Document of The World Bank FOR OFFICIALUSE ONLY Public Disclosure Authorized ReportNo: 20391 IMPLEMENTATIONCOMPLETION REPORT (CR-20440) ONA Public Disclosure Authorized CREDIT IN THE AMOUNTOF 8.8 SDR MILLION(US$ 11.4 MILLIONEQUIVALENT) TO THE KINGDOMOF NEPAL FOR THE ENGINEERINGEDUCATION PROJECT Public Disclosure Authorized May 31, 2000 This documenthas a restricteddistribution and may be usedby recipientsonly in the performanceof their officialduties. Its contentsmay not otherwisebe disclosedwithout World Bank authorization. Public Disclosure Authorized CURRENCYEQUIVALENTS (ExchangeRate EffectiveDecember 1999) CurrencyUnit = NepaleseRupees (NRs.) NRs. 69.30 = US$ 1.00 US$ 1.00 = NRs. 0.0144 FISCAL YEAR July 16 - July 15 ABBREVIATIONSAND ACRONYMS CIDA - CanadianInternational Development Agency CIMDU - Curriculumand InstructionalMaterials Development Unit CTEVT - Council for TechnicalEducation and VocationalTraining EEP - EngineeringEducation Project HMGN - His Majesty's Governmentof Nepal IOE - Institute of Engineering MDU - Manpower Development Unit MIS - ManagementInforn-ation System NPC - National Planning Commission PIU - Project Implementation Unit SAR - Staff Appraisal Report SDC - Swiss Agencyfor Developmentand Cooperation TU - Tribhuvan University Vice President: Mieko Nishimizu CountryManager/Director: Hans M. Rothenbuhler Sector Manager/Director: EmmanuelY. Jimenez Task Team Leader/TaskManager: Grant Sinclair/BrajeshPanth FOR OFFICIL USE ONLY CONTENTS Page No. 1. ProjectData 1 2. PrincipalPerformance Ratings 1 3. Assessmentof DevelopmentObjective and Design,and of Qualityat Entry 2 4. Achievementof Objectiveand Outputs 3 5. MajorFactors AffectingImplementation and Outcome 10 6. Sustainability 11 7. Bank and BorrowerPerformance 13 8. LessonsLearned 15 9. Partner Comments 16 10. AdditionalInformation 19 Annex 1. Key PerformanceIndicators/Log Frame Matrix 20 Annex2. ProjectCosts and Financing 22 Annex3. EconomicCosts and Benefits 25 Annex4. Bank Inputs 26 Annex 5. Ratingsfor Achievementof Objectives/Outputsof Components 28 Annex 6. Ratingsof Bankand BorrowerPerformance 29 Annex 7. List of SupportingDocuments 30 Annex 8. Borrower'sICR 31 Annex 9. SDC'sComments 39 Annex 10.CIDA's Comments 41 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. Project ID: P010333 Project Name: ENGINEERING EDUC. Team Leader: Brajesh Panth TL Unit: SASED ICR Type: Core ICR Report Date: June 12, 2000 1. Project Data Name: ENGINEERING EDUC. L/C/TF Number: CR-20440 CountryIDepartment: NEPAL Region: South Asia Regional Office Sector/subsector: EV - Vocational Education & Training KEY DATES Original Revised/Actual PCD: 01/29/86 Effective: 11/14/89 Appraisal: 09/06/88 MTR: Approval: 06/22/89 Closing: 12/31/97 12/31/99 Borrower/lmplementing Agency: GOVERNMENT OF NEPAL/INSTITUTE OF ENGINEERING; TRIBHUVAN UNIVERSITY Other Partners: Canadian International Development Agency (CIDA) and Swiss Agency for Development and Cooperation (SDC) STAFF Current At Appraisal Vice President: Mieko Nishimizu Attila Karaosmanoglu Country Manager: Hans M. Rothenbuhler Shinji Asanuma Sector Manager: Emmanuel Y. Jimenez Martin Karcher Team Leader at ICR: Grant Sinclair Joseph Bredie ICR Primary Author: Brajesh Panth; Madhav Mainali 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: L Institutional Development Impact: SU Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: S Project at Risk at Any Time: Yes 3. Assessment of Development Objective and Design, and of Qujalityat Entry 3.1 OriginalObjective: Nepal experienced a critical shortage of technical manpower in almost all its development endeavors. During the 1960s and the 1970s,a number of studies/reviews on the status of human resources in Nepal, including IDA's (McEvers, 1983), highlightedmianpower shortage in a number of skill areas, including engineering skills. As the development efforts expanded during the 1970s, the need to modernize engineering education was identified as one of the key priorities in Nepali education by HMGN. On account of its importance in Nepali development efforts, and as prioritized by HMGN, IDA provided support for two projects aimed at enabling the Institute of Engineering (IOE), Tribhuvan University (TU) to expand and modernize engineering education in Nepal, namely the Institute of Engineering Development Project (Cr. 772-NEP) and the Western Region Campus Project (Cr. 1198-NEP). These projects contributed to the expansion and consolidation of the technician training programs and helped the Institute of Engineering (IOE) initiate a degree program in civil engineering. Nepal, however, remained completely dependent on overseas training in electrical, electronics and mechanical engineering. According to the National Planning Commission (NPC) the shortage of technical and professional manpower at the start of the Seventh 5-Year Plan (1985) had risen to 30 percent of available stock. The apparent shortage of engineers and technicians was a reflection of Nepal's past inability to develop an appropriate stock of technical personnel. The actual proportion of engineering personnel (0.9%) in the economicallyactive population was smaller than in other countries in the region (for example, 3.8% in Bangladesh).Nepal's development efforts required technical personnel in the four basic engineering disciplines-civil, mechanical, electrical, electronics- and in architecture and rural planning. Given the developments in power and communications, the demand for electrical and electronics engineering personnel was expected to rise significantly. It was against this background that the Engineering Education Project (EEP), the third IDA-supported project in the series, was formulated. The development objective of EEP was to increase the production of engineering manpower in order to meet the national demand generated by the Government's investment in various sectors. The expectation was to meet 90 percent of the projected demand and to train engineers and technicians specifically iforNepal's development needs. The project assisted in: (a) expanding the enrollment capacity of the IOE to train technicians and engineers; (b) raising the quality of engineering education; and (c) improving the management of IOE. It was deemed important to remove the imbalancesin the supply of engineering manpower, reduce the shortages, and meet the demand generated by the Government's investment in water resources, hydropower, roads, bridges, telecommunications and industry. Important lessons concerning deficiencies in project management, maintenance and implementationlearned from previous projects were taken into account in designing the project. Project objectives were clearly defined and directed towards building capacity for producing technical manpower in critical areas in Nepal. The objectives were very much in line with social priorities and long-term educational plans of the government, and also fitted well with IDA's country assistance strategy for Nepal. - 2 - 3.2 Revised Objective: No changeswere made in the project'sdevelopment objectives during the implementationperiod. 3.3 Original Components: The project components were: (a) expanding enrollment in the technician training programnsfrom 1,370 to about 1,700 students and in the engineering (degree) programs from 360 to 920 students through the introduction of new programs and construction, rehabilitation and maintenance of facilities; (b) raising the quality of engineering education through training of staff, introducing new curricula, improving existing curricula, providing education materials and equipment, and improving admission and exarninationto international standard; and (c) improving management through strengthening the Office of the Dean, developing a Management Information System (MIS), establishing a Manpower Development Unit (MDU), training managerial and administrative staff, and establishing maintenance capacity. 3.4 Revised Components: Projectcomponents were not restructuredduring project implementation. 3.5 Quality at Entry: The quality at entry is rated satisfactory in this ICR. As mentioned under Section 3.1 above, the project was designed to suit the technical manpower development needs of Nepal, and benefitted from lessons learned in two earlier projects. 4. Achievement of Objective and Outputs 4.1 Outcome/achievement of objective: The project not only achieved all its stated objectives satisfactorily,but also most of its actual achievements exceeded the targets. Now the IOE has greater autonomy, is self-reliantin many areas due to increased levels of cost recovery; it has well-trained manpower (administrative and academic), and has acquired significant experience in project management. Hence, IOE has been able to develop an efficient system for the delivery of both degree and diploma programs. Moreover, major policies have been adopted such as cost recovery and development research capabilities. The project benefited extensively from Canadian International Development Agency (CIDA) technical assistance and Swiss Agency for Development Cooperation (SDC) support. As the project was able to complete all civil works, procure all equipment and enroll more students