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World Bank Document Documentof The World Bank FOR OFICIAL USE ONLY Repw No. 7010-BlIU Public Disclosure Authorized STA"F APPRAISALREPORT BHUTAN Public Disclosure Authorized PRIMARY EDUCATIONPROJECT February 29, 1988 Public Disclosure Authorized Populationand Human ResourcesDivision Country DepartmentI Asia RegionalOffice Public Disclosure Authorized Thi documenhas a resictedda*do andmay be usd by oedpenlyInthe perfomance of thdrofficid duode itscontes may o othewisebe dicosed Word Bank autwohftln& BhutaneseNgultrus (Nu) 100 Chetrum US$1 (at appraisal, Nu 12.80 (OffLcialand July 1987) Free Market Rate) WEIGHTSAND MEASURES Metric System ABBREVIAIO DEO - District (Dzongkhag) EducationOfficer DOE Departmentof Education DSC - DevelopmentService Center ECR - ExtendedClassroom FTE - Full time equivalent ICB - InternationalCompetitive Bidding LCB - Local CompetitiveBidding NAPE - New Approach to Primary Education NIE - National Instituteof Education PIU - Project ImplementationUnit PWD - Public Works Department RGOB - Royal Governmentof Bhutan SDC - Swiss DevelopmentCooperation, representing the Governmentof the Swiss Confederation SPBC School Planning and Building Cell SSR Student to Staff Ratio TTC - Teacher Training Center UNDP - United Nations DevelopmentProgramme UNESCO - United Nations Education,Scientific and Cultural Organization UNICEF - United Nations Children'sFund GLOSSa Dzongdag District Officer Dzongkha - National language Dzongkhag - District FISCAL YEA April 1 to March 31 (At present) July 1 to June 30 (StartingJuly 1, 1988) FM OFmCIALUS ONLY PRIMARY EDUCATION PROJECT STAFF APPRAISAL REPORT Table of Contents Pa&2 No BASIC DATA ........................................................ iii CREDIT AND PROJECT SUMMARY ........................................ iv I. PRIMARY EDUCATION IN BHUTAN ............................... 1 A. Introduction ........................................... 1 B. The Education System................................... 1 C. Problems and Issues.................................... 2 D. Government Plans and Programs.......................... 4 E. External Financing of Primary Education ................ 6 F. Rationale for IDA Involvement in the Sector and Lending Strategy ............................ 7 II. THE PROJECT ............................................... 8 A. Project Objectives ..................................... 8 B. Project Scope and Content .............................. 8 III. PROJECT COSTS. FINANCING AND IMPLEMENTATION............... 14 A. Costs .................................................. 14 B. Financing .............................................. 15 C. Implementation......................................... 17 IV. BENEFITS AND RISKS ........................................ 22 A. Benefits ............................................. 22 B. Risks ................................................... 23 V. AGREEMENTS REACHED AND RECOMMENDATION ..................... 23 This report is based on the findings of an appraisal mission to Bhutan in July 1987. Mission members included Messrs. Thomas Schmidt (Mission Leader), Eid Dib and John Lubbock (Consultants), James Lynch (UNESCO), Uri Trier (SDC), and C.T. Crellin and P.N. Dave (UNICEF). Ms. Paula Valad assisted in the preparation of this report. This document has a restricteddistribution and may be used by recipientsonly in the performance of their officialduties. Its contents may not otherwisebe disclosedwithout World Bankauthoization. - ii - Pag2 No. Tablei-_i the Text 3.1 Cost Su ary ........... , ................... 14 3.2 FinancingPlan Sumary .16 3.3 ProcurementMethods .20 Annex 1 Primary Enrollment,1982-1986 Annex 2 Primary Female Student EnrollmentRatios by District.1986-87 Annex 3 OrganizationChart of DOE Functions Annex 4 ComparativeOutlay for Fifth and Sixth Plans Annex 5 TechnicalAssistance to be Providedby Visiting Specialists and throughFellowships and Placements Annex 6 ProjectedOutput from AcceleratedTeacher Training Program with Mixed One- and Two-Year Courses Annex 7 AdditionalProject Staff Annex 8 Terms of Reference for Project-RelatedStudies Annex 9 Detailed Project Costs Annex 10 Detailed Project FinancingPlan Annex 11 ImplementationSchedule Annex 12 EstimatedSchedule of Disbursements Annex 13 OperationalAction Plan Annex 14 Selected DocumentsAvailable in the Project File IBRD 19961 Primary EducationProject - Location of Schools and Teacher Training Colleges - iii X PRIMARY EDUCATIONPROJECT BAIC DATA Official Estimate (1985) . 1.24 million Average Annual Growth Rate (1973-83). 1.9% Average Density (1985) . .25 per sq km Adult LiteracyRate (1986) . .15% GDP per capita (1985) . .US$160 Enrollment(ADril 1986): Priuary and SecondaryPrograms: Total Male hele I Female Primary (Pre-primary,Classes I-VI) 49,485 32,173 17,312 35 Lower Secondary (ClassesVII & VIII) 2,202 1,639 563 26 Upper Seconday (Classes IX & X) 764 630 134 18 Total 52.451 34 442 18Q009 Average 34 EnrollmentRatios: Primary 19.6% Secondary 2.6% Intermediate,DiRloma and Degree Programs: Junior College (ClassesXI & XII) 261 216 45 17 Degree College (ClassesXIII-XV) 165 140 25 15 Teachers Colleges: National Instituteof Education,Samchi 112 66 46 41 Simtokha Rigney 33 33 0 0 Paro Teacher Training College 27 16 11 41 Technical and VocationalColleges Royal TechnicalInstitute 313 310 3 1 Royal Bhutan Polytechnic iu 0 060° Total 1 071 94 Q Average 12 Expenditures Proportionspent on educationof: GNP 4.0% Central Governmentexpenditure 10.8% Central Governmentcapital expenditure 7.5% Central Governmentrecurrent expenditure 16.5% - iv - WEAn PRIMARYKDC&LTIOtI PIljEcT Credit and ProjctSmr borro ar: Kingdom of Bhutan jn fieiar: Departmentof Education (DOE) Lawaut: SDR 3.1 uillion (US$4.2million equivalent,including retroactivefinancing of US$400,000for expenditures after appraisalon design, site surveys and soils tests under the IDA-financedportion of the project). Terms: Standardwith 40 years' maturity Coinancie.rs: United Nations Children'sFund (UNICEF)will provide a grant equivalentto US$1.5 million, administerits portion of the project, and follow its own guidelines for procurement and employment of consultants. The Governmentof the Swiss Confederation(Switzerland) will provide a grant equivalentto US$5.9 million and delegate administrationof its portion of the project to IDA, which will follow its own procedures. Project Description: The project will support the Government'sdevelopment plan for primary educationand will raise the quality of educationand student achievementand lower unit costs of primary schooling in Bhutan. Specifically,it will: (a) increasethe number and quality of primary schools; (b) increasethe number and effectivenessof primary teachers;and (c) strengthenadministrative and educational support servicesof the DOE. These objectives will be achieved by; (a) building 12 primary schools with an enrollment capacity of 5,400 students, includingboarding facilities,in underservedareas of the Kingdom; (b) more than doubling the enrollment capacity of the primary school Teacher Training Centers (TTCs) from about 170 to about 400 and improvingthe quality of teaching in these institutions;and (c) improving the quality of educational administration at the central and district levels, particularly in the areas of curriculum development, student assessment, personnelmanagement, and education sector planning. The project will consist of three specific components: (a) primary school development,(b) teacher training institutions,and (c) educationaladministration. In addition to financingthe constructionof school and teacher trainingfacilities, the project will finance 8.4 staff-yearsof technicalassistance and 17.8 staff- years of fellowshipsand placements,as well as some vehicles and equipment. -V. Riaku Project benefits will be: improved and more equitable access to primary education, greater capacity in the DOE and increased efficiency in the primary education system. The main project risks are that the Government may overreach Lts capacity to staff and finance the primary education expansion program. With respect to staffing, the risk of teacher shortages has been reduced by lncreased pay and improved service conditions for teachers and an accelerated teacher training program. The risk of insufficient staffing for construction trades has been reduced by the phasing of construction over five years. Financing risks have been reduced by introducing controls on recurrent expenditures such as: instituting a conservative 6% per annum enrollment growth policy, raising student to teacher ratios from 28:1 to 36:1 during the life of the project, reducing dependence on expensive foreign teachers, and increasing efficiency through reduced dropout and repeater rates. ProijectCost: Local Foreign Total --- (US$ million) --- Primary School Development 3.1 2.9 6.0 Teacher Training Institutions 1.0 1.1 2.1 Educational Administration 0.9 1.2 2.1 Base Cost 5.0 5.2 10.2 Physical Contingencies 0.3 0.3 0.6 Price Contingencies 1.8 1.0 2.8 Total Project Cost 7.1 6.5 13.6 la Financing Plan: LOCAl FoXegB Total --- (US$ million) --- Government 1.9 0.1 2.0 UNICEF 0.5 1.0 1.5 Switzerland 2.6 3.3 5.9 IDA 2.1 2.1 4.2 Total 7.1 6.5 13.6 Estinated IDA FY 89 90 21 92 93 94 95 96 ----------------(US$ million) ------- Annual 0.3 0.1 0.4 1.0 0.9 0.8 0.6 0.1 Cumulative 0.3 0.4 0.8 1.8 2.7 3.5 4.1 4.2 EconoaLc ate of Return; Not applicable La Net of taxes and duties (US$0.2 million). PRDIMRYEDUCATION PROJECT 1. pIMANY EDUCATIOW IN BHUTAN A. I &todct 1.01 The Kingdom of Bhutan in strikinglydifferent from its
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