Document of The World Bank FOR OFFCLAL USE ONLY Rqot No. 13146 PROJECT COMPLETION REPORT CHINA PROVINCIAL UNIVERSITIES PROJECT (CREDIT 1671-CHA) JUNE 14, 1994 Human Resources Operations Division Country Department II (China and Mongolia) East Asia and Pacific Regional Office 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 Banko authorization. CURRENCY EQUIVALENTS Currency Unit = Yuan (Y) Exchange Rates During Project Years (Y/US$) Yearly Avg. End of Year 1984 (Project Appraisal) 2.0615 2.8027 1985 (Project Approved) 2.9513 3.2095 1986 3.4626 3.7314 1987 3.7314 3.7314 1988 3.7314 3.7314 1989 3.7314 3.7314 1990 4.8596 5.2352 1991 5.3603 5.4478 1992 (Project Closed) 5.4874 5.7245 FISCAL YEAR January 1 - December 31 ACADEMIC YEAR September 1 - August 31 ABBREVIATIONS CRC Chinese Review Commission FILO Foreign Investment and Loan Office IAP International Advisory Panel MOF Ministry of Finance PEdC Provincial Education Commission PUP Provincial University Project SEdC State Education Commission SPC State Planning Commission FOR OFFICLAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.SA Office of Dlr.ctor4eneral Operations Eveluon June 14, 1994 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on China Provincial Universities Project (Credit 1671-CHA! Attached is the Project Completion Report on China-Provincial Universities Project (Credit 1671-CHA) prepared by the East Asia and Pacific Regional Office; it gives a satisfactory assessment of the project experience. Part II was prepared by the Borrower. It confirms the information given in Parts I and m and notes with regret the disruptive influence of staff turnover following the Bank's 1987 reorganization. This project assisted in the development of 60 provincial universities through civil works, equipment and staff development with the aim of expanding enroll- ments, improve the education process and strengthen managemenL It also provided planning assistance for the university subsector at large. Borrower compliance with covenants was good. After a one-year extension, the Credit was fully disbursed. The expansion of the overseas fellowship program to twice its targeted size is noteworthy. Project outcomes are rated as satisfactory, and institutional achievements as substantial. Project sustainability is likely, assuming that the devolution of fiscal respon- sibilities from the national to provincial and local levels succeeds. No audit is planned. Attachment This document has a restricted disibution and may be usd by recipients only In the performance ot thei officil duties. Its contents may not otherwise be disclosed without World Bank authorization. FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT CHINA PROVINCIAL UNIVERSITIES PROJECT (Credit 1671-CHA) TABLE OF CONTENTS Page Preface . . . . . . . . . . . . . . . . . . . . . . . Evaluation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . ii PART I. PROJECT REVIEW FROM BANK'S PERSPECTIVE . . . . . . . . . . . 1 A. Project Identity . . . . . . . . . . . . . . . . . . . . . . . . . 1 B. Project Background . . . . . . . . . . . . . . . . . . . . . . . . 1 C. Project Objectives and Description . . . . . . . . . . . . . . . . 2 D. Project Design and Organization . . . . . . . . . . . . . . . . . . 4 E. Project Implementation . . . . . . . . . . . . . . . . . . . . . . 5 F. Project Results . . . . . . . . . . . . . . . . . . . . . . . . . . 7 G. Factors Contributing to Project Success . . . . . . . . . . . . . . 8 H. Project Sustainability . . . . . . . . . . . . . . . . . . . . . . 9 I. Bank Performance . . . . . . . . . . . . . . . . . . . . . . . . . 10 J. Borrower Performance . . . . . . . . . . . . . . . . . . . . . . . 10 K. Consulting Services: the IAP and CRC . . . . . . . . . . . . . . . 11 L. Project Documentation and Data . . . . . . . . . . . . . . . . . . 12 M. Lessons Learned . . . . . . . . . . . . . . . . . . . . . . . . . 12 PART II. PROJECT REVIEW FROM BORROWER'S PERSPECTIVE . . . . . . . . . 14 A. Comments on the Analysis in Part I . . . . . . . . . . . . . . . . 14 B. Adequacy and Accuracy of Factual Information in Part III . . . . . 14 C. Evaluation of Bank's Performance . . . . . . . . . . . . . . . . . 17 D. Evaluation of Borrower's Own Performance . . . . . . . . . . . . . 17 PART III. STATISTICAL INFORMATION TABLE 1. Related Bank/IDA Loans and/or Credits . . . . . . . . . . . . 18 TABLE 2. Project Timetable . . . . . . . . . . . . . . . . . . . . . . 19 TABLE 3. Credit Disbursement . . . . . . . . . . . . . . . . . . . . . 20 TABLE 4. Implementation Indicators . . . . . . . . . . . . . . . . . . 21 TABLE 5. Project Cost . . . . . . . . . . . . . . . . . . . . . . . . 22 TABLE 6. Project Financing . . . . . . . . . . . . . . . . . . . . . . 23 TABLE 7. Status of Covenants for the Provincial Universities Project . 24 TABLE 8. Project Studies . . . . . . . . . . . . . . . . . . . . . . . 25 TABLE 9. Staff Input . . . . . . . . . . . . . . . . . . . . . . . . . 25 TABLE 10. IDA Missions . . . . . . . . . . . . . . . . . . . . . . . . 26 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. | -i - PROJECT COMPLETION REPORT CHINA PROVINCIAL UNIVERSITIES PROJECT (Credit 1671-CHA) Preface 1. This is the Project Completion Report (PCR) for the Provincial University Project in China (Credit 1671-CHA). The total project cost was US$255.0 million, with an IDA credit of US$150.0 million. The Credit was approved on July 1, 1986 and closed on December 31, 1992 after it had been extended for an additional year to complete equipment procurement. The last disbursement was made on December 23, 1992 and the total disbursements were 100- of the credit amount. 2. The PCR was prepared by EA2HR (Preface, Evaluation Summary, and Parts I and III) except for Part II which was prepared by the Borrower, represented by the State Education Commission. 3. Initial work on the PCR started in early 1992 by obtaining qualitative and quantitative information from the Borrower during the Effective Teaching Services Project preparation, pre-appraisal and appraisal missions. The PCR preparation is based, inter alia, on the Staff Appraisal Report, Credit Document, IDA supervision reports, the Borrower's progress and audit reports, the International Advisory Panel and the Chinese Review Committee evaluation reports, correspondence between IDA and the Borrower, and internal Bank memoranda. - iii - PROJECT COMPLETION REPORT CHINA PROVINCIAL UNIVERSITIES PROJECT (Credit 1671-CHA) Evaluation Summary Introduction 1. The Bank's education lending strategy at time of the project appraisal consisted of three lines of action: (a) develop technical and vocational education to increase the supply of technicians and skilled workers; (b) strengthen the education of teachers and administrators and improve the quality of teaching materials and management in basic education; and (c) expand higher education and improve its quality and management to provide more high level manpower. At the same time, growing shortages of qualified and skilled manpower, especially in science and engineering, promoted a strategy of strengthening higher education. These shortages resulted mainly from the disruption of post-secondary education during the Cultural Revolution (1967-1976). The education reform policies adapted by the Chinese Government had accentuated these shortages and increased the need for quality and management improvements. The project therefore included support programs for provincial universities to expand higher education enrollment, curricula development, and staff and management development. It also assisted the State Education Commission (SEdC) and the provincial higher education commissions to strengthen their planning and management capacities and improve efficiency in the higher education subsector. Project Obiectives and Content 2. The principal objectives of the project were to provide: (a) direct assistance to 60 provincial universities in 28 provinces; and (b) planning assistance for the higher education subsector. Towards the first objective, the project provided civil works, equipment and staff development to expand enrollment, improve educational programs and strengthen university management. The project universities were selected on the basis of provincial manpower priorities and numbers of national and regional universities. The selected universities were leading institutions in the provinces and through participation in the project are becoming models for other provincial universities. 3. Under its second objective, the project provided technical assistance to the SEdC and provincial higher education commissions to strengthen their planning and management capabilities, and to improve efficiency in the higher education subsector. Two planning activities were funded to be carried out by SEdC and the provincial education commissions: (a) preparation of provincial higher education master plans to assist each province in considering its future education needs in light of the national - iv - objectives; and (b) preparation of a provincial teacher education plan to assess the national and provincial requirements on the number and type of teachers. Implementation Experience 4. Project implementation period was without serious problems. Equipment procurement started and continued ahead of the SAR projections. During the early years of implementation, the IDA supervision team was concerned that some universities would opt for overly sophisticated equipment and urged the universities to put more emphasis on equipment used by undergraduate programs in curricula development and on improved teaching methodologies. The team also urged SEdC and the provincial universities to prepare an annual budget for equipment maintenance and provide foreign exchange to purchase spare parts not available locally. 5. Civil works were implemented during the early years of the project and covered construction of new buildings and remodeling of others in all project universities. Books procurement fell behind the implementation pace of the other components as the libraries' orders and requests slowed down because: (a) the universities did not have adequate catalogs or book reviews from which to select the books; and (b) in some cases, the requests were denied by the State Book Acquisition Fund Department at Beijing University. 6. The scale of fellowship program implementation was consistently ahead of projections. The number of fellows sent overseas at the end of the project period reached almost double the target. That was mainly because of cost savings due to changes in the exchange rate and to sending visiting scholars rather than degree seekers. In addition, there was a substantial number of local and foreign expert visits to the project universities. An International Advisory Panel (IAP) and Chinese Review Commission (CRC) established under the project fulfilled their technical assistance role extremely well, particularly in selecting appropriate foreign experts and in conducting workshops and seminars in the needed subjects. Results 7. The major project objectives of expanding higher education enrollment, improving the quality of teaching methods, and improving management and staff development at the national and provincial levels have been fulfilled. Implementation indicators show that the project met most of its quantitative targets and, in many instances, surpassed them. The quality of instruction has improved through better teaching methods and the provision of equipment for faculty and students. The scope of instruction offered has broadened through development of many study fields and courses in sciences and engineering as well as the social sciences. Faculty and staff development has been achieved successfully due to the technical assistance program of intensive and wide-spread workshops, seminars and meetings by local and foreign specialists and due to the extensive number of overseas fellowships. Both at the national and provincial levels new concepts and methods of - v - developing education master planning have been introduced and have been used to prepare some current provincial education master plans. Sustainablilitv 8. The project was designed and implemented during the take off stage of the reforms in China. The pressing needs of the higher education subsector were addressed appropriately and at the right time by the project objectives. The project impact was substantial on the provincial universities by increasing the small proportion of high level manpower and by improving the poor quality of teaching materials and equipment that were pervasive characteristics of higher education. However, a key question in the future development of the provincial universities is to what extent national policies and available resources can be used effectively to support and guide development of these institutions, especially if the burden of financing is increasingly passed on to localities. The intensive economic reforms in the country are expected to accelerate the demand for appropriately trained medium and high level manpower and put pressure on higher education institutions to increase their resources, or face a trade off between their graduates' quality and quantity. The problem could become serious when the financial burden continues to be passed to the universities and more foreign currency is needed to buy spare parts and other accessories for equipment maintenance. 9. The extensive technical assistance rendered by the project will have a long range impact on guiding higher education development. However, staff and management development must become a continuous process in order to cope with the accelerating reform policies in the country. Planning capacities need to be further improved and planning exercises carried out on a national and provincial level. Lessons Learned 10. The main lessons learned from the generally positive project experiences in design, preparation, implementation, and evaluation are summarized below. (a) As was done under the project, it is important to identify and address the individual project institutions' needs and priorities within overall sector policies. (b) Project objectives, as under this project, should be clear and reasonable, and preparation should include detailed guidelines for component implementation as well a comprehensive monitoring and supervision system for implementation. (c) Open channels and continuous communication between Bank staff and the borrower's officials during project design and preparation lead to effective cooperation and coordination in project implementation. (d) Project institutions in provinces should be selected from the leading institutions which usually have more high level and - vi - qualified staff. This comparative advantage increases the potential to solve problems efficiently, and to accelerate implementation processes, thereby increasing the potential for project sustainability. (e) The role of the IAP and CRC in preparing, implementing and evaluating education projects in China has been pivotal. This has been recognized by both the Bank and the Chinese Government. In this project, IAP and CRC members were high level, experienced and specialized experts, most being retired professors who dedicated much of their time to project operations, and this has contributed immensely to successful implementation of the project. (f) Lack of funds available to allow uninterrupted operation of equipment is still a concern. Present financial budgeting practices in the educational institutions do not make proper allocations for equipment operation and maintenance, a point which should be addressed in future projects. (g) Continuing efforts must be made to strengthen the SEdC and provincial commission's capacity to carry out education master planning and teaching supply and demand activities at both the national and provincial levels. (h) Rigorous scrutiny by outside expert panels of equipment requests before the equipment lists reach the procurement stage is beneficial in assuring that institutions purchase instrumentation appropriate and adequate for their teaching and/or research activities. PROJECT COMPLETION REPORT CHINA PROVINCIAL UNIVERSITIES PROJECT (Credit 1671-CHA) PART I. PROJECT REVIEW FROM BANK'S PERSPECTIVE A. Project Identitv Project Name: Provincial Universities Project Credit No.: 1671-CHA RVP Unit: East Asia and Pacific Region Country: China Sector: Education Subsector: Higher Education B. Prolect Background 1.1. Sector Development Objectives: Based on its sector work and its dialogue with the Chinese Government, the Bank at the time of appraisal adopted an education lending strategy which consisted of three lines of action: (a) develop technical and vocational education to increase the supply of technicians and skilled workers; (b) strengthen the education of teachers and administrators and improve the quality of teaching materials and management in basic education; and (c) expand higher education and improve its quality and management to provide more high level manpower. 1.2. At the same time, growing shortages of qualified and skilled manpower, especially in science and engineering, promoted a strategy of strengthening higher education. These shortages resulted mainly from the disruption of post-secondary education during the Cultural Revolution (1967- 1976). Only 1.4% of the key sectoral personnel in 1982 had university level or higher qualifications. These percentages are between 10% to 25% of the corresponding levels in a set of comparator countries. On the other hand, the education reform policies adapted by the Chinese Government had accentuated these shortages and increased the need for quality and management improvements. In higher education, Bank assistance was in line with the Government policies of expanding opportunities and access to higher education. Government objectives included expanding conventional universities, establishing a system of short-term vocational colleges, and expanding the television university system. 1.3. Policy Context: Within the objectives of expanding access to higher education and improving higher education quality, the Government had adapted three principal policies; (a) to expand enrollment especially in graduate programs; (b) to improve teaching and research programs including curricula reforms and teacher training; and (c) to improve the system's management. Projections showed that to increase the enrollment ratio from its 1985 level (5%) to 12.51 by 2000, enrollment in higher education institutions would need to triple. The Government and the universities also recognized that higher education was suffering from many management deficiencies. - 2 - For example, the student-staff ratio of less than 4:1 was almost half the level recommended by foreign experts. The objectives agreed under the previous IDA-supported First and Second University Development Projects (Ln. 2021/ Cr. 1167 and Cr.1551-CHA)were to be pursued under this project in order to improve this ratio. The need for financial management reforms is also recognized by the Government. Depreciation allowances and performance auditing were being proposed. In addition, in 1985 the Government announced a wide-ranging package of policy changes for China's education system. A newly created State Education Commission (SEdC) replaced the Ministry of Education. Increased operating autonomy at all education levels was needed to reform the centralized system; therefore more autonomy was to be given to provincial education commissions and universities. This in turn required the strengthening of these institutions to carry out their new responsibilities. 1.4. Linkages Between the Project and Policy Obiectives: The project included support programs in line with the Bank's sector strategy and Government reform policies of expanding higher education enrollment, curricula development, and staff and management development. The project, therefore provided direct assistance to provincial universities to expand enrollment, improve educational programs and strengthen university management. In addition, the project sought to render assistance to SEdC and the provincial higher education commissions to strengthen their planning and management capacities and improve efficiency in the higher education subsector. The project addressed the conventional higher education needs in provincial institutions and included assistance to universities in poor provinces and provinces previously not assisted by the Bank Group. It also contributed directly to improving the quality and quantity of educated manpower in each province since the output of these provincial universities will be employed in the respective provinces. C. Prolect Oblectives and Description 1.5. Project Objectives and Scope: The project objectives were to provide: (a) direct assistance to 60 provincial universities in 28 provinces; and (b) planning assistance for the higher education subsector. Under the first objective the project provided civil works, equipment and staff development to expand enrollment, improve educational programs and strengthen university management. The project universities were selected jointly by SEdC and the provincial governments and included 28 normal, 18 comprehensive, 7 technical, 5 medical, and 2 agricultural institutions. The universities were selected on the basis of provincial manpower priorities and numbers of national and regional universities. The selected universities were leading institutions in the provinces and through participation in the project were expected to become models for other provincial universities. 1.6. Under its second objective, the project provided technical assistance to the SEdC and provincial higher education commissions to strengthen their planning and management capabilities, and to improve efficiency in the higher education subsector. The technical assistance includes two planning activities to be carried out by SEdC and the provincial education commissions during the project period: (a) preparation of provincial higher education master plans to assist each province in considering its future education needs in light of the national objectives; and (b) a - 3 - provincial teacher education plan to assess national and provincial requirements for numbers and types of teachers. Through the experience gained in carrying out the two planning activities, the central and provincial administrations were expected to strengthen their capabilities to design and implement similar comprehensive plans. In addition, the results would serve as a basis for planning quantitative and qualitative improvements, taking into account manpower requirements and financial and staffing implications. 1.7. Proiect Components: The project was designed to include two components in line with the objectives mentioned above (para. 1.5). Assistance to the 60 provincial universities made up the major part of the project (US$372 million equivalent excluding contingencies) and technical assistance to SEdC and the provincial education commissions was the other component (US$5 million excluding contingencies). The project was to provide funds for civil works, equipment, technical assistance, and specialist services, as follows: (a) Civil Works: An estimated total area of 1.4 million sq m at 60 sites (US$133 million) was to be constructed with project funds and completed by the end of second project year (1987). The additional space was to accommodate a larger student body through provision of more classrooms and laboratories. Furthermore, it would enable new equipment for teaching and administrative use to be installed and maintained properly in space of adequate size and environmental control, thus also contributing to program improvement and management reform. (b) Eauioment provided under the project (US$195 million) was to include mainly laboratory equipment, library equipment, books, audio-visual equipment, and computers. The equipment was to contribute to improved quality of instruction through enabling more experiments to be performed, and expansion and upgrading of libraries. The equipment was to accommodate expanded enrollment without compromising the quality of education and also to be used for better management of university affairs. (c) Technical Assistance was to be provided through fellowships, study tours and specialist services programs (US$35 million). Overseas and local fellowships were to support primarily master and doctoral studies and were to be financed from domestic sources and credit proceeds. A target was for the 638 departments with 28,000 faculty to each have six graduate degree-holders or scholarships with equivalent educational levels at the end of the project, significantly improving the quality of academic staff. A second form of staff development was to consist of study tours and seminars led by specialists on selected managerial and curricula topics. (d) Specialist Services and International Advisory Panel: The project included technical assistance services provided by the International Advisory Panel (IAP). The IAP was to provide expertise in general higher education management, higher education planning and teacher education planning. The IAP, in collaboration with the Chinese Review Commission (CRC) consisting of local higher education experts, was-to advise on the best strategies for project implementation. It was expected to identify the locations abroad from which the most suitable resources could be drawn for the specialist services and fellowship programs and assist SEdC in designing and executing the two planning activities. Specialist services were to be provided for 240 man-months (US$4 million) through visits by high level specialists to individual institutions and participation in national or regional seminars introducing techniques and procedures for curricula and management reforms. D. Prolect Design and Oraanization 1.8. The project design was based on intensive studies and dialogue between the Bank and the Chinese Government (SEdC, State Planning Commission (SPC), and Ministry of Finance (MOF)) during 1984-86. Studies included the Bank's extensive sector study and SEdC's joint feasibility and case studies. Members of the IAP and CRC contributed since the project's early preparation stage by providing consultation and advice based on their experience with the Bank's previous education development projects. 1.9. The SEdC had thoroughly studied the project details and conducted intensive preparation. During the last stage of preparation, the SEdC requested to delay negotiations for six months to: (a) carry out direct consultations with each proposed university; (b) allow additional time for Chinese expert review of equipment and staff development plans; (c) meet new requirements of SPC for detailed review prior to negotiations; and (d) incorporate higher education reform measures, which were to be announced in the spring of 1985, and which were to provide greater autonomy to individual universities. 1.10. Direct contacts with individual universities by the Bank team through SEdC and the provincial governments assisted in identifying pressing needs and assessing required support. This also enabled the team to understand and consider the regional and provincial institutional variations and differences. This led to a fairly accurate assessment of the institutions' requirements for equipment, civil works, and technical assistance. 1.11. The project covered 60 universities and extended to almost all of the provinces, autonomous regions and municipalities (28) in China. The universities were selected by SEdC and the provinciall1 governments on the basis of clearly defined criteria. These criteria were discussed with SEdC, provincial governments, and representatives of some of the universities. The project universities were chosen to cover a wide range of specialties, i.e., normal (28), comprehensive (18), technical (7), medical (5), and agricultural (2). The provincial governments played an active role in the selection process. They chose the universities on the basis of manpower priorities and the numbers of national and regional universities located in their provinces. Furthermore, all participating provinces had to be represented by a regional The terms "provinces" and "provincial" are used in this report to refer to provinces, autonomous regions, and the municipalities of Beijing, Tianjin and Shanghai. or provincial normal university, and the chosen university had to be a leading institution in the province and, through participation in the project, to become a model for other provincial universities. 1.12. Technical assistance (about 10% of the project cost) was provided under the project through fellowships, study tours and seminars and specialist services. The project included a substantial number of overseas and local fellowships (8,700 fellowship-years) to support graduate programs in the universities. Detailed guidelines for the fellowship program included in the project helped the staff selection process and the overall implementation of this component. The number of staff that went on overseas fellowships during the project period (1,233) was almost double the targeted number because of exchange rate savings. E. Prolect Implementation 1.13. During the six-year project implementation period (1986-91), the Bank's supervision missions consistently reported smooth and successful implementation without serious problems. In general, disbursement profiles of previous education projects in China indicate a faster pace than both the regional average of all projects and the Bank Group average of all education projects. 1.14. Equipment procurement started and continued ahead of the SAR projections. The IDA team was concerned during the second year of implementation that some universities would opt for too sophisticated equipment in the second phase of procurement and requested a policy position from the IAP and CRC which urged the universities to put more emphasis on equipment used by undergraduate programs in curricula development and on improved teaching methodologies. The supervision team in the second year (1987) was pleased to see that equipment was being used by selected faculty for research and by students, and commended the initiative of some universities to place equipment used by multiple departments in a central building facilitating easy access by those from different departments. 1.15. During the third year of implementation (1988), the IDA team emphasized establishment of an annual budget for equipment maintenance in both local and foreign currencies, as required by the Credit Agreement. In the fourth year of implementation, the team reviewed the program worked out by the SEdC and the provincial universities to obtain spare parts and training for the project equipment and urged foreign exchange provision to the universities to purchase spare parts not available locally. 1.16. Spare parts for a few pieces of equipment were supplied with different specifications than required, creating problems in their utilization. The SEdC contacted the manufacturer to bring the equipment up to acceptance standards or to repair the equipment still under warranty. During the last supervision mission (late 1991), the Bank team's attention was drawn to certain equipment not fully operational even after visits from the manufacturers' technicians. The institutions, although attempting to fully utilize their equipment, still need assistance in dealing with the manufacturers. - 6 - 1.17. The Bank supervision mission in late 1990 identified two areas which had been subject to criticism at a Joint Policy Meeting of IAP, CRC, and SEdC: (a) purchasing equipment too sophisticated for widespread teaching purposes, particularly for undergraduate programs; and (b) not giving enough emphasis to improvement of teaching methodologies through the fellowship and visiting scholar programs. Previous Bank-supported higher education projects had identified the problem of purchasing overly sophisticated equipment and therefore before the start of the equipment procurement in this project, the Bank recruited a team of experts to examine the items in the equipment list proposed for procurement. The team rejected a number of equipment items as being too sophisticated for teaching purposes and offered alternative recommendations, many but not all of which were accepted. 1.18. The project was extended for an additional year (December 31, 1992) to complete equipment procurement. Appreciation in the dollar value of the SDR during the implementation of the project allowed for increases in the budget allocations in all project categories. Plans were prepared to complete the final phase of equipment purchases by the end of the sixth year of the project. These purchases included computer equipment and special accessories and spare parts for about US$15 million. 1.19. Civil works were implemented during the early years of the project and covered construction of new buildings and remodeling of existing buildings in all project universities. The new and remodeled space was used to accommodate the expected expansion in enrollment and equipment. In anticipation of the project, many provinces provided special budgets to the universities for civil works. The civil works were financed primarily with local currency, implemented by the universities and supervised by the provincial education commissions and SEdC. 1.20. Books procurement fell behind the implementation pace of the other components during the first two years of project implementation. The libraries, orders and requests slowed down for two reasons: (a) the universities did not have adequate catalogs or book reviews from which to select the books; and (b) in some cases, the requests were denied by the State Book Acquisition Fund Department at Beijing University. The last Bank supervision mission in late 1991 found out that all funds provided for books has not been spent on books. The mission requested SEdC to urge the universities to give further attention to the procurement of books. 1.21. Technical Assistance: In the early years of implementation, SEdC shifted the emphasis of the overseas fellowship program from long-term degree to short-term non-degree studies. This policy change was an effort to strengthen the teaching and research capabilities of mid-career academics who had been inadequately trained in China due to the Cultural Revolution and to minimize the problem of brain drain associated worldwide with long term, advanced degree focused study abroad. The Bank team was concerned that a short-term non-degree fellowship, unless carefully planned and monitored, would easily slip into an overseas visit with little serious studies. The team urged SEdC to take measures to maintain the effectiveness of the overseas fellowship program. The SEdC followed rigorous selection processes of the fellows, and with the assistance of IAP and CRC managed to identify appropriate programs and countries for them to study in. - 7 - 1.22. The overall fellowship program implementation has been consistently ahead of projections. The number of fellows sent overseas at the end of the project period (1,233 staff) reached almost double the target (700 staff). That was mainly because of cost savings due to the changes in the exchange rate and to sending short term visiting scholars rather than loan term degree seekers. 1.23. During the project period there have been 230 expert visits to the project universities, including 192 foreign specialists, as part of the technical assistance component. In addition, there have been 12 workshops and seminars held by experts in relevant subjects. The IAP and CRC have played a vital role in selecting the appropriate foreign experts and in conducting workshops and seminars in the needed subjects. In addition, the IAP consultants conducted a thorough review based on two visits to the project institutions and produced eight reports. The Bank has urged SEdC to use the IAP/CRC reports on the project evaluation visits and to make every effort to support the findings and disseminate the information to provincial education commissions and all project institutions. 1.24. The technical assistance component included two planning activities: (a) preparation of a higher education master plan to be developed by both the SEdC and the Provincial Education Commissions (PEdCs); and (b) analysis of teacher supply and demand to be carried out on a provincial level by the PEdCs. It was later decided that the teacher study would be confined to secondary teachers and incorporated into the higher education master plan. During project implementation the scale and scope of the planning activities were both reduced to two national level training seminars and a study tour. The SEdC reports that the training seminars have been helpful in exposing planners at the provincial level of new concepts and methods of educational master planning and that many of the new ideas presented in the seminars have been utilized in the preparation of provincial level Eighth Five Year educational plans. F. Prolect Results 1.25. The major objectives of the project - expanding higher education enrollment, improving the quality of teaching methods, and improving management and staff development at the national and provincial levels - have been fulfilled. Implementation Indicators show that the project met most of its targets and, in many instances, surpassed them. For example, undergraduate enrollment has grown significantly during the project period to a level that surpassed the projected target by 5%. The student-teacher ratio and library opening hours have met the target and utilization of classrooms has passed the planned levels. Nevertheless, enrollment in graduate programs, while increasing four times, has not yet reached the target level. 1.26. The quality of instruction has improved through better teaching methods and increased amounts and relevance of equipment used by the faculty and students. The scope of instruction offered has broadened through development of many study fields and courses in sciences and engineering as well as the social sciences. Faculty and staff development has been achieved successfully due to the technical assistance program of intensive and wide- spread workshops, seminars and meetings by local and foreign specialists and due to the extensive number of overseas fellowships. G. Factors Contributing to Proiect Success 1.27. Factors contributing to the project's smooth and successful implementation are summarized below. (a) The project addressed pressing needs of the universities in equipment and staff development and was sensitive to the different requirements of individual provinces and institutions. Equipment funds allocated to the universities were based on their individual requirements and their capacities to use the equipment. Out-dated equipment was replaced and badly needed equipment was provided. Needed technical assistance was efficiently delivered through overseas and local fellowships, study tours and seminars, and foreign expert visits. Meanwhile, the institutions' requirements and priorities were addressed. (b) Project design was based on clear and reasonable objectives. It was a result of extensive studies and the experiences of previous Bank education projects in China. Project design also included clear and detailed guidelines for component implementation and monitoring such as equipment procurement and technical assistance. (c) An effective monitoring and supervision system for implementation was established. This included: (i) six annual reviews (during 1986-1991) and the mid-term review (in 1989) carried out by the inspection review teams in SEdC; (ii) a final review carried out by SEdC with experts from the universities; and (iii) the Bank's eight supervision missions. The purpose of the intensive follow up was to monitor overall implementation progress and to guide and press the universities to adhere to the implementation schedule. (d) There was continuous communication, cooperation and coordination between SEdC, PEdCs, universities, and the Bank during implementation. (e) An effective mechanism for project management functioned at three different levels: Ci) on a central level where SEdC supervised the overall implementation; (ii) at the provincial level where the provincial education commissions were responsible for equipment purchase, distribution, and utilization; and (iii) at the institutional level where the universities supervised and regulated the laboratory and library equipment. (f) Most of the selected institutions were leading universities at the provincial level with good academic standards and high level teaching and administrative staff with experience in foreign aid utilization. This comparative advantage accelerated equipment procurement and overseas fellowships and increased the benefits from the foreign experts visits. 9- (g) The IAP/CRC played an important role during project preparation and implementation. The group participated effectively during the preparation process by providing advice and consultations in joint workshops to the SEdC, PEdCs, and universities. They also monitored, supervised, and evaluated progress of implementation through the IAP experts' visits to China and the policy meetings they held with the concerned parties. The IAP worked in harmony with the CRC members and communicated well with the SEdC and PEdC staff and with university professors. H. Project Sustainability 1.28. The project was designed and implemented during the take off stage of the reforms in China. The pressing needs of the higher education subsector were addressed appropriately and at the right time by the project objectives. The small proportion of high level manpower and the poor quality of teaching materials and equipment were pervasive characteristics of higher education. With China's efforts to modernize, there will be an increasing demand for the kind of post-secondary education that the project institutions now provide. 1.29. The project was designed in a way such that the beneficial effects of the two previous Bank Group higher education projects would be extended to the provincial segment of conventional higher education, which was 0G of the total enrollment and comprised two-thirds of the total number of institutions. The complementary services provided by the project increased its sustainability potential as it provided a wider range of needed services expected to grow with overall country development. 1.30. A key question in the future development of the provincial universities is to what extent national policies and available resources can be used effectively to support and guide development of these institutions, especially if the burden of financing is increasingly passed on to localities. The intensive economic reforms in the country are expected to accelerate the demand for appropriately trained medium and high level manpower and put pressure on higher education institutions to increase their resources, or face a trade off between their graduates' quality and quantity. The problem could become serious when the financial burden is passed to the universities and more foreign currency is needed to buy spare parts and other accessories for equipment maintenance. 1.31. The extensive technical assistance rendered by the project will have a long range impact on guiding higher education development. However, staff and management development must become a continuous process in order to cope with the accelerating reform policies in the country. Planning capacities need to be further improved and planning exercises carried out on a national and provincial level. Higher education plans need to set enrollment targets, locate areas where institutions are most needed, identify priority fields of study in relation to the labor market's dynamic needs, more clearly define institutional roles to avoid duplication, and facilitate more rational policies for equipment allocation, utilization, maintenance and replacement. In addition, planning for teacher supply and its distribution needs to be carried out on a provincial and national level. Teacher education plans will assist the provinces to address the nation's unprecedented problems of - 10 - matching teacher supply and demand in a period of education reforms and demographic change. I. Bank Performance 1.32. The previous Bank Group projects in education had established good communication channels with the Chinese Government officials. This has helped the Bank staff working on this project to continue establishing an open and understanding relationship with their Chinese counterparts in SEdC, provincial education commissions and institutions, and with IAP/CRC. During supervision missions, Bank staff frequently visited the institutions and attended workshops. They were also in touch with the IAP and CRC members and attended most of their joint policy meetings. 1.33. The Bank mobilized a team of qualified experts to work with SEdC and the provincial education commissions during project preparation. They established the IAP and CRC, agreed on their terms of reference, and selected highly qualified and available professors and specialists. The Bank and the Chinese team designed and prepared the project to address what were perceived as urgent needs and priorities in the expansion and development of higher education. The Bank team ensured that there was enough assistance to the Chinese counterparts during the period between Board approval and credit effectiveness to help arrange a structure for implementation and commence procurement. 1.34. The Bank staff fully cooperated with the IAP and the CRC. Any difficulties with technical assistance, i.e. foreign experts, workshops and overseas fellowships were discussed at semi-annual meetings of the IAP, CRC and the Bank. J. Borrower Performance 1.35. In line with a good record in designing, preparing, and implementing the Bank Group-assisted education projects, the Chinese team has continued to demonstrate strengths in performance during this project. Furthermore, Government reform policies, such as decentralization of the budget, enrollment distribution, and faculty assignment, helped project institutions to adopt more flexible approaches to implementation of project components. 1.36. The staff of the Foreign Investment and Loan Office (FILO), SEdC, promptly and carefully developed the project proposals and collected the necessary data and information for project preparation. During implementation FILO staff coordinated the provincial education commissions and project institutions in procurement and installation of equipment, participation in technical assistance programs, and preparation of annual progress and audit reports sent to the Bank. 1.37. The SEdC staff drew from their experience in equipment procurement under previous Bank projects and passed it on to the provinces and project institutions as guidelines for the purchase of imported equipment. During implementation, most project institutions finished the civil works in time to install the imported and locally procured equipment. They established central facilities including computing and testing centers, and specialized and basic - 11 - laboratories to accommodate the procured equipment and make it widely available for use. 1.38. On the other hand, the borrower weakness was in implementing the two planning exercises, i.e., the provincial master plan to be carried out by the SEdC and provincial authorities, and the teacher supply and demand analysis to be carried out by the provincial education commissions on a provincial level. The planning capacities in the center and more so in the provinces, needed special training and support to carry out these exercises and identify their objectives and roles within the current economic and social reforms. 1.39. With regard to the technical assistance program, the problem was mainly in the fellowship distribution. The fellowship share of faculty members was increased substantially and the share of graduate students decreased in the later years of the project. K. Consulting Services: The IAP and CRC 1.40. The IAP and CRC were formed by SEdC and IDA during the preparation stage (November 1985) of the project and consisted of prominent professors and specialists. The IAP and CRC played an active and positive role in project design, preparation, implementation, and evaluation. Most of the members were retired professors and were fully dedicated to the project operations. 1.41. Members of the IAP visited 57 of the 60 project universities to discuss project implementation, to provide advice on a broad range of issues, and to monitor progress. In addition, they met frequently with staff from provincial education commissions and project universities to discuss implementation of the project components. 1.42. The IAP and CRC held 12 policy meetings during the six years of project implementation attended by Bank staff and the SEdC and other concerned Chinese officials. These meetings emphasized equipment procurement, installation, and testing and reviewed seminars and workshops proposals. At the middle of the implementation period, they discussed equipment utilization and maintenance, and by the end of the period the focus was on project evaluation. The last meeting resulted in a detailed evaluation of project components and included critical recommendations for project sustainability. Some of the joint IAP/CRC findings are reflected in this Project Completion Report. 1.43. The IAP played a lead role in planning and organizing 13 seminars, workshops and overseas study tours involving participants from project universities and provincial education commissions. The IAP offered many practical recommendations to SEdC, provincial education commissions, and project universities. Furthermore, it provided important support to SEdC in the identification of experts from abroad for the workshops and seminars and helped in selecting local officials for overseas fellowships. - 12 - L. Prolect Documentation and Data 1.44. The Staff Appraisal Report and Other Working Documents. The SAR was prepared after a relatively long preparation period and extensive sector work by the Bank Group and feasibility studies carried out by SEdC. It proved to be a useful reference during project implementation. The report was comprehensive and clear in defining the project objectives, scope, and components. Cost estimates of the project components were relatively accurate. At the end of the project period, allocations for equipment procurement had to be increased because of changes in the foreign exchange rate during the project period. The SAR defined clearly the mechanism of project monitoring, evaluation and follow up, and included guidelines for equipment and books selection and procurement. Detailed plans for selecting local and foreign fellowships, study tours and specialist services were also included. The SAR identified target indicators for monitoring and evaluation of project institutions. These targets were frequently used to assess overall project progress. 1.45. Evaluation Data. The extensive evaluation activities of the IAP and CRC were based on several sources of information. One of the important sources was the comprehensive self-evaluation questionnaires prepared by FILO and completed by every university in early 1991. The IAP and CRC selected 8 representative universities and sent them questionnaires to be filled in by their departments within each university to collect information on enrollment level, faculty qualification and distribution, teaching and research programs, and equipment utilization. When the results were tabulated, the IAP and CRC members visited these universities and collected more qualitative information. Furthermore, observations and recommendations of foreign specialists and seminar participants were included in the evaluation process. A comprehensive evaluation report was prepared and its contents were discussed in a joint policy meeting in spring 1991. A follow-up meeting was held in spring of 1992 to review the recommendations and finalize the report. M. Lessons Learned 1.46. There are many lessons learned from the generally positive project experiences in design, preparation, implementation, and evaluation. The main lessons are summarized below. (a) During project design and preparation, it is important to identify and address the individual project institutions' needs and priorities within the overall sector policies. (b) Project objectives should be clear and reasonable, and preparation should include detailed guidelines for component implementation as well as an elaborate and effective monitoring and supervision system for implementation. (c) Open channels and continuous communication between Bank staff and the borrower's officials during project design and preparation lead to an effective cooperation and coordination in project implementation. - 13 - (d) Project institutions in provinces should be selected from the leading institutions which usually have more high level and qualified staff. This comparative advantage increases the potential to solve problems efficiently, and to accelerate implementation processes, thereby increasing the potential for project sustainability. (e) The role of the IAP and CRC in preparing, implementing and evaluating education projects in China has been pivotal. This has been recognized by both the Bank and the Chinese Government. In this project, the IAP and CRC were selected from high level, experienced and specialized persons and most being retired professors who managed to dedicate their full time to project operations, and this has contributed immensely to the successful implementation of the project. (f) Lack of funds available to allow uninterrupted operation of equipment is still a concern. Present financial budgeting in the educational institutions do not make proper allocations for equipment operation and maintenance, a point which should be addressed in future projects. (g) Continuing efforts must be made to strengthen the SEdC and provincial commission's capacity to carry out education master planning and teaching supply and demand activities at both the national and provincial levels. (h) Rigorous scrutiny by outside expert panels of equipment requests before the equipment lists reach the procurement stage is beneficial in assuring that institutions purchase instrumentation appropriate and adequate for their teaching and/or research missions. - 15 - PROJECT COMPLETION REPORT CHINA PROVINCIAL UNIVERSITIES PROJECT (Credit 1671-CHA) PART II: PROJECT REVIEW FROM BORROWERS PERSPECTIVE A. Coments on the Analysis in Part I 2.1. The Borrower recognizes that, on the whole, the brief descriptions of the project objectives, contents, implementation and outcomes contained in Part I of the PCR are clear and conform to reality. The Borrower also agrees in general with the views and recommendations of the IAP and CRC presented in their Evaluation Report of the project, which seem to have no essential distinction from those given in Part I. B. Ad.auacy and Accuracy of Factual Information in Part III 2.2. The Borrower confirms that the tables of statistical information given in Part III of the Project Completion Report (PCR) have been sufficient for illustrating the key factors relating to the evaluation and implementation of the project. Those data furnished by the Borrower's implementing agency, such as the local counterpart funds actually consumed, the total project costs realized and the implementation indicators finally achieved at the termination of the project, etc., had been cross-checked with the original tables carefully and repeatedly to ensure their accuracy. 2.3. Pro-ect Background: Early since the late 1970's, it had been unanimously recognized in China that science and technology are the key factors and education is the foundation of achievement of the national goal of economic development. "Education" here indicates the whole sector; basic education and higher education; vocational and technical education and adult education. Each subsector needs to be supported to fulfill its mission. The disruption of the Cultural Revolution, however, had especially severe consequences on higher education. Vast majority of the institutions of higher learning had been weakened in about ten years of the "Cultural Revolution". Therefore, when China resumed its legal seat and rights in the World Bank in 1980, the Chinese government decided to give the first priority for projects to higher education. While differing in detailed objectives and implementation, they had in common one overriding purpose: to assist Chinese higher education institutions to be able to meet the manpower requirement for national development by producing graduates of high quality. One of the four projects is the Chinese Provincial Universities Development Project. It has to be noted that the provincial education institutions play a vital role in Chinese higher education. They are more numerous than the national universities and they produce more than half of the University graduates in the country. Many of these institutions had a long history of development even though they are not as prestigious as many of the national universities. The Provincial University Development Project was selected and established with full rationale. - 16 - 2.4. Proiect Design: A tentative idea of assisting provincial universities with World Bank credit was actually formed when the Borrower began to dialogue with the Bank about an overall assistance plan to strengthen Chinese higher education. Since the proposal was more extensive than the World Bank could consider at the time, the Chinese government, working with the Bank, decided to stage the higher education programs over a prolonged period of time. Building on the experience of the first University Development project, the Chinese Ministry of Education, with support from the State Planning Commission and Finance Ministry, and the Bank initiated the planning of two further university projects, Second University Development Project and the present Provincial University Project. In broad terms, the objectives of the two later projects were similar to those of the first, namely, 1) expanding enrollments in the project universities; 2) improving the quality of education and research in these institutions; and 3) strengthening institutional management capabilities. The Provincial Universities Project initiated and included higher education master planning and teacher training programs at the provincial level. In its initial design stage, the project was to be restricted to normal universities, so as to benefit indirectly the basic education by increasing the quantity and quality of middle school teachers. Considering the demand of many provinces, the number of Project institutions was expanded to include, in addition to normal universities, a number of comprehensive, engineering, medical and agricultural universities and colleges, 60 institutions in all. The Project institutions were selected jointly by the MOE and the provinces or regions in which they are located. In general, they are the leading universities in the respective provinces. 2.5. Prolect Implementation: At the start of the Project, a number of appointments were assigned or designated to ensure its successful implementation. At each of the three levels namely the SEdC, the Provincial Education Commissions (PEdCs) and the Project Institutions, a vice-chairman or vice-president was appointed to take responsibility for the implementation of the Project with the aid of a special loan office. Except the SedC, however, all the participating institutions were new to World Bank projects. Most of them were lacking experience or even unqualified for project implementation. Nevertheless, overwhelming majority of the participants worked very actively and learned hard on the job, and gained impressive achievements at the Project completion. Another important factor related to the achievements is the assistance given to the Project implementation by adjustment in national policies particularly related to the decentralization and encouragement given to institutions to adopt more flexible approaches in the implementation of the Project. It would be also needed to acknowledge here the valuable assistance of the World Bank staff and the IAP and CRC to the Project design, implementation and evaluation. 2.6. Eauipment: The major part of the Project funds was used for the procurement of equipment. Based on the experiences gained from the three previous projects, the SEdC issued guidelines to the participating provinces and their Project guidelines for the purchase of imported equipment as follows: 1) equipment for teaching and basic training should be the first priority in procurement; 2) an appropriate quantity of spare parts and auxiliary items should be purchased with the main items; 3) there should be no purchases of equipment with a projected low utilization rate; 4) major items of equipment should be chosen to meet concrete teaching and research objectives. Their availability an use should be extended widely both across - 17 - campus to units outside the institution. These guidelines were reissued after the first bid with the advice from the CRC and IAP. Procurement of equipment with credit funds was conducted through 3 phases of international competitive bidding and ran smoothly. In the third round of bidding, the participating institutions were required to concentrate purchases mainly on spare and auxiliary parts and small items of teaching equipment. According to reports from project institutions and observations by visiting specialists, the majority of the equipment was delivered in good condition and is operating satisfactorily. To ensure the wider cross-disciplinary use and higher utilization rate of the major items of imported equipment, most of the larger institutions had established central facilities including computer centers, testing and analysis centers, and specialized labs. 2.7. Staff Development: The purpose of sending faculty abroad was mainly to strengthen the quality of faculty needed for the training of graduates. For this sake, the SEdC required for the selection of candidates as follows; 1) good character, dedication to work, good health and a sense of responsibility; 2) good basic disciplinary knowledge; 3) good record of teaching and research; 4) ability to analyze and solve problems independently; 5) at least five years teaching experience after graduating from a university or college; 6) proficiency in a foreign language sufficient to exchange idea on their own subject and able to pass a national foreign language test. In the process of implementation, a phenomenon did appear that fellowship for short-term studies exceeds that for long-term studies. The experience of the returned fellows, however, showed that the short-term fellowship program was beneficial to the fellows. 2.8. Specialist Service and CRC and IAP: According to the Credit Agreement of this project and based on the experiences of the preceding projects, a Chinese review Commission (CRC) and International Advisory Panel (IAP were established at the initial stage and maintained throughout the life of the project. The IAP was chaired by a distinguished professor from Canada and supported by a secretariat located at the Association of Universities and Colleges of Canada. In the six years of work, the IAP and the CRC visited 57 of the 60 project institutions and held joint meetings twice a year to monitor and discuss progress of the project implementation, and assisted to address a broad range of issues including placement of fellows in foreign universities, selection and coordination programs for specialists, and organization of overseas study tours and 14 seminars for furthering the realization of the objectives of the project. They do deserve high commendation and appreciation of the important and active roles they played in the project implementation. 2.9. Over 200 of subjec t specialists were selected under coordination of the IAP and the FILO of SEdC. They were required to undertake activities wider than usual for those invited through traditional approaches and had a role more akin to that of a consultant to departments and related units in the institutions. In most cases, the requirement was fulfilled under the condition of close cooperations and intercommunication between the specialists and the host institution. 2.10. Higher Education Master Planning: The provincial higher education master planning activities, although much smaller in scope, were an equally important component in the project. This component was to strengthen the capabilities of SEdC and particularly the PEdCs to formulate long-term plans for higher education development at the provincial level. The master planning - 18 - activities initiated two major seminars and a study tour. The first seminar was on the macro-economic management of higher education. Then a study tour went to visit American and Canadian universities and colleges. The final seminar was on the implementation and evaluation of the provincial master plans. The participating provinces incorporated the recommended policy and technical activities into their practical work for the provincial "eighth five-year plan" and "ten-year development program". This component has gained tangible results and was highly credited by the provinces. 2.11. Proiect Adiustment: According to the agreement reached between the World Bank and the Borrower, the closing date of the project was extended to December 31, 1992 in order to complete the necessary implementation operations. 2.12. Project Results: As shown in the brief description in Part I and the comparative table of implementation indicators in Part III of the report, the Project as a whole had won distinct success in its implementation. Taking into account the fact that the provincial institutions make up over two thirds of the Chinese higher education and almost all the 60 project institutions are key institutions in the provinces they are located, it is appropriate to highly evaluate the Project results and fully appraise the factors contributing to its success. C. Evaluation of Bank's Performance 2.13. In the early stage of the Project's life, Bank staff participating in preparation and appraisal were highly professional and qualified for their task. Moreover, having been involved in the work of the previous education projects, many of them had established close and efficient working relationship with the Chinese staff in the SEdC and were familiar with the working situation of the Chinese projects. In the later period, however, quite number of Bank staff were transferred to new positions because of reorganization of the Bank, and some were retired. This affected, to a certain extent, the understanding of each other and weakened familiarity with the Project. D. Evaluation of Borrower's Own Performance 2.14. As indicated in previous paragraph, it was the first time for all the project institutions to deal with the World Bank financed project. In addition, the evolution and implementation of the project were almost simultaneously practiced with the economic and education adjustment in China and hence affected by frequent changes of conditions and policies. These difficulties, on the other hand, turned into an active force to the enthusiastic and diligent staff of the Project participants. Moreover, the policy changes carried out by the government in turn become great advantages to accelerate the reform and development of education. The project has just served the central purpose of such accelerated reform and development in the higher education subsector in China. The impressive achievement of the project is a conclusive evidence of the performance and quality of the participating institutions of the borrower. - 19 - PART III. STATISTICAL INFORMATION TABLE 1: RELATED BANK/IDA LOANS AND/OR CREDITS Year of LOAN/CREDIT TITLE Approval PURPOSE STATUS MANAGED BY UNIvERsITy DEVELOPMENT PROJECT 1981 The project sought to strengthen science & engineering in 28 leading Chinese Universities. Objectives were to conpleted 1987 SEdC (LN 2021-CHA, CR. 1167-CHA) increase the quality & quantity of graduates & research, to strengthen the planning & managenment capabilities & to prepare investments in the education sector. AGRICULTURE EDUCATION AND 1983 The project was designed to assist agriculture higher educatioft and research in 11 agricultural colleges and 7 completed 1988 Ministry of Agriculture, REsEARcH PROJECT instittions. Aninal Husbandry and (CR. 1297-CHA) Fishery POLYTECHNIC/TELEVISION UMV PROJECT 1984 The project sought to increase the number of students & to improve the quality of instruction in China's 17 comnpleted 1989 SEdC (Ca. 1411-CHA) Polytechnic Institutions & 28 television Universities. RuRAL HEALTH AND MEDICAL 1984 Tbe educational component of this project was designed to enhauce the quality of education, training & completed 1989 Ministry of Public Health EDUCATioN PROJECT curriculum. (CR. 1472-CHA) SECOND AGRICLLTUVRAL EDUCATION 1984 The project sought to inprove & assist agriculture education in 23 agricultural colleges, 12 agricultural technical completed 1991 MinisUy of Agriculture, PROJECT schools. Animal Husbandry and (IM. 2444-CHA) Fishery SECOND UNIVERsITY DEVELOPMENT 1985 To increase technical & managerial personnel through policy & institutional changes related to the engineering completod 1989 SEdC PROJECT and economics/fuiance education subsector. (CR. 1551-CHA) GANSU PROVINCIAL DEVELOPMENT 1988 It is part of a comprehensive plan to attain universal nine-year basic education and to improve the quality of to be completed Gansu Provincial PROJEeT instruction in primary and lower secondary schools in Gansu Province. in 1993. Government EDUCATION COMPONENT `3 (,LN. 2812-CHA, CR. 1793-CHA) 0 TEACHER TRAINING PROJEcr 1989 To promote universal basic education through the expansion and upgrading of in service training for lower to be completed SEdC (CR. 190SCHA) ;secondary school teachers in 1994 TIXrsaooE DEVELOPMENT PROJECT 1989 The project supports the textbooks upgrading program by the Chinese Government. Objecives are to improve to be completed SEdC (CR. 2006--CHA) the educational quality of textbooks at all levels of schooling, to increase the variety of available textbooks & to in 1995 improve the efrlciency of textbook production. VOCATIONAL & TECHNICAL 1990 To improve the quality of technical & vocational training in China through supporting 59 secondary v/t schools to be completed SEdC EDucATtoN PRojEcT in 10 province and 3 municipalities. in 1995. (CR. 2114-CHA) MEDFUM-S=E CrTlEs 1990 The project assists the Changzhou. Luoyang and Shashi cities to improve overall and sector planning and to be completed SEdC DEvELoPMENT PROJECT management, including education. 1995 (1N. 3286-CHA) KEY STUDIs 1991 The project supports the government's plan to reform the management of science and technology programs. It to be completed SEdC DEVELOPMENT PROJECT consists of support for research and graduate training in 133 State Key Laboratories and Special Labs affdliated in 1995 (CR. 221f-CHA) with Universities and with Chinese Academy of Sciences. FDUCATnoN DEVELOPMENT 1992 The project supports three main goals for the developmentx of education in relatively poor provinces - Shanxi, to be completed SEdC IN POOR PROVINCES Shaanxi, Hubei, Hunan, Guijhou and Yunan. in 1996 (CR. 2339-CHA) . EFJEenVE TEACHING 1993 The central aim of the project is to contribute to improved lesaning at the lower middle school level by to be completed SEdC SERVICE PROJECT providing teaching services, including instructional methodology, teacher training and management of teacher in 1998 (CR. 2471-CHA) training and assignmrent. TABLE 2: PROJECT TIWETABLE Item Date Planned Date Revised Date Actual Identification /84 /84 Pre-appraisal /85 Appraisal Mission /85 Negotiations 10/85 Board Approval 12/85 Credit Signature 03/86 07/01/86 Credit Effectiveness 07/86 10/86 Project Completion 12/31/90 12/31/91 12/31/91 Credit Closing 12/31/91 12/31/92 12/31/92 TABLE 3: CREDIT DISBURSEMENT IDA FY 1987 1988 1989 1990 1991 1992 TOTAL Appraisal Estimate * 6.0 26.0 49.0 25.0 11.0 3.0 120 Cumulative as % of 5.0 26.7 67.5 88.3 97.5 100.0 total Actual Disbursement 56.3 13.4 44.7 11.3 3.7 20.6 150 Cumulative as % of 37.5 46.5 76.3 83.8 86.3 100.0 total Actual as % of 938.3 51.5 91.2 45.2 33.6 686.7 Estimate Date of Final 12/92 Disbursement: TABLE 4: IMPLEMENTATION INDICATORS (1984) (191) (1990) Indicator Actual Actual Target Quantitative Expansion Increased Total Undergraduate Enrolhnent 200,000 273,272 260,000 Increased Postgraduate Enrollment 5,000 8,519 20,000 Management (Efficiency) Improvement Student:Faculty ratio 5:1 Normal University 7:1-10:1 8:1 Other University 7:1-9:1 7:1 Utilzation rate of Laboratories 50% 70% 75% Utilization rate of classrooms 60% 92% 85% library opening hours per week 50 75 80 Commuting Students (as % of undergraduate students) 2% 3% 10% Staff Development Lower average faculty age * 3 years less 3-5 years less Increase % of faculty with Masters 2% * 27% 15% Increased % of faculty with Doctorate less than 1% * 5% 3% Lower % of teaching assistants 33% * 31% 20% Curricula and Pedagogy % of required experiment taught Basic Undergraduate Courses 80% * 94% 95% Specialized Undergraduate Courses 60% * 83% 80% Lower % of Compulsory Courses 65% * 76% 50% Increase in practice work not enough more more Increase in optional courses 10-15% * 17% 15-20% Increased use of discussion methods little more more Increased use of audio-visual material little more more Optional courses in related majors seldom more more Number of library books checked out per student per week less than I * 1.6 1.5% Delay of fimal decision on undergraduate major until second year seldom more some Normal University Number of weeks of teaching practice 6 7-8 10-12 Pedagogy/psychology courses on % of total teaching hours 6-7% 7-8% 10% Introduction of dual majors not possible not possible possible Note: Figures with "t" are those as end of year 1990 TABLE 5: PROJECT COST (US$ Million). Appraisal Estimates Revised Estimates Actual Component Local Foreign Total Local Foreign Total Local Foreign Total Civil works & Furniture 181.0 0.0 181.0 50.0 0.0 50.0 56.0 0.0 56.0 Equipment 147.0 100.0 247.0 30.0 100.0 130.0 32.0 131.6 163.6 Specialist Services 0.0 4.0 4.0 0.0 4.0 4.0 0.0 4.7 4.7 Assistance to Higher Education. 29.0 16.0 45.0 1.5 16.0 17.5 1.8 8.7 10.5 Development Studies, and Fellowships Otheri' 0.0 0.0 0.0 17.0 0.0 17.0 15.2 0.0 15.2 Total Project Cost 357.0 120.0 477.0 98.5 120.0 218.5 105.0 150.0 255.0 Notes: 'L Project costs are based on the January 1986 exchange rate of RMB Y 3.20 per US$1.00. 2' The ratio of counterpart funds to the IDA credit was revised during implementation from 3: 1 to 1: I for over commitment by provincial governments. 3/ Other include domestic transportation expenses, service charge, and administrative expenditures. TABLE 6: PROJECT FINANCING (in US$ million)"_ SOURCE Appraisal Revised Actual % Amount Amount2' Amount Government 357.0 74.8 98.5 45.1 105.0 41.2 IDA 120.0 25.2 120.0 54.9 150.0 58.8 Total in RMB Y million 477.0 100.0 218.5 100.0 255.0 100.0 IDA 384.0 25.2 384.0 54.9 480.0 58.8 Total 1526.4 100.0 699.0 100.0 816.0 100.0 Notes: 'L Project financing is based on the exchange rate of January 1986 (Y3.20 per US$) 2/ The ratio of counterpart funds to IDA credit was revised during the implementation from 3:1 to 1: 1 for over commitment by provincial governments. - 26 - TABLE 7: STATUS OF COVENANTS FOR THE PROVINCIAL UNIVERSITIES PROJECT Credit Subject Deadline Status Agreement Compliance Section 3.01 The Borrower's commitment to fulfill the project objectives, to carry out Objectives by Most of the objectives have the Project through the SEdC and the Provinces with due diligence and 12/90; Others in been finished and satisfied; efficiency and to provide the needed funds, facilities, services and other the whole cycle others went on smoothly resources for the project. of the project implementation Section 3.02 The Borrower shall maintain the Steering Committee, the Project Office July 1986 Performed quite well within the PEdC, the Loan Office within project universities, the CPC and IAP established for the purposes of the project, with staffing, functions and responsibilities acceptable to the Association. Section 3.03 Procurement of the goods, works and consultants' services required for In the whole Successfully completed the Project and to be financed out of the proceeds of the Credit shall cycle of the commence as agreed. project implementation Section 3.04 The Borrower shall award fellowships with the project in accordance In the whole Successfully completed with selection procedures and criteria agreed with the Association. cycle of the project implementation Section 4.01(a) The Borrower shall maintain or cause to be maintained records and Each year during Successfully completed accounts adequate to reflect, in accordance with sound accounting the project practices the operations, resources and expenditures, in respect of the implementation project, of the departments or agencies of the Borrower responsible for carrying out the project or any part thereof. Section The Borrower shall have the accounts, including the Special Account, for Each year during Successfully completed 4.01(b) each fiscal year audited, in accordance with appropriate auditing the project principles consistently applied, by independentauditors acceptable to the implementation Association; fumish to the Association a certified copy of the report of such audit by said auditors of such scope and in such detail as the Association shall have reasonably requested; and fumish to the Association such other information conceming said accounts and the audit therefore and said records as the Association shall from time to time reasonably request. Section 4.01(c) For all expenditures with respect to which withdrawals are requested In the whole Successfully completed r from the Credit Account on the basis of statements of expenditures, the cycle of the Borrower shall maintain or cause to be maintained separate records and project accounts reflecting such expenditures; retain, until one year after the Association has received the audit report for the fiscal year, all records evidencing such expenditures; enable the Association's representatives to examine such records; and ensure that such separate accounts are included in the audit and that the report thereof contains in respect of such separate accounts, a separate opinion by said auditors as to whether the proceeds of the Credit withdrawn, in respect of such expenditures have been used for the purpose for which they were provided. Section 4.02 The Borrower shall until such date as may be agreed between the Every year Successfully completed Borrower and the Association, monitor and evaluate the progress especially achieved in fulfilling the objectives of the Project through performance mid-term and indicators agreed between the Borrower and the Association. completion in the project implementation - 27 - TABLE 8: PROJECT STUDIES Studies Status Impact of Study Provincial Higher Purpose as defined at appraisal: completed Efficient Education Through the practical experience gained operation of Masterplans in execution of two planning activities, provincial the central and Provincial higher education education authorities will strengthen their development capacities to design and implement masterplanning similar comprehensive plans which have a long-term time frame and are linked to economic growth rates and the manpower needs of major economic sectors. Provincial Teacher Better understanding of teacher completed Education Plan education and more knowledge in teaching of sciences and math. Notes: While the provincial governments were involved, responsibility for coordinating and implementing these studies activities rested with SEdC. During the implementation of the project, 12 workshops (on macroeconomic management of higher education) were sponsored by SEdC to provide international educational practice and experience in drawing up long-term programs and plans for provincial officials in the educational sector. The project provincial governments have integrated these studies with planning activity of the provincial eighth five-year development program and the educational development program in next decade, including provincial higher education masterplan and teacher education plan. The work for the two programs has already been completed under the TA component. These activities were supported mainly by the provincial resources. TABLE 9: STAFF INPUT (STAFF/WEEK) Stage of Project Cycle Planned Revised Final Through appraisal 78.4 78.4 Appraisal to Board Approval 64.7 64.7 Board Approval to Effectiveness 10.0 10.0 Supervision 67.5 66.2 Total 220.6 219.3 TABLE 10: IDA Missions Stage of Project Month/ Number of Number of Number of Performance Rating Type of Problems Year Missions Persons Days and Specialization Identification 9/83 1 5 22 econ Pre-appraisal 8/94 2 4 30 econ, ed sp, voc sp Appraisal 12/84 1 4 15 econ. ed sp, tch ed Pre-negotiations 10/85 1 4 21 econ, consultants Supervision 5/86 1 2 16 econ Implementation ahead of SAR 2/87 1 1 11 educator No major problem 2/88 1 1 12 econ 7/88 1 1 7 econ, tech ed 4/89 1 2 16 -do- co 3/90 1 1 24 -do- 10/90 1 2 13 -do- 10/91 1 1 10 -do-