Document of The World Bank FOR OFmFC[AL USE ONLY ca'. /?z¸V-C&4 Report No. P-4418-COM REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 7.0 MILLION TO THE FEDERAL ISLAMIC REPUBLIC OF THE COMOROS FOR A SECOND EDUCATION PROJECT December 23, 1986 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its conoents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit: Comorian Franc (CF) US$ 1.00 - CF 380 CF 100 - US$ 0.263 ABBREVIATIONS AND ACRONYMS AfDF = African Development Fund BEPE = Education Pro4ect Implementation Unit/ Bureau d'Ex6cution des Projets d'Education DEPE = Directorate for Pre-Primary and Primary Education/ Direction de l'Enseignement Pr*-ElImentaire et EI&mentaire DESGT = Directorate for General and Technical Secondary Education/ Direction de l'Enseignement Secondaire GenAral et Technique DFPT = Directorate for Vocational and Technical Training/Direction de la Formation Professionnelle et Technique ENI = Primary Teacher Training College/ Ecole Normale d'Instituteurs ENES = National School for Higher Education/ Ecole Nationale d'Enseignement SupErieur ILO = International Labor Organization INE = National Institute of Education/ Institut National d'Education MEN = Ministry of National Education, Culture, Youth and Sports/ Ministare de l'Education Nationale, de la Culture, de la Jeunesse et des Sports UNDP = United Nations Development Program UNIDO = United Nations Industrial Developmenc Organization UNCDF = United Nations Capital Development Fund ACADEMIC YEAR Primary, Secondary, Technical : October 1 - June 30 Teacher Training, Higher Education: October 15 - June 15 FISCAL YEAR January 1 - December 31 FOR OFFICIAL USE ONLY FEDERAL ISLAMIC REPUBLIC OF THE COMOROS SECOND EDUCATION PROJECT CREDIT AND PROJECT SUMMARY Borrower: Federal Islamic Republic of the Comoros Beneficiary: Ministry of Education, Culture, Youth and Sports (MEN) Credit Amount: SDR 7.0 million (US$7.9 million equivalent) Terms: Standard IDA terms Project Description: Objectives: The project would assist the Government in increasing the efficiency of the education system and its relevance to socio-economic needs. Specifically, it would: (a) strengthen the capacity of the Government to plan, administer and manage the education sector; Cb) improve the quality of education through teacher training and provision of learning materials; and Cc) train middle-level technicians and skilled workers for industry, business and management. Components: (a) Institutional development -- Strengthening of the planning and management capacity in MEN through technical assistance, fellowships, local seminars and training sessions, and studies on key issues; (b) Quality improvement - Upgrading the skills of about 2,000 primary school teachers and about 350 lower secondary teachers by providing an integrated training program of correspondence courses, seminars, on-the-job support by education advisers, and preparation and distribution of teacher guides and student textbooks; (c) Manpower development - Establishment of a National Center for Technical Education and Vocational Training at Ouani to train skilled workers for industry, and establishment of a new business school at Moroni to train office clerks, accountants and secretaries. Benefits: The project would enhance the capacity of Government to effectively use available re;ources in the education sector by strengthening management and planning, improving This docurnenthas a restricted distribution and may be usedby recipients only in the perforrnance| of their official duties. tscontents may not otherwise be disclosed without World Bank authorization.| - li - educational quality and producing adequate numbers of skilled workers for industry, and middle-level employees for business and management. In the long term, as a result of the institutional development to be promoted by the project, the education authorities are expected to have the capacity to carry out integrated sectoral planning and to optilmize the use of physical and teaching resources in the education and training sector. Managerial improvements are expected to reduce Government's recurrent expenditures in the sector. Risks: The project has three types of risk, closely associated with the problem of sustainability. The first concerns the Government's financial constraints. To address this problem, the project has been designed to minimize recurrent costs and is limited to existing activities, which would be improved and strengthened. The second risk concerns the ability of the Government to implement and operate the project in an adequate manner. To overcome this risk, the project includes elements to strengthen the organizational units responsible for education planning, administration, teacher training and project implementation. The third risk is that the quality improvement objectives and the production of skilled workers may be endangered if the current number of existing qualified expatriate technical staff is not maintained. To reduce this risk, the Government has confirmed that in its future bilateral arrangements with France and Belgium, priority will be given to the five-year extension of technical assistance needed for the project. Estimated Project Costs: Local Foreign Total -US$ million-- Institutional Development: Administration and Education Planning 0.1 0.4 0.5 Quality Improvement: Primary Level 1.1 0.9 2.0 Lower Secondary Level - 0.3 0.3 Hanpower Development: Training for the Industrial Sector 0.3 1.8 2.1 Training for Business and Management 0.4 0.8 1.2 Sector Project Administration: 0.1 0.3 0.4 Total Base Costs 2.0 4.5 6.5 Physical Contingencies 0.2 0.5 0.7 Price Contingencies 0.5 1.1 1.6 Total Project Costs (net of taxes) 2.7 6.1 8.8 Financing Plan: Local Foreian Total ----US$ million---- IDA 1.8 6.1 7.9 Government 0.9 - 0.9 Total 2.7 6.1 8.8 Estimated IDA Disbursements: IDA Fiscal Year: 1987 1988 1989 1990 1991 1992 ------US$ million----- Annual 0.6 1.4 1.9 1.8 1.1 1.1 Cumulative 0.6 2;0 3.9 5.7 6.8 7.9 Economic Rate of Return: Not applicable. Staff Appraisal Report: No. 6039 COM. Mja: IBRD No. 19520 INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE FEDERAL ISLAMIC REPUBLIC OF THE COMOROS FOR A SECOND EDUCATION PROJECT 1. I submit the following report and recommendation on a proposed development credit to the Federal Islamic Republic of the Comoros for an amount of SDR 7.0 million (US$7.9 million equivalent) on standard IDA terms to help finance a Second Education Project. PART I - THE ECONOMY 2. A report entitled "The Comoros - Current Economic Situation and Prospects" was distributed to the Executive Directors in March 1983. Since then, informal working papers have been prepared on public investment and other development policy issues for use in a seminar in the Comoros and for policy discussions with the Government in February 1986. The following section is based on the outcome of the February mission. A full economic mission is planned for December 1986. CouLntry data sheets are provided in Annex I .o this report. Salient Features 3. The Federal Islamic Republic of Comoros became independent from France in 1975 as a result of a unilateral proclamation by the Comorian Parliament. With a population of about 390,000 inhabitants and a GNP per capita of about $250, the Comoros is among the least developed countries in the world. The population density of around 180 inhabitants per square kilometer is one of the highest in the Eastern and Southern Africa Region. The high population growth of over 3 percent per year has created serious problems of soil erosion and unemployment. The Comoros is physically isolated and has very limited natural resources. Moreover, the shortage of trained personnel has led to a heavy reliance on expatriate staff. Health conditions are poor and malnutrition is widespread. Life expectancy is 48 years and the infant mortality rate is high. 4. The Comoros' economy is predominantly rural and highly dependent on external aid. Between 80 percent and 90 percent of the population is dependent on agriculture, which contributes 40 percent of GDP and provides virtually all exports. The major export crops are vanilla, cloves, and ylang-ylang. Vanilla and ylang-ylang have faced severe competition from synthetic substitutes. Food production has not kept pace with population growth and food imports have been increasing steadily. Industry contributes less than 5 percent of GDP and consists predominantly of the processing of export crops and a few small factories servicing the domestic market. Tourism is hardly developed aithough there is some potential. The transport system has been improved owing to the completion of a number of important projects in 1985; however, inter-island shipping is still very inadequate. 5. The Comoros faces a formidable set of constraints to its economic development. Some of these constraints, such as the lack of natural resources and the scarcity of trained manpower, are physical, and the problems associated with them are not by their nature susceptible to rapid solution. The country is still a very new nation with new political as well as economic institutions which will require time to stabilize and to foster economic development. However, the Government has recently shown increasing awareness and understanding of the nature and extent of the country's economic problems, and in some areas has taken actions to address the problems (para. 12). In April 1985, Government organised a seminar with Bank staff support in Fomboni (Comoros) where a number of reform proposals were discussed by a group of civil servants. Recent Economic Developments: A State of Financial Crisis 6. The Comoros' gross domestic product grew on average at about 4.4 percent a year during the period 1981-1985. A substantial part of this growth was in the services sector (commerce, transport) and in construction, and was the direct result of the execution of investment projects. Gross investment went up from 26 percent of GDP in 1981 to 40 percent in 1984 as road and port construction and the implementation of other projects under the Interim Plan (1983-86) peaked. When activity on these projects tapered off in 1985, the investment rate dropped to 27 percent of GDP. Growth in agricultural output was slow, lower than the growth of population. The pressure of population in the rural sector is causing widespread soil and environmental deterioration; this is a serious problem since cultivable land is the only valuable natural resource in the Comoros. Therefore, a program of orpulation control and measures to combat deforestation and soil erosion fundamental to any effort to improve the economic situation of the Comoria- people in the long run. The Government recognizes these problems and, with support from donors, has started to implement programs of family planning and of land resource conservation. 7. Despite considerable external support for the budget (27 percent of GDP), the fiscal situation has deteriorated sharply due to recent declines in budgetary revenues and significant increases in total expenditures. The overall budget deficit, excluding grants, was estimated to be as high as 48 percent of GDP in 1985 against 33 percent in 1981 (if grants were included, the deficit in 1985 accounted for about 20 percent of GDP). In 1986, budgetary revenues are projected to increase by 8 percent while total expenditures are projected to decline by about 6 percent; this would lead to an improvement in the fiscal situation. The chronic shortage of funds has resulted in arrears in payments on internal and external debt, delays in meeting civil servants' salaries, and continual shortfalls in allocations of local funds for the execution and operation of externally funded projects. Arrears in payments on external debt stood at almost $2 million at the end of 1985, and those on the unsettled transfers between the postal banking system of France and the Comoros reached about $2.2 million. -3 -- 8. The current account deficit of the balance of payments reached a peak of 31 percent of GDP in 1984 when export earnings fell by more than half (mainly due to a fall in vanilla prices) while imports (in current prices) increased by 40 percent owing to high investment spending. However, the situation improved in 1985 as exports recovered while imports fell by 13 percent reflecting lower imports for rice, petroleum products and capital goods. As a result, the current account deficit dropped to nearly 17 percent of GDP. In 1986, this deficit is projected to remain around the 1985 level. 9. External Assistance. Total external aid to the Comoros has inLreased rapidly over the past several years, and now amounts to around $50 million per year or the equivalent of about $130 per capita, one of the highest in Africa. About 60 percent of external assistance is in the form of grants for budgetary support, technical assistance, and food aid. The rest is in the form of external borrowing, mostly on concessionary terms for development purposes. Debt outstanding and disbursed (DOD) rose from $52 million in 1981 to $124 million (117 percent of GDP) at the end of 1985. If the undisbursed amount is included the debt will be equivalent to 185 percent of GDP. The largest multilateral creditor is the African Development Bank group (20 percent of DOD), followed by the Arab Bank for Economic Development in Africa (BADEA) (12 percent) and IDA (11 percent). More than 55 percent of the country's external debt is owed to countries and institutions in the Arab world. Disbursements on medium and long-term debt reached almost $22 million in 1985, more than triple the 1981 level. 10. Debt service payments increased steadily from 3 percent of export of goods in 1981 to about 23 percent in 1985. In 1986, debt service payments are expected to reach $6.5 million or over 30 percent of export earnings. By 1990, these payments are projected to be around $10 million and the debt service ratio over 50 percent. The magnitude of these payments will obviously lead to serious problems. As noted above, there have been chronic delays in debt service payments, and the Government has already accumulated substantial arrears (para. 7). Public Investments Priorities and Programming 11. A change is needed in the emphasis of the development effort to reduce public investment and to shift from further capital-intensive i-nrastructure toward the productive sectors and manpower development. The recent history of large and dubious investments in the transport sector, especially the port of Mutsamudu, should be avoided. Formulation of a realistic macro-economic and financial framework for public investment is a high priority, and will require close consultation and collaboration among key ministries. Given the currenc serious recurrent cost problem, the appraisal and selection of development projects must give due attention to the future budgetary implications of proposed projects. -4- Economic Reforms 12. Against the background of serious deterioration in the economic and financial situation, a new Cablnet appointed In September 1985 is starting to take remedial measures, with priority given to financial stabilization. Government has made substantlal efforts to prepare a realistic and complete 1986 budget with inclusion of the capital budget for the first time and to contain recurrent expenditures by reducing the number of unnecessary public service positions as well as fringe benefits provided to civil servants. Specifically, a significant reduction in the budget deficit is expected in 1986 with the withholding of 20 percent of regular budget funds other then wages and salaries. The Government has undertaken, with French assistance, a systematic review of all employees on its payroll (about 380 civil servants have already been dismissed). Although these measures are not wide-ranging in terms of economic policy, they are in the right direction. 13. The Government has indicated to the Bank that further recovery measures will be undertaken in four main areas: financial management, public enterprises, coordination of public investment and external aid, and civil service administration. First, efforts will be intensified for further reduction of the budget deficit by improving budgetary revenues through reinforcement of tax collection and adjustment of certain tariffs and custom duties. Public investment is expected to be further reduced. Second, Government will strengthen the unit in the Ministry of Finance in charge of monitoring public enterprises. The status of public enterprises and their legal and financial relations with the Government will be examined with IBRD assistance. Third, the respective roles of the Finance, Planning, and the technical ministries in public investment and aid coordination will be clarified and strengthened. Finally, Government will undertake a review of existing civil service regulations as well as compensation policy. 14. The problem of arrears and the global debt issue remain critical. The position of the debt that could be rescheduled through the Paris Club is small (about 6 percent). Efforts have been made to approach donors outside of the Paris Club to renegotiate their external debt. However, Government bilateral efforts have not yet succeeded as several creditors do not seem to be willing to take action on the debt issue without a comprehensive program of economic reform endorsed by the Fund and the Bank. 15. The critical issues in Comoros require that priority in Its economic reform program be given to demand management and financial stabilization, even though the country faces fundamental long-term structural problems. Although the Government has indicated its intention to prepare a financial stabilization program with assistance from the IMF, a formal request could not be foreseen before the elections scheduled for March 1987. Meanwhile, the Bank mission in December 1986 will try to deepen policy dialogue on adjustment and to intensify assistance on reform measures. Aid Coordination 16. An initial UNDP Round Table took place in July 1984 in Comoros. The meeting received strong support from donors, which recommended that the Government keep the public investment program under close scrutiny with regard to its composition, timing, and volume. In view of the country's critical debt problems, the Government has requested support from the Bank in addressing its external debt situation. As Comoros is a UNDP Round Table country, the Bank does not intend to play a lead role but will provide analytical support to UNDP. PART II - BANK GROUP OPERATIONS IN THE COMOROS 17. The Comoros joined the Bank in December 1976 and the Association in December 1977. To date, the Comoros has received seven IDA credits totalling US$32.7 million, of which one credit, for the First Highways Project ($5.0 million), has been fully disbursed. IDA credits have focussed on agriculture (two credits), transportation (two credits), education, development finance, and health and population. Recently, disbursements have amounted to about 65 to 70 percent of appraisal estimates. IFC has not made any investments in the Comoros. Annex II to this report contains a summary of IDA operations in the Comoros as of September 30, 1986. 18. Implementation of ongoing projects is satisfactory, in general, although two problems regularly aEfect implementation and operation. First, experience has shown that substantial inputs of technical assistance are needed for project management (as under the First Education and Road Rehabilitation projects), and this raises issues of sustainability. Indeed, technical assistance management is becoming a significant aid coordination issue. Second, timely implementation of projects (such as the Coconut Rehabilitation, First Education, and Health and Population) has been frequently disrupted by a lack of local currency resources. A Project Completion Report on the First Highways Project (Cr. 852-COM, for $5.0 million) was released in December 1983; it concluded that, apart from construction, the project was only partially successful, due to delays in procurement, shortage of local funds, and lack of qualified counterpart staff. 19. The Bank assistance strategy aims at assisting the Government to initiate concerted actions to improve overall economic management, particularly public investment programming and aid coordination, and to strengthen the directly productive sectors of the economy. The IDA role will be limited to areas of World Bank comparative advantage among the donors involved-agriculture, education, and macro-economic management. -6- Our specific assistance objectives are: (a) to assist the Government in restructuring development policy, with priority given to financial stabilization and improved public sector management; (b) to assist the Government In formulating and implementing n structural adjustment program for agriculture; and (c) to strengthen the education development process with emphasis on financing, planning, and management issues. 20. Economic and sector work will be directed at broadening our economic policy dialogue with the Government and gaining insight Into sectors where timely recommendations could avoid over-dimensioning of projects and could improve sector management efficiency. Sector studies have been prepared on health/populationtnutrition, transport, agriculture and, most recently, education. The Education Sector Memorandum (Report 5598-COM) formed the basis for the project proposed in this report; it identifies key constraints and needs, many of which are related to overall country constraints--Government difficulties in meeting recurrent costs, shortage of skilled human resources and growing population. The proposed project would address many of these constraints and needs, and assist the Government in generating and implementing solutions. PART III - EDUCATION AND TRAINING IN THE COMOROS Structure of the Education System 21. The education and training system in the Comoros consists of two years of pre-primary education in Koranic schools, six years of primary education, four years of lower secondary education (collages ruraux) and three years of upper secondary education (lyc&es). Primary teachers are trained in the National Primary Teacher Training College (ENI), and lower secondary teachers, education inspectors and business managers are trained in the National School for Higher Education (ENES). With this minor exception, all higher education is provided overseas, largely in France and Algeria. Technical education is provided at the General Lyc§e of Mutsamudu for industrial activities and at the General Lyc6e of Moroni for commercial subjects. Training of agricultural extension staff is provided under the responsibility of the Ministry of Production and Rural Development and is offered in new facilities financed under the First IDA Education Project. The language of instruction at primary and secondary levels is French, except at eight Arabic colleges where all subjects are taught in Arabic. Government Education Policies 22. The general framework of an education policy has been delineated in statements of the President and the Ministers in charge of education. These statements focus on the need: (a) to increase access to education; - 7 - (b) to improve che quality of education at all levels; (c) to relate education programs better to the country's environment and customs; and (d) to Increase specialized skill training and to make it respond better to the development needs of the country. The Minister of Education has expressed a determination to strengthen education statistics and planning. For this purpose, at the Minister's request, a propnsal to reorganize administratlon was prepared by a consultant financed under the First Education Project. In addition, the Minister expressed deep interest in the implementation of the main recommendations of the Bank's Education Sector Memorandum, which were verbally accepted by the Government In May 1985. The proposed Second Education project would launch the implementation of the most important of the recommendations, i.e. reorganization and strengtheningof education administration, adoption of financial and technical measures which would lead to improved cost efficiency and better allocation of the education budget and improved quality of education, and preparation of education programs immediately relevant to the country's needs. Main Issues 23. Control of Education Financing and Costs. MEN expenditures are the largest single item in the Government's recucrent budget, accounting for over one-fourth of the total. The MEN budget excludes the salaries of expatriate teachers and some school material financed by bilateral assistance; the rental expenditures for the provision of housing for expatriate teachers (included under common expenditures); and the expenditures Eor specialized education under other ministries (agricultural and health education). If all expenditures in the sector financed by the Government budget are taken into account, the share of education increases to about 28 percent, in comparison to the 18.5 percent average for the region. This share of the budget is explained by the following factors: (a) education is free at all levels; (b) enrollment, in particular at the secondary level, is high; (c) student/teacher ratios are lower than in many countries in the region; (d) salaries of some of the pre-primary teachers are Government financed; (e) a substantial number of expensive (because of very high repetition rates) scholarships are provided for higher education; and (f) fellowships for higher education are too generous. 24. Although the level of expenditures for education is a major concern in relation to limited Government revenues, the inefficient disLtibution of these expenditures within the sector is an even more serious problem. In 1984/85, 20 percent of the education budget was allocated to higher education, at institutions in the country or study abroad on fellowships, while only 25.5 percent was devoted to 18,684 secondary students and 36.3 percent to 65,265 primary students. 15.9 percent of the education budget finances fellowships abroad but only 1.7 percent is allocated to educational materials and equipment at the primary level. Improving the allocation of budgetary resources in the sector would necessitate limiting fellowships abroad to those high priority areas for which no external funding is available, adopting and implementing cost-saving measures such as increasing student/teacher ratios, particularly at the upper secondary and higher education levels, and reduction of the number of non-teaching staff at the National School for Higher Education (ENES). -8- 25. Through better administration and management, more efficient planning, and better qualified teachers, education costs can be controlled. Substantial savings are expected to be achieved through recent measures adopted by the Government. At the beginning of the academic year 1985/86, the newly appointed Cabinet adopted two important measures to limit recurrent education expenditures: (a) the termination of primary auxiliary teacher recruitment (200 teachers in 1984, out of a total of about 2,000); and (b) termination of Government-financed 1985/86 fellowships abroad (57 were granted by the Government in 1984). Moreover, although no final statistics are available, enrollment growth at lower and upper secondary levels appears to have been limited to 2 percent and I percent respectively for the academic year 19B5/86 as compared to 14 percent and 32 percent respectively in 1984/85. For the future, (a) any new major capital investment aimed at expanding secondary school enrollment will be made in accordance with the agreed policy of limiting growth at these levels; (b) any capital Investment of $500,000 equivalent or more will be subject to Bank agreement; (c) in the period 1986/87 to 1988/89, recruitment of new teachers will be limited to those trained at ENI and EKES; (d) in the period 1986/87 to 1988/89, Governmenc-financed baccalaureat holders will be limited to those necessary for students attending courses at ENI and ENES, and to those high priority areas for which no external funding is available; and (e) enrollment growth at lower and upper secondary levels will be: 0 percent between 1986/87 and 1988/89, 1 percent between 1988/89 and 1990/91, and 3 percent thereafter. 26. The atove measures are justified for the following reasons: (a) enrollments in lower and upper secondary education-41.3 percent and 12.7 percent respectively compared with estimated averages of 14.5 percent and 5.5 percent for other countries of the region-are high and exceed the country's need for trained personnel at these levels; (b) the high enrollment ratios have been obtained at the expense of the quality of education, as they oblige the Government to recruit poorly qualified and poorly paid teachers; (c) as the Government is now willing Co improve the quality of secondary education through the gradual recruitment of teachers trained at ENES, who will receive increased salaries, any quantitative expansion beyond the accepted limits would result in drastic cost increases; and finally (d) improvement in the quality of education would also necessitate the use of education materials--teacher guides, student textbooks, science equipment-whose cost is expected to be only partially offset by increases in student/teacher ratios and teachers' working time, and by the payment of a user fee collected from the students borrowing textbooks. 27. Administration. Education administration and planning suffer from a lack of adequate leadership and qualified staff, and a clear assignment of responsibilities. All major decisions are made by the Minister of Education, but his wide range of responsibilities makes it difficult for him to discuss all the issues with technical staff, to take timely decisions and to follow up on actions taken. The Education Plannlng Unit, the directorates in charge of curriculum development and teacher training and the departments of primary and secondary education have overlapping responsibilities and unclear objectives, and have not been made effectively responsible for solving problems. Finally, there are deficiencies in primary and secondary school administration, due mainly to lack of supervision and inadequate headmaster training. 28. Quality and Efficiency of Education. Poorly qualified teachers (particularly at the lower secondary level), high teacher absenteeism, lack of educational resources, low time spent by students in contact with teachers and poor school organization, management and supervision, result in poor quality and low efficiency, mainly at the primary and lower secondary levels. The low efficiency of education is evidenced by high repetition, drop-out and failure rates, and by the high and increasing illiteracy rate. Improving the quality of education, making it more relevant to the country's n eeds, and developing employment-oriented vocational training should now become priorities for development of education and training in the Comoros, and constitute the main components of the project proposed in this report. External Assistance to the Education Sector 29. Direct b iget support provided by France, although declining steadily, still covered about 23 percent of the recurrent expenditures in education in 1984, while 95 percent of investment in education is being financed through foreign grants or credits. The external assistance is handled thro"gh extra-budgetary accounts which are beyond the control of the Treasury. It is estimated that these extra-budgetary accounts increased from 32 percent of GDP in 1980 to about 57 percent in 1984. The main donor is France which, on top of general budgetary support, is assisting INE, ENES, and secondary and higher education with teaching and advisory staff, while providing textbooks for the primary level. It is expected that France's leading role in the sector will be maintained. Saudi Arabia is funding the construction of an administrative block for the ENES primary classrooms, and is providing technical assistance in the teaching of Arabic; Belgium and Canada are providing assistance to INE, secondary school teachers and school equipment; UNICEF is helping with school gardens and pre-school programs; the Netherlands is assisting women's organizations; and the African Development Fund is assisting with the construction of 54 primary classrooms, the upgrading/renovation of 13 secondary schools and the construction, furniture and equipment of new facilities for the IKE. 30. The content of the proposed project was discussed with representatives of France, Belgium, Canada, the United States, the UNDP and the EEC, to avoid duplication of effort and to maximize the benefits to the education sector. Through an important program of technical assistance. France, Belgium, UNDP and Canada are expected to play an essential role in project implementation; they would also participate actively in the education policy dialogue. Close coordination among external donors engaged in the education and training sector will continue. - 10 - Bank Role in Education 31. The Bank strategy in the education sector in the Comoros is to continue to support Government efforts to improve the quality of education while reducing costs. The IDA education policy dialogue will aim to assist the Government (a) to limit recurrent expenditures to a level consistent with the country's financial capacity; (b) to allocate and use both human and financial resources more efficiently and equitably; and (c) to avoid wasting resources in the form of unproductive and unnecessary scholarships for higher education. IDA has supported education in the Comoros directly through the First Education Project (Credit 1378-COM). This project, which will close June 30, 1987, assists the Government in improving primary education, and developing human resources through the training of agricultural and health workers. Physical implementation of the project has been satisfactory. 32. Experience with past education projects indicates that in view of the country's limited administrative capacity, future project design should avoid multiple components and limit the number of departments involved. Although physical implementation of projects has been so far relatively successful, the lack of timely provision of Government counterpart funds has, at times, slowed implementation. In addition, the difficulties in implementing efficiently the "software" components point to the need for a continuous dialogue on education issues. The design of the proposed project takes these lessons into account. PART IV - THE PROJECT Background 33. The project was identified by IDA in September 1984, and prepared by the Government with assistance from the Unesco/Bank Cooperative Program. Appraisal of the project took place in October 1985. Negotiations were held in Washington D.C., in June 1986. The Government delegation was led by Mr. Said Ahmed Said Ali, Minister of Economy and Finance and Mr. Salim Idarousse, Minister of Education. A Staff Appraisal Report entitled "Second Education Project in the Federal Islamic Republic of Comoros" dated June 17, 1986, is being distributed separately. A Credit and Project Summary appears at the beginning of this report and a supplementary data sheet is given in Annex III. Project Objectives 34. The project is one element of a long-term strategy for the development of the education sector, which emphasizes improving cost efficiency. This strategy focuses on the control of education expenditures, more efficient use of education resources, improvement of the quality of education, and strengthening of vocational training. - 11 - Specifically, the three major objectives of the proposed project are: (a) to promote institutional development through strengthening of the Government's capacity to plan, administer and manage education; (b) to improve the quality of primary and lower secondary education; and (c) to meet some of the country's human resource needs through the training of middle level technicians and skilled workers for the industrial sector, and of middle level business employees. Thus, the project is immediately responsive to the overall concerns of the IDA country strategy to strengthen economic and particularly financial management, to reduce public expenditure, and to apply public resources more efficiently to critical needs. Project Description 35. The project would consist of: (a) Institutional Development: strengthening of planning and management in the Ministry of Education, Culture, Youth and Sports (MEN), through technical assistance, fellowships, local seminars and training sessions, and studies on key issues; (b) Quality Improvement: upgrading of the skills of about 2,000 primary and 350 lower secondary teachers through an integrated training program of correspondence courses, seminars, on-the-job support by education advisers, and preparation and distribution of teacher guides and student textbooks; and (c) Manpower Development: establishment of a National Center for Technical Education and Vocational Training at Ouani to train skilled workers for industry, and establishment of a new business school at lioroni to train office clerks, accountants and secretaries. Detailed descriptions of these components follow. Institutional Development 36. Administration. Following the appointment of the new Minister of Education, a reorganization of education administration is being undertaken. Assistance is required to improve the qualifications of managers, enable them to define the objectives of their respective departments, and prepare plans to implement these objectives. The proposed project would include financing for consultant services to assist the Government in the implementation of che agreed reforms of education administration, local training and scholarships to train administrators. Government has agreed to review before June 30, 1987 MEN's organization - 12 - chart and to upgrade the existing Planning Unit into an Education Planning Directorate and a department responsible for curriculum development and teacher training at the primary and secondary education levels. 37. Planning. The current Planning Unit needs to be strengthened both quantitatively and qualitatively to address the pressures of the expanding education system and the simultaneous need for better education, and for more efficient use of human and financial resources. The project would assist the future Planning Directorate to establish and prepare an education development plan. During a three to four-year preliminary phase, the Planning Directorate would: (a) analyze education costs and financing with a view to recommending cost-saving measures; (b) study and propose solutions to key issues such as better use of existing teaching staff, improvement of education quality and provision of adequate education materials; and (c) collect and analyze reliable education statistics. The second phase would be the completion of an education plan. It is expected that the education plan to be prepared by the education Planning Unit would include the following cost-saving measures: (a) reduction of non-teaching staff, particularly the high number of school principals; (b) increase of student/teacher ratios at all levels; (c) increased time that teachers work, which is currently among the lowest in Africa; (d) organization of double-shift and/or multigrade teaching where and when necessary; (e) selectior of fellowship holders on the basis of parents' income and student achievements; and (f) establishment of a time ceiling for studying abroad. This long-term exercise would require highly qualified Comorian specialists, who will be trained under the proposed project. By June 30, 1987, the Planning Directorate will be staffed with a director, an education planner, an economist, a statistician and a school mapping specialist, acceptable to the Association. 38. Recent Government actions aimed at an immediate reduction of recurrent educatio: costs (para. 25) are expected to lead to substantial reduction of the education budget. They must, however, be complemented by che implementation of long-term measures derived from the studies and recommendations expected to come from the education Planning Unit. A financing plan to increase the cost-effectiveness of education, acceptable to !DA, including concrete and monitorable actions, will be completed by June 30, 1987. The proposed cost-saving actions will be implemented beginning with the academic year 1987/88. Quality Improvement 39. To improve the quality of education at the primary level, about 2,000 underqualified teachers would be provided with training to upgrade their teaching skills and subject matter knowledge, and 35 pedagogical advisers and 250 school principals would be provided with training to improve support and guidance for teachers. Each teacher would undergo an integrated, in-service training program consisting of: (a) a one-year correspondence course; (b) two one-week seminars organized at the regional level and conducted by education advisers assisted by school principals; - 13 - and (c) a six-week upgrading course during summer vacation. About 400 teachers would undergo training each year. The project would finance: upgrading of existing physical facilities for the organization of training seminars; provision of motorcycles; per diem and travel costs for local training; salaries and expenses for the local staff working during surmer vacation; development and printing of course material, correspondence course materials, teacher guides and student textbooks; and incremental operating expenditures (transport and administrative expenses, maintenance and spare parts for vehicles and motorcycles). 40. Improving the quality of education at the lower secondary level by investing heavily in medium-term teacher training would not be cost-effective because many teachers are temporary and leave when their one-year national service is completed. Although the number of permanent teachers trained at ENES is increasing, immediate action is needed to increase the level of lower secondary student achievement; dnder the proposed project, quality improvement would be obtained through the provision of detailed curricula, teacher guides and student textbooks, close monitoring of the teaching staff and short training courses for temporary teachers. Three training seminars for a total of about 350 trainees will be held annually during four years. The training of three education inspectors would be included to monitor the development of lower secondary education activities under the proposed project. In the interim, monitoring and on-the-job training of the teachers would be the responsibility of the 80 lower secondary school headmasters, who would attend an initial four-week seminar during summer vacation, followed by a one-week refresher seminar each year. The project would provide financing for limited amounts of equipment and supplies for the preparation and distribution of teaching guides and textbooks; fellowships for the training of inspectors; per diem and travel costs for local training; salaries and expenses for th.e staff working during summer vacations; expenses for the development and printing of course materials and teaching equipment; and operating expenditures (transport and administrative expenses). Manpower Development 41. Although employment opportunities are limited in the Comoros, according to a 1985 World Bank/Unesco Cooperative Program study, there is an annual need for between 30 and 80 skilled industrial workers and/or middle-level technicians, and for between 60 and 100 clerks, accountants, secretaries and typists. Also, self-employed artisans and/or small entrepreneurs should be provided with modern working practices, and existing in-service business and management staff should be recycled and upgraded. Finally, the gradual replacement of a relatively important number of expatriates working as professionals (-cadres") in the industrial and business sectors would require training at a further level. Current technical training, which aims at preparing the students for a technical baccalaureat, is not functioning properly: the training streams are not set - 14 - up in relation to the employment opportunities, the potential employers are not consulted on the programs, and there is a lack of equipment and functional facilities. Moreover, the absence of relationship between potential employers and the systems responsible for the supply of trained manpower, which exists for industrial and business/management training as well, is a heavy handicap for a country where the number of unemployed trained workers in particular skills is increasing, while the other skilled specialists' positions continue to be vacant. The objective of the project would be to -eplace the existing training by a more elaborate and practical technical/vocational training system, which would be sufficiently flexible to respond quickly to manpower demand and employment possibilities. 42. To organize and monitor the training of artisans, skilled workers, middle level technicians and technicians, clerks, accountants, secretaries and typists, the project would assist the Government in the establishment of a Directorate for Vocational and Technical Training (DFPT). DFPT would be responsible for the development of training programs at the two institutions to be financed by the proposed project, i.e. the Technical/Vocational Training Center of Ouani and the Business School at Moroni. The project would finance a consultant who would also supervise the implementation of vocational/technical training programs. To establish better relations with employers, DFPT will be assisted by a Management Board, where employers would be represented. A Presidential Decree establishing DFPT will be submitted to the Association for review and approval not later than June 30, 1987; the Vocational/Technical Training Center of Ouani and the Business/Management School of Moroni will be formally placed under the authority of DFPT. 43. To train human resources for industry, a National Center for Technical Education and Vocational Training would be established by rehabilitating and expanding the "Centre de Formation Professionnelle" at Ouani, to provide up to 260 student places, with a planned annual output of about 130. The project would provide for rehabilitation of the existing Ouani Vocational Training Center, furniture, equipment, technical assistance through a specialist in modular training systems, fellowships for teacher training, local craining and incremental operating expenditures (administrative expenses, spare parts, consumables and maintenance of the equipment). This component would integrate the "enseignement technique", which is under !EN, and the "formation professionnelleC, which is under the jurisdiction of the Ministry of Labor, and would result in substantial savings by using common facilities, equipment and teachers, and would give to the training program a professional orientation which the existing program does not have. The Governmenc has requested financial and technical assistance from UNDP and ILO for the in-service training of local craftsmen and intends to seek UNCDF or UNIDO assistance to establish a revolving fund, from which individuals could receive loans for self-employment or small enterprises could be supported. - 15 - 44. To provide the employment market with clerks, accountants, secretaries and typists, the project would upgrade the existing management team at the General Lycee of Moroni. It would become the National Business and Management School and would accomodate 365 day students. Studies would be essentially practical. Retraining courses for employees would also be provided. The project would provide financing for the required facilities, furaiture and equipment, fellowships for teacher training, local training and incremental operating expenditures (administrative expenses, spare parts and maintenance of the equipment). Currently, France and Belgium are financing a total investment of eight teachers, who are expected to continue to assist in the development of the program until local teachers can be trained to replace them. Summary of Technical Assistance 45. Specialists. Because of the large volume of ongoing technical assistance being provided by bilateral donors, the number of specialists financed under the project would be less than what would otherwise be required. 76 staff/months of specialist services under the proposed project would cover: (a) 30 staff/months for administration and planning, to train an education planner and assist the Government in the implementation of reforms in education administration and in the preparation of education development plans and studies; (b) 42 staff/months to train technical and business and management teachers; and (c) 4 staff/months for a procurement specialist and for pre-investment studies. France and Belgium provide technical assistance for teacher training. They have informally indicated willingness to continue their assistance. As the success of the proposed project depends largely on continued technical assistance for, at least the next five years, the Government will give priority in its future bilateral arrangements with France and Belgium to the five-year extension of technical assistance for teacher training and technical/vocational training needed for the project. 46. Fellowships. The project would finance about 15 staff/years of long and short-term fellowships abroad: (a) 36 staff/months for education administration and planning; (b) 63 staff/months for the training of lower secondary school inspectors; (c) 75 staff/months for the training of future technical teachers; and (d) 72 staff/months for the training of future business and management teachers; and (e) 7 staff/months for the upgrading of project management staff. The curriculum vitae of each fellowship recipient, all courses of study, training institutions and estimated costs would be subject to review by the Association. Upon return, fellowship recipients would serve at least ten years in the position for which they were trained. Project Sustainability 47. The proposed project would provide the education sector with institutions which could function under local managers, specialists and - 16 - teachers as soon as the project is completed. All education planning specialists, middle-level administrators and technical/vocational training teachers are expected to be trained by the end of 1989. All primary and lower secondary teachers would be trained during project implementation. The only activity to continue after the period financed by the proposed credit would be on-the-job training and monitoring; this would be performed by the pedagogical alvisers and inspectors whose qualifications would be enhanced under the project. Project Cost and Financing 48. The total estimated project cost is $8.8 million equivalent. The foreign exchange component is estimated at $6.1 million, or about 69 percent of project cost. Cost estimates for civil works, furniture, equipment and vehicles were prepared in consultation with BEPE, MEN and the Ministry of Public Works. Technical assistance costs under the project are based on UNDP rates. Items directly imported for the project would be exempt from custom duties and taxes; other local taxes would be negligible. Contingency allowances are as follows: 10 percent of base costs for physical contingencies, and an average of 24 percent of the base cost plus physical contingencies for price contingencies. The latter have been calculated at the following annual inflation rates: 1986, 7.2 percent; 1987, 6.8 percent; 1988, 6.8 percent; 1989, 7.0 percent and 1990, 7.1 percent. Inflation rates are assumed to be equal for foreign and local costs due to the almost complete dependence of the country on imported goods. 49. The proposed project would be financed by an IDA credit of $7.9 million equivalent or 90 percent of total project cost excluding taxes. The proposed IDA credit would finance $6.1 million, or 100 percent of the foreign exchange component, and $1.8 million or 67 percent of local costs. The Government's contribution would be $0.9 million, over five and half years and would cover sa'.aries of education planning unit staff, education advisors, lower secondary school inspectors, technical teachers and additional project-related administrative staff. The impact of the project on the recurrent budget would arise almost entirely from the cost of operating the technical/vocational training center and the primary and lower secondary teacher in-service training programs, new salaries and salary increases for the staff acquiring new qualifications. These additional costs would begin in 1,91, and would amount to about FC8 million for the planning unit, FC60 million for teacher training and FC49 million for technical training. However, cost-saving measures agreed upon at negotiations would free about FC100 million annually through the termination of underqualified primary teacher recruitment, and an additional FC40 million annually through elimination of Government-financed fellowships abroad. Other savings would result from increased student/teacher ratios, and limit on enrollment growth at lower and upper - 17 - secondary levels. These savings would more than offset all recurrent costs gen'zcated by the project. Project Implementation 50. The proposed project would be implemented over a period of five and a half years. Project completion is expected by December 31, 1991, with a closing date of June 30, 1992. The implementation schedule Is based upon experience from the First IDA Education Project and an ongoing African Development Fund (AfDF) education project. 51. The project unit (BEPE), which is implementing the First IDA Education Project, the AfDF Education Project and the civil works component of an IDA Health and Population Project, would be responsible for project administration. The BEPE is an established unit which has gained considerable experience through its administration of several ongoing projects. Sketch plans for civil works are under preparation. Furniture and equipment lists are being prepared concurrently with the design of hte facilities. Terms of Reference for technical assistance specialists have been prepared. BEPE has been strengthened with a general educator and a chief accountant, who have been recruited. BEPE would be further strengthened by a procurement specialist, whose recruitment is currently proceeding. A consultant architectural firm would be hired by BEPE for the civil works component, on the basis of sketch plans and briefing documents prepared by BEPE. Government has agreed that the following local specialists would be recruited and maintained in their positions during project execution: two education planners, one education financing specialist, one school mapping specialist, 35 education advisers, three lower secondary school inspectors, 10 teacher trainers and curriculum development specialists at INE and ENES, eight teachers for the Technical School of Ouani and eight teachers for the National Business School at Moroni. - 18 - Procurement 52. Procurement arrangements are as follows: Category ICB LCB Other TOTAL ---- US$ millions-- - Civil works 1.5 1.5 (1.5) (1.5) Furniture, equipment 2.2 0.3 2.5 materials & vehicles (2.2) (0.3) (2.5) Consultant Services 1.2 1.2 (1.2) (1.2) Training 2.6 2.6 (2.6) (2.6) Operating Costs 1.0 1.0 (0.1) (0.1) TOTAL 2.2 1.8 4.8 8.8 (2.2) (1.8) (3.9) (7.9) Note: Figures in p.renLheses are the respective amounts to be financed by IDA. 53. Contracts for furniture, equipment and vehicles would be awarded on the basis of international competitive bidding (ICB), in accordance with Bank Group Guidelines for Procurement, except for contracts costing less than US$50,000 equivalent each, which would be awarded on the basis of competitive bidding advertised locally (LCB) and in accordance with procedures acceptable to the Association. The aggregate total of such contracts is not expected to exceed $0.3 million equivalent. Due to the small size and type of work (rehabilitation and small extension), contracts for civil works for the Technical Vocational Training School, estimated at about $1.5 million, would be awarded on the basis of competitive bidding advertised locally and In accordance with procedures acceptable to the - 19 - Association. When ICB procedures are used, domestic manufacturers would be allowed a margin of preference of 15 percent over the c.i.f. price of competing foreign suppliers, or the existing applicable rate of import duties, whichever is lower. Items would be grouped to the extent practicable, to encourage competitive bidding and permit bulk procurement. Bank Group review of tender evaluation documents ;rior to award would be required for contracts exceeding $100,000 equivalent for civil works, and $50,000 for furniture, equipment and vehicles. Consultants would be selected and hired on terms and conditions acceptable to the Bank Group, in accordance with the Bank Group's Guidelines for the Use of Consultants. Disbursement 54. Disbursements under the proposed IDA Credit would be made on the basis of: (a) 100 percent of total expenditures for civil works; (b) 100 percent of total expenditures for furniture, equipment, materials and vehicles; (c) 100 percent of total expenditures for consultant services; (d) 100 percent of total expenditures for training; and (e) 100 percent of total expenditures for operating costs (excluding salaries of local personnel) and allowances. All disbursements would be fully documented except for: (a) civil works contracts costing less than $100,000; (b) contracts for furniture, equipment and vehicles costing less than $50,000; [c) local training; and (d) incremental operating expenditures. Disbursements for these would be made against statements of expenditures to be certified by the Project Director. The disbursement schedule has been estimated on the basis of the implementation schedule and the sector profile for the Comoros. In order to ensure that funds for the project would be made available when needed, a Special Account in Comorian francs operated by BEPE, would be established in a local financial institutiou acceptable to the Association, with an initial deposit of about $0.5 million equivalent--to cover about three months of expenditures-which would be withdrawn from the Credit account after Credit effectiveness. The account would be replenished on the basis of documentary evidence, to be provided to the Bank Group by the BEPE, of payments made from the account for goods and services required for the project eligible for financing under the Credit. Monitoring and Auditing 55. Semi-annual progress reports would be submitted to the Bank. The Government would prepare a completion report assessing attainment of project objectives, project implementation and initial operation, costs and benefits, the performance of the Government, IDA and other agencies involved, and lessons learned. In addition, BEPE would maintain separate accounts for all project activities, in conformity with national accounting practices and normal Government financial control procedures which are satisfactory. BEPE would submit to the Association an annual report summarizing the financial situation of all project operations. Auditing would be required on an annual basis for all expenditures financed under the project. Auditing would be performed by an independent auditor acceptable to the Association, within six months following the end of the Borrower's fiscal year and would be financed under the proposed project. - 20 - Benefits and Risks 56. The immediate benefit of the project would be to enhance the capacity of the Government to use the resources it has available for education. Sector developments would be more easily monitored, and better planning, based on reliable statistics and sound school mapping exercise, would lead to a more efficient use of existing resources. The professional skills of primary and lower secondary teachers would be upgraded and, as a result, the quality of education would be improved. The replacement of two theoretically oriented technical education institutions by two practically oriented vocational training schools would adapt the training of skilled workers to the country's manpower needs. More important, however, are the long-term benefits. As a result of the institutional development to be promoted by the project, the education authorities are expected to have the capacity to carry out integrated sectoral planning, to plan and implement education investment programs, to train and monitor teachers at all levels, to prepare, test and distribute education materials, and to make optimum use of physical and teaching resources. These managerial improvements are expected to result in a reduction of the Government's recurrent expenditures in the sector. 57. The project presents three risks with a potential impact on its long-term sustainability. The first concerns the Government's financial constraints. The project minimizes recurrent costs as the scope will be limited to improvement and strengthening of existing activities. M4oreover, making better use of existing resources would generate substantial savings. The second risk concerns the Government's ability to implement the project. The project includes elements to strengthen the organizational units responsible for education planning, administration, teacher training and project implementation. The third risk is that the technical assistance now being provided, which is critical to the success of the project, would not be maintained as long as necessary. The Government has confirmed that in Its future bilateral arrangements with France and Belgium, priority will be given to the five-year extension of technical assistance needed for the project. PART V - RECOMMENDATION 58. I am satisfied that the proposed Credit would comply with the Articles of Agreement of the Association, and recommend that the Executive Directors approve the proposed Credit. Barber Cenable President Attachments Washington D.C. December 23, 1986 _ 21 _ ANNEX 1 ~ ElOE IC DCICKS Page 1 of 2 CTIOS C C PP l IN 19B52 Amul Pace of growth Uscn Z 1981-85 1995 OP at Maket Priem 106 100 3.4 3.0 Ireysbint 29 27 11.2 -29.0 ConqxamtIon 121 114 7.0 -1.6 Orrent A==m Badan -18 -17 - - Rauoorce Gp -44 -41 32.9 -25.7 frlfIVC IN 19851 Whl added 1985 Ag4iculture 40 38 ixustry 15 14 Serviem 51 47 I GOhERMI FDWC! 1985 C billio 2 of GP Orrent reei:pts 5.9 13 Crret experitures 9.1 19 Oxret Defit 3.2 6 Capital Bpeditre .6 1 Iccr cpditures Threign Fimiirg(Nec) 8.4 18 Exter.al Gants 13.1 27 ,E,QRMlr AND PRICES 1981 1982 1983 1984 L985 - ThBillors of Omrian mme) - Money and Quasi Money 4.8 5.8 8.3 7.1 8.2 Credit to Public Sector 0.9 0.6 0.5 0.8 1.3 Credit to grvate sector 3.7 3.6 4.7 6.8 4.3 (Itercua cf GDP or rdec Miter) Mrmy ad Quas Mozy 16 16 20 16 17 GP Price Defiatw 100 115 125 132 139 (1981-100) edt to Public Secor 3 2 1 2 3 Crit tO PrivateSector 12 10 12 15 9 1% ¶t~ffl~prices ANNEX 1 _-22- _Page 2 of 2 O,ROS - TRADE PMIS AND CAPITAL RL4S WAIJNEZ OF PAWS l Averge 198185) 1981 191 1983 1984 .19a5 USS m X (Tuss NhllMism)-- Exportsaf oads 16.4 19.5 19.5 7.7 15.7 s o f goods -22.6 -22.8 -24.3 -9.7 -25.7 Vtnilla 8.4 53 TradebaLanc 6.2 - 3.3 - 4.9 -22.0 -10.0 love 5.3 34 Gbods and Services V1areYlamg 1.6 10 Copra .2 1 balence -32.4 -27.8 -29.0 -83.5 -45.6 Others .3 2 Transfers, Net 24.3 16.9 17.9 29.5 28.0 Qmrent accoxnt - 8.2 -11.0 -11.1 -31.0 -17.6 Total 15.8 100 Net muBocrrhg 10.9 19.6 18.7 26.8 20.3 DIS6ESSISZS 11.0 19.7 19.0 27.7 21.9 ECUN&L ISr,IE(( 31 AwrtLzatiaa 0.0 - 0.1 03 -0.9 - 1.6 1985,US MLIC(N Otber - 3 - 5.2 -6.1 - 3.0 2.3 aw in Pg ses 2.4 3.4 1.6 - 7.3 5.0 PubUc Debt 124 P-ivate Debt Total Disburs 124 Imports of: Rice and Meat 12.4 9.3 7.3 7.8 4.0 Petrol1e Products 5.3 6.9 4.3 4.3 3.2 1 SEnVICE R&,1985i 23.0 RP OF EXAC MI LflDUG, JUZ 30, 86 US 100 -C 271.73 328.61 381.06 436.96 49.26 US$ utilic CF 1.000 -U$ 3.8 3.04 2.62 229 2.23 Misbxrsel 20.94 Undlsbur#ed 11.71 T.oaiL 32.65 I/ External debt sevice paynts s percentage of eports of gpods. 23 _ ANNEX II STATUS OF LANK GROUP OPERATIONS IN THE COMOROS A. Statement of IDA Credits (as of September 30. 1986) 1/ Credit Number Year Borrower Purpose IDA Undisbursed ----US$ million--- One credit fully disbursed. 5.0 1035-COM 1981 Comoros Agriculture 5.20 1.83 1188-COM 1982 Comoros Highway II 6.30 0.23 1:95-COM 1982 Comoros Education 6.00 1.61 1378-COM 1983 Comoros DBC 2.30 0.39 1408-COM 1984 Comoros Health & Population1 2.85 2.18 1469-COM 1984 Comoros Rural Services 5.00 3.31 32.65 9.55 TOTAL of which has been repaid - - TOTAL now outstanding 32.65 9.55 Amount sold - - of which has been repaid - TOTAL now held by IDA 21 32.65 - TOTAL undisbursed 9.55 B. Statement of IFC Investments (as of September 30. 1986) None 1/ The Comoros has received no IBRD loans. 2/ Prior to exchange adjustments. - 24 - ANNEX III SUPPLEMENTARY PROJECT DATA SHEET Section I: Timetable of Key Events Time taken to prepare project: January 1985 to August 1985 Appraisal mission: September 1985 Negotiations: June 1986 Planned date of effectiveness: April 1987 Section II: Special IDA Implementation Actions None. Section III: Special Conditions (a) Any new major capital investment aimed at expanding secondary school enrollment will be made in accordance with the agreed policy of limiting growth at these levels; (b) Any capital investment of $500,000 equivalent or more would be subject to Bank agreement; ec) In the period 1986/87 to 1988/89, recruitment of new teachers will be limited to those trained at ENI and ENES; Cd) In the period 1986/87 to 1988/89, Government-financed baccalaureate holders will be limited to those necessary for students attending courses at ENI and ENES, and to those high priority areas for which no external funding is available; Ce) Enrollment growth at lower and upper secondary levels would be: 0 percent between 1986/87 and 1988/89, 1 percent between 1988/89 and 1990/91, and 3 percent thereafter. (f) Financing plan to increase the cost-effectiveness of education, acceptable to IDA, including concrete and monitorable actions, will be completed by June 30, 1987, and implemented beginning with the academic year 1987-1988. 0 ~~~~~~~~~~~~~~~~~~440 MitswrMnuAl --. !,ChDZW' [;> Cherani ~~SECOND EDU IVEfjbofl j GRANDE COMORE HahdBe 8 Koumnbani MORONI I * lcam ~ ~ ~ edaaj sc - $ i i~-s %i al Foumbouni Dembeni -120. : Ouani MUTSAMUDU MOHELI | ~~~~~~~~~~~~~~~~~~Hoani M O FOMBONI Mlirngoni fo faa. haa.az aaaa~. ....aaaa.-.., * Wanani; ~.ffi.d W--w Namchua . - - AANJOUA tae, a. .,r ., fln CANZONI IS flb.347077i. **_SW OUENEFOU IS. BUSINESS TEC~ ew./ _.. TANZANIA 2 INDUSTRY TEC N SEYCHELLES CAITAL CIT % ~~~~~~~~~~~~~~CAF'ITAL CITY j .;\ COMORUS- 0F. ODTHER TOWN! '-a TI,, 7,_ C f - EXISTING RJ0 ., . p,.5 :lDj wo ^AJ ! ~ ~~~~~ ROADS UNDE' -Lv- ~~~~~~* ~MAURIITIUS J. POFwrS 4~~~~~e"- AIRPORTS r -- , , - _ INTERNATIO > ) ,¢,0< - Reunion Is. -13° MILES I AFRI 440 IBRD 19520 COMOROS SECOND EDUCATION PROJECT 120j 4,! Duan1 MUTSAMUDU <, :? n~Barmbao Moyn M'Remani ANJOUAN 1 BISINFSS TECHNICAL/VOCATIONAL TRAINING SCHOOL-MORONI !GRANDE COMORE) 2 INDUSTRY TECHNICAL/VOCATIONAL MA YOTTE TRAINING CENTER - CUANI (ANJOUAN) 6 CAPITALCITY MZlmboro o OTHIER TOWNS - EXISTING ROADS azum 9ne- au ----- ROADS UNDER CONSTRUCTION Chingoni 0 OD U .1' PFORTS 4,DZAOUDZI 4 AIRPORTS Sada -._ - INTERNATIONAL BOUNDARIES Bandele 0 20 40 OMETERS I I MILES' I 1 130 0 5 t5 25 45 .JANUARY 1986