Doumot of The World Bank FM OFCIL US ONlY Rqort No. P-6192-YEn I4ENORAUD AND RECNMEDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTMVE DIRECTORS ON A PROPOSED CREDIT OF SDR 23.9 MILLION TO THE REPUBLIC OF YE1E FOR AN EDUCATION SECTOR INVESTMENT PROJECT FEBRUARY 01, 1994 MICROGRAPHICS This documnent has a ricted disribution and Report No: P- 6192 YEM dtir official duties. Its contents may not oth Type: MOP CURRENCY EOUIVALENTS Currency Unit = Yemeni Rial (YR) Official Exchange Rate: US$1 = YR 12 Market Rate (October 1993): US$1 = YR 48 nS - Educatio and Traming System IDA - Internatona Deelopment Association MhS - Manuement Inormation Sysem MOE - Mnisty of Educafion PCP - Planned Change Pam PDMA - Prject Development and Monitoring Agency PDU - Project Development Uait PU - Projet Implementain Unit SPD - Subprect Dir TA - Technical Assistance FJanr Y-cer January I1- December 31 FOR OFFICIAL USE ONLY REPUBIA' OF YEMEN EDUCATION SECTOR INVES&IMENT PROJECT CRED1T AND PROJECT SUMMARY lFrroyger: Govermment of the Republic of Yemen B fiiare: Minstry of EdWcation Amount: SDR 23.9 million (US$ 33.0 million equivalent) r-erms: Standard IDA, 40 Years Maturity EinanfJu Plan: us S milion FImneer LPocal Foreig Toal IDA 7.6 25.4 33.0 OPEC 2.0 6.0 8.0 Govemmat 8.7 0.0 8.7 TOal 18.3 31.4 49.7 Economic Rate of Return: Not Applicable Staff praisal Rport No. 12461-YEM dated February 01, 1994 Map: IBRD 25261 This document has a restricted distibution and may be used by recipients only in th perfomance of their okcil duties. Its contents may not otherwise be disclosed without World Bank authorization. MEMORANUM AND RECOMMbINA2Q Of THE PRESENT OFQ IN3m&=A DEELOPUM ASSOITN TO THE EXECUTIVE DIRECTOR$ ON A PROPOSED CREDIT TO THE REPUBLIC OF YEMN FOR AN ED=AT1Q SE(=T ISTMENT SROJECT 1. I submit for your approval the following memorandum and recommendaon on a proposed development credit to the Republic of Yemen for SDR 23.9 million (US$ 33.0 million equivalent) to help finance an education sector investment project. The credit would be extended on standard IDA terms with a maturity of 40 years. 2. comu t/lou a&droumd. Three years aftr the unification of Yemen in May 1990, a democrtically elected government was formed. The major challenges facing the new Government are to revive the economy, which has suffered severely in the aftermath of the Gulf Crisis, and to satisfy the basic needs of a rapidly growing population. Soon to be launched policy adjustments are expected to provide the basis for a resumption of economic growth in the mid and late 1990s. This would lead to an increase of demand for trained manpower in a variety of categories. To meet this demaad and support possible productvity gains in agrculture, industry and services, a sustained effort is needed to upgrade the quality of Yemen's labor force. 3. Over the past two decades, Yemen's education and training system (ETS) has grown phenomenally. Enrollments expanded from some 250,000 students in 1970/71 to over 2.5 million in 1991192, with basic education (Grades 1-6) accounting for 1.9 million; secondary education (Grades 7-12) 563,000; teacher training 26,000; vocational and technical training 13,000; and higher education 52,000. In addition, some 70,000 people participate in nonformal literacy and vocational training courses. The rapid build-up o4 the ETS and the high share of government expenditures allocated to the sector (20 percent) clearly illustrate the priority given to human resources development in Yemen. 4. Impressive as these achievemens are, the past emphasis on quantitative expansion has created imblanc and qualitative deficiencies in the system. At all levels of education, female enrollment rates are considerably less than those for males. There are also significant regional disparities in access to educational facilities. Educational achievements are often unsatisfactory. A large number of boys and girls leave basic education without attaining functional literacy. Graduates from other educational streams are frequently ill prepared for the jobs available in labor markets. 5. A major cause of quality deficiencies is the shortage of well-qualified teachers, a problem exacerbated by the Government's decision in 1991 to replace expatriate teachers, often with untrained high school graduates. Additionally, curricula are inadequate and teaching materials are in short supply. There is little emphasis on problem solving in science teaching in general education, and instruction programs in technical and vocational schools are not up to date. The existing system of student evaluation is outmoded and unreliable. Physical facilities are often in poor condition. Classrooms are overcrowded, furniture is lacking or damaged, laboratories and libraries frequendy non-existent. There is little maintenance of buildings, causing them to deteriorate quicldy and creating health hazards for students and teachers. Addressing these problems effectively will require improvements in the management and planning of educational facilities and programs, including strengthened capacities for policy analysis, research, monitoring, and evaluation. There is also a need for improved supervision of schools and better management within schools. - 3 - 6. These Issues were identified in a recent IDA study on human resource development in Yemen', which was discus with the Government in February 1992. Based on the study's findings and recommendations, the Goverment, with IDA assistance, has put In place the flrst of a possible series of projects to strengthen basic education, with emphasis on quality improvement and access for girls. Two completed and two ongoing projects would generate adequate capacity to train teachers for the primary and secondary levels. 'Me proposed project bas been under preparation since November, 1992. It would form an integral part of a longer-term sector investment program focusing on quality improvement in and increased female access to secondary education, and would strenthen training of middle-level manpower for which demand is already strong and likely to increase in the coming years. A Planned Change Program (PCP) addressing current issues in secondary and post-secondary education would form the basis of the project. 7. proeet Objetives. The proposed Education Sector Project would enhance Yemen's capacity for human resource development In order to meet the emerging needs of the economy and is consistent with the Government's education sector objectives, i.e. (i) enhancement of secondary students' learning achievements, with special emphasis on science and mathematics education and the quality of teaching; (ii) improvement in girls' access to secondary education; and (iii) establishment of labor market oriented two-year post-secondary programs covering business, commerce and industrial subjects. 8. Prjge lscript. The proposed project would achieve the above stated objectives through national and school-based subprojects in the eight Change Areas which constitute the PCP: (i) Improvement in the learning environment through reduction of overcrowding through provision of classrooms, provision of equipment especially for science subjects, and establishment of a mantnce program (total cost US $11.0 m); (ii) improvement in teacher performance through development and provision of taining modules, summer schools fer teachers and school-based training programs (US $0.5 m); (iii) strengthening of institutional capacity for and development of curricula (US $1.1 m); (iv) improvemen of school management through development and provision of school management training and materials and establishment of an educational Management Information System (MIS) (US $1.6 m); (v) development of learning resources (US $2.7 m); (vi) strengthening of insdiutional capacity for the development of evaluation proces to improve the reliability, comparability and validity of examinaons (US $1.0 m); (vii) increasing female access to secondary education in underserved areas (US $4.9 m); and (viii) establishment of a nationwide labor-market oriented Community College system (US $14.8 m). Twenty-six subprojects in these eight areas have been prepared, of which 25 have been appraised jointly by IDA staff, Minisy of Education (MOE) staff and designated Intermediary Agency stafr. The proposed credit would cover civil works, equipment, fitre, materials, library books, local costs for semas, workshops, printng of manuals, and technical assistance for all aspects of implementation, including the Jatermedary. 9. ParticinoryPreparation. From identification (August 1992) through pre-appraisal, the proposed project has evolved with the participation of Yemeni teachers, professionals, officials from the jj "Republic of Yemen# Human Development: Societal Needs and Human Capital Response, June 23, 1992, Population and Human Resources Division, Country Department II, Middle East and North Africa Region. 2/ Republic of Yemen, Dasic Education Project (Credit 2412), approved in VY93. -4- MOE, and private sector represeves. The scope of the program was conceptualized by the Yemenls through three workshops during the Identification mision in which IDA played a catalytic role. The program was subsequently validated by a Headmasters workshop and by senior MOE officials includiW he Minster and Deputy Ministers. Yeni working groups, including one expatriate consultt, were established for each Change Area to develop subprojects. The project's scope, Change Areas and prepared subprojects were reconfirmed by the newly elected Government and presented to IDA during the pre-appraisal mission In August, 1993. TIis approach, involving the active participation of over 200 Yemeni teachers, administators and professionals, has resulted in a high degree of commitment and ownship of the PCP. 10. Project £nemato The Project Development and Monitoring Agency (PDMA), the Intermediary, would be the key institution for planning, Implementing and managing the PCP. Headed by a Higher Council chaired by the Minister of Education, the PDMA is built around the well funcdoning and experienced Project Implementation Unit (PIU) and includes one new unit, the Project Development Unit (PDU). The PIU will handle all procurement, accounts, TA and supervision while the PDU will be responsible for appraisal, monitoring and evaluation of subprojects and the PCP as a whole. An operaing manual for the PDMA including responsibilities and functions of units has been prepared and agreed during appraisal. The Higher Council will have an Executive Secretary, who was appointed in October 1993, and whose key responsibility would be to coordinate the work of the two units. in addition to the present PIU staff, the PDMA will include only six new professional staff. 11. Subproject Directors (SPD) would be direcdy responsible for implementation of subprojes in each Change Area. A Policy Board to be chaired by a Deputy Minister or eminent professional with experience in the relevant educational subsector, who would be appointed by the Minister of Education, would be established for each Change Area, and would include nominees of Policy Boards from interlated Change Areas. These Boards would ensure congruence of subproject activities and outcomes with MOE policy and would provide a direct avenue for coordinating activities of interrelated subprojects. Each SPD would have access to an Experts Group with a national membership which would serve as a esource for advice on technical issues related to subproject activities. 12. Pog300t Sutainability. Tbe project, when completed, would add YR135 million to the recurrent costs of MOE, which represents 1.3 percent of MOE's 1992 recurrent expenditure. The availability of funds therefore does not threaten project sustainability. Institution building processes in the different Change Areas such as curriculum development, evaluation, teacher performance and the community colege system would have contiued benefits through the intenwalization and adoption of innovative practices by various subsectors in MOE. Lastly, the high degree of ownership and commitment generated by the participatory approach adopted for project preparation would also be a key contributing factor to project sustainability. 13. Lessons Leamed from Previous M1A Involvement. The proposed project Is the next logical step in IDA's relatively long experience with Yemen's ETS. Through 14 projects since 1973 (10 completed and 2 closing in FY94), IDA has invested about US $150 million in the sector. These projects are contibudng to the development of ETS in Yemen, and have addressed priority needs in teacher training, technical education and vocational tining, engineering education, nonformal education, and development of research capabilty in the MOE. Implementation delays beginning in 1989 slowed disbursemts; however, the Government's reaction to IDA supervision and country implementation review initatives has resulted in marked improvemeLts in the pace of both implementation and disbursements over the past two years (disbursements increased from US $4 million in FY91 to US $8 -5- million in FY92 and US $12 million In FY93). Lesns learned from completed and ongoing projects and considered in the design of the proposed project include the following: (i) project design must be flexible enougl* to allow for cbanges in priorities due to unification; (ii) cofinancing must be firmed up prior to credit effectiveness; and (iii) prior commitment of the Government must be obtained for appropriate levels of technical assistance. 14. De tor DA Involvement. Given Yemen's rapid population growth, poor social indicators, and modest women's participation, the country asistance strategy has identified human resource development as a priority. Historically, about 20% of IDA lending has been directed to this sector with a significant increase in recent years. IDA's sector strategy places priority on improving quality and leang achievments in grades 1-12, particularly for girls; expansion of technical education with the participation of business and industry in planning; and, fostering labor market relevant post secondary education. Ihis project's emphasis on quality improvement in secondary education complements the previous Basic Education Project. 15. While the Government is strongly committed to the project, it will need substantial outside support to implement the program. The Government has requested IDA assistance for the project, to be supplemented by cofinancing from other donors. IDA support for the project would be justified for the following reasons: (1) MIA's past involvement in the sector; (ii) the Association's catalytic role in preparing the project; and ORii) the PCP is a long-term initiative which covers a wide range of issues and activities. No other donor would have the depth of experience and financial resources necessary to support such a reform program. 16. A&mUnt RggdW. Agreements have been reached with the Govenunent on: (i) a sector development policy statement, including reform objectives, action programs, performance indicators and targets, delivery dates, and continued commitment to the PCP during the life of the project; (ii) establishment of the Intermediary (PDMA) and finalization of the management structure for Change Areas and subprojects; (iii) inclusion in the MOE budget of a line item for quality improvement; (iv) financing of local costs at the market exchange rate through disbursement against contracts denominated in US dollars; and (v) procurement of technical assistance through twinning arrangements. For Community Colleges, agreement has been reached on: (i) establishment and structure of the governance system; (ii) upgrading of existing secondary technical schools in Sana'a and Aden to serve as Community Colleges; and (iii) cost recovery mechanisms. 17. En1rgnmental Axsmnt. The project is classified as OC* for environmental assessment. Components that enhance environmental benefits Nvould include environmental education coverage in secondary science education progrAms, a key focus of the project. 18. fram Objective Ca oies. As explained below (para. 18), the proposed project would contribute to: (i) poverty alleviation through labor market oriented education and training programs; and (ti) bringing women into the mainstream of economic and social activity. 19. eneits. Ihe project would provide an improved learning environment to, and contribute to enhanced achievement for, a student populaion estimated to rise from 563,000 in 1992 to approximately 1 million in 2000 in secondary education rades 7-12). Improvements in the quality of secory education would result from: (i) enhacn the ability of MOE to plan, implement and maage change through the PDMA and various other agencies by internalizing innovadve processes, and through establishment of an MIS; (ii) sustained curriculum, evaluation, and learning resources development and renewal processcs especially In science education, including environmental education; (Mii) dissemination of Improved teaching techniques to replace the current focus on memory-based learning; (iv) increased female access to secondary education, especially in underserved areas. through provision of school places for 5.000 girls, inceolive progams to recruit female headmasters and specialized home based learning programs for girls; (v) development of capable school leadership through provision of headmasters' training; and (vi) active community participation in schools through school-based subprojects. Establishment of a NAiol Cmmunity College System would benefit some 3,000 students per year and help to replace expatriate workers in middle level positions with Yemenis through the provision of employment related training which has been desig,ned, and would be contiually monitored and revised, with the acdve involvement of private sector employers in order to ensure continuing labor market relevace. 20. RkM. There are three main risks to be addressed: First, the new unit of the Intermediary agency (PDMA), the Project Development Unit, is inexperienced. This risk will be midtigated through the provision of techical assistauce which will provide PDMA with advice from a similar institution, and by the core role played in the PDMA by the experienced and efficient PIU. Second, because many of the subprojects are itelated, delays in Implementation of a subproject could result in botdenecks in others. This risk will be mitigated through represeion of interrelated subprojects on common Change Area Policy Boards and through carefl training provided to PDMA staff in monitoring subproject implementation. Third, bureaucratic systems in Yemen may not easily adjust to private sector pardcipation in the Community College system. This risk has been minimized through agreement on the composition of the National Community College Council, the governing body of the system, which includes a majority private sector participation. 21. Reconnnendao. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Associaton and recommend that the Executive Directors approve it. Lewis T. Preston President Attachments Washington, D.C. Date: February 01, 1994 -7 - REPUBLIC OF YEMEN EDUCATION SECTOR INVESTMENT PROJECT SCEDULE A Esdmated ftoject Cabts (US $ millBon)t |OcPonent Loca Foig TOWl 1. Sodazy EducRation 5.2 12.& 17.9 L Fwnsl Partfiopation 2.0 2.9 4.9 H. School ased Subprojoft 0.2 0.6 0.8 m. Corenwy coleges 7.5 7.3 14.8 IV. PrejtCdOM touing & M angmmt 0.1 0.3 0.5 V. Futurubpjects 0.7 3.3 4.1 TOW asU Cost 15.7 27.4 43.0 Physical Coutwucies 1.6 2.? 4.3 Pieo C oage 1.1 1.3 2.4 Total Project Cost 18.3 31.4 49.7 i&inancint Plan (S $ mllon): Financier Local oreign TOal IDA 7.6 25.4 33.0 OPEC Fund 2.0 6.0 8.0 Govement 8.7 0.0 8.7 TOtal 18.3 31A 49.7 Emated Dlsburumets (USS ndllion): IFiscl Year 1995 1996 1997 1998 1999 2000 2001 2002 Annual 1.0 2.3 6.6 11.6 4.9 3.3 1.7 1.6 Cumuative 1.0 3.3 9.9 21.5 26.4 29.7 31.4 33.0 P _roete 0 10 30 65 80 90 95 100 Note: Figures may not add up due to monding .,  _____________ -  - * -- a-' - oo *- J BRIE (A 00 (A 1111 0 00 Pr I i.E'I o  o2 --- A *1 0. - 0 J 1 '8 o * 0 *I.i i EU' A by. A o  4: U fL "flu Hg I 4 I. j fJJ .  I C..  OU -9 - REPUBLIC OF YEMEN EDUCATION SECTOR INVMSTMES PROJECT SCHEDULE C Timetablg of Kay Po ing Events (a) Time taken to Prepare ProJect: 14 months (b) Project Prepared by: Borrower, with IDA assistance (c) Frst IDA Mission: July 13,1992 (d) Appraisa MNson Departum October 1, 1993 (e) Date of Negotations: December 20-22, 1993 (f) Planned Date of Effetlvwess October 1994 (g) Relvant PCRs: Education m, Cr. 915-YAR Education IV, Cr. 1203-YAR Ih) Resposbllflu for Preparation: Task Manager: Yogendra Saran (MN2PH) Peer Reviewers: Sverrir Sigurdsson (ESP) Adriaan Verspoor (ESP) Division Chief (Acting): Alfred T. Heron (MN2PH) Director: Ram K. Chopra (MN2) Regional Vice President: Caio Koch-Weser (MNA) - 10 - REPUBLIC OF YEMEN EDUCATION SECrOR INVESTMENT PROJECT SCHEDULE D Page I of 2 A. Statement of IDA drelts (As gf SegtMber 30.1993) Amcd la UISMUmIl coo. . huI mr W.. F _ IDA tdibwud 0k aFiso.va. 1994 wuuucx OP lIDON 9DUOAION IV zo 2 121119 Ci"Su.ymn Amn REbUc OF 1ID41 TBa.ASI3. TO SMP 4310 s. ow3mi c1120vm 15 WFJDIC GP Fl9wZ 'I_NAYS IDV "4.0 10 0Wdw Il"Vlyam10 amuc OF YSN rUCHNIAL IMANIO 1270 11.0 _.1311. . C1INO3YBA 19 REWUDL1 OP TZEMN lIJIAMA V 1V 984 12Wm1# C110YSMY it9 &EaUIa OF 134KN pow1 T IV MPO 0" CSt7YEbtMlie 33muE C OF YIIMEN lTA.N PiUThONU MW 264 wmW C1739O.9 19? RDnUC OP YOM GM= N VW. C a 2.9D 1201M93 C1IO2. 193? astUDC OF YIIMBN UADI 11.10 4.21 oSm'y C17WYEht Ult RmKUC OF YNK lUAOH9 TRAlNINO 10.40 6.14 OVUM C1893019 193? DIWllUC OP YEMN HIiMWAYS V 1600 ILCO 1241N9 c Eaolf tIgol RuNu OF YWBN hLNA.MODIDAH RD. R Uiok 417 123V93 Cs188".138 R lC w c OF YEMEN AOWC.DZV oanlaR 17.0 9.10 W2W1ff C194Y8M 199 RIDUSUC OF 13M4N AL MUKALLA WATER n2.0 W0m 123193 Ct9120.YEU 198 1 RWU8UC OF YEMEN I1ALIH U 4.3 292 039 C19b3M 191 RWUtElC OP Y8MEN ASITERN REO. 15.0 13.59 n12ow =10150.113 1939 amU tC OP YiEr. DoN. IFOR PU. 10.0 1040 0*,A6 CWl.U1 1919 RIKMIJ OF YliMEN IADRAMVr AOLm 10 12OD G06m7| C2D030.9t4 1990 RWUJ (W Yom 34BROKCy FLOOD 9 9.2 23 1241 C21111Y3 1990 RKEPLIC OP Y34N IHM&TH U 10 15.9 2 C2190. 190D Ri" OP YWE tAIZ RAW DISASTER 10 L4o 1uss 1 C2t64m 1990 RWBUC OF YOm4E POWER m 1.43 52131u96 C 24 1990 REUBIC OP YSM.E4 SARI WATER tSUP9LY 120 143 12F31S9 c2ttm.1m 191 REPt1LtC OP Y1E1N b"ULS S005 TRANSORT 3. 20.1 oo3bm7 C2222DYBM 1991 RWIIUC OF YEMEN SECONDARY tEACER T 19. 127 12131198 q Y IS 19St RWllllC OP 1E341 EmERGENC RECOVEiW C 3S00 21.51 00 9 CJ22mPY4 RBWBLIC OP 13(8K FP11u1 IV 13.0 12. 00S9 C2YEI13 1012 EIC OF 14311 KATAORISET.O 14.40 1|1213 C273DYut 1 RWBUDUC OF YEMBN LAND & WATER CONSERV 32UD 23.8 0s IC20141YD 1990 RUIKUC OF YOM BASC EDUCAZON 19.10 20.30 1213 CQ5*yEm 19 REPtBLIC OP YW.9 FAMLY ReALTH 2_ XS5 00300 T1dw mber d 458 349.50 Crsi -1t Ton 931.8 _________ a~f lkb* $* 21.46 Tag bald by Ba1akd V4JA 93A.4 Amw_d s11 T4ii m0mua 340.50 iBRD 25261 This map hrx bo>.n rpfep45d 4b St- REPUBLIC OF YEMEN by The Wodfd Ban tstff_ - :rrxd enc is for the EDUCATION SECTOR INVESTMENT PROJECT inteo,nd use of TheWortd 0i _ S Gsoup.The danoninatio ue 0 SoECrEDTOVNSAND MUAE and the boundories shown os this maT do not i.spc on the G_, / . o anvwS1 o00RTE CAPITOLS pot of Tla Wodd Oa ~p~ any jOhment an. the ' 18" stohts of any tlerWh7y or rm # 1E NAITONAL C4PtAL endorsemento oroccepof + /R1O swch boundies. . ,Z, PORT _spo Z7hr en S SAUDI ARABIA PR AARY ROAS D A zJ i 0 AH _ GOVERNORATE BOUNDARIES e \_ _ I ITCRNA1ONxL BOUNDMAIES [~~~~~~~~~~~~~~~~~~~~~~~~~~~ 25 OFDE 10 5 DJIBOUTI , 2ioo nsmeT s 42° 455 445 S1- 5 1?t A I - _ - I _ . 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