Document of The World Bank FOR OFIlCIAL USE ONLY Report No. P-4798-MAU MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 13.2 MILLION TO THE ISLAMIC REPUBLIC OF MAURITANIA FOR AN EDUCATION SECTOR RESTRUCTURING PROJECT June 28, 1988 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit - Ouguiya (UM) US$1.0 = UM 72.6 MEASURES 1 m = 1.09 yd. 1 m2 = 10.76 sq. ft. ABBREVIATIONS AND ACRONYMS AfDB - African Development Bai-k IDA - International Development Association FISCAL YEAR SCHOOL YEAR January 1 - December 31 October - June FOR OMCL41 USE ONLY ISLAMIC REPUJBLIC OF MAURITANIA EDUCATION SECTOR RESTRUCTURING PROJECT CREDIT AND PROJECT SUMMARY Borrower: Islamic Republic of Mauritania Beneficiary: Ministries of Education, Fisheries, Labor and Finance Credit Amount: SDR 13.2 million (US$18.2 million equivalent) Terms: Standard, with 40 years maturity Onlending Terms: Not applicable Financing Plan: IDA US$18.2 million AfDB US$17.0 million Government US$ 0.7 million Local Communities/ Private Sector USS 1.6 million TOTAL US$37.4 million * Economic Rate of Return: Not applicable. Staff Appraisal Report: Report No. 7213-MAU IBRD 20862 * Note: Total does not add up due to rounding. This document has a restricted distribution and may be used by recipients only in the pedormance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE ISLAMFC REPUBLIC OF MAURITANIA FOR AN EDUCATION SECTOR RESTRUCTURING PROJECT 1. The following memorandum and recommendation on a proposed development credit to the Islamic Republic of Mauritania for SDRl3.2 million (US$18.2 million equivalent) is submitted for approval. The proposed credit would be on standard IDA terms with a maturity of 40 years and would help finance an education sector restructuring project. The project would be cofinanced by the African Development Bank (AfDB) in the amount of US$17 million equivalent. 2. Background. The Government spends 222 of its budget on education, but the impact of these expenditures on economic and social development is weakened by several interrelated distortions in resource allocation and use as evidenced by: (a) low development of primary education juxtaposed with excessive growth of secondary and higher education -- while Mauritania has the highest enrollment ratio in tertiary education in the Africa Region, its primary enrollment ratio (55?) is well below the regional average (about 80?). Further growth of primary education is constrained by the low priority given to such education in the education budget (its share of the budget declined from 462 in 1975 to 32? in 1987, while that of higher education increased from 15? to 25Z); (b) mismatch between output mix and labor market demands -- the recent years' rapid growth in secondary and higher education has been in humanities and social science programs, which offer poor employment prospects, and has not addressed shortages for technicians and skilled workers outside the mining and industrial sectors; (c) low internal efficiency -- 20X of primary school pupils are repeaters and only one-third of those who take the school leaving examination pass. The pass rate for the baccalaureat declined from 50? in 1980 to 26? in 1987, and only 22? of those who enter the University graduate. The low efficiency is caused by overcrowded classes in primary education, lack of selectivity in admission to secondary education and to the University, and lack of pedagogical materials and equipment at all levels of education; (d) high unit costs -- due to a high proportion of foreign teachers in secondary and higher education, low internal efficiency, high capital costs, inefficient use of existing facilities, high student subsidies, and weak education sector management capacity. 3. The Government has developed and started to implement a strategy aimed at correcting the above distortions and weaknesses. The strategy gives priority to expansion of and quality improvements in primary education, and to the restructuring of secondary and higher education in order to align the development of these two sub-sectors with present resource constraints and trends in labor market demands. 4. Rationale for IDA Involvement. The Government has requested IDA assistance to accelerate the pace of implementation of the above strategy. The strategy addresses high priority issues in the education sector, and should be supported by IDA as an integral component of Mauritania's broader economic recovery program. Under the project, IDA would help Mauritania: (a) introduce reforms that would bring about major improvements in the quality and relevance of education; (b) protect and expand primary education during this period of overall economic adjustment; and (c) coordinate donor assistance to the education sector within a common framework. 5. Project Obiectives. The project would help: (a) correct distortions in costs and resource allocation in the education sector; (b) expand access to, and improve the quality and relevance of primary education; (c) improve the internal and external efficiency of secondary and higher education; and (d) improve the planning and managerial capacity in the education sector. 6. Proiect Description. The project would: (a) implement a sectoral adiustment program that would increase primary education's share of the educa- tion budget, promote more efficient use of existing resources, and stimulate increased private financing of education; (b) increase access to, and improve the quality and relevance of primary education through (i) assisting local communities to build/renovate about 300 classrooms using low-cost construction techniques developed under the project, (ii) developing and printing about 350,000 textbooks and 60,000 teachers' guides, and providing in-service training for all primary teachers, and (iii) introducing multi-grade and double-shift teaching, strenigthening regional inspectorates, and transferring one of the country's two teacher training colleges from a "high" to a 'low" enrollment area; (c) improve internal and external efficiency of secondary and higher education through (i) improving the quality of science teaching in secondary educatiolL by revising programs, retraining all science teachers, developing and printing about 120,000 science textbooks, providing science equipment, and renovating about 100 classrooms, (ii) developing natural science programs in higher education by providing pedagogical equipment and materials, and renovating and constructing facilities, (iii) improving the quality and relevance of technical secondary education by revising and diversifying programs, upgrading admission requirements, developing the capacity to train technical teachers, and creating two new schools -- one providing programs for the commercial sector, and the other programs in support of the rural economy along the Senegal River, (iv) strengthening and diversifying vocational programs to upgrade the skills of industrial and commercial manpower by providing equipment and creating four new courses, and (v) establishing training programs for the industrial fishing sector; and (d) reinforce the education sector's planning and management capacity by developing the capacity of key ministries to plan and monitor the use of education resources and to coordinate the provision of training programs with trends in labor market demands. 7. The project, to be carried out over a five-year period, provides funds for civil works, furniture, equipment, pedagogical materials, training, specialist services, and incremental operating costs. The total cost of the project is estimated at US$37.4 million equivalent, with a foreign exchange component of US$28.5 million (76Z). A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and disbursement, and the disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Mauritania are given in Schedules C and D, respectively, followed by a map of the country. The Staff Appraisal Report, No. 7213-MAU dated June 28, 1988, is also attached. 8. Agreed Actions. Under the project's sectoral adjustment program, the Government has agreed to implement several cost-saving and budget reallo- cation measures, including: (a) a freeze through FY1993, at the 1987 level, of scholarship budgets for secondary and higher education, and new admission to upper secondary education; and (b) a containment of the growth of other recurrent expenditures for secondary and higher education. Furthermore, the Government has agreed to increase the recurrent budget for primary education by 9Z annually through FY1993. Together, these and other agreed-upon actions would increase primary education's share of the education budget from 32Z in 1987 to 44Z in 1993. The Government has also agreed to: (i) sell textbooks produced under the project and use the proceeds for textbook renewal; (ii) stimulate the provision of private education; (iii) develop measures to involve employers in decisions on course content and financing of technical and vocational education; and (iv) ensure that student boarding and restaurant facilities at the Higher Institute of Science be self-financing. Implementation of these actions would - 3 - be monitored during an annual review meeting during which the Government would also a3ree with IDA on the recurrent budget for education for the upcoming fiscal year, and on the investment budget for the education sector for the coming three years. 9. Benefits. The sectoral adjustment program would help reallocate education resources in favor of primary education, thus ensuring an adequate level of investment in basic education services during this period of overall economic adjustment, and a redistribution of the benefits generated by public education spending in favor of the less well-off social groups (between school years 1986/87 and 1993/94, the primary enrollment ratio would increase from 55% to 74?, and the share of girls in total enrollment from 401 to 44Z). Together, the project's investment and adjustment measures would help increase the social returns to all levels of education by improving the skill levels of the labor force, thereby increasing its contribution to growth in the fishing, service and informal sectors, and improving its mastery of the technologies needed to exploit the country's meager agricultural and water resources. Most students would benefit from the project through more relevant programs, improved availability, relevance and quality of pedagogical materials and equipment, better trained teachers, and improved school buildings. 10. Risks. The main risks are: (a) the Government's ability to contain growth of secondary and higher education, and hence to provide the resources required to achieve the targets for growth in primary education and for quality improvements at all levels of education; and (b) the capacity of the economy to generate gainful employment for technical and vocational education graduates. To address the former risk, the sectoral adjustment program includes specific measures to redirect growth in enrollment and education budgets in favor of primary education; implementation of these measures would be monitored through joint Government/IDA annual reviews. To minimize the latter risk, investments are directed towards sectors where there are demonstrated skill shortages, programs would be kept flexible to respond to changes in labor market demands, and employers would participate in both the development and the financing of training programs. The reinforcement of the Government's capacity to plan and monitor the development of the country's human resources would also help minimize these risks. 11. Recommendation. 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 B. Conable President Attachments Washington, D.C. June 28, 1988 - 4 - Schedule A Page 1 of 1 ISLAMIC REPUBLIC OF MAURITANIA EDUCATION SECTOR RESTRUCTURING PROJECT Estimated Costs and Financing Plan Estimated Costs a/ Local Foreisn Total (USS million) 1. Expansion and Improvement of Primary Education (a) Construction of 250 classrooms and rehabilitation of 50 classrooms 2.1 1.4 3.5 (b) Provision of textbooks and teacher training 0.6 2.3 2.9 (c) More efficient resource use 1.2 2.8 4.0 Sub-total 4.0 6.5 10.4 2. Improved Internal and External Efficiency of Secondary and HiRher Education (a) Science teaching in secondary education 0.3 1.8 2.1 (b) Science teaching in higher education 0.7 2.7 3.4 (c) Restructuring and improvement in quality and relevance of technical education 0.6 3.7 4.3 (d) Strengthening and diversification of vocational upgrading programs 0.1 0.7 0.8 se) Creation of vocational training pro- grams for industrial fisheries sector 0.5 4.7 5.2 Sub-total 2.1 13.6 15.7 3. Strengthen Education Sector Planning and Management Capacity (a) Development of Ministry of Education's capacity to plan and manage resource use 0.2 1.7 1.9 tb) Improve coordination of provision of training with labor market demands 0.0 0.6 0.6 Cc) Project Coordination Unit 0.6 1.3 1.9 Sub-total 0.8 3.6 4.4 Total Base Costs 6.9 23.7 30.6 Physical Contingencies 0.6 1.9 2.5 Price Contingencies 1.5 2.9 4.3 Sub-total 2.1 4.8 6.8 Total Project Costs 9.0 28.4 37.4 Financing Plan IDA 4.8 13.2 18.2 AfDB 2.1 14.9 17.0 Government 0.7 0.0 0.7 Local Communities/Private Sector 1.4 0.2 1.6 Total 9.0 28.5 37.4 Note: Totals may not add up due to roundings. a/ Net of taxes and duties. - 5 - Schedule B Page 1 of 2 ISLAMIC REPUBLIC OF MAURITANIA EDUCATION SECTOR RESTRUCTURING PROJECT Procurement Method and Disbursements Amounts and Method. et Procurement (USS million Including contingencies) Catesory of Exuonditur. iCe LCB OTHER NMA TOTAL COSt 1. Civil Works a. General contracts - 8. a - -S. (Parts A,D) - (8.43) - - (8.48) b. School construction contract. - 1.89 - - 1.89 (Port A) - (1.39) - - (1.89) c. Comunity Input/private aector - - - 1.43 (1) 1.43 2. Furniture and Non-Pedagogical Equip ent a. Furniture and Equlp_nt 2.09 / - - - 2.09 (Psrt. A,D,F) (1.45) - _ _ (1.45) b. Furniture for school. - 1.23 c/ - - 1.23 (Parts A,D) - (1.09) - - (1.09) 8. Pedaogical Materials a. Textbooks 178 / - - 1.76 (Part A) (0.92) - - (9.62 b. Pedogical equipment 6.40 S - - - 6.49 (Parts A,D) (1.11) - - (1.11) 4. Speiellist Services a. Int.rnational and local specialist. S - . 8S - 6. 6 (Part. A,D,F) - - (4.84) - (4.64) h. Voluntere - - - 6.21 0.21 (Part A) _ _ - (9.21) (0.21) 5. Training - - 0.71 S/ 09.7 (2) 1.66 (ParO A,D,F) - - (0.48) (9.67) (1.39 6. Operating Cot, - - 4.04 9.14 (S) 4.16 (Parts A,D,E,F) - - (8.36) (-) (8.6) Tot I Codst 12.27 1.92 11.61 2.64 87.44 Total Finaned by IDA (2.57) (5.92) (6.63) (16 0) (16.19) Notes: Capit.l letter, and fIgure. In parenthees ahow the component and amounts fInanced by IDA. Footnote. represented by emal lotter. Indicte amt onts financed by AfD0 and procured undr Its procedures (in US9 milio*n): (a) 4.66; (b) 0.64; (c) 0.13; (d) 1.76; (e) 7.29; (t) 2.02; (0) 0.26. Part A: Expansion and Improvemnt of Prlmry Education -- financed by IDA, except printing of textbook. (AfD9). Part 3: Science T eching In Secoodary/Nl#wer Educatlon -- financed by AfD9. Pert C: Restructurlng of Technical Education - financed by ADN. Part Di Vocational Training and Uporadiln Center (CFPP) - flnaoed by DA. Part E: Varitime Training Center (CFPM) - financed by AfD8, except operating coet (IDA * private). Part F: Strengthening of Managemt and Plennlng - financed by IDA. (1) Represeants local co unitlea' contributions for the school constructlon pogrea (labor, local building materials, sanitary facilities, fencing and cash contribution). (2) Represent local training including meet In-4orvice training. (3) Represents Industrial fliheries' contributions to support the operating coOe of CFPM. Figures way net add up to total due to rounding. -6- Schedule B Page 2 of 2 ISLAMIC REPUBLIC OF MAURITANIA EDUCATION SECTOR RESTRUCTURING PROJECT Disbursements (US$ million) Proposed IDA 2 of Expenditure Category of Expenditure Allocation Financed by IDA 1. Civil works contracts 4.3 100l 2. FurnQ ture and non-pedagogical equipment 2.3 0OOS 3. Pedagogical material 1.0 1OOX 4. Specialist services 4.7 1OOX 5. Training 1.2 1OOX 6. Operating costs 3.1 80X 7. PPF 0.5 8. Unallocated 1.1 TOTAL 18.2 Estimated IDA Disbursements IDA Fiscal Year 1989 1990 1991 1992 1993 1994 ----------------------US$ million--------------------- Annual 1.3 1.5 1.8 3.2 6.3 4.1 Cumulative 1.3 2.8 4.6 7.8 14.1 18.2 -7- Schedule C Page 1 of 1 ISLAMIC REPUBLIC OF MAURITANIA EDUCATION SECTOR RESTRUCTURING PROJECT Timetable of Key Project Processing Events (a) Time taken to prepare s One year (b) Prepared by Government with IDA assistance (c) First IDA mission February 1987 (d) Appraisal departure January 1988 (e) Negotiations May 10-12, 1988 (f) Planned date of effectiveness October 1988 (g) List of relevant PCRs and PPARs N.A. - 8 - Schedule D Page 1 of 1 ISLAMIC REPUBLIC OF MAURITANIA EDUCATION SECTOR RESTPRUCTURING PROJECT Status of Bank Group Operations Summary Statement of Loans/Credits (as of March 31, 1988) AMOUNT LESS LOAN/ CANCELLATIONS UNDIS- CLOSINS CREDiT 4 YEAR BORROWER PROJECT NAME (US$ MILLIONS) BURSED DATE 13 LOAN(S)/CREDIT(S) CLOSED 186.40 CREDITS C11750 1982 MINES AND GEOLOGY PETROLEUM EXPL.PROMO 3.00 .31 12/31/87(R) C12140 1982 M1N AGRIC, AND LIVESTOCK EDUCATION 11 5.70 1.14 06/301881R) C12310 1982 MAURITANIA HIGHWAYS IV 4.00 1.93 06/30/87(R) C12920 1983 ISLAMIC REPUBLIC OF MAURITANIA TECH. ASSIST.II 4.60 3.81 06/30/88(R) C14140 1984 MINISTRY OF RURAL DEYt. & SONADER TECH.ASST.TO RURAL S 8.10 2.20 06/30/88 C15670 1985 GOV'T/SONELEC/OPT/EMN PUBLIC ENT TA & RENA 16.40 7.14 12/31/90 C15710 1985 GOVERNMENT/SONADER SMALL SCALE IRRIGATI 7.50 5.76 06130193 C15720 1985 SMDC, CFPP, OTM IDF 11 5.30 3.89 12/31/91 C16580 1986 GOVT OF MAURITANIA LIVESTOCK 11 7.60 6.95 06/30/92 CA0280 1987 ISLAMIC REPUBLIC OF MAURITANIA SAL I 27.44 6.94 06/30/88 C18120 1987 ISLAMIC REPUBLIC OF MAURITANIA SAL 1 15.00 9.87 06/30188 t C18650 1988 ISLAMIC REPUBLIC OF MAURITANIA DEVELOP. MONT 10.00 10.00 12/31/94 TOTAL NUMBER CREDITS - 12 114.64 59.93 LOANS L26430 1986 MAURITANIA SNIM REHAB 20.00 -.01 12/31/88 TOTAL NUMBER LOANS = 1 20.00 -.01 85* TOTAL (NET APPROVED) 321.04 OF WHICH HAS BEEN REPAID TO THE BANK (AMORT.& INTEREST) 50.11 TOTAL NOW OUTSTANDING 270.92 TOTAL UNDISBURSED 59.92 NOTES: t NOT YET EFFECTIVE It NOT YET SIGNED ttt TOTAL APPROVED REPAYMENTS, AND OUTSTANDING BALANCE REPRESENT BOTH ACTIVE AND INACTIVE LOANS AND CREDITS. JR)-INDICATES FORMALLY REVISED CLOSING DATE, OTHERWISE ORIGINAL DATE IS 61VEN THE APPROVED,CANCELLATION & DISBURSEMENT AMOUNTS FOR IDA-6/IDA-7 CREDITS AS TAKEN FROM ACCOUNTING HAVE BEEN CONVERTED TO THEIR S EOUIRALENTS BASED ON THE CURRENT EXCHANGE RATE. -/ ~ ~ ~ ~ ~ ~ ~ ~ ~ - ,_J l '< w>- MAURITANIA CANARY ISLANDS k. | (Spo.n/ I ~~~~~~~~~~~MAUPITANIE -2T' TH(; r;.-_'-' C U" THIRD EDUCATION PROJECT __ MAORO CCO_ - TROISIEME PROJET D'EDUCA TION ALGERIA UNIVERSITh OF NOUAKCHOTT 'N L~~~~~~~~~~UINVERSITE GE NOU/AKCNOrTT 1- 20 loo ., 550 150 |{ \ * HIGHER INSTITUTE OF SCIENCES 'N. * YP~~~~~~~~~~~~INSTITUT SUPERIEUI? DE SCIENCES (ISS) ~~~ILOAIWRI ~ ~ ~~~~~~~~~~~~~~~~ I ~~~~~HIGHER INSTITUTE OF TECHNOLOGY (ST CENrRE SUPERIEUR D'ENSEIGNEMENT rECHNIQUE (CS1 TEACHER TRAINING COLLEGE IT - ~~~~~~~~~~~~~~~~~~~ECOEE NORMAIE G'INSTITTUTEUIRS (ENI) \ -. T \xf ,.} e SECONDARY TEACHER TRAINING COUtEGE r zECOLE NORMRAE SUP,RIEURE (ENSI) I1 X , / | o WMARITIME TRAINING AND UPGRADING CENTER CENTIRE DC FORMATION ET DE PlikFECTIONNEMENT MARITIME 2e- ~~~(CEEM) zfmoq S ,_--' / /PROFESSIONAL LYCEE L ECEE DICINSEONEMENT PROFESSIONNEE 13 PROFESSIONAL TECHNICAL COLLEGE CWOLEE DCENSE/ONEMENT PRIOFESSI0O4EI 5~~~~ DIRE Cli LE~~~~~~~~~~~~~~ CEE COMM ERC/L4 a VOCATIONAL TRAINING AND UPGRADING CENTER CENTRE DE FORMATION R EFRETONMN PROPE$SSONNEL fCFPP) EPRETONMN AGRICULTURAL TRAINING CENTER MALI CENTRE GE FORMAT'ION AGR/COLE I~~~~~~~~~~~ c- ~~~~~~~~~~~~~~~~~~~~REGIONAL PRIMARY EDUCATION DIRECTORATE A DIRECT/ONREG1ONAIE D'ENOEWIGNEMENT FONGAMENIAL Al' ~~~~~~~~~~~~~~~~~~~~~~~~~~~(DREF) -2f rvor!/O B ' A 0 R A / 20 HODH I Ech PAVED ROADS ROUTES REVTUJRES C__ARGU j __ GRAVEL ROADS ROUTES EN CRAMIER N0k)AKCHCl - - - - - - ~~TRACKS NOU^KCHOrT g , ;., .,4 P ' | t / (/ PISTILS RAILROADS OA I)