Vocational and Technical Education Project Report No: ; Type: Report/Evaluation Memorandum ; Country: China; Region: East Asia And Pacific; Sector: Vocational/Technical Education & Training; Major Sector: Education; ProjectID: P003452 The Vocational and Technical Education Project, supported by Credit 2114-CHA for US$50 million equivalent, was approved in FY 1989 and was fully disbursed, closing on December 31, 1996, one year later than originally planned. Co-financing of US$7 million was provided by the Federal Republic of Germany. The Implementation Completion Report (ICR) was prepared by the East Asia and Pacific Regional Office. The objective of the project was to expand, upgrade and increase the efficiency of the secondary vocational and technical (VTE) system with an emphasis on improvements in system quality, including institutions at all levels. The project included four components: (i) assisting 59 secondary VTE schools in 9 provinces and 3 municipalities to develop into vocational training centers; (ii) assisting nine technical teacher training colleges to expand enrollment and upgrade the quality of instruction; (iii) strengthening the management of the VTE system; (iv) establishing a national and two regional VTE research and development centers to research and recommend policy measures to improve the quality, efficiency and cost-effectiveness of the VTE system. To achieve the objectives, the project financed buildings, equipment, books and materials and technical assistance. The project outcome was generally satisfactory in that it initiated a process of quality and efficiency improvements in the VTE system. Despite weaknesses in monitoring and supervision that focused on processes and quantitative targets rather than development outcomes, VTCs were transformed into multi-functional and adequately equipped training centers. There were also improvements in industry participation (Industrial Liaison Committees), the utilization of facilities and equipment, the supply of trained instructors and more practical curricula, as well as arrangements for student counseling and job placement. System management was strengthened through extensive local and overseas training programs for VTE administrators and specialists. One national and two regional VTE research and development centers now participate in national policy. OED agrees with the ICR ratings of project outcome as satisfactory, sustainability as likely and Bank performance as satisfactory. The likelihood that the project's achievements will be sustained is high because the demand for skilled workers is buoyant in the expanding economy. In addition, the Government has a strategy to develop and reform vocational education including continued support to project in project institutions and similar investments in non-project institutions. The ICR identifies several important lessons: (i) industrial liaison committees are helpful in establishing industry participation in policy development, financing and ensuring that training responds to the market; (ii) a monitoring and evaluation system should capture qualitative outcomes as well as quantitative targets; and (iii) adequate resources and specialists for supervision are required to encourage a focus on sectoral issues as well as implementation processes. OED also points to a related lesson from the borrower's contribution to the ICR: continuity in Bank staffing from appraisal through supervision helps maintain efficient working relationships between borrower and the Bank. No audit is planned.