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World Bank Document Documentof TheWorld Bank FOR OMCLALUSE ONLY Public Disclosure Authorized ReportNo. 8441 PROJECTCOMPLETION REPORT Public Disclosure Authorized TUNISIA FOURTHEDUCATION PROJECT (LOAN 1961-TUN) MARCH16, 1990 Public Disclosure Authorized Populationand Human ResourcesOperations Division CountryDepartment II Public Disclosure Authorized Europe,Middle East and North Afrie~aRegional Office 7hisdocument has a reicteddsbution andmay be sedby recipetsondyInde peforanueof dth offii duties.Its conten may nototherwie be diclosedwithbot Wodd BankauthwoizatW ATC - Apprentice Training Center CFP - Vocational Training Center OFPE - Officer for vocation Training and Employment OPS - Operational Policy Staff PCR - ProjectCompletion Report SAR - Staff AppraisalReport VT - Vocational Training VTC - Vocational Training Center r Evolution of the scxhanmeRates At appraisal 02-81 US$ 1 - Dinar .4000 TD 1 - US$ 2.5 Period average 1981 US$ 1 - Dinar .4938 TD 1 - US$ 2.025 U n ~ 1982 US$ 1 - Dinar .5907 TD 1 - US$ 1.692 1983 US$ 1 - Dinar .6788 TD 1 - US$ 1.473 1984 US$ 1 - Dinar .7768 TD 1 - US$ 1.287 1985 US$ 1 - Dinar .8345 TD 1 - US$ 1.198 ea 1986 US$ 1 - Dinar .7940 TD 1 - US$ 1.259 *U 1987 US$ 1 - Dinar .8287 TD 1 - US$ 1.207 1st semester 1988 average US$ 1 - Dinar .8516 TD 1 - US$ 1.174 Estimatedproject's life average 81/88 US$ 1 - Dinar .8333 TD 1 - US$ 1.200 w~~~~~~~~~~~~~~~~~~~~~~~~~~ b VOl OFIICIALUSEOLY T1E WORLDBANK WashingtonD.C. 20433 U.S. OPsra' EVhAetia March 16, 1990 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUU'ECT: Project Completion Report: TUNISIA - Fourth Education Proiect (Loan 1961-TUN) Attached, for information,is a copy of a report entitled "Project Completion Report: Tunisia - Fourth Education Project (Loan 1961-TUN)"prepared by the Europe, Middle East and North Africa Regional Office with Part II of the report contributedby the Borrower. Attachment IThidocumeant ha a _u disuibutio an may be udby mci&ts oIn he pfotem*me of th_ ofiew dtiuie Its cononts mayrnot othorEe be dmiscBd witbot Wodd IBankaut |m FOR OFFICIALUSE ONLY PROJECTCOMPLETION REPORT TUISIA FOURTHEDUCATION PROJECT (WAN 1961-TUN) TABLE OF CONTENTS Pag2 No. Preface i Evaluation Summary ii PART I - Project Review from Bank's Perspective .1 Project Identity. 1 Project Background.................... 1 ProjectObjectives and Description. 2 ProjectDesign and Organization. 3 Project Implementation. 4 ProjectResults. 6 Bank Performance. 9 BorrowerPerformance .................... 9 ConsultingServices ................................. 9 ProjectDocumentation and Data ..... .................10 Project Sustainability.............................. 10 PART II - ProjectReview from Borrower'sPerspective .... ....... 13 Objectives .......................................... 11 OriginalLoan Amount.................. 11 The Amendmentdated April 21, 1986 .11 Extensionof Closing Date .11 Delays in ProjectExecution .12 Status of Components.12 Evaluationof Civil Works Components,Conclusions 13 Evaluationof EquipmentComponent, Conclusions 14 QuantitativeAspect of the Project.14 FinancialAspect of the Project.15 Action Plan to FinalizePayments on IBRD Loan TUN-1961.17 Annex 1 - Breakdown of Componants of IBRD- Financed Projects .19 Annex 2 - Quantitative Aspect of Project .20 This document has a restrcted distributionand may be used by recipientsonly in the performance of their officialduties. Its contents may not otherwisebe disclosedwithout World Bank authorization. Table of Contents (cont"d) PART III - StatisticalInformation .............................. 21 Related Bank Loans .................................. 21 Project Timetable ................................... 21 CumulativeEstimated and Actual Disbursements....... 22 Project Implementation.............................. 23 Project Costs and Financing......................... 25 ProjectResu.ts ........... .......................... 26 Status of Covenants ......... ........................27 Use of Bank Resources ........ .......................28 Annex I - Comparative Schedule of Implementation .... 30 Annex II - Evolutionof the ExchangeRates .... ...... 32 PROJECT COMPLETIONREPORT rUNISI FOURTHEDUCATION PROJECT (LOAN1961-TUN) PREFACE This is the Project Completion Report (PCR) on the Fourth Education Project in Tunisia, for which Loan 1961-TUN in the amount of US$26 million was approved in March 1981. The Loan was closed on December 31, 1988, two years behind schedule. Following a cancellationof US$5 million in April 1986, the reduced Loan of US$21 million was disbursed except for a balance of US$1.8 million which was cancelled. The last disbursementwas made on October 5, 1989. The PCR was jointly prepared by the Population and Human Resources Operations Division, Country Department II, EMENA Region (Preface,Evaluation Summary, Parts I and III) and the Borrower (Part II). Preparation of this PCR was started during the Bank's final supervisionmission in December 1988, and is based, inter alia, on the Staff Appraisal Report and Loan Agreement; supervision reports; correspondence between the Bank and the Borrower; ana internai BianK memoranda. - it - PROJECTCONPtETION REPOR FOURTHEDUCATION PROJECT (LOAN1961-TUN) EVALUATIONSUMMARY Objectives 1. The objectivesof the Fourth EducationProject in Tunisiawere: (i) to increasethe supply of technticalmanpower at skilled worker and lower technician levels through the establishmentof seven new vocational training centers (VTCs) and one apprentice training center (ATC),and the expansionof 13 existingVTCs and 2 ATCs; (ii) to improve the quality of existing training centers through the re-equippingof four VTCs and the ATC; and (iii) training related to project managementand specialistservices to assist with long-termplanning. 2. Implementingagency was the Office for Vocational Training and Employment (OFPE), an autonomous organizationunder the umbrella of the Ministry of .abor. A Bank loan in the amount of US$ 26 million was to support this project (paras.2-4). IJmRalentaLon ExZlerience 3. Loan 1961-TUNwas approved on March 26, 1981 and became effective on November 18, 1981. It experienceddelays in implementationstemming, first, from Borrower/Bankdisagreement on space standardswhich slowed down the architectural design work and all subsequent activities, then the absence of a project coordinator foreseen for the first three years of implementation, and the part-time work of the PIU director. The PIU was rather inexperienced, particularly with procurement procedures and disbursementquestions, but improved its performanceconsiderably over the course of implementation. As an extraneouscomplication, two contractors bankruptedbefore their tasks were completed (para. 11). 4. A Loan Agreement modification in April 1986 cancelled US$ 5 million (19% of Loan funds), increased the civil works disbursement percentagefrom 26% to 50%, and changed the mix of project activities: the ATCs were removed from the list of project institutions(their role to be assumed in part by existingVTCs), and three/twoother VTCs were to benefit from upgrading and extension/newconstruction program. In addition, two mobile training units were included in the project. The diminished Loan was disbursed except for US$1.8 million, and the accounts closed on October 5, 1989, after an extension of the Closing Date from December 31, 1986 to December 31, 1988 (para. 12). - iii - FLesults 5. The project has led to the establishment of a modern, well equipped vocational training system which is able to offer Its trainses much more practical instructionthan used to be the case in the older and under-equippedfacilities (para. 15). 6. Its impact on the labor market is difficult to assess, as the trade system establishedin accordancewith the Loan Agreement is not yet operational. In addition, the present downturn in economic activities appears temporarilyto disguise the longer-termdemands of the economy for technicalmanpower (para. 16). Sustainabi_lity 7. The VTCs appear to be running on a tight budget, reflecting the general budgetary austerity. The Government has responded to diminishing demand for training in specific areas (e.g., construction) reflecting the present downturn of economic activities by a temporary consolidation of training programs. On the whole, this realisticattitude and the obvious policy support the vocationalsystem enjoys bodes well for its future. The advisory councils should contribute to a better dovetailing of training programs with the needs of the economy. Finally, the gradual shift of vocationaltraining to a se:toral training concept is seen as achievinga greater degree of program flexibility(para. 25). Firinzs and Las sp laarn 1 d 8. The project experience confirms, first, the great difficulties in settingup an effectivetrade (or more generally,output monitoring)system and second, the importanceof flexibilityin the institutionalarrangements for vocationaltraining. *1- PROJECT COMPLETIONREPORT FOURTHEDUCATION PROJECT (LOAN1961-U) PART x Prolect Review from Bank's Pergpective- I. Prolect Identity ProjectName: Fourth EducationProject Loan Number: 1961 TUN Country: Tunisia Sector: Education Subsector: VocationalTraining Loan Amount: $26 million - reduced to $21 million in April 1986. Board Approval: March 1981 Effectiveness: November 1981 Original Closing Date: December 31, 1986 Actual Closing Date: December 31, 1988 II. Proiect Background 1. In the 70's, Tunisia experienceda rapid economic growth, result- ing in impressive social gains, particularlyin education. Employment generationto reduce unemployment(around
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