Document of The World Bank FOR OFFICIAL USE ONLY Report No: 18706 IMPLEMENTATION COMPLETION REPORT REPUBLIC OF THE PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT (LOAN 3435-PH) November 24, 1998 Education Sector Unit 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 Bank authorization. CURRENCY EQUIVALENTS Currency Unit = Philippine Peso (PHP) 1991 $1 = PHP 28.00 1998 (June) $1 = PHP 43.60 FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS COA - Commission on Audit DBM - Department of Budget and Management DOST - Department of Science and Technology ESEP - Engineer and Science Education Project ICC - Investment Coordination Committee ICR - Implementation Completion Report MIS - Management Information System MOT - Management of Technology NCR - National Capital Region NEDA - National Economic and Development Authority O&M - Operation and Maintenance OECF - Overseas Economic Cooperation Fund of Japan PAG - Project Advisory Group PICO - Project Implementation and Coordinating Office R&D - Research and Development RM - Resident Mission S&T - Science and Technology SAR - Staff Appraisal Report STCC - Science and Technology Coordinating Council Vice President Jean-Michel Severino, EAPVP Sector Manager Alan Ruby, EASED Country Director Vinay Bhargava, EACPF Task Manager Ompom Regel, Operations Officer, EASED FOR OFFICIAL USE ONLY CONTENTS PREFACE ...................................................... i EVALUATION SUMMARY ..................................................... iv PART I: PROJECT IMPLEMENTATION ASSESSMENT .....................................1 A. Project Objectives and Description ....................................................1I B. Achievement of Project Objectives ..........................2..........................2 C. Implementation Record and Major Factors Affecting the Project .................... 3 D. Project Sustainability .....................................................6 E. Bank Performance .....................................................7 F. Borrower Performance .....................................................7 G. Assessment of Outcome ............7........................................7 H. Future Operation .....................................................8 I. Key Lessons Learned .....................................................8 PART II: STATISTICAL TABLES .................................................... 10 Table 1: Summary of Assessments .10 Table 2: Related Bank Loans/Credits .1 Table 3: Project Timetable .11 Table 4: Loan/Credit Disbursement: Cumulative Estimate and Actual 12 Table 5: Key Indicators for Project Implementation .13 Table 6: Studies Included in Project .14 Table 7a: Project Costs. 15 Table 7a: Project Costs............................................... . . . . . .. .. .. . ... .. . . . . Table 7b: Project Financing ............................................. 16 Table 8: Economic Costs and Benefits ............................................. 17 Table 9: Status of Legal Covenants ............................................. 18 Table 10: Compliance with Operational Manual Statements ............................... 20 Table I I a: Bank Resources: Staff Inputs (Staff Weeks) . ....................................... 21 Table I Ib: Bank Resources: Staff Inputs ('000) ............................................. 21 Table 12: Bank Resources: Missions ............................................. 22 ANNEX A: BORROWER'S CONTRIBUTION TO THE ICR ......................... 23 ANNEX B: ICR MISSION'S AIDE MEMOIRE ................................................. 32 ANNEX C: PROJECT-SUPPORTED INSTITUTIONS .................................... 37 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. - 111 - REPUBLIC OF THE PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT (LOAN 3435-PH) PREFACE This is the Implementation Completion Report (ICR) for the Engineering and Science Education Project in the Republic of the Philippines, for which Loan 3435-PH in the amount of US$ 85.0 million was approved on January 28, 1992 and made effective on June 3, 1992. The loan amount was reduced to US$ 61.0 million on October 10, 1993, following the Government of Japan's (OECF) agreement to cofinance the project in the amount of US 24.0 million equivalent. The loan was closed on June 30, 1998, one year after the original closing date of June 30, 1997. Final disbursement took place on November 10, 1998, at which time a balance of US$ 5.69 million was canceled. The OECF grant is not scheduled to close until year 2000. The ICR was prepared by William D. Cooper (Consultant) and reviewed by Ms Omporn Regel (Task Manager, EASED) and Mr. Alan Ruby (Manager, EASED), Ms. Maureen Law (Acting Manager, EASED), and Mr. Vinay Bhargava (Country Director, EACPF). Preparation of the ICR was begun during the Bank's final supervision/completion mission in June 1998. It is based on information gathered during that mission and on material in the project file. The Borrower contributed to the preparation of the ICR by commenting on the draft and by conducting its own evaluation of the project's execution and achievements. A summary of the Borrower's contribution is appended as Annex A. REPUBLIC OF THE PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT (LOAN 3435-PH) EVALUATION SUMMARY INTRODUCTION 1. The Bank's involvement in the education sector in the Philippines since 1965 consists of 14 education and training projects, for a total financing of US$ 767.5 million. Bank support covered primary and secondary education, higher education (including the project under review), technical and vocational training, industrial skills development, and teacher training. Two projects are still active: the Second Vocational Training Project (Cr. 2392-PH) and the Third Elementary Education Project (Ln. 4108-PH). PROJECT OBJECTIVES. 2. Objectives. The project's overall objective was to upgrade the country's industrial and technological capability by increasing the supply of high-level science and technology (S&T) manpower. Specifically, the project aimed to: (a) strengthen the institutional framework and the criteria for funding and monitoring engineering and science education; (b) enhance financial and resource management, improve the quality and relevance of S&T teaching, and promote scientific research and development; (c) improve science and mathematics education in secondary schools; and (d) strengthen S&T manpower planning, monitoring and evaluation. 3. Project description. Project objectives were supported by a policy action plan and an investment program. The policy action plan focused on improving the institutional framework of engineering and science education, strengthening financial and resource management, matching enrollments to S&T manpower needs, and improving accreditation. The investment program financed qualitative improvements in six areas: (i) engineering education; (ii) science education and research; (iii) the management of technology; (iv) library networks; (v) secondary school science and mathematics, and (vi) S&T manpower planning, monitoring and evaluation. The entire program involved 19 engineering schools, 10 science colleges, 110 secondary schools and 22 teacher training institutions (Annex C). 4. Evaluation of objectives. Project objectives were realistic and clearly stated. They were important for the development of science and technology education in the Philippines, and in line with the Bank's country assistance strategy and the Borrower's education sector development plans. Project support was limited to a small number of institutions considered to have the capacity and potential to achieve the objectives. Nonetheless, the project was quite demanding for the Borrower and its implementing agency, the Department of Science and Technology (DOST), and some delays did occur. Main risks identified during appraisal were: (i) social pressures to expand low-quality - v - programs; (ii) inadequate financing for O&M of laboratories; (iii) loss of trained faculty to the private sector; and (iv) limited experience in project implementation. Measures taken to counter them were effective, and risks were minimized. The project wab well defined and responsive to changes in Borrower circumstances and priorities. IMPLEMENTATION EXPERIENCE AND RESULTS 5. Achievement of objectives. The project's impact on the institutionalframeuork of engineering and science education is substantial. A collaborative network of institutions was established, quality monitoring groups for engineering and science education were strengthened, the accreditation system was improved, and a networked library and information system was set up. Internal efficiency measures were largely implemented as planned, and resources are beginning to be used more efficiently. User funds were set up to help pay for capital investments and O&M of engineering and science laboratories. Links with industry, research institutes and professional associations were effectively strengthened. 6. The project's impact on the quality of engineering and science education is more difficult to assess because the faculty development program, which was successfully launched, has not yet been completed. However, all inputs were supplied as planned, curricula were updated, laboratory facilities upgraded and new equipment installed. Engineering and Science capabilities were strengthened in seven and two institutions, respectively, through faculty training and the acquisition of equipment. Programs in the management of technology (MOT) were introduced at three tertiary institutions. The overall impact is considered substantial. 7. The project's impact on science and math teaching in secondary schools is substantial. Conditions for good quality science teaching were significantly improved through construction or renovation of laboratories at 1 10 secondary schools, the provision of science equipment, and the upgrading of curriculum content and teacher qualifications. Capacities for science and math teacher training at 22 teacher training institutions were strengthened by improving science laboratories and upgrading staff qualifications. 8. The Borrower's capacity for S&T manpower planning, monitoring and evaluation was significantly strengthened. A comprehensive management information system (MIS) has been set up, staff has been trained, data collection and processing has started, and the system is expected to be fully functional within about a year. 9. Costs and financing. After effectiveness, the Bank loan was reduced from US$ 85 million to US$ 61 million when the Government obtained OECF cofinancing of US$ 24 million equivalent. The OECF grant was used to finance the secondary school science and mathematics component. Total project costs of US$ 130 million were within appraisal estimates. 10. Key factors. Factors that positively impacted on project outcomes include a high level of Borrower commitment, effective arrangements for project coordination and - vi - quality monitoring, and good relations between the Bank and the Borrower. The Borrower's performance is rated satisfactory. The Borrower actively participated in project preparation, competently executed the project and effectively coordinated the various inputs with the beneficiary institutions. The Bank's perforrnance is also rated satisfactory. Project preparation and appraisal were competently carried out, with significant Bank input into the design of institutional requirements and implementation arrangements. The quality of supervision was satisfactory, although more attention should have been paid to financial management which was a weak point during implementation. The Bank's Resident Mission in the Philippines (RMP) played an increasingly important role in resolving implementation issues, particularly during the latter half of the project period. Despite these satisfactory ratings, two factors negatively affected project performance: (i) inadequate budget allocations by the Department of Budget and Management (DBM) in 1992 and 1993 which caused a one year delay in project completion; and (ii) initial weaknesses in the project's financial management and accounting systems. These problems were resolved and implementation was smooth in later years. 11. Overall rating. Based on the timely delivery of all planned project inputs, the effective collaboration between participating institutions, and the more efficient use of limited resources, the outcome of the project is rated as satisfactory. More time is needed, however, to assess the project's long-term impact, when investments become fully utilized and performance can be more accurately measured. SUMMARY OF FINDINGS, FUTURE OPERATIONS, AND KEY LESSONS LEARNED 12. Findings. This was a well-designed, well-executed operation with good potential for significant benefits in the long term. To achieve those benefits, it is important to ensure that the initial achievements are sustained and extended to the remainder of the science and technology education sub-sector. 13. Future Operations. Plans for the future operation of the project include provisions for funding of O&M of project-supported laboratories, completion of the ongoing faculty development program, and development and implementation of a follow- up project (ESEP II). Initial proposals for ESEP II indicate that its focus would be on: (a) improving DOST's capability in management of technology; (b) strengthening private sector participation in scientific research and development; and (c) upgrading the human resources capacities in science and technology. 14. Key lessons. Key lessons learned from this project include: Assessing Project Outcomes: As confirmed by the performance indicators used for this project, this was an input and process focused operation that did not lend itself easily to the assessment of long-term improvements in the quality of science and engineering education and the management of limited sector resources. A future operation would do well to develop a different set - vii - of indicators, designed to measure these internal and external efficiencies. These might include an evaluation of the use of scholarship funds, tracer studies on the deployment of returning scholars in teaching, research and industry, an assessment of the impact of improved laboratories and equipment on the quality of graduates, and quantitative data on private sector participation in science and technology education and research. The impact of investments in capacity building should also be assessed and reflected in the design of a future operation. * Strengthening the Role of the Resident Mission. Staff of the Resident Mission (RMP) provided effective support in the areas of procurement, disbursement and contract administration, particularly during the second half of the implementation period. In a future operation, this role could usefully be strengthened with more emphasis on accounting and financial management which received insufficient attention under this project. E Expanding Private Sector Involvement in S&T Development. The institutional framework for this project was well designed. It provided for policy advice, pedagogical support and implementation assistance through the Project Advisory Group, and industry input through the Science and Technology Coordinating Council. However, if the thrust of future investments in S&T education is the improvement of industrial production and research (key objectives of ESEP II), follow-up operations should pay attention to a more effective and substantive participation of employers in developing, delivering and financing S&T education and research. REPUBLIC OF THE PHILIPPINES ENGINEERING AND SCIENCE EDUCATION PROJECT (LOAN 3435-PH) PART 1: PROJECT IMPLEMENTATION ASSESSMENT A. PROJECT OBJECTIVES AND DESCRIPTION 1. Project objectives. The project's overall objective was to upgrade the country's industrial and technological capability by increasing the supply of qualified high-level science and technology (S&T) manpower. Specifically, the project aimed to: (a) strengthen the institutional framework and the criteria for funding and monitoring the quality of engineering and science education; (b) strengthen engineering and science education in priority fields at selected institutions; (c) improve science and mathematics education at selected secondary schools; and (d) strengthen DOST's capacity to plan and coordinate S&T manpower development programs. 2. Project description: Project objectives were supported by a policy action plan and an investment program. The policy action plan focused on improving the institutional framework for funding and monitoring the quality of engineering and science education, strengthening financial and resource management, matching enrollments to S&T manpower needs, and improving accreditation. The investment program financed qualitative improvements in six areas: v Engineering Education: (i) improve undergraduate and graduate programs in priority fields at 19 colleges of engineering through faculty development, laboratory equipment and facilities upgrading; (ii) develop research capacities in leading universities; and (iii) upgrade the quality of engineering graduates and practicing engineers in priority fields. * Science Education and Research: (i) improve undergraduate and graduate programs in priority fields at 10 colleges of science through faculty upgrading and improved laboratory facilities; (ii) strengthen science research capacities in two leading universities: and (iii) upgrade the quality of science graduates and scientists in industry and R&D. * Management of Technology: develop programs and faculty to introduce masters programiis and short courses in the maniagement of tcchlnology (MOT) at three universities. * Library networks: Upgrade library staff, collections and facilities at three engineering and seven science colleges, and develop a system of networking among those libraries. * Secondary School Science and Mathematics: Improve science and mathematics instruction through in-service teacher training, the provision of books and laboratory equipment, and the upgrading of laboratory facilities at 110 secondary schools and 22 teacher training institutions. * S&T Manpower Planning and Monitoring: (i) improve the monitoring roles of the technical panels for engineering education and science education; (ii) develop a management information system (MIS) to help plan and coordinate national S&T manpower programs; and (iii) improve DOST's capacity to coordinate project implementation. 3. Evaluation of objectives. Project objectives were realistic and clearly stated. They were important for the development of science and technology education in the Philippines, and in line with the Bank's country assistance strategy and the Borrower's education sector policies. Project interventions were correctly limited to a relatively small number of institutions considered to have the capacity and potential to achieve the objectives. Nonetheless, the project was quite demanding for the Borrower and its implementing agency (DOST), and some delays did occur. The main risks identified during appraisal were: (i) social pressures to expand low-quality programs; (ii) inadequate recurrent cost financing for O&M of laboratories; (iii) loss of trained faculty to the private sector; and (iv) limited experience in project implementation. Measures taken to counter them were effective, and risks were minimized. The project was well designed and sufficiently flexible to respond to changes in Borrower circumstances and priorities. B. ACHIEVEMENT OF PROJECT OBJECTIVES 4. The project substantially achieved its immediate objectives. Provided these are sustained, the project is likely to have a substantial positive impact on the quality of scientific and technological manpower in the Philippines. However, an accurate assessment of the project's impact is difficult to make at this time because: (a) insufficient time has elapsed for some investments to be put to full use (institutional measures are still maturing, a significant number of teaching staff have not yet returned from overseas training, laboratory equipment has only recently been installed and is not yet fully used); and (b) information gaps make it difficult to assess progress and track performance. Within these limitations, the achievement of objectives is summarized as follows: - 3 - 5. Improving the institutional framework. This objective has largely been met. The policy action has for the most part been implemented as planned. Collaborative networks of leading institutions have been established, monitoring mechanisms for engineering programs have been set up, and the accreditation system has been improved. Internal efficiency measures to improve institutional performance (rationalizing teaching loads and class sizes, improving facility utilization) are being implemented as agreed. Laboratory tuition and user fees have been introduced to finance new investments in equipment and operational and maintenance costs. Collaboration with employers, trade associations and other professional bodies has been strengthened. 6. Improving the quality of engineering and science education. The quality and relevance of engineering and science education has been enhanced through faculty and program upgrading, investments in facilities and equipment, and improved linkages with industry. Engineering and science capabilities have been strengthened through faculty development and the acquisition of research equipment. Programs in the management of technology (MOT) have been successfully introduced. Availability of scientific information has been enhanced through improved library facilities in ten participating universities. 7. Improving science and mathematics teaching in secondary schools. Science laboratories at 110 secondary schools have been upgraded and equipped, curricula have been revised, and over 1,000 teachers have been trained. Local capacities for science and mathematics teacher training have been strengthened by upgrading science laboratories at 22 teacher training institutions and improving the qualifications of teacher trainers. 8. Strengthening capacity for S&T manpower planning and coordination. A comprehensive management information system (MIS) has been put in place and staff have been trained in its use. C. IMPLEMENTATION RECORD AND MAJOR FACTORS AFFECTING THE PROJECT Implementation Record 9. Table 5 of Part II - Key Indicators for Project Implementation - confirms that the output targets as defined in the SAR have been generally met. Some long-term programs (e.g. overseas fellowships) extend beyond the project's closing date but arrangements have been made to complete them. The following paragraphs summarize the project's status at closing. 10. Engineering Education. Undergraduate enrollments (BS) at the 19 intermediate engineering colleges (Annex C) in the priority fields targeted under the project (electrical engineering, electronics engineering, mechanical engineering, materials engineering, industrial engineering, manufacturing engineering, computer engineering and chemical -4- engineering) increased from 19,267 (1990/91, baseline) to 21,600 (1997/98, project completion), an increase of 12% which is still within the targeted rate of increase of not more than 20%. MS/PhD enrollments almost doubled from 200 to 380 over the same period, or almost 2 percent of undergraduate enrollment, as planned. As regards quality improvements, an aggressive faculty development program (PhD and MS/MEng) covering about 800 faculty is expected to be completed in 2000 (with Government financing beyond June 30, 1998). So far, 82 PhD graduates and 292 MS graduates have resumed their teaching duties at the sponsoring institutions. The percentage of faculty with MS/Ph.D. degrees are close to targets and will most likely reach targeted levels once the 41 scholars return to complement the current teaching force by SY1999-2000. In addition, about 1,355 staff (BS level, generally) have received short-term skills upgrading, about 6% below SAR target. 11. Teaching facilities have been upgraded as planned. Laboratories at 19 engineering schools have been upgraded and laboratory equipment has been supplied. The issue of financing operation and maintenance (O&M) costs of laboratories has been satisfactorily dealt with (i) in public institutions through the creation of science and engineering laboratory funds, and (ii) in private institutions (which are financially autonomous) through earmarked funds in their regular budgets. 12. Thirteen network schools have established formal linkages with industry under the project; two schools had existing linkages and are preparing to develop them further; and the remaining four schools have not established linkages. This program needs to be more vigorously pursued in the future. 13. Science Education and Research. Undergraduate enrollments in priority fields (biology, chemistry, physics, mathematics, earth science and computer science) in the ten project-supported science colleges have more than doubled to about 15,500 (1997 data). Graduate enrollments doubled to 1,698 (1997). There was, however, no discernible shift toward the newer disciplines (earth sciences, computer science). The number of faculty increased from about 590 in 1991 to about 835 in 1997 and over 40% now have graduate degrees, in line with SAR targets. The fellowship program is continuing with Government financing, and is expected to further improve faculty qualifications. Staff resources were also more effectively used: statistically, the average staff/student ratio decreased from about 1/11 in 1990 to 1/20 in 1997. Teaching laboratories were upgraded and equipped, as planned. Science research facilities have been established and improved at two leading universities. The volume and quality of scientific research is increasing, helped by a program of research grants. 14. Management of Technology. Graduate programs and short-term courses in the management of technology (MOT) have been introduced as options at three flagship institutions (Asian Institute of Management, De La Salle University and University of the Philippines-Diliman), as planned. About 40 elective and seminar courses, supported by MOT case studies, have been developed; reference materials, books and journals have been acquired; five staff have been awarded fellowships for graduate-level training in -5- MOT specializations (two have completed); and a Technology Management Center has been established at the University of the Philippines, Diliman. 15. Library Networks. Libraries at seven science and three engineering colleges have been improved as planned. About 72,000 reference books and 570 journal subscriptions have been procured, computer systems have been set up and networked, and more than 330 staff have been trained in library science and information technology. The ten participating institutions have committed to providing continued funding for journal subscriptions beyond project closing. 16. Science and Mathematics in Secondary Schools. Science laboratories (physics, chemistry and biology) at 110 S&T-oriented secondary schools in NCR and 12 regions were improved as planned, through the construction of new science blocks at 104 schools, the rehabilitation of existing science labs at six schools, and the provision of laboratory equipment for all of them (equipment was financed by OECF). At project closing, these new or upgraded laboratories were fully operational. An in-service teacher training program, conducted at teacher training facilities in the regions in which the schools are located, was successfully completed: 1,077 teachers obtained diplomas or certificates versus 837 planned, 35% over target. In addition, about 880 teachers were trained in the use of laboratory equipment. Science teacher training facilities were improved by constructing and equipping laboratories at 22 Regional Science Teaching Centers and tertiary node institutions (Annex C), and teaching staff were upgraded through a fellowship program for 46 teachers who successfully completed a Master of Arts in Teaching program. 17. Manpower Planning and Monitoring. DOST's management information system has been strengthened through the acquisition of computer equipment, staff training and software development. Unfortunately, implementation of this component was delayed by about three years and the MIS was only fully installed just prior to project closing. As planned, the MIS has the following components: scholarship monitoring and graduate information database, library materials procurement, procurement financing, staff appraisal reporting, payroll and financial management. The various systems are networked and staff have been trained to operate them. Data collection and encoding is underway, but due to the delays DOST has not been in a position to use the MIS as a planning and monitoring tool. 18. Project Management and Coordination. Implementation during the first two years was quite slow, mainly because of DOST's unfamiliarity with Bank procedures, inadequate budgetary allocations to the project, logistical problems with procurement and constraints in setting up the fellowship programs. After the second year, the pace of implementation improved as qualified staff were recruited, procedures were established and experience was gained. At project completion, DOST's project implementation and coordination office (PICO) had established itself as a competent unit capable of effectively coordinating the various project components, handling project funds, keeping adequate records, and producing progress reports. Bank supervision reports attest to the good performance of PICO during the last four years of implementation. Major factors affecting the project 19. As mentioned above, inadequate budget allocations by Government during the first two years of project implementation (24% of the budget request in 1992, and 37% in 1993) seriously delayed project start-up and deferred some activities to later years. This eventually resulted in an extension of the project closing date by one year. Factors which impacted positively on the project include the high level of Government commitment to the project's objectives, the large degree of delegation of responsibility to participating institutions, and the well-conceived structure for project management and coordination. The Steering Committee, the Project Advisory Group (PAG) and the Science and Technology Coordinating Council (STCC) were particularly effective elements of the institutional setup. The COA played a positive role in helping to improve the project's financial management and control, while the PAG successfully helped maintain quality control over the educational aspects of the project, nurtured university-industry linkages and broadened the international ambit of the operation. D. PROJECT SUSTAINABILITY 20. There are good prospects for sustaining the project's preliminary outcomes. At the policy level, the Government remains strongly committed to its vision of making the industrial sector competitive and innovative through high-quality, relevant scientific and technological education and research. A number of initiatives have been launched or are planned to help achieve this goal. One of these is a proposal to the Bank for a follow-up project, designed to consolidate and expand the achievements obtained under the current project. 21. Prospects for sustainability are also good at the institutional level. The technical groups initially set up for project preparation, the quality control panels that deal with academic standards and accreditation, the council of engineering deans that links a number of engineering colleges, and the Project Advisory Group, are institutionalized entities that are expected to remain in place. With the right kind of support, scientific research is expected to expand through better linkages with industry and more research funds. Access to scientific information for teaching and research is expected to be sustained through improved availability of reference materials and scientific journals, as well as Internet access. -7 - E. BANK PERFORMANCE 22. The Bank's performance overall is rated as satisfactory. The identification mission produced a solid, comprehensive investment proposal that did not change much during subsequent stages of processing. Preparation missions paid particular attention to the project's institutional setup and quality control measures. Interestingly, a considerable amount of detailed preparatory work was done after appraisal through a post-appraisal mission and three supervision missions during the first project year. The Bank team provided a significant level of detailed assistance to get the project off the ground, from setting up the project management structure, to developing terms of reference for the PAG, assisting with procurement and disbursement procedures and advising on record keeping and reporting requirements. Despite the high turnover of task managers, supervision was of consistently high quality. Missions were adequately staffed, regularly spaced and constructive in resolving implementation issues. A mid-term review was conducted, with excellent input from the Borrower and only very minor changes were made to the project. Relations with the Borrower were excellent throughout the project period. F. BORROWER PERFORMANCE 23. The Borrower's performance was satisfactory. The Borrower participated actively in the project's design and preparation, and made a significant contribution to the soundness of its concept and scope. As noted above, there were some early delays in project implementation, mainly because of lack of experience of the newly-established project implementation office, inadequate budget allocations for the first two project years, and the time needed to set up the necessary systems and procedures. In retrospect, these delays were unavoidable. The management and coordination of this complex project, involving a large number of institutions and a wide range of activities, was well handled by DOST/PICO. Continuity of staffing was excellent, commitment to the job was evident at all levels, initial weaknesses in procurement, disbursement and financial management were addressed, and a great deal of experience was built up. It is therefore fully expected that DOST will be quite capable of continuing the operation of this project and implementing a follow-up operation. G. ASSESSMENT OF OUTCOME 24. Based on the timely delivery of all planned project inputs, the effective collaboration between participating institutions, and the more efficient use of limited resources, the outcome of the project is rated as satisfactory. More time is needed, however, to assess the project's long-term impact, when investments become fully utilized and performance can be more accurately measured. Provided the project's - 8 - achievements are sustained, through the continued operation of this project and the support of a follow-up project, it is reasonable to assume that the quality and relevance of S&T education in the Philippines will be significantly improved. H. FUTURE OPERATION 25. Plans for the future operation of the project include provisions for funding of O&M of project-supported laboratories, completion of the ongoing faculty development program, and development and implementation of a follow-up project (ESEP II). Initial proposals for ESEP II indicate that its focus would be on: (a) improving DOST's capability in management of technology; (b) strengthening private sector participation in scientific research and development; and (c) upgrading the human resources capacities in science and technology. Project preparation is underway and detailed proposals are expected to be submitted to NEDA and ICC by end-1998. ESEP II is in the Bank's FY00 lending program. 1. KEY LESSONS LEARNED 26. Key lessons leamed from this project include: Assessing Project Outcomes: As confirmed by the performance indicators used for this project, this was an input and process focused operation that did not lend itself easily to the assessment of long-term improvements in the quality of science and engineering education and the management of limited sector resources. A future operation would do well to develop a different set of indicators, designed to measure these internal and external efficiencies. These might include an evaluation of the use of scholarship funds, tracer studies on the deployment of returning scholars in teaching, research and industry, an assessment of the impact of improved laboratories and equipment on the quality of graduates, and quantitative data on private sector participation in science and technology education and research. The impact of investments in capacity building should also be assessed and reflected in the design of a future operation. * Strengthening the Role of the Resident Mission. Staff of the Resident Mission (RMP) provided effective support in the areas of procurement, disbursement and contract administration, particularly during the second half of the implementation period. In a future operation, this role could usefully be strengthened with more emphasis on accounting and financial management which received insufficient attention under this project. * Expanding Private Sector Involvement in S&T Development. The institutional framework for this project was well designed. It provided for policy advice, pedagogical support and implementation assistance through the Project Advisory Group, and industry input through the Science and Technology Coordinating Council. However, if the thrust of future investments in S&T education is the improvement of industrial production and research (key objectives of ESEP II), follow-up operations should pay attention to a more effective and substantive participation of employers in developing, delivering and financing S&T education and research. - 10- PART II: STATISTICAL TABLES TABLE 1: SUMMARY OF ASSESSMENTS A. Achievement of Substantial Partial Negligible Not Applicable Objectives Macroeconomic policies V/ Sector policies V/ Financial objectives Vf Institutional development V/ Physical objectives V/ Poverty reduction V Gender issues V. Other social objectives V/ Environmental objectives V Public sector management / Private sector development V/ B. Project Sustainability Likely Unlikely Uncertain / C. Bank Performance Highly Satisfactory Satisfactory Deficient Identification Preparation assistance / Appraisal / Supervision V D. Borrower Performance Highly Satisfactory Satisfactory Deficient Preparation V Implementation V Covenant compliance V E. Assessment of Outcome Highly Satisfactory Unsatisfactory Highy __Satisfactorv Unsatisfactory V_ TABLE 2: RELATED BANK LOANS/CREDITS Loan/Credit Title Purpose Year of Status Approval Preceding Operations First Vocational Training Project Strengthen NMYC mgmt. system; 1983 Completed (Ln. 2200-PH) establish contracting system for April 1991 sector specific training; expand skill testing and certification system to improve quality Following Operations Second Vocational Training Project Improve employer and manpower 1992 Ongoing (Cr. 2392-PH) development policies; expand non- (Cr. 2392-PH) formal training; and enhance private sector training capacity TABLE 3: PROJECT TIMETABLE Steps in project cycle Date planned Date actual Identification (IEPS) December 5, 1989 Pre-appraisal November 22, 1990 Appraisal March 3,1991 March 9, 1991 Negotiations December 5, 1991 Board presentation November 5, 1991 January 28, 1992 Signing February 5, 1992 Effectiveness June 3, 1992 Project completion June 30, 1997 June 30, 1998 Loan closing October 31, 1997 December 31, 1998 - 12 - TABLE 4: LOAN/CREDIT DISBURSEMENT: CUMULATIVE ESTIMATE AND ACTUAL (US$ million) FY92 FY93 FY94 FY95 FY96 FY97 FY98 Appraisal estimate 2.00 13.00 37.00 65.00 80.00 85.00 Adjusted estimate 0.00 1.72 5.17 17.46 51.46 61.00 Actual 0.00 1.72 5.17 19.09 33.74 46.33 55.53 Actual as % of adjusted estimate 0 1000/% 1000/% 114% 65% 76% 91% Date of final disbursement November 10, 1998 - 13 - TABLE 5: KEY INDICATORS FOR PROJECT IMPLEMENTATION Category Key Indicators Base line SAR estimates Actual 1990 1996 1996/97 Engineering Education Enrollments: BS - total 18,800 34,000 22,500 (est) MS/PhD -total 200 250 380 Efficiency: Drop-out rate in Ist and 2nd year 16-40 20 6 No. of years for graduation (MS) 4 2 3 Faculty:student ratio 1:13 - 1:90 1:20 -1:35 1:28 (avge) Quality: % of faculty by educ.qualifications PhD 0-10 40 40 MS 3-30 40 40 BS 96-61 60 60 Weekly hrs of instruction (BS level) 25-30 20-25 21-23 Science Education Enrollments BS - total 9,740 12,500 15,500 MS/PhD - total 1,350 2,924 1,698 Efficiency Faculty:student ratio 1:3 - 1:36 1:5 - 1:55 1:18 (avge) Quality % of faculty by educ.qualifications MS/PhD 60 70 70 BS 40 30 30 Weekly hrs of instruction (BS level) 12-40 18 18 Teacher Training Enrollments BS - total 13,463 9,588 4,035 MS/MAT/PhD - total 4.3% 7.7% 12.7% Efficiency Dropout rate 2nd and 3rd yrs 2.2 2.1 nd Faculty/Student Ratio 1:34 1:33 1:5 Quality % of faculty by educ. qualifications PhD 10 15 15 MS/MA/MAT 46 65 36.7 BS 44 20 48.4 Weekly hrs of instruction (BS level) 21 18 13.6 - 14 - TABLE 6: STUDIES INCLUDED IN PROJECT Study Purpose as defined at Status Impact of Study Appraisal/Redefined 1. Science and Technology Policy Preparatory document for the design Completed June Results incorporated and Program Innovations and the of a follow-up project in science and 1998 in design of Second Social Sciences (Ateneo de Manila technology education Engineering and University, Manila) Science Education Project 2. Analysis of Training Needs To ensure that equipment supplied Completed June 28, Recommendations for associated with Research will enhance graduates' capacity to 1998 development of Equipment in Project-supported perform effectively in the work equipment training Engineering and Science Schools place and maintenance (Overseas Projects Corporation of programs Victoria Ltd, Australia) 3. An Information Management To develop a Management Completed June 22, Master document for Infrastructure Plan for the Information System for DOST 1998 DOST's MIS Departnent of Science and Technology (Information Management Associates, Manila) 4. Guidelines on Instrument To promote effective use and Completed July 29, Improved operation Maintenance and Laboratory maintenance of laboratory 1998 and maintenance of Management for ESEP Recipient equipment laboratories in Institutions (Eugenio P. Enriquez, engineering and Consultant) science schools - 15 - TABLE 7A: PROJECT COSTS (US$ million) Appraisal estimate ActuaVlatest estimate Item Local Foreign Total Local Foreign Total Engineering Education 19.10 19.90 39.00 20.56 25.20 45.76 Science Education and Research 19.40 21.40 40.80 17.96 26.28 44.24 Management of Technology 0.20 0.80 1.00 0.05 1.13 1.18 Library Networks 3.00 6.30 9.30 2.28 10.16 12.44 High School Science and Math 8.80 7.30 16.10 3.69 13.45 17.14 S&T Manpower Planning and Monitoring 1.00 1.00 2.00 1.13 3.83 4.96 Base Cost 51.50 56.60 108.10 45.67 80.05 125.72 Contingencies 9.30 13.40 22.70 - - - Total Project Cost 60.80 70.10 130.70 45.67 80.05 125.72 - 16- TABLE 7B: PROJECT FINANCING (US$ million) Appraisal estimate ActuaVlatest estimate Source Local Foreign Total Local Foreign Total Government 29.80 - 29.80 29.84 29.84 Private Universities 11.11 4.80 15.90 15.83 - 15.83 IBRD 19.90 65.10 85.00 - 56.33 56.33 OECF - - - - 23.72 23.72 - 17- TABLE 8: ECONOMIC COSTS AND BENEFITS These were not calculated for this project -18- TABLE 9: STATUS OF LEGAL COVENANTS Loan Agree- Cove- Original Revised ment nant Present fulfillment fulfillment l Description Comments Section type Status date date 4.01(a) I C Maintain records and accounts which reflect project operations. resources and expenditures 4.01(b) (1) I C Have above records and accounts for each All audit reports fiscal year audited by independent auditors conducted by the acceptable to the Bank Govemment's Commission on Audits (COA) 4.01(b) (ii) I C Fumish a copy of the audit report to the Audit reports bank no later than nine months after the consistently submitted end of each fiscal year (9/30 each year) with delay 4.01(b) (iii) I C Furnish other information on records, accounts and audits as the Bank may request 4.01(c) (1) I C For all expenditures from the loan account made on the basis of SOEs, the Borrower shall maintain records and accounts of such expenditures in accordance with Section 4.01(a) 4.01(c) (ii) I C For all expenditures from the loan account made on the basis of SOEs. the borrower shall retain all records of expenditures until at least one year after the audit has been received by the Bank 4.01 (c) (iii) I C For all expenditures from the loan account made on the basis of SOEs, the Borrower shall enable the Bank's representatives to examine such records 4.0 1(c) (iv) I C For all expenditures from the loan account made on the basis of SOEs. the Borrower shall ensure that records and accounts referred to in para (b) are included in the annual audiL which must also contain an opinion of the auditors as to the reliability of these records Schedule 5 2 C 12/31/92 Ensure that State universities participating (para 1) in the project will obtain from their respective Boards of Regents approval to charge a special laboratory development fee and a special laboratory tuition fee acceptable to the Bank Schedule 5 2 CP 12/31/92 Cause each university participating in the (para 2) project to establish a satisfactory science and engineering laboratory fund Schedule 5 12 C 05/31/93 Cause all universities participating in the (para 3) project to meet minimum laboratory equipment standards, set by the technical panels for engineering and science education Schedule 5 9 C 08/31/92 date??? Install a system to monitor scholarship Installed as part of (para4) programs at DOST MIS - 19 - Covenant Class: Status: I = Accounts/audits 8 = Indigenous people C = covenant complied with 2 = Financial performance/revenue 9 = Monitoring. review. and reporting CD = complied with after delay generation from beneficiaries 10 = Project implementation not CP = complied with partially 3 = Flow and utilization of project covered by categories 1-9 funds II = Sectoral or cross-sectoral 4 = Counterpart funding budgetary or other resources 5 = Management aspects of the allocation project or executing agency 12 = Sectoral or cross-sectoral policy/ 6 = Environmental covenants regulatory/institutional action 7 = Involuntary resettlement 13 = Other - 20 - TABLE 10: COMPLIANCE WITH OPERATIONAL MANUAL STATEMENTS There was no significant lack of compliance with applicable Operational Manual Statements (OD or OP/BP) -21- TABLE 1 A: BANK RESOURCES: STAFF INPUTS (STAFF WEEKS) FY 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Total Preappraisal 34.2 78.3 1.9 114.4 Appraisal 26.6 11.6 38.2 Negotiations 9.3 9.3 Supervision 19.7 34.4 18.9 17.7 20.3 8.2 11.2 130.4 Completion 8.0 8.0 Total 34.2 104.9 42.5 34.4 18.9 17.7 20.3 8.2 11.2 8.0 300.3 TABLE 11B: BANK RESOURCES: STAFF INPUTS ($'000) FY 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Total Preappraisal 97.1 242.1 6.7 345.9 Appraisal 71.8 37.4 109.2 Negotiations 31.0 31.0 Supervision 63.9 112.2 57.9 56.6 53.7 27.5 41.0 412.8 Completion 24.8 24.8 Total 97.1 313.9 139.0 112.2 57.9 56.6 53.7 27.5 41.0 24.8 923.7 - 22 - TABLE 12: BANK RESOURCES: MISSIONS Performance rating Specialized staff skills Imple- Devel- Saeof project cycle Month/ Number of Days represented /a mentation opment Type of year persons in field status lb objectives problems Ic Identification 10/89 3 1 4 OP/ENG/S&T Preparation 03190 5 1 4 0PIS&T/ENG/FA Appraisal 03/91 4 15 OP/ENG/S&T/AR Negotiations 12/91 Postappraisal 06/91 2 11 EDIAR Board approval 01/92 Signing 02/92 Effectiveness 06/92 Supervision 1 02/92 4 8 TM/S&T/ENG/AR I I Budgetary Supervision 2 07/92 3 12 TM/S&T/ENG I I Budgetary Supervision 3 11/92 3 10 TM/ENG/AR I I Budgetary Supervision 4 03/93 3 13 TM/ED/AR 2 1 Budgetary Supervision 5 05-06/94 2 9 S&T/PD Mid-Term Review 03-04/95 3 12 ED/S&T/AR HS HS Supervision 6 09/95 2 13 S&T/AR HS HS Supervision 7 02-03/96 2 10 ED/S&T HS S Supervision 8 02/97 2 13 TED/ED S S Financial Supervision 9 10-11/97 3 12 TED/ED/AR S S Financial Completion 06/98 2 11 TM/ED S S /a TM: Task Manager; ED: General Education Specialist; TED: Technical Education Specialist; S&T: Science and Technology Education Specialist; ENG:Engineering Education Specialist; AR: Architect; PD: Procurement/Disbursement Specialist; FA: Financial Analyst lb 1: Highly satisfactory; 2: Satisfactory. /c Typical problems included: delays in providing budget allocations and loan withdrawals for taxes. - 23 - ANNEX A ANNEX A: BORROWER'S CONTRIBUTION TO THE ICR The Engineering and Science Education Project (ESEP) of the Department of Science and Technology (DOST) is an important component of DOST's Science and Technology (S&T) Manpower Development Program. It was implemented in cooperation with the Department of Education, Culture and Sports (DECS) and the Commission on Higher Education (CHED). The project was financed by the Philippine Government with support from the World Bank and the Japanese Government. Its main objective was to increase the supply of well-trained S&T manpower in support of technology development for industrialization. Its specific objectives were; (i) to strengthen engineering and science education in priority fields at selected institutions, (ii) to improve science and mathematics education at selected secondary schools, and (iii) to strengthen DOST's capacity to plan, manage and coordinate S&T manpower development programs. Project components included (i) faculty development through local and foreign MSs, PhDs, sandwich programs, post-MS/PhD fellowships, and visiting professorships; (ii) acquisition of books and journals, libraries development and library networking; (iii) acquisition of laboratory equipment; and (iv) upgrading of research laboratories in public and private universities including the construction and upgrading of 110 high school science laboratories. One hundred and fifty four (154) pilot colleges of science and engineering participated in the project. These consisted of 19 colleges of engineering (5 public and 14 private), 10 colleges of science (4 public and 6 private), 110 S&T-oriented public high schools located nationwide, and 22 teacher training institutions. Of the 19 selected engineering colleges, three were developed into flagship engineering institutions. These were the colleges of engineering at the University of the Philippines atDiliman (UPD), De La Salle University (DLSU) and the University of San Carlos (USC). The other 16 colleges were developed into lead institutions in the National Capital Region (NCR) and in Regions I, IV, VI, VIl, X, Xl, and XII. The project was jointly financed by the Philippine Government, the World Bank, and the Japanese Government through the OECF. The Philippine Government financed the local currency components of equipment and construction and part of the local operating costs of the project. The World Bank took care of the foreign currency portions of various project components up to an amount of US$ 61 million while the Japanese Government financed the foreign currency component of equipment procurement and consultancy up to US$ 24 million equivalent. Project institutions provided counterpart funds for the following: salaries of substitute teachers, the cost of installation and or extension of power and water utilities for upgraded laboratories, and other operating costs. -24 - ANNEX A The project was originally planned for implementation over a five-year period that commenced in February 1992. It was agreed at the start of the project that a project mid-term review would be undertaken sometime in the third year of the project, in year 1995, during which proposed reallocations or rescheduling were considered and a revised workplan for the remaining years was agreed upon. A total of 5,891 or 114% of the 5,157 target scholarship slots were filled up, exceeding its target slots by 734. As of June 30, 1998, the project produced a total of 5151 graduates, 4947 of which were in-country while 248 were overseas. Of these, 51 are PhDs, 513 have Masters degrees, 211 are Post-MS/PhDs, 1077 are Certificate/Diploma in Education holders, while 3299 already completed their short-term training programs. There are 81 overseas scholars and 65 in-country scholars or a total of 740 who have yet to complete their studies. A total of 319 staff-months of consultancy and visiting professorships were earmarked for the project. Some 247.75 staff-months or approximately 78% of the target had been used. The project earmarked 1,268 items of equipment for both World Bank-funded and OECF-funded equipment. A total of 1,231 items or 97.8% have been delivered and installed in laboratories all over the country. Books and library materials totaling 72,296 titles and 569 journal titles or 100% of the target were delivered to the institutions concerned. Eight (8) libraries of seven (7) flagship universities for both science and engineering are now electronically linked. To assist management in the monitoring and implementation of ESEP, six (6) various database systems were developed, networked, and the staff concerned were trained on their operation and usage. These were: 1) Scholarship Monitoring System (SCOLM), 2) Graduate Information System (GIS), 3) Staff Appraisal Report System (SARS), 4) Financial Management Information System (FMIS), 5) Library Materials Procurement System (LIBPC), and 6) Bidder's Module (SUM96). All systems were developed by the ESEP-MIS Unit except for the FMIS and SUM96 which were procured from Development Bank of the Philippines - Data Center Inc. (DBP-DCI) and Linesman, Ltd., respectively. All 110 targeted high school laboratories were established and all the 23 laboratories in tertiary institutions were upgraded representing 100% of targets met. These are all funded by World Bank Loan 3435-PH. In addition, 6 of 7 laboratories in tertiary institutions (SUCs) funded through the GOP were upgraded. The remaining laboratory (UPLB) is 30% complete as of June 1998 and will be completed by the end of September 1998. -25 - ANNEX A School Performance 1.0 Engineering Education Among the objectives of ESEP were to increase enrollment in the priority fields but not to exceed 20 percent, increase survival and completion rates, reduce dropout rates, increase faculty-student ratio, improve faculty profile, reduce teaching loads, reduce the number of years needed to graduate, and develop academe linkages with industry. Overall engineering enrollments were expected to remain unchanged as the projected increase would be offset by a decline in enrollments in both civil and geodetic engineering, fields with an oversupply of graduates. It was projected that the percentage of engineering faculty with graduate degrees would be about forty percent (40%) by the end of the Project. Enrollment The overall undergraduate enrollment in the priority fields supported by ESEP in the 19 network schools for SY 1997-1998 of 21,614 represented a 12.18 percent increase over that of the SY 1991-1992 enrollment data of 19,267 before ESEP implementation. The BS total enrollment at the end of the project is still within the targeted rate of increase of not more than 20 percent. The MS/PhD total enrollment of 381 in SY 1997-1998 in the flagship schools (UP & DLSU) exceeded the targeted 250 by 52.40 percent at the end of the project. An increase was noted in SY 1997-1998 for all fields of specialization ranging from 78.3 percent (ME/MfgE) to 720.0 percent (MatE), except in EE which registered a decrease of 18.03 percent. Dropout Rate The freshmen dropout rate in all fields in SY 1991-1992 ranged from 0.88 (EE) to as high as 16.48 (ECE/CompE). Freshmen dropout rates for SY 1996-1997 in all fields ranged from 4.21 (ECE) to 7.55 (MatE). In the fields ofChE (0.69) and ME (8.89), however, negative dropout rates were obtained, signifying an increase in the size of the batch that started schooling in SY 1996-1997. The increase was due to the lateral entry of students into these two fields. The average freshmen dropout rate for SY 1996-1997 was recorded at 2.29 percent while that of SY 1991- 1992 was at 11.02 or a reduction of 8.73 percent. No. of Years Taken for Graduation (MS, PhD) The ideal length of time that should be spent in finishing the MS program is two (2) years while the PhD program is four (4) years. At the end of the project the no. of years taken for graduation for MS registered an average of 3 years. An -26- ANNEX A improvement was noted as the base data is 4 years. For thePhD there was no change, still for 5 years. Size of Faculty There was an increase in the number of full time equivalent (FTE) faculty in the 19 network schools in four fields and a decrease in two from SY 1991-1992 to SY 1997-1998. The increase in faculty in the four fields ranged from 2.00 percent (MatE) to 28.46 percent (Comp/ECE). There was a slight decrease of 2.06 percent in ChE faculty and a much higher decrease of 20.09 percent in the EE faculty. All fields exceeded the targeted number of FTE faculty except EE which could be attributed to faculty who are still on study leave. It should be noted that a total of forty-one faculty members from the network schools are on study leave and are expected to be back in their teaching posts before the end of SY 1998-1999. The distribution of these faculty on study leave by field of specialization are 41 inChE, 7 in EE, 6 in ME, 4 in IE, 2 in MatE (Ceramics), and 1 in ECE. Faculty-Student Ratio All fields showed an improved total average faculty-student ratio from SY 1991-1992 to SY 1997-1998 except in the fields of EE and MatE. EE decreased from 1:23 in SY 1991-1992 to 1:27 in SY 1997-1998 but was still within the targeted 1:30 ratio. All fields met their respective targets except for IE and MatE. Although there was an increases in the number of FTE faculty in these fields, the increases of 12.57 percent (IE) and 2.00 percent (MatE) did not correspond with the increase of enrollment in SY 1997-1998. Educational Qualifications The percentage of faculty with MS/PhD degrees who were actively teaching increased in all fields ranging from 6.33 percent (ECE/CompE) to a high of 61.29 percent (IE) except for EE which registered a decrease of 7.84 percent. The decrease in percentage of EE faculty may be attributed to the sending of scholars to pursue their PhDs. The fields of ChE and IE exceeded their targets by 2 percent and 9 percent, respectively. While the rest of the fields did not meet their respective targets, the percentages of faculty with MS/PhD degrees are close to targets, and will most likely reach targeted levels once the 41 scholars return to complement the current teaching force by SY 1999-2000. It should be noted that the data submitted by the 19 network schools on their faculty with MS/PhD units (minimum of 3-9 units) show that 90 have completed their coursework (74 FT, 16 PT), 39 are scheduled to take the comprehensive examinations, while 51 are working on thesis leading to their MS degrees. Fifty- four (54) have completed more than 24 units, 33 have completed 12-21 units while 26 have completed 3-9 units leading to heir MS degrees. Also, 36 faculty -27- ANNEX A members currently teaching have units credited to their PhD programs (9 working on dissertation, 12 completed more than 24 units, 8 completed 12-21 units while 7 have completed 3-9 units). Weekly Hours of Instruction Seven (7) out of the 19 network schools reported that the teaching load of most of their full-time faculty ranged from 24 to 27, six at 18-21 hours, three at 12-15, and three at 30 hours per week. At the two flagship schools (UP & DLSU), the regular faculty loading was 12 hours per week. Establishment of the Industry-Academe Linkage Program in the Nineteen (19) ESEP Network Member Schools Thirteen network schools namely: UPD, USC, XU, AdU, DLSU, RTC, UE, TUP, UST, MIT, PBMIT, AdDU and CPU have established formal linkages with industry, while the six (MSU-IIT, DBTC, UNOR, SLU, UM, SU) have existing but informal linkages with industry. 2.0 Science Education Enrollment The BS enrolment for SY 1997-98 was 6,897, higher that the baseline figure of 5,327. Notably, enrolment for each field increased. Biology registered a significant increase with a total of 1,798 compared to the enrolment in SY 1991- 92 (1,317). Student population in Chemistry (1,357) almost doubled in size compared to that in SY 1991-92 which was 798. However, current enrolment in Physics decreased to half at 196 against that in SY 1991-92 which registered 431. The enrolment for Math/Statistics did not change much but there was a dramatic increase in Earth Science, enrolment from 51 in SY 1991-92 to 226 in SY 1997-98. Among the six fields, Computer Science had registered the highest enrolment at 2,181 constituting 32% of the BS enrollees. M.S./Ph.D. enrolment for all fields increased to 1,698, as of SY 1997-98, almost two-fold of what is was in 1991-92. Biology registered the highest enrolment at 459, or 27% of MS enrollees in 1997-98. Current enrolment figures in Computer Science (270) and Earth Science (185) are more than double the baseline data of 112 and 61, respectively. Drop-out Rate Freshmen drop-out rate in SY 1991-92 ranged from 0 (Biology) to 0.22 - 28 - ANNEX A (Math/Statistics). Current data shows that only Physics marked a negative drop- out rate at (0.46). This means a greater number of students entering the program laterally, compared to those leaving the first year. No. of Years Taken for Graduation (MS and Ph.D.) The ideal length of time that should be spent in completing the MS program is two (2) years while the Ph.D. program is four (4) years (as submitted by each network school for science). However, as of 30 June 1998 only two Ph.D. scholars from Batch 1994 and another scholar from Batch 1995 completed their degree on time while most MS scholars completed the program in three years. SIZE OF FACULTY Only faculty members currently/actively teaching were included in the survey. The full time equivalent used for part time faculty members is 0.5. The number of faculty increase from 593 in 1991-92 to 834.5 in 1997-98, an increase of 40% As of SY 1997-98 the total number of faculty with MS and Ph.D. degrees has reached 574.0, higher than the baseline of 393, but less than the target of 712. Those with MS/Ph.D. degrees comprise 67.5% of the faculty, not much higher than what is was in 1991-92 (66.4%), and definitely falls short of 78.5%. However, the faculty profile is expected to improve significantly when those pursuing MS/Ph.D degrees will go back to their teaching posts in the next two years. There are fields, however, where there have been two to five-fold increase in the number of faculty with MS/Ph.D. degrees, notably: Physics (from 28 to 77.5) Math/Stat (from 37 to 168.5) and Earth Science (from 10 to 51). Faculty-Student Ratio All fields showed an improved total average faculty-student ratio from SY 1991 through 1997 in the six network schools. Only Earth Science has to improve on its FS ratio of 1:07 against a target of 1:05. Biology and Computer Science showed remarkable improvements of 1:15 against a target of 1:24 and 1:28 vs. a target of 1:55, respectively. Weekly Hours of Instruction Five (5) of the flagship schools (MSU-IIT, UPD, UPLB, UPM and UST) reported that the regular teaching load of their full-time faculty ranges from 9 to 12 units at 15-18 hours, while two (ADMU, DLSU) reported faculty loads of 12-21 units requiring 15-18 hours of classes per week. -29- ANNEX A 3.0 Secondary Science Education Enrollment The BSE/BSEEd total enrolment in the 20 node institutions increased annually from SY 1991-1992 to SY 1997-1998. There is also a positive growth rate noted in the MSTIMAT/ and Ph.D enrolment. Drop-out Rate The drop-out rate was based on the total enrolment of the 3rd and 4h year students in SY 1991-1992 to SY 1997-1998 and not in first and second year as indicated in the SAR. There was no drop-out noted for all batches. Size of Faculty There was a gradual increase in the number of full time equivalent faculty in the 20 node institutions from SY 1991-992 to SY 1997-1998. Only in SY 1993-1994 showed a negative growth rate of -1.66%. Out of the total faculty, an average of 5.55% are on study leave from SY 1991- 1992 to SY 1996-1997. Faculty Student Ratio All fields need to improve its Faculty Student Ratio with an average of !:40 against the targeted FSR of 1:33. Linkages The SEI has maintained linkages with the DECS-Bureau of Secondary Education (DECS-BSE) and principals of the 110 S & T-oriented High Schools and tertiary institutions. SEI and BSE-DECS jointly spearheaded the Annual Conference of Principals. This activity served as a venue for presenting the status of each of the components of the project. Problems encountered during the implementation phase were also discussed. For proper implementation of the program, several DECS Memoranda were issued and disseminated to these schools. Project Cost, Financing and Disbursements Actual disbursements made by the World Bank were US$ 55.62 million or 91.2% of the US$ 61 million loan. Actual disbursements made by OECF were Yen 2,903.22 million or 95.03% of the Yen 3,055 million loan. Overall, the project has accomplished 98.12% of its target. - 30- ANNEX A Lessons Learned and Recommendations Except for delayed implementation of some of the components in the early phase of the project, the overall accomplishment was very satisfactory. Minor implementation setbacks were traced as follows: * The basic problem during the first two years of implementation was budgetary constraints. The project was not given an adequate budget in the first two years of implementation that resulted to delayed implementation of some of the components. It was only during the third year of implementation when the project started receiving full appropriations from the national government. * The second reason had to do with difficulty of filling up the targeted scholarship slots. Institutions could not send the planned number of faculty to be trained within the five-year period for the simple reason that too many faculty members on leave at the same time period would pose insurmountable difficulties such as overloading of remaining faculty members, which could lead to a general deterioration in the quality of instruction. * A third reason was related to the organizational and logistical requirements of implementing the first DOST manpower development project of this magnitude. Because of the above-mentioned difficulties encountered during the first two years of implementation, a proposed rescheduling of implementation of project components, proposed reallocations of government and World Bank loan funding, and the proposed extension of implementation period was submitted to concerned Philippine government agencies (NEDA, DOF, and DBM) and the World Bank. It should be noted that the reallocation and rescheduling of scholarship slots did not increase or decrease funding for the loan category. The proposed reallocation and rescheduling of scholarship slots had been approved, but not the proposed two-year extension. The Bank only approved a one-year extension. The Project was carried out well inspite of these constraints. Another basic lesson learned involved the management of the Project at the participating institutions level. Constant turnover of administrators and staff in-charge of the Project at the participating institutions affected the fluidity of operations. Future project designs should provide for continuity of Project Management Staff. If this could not be avoided, proper turnover would be necessary to spare the implementing agency the unnecessary hassle of orienting new staff. The availability of systematic records at their level would be very useful in case there are sudden changes in the project staff. With regards to project implementation at the secondary science education level, the following points were raised: * DECS standard operating procedures usually delayed the processing of papers for implementation of the project. Papers should therefore be given to DECS as early as possible to provide enough lead time for the processing of papers * The many steps that communications take to reach its ultimate recipient (i.e. school - 31- ANNEX A principals or teachers) slows down the flow and pace of communication by which the number of 'steps" a communication goes through be lessened or minimized. Decisions in the field would always require the approval of DECS top officials, e.g., the issuance of DECS Memoranda. A mechanism to fast-trackissuances like these (i.e. signing and releasing) should be set in place to minimize delays in the implementation of projects. Finally, an important lesson has been learned from the monitoring of scholars at the training institutions. As a counterpart of the training institutions, a coordinating office should be created to handle the monitoring of the scholars. The coordinating office should be capable of providing updates and regular feedback on the scholars. - 32 - ANNEX B ANNEX B: ICR MISSION'S AIDE MEMOIRE - 33 - REPUBLIC OF THE PHILIPPINES Engineering and Science Education Project Loan 3435-PH IBRD PROJECT COMPLETION MISSION June 7-19, 1998 Review Period Number 13 AIDE-MEMOIRE '/ 1. A World Bank mission conducted by Mr. William Cooper (Technical Educator), assisted by Ms. M. Bilicario (Consultant), visited the Republic of the Philippines from June 7 to 19, 1998. Ms. Omporn Regel, Task Manager, on mission in Manila on other business, participated in the mission's work and attended the wrap-up meeting, which was held on June 17, 1998, with participation of members of the Project Advisory Group and representatives of the participating universities. The purpose of the mission was to conduct a final review of the status of implementation of the Engineering and Science Education Project (Loan 3435-PH) before the scheduled loan closing date of June 30, 1998, and to collect the documentation needed to prepare the Bank's Implementation Completion Report (ICR). 2. The mission is pleased to acknowledge receipt of up-to-date progress reports and related documents from the Department of Science and Technology (DOST). and wishes to express its appreciation for the kind assistance and hospitality provided by DOST. A. Status of Implementation 3. Implementation progress through this final review period has been satisfactory. As reported by DOST, the rate of project completion by major invesunent activitv as of May 31, 1998, is as follows: Equipment 98.2% Books, journals, library materials 99.9% Civil works 97.3% Training 113.0% Visiting professors and consultants 78.0% Management and supervision 100% 4. Procurement. With all equipment procurement completed and a few minor construction works nearing completion, no ICB or NCB tenders were reviewed by the mission. Some equipment deliveries made in 1995 need minor rectifications which the suppliers have committed to undertake. I/ This aide memoire is subject to review and modification by the management of the World Bank. - 34 - 5. Disbursements. Disbursements from the loan account as of May 31, 1998, were US 55.54 million, in line with projections made during the previous review mission. It is expected that, when the loan account is finally closed, total disbursements will reach about USS58.5 million or 96% of the US$ 61.0 million loan. Some underspending is expected in the training category (US$1.8 million) and the visiting professors category (US$ 1.1 million), while some minor overspending may occur in other disbursement categories. The final undisbursed loan balance is estimated to be about US$2.5 million, and would be canceled. Given the small amounts involved, there is no need to reallocate funds from one category to another: minor over- or under-runs will be adjusted by the Bank in the final reconciliation of the loan account. 6. The tax issue raised in the previous aide-memoire needs to be tackled and resolved before the loan accounts can be closed. At the wrap-up meeting. it was a,greed that DOST will examine all withdrawal applications submitted to the Bank in order to determine the extent of the Government's tax liability, essentially following the format used in the random sample submitted earlier. The data would be verified by COA and a final audited statement would be submitted to the World Bank's Resident Mission. Manila. no later than Julv 31. 1998. Once the final figures are available. the mechanism of reimbursement to the Bank (deductions from fiuture withdrawai applications. or refund bv the Govemnent) wvill be decided. in consuitation with the Resident Mtission which remains available for advice and assistance in this matter 7. OECF cofinancing of 3.055 million Yen (about US$24 million: an equivalent amount was canceled from the Bank loan), used mainly to finance the purchase of laboratorv equipment for the 110 project-supported secondarv schools is almost fully disbursed (94%). 8. Grace Period. The World Bank has agreed to a four-month grace period to October 31, 1998, to allow for the processing of disbursement applications for 'eligible expenditures" (i.e. expenditures for goods and services delivered before the June 30. 1998 closing date). It is noted that expenditures for goods and/or services delivered after the June 30. 1998 closing date do not qualifv as eligible expenditures. 9. Audits. The mission was informed that the Commission on Audits (COA) is in the process of completing the FY97 audit of project records and accounts. This audit should be submitted to the Bank no later than September 30, 1998. Even though the project will be closed on June 30, 1998. a final audit covering FY98 is due no later than September 30, 1999. 10. Compliance with Credit Covenants. The mission reviewed the status of covenants in the Credit Agreement and found that the Government was in compliance. 11. Project Management. The project implementation and coordination office (PICO) in DOST continues to be adequatelv staffed and budgeted to complete the implementation of the project. As in the past, the project is being implemented in a satisfactorv to highly satisfactory manner. - 35 - B. Preliminary Assessment of Project Outcomes 12. Performance Indicators. The project's performance indicators, revised during the previous review mission from those contained in the SAR, were updated as of May 31, 1998. They confirm that the main objectives of the project will have been achieved by the loan closing date. Some specific programs such as overseas fellowships will extend bevond the closing date but this delay will have little impact on the overall achievement of objectives. 13. Engineering and Science Education. The objectives of this component were to strengthen engineering and science education at 19 engineering colleges and 10 colleges of science, respectively; adjust enrollment structures to better respond to manpower needs; improve the curricula and upgrade educational quality; and strengthen financial and resource management. Available data suggest that these objectives have been largely achieved. 14. Engineering Education. Enrollments in priority engineering fields (those supported by the project) at the undergraduate level appear to have increased approximately as planned (20% over 1990/91 base line enrollments). v,ith final data still being collected. Total underaraduate enrollment in the 19 engineering colleges has reached about 64.000. with about 18.000 in the fields supported by the project. This is in line with SAR targets. At the graduate level, enrollments have increased to about 2% of undergraduate enrollment, as planned. An aggressive faculty development program of both graduate and non-degree courses is still underway. To date, about 350 staff out of 800 planned have completed graduate training and the program is expected to be fully completed by the year 2000 (with Government financing bevond June 30. 1998). At the certificate level, 1,300 staff have completed short-term in-country training programs, as planned. Industry-academe linkages have been established in 13 of the 19 member schools: the remaining schools are in the process of setting them up. Laboratory facilities at all 19 institutions have been upgraded as planned. These are all operational; their maintenance and operating costs are being financed. in part, by laboratory use fees. 15. Science Education and Research. Similar progress has been made in the colleges of science. Enrollments have increased, with final data still being collected and processed. Partial data indicate there is a definite shift toward the applied sciences. information technology and environmental sciences, as envisaged. More than 500 facultv have attended (some still are attending) graduate programs in-country, of whom about 175 have obtained MS or PhD degrees. The entire programn is expected to be completed in 1999. The target of 70% of faculty with graduate degrees is being approached. As for teaching facilities, laboratories have been renovated and equipped as planned. 16. Management of Technology. The objective of this component was to introduce graduate- level and short-term courses in the management of technology in three flagship institutions (Asian Institute of Management DeLaSalle University and Universitv of the Philippines). This objective appears close to being fully achieved. About 40 elective and seminar courses in five areas of MOT specialization have been developed and introduced in the three institutions; MOT-related case studies have been developed; books and joumals have been acquired; five staff have received fellowships for graduate-level trining in MOT specializations (two have completed); eight staff - 36 - have attended short-term MOT training programs; and a Technology Management Center has been established at the University of the Philippines. 17. Library Networks. This component was designed to expand the reference book and joumal collections of seven science and three engineering colleges; to network the expanded libraries; and to train staff in the application of information technologv. To date, over 72,000 reference books and about 570 titles of journals have been procured and distributed; computer systems have been set up in the participating institutions and networked: and more than 330 staff have been trained. In addition, librarv facilities have been upgraded as required. The participating colleges have committed to making provision in their operating budgets to continue the journal subscriptions beyond June 30, 1998. 18. Science and Mathematics in Secondary Schools. The objective of this component was to improve the quality of instruction in physics. chemistry and biology through the construction or upgrading of science laboratories at 110 selected schools. the provision of laboratory equipment (financed by OECF). and the upgrading of science teachers. To date. 107 secondary school science facilities have been constructed. equipped and placed into operation. while the three remaining laboratorv buildings are in the final stages of completion. The science teacher upgrading program, started in 1992. has been quite successful. About 1.077 teachers went through the certificate program versus 837 planned at appraisal, about 35% over target. Also as agreed at appraisal, a longitudinal study to measure the impact of the science and math enrichment courses introduced in the participating high schools was launched in 1994. Preliminary results indicate a marked improvement in examination results for mathematics and sciences (as well as English). The impact study will be continued for a few more years to validate the results obtained so far. 19. In-service Science Teacher Training. Associated with the above program, the project provided science teaching facilities at so-called "nodal" institutions for the in-service training of secondarv school science and math teachers, as well as fellowships for teacher trainers associated with these institutions. This program has been implemented as planned. About 30 science teaching labs were set up at 12 regional science teaching centers and 10 teacher training colleges, and 47 teacher trainers obtained Master's degrees in mathematics and science teaching (versus 50 as per SAR). 20. Manpower Planning and Monitoring (MIS). This component's objective was to strengthen DOST's management information system (MIS) so as to improve its planning and administration of S&T manpower and R&D development programs. Most of the originally planned activities have been completed and the following MIS components have been developed and put into operation: a scholarship monitoring system, a library materials procurement system, a procurement financial system, a graduate information svstem. a staff appraisal reporting system and a payroll system. These systems are fully networked. The installation of a financial management system is nearing completion. Associated hardware and software has been upgraded as needed and staff have been trained in the use of the upgraded MIS system. There are no remaining issues with this component which is expected to be fully implemented by the loan closing date. - 37 - ANNEX C ANNEX C: PROJECT-SUPPORTED INSTITUTIONS Flagship Schools 1. University of the Philippines at Los Banos 2. University of the Philippines in Diliman 3. Atteneo de Manila University 4. De La Salle University 5. University of the Philippines (Manila) 6. University of Santo Tomas 7. Mindanao State University - Iligan Institute of Technology Engineering Intermediate Schools 1. Xavier University 2. Mindanao State University - Iligan Institute of Technology 3. Central Philippines University 4. Saint Louis University 5. University of Santo Tomas 6. Atteneo de Davao University 7. De La Salle University 8. Adamson University 9. Technological University of the Philippines 10. University of the Philippines in Diliman 11. Pablo Borbon Memorial Institute of Technology 12. University of San Carlos 13. University of Mindanao 14. Don Bosco Technical College 15. University of the East 16. Mapua Institute of Technology 17. Rizal Technical College 18. University of Negros Occidental - Recoletos 19. Siliman University - 38 - ANNEX C Tertiary Node Institutions (Regional Science Teacher Centers) Construction of Lab Building and Equipment Grant 1. University of the Philippines at Baquio 2. Cagayan State University 3. Philippine Normal University 4. Western Mindanao State University Equipment Grant Only 1. St. Louis University 2. Mariano Marcos State University 3. Bicol University 4. University of the Philippines - Visayas 5. Western Visayas State University 6. University of San Carlos 7. Xavier University 8. Ateneo De Davao University 9. Notre Dame of Marbel University 10. St. Mary's University 11. University of Eastern Philippines 12. Ateneo de Zamboanga University 13. Aquinas University