructed. B.6. Build management and administraUve General regulation for school administration Same as the last PSR capacity was produced and disseminated; however, materials for financial management were not done. 25 NDSE staff members and EPU administrators were sent to Portugal for training in planning, school administration, education technology. B.7. Support EPU's decentralized activities B.8. Increase giris' particpation; % 804 scholarships were provided to female 1158 scholarships were provided to female scholarships offered. students student. End of project A: Eduardo Mondlane University (expand the quantity and improve the quality of university graduates) - 23 -  B: Pre-University Education (enhance the quality of pre-university education) -24 -  Annex 2. Project Costs and Financing Project Cost by Component (in US$ million equivalent) Appraisal ActuaULatest Percentage of Estimate Estimate Appraisal Project Cost By Component US$ million US$ million A.l. Educational Quality Improvement 5.26 5.58 106 A.2. Staff Housing 6.54 7.73 118 A.3. Staff Development 3.60 4.82 134 A.4. Management Development 2.20 2.35 107 A.5. Student Residence 3.89 4.62 119 A.6. Building Rehabilitation 8.83 10.68 121 B.l. Education Quality Improvement 3.36 1.17 35 B.2. Facilities Upgrading 12.49 14.12 113 B.3. Management Development 1.42 0.81 57 B.4. Female Education 0.85 0.28 33 Total Baseline Cost 48.44 52.16 Physical Contingencies 4.64 Price Contingencies 7.20 2.00 Total Project Costs 60.28 Total Financing Required 60.28 54.16 __ _ _ A: Eduardo Mondlane University (expand the quantity and improve the quality of university graduates) B: Pre-University Education (enhance the quality of pre-university education) (i) US $2 million is listed under price contingencies as loss through teh depreciation of the SDR; (ii) Not all counterpart funding and beneficiary contributions are included, thus actual expenditure are underestimated. Project Costs by Procurement Arrangements (Appraisal Estimate) (US$ million equivalent) . . ~ Procurement Method' Expenditure Category ICB NC N.B.F. Total Cost 1. Works 26.70 1.20 0.00 0.00 27.90 (23.90) (1.10) (0.00) (0.00) (25.00) 2. Goods 4.00 0.00 1.40 0.00 5.40 (3.80) (0.00) (1.30) (0.00) (5.10) 3. Services 0.00 0.00 12.50 0.00 12.50 (Consultant Services) (0.00) (0.00) (9.90) (0.00) (9.90) 4. Training 0.00 0.00 7.80 0.00 7.80 (0.00) (0.00) (7.80) (0.00) (7.80) 5. Incremental Operating 0.00 0.00 5.90 0.00 5.90 Costs (0.00) (0.00) (0.00) (0.00) (0.00) 6. Miscellaneous 0.00 0.00 0.80 0.00 0.80 (0.00) (0.00) (0.80) (0.00) (0.80) Total 30.70 1.20 28.40 0.00 60.30 (27.70) (1.10) (19.80) (0.00) (48.60) - 25 -  Project Costs by Procurement Arrangements (Actual/Latest Estimate) (US$ million equivalent) Expenditure ,at.go.r Procurement Method Expenditure C:ategory ICB NCB Other' N.B.F. Total Cost 1. Works 9.45 0.00 0.06 0.00 9.51 (8.46) (0.00) (0.05) (0.00) (8.51) 2. Goods 15.24 0.00 4.12 0.00 19.36 (13.64) (0.00) (3.69) (0.00) (17.33) 3. Services 3.81 0.93 5.55 0.00 10.29 (Consultant Services) (3.41) (0.85) (4.97) (0.00) (9.23) 4. Training 0.00 0.00 8.67 0.00 8.67 (0.00) (0.00) (8.67) (0.00) (8.67) 5. Incremental Operating 0.00 0.00 5.90 0.00 5.90 Costs (0.00) (0.00) (0.00) (0.00) (0.00) 6. Miscellaneous 0.00 0.00 0.30 0.00 0.30 (0.00) (0.00) (0.30) (0.00) (0.30) Total 28.50 0.93 24.60 0.00 54.03 (25.51) (0.85) (17.68) (0.00) (44.04) Miscellaneous includes PPF. "Figures in parenthesis are the amounts to be financed by the Bank Loan. All costs include contingencies. 21Includes civil works and goods to be procured through national shopping, consulting services, services of contracted staff of the project management office, training, technical assistance services, and incremental operating costs related to (i) managing the project, and (ii) re-lending project funds to local govemment units. Project Financing by Component (in US$ million equivalent) Percentage of Appraisal Component - Appraisal Estimate ActuallLatest'Estimate Bank Govt. CoF. Bank Go,,| CoF.. Bank Govt. CoF. UEM (A) A.1. Civil Works 10.50 2.60 0.00 8.63 1.29 0.00 82.2 49.6 0.0 A.2. Technical Assistance, 5.60 0.00 0.00 6.79 0.00 0.00 121.3 0.0 0.0 Studies & Audits Expenditures A.3. Vehicles, Equipment, 1.30 0.00 0.00 3.29 0.00 0.00 253.1 0.0 0.0 Supplies and Materials Expenditures A.4. University Book Fund 0.90 0.00 0.00 0.88 0.00 0.00 97.8 0.0 0.0 Expenditures A.5. Training Expenditures 4.50 0.00 0.00 8.04 0.00 0.00 178.7 0.0 0.0 EPU (B) 0.00 B.I. Civil Works 6.70 1.70 0.00 8.67 2.17 0.00 129.4 127.6 0.0 B.2. Technical Assistance, 3.80 0.00 0.00 2.50 0.00 0.00 65.8 0.0 0.0 Studies & Audits Expenditures B3. Vehicles, Equipment, 2.00 0.00 0.00 4.56 0.53 0.00 228.0 0.0 0.0 Supplies and Materials Expenditures B.4. Training Expenditure 2.50 0.00 0.00 0.65 0.00 0.00 26.0 0.0 0.0 - 26 -  Refunding of Project 0.80 0.00 0.00 0.22 0.00 0.00 27.5 0.0 0.0 Preparation Advance Unallocated 9.50 0.00 0.00 0.00 0.00 0.00 0.0 0.0 0.0 Total 48.10 4.30 0.00 44.23 3.99 0.00 92.0 92.8 0.0 - 27 -  Annex 3. Economic Costs and Benefits No attempt was made at appraisal to estimate n Net Present Value (NPV) or an economic rate of return, and therefore there is no baseline. The objectivies of the ICR mission did not include attempting to apply NPV/rate-of-retum methodology to a project of theis type, focusing mainly on quality improvement. - 28 -  Annex 4. Bank Inputs (a) Missions: Stage of Project Cycle No. of Persons and Specialty Performance Rating (e.g. 2 Economists, 1 FMS, etc.) Implementation Development Month/Year Count Specialty Progress Objective Identification/Preparation April/ May, 1991 13 SEC, EC, two HES, two SES, two PSRS; three ETS; two PAS (6 of them are WB consultants and 4 are from SIDA) September, 1991 5 SPO, EC, ED, HES, PAS February/ March, I SCES 1992 Appraisal/Negotiation March/ April, 12 SPO, EC, COU, ED, two 1992 HES, SEP. LA, LE, LS, PAS, AR July, 1992 8 CO, SPO, SEC, EC, HES, COU, DO, SCES Supervision June/July, 1993 6 SPO, EC, COU, HES, FMS, (Project launch) LS, March, 1994 1 ETC S S May, 1995 3 ETS, HES, AR S S December, 1995 1 ETS U S February/ March, I ETS U S 1996 November/ 5 SEC, SES, ETS, AR, ES U U December, 1996 (Mid-Term Review) September, 1997 3 SES, AR, ES S S February, 1998 2 SES, AR S S October/ 2 SES, AR S S November, 1998 April/May, 1999 2 PES, AR S S September/ 4 EE, EC, AR, DO S S October, 1999 May/ June, 2000 4 EE, SEC, AR, ES S S March, 2001 4 SEC, GS, DA, AR S S - 29 -  ICR December, 2001 2 EE, SEC Specializations: SPO: Sr. Program Officer; EC: Economist; Educator: ED; HES: Higher Education Specialist; COU: Counsel; PAS: Public Administration Specialist; SCES: Secondary Education Specialist; PSRS: Public Sector Reform Specialist; PAS: Public Administration Specialist; LA: Lawyer; .LS: Legal Specialist; AR: Architect; ETS: Education Training Specialist; SES: Senior Education Specialist; ETS: Education Training Specialist; ES: Education Specialist; TS: Textbook Specialist; EE: Education Economist; EP: Education Planner; MS: Management Specislist; TTS: Teacher Training Specialist; PES: Principal Education Specialist; 00: Operation Officer, DO: Disbursement Officer; SEC: Senior Economist; GS: Gender Specialist; DA: Disbursement Analyst; DO Disbursement Officer; CO: Country Officer; PO: Program Officer (b) Staff: Stage of Project Cycle Actual/Latest Estimate No. Staff weeks US$ (000) Identification/Preparation 37.2 91.2 Appraisal/Negotiation 68.0 167.4 Supervision 204.2 642.3 ICR 10.0 25.0 Total 319.4 925.9 - 30 -  Annex 5. Ratings for Achievement of Objectives/Outputs of Components (H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable) Rating OMacro policies O H OSUOM O N * NA OSector Policies OH *SUOM ON O NA F Physical O H O SU * M O N O NA ? Financial O H OSU*M O N O NA Z Institutional Development O H * SU O M 0 N 0 NA Z Environmental O H OSUOM O N * NA Social F Poverty Reduction OH OSU*M ON O NA I Gender OH OSU *M O N O NA O Other (Please specify) O H OSUOM O N * NA Private sector development 0 H O SU O M 0 N * NA O Public sector management O H SU O M 0 N 0 NA O Other (Please specify) O H OSUOM O N * NA - 31 -  Annex 6. Ratings of Bank and Borrower Performance (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory) 61 Bank performance Rating F Lending OHS*S Oiu OHU F Supervision OHS OS O U O HU F Overall OHS OS O u O HU 62 Borrowerperformance Rating F Preparation OHS OS O u O HU Z Government implementation performance O HS OS 0 U 0 HU 0 Implementation agency performance OHS OS Ou O HU F Overall OHS OS OU O HU - 32 -  Annex 7. List of Supporting Documents Aide-memoire. World Bank, 1993-2001. Annual Report 1996-1997. Eduardo Mondlane University, March 1998 Annual Report: 1995-1996. Eduardo Mondlane University, November 1996 Annual Report 1994-1995. Eduardo Mondlane University, March 1996 Annual Report: 1993-1994. Eduardo Mondlane University, 1991 Annual Report 1992-1993. Eduardo Mondlane University, October 1991 Annual Report: 1991-1992. Eduardo Mondlane University, October 1991 Capacity Building Project UEM Component: Evaluation of Civil Works. by Pieter Smoor (Architect Consultant), 2001 Capacity Building Project EPU Component: Evaluation of Civil Works. by Pieter Smoor (Architect Consultant), 2001. Eduardo Mondlane University: Review of Governance, Planning and Management. Commonwealth Secretariat, May 1992. Present and Perspectives. Eduardo Mondlane University, 1991 Project Appraisal Report: Capacity Building: Human Resources Development Project. World Bank, October 1992. Project Evaluation Report (Component A). Eduardo Mondlane University, 2001 Project Evaluation Report (Component B). Ministry of Education, 2002 Project Status Reports. World Bank, 1993-2001. - 33 -  Additional Annex 8. The Borrower's Evaluation Report: Eduardo Mondlane University -34 -  A<)UNIVERSIDADE FPUARP.0 MQNDLA, Gabinete do Reitor' SCANNED FILE COPY . ~ cesgIon No. Box NO. Dear Sir N Soren Nellemann . = Task Manager World Bank -. f-;ep|C Washington-USA Ref RT/158/01 (05/07/2001) Subject: UEM-ICR of the Capacity Building Project Dear Soren Nellemann, In the terms of the Credit Agreement 2436 as after the implementation of the project activities, during periodfrom January 1, 1994 to June 30, 2001, the UEMprepared an evaluation report to be included in the formal document of the Implementation Completion Report (ICR). After the final project supervision mission, held during the period comprehendedfrom 20th to 30'h, of March of 2001, it was handover to the Task Team Leader, Dr. Noel Kulemeka, one project Implementation Report until June 30, 2001, in an effort to speed the preparation of ICR, printed in April 3, 2001. The present report has been continuously improved and will be made available before the end of July. It is of paramount importance that the current evaluation report, be crossed with the final Implementation Report, that presents more detailed elements of the project implementation. Find attached to this letter the evaluation report. The Rector of UEM 1a  REPjPBLICA DE MOCAMBIQUE UNIVERSIDADE EDUARDO MONDLANE IMPLEMENTATION COMPLETION REPORT CAPACITY BUILDING PROJECT (CREDIT 2436) INTRODUCTION This document comprises the Implementation Completion Report (ICR- UEM) of the Capacity Building Project Credit 2436) approved in January 29, 1993. The project came into effect on the date of January 1, 1994 and the respective closing date on June 30, 2001. The project started with a total amount of SDR 34.100.000, being the part allocated to the UEM in SDR 19.650.000. (58Y), corresponding approximately USD 28.360.800, according to an average medium exchange rate mechanism of ] SDR equal to 1,44 USD. The ICR was prepared taking into account the following elements: 1. THE EXECUTION OF ACTIVITIES 2. THE SCOPE OF THE OBJECTIVES 3. SUSTAINABILITY AND FUTURE OPERATIONS 4. DRAWING LESSONS FOR THE FUTURE 2  1. THE EXECUTION OFACTIVITIES The project activities, in general, were realized satisfactorily, there were flexibility in the inclusion of some activities, which were not previously planned to be executed by the project. Until June 30, 2001, the project closing date, the project registered a financial execution of 100,26% ouit ofSDR 19.695.000, the amount allocated to the UEM The additional execution of 0,26% represents the disbursement of USD 7.590,54, corresponding to SDR 6.500, drawn from the global amount of SDR 661.000 requested during the final project supervision mission, to be reallocated from the "part B (MJNED)" to the "part A (UEM) " of the project, for the financing of some attivities which had been previously cancelled, because of the exhaustion offunds available. The global amount SDR 661.000, were already fully committed up to June 30, 2001, with some disbursement to be executed during the grace period. comprehendedfrom July 1, 2001 to October 31, 2001. 2. THE SCOPE OF THE OBJECTIVES In overall the project objectives were attained and having contributed for. i) improvement of the quality of the teaching and learning process, ii) improvement of the accommodation conditions for the teaching staff and the administrative staff; iii) improvement of the academic qualifications of the personnel; iv) improvement of the accommodation conditions for the students; v) rehabilitation of the partial physical plant of the UEM; vi) beginning of the strengthening of the financial management system, and vii) for the access to internet.  3. SUSTAINABILITYAND FUTURE OPERATIONS The project activities are sustainable and will be continued in the scope of UEMStrategic Plan (PEUEM), with emphasis to: i) the administrative efficiency; ii) the excellence and quality; iii) development andfinancial sustainability; iv) development of the physical plant; v) stabilization and Human Resources Development; vi) increasing the number of enrolments; vii) improvement of the social conditidns; viii) assure/improve the equity of gender; ix) development of institutional twinning arrangement; x) stimulation of the academic environment; xi) divulge the image of the UEM; The activities above indicated will be funded by the World Bank, the Government of Mozambique and by other donors. 4. DRA WING LESSONS FOR THE FUTURE a) in the extent of the project management The project, initiated the implementation of activities without any "Project Implementation Unit" (PIU), what between other issues, caused a great delay determined in the implementation of the project activities (in the first year with 0,4% level of disbarsement and an aggregate of 4% in the first 2 years). As a lesson for the future, it is suggested that the PIU must stablished before the initiation of implementation activities by the project. preferablv during the phase of 'appraisal', in an effort to assure: 4  i) that the implementation of new project doesn't initiatedfrom Zero stage, taking into consideration the experience accumUlated from the current Implementation, making sure that there is a continuity; ii) improve better execution of the activities of the next project; iii) better articulation between the phase of project preparation and the phase for its implementation; Therefore. it is also recommended, that the PIU-Central. including GIU- Gabinete de Instalacjes Universitdrias, be maintained as the next units for the implementation of the forthcoming project. with some corrective mechanism being introduced, in a way to safeguard the best efficiency in its functionality. b) The scope of the Procurement Function The procurement of (goods,works and services ) observes a very long cycle, this issue doesn't contribute effectively for the best execution of the project activities. It is suggested as a lesson for the future, that the procurement function (analysis of the bidding document, analysis of the evaluation report and attribution of the respective No Objections), be decentralized in order to be handled by the World Bank Resident Mission, so- that the procurement function becomes more efficient, streamlining the implementation of the planned activities. In an effort to streamline the procurement function, it is suggested that the process of awarding of contracts opens a room for an equitv both qualitv and price, not only given emphasis to the lowest price as it is the procedure presently, regarding the quality for the second place, in the perspective to avoid the experience gatheredfrom the Faculty of Science in the first phase of construction preventing being repeated. Although this activity had been financed by other credit not by 2436, it very important to refer this lesson, because it had occurred during the implementation of the 2436 credit.  c) The disbursments concerned to training In the case of UEM, given to the reason that the Post-Graduation training abroad will continue, there is a need to lay down a set of rules that will allow the equitable andfair attribution of scholarships by the different organs of the UEM, with inclusion of other critical aspects. The World Bank disbursement system must be revised, in an effort to attend and assist efficiently the needs of the credit beneficiary. (Disbursement during the course . of the project execution for funding the training needs that will continue after the period of the closure of the project). d) Other aspects d.1. In the component of the rehabilitation of the physical plant: Taking into account that the component for the rehabilitation, it is new in activities being financed by the World Bank, in the wake of the difficulties experimented in the course of the credit 2436 implementation, given to the fact that the component for rehabilitation will continue in the next credit, it is suggested be executed through an autonomous flexible function, to be considered and approved for execution in the framework that would allow more dynamic implementation procedures. d.2. In the component off inancial management Bearing in mind that, the original currency of the credit were SDR and, when executed are converted automatically into USD, according to the calculations previously done by the PIU, it is estimated that the depreciation of SDR against to the USD, had caused a lost of around USD 1.200. 000 in the credit 2436. In a nut shell. it is suggested that in the implementation of the new project. the depreciation of gD? through the exchange rate mechanism be followed, in way that funds of the credit being maximized in favour of the beneficiary. 6  Final Observation- As was referred in the above cover letter, the UEM prepared the final implementation project report, that contains more detailed information, having only to be considered as a source of reference complemented to the ICR. 7~~~~~~~~~~~~~~~~~~~~~~~~~~~  Additional Annex 9. The Borrower's Evaluation Report: Ministry of Education -42 -  REPUBLIC OF MOZAMBIQUE Z MINISTRY OF EDUCATION 5 m IMPLEMETANTION COMPLETION REPORT CAPACITY BUILDING PROJECT 0 (CREDIT 2436-MOZ) , B 1. SUMMARY This document represents the Implementation Completion Report (ICR), for part B - Upper Secondary Education Improvement component of the Capacity Building Project (CBP) in Mozambique. The Development Credit Agreement between the Republic of Mozambique and the International Development Association was signed on March 28, 1991, and was declared effective on . The Credit was in the amount of SRD 34,1 million to be used in the implementation of part A - University Stabilization (aprox. US$ 30.3 million), and part B - Upper Secondary Education Improvement. (approx. US$ 18.1 million). The final closing date was June 31, 2001. 2. INTRODUCTION The present ICR covers only part B (MINED) of the credit an was prepared by a team comprising of: Mr. Zefanias Muhate (MINED Permanent Secretary, MINED), Mr. Herminio Malate (General Director, GEPE/MINED), Mr. Daniel Bomba (MINED senior official), Mr. Oaldo Tarmamade (Head, Construction Depart., GEPE/MINED), Mr. Antonio Nhampossa (Head Finance Department, GEPE/MINED), and, Mr. Baiane ( MINED/NDSE senior official), Mr. Cossa (MINED/NDSE senior official). Valuable inputs were also received from Mr. Pieter Smoor, consultant and from the World Bank. 3.THE REPORT With the present report the Borrower intends to: (a) assess the project outcomes as compared to the stated project goals; (b) evaluate the performance of the Borrower and IDA during project preparation and implementation; and (c) draw lessons which could be used to improve the implementation of future education projects. Other issues to be discussed are the achievement of stated Project Objectives, the implementation Record, and the Project sustainability. 4. PROJECT OBJECTIVES The broad project objectives, as spelt out in the Staff Appraisal Report (SAR), are to: (a) expand the quantity and improve the quality of university graduates, by stabilizing and motivating the Mozambican teaching faculty, enriching the learning environment, upgrading and maintaining the UEM physical facilities, and improving organization and management practices; and (b) enhance significantly the quality of upper secondary education, by taking important positive steps in the areas of teacher training, provision of books and other teaching/learning materials, school management and community involvement, and schoolfacilities rehabilitation. To facilitate implementation, the main project objectives to were grouped into the following components: I  (a) University Stabilizationz: upgrading and construction of faculty apartments; staff development; institutional linkages to bolster key departments; supply of library materials, textbooks, computers and other teaching materials; enhanced management and accountability; expansion of students dormitories; and general upgrading of university physicalfacilities and development of a maintenance program. (b) Upper Secondary Education Improvement: accelerated teacher training; curriculum reform; supply of textbooks and teaching aids, school management training; establishment of a scholarship fund for girls; rehabilitation of six existing pre-university secondary schools (EPUs); construction of staff housing and students residences. The Upper Secondary Education Improvement component, was to be implemented by MINED and consists of the following sub-components: (i) Improvements in the quality of vre-universitv education by increasing the supply of teachers, supporting the development of a new curricullum and examination system; increasing the availability of textbooks and other learning materials; providing teachers with pedagogical support in the form of teaching materials; and supervisory visit; strengthening the strategic planing capacity of the NDSE; and improvements in the system of in-service teacher training. (US$ 3.4 million) (ii) Stabilizing the EPU network by rehabilitating the existing schools, and constructing dormitories and staff housing.(US$ 12.5 million) (iii) Building management cayacity of the EPUs and the National Directorate of Secondary Education, and strengthening school maintenance capacity by in-service training for school directors and administrators in planing and financial management; decentralizing the materials budget and maintenance activities; strengthening project management; and introducing efficient information management systems at school level and between MINED and individual schools (US$ 1.4 million). (iv) Raising girls' enrollment rates at the EPU's, by providing scholarships for girls, supporting communities awareness programs, and increasing the number of female teachers (US$ 680,000) 5. ASSESSMENT OF PROJECT OUTCOMES The above indicated project objectives were to be achieved through stabilization of the existing EPU network; improvements in the quality of pre-university education nation-wide; and strengthening of management capacity and maintenance capabilities at the school level. 5.1 -Ouality of ore-university education sub-component 5.1.1 Original Project Outcomes 5.1.2 Actual Project outcomes Development of new curriculum As a result of seminars and studies carried out under the project, a new curriculum frame for the upper secondary education was designed in 1994, esfablishing three fields of specialization, A, B and C, according to the students prespective for higher education. Implementation of the new curricular frame started in 1995. A seminar for the review of the country 's curriculum for upper secondary education and review its exam system was conducted in June 1996, resulting in the introduction of a new subjects - philosophy - and the split of the then single subject "Physics and chemistry" into two individual subjects. Review of exam system Also as a result of studies and seminars realized under the project, a new exam system was designed and, its implementation started in1996. 2  Staff development 25 upper secondary school directors and pedagogic directors benefited from training courses in Portugal and a number of technicians at NDSE attended English language courses and seminars in Zimbabwe and Botswana. Regarding supper secondary education teachers' training, eleven (11) national and three (3) regional seminars on specific subjects teaching methodology were conducted. Also out of project proceeds, technicians from NDSE carried out several pedagogic supervision visits to all upper secondary education schools from 1994 till 1999. Equipment and suppliesfor the NDSE 8140 textbooks and 130 encyclopedia were purchasedfor school libraries as well as, various materials and supplies. Didatic materials for sports, physical education and, audio vision materials were also purchased for Upper secondary schools. 6 punching and binding machines, 6 paper cutters, 18 projectors (and accessories), 13 photocopying machines, 8 multi-copying machines and, 24 typing machines, 18 computers, 12 printers were also purchasedfor EPU schools. Laboratory equipment for chemistry and didatic material fordrawing was purchased for 6 upper secondary schools. Technical specifications for laboratory materials fpr chemistry and biology were prepapered. 5.2- Stabilizine the EPU network sub-component 5.2.1 Original Proiect Outcomes The stabilization of the EPU network was to be achieved through the rehabilitation of 6 (six) existing EPU's and construction of student dormitories and staff houses as per the following schedule: Table 1- List of EPU schools to be rehabilitated Location EPU School Dormitories Staff houses Maputo Josina Machel Not envisaged Not envisaged Maputo Francisco Manyanga Rehabilitation of I dorm. Not envisaged Xai-Xai Xai-Xai New dorm 200 students 07 2-bdr units Beira Samora Machel New dorm. 300 students 10 2-bdr units Quelimane 25 de Setembro New dorm. 200 students 10 2-bdr units Nampula 1