ICRR 10579
                                                                                               Report Number : ICRR10579
                   ICR Review
                   Operations Evaluation Department


1. Project Data :                                       Date Posted : 06/06/2000
             PROJ ID :             OEDID : C2309
                        P001362 OEDID:                                     Appraisal                       Actual
        Project Name :  Universities Project                   US$M )
                                               Project Costs (US$M)                    61                               57
              Country : Kenya                    Loan/         US$M )
                                                 Loan /Credit (US$M)                   55                             46.3
  Sector, Major Sect .: Higher Education ,                     US$M )
                                                 Cofinancing (US$M)                     0                                0
                        Education
         L/C Number : C2309
                                                                 FY )
                                                 Board Approval (FY)                                                  92
    Partners involved :                                 Closing Date           12/30/1996                     04/30/1999

Prepared by :             Reviewed by :          Group Manager :            Group :
Helen Abadzi                                     Gregory K. Ingram          OEDST

2. Project Objectives and Components
 a. Objectives
 (a) Rationalizing and strengthening the institutional framework for higher education in the private and public sectors;
(b) limiting the growth of the borrowers budgetary resources devoted to public universities; (c) improving the quality
of teaching and resarch at the public universities .
 b. Components
 (a) Strengthening the institutional framework, (b) university financing, (c) quality of teaching and research, (d)
primary teacher training institute completion . The project financed many civil works, scientific equipment, library
materials, consultant services, and staff training for the country's public universities and six teacher training colleges
(unfinished from the 6th primary education project) in hopes of achieving greater financial cost effectiveness in higher
education.
 c. Comments on Project Cost, Financing and Dates
 The project was completed 2.5 years after expected date . All funds were disbursed.

3. Achievement of Relevant Objectives :
There were no indicators of development objectives, so assessment of achievements has been difficult . However,
achievement of all objectives has been partial . None were fully achieved, including the main goal to limit the growth
of the government budget devoted to higher education . Many civil works were not completed, partly due to a lack of
government counterpart funds .

4. Significant Outcomes /Impacts :
Positive aspects include the receipt and utilization of computers, science, and engineering equipment and library
materials; the institutional innovation represented by the Higher Education Loans Board to improve student loan
recovery; greater coordination of public universities by the Commission for Higher Education and the creation of a
culture of planning; the establishment of cost -sharing, and applied research projects to help stimulate faculty
professional development. Three significant studies on the labor market, private universities, and students'
socioeconomic issues were completed (albeit with delays) and will be publicized in the future .

5. Significant Shortcomings (including non -compliance with safeguard policies ):
Shortcomings include the lack of revision of the legal framework, the dropping of some of the planned tenders, and
the continued unsatisfactory financial condition of the public universities . Lack of counterpart funds often caused
lengthy delays in paying contractors and was a cause for work stoppages . The performance of the project
implementation unit was unsatisfactory .


6. Ratings :              ICR                      OED Review                Reason for Disagreement /Comments
               Outcome : Unsatisfactory            Unsatisfactory
     Institutional Dev .: Partial                  Negligible                Very few systemic changes were
                                                                             accomplished in financed instittutions
        Sustainability : Uncertain                 Uncertain
   Bank Performance : Satisfactory                 Satisfactory
      Borrower Perf .: Deficient                   Unsatisfactory
       Quality of ICR :                            Exemplary


7. Lessons of Broad Applicability :
(a) Placing procurement and accounting responsibility in a multi -project implementation unit diminishes focus and
lower accountability to stakeholders; (b) monitorable indicators are needed to track development objectives; (c)
procurement and financial management capacity should be assessed thoroughly at appraisal; (d) institutional
continuity and memory are important factors for successful implementation; (e) lending operations in support of
universities should investigate at appraisal the structure of revenues and expenditures of the beneficiary institutions .

8. Audit Recommended?         Yes     No

9. Comments on Quality of ICR :
This was an unusually frank and thoroughly explanatory ICR .